In today’s increasingly competitive global market, Saudi Arabia stands out as a dynamic hub of investment and strategic deals. With the Kingdom pushing forward its Vision 2030 economic diversification plan, the volume and value of transactions across sectors such as technology, industrial, and financial services have surged significantly. A striking trend in this thriving environment is that approximately seventy percent of successful Saudi deals begin with robust due diligence consulting. This article examines the rationale behind this figure, explores the latest 2025 quantitative data, and explains why expert due diligence consulting is indispensable for investors and companies operating in the Kingdom of Saudi Arabia.
The Business Landscape in Saudi Arabia in 2025
Saudi Arabia’s dealmaking environment has evolved substantially over the past few years. According to mid‑year 2025 reports, the Kingdom recorded fifty nine merger and acquisition transactions in the first half of the year, demonstrating strong activity despite global economic uncertainties. These deals span industrial sectors, technology, media, and telecommunications, reflecting the broader pivot toward diversification beyond the traditional oil and gas base. Non‑oil GDP growth in Saudi Arabia is projected at 3 point four percent in 2025, with inflation remaining stable and fiscal buffers intact to support further investment activity. In addition, corporate confidence in the Saudi market remains high, with over seventy seven percent of Saudi executives projecting economic growth over the next 12 months.
Across the broader MENA region during 2025, merger and acquisition activity continues to expand. In the first nine months alone, six hundred forty nine deals valued at over sixty nine point one billion US dollars were recorded, with the GCC accounting for the majority of transactions. Saudi Arabia, together with regional partners such as the UAE, plays a central role in driving this momentum as cross‑border and domestic deals grow in both frequency and scale.
In this bustling context, due diligence consulting emerges as a cornerstone of deal success. Whether cross‑border acquisitions, private equity investments, or complex strategic alliances, strong pre‑transaction analysis consistently correlates with positive outcomes.
The Strategic Importance of Due Diligence Consulting
Due diligence consulting refers to the comprehensive assessment conducted prior to completing a transaction. This process includes financial analysis, legal and regulatory review, operational audits, market evaluation, and risk assessment. In Saudi deals, the depth and quality of these analyses often determine whether a transaction achieves its intended strategic goals.
There are several reasons why strong due diligence consulting precedes approximately seventy percent of successful Saudi deals:
1. Regulatory and Compliance Complexity
The Saudi regulatory environment, while increasingly business‑friendly, has unique legal and compliance requirements. Foreign investors may face intricate licensing processes, Saudization employment rules, tax regulations, and sector‑specific guidelines that vary from those in their home jurisdictions. Identifying these requirements early through systematic due diligence consulting helps dealmakers avoid costly compliance missteps, unexpected liabilities, or regulatory delays that could jeopardize transaction value.
2. Market and Commercial Risk Reduction
Comprehensive due diligence provides a detailed picture of a target business’s market position, competitive landscape, revenue sustainability, and growth potential. For example, Saudi companies in tech or industrial sectors may show impressive topline figures, but underlying contract arrangements or customer concentration issues could pose risk. Professional consultants deploy analytical frameworks that quantify these commercial risks, enabling more accurate valuation and negotiation strategies.
Third‑party consulting teams often bring deep sectoral knowledge that complements internal expertise. In a complex deal, multidisciplinary due diligence consulting teams often include financial analysts, legal experts, and industry specialists who collaborate to assess every component of a potential transaction. This structured approach significantly reduces the likelihood of post‑transaction surprises that could affect projected returns or operational integration.
3. Enhancing Negotiation Confidence
Deals that are backed by solid due diligence consulting often proceed more smoothly and quickly. When buyers and sellers share a transparent understanding of financial metrics, liabilities, and growth drivers, negotiations become more efficient, and certainty of closing increases. In fact, rigorous due diligence often shortens negotiation timelines and improves the quality of contractual terms impacting price adjustments, indemnities, and warranties.
In the Saudi context, where deals frequently involve local partners, government‑related entities, and sovereign wealth funds, accurate diligence insights ensure that all parties align their expectations and obligations before signing. This alignment is crucial when dealing with strategic national objectives such as Saudization targets, technology localization, and alignment with Vision 2030 priorities.
4. Protecting Post‑Deal Performance
A primary objective of any transaction is not merely to close the deal but to ensure post‑deal performance aligns with strategic goals. Effective due diligence consulting identifies potential obstacles to integration, whether they arise from legacy systems, regulatory constraints, or cultural differences. By addressing these issues at the planning stage, companies can implement post‑transaction integration strategies that preserve value and foster growth.
Post‑deal success also often hinges on identifying risks that could negatively impact cash flows. For example, contracts with government entities or key suppliers might contain clauses that activate under specific conditions, such as changes in local content requirements or employment composition. These nuances are crucial when projecting future performance and are typically uncovered through disciplined due diligence efforts.
Quantitative Impact of Due Diligence on Deal Outcomes
While the precise causal percentage may vary by study, industry practitioners commonly note that deals incorporating detailed due diligence consulting have significantly higher success rates. Internal analyses and industry reports suggest that disciplined diligence can reduce transaction risk by as much as forty percent compared to deals that skip or minimize this process. This reduction encompasses lower likelihood of regulatory penalties, fewer post‑closing adjustments, and higher realized synergies.
In Saudi Arabia’s private equity market in the first half of 2025, the Kingdom accounted for forty‑five percent of MENA’s total private equity activity, with average deal sizes trending toward the higher end of the scale. The shift toward larger transactions further underscores the need for meticulous risk assessment, as larger deals bring amplified exposure to legal, operational, and commercial uncertainties.
Integrating Due Diligence in 2025 and Beyond
Looking ahead to the remainder of 2025, the role of due diligence consulting in Saudi deals will remain critical. As the Kingdom’s non‑oil economy continues to attract both regional and global capital, the complexity of potential transactions will increase. Emerging sectors such as artificial intelligence, renewable energy, advanced manufacturing, and digital infrastructure will require specialized diligence frameworks that combine traditional analysis with advanced analytics and sector‑specific expertise.
For investors and corporate strategists exploring the Saudi market, partnering with experienced due diligence consulting firms is no longer optional it is fundamental to achieving strategic objectives. Whether a multinational acquiring a Saudi tech startup or a local conglomerate entering a joint venture with a global partner, the quality of early diligence work frequently determines long‑term success.
The remarkable momentum of Saudi Arabia’s dealmaking environment in 2025 highlights both opportunity and complexity. With mergers and acquisitions and strategic investments expanding in value and volume, approximately seventy percent of successful transactions start with strong due diligence consulting. From regulatory compliance to commercial risk evaluation and negotiation efficiency, professional due diligence lays the foundation for informed decision‑making and durable outcomes.
Quantitative trends—such as increased deal activity, higher private equity participation, and growing foreign investor confidence reinforce why disciplined pre‑transaction analysis remains indispensable. As Saudi Arabia continues to diversify and deepen its economic ties globally, expert due diligence consulting will remain an essential partner in navigating the intricacies of every major deal in the Kingdom.
By embedding due diligence at the core of strategic decision‑making, organizations unlock the full potential of their investments while preserving value and accelerating integration in one of the world’s most dynamic markets.
Finance Advisory 