Saudi Arabia Private Equity Market Overview

Market Size in 2024 : USD 7,304.1 Million

Market Size in 2033: USD 13,546.2 Million

Market Growth Rate 2025-2033: 7.10%

According to IMARC Group's latest research publication,"Saudi Arabia Private Equity Market Report by Fund Type (Buyout, Venture Capital (VCs), Real Estate, Infrastructure, and Others), and Region 2025-2033", Saudi Arabia private equity market size reached USD 7,304.1 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 13,546.2 Million by 2033, exhibiting a growth rate (CAGR) of 7.10% during 2025-2033.

Growth Factors Driving the Saudi Arabia Private Equity Industry

• Vision 2030 and Economic Diversification

The vision 2030 in Saudi Arabia is a game changer that has forced the latter to diversify beyond oil, and intensify the pace of development of the private sector. This initiative by the government has created opportunities to the private equity through its welcome of foreign investment as well as boosting its industry, such as technology, health care, and tourism. To cite one instance, the Public Investment Fund (PIF) has assets of up to $941 billion and is supporting such a project as NEOM, a $500 billion smart city. Reduced investment costs, new regulations and reduced procedures of business have resulted in easy entry into the market through the additional possible investment law and simplified business processes. The given reforms have increased the confidence of investors, and the private equity-related investments have reached 2.8 billion dollars through 15 deals in 2024. Vision 2030 is encouraging the high-growth industry to be financed by the private equity through the development of a thriving business environment.

• Rising Entrepreneurship and Innovation

The entrepreneurial ecosystem in Saudi is thriving with a big population of youths and government support to start ups. Programs such as Monshaat, General Authority of Small and Medium-Sized Enterprises, are investing in funding and supporting SMEs (particularly, in technology and fintech). This has opened an environment where the venture capitalists can invest in start-ups that have a huge potential. As an example, startups in e-commerce and SaaS could count on companies such as Saudi Venture Capital Company (SVC) that invested over 123 funds in private businesses to the total of more than 944 billion dollars in over 1,300 companies. This has also been informed by the increased incubators and accelerators who play a role like the Sirb Angel Investor Network. This rush in innovation is attracting the attentions of the private equity to the high-growth ventures tools up deal flow and market dynamism.

• Regulatory Reforms and Foreign Investment

New policies in Saudi Arabia have turned the kingdom into an attraction point of the private equity market. The introduction of new laws such as the companies law and civil transactions law reduces the entry barriers of foreign and the local companies enhancing transparency of the market and investor confidence. As an example, more areas now encourage 100 percent foreign ownership, which has resulted in massive foreign investments, such as KKR. Saudi Investments in Industry The Saudi Industrial Development Fund (SIDF) has a loan scheme under which the percentage of the cost of the projects is loaned at 50 and 75 percent. The reforms have churned in lots of capital investment with 308 seed-stage financings comprising of private equity funds conducted in 1.4 billion, and 910 late-stage financings of 286 billion. The changes are causing Saudi Arabia to become a hotbed of privately held equity ventures, by generating a more transparent and predictable business environment.

Emerging Trends in the Saudi Arabia Private Equity Market

• Focus on Technology and Fintech Investments

The Saudi Arabian private equity is focusing more and more on technology, particularly on fintech, as the young people in Saudi Arabia adopt new digital technologies. Companies are also spending on startups who have come up with mobile wallets, contactless payments and loyalty systems. As an illustration, Equivator, a Saudi-based company, is making tremendous investments in fintech activities to further scale innovation. The telecom and communications industry, which has a close relationship with technology, gulped up $2.3 billion, or 81.8 percent of total private equity investments, in large part because it participated in a major buyout of Telecom Towers Co. This is in correlation with the vision 2030 digital transformation in that its focus on digitization has generated a ripple effect in the private equity funds to invest in the tech driven companies in order to cater the tech savvy customers leading to innovations and growth.

• Surge in Sustainability and ESG Investments

The environmental, social, and governance (ESG) concepts of sustainability are becoming a significant issue in the Saudi Arabian private equity market, as companies are currently focusing on it. Those who invest money are investing in green projects such as renewable energy resource and carbon capture, which is in line with the vision 2030 to be sustainable. In 2024, sustainability raised 8% of the entire private equity funding or a total of 225 million. As an example, the pilot direct air capture plant built by Saudi Aramco and Siemens Energy eliminates 12 tonnes of CO2 per year and demonstrates the green intentions of the nation. A key area in which companies are being supported by their PE counterparts is waste management as well as a sustainable infrastructure environment, such as the investment of Jadwa in GEMS, an expert in hazardous waste management. The trend is an indication of the increased interest of investors in socially responsible investments that have returns and impact.

• Shift Toward Growth-Stage Investments

Saudi Arabian Private equity is changing, where buyouts are no longer the focus of it; instead, another focus is put on growth stage investments on mid-market businesses with high potential. During 2024, growth investments accounted for 18 percent of the overall amount of the private equity investment, compared to 1 percent in the prior year, with extravagant assets of $ 188 million assigned to simply healthcare growth courses of action. Industrial-related equity, such as education and consumer goods, is where Saudi firms such as Sanabil Investments, which is sponsored by PIF, are concentrating on. This indicates a maturity of market, in which investors are interested in carrying out ambitious businesses to scale, rather than purchase established ones. As an example, Alkhabeer Capital is investing into the SMEs, real estate and financial services, which are promoting expansion. The transformation is bringing in further diversity in a deal mix, which is in line with the Vision 2030 targets of developing a vibrant private sector.

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Saudi Arabia Private Equity Industry Segmentation:

The report has segmented the market into the following categories:

Breakup by Fund Type:

• Buyout
• Venture Capital (VCs)
• Real Estate
• Infrastructure
• Others

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

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Future Outlook

The stable growth of Saudi Arabian private equity market is being enabled by the momentum of Vision 2030 as well as maturing investment environment. Having reached the maturity by investing $2.8 billion in 15 deals in 2024, the market is stabilizing at the end of delivering excessively as in recent years, and the experts expect the deal flow to even out in the next 5 years. PIF will continue being the force that it has been, as anchors on investments in areas such as technology, health care and sustainability among others with global firms such as KKR and Gulf capital establishing their roots even deeper in the region. Government programs, such as SME financing programs by Monsha as well as other government programs will continue to drive entrepreneurship thus presenting an opportunity to be exposed to new innovative start-ups to be funded by the various types of private equity. Foreign capital will continue to come because of regulatory reform, and there will be increased foreign ownership in the various industries (100 percent ownership). With more sectoral diversification, and especially due to fintech or green projects, Saudi Arabia will become a regional hub of the private equity business and create a balance between the innovative and economically stable area.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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