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Venture Capital Investments Climb 65% in Saudi Arabia

A leap in investment growth is registered for technology startups in Saudi Arabia in H1 2021 (Asharq Al-Awsat)
A leap in investment growth is registered for technology startups in Saudi Arabia in H1 2021 (Asharq Al-Awsat)
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Venture Capital Investments Climb 65% in Saudi Arabia

A leap in investment growth is registered for technology startups in Saudi Arabia in H1 2021 (Asharq Al-Awsat)
A leap in investment growth is registered for technology startups in Saudi Arabia in H1 2021 (Asharq Al-Awsat)

Investments worth SAR 630 million ($168 million) have been channeled to Saudi startups in H1 2021, achieving a whopping 65% growth rate compared to the same period last year, a venture capital investment report revealed.

In its H1 2021 Saudi Arabia Venture Capital report, compiled in co-operation with Saudi Venture Capital Company (SVCC), the data platform “Magnitt” explained that even though 2020 was a positive year for daring investments in the Kingdom, 2021 was the year to show record-breaking investment flows into Saudi startups.

The $168 million pumped into Saudi startups in H1 2021 accounted for about 94% of the money extended to the Kingdom’s startups in 2020.

Saudi Arabia surpassed Egypt to be ranked second by share of total Middle East and North Africa (MENA) funding, while accounting for 21% of the region’s venture capital transactions.

Moreover, the Kingdom accounted for 14% of venture capital funding invested in MENA startups in H1 2021, according to Magnitt.

Fintech startups raised 1700% more capital YoY. Together, FinTech and food and beverage startups accounted for 44% of the capital invested in Saudi Arabia in the first half.

About 75% of investors that backed startups in Saudi Arabia in the first half were based within the country, the report said.

Governor of Saudi Arabia’s General Authority for Small and Medium Enterprises (Monshaat) Saleh Alrasheed confirmed the Authority’s interest in offering services, programs, and supporting initiatives to entrepreneurs.

The Authority does so to build SME market competition and boost growth. Invigorating financing for SMEs is also an objective of Monshaat’s policies.

Alrasheed added that the establishment of the SVCC in 2018 had significantly and directly contributed to developing Saudi Arabia’s venture capital investment landscape.

SVCC is a government company established by Monshaat within the Financial Sector Development Program. The company aims to develop a venture capital system by investing 2.8 billion riyals ($750 million).

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Kazakhstan Anticipates Completion of ACWA Power’s Wind Energy Project

ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
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Kazakhstan Anticipates Completion of ACWA Power’s Wind Energy Project

ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)

Kazakh Ambassador to Saudi Arabia, Madiyar Menilbekov, announced that his country eagerly anticipates the completion of ACWA Power’s first wind energy project in the Zhetysu region. This project, led by the Saudi company, will have a total capacity of 1 gigawatt and an investment value of approximately $1.5 billion.
ACWA Power announced last March that it would execute this project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. Construction is expected to commence in the summer of 2025.
Menilbekov told Asharq Al-Awsat that both countries “have established a solid political dialogue at a high level, along with cooperation in trade, economics, culture, and parliamentary exchange.” He expects this high-level dialogue to continue at the upcoming COP 16 summit in Riyadh.
He further emphasized that trade, economic, and investment cooperation is the cornerstone of the bilateral relationship, noting: “Both countries share a similar outlook on economic development, reflected in Kazakhstan’s Strategic Program 2050 and Saudi Arabia’s Vision 2030.”
The Kazakh ambassador highlighted that last September, the Islamic Development Bank approved financing for projects in Kazakhstan focused on water resource development, enhancing agricultural productivity, and ensuring food security, with total allocations amounting to $1.153 billion.
In tourism, he noted significant progress toward establishing direct flights between the two countries. Air Astana launched flights between Shymkent and Jeddah in October and announced a route from Almaty to Medina, bringing the total to six direct flights. Additionally, Kazakh companies in construction, oil services, and IT have recently opened offices across Saudi Arabia. The Farabi Innovation Center was inaugurated in Riyadh to attract talented entrepreneurs and innovative startups from Nur-Sultan and Central Asia to the Kingdom.
Menilbekov explained that since gaining independence, Kazakhstan’s GDP has grown 17-fold, with foreign trade reaching $139.8 billion last year. He added: “Since 1993, Kazakhstan has attracted a total of $441 billion in foreign direct investment, allowing our economy to remain one of the most dynamic in Central Asia and the post-Soviet region.”
According to Menilbekov, Kazakhstan is the world’s largest producer and exporter of natural uranium, responsible for more than 45% of global production and exports. He also noted that Kazakhstan produces 18 of the 34 raw materials identified by the European Union as “critical materials.”
Menilbekov further mentioned that Kazakhstan possesses 200 million hectares of agricultural land, with about 100 million hectares currently under regular cultivation.