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$813.80m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$699.60m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised (US$195.4bn in 2024).
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

The Capital Raising market in Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: Investors in Saudi Arabia have shown a strong preference for capital raising activities, particularly in the equity market. This is driven by a desire to diversify their investment portfolios and take advantage of the growth potential in the country. Saudi Arabia has been implementing various economic reforms and initiatives aimed at attracting foreign investment, which has further fueled the interest in capital raising activities.

Trends in the market: One of the key trends in the capital raising market in Saudi Arabia is the increasing number of initial public offerings (IPOs). Companies in various sectors, including technology, healthcare, and finance, have been going public to raise capital for expansion and growth. This trend is driven by the government's push to diversify the economy and reduce its dependence on oil revenues. Another trend in the market is the rise of private equity and venture capital investments. Saudi Arabia has been witnessing a growing number of startups and entrepreneurial initiatives, which has attracted significant interest from investors. Private equity and venture capital firms are actively investing in these companies, providing them with the necessary capital to grow and expand their operations.

Local special circumstances: One of the unique aspects of the capital raising market in Saudi Arabia is the presence of the Saudi Stock Exchange (Tadawul). Tadawul is the largest stock exchange in the Middle East and North Africa region and plays a crucial role in the capital raising activities in the country. The exchange has been actively working towards enhancing its infrastructure and regulatory framework to attract more listings and improve liquidity.

Underlying macroeconomic factors: The growth in the capital raising market in Saudi Arabia can be attributed to several underlying macroeconomic factors. The country has been implementing wide-ranging economic reforms as part of its Vision 2030 initiative, which aims to diversify the economy and reduce its dependence on oil. These reforms have created a favorable business environment and attracted both domestic and international investors. Additionally, Saudi Arabia has a young and growing population, which provides a strong consumer base and a skilled workforce. This has attracted investments in various sectors, including technology, healthcare, and infrastructure. The government's focus on developing these sectors has further fueled the capital raising activities in the country. In conclusion, the Capital Raising market in Saudi Arabia is experiencing significant growth due to customer preferences for diversification, the increasing number of IPOs, the rise of private equity and venture capital investments, the presence of the Saudi Stock Exchange, and the underlying macroeconomic factors such as economic reforms and a young population. These factors have created a favorable environment for capital raising activities and are expected to continue driving growth in the market.

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 Financial 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.