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Signs that the Iran conflict may be drawing to a close have begun restoring investor sentiment in the GCC yet the revival of IPO momentum depends on post-summer conditions including valuations liquidity and earnings visibility that could re-engage foreign investors. A Zawya report published June 23 noted that notable IPOs delayed to after the summer due to weak market sentiment include Saudi Arabia’s Arabian Dyar and Mutlaq Al Ghowairi as well as Dubai Investment Parks in the UAE. Hamza Girach head of MEA investment banking at Citi told Zawya that the equity market is expected to remain strong and active as the region emerges from the conflict although it remains to be seen whether activity will return to pre-conflict intensity. “We continue to feel confident about the fundamentals as they relate to foreign direct investment—the factors that have underpinned the Middle East particularly the UAE and Saudi Arabia” Girach added in the report.
Capital outflows from key GCC markets occurred during the conflict although the durability of those flows remains uncertain according to the Zawya assessment. More disciplined valuations paired with a resilient growth outlook could draw foreign capital back while institutional investors evaluating regional opportunities appear not to have abandoned their investment case Girach said. Bankers have identified a robust pipeline of IPOs whose timing has grown more tactical amid reduced liquidity and war impacts with no slowdown observed in Saudi planning even as UAE hospitality and real estate sectors faced pressure. The report indicated post-war transactions may require structural adjustments to favor local bids and reduce dependence on international participation.
Girach advised in the June 23 interview that offerings must adopt more sensible pricing and present stronger equity stories featuring robust growth characteristics and cash flow to entice investors sufficiently. “Offerings have to be a bit more sensible on price and more accommodating to allow international investors to play” he noted. Citi continues expanding its regional presence through additional on-the-ground hiring the banker stated.
Regional capital and liquidity faced significant pressure over recent months due to the Iran war but aggressive rebounds are predicted as trade routes reopen the Zawya report said. Additional capital expenditure may address damage to certain energy assets in Qatar Saudi Arabia and the UAE yet major companies have shown little material change in business plans or outlooks. The GCC’s non-energy sectors are forecast to contract by 1.1 percent in 2026 before recovering with overall GDP for the six-nation bloc predicted to grow by 8.1 percent in 2027 as energy trade normalizes and business confidence rebuilds according to the assessment.
A Markaz report from January 2026 showed GCC IPOs raised $5.1 billion through 40 offerings in 2025 marking a 61 percent decline in proceeds from $13.2 billion via 53 offerings the year before. Saudi Arabia accounted for $4.1 billion or 79 percent of the 2025 total with its Tadawul main market and Nomu parallel market driving the majority the Kuwait-based firm reported. The report projected an increase in GCC IPO activity during 2026 driven by stable global interest rates and ongoing divestment initiatives. Bloomberg reported on July 2 that the Middle East IPO pipeline offers hope of recovery from the slump with Saudi Arabia holding the strongest roster of potential deals despite some postponements linked to the conflict.
PwC data for the third quarter of 2025 placed GCC IPO proceeds at $0.5 billion with year-to-date totals reaching $4.4 billion of which 75 percent came from Tadawul listings. Saudi Arabia remained the primary driver of activity through that period with eight listings including the largest from Dar Al Majed Real Estate Company at $335 million. Industry observations indicate IPO volumes slowed markedly in the first half of 2026 with first-quarter proceeds around $0.3 billion amid geopolitical uncertainty and the U.S.-Iran conflict according to Aranca analysis. With approximately 73 listings in the pipeline across the region a rebound in the second half appears feasible if post-summer conditions align multiple research providers have indicated.
