Saudi Arabia to be first in venture capital in the Middle East by 2025
Saudi Arabia has continued to solidify its position as a leading economic power in the region, with a recent report from MAGNiTT, a venture capital data platform, revealing that the Kingdom will top the Middle East and North Africa (MENA) region in venture capital investment for 2025. This achievement marks the third consecutive year of Saudi Arabia's dominance, reflecting the success of its economic strategies.
Record numbers and unprecedented growth
The report's data revealed that Saudi Arabia's startup ecosystem has made significant strides, with total venture capital investment in the Kingdom reaching $1.72 billion in 2025. This growth wasn't limited to funding volume; the number of deals also surged to 257 , a record high for the Kingdom. These figures underscore Saudi Arabia's position as the largest and most attractive market in the region, far surpassing its counterparts.
Comparing performance and accelerated growth
Comparing the performance in 2025 to the previous year reveals the magnitude of the sector's boom; venture capital investments in 2024 reached approximately $700 million. This represents a remarkable growth of over 145% in just one year for the Kingdom. This significant increase reflects the confidence of both local and international investors in the strength of the Saudi economy and its capacity to absorb substantial and diverse investments.
Vision 2030 and government incentives
This achievement cannot be separated from the broader context of the Kingdom's Vision 2030 , which aims to diversify national income sources and reduce dependence on oil by supporting innovation and entrepreneurship. Government initiatives have played a crucial role in creating a fertile environment for investment, from modernizing legislative and regulatory frameworks to establishing supportive funds such as the Saudi Venture Capital Company (SVC).
In this context, Noura Al-Sarhan, Executive Vice President and Chief Investment Officer at SVC, affirmed that these results are a product of the evolving venture capital ecosystem and the integration of government policies with the private sector. She noted that deals have not only increased in quantity but have also undergone a qualitative transformation in their size and the diversity of their sectors, thus enhancing the readiness of Saudi startups to compete regionally and globally.
Financial technology is at the forefront
At the sector level, the financial technology (Fintech) the lion's share of investments, with total funding exceeding $506 million across 55 deals. This trend reflects the growing role of technology in developing the Saudi financial sector, supported by a flexible and innovative regulatory environment that contributes to achieving the objectives of the Financial Sector Development Program, one of the Vision 2030 programs.
Expected economic impact
This boom in venture capital is expected to create thousands of high-quality jobs for young Saudis, attract more foreign investment, and localize cutting-edge technologies. The Kingdom's continued leadership in the region's investment landscape reinforces its position as a global hub for innovation and entrepreneurship, paving the way for even greater success in the years to come.
