Riyadh Air begins non-commercial flights as part of certification process
Inaugural flight, RX5001, to fly from Riyadh to Jeddah’s King Abdulaziz International Airport
Riyadh Air is scheduled to launch commercial operations in 2025
Updated 01 October 2024
MIGUEL HADCHITY
RIYADH: Saudi Arabia’s Riyadh Air, a subsidiary of the Public Investment Fund, has launched its first non-commercial flight from the capital’s King Khalid International Airport as part of the airline’s certification process.
According to a press release, this is a crucial step in the airline’s journey to full certification and is part of obtaining an Air Operator Certificate from the General Authority of Civil Aviation.
The inaugural flight, RX5001, flew from Riyadh to Jeddah’s King Abdulaziz International Airport on Sept. 12. Over the coming months, Riyadh Air is set to operate several domestic and international trips as part of its certification flying program.
In a statement, the company expressed gratitude to its key partners, highlighting GACA for their regulatory oversight, Saudia Airlines for leasing the 787-9 aircraft, Riyadh Airports Co. for logistical support and Saudia Technic for aircraft maintenance as well as Alsalam Aerospace Industries Co. for providing hangar facilities.
Riyadh Air was unveiled in March 2023 by Crown Prince Mohammed bin Salman as part of the Kingdom’s drive to become a global aviation leader by expanding connectivity to over 250 destinations and tripling annual passenger traffic to 330 million.
Another milestone in our journey toward our maiden flight in 2025
“This marks another important milestone in our journey to our maiden flight in 2025,” the press release said.
Riyadh Air, scheduled to launch commercial operations in 2025, has been actively expanding its partnerships with leading global airlines.
In June, the airline signed agreements with two major carriers, Singapore Airlines and Air China, to establish strategic partnerships and expand its global network.
The agreement focused on interline connectivity, codeshare arrangements, and potential collaboration in frequent flyer programs as well as cargo services, customer experience, and digital innovation.
This step marks an important milestone in the delivery of the #SaudiAviationStrategy as @RiyadhAir commences noncommercial flights as part of the 'Air Operator Certificate' process. The establishment of a second airline will help achieve the goal of connecting 250+ destinations… https://t.co/cS1E64qxAl
These partnerships highlight Riyadh Air’s commitment to becoming a world-leading carrier. The Saudi airline aims to connect passengers to 100 destinations globally by 2030, prioritizing sustainability and setting a new standard for travel.
As a key contributor to Vision 2030, Riyadh Air is boosting economic diversification and job creation within the Kingdom.
On the technical side, the airline signed a five-year agreement in July to use GE Aerospace’s flight operations software, equipping the new carrier with data-driven analytics to optimize fuel consumption, enhance safety measures, and fortify its sustainability initiatives.
The Fuel Insight software will help Riyadh Air position itself as a leader in sustainable aviation. The airline will also use real-time data monitoring and operations quality assurance to ensure high safety and quality standards across its advanced fleet.
RIYADH: Saudi Arabia’s fintech ecosystem is expanding further with the Saudi Central Bank, or SAMA, granting licenses to two new service providers.
Tal Finance has been authorized to offer debt-based crowdfunding solutions, making it the 12th company in the Kingdom to provide such services. This addition brings the total number of finance companies licensed by SAMA to 62, highlighting the increasing role of alternative financing solutions in Saudi Arabia.
Meanwhile, SAMA has granted a license to Hiberbay Ink Al-Saoudia for IT Systems to deliver e-wallet services, increasing the total number of payment service providers in Saudi Arabia to 27. This move is aimed at promoting digital payment solutions and accelerating the Kingdom’s shift toward a cashless economy.
These developments align with Saudi Arabia’s Vision 2030 objectives to bolster the digital economy, expand financial inclusion, and increase the share of cashless transactions to 70 percent by 2025.
SAMA’s efforts are also tied to the Financial Development Sector strategy, which aims to have 525 active fintech companies operating in the Kingdom by 2030.
