Market Insights Financial Corporate Finance

Mergers and Acquisitions - Saudi Arabia

Saudi Arabia

The transaction value in the Mergers and Acquisitions market is projected to reach US$4.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 24.37% resulting in a projected total amount of US$5.97bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$0.20bn in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

The Mergers and Acquisitions market in Saudi Arabia is experiencing a significant uptick in activity.

Customer preferences: In Saudi Arabia, customers in the M&A market are increasingly looking for opportunities to diversify their portfolios and expand their market presence. They are seeking strategic acquisitions that can provide access to new technologies, markets, and capabilities, ultimately aiming to enhance their competitive position in the region.

Trends in the market: One notable trend in the Saudi Arabian M&A market is the growing interest from foreign investors. The country's Vision 2030 initiative, aimed at diversifying the economy and reducing its dependence on oil, has sparked interest from international investors looking to capitalize on the country's privatization efforts and economic reforms. As a result, there is a noticeable increase in cross-border M&A deals involving Saudi Arabian companies.

Local special circumstances: Saudi Arabia's regulatory environment plays a crucial role in shaping the M&A landscape. The country has been actively working to improve its business environment by introducing reforms to simplify procedures and enhance transparency. Additionally, the government's privatization agenda and push for foreign direct investment have created a conducive environment for M&A activity to thrive.

Underlying macroeconomic factors: The M&A market in Saudi Arabia is also influenced by broader macroeconomic factors such as oil prices, geopolitical stability, and global economic conditions. As the largest oil exporter in the world, Saudi Arabia's economy is closely tied to fluctuations in oil prices. Geopolitical developments in the region can also impact investor sentiment and deal activity. Moreover, global economic trends and market conditions play a significant role in shaping the M&A landscape in the country.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.