Saudi IPOs slow as listings drop to eight-year low

• One company has listed this year
• Investors expect limited IPOs
• Uncertainty caused by Iran conflict

The value of new listings on the Saudi Exchange for the first quarter of 2026 hit an eight-year low as poor recent performances and the Iran war held back new initial public offerings.

So far, just a single company, quarrying and construction materials firm Saleh Abdulaziz Al Rashed & Sons, has listed on the main market this year after raising $67 million through an IPO.

Investors expect new listings to remain limited across the Gulf for the first half of 2026 as potential issuers wait for the conflict between the US, Israel and Iran to stabilise.

The total raised by IPOs in the first quarter marked the lowest start to year since the same period in 2018 when not a single company was listed on the main market.

In contrast, in the first quarter of 2025, the combined IPO value of the five companies that listed that quarter was $1.8 billion, 27 times that for the first quarter this year.

Three companies currently have permission from the Capital Markets Authority to pursue a listing. 

IT company Dar Albalad For Business Solutions, contractor Mutlaq Al-Ghowairi Contracting and developer AlDyar AlArabiya Real Estate Development have until the end of June before the permission expires.

Restaurant chain Al Romansiah, which was granted CMA approval to list on September 29, saw its approval expire over the weekend.

“I think now they will be a bit delayed,” said Shahrukh Saleem, a portfolio analyst at asset manager Mashreq Capital, “given the regional situation”.

Further reading:

• First Saudi IPO of the year posts gains despite conflict
• Four companies said to be working on Saudi listings
• Retail tranche of Saudi’s first 2026 IPO 161% oversubscribed

Investors are expecting a lull in the market until there is more clarity on the Iran war, which as of yet shows no sign of slowing.

“There’s a lot of uncertainty right now and I think that just keeps the companies or conflicts away from the market,” said Saleem.

“The longer the conflict goes on, the higher the uncertainty is. We may have a very quiet window in terms of IPOs.”

Shares in Saleh Abdulaziz Al Rashed & Sons have increased more than 30 percent since it listed on March 11.