Saudi Arabia is strategically expanding its pool of skilled professionals to fuel growth in its private markets sector, a key aspect of its economic diversification efforts.
Over the past few years, Saudi Arabia’s private markets have seen substantial growth, particularly in private equity (PE) and venture capital (VC). These sectors have directed significant investments into technology, healthcare, and infrastructure, aligning with the Kingdom’s Vision 2030 objectives.
From 2019 to 2023, private equity activity surged, reaching $4 billion in 2023. This period saw a notable increase in buyout deals, which constituted 80% of all PE activity. The food and beverage sector recorded the most deals, while manufacturing attracted the largest investments.
Despite global economic challenges, Saudi Arabia’s private markets have demonstrated resilience. As global deal-making slowed, the Kingdom continued to attract investments, showcasing confidence from both regional and international investors.
However, the sector faces challenges, including a shortage of professionals with deep expertise in private equity and venture capital. This talent gap needs addressing to sustain growth, particularly given the conservative investment climate influenced by rising interest rates and geopolitical risks.
Enhancing the expertise of professionals is crucial. Targeted educational programs and certifications, such as those offered by the CFA Institute, are essential. These programs provide practical knowledge and technical skills, preparing individuals for the complexities of the private markets sector.
The future of Saudi Arabia’s private markets looks promising, supported by favorable investment conditions and strong government backing. Continued investment in education and training will be vital to maintaining the Kingdom’s status as a leading hub for private market investments in the Middle East.