BRICS+ Series: Gulf Owners Choose Private Exits as the Iran War Chills the IPO Market
Gulf investors favour private sales over IPOs as the Iran war hits listings; GCC IPOs fell about three-quarters, M&A is 83% of MENA exits
Business owners from the Gulf are opting for private exits rather than initial public offerings (IPOs) as the Iran war creates uncertainty in the regional stock market. According to S&P Global Market Intelligence data, IPO exits in the Gulf Cooperation Council have dropped by about three-quarters compared to the same period in 2025.
Mergers and acquisitions (M&A) have filled the gap, accounting for 83% of exit value in the first half of 2026, up from 79% a year earlier and 73% in 2024. This shift is evident in the dramatic decline of IPOs from above 5% to below 1% of exit value. Dubai's stock index fell 16.4% in March, while Saudi Arabia's Tadawul rose 5%. Sovereign wealth funds and state-backed owners can underwrite investments through a market cycle and wait for better valuations, while private owners may face lower valuations due to geopolitical volatility and poor aftermarket performance.
One of the first private exits is expected to be Dubai Investments selling 20% of DIP Holding on the Dubai Financial Market, making it the UAE's first IPO of 2026.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
