Saudi Arabia, in particular, has achieved a substantial set of milestones, developments, and flagship transactions, rapidly emerging as a regional venture capital superpower in the MENA region.

According to MAGNiTT, Saudi startups raised around USD732 million across 175 transactions in 2024, representing a 14% increase in deal count from the previous year. The Kingdom accounted for 29% of all MENA venture deals and 39% of deployed capital last year. This upward trajectory continued into 2025: by the half-year mark, Saudi had already continued to lead the region with USD860 million raised, representing more than 100% year-on-year growth.

The quality and variety of transactions are also maturing. Tabby’s USD160 million funding round at a USD3.3 billion valuation, Tamara’s USD2.4 billion debt financing with global institutions, and ​​Rize’s USD35 million Series A all underscore fintech’s continued leadership in the market. But the story is broader than payments.

Consumer platforms such as Ninja, which raised USD250 million in pre-IPO capital at a USD1.5 billion valuation, point to a diversification of growth stories. At the same time, regional managers with strong early-stage track records are rolling out dedicated growth funds, while long-awaited secondary markets are starting to emerge, offering founders, early backers, and employees more reliable avenues for liquidity.

These commercial developments have been reinforced by a steady programme of legal and regulatory reform. The Saudi Companies Law of 2022, which came into effect in 2023, represents a significant structural shift. The creation of the Simplified Joint Stock Company (SJSC), the explicit recognition of multi-class share structures (including preferred and redeemable shares), and the removal of the old two-year founder lock-up on incorporation bring Saudi corporate law much closer to global venture practice. These changes enable the implementation of liquidation preferences, conversion mechanics, redemption rights, and class votes, familiar tools to international investors, but previously difficult to establish in the region.

Alongside this, the modernisation of capital markets has accelerated. Reforms have clarified buy-back and treasury share policies, strengthened the Nomu (parallel market) pathway, and expanded the scope for cross-border listings. The recognition of Tadawul as a peer secondary listing venue by other exchanges is a symbolic but important proof point. Together, these reforms mean that IPOs and structured secondary transactions are no longer aspirational concepts but executable routes.

While progress has been made, the regional venture ecosystem's long-term success will hinge on narrowing what could be seen as a credibility gap. Three areas, in particular, merit closer attention.