A recent analysis of venture capital activity in the Middle East and North Africa (MENA) region has revealed that Saudi Arabia leads the pack in 2023 as the country with the highest value of venture investments. The kingdom witnessed a historic surge in funding, with a record $1.4 billion poured into Saudi startups, marking a 33% increase from the previous year. This growth occurred despite a regional and global decline in venture investments, surpassing the billion-dollar threshold for the second consecutive year.
The report published by MAGNiTT, a platform for venture investment data of startups and sponsored by SVC, highlighted that Saudi Arabia claimed the lion’s share, which stood at 52% of the total venture investment in the MENA region for 2023, a significant rise from 30% in 2022. The kingdom also experienced a record number of large deals (exceeding $100 million) amounting to $879 million across four transactions, representing 76% of the total large deals in the region for the year.
Delving deeper, the report pointed out that the fintech sector in Saudi Arabia was the most significant in terms of venture investment value and number of deals in 2023. The sector garnered 51% of the kingdom’s total venture investment, with $704 million allocated across 30 deals.
Dr. Nabil bin Abdul Qader Koshak, CEO and Board Member of SVC, commented on the findings, stating that the continuous rapid growth of the venture investment ecosystem in Saudi Arabia, achieving a new record in 2023, and leading the scene in the MENA region is an unprecedented historic achievement. This success stems from Saudi Arabia’s commitment to realizing Vision 2030 and its belief in the importance of promoting entrepreneurship and stimulating investment in startups. A suite of initiatives and programs has been launched, resulting in the unprecedented rapid development of the kingdom’s venture investment landscape.
Dr. Koshak added that Saudi Arabia’s dominant share of the region’s venture investment in 2023 underscores the attractiveness of the Saudi market, enhances its competitive environment, and reinforces the strength of the kingdom’s economy as the largest in the MENA region.
It is worth noting that SVC is an investment company founded in 2018, affiliated with the Small and Medium Enterprises Bank, one of the developmental banks of the National Development Fund. SVC aims to stimulate and sustain the financing of startups and small and medium-sized enterprises from the pre-establishment phase to the pre-initial public offering stage, by investing in funds and participating in startup companies.
