The “2023 Saudi Arabia Venture Capital Report” revealed that the Kingdom of Saudi Arabia was the most funded country in the Middle East and North Africa (MENA) region in terms of the amount of venture capital (VC) funding in 2023, which witnessed a record total VC deployment of $1.4 billion (SAR 5.2 billion), up by 33% compared to 2022 and crossing the $1 billion mark for the second consecutive year, despite the decline witnessed in regional and global VC markets.
According to the report published today by the venture data platform, MAGNiTT, and sponsored by Saudi Venture Capital (SVC), the Kingdom captured the highest share of total funding in the MENA region in 2023.
VC funding in Saudi Arabia accounted for 52% of the total capital deployed in the region in 2023, increasing from 30% in 2022. Last year also achieved a new record for the Kingdom’s mega deal (more than $100 million) funding, which stood at $879M (SAR 3.3Bn) across four deals, where the Saudi deals captured 77% of all MENA mega deals.
Finance technology (fintech) was the highest sector in the Kingdom by amount of funding and by number of deals in 2023, where the sector accounted for 51% of total funding in the country with $704 million (SAR 2.6 billion) aggregated across 30 deals.
Commenting on the report, Dr. Nabeel Koshak, CEO and board member at SVC, said “The steady growth witnessed by the Saudi VC ecosystem during the past few years, which led to achieving a new record of VC funding in 2023 and becoming the most funded market in the MENA region, is a historic achievement and a result of the country’s pursuit to achieving the Saudi Vision 2030 and its commitment to fostering entrepreneurship and stimulating investment in startups.
This is demonstrated by the launch of several initiatives and programs that contributed to the evolvement of the VC ecosystem in Saudi Arabia at an unprecedented pace”.
“Capturing the highest share of total VC funding in MENA in 2023 confirms the attractiveness of the Saudi market, enhances its competitive environment, and consolidates the strength of the Kingdom’s economy as the largest economy in MENA,” Koshak said.
SVC is an investment company established in 2018 and is a subsidiary of the SME Bank, one of the development banks affiliated with the National Development Fund.
SVC aims to stimulate and sustain financing for startups and small-to-medium enterprises (SMEs) from pre-Seed to pre-IPO through investment in funds and co-investment in startups.
