Growth of mergers and acquisitions (M&As) will continue in Saudi Arabia this year on the back of a 30 percent growth from 2020 to 2021, according to foreign direct investment advisors, Sovereign AEI.

A new report by the partnership said there had been significant inbound activity in the kingdom’s green energy sector, as well as manufacturing and technology, with the kingdom becoming one of the most attractive markets for companies looking to expand through M&A.

Meanwhile, outbound investment had been fuelled by the need to attract foreign skills and expertise, the report said.

The report attributed the rise in M&As to the country’s accelerated growth, which was 6.8 percent in the third quarter of 2021, to the rise in crude oil prices, Vision 2030 targets, the government’s focus on improving the private sector and progress in combating the COVID-19 pandemic.

“This has strategically positioned Saudi Arabia for continued mergers and acquisitions growth in 2022,” the report said.

Paul Arnold, managing director of Sovereign Saudi Arabia said: “Saudi Arabia is probably the Middle East’s most active M&A market.

“Although this acceleration in M&A activity is widespread, we have seen notable increases in healthcare, education, logistics, manufacturing, infrastructure, and entertainment.

Additionally, we have seen significant investment in ESG and green energy, as well as technology, particularly in niche industries such as healthtech, edutech, and fintech.”

(Reporting by Imogen Lillywhite; editing by Daniel Luiz)

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