Riyadh – Sharikat Mubasher: Saudi Arabia is emerging as a key hub for private capital deployment in the Middle East, accounting for more than 60% of all regional funds closed since 2015, according to a new report by BlackRock’s Aladdin.

The report, Market Evolution: The Middle East, said the Kingdom’s growing activity reflects broader economic transformation, infrastructure investment, and increasing institutional participation across private markets.

Saudi Arabia and the UAE currently lead the region’s private capital markets, while other markets, including Kuwait, are also recording increased activity. The report noted that Saudi Arabia’s Public Investment Fund (PIF) has also accelerated domestic deployment, surpassing the direct deal activity of investors from outside the region in Middle East deals since 2023.

Across the Middle East, sovereign wealth funds allocate 43% of their exposure to private capital, compared with 35% among their global peers. Regional appetite for private equity has also strengthened, with 83% of Middle East LPs positive on or considering private equity mandates in 2026, up from 70% in 2019.

Family offices now represent nearly half of active regional private capital investors, while venture capital deal value averaged $2.4 billion annually between 2021 and 2025.