Saudi Arabia Emerges as Leading Venture Capital Hub in Emerging Markets
The Kingdom accounted for 58 percent of all venture funding in the Middle East and North Africa region during this period, with 41 percent of the total transactions. This performance reflects a significant shift in investor confidence, driven by a combination of strategic government initiatives, active sovereign wealth fund participation, and a focus on early-stage investments.
Notably, there was an 87 percent year-on-year increase in non-mega deal funding and a 437 percent rise in Series A and B rounds. Key transactions included $28 million raises by Ula.me and Merit Incentives, indicating robust support for startups at critical growth stages.
The broader MENA region also experienced a resurgence in venture capital activity, with total funding reaching $678 million in the first quarter—a 58 percent increase compared to the same period last year. This growth occurred despite a 21 percent decline in the number of deals, which totaled 133 transactions. The uptick is attributed to improved investor sentiment following interest rate cuts across the Gulf in late 2024, as well as sustained activity from sovereign funds and flagship ecosystem initiatives like LEAP 2025.
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