Saudi Arabia recorded a 17.4% surge in mergers and acquisitions approvals during 2024, underscoring the Kingdom’s ongoing push to strengthen its competitive business landscape. The General Authority for Competition (GAC) sanctioned 202 economic concentration requests—the most in its history—while 10 additional applications remained under review at year’s end. Economic concentration approvals are a regulatory prerequisite for mergers and acquisitions to ensure they do not create monopolies or disrupt healthy market competition. The significant uptick in approvals aligns with GAC’s overarching objective to implement competition-enhancing policies, curb illegal monopolistic practices, and improve market performance. These moves are designed to boost consumer and business confidence, attract investment, and promote sustainable development across the Saudi economy. Against a global backdrop of slowdown in deal activity, Saudi Arabia’s robust performance stands out as a strategic signal of the Kingdom’s growing role in regional and international business ecosystems.
Record M&A Approvals Signal a Competitive Push
The surge in economic concentration approvals reflects deliberate policy choices aimed at fostering a more dynamic, competitive market environment within Saudi Arabia. The GAC’s annual report highlights that the 202 approved requests mark a historic high for the authority, signaling a breaking of previous records and illustrating the Kingdom’s intensified regulatory oversight in the M&A space. These approvals are not mere procedural formalities; they represent concrete steps to verify that consolidation does not undermine competition, impede entry, or elevate barriers for new entrants. In practice, the approvals function as a safeguard mechanism, ensuring that mergers and acquisitions are scrutinized through a competition-centric lens. This approach is especially critical as Saudi Arabia expands its industrial capacity and diversifies its economic bases under Vision 2030.
The 2024 approvals also include 10 applications that remained under review as the year concluded, indicating that the GAC is maintaining rigorous scrutiny for complex deals. This ongoing review process emphasizes the authority’s commitment to due diligence, market transparency, and proportionality in regulatory actions. By maintaining a steady pipeline of reviews, the GAC signals to investors and market participants that mergers and acquisitions are subject to careful, evidence-based assessment. This clarity of process helps mitigate regulatory risk and supports long-term planning for corporate strategies, financing, and cross-border collaborations. The overall trend points to a governance framework in which competition policy serves as a central pillar for market efficiency, consumer welfare, and sustainable growth. The Saudi government’s emphasis on competition culture is evident in how the GAC integrates its reviews with broader economic development goals, including resilience, diversification, and inclusive growth for various sectors.
The international context reinforces the significance of Saudi Arabia’s performance. A year characterized by a global decline in M&A activity contrasts with the Kingdom’s rising approvals, illustrating how domestic policy and regulatory clarity can attract investor interest even when global deal volumes contract. A GlobalData report, released in December, noted that worldwide deal volume fell by 8.7% year-on-year in the first 11 months of 2024, with the Middle East and Africa region experiencing a relatively modest 5% decline. Saudi Arabia’s higher activity within this environment suggests a strategic advantage—anchored in predictable regulatory pathways, enhanced competition governance, and a fast-evolving market landscape—that makes the Kingdom an increasingly attractive destination for both local and international capital. Such positioning aligns with the broader trend of regional markets leveraging reforms to capture share from more mature economies and to reorient investment toward sectors with high growth potential and strategic importance.
In terms of the composition of approvals, acquisition deals dominated at 81% of the total, while joint ventures accounted for 15% and mergers represented 2%. This distribution highlights a predominant market emphasis on consolidations that aim to combine capabilities, expand market reach, and optimize supply chains through controlled partnerships rather than pure absorptions. The heavy tilt toward acquisitions indicates confidence among market participants that asset integration and scale reconfiguration can be used to accelerate competitive advantages, achieve synergies, and unlock value while maintaining competitive balance within the regulatory framework. The share of JV activity, while smaller, points to a complementary pathway where strategic collaborations can advance technology transfer, knowledge exchange, and regional market access, all under the oversight of competition authorities designed to preserve fair play and prevent market power concentration that harms consumers.
The sectoral breakdown within the approvals reveals a pronounced focus on manufacturing, ICT, and wholesale and retail trade, including motor vehicle and motorcycle repairs. Specifically, the manufacturing sector led activity with 67 approved requests, followed by information and communications (ICT) with 39, and wholesale and retail trade plus repairs for motor vehicles and motorcycles with 22. This concentration underscores Saudi Arabia’s industrial priorities and the central role of manufacturing in the country’s diversification agenda. It also reflects targeted regulatory attention to sectors where consolidation can improve productivity, supply chain resilience, and access to advanced technologies. The emphasis on manufacturing signals a strategic push to consolidate capabilities, enhance domestic value addition, and attract foreign direct investment that brings capital, expertise, and operational efficiencies into a rapidly expanding industrial base. By contrast, ICT and retail sectors show how digital transformation, consumer access, and logistics efficiency continue to be seen as key enablers of broader economic modernization.
