Saudi Arabia Dominates MENA Venture Capital With $412 Million In First Half Of 2024
The Saudi Venture Capital Company (SVC) announced that Saudi Arabia has retained its top position in the MENA region for Venture Capital (VC) funding in the first half of 2024. The '2024-H1 Saudi Arabia Venture Capital Report' indicated a total VC deployment of $412 million (SAR 1.5 billion).
According to a report by MAGNiTT, sponsored by SVC, Saudi Arabia secured the largest share of VC funding in the MENA region during H1 2024. The Kingdom accounted for 54% of the total capital deployed, an increase from 38% in H1 2023.
E-commerce and retail sectors led the way in terms of VC funding within Saudi Arabia, representing 52% of the total funding. This sector attracted $215 million (SAR 806 million). Meanwhile, FinTech dominated the number of deals, capturing 14% of all deals in the first half of 2024.
SVC CEO and Board Member Dr. Nabeel Koshak expressed pride in SVC's role in developing the Kingdom's VC ecosystem. He attributed this success to economic development initiatives supported by Custodian of the Two Holy Mosques, His Highness King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman under Saudi Vision 2030.
Dr. Koshak stated: "We are proud that SVC's strategy contributed to the development of the Kingdom's Venture Capital ecosystem. Through unwavering efforts, the Kingdom maintained its leading position in the region, which comes as a result of the economic development witnessed by the Kingdom with The support of the Custodian of the Two Holy Mosques, His Highness King Salman bin Abdulaziz Al Saud and His Royal Highness the Crown Prince, through the launch of many governmental initiatives to stimulate the VC and startups ecosystem within the Saudi Vision 2030 programs."
The CEO of MAGNiTT highlighted Saudi Arabia's progress in fostering innovation and supporting startups. He noted that deal flow accounted for 30% of H1 MENA deal activity, up from 24% in H1 2023.
MAGNiTT data revealed that KSA led H1 VC funding in MENA while non-mega funding (deals less than $100 million) saw an impressive year-on-year growth of 84%. This trend underscores investment growth in foundational ecosystems, building a strong pipeline for future late-stage investments.
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