Saudi Arabia Leads MENA Private Equity Market in H1 2025 Amid Decline in Regional Deals

Saudi Arabia has emerged as the most active private equity (PE) market in the Middle East and North Africa (MENA) region for the first half of 2025, accounting for 45% of all recorded transactions, according to MAGNiTT’s latest MENA Private Equity Report.

The Kingdom closed 13 deals during the period — an 8% increase year on year — outpacing the United Arab Emirates (UAE), which recorded 12 transactions, reflecting a 25% decline. Together, Saudi Arabia and the UAE represented 86% of total regional PE deal activity, underscoring their growing dominance in the MENA investment landscape.

Despite leadership from the region’s two largest economies, overall PE activity in MENA continued to contract. The total number of deals dropped 38% compared to the first half of 2024, marking the third consecutive six-month decline. However, disclosed deal value was more resilient, dipping just 11% to $2.88 billion, as investors shifted toward fewer, larger investments.

“The MENA region’s PE recalibration is being led by scale-ready SMEs and high-conviction strategies, not withdrawal,” said Farah El-Nahlawi, research department manager at MAGNiTT. “The growing dominance of $100 million-plus deals signals a maturing landscape ready to absorb larger pools of capital.”

Saudi Arabia’s private equity momentum mirrors its venture capital performance. In a separate MAGNiTT report, the Kingdom was also named the top MENA venture capital market in early 2025, raising $860 million — a 116% increase from the previous year — driven by sovereign investment and rising foreign interest.

Investor participation trends diverged sharply between Saudi Arabia and the UAE. In the Kingdom, 12 out of 13 deals involved local investors, highlighting robust domestic appetite. Meanwhile, two-thirds of UAE deals — eight out of 12 — were led by international investors, reinforcing the Emirates’ role as a key regional entry point for cross-border capital.

Large-scale transactions defined the market. Deals valued between $500 million and $1 billion accounted for 29% of activity — the highest in five years — while deals exceeding $1 billion made up 14%. Smaller deals under $50 million, however, dropped to a record low of 14%.

In value terms, mid-sized deals took the lead, contributing 42% of total disclosed capital, while $1 billion-plus deals fell to 36% from 45% in 2024. This shift reflects a global trend, with S&P Global reporting an 18.7% increase in international PE deal value in H1 2025 despite a 6% drop in volume.

Beyond Saudi Arabia and the UAE, only four other MENA countries — Egypt, Jordan, Morocco, and Qatar — recorded a single transaction each, making up the remaining 14% of activity. Egypt saw the steepest decline, with deal volume plummeting 89% year on year.

“Despite global macroeconomic uncertainty, the GCC — especially Saudi Arabia and the UAE — continues to show structural resilience and growing investor confidence,” El-Nahlawi added. “Backed by sovereign support, maturing SMEs, and favorable regulation, the region is well-positioned to anchor future PE activity.”