Saudi Entrepreneurial Landscape: A Global Hub for Startups and Investors

Introduction

Saudi Arabia is emerging as a prominent destination for global entrepreneurs, fueled by the Vision 2030 initiative, a proactive public sector, and a vibrant entrepreneurial ecosystem. This combination fosters a perfect atmosphere for emerging enterprises, guiding them through the initial hurdles of getting off the ground. The efforts made in the past five years have played a crucial role in providing support to local startups and making significant progress towards the objectives of Vision 2030. These initiatives enhance the fundamental aspects of entrepreneurship and have a positive impact on the future of the entrepreneurial ecosystem in Saudi Arabia.

OVERVIEW OF SAUDI ENTREPRENEURIAL LANDSCAPE

• In the past five years, Saudi Arabia has seen a remarkable surge in its entrepreneurial scene, witnessing a yearly increase of 87% in startups from 2017 to 2022. One notable development in this story is the rise of the first Saudi unicorn, achieved through the successful IPO of Jahez. In addition, Saudi Arabia has experienced a significant increase in venture capital funding, which has propelled it to become the second-highest recipient of VC investment in the GCC.
• Industries such as technology, fintech, and e-commerce are at the forefront of this expansion. The value of e-commerce is expected to exceed $13 billion by 2025, indicating a significant growth trajectory. These flourishing industries are in line with the goals of Saudi Vision 2030, a strategic plan focused on expanding the country's economy.

One of the main objectives of Vision 2030 is to increase the GDP contribution of small businesses from 20% to 35% and to raise foreign direct investment from 3.8% to 5.7%. The statistics and developments mentioned here demonstrate the strong and vibrant entrepreneurial environment that is being nurtured in Saudi Arabia, in line with its overall economic goals.

SAUDI YOUTH AND WOMEN ENTREPRENEURS

• Saudi Arabia's Vision 2030 initiative is dedicated to nurturing a highly skilled workforce that complements the country's vibrant and tech-savvy younger generation, who make up more than half of the population. This approach is backed by initiatives to draw in talented professionals from around the globe.
• The landscape of women's entrepreneurship is thriving, fueled by reforms that have created opportunities for women to make a significant impact on the economy. This is in line with the Vision 2030 objective of generating one million job opportunities for women.
• The presence of young and female entrepreneurs is transforming the business landscape in Saudi Arabia. In the third quarter of 2023, there was a significant increase in the percentage of women owning commercial registrations, reaching 33.7%. Similarly, young men accounted for 38.6% of these registrations during the same period. The statistics indicate a thriving and inclusive business environment in Saudi Arabia, where diversity and innovation play a crucial role in driving economic growth.
• Acquiring an Entrepreneur License in Saudi Arabia is a vital milestone for aspiring business owners, marking the beginning of a promising entrepreneurial adventure in the Kingdom's rapidly developing economy.

A SUPPORTIVE STARTUP ECOSYSTEM IN SAUDI ARABIA

• The Saudi Small and Medium-Sized Enterprises (SMEs) General Authority, Monshaat, is instrumental in promoting entrepreneurship through policy-making and the organization of global forums like Biban. These initiatives aim to connect entrepreneurs, investors, and officials on a global scale. The regulatory landscape has been updated to make startup and VC operations easier. This includes a simplified business registration process and the implementation of the new Saudi Companies Law, which will take effect in January 2023. In addition, Saudi Arabia's strategic location as a global convergence point provides entrepreneurs with convenient access to multiple continents.
• The government's support, in the form of incentives, grants, and a nurturing investment community, strengthens this ecosystem even more. The investment landscape in Saudi Arabia has experienced remarkable expansion, as funding has surged to an impressive USD 987 million in 2022, marking a substantial rise from a mere USD 59 million in 2018. This growth can be attributed to a variety of new programs that have been developed to enhance entrepreneurship at different investment stages.
• The startup ecosystem has been strengthened, particularly for early-stage companies, by initiatives such as TAQADAM, Misk Launchpad & Accelerator, and the Garage. The Saudi Unicorn program is a unique initiative that was initiated by the Misk Foundation, the Ministry of Communications and Information Technology (MCIT), and the National Technology Development Program. The objective of this initiative is to substantially improve the entrepreneurial environment in Saudi Arabia by assisting early-stage startups in their pursuit of unicorn status.

THE GARAGE, MIDDLE EAST’s LARGEST BUSINESS ACCELERATOR

• The Garage, which was established in April 2022, functions as a dynamic center for both local and international startups. It actively recruits entrepreneurs to participate in its diverse programs and events. This startup district is equipped with 24 conference rooms, an event space that can accommodate over 1,000 attendees, and designated areas for training workshops. It has the capacity to accommodate more than 300 startups
• The Garage has been fostering entrepreneurs with the support of numerous partners, such as the Ministry of Investment, the National Technology Development Program, KAUST Destination Deep Tech, and Google for entrepreneurs, since its inception.
• The accelerator offers six distinctive programs: Garage Plus, ACCESS Disability Technologies Accelerator, Garage Incubator, MVP Lab, GAIA Business Accelerator, and the inaugural Middle East incarnation of the Antler program. The Garage's inauguration is a critical juncture in the local and global startup landscapes, providing entrepreneurs with the chance to join a vast network of founders and partners.

SAUDI ARABIA, A MAGNET FOR GLOBAL ENTREPRENEURS

• Saudi Arabia is rapidly becoming a premier destination for global enterprises, thanks to its forward-thinking initiatives and business-friendly policies. The Kingdom is actively seeking investors, innovators, and creative talents from around the world to investigate its extensive resources and emerging opportunities. This proactive posture has garnered substantial interest from global venture capitalists, thereby solidifying Saudi Arabia's status as a critical entrepreneurial hub.
• Saudi Arabia is making substantial progress with ambitious programs such as NEOM, in addition to these endeavors. NEOM is intended to serve as a global epicenter for sustainability, technology, and innovation, with the objective of attracting the most talented individuals in the fields of business and science. The Kingdom's dedication to establishing a state-of-the-art business and innovation environment is underscored by this futuristic initiative, which is consistent with the objectives of Vision 2030.
• Saudi Arabia is increasing its allure as a global hub for entrepreneurs by implementing regulatory reforms, constructing advanced infrastructures, and providing skill development programs. These comprehensive measures foster cross-border collaborations, attract international talent, and create a fertile environment for entrepreneurs.

  OBTAIN YOUR ENTREPRENEUR LICENSE IN SAUDI ARABIA

  CIG saudi Arabia is a reliable ally for entrepreneurs. CIG Saudi Arabia provides expert advice on the acquisition of an Entrepreneur License, armed with a comprehensive comprehension of the regulatory environment and business landscape of Saudi Arabia. We offer personalized support, guaranteeing that all documentation is accurately completed, local laws are adhered to, and any potential obstacles are smoothly resolved. Our assistance simplifies the process, enabling entrepreneurs to establish their businesses in the dynamic and prospective market of Saudi Arabia in a timely and efficient manner.