Investment Banking - Saudi Arabia

  • Saudi Arabia
  • In Saudi Arabia, the Investment Banking market market is anticipated to witness a significant increase in revenue, with projections indicating a staggering amount of US$1.25bn in 2024.
  • This market segment is expected to maintain a steady growth rate, with a compound annual growth rate (CAGR 2024-2028) of 0.40%.
  • As a result, the projected total revenue in Investment Banking market is estimated to reach US$1.27bn by 2028.
  • When comparing this data on a global scale, it becomes evident that the United States holds the highest revenue in the Investment Banking market market.
  • In 2024, the United States is projected to generate a remarkable revenue of US$119.10bn.
  • Saudi Arabia's investment banking sector is experiencing a surge in activity due to the country's ambitious Vision 2030 plan.
 
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Analyst Opinion

The Investment Banking market in Saudi Arabia is experiencing significant growth and development.

Customer preferences:
Investors in Saudi Arabia are increasingly seeking more sophisticated financial products and services, prompting a shift towards investment banking activities. This demand is being driven by a growing interest in diversifying investment portfolios and accessing global markets.

Trends in the market:
One notable trend in the Saudi Arabian Investment Banking market is the rise of mergers and acquisitions (M&A) activities. Companies in the region are looking to expand their operations and enhance their competitive positions, leading to an uptick in M&A deals facilitated by investment banks. Additionally, there is a noticeable increase in the issuance of Islamic bonds (sukuk) as Sharia-compliant financing instruments gain popularity among both local and international investors.

Local special circumstances:
Saudi Arabia's Vision 2030 initiative, aimed at diversifying the economy and reducing dependence on oil revenues, is playing a crucial role in shaping the Investment Banking market. The government's efforts to privatize state-owned entities and attract foreign investments are creating new opportunities for investment banks to participate in large-scale transactions. Moreover, the country's robust regulatory framework and stable economic environment are fostering a conducive atmosphere for investment banking activities to thrive.

Underlying macroeconomic factors:
The overall economic stability and favorable business climate in Saudi Arabia are bolstering the growth of the Investment Banking sector. With a young and tech-savvy population driving innovation and entrepreneurship, there is a growing demand for capital raising and advisory services provided by investment banks. Furthermore, the country's strategic geographic location and strong ties to global markets are attracting foreign investors looking to capitalize on the opportunities presented by the Saudi economy.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.

Overview

  • Revenue
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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