Saudi Arabia leads MENA venture capital with $860m in H1 2025, surpassing 2024 total
The 'H1 2025 MENA Venture Investment Report' from venture data platform MAGNiTT revealed that Saudi Arabia accounted for 56 per cent of total capital deployed across the MENA region, underscoring its pivotal role in shaping the region's startup and innovation economy.
The Kingdom also saw a record-breaking 114 VC deals during the first six months of the year, signalling robust investor confidence and continued momentum in startup activity.
Saudi VC funding
This milestone aligns closely with the goals of Saudi Vision 2030, which has positioned venture capital and entrepreneurship as key pillars for diversifying the Kingdom's economy and reducing dependency on oil.
Dr. Nabeel Koshak, CEO and Board Member at SVC, said: 'The Kingdom's leading position in the VC scene in the region comes as a result of many governmental initiatives launched to stimulate the VC and startups ecosystem within the Saudi Vision 2030 programs.
'We at SVC are committed to continuing to lead the development of the ecosystem by stimulating private investors to provide support for startups and SMEs to be capable of fast and high growth, leading to diversifying the national economy and achieving the goals of the Saudi Vision 2030.'
SVC, a subsidiary of the SME Bank under the National Development Fund (NDF), plays a central role in enabling early-stage and growth-stage companies by investing in funds and directly in startups, from pre-Seed to pre-IPO.
With Saudi Arabia now representing more than half of all VC funding in the region, the report confirms that the Kingdom's startup landscape is entering a new phase of maturity, fuelled by public-private partnerships, policy reform, and sustained investor appetite.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
a few seconds ago
- Zawya
Lebanon bans dealing with Hezbollah financial entity
BEIRUT: Lebanon's central bank has banned banks and brokerages from dealing with a Hezbollah-affiliated financial institution, according to a circular, a sign of the group's diminished sway over state affairs since its devastating war with Israel. Keeping up military pressure on the Iran-backed group, Israel on Tuesday launched some of its heaviest airstrikes since a ceasefire in November, saying it hit training camps and weapons depots in eastern Lebanon. A security source in Lebanon said 12 people were killed, five of them Hezbollah fighters. Hezbollah has faced mounting pressures since the war, including financial ones. In the circular, dated Monday and reviewed by Reuters, Banque du Liban prohibited all licensed financial institutions in Lebanon from dealing directly or indirectly with unlicensed entities and listed Hezbollah's Al-Qard Al-Hassan as an example. U.S. Special Envoy Thomas Barrack described the move in a post on X on Tuesday as a "step in the right direction." The ban follows a visit by the U.S. envoy to Beirut last week, where he received Lebanon's reply to a U.S. proposal on disarming Hezbollah. "Transparency and alignment of all financial intermediaries in Lebanon under the supervision of the Central Bank is a valued and necessary accomplishment," he said. The U.S. Department of the Treasury imposed sanctions on Al-Qard Al-Hassan in 2007, saying Hezbollah used it as a cover to manage "financial activities and gain access to the international financial system." Bolstered by its powerful arsenal, Hezbollah had long exercised decisive influence over Lebanese state affairs, but it was unable to impose its will in the formation of a post-war government in February. Al-Qard Al-Hassan, founded in 1983, describes itself as a charitable organisation that provides loans to people according to Islamic principles that forbid interest. Israel struck some of its branches during its war with Hezbollah last year. Operating as a not-for-profit organisation under a licence granted by the Lebanese government, it has more than 30 branches, mostly in predominantly Shi'ite Muslim areas of Beirut, southern Lebanon, and the Bekaa Valley. SHADOW ECONOMY A Lebanese official said the central bank move had been in the works for months, and reflected U.S. pressure on Lebanon to take action against Hezbollah's financial wing. Nassib Ghobril, chief economist at Byblos Bank, said Lebanese banks were already careful to avoid dealing with Al-Qard Al-Hassan because it is under U.S. sanctions. "The important point is that finally the authorities are addressing the shadow economy in Lebanon, which is the real problem," he said, adding that authorities had long failed to address its "toxic effects". In June, the European Commission included Lebanon in an updated list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism. Last year, global financial crime watchdog FATF placed Lebanon on its "grey list" of countries under special scrutiny. (Additional reporting by Maya Gebeily and Tom Perry in Beirut and Steven Scheer in Jerusalem; Writing by Nayera Abdallah and Tom Perry; Editing by Alison Williams, Gareth Jones, Rod Nickel)
Zawya
a few seconds ago
- Zawya
Oman: Newly formed tourism body targets job growth
