Venture capital deals in the Middle East averaged $2.4 billion annually between 2021 and 2025, according to a report by Aladdin, part of BlackRock. The report points to continued funding activity in the region while the United States and Europe faced more difficult investment conditions.
The report said capital flows are gradually shifting toward the Middle East, supported by stronger local investment and a wider range of opportunities in technology, infrastructure and other private market sectors.
Saudi Arabia accounted for more than 60% of funds domiciled in the region that closed since 2015, making it the leading market for capital raising. Saudi Arabia and the UAE are also driving private capital activity through economic transformation programs, infrastructure investment and stronger institutional investment capabilities.
The Public Investment Fund surpassed the direct deal activity of investors from outside the region in the Middle East in 2023, with the gap continuing to widen, according to the report.
Technology, digital infrastructure, energy, utilities, transportation, data centers and AI-related infrastructure are among the sectors attracting investor interest. GCC countries are expected to invest about $2.1 trillion by 2030, with spending focused on economic resilience, according to BlackRock Investment Institute research.
Family offices accounted for nearly 50% of active private capital investors in the Middle East in 2026. Investor confidence has also increased, with 83% of regional limited partners holding a positive view of, or considering, private equity mandates, up from 70% in 2019.
Source: EntArabi
