Kholoud Hussein 

Saudi Arabia is witnessing a significant transformation in its investment landscape, with Corporate Venture Capital (CVC) emerging as a pivotal mechanism through which large corporations are fostering innovation and contributing to the Kingdom's economic diversification goals outlined in Vision 2030.

The Emergence of CVC in Saudi Arabia

The rise of CVC in Saudi Arabia represents a structural evolution in how capital is deployed, risk is managed, and innovation is commercialized. Unlike traditional venture capital, which typically originates from financial institutions or specialized funds focused on returns, CVC in the Kingdom is increasingly driven by large corporations seeking to future-proof their businesses while aligning with national economic transformation goals.

This dual motive—strategic relevance and national alignment—has accelerated the institutionalization of CVC as a mainstream investment model across sectors ranging from energy and telecom to banking and retail.

From Passive Investment to Strategic Innovation Vehicle

Historically, corporate investment in startups within the region was opportunistic and reactive—often limited to sponsorships or minority passive stakes. Today, Saudi conglomerates and listed entities are adopting a more structured and proactive CVC architecture, complete with dedicated funds, governance models, and internal innovation mandates.

According to a 2024 report by MAGNiTT, CVCs accounted for 30% of all unique investors in Saudi Arabia’s venture market, a proportion higher than any other country in the MENA region. This surge reflects not only increased appetite from corporate boards but also regulatory encouragement and ecosystem readiness.

Additionally, between 2020 and Q3 2024, corporate investors in the broader MENA region deployed over $380 million across 1,361 tracked investment deals, with Saudi-based corporates contributing a significant share of those transactions. More importantly, CVCs in the Kingdom have moved beyond seed-stage activity, participating in later-stage rounds (Series A and B), signaling growing confidence in the scalability of regional startups.

Institutional Players Driving the Shift

Several corporate entities in Saudi Arabia have institutionalized venture activity, establishing internal venture arms with clear mandates:

• Aramco Ventures, the $7 billion investment vehicle of the national energy giant, focuses on decarbonization, digital industrial solutions, and downstream innovation—sectors vital to both corporate sustainability and national competitiveness.
• stc’s Tali Ventures has adopted a platform approach, investing across fintech, cybersecurity, AI, and content to support the Kingdom’s rapidly expanding digital economy.
• Financial institutions like Riyad Bank, SNB Capital, and SABB Ventures are actively deploying capital into fintech and regtech startups, both to modernize their own operations and to stay ahead in a region undergoing digital financial transformation.

These initiatives are not isolated experiments. They are now embedded within broader corporate innovation agendas, often reported at the board level and evaluated against both strategic KPIs and ESG metrics, signaling a maturation of the CVC model.

Macroeconomic Drivers Behind the Shift

Several macroeconomic and policy trends have catalyzed the rise of CVC in Saudi Arabia:

1. Diversification pressure: With Vision 2030 emphasizing the contribution of non-oil GDP, large corporations are incentivized to hedge against sectoral stagnation by investing in adjacent or emerging industries.
2. Technological leapfrogging: By partnering with agile, innovation-first startups, corporations accelerate access to disruptive technologies, especially in areas like AI, green energy, and e-commerce.
3. Government encouragement: Programs like Monsha’at’s CVC initiatives, co-investment funds from SVC, and innovation zones like King Salman Park are actively drawing corporates into the venture ecosystem as anchor participants.
4. Global positioning: As Saudi companies expand internationally, CVC provides a strategic foothold in foreign innovation markets, while simultaneously drawing foreign startups into the Saudi market under joint ventures or strategic partnerships.

Strategic Alignment with Vision 2030

Saudi Arabia’s growing CVC activity is not happening in a vacuum—it is deeply synchronized with the Kingdom’s long-term strategic transformation under Vision 2030. As the country transitions from an oil-reliant economy to a diversified, innovation-led model, CVC is emerging as both a market instrument and a policy mechanism to accelerate this shift.

Where traditional economic reforms focus on infrastructure, education, and regulation, CVC functions as a fast-track channel for technological absorption, SME empowerment, and sectoral diversification—all cornerstones of Vision 2030.

