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Saudi Arabia — VC navigator

Arising technological valley

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Market overview

Review of the market and key statistics

VC List

The table of 60+ VCs, their investment focuses and contacts

Taxes & incorporation

Information on how to launch a startup in the Saudi Arabia

40%
Of total venture capital deployed in the MENA region – 2024
$750 mn
Raised by startups in Saudi Arabia in 2024
34%
Increase of new investors backing startups
51%
Of total funding falls on e-com

Introduction

This report is a go-to guide for international startups and investors that are keen on exploring Saudi Arabian market, as it answers several questions frequently asked by entrepreneurs. Additionally, the report includes the list of VC funds and business angels ready to invest into startups in different spheres.

Saudi Arabia's venture ecosystem has witnessed remarkable growth and transformation in recent years, positioning itself as a significant player in the Middle East and North Africa (MENA) region.

Saudi Arabia finished 2023 with an all-time high in funding, amassing $2.56 billion. In 2024, deal activity (transactions) grew further by 16% year-over-year, outpacing other major MENA markets. Such significant funding, even amid macroeconomic challenges, underscores the continued investor interest in the Saudi startup ecosystem.

The entrepreneurial scene in Saudi Arabia has seen an 87% annual growth in the number of startups from 2017 to 2024. This growth is partly attributed to the Vision 2030 objectives, which aim to boost local employment and upskill talent, particularly in future-oriented industries like AI and digital skills. Substantial investments, including USD 1.4 billion earmarked for promoting entrepreneurship and digital content, have bolstered this growth. Furthermore, government-led initiatives, such as training 100,000 Saudi nationals in AI, programming, cybersecurity, and gaming, demonstrate a commitment to nurturing local tech capabilities.

Saudi Arabia's strategic location makes it a hub for businesses to access the vast MENA market. The country boasts over 1,600 startups, supported by more than 140 programs and a network of venture capital firms. Its diverse founder base from various backgrounds fosters innovation. In the first half of 2023, Saudi Arabia ranked first in venture capital activities in the MENA region, capturing 40% of all investment in the region.

Considering the Saudi ecosystem’s robust performance in a turbulent economic climate, there’s a strong indication that 2025 could continue this series of achievements.

Market overview

$138 bn
Total funding
7x
Growth in funding 2014 to 2024
466
Total VC exits
3
Unicorns (see below)

Top-5 trends for startups in the region:

1. Record-Breaking Growth in Venture Capital. This growth trajectory is expected to continue. In 2024, Saudi startups raised $750 million across 178 deals, maintaining their position as the top VC destination in MENA. The gap between Saudi Arabia and the UAE (MENA’s most active market by transactions) also narrowed from 19 deals in 2023 to just 10 deals in 2024.

2. In 2024, fintech retained its status as one of Saudi Arabia’s most active startup sectors, accounting for 18% of total venture funding across 28 deals. While mega-rounds ($100M+) plummeted by 85% year-on-year, non-mega rounds grew by 34%, signaling a shift toward more sustainable, early- and mid-stage financing. This trend suggests that fintech in Saudi Arabia is maturing beyond headline-grabbing deals and moving toward a broader base of product-driven innovation and investor confidence.

3. Government Initiatives and Regulatory Support. Various initiatives by the Saudi Central Bank (SAMA) and the Capital Market Authority have further boosted fintech development. These include the Open Banking Framework and the Open Banking Lab, which facilitate data sharing and provide a technical testing environment for open banking services.

4. Diversified Sector Growth and Investment Focus. While fintech, e-commerce, and logistics remain core drivers of Saudi Arabia’s startup activity, 2024 marked a shift toward greater sectoral diversification. Enterprise software stepped into the spotlight with a remarkable 175% surge in seed-stage deals. Edtech also gained significant ground, recording a 200% year-on-year jump in deal volume, as investors respond to the growing need for innovation in learning technologies and workforce development.

5. Rising Talent and International Influx. The growth in venture capital investment has not only enhanced Saudi Arabia's economic stature but also cultivated its talent pool. There's an organic growth in the local talent pool, further enhanced by the influx of international talent. This trend is fueled by the expansion and relocation of more companies to the Kingdom, attracting diverse skills and expertise. For example, international investor participation increased to 25% in the first nine months of 2024, up from 16% in the same period in 2023.

In 2024, Saudi Arabia successfully maintained this leadership position despite regional and global funding slowdown. Accelerator and incubator programs like TAQADAM, Misk Launchpad & Accelerator, and the Garage, as well as the entry of international operators such as Techstars and 500 Startups, played a crucial role in nurturing startups. The Misk Foundation, MCIT, and the National Technology Development Program have introduced the Saudi Unicorn program, aimed at supporting early-stage startups to achieve unicorn status.

What industries in SAUDI ARABIA do you find the most promising?

In Saudi Arabia's growing startup world, certain fields are really taking off, offering chances for new ideas and investments that could shape the country's future:

- E-commerce and Fintech: These sectors are experiencing a surge in activity, attracting significant investment and funding. Similar to the rapid growth seen in neighboring UAE, they are garnering considerable attention from both investors and entrepreneurs.

- Healthcare and Well-being: There's a big demand for good healthcare and ways to live healthier lives. With the government pushing to improve health across the nation, there's a great opportunity for new ideas and businesses in healthcare and well-being.

