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This paper provides a first analysis of the extent to which firms in the Arab region use capital markets to obtain financing and grow. It addresses two questions: First, how many and which firms issue equity, bonds, and syndicated loans in the Arab region? Second, how do these firms perform relative to non-issuing firms? Two main findings emerge from the analysis. Over the last two decades, the amounts raised in equity, bond, and syndicated loan markets have considerably increased. The typical issuing firm is larger, grows faster, is more leveraged, and holds more long-term debt relative to the typical non-issuer. The firm size distribution of issuers lies to the right and shifts more rightwards over time, indicating a divergence in firm size among listed firms.