Saudi Gazette report

RIYADH — For the first time, Saudi Arabia has ranked first in the MENA region in terms of the amount of Venture Capital (VC) funding for the year 2023, according to MAGNiTT, the MENA-based venture data platform. This significant achievement reflects the Kingdom's economic and financial sector development, aligning with the objectives of Saudi Vision 2030 to bolster the national economy.

In 2023, the Kingdom secured the largest portion of total VC funding in the MENA region, representing 52% of the total capital deployed — a notable increase from 31% in 2022. The investment in Saudi Arabian startups surged by 33% in 2023 compared to the previous year. This growth not only underscores the attractiveness of the Saudi market but also strengthens its competitive standing and reaffirms the Kingdom's status as the largest economy in MENA. A G20 nation, Saudi Arabia is a member of the BRICS group, which is one of the most formidable economic blocs globally.

Dr. Nabeel Koshak, CEO and Board Member at SVC, stated: "The Kingdom's ascent in the regional VC landscape is a direct result of various government initiatives aimed at energizing the VC and startup ecosystem, part of the Saudi Vision 2030 programs. This rise is further supported by the enhancement of the legislative and regulatory environment for the ecosystem, coupled with the emergence of dynamic investors from the private sector and innovative entrepreneurs."

He further added: "We take pride in SVC's strategic role in advancing the VC ecosystem in the Kingdom, which has risen from being ranked fourth in the region for the amount of VC funding in 2018 to the top position in 2023. The investment in Saudi startups has grown 21-fold in 2023 compared to 2018, the year SVC was established. At SVC, we remain committed to spearheading the evolution of the VC ecosystem in Saudi Arabia by encouraging private investors to support startups and SMEs, facilitating rapid and substantial growth. This approach is integral to diversifying the national economy and realizing the objectives of Saudi Vision 2030."

SVC, established in 2018, is an investment company and a subsidiary of the SME Bank, which is affiliated with the National Development Fund. SVC's mission is to foster and sustain financing for startups and SMEs, from pre-Seed to pre-IPO stages, through investments in funds and co-investment in startups and SMEs.