Startups in the Kingdom raise 1.4 billion riyals in VC rounds

Saudi Arabia received larger venture capital investments than the UAE for the first time last year, as government-backed funds boosted spending in the sector. Saudi Arabia dominates the technical scene with a financing share of up to 52%

Startups in the Kingdom raised $1.4 billion, an increase of 33% over the previous year and just over half of the total venture capital funding raised in the Middle East and North Africa in 2023, according to venture capital data platform Magnit.

It is noteworthy that the Kingdom ranked 12th in the venture capital availability index among the most prominent sub-indices in the Global Competitiveness Yearbook report issued by the Global Competitiveness Center.

This arrangement comes as a reflection of the keenness of the General Authority for Small and Medium Enterprises “Monshaat” to create a competitive environment that encourages the entry of new enterprises into the market and enables small and medium enterprises to grow and expand, and to find appropriate financing solutions and investment opportunities, in order to raise their contribution to the gross domestic product to 35% in 2030 AD.

The venture investment initiative launched by “Monshaat” contributed to the Kingdom’s progress in the venture capital availability index, especially as it aims to stimulate capital financing for small and medium enterprises and entrepreneurs, and to enhance ways of investing in emerging enterprises during their various stages of growth, and to exploit local capabilities from By investing in companies in the early and growth stages with the aim of creating financial returns for investors and achieving strategic returns that serve the growth of the economy in the Kingdom of Saudi Arabia.