Kholoud Hussein 

Saudi Arabia’s startup magnetism is no longer a hypothesis; it’s measurable. In the first half of 2025, Saudi Arabia outperformed the wider MENA venture market, with startup funding up 116% year-on-year and deal activity matching that of the UAE for the first time, according to MAGNiTT’s H1 report. The financing tide is mirrored by regulatory throughput: the Ministry of Investment (MISA) issued 14,321 investment licenses in 2024—up nearly 68% year-on-year—signaling that more companies (including early-stage entrants) are choosing to plant a flag in the Kingdom. 

Perhaps the clearest indicator for founders themselves is the “Entrepreneur License”—a dedicated path for foreign startups. By mid-2025, 550 foreign startups had been licensed under this regime, a 118% jump versus mid-2024, per Monsha’at. That momentum sits alongside other founder-friendly gateways—from 100% foreign ownership in many sectors to the introduction of a Startup Visa category in 2025—lowering the friction of entry and signaling policy continuity. 

Capital as a calling card

Capital formation is a necessary condition for cross-border startup expansion, and Saudi has been deliberate in putting capital on the table. At LEAP 2025, authorities announced $14.9 billion in AI and digital deals and commitments, an umbrella under which global and regional startups can commercialize at speed. One emblematic example: U.S. AI-chip startup Groq secured a $1.5 billion commitment tied to expanding AI inference infrastructure in the Kingdom and scaling delivery from a new Dammam data center. “It’s an honor for Groq to be supporting the Kingdom’s 2030 vision,” CEO Jonathan Ross said of the partnership. 

Saudi Arabia’s broader risk capital picture is improving as well. Across MENA in H1 2025, startups raised about $2.1 billion through 334 deals—a 134% year-on-year rise—with Saudi Arabia leading the region’s funding totals, even when excluding debt. On the private-equity side, the Kingdom captured 45% of MENA’s H1 2025 PE transactions, pointing to late-stage depth that reduces exit anxiety for international founders considering relocation or market entry. 

Policy that travels well

For foreign founders, regulatory clarity matters as much as capital. Saudi’s investment regime has shifted from “if” to “how”—codifying 100% foreign ownership in many activities and streamlining licensing under MISA’s ISIC-based framework. The results show up in the pipeline: MISA’s quarterly updates highlight a brisk cadence of new permits; in Q4 2024 alone, 4,615 licenses were issued, nearly 60% more than the same quarter a year earlier. 

Two adjacent policy levers also matter for founders: premium residency and regional headquarters (RHQ). Applications for Saudi’s premium residency surpassed 40,000 between early 2024 and mid-2025, broadening the talent funnel for executives and technical leaders that foreign startups need to recruit locally. Meanwhile, the RHQ program continues to pull decision-making centers into Riyadh, with 34 additional RHQ licenses granted in Q2 2025—building a critical mass of buyers, partners, and procurement teams inside the Kingdom. 

Wide open sector doors

• AI and data infrastructure. The Groq transaction is not an outlier; it’s a signal. The Kingdom has positioned itself as an AI build-site—from hyperscale data centers to model development capacity—backed by new national champions like HUMAIN and a dense pipeline of digital infrastructure. For international AI startups, the implication is straightforward: Saudi is willing to co-invest in critical plumbing if the commercial payoff is local.

• Industrial and advanced manufacturing. Beyond software, Saudi Arabia keeps issuing industrial permits at a pace—1,346 in 2024 alone, with SR50 billion ($13.3 billion) in fresh investment—creating a market for foreign startups that sell enabling tech (vision systems, robotics, supply-chain AI, maintenance analytics) to local manufacturers. 

• Proptech and urban services. A wave of foreign proptechs is eyeing Saudi Arabia’s fast-digitizing real-estate market. UAE-born Huspy, for instance, has publicly prioritized Saudi in its expansion roadmap, citing regulatory modernization and demand for transaction-speed tools for brokers and agents. “Saudi Arabia is undergoing a major transformation in real estate… Our goal is to partner with local professionals and give them tools that help them close deals faster,” CEO Jad Antoun said, noting the company’s near-term entry plans into Riyadh. 
• Tourism and consumer platforms. With regions like Aseer receiving focused development to diversify beyond the megacity narrative, B2C and B2B2C startups in traveltech, creator-led commerce, and experience marketplaces can find “white space” beyond Tier-1 cities—valuable for foreign firms seeking first-mover brand equity. 

What foreign founders say

The confidence narrative is not just macro headlines; it’s founder-level calculus. Groq’s Ross frames Saudi as a co-builder in the AI stack, not merely a customer, emphasizing alignment with Vision 2030’s production goals rather than transactional procurement. Huspy’s Antoun points to a practical wedge: digitizing an industry that still has offline bottlenecks, using a partnership model with local professionals to localize workflows rather than impose a foreign UX. Venture investors echo this pull; as one regional funder told AGBI, Saudi Arabia is “one of the few countries in the world where you can actually see the growth,” with VC deals on track to cross $1 billion and potentially scale tenfold by 2030.

Friction points that matter

No market is turnkey, and international founders should assess Saudi Arabia’s specifics with the same rigor they would apply to the U.S., India, or the EU.

• Regulatory sequencing: While entry has eased, startups still need the right license stack (commercial registration, sectoral approvals, and—where applicable—sandbox permissions) and must align their activity with MISA’s ISIC classifications. This is navigable, but it requires a sequencing plan and local counsel. 
• Localization beyond language: Winning tends to hinge on product-market fit, not translation alone. Antoun’s comments on local agent workflows in Saudi real estate illustrate the point: foreign startups that embed local process logic (payment rails, KYC norms, fulfillment SLAs) grow faster and face less churn. 
• Talent immigration and leadership depth: New visa channels—including the Startup Visa and premium residency—reduce friction, but founders should still time senior hires around licensing milestones and RHQ decisions to avoid costly lag between strategy and presence. 
• Enterprise sales cycles: In sectors where government or large enterprises are anchor customers (such as health, education, utilities, and petrochemicals), procurement is structured, security review-heavy, and relationship-intensive. The upside is that once inside, retention can be exceptional; the downside is that proof-of-value must be unambiguous. LEAP’s deal flow shows that the door is open, but readiness is on the founder. 

The geography of opportunity

Saudi’s market is not one city: it is a set of distinct demand nodes—Riyadh for headquarters and B2B sales; Eastern Province for energy, data centers, and industrial tech; Jeddah for logistics and commerce; and fast-developing regions like Aseer for tourism, environmental tech, and outdoor economy platforms. The Dammam data center build tied to Groq underscores why East Coast proximity can be strategic for AI infrastructure and industrial IoT startups. 

RHQ policy compounds this geography. As more multinationals and unicorns set up regional headquarters in Riyadh, foreign startups get closer to procurement teams that control multi-country budgets—meaning a Saudi entry can be a GCC springboard, not a single-market detour. 

Signals in the numbers

The velocity of new company formation and licensing is widening the aperture for cross-border startups:

• Licenses: 14,321 total investment licenses in 2024; +67.7% YoY. 
• Foreign startup licenses: 550 by mid-2025; +118% YoY. 
• Industrial base: 1,346 industrial licenses in 2024; SR50B new investment; >44,000 expected new jobs. 
• Venture flow: Saudi H1 2025 startup funding +116% YoY; deal count at record H1 levels. 
• AI anchor deals: $14.9B in AI/digital commitments announced at LEAP 2025; Groq’s $1.5B Saudi commitment. 

These are not vanity metrics; they translate into contract velocity, partner density, and hiring pipelines that a seed-to-Series-B founder can actually use.

How foreign startups are entering

1) Direct incorporation with Entrepreneur License: Best for startups with product clarity and near-term revenue paths. It allows 100% ownership and straightforward compliance if your activity fits the ISIC mapping. 

2) JV or distribution through sector leaders: In sales-heavy verticals (fintech infrastructure, insuretech, defense-grade cyber, industrial AI), foreign startups often partner with a local incumbent to pass procurement gates faster while building their own entity for future scale.

3) RHQ plus operating subsidiary: For scaleups serving GCC-wide customers, anchoring leadership in Riyadh while operating tech teams in multiple cities can shorten enterprise sales cycles and centralize government engagement. The rising number of RHQ licenses signals this pattern is gaining steam.

The founder’s checklist

• Proof of local value: Be explicit about what you enable: faster approvals for banks, lower downtime in factories, shorter closing cycles for agents. Saudi customers buy outcomes, not roadmaps. (Huspy’s focus on broker productivity is illustrative.) 
• Compliance by design: Build KSA-specific workflows into the product (Arabic interfaces, e-invoicing, ZATCA rules, data residency where needed) rather than layering them as post-sale custom work.
• Talent stack: Budget early for a bilingual customer success lead and a regulatory ops specialist; they will pay for themselves by compressing the time from POC to MSA. Startup and premium residency visas expand this hiring universe. 
• Capital partnerships: Treat local funds and corporate venture arms as design partners, not just check-writers. The Groq-Aramco Digital alignment shows how strategic capital can unlock infrastructure and demand simultaneously.  

What success looks like

A sustainable Saudi play for a foreign startup usually has four features: 

(1) local problem definition (not copy-pasted from another geography

(2) embedded compliance and language support

(3) a domestic revenue base that can survive currency or geopolitical shocks elsewhere

(4) partnerships that make a Saudi presence a GCC (and eventually global) revenue engine. 

The policy regime makes this viable; the capital base makes it scalable; the customer appetite makes it repeatable.

The numbers suggest the window is open. MAGNiTT’s H1 2025 data shows Saudi’s venture engine running hotter than regional peers. MISA’s licensing pipeline continues to swell, and specialized channels—entrepreneur licensing, new visa categories, RHQ—shrink the “distance” between a foreign founder and their first Saudi purchase order. On the ground, founders are already speaking a language of execution: Groq’s Jonathan Ross emphasizes co-building, while Huspy’s Jad Antoun talks about fixing specific frictions with local partners. 

Finally, Saudi Arabia has moved from being a promising market to a working market for international startups. For founders who can anchor locally, localize deeply, and partner intelligently, the Kingdom is not just another expansion pin on the map—it’s a growth core.

Shaimaa Ibrahim 

The global real estate industry is undergoing a profound digital transformation, redefining traditional methods of buying and selling property. This evolution has paved the way for property technology (PropTech) companies to become key catalysts for change—delivering innovative solutions that enhance user experience and streamline real estate transactions.

