
Riyadh - Sharikat Mubasher: The first quarter (Q1) of 2025 marked a pivotal moment for Saudi Arabia’s venture capital (VC) ecosystem as it became a benchmark for emerging markets worldwide, setting a new standard for growth and ambition.
A recent report released by MAGNiTT, in partnership with Saudi Venture Capital Company (SVC), showed that the Kingdom’s VC funding witnessed a 53% year-on-year (YoY) increase in Q1-25, driven by local investors' growing confidence, the emergence of new funds, and a wave of sovereign wealth capital backing high-growth sectors.
The Kingdom led the Middle East and North Africa (MENA) region in both total funding and number of transactions during the first three months of 2025, surpassing the UAE in MENA and Singapore for the first time.
Investors’ appetite shifted decisively toward Series A and B rounds, with deal activity and capital deployment at multi-quarter highs. Local funds anchored early rounds, while international capital poured into growth-stage bets.
Fintech remained the top-funded and most-transacted sector, while enterprise software and education technology (EdTech) posted triple-digit growth, backed by rising demand for scalable digital solutions.