Saudi Arabia receives $860m in
venture capital in first half of 2025
Saudi Arabia’s venture capital (VC)
sector reached a historic milestone in the first half of 2025, recording $860
million (SAR 3.2 billion) in deployed capital—a 116% surge compared to the same
period in 2024. The figure not only exceeds total VC funding for all of last
year but also cements the Kingdom’s position as the MENA region’s top
investment hub, accounting for 56% of regional capital deployment.
According to the "H1 2025 Saudi
Arabia Venture Capital Report" released by MAGNiTT in partnership with
Saudi Venture Capital (SVC), the Kingdom also achieved a record 114 VC deals
during the period, up 31% year-over-year. These deals represent 37% of all
transactions across MENA—the highest share ever recorded for Saudi Arabia.
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financial sector achieves remarkable growth in 2024, setting new benchmarks
E-Commerce
and Fintech Dominate VC Activity
E-commerce led in capital raised,
attracting $306 million (SAR 1.1 billion) and representing 36% of total VC
funding in the Kingdom. Fintech, meanwhile, topped in number of deals, with 30
transactions making up 26% of Saudi Arabia’s VC deal volume in H1 2025.
Strong
Momentum Under Vision 2030
Dr. Nabeel Koshak, CEO and Board
Member of SVC, credited the Kingdom’s long-term commitment to Vision 2030 for
this momentum:
“The steady growth of the Saudi VC
ecosystem in recent years has enabled it to maintain its leading position in
the MENA region and achieve record funding and deal count in H1 2025. This
progress stems directly from Saudi Arabia’s strategy to foster entrepreneurship
and encourage investment across all startup stages.”
Established in 2018 under SME Bank—a
subsidiary of the National Development Fund—SVC plays a pivotal role in
financing startups and SMEs. The firm supports ventures from pre-Seed to pre-IPO
stages through investments in venture capital and private equity funds, as well
as targeted direct investments.
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Public Investment Fund (PIF) to establish $40 billion AI investment fund
Long-Term
Vision for Entrepreneurial Growth
The report emphasizes Saudi Arabia’s
strategic focus on cultivating a robust entrepreneurial ecosystem as part of
its Vision 2030 agenda. By prioritizing capital access across the entire
startup lifecycle, the Kingdom aims to maintain its leadership in the region’s
venture capital space and build a sustainable, innovation-driven economy.
Source: One Arabia
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