Saudi Arabia is experiencing a significant rise in mergers and acquisitions, with a 17.4% increase in approvals, highlighting efforts to enhance its competitive business landscape.
The General Authority for Competition (GAC) reported 202 approved economic concentration requests, marking a record high, while 10 applications are still pending. These approvals are crucial to prevent monopolies and maintain market competition.
This increase aligns with GAC’s objectives to foster competition, deter monopolistic practices, and boost market performance, thereby enhancing consumer and business trust, attracting investment, and promoting sustainable growth.
While global mergers and acquisitions face a downturn, with an 8.7% drop in deal volume, the Middle East and Africa saw a smaller 5% decline. In contrast, Saudi Arabia is thriving, with acquisitions making up 81% of approvals, followed by joint ventures and mergers.
The manufacturing sector led activity with 67 approvals, trailed by information and communications, and wholesale and retail trade. Foreign interest was notably high in manufacturing, followed by information and communications.
GAC observed increasing diversity in market activities, receiving requests from emerging sectors like off-road tires and industrial coatings. Saudi Arabia also led the Middle East in chemical sector deals, closing $500 million in the first quarter.
Furthermore, the authority registered four new car agencies and analyzed over half of concentration requests based on horizontal relationships, with vertical and cluster relationships making up the rest.
This surge supports Vision 2030’s goal to create an investment-friendly environment, highlighting Saudi Arabia’s ambition to become a regional business and investment hub.