Saudi Arabia’s private equity deals soar with $2.8bn in investments in 2024

Saudi Arabia’s PE market in 2024 was significantly driven by sector-specific trends, with the telecom and communications industry capturing the largest share of total investment value. File
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Updated 04 March 2025
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Saudi Arabia’s private equity deals soar with $2.8bn in investments in 2024

RIYADH: Saudi Arabia’s private equity market reached $2.8 billion in total investments across 15 transactions in 2024, maintaining its billion-dollar scale despite a slowdown, according to MAGNiTT’s latest report.

This represents a 27 percent year-on-year decrease from $3.9 billion in 2023, signaling a shift in capital allocation amid evolving economic conditions. The number of private equity deals also dropped significantly, falling 60 percent from 37 transactions in the previous year.

This decline follows three consecutive years of growth from 2020 to 2023, during which the market saw a compound annual growth rate of 67 percent. Factors such as higher interest rates, inflationary pressures, oil price fluctuations, and regional geopolitical tensions played a role in the slowdown observed in 2024.

Philip Bahoshy, CEO of MAGNiTT, told Arab News that the Saudi private equity market had experienced “significant growth” between 2020 and 2024, with investment value surging from $215 million in 2020 to a peak of $3.9 billion in 2023.

“2024 saw a 27 percent year-on-year decline in investment value and a 60 percent drop in transaction volume, driven by a market recalibration toward higher-quality, mid-market growth opportunities over large-scale buyouts,” he said.

Despite the overall market contraction, growth-stage private equity transactions emerged as the most active segment, accounting for 67 percent of total deals in 2024, up from 43 percent in the previous year. In contrast, buyout transactions, which dominated in 2023, experienced a sharp 76 percent decline, with their share of total private equity deals dropping from 57 percent to 33 percent.

This shift reflects a growing investor preference for expansion-stage companies with strong scaling potential, rather than control-focused buyouts. Investment value trends further underscore this transition.

While buyouts still represented the largest share of private equity capital at 82 percent in 2024, they saw a significant 39 percent year-on-year decline, totaling $2.3 billion. Conversely, growth-stage investments, though representing a smaller 18 percent of total private equity investment value, experienced a notable surge from just 1 percent in 2023. This suggests a shift toward minority and expansion-stage investments in the deal mix.

Philip Bahoshy, CEO of MAGNiTT, forecasts that Saudi Arabia’s private equity market will stabilize over the next five years, evolving from the extreme volatility of 2020-24 into a more mature and steady investment landscape.

“In a forward look, several factors will impact the private equity landscape, like increased institutional participation, as sovereign wealth funds like PIF will continue to anchor private equity investments alongside a growing number of regional and international LPs (limited partners),” he said.   

Sectoral breakdown  

Saudi Arabia’s private equity market in 2024 was significantly driven by sector-specific trends, with the telecom and communications industry capturing the largest share of total investment value. The sector attracted $2.3 billion in private equity investments, accounting for 81.8 percent of total private equity funding.

This surge was largely fueled by a major buyout transaction involving Telecom Towers Co., underscoring continued investor confidence in the Kingdom’s telecommunications infrastructure.

Beyond telecom, the sustainability sector emerged as the second-largest recipient of private equity investments, securing $225 million, or 8 percent of total private equity funding.

Healthcare followed with $190 million, representing 6.7 percent of the total, benefiting from both private equity growth transactions and buyouts, with $188 million specifically allocated to private equity growth investments. Transport and logistics secured $83 million, or 2.9 percent, while financial services saw the least investment activity among the top five sectors, attracting $17 million, or 0.6 percent.

Despite telecom leading in total investment value, the industry transaction volume told a different story. The food and beverage sector was the most active in terms of deal count, registering three transactions, all of which were buyouts. Healthcare also recorded three transactions, split between two private equity growth deals and one buyout. Financial services and transport and logistics each saw two transactions, representing 13.3 percent of total private equity activity. Education, though smaller in terms of funding, accounted for one transaction, making up 6.7 percent of total private equity deals.

