While Silicon Valley venture capitalists continue making pilgrimages to Saudi Arabia in search of cash, the kingdom’s native startups are drawing more investment from other countries than its Gulf peers.
For the second consecutive year, Saudi Arabia was on the receiving end in 2024 of $750 million to lead the MENA region in collecting VC investments, according to a report by MAGNiTT. The UAE followed with $613 million.
On the providing end, government-owned Saudi Venture Capital Co. has committed $1 billion in investments since its inception in 2018, Arab News reports.
Adding contributions from partners raises the total to $4.8 billion over the six-year span, spread among VC, private equity, debt and private credit markets, according to SVC’s latest Impact Report.
“We are committed to further stimulating the private capital ecosystem in Saudi Arabia by launching required investment programs and developmental initiatives based on an analysis of the ecosystem’s needs,” SVC’s CEO Nabeel Koshak said in the report.
Saudi Arabia’s Public Investment Fund, meanwhile, is in talks for a $3.1 billion loan guarantee with Sace, the Italian insurer and export credit agency, Bloomberg reports. If negotiations reach an agreement, Sace will provide guarantees to a group of international banks for a range of Saudi projects.
The talks follow Italian Prime Minister Giorgia Meloni’s trip to Saudi Arabia last month, where she met Crown Prince Mohammed bin Salman and the two countries agreed on deals worth $10 billion.
