Venture capital activity in Saudi Arabia up 72% to near record $1 bln in 2022

The Kingdom of Saudi Arabia's flag

Venture capital (VC) activity in Saudi Arabia recorded growth nearing the record $1 billion mark in 2022, according to a recent report by MAGNiTT. 

VC rose 72% year-on-year (YoY), reaching $987 million in funding through 144 deals. Total transactions retreated 3% YoY – marking the first decline since 2017. 

The number of investors to finance Saudi-based startups increased by 30% YoY, to hit a record-high of 104 in 2022.

Saudi Arabia witnessed the largest number of mega rounds in one year across the MENA region, capturing 37% of the total funding seen over 2022.

The Kingdom recorded three mega deals: $170 million Series C by Foodics, $100 million Series B by Tamara, and $100 million Series C by TruKKer.

The country also recorded double the number of exits in 2022 compared to 2021 – maintaining the third place in terms of merger and acquisition (M&As) activity – accounting for 14% of all exit deals registered in the MENA region.

The table below shows the number of transactions and value of venture investments since 2018:

 * Updated Data

Saudi Arabia kept its second place by total value of venture investments across the MENA after the UAE, accounting for 31% of total amounts invested in the region.

The Kingdom ranked third by the number of deals, acquiring 23% of total number of deals. 

For top industries by number of deals in Saudi Arabia, fintech ranked first with $239 million, followed by food and beverage at $187 million.

The table below shows top sectors by venture investments value in 2022: