For the first time in a new historical achievement, the Kingdom of Saudi Arabia (KSA) topped across Middle East and North Africa (MENA) region in terms of the amount of Venture Capital (VC) funding in 2023.
This is according to Dubai-based MAGNiTT, which specializes in issuing data on venture investment in emerging companies in the region.
The Kingdom acquired the largest share, which amounted to 52 percent of the total venture investment in the region, compared to 31 percent in 2022.
The Kingdom achieved growth in total venture investment by 33 percent in 2023 compared to 2022.
The achievement signifies the Kingdom’s economic and financial sector growth, in line with Saudi Vision 2030’s objectives to enhance the national economy, Saudi Press Agency (SPA) reported.
Saudi Venture Capital (SVC) CEO Dr. Nabeel Koshak attributed the success to the dynamic economic climate bolstered by King Salman bin Abdulaziz Al-Saud and Crown Prince Mohammad bin Salman.
Koshak emphasized the role of a supportive legislative and regulatory environment, increased private sector investment, and innovative entrepreneurs in driving growth.
He said, “We are proud that the SVC strategy contributed to the development of the venture investment system in the Kingdom, as the Kingdom was ranked fourth in the region in terms of the value of venture investment in 2018, to lead the countries of the region in 2023.”
In recent years, venture investment in Arab Gulf countries is seen as a strategy to diversify their economy and reduce dependence on crude oil revenues.
Venture investing is a financing method that offers funding to high-growth early-stage startups in exchange for equity or ownership stake.
