Kingdom achieves record 178 venture capital deals, accounting for 40% of MENA’s total investments.
RIYADH, Saudi Arabia — Saudi Arabia has reaffirmed its position as the premier destination for venture capital (VC) in the Middle East and North Africa (MENA), attracting $750 million in funding across 178 deals in 2024. This performance represents 40% of the total VC investments in the region, as reported by venture data platform MAGNiTT.
Despite a 44% decline in total investment value compared to the previous year, primarily due to an 85% reduction in mega-deals exceeding $100 million, the Kingdom witnessed a 16% increase in the number of transactions. This surge underscores a strategic pivot towards early-stage investments and a diversified startup ecosystem.
E-commerce emerged as the leading sector, securing $247 million and constituting 33% of the nation’s VC funding. Notably, Salla, an e-commerce enablement platform, clinched the largest deal at $130 million. The fintech sector followed, attracting $182 million across 32 deals, highlighting robust investor interest in financial technology innovations.
Dr. Nabeel Koshak, CEO and board member of Saudi Venture Capital Company (SVC), attributed this success to comprehensive governmental initiatives aligned with Saudi Vision 2030. He stated, “The Kingdom’s leading position in the VC scene in the region comes as a result of the many governmental initiatives launched to stimulate the VC and startups ecosystem within the Saudi Vision 2030 programs.”
The Public Investment Fund (PIF) has been instrumental in this growth, announcing a $40 billion fund dedicated to artificial intelligence (AI) investments. This initiative aims to position Saudi Arabia as a global AI hub, fostering technological advancement and economic diversification.
The Kingdom’s strategic focus on early-stage funding, coupled with a maturing startup ecosystem, has not only bolstered its domestic market but also enhanced its appeal to international investors. As Saudi Arabia continues to implement Vision 2030, it is poised to further solidify its leadership in the MENA venture capital landscape.
Source: Saudi Venture Capital Company (SVC)
