In a significant milestone, Saudi Arabia has emerged as the leader in venture capital (VC) investments within the Middle East and North Africa (MENA) for the year 2023. Data from MAGNiTT, a venture data platform focused on the MENA region, highlights this momentous achievement.
These strides in economic expansion are in alignment with Saudi Vision 2030, a strategic framework aimed at fortifying the national economy and diversifying revenue sources.
Statistics reveal that the kingdom has garnered a staggering 52% of the total VC funding allocated across the MENA region in 2023, which is a notable increase from the previous year’s 31%.
Investments in Saudi startups have seen a 33% uptick in 2023 compared to 2022, as reported by the prominent Saudi investment entity, SVC. SVC operates as a subsidiary of the SME Bank, a development bank under the National Development Fund umbrella, with a focus on stimulating investment in both startups and SMEs across various growth stages.
The burgeoning Saudi market continues to attract investors, strengthening its competitive edge and reinforcing its status as the largest economy in the MENA region. It also underscores Saudi Arabia’s global significance as a G20 member and part of the BRICS group, known for being a formidable economic alliance.
According to a senior official, the kingdom’s preeminence in the VC sector is a direct result of governmental efforts to nurture the VC and startup ecosystem as part of the Saudi Vision 2030 programs. This includes enhancing the legislative and regulatory framework and the rise of dynamic private sector investors and entrepreneurs.
Dr. Nabeel Koshak, CEO, expressed pride in SVC’s strategic contribution to the development of the kingdom’s VC ecosystem. He noted the country’s ascent from fourth place in 2018 to its current leading position in the region.
Dr. Koshak highlighted the exponential growth in funding for Saudi startups, which has increased twenty-onefold since 2018—the year SVC commenced operations.
He emphasized SVC’s commitment to driving the VC ecosystem’s progress in Saudi Arabia. The agency intends to encourage private investors to support startups and SMEs, thereby fostering rapid and substantial growth, diversifying the economy, and fulfilling the objectives of Saudi Vision 2030.