The recovery of initial public offerings across the Middle East is increasingly tied to the outcome of a small number of high-profile and closely watched deals, as issuers and investors assess whether the region can sustain the momentum seen in recent years.

Bankers and market participants say several proposed listings, particularly in Saudi Arabia and the Gulf, are viewed as critical tests for confidence after a period of global volatility and cautious risk appetite.

The Middle East had been one of the world’s most active IPO regions, buoyed by strong state backing, deep domestic liquidity and ambitious economic diversification programmes.

That momentum has slowed as higher interest rates, uneven global equity performance and geopolitical uncertainty prompted some companies to delay or resize offerings.

Attention has now shifted to a pipeline of what advisers describe as “promising” deals, spanning sectors such as energy services, infrastructure, technology and consumer businesses.

Saudi Arabia remains central to expectations of an IPO revival, with several state-linked and private sector companies preparing potential listings on the Tadawul exchange.

Successful execution of these deals is seen as vital to restoring a sense of momentum, particularly as regional governments continue to use capital markets as tools to support long-term economic transformation plans.

Elsewhere in the Gulf, exchanges in the United Arab Emirates and Qatar are also monitoring market conditions as issuers weigh timing and valuation.

Analysts note that the fate of the upcoming deals will influence whether international investors return in greater numbers or remain selective.

Strong performance could reinforce the Middle East’s reputation as a relatively resilient IPO market, while further delays or weak trading might prolong the slowdown.

For now, the region’s IPO recovery hinges less on broad market trends and more on whether a handful of flagship listings can convert cautious optimism into sustained investor confidence.