Saudi Arabia’s venture capital ecosystem reached new heights in the first half of 2025, securing a record total VC investment of $860m (SAR3.2bn), according to the newly released “H1 2025 Saudi Arabia Venture Capital Report” by MAGNiTT and sponsored by Saudi Venture Capital (SVC). This represents a 116 per cent increase compared to H1 2024 and surpasses the Kingdom’s total VC funding for the entire year of 2024.
The report highlights that Saudi Arabia retained its position as the top recipient of venture capital in the MENA region, accounting for 56 per cent of the region’s total capital deployed. The achievement underscores the Kingdom’s growing appeal as a VC destination, supported by a competitive investment landscape and its status as the region’s largest economy.
Deal activity also hit a new milestone, with Saudi Arabia recording 114 VC deals in H1 2025—a 31 per cent increase from the same period last year. This figure represents 37 per cent of all deals across MENA, marking the Kingdom’s highest-ever share of regional deal flow.
Sector-wise, e-commerce led the way in terms of capital raised, attracting $306m (SAR1.1bn) and accounting for 36 per cent of total VC deployment in the Kingdom. Fintech remained the most active sector by number of deals, with 30 transactions, representing 26 per cent of all VC deals during the first half of the year.
Commenting on the report, Dr. Nabeel Koshak, CEO and Board Member of SVC, said: “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 directly results from the country’s commitment to realising the Saudi Vision 2030, which emphasises fostering entrepreneurship and stimulating investment in startups from early to later stages.”
Read: A VC’s perspective on the GCC’s future workforce
Established in 2018, SVC is a subsidiary of the SME Bank, which falls under the National Development Fund. The company plays a key role in supporting Saudi Arabia’s startup and SME sectors by investing in private capital funds such as venture capital, private equity, venture debt, and private credit, along with direct investments in startups and SMEs at various growth stages.