Among the standout players leading this shift is Huspy, a UAE-born company with a bold vision to revolutionize the home-buying journey through seamless, technology-driven experiences. Since its inception, Huspy has emerged as a prominent force in the Gulf region’s real estate innovation landscape, helping reshape the way people engage with the property market.

In this interview, we spoke with Jad Antoun, CEO and Co-founder of Huspy, to explore the company’s origins, its mission to digitize real estate, and the technology powering its growth. We also delve into Huspy’s expansion strategy—particularly its focus on the Saudi market—as well as its perspective on the future of PropTech in the region and the growing influence of artificial intelligence in shaping the next era of real estate.

How did Huspy’s journey in proptech begin in the UAE, and what are the company’s main markets today?

Huspy started in the UAE with a simple idea, to fix the inefficiencies in real estate transactions by building better infrastructure for mortgage brokers and real estate agents. In doing so, we also wanted to build a global technology brand from the region for the rest of the world.

Our early focus was on mortgages, helping brokers get approvals faster and serve their clients better. We then expanded into real estate to support agents and agencies. Today, our main markets are the UAE and Spain, with Saudi Arabia now becoming a major priority. We’re aim to be in over 10 cities by the end of the year and are working toward making Huspy the technology backbone of real estate professionals in all of our markets.

What are Huspy’s flagship tech solutions, and how do they differ from traditional offerings in the real estate industry?

We’ve built tools that give mortgage brokers and real estate agents a competitive edge and the ability to serve their clients better. On the mortgage side, brokers use Huspy’s platform to manage clients, access best-in-market interest rates, submit applications, and get fast approvals. On the real estate side, agents use our app to manage showings, negotiate offers, and coordinate with mortgage offers, all in one place. Traditionally, these processes are disconnected and manual. What makes Huspy different is that everything is integrated, built for professionals, and designed to help them close transactions faster, and earn industry-leading commissions.

What sets the real estate chatbot you recently launched apart from traditional advisory services, and what challenges did you encounter in its development and deployment?

Most chatbots in real estate have primarily been built to capture home buyer contact details. Ours is built to act more like a digital partner and accessible via WhatsApp, making it easy for customers to use. Huspy.Ai pulls from real-time market data and offering tailored answers based on user queries. We also made sure that the AI powered platform could handle the complexity of regulations and offer accurate responses in multiple languages, based on the latest information. 

What is Huspy’s current operational scale, what is the total value of real estate transactions it manages, and what are the company’s plans through the end of 2025?

Huspy currently facilitates over 7 billion dollars in real estate transactions annually. In the UAE, we’ve captured around 25 percent of the mortgage market, and 30 percent in Dubai alone. We’re live in multiple cities in Spain and entering Saudi Arabia very soon. By the end of 2025, we aim to operate in over 10 cities across Europe and the Middle East, while deepening our ecosystem of services for professionals.

Having recently raised 59 million dollars, how will this investment be utilized to support your expansion plans in European and Middle Eastern markets, particularly in Saudi Arabia?

The investment will help us scale both our product and our reach. In Europe, we’re focused on Spain and will expand into other high-volume real estate markets across the continent. In the Middle East, Saudi Arabia is a top priority. The funds will go toward hiring local teams, building country-specific features, and forming partnerships with local brokers and agencies. We’re also investing in our core technology to make our tools even more powerful for agents and brokers.

Saudi Arabia has been long on our horizon. We now believe that we are in a strong position to enter the market and succeed. The government’s recent updates on real estate rules is a positive sign, and we are excited to come to Riyadh very soon. 

Given the company’s plans to enter the Saudi market, how do you perceive the digitization of the Saudi real estate sector? What are your expansion plans in this market over the coming years?

Saudi Arabia is undergoing a major transformation in real estate. The government is supporting digitization, but many agents and brokers still rely on offline processes. That’s where we see opportunity to fix the fragmentation. Our goal is to partner with local professionals and give them tools that help them close deals faster and serve clients better. Over the next few years, we plan to onboard leading agencies, localize our tech stack, and establish Huspy as the preferred partner for real estate professionals in the Kingdom.

In your opinion, what are the most significant technological trends that will impact the future of real estate in Saudi Arabia, the UAE, and the Gulf region?

The biggest shift is happening in professional enablement. Instead of replacing agents or brokers, technology is giving them new capabilities. We’re seeing trends like automated mortgage approvals, smart agent workflows, and fully digital closing processes. There’s also growing interest in data-driven pricing tools and AI-powered property search. Markets like Saudi Arabia and the UAE are moving fast, and we believe the winners will be platforms that help professionals work more efficiently, not just faster.

How do you foresee the role of AI in reshaping the real estate markets in the UAE and Saudi Arabia in the coming years?

Real estate is the world’s largest asset class and the high-value nature of transactions means that humans will remain a crucial part of transactions. AI will become a behind-the-scenes engine for real estate professionals. It won’t replace the agent or broker, but it will support them in decision-making, personalization, and lead qualification. In markets like the UAE and Saudi Arabia, where customer expectations are rising and deal cycles can be complex, AI can help streamline everything from property recommendations to document verification. At Huspy, we’re using AI to improve agent workflows and make customer interactions smarter without losing the human connection.

What are the most prominent opportunities for entrepreneurs in the proptech sector?

The biggest opportunities lie in solving pain points for real estate professionals. That could be building tools for pricing, analytics, financing, or transaction management. There’s also room to innovate in underserved segments like rentals, cross-border deals, and agent training. Additionally, entrepreneurs need to think beyond real estate, and look at related areas such as property maintenance, interior design, rentals, etc. In fast-growing markets like the GCC, founders who can combine deep local knowledge with scalable tech have a real chance to build category-defining companies. 

Ghada Ismail

In the startup scene, raising money is rarely a straight line. Founders often find themselves between major funding milestones, needing extra capital to keep moving forward. This is where two financing tools come in: the bridge round and the extension round. While they sound similar, each serves a distinct purpose and is applied differently depending on the company’s stage and needs.

What is a Bridge Round?

A bridge round is exactly what it sounds like: a bridge. It’s temporary funding that helps a startup “cross over” to its next big milestone. For example, a startup might raise a bridge round to extend its runway until it can close a larger Series A or Series B.

These rounds often come from existing investors, who already believe in the company and want to protect their earlier investment. Sometimes, bridge rounds are structured as convertible notes or SAFE agreements, which postpone the valuation discussion until the next major funding event.

In the MENA region, several startups have turned to bridge rounds. A notable example is Kashat, the Cairo-based fintech offering nano-loans to Egypt’s unbanked population. In 2021, the startup raised $1.75 million in bridge financing, providing the short-term capital it needed to further develop its platform and expand operations before securing larger rounds. This illustrates how bridge funding can give startups in emerging markets the breathing space to strengthen their fundamentals while preparing for the next stage of growth.

What is an Extension Round?

An extension round, by contrast, is not about survival; it’s rather about momentum. In this case, a company has already raised a round, say a Series A, but wants to bring in more capital under the same terms. Instead of rushing into a higher-priced Series B, the startup simply extends its existing round, allowing new or existing investors to participate without changing the valuation.

Extensions are particularly useful when the company is performing well and sees fresh opportunities, but the timing isn’t right for a new fundraising milestone. 

For example, UAE-based cloud kitchen giant Kitopi reportedly tapped into extension rounds in its growth phase, bringing in extra firepower from new investors while keeping its valuation steady until it was ready for a much larger jump. In mid-2021, Kitopi closed a $415 million Series C funding round, led by SoftBank Vision Fund 2 with participation from other investors. Later that year—or into early 2022—the company raised an additional $300 million as a Series C extension, bringing the total size of the funding round to approximately $715 million and lifting its valuation to about $1.55 billion.

How Founders Decide Between the Two

So how does a founder know which path makes more sense—bridge or extension? It often comes down to intent.

• If the company is under pressure—perhaps revenue growth slowed, or the market turned tough—a bridge round provides short-term relief until conditions improve.
• If the company is doing well but wants to capitalize on opportunities before the next major raise, an extension round allows for flexibility without the burden of a new valuation.

Both tools have risks. A bridge round can signal distress if not managed carefully, while an extension round could dilute founders more than they’d like. Yet, when used strategically, both can be powerful instruments to keep momentum alive.

Why It Matters in MENA

The startup ecosystem in the Middle East and North Africa is still maturing. Many companies operate in fast-changing regulatory environments and fragmented markets. That means fundraising is not always as predictable as in Silicon Valley.

Bridge and extension rounds offer founders flexibility in navigating this landscape. They buy time, bring in the right investors, and allow companies to align growth with the realities of local markets. As more MENA startups scale beyond their home countries, we’re likely to see these tools used more frequently.

Wrapping Things Up…

For founders in Saudi Arabia and the broader region, the lesson is clear: not every funding story has to fit neatly into the Seed–Series A–Series B path. Sometimes, it’s about building the right bridge or extending what’s already working.

Investors, too, are becoming more open to these structures as they realize the unique challenges startups face in this region. Whether it’s a Saudi fintech waiting on central bank licensing or an Egyptian logistics startup expanding to Africa, bridge and extension rounds are proving to be valuable stopgaps that help startups stay on track.

In the end, the key is transparency. Founders should communicate clearly why they’re raising a bridge or extension, what the money will achieve, and how it sets the stage for the next big leap. Done right, these rounds are not a detour; they’re part of the journey.

Kholoud Hussein

In the high-velocity world of startups, where ideas can fade as quickly as they emerge, the early choices founders make often determine their long-term trajectory. In Saudi Arabia, those decisions now carry even greater weight. The Kingdom’s startup scene is no longer in its infancy; it is a carefully constructed ecosystem, shaped by deliberate policy, abundant early-stage capital, and an increasingly competitive talent pool.

At the heart of that ecosystem lies a question that has become pivotal for founders: Should you build your company within the slower, methodical environment of an incubator, or the intense, sprint-driven atmosphere of an accelerator?

This is not merely a matter of preference — it’s a matter of strategic fit, one that could mean the difference between scaling into a regional leader or stalling after the first funding round.

A Market in Motion

Venture capital activity in Saudi Arabia has been climbing at an unprecedented pace. The Kingdom led the MENA region in funding during the first half of 2025, securing roughly $860 million, a staggering 116% jump from the previous year. This surge has been driven by both sovereign wealth–backed initiatives and a more robust private investment landscape.

Behind the scenes, institutions like Monsha’at, the Small and Medium Enterprises General Authority, have been building the scaffolding to support this growth. Their accelerator programs, alongside other state-led initiatives, are designed to connect founders not only to funding but also to the mentorship and regulatory guidance that can make or break an early-stage venture.

