The Middle East and North Africa’s equity capital markets opened the year in near-standstill mode, with issuance shrinking to a trickle and dealmaking activity plunging sharply. Total equity and equity-linked proceeds for the first quarter amounted to just $472.9 million — a dramatic 91% drop compared with the same period a year earlier.
Deal activity thinned out just as severely. Only five transactions crossed the finish line during the first three months of the year, representing a 69% year-on-year slide. IPO momentum cooled significantly as well, with four companies listing on regional exchanges versus 12 in the comparable period last year. Together, those listings generated $296.6 million, marking the weakest first-quarter IPO haul in eight years.
Market participants pointed to a combination of timing and turbulence. The overlap with Ramadan, beginning in mid-February, coincided with heightened geopolitical uncertainty across the region — a mix that discouraged issuers from stepping into volatile markets.
The quarter’s standout transaction came from Kuwait’s Trolley General Trading, which raised $194.1 million. That single deal helped push the retail segment to the top of sector rankings, accounting for $289 million in proceeds. Meanwhile, follow-on offerings shrank to their lowest level in three years, contributing only $131.3 million.
Other notable listings included Saudi Arabia’s Saleh Abdulaziz Al Rashed & Sons Company and Gourmet Egypt, though overall issuance remained muted. Bankers noted that the IPO process itself — typically involving about two weeks of investor education and roadshows — leaves issuers vulnerable to sudden shifts in sentiment. With geopolitical developments moving quickly, many companies chose to delay launches rather than risk mispricing.
Despite the slow start, expectations for a rebound remain intact. Investors are seen returning once volatility eases, supported by stable economic fundamentals and a backlog of companies preparing for market debuts.
Sector performance during the turmoil varied. Oil and gas, petrochemicals, and fertiliser businesses appear positioned to benefit from elevated commodity dynamics, assuming exports remain uninterrupted. In contrast, hospitality and aviation companies have absorbed heavier shocks and may take longer to recover. Real estate stocks experienced sharp declines, though underlying demand indicators remain steady.
Construction projects, however, continue largely on schedule, with investors maintaining phased funding commitments — a factor that could help lift share prices if broader sentiment improves.
On the advisory front, EFG Hermes led regional ECM underwriting with a 29% market share, generating $125 million in proceeds. Kuwait’s National Investment Company followed with a 22.7% share and $97.1 million in deal value.
