Investment banks in the Middle East marked a significant year in 2025, characterized by unprecedented sukuk issuances and prominent initial public offerings (IPOs).
The investment banking sector in the region experienced notable growth as various companies and governments sought to leverage post-pandemic economic recovery, energy diversification, and ongoing capital market reforms. Mergers and acquisitions (M&A) were particularly concentrated in the energy sector, while regional sovereign wealth funds expanded their investments internationally.
KFH Capital distinguished itself as a leader in Islamic finance, executing a record number of sukuk issuances for both sovereign entities and corporations. Noteworthy among these transactions was a landmark $3 billion sukuk for Saudi Aramco.
As Middle Eastern countries accelerate their moves toward economic diversification and greater regional cooperation, these major investment banks are crucial in steering the financial trajectory of the area.
Best Investment Bank: KFH Capital
KFH Capital took charge of several major mandates in the Middle East, successfully completing transactions exceeding $60 billion since its inception in 1999. Known for its Sharia-compliant financing, the firm showed particular prowess in debt capital markets (DCM), where it managed 16 issuances for both sovereign and corporate clients during 2025.
Key sovereign transactions included $1 billion sukuk offerings from Egypt, Oman, and Qatar. On the corporate front, KFH’s significant clients in the energy sector included a $3 billion sukuk issuance for Saudi Aramco and $1.5 billion issuances for ADNOC, based in the UAE.
The bank issued $500 million in tier-1 capital securities for Turkey’s state-owned Vakif Katilim Bankasi and completed a $600 million lease certificate issuance for TT Varlik Kiralama, marking the first instance of such a deal for a Turkish telecommunications company.
Mergers & Acquisitions: Standard Chartered
Standard Chartered Bank maintains a robust M&A division in the Middle East, serving multinational clients with a team of over 130 experienced bankers specializing in sectors like oil and gas, metals and mining, diversified industries, and cleantech. The bank’s established presence across eight countries in the region enhances its ability to secure significant M&A transactions.
As the exclusive financial advisor for Saudi Aramco in acquiring a 25% stake in Unioil Petroleum, one of the Philippines’ largest independent oil companies, Standard Chartered supported Aramco in diversifying its supply chains.
In the power and energy domain, the bank advised Abu Dhabi’s Multiply Group on the sale of its district cooling business for 3.9 billion Emirati dirhams (approximately $1.1 billion). Additionally, the bank assisted Arise, an industrial infrastructure developer in Africa, with an equity capital infusion. It also advised Tata Group’s Titan subsidiary on acquiring a controlling 67% stake in Dubai-based luxury retailer Damas Jewellery for an enterprise value exceeding 1 million dirhams.
Equities: EFG Hermes
With a strong presence in Egypt and operations across the Middle East, EFG Hermes has been active for 40 years and now operates in Bahrain, Kuwait, Oman, Saudi Arabia, the UAE, as well as in Kenya and Nigeria. The firm showcased its expertise in equity capital markets (ECM) by securing 15 mandates across various sectors, many of which pertained to IPOs.
Notable IPOs included Almoosa Healthcare’s $449 million offering in Saudi Arabia, as well as those of online retailer Nice One at about $323 million, Specialized Medical at $500 million, and vehicle leasing company Cherry Trading, which generated 252 million Saudi Arabian riyals (approximately $67 million) in proceeds.
Al Masar Al Shamil, a leading education group in the Gulf Cooperation Council, bolstered its position with 599 million riyals in IPO proceeds. Notable IPOs in the UAE included construction firm Alec Holdings, which raised $381 million, and IT service provider Alpha Data, which raised $163 million to enhance its digital services. Additionally, as part of Oman’s privatization and capital markets reform efforts, state-owned Asyad Shipping launched its IPO, raising $332.8 million.
EFG Hermes also facilitated a dual listing on the Abu Dhabi Securities Exchange for Egyptian company Orascom Construction.
Debt: KFH Capital
KFH Capital continues to push the boundaries of Islamic finance in the region by coordinating numerous large Sharia-compliant transactions for both sovereign and corporate issuers. In 2025, the firm arranged a $1 billion sukuk private placement for the government of Egypt.
Oman’s recent $1 billion sukuk issuance marked the country’s first international capital markets transaction since 2021. KFH participated in a $4 billion issuance for Qatar, which included $3 billion in sukuk alongside a $1 billion conventional bond offering, achieved at the narrowest credit spread in the country’s history.
The firm played a pivotal role as bookrunner when Saudi Aramco raised $3 billion through sukuk and managed a $1.5 billion sukuk issuance for ADNOC, one of the largest high-grade corporate Islamic debt deals to date. KFH also facilitated a $2 billion issuance for the state-owned Saudi Real Estate Refinance Company, aimed at expanding the nation’s housing finance sector.