As one senior official at Monsha’at said: “We are not just funding startups; we are trying to engineer a complete landscape where ventures can overcome early barriers and scale sustainably.”

Two Models, Two Mindsets

The choice between an incubator and an accelerator is not arbitrary — it’s rooted in the very DNA of how a startup plans to grow.

Incubators are the long game. They provide the time and resources to refine an idea, test a prototype, and navigate complex challenges like intellectual property filings or sector-specific regulations. For deep-tech founders in areas like AI, clean energy, or medtech, where timelines are measured in years rather than months, this slower burn can be the only viable path. The incubators linked to KAUST, for example, have been instrumental in transforming research projects into investable companies.

Accelerators, in contrast, thrive on urgency. They are built for startups that already have a minimum viable product (MVP) and are ready to push aggressively into the market. These programs compress months of networking, customer acquisition, and fundraising into an intense 3–6 month sprint. The Misk Accelerator, which has helped more than 200 startups, exemplifies this approach. Founders emerge not only with sharper business models but also with investor introductions that could take years to cultivate on their own.

One fintech founder described the experience, stating: “The mentor network and direct introductions to regulators were worth more than the seed funding itself.”

The Reality of Performance

If you look purely at early-stage momentum, accelerators seem to have the edge. MAGNiTT’s data shows a high conversion rate from accelerator graduation to seed funding in Saudi Arabia, especially in sectors like fintech and SaaS. Demo days, with their packed rooms of angel investors and VC representatives, offer unmatched visibility.

But incubators deliver a different kind of value — one that can be harder to measure in the short term. They may not produce as many pitch-ready companies in a single year, but the ones they do graduate often have stronger intellectual property, deeper product differentiation, and more strategic corporate partnerships.

Still, both models face the same systemic challenge: a scarcity of growth-stage capital. Founders often talk about the “Series B gap” — a chasm between the seed and early Series A rounds, which accelerators help secure, and the multi-million-dollar checks needed to truly scale. As one accelerator alumnus put it: “We had every investor’s attention at demo day. Twelve months later, when we needed $10 million to expand, the room was empty.”

Sector-Specific Choices

Not every industry benefits equally from each model.

In fintech and consumer applications, accelerators often provide the fastest route to market, offering regulatory coaching — especially with SAMA’s sandbox programs — and direct connections to potential enterprise clients. One fintech founder credited their accelerator with “fast-tracking conversations with two major banks,” which would have been nearly impossible without a warm introduction.

For AI, clean technology, and advanced manufacturing, incubation is often the smarter bet. These sectors require lab access, patient capital, and technical validation before commercial scaling is even possible. Healthtech startups, for example, may need years to secure regulatory approvals, making a short accelerator sprint premature.

Building the Missing Link

The truth is, the most effective ecosystems don’t force a binary choice between incubation and acceleration — they create a seamless pipeline from one to the other.

Saudi Arabia has made progress here. Monsha’at’s national programs aim to link incubation, acceleration, and funding into one continuous journey. Private programs like Flat6Labs are experimenting with follow-on funds to keep supporting graduates beyond their initial sprint.

Yet, the gap in Series B and growth-stage funding remains a pressing concern. Without institutional investors willing to write larger checks, promising startups risk plateauing just as they hit their stride. This is where policy incentives — co-investment schemes, risk guarantees, and targeted sector funds — could be game changers.

Guidance for Founders and Policymakers

For founders, the rule is simple: match the program to your stage and sector, not to its brand name. If you’re still iterating on your product, consider joining an incubator that can provide you with the time and technical expertise you need. If you’re ready to enter the market, choose an accelerator with the right network and investor connections. And always check the post-program pipeline — a strong alumni network and follow-on funding support can be just as important as the initial experience.

For policymakers, the priority should be integration. That means ensuring that incubators feed accelerators, accelerators feed growth funds, and that all of it aligns with the Kingdom’s broader industrial strategy. As one ecosystem leader put it: “A startup’s journey is not a series of disconnected steps; it’s a continuous build-up. If we break that chain, we waste both capital and talent.”

The Road Ahead

Saudi Arabia has the rare advantage of building its startup ecosystem in an era when the playbooks from Silicon Valley, Singapore, and Dubai are already written. It can borrow the best ideas and avoid the pitfalls.

The incubator–accelerator debate isn’t about which model will “win.” It’s about how each can be deployed strategically to create a balanced, high-output pipeline. Accelerators will continue to drive early visibility and investor access; incubators will remain critical for deep, defensible innovation.

If these two models are aligned — and backed by a stronger growth capital market — the Kingdom could see not just more startups, but more scale-ups that can hold their own on the global stage. 

Kholoud Hussein 

Saudi Arabia is undergoing a profound transformation in the startup ecosystem. No longer is innovation confined to Riyadh—the Kingdom’s startup landscape is branching out into a multi‑center network that includes Jeddah, Dammam, Medina, and Giga-project locales like NEOM. Supported by Vision 2030 policies, billions in venture capital, and mega‑projects serving as innovation anchors, these regional hubs are becoming dynamic launchpads for home‑grown and global entrepreneurs.

The Capital at the Core: Riyadh’s Rise as a Global Ecosystem

Riyadh has cemented itself as Saudi Arabia’s dominant startup city, climbing 60 places in just three years to rank 23rd globally in the 2025 Global Startup Ecosystem Report by Startup Genome—making it third in the MENA region. Since 2018, over $2.6 billion in VC capital has flowed into Riyadh startups, backed by government‑linked funds like SVC, Jada, and PIF. Khaled Sharbatly, Chair of the National Entrepreneurship Committee, emphasized: “We are committed to positioning Saudi Arabia as a global hub for entrepreneurship and innovation.” The capital’s infrastructure—including KAFD (King Abdullah Financial District) and Digital City—provides state-of-the-art office spaces, regulatory support, and direct access to institutional anchors like Tadawul and major corporates.

Diversification Beyond the Capital: Jeddah, Dammam, Medina in Focus

While Riyadh leads, other cities are gaining traction. According to the 2025 StartupBlink index, Jeddah entered the top 10 in the Middle East, and Dammam rose to 12th. Medina debuted in the global top‑1000 ecosystems, signalling the real spread of entrepreneurial activity.

In Jeddah, proximity to the Red Sea and ease of trade are vital assets. Startups in logistic tech, tourism, and digital health benefit from the city’s port access and cosmopolitan energy. Likewise, Dammam and the Eastern Province tie into industrial clusters in Sudair and Khobar, anchoring innovation around energy tech, cleantech, and industrial IoT.

Medina’s Knowledge Economic City (KEC), a project launched in 2006, is being repositioned as a knowledge hub supporting startups. Its partnerships with Cisco and CompTIA aim to create a tech-savvy workforce in the city. This shift illustrates how economic cities are rejuvenating local entrepreneurship beyond metropolitan centers.

Giga-projects as Startup Magnets: NEOM, Qiddiya, The Line

Perhaps the most distinctive phenomenon in Saudi’s startup geography is the role of giga-projects as living innovation labs. NEOM has pledged $500 million in partnerships through its NEOM Investment Fund to invite startups in mobility, robotics, AI, and smart infrastructure. Sultan Alasmi, CEO of the e-commerce enabler Zid, said: “Saudi Arabia’s giga-projects, especially NEOM, offer a once-in-a-lifetime opportunity for startups to develop solutions that integrate with smart city frameworks.”

The upcoming The Line, a 170‑km car-free smart city, will mandate sustainable infrastructure, autonomous transport, and AI‑driven governance—offering fertile ground for startups working in urban tech, clean energy, and IoT. Entrepreneurs in sustainable hospitality, immersive tourism, and blockchain-based booking systems are already positioning to serve these hubs.

Policy and Institutional Infrastructure Across Regions

Saudi Arabia’s national policies underpin the rise of regional startup hubs. Agencies like Monsha’at, SVC, and Jada are building an inclusive ecosystem across cities. Monsha’at’s Deputy Governor for Entrepreneurship, Saud Al‑Sabhan, noted: “The public sector’s role in creating a highly supportive business environment … is developing a landscape where the initial hardships of starting a business can be overcome.” 

Simultaneously, venture capital companies such as SVC have deployed SAR 5.2 billion into early and growth-stage startups by Q1 2024, with over 22% going to AI‑focused ventures.

Cities like Jazan are being equipped with Special Economic Zones that aim to attract $2.93 billion in foreign investments by 2040, positioning yet another hub for innovation along the Red Sea port corridor.

Sectoral Strengths in Regional Hubs

Each emerging hub is developing unique sectoral strengths:

• Riyadh dominates in fintech, cybersecurity, smart cities, digital health, and AI, hosting over 200 fintech firms.
• Jeddah thrives in e‑commerce and logistics, thanks to companies like Sary, Jahez, and Noon—each significant Riyadh success stories that have roots in the Red Sea corridor.
• Eastern Province / Dammam is aligning startup activity with industrial tech and energy transition, while Jazan SEZ targets agro, logistics, and port-enabled tech.
• Medina’s KEC is focusing on edtech and IT workforce development—intending to convert academic research into commercial ventures.

Events and Investment Platforms Fueling Local Growth

Annual flagship forums like LEAP Tech have expanded beyond Riyadh to engage startup founders citywide. LEAP 2024 hosted over 215,000 visitors, 600+ startups, and 1,600 investors, announcing up to $11.9–13.4 billion in investment commitments. Moreover, LEAP is set to expand to cities like Jeddah and Dammam, highlighting the push for geographic inclusion.

These events amplify the visibility of regional innovators and connect founders directly with capital, enterprise buyers, and tech partners.

Talent, Academia, and Regional Collaboration

Regional cities benefit increasingly from integration with academia. For example, KAUST and King Saud University are bridging R&D to market through spin-offs and incubators. Medina's KEC is doing the same via ICT partnerships with Cisco and CompTIA.

Moreover, the spread of entrepreneurship into suburban and rural areas is enhancing talent diffusion. Former corporate professionals in secondary cities are increasingly founding startups, bringing experience, maturity, and local relevance.

Regional Hubs: Challenges and Diverging Prospects

Despite the progress, regional hubs face challenges. Riyadh remains the dominant center, with access to capital, foreign investors, and customer pipelines. Cities like Jeddah or Dammam still capture smaller shares of VC flows. Diversifying regional funding and creating city-specific startup funds may be a necessary next step.

Talent gaps persist—regional universities struggle to match the output of major institutions, and specialized AI or IoT talent tends to centralize in Riyadh. Regulatory alignment across provinces is uneven, requiring coordination to make multi-city scaling smoother.