- Food Security and Logistics: Given Saudi Arabia's strategic geographical location and ambitious economic aspirations, food security and logistics emerge as critical focal points for domestic and regional stability. The development of robust logistics infrastructure not only strengthens internal supply chains but also positions the Kingdom as a global nexus for trade and transportation.

- Artificial Intelligence (AI): Leading the charge in technological innovation, AI offers vast opportunities for growth within Saudi Arabia. With a strategic emphasis on cultivating indigenous AI solutions and infrastructure, the Kingdom aims to assert its leadership in the regional and global AI landscape, paving the way for pioneering ventures.

Associated factors such as the government's active participation in creating favorable conditions for venture investments, the presence of local and foreign investors, and the opening of branches of international funds and accelerators in Saudi Arabia only underscore the potential of these sectors. Thus, the active development of the local venture ecosystem and the focus on innovation can contribute to rapid advancement in these and other business areas in the region.

Editor's opinion on market characteristics

Technical talent (IT, engineering, hardware)

Marketing talent (PR, ads, branding)

Management talent (operations, HR, management)

Pros & Cons of launching a startup in Saudi Arabia

Growing Venture Capital Ecosystem

Unlike the rest of the world, Saudi Arabia demonstrates significant growth in venture capital funding, indicating strong investor interest in the region

Dependency on Government Initiatives

While government support is a strength, over-reliance on it could pose risks if policies or economic conditions change. Some aspects of Saudi Arabia's regulatory environment can still be complex and time-consuming to navigate

Strategic Location

Saudi Arabia's strategic position makes it a hub for accessing the broader Middle East and North Africa (MENA) market

Cultural and Market Specifics

Navigating the unique cultural and market dynamics of Saudi Arabia can be challenging, especially for those unfamiliar with the local business environment

Regulatory Reforms

Progressive regulatory reforms make it easier to start and operate a business, with streamlined processes for registration and licensing

Limited Sector Development

Saudi Arabia has developed FinTech and E-com industries, although other sectors may have limited financing and acceleration opportunities

Over 60 venture funds and angels are gathered in the list – start to explore and send your pitch!

Unicorns in the Saudi Arabian Market

FinTech
Tamara

Tamara

Tamara, a buy now, pay later platform for consumers in Saudi Arabia and the wider GCC region, has raised $340 million in a financing round that values the fintech at $1 billion.

Company's website
Fintech
Tabby

Tabby

BNPL (buy now pay later) platform that raised $200 million in equity funding, bringing the company's valuation to more than $1.5 billion

Company's website
FINTECH
STC PAY

STC PAY

First licensed fintech company in Kingdom by SAMA, the largest digital wallet in the MENA, and the first Saudi fintech unicorn startup.

Company's website

Incorporation

9 steps to incorporate
your business in Saudi Arabia

Incorporating a startup in Saudi Arabia involves several steps that may vary depending on the chosen jurisdiction and company type. Here is a general overview of the steps involved:

1. Application for Investment License

Non-GCC foreign investors must apply for an Investment License from the Saudi Arabian General Investment Authority (SAGIA). This involves submitting a detailed report outlining the nature and size of the investment activity and key financial information about the company's operation.

2. Articles of Association

Prepare and submit the Articles of Association to the Ministry of Commerce and Investment. Once approved, the document must be signed in front of a notary public to register for a Commercial Registration (CR) certificate.

3. Registering Company’s Name

Reserve the company name with the Unified Centre and obtain approval before submitting other incorporation forms, such as articles of association and deed of establishment.

4. Registering with MERAS

Register your company online with the Ministry of Commerce through the MERAS program. Obtain a CR, which is an operating license, and a tax number. The application must include details like company type, trade name, activity, capital, and managerial information.

5. Issuance of SAGIA Foreign Business License

Submit all necessary documents (CR, tax registration, municipality license, bank’s share capital deposit letter) to SAGIA for review and approval. SAGIA will then issue the foreign business investment license, allowing the company to operate legally in Saudi Arabia.

6. Creation of Company Seal

Create a company seal with the CR number and company name. This seal is required for various official purposes, including attestations at the Chamber of Commerce, registration with the General Organization for Social Insurance, and for company invoices.

7. Registration at the Chamber of Commerce

Submit the Certificate of Membership from the Chamber of Commerce and Industry (CCI) within 30 days of the CR registration.

8. Bank Account Opening

Open a local bank account within 90 days of the issuance of the commercial certificate. The process includes opening a capital account for depositing the required paid-up share capital, which is later converted into an operating business account.

9. Staying Compliant

Ensure compliance with local accounting and tax regulations. This involves preparing financial statements, corporate tax returns, and bookkeeping. For foreign employees, obtaining a Saudi Employment visa (Iqama) is necessary for them to be signatories to a Saudi corporate bank account.

The report is supported by these amazing companies:

The review is created by:​

Kirill Sosnin

Kirill Sosnin

Founder at Blank
Tatiana Makeeva

Tatiana Makeeva

Head of Analytics

Let's discuss the collaboration

We plan to launch more reviews of the underexplored regions, such as Egypt, Indonesia and more.

Let me know if you are interested in this or other collaborations.

Do you want to launch your company in Saudi Arabia?

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