The overall distribution of private equity transactions in 2024 reflected a strategic shift toward sectors aligned with Saudi Arabia’s Vision 2030 goals. While buyout investments dominated in terms of capital allocation — capturing 82 percent of total private equity funding — private equity growth transactions accounted for nearly half, or 47 percent, of overall deal activity across key industries.

This trend suggests a growing investor appetite for mid-market and expansion-stage companies, particularly in sectors such as sustainability, healthcare, and financial services.

Philip Bahoshy emphasized that sectoral diversification will play a pivotal role in shaping the future of Saudi Arabia’s private equity market.

“Telecom, healthcare, and financial services remain dominant, while emerging industries like sustainability and logistics will likely attract increased capital,” he said.    

The continued participation of sovereign funds, regulatory enhancements, and foreign investment are expected to further solidify these trends, paving the way for a more stable and mature private equity landscape in the coming years, he added.   

“Furthermore, regulatory maturity and market depth, whereby reforms and Vision 2030 initiatives drive transparency and foreign investment, will enable the ecosystem to allow smoother exits and secondary markets,” he said.  

Deal sizes    

Transaction sizes also reflected this changing landscape. Deals in the $10 million–$200 million range remained the primary driver of Saudi Arabia’s private equity market, although their share fell from 72 percent in 2023 to 58 percent in 2024.    

Meanwhile, the proportion of transactions over $200 million rebounded to 29 percent in 2024, from 14 percent in 2023.  

Investment landscape  

“Saudi Arabia’s investment ecosystem is transforming strategically, driven by Vision 2030, regulatory enhancements, and increasing institutional participation,” Bahoshy said.    

He noted that private capital, spanning private equity, venture capital, and venture debt, is playing a complementary role in shaping the investment landscape.    

While private equity focuses on scaling mature businesses, VC remains a critical driver of early-stage innovation, particularly in fintech and e-commerce.    

Saudi VC funding peaked at $1.3 billion in 2023 before moderating to $750 million in 2024, while venture debt is emerging as an alternative financing tool for startups.     

As Saudi Arabia’s investment ecosystem matures, the interplay between private equity, VC, and alternative investment vehicles will be key in sustaining long-term economic diversification and capital efficiency.    

“As PE matures and M&A activity rises, VC-backed startups will have better liquidity options, strengthening the investment cycle,” Bahoshy said.   

The country’s recalibrated approach to private equity signals a shift toward a more measured and strategic capital deployment strategy, positioning the market for long-term stability and growth.   

“Saudi Arabia’s investment landscape is evolving into a multi-layered ecosystem where private equity drives scale, VC fosters innovation, and alternative investment vehicles provide liquidity and diversification,” Bahoshy said.   

“The interplay between these verticals will be essential in sustaining long-term economic diversification, capital efficiency, and investor confidence,” he added.  


Saudi Arabia’s AI imperative: seizing the agentic enterprise to fulfill Vision 2030 goals

Updated 11 January 2026
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Saudi Arabia’s AI imperative: seizing the agentic enterprise to fulfill Vision 2030 goals

  • Workers who use AI daily are 64% more productive and 81% more satisfied with their jobs

RIYADH: As Saudi Arabia advances its ambitious Vision 2030, a transformative shift in the global workplace underscores a critical opportunity for the Kingdom’s organizations.

Slack’s latest Workforce Index survey revealed an unprecedented surge in the adoption and impact of artificial intelligence, presenting a clear pathway for Saudi businesses to lead in the era of digital labor, drive economic diversification, and create high-value roles for the future workforce.
“Saudi Arabia has all the ingredients to lead this shift: a young population, a government willing to modernize at extraordinary speed and industries preparing for global competition,” Mohammad Al-Khotani, the senior vice president and general manager of Salesforce Middle East told Arab News.

