The evolving GCC IPO market: Trends and investor implications
The IPO market in the Gulf Cooperation Council (GCC) has entered a new phase of deliberate and sustained growth. Unlike previous cycles, which closely tracked oil price movements, the current momentum reflects deeper structural changes and policy-driven transformation. In this article, we explore this evolution and its implications for investors.
The GCC region, with a combined GDP exceeding $2.3 trillion,1 is undergoing a significant transformation in its capital markets. Recent years have seen a notable increase in both the number and value of listings, driven by regulatory reforms, broader sector participation, and expanded country coverage. Since 2022, more than 170 listings have raised over $50 billion,2 marking a departure from the historical pattern of oil-linked issuance cycles.
Recent regulatory changes have played a pivotal role in expanding market access. The UAE eased the ownership requirements in 2021 to promote higher foreign ownership and attract international investment. Saudi Arabia launched the Nomu Parallel Market3 in 2017 with lighter entry requirements and subsequent reforms in 2019 and 2022 made it easier for companies to transition from Nomu to the Main Market. These reforms widened market access and created a more inclusive pipeline for listings. Saudi Arabia’s consultation in the fourth quarter of 2025 on removing the 49% cap on foreign ownership signals continued market development.
These reforms have widened the pipeline for listings and fostered a more inclusive market environment. Public markets are increasingly used to drive economic diversification and private sector participation. As governments advance their national Visions plans, IPOs serve as both funding mechanisms and visible markers of structural change. For global investors, this represents an important inflection point. The GCC is shifting from a narrow oil-linked exposure to a more diversified, policy-driven investment opportunity grounded in structural change.
A broad-based rise in issuance
Recent data underscores that the GCC IPO engine is revving up even as oil prices have remained range bound since after peaking in 2022 (Figure 1). The region recorded 49 IPOs in 2024, a 7% increase over the previous year, and is on track for another solid year. All GCC countries have participated in the past five years, contributing 13 primary offerings beyond Saudi Arabia and UAE.
While annual proceeds fluctuate due to the effect of large transactions, the overall level has been strong (Figure 2). Year-to-date, the GCC has accounted for more than 5% of global fundraising, a share that far exceeds its current representation in global indices.
A broader sector footprint
Sector representation has expanded meaningfully. Historically, listings were concentrated in financials, energy, and utilities. These sectors remain part of the landscape, as seen with state-owned enterprises Dubai Electricity & Water Authority, ADNOC Gas, and OQ Exploration & Production coming to market for monetization. However, private sector issuers now feature prominently. Eight of the 20 largest IPOs since 2021 came from private companies such as Talabat, Americana Restaurants, and Lulu Retail. These new listings introduce greater exposure to the Consumer, Real Estate, Industrials, Healthcare, and Technology sectors, distinct from the heavy financial concentration seen in the MSCI GCC index (Figure 3).
From 2021 to late September 2025, 18 IPOs have been added to the MSCI GCC index,5 reflecting not only rising issuance but also increasing market depth and the ability of newer companies to meet global index standards. This dynamic is crucial—the GCC equity market, historically concentrated in large financials and energy, is gradually gaining depth, both in terms of sector and corporate scale. With the base widening, GCC markets are poised to shed the perception of concentration and narrow sector opportunity.
What this means for investors
The rise in GCC IPOs reflects structural deepening. Market access is improving, liquidity is strengthening, and the corporate universe is expanding. The pattern resembles the long-term reforms seen in markets such as China and India. The scale and consistency of recent deal flow suggest that the trend is structural with long standing implications, enabling several pathways for investors to participate.
For index investors, the implications are straightforward but meaningful. As more companies qualify for inclusion in global benchmarks, the region’s index weight is likely to rise, reducing concentration risk and improving allocation efficiency. Both broad emerging market strategies and dedicated GCC or MENA index approaches can benefit from this evolution.
For thematic investors, the expanding sector mix supports more targeted exposure to regional policy priorities in healthcare, logistics, tourism, services, and technology. Investors can align more directly with national diversification plans to participate in policy-driven growth.
Active investors stand to gain as well. A large and more varied universe improves breadth and allows for more differentiated stock selection. Wider dispersion across companies originating from diverse sectors can also help expand the active manager opportunity for both fundamental and systematic approaches.
GCC: A differentiated emerging market story
The expansion of GCC IPO activity signals a market that is steadily maturing and increasingly central to national transformation strategies. Rising deal flow, broader sector participation, and stronger regional representation indicate that capital markets are now embedded within long-term economic reform agendas.
This evolution is more than a conventional emerging market story. It reflects the financialization of economies that that are deploying accumulated wealth to build diversified and resilient structures. IPO activity is a visible indicator of this shift, expanding the investable universe and marking progress toward deeper, more strategically relevant equity markets. For both index and active allocators, the GCC is becoming an increasingly important and differentiated component of the global opportunity set.
Questions? Reach out to the MENA Institutional Sales team at CCGMEA@ssga.com.