Saudi Arabia Eyes Record Year for Venture Exits in 2026
Liquidity events set to define the market
RIYADH — Saudi Arabia’s business and venture capital landscape is poised for a “record year of liquidity events” in 2026, Philip Bahoshy, CEO of venture data platform MAGNiTT, told Arab News.
Bahoshy expects the market to shift from the funding-driven momentum seen in 2025 toward a year dominated by exits. He anticipates at least one, possibly two, initial public offerings (IPOs) within the Kingdom, alongside a record number of mergers and acquisitions (M&A), offering founders and investors multiple routes to liquidity.
Despite avoiding hype-driven labels like “unicorns,” Bahoshy expects the emergence of multiple billion-dollar companies in 2026. This follows a year in which Saudi Arabia’s venture capital market attracted both international investors and growing local institutional capital, aided by high-profile events that drew global players to the Kingdom and the wider Gulf region.
Market Maturity and Focus
Bahoshy summarized 2025 as a year marked by “attractiveness, focus, and maturity.” He highlighted that the ecosystem is maturing after five to six years of investment, with capital reaching all stages — early, middle, and late — across the funding funnel.
“The market now shows a balance across funding stages, unlike two years ago when mega deals dominated,” he said. He also praised the government’s focus on problem-solving initiatives as a sign of strategic maturity.
International investors are drawn not only for political reasons but also because of the scale and quality of Saudi startups, Bahoshy added.
Strong Momentum Heading into 2026
Saudi Arabia’s venture market closed 2025 with sustained deal flow and steady investor appetite, signaling strong momentum heading into the new year. The spread of investment activity across early-stage, later-stage, and mega rounds reflects a deliberate effort to support the full pipeline.
Government-backed infrastructure, including incubators, accelerators, and seed funds, now supports startups from seed to later funding stages, ensuring a comprehensive ecosystem for capital deployment.
Expanding Global Engagement
Looking ahead, Bahoshy said Saudi Arabia aims to refine its investor strategy by increasing outbound engagement. Delegation trips to London, Silicon Valley, Korea, and Hong Kong highlight the Kingdom’s effort to share its investment story globally. “We’ve achieved about 70 to 80 percent of attracting investors locally; now we need to tell our story abroad,” he noted.
Artificial Intelligence on the Rise
Bahoshy also expects artificial intelligence to take a growing share of venture capital in Saudi Arabia, contributing 20 to 30 percent of total deployment in the coming year.
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