Riyadh - Sharikat Mubasher: Saudi Arabia’s private equity (PE) market continued to surpass the billion-dollar mark in 2024 securing over $2.8 billion in investment value across 15 transactions and signaling a 27% year-on-year (YoY) drop from $3.9 billion in 2023, a recent report by MAGNiTT unveiled.

The ‘FY 2024 Saudi Arabia Private Equity Report’ stated that the PE deal count saw three consecutive years of increase between 2020 and 2023, posting a compound annual growth rate (CAGR) of 67%.

Last year, deals declined by 60% YoY, amidst higher interest rates and inflationary pressures. This slowdown suggests increased selectivity among PE firms, favoring higher-quality deals over volume.

PE growth transactions emerged as the most active PE type in Saudi Arabia in 2024, accounting for 67% of total transactions, up from 43% in 2023.

Deals between $10 million and $200 million represented the largest share of the Kingdom’s PE landscape. They remained the primary driver of investment although their share declined to 58% in 2024, compared to 72% in 2023. The share of transactions valued at over $200 million rebounded to 29% in 2024, indicating a return to high-value deals despite a decline in overall transaction volume.

The telecom and communications sector commanded the highest PE investment value in 2024 with $2.3 billion (81.8%), followed by sustainability and healthcare industries which secured $225 million and $190 million in investment, respectively.

Moreover, top industries including food and beverages (F&B), healthcare, financial services, transport and logistics, and education accounted for 73% of total PE transaction flow in 2024 with a cumulative 11 transactions, up from 60% in the period between 2019 and 2023.