Riyadh, March 27, 2024, The "2019-2023 Saudi Arabia Private Equity Report" has shed light on a significant surge in Private Equity (PE) activity within the Kingdom over the past five years, culminating at around $4 billion in 2023. This report, published by the venture data platform MAGNiTT and sponsored by SVC, highlights the notable growth and transformation of the Private Equity landscape, particularly emphasizing the increasing prevalence of Buyout transactions.
According to the report, the Private Equity sector in Saudi Arabia has experienced consistent growth since 2020, with a remarkable 3.7x increase in 2021 and a subsequent surge to 5.9x in 2022 compared to its 2021 level. This growth trajectory reflects a strategic shift in investment preferences, with Buyout transactions taking center stage and witnessing a 20-percentage point increase in their share of total transactions between 2020 and 2023. Concurrently, Growth transactions also saw a modest increase of 2 percentage points over the same period.
Buyout transactions have been the dominant force in the PE investment landscape, capturing an average of 80% of the total capital deployed in these transactions over the last five years. This trend underscores the evolving dynamics and growing significance of Private Equity within Saudi Arabia's financial ecosystem.
The report further highlights the diversity of PE transactions and the concentration of investments in specific industries. Notably, the Food & Beverages sector emerged as the most transacted industry within the PE landscape between 2019 and 2023. However, Manufacturing claimed the top spot in terms of total investment, commanding 46% of the capital deployed during this period.
Dr. Nabeel Koshak, CEO and Board Member at SVC, emphasized the report's significance in providing valuable market insights and understanding the evolving investment landscape in the Kingdom. He also highlighted SVC's commitment to actively propelling the various facets of Private Capital in Saudi Arabia through tailored investment programs and products aligned with regional and global working models.
Philip Bahoshy, CEO of MAGNiTT, expressed excitement about expanding coverage into the private equity landscape and the partnership with SVC in producing the inaugural Private Equity report for Saudi Arabia. The report showcases the pivotal role of private equity in shaping the Kingdom's financial landscape while offering insights into industries and leading players within the space.
