Three Nations Capture 91% of Middle East Venture Deals

Three countries account for 91% of all venture capital deals in the Middle East, according to a report cited by the Saudi financial newspaper Mal.

The figure underscores how narrowly concentrated the region's startup financing remains. Nearly every dollar of institutional risk capital deployed across the Middle East flows into just three national markets, leaving the rest of the region's founders competing for a thin 9% slice of deal flow.

The concentration pattern mirrors the broader structure of Gulf economies, where deep-pocketed sovereign investors and state-backed funds cluster in a small number of financial hubs. For startups based outside the three dominant markets, the data suggests access to regional venture capital remains structurally limited regardless of the sector or stage they operate in.

Mal, a Saudi-based financial publication, reported the statistic without naming the three countries or the reporting period covered. The headline finding alone, however, points to a region where venture capital has scaled rapidly in absolute terms while remaining geographically narrow in distribution.

For limited partners and fund managers weighing Middle East exposure, the 91% figure carries a clear implication: entry into the region's venture ecosystem effectively means entry into its three core markets. Emerging ecosystems elsewhere in the region will need dedicated capital vehicles, government-backed programs, or cross-border fund structures to attract meaningful institutional investment.

The data arrives as Gulf governments press ahead with diversification agendas that lean heavily on startup formation and technology investment. Whether venture activity broadens beyond the three dominant markets will be a key test of how far that economic transformation actually reaches.