Saudi Arabia set a new record in venture capital (VC) activity in the first half of 2025, with total investments reaching $860 million (SAR 3.2 billion). This marks a 116% increase compared to H1 2024 and exceeds the total VC funding raised in the entire year of 2024.
Saudi Arabia retained its position as the top VC market in the MENA region, accounting for 56% of the total capital deployed. The figures highlight the Kingdom’s strong investment appeal, dynamic business environment, and its continued dominance as the region’s largest economy.
According to the “H1 2025 Saudi Arabia Venture Capital Report” released by MAGNiTT and sponsored by Saudi Venture Capital (SVC), a total of 114 VC deals were closed in the first half of the year—a 31% increase from H1 2024. This represents 37% of all MENA VC transactions, the highest share ever recorded for Saudi Arabia.
E-Commerce Tops Investment, Fintech Leads in Deal Count
The e-commerce sector attracted the most capital, securing $306 million (SAR 1.1 billion) and accounting for 36% of total VC deployment. Meanwhile, fintech led in the number of deals, with 30 transactions, making up 26% of all VC deals in the country.
Dr. Nabeel Koshak, CEO and Board Member of SVC, commented on the report’s findings:
“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.”
(SVC)
Founded in 2018, SVC is a subsidiary of the SME Bank, which is part of the National Development Fund. The firm focuses on stimulating and sustaining funding for startups and SMEs from pre-Seed to pre-IPO stages. It does so through investments in private capital funds—including venture capital, private equity, venture debt, and private credit—as well as direct investments.
Related Topics :
KAUST Researchers Embark on Groundbreaking OceanQuest Expedition Around Africa
Saudi Researchers Unveil Revolutionary Nanoplastic for Sustainable Street Lighting
What is Research & Development? How Can You Implement It Effectively in Your Business?
KAUST Accelerates Scientific Research with 67 Projects in AI, Cybersecurity, Bioinformatics
