GCC IPO+ Watch

Global macroeconomic developments

• Global growth forecast edges up: The global economy’s projected growth for 2025 was revised upwards thanks to improved financial conditions and fiscal expansions in major economies. 
• Inflation pressures easing but structural risks remain: Inflation in many advanced economies is trending downward from earlier peaks, offering some relief to central banks. 
• Monetary policy easing underway but uneven: Many central banks have started to cut interest rates in response to softer growth signals, but monetary conditions remain tight overall and financial markets are showing elevated volatility. 
• Resilient GCC growth outlook: The World Bank projects GCC GDP growth of 3.2% in 2025 rising to 4.5% in 2026 outpacing the global average driven by a combination of oil-output normalisation, robust non-oil expansion and fiscal investment.

GCC equity capital markets activity

• As has been the case in prior years Q3 was a relatively quiet quarter for GCC IPOs. The third quarter is typically quiet for GCC IPOs due to low investor activity during the summer and holiday season with issuers favoring either Q2 and Q4 windows.
• The Kingdom of Saudi Arabia remained the sole driver of IPO activity in Q3 with a total of eight listings - three on Tadawul’s main market and five on the Nomu Parallel Market.
• Dar Al Majed Real Estate Company was the largest IPO this quarter raising $335m representing over half of total GCC IPO proceeds during the quarter.
• At the end of Q3 2025, GCC IPO volumes were ahead of Q3 YTD in the prior year, proceeds were on par.

Source: S&P Global

Global equity market update

• Global equities extended their bull run through 2025, with the S&P Global 100 advancing 24% year-to-date, recovering strongly from the April pullback that followed U.S. tariff announcements.
• Regional performance has been uneven, with Asia leading global gains (S&P Asia 50 up 44% YTD), followed by the U.S. (S&P 500 up 17%) and Europe (S&P Europe 350 up 13%).
• AI and technology-related stocks have been the principal drivers of market momentum, underpinning valuations and investor sentiment across major indices.
• In the GCC, the S&P GCC Composite is up 5% year-to-date, reflecting mixed performance across regional markets amid varying sectoral and liquidity trends.
• The CBOE Volatility Index (VIX) has remained broadly stable since April 2025, indicating investor confidence and reduced near-term risk aversion.

Source: LSEG

GCC equity market update

• Oman led regional markets, with the MSX General Index up 21% since 1 January 2025. The impressive rally was driven by robust industrial sector performance, strong corporate earnings, and steady domestic investor participation.
• The Kuwait Premier Market Index followed closely, gaining 19% year-to-date, supported by solid momentum in the financial services and energy sectors.
• Dubai’s DFM General Index advanced 18% in 2025, reaching its highest level since 2014 in February, underpinned by resilient corporate earnings and sustained investor confidence, particularly in the real estate and financial sectors.
• The Abu Dhabi Securities Exchange (ADX) General Index recorded a 9% increase, led by strength in the financial services and energy sectors.
• Elsewhere in the region, the Tadawul All Share Index (TASI) declined 3%, while the Qatar Exchange General Index and Bahrain All Share Index remained broadly flat.

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