GCC IPO Boom in Q1 2025: What It Means for Business Setup in the UAE and KSA?

The Gulf region made a powerful economic statement in the first quarter of 2025, raising US$1.6 billion through IPOs, up 33% year-on-year. While the headlines highlight capital market growth, the deeper takeaway is this: the Gulf is entering a new era of investor-ready, diversified economic expansion. 

For foreign investors, startups, and entrepreneurs exploring business setup in the UAE or company formation in the KSA, this IPO momentum is a directional move. It shows where capital is flowing, where governments are focusing reforms, and where the next business growth opportunities lie. 

Saudi Arabia Leads with SME and Nomu Listings 

Saudi Arabia contributed 69% of total GCC IPO proceeds, raising US$1.1 billion through nine listings. Notably, six of these were on the Nomu parallel market, designed for SMEs.

This reflects Saudi Arabia’s shift toward supporting early-growth companies, with a regulatory environment that prioritizes transparency, governance, and scalable growth. 

UAE’s Tech Sector Gains Market Confidence 

The UAE’s major highlight was the US$163 million IPO of Alpha Data, a system integration firm listed on the Abu Dhabi Exchange. This shows that investors are now backing tech-driven companies based on execution, not just ideas. For founders and tech entrepreneurs, the environment is ripe for UAE company formation, especially with a long-term view on scaling and listing. 

Oman and Sectoral Trends Point to Broader Opportunity 

Oman’s US$333 million IPO of Asyad Shipping signals that smaller Gulf economies are stepping up their capital market participation. Across the region, consumer markets (42%), financial services, and energy were the top-performing sectors, confirming a shift toward diversified, service-oriented business models. 

What This Means for New Businesses in the Gulf? 

1. UAE is IPO-Ready: With its growing tech IPO pipeline and robust financial infrastructure, now is a prime time for business setup in the UAE, especially in retail, logistics, and digital services. 

2. Advisory Services Are Crucial: As IPO-readiness becomes part of business planning, UAE business setup services and compliance consultants are more critical than ever. 

3. IPO Markets = Market Readiness: The uptick in listings proves investor confidence in the Gulf's regulatory reforms and economic diversification efforts. 

Looking Ahead 

Even amid global market uncertainty, the Gulf’s IPO strength demonstrates resilience and long-term investor trust. Businesses that enter now, especially with the right legal and financial structuring, can capitalize on both regional growth and maturing capital markets. 

Ready to turn momentum into opportunity?

Read our full blog post to explore how the Q1 IPO boom impacts your strategy for business setup in the KSA and the UAE.