Saudi Arabia is becoming a focal point for global investors. In Q1 2025, 80% of merger and acquisition (M&A) transactions in the Kingdom involved at least one foreign entity. This reflects a surge of international interest in the Saudi market. The flow of Saudi Cross-Border Mergers and Acquisitions is shaping a new investment landscape.
In 2024, Saudi cross-border investment deals reached $9.6 billion. These accounted for 32% of all M&A transactions led by foreign acquirers. By early 2025, the momentum continued. The MENA region recorded 225 M&A deals worth $46 billion in Q1, with Saudi Arabia playing a central role. Cross-border transactions made up more than half of deal volume and over 80% of deal value.
Regulatory Shifts and Sector Diversification
Recent regulatory reforms have played a major role in this transformation. Foreign ownership restrictions have eased, giving international investors greater freedom. The Saudi General Authority for Competition also resumed conditional approvals in Q1 2025 after a two-year pause. This indicates stricter scrutiny, but it also ensures transparency and trust. Together, these measures boosted investor confidence, contributing to a 16% year-on-year rise in merger filings.
The surge of Saudi Cross-Border Mergers and Acquisitions is not limited to one sector. The manufacturing industry led activity in Q1 2025 with 13 merger filings. Wholesale and retail trade followed with 10, and professional and technical services with 8. This shift reflects a clear diversification beyond oil, consistent with Vision 2030.
High-growth sectors are at the center of deal momentum. In 2024, industries such as industrial, technology, and consumer & retail accounted for 59% of deal volume. In H1 2025, Saudi Arabia attracted $2.5 billion in foreign direct investment inflows. Chemicals, technology, industrials, and real estate were the top beneficiaries.
Foreign direct investment remains vital to market development. The United States, the UAE, and the United Kingdom are among the leading sources of capital. Their involvement aligns with Saudi Arabia’s long-term growth priorities, ensuring cross-border deals are more than just financial transactions—they are strategic partnerships.
Case studies of recent transactions reveal successful strategies. Investors are not only seeking financial returns but also long-term positions in sectors with sustainable growth. Saudi Arabia’s openness, combined with regulatory clarity, creates a favorable environment for these moves.
The momentum is expected to continue as Saudi Arabia cements its place in the global dealmaking arena. Cross-border M&A will remain a powerful driver of diversification, foreign investment, and economic resilience.
Read also: Cross-Border M&A in Saudi Arabia: Trends and Opportunities
