Saudi Arabia follows UAE in most IPO activities in the GCC

Dubai: Saudi Arabia and the UAE led IPO activities within the Gulf Cooperation Council (GCC), raising $1.7 billion (Dh6.2 billion) in the third quarter of this year, an increase of 6 per cent from the previous year

A report from the Kuwait Financial Centre, known as Markaz, highlights that the UAE was the leading force in this quarter's IPO activity, generating $1.1 billion (Dh4 billion) from a single listing, which accounted for 69 per cent of the total raised in the GCC.

Saudi Arabia followed closely with $512 million (Dh1.8 billion) from its IPOs during the same period, contributing 31 per cent to the overall regional total.

This is a result of the GCC becoming a prominent hub for IPOs, driven by strong economic reforms, efforts to diversify away from oil dependency, and heightened interest from regional and international investors.

In the first nine months of 2024, GCC issuers raised $5.2 billion (Dh19 billion) through 30 offerings, compared to $6.8 billion (Dh24.9 billion) from 29 offerings in the same period last year, as reported by Saudi news agency Arab News.

Saudi Arabia has ramped up its privatisation and diversification efforts in sectors like healthcare, technology, and renewable energy, enhancing the attractiveness of its market.