Report: Saudi Arabia Leads MENA in VC Funding in First Half of 2024

Saudi Arabia has once again solidified its position as a frontrunner in the MENA region when it comes to venture capital (VC) investments. According to a report by MAGNiTT, the Kingdom topped the charts in terms of the value of VC investments during the first half (H1) of 2024, attracting an impressive 2 million. This may have been a slight decrease of 7% year-on-year, but it still is a significant amount that signals confidence in the Saudi market.

One standout statistic from the report is that around 32% of the total VC investments in Saudi Arabia during H1-24, or 0 million, was secured by Salla. This highlights the growing prominence and success of startups in the country, as they continue to attract funding from investors. The Kingdom’s contribution to MENA’s total funding spiked to 54% in H1-24 from 38% in H1-23, showcasing a remarkable increase in just a year.

In terms of total deals, Saudi Arabia accounted for 30% of the region’s transactions in the first half of 2024, up from 25% in the same period the previous year. This indicates a growing interest and confidence from both local and international investors in the Saudi market, which is seen as a hub for innovation and entrepreneurship in the region.

Following behind Saudi Arabia, the UAE secured the second spot in terms of VC funding, attracting 5 million during H1-24. This was a decrease of 19% year-on-year, but the country still remains a key player in the VC investment landscape in the MENA region. Egypt ranked third with million in VC funding, experiencing a significant decline of 75% year-on-year. Despite this decrease, Egypt continues to be a notable player in the startup ecosystem in the region.

Morocco and Kuwait also showed promising growth in VC funding during H1-24, securing the fourth and fifth spots regionally. Morocco saw a 25% increase year-on-year, reaching million in VC investments, while Kuwait experienced an impressive 259% surge year-on-year, attracting million in funding. This highlights the potential and opportunities for startups in these countries to attract investment and grow their businesses.

Looking back at 2023, Saudi Arabia, the UAE, and Egypt dominated the VC funding landscape in MENA, accounting for a whopping 92% of total investments. This underscores the importance of these three countries in driving innovation, growth, and entrepreneurship in the region.

Overall, the report by MAGNiTT paints a positive picture of the VC investment landscape in the MENA region, with Saudi Arabia leading the way in attracting funding and supporting the growth of startups. As the Kingdom continues to focus on diversifying its economy and promoting innovation, it is likely to remain a key player in the venture capital scene in the region. Investors and entrepreneurs looking for opportunities in the MENA startup ecosystem should keep an eye on Saudi Arabia and other promising markets in the region for potential investment prospects.