Saudi’s Half Yearly Funding

Despite macroeconomic uncertainties, Saudi recorded a triple digit year-on-year funding increase. Magnitt’s H1 2025 Saudi Arabia Venture Capital report sponsored by SVC details Saudi’s VC performance. It offers insights on what is driving investment activity, and also identifies emerging opportunities. 

Venture capital investment in Saudi Arabia has aggregated to USD 860 million across 115 deals in H1 2025. This surpassed the total funding of FY 2024 and reached a 116% year on year increase in funding in H1 2025.

This is driven by the total Ninja and Tabby’s MEGA deals (deal exceeding USD 100M) with USD 410 million. In addition to non-mega deals (under 100M) reaching USD 450 million marking a 67% year on year increase. 

Additionally, deal count also rose to 31% year on year making Saudi’s share of MENA deal 37% in H1 2025. This is an increase from 30% in H1 2024. Moreover, all in all Saudi contributed to 56% of the MENA region’s total funding in H1 2025.

Saudi’s Q1 reported 70 deals fueled by improved macro sentiment post and ecosystem momentum surrounding different events. This includes LEAP 2025, Fil, FinTech Saudi, Digital Transformation Summit and others.

In H1 2025 across MENA, Saudi Arabia recorded USD 860 million in total funding. Next, UAE recorded USD 447 million, while Egypt recorded USD 185 million. Furthermore, Oman recorded USD 11 million and Morocco recorded USD 8 million.

In conclusion, all in all Saudi remained the most funded country across MENA within the top leading five. This is because it accounted for 56% of the MENA regions total USD 1.55 billion in funding in H1 2025. 

Leading Industries

The industries leading the funding wave were e-commerce, retail and fintech which all witnessed strong investor interest. This was fueled by two Mega deals namely Ninja’s USD 250 million and Tabby’s USD 160 million. Moreover, Ninja’s deal made e-commerce and retail the industry that saw the most capital invested in H1 2025.

Additionally, sustainability also made the ranks drive by PetroApp’s USD 50 million deal Other sectors such as edtech and enterprise software saw large transactions such as EdTech’s ula.me USD 28 million deal and Enterprise Software’s Merit’s USD 28 million round.

 Top Deals in Saudi Arabia H1 2025:

• Ninja: USD 250M (E-commerce/Retail)
• Tabby: USD 160M (FinTech)
• PetroApp:USD 50M (Sustainability)
• Zension: USD 30M (E-commerce/Retail)
• Merit Incentives: USD 28M ( E-commerce/Retail)
• ula.me: USD 28M (EdTech)
• WakeCap: USD 28M (Construction & Industry) 

VC Funding by Stage and Investments

Early stage investments made up 89%of Saudi’s VC transactions in H1 2025 compared to 87% across MENA. Furthermore, this is in comparison to 83% in UAE and 80% in Egypt.

Additionally, Series A comprised 6% of deals in Saudi while Series B accounted for 4% of deals. Comparatively, the UAE has 12% of Series A deals and 5 % in Series B while Egypt has 10% in Series A and Series B. 

Saudi remained its own top investor base in H1 2025 but its share declined from 47% to 41% from 2024 to H1 2025. Meanwhile, the share of UAE investors in Saudi’s VC space declined to 12%. On the other hand, Egypt’s investors entered the top 5 with a 7% share. Moreover, this is a sign of growing interest in the Kingdom’s startup ecosystem.

Saudi’s mergers and acquisition deals (M&A) rose 3 and a half times from H1 2024. Moreover, all but two of the seven disclosed M& A deals involved Saudi-based acquirers. This spanned industries including Advertising & Marketing, FinTech, E-commerce/Retail, and Sports & Fitness.

Saudi Arabia’s venture capital activity saw notable growth in H1 2025, with total funding reaching $860 million and accounting for more than half of MENA’s total capital. The increase was driven by a mix of large deals, a rise in deal volume, and continued investor interest across multiple sectors. Alongside this, early-stage activity and M&A transactions point to a gradually evolving ecosystem. As funding patterns take shape, Saudi remains a key market to watch within the region’s broader investment landscape.