Saudi Arabia is rapidly becoming a hotspot for startups in the MENA region, with venture capital deals set to surpass $1 billion for the first time in 2025 and potentially reach $10 billion by 2030.
Why it matters: The kingdom’s growing tech sector, government support, and available capital are attracting startups from nearby countries and driving exponential growth in venture capital investment.
The details:
- In the first half of 2025, a record $860 million worth of deals were struck, a nearly 500% increase compared to four years ago.
- Startups from Egypt, Lebanon, and other Gulf countries are relocating to Saudi Arabia, seeking stability and easier access to capital.
- The Saudi government aims to grow the tech sector’s contribution to GDP from 1% to 5% by 2030 through training programs and local initiatives.
- Around 60% of the investment comes from within Saudi Arabia, while the rest is from the Middle East, US, Europe, and East Asia.
“If you want to make money and if you want to grow, Saudi Arabia is the place to be,” says Olek Skwarczek, co-founder of Multiples, a VC valuation data platform.
The talent pool: “We used to struggle in terms of finding talent,” says Dina el-Shenoufy, chief investment officer at an early-stage VC company. “But now you have an abundance of amazing talent.”
The outlook: The growth in funding appears sustainable, and experts expect it to grow exponentially as more startups and investors recognize the opportunities available in Saudi Arabia.
Startup funding in the Middle East and North Africa (MENA) reached $2.1 billion during the first half of 2025, a 134% increase compared to the previous year.
By the numbers:
- Q2 2025 saw $583.4 million deployed across 149 deals, exceeding Q2 2024 in both value and deal count.
- Saudi Arabia emerged as the most funded market in Q2, with $231.5 million invested in 38 startups.
- Fintech attracted the highest volume of capital in Q2, with 38 startups securing a combined $170 million.
- Debt-based transactions accounted for $930 million of the total $2.1 billion invested in H1 2025.
The regional breakdown: Saudi Arabia accounted for 64% of total capital deployed in MENA during H1 2025, while the UAE attracted $541 million across 114 startups, and Egypt saw a 106% year-on-year increase in funding volume.
The gender gap: Startups founded exclusively by men received nearly 89% of total H1 capital, while female-founded startups raised just $84.5 million across 27 transactions.