Saudi VC Funding Reaches $860 Million in H1-2025

Venture Capital (VC) funding in Saudi Arabia reached $860 million across 114 deals in H1 2025, marking a 116% y-o-y increase in capital and a 31% rise in transactions compared with the same period last year, MAGNiIT, a SaaS platform providing data, analytics, insights, and reports on venture capital funding, start-ups, and investors, said in its latest report.

Saudi Arabia outperformed MENA, capturing 56% of all VC capital deployed in the region, a new benchmark for the region where deal volumes rose by only 5% y-o-y in H1 2025.

Driven by a 215% y-o-y rise in MEGA deal funding ($100+ million) and a 67% y-o-y increase in non-MEGA funding (less than $100 million), Saudi Arabia ranked first across MENA by both funding and number of deals in H1 2025, capturing 56% of total MENA funding and a record-high 37% of all deals.

Driven by Ninja’s $250 million deal, e-commerce/retail was the most funded industry in Saudi Arabia, attracting $306 million and accounting for 36% of Saudi Arabia’s total funding, the report said.

On the other hand, capital deployed in fintech funding saw a 275% y-o-y increase in the first half of 2025, supported by Tabby’s $160 million and a 55% y-o-y increase in non-MEGA funding in H1 2025.

Deal flow broadened across sectors, with four of the top five industries recording double and triple-digit y-o-y growth in the number of deals. Fintech led in deal count, followed by e-commerce/retail, enterprise software, transport and logistics, and EdTech together accounting for 68% of total deal activity in the Kingdom.

Top five disclosed deals accounted for 60% of total capital, down from 66% in H1 2024, signalling a maturing ecosystem and a healthier capital distribution across the funnel compared to previous years.

The top five deals came from a diverse set of industries with deals from relatively smaller industries like sustainability and construction making it to the top five.

Early-stage activity continued to dominate, representing 89% of deals, the highest among top MENA markets (vs.87% in MENA, 83% in UAE, and 80% in Egypt).

Mid-stage activity remains relatively nascent, with Series A and B making up just 10% of total deals in Saudi Arabia in H1 2025. Even M&A activity more than tripled y-o-y to seven transactions, up from just two in H1 2024.

Five of the seven deals were led by Saudi-based acquirers, underscoring the rise of domestic consolidation and growing exit optionality for start-ups at earlier life stages.

Saudi VC Accelerates

Mai AlAshgar, Chief Legal Officer at Saudi Venture Capital company, said that the VC ecosystem in Saudi Arabia continued to accelerate in 2025, building on a strong foundation of innovation, resilience and investor confidence.

The Saudi VC landscape reflects not only the strength of its entrepreneurial landscape but also increasing global investor participation.

She said that guided by Vision 2030 and backed by an increasingly dynamic private sector, Saudi Arabia continues to position itself as a hub for innovation and high-growth ventures.
“With supportive regulatory frameworks, strategic government initiatives and a thriving entrepreneurial environment, Saudi Arabia is well-positioned to sustain this upward trajectory,” she said.

A Thriving Ecosystem

Chairman & co-CEO, Middle East Venture Partners Waled Hanna sad that Saudi Arabia was charting a bold course toward becoming a global start-up powerhouse. Underpinned by its ambitious Vision 2030 strategy, expansive government funding, and pro-investment reforms aimed at fostering innovation, VC investments will surpass $1 billion in 2025, reaching approximately $10 billion annually by 2030.

The local start-up ecosystem was thriving across high-growth verticals such as AI, fintech, and healthtech – driven not only by targeted national programs and rising demand for digital-first solutions, but also by a new wave of Saudi entrepreneurs who now lead over 40% of VC-funded start-ups.
Start-up exit environment is maturing as well, with successful IPOs like Jahez and Nice One boosting market confidence and paving the way for a surge in start-up exits, with 50+ IPOs expected by 2026, Hanna added.