The Kingdom of Saudi Arabia has proudly positioned itself at the forefront of venture capital investment within the Middle East and North Africa (MENA) for the year 2023. This significant stride in economic progress aligns seamlessly with the nation’s ambitious Vision 2030 goals.
A report highlighted by the Saudi Press Agency, leveraging data from the MENA-specific venture data platform MAGNiTT, reveals this impressive milestone. The Kingdom now accounts for an impressive 52 percent of the entire venture capital funding within the MENA region, a leap from its 31 percent stake in the previous year.
Throughout the span of 2023, Saudi Arabia demonstrated a robust 33 percent surge in the capital funneled into startups across the region, reflecting a year-over-year growth.
Nabeel Koshak, who serves as both CEO and board member at Saudi Venture Capital (SVC), credits this achievement to a series of governmental initiatives that fall under Vision 2030. He also points to an evolving legislative and regulatory framework that has been nurturing investment.
The ascent to the top is also attributed to the vibrant engagement from both the private sector and innovative entrepreneurs. Koshak takes pride in SVC’s instrumental role in shaping the venture capital ecosystem in Saudi Arabia.
From a modest fourth-place ranking in 2018, the Kingdom’s venture capital standing has soared to the very top in 2023. Remarkably, the investment in regional startups this year has increased by twenty-one times when compared to figures from five years prior.
SVC’s strategy is tailored to encourage private investors to back startups and small and medium enterprises (SMEs), propelling them towards substantial growth.
Since its establishment in 2018 as a subsidiary of the SME Bank under the National Development Fund, SVC has had a clear mandate to boost and maintain funding for startups and SMEs, from their earliest stages right up to the threshold of public offerings. Their approach encompasses investments in funds as well as direct co-investments in ventures of various sizes.
With 43 private capital funds under its wing—including venture capital, private equity, venture debt, and private debt—SVC supports an ecosystem of over 700 businesses and oversees the management of $2 billion in assets.