Here’s How Saudi Arabia Captured Nearly 80% of GCC IPO Proceeds in 2025
Saudi Arabia became the clear leader in the Gulf Cooperation Council (GCC) stock market in 2025. It raised almost 80% of all IPO money in the region, showing how strongly the country has reformed and expanded its financial system.
According to a report by Kuwait Financial Centre (Markaz), Saudi Arabia raised $4.1 billion from IPOs in 2025. This made up 79% of total GCC IPO proceeds. Of this amount, $3.7 billion came from 13 IPOs on the Saudi Exchange (Tadawul), while $336 million was raised from 23 listings on the parallel market, Nomu.
Across the wider GCC, there were 40 IPOs, raising a total of $5.1 billion. This was a big drop from $13.2 billion in 2024, when 53 companies went public. Most IPOs in 2025 were from private companies, which raised $3.9 billion, or 76% of the total. Government-related entities raised $1.2 billion from three IPOs.
Why Saudi Arabia dominated
Saudi Arabia’s strong performance is the result of long-term reforms under Vision 2030, launched in 2016 to reduce the country’s reliance on oil and grow other sectors.
A key part of this effort is the Financial Sector Development Program, which has upgraded the capital market and made it more attractive to global investors. Saudi Arabia’s inclusion in major global indices such as MSCI, S&P Dow Jones, and FTSE Russell has increased confidence and visibility in its stock market.
Foreign investment continues to rise. By the third quarter of 2025, foreign ownership in the Saudi capital market exceeded $157 billion, while international investments in the main market reached $138 billion, according to the Capital Market Authority (CMA).
A major change is coming in February 2026, when Saudi Arabia will fully open its stock market to all foreign investors. This move removes previous limits, approvals, and special investor frameworks. It will allow easier and faster access to the market, improve liquidity, and attract more global capital.
Saudi Arabia has also introduced strong tax incentives. Companies that set up regional headquarters in the Kingdom can receive corporate tax exemptions for up to 30 years, lower withholding taxes, and simpler procedures. Special Economic Zones offer tax rates as low as 5% for sectors like manufacturing and logistics.
The new Investment Law ensures equal treatment for local and foreign investors. These policies support Vision 2030’s goal to raise foreign direct investment to 5.7% of GDP by 2030 and make Saudi Arabia a major investment and logistics hub.
IPO activity and performance
This supportive environment has created a strong IPO pipeline. One recent example is Saleh Abdulaziz Al Rashed & Sons Company, which operates in construction materials and industrial supplies. Its IPO price range values the company at up to $223 million, reflecting steady investor interest.
In 2025, industrial companies led IPO proceeds with $1.9 billion, followed by real estate, which raised $1.2 billion. Healthcare, consumer-focused businesses, and financial services also contributed, showing the market’s broad sector mix.
IPO results after listing were mixed. Some companies delivered strong gains, while others fell due to high valuations or low trading activity.
Overall, IPO funds are helping finance non-oil sectors such as tourism, technology, and infrastructure—bringing Saudi Arabia closer to its goal of having the private sector contribute 65% of GDP by 2030.
Published: 5th February 2026
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