Saudi Arabia Leads Startup Investments in the Middle East and North Africa for 2023
In 2023, the Kingdom of Saudi Arabia achieved a significant milestone in the field of venture investment in the Middle East and North Africa region, surpassing its previous records for the first time, according to reports from MAGNiTT, a platform specializing in analyzing and publishing data on venture investments in regional startups. This major development is a clear indication of the progress the Kingdom is making across various economic and financial sectors, aligning with the goals of Saudi Vision 2030 aimed at developing and enhancing the national economy.
As per MAGNiTT’s data, Saudi Arabia ranked first in the region in terms of venture investments in 2023, capturing 52% of the total investments, compared to 31% in 2022. The Kingdom witnessed a significant 33% growth in venture investment value compared to the previous year. These figures highlight the attractiveness of the Saudi market and its ability to enhance the competitive environment, reinforcing the Kingdom’s position as the largest economy in the region and a key player on the global stage, both as a member of the G20 and the BRICS group.
Dr. Nabil bin Abdul Qader Koshak, CEO and board member of “SVC”, stated that Saudi Arabia’s lead in regional venture investments is a result of the dynamic economic and investment activities in the Kingdom, supported by King Salman bin Abdulaziz Al Saud, the Custodian of the Two Holy Mosques, and the Crown Prince. This success is attributed to efforts in launching government initiatives that stimulate venture investments and support startups within the framework of Saudi Vision 2030, in addition to developing legislative and regulatory frameworks to energize the ecosystem and increase engagement from private sector investors and innovative entrepreneurs.
Koshak also spoke about his pride in “SVC”‘s role in developing the Kingdom’s venture investment ecosystem, noting that the company has been actively contributing to this field since its establishment in 2018. He confirmed that investments in startups have seen increasing growth, with the capital invested in this sector multiplying 21 times in 2023 compared to the year of SVC’s foundation.
Koshak affirmed SVC’s ongoing commitment to leading and stimulating the venture investment sector in the Kingdom, highlighting the company’s efforts to encourage private sector investors to provide necessary support to startups and small and medium-sized enterprises (SMEs), aligning with the goals of Saudi Vision 2030 for rapid and sustainable growth that contributes to diversifying the national economy.
It is worth mentioning that “SVC” is an investment company established in 2018 under the auspices of the Small and Medium Enterprises Bank affiliated with the National Development Fund. This company aims to stimulate and support the sustainability of financing startups and SMEs from the establishment stage to pre-initial public offering, by investing in funds and directly participating in startups.
