Venture Capital - GCC

GCC

Highlights

Total Capital Raised in the Venture Capital market market in GCC is forecasted to reach US$1.61bn in 2024.
Early Stage leads the market with a projected market volume of US$744.90m in 2024.
In a global context, the United States is expected to generate the most Capital Raised (US$136.6bn in 2024).
In the GCC region, Venture Capital firms are increasingly focusing on tech startups, driving innovation and diversification in the capital raising market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in GCC has been experiencing significant growth and development in recent years. Customer preferences in the GCC region have been shifting towards a greater focus on innovation and entrepreneurship.

This has led to an increased demand for venture capital funding, as entrepreneurs seek financial support to develop their innovative ideas and bring them to market. The GCC region has a young and dynamic population, with a growing number of tech-savvy individuals who are eager to embrace new technologies and business models. This has created a fertile ground for startups and has attracted the attention of venture capital investors.

Trends in the market show that there has been a surge in venture capital investments in the GCC region. This can be attributed to several factors. Firstly, there has been a growing awareness and recognition of the importance of entrepreneurship as a driver of economic growth and job creation.

Governments in the GCC region have been implementing policies and initiatives to foster a supportive environment for startups, including the establishment of incubators and accelerators, as well as the introduction of favorable regulations and tax incentives. These efforts have helped to attract venture capital investors to the region. Another trend in the market is the increasing number of venture capital funds and angel investors in the GCC region.

These investors are actively seeking out investment opportunities in high-growth sectors such as technology, e-commerce, and fintech. They are also providing not only financial support but also mentorship and guidance to startups, helping them to scale and succeed. Local special circumstances in the GCC region have also contributed to the development of the venture capital market.

The region has a strong culture of entrepreneurship, with many individuals aspiring to start their own businesses. Additionally, the GCC region is home to several sovereign wealth funds, which have been actively investing in venture capital funds and startups. This has provided a significant boost to the venture capital ecosystem in the region.

Underlying macroeconomic factors have also played a role in the development of the venture capital market in the GCC region. The region has a favorable business environment, with low taxes, a stable political and regulatory framework, and a strong infrastructure. Additionally, the GCC region has a high GDP per capita, which provides a large market for startups to target.

In conclusion, the Venture Capital market in the GCC region is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this growth. As the GCC region continues to foster a supportive environment for startups and attract venture capital investors, we can expect the venture capital market to continue to thrive in the coming years.

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.