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7/25/25, 10:14 AM UAE Equity Market Set to Welcome Up to Five IPOs | Arabian Post
UAE Equity Market Set to Welcome Up to Five
IPOs

Arabian Post Staff -Dubai

UAE equity capital markets are poised for an uptick in activity, with Citi
forecasting three to five initial public offerings by 31 December—assuming
timely regulatory clearance and robust pre‑marketing, said Rudy Saadi, Citi’s
managing director and head of MENA Equity Capital Markets. This comes
amid renewed investor enthusiasm as the nation positions itself as a regional
IPO hub.

Saadi noted that although privatisations have slowed, market sentiment
remains firmly positive for the remainder of 2025 and into early 2026. The
expected pipeline includes a mix of family‑owned concerns and state‑affiliated enterprises alongside follow‑on offerings from
listed firms.

A D V E R T I S E M E N T

Delivering context, UAE exchanges have tapped international and domestic liquidity in recent quarters. Spinneys and Alef
Education raised $375 million and $515 million, respectively, in the second quarter, channelling nearly $890 million overall
through new IPOs. Dubai and Abu Dhabi exchanges continue to push private‑sector listings, underscoring wider capital‑markets
evolution.

Citi’s optimism is reinforced by Bloomberg’s observation of renewed momentum in regional share sales heading into H2 2025.
The uptick appears linked to improved regulatory frameworks, deeper secondary‑market liquidity and evolving investor appetite
across institutional, family‑office and retail segments.

Market analysts point to several emerging trends. Firstly, regulatory authorities in both Dubai and Abu Dhabi are progressively
enhancing governance and foreign‑ownership rules to attract global participants. UAE entities now find listing conditions more
competitive compared with established markets in Europe or the US.
Secondly, a shift is apparent from state privatisations to private‑sector flotations. Family‑owned businesses and tech‑focused
enterprises are now stepping into the spotlight—supported by increasing liquidity and appetite from international institutional
investors.

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Thirdly, follow‑on share sales are gaining traction, offering listed firms a refundable route for fresh capital without navigating a full
IPO process. Analysts expect more such offerings in sectors including financial services, healthcare and logistics, reflecting
healthier balance sheets and growth trajectories among UAE firms.

Beyond sheer numbers, quality is a key consideration. Saadi indicates that approval pace and pre‑marketing success are
decisive factors. In prior cases, such as Spinneys and Alef Education, strong institutional subscription signalled robust investor
interest—suggesting forthcoming listings may mirror this level of demand.

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