Catalyzing Non-Oil Sector Growth

A central pillar of Vision 2030 is to increase the private sector’s contribution to GDP, particularly through high-growth industries such as fintech, healthtech, clean energy, and digital logistics. CVCs play a catalytic role here by identifying and nurturing startups in these sectors, thereby unlocking new value chains and expanding sector-specific ecosystems.

For example:

• Aramco Ventures has strategically deployed capital into carbon capture, hydrogen technologies, and industrial AI startups. These align not only with Aramco’s net-zero commitments but also with Saudi Green Initiative targets.
• stc’s Tali Ventures is channeling funding toward AI-powered analytics, cloud-native infrastructure, and digital content platforms—sectors critical to achieving the National Digital Transformation Strategy.

This alignment is intentional. Corporate venture arms are increasingly evaluated not just by ROI but by their contribution to national innovation metrics, including IP generation, employment in tech sectors, and localization of frontier technologies.

Driving Knowledge Transfer and Localization

Vision 2030 places emphasis on developing local capabilities—not only in terms of employment, but in innovation sovereignty. CVC-backed startups often act as conduits for technology transfer, bringing global models into the local context and adapting them to Saudi-specific challenges.

For example, healthtech startups backed by corporate investors in the Kingdom are localizing AI diagnostic tools and digital health records systems in Arabic, with full compliance to national data governance frameworks (under SDAIA). This wouldn't be feasible without the scaling infrastructure and compliance frameworks that large corporations provide.

This localization effort directly feeds into Human Capability Development, one of the Vision Realization Programs (VRPs), by giving Saudi technologists, engineers, and operators a platform to lead innovation on home ground.

Institutional Coordination and Policy Integration

Crucially, CVC activity in Saudi Arabia does not operate independently of the state. It is interwoven with broader institutional frameworks that include:

• Monsha’at, which supports SME development and regularly co-hosts demo days with CVCs.
• Saudi Venture Capital Company (SVC), which co-invests alongside corporate arms to amplify startup financing.
• Ministry of Investment (MISA), which works to facilitate smoother cross-border entry for foreign startups backed by Saudi corporates.

These synergies ensure that CVC activity is not just corporate strategy—it is part of a national innovation strategy. As a result, startups receiving corporate backing are more likely to be aligned with priority sectors identified in Vision 2030, from tourism tech and smart cities to energy optimization and AI governance.

A Policy Lever for Private Sector Empowerment

Vision 2030 explicitly calls for deepening the role of the private sector. CVC embodies this vision in action. It allows the private sector not only to participate in, but to shape, the Kingdom’s innovation trajectory. By positioning large corporations as venture backers, Saudi Arabia is bridging the traditional disconnect between startups and industrial giants.

As Majid Al-Qasabi, Minister of Commerce, stated in a 2024 forum: “The role of major companies is evolving. Today, they are not just employers or operators—they are incubators of national innovation capacity.”

In this context, Corporate Venture Capital in Saudi Arabia is not merely a business trend—it is a strategic policy instrument embedded in the country’s long-term economic vision. It reinforces the Kingdom’s ambition to become not only a regional hub for investment, but a global engine for innovation rooted in sovereign capability and entrepreneurial dynamism.

Impact on the Startup Ecosystem

Corporate Venture Capital (CVC) in Saudi Arabia is reshaping the startup ecosystem not only by injecting financial capital, but by fundamentally altering the structure, maturity, and scalability of emerging ventures. Unlike traditional venture capital firms that primarily seek high-return exits, CVCs in the Kingdom are driven by both financial objectives and strategic imperatives, creating a layered value proposition for startups.

Strategic Capital vs. Passive Investment

Startups backed by corporate venture arms often benefit from more than just funding—they gain access to the strategic infrastructure and commercial networks of the parent corporation. This includes distribution channels, procurement pipelines, regulatory facilitation, and, critically, early enterprise clients. For early-stage companies, such access can compress market entry timelines by years.

Take, for instance, fintechs backed by SNB Capital or stc’s Tali Ventures. These startups are not just experimenting in isolation—they are being integrated into live environments, piloting products directly within national banks or telecom platforms. This symbiotic approach allows startups to iterate rapidly and scale with less friction.

Sectoral Depth and Regulatory Advantage

In regulated industries such as finance, energy, health, and logistics, where bureaucratic complexity often inhibits innovation, CVC involvement provides a regulatory shield and operational runway. Startups working under the umbrella of corporates like Aramco Ventures or Riyadh Bank Ventures often report faster compliance onboarding, shared risk frameworks, and access to insider policy insights.

This is particularly important in sectors where time-to-market is constrained by licensing, certification, or policy alignment. As Nabeel Koshak, CEO of Saudi Venture Capital Company, stated: “Strategic capital is now a form of national capacity building. It allows startups to operate at the frontier of innovation while being tethered to institutional strength.”

Talent Development and Knowledge Transfer

Corporate-backed startups also become indirect beneficiaries of knowledge transfer. Through mentorship from corporate leadership, shared R&D facilities, and access to seasoned professionals, these ventures develop internal capabilities that exceed typical startup benchmarks. This can lead to higher retention, better governance, and stronger product-market fit over time.

Moreover, some corporates are now embedding startup staff into internal innovation teams—a reverse mentorship model that enhances agility on both ends.

Creating a Hybrid Funding Model

Another key development is the rise of co-investment models involving both CVCs and traditional VCs. According to MAGNiTT, nearly 87% of CVC-backed deals in Saudi Arabia during 2022–2023 included participation from institutional or regional venture capital funds. This hybrid approach diversifies the risk profile and expands the strategic bandwidth of the startup.

Startups that operate under this dual-investor structure often find themselves better positioned to attract international investors during later stages, particularly Series B and beyond, due to the credibility and operational grounding provided by corporate stakeholders.

Toward a Sustainable Innovation Ecosystem

Ultimately, the growth of CVC in Saudi Arabia is helping to mature the startup ecosystem in a way that is structurally sustainable. It is bridging the gap between experimental tech and industrial adoption. And in doing so, it is laying the groundwork for long-term ecosystem resilience—where innovation is not only celebrated, but continuously deployed, scaled, and institutionalized.

In short, CVCs in Saudi Arabia are not merely supporting startups—they are scaffolding a future where startups become part of the national economic architecture.

As Saudi Arabia continues to implement Vision 2030, the role of CVC is expected to expand further. Corporations are likely to increase their investments in startups, fostering innovation and contributing to the Kingdom's economic transformation. The synergy between corporate objectives and national goals positions CVC as a powerful tool for driving sustainable growth and positioning Saudi Arabia as a hub for innovation in the region.

Ghada Ismail

An MVP is not a prototype or a half-baked concept. It’s a functional product just stripped down to its core. It includes the most essential features that solve your customers' main problem. Think of it as the shortest path between your idea and real user feedback.

Instead of spending months building the “perfect” app or platform, you build something usable and release it early. This way, you avoid wasting time and money on features nobody wants.

Why MVPs Matter in the Startup Journey

1. Validation Before Scaling
   Your MVP helps you test the market before committing heavy resources. You’ll find out if there’s actual demand — and learn what users really care about.
2. Faster Time to Market
   Building an MVP helps you launch quickly. And in the startup world, speed often beats size.
3. Smarter Use of Resources
   Startups usually work with tight budgets. An MVP helps you focus only on what matters, reducing risk and avoiding feature bloat.
4. Informed Product Decisions
   By releasing early, you gather real-world data. That feedback becomes your compass for what to build next.

What an MVP Is Not

• It’s not a buggy or unpolished product. It should still be functional and user-friendly.
• It’s not a test run with your friends and family. Real users provide real feedback.
• It’s not the final version. It’s the beginning of a learning process.

Examples of MVPs in Action

• Instagram started as a photo-sharing app with just a few filters, no stories, no messaging.
• Dropbox first launched with a video explaining how the product would work, even before it was fully built.
• Uber began as a simple app connecting black car drivers with iPhone users in San Francisco.

These MVPs were not flashy. They were focused.

Tips for Building Your MVP

• Identify the core problem you’re solving.
• List the must-have features and ditch the rest.
• Choose the right tools for speed and simplicity.
• Build, release, and listen to your users.
• Iterate based on actual usage and feedback.

