Equity and equity-related issuance in the MENA region saw a dramatic downturn during the first quarter of 2026, with total proceeds plummeting 91% year-on-year to just $472.9 million. According to the LSEG MENA Investment Banking Review, deal volume also fell by 69%, with only five transactions finalized. The IPO market was particularly stagnant, recording its weakest opening quarter since 2018; only four companies went public, raising a collective $296.6 million compared to 12 listings during the same period last year.
Experts attribute this sharp decline to a confluence of timing and instability, specifically the early start of Ramadan in mid-February and significant regional geopolitical friction. The largest single transaction was Kuwait’s Trolley General Trading, which raised $194.1 million and positioned the retail sector at the forefront of the quarter’s limited activity. Meanwhile, secondary offerings hit a three-year low, and many potential issuers chose to delay their debuts to avoid the high volatility currently impacting investor roadshows.
The outlook for different industries remains mixed. While oil, gas, and petrochemicals may benefit from the ongoing conflict if exports remain stable, the hospitality and aviation sectors are facing a much slower path to recovery. Real estate has also seen a sell-off in shares, though construction remains on schedule, leading to hopes for a near-term rebound. EFG Hermes led the quarterly underwriting rankings with a 29% market share, followed by Kuwait’s National Investment Company. Although the current pipeline is stalled, analysts expect robust investor demand once the geopolitical landscape stabilizes.
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