The Middle East and North Africa (Mena) region witnessed only two IPOs raising $615mn in Q1, 2016, representing another quarter with limited IPO activity, according to EY. 
Capital raised through Mena firms in Q1, 2016 increased by 141%, while the number of IPOs were consistent - two IPOs compared with Q1, 2015. 
Phil Gandier, Mena Transactions Leader, EY, said, “Q1, 2016 witnessed limited IPO activity, in line with H2, 2015, as volatility in the Mena capital markets continued, primarily driven by fluctuating oil prices and certain global factors. Egypt and Saudi Arabia continue to lead the limited IPO activity in the region driven by investor demand and strong fundamentals. There is a strong pipeline of companies in Mena that are IPO ready and waiting for the right time to go to market.”  
The IPO of Middle East Healthcare Company on the Saudi Stock Exchange (Tadawul) was the largest in the quarter, raising $471.1mn and was over three times the size of the IPO of Arabian Food Industries Company (Domty) on the Egyptian Stock Exchange, the only other IPO in Mena in Q1 2016.
Mayur Pau, Mena Strategic Growth Markets and IPO leader, EY, said, “Egypt and Saudi Arabia continue to be the most active Mena exchanges in Q1, 2016, continuing on from 2015, where IPOs in Saudi Arabia and Egypt represented eight out 14 IPOs executed in the year. Both markets continue to attract investors against a backdrop of increasing foreign investment, emphasis on diversification and business confidence.”
Oil prices declined in January 2016 to the lowest level in several years (below $30 a barrel) resulting in fluctuations across the Mena capital markets. 
According to analysts, Brent crude oil prices declined primarily due to an increase in global oil supply and reduced demand, driven by uncertainty in the performance of the global economy.