In a strategic move to enhance Saudi Arabia's economic landscape, Saudi Venture Capital Co. (SVC) has been instrumental in stimulating the Kingdom's private capital ecosystem. The company has committed $1 billion in investments since its inception in 2018, with total assets reaching $4.8 billion. This growth is reflective of its contribution to various sectors including e-commerce, fintech, healthcare, education technologies, transport, and logistics, among others. SVC's efforts have been underscored by its ability to support 54 funds, which in turn have financed over 800 startups and small and medium enterprises (SMEs). The company's recent Impact Report highlights its pivotal role in expanding venture capital, private equity, venture debt, and private credit markets in the region.

Saudi Arabia's drive towards economic diversification is anchored in the strategic objectives outlined in Saudi Vision 2030. As part of this plan, increasing investor participation in startups and SMEs is crucial. SVC's initiatives aim to bolster financial institutions in establishing venture capital and private equity funds, attracting both regional and international investors. Nabeel Koshak, CEO and board member of SVC, emphasizes the company's commitment to further enhance the private capital ecosystem through strategic investment programs and developmental initiatives tailored to the ecosystem's needs.

SVC's Impact Report indicates Saudi Arabia's continued dominance as the MENA region's leading destination for venture capital investments, capturing $750 million in 2024. This represents a 40% share of the regional venture capital, further solidifying its position despite the competitive landscape, with the UAE close on its heels. Educational programs and collaborations with both local and global partners are among the initiatives aimed at improving the skill set of fund managers and investors, paving the way for data-driven decision making.

Alongside SVC, Forus, a leading debt crowdlending platform, has secured a significant $60 million debt facility from Fasanara Capital Ltd. This partnership is expected to enable Forus to extend more than $150 million in working capital loans to Saudi SMEs. Founded in 2019, Forus has been a crucial player in providing tech-driven financial solutions for SMEs and has already facilitated over $390 million in funding for over 400 businesses. This move is aligned with the goals of Saudi Vision 2030, which aspires to increase the contribution of SMEs to Saudi Arabia's GDP from 20% to 35% by the end of the decade.

Nosaibah Alrajhi, Founder and CEO of Forus, regards this partnership as essential in scaling operations and expanding their reach within the Saudi SME sector. Forus' journey aims to empower small businesses by overcoming their funding challenges, employing state-of-the-art tech infrastructure to offer rapid and accessible working capital loans. The $60 million facility integrates Forus' vision of fuelling SME growth with Fasanara's substantial global support for fintech lenders.

Forus intends to build on this momentum, leveraging technology to simplify the lending process further and reinforcing the Saudi economy's backbone by supporting its SMEs. As regional economies become increasingly interconnected, combined efforts like those of SVC and Forus highlight Saudi Arabia's ambitions to emerge as a leading economy empowered by innovation, sustainable growth, and strategic private capital investments.