No fast-growing economy can thrive without capital. That’s been true for centuries, and it’s true now in the Kingdom of Saudi Arabia, with a growing venture capital ecosystem supporting some of the country’s fastest-scaling, tech-enabled firms.

The Saudi Venture Capital Company – better known as SVC –is at the heart of building that funding ecosystem. Established in 2018 and as a subsidiary of the SME Bank, part of the National Development Fund (NDF), SVC serves as an investment company with more than $2.2bn assets under management. SVC has played a key role in the establishment of Saudi Arabia as the region’s venture capital hub, investing in funds as well as investing directly in high growth startups and SMEs with growth potential.

“SVC is one of the most important VC market makers in Saudi Arabia, as the company was established for the purpose of stimulating and sustaining financing for startups and SMEs from pre-seed to pre-IPO through investment in funds and direct investment in startups and SMEs,” SVC’s CEO and board member Dr Nabeel Koshak says.

The country is certainly leading the way in the region, ranked first across the Middle East and North Africa for the first time last year - with total VC funding crossing the $1.4bn mark, a 33 per cent hike on the year before, and accounting for 52 per cent of total funding in the region.

All that whilst the rest of the world was seeing venture capital operations hold onto their dry powder amid uncertain geopolitical and economic times.

The Kingdom accounted for 26 per cent of total deals across the region, too, with solid exit activity keeping the pipeline moving. Two fintechs highlighted the growing health of the ecosystem: Tamara, a buy now, pay later (BNPL) platform, raised $340m in a series C round, whilst fellow fintech tabby raised $250m in its own series D. SVC was a part of the latter.

There is no question of resting on any laurels, however. Nora Alsarhan, SVC’s Chief Investment Officer, has plans for more. “It’s clear that we are witnessing the emergence of a vibrant, innovative, and resilient entrepreneurial landscape,” she says.

“At SVC, we view these accommodations not as a peak, but as the foundation for even greater aspirations. Our vision extends beyond regional leadership; we aim for Saudi Arabia to become a pivotal global player in the venture capital ecosystem.”

“Our entrepreneurs are poised to compete on the world stage, attract international investors and establish Saudi Arabia as a global hub for startups.”

Much of that investment, perhaps unsurprisingly given the success of Tabby and Tamara, is in fintech, but that’s not all. E-commerce, enterprise software, healthcare and edtech are all key sectors, too.

Whichever the sector, SVC is at the heart of it, often serving as the first port of call for investors looking to invest in the next generation of Saudi enterprises.

Dr Nabeel Koshak, SVC’s CEO and board member, is clear on the role of the company.

“SVC plays a crucial part in stimulating the VC investment from the private sector to sustain and foster the steady growth of the VC ecosystem in the Kingdom,” he says.

“SVC’s strategy, since its inception in 2018, has contributed to increasing the number of investors in Saudi startups, encouraging existing and new financial companies to establish VC funds, and motivating regional and global funds to invest in Saudi startups.

“Accordingly, the funding deployed into Saudi Arabian startups grew 21 times to a record high in 2023 versus 2018, the year SVC was launched.”

With economic growth still high on the agenda in Saudi and opportunities abounding, it doesn’t look like SVC will be anything but busy over the coming years.