The Saudi Exchange is experiencing a historic cool-down. In the first quarter of 2026, new initial public offerings on the kingdom’s main market dropped to an eight-year low as regional conflicts and recent poor market performances stifled new listings.
Quick Facts
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Q1 2026 Saudi IPOs drop to an eight-year low.
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Only one company listed in Q1, raising $67 million.
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Q1 2025 recorded five listings worth $1.8 billion.
Navigating the 2026 Gulf Market Freeze
Investors expect the pipeline for new listings to remain constrained across the Gulf throughout the first half of 2026.
The ongoing conflict between the US, Israel, and Iran has created a volatile environment, forcing potential issuers to hit pause until geopolitical conditions stabilize.
This marks the slowest start to a year for the Saudi market since 2018, when no companies listed on the main market during the first quarter.
The contrast with the previous year is stark. In the first quarter of 2025, five companies listed with a combined IPO value of $1.8 billion—a figure 27 times higher than the total raised in the same period this year.
Shahrukh Saleem, a portfolio analyst at asset manager Mashreq Capital, noted that companies are staying away until there is more clarity on the geopolitical situation.
“There’s a lot of uncertainty right now and I think that just keeps the companies or conflicts away from the market,” Saleem said.
“The longer the conflict goes on, the higher the uncertainty is. We may have a very quiet window in terms of IPOs.”
Expiring CMA Approvals for Saudi Listings
The market delay is already impacting companies that successfully navigated the regulatory process.
Restaurant chain Al Romansiah, which received approval from the Capital Markets Authority (CMA) on September 29, saw its listing permission expire over the weekend.
Three other companies currently hold CMA approval but are facing tight deadlines.
IT firm Dar Albalad For Business Solutions, contractor Mutlaq Al-Ghowairi Contracting, and developer AlDyar AlArabiya Real Estate Development have until the end of June before their permissions lapse.
“I think now they will be a bit delayed, given the regional situation,” Saleem added regarding the pending IPOs.
The Lone Listing: Saleh Abdulaziz Al Rashed & Sons
Despite the broader market hesitation, one company has successfully navigated the challenging climate this year.
Quarrying and construction materials firm Saleh Abdulaziz Al Rashed & Sons stands as the sole main market listing so far in 2026.
The company raised $67 million through its IPO.
Despite the regional friction, investor appetite for the single offering remained strong. The retail tranche of the IPO was 161 percent oversubscribed, drawing more than 38,300 subscribers at a final price of SAR45 per share.
Since listing on March 11, shares in the construction materials company have increased by more than 30 percent.
About Saudi Exchange
The Saudi Exchange, also known as Tadawul, is the sole entity authorized to act as a securities exchange in Saudi Arabia. It is the largest stock exchange in the Middle East and North Africa, serving as the primary financial platform for companies to raise capital and for investors to trade equities, sukuk, and bonds within the kingdom.
Source: AGBI
