RIYADH — Foreign investment in Saudi Arabia’s private markets climbed to SR20 billion in 2025, accounting for nearly 60 percent of all private investments in the Kingdom, according to a new report released by the Saudi Venture Capital Company (SVC).

The report, titled “Foreign Investment in Saudi Arabia’s Private Markets,” outlines the key developments that have enhanced the Kingdom’s attractiveness to international investors and reinforced its status as a leading destination for private capital.

According to SVC, Saudi Arabia’s private investment landscape has transformed from an emerging market into one of the most dynamic investment destinations in the Middle East and North Africa (MENA). This progress has been supported by extensive economic reforms, improved regulations, and a more business-friendly investment environment.

SVC Chief Executive Officer Noura Al-Sorhan said international investors are increasingly viewing Saudi Arabia as an independent investment destination rather than part of a broader regional strategy. Nearly 150 investment firms from the United States, Europe, and Asia are now actively participating in the Kingdom’s private markets.

She noted that investors now have greater confidence due to improved market infrastructure, clearer investment pathways, and stronger partnerships with local institutions, creating a more favorable environment for long-term investments.

Al-Sorhan also highlighted SVC’s role in supporting market growth by investing alongside leading international fund managers and assuming early-stage investment risks that encourage greater foreign participation.

Since 2019, Saudi Arabia has attracted more than SR40 billion in foreign private investment, reflecting growing global confidence in the Kingdom’s long-term economic outlook.

The report found that venture capital continues to be the primary driver of foreign investment, with Saudi Arabia maintaining its position as the largest venture capital market in the MENA region for the third consecutive year.

Private equity activity has also expanded through an increasing number of mid-sized transactions, while private debt financing has become an important source of funding for businesses preparing for growth and future public listings.

Foreign investor participation has grown significantly, increasing from 28 investors in 2019 to 148 investors in 2025, with companies from North America, Europe, Southeast Asia, and the wider MENA region strengthening their presence in the Saudi market.

Investment activity has become more diversified across industries. While fintech and e-commerce continue to attract the highest levels of investment, growing interest is also being seen in healthcare, enterprise software, education technology, logistics, and food and beverage sectors, reflecting the Kingdom’s broader economic diversification goals.

The report identified seven major factors supporting continued foreign investment growth, including macroeconomic stability, updated regulations, stronger capital market infrastructure, government-backed investment initiatives, targeted sector programs, the expanding presence of global investors, and a structured value-creation approach across the private investment ecosystem.

SVC concluded that Saudi Arabia’s private investment market is entering a more mature phase, driven by stronger institutions, increasing international participation, and broader diversification across investment sectors.