MASNA Ventures, a newly formed investment firm, is launching Saudi Arabia’s first defence-focused venture capital fund, with plans to raise at least $100 million from US and Saudi investors.
The fund will back defence technology companies based in the United States and other allied countries, while supporting the localisation of manufacturing operations in Saudi Arabia, according to Lucien Zeigler, co-founder of MASNA Ventures, speaking to Semafor.
MASNA plans to complete around 10 investments, initially focusing on drone and counter-drone systems, precision-guided munitions, and AI-enabled defence technologies. Portfolio companies will be supported in establishing production capacity inside the Kingdom, aligning advanced defence technologies with Saudi’s localisation ambitions.
The fundraising effort comes amid deepening defence cooperation between Saudi Arabia and the United States. The Kingdom was designated a major non-NATO ally in November following meetings between Crown Prince Mohammed bin Salman and US President Donald Trump.
“The fund is designed to translate technological edge into defence superiority by backing world-leading, trusted US and allied technologies and scaling their manufacture in Saudi Arabia,” said Zeigler, who previously led Middle East and North Africa investments at Pilatus Capital.
Saudi Arabia is currently the world’s fifth-largest military spender, allocating roughly $64 billion to defence this year. Around 75% of that spending flows abroad, making the Kingdom one of the world’s largest arms importers. As part of Vision 2030, the government has set a target to localise 50% of defence spending by 2030, aiming to build domestic manufacturing capacity and create high-skilled jobs.
MASNA’s launch also coincides with Riyadh’s preparations to host the World Defence Show this week.
