Kingdom’s capital charting the dynamic future of private equity

Purpose This study aims to examine the drivers of private equity (PE) investment in Saudi Arabia, focusing on economic stability, governance practices and cultural dynamics, framed within Vision 2030. Design/methodology/approach A survey methodology was adopted, gathering data from 213 PE investors and firms in Saudi Arabia. Multiple regression analysis assessed how variables like market fundamentals, governance transparency and cultural perceptions influence PE investment outcomes. Findings Results indicate a strong positive correlation between stable market fundamentals and PE growth in Saudi Arabia. Economic stability fosters investor confidence, while governance and transparency practices reduce perceived risks, supporting investment success. Cultural dynamics, particularly regarding foreign labor integration, present challenges that influence PE performance. Research limitations/implications Future research should examine the evolving PE landscape in Saudi Arabia as Vision 2030 progresses and regulatory frameworks mature. Practical implications This study provides valuable insights for investors and policymakers on aligning PE strategies with Saudi Arabia’s socio-economic environment, optimizing sustainable investment opportunities. Social implications By fostering informed PE investments aligned with Vision 2030, this research promotes social development through economic diversification, job creation and improved market resilience. Originality/value This study extends institutional theory by exploring how local economic policies and cultural norms shape PE investments in an emerging market. Findings reveal the complex interaction of regulatory, cultural and market factors influencing PE strategies in Saudi Arabia.