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0.1 Overview
Elevating Investments for Long-Term Success in Private Equity Ventures
Maximizing Returns and Minimizing Risks for Sustainable Growth
The Saudi Arabian private equity market is projected to grow at a compound annual growth rate (CAGR) of 7.40% from 2024 to 2032. This growth is primarily driven by increased liquidity in financial markets, enhancing the ease with which private equity firms can exit their investments.
The Market Landscape in Saudi Arabia & the GCC
Current economic diversification in the GCC is underpinned by massive private equity investments in various non-oil sectors, such as technology, healthcare, and consumer services. All this, combined with a more robust and efficient business regulatory environment in the GCC, is laying a strong foundation for a vibrant private equity market.
Why Pay Attention to Private Equity?
In this increasingly dynamic economy—one of rapid change and the correlated opportunities—private equity emerges as the perfect tool for benefiting in scale from capturing growth through sectoral shifts and regulatory reforms in positioning investors and companies for long-term success.
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0.2 Market Trends
Market Trends
Exponential Growth Rates
Starting in 2020, the market saw a substantial increase, growing 3.7 times in 2021 and then catapulting to 5.9 times that level by 2022. This rapid expansion highlights the robustness and vitality of the Saudi PE landscape.
Industry Focus
While investments in technology, healthcare, and consumer goods remain relevant, the industrial (46% market share) and financial services (29% market share) sectors have emerged as the primary drivers of private equity investments in Saudi Arabia. These sectors capture significant portions of the market, highlighting their pivotal roles in shaping the region's economic landscape.
Shift in Transaction Types
The composition of PE transactions has evolved markedly. Buyout transactions, in particular, have increased their share by 20 percentage points from 2020 to 2023, while growth transactions grew by 2 percentage points, indicating a strategic shift towards more mature investment opportunities.
Dominance of Buyouts
Over the last five years, buyout transactions have consistently captured around 80% of the total capital deployed, dominating the PE investment landscape in Saudi Arabia. This trend reflects a preference for acquiring control in established companies with stable returns.
Sectorial Focus
The Food & Beverages sector has emerged as one of the most active industries in PE transactions between 2019 and 2023, reflecting a strategic focus on sectors with steady consumer demand.
Leading Investments in Manufacturing
Manufacturing has been the leading sector in terms of total investment, commanding 46% of the capital deployed during this period. This significant focus on manufacturing indicates an alignment with Saudi Arabia's broader economic diversification goals.
0.3 Tanmeya Advantage
Tanmeya's Strategic Private Equity Solutions
It's our market analysis that drives deep, data-backed decisions regarding investments.
We will allocate resources strategically to derive the greatest growth and efficiency from the portfolio companies.
We adopt the latest technologies and sustainable practices in our real estate developments, positioning our properties at the forefront of the market.
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