Saudi startups raise $293M on day three of Leap26 in Riyadh

Saudi startups announced $293 million in new financing across 11 investment deals and venture capital funds on the third day of Leap26 in Riyadh, signalling heightened investor activity as local companies accelerate regional and international expansion. The totals were disclosed during conference sessions and underscore the Kingdom’s growing share of venture capital flows in the Middle East and North Africa.

"Saudi Arabia captured 45% of total venture capital funding in the Middle East and North Africa this year, up from 32% in 2024," said Assistant Minister of Communications and Information Technology Sultan Al‑Saeed. He highlighted the dramatic scale-up of the market, noting that startup financing in the Kingdom has grown 27‑fold since 2018.

Context and deal activity at Leap26

• The Kingdom led the regional venture market for the third consecutive year, taking more than 37% of all deals and now hosting nine unicorns — roughly half of the region’s total.
• Several companies used Leap26 to announce international moves or strategic partnerships. US venture firm Andreessen Horowitz (A16Z) entered the Saudi market for the first time through a partnership with Stitch.
• Restaurant management platform Foodics reported growth past 40,000 branches and disclosed the acquisition of Greek firm Norma AI, a move that expands its geographic footprint and product capabilities.
• Customer engagement platform Unifonic extended its international reach through a partnership with Segmentify.
• Officials highlighted broader macro trends: Sultan Al‑Saeed pointed to global interest in AI, saying AI firms attracted $258 billion in 2025 — about 61% of total global venture capital — and stressed local research returns, citing a 3 million‑riyal (roughly $800,000) initial investment that produced solutions preventing an estimated 3.3 billion riyals (about $880 million) in fraud.

Why now

• Public and private capital: The Kingdom is backing its ambitions with more than $13 billion in advanced computing systems and foundational AI models intended to help domestic founders build proprietary technology.
• Regional leadership: With a growing share of MENA venture funding — rising from 32% to 45% year‑on‑year — Saudi Arabia is positioning itself as a primary hub for dealmaking and scaling startups across the Gulf and beyond.
• Dealmaking at Leap26: The conference served as a platform to court foreign investors, showcased new cross‑border transactions, and highlighted both strategic minority investments and M&A activity among regional players.

Outlook

Market participants expect the momentum to continue as capital and infrastructure converge: deeper computing resources, an influx of global venture firms like A16Z, and demonstrable returns from early research investments strengthen the case for more sizeable rounds and cross‑border exits. For local founders, the immediate challenge will be translating growing investor interest into sustainable, defensible technology and international market positions that justify later‑stage valuations and support the Kingdom’s bid to remain the Gulf’s dominant startup hub.