Foreign participation in concentration requests is also a notable aspect of 2024 trends. Foreign companies demonstrated significant interest in the manufacturing sector, accounting for 28% of their concentration requests, followed by information and communications at 17%, and wholesale and retail trade at 15%. This pattern indicates a readiness among international firms to engage with Saudi markets through acquisition and collaboration, particularly in sectors where Saudi policy aims to attract technology, capital, and know-how. The presence of global players within manufacturing and ICT suggests confidence in the Kingdom’s regulatory environment, market size, and growth trajectory. Such foreign engagement can contribute to technology transfer, standards development, and best practice adoption, while simultaneously testing competitive dynamics within domestic markets. The GAC’s oversight ensures that foreign-led consolidations proceed in ways that protect domestic competition, prevent monopolistic practices, and promote a level playing field for local firms and entrepreneurs.
The GAC has also noted a broadening of market activity, with concentration requests received in emerging sectors such as off-road tires, nicotine replacement therapy (NRT) manufacturing, and industrial protective coatings. This diversification signals a growing appetite among market participants to explore opportunities outside traditional, established industries, aligning with the broader Vision 2030 objective to build a diversified, knowledge-based economy. The emergence of these newer sectors highlights the regulatory environment’s capacity to adapt to evolving market conditions, technology trajectories, and consumer health and safety considerations. As these sectors gain prominence, the GAC’s role in evaluating horizontal, vertical, and cluster relationships becomes increasingly important to ensure that innovation-driven growth does not come at the expense of competitive balance. The regulatory framework, in this view, serves as a dynamic tool that can accommodate shifting industry landscapes while maintaining a strong commitment to fair competition and market integrity.
The first quarter of 2024 saw Saudi Arabia leading the Middle East in chemicals sector activity, with deals valued at approximately $500 million. This milestone underscores the Kingdom’s capacity to attract capital into strategic chemical industries, which are critical to manufacturing supply chains, downstream value creation, and regional economic influence. In addition to the concentration metrics, the GAC approved four new car agency registrations during the year, reflecting continued momentum in the automotive distribution sector. The authority’s analysis revealed that 53% of concentration requests were based on horizontal relationships—where entities operate within the same sector and often within overlapping product or service areas—while vertical and cluster relationships accounted for 16% and 31%, respectively. This breakdown demonstrates a nuanced understanding of inter-firm dynamics and the ways in which different types of relationships can influence market structure when mergers or acquisitions occur.
alignment with Vision 2030 is a recurring thread throughout these developments. By fostering a business-friendly regulatory environment, Saudi Arabia seeks to attract foreign investment, stimulate sectoral growth, and broaden the base of competitive local enterprises. The surge in merger and acquisition approvals is thus not only a reflection of regulatory activity but also an affirmation of the Kingdom’s ambition to reposition itself as a regional hub for business, investment, and knowledge-driven growth. As regulatory and economic frameworks strengthen, the spike in merger approvals mirrors a broader strategy to build resilient markets that can withstand external shocks, adapt to technological change, and deliver sustainable benefits to consumers, workers, and enterprises alike. In this sense, the GAC’s record activity embodies a strategic component of Saudi Arabia’s long-term plan to shape a modern economy where competition, innovation, and inclusion converge to deliver broad-based prosperity.
Sectoral Concentration and Market Dynamics
A deeper look at the sectoral concentration reveals intricate patterns that illuminate the Kingdom’s evolving market dynamics and regulatory priorities. Manufacturing’s dominance among approved concentration requests—representing the largest single sector with 67 approvals—emphasizes the priority given to strengthening domestic production capacity, supply chains, and the integration of modern manufacturing technologies. This emphasis aligns with the broader objective of enhancing economic resilience, expanding value-added output, and reducing reliance on imports for critical goods. It also suggests a strategic intent to attract multinational manufacturers seeking regional hubs or re-shoring opportunities within the Saudi market, benefiting from a favorable regulatory environment, skilled labor, and access to regional markets across the Middle East, North Africa, and beyond.
Information and communications technology (ICT) follows closely, with 39 approvals. The ICT sector’s prominence reflects the central role of digital infrastructure, software, data services, and communications technologies in enabling modern economic activity and digital transformation across industries. The concentration of approvals in ICT indicates both foreign and domestic interest in consolidations that can accelerate technology adoption, scale platforms, and improve the efficiency and capability of digital networks. The regulatory framework governing ICT-related concentrations must balance competitive considerations with the need to foster innovation and security in data handling, privacy, and cyber resilience. The presence of foreign participation in ICT concentration requests further signals confidence in the Kingdom’s data governance environment and in regulatory clarity regarding ownership, control, and competition-related risks.
