Are Gulf equity markets and the IPO environment becoming a real exit route for private investors?
Yes — the IPO market in the Gulf has emerged as a viable and increasingly important exit route for investors, complementing traditional trade sales and strategic exits. Three structural enablers have driven this shift: the Gulf's inclusion in the MSCI Emerging Markets Index, a significant loosening of regulations around listing thresholds and foreign investor participation, and the active development of exchanges such as TADAWUL in Saudi Arabia and ADX in Abu Dhabi.
For private equity investors, the existence of a functioning IPO window is strategically significant. It creates a clearer, more predictable path to exit — and that clarity makes the broader region more attractive for global fund deployment. Historically, exit options in the Gulf were limited primarily to trade sales or secondary transactions with other strategic buyers. The maturation of local capital markets changes that calculus considerably.
What MSCI inclusion means for Gulf markets
The inclusion of Gulf markets in the MSCI Emerging Markets Index means that any global fund benchmarked against or tracking this index must now hold a mandatory allocation to Gulf equities. This creates a structural, recurring demand for listed Gulf assets — and gives companies and investors alike a larger, more liquid pool of potential buyers at the point of IPO or subsequent secondary offerings.
The regulatory changes have been equally important. Authorities across the GCC have progressively lowered the barriers to listing — relaxing minimum free-float requirements and, critically, allowing foreign investors to participate directly at the IPO stage rather than only acquiring shares in secondary trading. This access reform makes Gulf listings genuinely competitive with international alternatives for a company seeking broad investor participation. You can explore the full conversation on Listenly's Beyond the Deck page.
The macro backdrop reinforces the case. Gulf GDP growth runs well above global averages, and dollar-pegged currencies across the GCC eliminate foreign exchange risk entirely for international investors — a structural advantage that distinguishes the Gulf from most other emerging market destinations. Together, these factors position Gulf public markets as a legitimate component of the exit toolkit, not merely a theoretical option.
"This is a private business where CEOs never had to answer to anybody but himself and his family members who sit on the board. And all of a sudden, you have an international investor who says, I love what you've done with the business, but these are my ideas."— Eyad Faraj, Partner, Roland Berger · Beyond the Deck
About Eyad Faraj
Eyad Faraj is a partner at Roland Berger, where he leads work within the transaction and investor services practice across the GCC. Based in Bahrain, he brings a distinctly multi-angle view to Gulf investment dynamics — one built not from consulting alone, but from direct prior experience in capital markets and investment banking. That dual background means Faraj has sat on both sides of the table: structuring transactions and advising on strategy, but also operating within the financial ecosystem itself.
His experience spans the full arc of the Gulf's investment transformation — from the early era of sovereign-vehicle-led domestic deployment through to today's more sophisticated private equity and capital markets environment. Having worked both inside and outside the region, Faraj holds a perspective that bridges international investor expectations with the specific governance, cultural, and regulatory realities of Gulf family-owned businesses and sovereign entities. This makes him a particularly credible voice on questions of market structure, exit mechanics, and what it genuinely takes to attract and retain global capital in the GCC.