Saudi Arabia's private equity market is expected to reach $13.55bn by 2033, up from $7.3bn in 2024, according to research published by IMARC Group on July 18.

The market is projected to grow at a compound annual growth rate of 7.1% between 2025 and 2033, driven by the kingdom's Vision 2030 economic diversification programme and regulatory reforms designed to attract foreign investment.

Vision 2030 has created opportunities for private equity through government initiatives to develop sectors including technology, healthcare and tourism. The Public Investment Fund, with assets of $941bn, is supporting projects such as NEOM, a $500bn smart city development.

Private equity investments in Saudi Arabia reached $2.8bn across 15 deals in 2024, reflecting increased investor confidence following regulatory changes that have simplified business processes and reduced investment costs.

The telecommunications sector attracted $2.3bn, representing 81.8% of total private equity investments, largely due to a major buyout of Telecom Towers Co. Technology and fintech investments are gaining prominence as digital adoption accelerates among the kingdom's young population.

Growth-stage investments accounted for 18% of overall private equity investment in 2024, compared to 1% in the previous year, with $188mn allocated to healthcare growth strategies. This shift indicates market maturity, with investors focusing on scaling ambitious businesses rather than acquiring established ones.

Environmental, social and governance investments raised 8% of total private equity funding in 2024, totalling $225mn. This aligns with Vision 2030's sustainability goals, including renewable energy projects and carbon capture initiatives.

The Saudi Industrial Development Fund has introduced loan schemes covering 50% to 75% of project costs, whilst new regulations now permit 100% foreign ownership in more sectors.

"The entrepreneurial ecosystem in Saudi is thriving with a big population of youths and government support to start-ups," the IMARC Group report stated.

Saudi Venture Capital Company has invested in more than 1,300 companies through 123 funds, with total investments exceeding $944bn, supporting the kingdom's growing startup environment.