“Managing the transformation of the financial sector is a cornerstone of Vision 2030,” SAMA said in a statement, highlighting its focus on innovation and efficiency.
Through these initiatives, the central bank seeks to foster financial stability, stimulate economic growth, and position Saudi Arabia as a global fintech leader.
The fintech sector is expected to play a pivotal role in driving foreign investment, projected to contribute 20 percent of total foreign inflows. This growth is fueled by Saudi Arabia’s tech-savvy population, which is embracing consumer fintech innovations like buy now, pay later services.
In an interview with Arab News in December, Arjun Singh, partner and global head of fintech at Arthur D. Little Middle East, highlighted the natural evolution of Saudi Arabia’s consumer finance landscape, driven by an expanding array of financial products tailored to the diverse needs of its growing market.
He added that the Saudi BNPL market is poised to grow from $1.4 billion in 2024 to $2.8 billion by 2029, reflecting a compound annual growth rate of over 10 percent.
SAMA’s recent licensing activity underscores its commitment to supporting innovation while ensuring financial stability and efficiency. As the Kingdom’s fintech landscape expands, these developments are expected to drive significant economic and technological progress.
Rise in market cap is driven by a robust economy, foreign investments, and a rise in initial public offerings
Stock market in the UAE is one of the biggest in the region, standing next to Saudi Arabia
Updated 16 min 9 sec ago
Nirmal Narayanan
RIYADH: Dubai and Abu Dhabi have reached a combined market cap of stock markets, reaching 3.90 trillion dirhams ($1.06 trillion) by the end of the year, representing an annual rise of 7.14 percent.
The rise in market cap is driven by a robust economy, foreign investments, and a rise in initial public offerings, according to a report by Emirati state news agency WAM.
The stock market in the UAE is one of the biggest in the region, standing next to Saudi Arabia, with a market capitalization of SR10.2 trillion ($2.72 trillion), as of Dec.31.
According to data from the London Stock Exchange, the Gulf Cooperation Council region witnessed 48 IPOs in 2024, raising a total of $12.1 billion.
LSEG revealed that 38 IPOs happened in Saudi Arabia, followed by seven in the UAE, two in Oman, and one in Kuwait.
WAM added that the Abu Dhabi Securities Exchange witnessed a 1.01 percent year-on-year rise in market capitalization to reach 2.99 trillion dirhams by the end of 2024.
The market capitalization of Dubai Financial Market reached 906.9 billion dirhams by the end of the year, representing a 31.9 percent rise compared to the end of 2023.
In terms of trading, the UAE markets attracted more than 449 billion dirhams in value during 2024, with 342.4 billion dirhams on the ADX and 106.7 billion dirhams on the DFM.
According to the report, the total volume of shares traded in UAE markets in 2024 exceeded 142 billion, with 90.16 billion shares traded on the ADX and 51.85 billion on the DFM.
The report revealed that trading in UAE markets took place through more than 7.2 million transactions, with 4.655 million on the ADX and 2.55 million on the DFM.
It was in November that UAE stock markets hit $1 trillion in market capitalization, primarily driven by initial public offerings and strong earnings.
The strong performance of the UAE economy amid economic diversification efforts is also playing a crucial role in boosting the stock market in the Emirates.
In December, Emirates NBD said the UAE’s economy is projected to expand by 5 percent in 2025, driven by accelerated growth in the oil and non-oil sectors.
Last month, the UAE’s Central Bank said that the country’s economy is on a steady growth trajectory, with its real gross domestic product expected to expand by 4.5 percent and 5.5 percent in 2025 and 2026, respectively.
Saudi capital market scales new heights in 2024 with bold future ahead
Updated 01 January 2025
Nadin Hassan
RIYADH: Saudi Arabia’s capital market saw impressive growth in 2024, with record-breaking initial public offerings, significant reforms, and an expanding global presence.
The big question now is whether 2025 can take this momentum even further.
