The Kingdom of Saudi Arabia ranked 12th in the venture capital availability indicator, one of the main sub-indicators in the World Competitiveness Yearbook report issued by the World Competitiveness Center. The ranking reflects the keenness of the Small and Medium Enterprises General Authority “Monsha’at” to create a competitive environment that encourages the entry of new enterprises into the market, enables SMEs to grow and expand, and provides suitable financing solutions and investment opportunities, in order to raise their contribution to GDP to 35% by 2030.

The venture capital initiative launched by Monsha’at contributed to the Kingdom’s progress in the venture capital availability indicator, particularly as it aims to stimulate equity financing for SMEs and entrepreneurs, strengthen avenues for investing in startups at their various stages of growth, and make use of local capabilities by investing in companies at the early and growth stages, with the aim of creating financial returns for investors and achieving strategic returns that serve the growth of the economy in the Kingdom of Saudi Arabia.

In 2018, Monsha’at established the Saudi Venture Capital Company with capital of up to SAR 2.8 billion, with the aim of contributing to the growth and diversification of the Kingdom’s economy and enabling and supporting SMEs and encouraging them to explore new fields in several ways, one of which is providing the necessary support and venture capital investment in startups, along with investing in venture capital funds, in order to close the current funding gaps.

The company invests in startups through direct investment in startups at their various stages of growth, alongside individual (angel) investors, venture capital funds, and experienced investors, in order to close the current funding gaps.

Monsha’at also established the Venture Capital and Private Equity Association with the aim of raising the level of professionalism in the venture capital and private equity sector, strengthening the sector’s role in supporting economic growth in the Kingdom, proposing and improving the regulations and policies related to the sector, working to raise awareness of it, and ensuring adherence to the best professional standards that stimulate investment in the venture capital sector and support entrepreneurs.

The World Competitiveness Yearbook report aims to analyze countries’ ability to create, maintain, and develop an environment that supports and stimulates competitiveness. It is one of the most comprehensive reports on national competitiveness, comparing 63 countries on the basis of four main pillars: economic performance, government efficiency, business efficiency, and infrastructure.