MUSCAT - Increasing employment within the tourism industry in Oman is amongst the top goals of the newly established Oman Tourism Association. Speaking to the press, the Chairman of the first tourism association in Oman, Awadh Burham Ba Omar, highlighted that employment is one of the Association's primary goals, 'A key focus is on enhancing professionalism and increasing local employment rates within the sector,' he said. 'The local value generated by investment in the tourism sector is substantial, and the sector has the capacity to absorb large numbers of job seekers. It is a vital industry, and we hope to see strong partnerships between the association, investment institutions, professionals in the field, as well as the Ministry and other relevant government bodies,' he added. According to Ba Omar, the sector – while rich in employment opportunities – comes with challenges in aligning qualifications with market requirements. 'There are indeed opportunities for employment, but the main challenge lies in meeting the requirements of these jobs—whether academic, professional, or experiential. The sector holds great potential, but it requires well-structured training to realize it,' he shared. A starting point would be to address the gaps in job classifications according to global dynamics, he explained. 'This is where the association plays a critical role. There is currently a significant gap in how roles are categorized and in defining their professional requirements in alignment with international standards. Tourism is a globally competitive industry. You cannot build a local tourism sector without acknowledging the dynamics of global competition. You are offering a product in an international marketplace, which means you are competing regionally and globally. This reality demands that our standards in the tourism sector meet the highest international benchmarks,' he stated. To this end, the Association is working towards creating clear roadmaps. 'It starts with adopting those standards and then applying them—both in terms of professional practices and training programmes... This would allow young Omanis to progress smoothly through the career ladder, benefit from real growth opportunities, and advance into leadership roles within the sector. What we in the association are working toward is creating a clear and structured roadmap into the sector—so that even students can understand their future career paths within tourism, starting from the classroom,' he said. Established in December 2024, the Oman Tourism Association is the first civil society organization dedicated to the tourism sector. The association commenced operations on July 1, 2025. According to officials, the association aims to bridge the gap between supervising government authorities and sector stakeholders including investors and professionals.
Zawya
a few seconds ago
- Zawya
New mechanisms to bolster appeal of Oman's Round 3 hydrogen auction
MUSCAT - Hydrom, the state-owned entity overseeing Oman's green hydrogen strategy, has introduced a series of mechanisms and incentives aimed at generating stronger investor interest in the third round of auctions for green hydrogen development blocks. Launched in April 2025, Round 3 centres on a 300 sq km land block in Duqm. Prospective developers may bid for a minimum of 100 sq km, with the flexibility to define their project footprint within the block. This approach allows bidders to tailor configurations in line with their strategies and market outlook. According to Abdulaziz al Shidhani, Managing Director of Hydrom, the latest round has been designed with enhanced flexibility to better align with investor expectations. 'We offered a 300-square-kilometre block where bidders can propose developing a third, two-thirds, or the entire area, depending on their capabilities. We can award the land to one, two, or three developers. Strategically, the message is that Oman is committed yet agile,' he told The Energy Year, a UK-based energy news portal. Crucially, Hydrom has embedded several new features into the auction process to elicit a stronger investor response. 'We're introducing mechanisms such as a double-sided auction with a contract-for-difference model, and a downstream auction aimed at domestic industry,' Al Shidhani explained. 'These initiatives are designed to stimulate local hydrogen demand by bridging the price gap between suppliers and buyers. We're also allowing phased project development. Instead of delivering the full 50,000 tonnes per year within seven years, developers can start small and scale up.' Additional incentives—yet to be disclosed—will reward developers that meet specific milestones, he noted. 'Importantly, only 4 per cent of Oman's 50,000-square-kilometre hydrogen potential has been allocated so far. We're serious about scaling but also balanced about risk,' he added. While optimism surrounds the auction, Al Shidhani acknowledged ongoing challenges facing the global hydrogen industry, such as political transitions and policy delays in key markets including Germany and Japan. One critical challenge being addressed by Hydrom is the imbalance between global hydrogen supply and demand. 'We're tackling this through government-to-government agreements with Japan, South Korea, Germany, the Netherlands, Belgium, and Singapore,' he said. 'These aren't just MoUs—we conduct workshops, run joint studies, and have launched the world's first liquid hydrogen corridor with partners in Germany and the Netherlands.' Domestically, Hydrom is also focusing on building a viable local market for hydrogen. 'We're exploring downstream applications and support tools like the double-sided auction model to make green hydrogen affordable for local industries without undermining competitiveness,' he said. 'We're not waiting for perfect conditions—we're pushing ahead with real engagements and infrastructure planning.' Also aiding investor convenience is a streamlined permit system that consolidates approvals across multiple government agencies. 'We had a major breakthrough with the single automatic permit system,' Al Shidhani said. 'Previously, developers needed clearances from 36 entities. That's now down to just nine. Through the newly launched Oman platform, once a project is approved, developers receive access to all requirements, and full land access is granted the next day. This automated system has dramatically reduced administrative bottlenecks.' While underscoring Hydrom's central role in orchestrating Oman's green hydrogen ambitions, Al Shidhani emphasized that the success of the sector depends on collective action. 'Hydrom remains the coordinator, but success hinges on ecosystem partners delivering on their responsibilities,' he said. 'We expect our first hydrogen plant to be operational between 2029 and 2031.' 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
