A CEO’s guide to leverage corporate venture investments for growth and innovation - 2025 Edition
Corporate Venture Capital in the GCC
Corporate venture capital (CVC) is becoming a key driver of innovation and growth in the region. This report details what you need to know about the trending landscape in startup investment to access emerging technologies and shape future industries.
GCC economies continue to push forward on their transformative journeys. Guided by their national visions and long-term diversification strategies, countries like Saudi Arabia, the UAE, Oman, Bahrain, Kuwait, and Qatar are steadily transitioning from oil and gas-dependence toward sustainable, innovation-driven growth. In this evolution, embracing open innovation is no longer a luxury - it’s a strategic necessity. This year’s edition builds on our inaugural 2024 study, revisiting the growing relevance of corporate venturing - the practice of investing in, or collaborating with, startups to access innovation beyond the boundaries of internal R&D. Done right, this approach not only accelerates corporate transformation but also contributes to the region’s burgeoning innovation economy.
The resilience and rise of CVC in the region
Despite global slowdowns in venture capital markets, the GCC’s VC ecosystem grew at a 19% CAGR from 2020 to 2024, reaching US$1.7bn in deployed capital. Although funding volumes in 2024 were lower than in 2023, early-stage investments are strong and accelerating. The number of VC deals in 2024 hit a record high, indicating a shift toward sustainable growth and a more diversified strategy, with investors spreading their capital across multiple startups, rather than focusing on later-stage investments.
Startups based in Saudi Arabia and the UAE continue to dominate the region’s venture landscape, accounting for over 90% of total deal volume. However, 2024 saw an increases in funding and deal flow across VC markets in Qatar, Oman, and Kuwait signaling a broadening innovation base across these countries.
CVC capital deployed in 2024 represented 13% of total VC funding, more importantly, CVCs made up 28% of all active investors in 2024, highlighting a shift toward diversified strategic early-stage engagement rather than concentration in large late-stage rounds.
Division of funding rounds in the Gulf Council Countries in USD million (2020-2024)
Source: MAGNiTT data, April 2025
Key pillars for building a successful CVC unit
For corporates looking to establish or expand their venturing efforts, success depends on three foundational pillars:
Strategy, structure and operations. These components determine the ability to deliver both financial returns and strategic alignment.
“A well-executed and clearly structured corporate venturing strategy can enable corporates to maximise their financial and strategic return from investing in, or cooperating with startups. In addition to a professional scouting and investment process, a customised cooperation model between the portfolio startups and the business units is a key success factor.”
Looking ahead: Investing in tomorrow’s growth engines
In today’s dynamic environment, innovation is no longer optional. For corporates, partnering with startups is an effective path to market differentiation and long-term competitiveness. For startups, corporate partners from the GCC offer not just capital, but also networks, infrastructure, and regional access.
As the GCC’s innovation landscape matures, corporate venture capital is emerging as a cornerstone of national growth agendas. The coming years will see deeper integration of CVCs into the region’s economic fabric, not only as investors, but also as architects of innovation.
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Imad Kaddoura
Dr. Tim Blume
