Capital Raising - Saudi Arabia | Statista Market Forecast

The country in Saudi Arabia is projected to see a Total Capital Raised in the Capital Raising market market reaching US$821.73m in 2025.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$700.30m in 2025.
When compared globally, the United States is expected to generate the most Capital Raised (US$205.4bn in 2025).
Saudi Arabia is experiencing a surge in capital raising activities, with a growing number of local businesses turning to the market for funding opportunities.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

Capital Raising: market data & analysis

The Capital Raising market in Saudi Arabia is currently facing a moderate decline, influenced by factors such as fluctuating oil prices, regulatory changes, and a shift towards digital platforms, which are reshaping traditional fundraising methods and investor engagement.

Customer preferences: Investors in Saudi Arabia are increasingly gravitating towards digital investment platforms that offer transparency and real-time data, reflecting a broader trend of technological adoption among younger demographics. This shift is fueled by a growing preference for convenience and accessibility in financial services. Additionally, there is rising interest in sustainable and socially responsible investment opportunities, as cultural values evolve towards greater awareness of environmental and social governance (ESG) factors, aligning investments with personal and societal values.

Trends in the market: In Saudi Arabia, the Capital Raising Market is experiencing a significant shift towards digital fundraising platforms, enabling startups and businesses to connect with investors more efficiently. This trend is particularly prominent among younger entrepreneurs seeking streamlined access to capital. Additionally, there is a growing emphasis on Initial Coin Offerings (ICOs) and crowdfunding initiatives that align with sustainable development goals. As a result, industry stakeholders must adapt to these changes by embracing technology and enhancing transparency, which could redefine traditional investment practices and foster a more inclusive financial ecosystem.

Local special circumstances: In Saudi Arabia, the Capital Raising Market is uniquely influenced by its regulatory framework and cultural dynamics, which prioritize Sharia-compliant financing. The Vision 2030 initiative encourages diversification of the economy, fostering innovation and attracting foreign investment. Geographically, the Kingdom's strategic location as a trade hub enhances access to global investors. Additionally, a youthful population is driving demand for digital solutions, leading to the rise of fintech platforms that facilitate equity crowdfunding and ICOs, thereby reshaping traditional fundraising avenues.

Underlying macroeconomic factors: The Capital Raising Market in Saudi Arabia is significantly shaped by macroeconomic factors such as global oil prices, national economic diversification efforts, and regulatory reforms. Fluctuations in oil prices directly impact government revenues and spending, influencing available capital for investments. The Vision 2030 initiative promotes economic diversification, encouraging sectors like technology and renewable energy, thus attracting both local and foreign investors. Furthermore, robust fiscal policies aimed at enhancing transparency and investor protection create a conducive environment for capital raising. As global economic trends shift towards sustainability, Saudi Arabia's focus on innovation and technology positions it favorably in the evolving capital market landscape.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Finance market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.

Capital Raising - Saudi Arabia

Capital Raised

Average Deal Size

Global Comparison

Number of Deals

Analyst Opinion

Methodology

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