The Kingdom led the Gulf Cooperation Council IPO market last year, with 19 listings in the first half, surpassing the 17 offerings in 2023. These achievements have firmly positioned Saudi Arabia as an emerging financial powerhouse.
“IPOs have been a key driver of growth in Saudi Arabia’s capital market in 2024, reinforcing the Kingdom’s position as a regional leader,” Imad Matar, PwC Middle East deals advisory leader, told Arab News.
Imad Matar, PwC Middle East deals advisory leader. Supplied
Listings such as Nice One Beauty Digital Marketing Co., Almoosa Health Co., and Tamkeen Human Resources highlighted the diversity of sectors supporting Vision 2030.
On the significance of these IPOs, Matar stated: “These listings show the growing ability of Saudi Arabia to attract investments across diverse and high-growth sectors.”
Ali Anwar, managing director and Middle East practice leader of the global transaction advisory group at Alvarez and Marsal, shared insights with Arab News on the government’s proactive efforts to foster a dynamic IPO market.
Ali Anwar, managing director and Middle East practice leader of the global transaction advisory group at Alvarez and Marsal. Supplied
“IPOs in 2024 contributed to the liquidity and depth of the Saudi stock market, bringing fresh capital into the market. This not only increased the size of the market but also provided investors with more investment choices, enhancing the overall appeal of Saudi Arabia’s capital markets,” Anwar told Arab News.
Sustainability at the forefront
Environmental, social, and governance investments played a pivotal role in Saudi Arabia’s market evolution in 2024, closely aligning with the Kingdom’s Vision 2030 agenda.
This transformation was marked by a rise in green bonds and ESG-compliant IPOs, positioning Saudi Arabia in line with global sustainability standards.
“The government’s focus on green energy, sustainable infrastructure, and social responsibility has led to an increase in green bonds, ESG-compliant IPOs, and investments in sectors such as renewable energy, technology, and healthcare,” Matar said.
He added: “These initiatives are driving growth in emerging sectors while furthering Saudi Arabia’s economic diversification efforts.”
Easier business, greater confidence
Regulatory reforms like the New Companies Law and Civil Transactions Law brought significant changes in 2024, streamlining business processes and fostering a more transparent investment environment.
However, what truly proved to be a game-changer was the launch of new financial products, such as options and futures, on Tadawul. These innovative tools are unlocking a wealth of investment opportunities for both local and international investors.
Matar highlighted the introduction of financial instruments like options and futures on Tadawul as a key milestone.
“The introduction of options, both call and put options, has been a significant step. These contracts give investors the right, but not the obligation, to buy or sell assets at a set price within a specified time frame, which adds an extra layer of flexibility,” Matar said.
He further noted: “It’s not just about stocks anymore; options and futures allow investors to hedge, manage risk, and even profit from market movements in ways that were previously unavailable.”
Regulatory reform was not the only factor in improving business processes and creating a more transparent investment environment. When asked, Anwar also emphasized the role of the Capital Market Authority.
“The CMA has continued its efforts to strengthen corporate governance frameworks and transparency, making the market more open and helping investors make informed decisions. These shifts have boosted investor confidence, making Saudi Arabia more attractive to both regional and international capital,” Anwar explained.
He added: “The CMA has made it easier and quicker for companies to list by introducing more flexible listing requirements for SMEs. The regulatory environment for foreign investors has undergone changes to make Saudi Arabia’s capital market more accessible, making it easier for international investors to buy into the Saudi market.”
Saudi Arabia has also simplified the procedures for companies to introduce various financial products, including exchange-traded funds, sukuk, and structured products, into the market.
By making this process more efficient, the Kingdom has expanded the range of investment opportunities available.
“This has opened up more investment options for both domestic and foreign investors who are looking for a wider variety of financial instruments,” Anwar said.
Foreign investors
Foreign investor participation was crucial in boosting Saudi Arabia’s market liquidity and global integration in 2024.
The Kingdom attracted substantial foreign capital through IPOs, sukuk issuances, and privatization efforts across key sectors such as sports, infrastructure, and tourism.
“In Q2 2024, Saudi Arabia led the GCC IPO market, raising $1.6 billion, accounting for 61 percent of the region’s total IPO activity. Notable listings, such as Dr. Soliman Abdel Kader Fakeeh Hospital, along with average IPO gains of 43 percent, highlight growing investor confidence,” Matar said.
He also highlighted the impressive growth in sukuk issuances, stating: “The Kingdom saw a significant increase in sukuk issuances, raising over $10 billion in Q2 2024, more than quadrupling the previous year. Foreign direct investments also grew, with Q1 2024 inflows rising by 5.6 percent to SR9.5 billion.”
He highlighted that ongoing reforms and privatization efforts in sectors such as sports, infrastructure, and tourism are expected to continue driving this growth. These trends underscore Saudi Arabia’s growing appeal as an investment destination, fueled by ongoing regulatory reforms and the economic diversification goals of Vision 2030.
When asked about the role IPOs played in shaping the market’s performance and attracting foreign investments, Anwar explained that in 2024, the government advanced its strategy of listing state-owned entities or reducing its stake in publicly traded companies.
This shift helped reduce the state’s direct control over certain sectors, fostering greater private-sector participation and competition.
Essentially, the successful IPOs of high-profile companies not only brought in fresh investments but also reflected strong local and international confidence in the country’s economic trajectory.
“Successful IPOs in 2024 demonstrated a high level of investor confidence, both locally and internationally, in Saudi Arabia’s economic future,” Anwar said.
He continued: “IPOs of well-known companies with strong growth prospects not only helped boost the stock market’s performance but also reassured investors that the regulatory environment was becoming more open and investor-friendly.”
Anwar added: “Strong post-IPO performance of many companies signaled the robustness of the market, leading to further interest in upcoming listings and a more vibrant secondary market.”
Outlook 2025
As 2025 begins, Saudi Arabia’s capital market is set to benefit from ongoing diversification, strong IPO activity, and advancements in digital finance.
“In 2025, Saudi Arabia’s capital market is expected to continue its growth trajectory, driven by several key trends and economic opportunities,” Matar said.
He added: “The continued privatization of state-owned assets and strong IPO activity will provide more investment opportunities and strengthen market liquidity.”
By embracing digital transformation through advancements in artificial intelligence, blockchain, and fintech, the Kingdom is modernizing its financial systems to improve efficiency, reduce costs, and streamline processes.
These technological innovations are not only making financial transactions faster and more reliable but also attracting global investors who value transparency and innovation.
At the same time, Saudi Arabia’s commitment to green finance, including the issuance of green bonds and investments in sustainable projects, underscores its dedication to fostering environmentally conscious and socially responsible growth.
“These trends are likely to shape the capital market by enhancing market depth, global integration, and investor confidence,” Matar said.
He added: “By attracting international companies and investors, Saudi Arabia is not only diversifying its economy but also strengthening its financial ties with global markets.”
Anwar also shared a forward-looking perspective: “The Saudi government is likely to continue pushing for the privatization of state-owned assets, as well as encouraging more private sector IPOs.”
He further noted: “Technology, consumer, healthcare, and infrastructure-related entities are likely to dominate new listings in 2025. Foreign investments are likely to continue flowing into Saudi Arabia’s capital markets, supported by the ongoing reforms and market inclusion in global indices.”
Saudi Arabia is also making its financial markets more accessible to international investors by relaxing foreign ownership rules, expanding market entry points, and creating financial products designed to meet global investor needs.
These efforts are expected to attract more foreign investment and participation in the market.
In addition, the government is focusing on supporting small and medium-sized enterprises by implementing policies that simplify and expedite the process for them to raise capital through public listings.
In 2024, Saudi Arabia’s capital market demonstrated resilience, ambition, and a forward-looking vision. With a roadmap shaped by innovation and diversification, 2025 promises to be another defining chapter in the Kingdom’s journey toward global prominence.
