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The National
14-05-2025
- Business
- The National
Economic progress in the Gulf is partly down to private equity
Private capital investments in the GCC have grown dramatically over the past few years, supporting economic diversification goals of member nations that have been the backbone of broader strategic plans led by their governments. The region has witnessed sustainable growth and evolved at a record pace, which has led to increased foreign direct investment. Private capital financing in the Gulf countries has seen a rise from $10.4 billion between 2015 and 2019 to $54.8 billion between 2020 and 2024, as reported by S&P Global. Furthermore, the combined value of private equity transactions in Saudi Arabia alone went from $523 million in 2019 to a record $4 billion in 2023, a compound annual growth rate of 66 per cent, as reported by MAGNiTT and Saudi Venture Capital Company. Many global private equity firms have cemented their presence in the Gulf, in financial hubs such as the DIFC, alongside an increasing number of local private equity firms. We must credit governments' economic diversification initiatives, one key element of which has been reduced dependency on oil revenues. Other critical initiatives have led to the nations working towards measures that enhance the ease of doing business, such as establishing free zones, introducing legislature to support and protect investors and developing user-friendly infrastructures. The increased presence of institutional investors, local and foreign, has coincided with a corresponding increase in demand from high-net-worth individuals and family offices seeking access to private market investments. For example, private equity offers an alternative to traditional asset classes that is increasingly attractive to investors, allowing them access to new and emerging sectors. Furthermore, private equity has brought funding and fresh perspectives to various sectors in the region, leading to growth and contributing to national diversification goals. Investments in fintech, AI and digital infrastructure have boosted the tech and innovation space in the Gulf, positioning the region as a growing hub. The healthcare sector is another example of an industry that has benefitted from private investment. The sector has experienced robust growth, driven by rising populations, boost in income levels and increased interest towards health and wellness. Alpen Capital reported that the current healthcare expenditure in the Gulf grew at a compound annual growth rate of 9.5 per cent between 2020 and 2022, reaching $104.1 billion. It is projected to reach $135.5 billion in 2027. The industry has been able to adapt to fast-growing populations and market demand with private equity-backed expansions in medical facilities, pharmaceutical companies and health tech startups, leading to improvements in overall access and quality. Across the Gulf, additional areas of opportunity including real estate, infrastructure and energy have reaped the benefits of private equity investments, contributing to urbanisation, the development of modern and smart cities, renewable energy projects, waste management, and sustainable agriculture. These developments have made an undeniable impact on the socio-economic landscape in the region, improving quality of life, providing employment and business opportunities, improving infrastructure and enabling both governments and private sector players to fund additional investments for the future. There are plenty more private equity deals in the pipeline, including Investcorp's multi-million-dollar fund, backed by China's sovereign wealth fund CIC, which is investing across the Gulf in sectors including health care, consumer goods, logistics and business services. While few can doubt the vitality, diversification and capital that private equity firms have brought to the Gulf, one must also be aware of potential challenges that may arise in coming years. Investors may be deterred by some geopolitical factors in the future, affecting the flow of capital. Also, fluctuations in oil prices and global economic conditions could affect the Gulf economies as well as the stability of private equity returns. Therefore, it is important to remain cautious and avoid counting the eggs before they hatch. The region also has an opportunity to build offerings based on global trends and allow room for flexibility so that the market can adapt to external changes beyond its control. Diversification is a powerful way to reduce risk and achieve strong overall returns, so it is useful to work on widening the pool of global private equity investments in the region in order for it to face a relatively smaller impact of changing external environments and economic factors. Governments can also look into regulatory frameworks that protect their national economies, promote regional integration and collaboration while maintaining political stability. Strengthening institutions and fostering a culture of innovation will be crucial in maintaining the momentum of private equity growth. Private equity has transcended its traditional role as a source of finance to a strategic player in the story of the Gulf's transformation. From pumping capital into myriad sectors, catalysing innovation and digitisation, improving the quality of life for citizens, providing enriching portfolios to local investors and fostering sustainable development, private equity firms are not only boosting economic activity but also driving the development of resilient and increasingly diversified economies. As GCC member nations continue to work in synchrony and build on past successes, private equity will continue to be a strong force shaping the economic landscape and paving the way for generations to come.
