RIYADH: Thanks to strategic efforts, regulatory reforms, and the country’s dedication to Vision 2030, Saudi Arabia has become a disruptive force in the Gulf Cooperation Council’s private equity scene. The Kingdom’s ambitious goals are changing the investment landscape in the region and establishing new standards for expansion, diversification, and international participation. Over the last five years, private equity investments in Saudi Arabia have grown at an unparalleled rate.
According to a survey by MAGNiTT and Saudi Venture Capital Co., the total value of PE transactions increased at a compound annual growth rate of 66 percent, from $523 million in 2019 to an all-time high of $4 billion in 2023. This increase demonstrated how well the Kingdom has done at fostering an atmosphere that is welcoming to both domestic and foreign investors.
“While the world has grappled with rising prices due to inflation, Saudi Arabia has been able to maintain a relatively low inflation rate — 2.1 percent in 2024 and projected 2.3 percent in 2025 — which makes for a stable investment environment,” said Arjun Singh, partner and global head of fintech at Arthur D. Little, in an interview with Arab News.
Meshal Al-Faras, the head of Janus Henderson Investors for the Middle East, Africa, and Central Asia, elaborated on this resilience, citing a low debt-to-GDP ratio that guarantees ongoing counter-cyclical investment and robust domestic liquidity supported by the Public Investment Fund and family offices.
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