Saudi Arabia secured an estimated $860 million in venture capital during the first half of 2025, accounting for a dominant 56% share of MENA-wide VC and marking a 116% year-on-year surge that surpasses its full-year total from 2024. The Kingdom closed a record 114 venture deals in the period, up 31 % from H1 2024.
Foreign interest in Saudi’s startup ecosystem is also surging. The Ministry of Investment issued 550 new Riyadi licences to non-Saudi startups in H1 2025 – a 118% year-over-year jump. These permits, together with 364 new incubator and accelerator licenses, are being issued to attract and support international venture activity in the Kingdom.
Meanwhile, the United Arab Emirates remains the second-largest MENA destination for VC. Investors deployed $447 million in the UAE during the same period – an 84 percent increase that closely matched Saudi’s deal volume.
Ecosystem insiders attribute the Gulf’s surge in venture investment to a "one-two punch" of sovereign follow-on financing paired with growing early-stage incentives. The result is a sustained flow of capital into regional innovation hubs, particularly within AI, fintech, e-commerce, and advanced manufacturing.
If Saudi maintains its current pace, the Kingdom is on track for a record-breaking year in VC fundraising and startup deal flow.
