How International Investors Are Boosting Saudi Venture Capital Growth by 38%
International investors are casting their votes of confidence in Saudi Arabia’s startup economy—and they are doing so in record numbers. New data from MAGNiTT, released in partnership with SVC, reveals that non-Saudi investors accounted for 58 percent of all venture capital participation in the Kingdom during 2025. The total number of active investors reached 194, a striking 38 percent increase over the previous year.
These figures tell a clear story: the world is paying attention to Saudi Arabia’s entrepreneurial emergence.
A Regional Leader, By Every Measure
Saudi Arabia closed 2025 as the largest venture capital market in the Middle East and North Africa, capturing 45 percent of all regional funding. The Kingdom attracted $1.7 billion in investment across 257 transactions—both all-time highs. Deal volume expanded 45 percent year over year, allowing Saudi Arabia to overtake the UAE as the region’s most active market by transaction count for the first time.
Since 2018, annual deal volume has grown nearly fivefold. The trajectory is unmistakable.
Growth Across Stages, Sectors, and Borders
What distinguishes this moment, according to MAGNiTT CEO Philip Bahoshy, is not merely the scale of capital deployment but its distribution. “What stood out in 2025 is not just Saudi Arabia’s record capital deployment, but the breadth of growth across stages, the depth of international participation, and early signs of a more complete venture cycle taking shape,” he said.
Non-mega deals—transactions below the $100 million threshold—rose 101 percent year over year to $1.15 billion, signaling robust health in early- and mid-stage financing. Meanwhile, mega rounds rebounded sharply, increasing 339 percent, reflecting renewed confidence among late-stage investors and improved capital access for scaling companies.
Fintech Leads, But Diversification Takes Hold
Fintech remained the dominant sector, raising $506 million across 55 deals. Yet the data reveals meaningful diversification taking root. Enterprise software emerged as the second-most active sector by transaction volume. Gaming, transport and logistics, and travel and tourism attracted notably large deal sizes, suggesting that Saudi Arabia’s startup ecosystem is expanding beyond its early concentrations.
Exits Gain Momentum
Perhaps most tellingly, exit activity strengthened considerably. Ten mergers and acquisitions were recorded during 2025—the highest annual total in Saudi Arabia’s history. Six of those transactions were led by Saudi-based buyers, pointing to growing domestic liquidity and an increasing corporate appetite for technology-led growth.
This matters. A healthy venture ecosystem requires not only capital entering at early stages but also pathways for that capital to realize returns and recycle into new investments. Saudi Arabia is demonstrating progress on both fronts.
A Milestone Year, A Foundation for What Comes Next
The 2025 figures represent more than a successful twelve-month period. They signal a structural shift in how international investors view the Kingdom. Foreign participation is no longer a novelty; it is the majority. Deal activity is no longer concentrated in a handful of sectors; it is spreading. Exit pathways are no longer theoretical; they are operational.
As Saudi Arabia continues its ambitious economic transformation under Vision 2030, the venture capital numbers offer tangible evidence of momentum. Global investors are not simply watching from the sidelines. They are writing checks, taking seats at the table, and betting that the Kingdom’s startup story is only beginning.
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