Final Thoughts: MVP Is a Mindset

Building an MVP isn’t just a tactic,  it’s rather a mindset. It encourages startups to learn, adapt, and grow in the most efficient way possible. In the fast-paced world of entrepreneurship, launching smart can be just as important as launching fast.

So if you’re at the early stage of your startup journey, don’t wait for perfect. Start with an MVP and let your users shape what comes next.

Kholoud Hussein 

In the rapidly evolving landscape of artificial intelligence (AI), a new breed of startups is emerging in Saudi Arabia and the broader Middle East and North Africa (MENA) region. These are generative AI-first startups—companies that are not merely incorporating AI into their operations but are fundamentally built around generative AI technologies. This strategic focus positions them at the forefront of innovation, offering scalable solutions across various sectors.

Defining Generative AI-First Startups

A generative AI-first startup is characterized by its foundational reliance on generative AI models. Unlike traditional companies that may adopt AI tools to enhance existing processes, these startups are conceived with AI at their core, leveraging technologies such as large language models (LLMs), generative adversarial networks (GANs), and other advanced algorithms to create novel content, solutions, or services.

Beyond Tools: Generative AI as the Core Business Model

In these startups, generative AI is not an auxiliary tool but the central component of their value proposition. This paradigm shift enables the creation of products and services that were previously unattainable, allowing for unprecedented levels of personalization, efficiency, and scalability. For instance, in the healthcare sector, generative AI can analyze vast datasets to generate personalized treatment plans, while in education, it can create customized learning materials tailored to individual student needs.

This approach also facilitates rapid prototyping and deployment, as AI models can be trained and fine-tuned to adapt to specific market demands swiftly. Consequently, generative AI-first startups can achieve significant market penetration with relatively lean operational structures, often requiring fewer human resources compared to traditional enterprises.

Prominent Generative AI-First Startups in Saudi Arabia and MENA

Several startups in Saudi Arabia and the MENA region exemplify the generative AI-first model:

• Mozn (Saudi Arabia): Specializes in enterprise AI solutions, including OSOS, a generative Arabic AI model designed for natural language understanding and generation. 
• Lucidya (Saudi Arabia): Offers a customer experience management platform powered by AI, providing real-time insights and interactions, with a particular focus on Arabic language analysis. 
• Kinetik (Saudi Arabia): Utilizes generative AI to personalize patient care, analyzing health data to provide tailored health plans and recommendations. 
• DXwand (Egypt & UAE): Develops AI-powered chatbots and voice assistants, focusing on Arabic and English language support to automate customer service and extract insights from unstructured data. 
• Seez (UAE): Provides AI-driven solutions for the automotive industry, including an AI-powered virtual assistant that enhances customer support with chatbot functionality and real-time insights. 

Strategic Implications for the Region

The rise of generative AI-first startups aligns with Saudi Arabia's Vision 2030, which emphasizes technological innovation and economic diversification. By fostering an ecosystem conducive to AI development, the region is positioning itself as a hub for cutting-edge technologies. Investments in AI infrastructure, talent development, and regulatory frameworks are critical to sustaining this growth trajectory.

Moreover, the success of these startups demonstrates the region's potential to make a significant contribution to the global AI landscape, offering solutions that address both local and international challenges. As generative AI continues to evolve, the MENA region's proactive engagement with this technology will be instrumental in shaping its economic and technological future.

In conclusion, generative AI-first startups represent a transformative force within Saudi Arabia and the MENA region, redefining traditional business models and unlocking new avenues for innovation. Their emergence underscores the importance of embracing advanced technologies to drive sustainable economic growth and competitiveness on the global stage.

Noha Gad

In an era where consumers demand faster deliveries, greater convenience, and seamless shopping experiences, a logistical transformation is occurring behind the scenes: the silent rise of dark stores. These unmarked, tech-driven fulfillment centers are quietly revolutionizing retail infrastructure, emerging as the critical link between digital storefronts and instant delivery expectations in our era of hyper-speed e-commerce and q-commerce.

Recent research showed that the global dark store market is expected to hit $32.91 billion in 2025, with a CAGR of 41%. Meanwhile, the dark store market in the Middle East and North Africa (MENA) is projected to reach $12.1 billion by 2030, growing at a CAGR of 36.1%.

What exactly are dark stores?

Unlike traditional retail stores designed for customer foot traffic, dark stores are optimized exclusively for online order fulfillment. They function as micro-warehouses, strategically located in urban centers to enable hyperlocal deliveries, sometimes in as little as 10 to 30 minutes.

These highly automated spaces eliminate all traditional retail elements: no storefronts, shoppers, or checkout lines. Instead, they feature AI-driven inventory systems, robotic pickers, and smart sorting technology operating around the clock. 

By focusing exclusively on high-demand products and leveraging predictive analytics, dark stores simultaneously achieve remarkable speed, reduced waste, and optimal space utilization, making them the perfect fulfillment solution for today's instant gratification economy.

Why dark stores are gaining traction in Saudi Arabia

Dark stores are gaining traction in the Kingdom thanks to several key factors aligned with the country’s economic, technological, and consumer trends:

• Rapid growth of e-commerce. Consumers increasingly prefer quick, convenient online shopping, especially for groceries and everyday essentials. 
• Demand for super-fast delivery. Dark stores enable 10-to-30-minute deliveries, meeting rising expectations for speed. Applications like Nana, Ninja, and Haseel leverage dark stores to offer instant grocery delivery.
• Urbanization and high population density. Cities like Riyadh, Jeddah, and Dammam have dense populations, making dark stores cost-effective for covering large demand areas.
• Investment in technology and startups. Saudi venture capital firms, such as STV and Jahez, fund quick-commerce startups adopting the dark store model.

How dark stores benefit the supply chain in Saudi Arabia 

Dark stores are transforming supply chain efficiency in Saudi Arabia by optimizing logistics, reducing costs, and improving delivery performance. They provide:

• Faster and more efficient order fulfillment.
• Lower operational costs.
• Enhanced inventory management.
• Scalability for Q-commerce.
• Reduced delivery costs and carbon footprint
• Better supplier and retailer collaboration.

Dark stores vs. traditional warehouses vs. micro-fulfillment centers

Unlike large warehouses, which are typically located on the outskirts of cities and designed for bulk storage, dark stores are compact, urban-based facilities optimized for speed. They act as hidden retail hubs—stocking high-demand groceries and essentials—and enable platforms like Nana and Jahez to deliver orders in under 30 minutes.

Their proximity to consumers and tech-driven picking systems makes them ideal for Saudis' on-demand culture, though their smaller size limits inventory capacity compared to sprawling traditional warehouses.

Meanwhile, traditional warehouses are the backbone of bulk logistics, serving big retailers and manufacturers. While they lack the agility of dark stores, they support large-scale e-commerce operations with lower per-unit storage costs. However, their distance from urban centers slows last-mile delivery.

The automated, high-density micro-fulfillment centers (MFCs), often embedded in existing supermarkets or standalone sites, use robotics and AI to fulfill online orders quickly. 

Dark stores are poised to play an even bigger role in Saudi Arabia’s retail and logistics landscape, driven by several key trends, notably hyperlocal and on-demand dominance, automation and robotics integration, sustainability and cost optimization, and regulatory and investment support.

Finally, dark stores are more than a passing trend in Saudi Arabia, they’re a strategic evolution in retail and supply chain efficiency. By combining speed, cost savings, and scalability, they address the Kingdom’s unique challenges: urbanization, high digital adoption, and demand for instant gratification.

Ghada Ismail

In recent years, Saudi Arabia has thrown open its doors to foreign entrepreneurs, promising 100% ownership, faster business licensing, and easier visa pathways. Backed by Vision 2030, these reforms aim to position the Kingdom as a startup magnet, especially as regional rivals compete for global talent and capital. While homegrown entrepreneurship is thriving, a growing number of foreign entrepreneurs are also seeing Saudi Arabia as a promising destination to launch startups. As traditional barriers fade and incentives increase, expats are stepping forward not just as contributors to the Saudi economy but as builders of entirely new ventures. But what exactly makes Saudi Arabia appealing to expatriate entrepreneurs, and what roadblocks still stand in their way?

Is It Easy for Expats to Start a Business in Saudi Arabia?

