Investments in Saudi firms increased by 72% in 2022 to $987M

Capital invested in Saudi Arabia’s firms indicates an increase of 72% between 2021 and 2022, registering $987 million, as per the 2022 Saudi Arabia Venture Capital (SVC) report by MAGNiTT.

The number of active investors in Saudi Arabia also increased from 80 to 104 between 2021 and 2022, which indicates an annual 30% hike. Saudi-based investors account for an estimated 60% of the total investors, added the report.

Overall, startups in the Middle East and North Africa (MENA) region reported notable investment growth. Among the other countries in the region, Saudi Arabia has recorded the highest growth rate in 2022, securing a third of MENA’s $3.2 billion funding last year.

With this, Saudi stands as the second largest venture capital market in MENA in terms of total funding and transactions. The United Arab Emirates (UAE) ranks first.

Venture capital investments in the region are paying attention to segments such as fintech, healthcare, food and beverage (F&B), ecommerce, and advanced technology.

The country also witnessed a total of 10 exits in 2022, which indicate a double-digit rise in entries from 2021. The highest number of exits were recorded in ecommerce.

Since its inception in 2018, SVC, which is a government venture capital firm, has supported a total of 30 funds and 5 angel investor groups that have invested in 401 startups and small and medium sized enterprises (SMEs).

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