Saudi Arabia tops MENA for venture capital investment in 2023

Logo of Saudi Venture Capital

Saudi Arabia has taken the top rank across MENA for the first time in terms of the amount of venture capital (VC) funding in 2023, according to venture data platform MAGNiTT. 

This historic achievement reflects the development the Kingdom is witnessing in various economic and financial sectors in light of the Saudi Vision 2030 and its goals to strengthen the national economy, state-run SPA reported.

The Kingdom captured the highest share of total VC funding in the MENA region last year, accounting for 52% of the total capital deployed in the region, up from 31% in 2022. The funding deployed into Saudi Arabian startups grew by 33% year-on-year (YoY). 

This confirms the attractiveness of the Saudi market, enhances its competitive environment, consolidates the strength of the Kingdom’s economy as the largest economy in MENA, its leading position globally as a G20 country, and a member of BRICS, which represents one of the strongest economic blocs in the world, the report added. 

Nabil Koshak, CEO of SVC, said: “"The Kingdom's ascent in the regional VC landscape is a direct result of various government initiatives aimed at energizing the VC and startup ecosystem, part of the Saudi Vision 2030 programs. This rise is further supported by the enhancement of the legislative and regulatory environment for the ecosystem, coupled with the emergence of dynamic investors from the private sector and innovative entrepreneurs." 

“We are proud that SVC’s strategy contributed to the development of the VC ecosystem in the Kingdom, as it was ranked fourth in the region in terms of the amount of VC funding in 2018, to be the top country in the region in 2023.

The funding deployed into Saudi Arabian startups grew 21 times in 2023 versus 2018, the year SVC was launched". 

He said that SVC is committed to continuing to lead the development of the VC ecosystem in Saudi Arabia through stimulating private investors to provide support in turn 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 is an investment company established in 2018. It is a subsidiary of the SME Bank, one of the development banks affiliated with the National Development Fund. SVC aims to stimulate and sustain financing for startups and SMEs from pre-seed to pre-IPO through investment in funds and co-investment in startups and SMEs.