The Middle East's IPO Surge Expands Beyond Three Key Cities

In recent years, the Middle East has become a hotspot for new share sales, with most activity centered in Abu Dhabi, Dubai, and Riyadh. However, there are signs that this wave of listings is starting to extend beyond the major Gulf economies of Saudi Arabia and the United Arab Emirates. Last week, Oman's state energy firm sold a 25% stake in its exploration and production business, raising about $2 billion. This makes it the region’s biggest initial public offering in over a year and the fourth-largest in the Europe, Middle East, and Africa region.

This IPO marks a significant milestone for Oman, which has seen limited listing activity. OQ Exploration & Production's listing alone accounts for over half of the proceeds from listings in Oman over the past decade. Building on this momentum, Oman's government is pushing forward an ambitious privatization drive. OQ is preparing for another IPO of its methanol and liquefied petroleum gas unit this year, and the Oman Investment Authority plans several dozen listings over the next five years as the country aims for emerging-market status.

If successful, Oman's blue-chip stocks could attract sizeable inflows from passive funds tracking the MSCI and FTSE emerging market benchmarks. This influx of capital could boost industries such as energy, transport, and tourism, aligning with broader regional trends as governments prepare for a post-oil era.

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Other major regional venues like Abu Dhabi and Saudi Arabia are also gearing up for significant deals, including a potential IPO for Abu Dhabi's hypermarket operator Lulu and Etihad Airways, as well as various high-profile listings in Saudi Arabia. The Middle East's IPO landscape is rapidly evolving, with a mix of new and traditional sectors seeking to capitalize on investor interest.