For business leaders and executives eyeing growth opportunities in the Middle East, Saudi Arabia’s bustling mergers and acquisitions (M&A) landscape in 2024 offers a compelling narrative. The Kingdom recorded a remarkable 55 percent annual rise in M&A deals, with a total deal value reaching $9.6 billion, driven significantly by foreign investment in Saudi Arabia. This surge isn’t just a statistic—it’s a clear signal of growing international trust in the Saudi market and an opportunity for companies to strategically position themselves in a transforming economy.
The uptick in M&A activity in Saudi Arabia reflects a broader shift in the Kingdom’s economic strategy, one that’s increasingly appealing to global players. In 2024, 59 M&A transactions closed, with key sectors like industrials (25 percent), technology (20 percent), and consumer and retail (14 percent) leading the charge. These sectors align closely with Vision 2030, Saudi Arabia’s ambitious plan to diversify beyond oil and bolster its global competitiveness. For executives, this isn’t just about numbers—it’s about the Kingdom emerging as a hub where strategic growth opportunities abound, fueled by foreign investment in Saudi Arabia.
Contrast this with global trends: while worldwide M&A deal volumes dropped by 8.7 percent in the first 11 months of 2024, according to GlobalData, the Middle East and North Africa region bucked the trend. Deal value here soared by 42 percent to $33 billion, with Saudi Arabia playing a starring role. This resilience underscores the Kingdom’s unique position as a magnet for international capital, offering a stable and promising environment amid global uncertainty.
Foreign investors are a cornerstone of this M&A surge, contributing 32 percent of the $9.6 billion deal value in 2024, as noted by Luke Sutton, head of transactional risk for the Middle East and Africa at Marsh. The most active non-Saudi acquirers hailed from the US, UAE, and UK, targeting tech (25%), business services (15%), industrials (15%), energy (10%), and transportation (10%). This influx highlights growing confidence in the Saudi business setup, bolstered by reforms that make market entry smoother for international firms.
At Peninsula, we’ve guided companies like Amazon and Best Western through the intricacies of Saudi business setup, leveraging our deep regulatory knowledge to streamline their expansion. The rise in foreign investment in Saudi Arabia isn’t just a trend—it’s a testament to the Kingdom’s efforts to create a welcoming environment for global businesses, something we help our clients navigate daily.
Saudi Arabia’s Vision 2030 has unleashed a wave of reforms that are reshaping its appeal to foreign investors. The Kingdom now allows 100 percent foreign ownership in select sectors, has streamlined licensing procedures, and introduced a unified regulatory framework for local and foreign companies. Special economic zones, and incentives for firms to establish regional headquarters in Riyadh further sweeten the deal. These changes are designed to push annual foreign direct investment (FDI) from $26 billion in 2023 to an ambitious $100 billion by 2030.
For business leaders, this means reduced barriers to company formation and a clearer path to establishing a foothold in the Kingdom. Peninsula’s expertise in commercial registration and local partnerships ensures that your Saudi business setup aligns with these evolving regulations, minimizing delays and maximizing efficiency.
To illustrate the scale and diversity of this M&A boom, consider some standout transactions from 2024. Saudi Aramco’s $8.9 billion acquisition of a 22.5 percent stake in Rabigh Refining and Petrochemical Company from Japan’s Sumitomo Chemical was a blockbuster deal, reinforcing the energy sector’s dominance while showcasing cross-border collaboration. Another notable transaction was Qassim Cement’s $378 million purchase of Hail Cement through a share-swap agreement, a move that strengthened industrial consolidation ahead of major infrastructure projects tied to Vision 2030.
In the technology space, the Public Investment Fund (PIF)—a powerhouse in Saudi M&A—acquired a $2.3 billion majority stake in stc Group’s tower unit, TAWAL, signaling its intent to dominate digital infrastructure. These deals highlight how strategic sectors are attracting both local and foreign capital, offering blueprints for executives considering similar moves.
The PIF and other Gulf sovereign wealth funds are no longer passive players—they’re active drivers of cross-border M&A, often taking controlling stakes in high-value deals. In 2024, strategic sponsors, including SWF-backed corporates, accounted for 66 percent of insured buyers, relying on tools like warranty and indemnity insurance to manage risks. This shift reflects a bold approach to diversification, with investments spanning clean energy, logistics, and advanced manufacturing—sectors poised for growth as Saudi Arabia reduces its oil dependency.
For executives, this trend underscores the importance of understanding the local investment landscape. Partnering with entities like the PIF or navigating their influence can accelerate your market entry strategy. Peninsula’s experience in entity formation and local partnerships positions us to connect you with the right stakeholders, ensuring your expansion aligns with these powerful market forces.
The evolution of the insurance landscape is another critical piece of this puzzle. In 2024, the number of insurers underwriting M&A deals in the region grew from five in 2021 to nearly 15, driving down premiums by over 60 percent to a mean rate of 1.3 percent, according to Marsh. This increased competition and capacity mean broader coverage options, making deals safer for both buyers and sellers. Warranty and indemnity insurance, in particular, is gaining traction, offering buyers protection from unforeseen liabilities and giving sellers a clean exit.
For business leaders, this development reduces the risks tied to M&A, making it a more viable growth strategy.
The M&A surge isn’t just about big-ticket deals—it’s a signal that now is the time to establish or expand your presence in Saudi Arabia. The Kingdom’s focus on clean energy, digital infrastructure, and advanced manufacturing aligns with global trends, offering fertile ground for new ventures. Whether you’re eyeing a joint venture, acquisition, or greenfield investment, the regulatory reforms and investor-friendly climate make company formation more accessible than ever.
Peninsula simplifies this process for you. From securing licenses to structuring entities that comply with local laws, our 15 years of regional experience—led by founder Alistair Paine—ensure your market entry is seamless. We’ve helped multinational corporations and SMEs alike turn opportunities into operational successes, and we’re ready to do the same for you.
The rise in M&A deals in Saudi Arabia is more than a financial milestone—it’s a roadmap for business leaders seeking growth in a dynamic region. Foreign investment in Saudi Arabia is fueling this momentum, supported by Vision 2030’s transformative reforms and the proactive role of sovereign wealth funds. For executives, the message is clear: the Kingdom offers a stable, strategic base to expand your operations, with sectors like technology, industrials, and energy ripe for exploration.
At Peninsula, we bring unparalleled expertise to your doorstep, combining deep regulatory knowledge with actionable insights. Whether you’re considering company formation, acquiring a local entity, or restructuring for growth, our team is equipped to guide you through every step. As Saudi Arabia solidifies its status as a global investment hub, now is the moment to act—securely, confidently, and with the right partner by your side.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which Saudi market entry strategy is best suited to your business.
Email: Alistair@peninsulacs.com
