Saudi Arabia's private equity investments reach $4B in 2023

Saudi Arabia witnessed an increasing interest in private equity investments from 2019 to 2023, MAGNITT said in a recent report.

The Kingdom's private equity investments reached a peak of nearly $4 billion in 2023, recording growth for three consecutive years since 2020.

The private equity investments were mainly focused on acquisitions during the period from 2020 to 2023.

Acquisitions dominated an average of 80% of the total private equity transactions over the past five years.

Private equity investments fall within the scope of alternative asset categories as part of private capital. Such investments are directed to companies operating under traditional sectors in exchange for shares or shareholdings.

The industrial sector led acquisitions in private equity investments from 2019 to 2023, recording $4.03 billion, or 46% of the total. It was followed by the financial services sector, with $2.58 billion, or 29% of the total.

The following table shows top sectors in terms of the value of private equity investments in Saudi Arabia from 2019 to 2023: