– The GCC saw a 30% increase in venture capital (VC) funding in 2023, despite a global decline, with Saudi Arabia overtaking the UAE as the region’s top recipient of VC investments.

– Saudi Arabia’s fintech sector thrived with unicorn-status rounds for Tabby and Tamara, contributing to the country’s $1.36 billion in total fintech funding, leading the region in fintech and e-commerce.

– Significant investments in green technologies, renewable energy, and electric mobility are driving the region’s growth, supported by Saudi Arabia’s $64 billion investment in major tech projects like NEOM and Qiddiya.

The GCC has recorded an impressive 30% growth in venture capital (VC) funding for 2023, despite a global downturn, according to recent research by Pulsar, a leader in startup acceleration. As global VC funding fell to $248.4 billion, the lowest since 2017, the GCC’s growth stands in sharp contrast, fueled by investor confidence in the region.

Key drivers of this growth include Saudi Arabia, which overtook the UAE in total VC funding for the first time, accounting for more than half of all deals in the region. Significant investments like the $156 million funding round in Kuwait-based Floward and the unicorn status achieved by Saudi fintech companies Tabby and Tamara helped solidify Saudi Arabia’s leadership in fintech and e-commerce.

According to the report’s key findings, Saudi Arabia’s VC funding surpassed the UAE, accounting for over 50% of deals, driven by late-stage investments and significant rounds for companies like Tabby and Tamara.

Five major deals accounted for 74% of total venture capital investment, with Floward marking Kuwait’s largest deal in five years at $156 million.

Investments surged in green technologies, with Saudi Arabia’s $64 billion initiative backing projects in renewable energy and advanced tech like NEOM and Qiddiya.

With growing investments in fintech, green technology, and the emergence of new business hubs across the region, the GCC continues to strengthen its position as a major player in global venture capital markets.