Noon Nears Profitability, Eyes Dual Listing In UAE, Saudi Arabia Within 2 Years

Noon, the Middle East's homegrown e-commerce powerhouse, is eyeing a bold move onto public markets-with plans for a dual listing in the UAE and Saudi Arabia within two years.

Founder Mohamed Alabbar says the company is now“almost” profitable, laying the groundwork for a carefully timed IPO that would position Noon among the region's first major digital entrants to go public.

Since its 2016 launch with funding from Saudi Arabia's Public Investment Fund, Noon has amassed $2.7 billion in raised capital. Its valuation now hovers near $10 billion, supported by operations across Saudi Arabia, the UAE and Egypt.

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The business has scaled rapidly, employing some 40,000 delivery drivers and generating an estimated $5 to 6 billion in gross merchandise value (GMV) during 2024. This scale leaves it well poised-but not yet highly profitable-amid fierce competition from Amazon, Shein, Ikea and Meituan.

Expansion plans

Operational efficiencies are now a central plank in Noon's strategy. The company is testing autonomous delivery vans and three-wheelers-leased, not purchased-to slash costs. Alabbar asserted that these robots will operate 24/7 and potentially halve the driver workforce by 2027, a move expected to materially aid profitability. Mergers and acquisitions are also on the table, and India is emerging as a potential expansion target.

Despite these advances, Noon is keen to differentiate itself from the Silicon Valley model of long-term loss-making. Alabbar stressed that Noon must demonstrate profitability before pursuing its IPO.“Our board members and the world and the banks don't accept that nonsense anymore,” he told the Financial Times.

Market experts said with its growing scale, sharper operations, and a valuation that merits attention, Noon stands on the cusp of a major transition-from private disruptor to public-listed market leader. If the company can deliver on profitability and convince markets of its fundamental strength, its dual IPO could become a defining milestone for digital commerce in the GCC, they argued.

IPO activity in GCC

Noon's listing plans come amid a cautiously resilient GCC IPO environment. Across the region, IPO activity in the first half of 2025 held its ground despite global volatility. The GCC capital markets saw between 24 and 27 IPOs, raising around $3.4 billion to $4.1 billion-depending on the source-reflecting a modest year-on-year decline but robust investor interest.

Saudi Arabia dominated the IPO landscape, accounting for over 85 per cent of GCC proceeds with $2.86 billion raised from some 22 listings. The UAE, by contrast, saw a steep drop in proceeds-only around $163 million-largely from a single listing, Alpha Data, with Dubai's newly listed Residential REIT contributing $584 million.

In Q2 2025 specifically, the region mustered $2.5 billion in IPO proceeds from 14 listings. Dubai's Residential REIT stood out as the UAE's largest debut in the quarter. Analysts point to a healthy pipeline of upcoming listings, even if volumes remain modest compared to the record IPO haul of 2024, which saw 53 listings raising $13.7 billion.

Noon's plan to list in Dubai and Riyadh fits this evolving backdrop-a moment when private regional champions are positioning for public capital-market access even amid cooling sentiment globally. Such an IPO would not only raise new funds but also serve as a marquee event for the UAE's tech ecosystem, potentially unlocking broader investor interest in regional digital champions.

However, Noon still faces challenges. Its push into fresh food delivery has boosted GMV and market share in grocery, one of the region's fastest-growing e-commerce categories-but at the expense of profit margins. Analysts cite low average order values and continued investment in logistics as ongoing drags on the near-term.

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