However, venture leaders see opportunity: “Startups must move fast, network aggressively, and seek partnerships with giga-project stakeholders. Neom and Qiddiya won’t wait for entrepreneurs who aren’t ready to scale.”

Looking Ahead: A Network of Real Startup Cities

Saudi Arabia is transforming from a single‑city startup ecosystem into a network of startup cities, each with its own strategic identity:

• Riyadh: Finance, AI, digital infrastructure.
• Jeddah: Port-driven logistics, tourism tech, e‑commerce.
• Dammam / Eastern Province: Industrial tech, energy, smart manufacturing.
• Medina (KEC): Edtech, ICT skill incubation, academic spin-offs.
• Giga-project zones: NEOM, The Line, Qiddiya as controlled innovation zones with global reach.
• Jazan SEZ: Export-oriented logistics and agricultural technology.

Supported by $3.8 billion in venture capital in 2024, with major support from Monsha’at, SVC, PIF, and other agencies, the ecosystem is maturing rapidly.

What was once a centralized ecosystem in Riyadh is now blossoming into a multi-node innovation engine across Saudi Arabia. As Riyadh solidifies its global ecosystem ranking, other cities like Jeddah, Dammam, Medina, and giga-project hubs are emerging as specialized innovation clusters—each offering distinct resources, sector focus, and institutional support. This distributed model not only promotes economic diversification but also aligns with Vision 2030’s ambition of a technology-driven, knowledge-based economy.

As government policies evolve, capital becomes more widespread, and startups increasingly operate beyond city borders, Saudi Arabia is crafting a future where every region is a startup city with its own narrative, potential, and global competitiveness.

Noha Gad 

The food and beverage (F&B) sector represents a key pillar in Saudi Arabia’s journey towards economic diversification and sustainable growth. This promising industry has witnessed a significant expansion with technology being a catalyst for seismic changes in the sector amid shifting market dynamics and evolving consumer demands.

A recent report by AstroLabs, the leading business expansion platform in MENA, revealed that the market value of the Saudi F&B industry reached $45 billion in 2024, presenting lucrative business opportunities across its segments and subsegments. The same report anticipated consumer spending on food services to rise by 6% annually over the next five years, while the food delivery market is projected to surge to $14.9 billion by 2028.

Technology has profoundly transformed every stage of the food value chain, from using advanced agricultural technologies that enhance farming and enable controlled environment agriculture, to shaping how food is accessed, prepared, and enjoyed. Integrating IoT and blockchain also enhanced supply chain transparency, food safety, and traceability, building greater consumer trust and reducing inefficiencies throughout the sector.

This synergy between tradition and modernity not only preserves Saudi Arabia’s culinary heritage but also ensures that technology remains at the heart of future growth, delivering resilient, sustainable, and world-class food systems for generations to come.

Another report by the global business consulting firm, Grand View Research, unveiled that the food technology (foodtech) market in Saudi Arabia is expected to reach $10.2 million by 2030, marking a compound annual growth rate (CAGR) of 10.5%.

Additionally, the latest report by the Saudi Central Bank (SAMA) highlighted that the point-of-sale (PoS) sales in the F&B sector surpassed SAR 165.7 billion during the second quarter (Q2) of 2025, backed by a humble increase in the number of transactions, which reached over 2.7 billion.

Critical things to consider for establishing a strong presence in the Saudi F&B sector

• Testing the market first and prioritizing omnichannel retail. Companies that aspire to expand into Saudi Arabia must test their products in the market before making large investments. Also, omnichannel retail involving online and offline sales has become an important mainstay in the Saudi retail sector, while the growth of younger consumers has resulted in a shift from traditional trade to modern trade. 
• Obtaining Halal certifications and forging partnerships with local players. Halal certification is necessary for food brands to gain a foothold in this market. They need to ensure compliance with Saudi Food and Drug Authority (SFDA) regulations.
• Utilizing logistics and temperature-controlled delivery hubs to ensure products remain fresh.

The Saudi foodtech landscape is bustling with innovations and investment, with several startups leading the charge, notably Nana, the dark store grocery delivery startup and a key player in the digital shopping solutions sector; Foodics, the leading cloud-based technology and payments platform for restaurants; iyris, the innovative agriclimate tech company specializing in advancing commercial farming; Mr. Mandoob, a state-of-the-art delivery platform that connects consumers with various dark stores, and more. 

Key innovations that transform the F&B sector in Saudi Arabia 

Cloud Kitchens 

The cloud kitchen business is transforming the food service industry in Saudi Arabia, providing a unique blend of convenience and innovation to meet the evolving demands of consumers. Cloud kitchens, or virtual kitchens, operate exclusively for delivery orders without dine-in options, offering a cost-effective alternative to traditional restaurants. This model allows food entrepreneurs and established restaurant chains to launch multiple brands from a single kitchen space.

The boom in the cloud kitchen industry was driven by high demand for delivery services, notably during the COVID-19 pandemic, lower operational costs, flexible operations, and the emergence of e-commerce and delivery platforms, such as Jahez, HungerStation, and Talabat.

According to a survey conducted by Qoot, a subsidiary of management consulting firm Mukatafa, 44% of respondents believe that cloud kitchen businesses have lower operational costs than a normal restaurant. However, 56% said they saw fewer sales than a normal restaurant business, with only 17% reporting more sales.

The cloud kitchen market in Saudi Arabia is expected to hit $335.7 million by 2030, growing at a CAGR of 7.7% from 2021 to 2030, as stated by Al Taasis, a leading business incorporation and on-the-ground corporate solutions specialist.

Over the next five years, Saudi Arabia is anticipated to become one of the leading markets for cloud kitchens in the region, backed by urbanization, government support for entrepreneurship, and a growing appetite for digital services.

Establishing a cloud kitchen business offers various advantages, including the flexibility in menu changes, reduced financial burden, operational efficiency, and direct access to customer insights.

Subscription Meal Services

The subscription meal services industry in Saudi Arabia is gaining momentum as consumers increasingly seek convenient, healthy, and personalized dining options. This service offers customers the ability to subscribe to meal plans that deliver ready-to-eat or easy-to-prepare meals regularly, catering to varying dietary needs and preferences. 

The rising awareness of nutrition and wellness, urban lifestyles that limit time for cooking, and the integration of digital platforms that enhance user experience have accelerated the growth of subscription meal services in the Kingdom.

The ‘KSA Subscription-based Meals Market Research’ report, published by MarkNtel, stated that the subscription-based meals market in Saudi Arabia reached $254 million in 2024, and is expected to hit $383.5 million by 2030, with a CAGR of around 7.11% during 2025-2030.

Figures released by the global data and business intelligence platform, Statista, revealed that revenue in the Saudi meal delivery market is projected to surpass $10 billion in 2025 to reach $11.7 billion by 2030.

Calo is one of the key players that revolutionizes personalized meal subscriptions in Saudi Arabia. In 2024, it delivered 10 million meals across the GCC, reinforcing growing demand for data-driven, personalized nutrition.  

Other Saudi subscription meals platforms, such as Freshhouse, Right Bite, and Dailymealz, allow users to update their meal plans, pause or skip deliveries, and provide feedback, creating a highly user-centric experience. They provide consumers flexibility in meal selections, customizable menus, and streamlined delivery schedules, making it easier for them to maintain consistent healthy eating habits.  

AI-Powered Food Applications

Technology is a game-changer in the online food delivery market in Saudi Arabia. Platforms invest heavily in new tools that make things easier for users and run their operations better. They also utilize artificial intelligence (AI) and data to tailor their services, predict consumer preferences, and find the best routes for delivery. A recent report published by IMARC Group stated that the online food delivery market in Saudi Arabia is expected to record $5.71 billion by 2033, marking a CAGR of 13.6 during 2025-2033.

The AI-powered food applications in Saudi Arabia operate within a rapidly growing multi-billion-dollar online food delivery market, backed by high-tech infrastructure, a high internet penetration rate (99%), a large base of digital consumers, and heavy use of AI for personalization, logistics, and operational efficiency

Finally, the emergence of a digital food landscape has created opportunities for new delivery systems. The ongoing digitization of the food delivery space reflects a dynamic scene with potential shifts and increased business activities, contributing to the development of the Saudi tech sector and the realization of Vision 2030’s objective of localizing 85% of its food industry by 2030. 

Ghada Ismail

CellSave Arabia is a leading provider of advanced stem cell preservation services in the Gulf region, offering families the opportunity to safeguard their future health through secure, high-quality cord blood and tissue banking. Known for its cutting-edge proprietary technology, internationally accredited standards, and patient-centered care model, CellSave Arabia has built a reputation for excellence in regenerative medicine. The company’s mission is rooted in making stem cell preservation accessible, reliable, and scientifically robust, empowering families with potentially life-saving options for generations to come.

In this exclusive interview, Sarah Al-Hajali, CEO of CellSave Arabia, discusses the company’s pioneering journey, its upcoming expansion into Saudi Arabia, and how the company is aligning with Vision 2030 to make stem cell preservation more accessible to Saudi families. She also opens up about navigating cultural sensitivities, forging research partnerships, and how AI is shaping the future of stem cell logistics in the region.

CellSave Arabia was the first private stem cell lab in the GCC back in 2005. What were the earliest challenges you faced pioneering this space, and how did you build trust in such a novel field?

CellSave Arabia was established in 2005 as the first and largest private stem cell laboratory in the GCC. At the time, stem cell preservation was a new and unfamiliar concept in the region, and we faced several key challenges in introducing it.

One major challenge was raising awareness among both healthcare professionals and the public. Many expecting parents had never heard of cord blood and tissue banking and were uncertain about its benefits, safety, and scientific validity. Educating families—especially mothers—about how stem cells could potentially treat conditions like cancer or autoimmune diseases required dedicated outreach and communication. Also, there was a common misconception that it was too expensive. 

At CellSave, our goal has always been to make this valuable service accessible to everyone. That’s why we introduced flexible payment plans to make it more affordable for all families.

As pioneers in the field, establishing credibility was critical. With no regional benchmarks to follow, we set high standards from the start, investing in international accreditations such as AABB and FDA accreditations, world-class facilities, and clinical partnerships. This, combined with transparent communication and strong collaboration with hospitals and OBGYNs, helped us earn the trust of families across the region.

Our journey has always been guided by a commitment to care, quality, and ethical responsibility, which remain at the heart of everything we do.

