TLDR:
- Private equity activity in KSA hits $4 billion in 2023, showing a significant surge over the past five years.
- Buyout transactions have dominated the PE investment landscape, capturing 80% of the total capital deployed.
Saudi Arabia has witnessed a remarkable surge in private equity (PE) activity over the past five years, reaching a pinnacle of $4 billion in 2023, the ‘2019-2023 Saudi Arabia Private Equity Report’ revealed. The composition of PE transactions has shifted significantly, especially with a focus on Buyout transactions, accounting for a notable share of the total. Between 2020 and 2023, Buyout transactions saw a substantial increase in their share of the total, reflecting a strategic shift in investment preferences.
Buyout transactions have been dominant in the PE investment landscape, capturing an average of 80% of the total capital deployed in these transactions over the last five years. The increasing prominence of Private Equity within the kingdom’s financial ecosystem demonstrates evolving dynamics. The report also highlighted notable transactional diversity and industry concentration. Food & Beverages emerged as the most transacted industry, while Manufacturing claimed the top spot in terms of total investment.
Dr Nabeel Koshak, CEO and Board Member at SVC, emphasized the promising growth trajectory of PE activity in Saudi Arabia and the commitment to understanding the evolving investment landscape. The report provides valuable insights into the private equity landscape and its pivotal role in shaping the kingdom’s financial landscape. MAGNiTT expands its coverage into the private equity landscape in the region with this inaugural Private Equity report for Saudi Arabia, highlighting the significance of private equity in the market.
