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Saudi private equity investment peaked at $4B in 2023 amid rising buyouts

The kingdom's deep-pocketed sovereign wealth fund was involved in the top three private equity transactions between 2019 and 2023.
Matthew Stockman/Getty Images

Saudi Arabian private equity investment hit an all-time high of $4 billion in 2023 amid a trend in rising company buyouts by investors in the kingdom.

A new report by financial data firm MAGNiTT and Saudi Venture Capital Company found that the Gulf country has seen a growing interest in private equity transactions for the last five years. After the volume multiplied in 2021 to $610 million, private equity broke through the billion-dollar range in 2022 at $3.58 billion, 5.9 times its 2021 level. In 2023, it reached a record high of $3.97 billion.

The report said that private equity investments in the kingdom were typically driven by buyout transactions, which are when an investor seeks to gain a controlling majority of at least 50%.

In 2023, 70% of total private equity transactions were buyouts and 75% in 2022. In 2021, the buyout share of total transactions recorded its highest level of 80%.

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