As per the Venture Capital Report released by Magnitt’s and Saudi Venture Capital, Saudi Arabia recorded its venture capital funding at $ 584 million in the first half of 2022, which is 244% or thrice compared to last year. The report also stated that 78 Saudi Arabia based startups have received seed funding from big investors.

As per the findings of the report, KSA observed the second largest funding growth in MENA Region for the 3rd consecutive year, while decreasing the gap of funding with UAE from 77% recorded last year to 16% in the first half of 2022. The kingdom also became the second most transacting EVM by closing 79 deals so far.

Speaking of industry breakdown, the report further entails that the food and beverage industry led the funding at $ 187 million, followed by Fintech $ 95 million and Transport & Logistics at $ 67 million. The food and beverage industry was driven by the $170m Series C investment in Riyadh-based aggregator Foodics, which was Saudi Arabia’s second mega round, or funding with a value of more than $100m. E-commerce platform Nana at $50 million, logistics giant Trukker at $ 46 million, IT company Master Works at $ 40 million and online payment gateway Hyper Pay at $37m are some of the other major funders.

With the rising levels of investments pouring in and formulation of a stable and economically conducive environment, KSA is steadily accelerating towards diversifying its economic structure from its black gold reserves. Technology and ICT sectors are the main focus of the Saudi Vision 2030. The International Data Corporation states that KSA aims to inject further $ 33 billion to plummet these sectors and attract the capitalists’ interests. Furthermore, the crown has also announced to develop the R&D sector in KSA with the objective of generating $ 16 Billion in revenue and creating high value jobs by 2040.

The portrayal of such amazing figures is a reaffirmation that the Saudi eco-system is thriving exponentially, with investors and capitalists confident in the future trajectory of the market. As the kingdom is inching closer to achieving the 2030 Vision by progressing towards digital transformation, it is quite evident that investors from around the world are flocking to invest in the Saudi economy. And the prospect looks favorable for local startups striving to set on their path to profitability and adapting a more viable approach to steer growth.