Saudi Arabia Surpasses Singapore in Emerging Market Venture Capital Leadership

Saudi Arabia has emerged as the leading destination for venture capital funding across emerging markets, surpassing Singapore with a record-breaking \$391 million secured in the first quarter of 2025. This 53% year-on-year increase positions the Kingdom at the forefront of VC activity in regions encompassing the Middle East, Africa, Pakistan, Turkiye, and Southeast Asia, according to data from venture analytics platform MAGNiTT.

The surge in funding reflects a broader trend of Saudi Arabia's ascendancy in the venture capital landscape. In 2024, the Kingdom attracted \$750 million in VC investments, accounting for 40% of the total capital deployed in the Middle East and North Africa region. This marked a 16% year-on-year increase in deal flow, with 178 deals closed—the highest in the region. The largest transaction was a \$130 million funding round for Saudi-based e-commerce platform Salla.

E-commerce and retail sectors dominated Saudi Arabia's VC funding in 2024, securing \$247 million across 17 deals. Fintech followed closely, recording the highest number of transactions, accounting for 18% of total VC deals. This sectoral focus aligns with global investment trends favoring digital transformation and financial technology innovations.

International investor participation in Saudi Arabia's VC ecosystem has also seen a significant uptick. In 2024, 29% of investors were from outside the Kingdom, indicating growing global confidence in Saudi Arabia's startup landscape. Notably, Singapore-based venture capital firm Antler led in the number of deals closed, highlighting the increasing cross-border investment activities.

The Kingdom's strategic initiatives under Vision 2030 have been instrumental in fostering a conducive environment for venture capital investments. Government-backed programs, such as the Saudi Venture Capital Company , established in 2018, have played a pivotal role in stimulating financing for startups and small to medium-sized enterprises across various stages of development.

Saudi Arabia's commitment to economic diversification and innovation is further evidenced by its focus on emerging technologies. The Public Investment Fund has shifted its investment strategy to prioritize domestic projects, including significant investments in artificial intelligence infrastructure. Collaborations with global tech companies, such as Groq and Google Cloud, aim to establish the Kingdom as a central AI hub in the Middle East.