MENA private equity deals totaled $27.6bn from 2020 to 2024, growing at 14 percent annually.

Saudi Arabia overtook the UAE in 2023, accounting for 41 percent of transactions, driven by Vision 2030 and increased sovereign wealth fund activity. Together, both markets made up 68 percent of regional private equity transactions, with the UAE securing $13.5bn in deal value and Saudi Arabia $11bn. In 2024, Saudi Arabia contributed more than half of total private equity investment.

Private equity activity peaked at 97 deals in 2022 before declining in 2023 and 2024. Deal volume fell 24 percent last year as investors adjusted to rising interest rates and weaker debt markets. While global private equity rebounded in 2024, MENA investors remained cautious, prioritizing strategic growth investments over leveraged buyouts.

Investment strategies also shifted. Buyouts, which accounted for 56 percent of deals in 2020, dropped to 29 percent in 2024, while private equity growth deals rose to 71 percent. Most deals remained under $50m, though billion-dollar transactions held the largest share of disclosed value. Large-scale deals peaked at 77 percent of total private equity investment in 2023 before dropping to 47 percent in 2024.

Healthcare led deal volume with 64 transactions, making up 18 percent of private equity activity. Finance attracted the highest disclosed deal value at $7.5bn, while telecom accounted for 47 percent of total private equity investment in 2024. Other active sectors included IT solutions, logistics, sports, sustainability, and energy.

Sovereign wealth funds, particularly Saudi Arabia’s Public Investment Fund and Abu Dhabi’s ADQ, played a key role in shaping private equity trends. Investors are now shifting toward mid-market growth and sector-specific plays. While the return of global buyouts and lower interest rates could revive leveraged deals, caution is expected to persist. Despite the slowdown in 2024, MENA remains positioned for long-term private equity growth.