In 2015, we launched My Pregnancy Arabia, a non-profit initiative supporting pregnant women through education and community building. What started in the UAE has now expanded regionally, with our first successful event in Qatar held in April 2025, marking a new chapter in our mission to empower and support women throughout their pregnancy journey. Additionally, we’re excited to be expanding into Saudi Arabia soon. As part of this growth, we’ll be organizing educational events aimed at raising awareness about the benefits of stem cell banking. These events will help inform both healthcare professionals and expecting parents about the science, process, and long-term value of cord blood and tissue preservation.

Saudi Arabia is undergoing rapid healthcare transformation under Vision 2030. What makes the Kingdom a strategic priority for CellSave Arabia’s next phase of expansion?

Saudi Arabia’s healthcare transformation under Vision 2030 presents a tremendous opportunity for innovation, investment, and improved patient care. For CellSave Arabia, the Kingdom is a natural and strategic priority for our next phase of expansion.

The government’s commitment to enhancing healthcare infrastructure, embracing advanced medical technologies, and prioritizing preventive care aligns perfectly with our mission to offer life-saving, future-oriented solutions like stem cell preservation. As awareness continues to grow among healthcare professionals and families, and with an increasing focus on high-quality maternal and pediatric care, the Kingdom presents a strong opportunity and readiness for the services we provide.

Moreover, Vision 2030 emphasizes not only excellence in care but also health equity and accessibility, and that is at the heart of our next step. As we expand into Saudi Arabia, our goal is to make stem cell preservation more accessible to all families, especially those with medical histories that include conditions like cardiovascular disease, diabetes, and other inherited or chronic health concerns. We are working on expanding our footprint beyond major cities, partnering with both public and private healthcare institutions, and tailoring our offerings to meet the unique needs of Saudi families.

In short, Saudi Arabia offers the perfect environment for growth, innovation, and meaningful impact—values that have always defined CellSave Arabia’s journey.

As a GCC-based company, how do local cultural, regulatory, or healthcare dynamics influence your operations compared to global peers?

Culturally, there's a strong emphasis on family, trust, and religious values, which means we must approach awareness and education with sensitivity and respect. Many families initially had concerns about whether cord blood banking might conflict with their beliefs. Through open dialogue with scholars, we’ve clarified that the practice is not only legal but also aligned with their ethics, as it involves preserving cells from the umbilical cord—something that would otherwise be discarded—and can potentially save lives in the future. This understanding has been essential in building trust and making families feel confident and comfortable with their decision. At CellSave Arabia, we’ve taken great care to ensure our services are fully in line with cultural and religious principles, and we continue to work closely with both the medical and community sectors to educate, build trust, and provide reassurance to the families we serve.

As part of our commitment to supporting families, CellSave also offers a transplant assistance cash-back service of around SAR 15,000 if the stored cord blood is released for therapy within the first five years. This added support reflects our mission to not only preserve potential but also to stand by our clients during critical moments, reinforcing the long-term value and impact of stem cell banking.

On the regulatory side, we must comply with strict local healthcare laws and licensing requirements, which can vary from country to country within the GCC. This requires close collaboration with health authorities to ensure our processes meet all standards—especially in areas like data privacy, biological material handling, and clinical safety.

Additionally, the healthcare landscape in the GCC is unique, with a strong mix of public and private sector involvement, and a growing focus on preventive care and medical innovation. This dynamic environment allows us to work closely with both government and private hospitals, tailoring our services to meet local needs while still maintaining international standards.

Are you currently working with, or planning to partner with, any Saudi hospitals, universities, or health institutions to expand stem cell services or research efforts?

Yes, we are currently working on expanding our presence into Saudi Arabia and actively exploring partnerships with leading hospitals, universities, and healthcare institutions across the Kingdom. Our goal is to bring world-class stem cell preservation services closer to Saudi families, while also contributing to the country’s broader goals for healthcare innovation under Vision 2030.

We are in discussions with several public and private sector hospitals to integrate our services into their maternity and pediatric care offerings. At the same time, we’re looking to collaborate with universities and research centers to support stem cell research, clinical applications, and medical education in this field.

These partnerships will play a key role in ensuring that stem cell services are not only available, but also trusted, regulated, and aligned with the local medical and ethical landscape. Our expansion into Saudi Arabia is not just about business growth—it's about contributing meaningfully to a healthier future for families across the Kingdom.

How is CellSave Arabia currently using AI in its operations, from logistics and lab automation to quality assurance, especially as it scales in Saudi Arabia?

As we prepare to expand into new markets like Saudi Arabia, we are focused on adopting technologies that can help optimize operations, improve accuracy, and support scalability.

Currently, AI is being utilized in several valuable ways within our operations. For example, an AI-driven monitoring system is used in the lab to assess sample quality inside cryo dewars. This system continuously checks key markers and provides alerts and recommended actions if any values fall outside the acceptable range.

Also, AI plays a critical role in evaluating the condition of the sample upon receiving it. It verifies all essential metrics to ensure the sample has been transported under optimal conditions. If any of these criteria are not met, automated notifications are immediately sent to both the lab and the parents to prompt timely action.

AI offers exciting potential in enhancing sample tracking, environmental monitoring, and data-driven decision-making—all critical elements in stem cell preservation. We also see opportunities in using AI to support personalized client communication and operational efficiency, allowing us to deliver even more reliable and responsive services.

As innovation continues to shape the future of healthcare in the region, our goal is to remain at the forefront by thoughtfully integrating the right technologies to support our mission of safety, trust, and long-term value for families.

As Saudi consumers become more digitally engaged and expect healthcare experiences that are fast, convenient, and tech-enabled, how is CellSave Arabia evolving its service model to meet these rising expectations?

At CellSave Arabia, we understand that today’s families value speed, convenience, and clarity—especially when making important decisions like stem cell preservation.

We have digital tools and systems in place that allow us to respond to client inquiries more efficiently, provide quicker consultations, and offer real-time guidance throughout the enrollment and collection process. CellSave Arabia utilizes AI agents that can respond to expectant families 24/7 without the need for human interaction—handling everything from education to clients’ requests for documentation or sample health checks. Because each family has unique needs, these AI agents can also recommend the best services tailored to individual circumstances by referring to patients’ medical histories and other relevant information.

Our goal is to ensure that every interaction—whether online or in person—is simple, informative, and timely, in line with the modern expectations of Saudi families and the Kingdom’s broader vision for digital health transformation.

Does CellSave Arabia see Saudi Arabia as a future R&D hub for stem cell therapies, particularly given the government's investment in biotech and innovation?

With the Kingdom’s strong commitment to biotechnology and innovation, Saudi Arabia is well positioned to become a center of excellence for research and development in stem cell therapies. At CellSave Arabia, we are actively exploring strategic partnerships with universities, hospitals, and biotech organizations to contribute to this growing scientific ecosystem. These collaborations enable us to support advancements in regenerative medicine. For instance, in osteoarthritis, they can aid in repairing damaged cartilage and alleviating joint pain, while in ovarian rejuvenation, they provide new hope for restoring fertility and hormonal health. Additionally, stem cells are being investigated for their potential to regenerate heart tissue after cardiac injury, support recovery from neurodegenerative diseases like Parkinson’s and Alzheimer’s, and improve immune system function. Their ability to promote healing and restore damaged tissues also holds promise for enhancing overall health and wellbeing, paving the way for more personalized and effective medical treatments.

These advances directly support Saudi Arabia’s Vision 2030 goal to raise the average life expectancy to 80 years by 2030. By integrating cutting-edge regenerative treatments into healthcare strategies, we can contribute to extending healthy, active years of life, improving quality of life for the population, and reducing the burden of age-related diseases.

Kholoud Hussein 

Choosing a venture capital (VC) investor is not merely a funding decision; it is one of the most strategic partnerships a startup founder will make. While securing capital is often the immediate goal, aligning with the right investor can significantly influence a company’s trajectory, from operational decisions and market expansion to talent acquisition and even eventual exit strategies. In an increasingly competitive and sophisticated entrepreneurial landscape, founders must approach the VC selection process with the same diligence and intentionality they would use when hiring a C-level executive or co-founder.

The first consideration goes beyond capital—it's about value-added support. The best venture capitalists bring more than just a checkbook; they offer access to networks, mentorship, and strategic guidance. For early-stage startups, this often means introductions to potential clients, top-tier talent, or future investors. For growth-stage companies, it may involve international expansion strategies, mergers and acquisitions support, or crisis management expertise. A founder must assess what type of value their business truly needs at its current stage, and seek investors whose portfolio history and operational involvement align with those needs.

Equally important is the sector focus and domain expertise of the VC. Investors who have a track record in the startup industry are more likely to understand its nuances, regulatory landscape, and customer behaviors. They can anticipate market shifts and offer insight drawn from past successes and failures. A fintech founder, for example, will benefit more from a VC that has navigated banking integrations and compliance hurdles than from a generalist fund with no financial sector exposure. It's not just about the money—it’s about smart money.

The chemistry and alignment between the founder and investor also play a pivotal role. This relationship will inevitably be tested during periods of rapid growth or unexpected downturns. Founders must be comfortable with their investors’ communication style, level of involvement, and strategic vision. A misaligned investor could push for premature scaling or unrealistic return timelines, leading to unnecessary strain. Honest conversations about expectations, governance, and decision-making frameworks must occur early in the courting process. Due diligence is a two-way street: just as investors investigate the startup’s viability, founders must vet investors for alignment and long-term compatibility.

Another often overlooked factor is the reputation and signaling power of the VC. In markets where access to capital is still consolidating—such as emerging economies or sectors with nascent venture activity—the involvement of a respected investor can significantly elevate a startup’s credibility. This "signaling effect" can attract top talent, future investors, and strategic partners. However, founders should not be blinded by brand names alone. A highly reputable VC may also have competing priorities or an overly hands-off approach. The key is finding a balance between prestige and partnership.

Lastly, founders should consider the fund size, stage focus, and time horizon of the investor. A large fund with a wide portfolio may allocate a limited amount of time to each investment, while a smaller, more focused fund might offer more attention but fewer follow-on funding opportunities. Likewise, a fund nearing the end of its life cycle may push for quicker exits, which may not align with the founder’s long-term vision.

In conclusion, selecting a venture capital investor is as much about strategic fit as it is about financial capacity. The right investor becomes a partner in building, scaling, and navigating complexity, rather than just a source of capital. Founders who approach this decision thoughtfully are better positioned to secure not only funding but also the foundations of lasting success.

Kholoud Hussein 

Under Vision 2030, Saudi Arabia has embarked on a sweeping economic transformation drive. Since 2017, the kingdom’s non‑oil economy has grown consistently at 4–5% annually, a testament to accelerating diversification. The Public Investment Fund (PIF), valued at $950 billion, is now directing a significant slice—approximately $251 billion by end‑2023—toward domestic startups across sectors such as healthcare, logistics, technology, and public services.

