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19-02-23

Saudi Arabia’s project capital investment almost reaches USD1 billion mark

(MENAFN) Motivated by Saudi Arabia’s extraordinary expansion in its startup ecosystem, the nation’s venture capital funding surged by 72 percent in 2022 in contrast with the year before with investments amounting USD987 million throughout 144 contracts, as said by MAGNiTT.

Nonetheless, the top startup and venture capital data company warned that, as worldwide financial uncer- tainty and financier fatigue surges, the venture market could be most exposed to taking a strike.

In a meeting with Arab News, Philip Bahoshy, CEO of MAGNiTT, stated that he believed that venture funding is going to start to witness a decline in expansion rate in 2023 but Saudi firms are going to pay through mergers and acquisitions.

“We will continue to see a record number of M&A activities,” he stated. “Companies that are unable to raise funds will potentially merge and well-funded companies, specifically in Saudi Arabia, will look for inorganic growth by acquiring companies in other geographies.”

M&A progress is also triggered by exits and initial public offerings as Bahoshy asserted Saudi firms are going to begin going public in the domestic market higher than in other Middle Eastern nations.

“Well-funded companies in Saudi Arabia that are supported through government initiative funds are likely to become acquirers of startups, than being acquired,” he continued.

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