‎Saudi Arabia leads region in venture capital in H1 2023 at nearly about $446 mln

‎Saudi Arabia leads region in venture capital in H1 2023 at nearly about $446 mln

The value of venture capital (VC) funding in Saudi Arabia declined 27% year-on-year (YoY) to $446 million during the first six months of 2023, according to a report by MAGNiTT.

The number of deals also fell 44% YoY to 54 in H1 2023.

With government support, Saudi Arabia is becoming a more attractive destination for startups and is well-positioned to become a leading hub for innovation in the Middle East as several initiatives have been launched to support the VC space.

The Kingdom recorded mega deals worth $289 million in the first six months, driven by two transactions of $156 million and $133 million by e-commerce/retail startups Floward and Nana, respectively. The two deals represent 65% of the total deals in H1 2023, with Floward and Nana individually making 35% and 30% of the total deals.

The following table shows the number of deals and value:

*Updated data

**Change compared to H1 2022

Saudi Arabia secured the first place in the MENA region in value terms, commanding a 42% share of total funding, followed by Egypt at $305 million.

Meanwhile, the Kingdom accounted for 28% of the total deals in the region, taking the second place after the UAE.

E-commerce was the most preferred sector, capturing $368 million of