Saudi Arabia’s Capital Market reforms and IPO momentum
Saudi Arabia’s Capital Market reforms and IPO momentum
Capital markets have become a cornerstone of Saudi Arabia’s Vision 2030. They facilitate the
monetisation of state assets, scale private sector growth and unlock new sources of financing
for national megaprojects and SMEs alike. Between 2021 and 2024, the Tadawul All Share
Index (TASI) rose by 11.8%, reaching 12,037 points, while total market capitalisation
increased to SAR 10.2 trillion - reflecting strong investor confidence in the Kingdom’s long term
strategy.
Meanwhile, the Nomu Market has evolved as a launchpad for high-growth enterprises, with its
market capitalisation expanding by 69.2% to SAR 58.9 billion and the number of listings
increasing by 198.1% over the same period. These metrics signal deepening investor
participation in emerging sectors aligned with national development goals.
Saudi Arabia’s equity capital market is structured to accommodate companies across various
stages of growth. The main market (Tadawul) is geared toward large, established firms that
meet rigorous regulatory and disclosure standards, providing a transparent and stable
environment for institutional and foreign investors.
In parallel, the Nomu, or Parallel market, offers a flexible and efficient listing venue for SMEs
and early-stage businesses, enabling quicker access to equity funding and serving as a
preparatory platform for eventual Main market transition. This dual-market structure fosters
inclusivity, drives IPO readiness and supports the broader goals of private sector
development and economic diversification.
A wide range of financing instruments - including IPOs, rights issues, sukuk and private
Placements - enables capital formation across sectors, underpinning the Kingdom’s ambition
to build a globally competitive and innovation-driven economy.
In the first four months of 2025 alone, twelve companies went public on the Saudi Exchange,
raising over SAR 7.1 billion and underscoring the strength of regulatory reforms and investor
appetite. This momentum reflects a maturing capital ecosystem, where IPOs are increasingly
viewed as strategic tools for growth and capital access. The pipeline remains strong, with
more than twenty-five companies - including Flynas, SAMACO Motors and Tabby - expected to
list by year-end. These anticipated offerings span fintech, real estate, healthcare and
consumer tech, highlighting sectoral breadth and alignment with the priorities of Vision 2030.
Between 2021 and 2024, a divergence emerged in IPO valuations between the Main market
and Nomu. The Main market’s median EV/EBITDA multiple rebounded to 22.3x in 2024,
supported by marquee listings such as MBC Group (164.4x). In contrast, Nomu’s multiples
declined to 11.2x, reinforcing its position as a high-growth, early-stage platform.
High-profile IPOs like ACWA Power, Elm, Jahez and Miahona illustrate how alignment with
strategic sectors - clean energy, digital services, infrastructure - has led to strong investor
interest and premium valuations. This bifurcated structure enables both institutional and
venture-oriented capital to participate meaningfully in market expansion.
IPO proceeds from 2021 to 2024 reflect the Kingdom’s commitment to sectoral diversification:
This broad distribution highlights capital markets as a reflection of the Kingdom’s economic
Transformation - supporting both essential services and high-potential innovation-driven
industries.
IPO activity in Saudi Arabia is influenced by fiscal cycles, regulatory approval timelines and
market sentiment. Q1 and Q4 are typically most active, while Q2 and Q3 experience seasonal
slowdowns due to Ramadan and summer holidays.
From 2021 to 2024:
Saudi Arabia led the GCC in 2024 with forty-two listings - accounting for over 75% of total
regional IPOs. Eight of the ten most oversubscribed offerings originated in the Kingdom.
Strategic reforms led by the CMA have significantly improved market access and liquidity:
Complementary funding tools, including Sukuk and rights Issues, have supported capital
formation across the public and private sectors. These instruments have deepened market
liquidity and enabled flexible, Shariah-compliant financing options for infrastructure, energy
and consumer sectors.
