SuperReturn Saudi Arabia 2025: A window into Saudi Arabia’s investment ambitions

  • Saudi family offices playing pivotal roles in transforming private markets
  • Govt has commitment to regulatory transparency, co-investment opportunities

A panel on govt policies & how economic reforms in Saudi Arabia support the development of a thriving private capital ecosystem.

Riyadh was abuzz with energy as the inaugural SuperReturn Saudi Arabia conference unfolded at the Fairmont Hotel from January 27–28, 2025. This flagship private capital event brought together executives in private equity, venture capital, and family offices for two days of in-depth discussions, impactful networking, and strategic collaborations.

Kicked-off by Abdulmuhsen Alkhalaf (pic, below), the Saudi vice minister of finance, who emphasised that the contribution of private investment to Saudi’s GDP had increased from 14.6% in 2016 to 23.4% in Q3 of 2024. This reflects a competitive and dynamic environment which fosters investment across vital and promising sectors in the country.

His opening remarks were followed by succinct speeches — akin to five-minute elevator pitches — setting the tone for the  panels that followed. Attendees ranged from General Partners (GPs) and Limited Partners (LPs) to family office executives and venture capitalists, all exploring opportunities within Saudi Arabia and the broader MENA (Middle East North Africa) region.

Saudi’s aspirations and dreams are encapsulated in its Vision 2030 plan and progress has been rapid since the plan’s introduction with non-oil activities accounting for 52% of GDP in 2024 versus 4.9% (in 2015) before the plan was introduced. Its talent pool has been unleashed with women’s workforce participation surpassing expectations at 36%. It was below 10% before Vision 2030, as women were disallowed to drive (before September 2017) and work (before 2008 without seeking a guardian’s permission)! SMEs have also doubled since 2016, with 45% owned by Saudis, underscoring a vibrant entrepreneurial ecosystem.

Abdulmuhsen Alkhalaf (pic, below), the Saudi vice minister of finance who opened the 2-day conference.

 

Key themes and takeaways

The “People Business” of investment: Investors emphasized the long-term, large-scale commitment required to develop the Kingdom’s economy. Co-investment and partnership alignment emerged as essential elements for success.

Challenges in private markets: Valuation, fee structures, and performance consistency were recurring themes, with calls for discipline and clear performance tracking to build investor confidence.

Tech, AI, and startups: The deployment of AI in Saudi Arabia remains nascent at 2.5%, creating significant opportunities for VC investments. Panelists stressed the need for foreign talent and localized innovation to drive growth in technology and startups.

Family offices as game-changers: Panels featuring senior executives like Fares Al Balwi,  Chairman of Saudi based Al Blagha Holding Company for Investment, and Raied Alseif, CEO of Saudi based Sultan Holding Company, who shed light on Saudi family offices’ pivotal roles in transforming private markets, focusing on long-term strategies, global co-investments, and concentrated quality investments.

 

Opportunities in technology

Technology and AI were focal points, with almost every panel emphasizing the potential for growth. While an estimated 40% of VC deployment globally is in AI related startups, only 2.5% occurs in Saudi Arabia. Soumaya Ben Beya Dridje, Partner at Rasmal Ventures, the first VC firm established in Doha, Qatar, stressed the need for resilience. “Investments are not for the faint-hearted. GPs must be passionate, patient, and committed to adding real value.”

Startups and gaming also took center stage. Abdullah Altamami, founder & CEO of Merak Capital, a Saudi-based VC, highlighted the Kingdom’s cultural alignment with gaming. “With 50 game studios and a young, tech-savvy population, Saudi Arabia is perfectly positioned to create and export local IPs globally.”

Ibrahim Sagna, Executive Chairman of Silverback Holdings, a Mauritius-based private investments firm, echoed this sentiment. “Startups are emerging as local champions, scaling to the UAE, India, and beyond. Saudi Arabia has the infrastructure and talent to do the same and more.”

 

Family Offices: Driving private market transformation

A heavyweight panel featuring Fares Al Balwi and Raied Alseif explored how family offices are revolutionizing private markets with Raied urging attendees to embrace co-investments: “Partnerships, whether local or global, thrive on trust and alignment. A long-term view is key to success.”

Hamdi Al Zaim, Managing Partner of Saudi based Alma Limited, shared how his holding company that manages an international as well as a local portfolio of investments, has changed its investing strategy. “Concentration in quality is better than quantity,” he said. “We’ve shifted from making 6–8 deals annually to focusing on 3–4 high-quality investments. This ensures sustainable returns.”

The two-day event concluded each day with rich cultural showcases, including traditional Saudi coffee, sweet dates, and live performances, providing an authentic glimpse into Saudi Arabia’s heritage. These informal settings facilitated further discussions, turning business connections into meaningful relationships.

SuperReturn Saudi Arabia 2025 showcased Saudi Arabia’s pivotal role in shaping private capital dynamics in the MENA region and beyond.

From regulatory milestones to burgeoning sectors like gaming, AI and fintech, Saudi Arabia is rapidly becoming the epicenter of transformative investments, a vibrant and sustainable investment landscape with SuperReturn providing a platform to catalyze this evolution.

SaudiReturn 2025: A panel on 'How will family offices transform private markets.'

Final Reflections: A global perspective on Saudi Arabia’s ambitions

As the curtains closed on SuperReturn Saudi Arabia 2025, participants reflected on the insights gained and the broader implications for global markets. A senior executive from a leading investment firm shared that, “Saudi Arabia’s private capital ecosystem is maturing rapidly. The Kingdom has successfully created an environment where competition is welcomed from international investors, to funnel deals and co-invest with family offices and venture capitalists. Those who have been in the Kingdom for the past 20 years, building relationships, connections and trust, see real real long-term potential.” 

Strong government support has also made a difference, he added, “The commitment to regulatory transparency, co-investment opportunities, and emerging sectors like circular renewable energy, AI, manufacturing and gaming makes it an attractive destination.”

Looking beyond the Kingdom, the event also sparked discussions on what other nations, including Malaysia, could learn from Saudi Arabia’s transformation. “Malaysia can take inspiration from Saudi Arabia’s approach to investment reform as Malaysia requires more private equity firms. By aligning policies with long-term investments — such as food security, desalination, hydrogen economy, healthtech, and gaming — Malaysia can attract Saudi’s family offices and scale its own startups to regional, MENA and international markets,” a Norwegian consultant shared.

SuperReturn Saudi Arabia 2025 was more than just a conference; it was a gathering of top global PE firms where GPs meet LPs to connect, learn best practises across the Kingdom and connect with local Saudi pension fund managers and CIOs (Chief Investment Officers) from the richest Saudi Family Offices. Countries looking to evolve their private markets and position themselves as future investment hubs could do well to learn from the Kingdom.


Muhammad Adrian Wong is a Contributing Editor at DNA.

 


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