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Companies in the Gulf Cooperation Council (GCC) raised $2.5bn through initial public offerings (IPOs) in the second quarter of 2025, according to PwC Middle East’s latest IPO Watch report, as investor appetite for regional equities remained strong despite global volatility.
Saudi Arabia dominated issuance, accounting for 76 per cent of total IPO proceeds, bolstered by landmark deals including Flynas, the first airline IPO in the GCC in over 15 years, and Specialized Medical Co, which raised $500m in June.
Three IPOs during the quarter raised over $500m each, signalling a trend toward larger deal sizes amid sustained institutional demand.
In total, the region recorded four IPOs on main exchanges and eight listings on Saudi Arabia’s Nomu Parallel Market, which collectively raised $128m, up from $81m in Q2 2024.
Slight decline in GCC IPO listings in Q2
Despite a slight decline in total listings, IPO proceeds remained broadly in line with Q2 2024’s $2.6bn, underlining continued investor confidence in GCC capital markets.
In the UAE, the Dubai Residential REIT marked the first real estate investment trust IPO since 2014, reinforcing renewed interest in alternative assets. The Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) posted strong quarterly gains of 15 per cent and 7 per cent respectively, helped by rebounds in the real estate, financials and industrials sectors.
“The global market volatility at the start of Q2, driven by uncertainty over global trade tariffs, understandably prompted some companies to reassess their IPO plans,” said Muhammad Hassan, Capital Markets leader and partner at PwC Middle East. “Despite slower IPO activity across the GCC, Tadawul and DFM witnessed landmark IPOs such as Flynas and Dubai Residential REIT. The outlook remains cautiously optimistic for the remainder of the year, subject to macroeconomic and geopolitical factors.”
Bond and sukuk issuance sees rise in Q2
Bond and sukuk issuance also saw sharp increases compared to the same period last year.
Total bond issuance reached $4.9bn in Q2 2025, up from $0.5bn in Q2 2024, while sukuk issuance rose to $11.4bn from $9.7bn over the same period.
Equity markets delivered mixed performances. Early-quarter turbulence, including a roughly 20 per cent drop in Brent crude prices, weighed on Saudi Arabia’s Tadawul index, which fell 6 per cent over the quarter. However, recovery in the latter half of Q2 helped restore investor sentiment across the region.
PwC noted that while Q3 is typically a quieter season for IPOs, a strong and diversified pipeline remains in place across the GCC, with several issuers eyeing listings in late 2025 and early 2026.
