Corporate Finance - Saudi Arabia

Saudi Arabia

The projected revenue in the Corporate Finance market market in Saudi Arabia is estimated to reach US$1.25bn in 2024.
It is expected to demonstrate an annual growth rate (CAGR 2024-2028) of 0.40%, leading to a projected total amount of US$1.27bn by 2028.
The average transaction value in the Corporate Finance market market in Saudi Arabia is approximately US$0.19bn in 2024.
When comparing it globally, it is worth noting that the United States generates the highest revenue with US$119.10bn in 2024.
In Saudi Arabia's corporate finance market, there is a growing trend towards Islamic finance solutions for companies seeking alternative funding options.

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Analyst Opinion

The Corporate Finance market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Customers in Saudi Arabia are increasingly seeking more diverse and sophisticated financial products and services. They are looking for tailored solutions that meet their specific needs and offer competitive returns. This shift in preferences is driving financial institutions to innovate and expand their offerings to cater to the evolving demands of the market.

Trends in the market: One notable trend in the Corporate Finance market in Saudi Arabia is the increasing adoption of Islamic finance principles. As a country with a predominantly Muslim population, there is a growing demand for Sharia-compliant financial products. This trend is reshaping the financial landscape in Saudi Arabia, with more institutions incorporating Islamic finance into their corporate offerings to attract a wider customer base.

Local special circumstances: Saudi Arabia's Vision 2030 initiative, aimed at diversifying the economy and reducing dependence on oil revenues, is playing a significant role in shaping the Corporate Finance market. The government's push for economic reforms and privatization efforts is creating opportunities for increased corporate financing activities. This has led to a surge in mergers and acquisitions, capital raising activities, and investment opportunities in the country.

Underlying macroeconomic factors: The stable economic growth, coupled with favorable government policies and regulatory frameworks, is fostering a conducive environment for the Corporate Finance market in Saudi Arabia. The country's strategic location, strong trade relations, and ongoing infrastructure developments are attracting foreign investments and fostering a vibrant corporate finance ecosystem. Additionally, the increasing digitalization of financial services is enhancing accessibility and efficiency in the market, further driving its growth and development.

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.