Riyadh – Mubasher: Funding in Saudi Arabia-based startups has grown significantly faster than the average in MENA despite the backdrop of Covid-19, according to MAGNiTT’s 2020 Saudi Arabia Venture Capital Report.

The region’s 17 countries saw a 13% increase in total funding from 2019 to 2020, while Saudi Arabia’s startup funding grew by 55%, reaching a record high of $152 million.

While the MENA region witnessed a 13% drop in the number of deals from 2019 to 2020, Saudi Arabia saw a 35% rise. According to the report, Saudi Arabia ranked third for total funding in MENA, catching up to the UAE and Egypt, which took the first and second spots, respectively. 

Last year saw multiple large break-out deals in the kingdom, with the increase in the total funding amount partially attributable to KSA’s top-five deals by funding amount that accounted for 56% of all the KSA-based startups in 2020.

The coronavirus pandemic impact was observed in the second half (H2) of 2020 with 63% lower deals when compared to H1-20.

E-commerce investments accounted for 45% of all venture funding in KSA. The full year's amount of $152 million was mainly helped by a record H1-20, with $111 million raised in the first half of the year, crossing the total amount raised in 2019.