While Pakistan’s stock market navigates familiar cycles of political uncertainty and economic stagnation, a quiet revolution has been unfolding in the Gulf.
IPO MARKET
While Pakistan’s stock market navigates familiar cycles of political uncertainty and economic stagnation, a quiet revolution has been unfolding in the Gulf.
Saudi Arabia’s Tadawul exchange has transformed from a regional player into a global heavyweight, powered by an unprecedented boom in Initial Public Offerings (IPOs). This is not a story of mere oil wealth; it is a masterclass in strategic vision that Pakistan’s capital markets desperately need to study. The contrast is stark: where Pakistan sees IPOs as sporadic corporate events, Saudi Arabia has weaponised them as a core instrument of national economic transformation.
The numbers are brutal. Between 2020 and 2025, Saudi Arabia executed the most successful IPO wave in emerging-market history outside China. Pakistan, in the same period, listed fewer than ten meaningful companies. This divergence isn't accidental. It is the direct result of a deliberate, state-driven strategy in Riyadh, rather than a reactive, ad-hoc approach in Karachi. The table below captures the core of this missed opportunity:
Pakistan’s IPO anaemia stems from a vicious cycle. Macroeconomic instability and currency volatility deter the large, stable foreign capital that IPOs need to succeed. The persistent ‘family-owned’ mindset of many large Pakistani businesses makes them reluctant to undergo the scrutiny of public markets, preferring debt over equity dilution. Furthermore, the absence of a clear, high-profile pipeline from the government, such as the privatisation of state-owned enterprises (SOEs), fails to create the market excitement and depth needed to attract a sustainable investor base. The result is a market that fails to reflect the true dynamism of Pakistan’s private sector, leaving it shallow and vulnerable.
The Saudi blueprint, however, provides a clear playbook. The Kingdom’s success is built on three pillars that Pakistan can adapt. First, the power of a national vision. Vision 2030 was a command to the economy, explicitly mandating the listing of state giants and private champions to deepen the market. Pakistan lacks an equivalent, unified ‘Capital Markets 2030’ strategy linking IPOs to national growth.
Second, proactive privatisation as a catalyst. The landmark IPO of Aramco, followed by a stream of other state-affiliated entities, sent an unambiguous signal to the world about Saudi Arabia’s commitment. Pakistan’s stalled privatisation programme, in contrast, tells a story of hesitation.
Third, aggressive global marketing. Saudi authorities didn’t wait for investors to come to them; they embarked on relentless global roadshows, selling a compelling growth story and the future of the Saudi economy. Pakistan’s narrative, unfortunately, is often dominated by political risk, overshadowing its immense consumer market potential.
The landmark IPO of Aramco, followed by a stream of other state-affiliated entities, sent an unambiguous signal to the world about Saudi Arabia’s commitment. Pakistan’s stalled privatisation programme, in contrast, tells a story of hesitation
Saudi Arabia has also built a junior league that actually works. The Nomu market (parallel market) has lighter disclosure, a SAR10 million market-cap floor, and shorter listing timelines. More than 100 companies have used it as a stepping stone; several have already graduated to the Main Market. Pakistan’s GEM board, launched with similar fanfare, is a graveyard with exactly three listings in eight years.
The economic cost of Pakistan’s stagnant IPO market is profound. A vibrant primary market is the lifeblood of a modern economy. It allows companies to raise capital for expansion, creates wealth for citizens through public ownership, and provides entrepreneurs with an exit to recycle capital into new ventures.
The World Bank has repeatedly emphasised that deep capital markets are critical for long-term, resilient growth. By failing to catalyse its IPO market, Pakistan is stifling its own corporate growth, encouraging brain drain and capital flight, and missing a golden opportunity to build a more inclusive asset-owning economy.
The path forward requires decisive action. Pakistan’s financial authorities, the SECP, PSX and Ministry of Finance, must jointly launch a ‘Pakistan Listings Initiative’. This should begin by kickstarting the privatisation programme with one or two high-profile, well-structured SOE IPOs (like Pakistan International Airlines) to build immediate momentum.
Most importantly, a dedicated task force must be formed to aggressively market these opportunities to international institutional investors in financial hubs like London, Hong Kong and Riyadh itself, reframing the Pakistan story around its 220-million-strong consumer base and digital potential.
Saudi Arabia has demonstrated that a conservative economy can rapidly transform its capital markets through sheer will and strategic execution.
For Pakistan, the lesson is clear: a thriving stock market isn't a passive outcome of economic stability; it is an active driver of it. By learning from the Riyadh playbook, Pakistan can unlock billions in dormant capital, fuel its next wave of corporate champions, and finally offer its people a stake in their own economic future. The IPO is not just a financial instrument; in the right hands, it is a tool for nation-building.
Saudi Arabia vs Pakistan: A Tale of Two IPO Pipelines
Metric (2019–2024) Saudi Arabia Pakistan (PSX)
(Tadawul + Nomu)
Total IPOs 120+ < 15
SME / Growth Market Listings 70+ (Nomu) 1 (GEM Board)
Avg. Annual Capital Raised ~$10–12 bn <$200 mn
Government-Driven Listings Very active Stalled for years
(utilities, energy, services)
Retail Participation High Weak
Valuation Multiples Strong, premium pricing Depressed, thin volumes
Sources: Bloomberg "Global IPO Proceeds Review" (2023), Tadawul & PSX Official Statements, Author's Analysis.
The writer is an investment banker based in Saudi Arabia, with eight years of experience across consulting, corporate finance, strategy and investments. He can be reached at: linkedin.com/in/mustafafahim
