A flood of public offerings in the kingdom is redefining its markets, luring foreign investors, and fueling global expansion.
Saudi Arabia is experiencing a boom in IPO activity, signaling the liberalization of its economy and a shift away from government-led privatizations that once dominated its investment market.
The Arabian Company for Agricultural and Industrial Investment, known as Entaj, is the latest to announce its IPO plans, intending to offer 30% of its share capital to the public. The final offer price is set to be announced on February 19, 2025, with listing expected soon after.
This follows a wave of major flotations. The Almoosa Health Company IPO was hugely oversubscribed, with its order book for 30% of its share capital reaching $372.8 million. Meanwhile, cosmetics firm Nice One aims to raise $322 million through a similar offering.
According to S&P Global Market Intelligence, 41 IPOs were launched in Saudi Arabia last year, raising a total of $4.06 billion. By contrast, only five IPOs took place in 2019, yet they generated a much higher $30.46 billion—largely driven by Saudi Aramco’s record-breaking IPO, which raised $25.6 billion for a 1.5% stake in the state-owned oil giant.
Since the launch of Vision 2030 nine years ago, Saudi Arabia has made significant strides in economic diversification, fostering a more attractive environment for global investors. Confidence has been further boosted by major infrastructure upgrades, including a $133 billion investment in logistics and freight handling capacity to expand non-oil GDP.
“The Saudi stock exchange has become a preferred listing destination due to strong liquidity, robust demand from institutional investors, and alignment with global investment standards,” says Farah el Nahlawi, research lead at MAGNiTT, a leading venture capital data platform for emerging markets. “Moreover, the IPO landscape is no longer oil-centric, with fintech, healthcare, and retail companies successfully listing—indicating broader investor appetite.”
Foreign investor participation has also been driven by MSCI and FTSE index inclusions, reinforcing confidence in Saudi Arabia’s market stability and growth potential.
Beyond domestic benefits, the IPO boom could fuel global expansion for Saudi-based companies. Increased capital provides firms with the financial firepower for cross-border acquisitions, market entries, and strategic partnerships, strengthening international trade ties.
As international investors flock to high-profile Saudi IPOs, local companies can strengthen their presence in global industries such as energy, petrochemicals, logistics, and manufacturing. With increased capital, they can expand into new markets, reinforcing Saudi Arabia’s position as a rising economic powerhouse.