“Saudi Competition”: 81% of economic concentration requests in the third quarter were foreign companies

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The General Authority for Competition in Saudi Arabia issued a statistics report on economic concentration requests for the third quarter of 2026, in which it indicated that the value of concentration deals exceeded $255 billion (960 billion riyals), and the total requests increased by 7% compared to the third quarter of last year.

Director of the Mergers and Acquisitions Department at the General Authority for Competition, Talal Al-Hogail, said that foreign companies accounted for 81% of the economic concentration applications that were approved during the third quarter.

Al-Hogail explained, in an interview with Al Arabiya Business, that American companies topped foreign orders with a share of 27%, followed by German companies with about 10%, then British companies with 5.5%.

He pointed out that this activity reflects the interest of foreign companies in the Saudi market, whether through acquiring shares in existing companies or by entering into partnerships and joint projects with Saudi investors.

According to the authority’s report, about 57% of economic concentration requests were between companies that had a horizontal relationship and operated in the same activity.

Al-Hogail said that this type of deal usually raises initial concerns related to competition, given the possibility of an increase in the market shares of companies resulting from a merger or acquisition, and the resulting effects that may include raising prices or reducing the options available to consumers.

He added that these cases appear frequently in sectors such as insurance, banking, infrastructure and communications, where companies seek to expand their market shares through mergers or acquisitions within the same activity.

He stressed that the Authority is subjecting these operations to a careful study to evaluate their potential effects on competition.

In response to questions about the high share of foreign companies despite geopolitical challenges, Al-Hogail explained that classifying the request as foreign does not necessarily mean that the company does not have activity within the Kingdom.

He pointed out that many foreign companies already have existing businesses and investments in the Saudi market and are seeking to expand their presence through economic concentration operations.

He added that the companies listed in the Saudi market represented only about 8% of the total orders during the third quarter, the most notable of which was the Aramco acquisition of 51% of the “Humain” company, pointing out that there was some relative slowdown in the activity of local companies compared to foreign companies.

He stressed that foreign investors still see attractive investment opportunities in the Saudi market despite the regional and global challenges.

Regarding the average duration of studying economic concentration applications, Al-Hogail explained that the average duration of processing completed applications does not exceed 4 to 5 working days after completing all requirements.

He stressed that this speed does not come at the expense of the quality of the evaluation or audit, pointing out that the Authority begins studying the deals and following up on their details from the early stages and even before completing some official procedures.

He added that the period announced by the Authority begins after the required documents are completed and the financial fee is paid, while the actual period from submitting the application until the issuance of the decision may extend to a longer period (15 to 21 days) depending on the readiness of the file.

Al-Hogail pointed out that the industrial, information technology and infrastructure sectors were among the most active sectors during the second and third quarters of the year.

He explained that the manufacturing sector accounted for about 36% of sectoral economic concentration requests, which reflects the increasing mobility within the sector.

He added that the activity included many industries linked to supply chains, such as cement, glass, and iron, as some companies tended to acquire companies complementary to their activities to enhance operational integration.

He also pointed out that there is significant activity in the restaurant and food sector, especially among small and medium-sized companies.

Al-Hogail stressed that the increase in acquisitions and mergers in the industrial sector does not mean a decline in new investments or the establishment of new factories.

He explained that the facilities provided by the Ministry of Industry contributed to attracting new industrial investments, in addition to acquisitions aimed at entering new markets, developing new products, or strengthening supply chains.

He pointed out that the industrial sector is one of the vital sectors that support the goals of Saudi Vision 2030, which makes it one of the most attractive sectors for investments during the current stage.