Saudi Arabia achieved a record total Venture Capital (VC) deployment of SAR3.2 billion ($860 million) in H1 2025, up by 116 percent compared to H1 2024, surpassing the total VC funding for all of 2024.
“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 a record VC funding and deal count in the first half of 2025. This growth directly results from the country’s commitment to realizing the Saudi Vision 2030, which emphasizes fostering entrepreneurship and stimulating investment in startups from early to later stages,” said Dr. Nabeel Koshak, CEO and board member at SVC.
Kingdom tops MENA region in VC funding
The H1 2025 Saudi Arabia Venture Capital Report also revealed that the Kingdom maintained its first rank across the MENA region in VC funding, accounting for 56 percent of the total capital deployed in the region. This confirms the attractiveness of the Saudi market, its competitive environment, and its position as the largest economy in the MENA region.
The report also reveals that Saudi Arabia achieved a record 114 VC deals in H1 2025, a 31 percent increase compared to H1 2024. This accounts for 37 percent of the total deals in the MENA region, marking the highest share ever for the Kingdom.
According to the report, e-commerce ranked first among sectors in Saudi Arabia, accounting for 36 percent of the country’s capital deployed in H1 2025, with a value of $306 million. Meanwhile, fintech led in the number of deals, with 30 deals, representing 26 percent of all VC deals in Saudi Arabia.
Saudi Arabia records $750 million funding in 2024
In 2024, Saudi Arabia also maintained its position as the first across the MENA region in terms of VC funding, witnessing a total VC deployment of SAR2.8 billion ($750 million).
The 2024 Emerging Markets Venture Capital Report by venture data platform MAGNiTT revealed that Saudi Arabia secured the highest share of total VC funding in the MENA region in 2024, despite a 44 percent annual decline in total funding. The Kingdom’s share reached 40 percent of the total capital deployed in the region.
The report also revealed that Saudi Arabia set a new record with 178 VC deals in the same year. This highlighted the attractiveness of the Saudi market, boosted its competitive environment and solidified the Kingdom’s position as the largest economy in MENA.
Emerging venture markets raise $9.1 billion
In 2024, emerging venture markets in the Middle East, Africa, Pakistan, Türkiye and Southeast Asia raised $9.1 billion in VC funding. This marked a 40 percent decline from the figure recorded in FY2023, as emerging markets also struggled with the global funding downturn. Despite the significant total funding decline, the total number of investors backing startups in these markets increased by 2 percent annually to 1,707.
Of the $9.1 billion total, the MENA region raised $1.9 billion. Despite the dip in funding, the number of active investors in MENA rose by 20 percent, signaling optimism for 2025. In addition, the number of deals across the region increased by 7 percent in 2024, a further sign of the ecosystem’s growth prospects.
