The MENA region raised USD 4.7 bn from equity capital markets in 1H 2025, according to LSEG data cited at a panel discussion hosted by Zawya on Thursday. Bankers on stage agreed liquidity is rising, passive inflows are growing, and the region is entering a more sophisticated phase of development, with a busy pipeline in 2026 — though the immediate outlook hinges on a handful of agreements set to price in the coming weeks in Saudi Arabia.

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Reforms undertaken since the early 2020s — including the potential relaxation of foreignownership limits in Saudi Arabia — have helped broaden the investor base and deepen liquidity. Meanwhile, investors are shifting investment from historically dominant markets like the US and Europe to the region, which offers stability and resilience.

This shift also means that the GCC is increasingly being viewed less as an emerging market and more as a stable, developed market — or a new category that rests between the two, one panelist said — anchored by the USD peg. This shift in perception, they said, will make it easier to diversify deal pipelines and execute more transactions simultaneously.

On the equity side, Saudi Arabia — a standout over the past five years — is now in a “digestive” phase as issuers and investors negotiate on valuations, Karim Meleka, co-head of investment banking at EFG Hermes, said. Two or three Saudi transactions are set to launch in the coming weeks, which, if successful, could catalyze others into the market. Meanwhile, the UAE, in particular, has a very healthy pipeline well into 2026 and 2027 and has been “fantastic” for IPOs, follow-ons, and rights issues, he added.

For the first time, follow-ons and rights issues are outpacing IPOs in MENA. Lorenzo Vertechi, senior director of ECM at Emirates NBD Capital, noted that while IPOs typically account for 80% of activity in the region, this year has seen a shift toward secondary offerings. Meleka added that the “post-covid euphoria” is over, and investors are demanding more sophisticated equity stories and more disciplined valuations.

Debt markets are also in record-setting territory. The region has already seen USD 160 bn in bonds and sukuk this year, up from USD 136 bn in all of 2023, and is on track to breach USD 180 bn by year-end, according to Khaled Darwish, HSBC’s head of CEEMEA DCM. MENAT overall is approaching USD 200 bn in issuance, with Saudi Arabia alone accounting for USD 80 bn. Sukuk issuance has been particularly strong, with USD 82 bn coming to market so far this year, thanks in part to renewed confidence from both regional and Asian investors.

Hedge funds are also beginning to play a bigger role, adding liquidity and depth, said Meleka. Execution, however, remains a challenge: Vertechi pointed out that it takes a week between allocations and trading in the UAE, compared to a day in Europe, while in Saudi Arabia, the process can stretch to a month. Regulators in both markets are working on reforms that could help shorten timelines and further attract international investors.

Asian institutions, in particular, are stepping up allocations as they diversify away from the US, Darwish said. Refinancing will also be a key theme moving forward as a wave of existing issuances matures, which could see investors demand higher premiums for emerging market exposure, he added.

On the supply side, structural drivers remain intact. Sarmad Mirza, Standard Chartered’s head of corporate and SSA DCM MENA, said the region’s supercycle of growth is fueling demand for funding, with USD 2 tn of infrastructure projects in the pipeline and the region’s GDP growth expected at 4.5% next year. Private sector participation is also rising, with succession planning among family businesses becoming a more prominent theme, and private equity just beginning to emerge as a driver of exits in equity markets.

Darwish described 2025 as a “transformational year” for MENA capital markets, with the combination of liquidity, reform momentum, infrastructure investment, and a more diversified investor base creating a foundation for sustainable growth. The near-term test will be whether upcoming deals clear the market, setting the stage for what bankers expect could be another record year.

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