From adoption to advantage
The evidence that AI is a decisive competitive advantage is now overwhelming. Slack’s research, which surveyed 5,000 global desk workers, found that daily AI usage has soared by 233 percent in just six months.
Workers who use AI daily are 64 percent more productive and 81 percent more satisfied with their jobs than their non-AI-using colleagues. This trend is even more pronounced in specific markets; in the UK, daily AI users report an 82 percent increase in productivity and a 106 percent boost in job satisfaction.
According to the report, this surge is fundamentally reshaping work. The data confirms that trust grows with use: workers who use AI agents daily are twice as likely to trust them in areas like data protection and accuracy. 
Furthermore, AI is enabling workers to expand their capabilities strategically. Some 96 percent of AI users have leveraged the technology to perform tasks they previously lacked the skills to do.
Workers are now 154 percent more likely to use AI agents to perform tasks better and more creatively, not merely to automate them. The top productivity boosts come from eliminating extensive research, assisting with communication, and overcoming creative blocks.
Given this, Al-Khotani emphasized the macroeconomic imperative for Saudi organizations to lead, not follow. 
“Saudi Arabia is one of the few countries where the public sector has already set a global benchmark for digital service delivery. This creates a macroeconomic condition in which private-sector organizations must now match the pace set by the state,” he said. 
He further noted that “the scale of Saudi Arabia’s transformation, megaprojects, tourism growth, manufacturing build-out and new digital sectors, requires the productivity lift that only digital labor and AI agents can provide. Organizations that adopt early will move faster, earn citizen trust and gain market share.”
This perspective is echoed by Mohamad El-Charif, founder of the Middle East’s first sovereign regulatory compliance platform, Qadi.
“When we talk about digital labor in Saudi Arabia, we have to acknowledge that legal and regulatory AI is not optional. If we wait and come in as fast followers, we’ll end up running our core legal and regulatory workloads elsewhere, governed, and updated elsewhere,” he explained to Arab News. 
He argued that early adoption creates a lasting advantage: “Moving early with governed, sovereign agents, lets Saudi organizations encode their own local laws, internal policies, escalation paths and audit trails into the infrastructure.”
He added: “Under Vision 2030, leading Saudi banks, insurers, telcos, and energy companies are not just serving the domestic market; they’re becoming global players. If they build their regulatory backbone early and on their own terms, they don’t just stay in bounds at home, but they also carry that infrastructure with them as they expand.”

From automation to the agentic enterprise
This ground-level adoption aligns with a strategic corporate pivot identified in the 2025 MuleSoft Connectivity Benchmark Report, produced in collaboration with Deloitte.
The report highlighted that generative AI has reshaped human-AI interaction, and the next frontier is the rise of the “agentic enterprise.” This model involves autonomous AI agents that can operate with unprecedented independence, responding to queries, managing sophisticated tasks, and optimizing workflows without continuous human intervention.
The report found that 93 percent of IT leaders intend to introduce such autonomous agents within two years, with 40 percent having already done so and another 41 percent planning deployment within the next year.
This shift is accelerating rapidly; the average number of AI models in use has already doubled from 2024 projections, and IT leaders predict a further 78 percent increase over the next three years.
Salesforce Middle East’s Al-Khotani elaborated on this strategic potential, stating: “AI agents offer a multiplier effect across sectors that Vision 2030 prioritizes. This same efficiency can shift the economics of different industries.”
He added: “Legacy sectors can automate routine compliance, scheduling, documentation, onboarding and case resolution. Public services can move from reactive to proactive, anticipating citizen needs and completing tasks autonomously.”
Qadi’s El-Charif described this as turning “compliance from a blockage into an API,” accelerating Vision 2030’s ambitions. 
“For a thriving economy, the biggest gift you can give businesses is predictable, low-friction compliance,” he said, adding: “When you encode local laws, regulations and internal policies into agents, those checks move inside the workflow. Approvals can happen in days, not months, without lowering standards.”
However, this potential is gated by integration. Some 95 percent of IT leaders cite integration challenges as the primary hurdle to effective AI implementation. 
Organizations use an average of 897 applications, with 46 percent using over 1,000, yet integration levels have stagnated.

