According to the 2022 Saudi Arabia Venture Capital Report, the amount of money invested in Saudi companies increased by 72 percent between 2021 and 2022, reaching a record high of $987 million.

There were 104 newly registered investors in Saudi Arabia last year, a rise of 30 percent from 2021.

The data analytics platform MAGNiTT reported a significant growth in investment in the Middle East and North Africa. In 2022, venture capital investments in the area totaled more than $3 billion, up from $2.9 billion in the previous year.

The UAE is frequently cited as the largest West Asian venture capital market. Saudi Arabia, according to MAGNiTT, is second.

Saudi companies closed transactions with 104 investors, a record number and a 30 percent increase over 2021. Additionally, with 10 exits, the nation had a double-digit rise in entries in 2022 compared to 2021.

Saudi Arabia has made some progress in establishing a thriving startup scene. Various industries, including e-commerce, health, artificial intelligence, and financial technology, are the focus of venture capital investment in the kingdom.

Meanwhile, five regional enterprises will be founded in Jordan, Iraq, Bahrain, Sudan, and Oman, according to a statement issued by Saudi Arabia’s Public Investment Fund (PIF) on 27 October 2022.

The Chairman of the Fund’s Board of Directors, Crown Prince Mohammed bin Salman (MbS), stated at the time that the planned investments totaled 90 billion riyals ($24 billion) across several industries.

The intention is for companies to invest in several strategic sectors, including infrastructure, real estate development, mining, healthcare, financial services, food and agriculture, manufacturing, communications and technology, and others.

According to the Saudi Press Agency (SPA), creating businesses would produce lucrative long-term returns that will maximize the fund’s assets and diversify the Kingdom’s revenue in line with Vision 2030’s goals.

To reduce reliance on oil as a significant source of income, Saudi Vision 2030 relies on the fund diversifying its sources of income through its domestic and international investments.