Merak Capital has finalized a $54 million investment in Riyadh-based DSShield, marking one of the largest recent cybersecurity funding announcements in Saudi Arabia. The deal arrives at a time when digital adoption, cloud integration, and industrial automation are accelerating across the Kingdom, intensifying demand for sophisticated cyber defense capabilities. With this investment, the firm aims to support the development of a national cybersecurity platform while enabling DSShield to scale strategically and position itself for future public listing ambitions.
A Growing Market Driven by Digital Transformation
Saudi Arabia’s cybersecurity sector continues to expand at speed, fueled by government digitalization initiatives and heightened risk exposure across critical industries. The National Cybersecurity Authority reported that the Kingdom’s cybersecurity market hit $400 million in 2024, reflecting 14 percent year-on-year growth. This momentum is further reinforced by Saudi Arabia ranking first globally in the IMD World Competitiveness cybersecurity indicator for 2025, signaling the country’s increasing influence in securing digital economies.
DSShield’s Path from Emerging Player to National Cybersecurity Champion
Founded in 2020, DSShield has rapidly grown into one of the country’s most active cybersecurity service providers, delivering projects valued at more than $400 million since inception. The company focuses on high-integrity operating environments, where continuity, compliance, and availability are critical to clients in regulated and infrastructure-heavy sectors. Its portfolio spans advisory, implementation, and 24-hour managed security operations, enabling organizations to navigate risks posed by converging digital, physical, and data systems.
Leadership Perspective and Vision for Expansion
Siraj Marghalani, Founder and CEO of DSShield, emphasized that reliability lies at the center of the company’s mission, noting that many clients work in environments where failure is not an option. He stated that the partnership with Merak Capital empowers DSShield to enhance talent acquisition, scale technical capacity, and accelerate market presence. Marghalani positioned the investment as a step toward establishing DSShield as a national leader in cybersecurity during a period of rapid economic digitalization.
Merak Capital’s Strategic Alignment with National Digitization Goals
The transaction aligns with Merak Capital’s investment philosophy of backing technology-driven enterprises shaping Saudi Arabia’s digital future. Founder and Managing Partner Othman Abdulrazaq Alhokail highlighted that Merak aims to support founders building market-defining companies essential to the Kingdom’s digital transformation. He described the investment in DSShield as a commitment to strengthening local cybersecurity capability and enabling the company to mature into a regional leader.
Building Capacity for Scale, Innovation, and Public Listing Readiness
Merak Capital Partner and Head of Capital Formation Mohannad Alfayez noted that DSShield’s strong position within public sector and regulated environments makes it well-placed for further expansion. He added that the capital injection will support the scaling of proprietary technology, reinforce operational infrastructure, and create a viable foundation for a future public listing. The funding will also expand managed services, enhance advisory depth, and accelerate product development across operational technology, cloud security, and critical infrastructure protection.
A Strengthened Role in Securing National Digital Assets
DSShield’s growth strategy includes strengthening end-to-end cyber defense capabilities for government institutions, financial entities, infrastructure operators, and major enterprises. As cyber threats rise alongside digital adoption, the company intends to deploy larger and more advanced security operations, backed by local regulatory understanding and global cybersecurity partnerships. This direction positions DSShield not only as a service provider but as a strategic pillar safeguarding national technological resilience.
Merak Capital’s $54 million investment marks a pivotal milestone for DSShield, boosting its ability to scale technology, expand operations, and contribute to Saudi Arabia’s cybersecurity sovereignty. The partnership reflects wider market confidence in domestically developed cyber capabilities, particularly as the Kingdom accelerates digital economy initiatives. With strong execution history, leadership ambition, and institutional backing, DSShield is entering a new phase of growth that could ultimately pave the way for public listing and establish the company as a regional benchmark in cybersecurity.