Trump tariffs could disrupt Gulf’s IPO hot streak as markets sink
New US tariffs have roiled markets worldwide and initial public offerings should not be expected to escape unscathed.
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.
