An economic report estimated the volume of mergers and acquisitions in the Saudi market during the past year at about $ 1.1 billion, representing 50% of the Gulf market. It is expected that the current year market will witness more cases, especially in the e-commerce, energy, education and healthcare sectors this year. According to the estimates of the Competition Authority, the total number of submitted applications reaches 15, which are carefully studied to ensure that there are no negative effects on the market. An economic report by So Unit Business Consulting and Support said that the Kingdom has become one of the most attractive markets for international companies looking for merger and acquisition deals, and that this year will witness an increase in this trend following the conclusion of many successful deals last year.
As the kingdom moves forward with its economic transformation, its doors are open to international companies wishing to expand their presence in the region’s largest economy, said Jamil Fakhry, director of corporate finance and strategic advisory at The Unit. The domestic mergers and acquisitions market is expected to witness further growth this year, and this is expected to be concentrated in the e-commerce, energy, education and healthcare sectors. He pointed to a state of optimism in the market with the Kingdom’s commitment to open its economy and explore new areas for investment. It is known that the Central Bank recently called on insurance companies and banks to expand mergers in order to form strong entities capable of competition in light of high capital costs, operating expenses and financial compensation.