Riyadh, the capital of Saudi Arabia, has been recognized as one of the top five startup ecosystems in the Middle East and North Africa (MENA) region, according to recent data.
An international policy consultancy and research organization, Startup Genome, in collaboration with the Global Entrepreneurship Network, reported that three Saudi cities, including Riyadh, rank among the best ecosystems for startups in the region.
Riyadh Achieves Fourth Place
Riyadh claimed the fourth spot, while Jeddah and Khobar also made the list, as per the latest Global Startup Ecosystem Report by Startup Genome. Being listed requires startup ecosystems to rank within the top 40 global leaders, the top 200 startup ecosystems, or have a valuation exceeding 200 million dollars.
Saudi Capital Joins ‘Unicorn’ Company Ranks
Moreover, Riyadh was also one of two emerging ecosystems in the MENA region that joined the global list of cities hosting four or more ‘unicorn’ companies over the past decade, the other Arab city being Dubai. A ‘unicorn’ company is defined as one that reaches a valuation of one billion dollars without being listed on the stock market.
The report highlighted that the Saudi capital ranked between 51st and 60th globally, with its funding performance securing the seventh position out of ten.
The proactive approach of Saudi Arabia in adopting artificial intelligence was commended, highlighting the country’s commitment of 40 billion dollars to bolster technology.
Abu Dhabi: Fastest-Growing Startup Ecosystem in the Region
The UAE’s capital, Abu Dhabi, was identified as the fastest-growing startup ecosystem in the region, with a global ranking between 61st and 70th. The report noted the UAE’s strategic vision to become a dominant global tech hub, reinforcing its capital as a leading destination for high-growth tech companies.
The ecosystem’s value in Abu Dhabi was estimated at approximately 4.2 billion US dollars, with the presence of one ‘unicorn’ company between 2021 and 2023.
Saudi Arabia Commands 52% of Regional Venture Capital Funding
The region has experienced significant growth in venture capital and startup development in recent years, largely driven by Saudi Arabia. In 2023, the Kingdom acquired 52% of the total venture capital funding in the MENA region, a substantial increase from the 31% share it held in 2022.
The startup ecosystem in Saudi Arabia led regional venture funding activities in 2023, amassing an unprecedented capital of 1.38 billion dollars. This achievement placed the Kingdom at the forefront of venture capital funding in the MENA region, surpassing the billion-dollar mark for the first time.
