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Saudi Arabia dominates startup investment sector during May
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In all nearly $110 million was raised across 35 deals over the month
Saudi Arabia has topped the startup investment market in the Middle East and North Africa (MENA) region during May, Arab News quoted from figures released by entrepreneurship platform Wamda. Around $110 million was raised across 35 deals over the month, the figures revealed.
And the majority came from Saudi Arabia where nine startups raised $46.6 million, most through the $30.5 million Series B funding by Sary, a business-to-business (B2B) marketplace that connects small firms and wholesalers.
Wassim Basrawi, the managing director of Wa’ed, the entrepreneurship arm of Saudi Aramco, told Arab News: “It is not surprising that venture capital deal making is picking up in the Saudi market. We’ve been observing that now for months as the Kingdom emerges from (the coronavirus disease) COVID-19 pandemic.”
So far, during the second quarter of this year, Wa’ed has announced venture capital investments in Saudi firms such as blockchain artificial intelligence company IR4LAB, drone maker FalconViz, and hydroponic technology business Red Sea Farms.
“Public sector support for Saudi entrepreneurs has actually increased during the pandemic, and many Saudi startups, like Red Sea Farms, are starting to also attract international investors,” Basrawi added.
The B2B e-commerce sector generated the most interest, raising $37.6 million throughout the MENA region. Second-most popular among investors was financial technology (fintech) with $18.5 million, while logistics raised $10 million, education technology $6.9 million, and tourism $6 million.
Hussain Al-Alawi, international partner and member of the global advisory board at Zurich-headquartered mergers and acquisitions firm Millenium Associates, told Arab News: “Saudi Arabia’s dominance in raising capital for startups comes as no surprise.
“What we’re seeing in the region and globally is that investment – especially from VCs (venture capitalists) – is being led by technology companies, with fintech, med-tech and agri-tech being particularly in-demand.”