PIF executives emphasize that supporting growing local ventures—aka “local bets”—is central to achieving economic resilience and job creation goals. As one leader noted: “The tailwinds are much stronger than the headwinds” when it comes to diversifying beyond oil.

This economic backdrop sets the stage for what analysts call the “Founder’s Economy”: startups founded to solve persistent public problems in Saudi Arabia—inefficiencies in waste management, transportation, healthcare access, climate resilience, and more—with bold, tech‑driven solutions.

Climate & Environment: Innovating Sustainability

Saudi Arabia accounted for 94% of climate‑tech funding in the GCC between 2018 and 2023—roughly $439 million, according to PwC Middle East. Startups are now tackling environmental issues head‑on:

• Mirai Solar: Offers modular, deployable photovoltaic shading systems to reduce energy waste and support agriculture and logistics efficiency. These solutions help lower carbon intensity in urban environments.
• Plastus: Converts agricultural waste into biodegradable plastics, advancing circular economy goals in food and logistics packaging.
• Sadeem: Built IoT‑powered flood monitoring systems in Riyadh and Jeddah, enabling municipalities to act preemptively—mitigating public safety risks and reducing infrastructure damage.

These ventures reflect a deeper shift: climate-intent embedded in business models, rather than sustainability as an add-on, often rooted in technical talent incubated by KAUST, KAPSARC, or global exposure.

Public Logistics & Urban Services

Saudi cities face chronic mobility and infrastructure needs—areas now being addressed by private innovation:

• Mrsool: Originally a peer-to-peer delivery app, now serves urban logistics and courier needs in Riyadh, Jeddah, and other cities. With over 10 million registered users and 200,000 couriers, it has transformed last-mile logistics and supported initiatives like Ramadan food deliveries for the underprivileged.
• Reachware: An Automation and systems integration startup, founded in 2021, helps government and hospitality platforms connect scheduling and payment systems. It raised $3 million in 2024, earned awards for being the best iPaaS provider in Saudi Arabia and the region, and plays a growing role in urban digitization.
• Smart waste management for Makkah: A research-backed system—TUHR—uses ultrasonic sensors and AI to monitor container levels during Hajj and Umrah, triggering real-time collection and reducing public health risks and fuel consumption.

These innovations illustrate how start-ups are building infrastructure that historically would be delivered by public or municipal authorities.

Fintech & SME Financing

One persistent public-sector challenge in Saudi Arabia is SME financing. SMEs account for only ~9% of total bank lending in 2024—short of the Vision 2030 goal of 20%. Startups are stepping into that void:

• Erad: A Shariah-compliant SME finance platform raised $16 million in early 2024, offering loans in as little as 48 hours. Sixty percent of its clients are first-time borrowers, and it has processed over SR 100 million in funding requests and SR 2 billion in applications.

On the payments and commerce side:

• Lean Technologies: Powers fintech innovation by offering secure bank data APIs to integrate payments, investments, and budgeting across the region. With over $33 million raised, Lean is foundational to modernizing financial services.
• Moyasar: A payment gateway co-founded in 2015, which raised $20.8 million in 2024, simplifies digital transactions for SMEs and e-commerce, thereby boosting the uptake of electronic payments nationwide. 
• Tamara: Buy‑now‑pay‑later fintech is popular across the Kingdom, managing high demand for digital credit services. Its model reduces friction in purchasing and supports consumer financing needs. 

These fintech ventures are helping solve access and inclusion issues that traditional banking systems struggle to meet, particularly for underserved small businesses.

Health, Edtech & Social Inclusion

Saudi startups are increasingly focusing on healthcare access, social inclusion, and human capital development.

• NoorDx: Founded within KAUST’s innovation cluster in late 2021, this medtech venture offers genetic testing locally—addressing that 90% of Saudi genetic tests were processed abroad before NoorDx launched. Its mission: “By Saudis, in Saudi, for Saudi”.
• BrightSign smart glove: Enables real-time translation of sign language into text or speech—empowering communication for the deaf or speech-impaired, especially in public institutions such as hospitals and schools. Developed with joint university partnerships, the glove exemplifies mission-driven inclusion tech.
• iStoria: An edtech startup that secured $1.3 million in seed funding, focuses on English language learning to widen educational access and upskill youth—backed by Flat6Labs, Classera, and Nama Ventures. 

Collectively, these ventures tackle public goods: healthcare decentralization, disability inclusion, and skills development.

Deep Tech, Space & Infrastructure

Saudi Arabia is not just solving old problems—it’s building future capacity.

• Neo Space Group: Launched in 2024 by PIF, it focuses on satellite communications, remote sensing, IoT, and data infrastructure. Projects like SARsatX and Orbit Arabia support agriculture, urban monitoring, and geopolitical data services. 
• Lucidya: Saudi’s leading AI-powered customer analytics and social listening platform—impacting public sector channels, emergency response, and brand‑government communication. Raised $6 million Series A in 2022, pioneered Arabic NLP, and introduced a four‑day workweek in 2024. 
• Alat: A PIF‑founded hardware‑tech conglomerate launched in early 2024, planning operations across seven sectors—semiconductors, smart health, infrastructure, and smart cities. Alat aims to generate $9.3 billion GDP impact and create 39,000 jobs by 2030.

These ventures operate at the intersection of national infrastructure goals and entrepreneurial execution.

Scale, Investment & Broader Ecosystem

The true measure of a startup ecosystem lies not in the number of companies launched but in how many survive, scale, and influence their sectors at large. In Saudi Arabia, the shift from quantity to quality is beginning to take root. The focus is no longer solely on cultivating entrepreneurial activity, but rather on nurturing ventures with the potential to become national or even regional champions. Scaling, however, is not a simple next step—it’s a complex leap that requires mature capital markets, strategic infrastructure, sophisticated talent, and policy alignment.

Over the past few years, Saudi Arabia has seen a surge in investment activity. According to Magnitt’s 2024 Mid-Year Saudi Arabia Venture Investment Report, the Kingdom attracted the highest VC funding in the MENA region, securing nearly 42% of the region’s total disclosed deals in the first half of the year. This momentum is a testament to strong government support mechanisms, such as the Public Investment Fund’s (PIF) backing of venture platforms like Sanabil Investments and Jada Fund of Funds. However, much of this investment is still concentrated in early-stage rounds. As startups transition to scale, the capital landscape becomes thinner. The need for growth-stage funds—particularly those that can write larger Series B or Series C checks—is growing critical.

Investors themselves often highlight a key tension: the mismatch between startup ambitions and investor risk appetite. While many founders are thinking regionally or globally, institutional investors still lean conservative, seeking traction and profitability before participating in later rounds. This has pushed some high-potential startups to seek international funding, which can dilute local influence and, in some cases, lead to headquarters being relocated abroad. To counter this, Saudi Arabia must work on incentivizing both domestic and foreign institutional investors to participate more actively in growth rounds. This could involve co-investment models, sovereign-backed risk guarantees, or the establishment of sector-specific megafunds—particularly in areas of national importance like: healthtech, agritech, and climate innovation.

Infrastructure is also a critical enabler of scale, and here Saudi Arabia is making strategic bets. Initiatives like NEOM’s Oxagon and King Salman Energy Park (SPARK) are not just megaprojects—they are designed to function as innovation zones with built-in startup ecosystems. These hubs offer integrated logistics, regulatory flexibility, and proximity to both public and private customers. However, they remain in early stages, and their success in supporting startup scale will depend on how well they connect with the broader entrepreneurial landscape, particularly in cities like Riyadh, Jeddah, and Dammam, where most startups are currently concentrated.

Corporate engagement is an emerging force that could transform the scaling landscape. Increasingly, large Saudi companies are partnering with startups through open innovation models, procurement programs, and Corporate Venture Capital (CVC) arms. Companies like STC, Aramco, and SABIC are beginning to see startups not as vendors but as innovation partners. Aramco’s Wa’ed Ventures, for instance, has become a critical backer of industrial and deep-tech startups with national relevance. However, this engagement needs to go deeper and wider, especially in sectors like construction tech, water sustainability, and education, where legacy systems are ripe for disruption.

Ultimately, scale requires an enabling culture as much as it does capital or partnerships. Many Saudi founders face a psychological and operational ceiling once they reach product-market fit. Moving beyond that point—into new markets, larger teams, and global customer bases—requires more than ambition. It demands access to experienced leadership, second-time founders, strategic advisors, and export support mechanisms. Programs that connect Saudi startups with global mentors, or that embed them in international tech hubs for 3 to 6 months, could provide the bridge from domestic success to regional or global scale.

In this broader context, Saudi Arabia’s startup ecosystem is at a crossroads. It has succeeded in inspiring a generation of builders, many of whom are creating tangible solutions to long-standing national challenges. The next chapter is about anchoring those successes into sustainable, high-impact businesses that can scale without losing their public relevance or local identity. With focused investment in growth-stage capital, integrated innovation zones, corporate collaboration, and global exposure, the Kingdom can transform its startups from promising experiments into enduring engines of economic diversification and national resilience.

Founder Voices & Cultural Impact

Many of the startup founders speak of a broader mission:

• A climate-tech founder emphasized the venture’s explicit commitment to environmental outcomes, not just profit.
• A Reachware executive noted partnerships with platforms like PayMob and Wadak reflect how governance tech can elevate public services.
• Mrsool’s leadership emphasizes the company’s role in supporting charitable logistics for Ramadan, connecting delivery infrastructure to civic outcomes. 

Challenges & Future Outlook

Despite the rapid growth of Saudi Arabia’s startup ecosystem and its visible impact on public problem-solving, a number of structural challenges remain that could slow or limit its full potential. These obstacles are not just operational hiccups; they touch on regulation, access to capital, talent, and the broader cultural mindset around entrepreneurship. Addressing these challenges will be essential as the Kingdom moves from a startup-friendly environment to a truly startup-powered economy.

One of the most pressing issues faced by many startups—particularly those working in specialized or regulated sectors—is regulatory fragmentation. Although recent reforms and platforms like MISA and the SAMA regulatory sandbox have made market entry easier, sector-specific ventures still struggle with overlapping authorities and inconsistent licensing procedures. A healthtech startup, for example, may need to navigate approvals from the Ministry of Health, the Saudi Food and Drug Authority, and local municipalities—each with its own requirements and timelines. Similarly, smart mobility or infrastructure startups often find themselves stalled by siloed bureaucracies, where innovation is welcomed in principle but delayed in practice. As one Riyadh-based founder noted, “Getting an experimental license is one thing, but scaling across multiple cities still depends on siloed approvals. We need more unified, national regulatory sandboxes—not just one-offs.”

