Venture investment in the Kingdom to hit 1.5 billion riyals H1, 2024

A report on venture investment in the Kingdom of Saudi Arabia revealed that the Kingdom maintained its lead in the Middle East and North Africa region as having the highest value of venture investment in the first half of 2024, which witnessed the implementation of investments amounting to 1.5 billion riyals ($412 million) in emerging companies. Saudi.

The report issued today by MAGNiTT, a data platform for venture investment in emerging companies, and sponsored by SVC, confirmed that the Kingdom acquired the largest share, amounting to 54%, of the total venture investment in the Middle East and North Africa region in the first half of 2024, compared to 38% in First half of 2023.

The report showed that the e-commerce sector in the Kingdom was the highest in terms of the value of venture investment in the first half of 2024, as the sector accounted for 52% of the total venture investment with a value of $215 million (806 million riyals). On the other hand, the financial technology sector continued to grow. It topped the scene in terms of the number of deals in Saudi Arabia, as the sector accounted for 14% of the number of deals in the first half of 2024.

Dr. Nabil bin Abdul Qadir Koshak, CEO and member of the Board of Directors of SVC, expressed his pride in the contribution of SVC’s strategy to the development of the venture investment system, and thanks to the continuous efforts, the Kingdom has maintained its leadership among countries in the region, as this comes as a result of the economic and investment movement that the Kingdom is witnessing with the support of the Custodian of the Two Holy Mosques, and His Highness the Crown Prince. Covenant – may God protect them – through the launch of many government initiatives stimulating the venture investment system and emerging companies within the framework of the Kingdom’s Vision 2030.

For his part, Philip Bahoshi, CEO of MAGNiTT, confirmed that the Kingdom continues to make great strides in promoting innovation and supporting a strong startup ecosystem, and this development is evident in the flow of venture capital deals in the Kingdom, which constituted 30% of the deal activity of the first half of 2024 in the region. Middle East and North Africa, compared to 24% in the first half of 2023.

MAGNiTT data shows that the Kingdom topped venture investment in the region, while non-mega investments (deals under $100 million) saw growth of 84% year-on-year. This positive trend confirms the growth of early-stage investment, building a strong path for future investments. In the late stages.

It is noteworthy that SVC is an investment company established in 2018 and affiliated with the Small and Medium Enterprises Bank, affiliated with the National Development Fund. The company aims to stimulate and sustain financing for emerging companies and small and medium enterprises from the pre-establishment stage to before the initial public offering by investing in funds, and investing Directly in startups and small and medium enterprises.