International investors flock to Saudi Arabia’s expanding VC market in 2024
Updated 2 min 56 sec ago
Nour El-Shaeri
RIYADH: Saudi Arabia’s venture capital ecosystem showed remarkable growth in 2024, driven by robust government support, an influx of international investors, and a maturing entrepreneurial scene, according to industry experts.
Aligned with its economic diversification strategy, the Kingdom has prioritized startups and VC investments as pivotal components of its transformation under Vision 2030.
In an interview with Arab News, Philip Bahoshy, CEO and founder of MAGNiTT, a leading regional data platform, emphasized the importance of government-backed programs in fostering this growth, ensuring the ecosystem’s continued expansion in 2025 and beyond.
Philip Bahoshy, CEO and founder of MAGNiTT. Supplied
“Saudi Arabia continued to develop its venture ecosystem throughout 2024. This was seen through multiple government programs and initiatives driven by the Ministry of Communications and Information Technology and the National Technology Development Program, as well as training programs and investment structures through Jada Fund of Funds and SVC,” Bahoshy said.
He also pointed out that the data indicates Saudi Arabia’s increasing competitiveness in terms of funding, especially when compared to other regional markets.
Mohammed Al-Zubi, founder of Nama Ventures, one of Saudi Arabia’s top early-stage VC firms, echoed these sentiments, noting the alignment between Vision 2030 and the Kingdom’s growing momentum in the sector.
“Three key factors stood out. First, the continued support from Vision 2030 initiatives, which provided both infrastructure and funding incentives to startups and investors. Second, the influx of international investors who recognize the untapped potential in the Saudi market,” Al-Zubi told Arab News.
Mohammed Al-Zubi, founder of Nama Ventures. Supplied
“Finally, we saw at Nama that the entrepreneurial talent pool in Saudi Arabia has grown exponentially, with founders becoming more sophisticated in their approach to building scalable businesses,” Al-Zubi added.
A resilient VC market
Despite global economic challenges and a slowdown in late-stage investments, Saudi Arabia’s VC market proved resilient, outpacing many developed markets.
“2024 showcased Saudi Arabia as one of the most dynamic and interesting VC markets globally,” said Al-Zubi.
He observed that, while global VC investments saw significant declines, Saudi Arabia experienced only a “below-average decline,” thanks to targeted initiatives aimed at building a sustainable entrepreneurial ecosystem.
Bahoshy also noted the strength of early-stage and Series A investments, which formed the backbone of the Kingdom’s venture capital activity.
“Venture investment in the Kingdom remained strong at early and series A investments. Late-stage investment globally and in the region has been the hardest hit by the slowdown in venture,” he explained.
One of the standout trends in Saudi Arabia’s 2024 venture capital market was the explosive growth in early-stage investments, which, according to Al-Zubi, accounted for approximately 85 percent of all VC deals.
He emphasized that such investments are crucial for laying a solid foundation for the ecosystem.
Bahoshy also highlighted this trend, noting that “investor appetite at the early stage was notable, driving an increase in the total number of transactions year on year.”
Success stories
Saudi Arabia’s VC growth in 2024 was marked by key success stories, reflecting the strength and global appeal of the local startup ecosystem.
Bahoshy pointed to Tabby, a buy-now-pay-later fintech unicorn, as one of the standout successes. “Now headquartered in Saudi Arabia, Tabby is preparing for its initial public offering, likely on Tadawul, though the IPO date is yet to be announced.”
“The company reached unicorn status last year with a valuation exceeding $1.5 billion after raising $200 million in a Series D funding round. This year it continued its expansion into the Kingdom through the acquisition of Tweeq, moving beyond just BNPL but into other financial services,” he said.
Al-Zubi pointed to Salla, an e-commerce platform backed by Nama Ventures, as another success story.
