- First Saudi venture capital fund dedicated exclusively to the defense sector, valued at SAR 375 million.
- Focused on localizing advanced defense manufacturing through trusted allied technologies.
Directly aligned with Vision 2030’s target of 50% defense industry localization.
MASNA Ventures has announced the launch of its first investment vehicle, MASNA Ventures Fund I, with a total value of SAR 375 million (approximately $100 million). The fund is the first venture capital initiative in the Kingdom dedicated specifically to the defense sector. The announcement coincided with the opening day of the World Defense Show in Riyadh, underscoring the strategic timing tied to the rapid growth of Saudi Arabia’s defense ecosystem.
A Strategic Fund to Advance Defense Technology Localization
The fund aims to accelerate advanced defense manufacturing localization in Saudi Arabia by investing in Saudi startups built around defense technologies from the United States and other trusted allied nations. The strategy goes beyond technology transfer; it focuses on moving systems from limited deployment into large-scale production within the Kingdom.
This approach strengthens Saudi Arabia’s industrial defense base, reduces reliance on foreign supply chains, and supports faster production, adaptability, and operational readiness.
Focus on Newly Established Saudi Companies via SR2 Defense Systems
MASNA Ventures will primarily invest in Saudi companies formed through SR2 Defense Systems, the first private-sector-led U.S.–Saudi defense platform designed specifically to support industrial localization.
In addition, the fund will pursue other investment opportunities across Saudi Arabia’s evolving defense ecosystem, as infrastructure and industrial capabilities continue to expand.
Experienced Leadership in Venture Capital and Defense Industries
MASNA Ventures was founded by Managing Partners Lucian Ziegler and Nihal Farooqi, who bring extensive venture capital experience across Saudi, European, and U.S. markets, along with a strong track record in defense and manufacturing sectors. The team works closely with Saudi defense industry stakeholders and capability partners to finance production-ready systems within the Kingdom.
Lucian Ziegler, Co-Founder and Managing Partner, stated:
“MASNA Ventures aims to transform technological superiority into practical defense capability by supporting the manufacturing of globally trusted systems inside the Kingdom, enhancing production speed, adaptability, and deployment.”
Supporting Vision 2030 Defense Industry Goals
The fund aligns with Saudi Vision 2030, which seeks to localize 50% of defense spending by 2030. MASNA Ventures also benefits from growing Saudi–U.S. defense ties, facilitating the transfer of advanced technologies and the development of domestic production capacity.
The firm expects to generate an economic multiplier of at least 5x within the Saudi economy for every riyal invested, reflecting the broader industrial and economic impact of defense localization.
Investment Across Supply Chains, AI, and MRO
Beyond core defense manufacturing, the fund targets adjacent sectors, including:
Defense supply chains
Procurement and logistics
Maintenance, Repair, and Overhaul (MRO) for defense and aviation systems
Industrial artificial intelligence applications
Broader industrial investments within the defense ecosystem
This diversified approach supports the development of a comprehensive defense ecosystem in Saudi Arabia, spanning manufacturing, services, and future technologies.
