UAE IPOs and credit markets primed for growth once war ends, Morgan Stanley executive says

The UAE is anticipated to witness a surge in initial public offerings (IPOs) once the US-Iran conflict concludes, according to a senior Morgan Stanley executive. The country's credit market is also projected to experience significant growth. Although no IPOs have taken place in the UAE so far in 2025, the investment bank remains optimistic about the capital market prospects despite the uncertainty caused by the war.

In 2025, UAE companies raised a total of $1.1 billion through three IPOs, as per Dealogic data. Dan Simkowitz, co-president of Morgan Stanley, expressed confidence in the long-term prospects of the UAE's IPO marketplace, stating that the bank is investing heavily in this region due to its robust financial infrastructure and leadership.

The Iran war, which began on February 28, has led to heightened uncertainty across the Middle East, causing the World Bank to revise its forecast for Gulf economies to contract by an average of 4.3 percent in 2025, down from the previous estimate of 4.8 percent. However, the International Monetary Fund predicts a strong recovery for the region next year, contingent on the normalization of shipping.

Morgan Stanley remains committed to the region, with the bank having over 100 employees in the region and plans to expand its operations further. The company's current pipeline of deals in the region is still active, and the credit market is expected to boom, with global trends also positive. The credit market's importance is increasing as high capex manufacturing returns, necessitating investments to bridge the gap between building and generating revenue.