Venture capital in Saudi Arabia falls 74% to $219M in H1 2026

Saudi Arabia’s venture capital (VC) activity slowed in H1 2026 following strong performance in 2025, amid a global decline in dealmaking and the absence of mega deals.

The value of VC investments fell 74% to $219 million, from around $853 million in the same period last year, according to data from MAGNiTT, a platform that tracks startups across the Middle East and North Africa.

The number of VC deals also declined 41% to 72 in H1 2026, compared with 122 in the year-earlier period.

The report said activity in the first quarter remained in line with the quarterly average recorded in 2025. However, the second quarter saw the lowest deal count since Q3 2020, as deal announcements were delayed following the Eid holiday and ecosystem events were postponed.

Despite the decline in investment value and deal count, Saudi Arabia maintained a 34% share of total venture capital deals across the MENA region, remaining one of the region’s most active markets by number of transactions.

Around 80 investors participated in Saudi Arabia’s venture capital ecosystem in H1 2026. Saudi investors accounted for the largest share at 59%, followed by regional investors at 25% and international investors at 16%.