Wholesale and retail trade, including motor vehicle and motorcycle repairs, accounted for 22 approvals, reflecting the importance of distribution networks, consumer access, and after-sales services to Saudi Arabia’s consumer economy. Market structure in retail is particularly sensitive to competition dynamics because consolidations can influence prices, product availability, and service quality. The consolidation activity in this sector underscores the GAC’s attention to maintaining competitive balance across distribution channels, ensuring that consumers continue to benefit from choice and competitive pricing while allowing firms to pursue efficiency gains through scale. The data also resonate with the broader consumer-oriented policy aims of Vision 2030, which seeks to empower consumers through improved access to goods and services and to spur investment in sectors that underpin domestic demand and job creation.
Foreign interest in specific sectors reveals a strategic alignment between international capital flows and Saudi market priorities. Manufacturing was the primary target for foreign concentration requests, capturing 28% of such deals, followed by ICT at 17% and wholesale/retail at 15%. This distribution indicates a confidence among global players that Saudi manufacturing capabilities, supply chains, and industrial ecosystems offer compelling opportunities for value creation, technology transfer, and regional scale. It also points to a potential transfer of advanced manufacturing practices, quality standards, and innovation capabilities into the Saudi economy, complementing domestic efforts to diversify away from oil dependence. The interplay between foreign participation and domestic policy aims suggests that regulatory authorities are managing a delicate balance: enabling beneficial foreign involvement while preserving competitive equilibrium and safeguarding national interests in key industries.
Emerging sectors illustrate the GAC’s capacity to adapt to evolving markets and to identify opportunities for competition-aware investment. Requests received in off-road tires, nicotine replacement therapy (NRT) manufacturing, and industrial protective coatings demonstrate an appetite for diversification beyond traditional sectors. Each of these sectors presents unique regulatory considerations—ranging from product safety and public health to environmental impact and occupational safety—requiring careful assessment of market concentration risks and the potential for market power to arise post-consolidation. The inclusion of such sectors in concentration activity underscores the GAC’s holistic approach to market regulation: it monitors not only established industries but also new and evolving domains where competition policy can foster healthier market structures, encourage innovation, and attract new entrants while safeguarding consumer welfare.
In the chemicals sector, Saudi Arabia’s leadership in the Middle East during the first quarter of 2024, with deals worth $500 million, reflects the Kingdom’s strategic focus on high-value, capital-intensive industries that underpin downstream manufacturing capabilities. The scale of chemical sector activity signals the attraction of international capital to Saudi-based chemical value chains, which can subsequently stimulate ancillary sectors, such as plastics, fertilizers, specialty chemicals, and advanced materials. The regulatory environment’s responsiveness to such activity—through timely concentration reviews and well-calibrated horizontal, vertical, and cluster assessments—contributes to a reliable investment climate. The four new car agency registrations approved during the year further illustrate how the market combines regulatory oversight with practical growth opportunities in automotive distribution networks. These linkages between policy, market demand, and sector-specific growth considerations are central to understanding how Saudi Arabia seeks to cultivate a diversified, resilient economy capable of sustaining long-term development.
Regulatory Framework, Policy Alignment, and Vision 2030 Implications
The surge in merger and acquisition approvals must be viewed within the broader narrative of Saudi Arabia’s regulatory and economic evolution. The GAC’s activities are not only about approving or blocking deals; they are about shaping a competition landscape that can deliver tangible benefits to consumers, businesses, and investors. The emphasis on fighting illegal monopolistic practices and enhancing market performance suggests a proactive stance toward market regulation, with the aim of ensuring that consolidation leads to efficiencies and competitive dynamics rather than reduced choice or higher prices. By prioritizing competition-enhancing policies, the GAC helps to create a regulatory environment that is predictable, transparent, and conducive to investment. Such an environment is crucial for both domestic firms seeking scale and foreign investors seeking a reliable regulatory framework in which to plan long-term growth.
Vision 2030 serves as a guiding blueprint for these regulatory and economic initiatives. The plan envisions a business-friendly environment that attracts foreign investment, supports sectoral growth, and positions Saudi Arabia as a regional hub for business and investment. The record-high level of concentration approvals can be read as a signal that the Kingdom is actively implementing this vision by improving the efficiency and effectiveness of its competition regime. A competitive market, supported by robust regulatory oversight, is expected to drive greater productivity, spur innovation, and support the development of high-value industries—the core aims of Vision 2030. As Saudi Arabia strengthens its regulatory and economic frameworks, the surge in merger approvals reflects a strategic ambition to become a key regional platform for trade, finance, technology, and industrial activity.
The regulatory architecture supporting these outcomes includes clear criteria for horizontal, vertical, and cluster relationships, which allows for precise evaluation of how a proposed concentration might affect competition in related markets. The majority of concentration reviews in 2024 examined horizontal relationships, with 53% of cases falling into this category, indicating a focus on activity within the same sector and often within similar product or service lines. Vertical relationships accounted for 16%, representing supply chain integrations that could influence upstream suppliers and downstream distributors. Cluster relationships, at 31%, involve broader interconnections across related sectors, reflecting an awareness of how cross-sector linkages can influence competitive dynamics. This nuanced framework enables more sophisticated analysis of market power, antitrust concerns, and potential anticompetitive effects, ensuring that approvals are grounded in rigorous, evidence-based assessments.
The interplay between the Kingdom’s regulatory advances and its economic ambitions has broader implications for the invested and business communities. For multinational corporations, the Saudi market offers opportunities to scale operations, access regional markets, and participate in a rapidly modernizing economy. For local entrepreneurs and smaller firms, the regulatory environment continues to evolve in ways that can promote competition, reduce barriers to entry, and foster an ecosystem where innovative firms can grow and compete effectively. The combination of record approvals, increased scrutiny of concentration activities, and a clear emphasis on protecting competitive outcomes is designed to create long-term investor confidence and stimulate sustainable development across industries. In this sense, the 2024 M&A approvals are a hallmark of a broader transformation—one that integrates competition policy with economic diversification, digital modernization, and strategic sector development under Vision 2030.
Market Confidence, Investment Implications, and Consumer Benefits
The surge in M&A approvals has meaningful implications for market confidence, investment decisions, and consumer welfare. A robust competition regime helps ensure that consolidation does not erase competition or reduce consumer choice, while enabling firms to achieve efficiencies, scale, and innovation that translate into better products and services. For investors, a transparent and predictable regulatory process reduces uncertainty around major corporate actions, allowing for more accurate valuation, financing strategies, and risk management. The record activity level signals a responsive and proactive regulatory environment that actively monitors market dynamics, assesses potential anticompetitive effects, and facilitates deals that strengthen competitive balance in the Saudi economy. The alignment with Vision 2030’s emphasis on a thriving, diversified economy reinforces the attractiveness of the Kingdom as a long-term investment destination.
The focus on accelerating competition-enhancing outcomes also supports sustainable development goals by encouraging efficient resource use and promoting market-driven improvements in product quality, pricing, and service delivery. Consumers stand to benefit from enhanced competition, which typically translates into more choices, improved service levels, greater innovation, and more favorable pricing dynamics. For businesses, a competitive market fosters healthier growth trajectories, reduces the risk of entrenched monopolies, and supports the diversification of revenue streams across a broader range of sectors. The regulatory posture demonstrated by the GAC—combining rigorous assessment with an openness to beneficial foreign participation—helps to create a balanced environment where both domestic firms and international players can collaborate and compete on fair terms.
Looking ahead, the Saudi M&A landscape is poised to maintain a trajectory of sustained activity as Vision 2030 continues to drive reforms, investment, and sectoral development. The combination of strong manufacturing growth, technological acceleration in ICT, and strategic expansion in distribution networks suggests that the Kingdom’s economy could experience further consolidation opportunities that yield efficiency gains and market improvements. The GAC’s continued vigilance, transparent methodologies, and clear governance mechanisms will be essential in ensuring that future concentration decisions continue to promote competitive outcomes. As the regulatory framework matures and market participants adapt to evolving standards, Saudi Arabia’s role as a regional business hub is likely to strengthen, attracting more international capital, fostering innovation, and supporting high-impact projects that contribute to long-term prosperity for the country and its trading partners.
Conclusion
Saudi Arabia’s record M&A approvals in 2024 reflect a deliberate and coordinated effort to strengthen competition, attract investment, and support a diversified, sustainable economy aligned with Vision 2030. With 202 economic concentration approvals—the most in the General Authority for Competition’s history—and 10 more under review, the Kingdom demonstrated a strong regulatory stance aimed at ensuring that consolidations do not undermine market integrity. The dominance of acquisition deals, the sectoral concentration in manufacturing, ICT, and wholesale/retail, and the notable involvement of foreign firms in key sectors together illustrate a dynamic, evolving market landscape. The emergence of activity in emerging sectors, the sustained leadership in chemicals, and strategic automotive developments underscore Saudi Arabia’s growing impact as a regional hub for business and investment. The regulatory framework’s emphasis on horizontal, vertical, and cluster relationship analyses shows a mature, nuanced approach to safeguarding competition while facilitating investment and growth. Overall, the surge in merger approvals signals not only regulatory strength but also a broader strategic shift toward a more competitive, innovative, and resilient Saudi economy positioned for long-term success.