Venture capital investments jump 244% in the first half of 2022

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Saudi Gazette report

Riyadh — Venture capital investment in Saudi Arabia has seen robust growth, reaching 244% in the first half of 2022 compared to the same period last year.

Venture capital investments exceeded total funds invested in Saudi startups in the whole of 2021, achieving a record SR2.19 billion worth of investments in Saudi startups.

According to the MAGNiTT Venture Capital (VC) investment report, the first half of 2022 saw unprecedented growth in venture capital investments in the Kingdom. MAGNiTT is a leading community and data platform for startups, investors, businesses and enablers.

The report states that although 2021 was a positive year for VCs in the Kingdom, the first half of 2022 broke a new record by showing significant growth in the value of VCs in the first half.

Due to the number of agreements concluded by Saudi Arabia, which amounted to 79, it moved from third to second place among the countries of the Middle East and North Africa region, achieving a growth of 36% compared to the first half of 2021.

It is worth mentioning that the Kingdom managed to maintain its position as the second market to attract venture capital among the countries of the region during the first half of 2022.

While the venture capital system in Saudi Arabia also registered a new record participation of 88 investors in the first half of 2022, which increased the number of investors by 126% compared to the first half of 2021, when 42% of investors came from outside the Kingdom.

Nabeel Koshak, CEO of the Saudi Venture Capital Company (SVC), said the establishment of Saudi VC in 2018 directly contributed to the development of the VC ecosystem in the Kingdom, through which it helped stimulate investment in mutual funds, in addition to investing in partnership with groups of angel investors and fund managers.

Over the past few years, Saudi Arabia has seen record growth in venture capital investment, Koshak said, adding that it had recently launched several new initiatives as part of the Kingdom’s Vision 2030, which will help to stimulate venture capital and the growth of emerging companies, thus contributing to the emergence of a greater number of venture capital funds and groups of angel investors.

“Saudi Arabia has always been an attractive market for entrepreneurs and investors whether from inside or outside the Kingdom due to the huge size of this market.” Koshak added.

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