After a year defined by market whiplash and postponed ambitions, the Middle East and North Africa equity capital markets are lining up for a busier 2026. Bankers say deals that were shelved during last year’s volatility are edging back onto the runway, setting the stage for a rebound in listings and share sales.
Total equity and equity-linked issuance across the region reached $15.4 billion in 2025, according to market data—down nearly half from the year before. Deal volumes also slipped, reflecting a more cautious climate as issuers waited for calmer conditions.
Yet the softer headline numbers mask an unusual comparison. The prior year had been anything but ordinary, buoyed by a handful of blockbuster transactions that inflated expectations. Those included the massive Aramco follow-on sale, Oman Exploration & Production’s multibillion-dollar debut, and landmark UAE listings such as Talabat and Lulu. Against that backdrop, a slowdown was almost inevitable.
Investment banks active in the region say confidence is already returning. A sizeable queue of companies is preparing to test investor appetite, with activity expected to pick up after Ramadan. Alongside fresh IPOs, large shareholders are also exploring secondary sales, creating a blend of new listings and follow-on offerings.
“The quality of companies in the pipeline remains strong,” said one senior equity capital markets executive, pointing to solid fundamentals and improved readiness among issuers. “That combination usually translates into healthy demand when windows reopen.”
A Market Tilted Toward Follow-Ons
In 2025, follow-on offerings made up the larger share of activity, accounting for just over half of all proceeds. Several high-profile transactions anchored the year, including a multibillion-dollar ADNOC Gas share sale and major rights issues by ACWA Power and Abu Dhabi Commercial Bank.
IPOs filled in the rest. While the number of new listings dipped slightly, nearly 50 companies still made their market debut, raising more than $7 billion. Saudi Arabia’s Tadawul hosted the year’s largest IPO, as low-cost carrier Flynas raised over $1 billion. Morocco also featured prominently, with construction firm SGTM delivering the biggest fourth-quarter listing.
By sector, energy and power dominated capital raising, followed by industrials—underscoring the region’s continued focus on infrastructure, utilities, and long-term development projects.
Saudi Arabia Leads, UAE Close Behind
Saudi Arabia once again emerged as the most active and lucrative market, reflecting its scale and depth. The UAE followed closely, supported by years of reforms that have cultivated a strong local equity culture and international investor participation.
Banks jostling for league-table positions felt the broader slowdown. Underwriting volumes were lower across the board, and total equity capital markets fees fell to a two-year low. Still, dealmakers argue that the dip looks more like a pause than a retreat.
Looking ahead, optimism is back in fashion. Gulf economies continue to grow, capital inflows remain resilient, and investors are watching the region closely for the next wave of listings.
After a year spent waiting on the sidelines, MENA’s equity markets appear ready to move again.
