Saudi Arabia Venture Capital Investment Market

Saudi Arabia Venture Capital Investment Market Size and Share: 

The Saudi Arabia venture capital investment market size reached USD 3.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 13.4 Billion by 2033, exhibiting a growth rate (CAGR) of 17.57% during 2025-2033. Saudi Arabia’s market is expanding due to strong government support under Vision 2030, increasing foreign and corporate investments, and a thriving startup ecosystem. Key sectors such as fintech, e-commerce, and health tech are attracting funding, while regulatory reforms and startup are further augmenting the Saudi Arabia venture capital investment market share, positioning the Kingdom as a regional innovation hub.

Saudi Arabia Venture Capital Investment Market Trends:

Growth of Venture Capital in Saudi Arabia’s Startup Ecosystem

The rising government initiatives and a thriving startup ecosystem are majorly driving the Saudi Arabia venture capital investment market growth. Over the last 10 years, startups in Saudi Arabia have attracted USD 3.3 Billion of venture capital investment, with the fintech sector receiving the lion's share of investment, according to an industry report. Concurrently, 53% of total funding went to teams with two co-founders, while solo founders were able to capture just 15%. The rise in funding, powered by Vision 2030 initiatives, illustrates the growing appeal of Saudi Arabia in the regional venture capital landscape and the potential for future unicorns. The Kingdom’s Vision 2030 economic diversification plan has played a pivotal role in fostering innovation, with entities such as the Saudi Venture Capital Company (SVC) and the National Technology Development Program (NTDP) providing funding and support to early-stage startups. Sectors such as fintech, e-commerce, and health tech have attracted substantial investments, with startups securing large funding rounds. Additionally, the rise of startup accelerators and incubators has further stimulated entrepreneurial activity. As more local and international investors recognize Saudi Arabia’s potential, VC funding is rising, positioning the Kingdom as a leading hub for innovation in the Middle East.

Increasing Foreign and Corporate Investment in Saudi Startups

The growing participation of foreign and corporate investors is creating a positive Saudi Arabia venture capital investment market outlook. Saudi Arabia registered net foreign direct investment (FDI) inflows of 16.0 Billion SAR (approximately USD 4.32 Billion) in Q3 2024, down 24% year-on-year (up 37% quarter-on-quarter). In total, FDI inflows reached 18.0 Billion SAR (about USD 4.86 Billion), whereas outflows reached 2.0 billion SAR (approximately USD 0.54 Billion), marking a substantial 74% decrease from previous quarters. These developments reflect changing foreign investor sentiment, critical for venture capital and corporate investment strategies in harmony with Vision 2030. Global venture capital firms, have been actively investing in high-potential Saudi startups, signaling confidence in the region’s growth prospects. Additionally, corporate venture capital (CVC) arms of major Saudi companies are playing a crucial role in funding and scaling local startups. This trend is further supported by regulatory reforms that encourage foreign investment, such as relaxed ownership laws and tax incentives. As cross-border deals increase, Saudi startups are gaining access to international expertise and markets, enhancing their scalability. The influx of foreign and corporate capital is expected to accelerate innovation and solidify Saudi Arabia’s position as a key player in the global VC landscape.

Saudi Arabia Venture Capital Investment Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on sector, fund size, and funding type.

Sector Insights:

• Software
• Pharma and Biotech
• Media and Entertainment
• Medical Devices and Equipment
• Medical Services and Systems
• IT Hardware
• IT Services and Telecommunication
• Consumer Goods and Recreation
• Energy
• Others

The report has provided a detailed breakup and analysis of the market based on the sector. This includes software, pharma and biotech, media and entertainment, medical devices and equipment, medical services and systems, IT hardware, IT services and telecommunication, consumer goods and recreation, energy, and others.

Fund Size Insights:

• Under $50 M
• $50 M To $100 M
• $100 M To $250 M
• $250 M To $500 M
• $500 M To $1 B
• Above $1 B

A detailed breakup and analysis of the market based on the fund size have also been provided in the report. This includes under $50 M, $50 M to $100 M, $100 M to $250 M, $250 M to $500 M, $500 M to $1 B, and above $1 B.

Funding Type Insights:

• First Time Venture Funding
• Follow-On Venture Funding

The report has provided a detailed breakup and analysis of the market based on the funding type. This includes first time venture funding and follow-on venture funding.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Venture Capital Investment Market News:

• January 23, 2025: 500 Global, a global tech investor, announced the launch of 500 MENA, L.P., led by Amjad Ahmad. This fund invests in filling the Series B gap for early-stage technology startups across the MENA region. This new fund, in continuation with the USD 2.6 Billion investment in MENA startups in 2023, is supported by some of the largest Saudi investors (including the Jada (PIF), Sanabil, and SVC). Through over 270 investments in the region thus far, 500 Global is committed to supporting Saudi and GCC founders to grow their businesses globally.
• January 3, 2025: SVC (Saudi Venture Capital) invested in Global Ventures III, a new USD 150 Million fund focused on early-stage technology and deep-tech companies in Saudi Arabia, the MENA region, and Sub-Saharan Africa. The fund focuses on areas including AI (artificial intelligence), agritech, enterprise software as a service, and supply chain tech, which aligns with SVC’s mission to support startups in Saudi Arabia. This investment is part of a strategic program of SVC, within the Investment in Funds Program, aimed at enriching the venture capital ecosystem in the Kingdom.

Saudi Arabia Venture Capital Investment Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia venture capital investment market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia venture capital investment market on the basis of sector?
• What is the breakup of the Saudi Arabia venture capital investment market on the basis of fund size?
• What is the breakup of the Saudi Arabia venture capital investment market on the basis of funding type?
• What is the breakup of the Saudi Arabia venture capital investment market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia venture capital investment market? 
• What are the key driving factors and challenges in the Saudi Arabia venture capital investment market?
• What is the structure of the Saudi Arabia venture capital investment market and who are the key players?
• What is the degree of competition in the Saudi Arabia venture capital investment market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia venture capital investment market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia venture capital investment market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia venture capital investment industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.