Gulf IPO activity slows, driving bankers toward Egypt and Turkey

The Gulf region is experiencing a significant slowdown in initial public offerings (IPOs), prompting international and local bankers to seek opportunities in other markets. Since the beginning of 2026, IPO activity in the Gulf has fallen to less than $1.1 billion, a decline attributed in part to ongoing regional conflict and increased uncertainty regarding the timing of planned listings.

Financial institutions such as HSBC Holdings and EFG Hermes are shifting their focus toward markets in Egypt, Turkey, and India to compensate for the regional slump. This trend is highlighted by the fact that Sub-Saharan African markets have already surpassed the Gulf in IPO value, attracting approximately $1.37 billion. The gap is expected to widen further with the anticipated $1.6 billion IPO of the Dangote Petroleum Refinery, the largest in Africa.

Despite the decline in IPOs, the region is seeing a surge in mergers and acquisitions (M&A) driven by sovereign wealth funds. According to Bloomberg data, the value of M&A deals involving Gulf entities rose by approximately 200% in the first half of the year, reaching nearly $300 billion. While many companies remain in the pipeline for public listings, geopolitical instability continues to delay execution.