A new $100 million venture capital fund, Masna Ventures Fund I, has launched in Saudi Arabia with the strategic goal of localising the nation’s defence manufacturing sector. The fund, the first of its kind in the Kingdom, is actively engaging with institutional investors from Saudi Arabia, the United States, and Europe to accelerate the country’s transition from a technology procurer to a major producer.
A Strategic Push for Vision 2030
The launch of Masna Ventures aligns directly with Saudi Arabia’s Vision 2030, which aims to localise 50% of its defence manufacturing by the end of the decade. The Kingdom has already made significant strides, with Ahmad Al-Ohali, governor of the General Authority for Military Industries (GAMI), announcing at the World Defense Show in Riyadh that localisation had reached nearly 25% by the end of 2024.
“There’s a clear recognition that Saudi Arabia is moving from procurement toward production, and investors want exposure to that transition through an institutional structure rather than through one-off transactions,” said Lucien Zeigler, co-founder of the fund.
Bridging Global Tech with Local Manufacturing
The fund aims to de-risk market entry for international startups and mid-size companies by providing a clear pathway into the Kingdom’s manufacturing ecosystem. Historically, scaling in Saudi Arabia required significant local infrastructure and a deep understanding of complex regulatory and localisation requirements.
Masna Ventures will back US and allied defence-tech companies, facilitating the establishment of their manufacturing operations within Saudi Arabia. “On the technology side, [the fund] supports companies looking for a credible pathway into Saudi manufacturing without having to build everything from scratch,” Zeigler explained.
Investment Focus and Market Opportunity
With Saudi Arabia allocating $78 billion to defence in 2024, making it the world’s fifth-largest military spender, the market opportunity is substantial. Masna Ventures will concentrate its investments in high-growth, strategic sectors including unmanned aerial vehicles (UAVs), aerospace, counter-drone technology, automated systems, AI-enabled defence systems, and maritime technologies.
About Masna Ventures Fund I
Masna Ventures Fund I is a $100 million venture capital fund dedicated to institutionalising private capital around Saudi Arabia’s defence manufacturing sector. Co-founded by American entrepreneur Lucien Zeigler (CEO of Redsalt Defence and SR Advanced Strategic Systems) and Nehal Farooqui (head of Benson Technologies), the fund invests in leading US and allied defence-tech companies to help them establish manufacturing operations in the Kingdom, supporting the goals of Vision 2030.
Source: AGBI
