TLDR:
- Saudi Arabia achieved the highest amount of venture capital (VC) funding in the Middle East and North Africa (MENA) region in 2023, capturing 52% of total capital deployed in the region.
- The funding deployed into Saudi Arabian startups grew by 33% in 2023 compared to the previous year.
- This achievement reflects the development of the Saudi economy and the attractiveness of its market, supported by initiatives launched under Saudi Vision 2030.
- Saudi Venture Capital (SVC), an investment company established in 2018, played a significant role in the development of the VC ecosystem and its success in attracting funding.
Saudi Arabia is the top country in MENA for venture capital investment in 2023
Saudi Arabia has achieved a historic milestone by becoming the top country in the MENA region for venture capital (VC) investment in 2023. According to MAGNiTT, a MENA-based venture data platform, Saudi Arabia captured the highest share of total VC funding in the region, accounting for 52% of the total capital deployed. This marks a significant increase from the previous year, where Saudi Arabia accounted for 31% of VC funding in MENA.
This achievement reflects the significant development that the Kingdom is witnessing in various economic and financial sectors, driven by the objectives of Saudi Vision 2030 to strengthen the national economy. The funding deployed into Saudi Arabian startups also grew by 33% in 2023 compared to the previous year.
Dr. Nabeel Koshak, CEO and Board Member at Saudi Venture Capital (SVC), commented on this achievement and highlighted the role of government initiatives in stimulating the VC and startups ecosystem in the Kingdom. He also emphasized the contribution of private sector investors and innovative entrepreneurs in driving the growth of the VC ecosystem.
SVC, a subsidiary of the SME Bank, has played a significant role in the development of the VC ecosystem in Saudi Arabia. In 2018, Saudi Arabia was ranked fourth in the region in terms of VC funding, but with the efforts of SVC, it has now become the top country in the region. The funding deployed into Saudi Arabian startups has grown 21 times since the launch of SVC in 2018.
SVC aims to stimulate and sustain financing for startups and SMEs through investment in funds and co-investment in startups and SMEs. Its success in attracting funding reflects the growing attractiveness of the Saudi market and its position as the largest economy in the MENA region and a global leader as a G20 country.
This achievement further supports the goals of Saudi Vision 2030, which aims to diversify the national economy and achieve sustainable economic growth.