Access to capital is another persistent hurdle, particularly in the growth and late stages. While early-stage funding has seen impressive momentum—over $400 million in VC deals were closed in the first half of 2024 alone—most of this capital is concentrated in seed and Series A rounds. When startups are ready to scale, especially those in capital-intensive sectors like climate tech, deep tech, and advanced manufacturing, they often hit what founders describe as the "Series B ceiling." Larger investment rounds require global investor networks and specialist funds that are still underdeveloped in the Saudi ecosystem. This funding gap is especially stark for female founders, who often report disproportionately lower access to later-stage capital despite solid traction. A recent study by Agnes AI in 2024 found that nearly 78% of female founders in Saudi Arabia believe they are underfunded compared to their male counterparts, particularly in science, health, and AI-driven ventures.

The issue of talent is also central to the Kingdom’s startup evolution. 

While universities are producing more STEM graduates and the government is investing in tech education, many startups still face difficulty in hiring experienced software engineers, data scientists, and senior executives who can take ventures from early product-market fit to full-scale commercialization. Startups often rely on imported talent, which can be expensive and administratively complex due to visa restrictions and integration issues. Even when local talent is available, retaining it is increasingly competitive as global tech companies open regional offices and attract top Saudi professionals with higher salaries and global exposure. There is a clear need to build sector-specific talent pipelines and stronger bridges between universities, technical institutes, and the private sector. Incentivizing members of the Saudi diaspora to return and contribute to local innovation could also be part of a long-term solution.

Another underappreciated challenge lies in geographic concentration. Riyadh has become the epicenter of startup activity, with Jeddah and Dhahran following behind. However, many of the public problems these startups are trying to solve—such as gaps in healthcare access, education, or transportation—are most severe in rural or underserved regions. Expanding to these areas is more difficult due to infrastructure gaps, lower digital literacy, and fragmented local governance. Founders looking to grow beyond the urban core face both logistical and financial hurdles. Without public co-investment or incentives for regional expansion, many startups may be forced to remain city-centric—limiting their national impact and contributing to uneven development.

Cultural attitudes also continue to evolve. While the entrepreneurship culture in Saudi Arabia has matured significantly in recent years, especially among youth, the transition from stable public-sector employment to startup risk-taking is still ongoing. For many Saudis, founding or joining a startup is not yet viewed as a long-term career path but rather as a stepping stone. Encouraging a deeper, more sustained founder mindset will require more than just government programs; it demands success stories, mentorship, and visible proof that startups can deliver security, purpose, and growth—not just risk. Entrepreneurship must become a first-choice path, not a last resort or temporary ambition.

Looking ahead, Saudi Arabia’s startup ecosystem must evolve from an early-stage success story into a scalable, resilient engine of national development. This will involve regulatory harmonization, broader capital diversity—including more late-stage and impact-driven funds—and robust local talent strategies. Infrastructure must also be developed to support scaling beyond major cities, ensuring that innovation reaches all corners of the Kingdom. Public-private collaboration will be key, treating startups not merely as business ventures but as strategic partners in solving complex societal issues.

The momentum is real. Saudi startups are already helping transform how the country tackles healthcare, logistics, environmental sustainability, and financial inclusion. But to fully realize the vision of the “Founder’s Economy,” the Kingdom must continue building the systems, culture, and capital flows that empower its most daring innovators to thrive—not just in Riyadh, but nationwide, and not just at launch, but at scale.

Finally, the Saudi Founder’s Economy is doing more than launching unicorns—it’s solving public-sector problems through private innovation. From flood‑detecting sensors to logistics networks, from SME financing to climate-smart infrastructure, Saudi startups are delivering tangible public value.

Supported by government reforms, PIF investment, and institutional backing, these ventures reflect a transition in public problem-solving: from central planning to founder-led agility and accountability.

As Vision 2030 enters its final phase, the ability of startups to tackle education, health, environment, transport, and infrastructure will shape both public outcomes and the Kingdom’s economic trajectory. In short, entrepreneurs are now as central to public service delivery as they are to private sector growth—and that is the real meaning of the Founder’s Economy.

Noha Gad

The transformative agenda of the Saudi Vision 2030 placed increasing real estate ownership at the core of its economic diversification and social development goals. It targets raising the homeownership rate among Saudis to more than 70% by 2030. Beyond domestic ownership, this ambitious initiative introduced pioneering reforms to open the real estate market to foreign investors, notably the Real Estate Owner Residency, which allows foreigners to own or usufruct residential real estate assets with a minimum of SAR 4 million within the Kingdom.

The Saudi cabinet recently approved the foreign property ownership law, permitting non-Saudis to own property in Riyadh and Jeddah, while ownership in Mecca and Medina will be subject to additional regulatory conditions due to their religious status. The Real Estate General Authority (REGA) is expected to define the geographical boundaries and publish the implementing regulations within 180 days.

Scheduled to enter into effect early 2026, the new law is expected to pave the way for new investment opportunities and anticipated deals within the real estate and property technology (proptech) sectors.

According to the Minister of Municipal and Rural Affairs, Majed Al-Hogail, the new law is designed to enhance the real estate sector and attract foreign direct investments (FDI) to bolster housing supply across the Kingdom.

Aligned perfectly with the Premium Residency Program (Iqama) and the existing regulations governing real estate ownership by GCC citizens, the new law is anticipated to create a coherent and integrated framework for foreign investment in the Saudi real estate sector, facilitating cross-border property ownership and residency benefits.

Experts predict the new law to allow non-resident foreigners to purchase property outright with lower investment thresholds and without the need for local sponsors, ultimately attracting different investors and buyer segments to the market and stimulating demand in the residential sector.

Alaa Aljarousha, Senior Manager for Research in Saudi Arabia at CBRE MENA, the world’s leading full-service real estate services and investment organization, stated in an interview with Alarabiya Business that the new law will contribute to increasing FDIs and enhancing supply in the real estate market in general.

She affirmed that enabling foreign residents and non-residents to own property in major cities like Jeddah and Riyadh will lead to an upward growth in property value.

Implications of the new foreign real estate ownership law on key sectors  

This new law is projected to have significant implications on key Saudi sectors, including tourism, proptech, construction and urban development, financial services, and investment, as well as legal and professional services.

Allowing foreigners to own property in major Saudi cities will attract global developers and investors to build hotels, resorts, and mixed-use development projects, thereby enhancing the tourism infrastructure in the Kingdom. Also, the clear ownership rights for foreigners can increase confidence among global tourists and investors, encouraging longer stays and investment in tourism-related real estate.

The new law is also anticipated to drive adoption of proptech solutions such as blockchain-based title registries, digital platforms for property listings, and virtual tours. According to the National Technology Development Program (NTDP), leveraging advanced tech solutions in the building and construction sector could reduce mistakes by 35%, eliminate travel costs by up to 75%, and increase data transparency and accuracy by 80%. For instance, Saudi proptech platforms, such as WakeCap, WhiteHelmet, and Rize, play an instrumental role in bolstering the real estate and construction sectors in Saudi Arabia by offering smart construction site management technologies. 

Additionally, the construction and urban development sector is expected to witness a surge in demand for new residential, commercial, and mixed-use projects in Riyadh and Jeddah, driving growth in construction activity and infrastructure development to support expanding urban areas.

The new foreign real estate ownership law is also expected to contribute to maximizing FDIs and stimulating banking, mortgage financing, insurance, and investment management sectors.

Overall, the new foreign real estate ownership law is not an isolated change but a key component of a comprehensive policy framework. It harmonizes with existing residency regulations and GCC ownership initiatives to promote foreign investment, improve market accessibility, and advance Saudi Arabia’s economic diversification and urban growth goals. This coordinated approach ensures regulatory consistency, amplifying the law’s effectiveness in drawing a broad range of foreign investors while protecting the nation’s interests. 

Kholoud Hussein

In recent years, Saudi Arabia has witnessed a remarkable increase in the visibility of women-led startups. From tech-driven platforms to homegrown fashion brands, female entrepreneurs are gaining traction in the Kingdom’s evolving business landscape. But as the spotlight intensifies—especially under the broad banner of Vision 2030—a critical question emerges: Are women-led startups in Saudi Arabia a quiet revolution reshaping the economy, or are they part of a carefully curated PR narrative aimed at polishing the Kingdom’s global image?

The answer lies somewhere in between. While genuine structural reforms and individual success stories signal meaningful progress, the overwhelming emphasis on optics and international perception also plays a prominent role.

Legal and Policy Shifts Enabling Women Entrepreneurs

Before the launch of Vision 2030 in 2016, the economic participation of Saudi women faced substantial structural and societal barriers. Business ownership required male guardian approval, mobility was severely restricted, and access to funding and banking services was minimal. Many women operated informally from home, often limited to traditionally “feminine” sectors like tailoring, catering, and private tutoring.

The narrative began shifting dramatically with Crown Prince Mohammed bin Salman’s ambitious reform agenda. Vision 2030 placed women’s economic empowerment at the center of national transformation, not just for gender parity but as an economic imperative. Reforms rolled out in rapid succession: women could start businesses without guardian approval, freely open bank accounts, and participate in major economic sectors previously off-limits.

The regulatory overhaul included streamlined company registration through platforms like Meras, flexible work arrangements, and enhanced maternity protections. Institutions like Monsha’at, the General Authority for Small and Medium Enterprises, began offering targeted support, including training programs and access to incubation hubs. Public-private partnerships, such as Flat6Labs, Wadi Makkah, and Badir, have incorporated specific tracks to support female founders.

Indicators of Growth and Participation

The numbers paint a compelling—if still partial—picture of progress. According to the Saudi Ministry of Commerce, the number of women-owned businesses rose by over 60% between 2016 and 2023. Women now own more than 25% of registered SMEs, with a strong presence in sectors such as e-commerce, fashion, beauty tech, wellness, edtech, and food delivery.

The country also saw female labor force participation grow from 17% in 2016 to over 36% by the end of 2023, suggesting that female entrepreneurship is riding on the back of broader economic integration.

Still, the funding picture remains uneven. While women-led startups have secured high-profile funding rounds—especially in health tech and e-commerce—they receive less than 7% of total venture capital deployed in the Kingdom, according to a 2024 report by MAGNiTT. Most of this funding is clustered in early-stage rounds, with a significant drop-off when it comes to scale-ups.

Inside the Experience: Success, Exposure, and Gaps

Behind the aggregate numbers are real women who reflect both the promise and pitfalls of Saudi Arabia’s startup revolution.

