Saudi defence fund speeds up maritime sector push following Houthi advance

MASNA Ventures, Saudi Arabia's first defence-focused venture capital fund, is seeking regulatory approval to raise its capacity to $150 million from $100 million and is accelerating investments in local manufacturing of US and allied defence technology, particularly drones, autonomous systems and anti-drone systems. The sharia-compliant fund, anchored by a prominent Saudi family office, has committed capital so far from Saudi nationals and is weighing whether to bring in international investors as it targets three operational joint ventures and six capital investments in 2026.

"This is a bet on Saudi sovereignty, and we want Saudis who believe in the sector sharing in the wins," said Lucien Zeigler, General Partner at MASNA Ventures.

Zeigler said MASNA is speeding collaboration with so-called Prime Original Equipment Manufacturers and startup unicorns whose "connected, autonomous platforms were designed for exactly what is happening in the Gulf and the Red Sea." He declined to name partner firms because of non-disclosure agreements, though he referenced Prime manufacturers as major defence firms such as Lockheed Martin and Boeing. The fund has already formed a partnership with SR2 Defence Systems, a local manufacturer Zeigler co-founded, to develop advanced defence technology on Saudi soil.

MASNA has led a funding round for a joint venture between SR2 and US drone maker Vector Defense that Zeigler said is "ramping up now" and was three times oversubscribed. The firm also plans to back another joint venture producing anti-drone systems built around "world-leading US hard-kill technology." Zeigler emphasized the urgency of those capabilities amid recent regional tensions: "Right now, it is drones and aerial defence above all else. The events of this past week emphasize those needs."

Global venture capital investment in defence tech has surged this year, with PitchBook data showing $19.4 billion invested globally so far—about double last year's total. Saudi Arabia's own VC scene recorded roughly $200 million in deals in 2026, underscoring growing local investor interest in security-related technologies. MASNA's planned upsize from $100 million to $150 million reflects a strategy to narrow capability gaps exposed by recent conflict in the Gulf, and to onshore production of hardware and autonomous platforms.

MASNA's stated priority is maritime systems, including unmanned aerial, surface and underwater vehicles. "Maritime is absolutely a priority... we are actively accelerating that domain right now," Zeigler said, linking the fund’s focus to the emergence of a new Houthi presence near the Bab el-Mandeb strait and recent strikes that have threatened regional oil exports and shipping routes in the Red Sea.

Operationally, the fund aims to catalyse both manufacturing and systems integration through joint ventures with established defence primes and specialist US firms, while deploying capital into startups developing autonomous platforms and counter-drone solutions. With committed Saudi capital to date and potential additional international partners under consideration, MASNA is positioning itself to scale domestic production and field deployments of drones, anti-drone systems and other autonomous defence technologies in the near term.

Outlook

• MASNA is targeting three operational joint ventures and six capital investments in 2026 as it expands to $150 million.
• Priority focus areas are maritime autonomy, unmanned aerial/surface/underwater systems and anti-drone "hard-kill" technologies.
• Partnerships with SR2 Defence Systems and Vector Defense are already underway; additional collaborations with Prime OEMs are being pursued under non-disclosure agreements.