Private Equity in Saudi Arabia

Anees Ahmed Moumina, CEO of SEDCO Holding talks about private equity in Saudi Arabia.

He says, “The local private equity market is not a diversified one. So, the opportunities to invest in Saudi Arabia, in Riyadh in private equity is not very well developed. You don’t have a lot of financial institutions that develop this. There are other investment mechanisms that are being used such as public equity, but not private equity. Things like direct investments, where you have mergers and acquisitions.  So, the concept of private equity is new in Saudi Arabia, not mature yet, but it is developing.

This is from the investor’s point of view, but the other issue is from the point of view of supply. Say, someone has a company and he wants to establish his company in the market. These are looking at directly converting from a full ownership company to a publicly-held company. Not at a private placement or at private equity. That element is not present. But I think by creating more awareness among the investors and sellers, private equity will develop more.”

Full Interview: Increasing Investments in Saudi Arabia