In 2024, Saudi Arabia solidified its status as the most funded country in the MENA region for venture capital, raising $750 million across a record 178 deals. This surge, driven by Vision 2030’s ambitious goals, signals a market ripe with opportunity,if you know how to navigate it.
In 2024, venture capital in Saudi Arabia reached new heights, maintaining its dominance across the Middle East and North Africa. Data from the latest Magnitt and Saudi Venture Capital report reveals that Saudi startups secured $750 million, a figure that, while down 44% from 2023’s $1.3 billion, underscores resilience through a 16% year-on-year increase in transactions. With 178 deals, the Kingdom accounted for 34% of all MENA startups’ activity last year, a clear sign that the market is maturing, diversifying, and welcoming businesses ready to scale smartly.
What’s fueling this growth? Vision 2030 has transformed Saudi Arabia into a hub for innovation, drawing investment into high-potential sectors. Peninsula’s experience in streamlining commercial registration, licensing, and entity formation, shows that success here hinges on understanding both the opportunity and the regulatory framework. Whether you’re leading a startup in Dubai or a multinational eyeing the Kingdom, the venture capital Saudi Arabia ecosystem offers a dynamic entry point.
The industries capturing investor attention in 2024 reveal a clear pattern of growth—and a roadmap for executives. Let’s explore where the money’s flowing and how it translates to your next move.
With $247 million invested in 2024, E-Commerce is booming, driven by a young, tech-savvy population and rising online spending. Take SallaApp, a platform simplifying online storefronts for SMEs—it raised $130 million to expand its reach. The opportunity? Saudi Arabia’s e-commerce market is projected to hit $22 billion by 2027. For executives, this means tapping into a consumer base eager for convenience. Think localized platforms or logistics-integrated solutions.
FinTech’s 32 deals in 2024 reflect a hunger for digital financial services. Tamara, a buy-now-pay-later pioneer, exemplifies this, its growth mirrors a broader shift as Saudi Arabia’s open banking framework matures. The Kingdom’s FinTech market could reach $5.8 billion by 2027, offering fertile ground for payment solutions, lending platforms, or SME financing tools. Executives can capitalise by offering scalable, Sharia-compliant products.
Transport & Logistics secured a top-five spot in funding, fueled by Saudi Arabia’s strategic position as a trade hub. Trukker, a logistics platform connecting businesses with trucking capacity, raised $100 million recently, highlighting the sector’s potential. With the government pouring billions into infrastructure like NEOM and the Red Sea Project, opportunities abound for last-mile delivery, freight tech, or supply chain optimistion. For executives, this is about bridging regional gaps, think tech that enhances efficiency in a logistics-driven economy.
IT Solutions are gaining traction as businesses digitize. Companies like Elm, offering e-government and business tech, show how IT can streamline operations in a market pushing for efficiency. With Vision 2030 prioritising smart cities and digital transformation, there’s room for cybersecurity, cloud services, or AI-driven tools. Executives should focus on practical, scalable solutions.
Enterprise Software rounds out the top five, driven by demand from SMEs and corporates scaling up. Foodics, a restaurant management platform, raised significant funding in 2024, showcasing how niche software can thrive. The opportunity lies in SaaS models that simplify HR, finance, or operations for Saudi businesses. With non-oil sectors growing, executives can target tools that boost productivity, our experience at Peninsula shows that user-friendly, localised software wins here.
The flow of venture capital in Saudi Arabia tells a broader story. E-Commerce and FinTech thrive on a young, tech-savvy population hungry for digital solutions. Transport & Logistics leverages the Kingdom’s infrastructure boom, while IT Solutions and Enterprise Software support the push for efficiency and scale. These industries aren’t siloed—they’re connected by themes of digital transformation, consumer empowerment, and operational synergy. Investors are betting on businesses that align with Vision 2030’s vision of a diversified, innovative economy. For executives, this means focusing on tech-driven, customer-centric offerings that fit the Kingdom’s trajectory.
Consider the implications: a Dubai startup in Enterprise Software could target Saudi SMEs needing operational tools, while a Transport & Logistics firm might optimize supply chains for NEOM’s construction surge. Peninsula’s work with MENA startups shows that localising your approach, whether through partnerships or regulatory alignment, amplifies success.
Startups in Dubai, in particular, have a unique advantage. The proximity to Saudi Arabia, combined with Peninsula’s cross-border expertise, makes the Kingdom an accessible next step. The Saudi Entrepreneur License is a standout tool here, designed for funded startups, it simplifies setup costs, accelerates licensing, and offers visa exemptions. For a Dubai-based FinTech or E-Commerce venture, this could mean launching in Saudi Arabia within weeks, not months. Our team at Peninsula has guided countless clients through this process, proving that the right structure unlocks the market’s full potential.
The $750 million raised by Saudi startups in 2024 isn’t just a milestone, it’s an invitation. The Kingdom’s 34% share of MENA startups’ deals, as tracked by Magnitt, signals a market hitting its stride. Business leaders can tap into this growth, but only with the right foundation. Peninsula’s proven track record ensures you’re not just entering Saudi Arabia, you’re thriving there.
This article summarises the key trends noted in the 2024 Venture Capital Report produced by Magnitt and SVC (Saudi Venture Capital), the full report can be found here.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
