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This group is for employees of strategic investors/corporates only that are involved in M&A transactions as part of an in-house M&A department, corporate development, strategy, finance function, etc.
why Saudi Arabia becomes the best place for investment and M&A
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The Saudi economy has been experiencing an annual average growth rate of 4% over the past 7 years, supported by a pro-business environment that quickly
moves investors to the heart of the Arabic market.
The Kingdom’s commitment to diversify its economy, expand the private sector, improve competitiveness, and build a vibrant society, is driven by its Vision 2030: the strategically developed roadmap to a prosperous future.What do you think?
It is an interesting development and further acquistions, also of European companies, will for sure take place.
Yes, I agree that Saudi Arabia currently presents great opportunities for investments, either M&A or JVs or minority investments in local companies. I see a clear opportunity in the Tourism Sector – particularly in the Hotel and Lodging sector. The Saudi Government is actively trying to entice global companies to set up regional head offices in Saudi Arabia, in a move to compete with established business hubs like Dubai, Abu Dhabi and Qatar. A key incentive from the Saudi Government is to offer preferential access to developments, land banks, operating opportunities and financing through government owned entities for companies who set up regional HQs in Saudi Arabia.
What is the opportunity?
• Tourism Growth & Investment: Saudi Arabia’s tourism sector is accelerating rapidly, driven by Vision 2030, strong government support, and over $1.5 trillion in planned investments through 2034. International tourism receipts are projected to rise from $19.83 billion in 2022 to $28.05 billion in 2028. The Saudi Arabia Hotel Market is expected to reach US$ 111.18 billion by 2034 from US$ 51.53 billion in 2025, with a CAGR of 8.92% from 2026 to 2034.
• Demographics & Demand: The country has a youthful population (91% Gen X, Y, Z), expected to surpass 40 million by 2030. Tourism’s share of GDP is forecast to grow from 4.4% in 2024 to 10% by 2030, with sector employment reaching 1.6 million jobs.
• Inbound & Domestic Tourism: In 2024, Saudi Arabia welcomed 29.7 million inbound tourists (+69% vs. 2019) and 86.2 million domestic trips (+82%). The 2030 goal is 70 million inbound and 80 million domestic tourists. Inbound spend is $45 billion, while domestic spend is $30 billion. For reference, in 2024 France had 100 million international arrivals and 245 million domestic trips in 2024.
• Infrastructure & Global Positioning: Saudi Arabia is rapidly developing infrastructure (airports, hotels, cities) and positioning itself as a global event destination, hosting Expo 2030, the 2034 World Cup, and major sports events. BMI forecasts 36 million international arrivals by 2028 (6.7% CAGR).
• Market gap: Saudi Arabia’s hotel pipeline is impressive —approximately 358,000 rooms planned by 2030 —there is a pronounced structural imbalance. As of Q1 2025, 78% of the 99,500 pipeline keys fall in the luxury, upper-upscale, and upscale categories, while the 3-star segment is actually declining from 15% to just 10% of total supply. The Ministry of Tourism has explicitly signaled a strategic pivot toward mid-market and affordable hospitality, recognizing that the majority of visitors —particularly domestic travelers and religious pilgrims —require quality accommodation at accessible price points (USD 70–140 per night).
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