As 2025 progresses, Saudi Arabia’s venture capital (VC) and startup ecosystem continues to excel on the global stage, reinforcing its status as the foremost hub for innovation and investment in the Middle East and North Africa (MENA) region.
The Kingdom’s forward-thinking strategies, substantial financial backing, and rapidly growing entrepreneurial landscape are making it one of the most attractive destinations for venture capitalists and startup founders.
Saudi Arabia’s remarkable ability to attract significant funding rounds, such as Zension Technologies’ $30 million Series A and the $150 million Global Ventures III tech fund, is a testament to its thriving ecosystem. These investments and the burgeoning startup scene are integral to Saudi Arabia’s broader economic goals under its Vision 2030 initiative.
VC space witnesses massive movements
A standout development in Saudi Arabia’s VC space in early 2025 is the $30 million Series A funding round raised by Zension Technologies, a Saudi-based startup founded in 2018 by Khalid Saiduddin and Nikos Anastasiadis. Zension offers an innovative solution in the consumer electronics space, providing protection, extended warranties, and guaranteed buyback services for mobile devices and other consumer electronics.
The Series A funding round was led by Wa’ed Ventures, the venture capital arm of Saudi Aramco, with additional participation from Sumitomo Corporation from Japan and regional investor Global Ventures.
This influx of capital will enable Zension to expand its service offerings and further solidify its position in the competitive markets of Saudi Arabia and the UAE. In particular, the company plans to launch a new service, Zaam, in the first quarter of 2025, which will likely expand its footprint and offer more comprehensive solutions to customers in the region.
Zension’s success reflects a broader trend of Saudi Arabia investing heavily in high-potential tech startups that provide valuable consumer services. With major retailers, telecommunications companies, and original equipment manufacturers already integrated into its model, Zension is well-positioned to capitalise on the growing demand for mobile device protection in the region.
In another significant move, Saudi Venture Capital (SVC) has announced its backing of Global Ventures III, an early-stage venture capital fund focusing on technology investments across Saudi Arabia, the MENA region, Sub-Saharan Africa, and parts of Asia.
This fund, which exceeds $150 million in size, aims to support startups in sectors such as supply chain technology, agritech, enterprise software as a service (SaaS), artificial intelligence (AI), and deep tech.
SVC, a subsidiary of SME Bank under Saudi Arabia’s National Development Fund, was established in 2018 to help stimulate and sustain funding for startups across their growth stages. Through its partnership with Global Ventures, SVC aims to catalyse venture investments in Saudi-based startups, especially in their early stages.
According to Nabeel Koshak, CEO of SVC, the Kingdom’s venture capital landscape continues to expand, reflecting a strong market opportunity for emerging technologies and exceptional founders. This partnership underscores the Kingdom’s commitment to building a robust and innovative ecosystem that is positioned to lead in the region.
Noor Sweid, the founder and managing partner of Global Ventures, echoed Koshak’s sentiment, emphasising the vast market opportunities available in Saudi Arabia. Sweid noted that the country has become a key player in the global startup ecosystem, with emerging technologies thriving thanks to the country’s support for innovation and entrepreneurship.
Another promising Saudi-based startup making waves in early 2025 is Revie, an interior design and renovation platform that has secured $2.5 million in seed funding. Founded in 2024 by Ibrahim Abu Khadra, Revie offers an end-to-end solution for residential and commercial renovations, connecting customers with vetted service providers and facilitating the entire renovation process from design to execution.
Led by Sanabil Venture Studio by Stryber, the funding will help Revie further develop its platform and expand its technological capabilities to cater to the growing demand for renovation services in Saudi Arabia.
By providing a seamless user experience and building a scalable foundation, Revie is well-positioned to become a leader in the Kingdom’s rapidly expanding interior design and home renovation market.
The Saudi government’s support for startups like Revie aligns with its larger goal of promoting entrepreneurship and encouraging the growth of small and medium enterprises (SMEs) in various sectors. With home renovations becoming increasingly popular in the Kingdom, platforms like Revie are capitalising on the rising demand for efficient, high-quality design and construction services.
