BlackRock’s Aladdin analysis of Preqin data counted 590 Middle East-based private-capital funds closed since 2015. Saudi Arabia accounted for 359 of those. The UAE followed with 143, and 88 were spread across other regional markets.
That 61% share positions the Kingdom as the region’s leading base for private-capital vehicles. The figures align with Saudi Arabia’s expanding investment pipeline and its deepening institutional ecosystem. Infrastructure, energy, utilities, transport and data centres all feature as priority sectors for private capital deployment.
Saudi Arabia Pulls Ahead on Fund Formations
The balance between domestic and overseas activity is shifting. BlackRock’s analysis of Preqin data through June 2026 estimated that Middle Eastern investors completed around 360 private-equity and venture-capital transactions overseas in 2025. By contrast, roughly 170 transactions took place within the region.
That gap still favours international deployment. However, the direction is clear. Domestic deal flow is rising. More capital is finding its way to companies aligned with Saudi development priorities, improving access to institutional funding for regional businesses in the process.
Sovereign wealth funds are central to this shift. Middle Eastern sovereign wealth funds allocate about 43% of their exposure to private capital, compared with 35% among peers elsewhere, according to BlackRock’s analysis.
What Does the Shift Mean for Investors?
The regional limited-partner base is also becoming more supportive. BlackRock reported that the share of Middle Eastern limited partners positive on or considering private-equity mandates rose from 70% in 2019 to 83% in 2026. That is a material shift in appetite over seven years.
Public Investment Fund activity illustrates the trend most clearly. The share of its direct private-equity transactions conducted inside the Middle East rose from about 25% in 2020 to just under 70% in 2025. That reorientation has real consequences for deal flow and exit options across the region.
PIF’s growing regional focus gives fund managers a deeper source of anchor capital. It also supports local deal origination. Exit routes within the region are expanding as a result. The trend aligns with a broader GCC investment push expected to reach about $2.1 trillion by 2030, covering infrastructure and other assets increasingly open to private capital — explored further in Gulf private capital targeting a $2.1 trillion domestic opportunity.
Competitive Pressures and the Road Ahead
Saudi Arabia’s leading share of regional private-capital fund formations positions it as a major link between sovereign wealth and private-market growth.
The expanding fund base creates both capital-raising and deployment opportunities for international managers. Those with established local networks stand to benefit as domestic mandates grow. However, competition for quality assets will remain intense.
Investors must weigh governance standards, exit liquidity, sector concentration and alignment with local development priorities. The next signal to watch is whether Saudi Arabia converts its fundraising lead into sustained domestic deal activity and stronger private-market exits.
Quick answers
According to BlackRock’s Aladdin analysis of Preqin data, 359 Middle East-based private-capital funds closed in Saudi Arabia since 2015, representing 61% of the regional total of 590 funds.
The Public Investment Fund increased the share of its direct private-equity transactions conducted inside the Middle East from about 25% in 2020 to just under 70% in 2025, according to BlackRock’s analysis.
Middle Eastern sovereign wealth funds allocate about 43% of their exposure to private capital, compared with 35% among sovereign wealth peers elsewhere, per BlackRock’s analysis of Preqin data.
