JEDDAH: Ƶ has reached a key milestone in the global startup scene, with Riyadh climbing 60 places in just three years to rank 23rd among the top 100 emerging ecosystems, according to new data.
The 2025 Global Startup Ecosystem Report, published by Startup Genome in collaboration with the Global Entrepreneurship Network, highlights the city’s transformation into a “launchpad” for companies looking to gain access to the Gulf Cooperation Council market that is valued at more than $2 trillion.
Riyadh also ranks third in the Middle East and North Africa for startup funding, reflecting a sharp rise in deal volume.
Ƶ’s startup ecosystem is rapidly evolving, driven by Vision 2030, strong government support, and rising investor interest.
Riyadh’s emergence as a leading innovation hub and strategic gateway to the broader GCC market reflects the Kingdom’s ambitions to diversify its economy, attract global talent, and foster high-growth sectors, including fintech, artificial intelligence, and digital infrastructure.
The analysis notes that over $2.6 billion in venture capital funding has flowed into the Saudi market since 2018, driven by government-backed funds, including the Saudi Venture Capital Co., Jada, and the Public Investment Fund.
The Kingdom ranked third globally in funding volume and investment-to-impact ratio, and fourth in talent availability. Shuttertstock
While global ecosystems grapple with declining investment and exit slowdowns, the report highlights the Gulf region, particularly Riyadh, as one of the world’s most resilient and forward-looking innovation corridors, gaining momentum as a stable and fast-growing hub for entrepreneurship.
Samantha Evans, MENA managing director at Startup Genome, said: “The Gulf is one of the few markets in the world where ambition, alignment, and execution converge,” adding that it is “not a speculative bet — it’s a strategic inflection point.”
In Ƶ, Vision 2030 programs such as Monsha’at and CODE are “designing policy architectures to enable them (startups) to scale globally.” The UAE, through platforms like Hub71, DIFC Innovation Hub, and national sandbox frameworks, continues to attract “top-tier founders, Series A companies, and emerging technologies,” the study noted.
Ƶ’s performance stands out across multiple metrics. The Kingdom ranked third globally in funding volume and investment-to-impact ratio, and fourth in talent availability, reflecting its ability to attract and retain entrepreneurial expertise. It also posted the second-highest performance in the MENA region, according to the report.
Key growth drivers include increased venture capital activity, enhanced entrepreneurial infrastructure, and rising investment in emerging technologies. Government-backed initiatives, particularly through Monsha’at, have strengthened the ecosystem, improved regulation, and boosted the contribution of small and medium-sized enterprises to the national economy in line with Vision 2030 targets.
The study identifies high-growth sectors fueling the Kingdom’s ascent, including artificial intelligence, fintech, cybersecurity, smart cities, infrastructure, and digital health, all of which align with the nation’s broader economic transformation.
“Ƶ has made significant strides to support innovation, drive economic diversification, and empower a new generation of entrepreneurs,” said Khaled Sharbatly Chairman of the National Entrepreneurship Committee Khaled Sharbatly. “We are committed to positioning Ƶ as a global hub for entrepreneurship and innovation.”
Riyadh, described in the report as “not just the capital of Ƶ — it’s a launchpad,” now hosts the regional headquarters of global firms such as Google Cloud, Amazon, and SAP — a sign of growing global confidence in the Kingdom’s innovation environment.
The city is characterized as a “fintech powerhouse,” with “over 200 fintechs now operating in the Kingdom,” supported by regulatory efforts from the Saudi Central Bank and Fintech Saudi.
Other sectors, such as cybersecurity, logistics, and education tech, are also thriving, with startups including Mozn, Salasa, and Diggipacks advancing through “strategic partnerships and government procurement pipelines,” as per the analysis.
Riyadh’s founder-friendly ecosystem is further supported by the Ministry of Investment and the Ministry of Communications and Information Technology, which offer 100 percent foreign ownership, fast licensing, and innovation-friendly regulations.
Programs like CODE and the Digital Government Authority sandboxes help “speed up time-to-market for new technologies.”
According to the report, startups are encouraged to relocate to Riyadh due to its direct access to major enterprise buyers, including sovereign wealth funds, ministries, and conglomerates. Government entities such as PIF, STC, and Aramco are actively partnering with and investing in emerging companies.
According to the Saudi Press Agency, this “notable progress reflects the Kingdom’s rapidly evolving entrepreneurial environment, marked by strong growth in venture capital, the expansion of startup infrastructure, and rising levels of innovation and investment in emerging technologies.”
The report draws on data from over five million startups across more than 350 global ecosystems, offering insights into the trends and policies shaping the future of innovation worldwide.
In the organization’s 2024 report, Riyadh ranked fourth among the top five startup ecosystems in the MENA region, with Jeddah and Alkhobar also featured on the list.
