Saudi Arabia has made remarkable progress in the entrepreneurial landscape, with its capital, Riyadh, jumping 60 ranks in the past three years to reach 23rd among the top 100 emerging startup ecosystems globally. The Kingdom’s rapid development is evident in strong venture capital indicators, advanced infrastructure, and increasing innovation and investment in emerging technologies. This success is largely driven by robust government support, particularly from the Small and Medium Enterprises General Authority (Monsha’at).
Monsha’at plays a key role in building an integrated entrepreneurship environment through initiatives and programs that support startup growth and expansion. It also works to enhance the legislative and regulatory framework for entrepreneurs. These efforts aim to increase the sector’s contribution to GDP, aligning with the goals of Saudi Vision 2030.
Saudi Arabia recorded the second-highest performance in the Middle East and North Africa region.
Riyadh’s startup ecosystem advances
It ranked third in terms of funding volume and investment value relative to impact, and fourth in the availability of skills and expertise, further boosting its capacity to attract and retain entrepreneurial talent.
Several high-potential sectors contribute to this performance, notably artificial intelligence, FinTech, cybersecurity, smart cities, infrastructure, and digital health. These sectors form critical pillars in the country’s economic transformation strategy. Monsha’at recently led a group of five potential Saudi unicorns to participate in VivaTech 2025, Europe’s leading technology and innovation exhibition, as part of the “Saudi Unicorns” initiative aimed at helping high-potential, fast-growing companies reach valuations of over $1 billion.
Saud Alsabhan, Vice Governor of Entrepreneurship at Monsha’at, said, “Our participation at VivaTech 2025 was a tremendous opportunity to not only showcase several of the best young startups and concepts coming out of the Kingdom, but also a chance to allow some of our best tech entrepreneurs to share insights about the Kingdom’s booming startup ecosystem with leading global investors and innovators.”
The Monsha’at-led Saudi cohort included five startups: Telgani, a digital car rental platform; Soum, a second-hand sales app; Webook, a digital engagement platform; SiFi, which provides financial solutions to Saudi companies; and Rewaa, a retail tech company serving clients across the Kingdom. These companies showcase the dynamism of Saudi Arabia’s growing e-commerce, transportation, entertainment technology, fintech, and retail tech sectors. Their involvement comes at a time of strong momentum for the Kingdom’s SME and startup ecosystems, with the private sector recording a 48% quarter-on-quarter increase in commercial registrations in Q1 2025, reaching 1.68 million active registrations nationwide.