Abu Dhabi National Oil Company’s (ADNOC) AED 10.4bn (USD 2.84bn) block trade in ADNOC Gas plc [ADX: ADNOCGAS], marked a significant milestone in the development of Middle Eastern equity capital markets.

The sale of 3.1 billion ordinary shares by the state-owned oil company in the gas firm was the largest accelerated bookbuild (ABB) block trade in the region, according to Dealogic.

The deal propelled 2025 YTD block trade volumes in the region to a record USD 3.1bn, surpassing the previous full-year high of USD 2.7bn in 2024.

“ADNOC’s block was a statement that proves that regional equity markets have the depth to absorb multi-billion-dollar deals,” an ECM lawyer said. “The oversubscription also tells us one thing: global and local investors are hungry for exposure to ME assets.”

Traditionally, large ABBs have been a novelty in the region. Until now, the only USD 500m-plus transactions were: Saudi Telecom Co (STC) [TADAWUL: 7010] sized at SAR 3.9bn (USD 1bn), ADNOC Drilling Co PJSC [ADX: ADNOCDRI] for AED 3.4bn (USD 934.39m), Saudi British Bank JSC [TADAWUL: 1060] for SAR 2.6bn (USD 682.84m) and Saudi Tadawul Group Holding Co [TADAWUL: 1111] for SAR 2.3bn (USD 611.17m).

However, ADNOC’s ABB last week, which exceeded these previous deal sizes, highlights the region’s increasing ability to absorb large transactions, particularly the UAE.

“ADX’s growing capacity and infrastructure signal its shift toward a more liquid and sophisticated secondary market,” the ECM lawyer noted.

Despite the positive momentum, not all Middle Eastern markets have the regulatory frameworks and liquidity depth required for overnight trades. Only Saudi Arabia, the UAE, and Israel have a proven track record in large ABBs. In 2024, Those countries had volumes of USD 1.14bn, USD 1.13bn, and USD 461m, respectively.

Nevertheless, excluding 2023, ABB volumes in the three main exchanges have been increasing year-on-year, suggesting improving investor confidence, regional sophistication, and growing international institutional participation.

“With 4% regional growth forecast by the IMF, investor demand is strong, but Middle East ECM expansion hinges on regulators and exchanges driving more companies to market – we’ll see ECM in the region take a big step on the global stage,” the ECM lawyer concluded.