Saudi Arabia recorded a decline of 27% year-on-year (YoY) in venture capital (VC) to $446 million during the first six months of 2023, according to a recent report by MAGNiTT.
The number of deals was also on a decline with a 44% annual retreat in H1 2023 to 54 deals.
With the government support, Saudi Arabia is becoming a more attractive destination for startups and is well-positioned to become a leading hub for innovation in the Middle East as several initiatives to support the VC space were launched in the country, the report said.
The Kingdom hit a record of $289 million in VC MEGA deals in H1 2023 driven by two MEGA deals amounting to $156 million and $133 million by E-commerce/Retail startups Floward and Nana. The two deals represent 65% of the total deals in H1 2023 as Floward and Nana took over 35% and 30% of the deals, respectively.
The following table shows the number of deals and VC value:
The Number of Deals and VC Value Since 2018* | |||
Year | Number of Deals | Deals Value ($ mln) | Change |
2018 | 56 | 59 | -- |
2019 | 73 | 114 | +93% |
2020 | 92 | 153 | +34% |
2021 | 150 | 585 | +282% |
2022 | 152 | 1020 | +74% |
H1 2023 | 54 | 446 | (27%)** |
*Updated data
Source : Argaam