Saudi Arabia celebrates its 94th National Day in 2024 with a forward-looking vision that sees startups as the key driver of economic development.
Amid rapid global changes, the kingdom recognizes that investing in youth and entrepreneurship is an investment in the future.
The National Day on September 23 is not just a celebration of a glorious past but also an acknowledgment of a future built on innovation and leadership. Under wise leadership, Saudi Arabia envisions a digital economy powered by startups.
To achieve this, the kingdom offers comprehensive support to entrepreneurs, including financial aid and various programs aimed at empowering them with essential skills and knowledge. The belief is that investing in youth will build a generation of global leaders and innovators.
This substantial support for startups is more than just economic policy; it reflects a deep-seated belief in the importance of entrepreneurship for a sustainable economy. Through this support, Saudi Arabia sends a clear message to the world about its ambitions for a prosperous future.
Saudi Arabia leads in venture capital investment in the Middle East and North Africa, capturing a significant share of total investments in startups. A recent report highlighted that the kingdom secured 1.5 billion SAR in investments during the first half of 2024, showing strong governmental support for the startup ecosystem.
The kingdom’s commitment to fostering innovation attracts more foreign direct investments, underlining its leadership’s vision for a thriving entrepreneurial landscape.
The variety of targeted sectors also saw growth, with e-commerce leading in attracting investments, and fintech showing significant transaction growth, reflecting confidence in its ability to offer innovative market solutions.
Saudi Arabia’s efforts include a 600 million USD tech support package launched during the LEAP 24 conference, part of the national technology development program. This includes initiatives like the “Fuel” program, which allocates 266 million USD to encourage investment in emerging technologies, and the “Aim” platform, which uses AI to create an innovation-friendly environment.
Other programs include “Swift” for additional startup funding, “Transform Plus” for cloud service adoption, and “Source Tech” for outsourcing support. LEAP 24 also saw the launch of new venture funds worth 798 million USD, reflecting confidence in the Saudi tech sector.
Saudi startups raised 5.2 billion SAR in 2023, showcasing the kingdom as a promising investment destination. With 52% of the region’s venture capital, the kingdom saw a 33% annual growth, supported by 114 investors and 125 deals, making it second in the region for deal numbers. Key sectors included fintech and e-commerce, driven by notable deals from companies like Tamara and Tabby.
The “Venture Studio” initiative by Sanabil Investments aims to build promising tech companies with a 14 million USD fund for four startups in fintech, consumer goods, and tourism. This initiative offers comprehensive resources, including initial funding, market access, technical support, and strategic guidance.
Saudi Arabia’s vibrant entrepreneurial ecosystem is bolstered by accelerators and incubators like “Badir,” Flat6Labs, The Riyadh Techstars Accelerator, Aramco’s Wa’ed, Misk, the Cybersecurity Accelerator, and the Entertainment Activities Accelerator. These platforms provide crucial support, from funding to expert guidance, helping startups thrive.
Saudi Arabia continually proves itself as a unique incubator for one of the fastest-growing entrepreneurial environments globally. With visionary leadership, significant investments in digital infrastructure, and supportive entrepreneurship policies, the kingdom is poised to become a global hub for technology and innovation, contributing to the Vision 2030 goal of a diverse and prosperous economy.
