Saudi Arabia’s mergers and acquisitions (M&A) landscape is becoming increasingly global. In 2024 alone, Saudi cross-border investment deals totaled $9.6 billion, with foreign acquirers driving 32% of transactions. This momentum carried into early 2025, where 80% of merger filings involved at least one foreign entity — a clear sign of rising international confidence and integration within Saudi markets.
Outbound Growth and Strategic Collaborations
Saudi Arabia’s M&A approvals surged by 16% in Q1 2025, reaching 108 deals, of which 83% were acquisitions. The dominance of acquisitions over joint ventures — which accounted for just 12% of deals — shows that Saudi firms increasingly prefer control and direct ownership when expanding abroad. Yet, joint ventures remain an important entry strategy, particularly in services and contracting sectors, where Saudi companies form limited liability partnerships with international partners to gain local expertise.
The most active sectors in Saudi cross-border M&A in 2024 were industrial (25%), technology (20%), and consumer & retail (14%). These figures reflect the Kingdom’s efforts to diversify beyond oil and align with the goals of Vision 2030, which encourages expansion into high-value, knowledge-driven industries.
Sovereign Funds Leading the Charge
Saudi sovereign wealth funds — especially the Public Investment Fund (PIF) — are playing a central role in outbound M&A. In the first nine months of 2025 alone, these funds deployed $56.3 billion across 97 global deals. Many of these investments targeted strategic sectors such as housing, technology, and infrastructure. A notable example includes a 24,000-home housing project undertaken in collaboration with China and Korea, symbolizing how Saudi capital is fueling international development partnerships.
Meanwhile, outbound M&A by Saudi firms reached $7.7 billion in H1 2025, primarily driven by sovereign funds and large industrial conglomerates. This trend underscores Saudi Arabia’s ambition to strengthen its presence in global markets, secure technology transfers, and gain operational expertise from international collaborations.
Shifting Balance Between Inbound and Outbound Deals
The Kingdom’s ongoing reforms — including the easing of foreign ownership restrictions — are attracting more strategic inbound investments. This reciprocal openness also enhances Saudi firms’ ability to expand outward, creating a two-way flow of capital and knowledge. As global investors increase their stakes in Saudi businesses, local firms gain valuable partnerships and market access abroad.
Cross-border activity now defines the Kingdom’s evolving M&A ecosystem. From sovereign fund-led acquisitions to joint ventures and outbound expansions, Saudi Arabia’s corporate sector is demonstrating growing confidence and sophistication on the world stage.
With rising deal volumes, diverse sectoral focus, and strong government backing through Vision 2030, Saudi Cross-Border M&A has become a symbol of the country’s transformation into a globally connected investment powerhouse.
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