Gulf IPO Market Shows Signs of Recovery According to Investcorp Executive

Investcorp's Executive Chairman Mohammed Alardhi has noted a gradual improvement in the Gulf's IPO market, signaling renewed investor confidence in the region. Speaking at the Davos World Economic Forum, Alardhi emphasized that the Middle East remains a compelling long-term investment destination. The IPO market had previously shown signs of slowing due to valuation concerns and lower oil prices but is now showing momentum with upcoming listings.

Saudi Arabia is playing a pivotal role in the region's market revival by allowing full foreign access to its equities. The country's move has the potential to attract broader international participation and stabilize market activity. Alardhi noted that this shift aligns with the broader Gulf's long-term economic development goals.

Investcorp is actively exploring infrastructure opportunities in the Gulf, with a focus on large-scale projects. In May 2025, the firm committed $550 million to an infrastructure project in Oman through its joint venture with a unit of Aberdeen Group Plc.

Why the Move Happened

The IPO market in the Gulf had lost steam in the previous year as investors grew cautious about valuations and macroeconomic pressures, particularly due to oil prices remaining below peak levels. However, Alardhi believes the recent regulatory and economic shifts, especially in Saudi Arabia, have created conditions for a recovery. The country's decision to allow unrestricted foreign investment in its equities is a strategic move to diversify its economy and attract global capital.

Infrastructure investments are also gaining traction as Gulf nations prioritize long-term development projects. These projects are often backed by public-private partnerships and international joint ventures. For example, Investcorp's Oman project leverages its expertise in infrastructure to capitalize on regional growth.

What Analysts Are Watching

Analysts are closely watching the pace of IPO activity in the Gulf as an indicator of regional investor confidence. With Saudi Arabia opening its equity markets to foreign investors and new projects gaining momentum, the Gulf is expected to become a more attractive destination for capital. However, macroeconomic conditions such as global interest rates and oil prices will continue to influence the trajectory of the region's IPO market.

Investcorp, with $60 billion in assets under management, is evaluating potential liquidity events in the future, such as an IPO or a strategic partnership. Alardhi emphasized that while the firm is still in the evaluation phase, it remains open to opportunities that align with its long-term strategy.

The broader Gulf region is also witnessing increased investments in AI and digital infrastructure. For example, Oracle plans to invest $14 billion in cloud and AI services in Saudi Arabia over the next decade, highlighting the region's growing technological and economic ambitions.

These developments suggest that while the Gulf's IPO market is still in the early stages of recovery, it is showing resilience. Investors and analysts are monitoring both regulatory and economic signals to gauge the sustainability of the market's upward trend.