Saudi VC Market Surges Past 2024 Total in Six Months

Arabian Post

a day ago

Saudi Arabia has attracted SR3.2 billion in venture capital funding for startups during the first half of 2025, overtaking the Kingdom's total VC investment for the whole of 2024. MAGNiTT data show Saudi accounted for 56 per cent of all VC inflows into the Middle East and North Africa region in that period.
Investor confidence in the Kingdom is heightened by its alignment with Vision 2030 reforms and concerted government backing. The 114 venture capital deals completed in H1 represent a record for Saudi Arabia, underscoring robust market momentum.
This performance marks a 116 per cent annual increase in dollars invested compared with H1 of 2024, and a 31 per cent jump in the total number of deals year‑on‑year. The Kingdom's dominance is even more pronounced considering the UAE, its closest competitor, secured only $447 million across an identical number of transactions.
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Fintech continues to lead the investment wave, with payment and lending platforms drawing substantial capital. Yet new segments such as enterprise software and edtech are emerging rapidly, supported by local VC funds and international investors chasing mid-stage opportunities.
A premium MAGNiTT report highlighted that Saudi Arabia surpassed both the UAE and Singapore during the first quarter. Early- and growth-stage funding increased significantly, buoyed by local investors and sovereign capital rolling out fresh programmes and accelerators.
The government's role is clearly evident. Public investment vehicles such as Saudi Venture Capital Company continue to provide foundational support. SVC's CEO, Dr Nabeel Koshak, emphasised this intervention: 'The Kingdom's leading position…comes as a result of many governmental initiatives…launched to stimulate the VC and startups ecosystem within the Saudi Vision 2030 programmes. We at SVC are committed to continuing to lead the development of the ecosystem'.
Sovereign-led schemes including LEAP and a series of early-stage programmes funded by the state have helped attract both domestic and overseas capital. MAGNiTT noted the interplay between public-sector drive and private-sector participation as a key factor behind the surge.
Growth-stage rounds are now dominating the landscape. Local funds have broadened their spectrum, actively backing Series A and B startups. International investors are following suit, particularly in fintech and enterprise solutions tailored to market-specific needs.
Comparatively, Singapore led emerging markets with $1.28 billion across 120 deals in H1, yet its funding volume fell by 37 per cent year‑on‑year and deal numbers declined 31 per cent. This contrast points to Saudi's sustained upward trajectory amid weakening growth elsewhere.
Other emerging markets in the MENA and adjacent regions lagged behind: Türkiye raised $226 million, Vietnam $216 million, Egypt $185 million, among others.