MENA+ ECM activity plunged in 1Q — but it was a good quarter for M&A

We all knew it was going to be bad — now we know how bad. Regional equity capital markets activity came to a screeching halt in the first quarter as the war in the Gulf forced issuers into a defensive crouch. Total ECM proceeds plunged 91% y-o-y to just USD 427.9 mn, according to an LSEG report (pdf). That makes it the worst first quarter on record since 2018.

Only four IPOs made it to market: Saleh Abdulaziz Al Rashed & Sons in Saudi Arabia, Silah Gulf in Bahrain, Trolley in Kuwait, and Gourmet in Egypt, raising a combined USD 296.6 mn.

It was a strikingly different story on the M&A side of the house, with transactions worth north of USD 47 bn closing since late February — a 120% y-o-y jump that defies an 8% slip in global dealmaking, according to figures compiled by Bloomberg.

The takeaway: Issuers are kicking IPO plans to the last four months of the year (nobody goes to market in the summer here in the Middle East), but acquirers (particularly those with sovereign backing) aren’t waiting.

Elsewhere in the region:

Banque du Caire should be on track to release its IPO prospectus before June, a senior government official tells us. We could see 30-40% of BdC up for grabs in what would be the most significant IPO Egypt has seen in years. We first broke the news back in December. The bank is led by Hussein Abaza — well known to global investors from his time leading CIB — and taking it to market this year would be a clear signal to the IMF that the state is serious about stepping back from direct competition with the private sector.

What to watch: We’re hoping officials green-light the offering of as much as 49% — the biggest stake permissible under current regulations. Bankers found heavy appetite on a global roadshow to prospective cornerstone investors before the outbreak of the war in the Gulf.

Abu Dhabi’s Axight is buying into Australian private credit: Axight, the private equity arm of Abu Dhabi’s Lunate, is grabbing a significant minority stake in Australian private credit platform La Trobe Financial from Brookfield in a deal that values the target at roughly USD 2.1 bn, per a statement (pdf). The move is a classic Abu Dhabi play — shifting from a passive LP role to an active GP stake, buying into the firms that manage the money rather than the funds themselves.

By the numbers: La Trobe manages about AUD 23 bn in assets, giving Axight a ready-made international credit platform and exposure to high-yield Australian residential mortgages.

Egypt megaproject: Talaat Moustafa Group announced plans to build an EGP 1.4 tn (c. USD 27 bn) mixed-use city in New Cairo’s Madinaty, called The Spine, according to a press release (pdf). The Spine will house 165 residential, business, and commercial towers or districts.

Two things stand out: It’s being built as a special investment zone and will have free-zone status in places, potentially making it attractive to businesses. And TMG is going to offer 15-year payment terms, a sign it’s sensitive to what industry players tell us is a middle-class affordability crisis in the Arab world’s most populous market.

Sulzer launches Libya JV: Switzerland-based industrial engineering group Sulzer has formed a joint venture with Jawaby Services and Investments (JSIL), a subsidiary of Libya’s National Oil Corporation (NOC), to provide localized repair and maintenance for gear used in the manufacturing, oil and gas, and power-generation industries. The JV will build a facility in the Misrata Free Zone.

IN CONTEXT- There’s been newinternational interest in Libya’s oil and gas sector, given the return of exploration bidding rounds and NOC‘s push to bring production back to pre-conflict levels.

Also worth knowing this morning

PIF‘s Savvy Games Groupis set to acquire mobile studio Moonton for USD 6 bn — bolstering Saudi Arabia’s standing as a serious heavyweight in the global gaming industry even as there are suggestions the Kingdom may be pulling back from sports. It helps when the de facto head of state is the world’s wealthiest gamer.

Egypt’s Ebdaa Real Estate Development partnered with Saudi Arabia’s Bravo Facility Management to launch Ouda Developments, which will build residential and commercial projects across Egypt. Ouda plans to pour over EGP 50 bn (USD 960 mn) into the Egyptian market between 2026 and 2029, starting with a mixed-use project in New Obour City.

Saudi fashion platform Ayasecured SAR 26 mn (USD 6.9 mn) in a Series A round led by Raed Ventures, with participation from Nuwa Capital, Sanabil Investments, Khwarizmi Ventures, and Joa Capital. The raise follows a USD 1.6 mn seed round in 2025. Founded by Munira Al Kadi (LinkedIn) and Abdulrahman Al Ammar (LinkedIn), Aya is a fashion marketplace focused on forecasting trends and providing local producers with demand insights. Funds will go toward new product categories and broader fashion and lifestyle verticals.

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