The IPO market in the UAE is shaping up to be strong for 2025, following a successful year where seven companies raised $6 billion (Dh22 billion) in 2024.
Analysts suggest major names like Etihad Airways, Dubizzle, Five Holdings, and Alpha Data might be the next to go public in 2025.
In 2024, companies like Talabat, Lulu Retail, ADNH Catering, NMDC Energy, Alef Education, Spinneys, and Parkin completed their IPOs, keeping the momentum of UAE’s capital market intact.
Strong Performance in 2024
“Talabat and Lulu were the top performers, contributing $3.7 billion, about half of the total IPO proceeds this year,” said Vijay Valecha, Chief Investment Officer at Century Financial. Despite having one less IPO than 2023, which had eight listings, the total raised amount stayed consistent at $6 billion.
However, the most notable year for IPOs was 2022, with 11 listings generating a remarkable $13 billion. These IPOs delivered an average return of 37% from their initial offering price, making it a standout year for UAE markets.
Big Names in the Pipeline for 2025
According to experts, 2025 could see some high-profile IPOs, such as Etihad Airways, which could become the first Gulf airline to go public, raising up to $1 billion. Dubizzle, the UAE’s largest classifieds platform, might also launch its IPO, with an estimated valuation between $500 million and $1 billion. These IPOs align with the UAE’s push for tech-driven capital market growth.
“Based on past trends, 2025 IPO proceeds could once again hit around $6 billion, matching 2023 and 2024 levels,” added Valecha.
Technology and State-Owned Enterprises in Focus
George Pavel, general manager at Naga.com Middle East, expects significant IPO activity in technology sectors such as artificial intelligence (AI), healthtech, and fintech. He also anticipates IPOs from state-owned enterprises in energy, infrastructure, and utilities, aligning with the government’s economic strategies.
Pavel forecasts $3.7 billion to $4.2 billion from currently announced IPOs, with additional listings potentially boosting the total. Companies like Five Holdings could raise up to $2 billion, while Alpha Data’s IPO is expected to reach $200 million.
Why Look at IPOs in 2025?
Historical performance highlights the opportunity for investors. Over the last three years, 16 out of 26 IPOs (61%) listed on the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) are currently trading in positive territory. In 2024, companies like NMDC Energy, Spinneys, and Parkin also reported gains.
The UAE’s IPO market continues to attract both local and international investors, supported by strong economic diversification and capital market growth. Valecha noted that indices like ADSMI have grown nearly 83% over five years, while DFMGI has delivered 21% returns in the last year and 57% over three years.
The upcoming IPOs are expected to benefit from the UAE’s stable political environment, growing foreign investment, and strong market liquidity, making 2025 an exciting year for investors.
