Riyadh - Sharikat Mubasher: Saudi Arabia continued to rank first across the Middle East and North Africa (MENA) in terms of total venture capital (VC) funding during the first half (H1) of 2024 as the Kingdom seized 54% of the region’s total funding, up from 38% in H1-23.

A recent report released by MAGNiTT in partnership with Saudi Venture Capital (SVC) showed that the Saudi VC ecosystem aggregated $412 million in funding in H1-24 across 63 deals, making a slight drop of 7% compared to H1-23.

This decline was driven by a 55% year-on-year (YoY) drop in mega funding, while non-mega funding saw a YoY increase of 83% in H1-24.

The Kingdom accounted for 30% of total deals across MENA in H1-24, up from 25% in the same period of 2023, securing the second spot after UAE which concluded 83 deals amounting to $225 million.

The retail/e-commerce sector ranked first in Saudi Arabia, contributing 52% of the Kingdom's total funding in H1-24, down from a contribution of 81% in H1-23.

The sector secured as much as $215 million in funding, showing a 40% drop compared to the same half of 2023, while the fintech sector raised $62 million in H1-24 signaling a significant YoY increase of 360%.

Athary Almubarak, Chief Strategy Officer at SVC, commented: “The increasing participation of both local and international investors underscores the global confidence in Saudi Arabia's VC landscape. The rise in international investor interest highlights the Kingdom's growing reputation as a hub for innovation and high-growth potential.”

Almubarak further affirmed that the trajectory of VC in Saudi Arabia appears exceedingly promising, backed by ongoing economic reforms, a burgeoning entrepreneurial ecosystem, increased foreign direct investments, and a growing pool of investable assets.