Saudi Arabia plans investments worth $240 million in the first quarter of 2024: report

After record results in 2023, Saudi Arabia remained the best-financed country in the region in the first quarter of 2024, with investments reaching $240 million. From the latest “KSA Venture Investment Report for the first quarter of 2024” prepared by MAGNiTT shows that despite a 70 percent quarterly decline and a 42 percent annual decline in investment, Saudi Arabia’s performance reflects overall market trends in the Middle East and North Africa (MENA) region.

The transaction flow remains flexible

While financing has declined, deal flow in Saudi Arabia has remained stable. The country reported 35 transactions in the first quarter of 2024, remaining stable compared to the fourth quarter of 2023 and recording a 13 percent annual decline. Notably, the top 10 deals by amount in Saudi Arabia accounted for 85 percent of total committed capital in the first quarter of 2024. The report also highlighted that the decline in financing outpaced the decline in deal flow, highlighting smaller deal sizes on average.

In the first quarter of 2024, the $130 million Salla app deal in Saudi Arabia represented a remarkable 54% of total financing in the country. Thanks to this agreement, Saudi Arabia will become the only country from the MENA region to witness mega-investments in 2024.

Additionally, Saudi Arabia’s investment, which reached $240 million, represented 65 percent of the MENA region’s total capital committed in the first quarter of 2024.

Read: Central Bank of Oman issues treasury bills worth $57.24 million

E-commerce and retail sector

The e-commerce and retail sector has maintained its position as a leading industry in Saudi Arabia’s venture landscape, driven by the Salli mega-deal. However, fintech has emerged as the most transacted industry in Saudi Arabia and the entire MENA region, including the United Arab Emirates and Egypt.

Despite lower funding levels, Saudi investor participation recorded a 5 percent annual growth in the first quarter of 2024. The report also highlighted a noticeable increase in Saudi investor participation from 2023.

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