Virginia and Maryland
Only a stone’s throw from Washington, DC, Maryland and Virginia offer far more than an escape from the hustle and bustle of the Capital. Their economies rank 17th and 13th respectively in size among the 50 states and Washington D.C. Both states already boast promising and rapidly expanding relationships with Saudi Arabia. Maryland’s total imports from the Kingdom increased by 31.8 percent from 2022 to 2023, and in Virginia, the state’s exports to Saudi Arabia increased by an impressive 50.9 percent during the same period.
Ranked by CNBC as America’s No. 2 Top State for Business in 2023, Virginia not only maintains the largest data center market in the U.S., but is also propelled by strong markets in IT Consulting, auto dealerships, and hospitals/healthcare, generating $58.2 billion, $31.3 billion, and $27.4 billion, respectively, in 2022 alone. Its robust economy has propelled the state GDP from $590.8 billion in 2022 to $576.96 billion in 2023 at a growth rate of 4.2 percent in the third quarter of 2023. Agriculture is at the forefront of Virginia’s private sector, with an economic impact of $82.3 billion annually.
In 2023, Virginia’s top five exports to Saudi Arabia were:
- Oil Seeds, Misc. Grain, Seed, Fruit, Plant, Etc. ($63.7 million)
- Copper and Articles Thereof ($26.4 million)
- Nuclear Reactors, Boilers, Machinery etc.; Parts ($23.8 million)
- Electric Machinery Etc. ($20.4 million)
- Food Industry Residues and Waste; Prep Animal Feed ($10.4 million)
Virginia’s top imports from the Kingdom included:
- Plastics and Articles Thereof ($14.3 million)
- Rubber and Articles Thereof ($3.7 million)
- Tanning and Dye, Paint, Ink, etc. ($3.5 million)
- Nuclear Reactors, Boilers, Machinery etc.; Parts ($2.7 million)
- Special Classification Provisions/NESOI ($1.3 million)
Maryland sits roughly between the financial capital of the United States, New York City, and the nation’s center of government, Washington, DC. The state’s advantageous location makes it home to a thriving financial services industry in addition to its other major industries which include life sciences, cybersecurity and IT, cleantech and renewable energy, and tourism. With access to the Chesapeake Bay, the Port of Baltimore, and Baltimore/Washington International Thurgood Marshall Airport, Maryland’s infrastructure sets it up well as a hub for commerce. Maryland has four Foreign-Trade Zones and 37 State Enterprise Zones, and in the third quarter of 2023, Maryland’s real GDP in goods and services soared to $518.7 billion.
Maryland’s top five exports to the Kingdom in 2023 included:
- Pharmaceutical Products ($27.3 million)
- Electric Machinery etc. ($26.1 million)
- Nuclear Reactors, Boilers, Machinery etc. ($21.7 million)
- Miscellaneous Chemical Products ($10.4 million)
- Vehicles, Except Railway or Tramway, and Parts etc. ($7.2 million)
Maryland’s imports from Saudi Arabia included:
- Aluminum and Articles Thereof ($16 million)
- Iron and Steel ($3.2 million)
- Edible Fruit and Nut; Citrus Fruit or Melon Peel ($328,039)
- Articles of Iron or Steel ($327,735)
- Paper and Paperboard and Articles ($161,359)
Venture Capital in the DC Region
Recently, venture capital (VC) funding in the DC region, including Maryland and northern Virginia, has steadily increased year over year to reach $1.7 billion raised by DC-area companies across 67 deals in the second quarter of 2024 – double the investment of the previous quarter, according to the latest quarterly Venture Monitor Report from PitchBook and the National Venture Capital Association. Major deals concluded in the DC region came from the the information technology, healthcare, and consumer products industries. The top deals reported in Q2 2024 are as follows:
- JUUL reported a $1.3 billion later-stage deal that closed on May 23, following their headquarters move to Washington, DC.
- Tysons Corner-based software engineering firm Raft raised a $60 million later-stage investment that closed on April 10.
- ShiftMed, a healthcare workforce management platform based in McLean, secured a $47 million later-stage raise on May 23.
- Cape, an Arlington-based “privacy first” mobile carrier, raised $40 million in a Series B and announced a total of $61 million raised in various rounds ending April 18.
- Cloud security platform Permiso, based in McLean (according to SEC filings), raised $29.1 million in a Series A in early May.
According to the report, VC funding in the region outperformed the U.S. average, which is trending towards a slowdown. Analysts quoted in the report noted that venture capital flow in the region isn’t slowing down, but is more cautious, seeking out companies that are capital-efficient or highly scalable, especially tech providers or companies involved in AI innovations.
