Saudi Arabia’s Mergers and Acquisitions Market Attracts International Players

  • The Unit expects 2021 to witness further consolidation in key markets such as healthcare, education, e-commerce, and energy
  • Local M&A market is valued at more than USD 1 billion
Jamil Fakhri, Corporate Finance and Strategy Advisory Director at The Unit

The Kingdom of Saudi Arabia has become one of the most attractive markets for international companies seeking new mergers and acquisitions (M&A), and 2021 is set to witness an increase in the trend following several successful deals in 2020, according to The Unit: Business Consulting & Support, a regional consulting firm operating in the KSA and the Arab region since 2006. In fact, The Unit has recently successfully orchestrated a buyout of a local facilities management firm by a leading global conglomerate in the energy sector. 

During the third quarter of 2020, Saudi Arabia ranked among the top investment banking fee earners in the Middle East and North Africa (MENA) and is expected to maintain its position in 2021 as more companies take advantage of the investment climate in the region, and in Saudi Arabia in particular. 

Jamil Fakhri, Corporate Finance and Strategy Advisory Director at The Unit, said: “As Saudi Arabia leaps ahead in its economic transformation in line with Saudi Vision 2030, the doors are open for international market players to expand their presence in the largest economy in the Region. We have seen M&A activities leveraging the capabilities of leading local companies for attenable go to market solutions.

The local M&A market is projected to further grow this year, with activity expected to centre mainly on the e-commerce, energy, education and healthcare sectors.

Alongside these developments, new laws and economic initiatives further serve to consolidate the Kingdom’s growth prospects, thereby attracting international investors 

Fakhri concluded: “There is strong optimism in the local M&A market as Saudi Arabia remains committed to opening its economy and exploring new areas of investments. We are confident this factor will continue to drive greater interest from international investors

The Unit has been providing strategic and corporate finance advisory services such as M&A, private equity transactions and debt restructuring and refinancing in the region, leveraging its intrinsic knowledge of the local sector and operating factors within the Kingdom and the MENA region. It has secured deals for local, regional and international companies and has provided advice on projects valued at more than USD 2.5 billion. The company has also been providing management consulting, financial capability advisory and franchise development services for diverse clients across varying sectors since its inception.