Saudi Inbound M&A Hits $3.5B in H1 2025 Amid Global Expansion Ambitions
In the first half of 2025, Saudi Arabia attracted $3.5 billion in inbound mergers and acquisitions (M&A), making it the second most targeted country in the MENA region after the UAE. While these inflows underscore the Kingdom’s growing appeal to foreign investors, the scale of inbound activity also reflects the groundwork being laid for broader investment mobility — including future efforts tied to Saudi Outbound M&A Global Expansion. As global economic conditions remain complex, the Kingdom’s positioning within international deal flows continues to evolve with measured confidence.
Graph by Zawya.
202 Economic Concentration Approvals Signal Dealmaking Momentum
Saudi Arabia’s General Authority for Competition approved 202 economic concentration requests in January 2025 alone — a record high. These approvals are essential for M&A transactions and demonstrate the Kingdom’s commitment to fostering a transparent and competitive business environment.
Sectoral Activity: Materials, Financials, and Energy Lead
While sector-specific data for Saudi Arabia's inbound M&A in H1 2025 is still emerging, regional figures show that materials, financial services, and energy dominated deal activity across MENA.
- Materials: Dominated MENA-targeted M&A with 67% of total deal value
- Financial Services: Recorded $3.3 billion in regional deal value
- Energy & Power: Saw $2.2 billion in deals across MENA
These sectors align with Saudi Arabia’s Vision 2030 goals, which emphasize diversification and infrastructure development.
Investment Banking Fees Highlight Saudi’s Role
Saudi Arabia accounted for 41% of all MENA investment banking fees in H1 2025, surpassing the UAE (35%) and Qatar (7%). Of the region’s total $773.7 million in fees, Saudi’s estimated share is approximately $317 million.
Meanwhile, the Kingdom also led the region in debt issuance, contributing 52% of total MENA bond proceeds, which reached a record $86.8 billion. This dual dominance in both advisory and underwriting activity underscores Saudi Arabia’s growing sophistication in deal structuring, capital markets, and financial execution — all of which support its broader ambitions for Saudi Outbound M&A Global Expansion.
IPO Pipeline and Capital Markets Support Inbound Investment
Saudi Arabia’s equity capital market saw six IPOs raising $2.8 billion in H1 2025. The largest was flynas, which raised $1.1 billion on the Tadawul exchange. These IPOs enhance the visibility and liquidity of Saudi firms, making them attractive targets for foreign acquirers.
Meanwhile, the Kingdom’s debt capital market reached $465.8 billion by March 2025, with expectations to exceed $500 billion by year-end. Sukuk (Islamic bonds) accounted for 60.4% of the total, and $32.2 billion was raised regionally in H1 — an all-time record.
Saudi Outbound M&A Global Expansion: Positioned for Growth
While exact figures for Saudi Outbound M&A Global Expansion in H1 2025 are not disclosed, context suggests Saudi Arabia is increasingly active. The MENA region collectively recorded $64.5 billion in outbound M&A, the highest first-half total ever tracked by LSEG. With Saudi Arabia’s outsized share in competition approvals, investment banking activity, and sovereign-driven reforms, the Kingdom is well positioned to accelerate outbound deals in future periods.
From inbound inflows to outbound potential, Saudi Arabia's expanding M&A footprint reflects its strategic role in reshaping global investment flows through Vision 2030 and beyond.
Also Read: Megadeals & Momentum: Middle East M&A Trends Surge in 2025
