May 6, 2025

CEO Hosam Arab gave a 12-18 month timeline, but said IPO could happen in 12 months if market conditions turn sooner rather than later, however, the impact of oil prices and broader recession are concerns PHOTO The IPO of UAE-founded BNPL tech Tabby could happen in 12 months if market conditions are right, and in the meantime the company is working to ensure it is ready to list. CEO Hosam Arab said the firm, which was founded in Dubai but later relocated to Riyadh, was continuing to build and prepare for IPO, while also waiting to make sure the markets had turned around. Arab said there had been “one BNPL casualty” in the form of Swedish firm Klarna, which announced last month it would delay its planned US IPO. He said Tabby’s IPO timeline is within the next 12-18 months, with the shorter end of the timeline likely if the markets turn around sooner. The firm raised $160 million in Series E funding earlier this year, meaning there is “no rush” to go public, he added. The February private round was “definitely the right call”, and made sure there were buffers in place for changing market conditions. “Our market has been somewhat resilient in the short-term. Today, we are not immune to changes in oil prices, and that’s where we are a bit more concerned, around a broader recession and impact on consumer spend and credit performance in the markets we operate in.” Arab said that while the IPO market for state-led and real estate entities has been tested in the region, there have been relatively few IPOs among growth plays, such as those in the tech space. “We grew 85% last year. For investors in this region to price this hasn’t been tested yet. We have seen investors very comfortable around yield plays, so there is a question mark for us.” He said questions remain about who will price growth plays—experienced global investors or regional investors, such as sovereigns, that are becoming more comfortable with growth plays. Arab noted that retaining international investors could be a challenge, as share allocations for global investors in the region tend to be small. This means those sold on the story of the company and the market may find it not worth retaining stocks for the long term. Mohamad Ballout, CEO and co-founder of cloud kitchen firm Kitopi, said his company was two or three years away from IPO. He said his expectations from the region’s market are that they provide a win in all scenarios. If markets remain solid, with continued listings, that will be a win, but if the oil price falls and markets do not perform as well, Kitopi sees it as an opportunity to “double down and do more”, he said. “Given our window of wanting to go public is next couple of years, there’s actually a lot of opportunities, whatever happens on the macro stage, and things private companies can do better.” (Reporting by Imogen Lillywhite; editing by Seban Scaria) Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here . © ZAWYA 2025 ZAWYA NEWSLETTERS Get insights and exclusive content from the world of business and finance that you can trust, delivered to your inbox. Subscribe to our newsletters: