Arqaam Capital, a financial services firm headquartered in Dubai’s DIFC, is intensifying its investment banking efforts as deal activity surges in Saudi Arabia and the UAE. Originally established as a sales and trading brokerage, the company is now focusing on equity capital markets (ECM), debt capital markets (DCM), and loan syndication. The firm has recently obtained licenses in Saudi Arabia that will allow it to advise on ECM mandates amid increasing competition and tight fees in the market.

Rawad Kassouf, Head of ECM Execution & Syndicate at Arqaam, stated that the firm is expanding its Saudi team and effectively utilizing its team of 27 research analysts to enhance research capabilities. He emphasized the importance of regional and international distribution for issuers as part of their growth strategy. Arqaam recently acted as a joint book runner for Dubai Holding REIT, and Kassouf noted that the firm is receiving deals from the UAE, Saudi Arabia, and Oman, with expectations to advise on more ECM transactions by the end of the year.

Kassouf pointed out that while Saudi Arabia and the UAE lead in capital markets activity, Oman’s potential upgrade from frontier to emerging market status could attract increased foreign direct investment (FDI) and enhance valuations. He mentioned that Saudi Arabia is likely to retain its leadership in ECM, particularly driven by industrial listings, followed closely by real estate listings. “The large families in the kingdom who have huge real estate arms are all considering listing,” Kassouf remarked, highlighting a scarcity of such companies on Tadawul.

In terms of aftermarket performance for recent issuances, Kassouf indicated that bankers must balance issuer and investor expectations to navigate upcoming IPOs successfully. He anticipates a busy third and fourth quarter in both Saudi Arabia and the UAE, noting that many initiatives will be spearheaded by government-related entities, although privately owned companies are increasingly considering listings.

Omar Musharraf, Managing Director of Debt Solutions and DCM at Arqaam Capital, has been tasked with establishing and scaling the debt platform. He aims to anchor the flow business through DCM and loan syndications while also targeting higher-margin segments of structured finance and private credit. The GCC DCM market has surpassed $1 trillion in outstanding debt as of the end of Q1 2025, a 10% increase year on year.

Musharraf indicated that total DCM issuance in Q1 2025 grew by 11% over the quarter to $89 billion, though it was down 3% year on year. He noted Saudi Arabia holds the largest share of DCM outstanding at 45.1%, followed by the UAE at 29.9% and Qatar at 13%. Despite global market challenges, the regional debt capital markets remain active, with issuers exploring various options, tightening pricing, and focusing on the Middle East.

Musharraf also mentioned the need to build a team and expand research coverage to include fixed income analysts. He added that Arqaam is currently engaged in multiple transactions and is evaluating a pipeline of private credit opportunities, stating, “It’s a busy time.”

The DCM business is expected to start modestly, focusing on high-quality credits that align with national priorities, particularly in oil and gas. Arqaam is also looking to tap into the sukuk market and AT1 issuances, as demand and supply in these markets remain strong. Musharraf noted that about $35 billion in debt refinancing is anticipated across the GCC during 2025–2026, driven by maturing debt and ongoing economic diversification.

“Debt refinancing alone will keep us active, with a significant volume of maturities on the horizon,” he concluded, emphasizing the potential for extensive market activity moving forward.