Saudi Arabia Investment Banking Market Size and Forecast by Service Type, Client Type, Deal Size, Ownership Model, and Delivery Channel: 2019-2033

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Capitalising on Mega-Projects and PPP Advisory to Drive Saudi Arabia Investment Banking Growth

Saudi Arabia investment banking industry is poised for meaningful expansion as the country’s diversification drive gains momentum. The market outlook is underpinned by a pipeline of mega-project financing requirements, sovereign asset privatisations, and growing public-private partnership (PPP) frameworks. Investment banks are increasingly active in structuring capital-markets offerings that support the Kingdom’s transition from oil-dependence to a more diversified economy. These offerings include dual-listing strategies, institutional bond placements, and advisory mandates for SOE spin-offs.

Moreover, the Kingdom’s regulatory reforms, led by the (CMA) and supported by the sovereign fund (PIF), are creating a more open and dynamic capital-markets landscape. These measures facilitate foreign participation, deepen local equity markets, and enhance the role of investment banks as key intermediaries. In this environment, firms that align their advisory capabilities with energy transition, infrastructure PPP deals and cross-border institutional capital raising will be best positioned to capture the growth trajectory of Saudi Arabia investment banking market.

Drivers & Restraints: Key Forces Shaping Saudi Arabia investment banking landscape

Energy and Mega-Project Financing as Principal Growth Drivers

The Kingdom investment banking sector is propelled by a strong nexus between energy-sector financing and mega-project advisory. With a vibrant pipeline of projects, ranging from renewables to new city developments, corporate financing demands are substantial. Investment banks are servicing large-scale financing programmes for state-owned enterprises, structuring debt capital market issuances and underwriting large privatization transactions. These drivers are amplified by record levels of corporate and sovereign debt issuance, advancing credit growth and project pipeline activity within Saudi Arabia’s banking system.

Regulatory and Political Constraints as Growth Limiters

Despite the strong growth momentum, Saudi Arabia investment banking market faces notable constraints. Regulatory complexity, ownership restrictions and evolving foreign-investment rules can slow transaction execution. Political and geopolitical events also introduce risk and may affect investor sentiment. Moreover, dependence on global commodity prices and the need for continued fiscal discipline put pressure on large-scale infrastructure financing. Investment banks must therefore manage these headwinds by strengthening local expertise, enhancing compliance frameworks and building advisory capability across sectors beyond just oil and infrastructure.

Trends & Opportunities: Infrastructure and Privatization Advisory, Cross-Border Corporate Transactions

Infrastructure and Privatization Advisory Accelerating Deal Activity

One of the defining trends in Saudi Arabia investment banking ecosystem is the acceleration of infrastructure and privatization-linked advisory services. Investment banks are playing an increasingly central role in structuring privatisations of national assets, advising on PPP frameworks, and orchestrating large equity capital market events tied to state-backed initiatives. This trend has elevated investment banking fees and improved deal multiplicity, enabling firms to deepen sectoral specialization and advisory capabilities tailored to the Kingdom’s economic ambitions.

Energy and PPP Advisory Offering Strategic Opportunities for Investment Banks

Another key opportunity lies in advisory services for energy transition projects and PPP arrangements. As Saudi Arabia pursues net-zero ambitions and significant infrastructure upgrade programmes, investment banks are engaged in financing, structuring and advisory mandates spanning renewables, hydrogen, transportation and logistics. The cross-border dimension is also growing as regional capital integrates with global institutional investors. Investment banks capable of delivering integrated advisory, covering ECM, DCM and merger and acquisition, will be well placed to participate in this evolving market.

Competitive Landscape: Infrastructure-Specialist Advisory Teams and Global Partnering Define Market Leaders

The competitive landscape within Saudi Arabia investment banking market is evolving rapidly. Both domestic institutions such as and global players are establishing dedicated infrastructure and privatization advisory teams. Firms are shifting strategy to emphasise cross-border advisory, sectoral expertise and digital deal platforms. Recent announcements include multi-billion-dollar platforms backed by PIF in partnership with global asset managers, signalling the increasing integration of local and international advisory networks. Investment banks with strong local presence, combined with global execution capabilities, are emerging as leaders in Saudi Arabia’s changing investment banking industry.