Saudi Arabia Invests Heavily in Tech Startups During LEAP 24

Riyadh: Saudi Arabia solidified its position as a regional tech and investment hub during LEAP 24, as it announced a remarkable $888 million in investment funds and funding rounds to support innovation and tech entrepreneurship in the Kingdom and the wider region.

On the second day of LEAP 24, Investcorp launched a growth-stage fund with $500 million, while Oasis Capital unveiled "Fund II" with a capital of $100 million. The National Development Fund and the Social Development Bank established the Gaming and Esports Investment Fund, amounting to $40 million and managed by Impact46. Merak Capital also launched a fund of $80 million to support game accelerators in Saudi Arabia.

Recognizing the growing potential, Takamol Holdings introduced a $50 million investment arm focused on funding early-stage tech companies. Additionally, Plug and Play and X by Unifonic each launched investment funds specifically targeting technology startups.

During LEAP 24, startups capitalized on Saudi Arabia's status as the largest tech and digital economy in the MENA region, raising over $53.4 million through funding rounds. Notable funding achievements include BRKZ securing $8 million in a Series A round, FanZ gathering $1.5 million in pre-seed funding, Lawazem raising $8 million in a pre-Series A round, RemotePass acquiring $5.5 million in a Series A funding round, and Moyasar securing a Series A funding round to expand its operations across the MENA region.

In line with their commitment to support startups, a liquidity bridge initiative was launched during LEAP 24. The SourceTech initiative provides immediate financial assistance, covering up to 50% of capital investment financing, aiming to incentivize technology outsourcing companies to establish and expand their services in Saudi Arabia.

Furthermore, the National Technology Development Program (NTDP) unveiled five initiatives to expand the IT sector and foster technological growth. These initiatives will guide and source funding for pre-seed and early-stage startups, focusing on emerging technologies such as AI, quantum computing, space technology, biotechnology, smart cities, mobility technology, open radio access networks, and deep tech.

NTDP's AIM initiative aims to stimulate the AI ecosystem and elevate local talent, while the AdoptTech initiative supports digital transformation for startups and SMEs. By enhancing the technological ecosystem and providing access to financial assistance and technological solutions, Saudi Arabia is taking significant strides toward nurturing a robust tech-driven economy.