Saudi Arabia’s private capital ecosystem continued its rapid expansion in 2025, reaching a record $1.9B in venture capital investments across 227 deals, according to the Saudi Arabia Private Capital Report H1 2026 from PitchBook and Saudi Venture Capital (SVC).
The market has grown sharply from $181.4M across 109 deals in 2020. Investment rose to about $590M in 2021, exceeded $1.5B in 2022 and reached roughly $1.84B in 2023.
The first half of 2026 was quieter, with $210.3M invested across 55 deals. The report described the slowdown as a temporary pause following several years of record growth, with regional economic conditions prompting investors to take a more cautious approach.
Early-stage funding remained relatively resilient, while software, fintech, business software and productivity companies continued to attract investor interest.
Private equity activity was also strong. Deal value in H1 2026 reached nearly twice the total capital invested during all of 2025, supported by large single-asset vehicle transactions and a gradual shift toward traditional blind-pool funds.
The report said 19 funds are currently raising capital, representing $2.5B in commitments. It also noted that D360’s announced $390.8M investment round had not yet been included in the first-half figures and could significantly lift the full-year total.
Source: Jawlah
