Saudi Arabia achieved a significant milestone by securing in 2023 the top spot in venture capital (VC) funding within the Middle East and North Africa (MENA) region. This accomplishment highlights the nation’s remarkable progress in its economic and financial sectors, aligning with the goals of Vision 2030. The Saudi Press Agency (SPA), citing data from MAGNiTT, a MENA-based venture data platform, reported that the Kingdom accounted for a commanding 52 percent of the total VC funding in the MENA region, a substantial increase from its 31 percent share in 2022.
Compared to the previous year, there was a notable 33 percent growth in funding allocated to regional startups during this period. Nabeel Koshak, CEO and board member at Saudi Venture Capital (SVC), attributed this success to various government initiatives launched under Vision 2030 programs, as well as the evolution of a legislative and regulatory environment that encourages investment. The active involvement of the private sector and innovative entrepreneurs also played a crucial role in this achievement.
Koshak expressed pride in SVC’s significant contribution to the development of the venture capital ecosystem in the Kingdom. He highlighted that Saudi Arabia’s ranking rose from fourth place in 2018 to the top position in 2023. Notably, the funding allocated to regional startups in 2023 grew twenty-one-fold compared to 2018.
SVC’s strategy focuses on stimulating private investors to support startups and small and medium enterprises, fostering rapid and substantial growth. Established in 2018 as a subsidiary of the SME Bank, which is affiliated with the National Development Fund, SVC’s mission is to invigorate and sustain financing for startups and SMEs from the pre-seed stage to the pre-initial public offering stage.
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