Noon, the Middle East’s homegrown e-commerce giant, is planning a bold entry into public markets with a dual listing in the UAE and Saudi Arabia within two years.
Founder Mohamed Alabbar states the company is “almost” profitable, setting the stage for a strategically timed IPO that could make Noon one of the region’s first major digital companies to go public.
Launched in 2016 with funding from Saudi Arabia’s Public Investment Fund, Noon has raised $2.7 billion and is valued near $10 billion, with operations in Saudi Arabia, the UAE, and Egypt.
Stay informed with the latest updates. Follow KT on WhatsApp Channels.
The business has rapidly scaled, employing about 40,000 delivery drivers and generating an estimated $5 to $6 billion in gross merchandise value (GMV) in 2024. Despite fierce competition from Amazon, Shein, Ikea, and Meituan, Noon is well-positioned, though not highly profitable yet.
Expansion plans
Operational efficiencies are key in Noon’s strategy. The company is testing autonomous delivery vans and three-wheelers—leased to cut costs. Alabbar said these robots will work 24/7 and potentially reduce the driver workforce by 2027, aiding profitability. Mergers and acquisitions are also being considered, with India as a potential expansion target.
Despite these developments, Noon aims to distinguish itself from the Silicon Valley model of long-term losses. Alabbar emphasized that Noon must prove profitability before its IPO. “Our board, the world, and banks won’t accept that nonsense anymore,” he told the Financial Times.
Market experts suggest that with its growing scale, improved operations, and notable valuation, Noon is on the brink of a major shift—from private disruptor to public-listed leader. If the company achieves profitability and convinces markets of its fundamental strength, its dual IPO could be a defining moment for digital commerce in the GCC.
IPO activity in GCC
Noon’s listing plans align with a cautiously resilient GCC IPO environment. In the first half of 2025, IPO activity held steady despite global volatility, with the GCC capital markets seeing 24 to 27 IPOs raising $3.4 to $4.1 billion, showing a slight year-on-year decline but strong investor interest.
Saudi Arabia led the IPO scene, accounting for over 85% of GCC proceeds with $2.86 billion from 22 listings. The UAE, however, saw a significant drop in proceeds—around $163 million—from mainly a single listing, Alpha Data, while Dubai’s Residential REIT contributed $584 million.
In Q2 2025, the region garnered $2.5 billion in IPO proceeds from 14 listings. Dubai’s Residential REIT was the UAE’s largest debut that quarter. Analysts note a promising pipeline of upcoming listings, although volumes are modest compared to 2024’s record 53 listings raising $13.7 billion.
Noon’s plan to list in Dubai and Riyadh fits this changing landscape—a time when private regional leaders seek public capital-market access despite global cooling sentiment. This IPO would not only raise new funds but also serve as a landmark event for the UAE’s tech ecosystem, potentially sparking broader investor interest in regional digital leaders.
However, Noon faces challenges. Its entry into fresh food delivery has increased GMV and market share in grocery, one of the fastest-growing e-commerce sectors in the region, but at the cost of profit margins. Analysts point to low average order values and continued logistics investment as short-term hurdles.
