Venture Capital in Saudi Arabia: Ministry of Economy Signs New Cooperation Agreement
Venture capital activity in Saudi Arabia is receiving fresh momentum following the signing of a cooperation agreement between the Ministry of Economy and Planning and the Saudi Venture Capital Company, highlighting the Kingdom’s strategic focus on strengthening entrepreneurship and innovation.
The agreement aims to facilitate data and research sharing related to the regulatory environment for entrepreneurship, while also cooperating on studies assessing the economic impact of entrepreneurship and venture capital.
It further includes identifying priority sectors and developing targeted investment plans to support their growth.
Under the agreement, joint reports will be produced to track developments in entrepreneurship and venture capital and analyze their economic effects, alongside the design and implementation of initiatives that foster innovation and enhance the competitiveness of the business ecosystem.
Saudi Arabia’s venture capital sector has experienced remarkable growth in recent years, expanding more than tenfold between 2018 and 2024.
Funding increased from approximately SAR 240 million to over SAR 2.7 billion, reaching around SAR 5.5 billion this year.
According to industry reports, the Kingdom has maintained its regional leadership in venture capital, capturing about 56% of total regional investments during the first half of 2025, underscoring the strength and attractiveness of its investment environment.
The agreement is seen as a key step toward achieving Vision 2030 objectives, supporting startups, accelerating innovation, and enhancing the role of high-impact investments in diversifying the economy and driving sustainable growth.
