Saudi Arabia maintained its first rank across the Middle East and North Africa (MENA) region in terms of venture capital (VC) funding in the first half of 2024, witnessing a total deployment of SAR1.5 billion ($412 million).
Saudi Arabia leads regional growth
MAGNiTT and SVC’s latest “2024-H1 Saudi Arabia Venture Capital Report” revealed that Saudi Arabia attracted the highest share of total venture capital funding in the MENA region in H1 of 2024. The Kingdom accounts for 54 percent of the region’s investments, a significant increase from its 38 percent share in 2023.
“Through unwavering efforts, the Kingdom maintained its leading position in the region, which comes as a result of the economic development witnessed by the Kingdom,” stated Dr. Nabeel Koshak, CEO and board member at SVC. Notably, Saudi Arabia has launched many governmental initiatives to stimulate the venture capital and startup ecosystem under Saudi Vision 2030.
E-commerce attracts the most VC funding
In H1 of 2024, the e-commerce and retail sector attracted the highest amount of venture capital funding. They accounted for 52 percent of total Saudi Arabia’s funding, or $215 million. Meanwhile, fintech continued to lead the total number of deals, capturing 14 percent of deals in H1 of 2024.
“Saudi Arabia continues to make significant strides in fostering innovation and supporting a robust startup ecosystem. This progress is evident in the Kingdom’s deal flow, which accounted for 30 percent of H1 MENA deal activity, up from 24 percent in H1 2023,” stated Philip Bahoshy, CEO at MAGNiTT.
Read: UAE-based startups lead MENA region in funding in June, securing $82.5 million across 15 deals
Non-mega funding surges
The report also revealed that non-mega funding (deals less than $100 million) in Saudi Arabia saw an impressive 84 percent annual growth. This positive trend underscores the growth of investment in the foundational ecosystem. Moreover, it builds a strong pipeline for future late-stage investments.
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