Saudi Arabia’s corporate venture capital (CVC) arms are playing a crucial role in driving innovation and economic diversification, aligning their investments with national and corporate objectives.
Between 2020 and Q3 2024, corporate investors accounted for 27% of the 1,361 unique investors in MENA, deploying approximately $380 million, according to MAGNiTT. Saudi Arabia led the region, with CVCs making up 30% of local investors.
Key players like Aramco Ventures and stc’s tali ventures exemplify this strategy, fostering startups that align with Vision 2030 while supporting their parent companies’ goals. Aramco Ventures recently secured an additional $4 billion in funding, bringing its total capital to $7 billion.
CVCs are targeting sectors that integrate seamlessly with corporate operations. tali ventures prioritizes fintech, AI, and blockchain, reinforcing Saudi Arabia’s ambitions in the digital economy, while Aramco’s Wa’ed Ventures focuses on digital transformation.
Beyond funding, CVCs provide industry expertise, supply chain networks, and market access, giving startups a competitive edge. Saudi Arabia’s venture capital market is booming, with VC funding reaching $987 million in 2022, and CVCs accounting for 32% of all deals—a rise from 15% in 2018.
With banks like SNB Capital and Riyad Bank entering the space, Saudi Arabia’s VC ecosystem is evolving into a global private capital hub, reinforcing the Kingdom’s technology and innovation leadership.