Saudi Arabia is quietly emerging as one of the most important private market players on the global stage – and family businesses are at the heart of the story.
While the spotlight often falls on sovereign wealth funds and mega-projects, it is the Kingdom’s multi-generational family conglomerates that power the bulk of its private sector. These firms account for more than 95% of private enterprises, contribute over 60% of non-oil GDP, and employ millions. Long known for their domestic focus, many are now stepping into the role of institutional investors, global partners, and long-term stewards of capital.
From local operators to global investors
A generational shift is underway. Where earlier generations concentrated on local expansion and tight family ownership, today’s successors are pursuing international co-investments, cross-border partnerships, and professionalised governance. Many have set up formal family offices, created investment theses, and institutionalised decision-making. For global investors, this represents an attractive pool of patient, private capital eager to collaborate.
An intentional transformation
This shift isn’t happening by accident. Vision 2030 reforms have overhauled business laws, streamlined licensing, and created frameworks for succession and governance. Initiatives such as Shareek and the National Center for Family Business actively encourage family groups to scale, professionalise, and seek global exposure.
Saudi’s diplomatic and economic posture has changed too: it is no longer only inviting foreign investors in but also co-investing abroad. The $2.6 billion investment by Manara Minerals (a PIF–Ma’aden joint venture) in Brazil’s Vale Base Metals is a case in point – signalling Saudi’s commitment to securing critical resources and building strategic alliances.
A collaborative model, not a transactional one
This is where Saudi differs from hubs like Singapore or Dubai. Its family business ecosystem remains early in its global journey, relatively under-allocated to international assets, and is looking for aligned, long-term partners rather than opportunistic deals. This is a “co-creation economy” – investors who bring strategic value, cultural understanding, and a commitment to building enduring businesses are welcomed.
Key takeaways for investors
For private equity funds, founders, or multi-family offices eyeing the Gulf, Saudi Arabia offers:
- A multi-trillion-dollar intergenerational wealth transfer already in motion
- Strong government support for family business governance and expansion
- A private sector where family groups drive growth, employment, and capital deployment
- A capital base that prizes trust, aligned incentives, and shared outcomes
Saudi Arabia is not a market for short-term, extractive capital. It is a place where institutional investors and family enterprises can build enduring value – both inside and beyond the Kingdom.
