November 25 2025 | Deals | IPO | Financial Services | M&A Advisors
The Saudi listings’ market continues to attract global investor interest as the region’s real estate boom gathers pace. Meanwhile, a favourable regulatory environment is supportive of a frothy future IPO pipeline.
According to the EY MENA IPO Eye Q3 2025 report , the Middle East and North Africa (MENA) region saw 11 IPOs in the third quarter of 2025, raising a total of $700 million. Eight of these listings happened in the Kingdom of Saudi Arabia (KSA), collectively raising $637 million. This represents a 120% increase in funds raised compared to the same period last year, driven largely by mid-market activity.
In terms of notable recent transactions, the Kingdom of Saudi Arabia’s (KSA’s) Dar Al Majed Real Estate Company raised $336 million . Other significant IPOs included Marketing Home Group for Trading Co. and Sport Clubs Company, which raised $109 million and $69 million respectively.
EY says companies are strategically timing their market entries based on investor sentiment and macroeconomic conditions, with investors optimistic about sustained growth in the region, bolstered by a robust regulatory framework and a healthy pipeline of upcoming listings.
The Saudi IPO market isn’t the only one in the region firing. The United Arab Emirates (UAE) have also seen successful listings, including construction and engineering group ALEC Holdings on the Dubai Financial Market .
It’s worth noting the Middle Eastern region’s venture capital market is also growing, with the Abu Dhabi Global Market's Tech Start-Up licensing regime giving VC investors the opportunity to connect with businesses, while the ADGM tech ecosystem, Hub71 , is connecting start-ups, investors and government entities to drive innovation.
Seasonal factors drive markets
Over the past few years, BDO Lebanon notes Saudi Arabia's IPO activity has been influenced by factors including fiscal cycles, regulatory approval timelines and market sentiment. The professional services firm notes the first and fourth quarters tend to be the busiest for IPOs, while the second and third quarters experience seasonal slowdowns due to Ramadan and summer holidays.
Broadly, regulatory reforms are helping to stimulate share markets, including Saudi Arabia’s Vision 2030 initiative . This ambitious plan aims to diversify the Saudi economy and reduce its dependence on oil revenues, with capital markets the vehicle for monetising state assets and fostering private sector growth. Public markets are also essential for unlocking finance for national megaprojects.
The distribution of IPO proceeds from 2021 to 2024 illustrates the kingdom's commitment to diversifying its economy, with raisings from utilities, food and staples, retailing, consumer services, technology and healthcare. Mid-sized sectors such as financial services, industrial goods and real estate also demonstrated meaningful IPO activity, while niche sectors like insurance, real estate investment trusts (REITs) and life sciences attracting growing investor interest.
As Saudi Arabia's capital markets become increasingly integrated into the Kingdom's long-term economic agenda, the dual-market structure of Tadawul and Nomu offers scalable access to capital for both large enterprises and SMEs. The Tadawul market caters primarily to large, established companies that meet stringent regulatory and disclosure standards.
This structure provides a transparent and stable environment, attracting institutional and foreign investors. Conversely, the Nomu market offers a more flexible and efficient listing venue for SMEs and early-stage businesses, facilitating quicker access to equity funding. This bifurcated structure allows both institutional and venture-oriented capital to engage meaningfully in market expansion, catering to diverse investor interests.
BDO’s figures indicate between 2021 and 2024 a divergence emerged in IPO valuations between the Saudi Tadawul All Share Index (TASI) and the secondary market, Nomu. The median EV/EBITDA multiple in the main market rebounded to 22.3 times in 2024. In contrast, Nomu's multiples declined to 11.2 times, reinforcing its identity as a platform for high-growth, early-stage companies.
Regulations support investors
Across Saudi Arabia, strategic reforms initiated by the Capital Market Authority (CMA) have significantly enhanced market access and liquidity. As BDO Lebanon notes , the introduction of special purpose acquisition companies (SPACs), relaxed investor qualifications for Nomu, and expanded foreign ownership rules in key regions have all contributed to a more dynamic capital market environment in Saudi.
The professional services firm notes complementary funding tools, such as sukuk and rights issues, have supported public and private capital markets, deepening market liquidity and providing flexible, Shariah-compliant financing options.
Continued regulatory enhancements and streamlined listing processes will be crucial for sustaining a diverse and active IPO pipeline. Key growth sectors, including healthcare, renewables, technology and digital infrastructure, are poised to drive the next wave of listings, aligning with Vision 2030's emphasis on innovation and sustainability.
Future growth prospects
Looking ahead, the IPO pipeline remains strong, with EY’s data indicating 19 companies and funds plan to list in the coming months.
While real estate transactions will continue to dominate new listings, expect a more diverse range of companies to come to the bourse, with Saudi Arabia’s Balsam Healthcare Company just one company preparing for a potential IPO in 2028.
