Overview: The startup scene in Saudi Arabia has been rapidly growing in recent years, attracting both local and international investors. The government has launched numerous initiatives to support the growth of the entrepreneurial ecosystem, making it one of the most attractive investment destinations in the Middle East.
Investment Figures: In 2020, startups in Saudi Arabia raised a total of $411 million through venture capital funding. The fintech and e-commerce sectors have seen the most investment activity, followed by the healthcare and energy industries.
Top Investors:
STC Ventures
VentureSouq
Wa'ed Ventures
Riyadh Venture
Badir Program for Technology Incubators and Accelerators
Popular Startups:
Careem - a ride-hailing app, later acquired by Uber
Foodics - a cloud-based platform for food and beverage businesses
WFH - a virtual workspace and productivity app
Afkar - a platform connecting investors with startups
Mawdoo3 - an online platform for educational and cultural content
Government Support: The government has launched several initiatives to support the growth of the startup ecosystem in Saudi Arabia. These include the Vision 2030, the National Transformation Program, and the Saudi Arabian General Investment Authority (SAGIA). These initiatives aim to diversify the economy, increase innovation and entrepreneurship, and attract foreign investment. In addition, the government has also established several investment funds and accelerators to support local startups and entrepreneurs.
Comparison with the Rest of the World: The startup scene in Saudi Arabia is relatively young compared to other countries, but the rapid growth and government support make it an attractive destination for investors. The fintech and e-commerce sectors have shown promising potential and the government's continued efforts to support entrepreneurship are likely to further fuel the growth of the startup ecosystem in the coming years. Local startups also enjoy very attractive tax rates compared with Europe or the United States.