Take the case of Sara Al-Rashed, founder of a Saudi edtech platform offering gamified Arabic learning tools for children. Her company received support from a local accelerator and won recognition at regional innovation forums. Yet, when it came time to scale, she struggled to attract Series A funding. Several investors voiced concern about her ability to lead a high-growth tech company as a solo female founder—a subtle but telling form of gender bias.

In contrast, Reem Al-Jaber, who launched a high-end wellness and beauty brand targeting GCC markets, not only received angel investment but also inked distribution partnerships with two major Saudi retailers. Her success was featured in multiple government-sponsored media outlets and at international trade events. Yet, critics note that her brand, while highly visible, has yet to break even—a reminder that not all media coverage reflects business fundamentals.

These examples reveal a complex truth: some women are building resilient, scalable startups, while others gain media traction without matching financial success. The disparity highlights the need to distinguish between authentic progress and symbolic representation.

Public Narratives and the Power of Visibility

Saudi Arabia’s image overhaul is a cornerstone of Vision 2030, and women entrepreneurs are a critical part of that strategy. High-profile forums like LEAP, FII, and the Global Entrepreneurship Congress regularly spotlight female founders as proof of the Kingdom’s modernization. International media coverage often portrays these women as pioneers, shattering stereotypes in a conservative society.

While these stories are real and inspirational, the heavy emphasis on a few selected figures risks reducing systemic progress to PR optics. Corporate sponsors, banks, and government agencies often feature women entrepreneurs in ESG reports and ad campaigns, aligning their brand with the Kingdom’s progressive image. The Saudi Public Investment Fund (PIF) and the Ministry of Investment frequently emphasize female participation as part of their global investor pitch decks.

This strategic branding is not inherently negative—visibility matters. But without consistent support, mentorship, and equitable access to capital, these stories risk becoming superficial showcases rather than sustainable models of empowerment.

Challenges Below the Surface

Despite reforms, significant barriers persist for women-led startups. Access to funding remains a top hurdle. Investor networks are still predominantly male, and many women lack the informal connections or technical backgrounds that VCs typically favor.

Scaling a startup often requires partnership with logistics firms, government contractors, or large-scale suppliers—areas where women still face subtle discrimination. Moreover, societal expectations continue to weigh heavily. Many female entrepreneurs juggle business leadership with family obligations, in a culture that still views caregiving as a woman’s primary role.

These challenges are particularly acute outside urban centers like Riyadh and Jeddah, where conservative norms remain deeply entrenched. Even within cities, progress often relies on the backing of liberal-minded family members or sponsors.

Broader Influence and Long-Term Potential

Despite these headwinds, women-led startups are beginning to transform Saudi Arabia’s business ecosystem. Many female founders actively hire women, mentor younger entrepreneurs, and cultivate inclusive work cultures. This creates a multiplier effect that extends far beyond individual success.

For example, one fintech founder in the Eastern Province reportedly structured her team to include 70% women, offering flexible work-from-home options and onsite childcare. Her model—though still rare—is helping redefine what leadership looks like in a new Saudi economy.

Furthermore, these entrepreneurs are becoming role models for the next generation. As young Saudi girls see women launching companies, raising capital, and speaking at global summits, their expectations—and those of their families—begin to shift.

From Visibility to Viability

The rapid rise of women-led startups reflects real, measurable progress driven by sweeping legal reforms, cultural evolution, and individual ambition. But at the same time, the prominence of these founders in media campaigns and international forums points to a deliberate effort to shape perception, both inside and outside the Kingdom.

To ensure that this movement evolves from trend to transformation, more must be done. The government must deepen institutional support, investors must diversify funding pipelines, and the ecosystem must go beyond visibility to sustainability.

Only then will Saudi Arabia’s women-led startup surge prove to be not just a compelling narrative, but a lasting economic force.

Noha Gad

Arabic is one of the world’s most significant languages, with around 491 million speakers globally as of 2025. This makes it the fifth most spoken language worldwide and the fourth most used language on the internet. Being one of the oldest living languages, the Arabic language is spoken in 22 countries, primarily across the Middle East and North Africa (MENA) region, with additional recognition as a co-official language in countries like Chad and Eritrea.

Despite its broad reach, Arabic presents unique linguistic challenges for artificial intelligence (AI) and natural language processing (NLP) as it is characterized by a complex morphology, rich grammar, and a high degree of diglossia. It also has 25 distinct dialects, ranging from Gulf Arabic and Levantine Arabic to Maghreb and Egyptian Arabic, each with its own phonetic and lexical variations.

This diversity makes it hard for AI systems to accurately understand and generate Arabic text and speech, requiring sophisticated models that can navigate both classical and colloquial forms.

The localization of Arabic AI has become a strategic imperative in Saudi Arabia as the Kingdom moves towards its Vision 2030, not only adopting technology, but also leading the creation of it. 

The convergence of Arabic’s linguistic significance, its inherent complexity, and the Kingdom’s push for technological leadership sets the stage for transformative developments in Arabic AI and NLP. These technologies are not only crucial for enhancing digital communication and services but also for enabling local businesses to thrive in an increasingly digital and globalized economy. 

Saudi Arabia’s efforts to lead the creation of Arabic AI

Recognizing these challenges and the strategic importance of Arabic AI, Saudi Arabia has positioned itself as a regional leader in driving advancements in Arabic language technology. National strategies, such as the National Strategy for Data and AI (NSDAI), play a pivotal role in placing the Kingdom among the world’s top AI economies by 2030. Launched by the Saudi Data and AI Authority (SDAIA) in 2020, NSDAI aims to capitalize on data and AI for the Kingdom economically and socially through national combined efforts by all stakeholders. 

Through this initiative, the Kingdom aspires to build the foundation for competitive advantage in key niche domains in 2025, and compete on the international scene as a leading economy, utilizing and exporting data and AI by 2030.

Key objectives of NSDAI also include attracting investment worth SAR 75 billion in data and AI, and transforming the Saudi workforce with a steady local supply of more than 20,000 data and AI specialists and experts.

SDAIA also collaborated with NVIDIA to launch ALLaM, Saudi Arabia’s first-of-its-kind chat application that chats and responds to users' inquiries in Arabic. The application offers reliable information in all fields and provides updated summaries and suggestions on various topics. Furthermore, the authority partnered with global tech giants, such as IBM and Microsoft, to enhance the deployment of ALLaM.

King Salman Global Academy for Arabic Language (KSGAAL) is another key player in advancing Arabic AI in the Kingdom. In 2024, it launched the Arabic AI Center, the first specialized AI center for automated Arabic language processing. The center is dedicated to enhancing Arabic content in the fields of data and AI, and making it more competitive globally while driving research, applications, and capabilities in AI and the Arabic language.

The Arabic AI Center targets empowering researchers and developers to harness advanced technologies for processing the Arabic language through five advanced labs: Linguistic and AI Modeling Lab, Data Preparation and Linguistic Resources Lab, Virtual and Augmented Reality Lab, Audio and Visual Processing Lab, and Researcher Workspace Lab.

How Arabic AI and NLP empower local businesses?

Industry Applications

The applications of Arabic AI and NLP span various fields. For instance, AI-powered chatbots and virtual assistants can enhance customer services by providing personalized and dialect-aware support, improving user satisfaction and accessibility. In retail and e-commerce sectors, sentiment analysis and feedback mining help businesses understand customer needs and trends.

Finance companies, such as Mozn, harness Arabic NLP engines to advance fraud detection, compliance, and risk management. Additionally, Arabic AI and NLP can promote e-government in Saudi Arabia by enhancing communication and faster, clearer interactions for citizens navigating government portals.

Economic and Social Impact

• Boosting local content. Advancing Arabic AI and NLP tools can increase the availability and quality of Arabic digital content across various sectors.
• Inclusivity and digital literacy. Arabic-first AI tools ensure broader access and participation in the digital economy. 
• Entrepreneurship and innovation. Local developers and startups leverage Arabic AI to build hyper-localized solutions, fostering a vibrant tech ecosystem.

Arabic AI and NLP are projected to deliver substantial economic benefits to the Kingdom over the coming decade. According to PwC, AI could contribute 12.4% of GDP (around $235 billion) by 2030, underscoring the transformative potential of AI across multiple sectors of the Saudi economy. Additionally, the Saudi Ministry of Communications and Information Technology (MCIT) suggested that with a 20% annual growth in the AI market, Saudi Arabia’s GDP is projects to see an uplift of 0.6% above baseline growth by 2030.

On the employment front, AI’s impact is nuanced but promising. While simulations indicate that about 20.5% of current jobs could be automated, the potential for new job creation exceeds this at 23%, leading to a net employment increase of roughly 2.5% by 2030. Saudi Arabia currently focuses on training and certifying thousands of AI specialists to keep pace with this trend, aiming to build a workforce capable of sustaining and expanding the AI ecosystem. Additionally, Arabic AI and NLP are driving significant social transformation by enhancing accessibility, inclusivity, and cultural relevance in digital interactions. 

Key Challenges

• Linguistic diversity and complexity. The complex morphology and rich grammar of the Arabic language pose significant hurdles for AI development. The language features dozens of dialects, requiring AI models to be dialect-aware for authentic communication. Also, Large Language Models (LLMs) must be trained to think in Arabic, not just translate from English or other languages, to capture cultural and linguistic nuances effectively.
• Data scarcity and quality. Although Arabic is the fourth most spoken language in the world, it accounts for less than 1% of internet content. Many existing Arabic LLMs rely heavily on English data, which reduces their efficacy in handling complex Arabic reasoning and dialects. Saudi initiatives, such as ALLaM, play a pivotal role in building large, culturally relevant Arabic datasets to overcome this scarcity.
• Strategic sovereignty and ethical considerations. Building sovereign Arabic AI models is instrumental to ensure that AI systems reflect regional values, cultural norms, and legal frameworks. The Saudi Vision 2030 emphasizes AI sovereignty, promoting models trained on local data governed by regional laws to maintain trust and autonomy.

Saudi Arabia is rapidly advancing toward becoming a global leader in Arabic AI and NLP, driven by its ambitious Vision 2030 and substantial investments in AI infrastructure and talent development. The Kingdom accelerates its efforts to expand generative AI capabilities specifically tailored for Arabic content, including dialectal and classical forms.

The development of sovereign Arabic LLMs like ALLaM, integrated into global technology platforms and supported by advanced data centers powered by the Kingdom’s unique energy resources, positions Saudi Arabia as a regional powerhouse and a significant player on the global AI stage.