Venture investment across the Middle East and North Africa reached $15.4 billion over the past five years, with corporate investors contributing 12% of total funding, according to a joint report by MAGNiTT and stc group.

The MENA Corporate Venture Investment Report found that 3,329 venture deals were completed during the period. Saudi Arabia and the UAE dominated the region’s corporate venture landscape, accounting for 86% of all corporate-backed funding activity.

Saudi Arabia alone contributed 57% of total corporate capital deployed, underscoring the Kingdom’s growing influence in shaping MENA’s venture investment ecosystem.

The findings reflect the region’s maturing startup ecosystem as governments and large corporations place greater emphasis on innovation, digital transformation, and technology-led economic diversification.

According to the report, the concentration of activity in Saudi Arabia and the UAE has created a “self-reinforcing” ecosystem. Saudi-based firms accounted for 46% of corporate investors active over the past five years, while UAE-based investors represented 24%.

“With both corporates and scaled startups concentrated locally, investment activity reinforces itself, sustaining higher deal flow. For smaller markets like Egypt (16% of deals) and Jordan (3%), attracting corporate capital likely requires targeted policy interventions or cross-border co-investment mechanisms,” the report stated.

Philip Bahoshy, CEO of MAGNiTT, said corporate investors have consistently played a role in MENA’s venture ecosystem, including participation in some of the region’s largest transactions, but noted that the segment previously lacked a dedicated data framework.

“The goal of this report is to give policymakers, investors, and corporate strategists the information they need to understand the current state of corporate venture investment in the region and to make the case for growing it further,” Bahoshy said.

Corporate venture investment has become an increasingly important funding channel across MENA, particularly in Saudi Arabia and the UAE, where major companies are backing emerging technologies and supporting startup ecosystems.

The report found that corporate investors participated in 37% of the total venture capital raised in the region between 2021 and 2025. During that period, they took part in 70 to 100 deals annually, deploying between $200 million and $500 million each year.

According to MAGNiTT, corporate-backed investments accounted for around 12% of overall venture deal activity in MENA, below the global benchmark of 15% to 17%, while corporate investors represented an average of 10% of the region’s investor base.

Despite broader market volatility, corporate investment activity remained relatively stable, reflecting the strategic nature of these investments. Fintech attracted the largest share of corporate funding, driven primarily by banks and telecommunications firms.

The report also highlighted Tali Ventures, the venture capital arm of stc group, as a case study in how corporates can support startups beyond funding through partnerships, market access, and technical expertise.