Saudi Arabia’s capital markets are now embedded into the Kingdom’s long-term economic
agenda. The dual-market structure - Tadawul and Nomu - offers scalable access to capital for
both large enterprises and SMEs. Continued regulatory enhancements and streamlined listing
processes will be key to sustaining a diverse and active IPO pipeline.
Key growth sectors such as healthcare, renewables, technology and digital infrastructure are
expected to drive the next wave of listings, further aligning with Vision 2030’s emphasis on
innovation and sustainability. Investor confidence remains robust, particularly in post-IPO
performance across these strategic sectors.
Capital markets are more than mechanisms for raising capital - they reflect a nation’s
economic identity and future ambitions. In Saudi Arabia, the message is clear: resilience,
transformation and global leadership.
2025 may be remembered not just as a breakout year for IPOs, but as a turning point where
the Kingdom moved from participating in regional capital markets to defining them. With
Vision 2030 as a guide, Saudi Arabia’s capital markets are on track to become a benchmark
for emerging market innovation, inclusivity and long-term value creation.
This summary highlights key insights from our IPO Thought Leadership analysis on Saudi
Arabia’s evolving capital markets. For a deeper dive into the data, trends, case studies and
regulatory developments, please refer to BDO KSA’s Report.
The presentation includes detailed sector-wise IPO performance, valuation trends, regulatory
timelines and illustrative IPO case studies spanning 2021–2025.
BDO’s deal advisory experts across the Middle East region apply the practical experience and knowledge gained from working with clients locally and worldwide.
Please reach out to the relevant partner in your local BDO firm for further information.
Author: Muhammad Assad Butt
Head of Deal Advisory Services, BDO Saudi Arabia
monetisation of state assets, scale private sector growth and unlock new sources of financing
for national megaprojects and SMEs alike. Between 2021 and 2024, the Tadawul All Share
Index (TASI) rose by 11.8%, reaching 12,037 points, while total market capitalisation
increased to SAR 10.2 trillion - reflecting strong investor confidence in the Kingdom’s long term
strategy.
Meanwhile, the Nomu Market has evolved as a launchpad for high-growth enterprises, with its
market capitalisation expanding by 69.2% to SAR 58.9 billion and the number of listings
increasing by 198.1% over the same period. These metrics signal deepening investor
participation in emerging sectors aligned with national development goals.
Saudi Arabia’s equity capital market is structured to accommodate companies across various
stages of growth. The main market (Tadawul) is geared toward large, established firms that
meet rigorous regulatory and disclosure standards, providing a transparent and stable
environment for institutional and foreign investors.
In parallel, the Nomu, or Parallel market, offers a flexible and efficient listing venue for SMEs
and early-stage businesses, enabling quicker access to equity funding and serving as a
preparatory platform for eventual Main market transition. This dual-market structure fosters
inclusivity, drives IPO readiness and supports the broader goals of private sector
development and economic diversification.
A wide range of financing instruments - including IPOs, rights issues, sukuk and private
Placements - enables capital formation across sectors, underpinning the Kingdom’s ambition
to build a globally competitive and innovation-driven economy.
In the first four months of 2025 alone, twelve companies went public on the Saudi Exchange,
raising over SAR 7.1 billion and underscoring the strength of regulatory reforms and investor
appetite. This momentum reflects a maturing capital ecosystem, where IPOs are increasingly
viewed as strategic tools for growth and capital access. The pipeline remains strong, with
more than twenty-five companies - including Flynas, SAMACO Motors and Tabby - expected to
list by year-end. These anticipated offerings span fintech, real estate, healthcare and
consumer tech, highlighting sectoral breadth and alignment with the priorities of Vision 2030.
Between 2021 and 2024, a divergence emerged in IPO valuations between the Main market
and Nomu. The Main market’s median EV/EBITDA multiple rebounded to 22.3x in 2024,
supported by marquee listings such as MBC Group (164.4x). In contrast, Nomu’s multiples
declined to 11.2x, reinforcing its position as a high-growth, early-stage platform.
