RIYADH: According to a new analysis, Saudi Arabia has grown its venture capital compared to its economy for four years in a row, which is unprecedented among its peers. According to MAGNiTT’s newly released Macro Meets VC research, the Kingdom was the only sizable market in the sample to see consistent yearly increases in VC intensity between 2020 and 2023, in contrast to the more sporadic deal flow observed throughout Africa and portions of Southeast Asia.
Amidst global tightening, funding somewhat decreased in 2024; nonetheless, Saudi Arabia’s multi-year increasing trend indicates a continuing commitment to innovation-led diversification. As it works to diversify its economy in accordance with the Vision 2030 blueprint, the Kingdom is progressively solidifying its standing as a model for policy-driven venture capital growth in developing economies.
The research states that “Saudi Arabia is becoming the model for long-term, policy-driven ecosystem building,” emphasising the role that local funds and sovereign limited partners have had in protecting the Kingdom from some of the instability that other rising venture markets have experienced. Saudi Arabia’s five-year average VC-to-GDP ratio was 0.07 percent, according to the MAGNiTT statistics.
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