The Gulf’s blockbuster run of initial public offerings — a rare bright spot in global equity markets over the past three years — could soon face a reality check as trade war fears loom over the world economy. 

Escalating tensions sparked by US President Donald Trump’s sweeping new tariffs announced on April 2 have roiled markets worldwide and undercut hopes that American IPOs were poised to roar back in 2025. Several high-profile listings in the United States — including ticket marketplace StubHub, fintech firm Klarna and Israeli online trading platform eToro — have reportedly been postponed as US stock markets plunged.

Gulf equities have not been spared from the global rout. Saudi Arabia’s benchmark Tadawul All Share Index (TASI) fell about 5% between April 3 and April 8. Dubai’s DFM General Index and Abu Dhabi’s main gauge both dropped roughly 3% during the same period. The S&P 500 tumbled 8% between April 3 and April 7 and Europe’s STOXX 600 fell 9%.

The Gulf’s IPO pipeline remained active in the lead-up to this new turmoil, including momentum toward two highly anticipated issuances from regional airlines. On March 28, Saudi Arabia’s Capital Market Authority gave budget carrier Flynas the green light to sell a 30% stake through an IPO.