Vreal, a Saudi-based startup specialising in augmented reality (AR) and virtual reality (VR), has successfully raised a pre-seed investment round. Founded in 2022, Vreal focuses on providing e-commerce businesses with the ability to convert products into 3D models in just 30 seconds, thanks to its advanced scanning technology.
The pre-seed funding was secured from the numu Angels Investment Community, a group focused on supporting innovative startups in Saudi Arabia. With this funding, Vreal intends to expand its applications to various industries, including interior design, real estate, tourism, and heritage preservation.
The increasing popularity of AR and VR technologies in the consumer space presents an exciting opportunity for Vreal to leverage its technology and offer new experiences for businesses and consumers.
By tapping into Saudi Arabia’s growing interest in these innovative technologies, Vreal is poised to be a key player in the future of e-commerce and beyond.
What’s happening in the MENA startup scene?
MilkStraw AI, a UAE-based artificial intelligence startup, recently secured $600,000 in pre-seed funding. The company, founded in 2024 by Jawad Shreim, specialises in AI-powered software solutions that help businesses optimise and automate their cloud infrastructure costs.
The pre-seed funding round was led by Flat6Labs, with participation from Angel Spark, Beyond Capital, and various angel investors. With this investment, MilkStraw aims to expand its operations across the MENA region, helping businesses optimise their cloud spending and reduce costs using AI-driven solutions.
As enterprises in the MENA region increasingly rely on cloud infrastructure for their operations, AI solutions like those offered by MilkStraw will play a crucial role in helping companies optimise their resources and drive cost efficiencies.
This investment reflects a broader trend of increasing support for AI and machine learning startups in the region, as Saudi Arabia and its neighbours continue to invest in emerging technologies to drive economic growth.
In another key development, Mintiply Capital, a UAE-based advisory and investment banking firm, has formed an exclusive partnership with US-based Fuel Venture Capital. This collaboration aims to launch a Special Purpose Vehicle (SPV) targeting early-stage startups across the Gulf Cooperation Council (GCC) region, with a particular focus on the UAE.
The SPV will provide targeted funding and resources to emerging startups in the region, driving innovation and supporting the development of the UAE’s entrepreneurial ecosystem. This partnership is part of the UAE’s broader strategy to foster a dynamic startup environment that contributes to the country’s economic growth and diversification.
ReNile, an Egypt-based agritech startup, has secured $450,000 in funding to further develop its platform. Founded in 2017 by Hazem El-Tawab, ReNile provides farmers with a full-stack solution that includes monitoring systems, emergency alerts, control systems, and analytics to improve farming practices. The platform supports data-driven farming, enabling farmers to implement best practices and enhance efficiency and yield.
Agritech solutions like those offered by ReNile are becoming increasingly important in the MENA region as countries seek to boost food security and agricultural sustainability. The funding will allow ReNile to expand its reach and continue to provide farmers with the tools needed to adapt to changing agricultural demands.
Growth in MSME lending
The growth of micro, small, and medium enterprises (MSMEs) in Saudi Arabia is another critical indicator of the country’s evolving economic landscape.
According to the Saudi Central Bank, credit facilities extended to MSMEs reached SR329.23 billion ($87.8 billion) in the third quarter of 2024, reflecting a 22.6 per cent year-on-year increase.
This growth aligns with the government’s ambitious goal to allocate at least 20 per cent of financial institutions’ lending portfolios to MSMEs, as part of Vision 2030.
This increase in MSME lending highlights the Kingdom’s commitment to supporting entrepreneurship and ensuring that businesses at all stages of development have access to the capital they need to thrive.
In 2024, Saudi Arabia once again led the MENA region in venture capital investments, raising $750 million across 178 deals. This marks the second consecutive year that the Kingdom has retained its position as the top destination for venture capital in the region. Although overall VC funding in MENA saw a decline, Saudi Arabia’s strong performance is indicative of its continued dominance in the regional startup ecosystem.
The Kingdom’s success is driven by a combination of factors, including government-backed initiatives, the rise of innovative tech startups, and a growing number of international investors seeking opportunities in the Kingdom. This trend is expected to continue as Saudi Arabia remains a key player in the broader Middle Eastern and global startup ecosystem.
Global trends and diverse ecosystems
While Saudi Arabia is asserting its dominance in the MENA region, the global investment landscape is becoming increasingly dynamic. The Asian Financial Forum in Hong Kong provided a platform for a broad spectrum of venture capitalists and entrepreneurs to discuss the future of global tech investments.
In particular, the discussion highlighted a rising trend of investments in emerging technologies like AI, fintech, and automation, with VC firms across the globe vying for a stake in the next big breakthrough.
Ronald S. Simorangkir, CEO of Mandiri Capital Indonesia (MCI), the venture capital arm of Indonesia’s state-owned Bank Mandiri, spoke about the evolving nature of the investment environment in Southeast Asia. While MCI remains focused on its home market, Indonesia, Simorangkir noted the growing importance of aligning investments with national agendas and the potential for long-term value creation.
His firm’s investments, which currently target Indonesian startups, are geared toward fostering the country’s development by focusing on sectors like fintech, which have seen significant growth in recent years. Simorangkir also spoke about the need for synergies between technology investments and the broader business ecosystem. For example, Mandiri Capital’s focus on data compression technologies is designed to improve safety and security, an essential concern for archipelagic nations like Indonesia, where vast geographical distances can make connectivity a challenge.
Similarly, Anna Fang, the CEO and founding partner of ZhenFund, a China-based venture capital firm, shared her insights on the firm’s strategy, which is based not on specific sectors or themes but on identifying the right individuals—founders who exhibit unique potential. ZhenFund’s approach has led to a remarkable increase in deal volume, with a 60% rise in the number of deals in 2024 alone.
Fang highlighted the firm’s focus on four main categories of founders: young talent, tech-savvy individuals, serial entrepreneurs, and young innovators. The firm’s ability to identify promising founders, regardless of their sector, has allowed ZhenFund to stay ahead of the curve and continue making investments in high-growth ventures.
Across the globe, startup ecosystems are becoming increasingly diverse, and the focus is shifting to long-term sustainability and technological impact rather than just rapid returns. This trend, exemplified by Saudi Arabia’s AI investments and the diverse interests of firms like Mandiri Capital and ZhenFund, reflects a more nuanced approach to venture capital.
By prioritising long-term value creation and strategic alignment with broader economic goals, these firms are positioning themselves as key players in the future of global tech investments. Whether in the MENA region, Southeast Asia, or China, the commitment to supporting the next generation of transformative technologies and visionary entrepreneurs is clear.
Kingdom gets Newlab boost
Newlab, a global venture platform for critical technology startups, will expand into the Kingdom in 2025, through an integrated public-private partnership involving multiple public sector agencies and leading industry partners. The initiative marks a key milestone in Newlab’s mission to accelerate the commercialisation of critical technologies by aligning cross-sector partners, infrastructure, capital, and resources in strategic geographies around the world.
Newlab Riyadh will attract leading critical-tech startups to Saudi Arabia and accelerate commercialisation outcomes that will translate into measurable economic impact in the Kingdom and the broader region.
The company will establish an initial beta space in Riyadh in 2025 to serve as an anchor for the founding startup ecosystem while commencing the development of a larger hub, which will come to life in 2026.
The innovation hub, apart from providing essential technical infrastructure for startups and partners to convene and collaborate, will also feature signature Newlab elements like flexible workstations, private studios, labs, workshops, and event areas designed for large-scale presentations and product launches.
Newlab will also launch sector-focused and challenge-based programmes designed to attract leading startups, drive targeted investment activity, and enable structured collaboration between startups and potential end-users in the region.