“Salla’s journey in 2024 is a prime example of the transformative power of early-stage VC. Nama Ventures invested in Salla during its earliest stages, and the company is now on the brink of unicorn status and preparing for an IPO. This year, Salla secured a $130 million pre-IPO investment round, partnered with stc Bank, and launched the Salla Special plan to empower businesses with advanced capabilities,” Al-Zubi explained.
Other Nama Ventures portfolio companies, such as Cargoz and Nowlun, are also leveraging opportunities in the Saudi market.
“Beyond Salla, other Nama Ventures portfolio companies, such as Cargoz and Nowlun, are expanding their footprints into Saudi Arabia — a testament to the ecosystem’s vibrancy and the opportunities it offers for regional growth,” Al-Zubi added.
Global engagement
Discussing the factors driving VC investments into Saudi Arabia, Bahoshy emphasized the Kingdom’s strategic vision as a key attraction for international capital.
“Saudi Arabia, in line with Vision 2030, continues to attract international and regional interest into the Kingdom. In 2024, we saw notable relocation of companies to the Kingdom for their headquarters as well as international VC entities from the US and Asia setting up offices in the Kingdom as they attract global capital,” he stated.
“This has led to the support of venture investment in the Kingdom locally and attracting regional and international startups to the Kingdom,” Bahoshy said.
This surge in international engagement was further bolstered by various government support programs.
“This was complemented by government support programs driven by the likes of MCIT, multiple accelerator programs focused on the top of the funnel like Flat6Labs, 500 Global and Sanabil, as well as Fund of Fund programs to not only invest in the capital allocators, but also to train them through structured programs and academic efforts,” he added.
Global events hosted in Saudi Arabia, such as the Future Investment Initiative and LEAP, played a pivotal role in boosting the Kingdom’s international profile.
“These events have positioned Saudi Arabia as a global hub for innovation and entrepreneurship, attracting attention from leading international venture capitalists,” said Al-Zubi.
Emerging trends
Saudi Arabia’s VC ecosystem has expanded beyond traditional sectors like fintech and e-commerce, branching into emerging industries such as IT solutions, food and beverage, and agriculture.
Bahoshy pointed to Intelmatix’s $20 million Series A round and AI Menu’s $10 million funding as examples of this diversification.
“In 2024, Saudi Arabia’s VC space saw notable activity beyond the usual leading sectors of fintech, e-commerce, retail, and transport and logistics,” Bahoshy said.
Al-Zubi noted another key trend — the rise of sector-specific funds led by seasoned entrepreneurs.
“These individuals leveraged their expertise and capital to establish highly focused funds in areas such as fintech, health tech, and logistics,” he observed.
He believes this trend will continue into 2025, with more seasoned founders transitioning into investors and further strengthening the ecosystem.
2025 Outlook
Both Bahoshy and Al-Zubi are optimistic about the future of Saudi Arabia’s VC market in 2025.
Bahoshy highlighted IPO readiness as a critical focus for the coming year. “Much discussion and preparation have been in place to see more IPO listings in the Kingdom. This is likely to transpire in 2025; however, a lot of groundwork in preparing companies to be ‘IPO’ ready has been a catalyst to the venture market,” he said.
Al-Zubi forecasted growth in both early- and later-stage investments. “I foresee a continued shift toward larger, later-stage investments as more startups reach maturity.”
“Simultaneously, the emphasis on early-stage investments will grow exponentially, driven by the recognition that nurturing startups from their inception is critical to building a pipeline of scalable ventures,” he added.
Al-Zubi also anticipates continued momentum in pre-seed and seed funding, along with mentorship initiatives aimed at supporting emerging founders.
Bahoshy pointed to deep technology investment as another promising area. “In the ever-evolving Saudi Arabia ecosystem, it is also important to note that the foundations are being set for deep technology investment,” he said, referencing the efforts of institutions like KAUST, government programs such as MCIT, and international roadshows in regions like Singapore, South Korea, and London.
