Riyadh - Sharikat Mubasher: The startup ecosystem in Saudi Arabia is experiencing rapid growth and transformation, driven by Vision 2030, increased access to funding, and a burgeoning entrepreneurial spirit.
626 startups in the Kingdom raised funding worth over $3.86 billion between 2020 and 2024, capturing 32% of the Middle East and North Africa (MENA) total funding and posting a 5-year compound annual growth rate (CAGR) of 49%, surpassing the rest of MENA’s 4% CAGR, according to a recent report by MAGNiTT.
The 2020-2024 KSA Startup Funding Benchmark report, sponsored by the National Technology Development Program (NTDP), revealed that the number of investors in Saudi-based startups grew at a 28% CAGR, outpacing the rest of MENA, which recorded a 10% CAGR. Additionally, the number of international investors in the Kingdom increased between 2020-2024 at a CAGR of 41%.
Saudi late-stage startups secured the largest share of investments valued at $1.26 billion in five years, accounting for 50% of total MENA late-stage investment and averaging 3.6x more than the rest of MENA.
Early-stage startups raised $538 million between 2020 and 2024, following startups at Series B and Series A stages with $684 million and $634 million, respectively.
Further, Saudi Arabia recorded an +18% CAGR in deal activity over the last five years, showcasing sustained momentum compared to MENA’s -5% CAGR.
Ibrahim Neyaz, CEO of the NTDP, stated that these achievements highlight the Kingdom’s strategic investments and persistent dedication to fostering startups at every stage of their growth journey. “With a digital economy exceeding $132 billion and a growing pool of over 393,000 skilled tech professionals, Saudi Arabia is positioned as a powerhouse of innovation and opportunity in the region,” Neyaz noted.
Moreover, the CEO emphasized NTDP’s commitment to fostering collaboration between government entities, the private sector, and international partners enabling innovation in key areas and emerging technologies such as Al, biotech, healthtech, spacetech, agritech, 6G, ORAN, climatetech, and robotics.