Saudi Arabia’s Venture Scene Goes Global
RIYADH: Saudi Arabia’s venture capital ecosystem is entering a new phase of global relevance, with 2026 expected to mark a turning point defined by exits, public listings, and cross-border dealmaking.
According to Philip Bahoshy, CEO of venture data platform MAGNiTT, the Kingdom is poised for a “record year of liquidity events,” signaling a shift away from the funding-led momentum that dominated 2025. Instead, the coming year is expected to be shaped by IPOs, mergers, and acquisitions, offering founders and investors clearer pathways to returns.
Bahoshy said Saudi Arabia is likely to see one or two domestic IPOs, alongside a surge in M&A activity, which he described as a key liquidity route for the ecosystem. While avoiding hype-driven labels, he also expects the emergence of multiple billion-dollar companies, reflecting the growing scale and ambition of Saudi startups.
Maturity, focus, and global appeal
Summarizing the state of the venture market in 2025, Bahoshy described it using three words: attractiveness, focus, and maturity. He said the ecosystem has steadily evolved over the past five to six years, with capital now flowing across all stages of the investment funnel.
Unlike earlier cycles dominated by mega-rounds, 2025 saw a more balanced mix of early-stage, mid-stage, and late-stage funding, which Bahoshy called a strong indicator of long-term ecosystem health. He also credited the government’s increasing emphasis on problem-solution driven innovation, aligning capital deployment with national priorities.
International interest has grown alongside local institutional participation, with global investors drawn not only by geopolitics but by the scale, traction, and maturity of Saudi companies. Major regional and international events have further helped position the Kingdom and the wider Gulf Cooperation Council as a serious venture destination.
Strong momentum heading into 2026
Bahoshy said Saudi Arabia closed 2025 with sustained deal activity, defying the typical year-end slowdown. He noted that funding momentum remained consistent through the second half of the year, reinforcing confidence in continued capital formation and investor appetite.
This momentum, he said, is the result of deliberate efforts to support every stage of company growth — from incubators and accelerators at the early stage to seed funds, Series A support, and later-stage capital backed by both public and private initiatives.
Taking Saudi Arabia’s story abroad
Looking ahead, Bahoshy framed 2026 as a year for expanding Saudi Arabia’s outbound investor engagement. While the Kingdom has made significant progress in attracting global investors domestically, he said the next step is sharing Saudi Arabia’s venture story internationally through targeted delegation trips and global outreach.
He pointed to recent engagements in London, Silicon Valley, Korea, and Hong Kong, arguing that Saudi Arabia has already achieved most of the work needed to attract attention and now must focus on shaping global perception.
AI to take a larger share
Bahoshy also expects artificial intelligence to play a growing role in the venture landscape, forecasting that AI could account for 20 to 30 percent of total venture capital deployed in Saudi Arabia in 2026.
As the ecosystem matures, the combination of exits, global participation, and sectoral focus suggests Saudi Arabia’s venture scene is no longer emerging — but firmly entering a global phase of competition and relevance.
