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HSBC holds a robust pipeline of 45 mergers and acquisitions and initial public offering mandates across the Gulf, according to its MENAT chief executive. Selim Kervanci said in a June 19 interview with The National that investor sentiment and equity capital market activity would require at least one quarter to recover after the signing of the US-Iran framework agreement. He hosted the HSBC GCC Exchanges Conference in London where officials from Gulf stock exchanges and global investors expressed optimism for a stronger rebound in listings and dealmaking than before the conflict.
Kervanci explained that the four months of uncertainty stemming from the US-Israeli bombing of Iran and subsequent retaliatory strikes had stemmed the flow of M&A and new listings on regional bourses. “It really depended on the deal and with the prospect of a permanent agreement now, we expect the market to open up in the fourth quarter for the ECM transactions,” he told The National. The war disrupted global energy markets and caused sharp swings in regional stock markets until a fragile ceasefire took hold in early April.
Markets responded positively to the peace framework, which ends hostilities on all fronts including in Lebanon and reopens the Strait of Hormuz. Abu Dhabi Securities Exchange and Dubai Financial Market climbed to three-month highs after the 14-point memorandum of understanding was unveiled, The National reported. The agreement also features the lifting of the blockade on Iranian ports and a conditional $300 billion investment commitment.
Companies from the food, consumer, retail and technology sectors in Saudi Arabia and the United Arab Emirates form the core of the intact IPO pipeline, Kervanci said. These firms delayed their plans amid wartime uncertainty but did not cancel them, awaiting suitable market windows and valuations. “The region has once again proven its resilience, which is seen as a competitive advantage by investors,” Kervanci stated.
The corporate sector posted a strong performance in 2025 with buffers to weather the challenges, supported by agile policies from regulators and governments, according to the HSBC executive. Even as sectors such as tourism, retail, property and aviation experienced a lull, long-term fundamentals remain solid. Kervanci indicated that HSBC continues to invest in strengthening its presence across the region’s markets and business lines.
Postwar reconstruction is set to accelerate infrastructure projects requiring spending in the double-digit billions of dollars, Kervanci assessed. An International Monetary Fund review estimated a 7 percent cumulative output loss over five years for the Gulf following the conflict, with energy infrastructure repairs alone potentially costing $58 billion according to Rystad Energy. Dealogic data cited by The National showed that firms across the wider region raised $7.1 billion from 61 listings in 2025, down from $13.1 billion in 2024, while S&P Global Market Intelligence reported 27 GCC IPOs raising $4.1 billion in the first half of 2025 before the slowdown.
