SAUDI ARABIA Trends and Developments Contributed by: Ghada Al Abdulwahab, Talal AlOtaibi, Khalid Alsheddi, Mariana El Maoula and Saja Bin Atef, SuhailPartners LLP
Corporate M&A in Saudi Arabia: An Introduction Global M&A experienced a strong rebound in 2025, with total deal value rising approximately 40% year- on-year to an estimated USD4.9 trillion, marking the second-highest level on record according to the Bain & Company Global M&A Report 2026. The recovery was driven largely by megadeals and strategic portfo - lio repositioning amid rapid technological disruption. Building on this global momentum, the Middle East recorded even stronger deal expansion. The PwC TransAct Middle East 2026 report notes that regional deal volumes increased by 33% year on year, reach - ing approximately 635 completed transactions, sup - ported by domestic and intra-regional consolidation, renewed inbound investment and the continued influ - ence of sovereign capital. This robust performance continued to be driven pri - marily by sovereign wealth funds and government- backed entities seeking strategic investments across multiple sectors, including energy, infrastructure, technology and financial services. Within the region, Saudi Arabia continues to stand out as one of the most dynamic markets for M&A transactions. The Kingdom is experiencing sustained momentum in deal activity, driven by Vision 2030 and its strategic focus on economic diversification and the expansion of the non-oil economy. This structural transformation is generating significant opportuni - ties across a broad range of sectors, underpinned by ongoing regulatory reforms and a progressively investor-friendly business environment that promotes growth, profitability and strategic consolidation. In parallel, Saudi Arabia is placing strong emphasis on artificial intelligence and advanced technologies, exemplified by the establishment of HUMAIN by the Public Investment Fund and its subsequent acquisi - tion of ai.io, reinforcing the Kingdom’s ambitions to position itself as a regional hub for innovation and digital transformation. Recent M&A deals driven by ongoing trends A growing number of companies are actively expand - ing through acquisitions, with several listed compa - nies executing strategic transactions in 2025. Notably, Dallah Healthcare Company completed the acquisi -
tion of the remaining shares in Care Shield Holding Company (Kingdom Hospital and Consulting Clinics) for approximately SAR434.3 million. In addition, Dal - lah signed a share purchase and subscription agree - ment with Ayyan Investment Company to acquire its stakes in Al Ahsa Medical Services Company and Al Salam Medical Services Company through a capital increase, issuing new shares to Ayyan. These trans - actions reflect a clear strategy of geographic expan - sion and patient base growth. Healthcare sector con - solidation has continued more broadly, including the acquisition by Al Hammadi Holding of Wareed Health Medical Company, and further evidencing the sus - tained role of M&A in strengthening operational scale and enhancing service offerings within the Kingdom’s evolving healthcare landscape. Regulatory advancements and reforms Regulatory advancements have significantly contrib - uted to fostering an active M&A environment and a vibrant commercial market in Saudi Arabia. The new Companies Law that came into force in January 2023 contributed to the growth and expansion of business - es, helping them tackle challenges and stay aligned with international economic, commercial and legal trends by introducing more flexible corporate struc - tures and governance frameworks. The new Investment Law, which came into effect in February 2025 and replaced the Foreign Investment Law, has ensured equal treatment between local and foreign investors, and eased foreign investors’ entry into the market by replacing the previous licensing requirement with a registration requirement to simplify the process and reduce bureaucratic hurdles. In addition, the Civil Transactions Law, which came into effect in 2023, provided clear governance on contracts and commercial transactions within Saudi Arabia by codifying principles previously governed by Sharia and judicial precedents. This standardisation has significantly reduced legal ambiguity in business dealings and established more predictable outcomes for contractual disputes. Collectively, these reforms have enhanced legal certainty for businesses, directly and indirectly supporting their growth and increasing confidence in investing in Saudi Arabia across multiple sectors.
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