Venture capital investment in the Middle East and North Africa (MENA) region reached $15.4 billion over the last five years, with corporate financiers contributing 12 percent of the total, according to a joint report by MAGNiTT and stc group. The analysis, covering the period from 2021 to 2025, identified 3,329 deals in the region, with corporate investors involved in approximately 12 percent of those transactions.

The report highlighted that Saudi Arabia and the United Arab Emirates dominated corporate-backed funding activity, accounting for 86 percent of the total, with Saudi Arabia alone contributing 57 percent of corporate capital deployed. This geographic concentration is described as "self-reinforcing," as 60 percent of corporate investors active over the past five years were Saudi-based and 24 percent were from the UAE. The clustering of both corporates and mature startups within these markets has helped sustain higher levels of deal flow.

Smaller markets in the region have faced challenges attracting corporate capital, the report noted. Egypt represented 16 percent of deals, while Jordan accounted for 3 percent, suggesting that these countries may need targeted policy interventions or mechanisms to encourage cross-border co-investment to boost corporate participation.

Philip Bahoshy, CEO of MAGNiTT, emphasized that while corporate investors have played a steady role in MENA’s venture ecosystem, particularly in large transactions, this segment has lacked a dedicated data framework until the publication of this report. Corporate venture investment has grown in significance, especially in Saudi Arabia and the UAE, where major companies strategically invest to access emerging technologies and nurture local startup ecosystems.

The report found corporate investors participated in funding rounds that accounted for 37 percent of total regional venture funding value, running alongside traditional venture capital firms. Corporate investors consistently engaged in 70 to 100 deals per year during the five-year period, deploying between $200 million and $500 million annually. Even so, corporate investments comprised around 12 percent of total venture deal activity in MENA, falling slightly below the global corporate venture capital benchmark of 15 to 17 percent.

On average, corporate investors represented about 10 percent of the region’s investor base each year. The category includes direct corporate investment arms, corporate-backed venture capital funds, corporate venture capital units, as well as venture builders, accelerators, and private holding companies.

Sector-wise, fintech attracted the most corporate funding, driven largely by participation from banks and telecommunications companies, which formed a significant portion of the corporate investor community within the region.