How Saudi millennials are investing: the $750M VC Boom, REIT surge & art market play

Saudi millennials are reshaping investment trends at scale. They are the largest generational group in the kingdom—over 60% of Saudis are under 35—and their financial decisions are driving new markets. In 2024, Saudi Arabia's venture capital (VC) sector secured $750 million across a record 178 deals, accounting for 40% of the MENA region's total VC funding. Real estate, once defined by direct ownership, is shifting toward REITs and private equity, with Saudi's REIT market now valued at over $5 billion. Even the art market is seeing new capital inflows, with Saudi art exports reaching $327 million in 2023, and major auction houses like Sotheby's and Christie's establishing a presence in the kingdom.

This isn't just about diversification—it's a calculated approach to growth, liquidity, and long-term wealth building. Here's where Saudi millennials are placing their bets:

1. Real Estate: more liquid, more strategic

While property ownership remains a key asset, investors are rethinking their approach. The rise of fractional property investments, REITs, and private real estate funds allows for broader exposure without tying up capital in a single asset. Saudi-listed REITs now manage over $5 billion in assets, offering a more liquid and accessible alternative to traditional real estate purchases.

2. Stock Market: from passive to active investing

Saudi millennials are increasingly active in equities, particularly in tech, energy, and consumer sectors. Retail trading volumes on Tadawul are up 30% year-on-year, with younger investors embracing digital trading platforms, ETFs, and robo-advisors to optimize portfolios.

3. The $750 million venture capital boom

Venture capital is now a mainstream investment channel. In 2024, Saudi Arabia's VC sector secured $750 million across 178 deals, accounting for 40% of the MENA region's total VC funding. This growth reflects a strategic shift towards early-stage investments, with sectors like fintech, e-commerce, and logistics leading the way. Notable deals include SallaApp's $130 million investment and Lean Technologies securing $68 million.

4. Alternative Assets: crypto, NFTs & digital finance

Digital assets are gaining traction. Local exchanges are emerging, and private investors are allocating capital to Bitcoin, Ethereum, and digital collectibles. While speculation remains high, Saudi millennials are positioning themselves for long-term exposure in blockchain-based financial markets.

5. The art market play: a growing investment space

Saudi millennials are not just collecting art—they're investing in it. The art market is seeing significant institutional support, with both Sotheby's and Christie's establishing offices in the kingdom. Sotheby's hosted its first-ever auction in Saudi Arabia in February 2025, in Diriyah, marking a major milestone in the kingdom's emergence as a regional art hub. The sale reinforced Saudi Arabia's positioning in the global art market, drawing high-net-worth collectors and further cementing fine art as a legitimate asset class for millennial investors.

6. Global Investing: beyond borders

Saudi investors aren't limiting themselves to local markets. Many are deploying capital into foreign stocks, international real estate, and offshore businesses, leveraging global financial advisors and digital wealth platforms. Saudi Arabia's foreign direct investment (FDI) inflows hit $26 billion in 2023, a sign of the kingdom's growing integration into global capital markets.

7. Shariah & ESG Investments: the ethical wealth shift

Islamic finance and ESG investing are no longer niche. Shariah-compliant funds, sukuks, and green bonds are attracting capital from a generation that values both returns and responsible investing. Saudi Arabia now ranks among the top global markets for Islamic finance products, and the trend is expected to grow as more funds cater to this demand.

8. Financial Literacy: smart money, smarter investors

This generation is doing its homework. Over 80% of young Saudi investors use financial education platforms, podcasts, and digital advisory tools to navigate markets. This shift toward informed, data-driven decision-making is fueling smarter, more strategic investment behaviors.

9. Cultural Investments: funding Saudi's creative economy

Beyond financial markets, Saudi millennials are backing film, music, and sports, aligning their investments with national identity and economic diversification. The Red Sea International Film Festival, Saudi Music Commission, and sports investments are all attracting private capital, turning culture into an investable asset class.

The takeaway

Saudi millennials are changing how wealth is built. They are moving beyond static investments and embracing a mix of liquidity, diversification, and global exposure. From REITs to venture capital, stock trading to art investments, their strategies are designed for long-term financial strength. This is a generation that isn't just investing in assets—it's investing in the future of the kingdom's economy.