New Saudi Fund Aims to Bring US Defense Tech and Local Manufacturing Together
The fund is designed to support the localization of defense technology manufacturing within Saudi Arabia, targeting sectors such as unmanned aerial vehicles, aerospace, counter-UAS systems, automated platforms, AI-enabled defense technologies, and maritime solutions.
Saudi Arabia has launched its first defense-focused venture capital fund, MasnaVentures, aiming to raise $100 million from investors in the US and the Kingdom. The fund is designed to support the localization of defense technology manufacturing within Saudi Arabia, targeting sectors such as unmanned aerial vehicles, aerospace, counter-UAS systems, automated platforms, AI-enabled defense technologies, and maritime solutions.
MasnaVentures is led by Lucien Zeigler and Nehal Farooqui, entrepreneurs with established experience in the US-Saudi defense corridor. Zeigler heads Redsalt Defense and its US-Saudi joint venture SR Advanced Strategic Systems, while Farooqui leads device services firm Zension Technologies. Together, they plan to facilitate about 10 early-stage transactions, providing structured growth capital to new joint ventures and special purpose vehicles that integrate Saudi manufacturing capabilities with advanced US defense systems.
The initiative highlights a growing role for the private sector in Saudi defense localization, offering “last-mile” capital to support formation and scale-up of projects that might otherwise struggle to enter the market due to infrastructure, regulatory, or localization challenges. MasnaVentures aims to give investors and startups visibility and confidence, enabling defense and advanced manufacturing companies to commit to the Kingdom with a reliable source of institutional funding.
The first platforms are expected to be established by the end of the first quarter, with investment activity following as projects meet formation and readiness milestones. The success of the initial fund could pave the way for additional vehicles in the future, building a durable private-sector investment base around defense and advanced manufacturing in Saudi Arabia.
This fund is one of the earliest signs of implementing the defense cooperation agreements signed during Crown Prince Mohammed bin Salman’s visit to Washington in November, which included a strategic defense agreement facilitating US defense firms’ entry into Saudi Arabia. The country’s elevation to a non-NATO ally further strengthens access to financing and military equipment, reflecting a shift toward private-sector-led capability building within the Kingdom.