Opportunity for the Kingdom
For Saudi organizations, moving early to adopt and integrate AI is no longer optional, but a strategic necessity to lead in digital labor and deliver on Vision 2030’s goals of a vibrant society, a thriving economy, and an ambitious nation.
First, deploying AI in ways that deliver positive outcomes for both business and employees is key. The Slack Index showed that AI enhances human connection, not replaces it.
Daily AI users are 246 percent more likely to feel more connected to colleagues and report a 62 percent higher sense of belonging. This counters fears of displacement, showing AI can augment teamwork and culture.
Al-Khotani stressed the principles for positive deployment, noting: “AI must be introduced as augmentation, not substitution. When people understand that agents are handling low-value tasks, while humans focus on creativity, judgment and customer relationships, acceptance is extremely high.” 
He added that Salesforce data shows 84 percent of AI users say the technology makes them enjoy their job more, largely because it reduces repetitive work.
El-Charif advocated for a practical Outcome-Workflow-Governance framework to achieve this symbiosis, saying: “We design agents to take over that ‘read, retrieve, reconcile’ loop. 
“This doesn’t replace humans, but it elevates them out of the infrastructural gridlock.” 
He added: “That, for me, brings a real opportunity of using agentic AI to remove the glue work that exhausts people, and free up talent to focus on strategy, relationships and judgment, which is exactly what Vision 2030 is asking our institutions to excel at.”
Agentic AI can directly accelerate Vision 2030 ambitions. As noted by Goldman Sachs Research, generative AI can streamline business workflows, automate routine tasks and give rise to a new generation of business applications.
For Saudi Arabia, this means modernizing legacy sectors, improving efficiency in health care and financial services, and supercharging nascent industries. 
The MuleSoft report confirmed that APIs and API-related implementations now account for 40 percent of company revenue on average, up from 25 percent in 2018, demonstrating the tangible economic value of a connected, AI-ready infrastructure.
El-Charif also highlighted the societal dimension, stating: “For a vibrant society, this technology drives transparency and trust. When rules are encoded into agents, their application becomes consistent and audit-ready. This builds confidence in the market and investors know that compliance isn’t subjective, but structural.”
Finally, this transition will create high-value roles for humans. The integration challenge itself is a source of future jobs. The MuleSoft report found that developers spend an estimated 39 percent of their time building custom integrations, and IT staffing budgets are expected to rise by 61.5 percent year-over-year to meet AI demand.
Al-Khotani foresees specific new roles emerging from the AI integration challenge, saying: “Salesforce’s research shows that organizations adopting AI expect their data and integration teams to grow nearly 50 percent over the next three years.” 
He went on explaining that this opens pathways for new roles such as AI integration architects, agent workflow designers, and responsible AI officers and digital trust specialists.
El-Charif identified the emergence of roles such as “Legal Engineer,” — someone who understands both the regulation and how to encode it into logic.
Furthermore, as AI handles routine tasks, workers are freed for more strategic, creative, and innovative work, precisely the skills needed for a knowledge-based economy. 
Al-Khotani envisioned this shift elevating Saudi Arabia’s broader economic structure: “As agents take on routine and administrative tasks, Saudi Arabia’s workforce will shift toward higher-value roles that emphasize creativity, human judgment, and strategic decision-making.”
He added that this shift increases productivity per capita, a core Vision 2030 outcome, because the workforce is no longer limited by the volume of manual work it can process. “The macroeconomic structure becomes more innovation-driven and less labor-intensive.”
Global AI adoption is accelerating, worker productivity and satisfaction are skyrocketing with its use, and the next wave of enterprise value lies in agentic AI.
For Saudi Arabia, the mandate is to build the robust, integrated digital foundations today that will allow its organizations and workforce to not just participate in this future, but to lead it, turning the promise of Vision 2030 into an intelligent, automated, and human-centric reality. 
As Al-Khotani concluded: “The future economy will not reward automation alone, it will reward nations that use AI to elevate human potential. Saudi Arabia is positioned to be one of them.”