Saudi Arabia: Investments in Saudi startups grew by 72 percent to a record high of SR3.701 billion ($987 million) in 2022, according to a report.

According to the “2022 Saudi Arabia Venture Capital Report,” the Kingdom achieved the highest growth of venture capital funding among countries in the Middle East and North Africa. The Kingdom maintained its position as the second-most funded market in MENA in 2022, accounting for 31 percent of the total capital deployed in the region, increasing from 21 percent in 2021, added the report published by the venture data platform, MAGNiTT, and sponsored by the Saudi Venture Capital.

Although 2021 was a record year for venture funding in the Kingdom, 2022 witnessed unprecedented VC deployment, setting a new record in VC funding, it said.

A record high of 104 investors participated in deals closed by Saudi startups in 2022, up 30 percent versus 2021. The country also recorded double the number of exits in 2022 compared to 2021, with 10 exits.

Nabeel Koshak, CEO and board member at SVC, said: “The unprecedented growth in VC investments comes as a result of government initiatives launched to stimulate the VC and startups ecosystem within the Saudi Vision 2030 programs."

SVC is a government investment company established in 2018 to stimulate and sustain financing for startups and SMEs from pre-seed to pre-IPO through investment in VC and PE funds. Since its inception, SVC has backed 31 funds that invested in 525 startups and small and medium enterprises.