“This is an area to watch out for heading into 2025 as the AI interest globally looks to translate to venture investment in the Kingdom,” he added.
Entrepreneurial wave reshaping Saudi economy and global standing
Saudi Arabia’s business momentum is here to stay, experts believe
Kingdom’s commitment to fostering an entrepreneurial ecosystem has also enhanced its global competitiveness
Updated 01 January 2025
REEM WALID
RIYADH: Entrepreneurship in Saudi Arabia is no longer just a passing trend — it’s a driving force reshaping the Kingdom’s economy, aligned with the Vision 2030 agenda.
The Kingdom’s Center for International Communications reports that 42 percent of adults plan to launch their businesses within the next three years, marking the highest rate of entrepreneurial intent since 2016. This surge in entrepreneurial activity reflects the country’s growing commitment to economic diversification, with 25 percent of businesses in their early stages, operating for less than 42 months — a 33 percent increase from 2022.
The entrepreneurial boom is no accident. Saudi Arabia is actively diversifying its economy away from oil and aims to increase the private sector’s contribution to gross domestic product from 40 percent to 65 percent by 2030. A key part of this transformation involves fostering an economy driven by entrepreneurship and innovation, with the contribution of small and medium enterprises set to rise from 20 percent to 35 percent by the decade’s end.
“A significant portion of this change has been driven by regulatory reforms, which have created an environment conducive to starting companies. Additionally, various investment initiatives have made the Kingdom a more attractive market for setting up operations,” said Khaled Talhouni, managing partner at Nuwa Capital.
Saudi Arabia’s growing reputation as a friendly environment for early-stage businesses has been recognized by the Global Entrepreneurship Monitor, which recently ranked the Kingdom at the top for ease of starting a business and available opportunities.
Tushar Singhvi, deputy CEO and head of investments at Crescent Enterprises, said the government’s reform efforts, which have simplified business operations, attracted foreign investment, and nurtured a vibrant entrepreneurial ecosystem.
“The Ministry of Investments of Saudi Arabia has introduced policies permitting 100 percent foreign ownership in most sectors, significantly reducing barriers for international entrepreneurs. This policy, alongside incentives such as tax exemptions, subsidies, and expedited licensing procedures, has made Saudi Arabia a prime destination for global investment,” Singhvi said.
“The Kingdom’s strategic location, connecting markets across the GCC and beyond, offers access to over 60 million consumers. Infrastructure advancements, including NEOM and cutting-edge logistics networks, provide businesses with the tools to thrive in an increasingly competitive market,” he added.
Singhvi further said that by aligning policies with global best practices and embracing technology-driven solutions, Saudi Arabia has positioned itself as a global leader in terms of ease of doing business.
Riyadh Al-Najjar, chairman of PwC Middle East and KSA country senior partner, said entrepreneurs and investors now benefit from a streamlined process in establishing and scaling businesses in Saudi Arabia.
“Strategically located at the crossroads of major international markets, Saudi Arabia has solidified its position as a global hub for commerce and innovation. This advantage is further amplified by a suite of government-backed incentives and specialized support programs to attract high-caliber talent and innovative ideas, supported by a thriving venture capital landscape,” Al-Najjar told Arab News.
He also said: “For the second year in a row, Saudi Arabia has maintained its leadership in the MENA region, attracting SR1.5 billion ($399.3 million) in venture capital funding across 63 deals in just the first half of 2024. This achievement highlights the Kingdom’s success in cultivating a robust entrepreneurial ecosystem that continues to draw global investment and attention.”
Al-Najjar also praised the role of institutions like Monsha’at (General Authority for Small and Medium Enterprises), noting their proactive efforts in providing resources like funding, mentorship, and capacity-building programs that have enriched the entrepreneurial ecosystem.
“The Kingdom’s commitment to fostering an entrepreneurial ecosystem has also enhanced its global competitiveness, positioning it as a prime destination for investors and startups,” he added.
