Mergers and acquisitions drive Saudi growth, competitiveness

In the industrial sector, Saudi Aramco completed its $69.1 billion acquisition of a 70 percent stake in SABIC from the Public Investment Fund. (File)Short Urlhttps://arab. news/9tmwr Updated Talat Zaki Hafiz September 6, 2026 Follow Amid considerable uncertainty over global economic growth, the prospect of higher interest rates and long-term government bond yields, and volatile energy prices, business activity worldwide has come under pressure. Trade disruptions resulting from higher customs duties, supply chain disruptions caused , and mounting challenges facing major international institutions have further compounded these pressures. These conditions underscore the need for resilient businesses that are not only financially strong but also supported . Against this backdrop, mergers and acquisitions have emerged as powerful drivers of growth, competitiveness and economic transformation. Yet their success depends on far more than agreeing on valuations and commercial terms. Regulatory complexity, cultural integration, corporate governance, due diligence, and the alignment of people and strategy can ultimately determine whether a transaction creates lasting value or falls short of its objectives. Global M&A activity strengthened significantly in 2025, with announced deal value reaching approximately SR17.3 trillion ($4.6 trillion), an increase of 49 percent from 2024 and the strongest annual performance since 2021. Saudi Arabia also recorded substantial transaction activity. The General Authority for Competition, which originated as the Competition Council in 2004, received 427 economic concentration applications valued at approximately SR2 trillion in 2025. It issued a record 269 no-objection decisions, up 33 percent from 2024. Several major transactions illustrate the growing role of M&A in Saudi Arabia’s economic transformation. In the financial sector, the 2021 merger of the National Commercial Bank and Samba Financial Group created Saudi National Bank, combining two leading institutions to achieve greater scale, operational efficiency and competitiveness. In the industrial sector, Saudi Aramco completed its $69.1 billion acquisition of a 70 percent stake in SABIC from the Public Investment Fund. Together, these transactions demonstrate how M&A can help consolidate industries, achieve economies of scale, integrate supply chains, develop strategic capabilities and support the Kingdom’s economic diversification objectives. Against this backdrop, the Riyadh Chamber organized the “Legal Aspects of Corporate Mergers and Acquisitions and Investment Opportunities Forum” on Aug. 31, bringing together representatives from public- and private-sector entities. The forum provided a valuable platform for regulators, investors, business leaders, legal advisers, compliance officers, board members, governance professionals and SMEs to exchange perspectives, enhance regulatory awareness and explore ways to reduce transaction risks and support sustainable corporate growth in line with Saudi Vision 2030. I had the privilege of moderating the forum’s third session, titled “The Regulatory and Supervisory Framework for Mergers and Acquisitions in the Kingdom.” The session examined the role of regulatory authorities in reviewing M&A transactions and promoting competition, the regulatory framework governing transactions involving listed companies, and the support provided .