Private equity investing is blasting off in Saudi Arabia. After crossing the $1 billion threshold in 2022 and growing nearly 6X in the prior year, the industry quadrupled to $4 billion in 2023 across 30 deals, according to new data from Magnitt.

The kingdom is at a “pivotal intersection,” Huda Al Lawati, Founder & CEO of Gulf-based investment manager Aliph Capital, said in Magnitt’s report.

She said Saudi Arabia’s traditionally entrepreneurial private sector is meeting with economic diversification efforts led by the government to create a flood of investment opportunities and potential for growth, providing opportunities in tourism, sports, and logistics. 

Buyout transactions have been the main driver of private equity growth from 2020 through 2023.

Saudi Arabia’s Public Investment Fund accounted for the largest number of transactions, totaling 18, most of which were reported in 2022 and 2023.

Active investors with four-plus deals done are all Saudi-based firms: Asyaf Investments, GAIC, and BATIC, according to Magnitt.

Newer players in PE in the kingdom with two to three deals completed include Investcorp, Marek Capital and Blominvest.