A new report reveals that approximately 77 percent of startup founders in Saudi Arabia are considering an initial public offering, with 91 percent preferring a domestic listing on the Saudi Exchange. The study, released by Endeavor Saudi Arabia in partnership with Saudi Venture Capital Co., highlights a growing pipeline of companies preparing for public markets as the Kingdom's private capital ecosystem matures.
Report Highlights
Titled “From Startup to IPO: Strengthening the IPO Pipeline in Saudi Arabia,” the report points to a shift in founder and investor sentiment. More firms are being built to meet the scale, governance, and operational standards required for listing. Saudi Arabia's diversification push is gaining momentum, with more entrepreneurs turning to public markets for growth and long-term value. As the Kingdom seeks to reduce its decades-long reliance on oil, deepening capital markets has become a core pillar of Vision 2030.
Officials' Comments
Nora Alsarhan, deputy CEO and chief investment officer at SVC, said: “These indicators reflect the accelerated development of Saudi Arabia’s private capital ecosystem, built through cumulative efforts.” Some of the elements driving IPO growth include ongoing ecosystem development, increased early-stage capital deployment, improved regulatory frameworks, and enhanced company readiness.
According to the report, the rising number of entrepreneurs planning to list on Tadawul reflects growing confidence in the Saudi Exchange as a platform for long-term growth and value creation, collectively supporting the transition of high-growth companies toward public listings.
Lateefa Alwaalan, managing director at Endeavor Saudi Arabia, added: “This report reflects a more advanced stage in the evolution of Saudi Arabia’s entrepreneurial ecosystem. It shows a clear shift in how founders are thinking about growth, with more companies being built with the scale, structure, and ambition required to access public markets.” She emphasized that strengthening the IPO pipeline is key to enabling long-term, sustainable growth across the ecosystem.
Further Development Areas
While momentum is building, the report flagged areas for further development, including strengthening institutional capabilities in governance and strategy, as well as addressing IPO-related costs and improving access to growth-stage capital. In January, a report by Markaz revealed that the Kingdom strengthened its role in the Gulf Cooperation Council's IPO market in 2025, raising $4.1 billion in proceeds, the highest in the region.