Associated Press
14-04-2025
- Business
- Associated Press
Riyadh to Host Private Capital Forum this October
RIYADH, SAUDI ARABIA, April 14, 2025 / / -- The Saudi Venture Capital Company (SVC) has announced the launch of the " Private Capital Forum 2025", which is the first forum of its kind in Saudi Arabia that focuses on private capital ( venture capital, private equity, venture debt, and private credit ). The forum is scheduled for October 22-23, 2025, at the King Abdullah Financial District (KAFD) in Riyadh. SVC emphasized that the forum presents an opportunity to exchange expertise and explore best practices related to the private capital sector, focusing on venture capital, private equity, venture debt, and private credit. This event will serve as a pivotal gathering for fund managers and fund investors, where forum sessions will discuss new growth benchmarks and explore advanced governance frameworks, with the participation of over 500 experts and specialists from around the globe. The forum will address a range of critical topics, including future trends in the private capital landscape, the opportunities in the Saudi market for international and regional investors, and identifying shared strategies, trends, and challenges. Dr. Nabeel Koshak, CEO and Board Member at SVC, stated, 'Following the unprecedented growth of the Saudi private capital ecosystem, the inaugural edition of the forum is a unique opportunity to expand the ecosystem to broader horizons, leveraging local, regional, and global opportunities in private capital. This two-day event will bring together global experts and investors in Riyadh to explore the latest sector developments and working models'. Koshak added: 'We at SVC have no doubt that this is only the beginning and are committed to further stimulating the VC ecosystem in Saudi Arabia by launching required investment programs and products that are based on the analysis of the ecosystem's needs and following regional and global working models.' -Ends- About SVC: SVC is an investment company that was established in 2018. It is a subsidiary of the SME Bank, part of the National Development Fund. SVC aims to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO through investment in funds and direct investment in startups and SMEs. Nasry Abou Zaki JCN Marketing [email protected] Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Syyaha
09-04-2025
- Business
- Syyaha
Riyadh to Host Private Capital Forum this October
The Saudi Venture Capital Company (SVC) has announced the launch of the 'Private Capital Forum 2025', which is the first forum of its kind in Saudi Arabia that focuses on private capital (venture capital, private equity, venture debt, and private credit). The forum is scheduled for October 22-23, 2025, at the King Abdullah Financial District (KAFD) in Riyadh. SVC emphasized that the forum presents an opportunity to exchange expertise and explore best practices related to the private capital sector, focusing on venture capital, private equity, venture debt, and private credit. This event will serve as a pivotal gathering for fund managers and fund investors, where forum sessions will discuss new growth benchmarks and explore advanced governance frameworks, with the participation of over 500 experts and specialists from around the globe. The forum will address a range of critical topics, including future trends in the private capital landscape, the opportunities in the Saudi market for international and regional investors, and identifying shared strategies, trends, and challenges. Dr. Nabeel Koshak, CEO and Board Member at SVC, stated, 'Following the unprecedented growth of the Saudi private capital ecosystem, the inaugural edition of the forum is a unique opportunity to expand the ecosystem to broader horizons, leveraging local, regional, and global opportunities in private capital. This two-day event will bring together global experts and investors in Riyadh to explore the latest sector developments and working models'. Koshak added: 'We at SVC have no doubt that this is only the beginning and are committed to further stimulating the VC ecosystem in Saudi Arabia by launching required investment programs and products that are based on the analysis of the ecosystem's needs and following regional and global working models.
Zawya
09-04-2025
- Business
- Zawya
Riyadh to host Private Capital Forum this October
Riyadh, Saudi Arabia – The Saudi Venture Capital Company (SVC) has announced the launch of the "Private Capital Forum 2025", which is the first forum of its kind in Saudi Arabia that focuses on private capital (venture capital, private equity, venture debt, and private credit). The forum is scheduled for October 22-23, 2025, at the King Abdullah Financial District (KAFD) in Riyadh. SVC emphasized that the forum presents an opportunity to exchange expertise and explore best practices related to the private capital sector, focusing on venture capital, private equity, venture debt, and private credit. This event will serve as a pivotal gathering for fund managers and fund investors, where forum sessions will discuss new growth benchmarks and explore advanced governance frameworks, with the participation of over 500 experts and specialists from around the globe. The forum will address a range of critical topics, including future trends in the private capital landscape, the opportunities in the Saudi market for international and regional investors, and identifying shared strategies, trends, and challenges. Dr. Nabeel Koshak, CEO and Board Member at SVC, stated, "Following the unprecedented growth of the Saudi private capital ecosystem, the inaugural edition of the forum is a unique opportunity to expand the ecosystem to broader horizons, leveraging local, regional, and global opportunities in private capital. This two-day event will bring together global experts and investors in Riyadh to explore the latest sector developments and working models". Koshak added: "We at SVC have no doubt that this is only the beginning and are committed to further stimulating the VC ecosystem in Saudi Arabia by launching required investment programs and products that are based on the analysis of the ecosystem's needs and following regional and global working models." -Ends- About SVC: SVC is an investment company that was established in 2018. It is a subsidiary of the SME Bank, part of the National Development Fund. SVC aims to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO through investment in funds and direct investment in startups and SMEs. Media Contact Company Name: Saudi Venture Capital (SVC) Contact Person: Dr. Osamah Alamri Email: oalamri@
Leaders
23-02-2025
- Business
- Leaders
For Second Year in Row: Saudi Arabia Dominates MENA Venture Capital in 2024
Saudi Arabia secured its position as MENA's top venture capital (VC) hub for the second consecutive year in 2024. The Kingdom captured over 40% of regional VC funding, attracting 750 million, MAGNiTT data revealed. The UAE followed with 613 million, reinforcing MENA's rising startup momentum. Sector Growth and Early-Stage Surge VC deals in Saudi Arabia soared to a record 178 in 2024, a 16% annual increase. Early-stage startups drove this growth, reflecting stronger investor confidence in nascent tech sectors. Fintech, e-commerce, and clean energy startups claimed the largest funding shares, aligning with Vision 2030 diversification goals. Despite deal growth, total VC investments fell 44% yearly due to an 85% drop in mega-deals above $100 million. Analysts attribute this to global economic caution, though seed-stage activity signals long-term optimism. A record 135 investors backed Saudi startups in 2024, marking a 6% rise from 2023. M&A activity remained steady, with seven deals mirroring 2023 and 2022 totals. Local funds like Saudi Venture Capital Company accelerated support for high-potential ventures. Regional Outlook and Strategic Vision Saudi Arabia's dominance underscores its role as MENA's innovation engine despite global headwinds. Experts predict sustained growth as regulatory reforms and startup ecosystems mature. The Kingdom's progress aligns with its strategy to become a global entrepreneurial powerhouse by 2030. In conclusion, Saudi Arabia continues to demonstrate leadership in venture capital investment across the MENA region. Despite facing challenges, it maintains a strong trajectory. By focusing on early-stage investments and encouraging diverse participation, the Kingdom solidifies its role as a hub for entrepreneurial development and economic progress. Short link : Post Views: 27
