Saudi Private Equity Market Outlook: PE Market Set to Nearly Double by 2033, Reaching USD 13.5 Billion
The Saudi Private Equity Market is poised for a significant leap, with projections estimating a rise from USD 7.3 billion in 2024 to USD 13.5 billion by 2033. This growth, driven by a compound annual growth rate (CAGR) of 7.10%, reflects the Kingdom’s strategic shift toward economic diversification under Vision 2030.
Private equity is becoming a cornerstone of the Kingdom’s national transformation. With mega-projects like NEOM and The Red Sea Project demanding substantial capital, private equity firms are finding fertile ground for long-term investments.
AI and Automation Reshape Saudi Private Equity Market Dynamics
Artificial intelligence is rapidly redefining how private equity operates in the Kingdom. From AI-powered due diligence platforms that streamline financial modeling and risk assessment to predictive analytics that optimize exit strategies, technology is enhancing decision-making across the investment lifecycle.
Machine learning tools are also helping firms monitor portfolio performance in real time, identifying inefficiencies and growth opportunities. Meanwhile, intelligent automation in fund administration is reducing operational costs and improving reporting accuracy, freeing up managers to focus on strategic value creation.
Vision 2030 Spurs Sectoral Expansion and Regulatory Reform
Saudi Arabia’s Vision 2030 is a game-changer for the Saudi Private Equity Market. By encouraging foreign investment and supporting private sector growth in non-oil sectors like healthcare, tourism, and renewable energy, the government is laying the groundwork for a thriving investment landscape.
The introduction of the new Investment Law in February 2025 has simplified business processes, replacing licensing requirements with a streamlined registration system. This regulatory shift ensures equal treatment for foreign and domestic investors, boosting confidence and accelerating deal flow.
H1 2025: Saudi Arabia Leads MENA with 45% of PE Transactions
In the first half of 2025, Saudi Arabia emerged as the most active private equity market in the MENA region, accounting for 45% of all recorded transactions. The Kingdom posted 13 deals – an 8% year-on-year increase, outpacing the UAE which saw a 25% decline with 12 deals.
Together, Saudi Arabia and the UAE comprised 86% of all regional private equity activity, underscoring their dominance in the MENA investment landscape. Notably, 12 out of 13 Saudi deals involved local investors, highlighting strong domestic momentum and confidence in the market.
Deal Sizes Grow: $500M-$1B Transactions Dominate 2025 Landscape
A defining trend in the Saudi Private Equity Market is the shift toward larger, high-conviction investments. In H1 2025, deals in the $500 million to $1 billion range accounted for 29% of total transactions and 42% of disclosed capital, surpassing even the $1 billion-plus segment.
Smaller deals under $50 million dropped to just 14%, the lowest on record. This evolution mirrors global trends, where fewer but more substantial transactions are becoming the norm, signaling a maturing investment environment ready to absorb larger pools of capital.
BlackRock and Global Giants Deepen Saudi Commitments
Global asset managers are taking notice. BlackRock, for instance, is preparing to double or triple its Saudi exposure, building on its $35 billion investment across equities, fixed income, and infrastructure. The firm now operates four investment teams in Riyadh and is expanding into multi-asset strategies and mutual funds.
BlackRock’s involvement in landmark deals, such as the $11 billion Aramco gas transaction and a $40 billion data center acquisition, demonstrates the scale and ambition of private capital in the Kingdom. With sovereign backing and a robust pipeline of infrastructure and AI-driven projects, Saudi Arabia is fast becoming a magnet for global private equity.
Also Read: Private Equity and Venture Capital in Saudi Arabia: 2025 Market Outlook
