The Scoop
MASNA Ventures, a firm created by an American entrepreneur, is launching Saudi Arabia’s first defense-focused venture capital fund and aiming to raise at least $100 million from US and Saudi investors.
The fund will back defense technology companies in the US or other allied countries, and help them establish manufacturing operations in Saudi Arabia, co-founder Lucien Zeigler told Semafor.
MASNA’s fund plans to do about 10 deals, initially targeting drone and counter-drone systems, precision-guided munitions, and AI-enabled defense systems, Zeigler said.
The fundraise aims to capitalize on increased defense cooperation between the US and the kingdom, which was named a major non-NATO ally in November when Saudi Crown Prince Mohammed Bin Salman met President Donald Trump at the White House.
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Trump and Prince Mohammed also signed a strategic defense agreement that makes it easier for US defense firms to operate in the kingdom.
The MASNA fund will “translate technological edge into defense superiority by backing world-leading, trusted US and allied technologies and scaling their manufacture in Saudi Arabia,” said Zeigler, previously head of Middle East and North Africa at California-based venture firm Pilatus Capital.
Saudi Arabia is the world’s fifth-biggest military spender, with $64 billion earmarked for defense this year. Three-quarters of that is spent abroad, making it one of the biggest arms importers in the world. Prince Mohammed has set a goal of cutting imports to 50% of defense spending by 2030 as part of plans to localize manufacturing and create jobs.
MASNA is launching as Riyadh prepares to host the World Defense Show next week.
Notable
- Saudi Arabia’s goal to build a local defense industry is making progress but needs to overcome constraints on investment, talent, and technology, according to a report by think tank Azure Strategy.