![STOCK Saudi skyline](https://imagevars.gulfnews.com/2024/03/04/STOCK-Saudi-skyline_18e097e6dff_medium.jpg)
Dubai: Saudi Arabia maintains its leading position in regional venture capital (VC) funding for the second consecutive year, securing $412 million (Dh1.5 billion) in the first half of 2024, according to new data.
Despite a slight 7 per cent year-on-year decline, the country retained its top spot across the Middle East and North Africa (Mena) region in terms of total VC investment, as reported by data analytics platform MAGNiTT.
Deal flow activity experienced a minor 3 per cent annual decrease, positioning Saudi Arabia as the Mena region's second-most active country by transaction volume. The country now commands 30 per cent of total deals, up from 25 per cent in the first half of 2023.
Saudi Arabia’s contribution to the region’s total funding rose from 38 per cent in the first half of 2023 to 54 per cent in the same period of 2024, underscoring its growing influence.
Fintech continued to lead in investor interest by transaction volume, while e-commerce emerged as the top-funded sector, with two of the top five deals in Saudi Arabia originating from this area.
Investor engagement remained strong, with 72 entities supporting Saudi-based startups, up from 62 in the same period last year.
The share of international investors in Saudi Arabia's VC space increased by 17 percentage points, capturing 28 per cent of the total investors in 2024.
Saudi Arabia’s success in VC is bolstered by domestic initiatives and growing international interest, with long-term investments playing a crucial role in attracting startups and investors alike.