The Kingdom of Saudi Arabia has been witnessing a significant boom in the entrepreneurial sector. A recent report placed its capital, Riyadh, among the top five startup environments in the Middle East and North Africa region. This achievement is a direct result of the Kingdom’s concerted efforts to nurture and expand this vital sector.
The 2024 Global Startup Ecosystem Report (GSER2024), released by the global consulting and research firm Startup Genome in collaboration with the Global Entrepreneurship Network, identified three Saudi cities, including Riyadh, as among the best startup environments in the MENA region.
Riyadh claims the fourth position: Riyadh ranked fourth among the region’s top startup ecosystems, with Jeddah and Khobar also appearing on the list, according to the report. Criteria for inclusion in the list require startup ecosystems to be ranked among the top 40 leading systems globally or among the top 200 startup environments or to have a startup system value exceeding $200 million.
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Riyadh enters the league of unicorn companies: The report also highlighted that Riyadh has advanced in the rankings of cities that host unicorn companies—privately held startups valued at $1 billion or more—over the past decade, with at least four such companies in the city. Dubai was the other Arab city included in this list. Riyadh secured a position between 51 and 60 in the ranking of the top 100 global startup nurturing environments.
Saudi Arabia pioneers in AI adoption: The Kingdom of Saudi Arabia has also been widely praised for its proactive approach to adopting artificial intelligence (AI), with the report spotlighting the $40 billion allocated by the Kingdom to boost this technology. His Excellency Engineer Abdullah Alswaha, the Saudi Minister of Communications and Information Technology, confirmed in April during a special World Economic Forum meeting in Riyadh that the Kingdom has entered several partnerships with countries and international organizations to pave its way towards comprehensive AI adoption.
Abu Dhabi is the fastest-growing startup hub in the region: Abu Dhabi maintained its status as the fastest-growing startup environment in the MENA region and ranked between 61 and 70 in the global top 100 startup nurturing environments. Abu Dhabi’s startup ecosystem generated approximately $4.2 billion in value from July 1, 2021, to December 31, 2023, representing a compound annual growth rate of 28% compared to the period from July 1, 2019, to December 31, 2021, during which the city had one unicorn company.
Saudi Arabia captures 52% of the region’s venture capital funding: The MENA region experienced a significant surge in venture capital (VC) investments and startup development in recent years, driven primarily by Saudi Arabia. In 2023, the Kingdom captured 52% of the total VC funding in the region, marking a substantial increase from its 31% share in 2022. It also ranked first regionally in startup financing activities in 2023, raising a record $1.38 billion in VC funds for startups, positioning it as a leading example in this domain within the region.
In conclusion, Saudi Arabia’s progress in the entrepreneurship field is an important milestone reflecting its commitment to building a sustainable, knowledge-based, and innovation-driven economy. These developments point to a promising future for the Kingdom’s startup sector, with expectations of continued growth and prosperity in the years ahead.
The Global Startup Ecosystem Report analyzes startup systems, encompassing over 4.5 million companies across more than 300 innovation ecosystems worldwide. It provides data-driven analyses and deep insights into global startup trends, ranking the top 40 global and emerging ecosystems, in addition to extended regional rankings.
