Saudi Arabia has maintained its first rank across Mena in terms of the amount of Venture Capital (VC) funding in the first half of 2024, which witnessed a total VC deployment of SR1.5 billion ($412 million).

 

This is according to the Saudi Venture Capital Company (SVC) which issued the "2024-H1 Saudi Arabia Venture Capital Report", a Saudi Press Agency (SPA) report said. 

 

According to the report published by the venture data platform MAGNiTT and sponsored by SVC, the kingdom captured the highest share of total VC funding in the Mena region in the first half of 2024, which accounted for 54% of the total capital deployed in the region, up from 38% in the first half of 2023.

 

E-commerce/retail tops

E-commerce/retail was the top sector in the kingdom in terms of VC funding, accounting for 52% of total funding, amounting to $215 million (SR806 million). FinTech continued to lead the kingdom's total number of deals, capturing 14% of deals in the first half of 2024.

 

SVC CEO and Board Member Dr Nabeel Koshak said: "We are proud that SVC's strategy contributed to the development of the kingdom's VC ecosystem. Through unwavering efforts, the kingdom maintained its leading position in the region, which comes as a result of the economic development witnessed by the kingdom with the support of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud and His Royal Highness the Crown Prince, through the launch of many governmental initiatives to stimulate the VC and startups ecosystem within the Saudi Vision 2030 programmes."

 

The CEO of MAGNiTT also commented that Saudi Arabia continues to make significant strides in fostering innovation and supporting a robust startup ecosystem.

He added that this progress is evident in the kingdom's deal flow, which accounted for 30% of H1 Mena deal activity, up from 24% in H1 2023.

 

Positive trend

MAGNiTT's data shows that KSA led H1 VC funding in Mena, while non-mega funding (deals less than $100 million) saw an impressive 84% YoY growth. This positive trend underscores the growth of investment in the foundational ecosystem, building a strong pipeline for future late-stage investments.

 

SVC is an investment company established in 2018. It is a subsidiary of the SME Bank, part of the National Development Fund (NDF). Through investments in funds and direct investments in startups and SMEs, it aims to stimulate and sustain financing for startups and SMEs from pre-seed to pre-IPO.--TradeArabia News Service