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Saudi Arabia Sees Leap in Venture Capital Investment amid Pandemic

A general view of Riyadh, Saudi Arabia. (Reuters)
A general view of Riyadh, Saudi Arabia. (Reuters)
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Saudi Arabia Sees Leap in Venture Capital Investment amid Pandemic

A general view of Riyadh, Saudi Arabia. (Reuters)
A general view of Riyadh, Saudi Arabia. (Reuters)

Saudi Arabia has reported a 42 percent leap in investment with venture capital in emerging projects during Q1 2020, experts in sector revealed.

They attributed this activity to investors taking advantage of the unstable conditions caused by the coronavirus to close more deals.

Chairman of Nama Al Baraka Holding Rayan Qutub said the Kingdom’s market ranks third after the United Arab Emirates and Egypt.

She made her remarks at a virtual meeting, attended by Asharq Al-Awsat, on “The Future of Investing in Technology.”

Qutub said Saudi Arabia has closed deals worth SAR251 million ($67 million), representing 92 percent growth in 2019, while it recorded a 35 percent increase in 2018.

It reported 41 investors in 2019, who invested in various sectors, mainly e-commerce, delivery, transportation and education, according to Qutub.

He pointed out that there is a prominent contribution to business accelerators, foremost of which was Misk500, Seedstars, Vision Ventures and Startups 500. While the most prominent investors were Oqal Group, Saudi Venture Capital Company (SVC), Derayah Financial Company and Saudi Aramco.

CEO of SVC Nabeel Koshak highlighted three factors that have led to the steady growth in the Kingdom’s venture capital market over the past three years.

The first is the Kingdom's Vision 2030, which encourages startups, small and medium-sized enterprises and entrepreneurship.

“There is an acceleration in support and motivation activities and the development of government systems such as the e-commerce system, bankruptcy system and others, as well as incentive programs, such as the Venture Capital Fund and the Public Investment Fund initiative,” he noted.

According to Koshak, the pandemic has accelerated the use of technology, including e-government.

He pointed out that the Saudi Arabian Monetary Authority (SAMA) has licensed eight emerging financial technology companies during the current crisis to find loan and investment solutions and debt instruments to contribute to finding solutions for companies.

One of the advantages of the pandemic, he stressed, is helping correct the venture capital sector in regards to corporate assessment, inflation and exaggeration in financial estimates.

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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.