Saudi M&A Market Drives Growth in 2025-2026

Sep 7, 2026

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Saudi M&A Market Drives Growth in 2025-2026

Saudi Arabia has cemented its position as one of the most dynamic mergers and acquisitions (M&A) markets in the Middle East, with reviewed transactions in 2025 reaching an aggregate value of about SAR 1.97 trillion. Acquisitions accounted for roughly 94% of filings in the first quarter of 2026, underlining the sector's central role in the Kingdom's economic transformation.

M&A activity is seen as a key driver of growth and competitiveness under the Kingdom's economic transformation initiatives, with continued strategic investment flowing into priority sectors including financial services, healthcare, technology, infrastructure and energy throughout 2026.

Regulatory oversight and thresholds

The General Authority for Competition (GAC) applies cumulative notification thresholds for economic concentrations. These require notification when the combined worldwide annual sales of all parties exceed SAR 200 million, when the target's worldwide sales (or those of at least two parties in a merger or joint venture) exceed SAR 40 million, and when sales generated inside Saudi Arabia by all parties exceed SAR 40 million.

The GAC's Economic Concentration Review Guidelines (Version 5), in force since 8 April 2025, clarify the concept of control, set separate thresholds for mergers, acquisitions and joint ventures, and introduce exemptions for certain cross-border joint ventures and passive investment funds. Approvals now carry a formal validity period of 12 months; transactions that do not close within that window require a new filing.

In 2025, the GAC reviewed 406 economic concentration applications, issuing 271 "No Objection" certificates and 135 "No Notification Required" certificates. First-quarter 2026 applications totaled 75, a 31% year-on-year decline, though deal value and strategic significance remained high.

Meanwhile, the Capital Market Authority (CMA) regulates acquisitions and mergers involving listed companies. In February 2026, CMA amendments removed the Qualified Foreign Investor framework, simplifying foreign participation in the market — a change that further opens the door for international investors and reflects the Kingdom's drive to attract global capital.

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