MASNA Ventures seeks $150M fund capacity as Saudi defence investor accelerates maritime push

Saudi defence-tech investor MASNA Ventures has asked the Capital Market Authority to increase its fund capacity from $100 million to $150 million, as it accelerates investment in autonomous maritime systems and Saudi-based production of US and allied defence technologies.

The application was disclosed by co-founder and general partner Lucien Zeigler in an interview with Reuters. The proposed increase would expand the fund’s capacity by 50%; the amount of capital committed has not been disclosed.

MASNA’s autonomous systems focus spans aerial drones, uncrewed surface vessels and underwater vehicles. Zeigler said the firm is accelerating work with major defence manufacturers and venture-backed companies, but declined to identify prospective partners, citing non-disclosure agreements.

“Maritime is absolutely a priority... we are actively accelerating that domain right now,” he told Reuters.

As FWDstart reported at its February launch, MASNA initially planned around 10 investments across drones, counter-drone systems, precision-guided munitions and AI-enabled defence technologies, with local manufacturing central to its strategy. Zeigler previously led MENA investments at Pilatus Capital and co-founded MASNA alongside Nehal Farooqui.

The firm’s launch announcement set out a model centred on financing newly established Saudi companies that manufacture proven US and allied technologies. Its primary pipeline comes through SR2 Defense Systems, which creates the local businesses that MASNA helps capitalise. The fund also identified opportunities across defence supply chains, logistics, maintenance and related industrial services.

That model is taking shape through a venture between SR2 and US drone company Vector. In a March announcement, SR2 said the companies had signed an agreement to explore manufacturing, assembly and ongoing support for Vector’s drone systems in Saudi Arabia. The proposed manufacturing business was expected to sit within a dedicated investment vehicle financed through MASNA.

Zeigler now says the venture is scaling up, with MASNA leading a funding round that is three times oversubscribed. The firm is targeting three operational joint ventures and six capital investments in 2026, and plans a further venture around US counter-drone technology.

The maritime push comes as Houthi advances near the Bab el-Mandeb strait add to threats facing Red Sea shipping, increasing the urgency around regional aerial and maritime defence, Reuters reported.

MASNA’s Sharia-compliant fund is anchored by an unnamed Saudi family office, with all committed capital so far coming from Saudi nationals. The firm is considering international LPs, although Zeigler declined to disclose individual commitments or investor identities.

The strategy fits Saudi Arabia’s effort to retain more military spending domestically. The General Authority for Military Industries reported that localisation reached 24.89% at the end of 2024, against a target of more than 50% by 2030. MASNA’s investment proposition is to help finance the Saudi production businesses needed to close that gap, pairing foreign technology with local manufacturing capacity.