Key initiatives fueling growth
Saudi Arabia’s thriving startup ecosystem is the result of several strategic initiatives, including regulatory reforms, increased venture capital, accelerators, and ecosystem enablers.
Talhouni of Nuwa Capital pointed to relaxed restrictions on foreign-owned startups, which have made it easier for international companies to establish operations in Saudi Arabia. He also highlighted changes in capital market rules that benefit technology companies seeking public listings on the Saudi stock exchange.
“Notably, SAMA has played an instrumental role with its fintech sandbox, enabling startups to gain licenses easily and establishing a clear pathway for them to graduate to full-fledged licenses,” Talhouni added.
He also noted the importance of government-related entities like Saudi Venture Capital and the Jada Fund of Funds in developing the venture capital sector by investing in local and regional funds, which has spurred private investment in the region.
On the accelerator front, Saudi Arabia supports its entrepreneurial ecosystem through programs like Misk, Taqadam, and The Garage. These initiatives offer valuable resources to entrepreneurs, from mentorship to funding, helping bridge the gap between early-stage startups and commercialization.
Singhvi highlighted that Monsha’at has been essential in supporting startups through financing programs like the Kafalah Program, which helps address financing gaps for SMEs. “Events such as the Biban Forum further connect entrepreneurs with investors and global stakeholders, fostering collaboration.
Regulatory advancements, including the introduction of the Saudi Companies Law in January 2023, have simplified business operations and encouraged foreign investment. Platforms like Meras streamline business registration, significantly reducing startup barriers,” Singhvi said.
Venture capital activity in the Kingdom has surged, with $412 million raised across 63 deals in the first half of 2024. Singhvi also said the success of the Saudi Unicorn Program, which aims to propel startups to unicorn status, reinforcing the Kingdom’s innovation-driven ambitions.
Education and talent development also remain central to Saudi Arabia’s entrepreneurial strategy. Institutions like King Abdullah University of Science and Technology provide mentorship, incubation, and research opportunities, while accelerators such as Flat6Labs and Badir Technology Incubators help entrepreneurs scale their ventures effectively.
“These initiatives have positioned Saudi Arabia as a global leader in fostering entrepreneurship and innovation,” Singhvi said.
Al-Najjar praised Monsha’at for empowering SMEs through innovative financial support mechanisms and expert advisory services. He highlighted the Unicorn Support Program from the Ministry of Communications and Information Technology and the Misk accelerator initiatives as key drivers of new opportunities for startups.
The Garage, a technology park in Riyadh, exemplifies the Kingdom’s commitment to innovation. Home to over 230 startups with a collective valuation exceeding $216 million, it provides a collaborative environment for entrepreneurs to thrive.
“These initiatives, combined with strategic support and infrastructure from academia and sector-specific entities, have nurtured a vibrant and dynamic entrepreneurial ecosystem,” Al-Najjar added. “Giga-projects such as AlUla create unparalleled opportunities for entrepreneurial ventures, especially in high-growth industries like technology, tourism, and renewable energy.”
Beyond just growth
The impact of Saudi Arabia’s startup boom goes beyond mere economic expansion. Singhvi from Crescent Enterprises emphasized that startups are also contributing to the Kingdom’s sustainability goals, particularly in clean energy and smart infrastructure. Projects like NEOM, which has invested over $16 billion in the private sector in the last 18-24 months, are providing platforms for ventures that align with Vision 2030’s sustainability ambitions.
“Women-led startups have increased significantly, underscoring the alignment between Vision 2030’s objectives and the Kingdom’s proactive support for inclusivity alongside innovation and economic resilience,” Singhvi noted.
Al-Najjar described the Kingdom’s “entrepreneurial momentum” as a key catalyst for job creation and productivity enhancement. “By integrating national priorities with entrepreneurial initiatives, Saudi Arabia is building a blueprint for a diversified future,” he said, adding: “The progress achieved is not only a milestone for the Kingdom but also a global benchmark for aligning economic goals with sustainable growth.”
