Complete Guide to Startup Funding in Saudi Arabia 2025

Saudi Arabia's startup ecosystem has transformed dramatically under Vision 2030. With over $3.5 billion invested in Saudi startups in 2024, the Kingdom has become the leading startup hub in MENA.

But navigating the funding landscape requires understanding the unique dynamics of the Saudi market. This guide breaks down everything you need to know.

The Saudi Funding Ecosystem

Government-Backed Programs

1. Monsha'at (Small and Medium Enterprises General Authority)
- Kafalah Program: Loan guarantees up to 80%
- Funding: SAR 50K - SAR 5M
- Timeline: 2-3 months
- Best for: Established businesses seeking growth capital

2. Saudi Venture Capital Company (SVC)
- Funding: SAR 1M - SAR 20M
- Focus: Tech startups with proven traction
- Timeline: 3-6 months
- Equity: 10-25%

3. Riyad Taqnia Fund
- Funding: SAR 500K - SAR 10M
- Focus: Deep tech, AI, robotics
- Timeline: 4-6 months
- Best for: Technical founders with IP

Private Venture Capital

Tier 1 VCs (SAR 5M+)
- STV (Saudi Technology Ventures): Largest VC in MENA
- Wa'ed Ventures: Aramco-backed, energy tech focus
- Raed Ventures: Series A/B specialist
- Sanabil Investments: PIF-backed, large tickets

Tier 2 VCs (SAR 1M - 5M)
- Vision Ventures: Early-stage tech
- Hala Ventures: Consumer tech focus
- Impact46: Social impact startups
- Seedra Ventures: Pre-seed to seed

Angel Networks

1. Saudi Angels
- Ticket size: SAR 100K - 500K
- Process: Monthly pitch events
- Timeline: 1-2 months
- Best for: Pre-seed startups

2. Oqal Angel Investors
- Ticket size: SAR 200K - 1M
- Focus: Tech and healthcare
- Timeline: 2-3 months

Funding Stages Explained

Pre-Seed (SAR 100K - 500K)
What you need:
- Working prototype or MVP
- Initial user feedback
- Clear problem-solution fit
- Founding team in place

Where to raise:
- Angel investors
- Accelerators (Brinc, Flat6Labs)
- Friends and family
- Government grants

Seed (SAR 500K - 3M)
What you need:
- Product-market fit evidence
- 1,000+ active users
- Month-over-month growth
- Clear unit economics

Where to raise:
- Tier 2 VCs
- Angel syndicates
- Kafalah program
- Strategic investors

Series A (SAR 3M - 15M)
What you need:
- Proven business model
- SAR 1M+ annual revenue
- 10,000+ users
- Clear path to profitability

Where to raise:
- Tier 1 VCs
- International VCs (with Saudi presence)
- Corporate VCs
- SVC

The Funding Process: Step by Step

1. Preparation (2-4 weeks)
- Financial model: 3-year projections
- Pitch deck: 10-15 slides
- Data room: Legal, financial, product docs
- Cap table: Clean and organized

2. Outreach (4-8 weeks)
- Warm introductions: Use your network
- Cold emails: Personalized, concise
- Events: Attend startup meetups
- Online: AngelList, LinkedIn

3. Due Diligence (6-12 weeks)
- Financial audit: Revenue, expenses, projections
- Legal review: Incorporation, IP, contracts
- Technical audit: Code quality, security
- Market validation: Customer interviews

4. Term Sheet (1-2 weeks)
- Valuation: Pre-money vs post-money
- Equity: Percentage and dilution
- Board seats: Investor representation
- Liquidation preferences: 1x is standard

5. Closing (2-4 weeks)
- Legal documentation: SHA, SPA, etc.
- Wire transfer: Funds to company account
- Announcements: Press release, social media

Total timeline: 3-6 months (realistic)

What Saudi Investors Look For

1. Saudi Market Expertise
Investors want founders who understand:
- Cultural nuances
- Regulatory environment
- Local competition
- Distribution channels

2. Bilingual Product
Arabic support isn't optional—it's mandatory. Investors check:
- RTL layout quality
- Arabic typography
- Localized content
- Cultural appropriateness

3. Scalability Beyond Saudi
Vision 2030 emphasizes regional expansion. Show plans for:
- GCC markets (UAE, Kuwait, Qatar)
- MENA expansion (Egypt, Jordan)
- International potential

4. Regulatory Compliance
Saudi has specific requirements:
- Data residency (NDMO regulations)
- Payment processing (SAMA guidelines)
- Content moderation (CITC rules)
- Labor laws (Nitaqat, Saudization)

Red Flags That Kill Deals

❌ Unclear use of funds: "We'll figure it out" doesn't work
❌ Unrealistic projections: 10x growth with no plan
❌ Messy cap table: Too many small investors
❌ No traction: "We'll get users after funding"
❌ Founder conflicts: Equity disputes, unclear roles
❌ Ignoring competition: "We have no competitors"

Alternative Funding Options

1. Revenue-Based Financing
- Providers: Lendo, GetVantage (entering Saudi)
- Amount: SAR 100K - 2M
- Repayment: % of monthly revenue
- Best for: SaaS, e-commerce

2. Government Grants
- Monsha'at grants: Up to SAR 500K
- KACST grants: R&D focused
- SIDF loans: Industrial projects
- No equity dilution

3. Crowdfunding
- Platforms: Manafa, Scopeer
- Amount: SAR 50K - 500K
- Equity: 5-15%
- Best for: Consumer products

4. Strategic Partnerships
- Telecom: STC, Mobily, Zain
- Banking: SNB, Riyad Bank, Al Rajhi
- Retail: Jarir, Extra, Noon
- Provides: Capital + distribution

ATK's Advice for Founders

Before you raise:
1. Build an MVP that works
2. Get 100+ paying users
3. Understand your unit economics
4. Clean up your cap table

When you raise:
1. Talk to 20+ investors
2. Get 3+ term sheets
3. Negotiate everything
4. Choose the right partner

After you raise:
1. Communicate monthly
2. Hit your milestones
3. Manage your burn rate
4. Plan your next round

Conclusion

Raising funding in Saudi Arabia in 2025 is more accessible than ever, but it requires:
- A strong product
- Clear traction
- Market understanding
- Professional execution

Need help getting investor-ready? [Let's talk](https://atkabli.com/en/contact).

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ATK — Licensed Freelance Product Studio
Building fundable products for Saudi founders.