The private equity landscape in Saudi Arabia is experiencing a remarkable boom. In a recent surge, the sector’s value leapt from $1 billion in 2022 to an impressive $4 billion in 2023, distributed across 30 different deals. This information emerges from the latest research provided by Magnitt, showcasing the rapid growth within the kingdom’s investment scene.
At the heart of this expansion is what Huda Al Lawati, the Founder and CEO of Gulf-based investment manager Aliph Capital, describes as a ‘pivotal intersection.’ The convergence of a historically entrepreneurial private sector with government-led economic diversification initiatives has resulted in a deluge of new investment opportunities. Sectors like tourism, sports, and logistics are especially ripe for growth and attracting significant interest.
The primary engine behind this private equity expansion has been the increase in buyout transactions from the year 2020 to 2023. Leading the charge is the Saudi Arabia’s Public Investment Fund, which executed the majority of transactions, tallying 18, with a particular spike noticed in 2022 and 2023.
Local firms are also making their mark in the private equity arena, with Asyaf Investments, GAIC, and BATIC, each completing more than four deals, as reported by Magnitt. Additionally, newer entrants to the kingdom’s private equity sector, such as Investcorp, Marek Capital, and Blominvest, have also been active, rounding off their portfolios with two to three deals apiece.