Saudi Startups Draw Bulk of MENA Venture Capital

Venture capital funds focused on the Middle East and North Africa are sitting on roughly USD 1.45 billion in undeployed capital, with Saudi-based startups among their leading targets, Cumulative fund targets across the region now exceed USD 1.6 billion after new funds launched in 2026.

Funds launched in 2026 deployed about USD 60 million in the first half of the year. Of that, USD 33 million went to Saudi startups, USD 7 million to UAE startups, and USD 20 million to other MENA markets — underscoring the Kingdom's central role in the regional startup scene.

Saudi Arabia was the region's largest venture destination in 2025. Saudi-headquartered startups raised about USD 1.72 billion across 257 disclosed deals, a 145% year-on-year jump in capital and a 45% rise in deal count. The Kingdom accounted for roughly half of all capital deployed across the Middle East, where regional VC funding reached about USD 3.43 billion across 581 deals.

A softer first half in 2026

Despite the strong run, Saudi VC funding fell sharply in the first half of 2026 — dropping to USD 219 million from USD 860 million in the same period of 2025, a 74% decline, with deal count falling from 114 to 72. No Saudi rounds above USD 100 million were recorded, and even excluding such mega-rounds, funding slipped about 51%.

International interest remains strong: by early 2026, foreign investor participation in Saudi VC deals had grown around 65% year-on-year, and Saudi startups captured about 37% of all MENA startup transactions in the prior year.

Major capital pools continue to back local companies, including Wa'ed Ventures (USD 500 million), the Public Investment Fund's Jada program (about USD 1 billion), and Aramco Ventures, with a total corporate venturing allocation of USD 7.5 billion, including a USD 2 billion late-stage fund. For residents and entrepreneurs, the available dry powder signals continued opportunity in the Kingdom's growing startup economy.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving