Saudi Arabia’s venture capital ecosystem is not just growing—it’s flourishing in a way that sets it apart globally. Unlike many other markets that rely heavily on foreign partnerships, Saudi Arabia has developed its VC ecosystem organically, driven by local talent and expertise. With government support serving as the backbone, the Kingdom has seen remarkable growth, establishing itself as a key player in the Middle East’s investment landscape.
“We are building our ecosystem organically with massive support from the government,” explains Fahad Alidi. “But at the end of the day, it’s very organic.” This approach highlights Saudi Arabia’s commitment to developing homegrown talent in the financial and tech sectors, creating a sustainable ecosystem that stands on its own.
From Zero to 50: Rapid Growth in a Decade
A decade ago, venture capital barely existed in the Kingdom. Today, more than 50 VCs operate within Saudi Arabia’s ecosystem, with none initially relying on foreign partnerships.
“We’ve grown from having no VCs to over 50 today, entirely built by our own talent and financial experts,” says Alidi. This self-reliance is a testament to the strength and expertise within the local financial sector, which has played a pivotal role in setting up and supporting VC firms in Saudi Arabia.
Basmah Alsinaidi reflects on the evolving ecosystem: “We’ve seen VCs come and go, but it’s the local VC ecosystem that carried the weight of investments over the last five years.” This resilience has made the Kingdom’s venture capital scene unique, attracting attention from international investors eager to tap into the opportunities.
Global Partnerships: Complementary, Not Competitive
While Saudi Arabia’s VC ecosystem grew independently, the arrival of global investors is now viewed as a welcome development. “The welcome of global VCs is definitely a good step in the right direction,” 
says Alsinaidi. However, rather than seeing these partnerships as competition, the focus is on creating synergies through complementary skills and shared knowledge.
The collaborative spirit reflects the inclusive vision behind Saudi Arabia’s economic transformation, where international investors and local VCs work together to drive growth across multiple sectors, from technology to SMEs.
Saudi Arabia: The Last Great Success Story of the 21st Century?
The pace and scale of Saudi Arabia’s economic transformation suggest that the Kingdom could be one of the last great economic success stories of the 21st century. “Saudi Arabia may just be the last success story of such magnitude in the 21st century,” reflects Somi Arian. With a burgeoning VC ecosystem, aligned government initiatives, and growing global interest, the Kingdom is positioning itself as a model of sustainable economic transformation.
The Kingdom’s ability to grow its venture capital market organically and foster partnerships with global investors demonstrates the power of local expertise combined with strategic collaboration. Saudi Arabia is not just catching up—it’s creating a new blueprint for economic success, one that future markets might look to for inspiration.
