IPO hopefuls in the UAE are holding off their listing plans, with timelines now slipping from weeks to months as the Iran war disrupts sentiment and makes execution windows harder to read.

The 1H 2026 window is largely closed. IPOs that were expected to hit the market in the near term are now being pushed into 2H, with any reopening likely toward late 3Q or early 4Q, Tahir Abbas, head of research at Ubhar Capital, tells EnterpriseAM. And even then, it would only be “high-quality issuers with strong fundamentals and anchor investor backing,” he added.

“International appetite has moderated [...] with investors becoming more selective and valuation-sensitive,” Abbas said, even if foreign participation is “not absent.” In practice, that’s increasing reliance on “domestic and regional liquidity in the near term” to support any new listings.

REMEMBER- Foreign investors turned net sellers across both exchanges in March, pulling some AED 1.06 bn across both markets, according to data compiled by Alkhaleej.

A tale of two bourses: “The DFM is currently more exposed due to its higher retail flows and cyclical sectors,” while the ADX is “better supported by institutional liquidity and government-linked listings,” Abbas said, adding that Abu Dhabi is expected to recover faster once conditions stabilize. That gap is reflected in market performance, with the DFM falling 16.4%, as opposed to an 8.9% decline on the ADX.

Sector selection is becoming the main deciding factor

”Cyclical sectors such as consumer discretionary, real estate, and logistics have been the most impacted,” Abbas said, “given their sensitivity to demand and sentiment.” On the other hand, “utilities and energy-linked businesses remain relatively stable due to stronger earnings visibility and defensive positioning,” he explained, while financials are showing “a mixed trend.”

The candidates in the IPO pipeline? Many of them are in those hard-hit sectors. Dubai Holding had been planning to float two of its property portfolio units, while hospitality group Five Holdings tapped advisors for a potential listing. Meanwhile, the highly anticipated ADQ-backed Etihad Airways IPO — previously slated for 2025 — was pushed to 2026. Emirates Global Aluminium, which is now having to grapple with a severely damaged facility in the UAE which will require a year for full repair, had also been weighing what would have been a major IPO, which could value it at USD 10-15 bn.

Maybe some hope for one? Abu Dhabi Investment Group is eyeinglistings for its financial unit and energy subsidiary this year — which, given they’re in slightly more defensive sectors, could have more of a chance.

Shisha producer Advanced Inhalation Ritual was also planning a 1H 2026 IPO on Nasdaq via a SPAC merger, but US markets have also been choppy since the start of the war.

Despite the volatility, UAE companies are not looking for offshore venues, Abbas said, but are becoming “more flexible on timing and structure,” opting to delay or optimize execution rather than relocate listings altogether.

ZOOMING OUT- The IPO pipeline is stalling across the region, with what was expected to be a strong year now being pushed back as issuers reassess timing in a more volatile market. Only three IPOs made it across the finish line in the GCC so far this year, with volumes down 72.2% y-o-y. The valuations are low due to external factors and the markets remain oversold,” Junaid Ansari, director of investment strategy and research at Kamco Invest, previously told EnterpriseAM.

Tags: