High rate will continue into the middle of 2022. AS we recover from pandemic saudi market saw m&a jump by over 75% in 2021 compared to last year. this is mainly inorganic deals in the IT, Healthcare and petchem sectors.
To start off with, I think companies merge for different strategies. One is to consolidate recourses to survive tough times, another is to create value and grow at a faster pace. As the upcoming years will serve the mentioned purpose of mergers, I think M&A deals will continue to grow.
I have no experience in the Saudi market for M&A. I live in Canada, and not sure if there are different economic drivers for mergers in the Saudi market (different from Canada). Be interested in learning a bit more about what is happening in the Saudi market these days. Especially post Covid.
Future is bright for KSA. The kingdom has transformed into a business market for global organizations looking for new merger and acquisitions. Currently, KSA market is estimated to be around USD 1 billion with activities in education, energy and e-commerce. Despite current challenges, next few years could be a period of growth for companies push to boost margins and cut costs.
There is a push to diversify and open the Saudi economy, however, in my opinion the M&A activity will be largely impacted by crude prices, as this significantly drives the investor sentiment. Also, as experienced in other jurisdictions post-Covid, companies will be very focussed on capital discipline and shareholder value, which means potential deals will receive lots of scrutiny.
The Saudi market is an emerging market where most sectors are experiencing accelerated growth. In my opinion, there will be a lot of mergers and acquisitions in the Saudi market as companies are trying to more customer centric and provide a better journey. In order to achieve these goals, companies will need to search for synergies and better opportunities.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.