A new report by Saudi Venture Capital (SVC) has revealed that deep tech now accounts for an estimated 40% of all global venture capital investments, signaling a major shift toward science-driven innovation. Titled “Unlocking private capital for deep tech in Saudi Arabia,” the report details this global trend while analyzing the Kingdom’s opportunities to grow its own deep tech ecosystem in alignment with Vision 2030.
Quick Facts
- Deep tech captures 40% of global venture capital.
- Saudi Arabia’s ecosystem is growing steadily.
- Knowledge hubs include Riyadh, Thuwal, and Dhahran.
A Fundamental Shift in Global Investment
The report frames deep tech as one of today’s most strategic investment themes, transforming advanced scientific research in fields like AI, quantum computing, and biotechnology into tangible commercial applications. This evolution is seen not just as a source of innovation, but as a primary driver for long-term economic competitiveness.
Nora Alsarhan, Deputy CEO and Chief Investment Officer at SVC, commented on the findings: “Deep Tech represents a fundamental shift in global investment opportunities. It is no longer limited to technological innovation and has become a key driver of long-term economic growth, given its ability to transform scientific research into impactful products and companies.”
She added, “At SVC, we focus on stimulating private capital investment in this sector and building strategic partnerships that enable science-based startups. We are committed to strengthening the integration of capital, research, talent, and infrastructure.”
Saudi Arabia’s Accelerated Push into Deep Tech
Saudi Arabia is moving quickly to establish its presence in the sector, leveraging its expanding research base, top-tier universities, and national programs. The report notes that science-based startups are emerging across the Kingdom, particularly in advanced computing and industrial automation.
These companies are concentrated in key knowledge hubs such as Riyadh, Thuwal—home to King Abdullah University of Science and Technology (KAUST)—and Dhahran. This concentration indicates a clear transition from academic research to viable investment and commercial activity.
The Crucial Role of ‘Patient Capital’
A key insight from the report is the critical role venture capital plays in financing deep tech. Due to complex, high-risk projects with extended development cycles, these startups require long-term funding and specialized expertise.
This highlights the necessity for flexible financing models built on “patient capital”—investment that can support companies through lengthy R&D phases until they reach commercial maturity. SVC’s strategy is focused on stimulating this type of private capital investment to build globally competitive Saudi companies.
Building an Integrated Ecosystem for Growth
The report concludes that sustaining the Kingdom’s deep tech momentum requires a concerted effort to align incentives, improve market access for startups, and enhance collaboration among all stakeholders. This includes adopting innovation-friendly policies, activating public funding, and strengthening ties between universities and investors.
By creating an integrated ecosystem, Saudi Arabia aims to accelerate the conversion of scientific innovation into sustainable economic value, strengthening its position as a regional and global hub for investment.
About Saudi Venture Capital (SVC)
Saudi Venture Capital (SVC) is a government investment company established in 2018. It aims to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO by investing $1.6 billion through investment in funds and co-investment in startups. SVC is a key enabler of Saudi Arabia’s private capital ecosystem, supporting investment in strategic sectors and fostering innovation to diversify the Kingdom’s economy.
Source: Zawya
