PIF and MSA Capital plan to raise $1 billion to support emerging technology companies inMENA

MSA Capital, a Chinese venture capital firm, backed by the Saudi sovereign wealth fund PIF, aims to raise a substantial $1 billion to invest in promising tech startups in the Middle East region.

The tech scene in the Middle East is rapidly advancing, propelled by visionary leaders, strategic investments, and a growing tech-savvy population.

According to a study by UBS, digital economies in the region are expected to grow over fourfold, reaching approximately $780 billion by 2030.

Ben Harburg, Managing Partner at MSA Capital, stated, “Our goal is to participate in the advanced stages of startup development, providing significant investments in pre-IPO stages, paving the way for subsequent public market listings.

” Currently managing assets valued at $2.5 billion, the firm is backed by the SoftBank Vision Fund, a part of the Public Investment Fund (PIF).

This initiative comes amidst increased activity in venture capital in the Middle East, particularly in Saudi Arabia, where startups raised a staggering $1.3 billion in funding in 2023 alone.

These trends align with Saudi Vision 2030, aimed at diversifying and reducing reliance on oil in the Saudi economy.

MSA Capital seeks to fill the significant gap in the region’s investment landscape, where early-stage funding is more abundant compared to later stages.

With substantial capital and Saudi support, the company is poised to play a key role in developing and guiding promising tech projects towards their initial public offerings.

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