Venture Capital Funds in Saudi Arabia: The Complete Investor Guide

Overview of Venture Capital in Saudi Arabia

Saudi Arabia’s venture capital ecosystem has undergone a remarkable transformation since 2016. What was once a nascent market with limited funding options has evolved into the largest VC market in the Middle East and North Africa (MENA) region. Saudi-based startups raised approximately USD 1.4 billion in venture funding in 2025, accounting for over 50 percent of all MENA venture deals by value. The Kingdom’s VC landscape is supported by a combination of government-backed funds, institutional investors, corporate venture arms, and an increasing number of independent fund managers.

STV (Saudi Technology Ventures)

STV is the largest technology-focused venture capital fund in MENA, with over USD 500 million in assets under management. Founded in 2017 by Abdulrahman Tarabzouni, STV is backed by Saudi Telecom Group (stc), Public Investment Fund (PIF), and other institutional limited partners. STV has made landmark investments in companies such as Careem before its USD 3.1 billion acquisition by Uber, Tabby, Tamara, and other high-profile startups.

STV operates across Series A through growth-stage investments, typically deploying USD 5 million to USD 50 million per deal. The fund focuses on fintech, e-commerce, edtech, and enterprise software across MENA and Turkiye. STV’s success with Careem demonstrated that regional startups could achieve billion-dollar outcomes, inspiring a new generation of Saudi entrepreneurs and investors.

Wa’ed Ventures (Saudi Aramco Entrepreneurship Center)

Wa’ed Ventures is the entrepreneurship arm of Saudi Aramco, the world’s largest oil company. Established to diversify the Kingdom’s economy beyond hydrocarbons, Wa’ed provides startups with equity investments, loans, office space, and mentorship. The fund has deployed over SAR 2 billion across more than 80 startups.

Wa’ed’s portfolio spans energy technology, industrial automation, cybersecurity, and digital health. Its unique position within the Aramco ecosystem gives portfolio companies access to Aramco’s vast procurement network, technical expertise, and global partnerships. Wa’ed also operates the Wa’ed Entrepreneur Seed Fund, which provides early-stage capital up to SAR 3 million.

Raed Ventures

Raed Ventures is a Riyadh-based venture capital firm that focuses on Series A and Series B investments across the MENA region. The firm has backed some of the region’s most successful startups, including Mrsool and Sary, a B2B e-commerce platform that raised over USD 30 million. Raed typically invests between USD 2 million and USD 10 million per round and maintains a portfolio of over 30 active companies.

Raed’s investment thesis centers on digital transformation opportunities in large, under-penetrated markets across the GCC. The firm is known for its hands-on approach, providing operational support, board governance, and follow-on capital to its portfolio companies.

Saudi Venture Capital Company (SVC)

The Saudi Venture Capital Company (SVC) is a government-backed fund-of-funds established by the SME Bank in 2018. SVC operates as a catalytic investor, providing capital to VC fund managers who in turn invest in Saudi startups. As of 2026, SVC has committed over SAR 2.8 billion across more than 50 funds, indirectly supporting hundreds of early-stage companies.

SVC’s mandate includes building the local fund manager ecosystem, attracting international VC firms to establish operations in Saudi Arabia, and ensuring that capital is accessible across all stages from pre-seed to growth.

Other Notable Funds and Investors

The Saudi VC landscape also includes Impact46, a Riyadh-based VC firm managing over USD 200 million across multiple funds. DisruptAD Ventures operates across the GCC with a focus on deep-tech and climate-tech. Inspire Ventures backs Seed and Series A startups in the Kingdom. Corporate venture arms from stc, SABIC, and Al Rajhi Bank have also become active investors.

The Misk Foundation, established by Crown Prince Mohammed bin Salman, supports early-stage entrepreneurs through accelerator programs, angel investment networks, and educational initiatives that have nurtured thousands of young Saudi founders.

The Regulatory Environment

The Capital Market Authority (CMA) regulates venture capital activity in Saudi Arabia, and recent reforms have significantly simplified fund formation. The introduction of the Authorized Persons Regulations and the Special Purpose Entity framework has made it easier for both domestic and international fund managers to launch and operate funds within the Kingdom.

The Fintech Saudi initiative, jointly operated by SAMA and CMA, has created regulatory sandboxes that allow VC-backed fintech startups to test products in a controlled environment before obtaining full licenses.

Key Statistics and Outlook

Saudi venture capital deal value grew at a compound annual growth rate of approximately 67 percent between 2019 and 2025. The Kingdom produced its first unicorn, Tamara, a buy-now-pay-later platform valued at over USD 1 billion, in 2024. Several other startups including Tabby have reached unicorn status. Over 900 tech startups are registered in Saudi Arabia as of 2026, up from fewer than 200 in 2018.

With PIF’s ambition to grow assets under management to USD 2 trillion by 2030 and the government’s target of creating over 1 million SME jobs, venture capital is expected to remain a critical engine of innovation and employment growth in the Kingdom.

See our Saudi Arabia Technology Parks and Fintech Saudi Arabia guides for related insights.