Starting a business as an expat in Saudi Arabia is more possible than ever, but it isn’t without challenges. On the upside, the government has rolled out a suite of reforms and incentives aimed at making the Kingdom an attractive launchpad for startups of all kinds. Startups led by foreign nationals can now apply for investment licenses without needing a Saudi partner, thanks to changes rolled out by the Ministry of Investment (MISA). The business visa process has also been simplified, with multi-entry options for founders and employees.

Entrepreneurial residency programs, such as the Special Talent and Premium Residency visas, offer an alternative to traditional work sponsorships. These permits provide greater mobility, the right to own property, and fewer employment restrictions—key incentives for global entrepreneurs considering Saudi Arabia as a base.

Opening the Door for Expat Founders: Premium Residency Options

Saudi Arabia’s evolving residency landscape is playing a crucial role in attracting global entrepreneurial talent. One standout initiative is the Premium Residency Program, which offers foreign professionals, investors, and startup founders the opportunity to live and work in the Kingdom with greater flexibility and fewer restrictions.

According to Monsha’at, the Premium Residency holders enjoy several key benefits, including the ability to own real estate, conduct business, invite family members, and move freely in and out of the country without a visa. Notably, they are exempt from expat fees and can transfer between employers without penalties—a significant shift from the older sponsorship-based system.

There are multiple tailored tracks under the program that cater to the needs of foreign entrepreneurs and investors:

Entrepreneur Residency is specifically designed for startup founders aiming to build and scale in Saudi Arabia. It allows entrepreneurs to nominate two team members for residency under the Special Talent category and exempts them from the Saudization quota (Nitaqat) for the first three years. Those who create 10 jobs in the first year and another 10 in the second can directly qualify for conditional permanent residency.

Investor Residency targets those looking to tap into the Kingdom’s booming economy and offers a streamlined path to long-term residency.

Other tracks like Special Talent, Gifted, and Real Estate Owner Residency further expand the program’s appeal, catering to scientists, artists, athletes, and property owners.

With both limited and unlimited duration options, the Premium Residency program is helping redefine what it means to be a foreign entrepreneur in Saudi Arabia, offering not just access but long-term stability and inclusion in the Kingdom’s ambitious development journey. 

On the policy side, recent changes have made it easier for non-Saudis to own 100% of their companies without the need for a local sponsor. Licensing procedures have been streamlined through platforms like “Meras” and “Monsha’at,” while the Ministry of Investment offers dedicated support for foreign investors looking to navigate regulations.

In the same context, foreign entrepreneurs can choose from several business structures based on their goals and industry, including:

Limited Liability Company (LLC)

Subsidiary of a Foreign Company

Joint Stock Company (JSC)

Regional Headquarters (RHQ)

Technical and Scientific Services Office (TSSO)

According to the Setup in Saudi website - a comprehensive digital platform designed to assist foreign entrepreneurs and businesses in establishing and growing their ventures within Saudi Arabia - each structure offers distinct benefits depending on the founder’s vision and operational needs, and consulting with a qualified business advisor or local incubator is highly recommended to navigate the legal and regulatory landscape smoothly.

Further, the Saudi Arabian General Investment Authority (SAGIA), now part of the Ministry of Investment (MISA), has made it possible for foreigners to obtain investment licenses within days, streamlining what used to be a more complicated process.

The Drawbacks:
However, barriers remain. Bureaucracy, though improving, can still be complex and time-consuming. Some expats face difficulties understanding regulatory updates, especially if they’re unfamiliar with Arabic or the local legal system. Moreover, competition in certain sectors—like food tech or logistics—has intensified, particularly from well-funded Saudi firms.

Cultural nuances also pose hurdles. Building trust with local partners or clients often requires deeper integration into Saudi business etiquette, which can be unfamiliar to newcomers. For many expats, establishing credibility and a reliable local network takes time—and often, patience.

Vision 2030 Impact:
Vision 2030, the Kingdom’s landmark transformation plan, explicitly encourages foreign participation in building a diversified, knowledge-based economy. The plan supports SMEs and startups through funding bodies like the Saudi Venture Capital Company (SVC), the Social Development Bank, and the Public Investment Fund (PIF).

