Private equity (PE) activity in Saudi Arabia reached US$4 billion in 2023, further extending a rapid increase over the last five years.
The 2019-2023 Saudi Arabia Private Equity Report, produced by venture capital data provider Magnitt and commissioned by the investor SVC, found three years of consecutive growth, including a 370% rise in 2021 and 590% rise in 2022.
The report also found a “significant shift” in PE transactions with an emphasis on buyout deals.
Buyouts increased their share of activity by 20% between 2020 and 2023 accounting for 80% of all PE activity. Growth transactions increased by 2% during the same period.
The food and beverage market accounted for the majority of deals while manufacturing accounted for the largest total of investment between 2020 and 2023.
The growth in Saudi Arabia’s PE market stands in contrast to regions elsewhere. Bain & Co’s 2024 Asia-Pacific Private Equity survey showed that dealmaking in the region fell to US$147 billion during 2023.