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Saudi Arabia Tops MENA Venture Capital Rankings for 2023

King Abdullah Financial Center in the capital, Riyadh (SPA)
King Abdullah Financial Center in the capital, Riyadh (SPA)
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Saudi Arabia Tops MENA Venture Capital Rankings for 2023

King Abdullah Financial Center in the capital, Riyadh (SPA)
King Abdullah Financial Center in the capital, Riyadh (SPA)

Saudi Arabia achieved first rank across MENA for the first time regarding the amount of Venture Capital (VC) funding in 2023, according to MAGNiTT, the MENA-based venture data platform.
The data confirmed that the Kingdom captured the highest share of total VC funding in the MENA region in 2023, accounting for 52% of the total capital deployed, up from 31% in 2022.
The funding deployed to Saudi Arabian startups grew by 33% in 2023 compared to 2022, confirming the attractiveness of the Saudi market, enhancing its competitive environment, and consolidating the strength of its economy as the largest in the MENA region.
CEO and Board Member at Saudi Venture Capital (SVC) Nabeel Koshak stated that the Kingdom's ascent in the regional VC landscape directly results from various government initiatives aimed at energizing the VC and startup ecosystem, part of Vision 2030 programs.
Koshak explained that the rise is further supported by enhancing the legislative and regulatory environment for the ecosystem, coupled with the emergence of dynamic investors from the private sector and innovative entrepreneurs.
He added that SVC plays a strategic role in advancing the VC ecosystem in the Kingdom, which has risen from being ranked fourth in the region for VC funding in 2018 to the top position in 2023.
The investment in Saudi startups has grown 21-fold in 2023 compared to 2018, the year SVC was established.
At SVC, "we remain committed to spearheading the evolution of the VC ecosystem in Saudi Arabia by encouraging private investors to support startups and SMEs, facilitating rapid and substantial growth," said Koshak.
He noted that the approach is integral to diversifying the national economy and realizing the objectives of Saudi Vision 2030.
SVC, established in 2018, is an investment company and an SME Bank subsidiary affiliated with the National Development Fund.
SVC's mission is to foster and sustain financing for startups and SMEs, from pre-seed to pre-IPO stages, through investments in funds and co-investment in startups and SMEs.

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Saudi PIF, Elm Sign Agreement for Elm to Acquire Thiqah

The Public Investment Fund (PIF) logo
The Public Investment Fund (PIF) logo
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Saudi PIF, Elm Sign Agreement for Elm to Acquire Thiqah

The Public Investment Fund (PIF) logo
The Public Investment Fund (PIF) logo

The Public Investment Fund (PIF) and Elm, a leading digital solutions company, have signed a share sale and purchase agreement for Elm to acquire Thiqah Business Services Company – a firm specializing in smart technology solutions for business services – in a deal valued at $907 million (SAR3.4 billion).

Completion is expected once regulatory approvals are obtained and certain conditions are satisfied under the agreement.

According to a PIF statement, the transaction will further support a thriving local information and communication technologies (ICT) ecosystem and contribute to PIF’s strategy which aligns with the Vision 2030 aim of using digital transformation to create the high-skills jobs of the future and further grow the Saudi economy. The deal will enhance the growth of the ICT sector, drive innovation, and localize technologies and knowledge by strengthening Elm to lead the sector at the national level, maximizing the value chain by providing a wide range of ICT products, services and devices.

The ICT sector is among PIF’s strategic priority investment sectors, being a key enabler of other key sectors, including entertainment, financial services, healthcare, transport and logistics, and utilities and renewables, the statement said.

“PIF is committed to enabling the creation of national champions which contribute to driving the development and growth of the Saudi economy. PIF’s sale of Thiqah to Elm will contribute to enhancing the vital role of the ICT sector and will strengthen efforts to localize technology and drive innovation,” Head of Technology and Media, MENA Investments, at PIF Shahd Attar said.

CEO of Elm Mohammad Abdulaziz Alomair said: “This is an important transaction for Elm, as it enhances integration, rationalizes spending, increases profitability, and provides qualitative advantages for both parties and the market.”

“The combined integrated entity will be better able to create advanced national smart services to serve market requirements and clients’ needs. It will also contribute to facilitating innovative operations and capabilities to develop products in the business field with cost advantages while achieving economies of scale,” he added.