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Saudi Arabia’s Venture Capital Investments Achieve 770% Growth

A night view of Riyadh, Saudi Arabia. (AP)
A night view of Riyadh, Saudi Arabia. (AP)
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Saudi Arabia’s Venture Capital Investments Achieve 770% Growth

A night view of Riyadh, Saudi Arabia. (AP)
A night view of Riyadh, Saudi Arabia. (AP)

A recent Saudi report revealed that the Kingdom’s venture capital investments achieved a growth of 770 percent, reaching a record-high of SAR 2 billion $548 million, up from SAR 236 million in 2018.

The Saudi Venture Capital Impact report also showed that the number of investors in Saudi startups rose by 192 percent, reaching 76 in 2021, up from 26 three years earlier.

The number of venture capital deals in Saudi startups also grew by 148 percent, to a new high of 139 deals, as compared to 56 VC deals in 2018.

The impact report showed that the strategy adopted by the Saudi Venture Capital Company succeeded over the past three years in increasing the number of investors in Saudi startups, encouraging existing and new financial companies to establish venture capital funds and contributing to closing the funding gap in investment rounds.

“The Kingdom of Saudi Arabia is witnessing an unprecedented growth in the quality and quantity in the deal flow of startups,” said Dr. Nabeel Koshak, CEO of Saudi Venture Capital (SVC).

“This is a result of the emergence of many innovative entrepreneurs, VCs, and angel investor groups, in addition to the availability of an advanced regulatory and legislative environment backed by effective government programs,” he added.

The Saudi Venture Capital Company is a government-owned firm, which was established in 2018 by the Monshaat Authority within the Financial Sector Development Program (FSDP) to stimulate venture investments by investing SAR 2.8 billion ($750 million).

The report noted that the total committed investments of SVC amounted to SAR 1.2 billion, while the total committed investments including partners is estimated at SAR 6.5 billion.

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UN Launches Cairo Declaration to Address Hunger in Arab Region

Palestinian children wait for food at a distribution center in Deir al-Balah, Gaza Strip, Tuesday, Dec. 17, 2024. (AP Photo/Abdel Kareem Hana)
Palestinian children wait for food at a distribution center in Deir al-Balah, Gaza Strip, Tuesday, Dec. 17, 2024. (AP Photo/Abdel Kareem Hana)
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UN Launches Cairo Declaration to Address Hunger in Arab Region

Palestinian children wait for food at a distribution center in Deir al-Balah, Gaza Strip, Tuesday, Dec. 17, 2024. (AP Photo/Abdel Kareem Hana)
Palestinian children wait for food at a distribution center in Deir al-Balah, Gaza Strip, Tuesday, Dec. 17, 2024. (AP Photo/Abdel Kareem Hana)

Rising conflicts, inflation, and climate change have worsened the food crisis in the Arab region, reaching record levels in 2023, according to six UN agencies.

The crisis now affects over 14% of the population, with early signs showing an even greater escalation this year.

To address this, the six UN agencies issued the “Cairo Declaration on Financing Agrifood Systems Transformation in the Near East and North Africa Region” on Wednesday.

The six UN agencies reaffirmed their commitment to working closely with development banks, the private sector, and national governments to boost financial resources for transforming food and agricultural systems in the Arab region, aiming to improve food security and nutrition.

These agencies—FAO, IFAD, UNICEF, WFP, WHO, and ESCWA—also proposed creating cooperative funding platforms, led by governments and developed with partners, to help meet the second Sustainable Development Goal of ending hunger.

The “Cairo Declaration” was issued alongside a joint report titled the 2024 NENA Regional Overview of Food Security and Nutrition. The report warned that the Arab region is still far from reaching its food security and nutrition targets for 2030.

In 2023, 66.1 million people—14% of the Arab population—were affected by hunger. The report showed that around 186.5 million people (39.4% of the population) faced food insecurity, with 72.7 million suffering from severe food insecurity.

Conflicts remain the main cause of food insecurity and malnutrition in the region, compounded by economic challenges, income inequality, and extreme weather events.

Food prices have worsened the crisis, with malnutrition rates in conflict-affected countries jumping to 26.4% in 2023—four times higher than the 6.6% in stable countries. Ongoing conflicts and droughts are expected to further degrade food security and nutrition.

FAO’s Assistant Director-General and NENA Regional Representative Abdulhakim Elwaer emphasized the need for improved public resource use and additional funding to positively impact food systems in Arab countries.

The agencies stress that the report’s findings will drive efforts to create more efficient, inclusive, and sustainable food systems in the region, benefiting both people and the planet.

Over a third of the Arab population struggles to afford healthy food, with 151.3 million people unable to cover basic nutritional needs. This issue is especially severe in conflict zones, where 41.2% of people can't afford a healthy diet.