Saudi Arabia’s mergers and acquisitions market has seen a strong surge, with deal values rising 55 percent to $9.6 billion in 2024. This growth is largely driven by foreign investment and activity in sectors such as industry, technology, and consumer goods, all aligning with the nation’s Vision 2030 economic transformation goals.
Foreign investors contributed to nearly a third of these transactions, with the US, UAE, and UK leading inbound activity. Notably, 25 percent of foreign investment focused on technology, while other significant sectors included business services, industrials, energy, and transportation.
The demand for transactional risk insurance in the Gulf has increased sharply, reflecting the region’s growing appeal to international buyers. This insurance, especially warranty and indemnity coverage, is helping to expedite deals by protecting buyers from hidden liabilities and offering sellers cleaner exits. Regulatory reforms in Saudi Arabia, such as streamlined licensing and full foreign ownership in select sectors, have further encouraged international participation.
Sovereign wealth funds, particularly Saudi Arabia’s Public Investment Fund, have become key players in cross-border deals, often taking leading roles in major transactions. This shift is mirrored across the Gulf, where the balance between domestic and foreign investment is approaching parity.
Risk insurance has become more accessible, with the number of participating insurers tripling since 2021 and premium rates dropping significantly. Private equity involvement and a focus on larger, strategic deals have also contributed to increased insurance adoption.
Despite a regional dip in the number of deals, overall M&A value in the Middle East and Africa has climbed, with Saudi Arabia at the forefront of this trend, particularly in infrastructure and public-private partnerships. As global deal activity is expected to rebound, Saudi Arabia remains well-positioned to attract further international investment, supported by ongoing regulatory initiatives and the widespread use of M&A insurance to manage transaction risks.