The United Arab Emirates is seeing renewed momentum in equity capital markets heading into the second half of 2025, while Saudi Arabian firms eying share sales face investor caution over valuations.
Planned deals in the UAE are building on May’s successful debut of a residential real estate investment trust, which helped revive sentiment after several muted listings late last year. Dubai’s ALEC Engineering & Contracting LLC has been holding investor meetings ahead of a potential listing after the summer, according to people familiar with the matter.
Other real estate-linked offerings are also in the works, including contractor Arabian Construction Co. and online platform Dubizzle Ltd., Bloomberg News has reported. Dubai Holding, the conglomerate owned by the emirate’s ruler, plans to list a portfolio of malls and other commercial assets, following Dubai Residential REIT’s strong debut.
While the Gulf has broadly shrugged off volatility from regional conflict and tariff uncertainty, the UAE has outperformed. “The UAE is perceived to be more resilient — less tied to oil — and the economy’s diversification over the past few years has really paid off,” said Rami Sidani, head of frontier investments at Schroder Investment Management.
Abu Dhabi wealth fund Mubadala Investment Co. is preparing to offload at least part of its $1 billion stake in telecom operator Du through a follow-on offering that’s likely to launch shortly after summer, people familiar said.
Representatives for ALEC and Mubadala declined to comment.
While follow-on issuance across the region remains relatively limited, secondary offerings in the UAE outpaced IPOs in the first half of 2025. The trend has been driven by large placements in ADNOC Gas Plc, which raised just under $3 billion, and First Abu Dhabi Bank PJSC, which brought in $477 million.
“We’ve started to see a small shift,” said Rudy Saadi, head of Middle East and Africa equity capital markets at Citigroup Inc., which helped arrange both those offerings. “Not all ECM issuances are just IPOs today — there’s more debate and interest from shareholders about issuing different types of products, which is what the market needs.”
In contrast, Saudi Arabia, which remains the region’s busiest market for first-time share sales with over $3 billion raised this year, is heading into the second half with a more cautious tone. Disappointing debuts from Flynas Co. and Specialized Medical Co. have dampened short-term enthusiasm, particularly amid weaker oil prices and greater scrutiny of pricing.
“Investors still want exposure to the kingdom given the major diversification agenda, but they’re being more selective,” Saadi said. “The real conversation now is around valuation discipline and asset quality.”
Still, the kingdom’s deal pipeline is growing. Alandalus Educational Co. is working with EFG Hermes on a potential IPO, while Dubai-listed Amanat Holdings PJSC has tapped SNB Capital to explore listing its education business in Riyadh, people familiar with the matter said.
A number of firms are looking to tap into growing demand from infrastructure, tourism and industrial projects. Facilities management firms MAG and EFS are also planning offerings, while restaurant chain Al Romansiah is working with HSBC Holdings Plc and EFG Hermes on a potential deal, the people said.
Representatives for Alandalus, Amanat and EFS, as well as EFG, SNB Capital and HSBC, declined to comment. Al Romansiah did not respond to multiple requests for comment, and MAG couldn’t be reached.
Real estate developers Almajdiah, Al Ramz and building material supplier Marketing Home Group Co. have secured regulatory approval and aim to tap into rising housing demand under Vision 2030 and liberalized foreign ownership rules. Listings must be completed within six months of approval.
Companies across sectors — from car rentals and automotive cooling system providers to fintechs, tech firms, investment banks and coffee chains — are also preparing to go public.
Among state-backed firms, the Public Investment Fund is weighing a listing of a port operator, and chemical maker Sabic is considering a share sale in its industrial gas unit, Bloomberg News has reported.
That activity will test investor demand in a more price-sensitive environment. “Valuations in consumer and mid-cap names remain high,” said Sidani, though he noted that banks look more attractively priced.
Still, Saudi is a “compelling structural growth story,” he said, citing “ample” fiscal headroom and continued diversification efforts. A correction in valuations, he said, could bring back more foreign investors, “especially since Saudi still trades at a premium compared to other emerging markets.”
Investor interest across the region has also been supported by rising Gulf representation in emerging market indexes. “We’re seeing more global institutions leaning in,” said Nikita Turkin, head of Central and Eastern Europe, Middle East and Africa ECM at Barclays Plc. The bank is advising several founder-led companies in sectors such as technology, real estate, industrials and consumer goods that are preparing to scale or expand internationally.
Some of the region’s smaller markets are also preparing listings. Kuwait’s Trolley convenience store chain is planning an IPO, and in Qatar, state-backed Gulf International Services aims to list an insurance subsidiary and an associated catering firm.
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