High-profile IPOs like ACWA Power, Elm, Jahez and Miahona illustrate how alignment with
strategic sectors - clean energy, digital services, infrastructure - has led to strong investor
interest and premium valuations. This bifurcated structure enables both institutional and
venture-oriented capital to participate meaningfully in market expansion.
IPO proceeds from 2021 to 2024 reflect the Kingdom’s commitment to sectoral diversification:
- Utilities led with SAR 9.0 billion, followed by Food & staples retailing, Consumer services, Technology and Healthcare
- Mid-sized sectors such as Financial services, Industrial goods and Real estate also saw meaningful activity
- Niche sectors including Insurance, REITs and Life sciences demonstrated growing investor interest.
This broad distribution highlights capital markets as a reflection of the Kingdom’s economic
Transformation - supporting both essential services and high-potential innovation-driven
industries.
IPO activity in Saudi Arabia is influenced by fiscal cycles, regulatory approval timelines and
market sentiment. Q1 and Q4 are typically most active, while Q2 and Q3 experience seasonal
slowdowns due to Ramadan and summer holidays.
From 2021 to 2024:
- 2021: Post-pandemic rebound with SAR 17.2 billion raised in the main market
- 2022: Peak year with SAR 37 billion from 17 IPOs in the main market
- 2023: Slowdown amid inflationary pressure but continued alignment with Vision 2030
- 2024: Resurgence with SAR 14 billion raised across 15 IPOs in the main market.
Saudi Arabia led the GCC in 2024 with forty-two listings - accounting for over 75% of total
regional IPOs. Eight of the ten most oversubscribed offerings originated in the Kingdom.
Strategic reforms led by the CMA have significantly improved market access and liquidity:
- Introduction of SPACs and enhanced direct listings
- Relaxed investor qualifications for Nomu
- Expanded foreign ownership rules in Makkah and Madinah
- Development of cross-border listing frameworks, depositary receipts and international ETFs.
Complementary funding tools, including Sukuk and rights Issues, have supported capital
formation across the public and private sectors. These instruments have deepened market
liquidity and enabled flexible, Shariah-compliant financing options for infrastructure, energy
and consumer sectors.
Saudi Arabia’s capital markets are now embedded into the Kingdom’s long-term economic
agenda. The dual-market structure - Tadawul and Nomu - offers scalable access to capital for
both large enterprises and SMEs. Continued regulatory enhancements and streamlined listing
processes will be key to sustaining a diverse and active IPO pipeline.
Key growth sectors such as healthcare, renewables, technology and digital infrastructure are
expected to drive the next wave of listings, further aligning with Vision 2030’s emphasis on
innovation and sustainability. Investor confidence remains robust, particularly in post-IPO
performance across these strategic sectors.
Capital markets are more than mechanisms for raising capital - they reflect a nation’s
economic identity and future ambitions. In Saudi Arabia, the message is clear: resilience,
transformation and global leadership.
2025 may be remembered not just as a breakout year for IPOs, but as a turning point where
the Kingdom moved from participating in regional capital markets to defining them. With
Vision 2030 as a guide, Saudi Arabia’s capital markets are on track to become a benchmark
for emerging market innovation, inclusivity and long-term value creation.
This summary highlights key insights from our IPO Thought Leadership analysis on Saudi
Arabia’s evolving capital markets. For a deeper dive into the data, trends, case studies and
regulatory developments, please refer to BDO KSA’s Report.
The presentation includes detailed sector-wise IPO performance, valuation trends, regulatory
timelines and illustrative IPO case studies spanning 2021–2025.
How BDO can help
BDO’s deal advisory experts across the Middle East region apply the practical experience and knowledge gained from working with clients locally and worldwide. Please reach out to the relevant partner in your local BDO firm for further information.
Author: Muhammad Assad Butt
Head of Deal Advisory Services, BDO Saudi Arabia