A recent study by global consulting and research firm Startup Genome has revealed that Riyadh stands tall among the top five startup ecosystems within the Middle East and North Africa (MENA) region, securing the fourth position regionally.
Furthermore, the Kingdom of Saudi Arabia has marked its presence with three other cities, Jeddah, Al Khobar, and Dammam, joining the ranks as some of the best environments for startup growth in the area.
Several factors contribute to this distinction:
- The emergence of four unicorn companies in Riyadh over the past decade.
- Riyadh’s placement in the top 51-60 global startup ecosystems.
- The Kingdom’s substantial investments in artificial intelligence and startups, amassing an ecosystem worth over $11 billion by 2023.
- Attractive incentives to lure emerging AI businesses to Saudi Arabia.
Abu Dhabi is recognized as the fastest-growing startup ecosystem in the region; it has pledged a massive $100 billion investment in technology and startups. By 2023, the value of its ecosystem had reached $4.2 billion, housing one unicorn company.
The entire MENA region has experienced significant growth in the startup sector over the past year, with companies raising more than $429 million in the first quarter of 2024 alone. Saudi Arabia led the investment activity with $198 million across 25 deals in March.
These positive indicators reflect Saudi Arabia’s commitment to fostering entrepreneurship, innovation, and startups, suggesting a bright future for startup growth in the MENA region.
