Historic Surge in M&A Approvals
Saudi M&A market is on a historic upswing, with approvals surging 17.4 percent in 2024—a clear signal that the Kingdom is deepening its commitment to fostering a competitive business landscape.
The General Authority for Competition (GAC) greenlit 202 economic concentration requests, its highest tally yet, with 10 more applications still under review, according to its annual report. These approvals, required for mergers and acquisitions, safeguard against monopolies and ensure fair market competition.
Strengthening Market Dynamics
Saudi Arabia’s regulatory approach to M&A centers on promoting market efficiency and investor confidence. Through enhanced competition policies and strict oversight, the GAC is working to create a business landscape where companies can grow sustainably while adhering to fair market principles.
Even as global M&A activity cooled—dropping 8.7 percent year-on-year, according to a December GlobalData report—the Kingdom bucked the trend. The Middle East and Africa saw a more modest decline of 5 percent, yet Saudi Arabia stood out with acquisition deals dominating at 81 percent of approvals, followed by joint ventures at 15 percent and mergers at just 2 percent.
Sectoral Leaders in Saudi M&A Activity
Manufacturing emerged as the top sector for Saudi M&A market activity, with 67 approved transactions, followed by information and communications with 39 approvals. Wholesale and retail trade, including vehicle and motorcycle repairs, secured 22 approvals.
Foreign companies were notably active in Saudi Arabia’s manufacturing sector, accounting for 28 percent of concentration requests, while 17 percent targeted information and communications, and 15 percent focused on retail.
Emerging Saudi M&A Market Opportunities
GAC reported a rise in activity across non-traditional sectors, reflecting the Kingdom’s economic diversification efforts. Industries such as off-road tire manufacturing, nicotine replacement therapy production, and industrial protective coatings saw increased interest, highlighting the growing depth of Saudi Arabia’s business landscape.
Saudi Arabia also led the Middle East’s chemical-sector M&A in the first quarter of 2024, closing deals worth $500 million. The authority approved four new car agency registrations and examined the competitive dynamics of concentration requests—53 percent based on horizontal relationships within the same sector, 16 percent on vertical integration, and 31 percent on clustered business relationships.
Also Read: Surging Saudi M&A: 67 Manufacturing Deals Lead 2024
Vision 2030 and Saudi Arabia’s Investment Future
This wave of M&A aligns seamlessly with Vision 2030, the country’s long-term strategy to create a dynamic investment climate and establish itself as a regional hub for business expansion. By refining regulatory frameworks, streamlining approval processes, and welcoming foreign investment, the Kingdom is positioning itself for sustained economic leadership.
As Saudi Arabia deepens its commitment to market-friendly policies, the rise in merger approvals signals not just growth—but a strategic shift toward long-term economic transformation.
