Riyadh - Sharikat Mubasher: The total value of private equity (PE) funding in Saudi Arabia reached circa $4 billion in 2023 across 30 transactions, signaling a five-year compound annual growth rate (CAGR) of 66% in investment and 44% in transactions between 2019 and 2023.

A recent report issued by MAGNiTT in partnership with Saudi Venture Capital (SVC) stated that transactions were largely concentrated in buyouts and growth investment which represented 70% and 27% of the total number, respectively.

Manufacturing led the sectors with the highest private equity investment values in 2019-2023, with 46% from buyouts, followed by the financial services sector which saw the most diverse split in investment type by value with 78% from buyouts and 17% from growth investment.

Five sectors accounted for 59% of 47 PE transactions between 2019 and 2023, including food and beverages, healthcare, financial services, technologies, and manufacturing.

Furthermore, the PE landscape in the Kingdom has witnessed the participation of 49 investors over the past five years, with the Public Investment Fund (PIF) accounting for the largest number of 18 transactions, most of which were reported in 2022 and 2023.

Commenting on the PE activity in the Kingdom, Chairman of SVC Ammar Alkhudairy said: “The growth has been steady since 2020, with a remarkable 3.7x increase in 2021 and a subsequent surge to 5.9x in 2022. These trends underscore the resilience and attractiveness of the Saudi Arabia market for private equity investments.”

For his part, Nabeel Koshak, CEO of SVC, stated that the robust surge in PE investment over the past few years is a testament to the Kingdom’s commitment to Vision 2030, showcasing a relentless dedication to nurturing entrepreneurship and catalyzing investments.