SVC: Saudi Arabia Accounted for 42% of MENA VC Funding in H1 2023

SVC: Saudi Arabia Accounted for 42% of MENA VC Funding in H1 2023

By Staff Writer, 25 July 2023

Riyadh, Saudi Arabia – In the first half of 2023, Saudi Arabia emerged as the frontrunner in the MENA region, securing the highest share of venture capital funding. The Kingdom witnessed a remarkable total VC deployment of $446M (SAR 1.67 billion).

The Kingdom captured the highest share of total funding in the MENA region in the first half of 2023, with VC funding in Saudi Arabia accounted for 42% of the total capital deployed in the region during H1 2023, increasing from 31% in 2022. The first half of 2023 also achieved a new record for the Kingdom’s mega-rounds (more than $100M) funding, which stood at $289M (SAR 1.08 billion) across 2 deals.

Related: MENA Funding Landscape Skyrockets with Six Mega-Rounds in 2022

E-Commerce/Retail took the lead as the highest-funded sector in the Kingdom during H1 2023, attracting a substantial amount of funding, totaling $368M (SAR 1.38 billion) across 11 deals.

Regarding this achievement, Dr. Nabeel Koshak, CEO, and Board Member at SVC, commented that it reflects the robust growth of the Saudi Arabian startup ecosystem, backed by various governmental initiatives launched to stimulate venture capital and support startups under the Saudi Vision 2030 programs. The private sector has also played a significant role, with active investors and innovative entrepreneurs driving the momentum.

Koshak further highlighted SVC's commitment to lead the development of the VC ecosystem in Saudi Arabia. Through stimulating private investors to support startups and SMEs, they aim to fuel fast and high growth, diversify the national economy, and achieve the goals of the Saudi Vision 2030.

SVC, established in 2018, is a government investment company and a subsidiary of the SME Bank, affiliated with the National Development Fund. SVC aims to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO by investing $1.6 billion through funds and co-investment in startups. SVC has invested in 43 funds that support 674 companies through 1,257 deals.

Related: SVC’s Role in Creating a Healthy Investor Ecosystem in Saudi Arabia

Related Report

Riyadh Startup Ecosystem

The Evolution of Saudi Arabia Startup Ecosystem 2010-2022

The first comprehensive overview of Saudi's startup ecosystem, its history, and its future. The Special Report hosts perspectives and insights from many of the country’s most active investors, highlights new investment trends, critical milestones hit by the Kingdom’s fast-growing startup ecosystem, and spotlights a handful of interesting startups coming out of the Kingdom. It is packed full of insights, data, and opinions from the thought leaders and market-makers in the Kingdom. Readers will gain a deep understanding of the unique factors driving Saudi Arabia's entrepreneurial spirit, the challenges faced by startups, and the opportunities that lie ahead. This report serves as an invaluable resource for anyone looking to navigate and invest in this vibrant and rapidly evolving market.

Subscribe To Our Newsletter

Stay up to date with the latest news, special reports, videos, infobytes, and features on the region's most notable entrepreneurial ecosystems