Saudi Arabia leads regional VC funding with $1.4B deals in 2023

The Kingdom of Saudi Arabia's flag

The value of venture capital (VC) funding in Saudi Arabia rose 33% year-on-year (YoY) to $1.38 billion in 2023, MAGNiTT said in its “MENA Venture Investment Summary” for 2023.

The number of deals reached 125 last year.

VC funding in Saudi Arabia accounted for 52% of the total capital deployed in the MENA region in 2023, increasing from 30% in 2022.

The following table shows the number of deals and value:

The data also showed that the Kingdom witnessed a record number of mega deals, with four deals raising a combined $879 million in 2023, a 138% YoY growth.

The following table shows the largest VC deals announced in Saudi Arabia during 2023:

Saudi Arabia secured the first place in the MENA region in VC value, commanding a 52% share of total funding, followed by the UAE with $691 million.

Meanwhile, the Kingdom accounted for 26% of the total deals in the region, taking second place after the UAE.

Fintech was the most preferred sector, capturing $704 million of the Kingdom’s total VC funding in 2023, a rise of 181% YoY. The sector constituted 51% of the total VC investment in the Kingdom, thanks to Tabby and Tamara deals. 

E-commerce came second, with about $428 million, increasing 153% YoY. The sector accounted for 31% of total VC investments.

The table below shows the top five sectors in terms of VC value during 2023: