Saudi Arabia’s investment market is moving toward greater institutional maturity as its regulatory environment and infrastructure develop, while international investor interest continues to grow, according to comments by Mohannad Qabaj, co-founder of Olive Rock Partners.
Speaking on the Argaam OnPoint podcast, Qabaj said describing Saudi Arabia simply as an emerging market no longer fully reflects the progress made in its investment ecosystem. He pointed to stronger regulation, more developed infrastructure and improved institutional practices.
As local companies move from growth into expansion, investors are placing greater focus on management depth, governance, execution and the ability to manage cash flow and working capital. Qabaj said trust is also central to deals in Saudi Arabia and the wider GCC, particularly when investing in founder-led companies.
The market continues to face challenges around company valuations, especially when founders and buyers hold different expectations. Investment assessments increasingly extend beyond current performance to include leadership, governance, execution capacity and capital needs.
Qabaj also highlighted the importance of broader exit options for private equity investors, including public listings and other routes that can turn investments into realised returns. He said stronger exit opportunities, rising international capital and continued institutional development could support the next stage of Saudi Arabia’s private equity market.
Source: Jawlah
