Saudi Arabia continues to dominate the Middle East’s equity capital markets as it prepares for its first major listing since the onset of the US/Israel–Iran conflict. The upcoming IPO of IT provider Dar AlBalad for Business Solutions (DABS), which plans to float 30% of its capital on the Tadawul, is being viewed by analysts as a critical test of investor sentiment during this period of geopolitical tension. According to Fahad Irfan of AlJazira Capital, the move underscores the resilience of the Saudi market and its commitment to the digital transformation goals of Vision 2030.
This resilience stands in contrast to a broader regional slump. LSEG data shows that equity issuances in the MENA region hit their lowest point since 2011 during the first quarter of 2026, with deal values plummeting 91% year-on-year. While rising oil prices and trade disruptions have forced many global companies to delay listings or lower their valuations, Saudi Arabia’s Tadawul All Share Index actually rose 5% in March, significantly outperforming neighboring markets like Dubai.
The outlook for the remainder of the year remains positive, with Saudi Arabia expected to lead the region’s IPO activity. Several other entities, including the bottled water brand Berain and various construction and real estate firms, have already secured regulatory approval for their own debuts. Investment bankers at EFG Hermes suggest that once the current volatility stabilizes, strong economic fundamentals and a high-quality backlog of companies will likely trigger a robust return in investor appetite.
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