RIYADH: Saudi Arabia attracted $68 million in venture capital investment for climate technology startups from 2018 through the first half of 2023, a report has discovered.
The funds were spread across 21 deals, according to research by venture data firm MAGNiTT.
Titled “State of Climate Tech VC,” the report disclosed the combined venture capital funding for the Middle East and North Africa region and Turkiye amounted to $651 million over five years, distributed across 225 deals.
The research emphasized the region’s growing commitment to climate action, as evidenced by hosting two consecutive United Nations Conference of the Parties events.
“In addition to COP, Saudi Arabia leads further efforts with the Middle East Green Initiative,” the report added.
The UAE emerged as the front-runner in funding value, amassing $401 million from 45 deals.
Moreover, startups in Turkiye secured $124 million across 80 deals during the same timeframe.
Egyptian ventures, on the other hand, garnered $42 million from 35 deals, while Tunisia saw $6 million through six.
Additionally, the report highlighted that the UAE saw a compound annual growth rate of 120 percent in terms of funding during the timeframe, followed by Turkiye at 60 percent, Egypt at 38 percent and Saudi Arabia at 7 percent.
The study also highlighted that climate tech now constitutes 5 percent of the region’s total venture capital funding, marking an elevenfold growth over the last five years.
The sector peaked last year, with $270 million accumulated from 50 deals. In contrast, the first half of 2023 saw an investment of $40 million spread over 30 ventures.
In a sectorial breakdown, the report highlighted that 52 percent of all funding went to climate startups in the agriculture sector, followed by 20 percent in the energy industry and 12 percent in logistics and transport.
In terms of amounts raised, the horticulture sector, which is the science of cultivating plants, fruits and vegetables, secured $288 million across the same timeframe, while renewable energy bagged $118 million.
