UAE IPO Pipeline Remains Robust as Major Firms Eye 2025 Listings

Maryam Pervez -

The UAE's IPO market is set for another strong year in 2025, following a successful 2024 where seven companies raised $6 billion (Dh22 billion). Analysts suggest high-profile firms like Etihad Airways, Dubizzle, Five Holdings, and Alpha Data could headline next year’s listings.

2024 Recap

Notable IPOs in 2024 included Talabat, Lulu Retail, and Spinneys. Talabat and Lulu accounted for $3.7 billion, about half of the total IPO proceeds. While 2024 saw one fewer listing compared to 2023’s eight IPOs, the total funds raised remained consistent at $6 billion.

The standout year remains 2022, which delivered 11 IPOs and $13 billion in proceeds, double the combined totals of 2023 and 2024. IPOs from 2022 have delivered a remarkable 37% average return to date.

2025 IPO Outlook

  • Etihad Airways: Poised to be the Gulf's first airline IPO, targeting up to $1 billion.
  • Dubizzle: Estimated IPO value between $500 million and $1 billion, aligning with the UAE’s tech-driven economic vision.
  • Five Holdings: The Dubai-based luxury hotel operator is eyeing a $2 billion IPO.
  • Alpha Data: Expected to raise around $200 million.

Industry experts predict the total IPO proceeds for 2025 could once again hit $6 billion, consistent with the UAE’s recent performance.

The UAE’s push to become a global tech hub could drive IPOs in AI, healthtech, and fintech sectors. State-owned enterprises in energy, infrastructure, and utilities are also likely candidates as part of the government’s economic strategy.

Market Strength

Retail investors in the UAE are well-positioned to benefit from the thriving IPO market. Over the past three years, 61% of listed companies on the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) have traded positively. The ADSMI Index has gained 83% over five years, while the DFMGI Index posted 57% returns over three years.

Analysts note the UAE’s political and economic stability, alongside strong foreign investor interest, continues to boost market liquidity and strength. Upcoming IPOs are likely to benefit from this momentum, offering significant opportunities for investors.

News Source: Khaleej Times