Saudi Arabia topped the countries of the Middle East and North Africa region, for the first time, in terms of the total value of venture investment in 2023, according to the “Magnit” platform, which specializes in issuing data on venture investment in emerging companies in the region.
Data issued by Magnit confirmed that the Kingdom acquired the largest share, which amounted to 52% of the total venture investment in the region in 2023, compared to 31% in 2022.
Venture investing (also called “venture investing” or “venture capital”) is a form of financing that provides money to startups with high growth potential in the early stages, in exchange for a share of ownership.
Start-ups and entrepreneurs rely on venture investments as an important source of funding. Venture investment does not always take the form of cash, but can be in the form of technical or administrative expertise. Vulture investing is usually reserved for small companies with exceptional growth potential, or companies that have grown rapidly and are poised to continue expansion.
The Kingdom achieved growth in total venture investment by 33% in 2023 compared to 2022, which confirms the attractiveness of the Saudi market, enhances its competitive environment, and consolidates the strength of the Kingdom’s economy as it is the largest economy in the region, and its leading position as one of the G20 countries.
Today, Monday, the Saudi News Agency (SPA) quoted Nabil bin Abdul Qader Koshak, CEO and member of the Board of Directors of the Saudi Investment Company, SVC, as saying, “The Kingdom’s leadership in the bold investment scene in the region comes as a result of the economic and investment movement that the Kingdom is witnessing.”
He added that the movement came through “the launch of several government initiatives stimulating the venture investment system and emerging companies within the framework of the Kingdom's Vision 2030, and the development of the legislative and regulatory environment for the system, in addition to the emergence of increasing numbers of active investors from the private sector and innovative entrepreneurs.”
He said, “We are proud that the SVC strategy contributed to the development of the venture investment system in the Kingdom, as the Kingdom was ranked fourth in the region in terms of the value of venture investment in 2018, to lead the countries of the region in 2023.”
He pointed out that “the venture investment system in the Kingdom witnessed a doubling of the total amounts invested in emerging companies 21 times in 2023 compared to the year 2018, in which the work of (SVC) was founded and launched.”
It is noteworthy that “SVC” is an investment company established in 2018, and it is affiliated with the Small and Medium Enterprises Bank, one of the development banks affiliated with the National Development Fund, and aims to stimulate and sustain financing for emerging companies and small and medium enterprises.