Saudi Arabia has emerged as a trailblazer in the Middle East and North Africa (MENA) region, securing a significant milestone in venture capital (VC) funding for the year 2023. According to data from MAGNiTT, the MENA-based venture data platform, the Kingdom achieved a remarkable 52 percent share of total VC funding in the region. This marked increase from the 31 percent held in 2022 reflects the nation’s commitment to the goals outlined in Vision 2030, a comprehensive plan to diversify its economy and stimulate growth in various sectors.
The success can be attributed to a combination of factors, including government initiatives launched under Vision 2030, an evolving legislative and regulatory environment conducive to investment, and the active participation of the private sector and innovative entrepreneurs. Nabeel Koshak, CEO and board member at Saudi Venture Capital (SVC), expressed pride in the organization’s significant contribution to the development of the VC ecosystem in the Kingdom. Under SVC’s strategic focus on stimulating private investors to support startups and small and medium enterprises, Saudi Arabia has risen from the fourth position in 2018 to the top spot in 2023, with funding for regional startups experiencing a staggering twenty-one-fold increase compared to 2018. The mission of SVC, established in 2018, involves invigorating and sustaining financing for startups and SMEs from pre-seed to pre-initial public offering stages, further solidifying Saudi Arabia’s prominence in the MENA venture capital landscape.