A report on the state of venture capital investments in the Middle East and North Africa (MENA) region has highlighted Saudi Arabia’s dominant position in 2023, showing that the kingdom’s startups received a record-breaking $1.4 billion in funding. This represents a 33% growth compared to the previous year, an impressive feat considering the overall decline in venture capital investments both regionally and globally. The kingdom has surpassed the one billion dollar mark for the second consecutive year.
The report, released today by MAGNiTT, a venture capital data platform sponsored by SVC, noted that Saudi Arabia claimed a 52% share of the entire venture capital investments in the MENA region in 2023, up from 30% in 2022. Furthermore, the year saw a record number of large deals (exceeding $100 million) in the kingdom, totaling $879 million through four transactions. These accounted for 76% of all major deals within the MENA region for the year.
The financial technology sector in Saudi Arabia was particularly robust, leading in both the value and number of venture capital deals. The sector cornered 51% of the kingdom’s total venture capital investments, amounting to $704 million across 30 deals.
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Dr. Nabil Koshak, CEO and Board Member of SVC, commented on the growth, “The continued rapid expansion of the venture capital ecosystem in the kingdom, setting a new record in 2023 and leading the scene in the MENA region, is a historic achievement. It stems from Saudi Arabia’s commitment to realize Vision 2030, fostering entrepreneurship, and stimulating investment in startups.” He underscored the kingdom’s initiatives and programs that have significantly accelerated the development of its venture capital landscape.
Dr. Koshak also pointed out that Saudi Arabia’s significant share of the region’s venture capital investment in 2023 underscores the Saudi market’s attractiveness, competitive environment, and the strength of its economy as the largest in the MENA region. SVC, established in 2018 and part of the Development Bank for Small and Medium Enterprises, one of the National Development Fund’s development banks, aims to stimulate and sustain the financing of startups and small and medium-sized enterprises from pre-establishment to pre-initial public offering through fund investments and direct participation in emerging companies.
