Saudi Arabia has made headlines by achieving a record-breaking $860 million in venture capital (VC) funding during the first half of 2025. This figure represents a 116% increase compared to the same period in 2024—already surpassing the total VC deployment for the entire previous year.
Kingdom Leads MENA in VC Activity
Maintaining its dominant position in the MENA region, Saudi Arabia accounted for 56% of the total VC funding deployed across the region. This remarkable milestone highlights the Kingdom’s thriving startup ecosystem and its growing appeal to investors seeking competitive and dynamic markets.
According to the H1 2025 Saudi Arabia Venture Capital Report by MAGNiTT (sponsored by SVC), the Kingdom secured 114 VC deals, marking a 31% year-on-year increase. These deals represent 37% of all VC transactions in MENA, the highest share ever recorded for Saudi Arabia.
E-Commerce and Fintech Dominate the Sectors
In terms of sectoral performance, e-commerce led the way, capturing 36% of the total capital deployed. This translates to $306 million (SAR 1.1 billion), showcasing strong consumer demand and a robust digital infrastructure.
Meanwhile, fintech took the lead in deal volume, securing 30 transactions—approximately 26% of the total deal count. This reflects growing innovation and confidence in the Kingdom’s financial technology landscape.
Vision 2030 Drives Growth
Dr. Nabeel Koshak, CEO and Board Member at Saudi Venture Capital Company (SVC), attributed this upward trend to Saudi Arabia’s commitment to Vision 2030. He stated:
“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 is a direct result of 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’s Role in Fostering Innovation
Founded in 2018, SVC operates under the SME Bank, a part of the National Development Fund. The company plays a crucial role in supporting startups and small to medium enterprises (SMEs) by investing in various private capital funds—ranging from venture capital and private equity to venture debt and private credit. Additionally, SVC provides direct investment to high-potential startups, covering stages from pre-seed to pre-IPO.
