Saudi Cross-Border Investment Deals Reach $9.6B in 2024, 80% Foreign-Led in Q1 2025
In 2024, Saudi Cross-Border Investment Deals totaled $9.6 billion, with 32% of all transactions led by foreign acquirers. This momentum accelerated in Q1 2025, where 80% of merger filings involved at least one foreign entity, according to the General Authority for Competition.
While the broader MENA region recorded 425 deals worth $58.7B in H1 2025, Saudi Arabia alone attracted $2.5B in total investment inflows during that period—primarily in chemicals, technology, industrials, and real estate. This figure reflects growing trust in Saudi Arabia’s regulatory environment and sectoral potential.
The Kingdom’s overall M&A activity—both domestic and cross-border—is gaining traction. Outbound flows, led by sovereign entities, are expanding Saudi Arabia’s global footprint, while inbound interest continues to rise in strategic sectors.
Industrial, Tech, and Retail Lead Saudi M&A Activity in 2024
Saudi Arabia’s sectoral breakdown in 2024 reveals where both domestic and foreign interest converged. Out of 59 total M&A deals recorded that year:
- Industrial: 25%
- Technology: 20%
- Consumer & Retail: 14%
These three sectors together accounted for 59% of overall deal volume, reflecting investor confidence in the Kingdom’s diversification strategy. While not all of these were Saudi Cross-Border Investment Deals, foreign capital played a growing role—particularly in energy, transport, and tech—driven by U.S., UAE, and UK-based firms aligning with Vision 2030 priorities.
This sectoral tilt toward infrastructure, digital transformation, and consumer access underscores Saudi Arabia’s pivot from oil-centric economics to industrial and innovation-led growth.
In Q1 2025, manufacturing led with 13 merger filings, followed by:
- Wholesale & retail trade: 10 filings
- Professional & technical services: 8 filings
- ICT: 7 filings
This distribution highlights sustained interest in industrial consolidation and supply chain localization, alongside growing demand for digital infrastructure.
Saudi Regulatory Reforms Enable Strategic Cross-Border Deal Flow
Saudi Arabia’s public M&A framework is governed by the Merger and Acquisition Regulations (MARs), revised in 2017 to align with global standards. These rules apply to acquisitions resulting in 10% or more ownership in a listed company, and emphasize transparency, equal shareholder treatment, and conflict-of-interest safeguards.
The Capital Market Authority (CMA) oversees enforcement, with broad discretion to waive requirements and ensure fair market conduct. The Foreign Investment Rules, updated in 2023, allow qualified and strategic foreign investors to participate in listed securities. Strategic investors are exempt from shareholding limits, potentially enabling full foreign takeovers—though this remains untested.
A key enabler of Saudi Cross-Border Investment Deals has been the rise in transactional risk insurance, particularly warranty and indemnity (W&I) policies. Uptake grew 78% across the GCC in 2024, with Saudi regulators endorsing these tools to de-risk negotiations and facilitate complex, multi-jurisdictional transactions.
Saudi Sovereign Funds Drive Outbound Cross-Border Investment Deals
Saudi Arabia is not only attracting foreign capital—it’s deploying it globally. In H1 2025, Saudi Aramco’s $3.5B acquisition of Primax in South America exemplified the Kingdom’s outbound ambitions. Alongside the UAE, Saudi Arabia accounted for 87% of MENA’s outbound deal value, though the UAE led in volume.
Saudi sovereign entities like PIF are increasingly targeting strategic assets abroad, focusing on chemicals, technology, and industrials. These outbound Saudi Cross-Border Investment Deals reflect a shift from passive investing to active global positioning, aligned with national transformation agendas.
Saudi Cross-Border Investment Deals Set to Expand in H2 2025
With Q1 2025 merger filings up 16% year-on-year, and 80% involving foreign entities, Saudi Arabia’s cross-border M&A outlook remains bullish. Stable oil prices, infrastructure development, and regulatory clarity are fueling investor confidence.
The Kingdom’s overall M&A activity in H1 2025—$2.5B in total investment inflows across strategic sectors—signals growing trust in its deal infrastructure. While the UAE captured the majority of MENA inbound flows, Saudi Arabia’s performance reflects a steady rise in global relevance.
As competition intensifies for high-quality assets, Saudi Cross-Border Investment Deals are expected to expand further in H2 2025, redefining regional norms and attracting sustained foreign interest.
