Saudi Arabia is set for a surge in initial public offerings (IPOs) over the next two years, with up to 56 new listings expected, according to Al Rajhi Capital.

Dr. Sultan Altowaim, Head of Research at Al Rajhi Capital, shared that seven IPOs have already been approved or closed, with two scheduled for listing this month. Additionally, 97 IPO applications are being reviewed by the Capital Market Authority (CMA). He estimated that half of these could receive approval, pushing the total number of IPOs to 56 by the end of 2026.

This optimistic outlook follows a slower IPO market in 2023, which only saw 14 listings. However, 2024 witnessed a recovery, partly due to a major secondary offering by Saudi Aramco, raising SAR 64 billion. This surpassed the SAR 57 billion raised in 2022.

Dr. Altowaim also noted that the Saudi market could handle 25-30 listings annually without significantly affecting liquidity. The revival in IPO activity could outpace the numbers seen in 2022, marking a robust recovery for the kingdom’s stock market.