UAE Leads $10.4 Billion MENA Equity Market as Saudi Activity Slows
Equity fundraising in the Middle East and North Africa (MENA) fell 51% to $10.4 billion in the first nine months of 2025. The drop came as global market uncertainty and tighter liquidity made it harder for companies to raise large amounts of money.
Despite the fall in total value, the number of deals increased by 12%, reaching the highest level for any nine-month period since 2008, according to data from the London Stock Exchange Group (LSEG).
UAE Shows Strong Growth
The UAE performed the best in the region, raising $5.22 billion, up 58% from last year. This growth came mainly from follow-on share sales by companies like ADNOC Gas and Emirates Integrated Telecommunications, as well as other energy-related firms.
In contrast, Saudi Arabia, which led the market in 2024, saw its fundraising fall 74% to $4.49 billion. Investors became more cautious due to market corrections and fewer large IPOs.
IPO Market Stays Active
The initial public offering (IPO) market stayed busy, with 36 new listings raising $4.8 billion, just 4% less than last year.
Saudi airline Flynas had the region’s biggest IPO of 2025, raising $1.1 billion on the Tadawul exchange. Dar Al Majed Real Estate followed with a $336 million listing in the third quarter.
Follow-on share sales made up a larger share of total funds at $5.6 billion, led by ADNOC Gas’s $2.8 billion sale in February and ACWA Power’s $1.9 billion rights issue in July.
Strong M&A Growth
The energy and power sectors led the market, raising $3.5 billion—about one-third of the total—followed by industrials with 18%. Investors continued to prefer stable, dividend-paying companies despite high interest rates and global uncertainty.
In the equity capital markets (ECM) rankings, First Abu Dhabi Bank (FAB) kept its top spot with an 11.2% market share, followed closely by HSBC with 10.8%. Citi was one of only two top-ten banks to see growth, increasing proceeds by 14% to $938 million.
M&A Deals Surge Despite Equity Slowdown
While equity fundraising slowed, mergers and acquisitions (M&A) in MENA surged 166% to $157.3 billion. Major deals included the $49 billion purchase of Electronic Arts, partly backed by Saudi Arabia’s Public Investment Fund, and Borouge’s planned merger with Borealis.
Despite weaker stock markets, investment banking fees in MENA reached a record $1.3 billion, up 14% from last year—showing that the region’s financial markets remain strong, diverse, and globally connected.
Published: 28th October 2025
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