Moreover, the Monsha’at SME Authority provides training, mentoring, and subsidized tools to early-stage founders—services which are increasingly accessible to expat entrepreneurs. Free zones and innovation hubs such as King Abdullah Economic City (KAEC), Neom’s Oxagon, and the Riyadh Techno Valley also offer regulatory and operational advantages to foreign-led ventures.

Real-Life Stories: Finding the Right Fit in Saudi Arabia

One compelling example of foreign expansion into Saudi Arabia comes from Waagner Biro Steel and Glass, an Austrian firm with over 165 years of engineering expertise, whose success story was narrated by the Setup in Saudi website. 

Known for high-profile projects across the Middle East, including the Floating Bridge and Al Noor Island Development in the UAE, the company recognized Saudi Arabia as the next logical step, both strategically and economically.

“We saw a market that’s simply too big to ignore,” said Jason Wilson, General Manager of Waagner Biro Steel and Glass. “The upcoming global events—like the 2029 Asian Winter Games and Expo 2030—are more than milestones. They are catalysts driving accelerated urban development.”

Motivated by the ambitions of Vision 2030 and the scale of infrastructure transformation underway, the firm partnered with expansion platform AstroLabs to navigate entry into the Saudi market. With local guidance, they were able to efficiently meet entry requirements, build the right relationships, and set up operations aligned with their long-term vision.

Wilson emphasizes that local engagement is key. “It takes face-to-face interaction. Don’t spend too much time developing remote strategies. Get on the ground. Meet suppliers. Assess capacities. The earlier you’re in, the sooner you adapt.”

Waagner Biro’s story underscores how established foreign companies, when supported by local networks and aligned with national priorities, can thrive in Saudi Arabia’s evolving economic landscape.

Challenges to Watch Out For

Despite the promising developments, launching a startup in Saudi Arabia as an expat is not without its friction points.

Legal and Licensing Complexities:
Even with streamlined procedures, licensing can still be nuanced depending on the sector. Certain activities require approvals from multiple agencies, and rules around foreign ownership can vary for industries deemed strategic or sensitive. Navigating these nuances often requires legal counsel or local advisors, adding to the cost and complexity.

Access to Capital:
While the venture capital scene is growing rapidly, access to funding for expat-led startups is still somewhat limited compared to those with Saudi founders or partnerships. Many local VCs prefer to back teams with a strong Saudi presence or deep local understanding. Establishing investor confidence as an outsider can be difficult unless paired with a compelling Saudi-market value proposition or a local co-founder.

Hiring and Retention:
Saudi Arabia’s labor laws and Saudization requirements—while not always applicable to early-stage ventures—can still affect long-term hiring plans. Many expat founders report challenges in finding the right mix of local and international talent, especially in niche tech or design roles.

Cultural and Consumer Fit:
Creating a product that resonates with Saudi consumers often requires an insider’s perspective. Foreign founders must take time to understand social norms, spending habits, and consumer expectations. What works in Western or Asian markets may not translate directly in the Kingdom.

Navigating the Ecosystem:
While support programs are abundant, knowing which doors to knock on isn’t always easy. Some expats report difficulty navigating the overlapping mandates of multiple government agencies or gaining visibility within local investor networks.

Conclusion & Future Outlook

Saudi Arabia is emerging as a serious contender on the global startup map, not just for Saudis, but increasingly for the world’s entrepreneurs. Its fast-growing market, government-backed funding, and ambitious economic diversification goals make it a fertile ground for innovation.

For expat founders, the opportunity is clear: access to a young and growing population, government support, and a hunger for new ideas. But success requires more than just a visa and a business plan. It takes cultural adaptability, regulatory know-how, and the ability to forge strong local partnerships.

As the Kingdom continues to open its doors to global talent, the next wave of startups will likely be built by teams that blend international experience with local insight. And for those willing to learn, adapt, and build with intention, Saudi Arabia may well be one of the most promising frontiers for entrepreneurship today.

Advice for Aspiring Expats:

• Do your homework. Understand the legal and market landscape before making the leap.
• Build local connections early. Having a Saudi partner, mentor, or advisor can be invaluable.
• Be patient but proactive. Things move quickly, but building trust takes time.
• Leverage the ecosystem. From incubators to grants, take full advantage of what’s available.

With the right mix of preparation and adaptability, expat founders can thrive and help shape the future of Saudi innovation.