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Saudi industrial plan aims to drive $450bn in investments

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Saudi Arabia's Crown Prince Mohammed bin Salman officially approves the NIDLP initiatives. (Twitter: @emileforum)
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Saudi Arabia's Crown Prince Mohammed bin Salman arrives at the forum to oversee the signing of deals and memorandums of understanding. (Screenshot)
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Leading architects of Saudi Arabia’s economic transformation will gather on Monday in Riyadh to set out the next steps in the Kingdom’s development. (Supplied)
Updated 28 January 2019
Frank Kane
HALA TASHKANDI
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Saudi industrial plan aims to drive $450bn in investments

  • Crown Prince approves deals in mining, industry, logistics and energy as a key pillar of Vision 2030 strategy
Updated 28 January 2019
Frank Kane HALA TASHKANDI

RIYADH: Leading architects of Saudi Arabia’s economic transformation will gather on Monday in Riyadh to set out the next steps in the Kingdom’s development. Follow Arab News' live coverage below...

20:15 - The Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih inaugurated the TAADIN (Mining) Platform to serve mining investment and launched the pilot version of the National Geological Database to serve investors in mining fields.
The move coincides with the official launch of the National Industrial Development and Logistics Program (NIDLP), one of the most prominent programs toward achieving the Kingdom’s Vision 2030.
In statement to Saudi Press Agency (SPA), Al-Falih said, “since the approval of the Kingdom’s mining strategy, we have placed our interest in the mining sector, with its unlimited opportunities, to exploit diverse mineral resources in the Kingdom.”
He said the project emphasizes the need to provide the appropriate investment environment, in addition to overcoming all obstacles to the private sector and investors from inside and outside the Kingdom.
He said that the TAADIN platform aims to facilitate issuance and renewal of mining licenses, inquire about mining sites available in the Kingdom, improve the investor experience and link the investor to electronic systems, in order to cope with the digital transformation plan targeting the mining sector.

19:30 - The NIDLP is a historic event in the march of national development, affirmed the president and chief executive officer of Saudi Aramco.
In a press statement, Amin Nasser stressed that the Kingdom will witness a new era for industrial and economic prosperity due to the Kingdom’s unique strategic location as a hub among three major continents. 
He added that this program invests in the Kingdom’s global energy power in order to generate more investment opportunities as well as national and international partnerships.
“The National Industrial Development and Logistics Program is a comprehensive umbrella that integrates the efforts of many strategic sectors to establish an advanced future system that will enable the Kingdom to become a global leading player in the fields of infrastructure, industry, mining, logistics and supply chains by 2030. 
“Through strengthening the Kingdom’s status in the energy field, the program will achieve a qualitative leap in industrial exports in addition to creating huge opportunities for private sector, employment and innovation in technology and business,” he said.
The Aramco CEO added that the program also focuses on the qualitative aspects, including Fourth Industrial Revolution techniques, achieving the highest degree of efficiency, competitiveness and regional and international integration through developing the attractive environment for work, investment and talents. 
He affirmed that the Saudi Aramco will be a key pillar of the program.

19:00 - The announcements come to a close and Crown Prince Mohammed bin Salman officially approves the NIDLP initiatives.

18:50 - Arab News' very own Noor Nugali announcing some of the deals that have been signed during the NIDLP event...

18:35 - The program will see the signing of 66 agreements worth $55 million in four sectors: Industry, mining, energy, and logistic services. The energy minister has thanked the crown prince and promises anyone who invests in the Kingdom will not lose...

18:25: Energy Minister Khalid Al-Falih takes to the stage to give more detail regarding what deals will be signed and the numbers involved...

18:15 - Saudi Arabia's Crown Prince Mohammed bin Salman arrives at the forum to oversee the signing of deals and memorandums of understanding...

18:00 - The private sector panel has come to an end - Georges Schorderet, CEO of Almarai Company, saying: “The change the Kingdom has achieved over the past years is remarkable.”

Jim McIlvenny, CEO of Dow Chemical, added: “Reliable investment is the investment in local capabilities and new generations. We see a number of training governmental facilities meant to pave the way for young Saudis and foster their skills.”

Dr. Yasser Al-Obaida, CEO of Sudair Pharma said: “The governmental sector’s support was second to none in terms of licensing and regulations, we are very optimistic to see how NIDLP will unfold in the future.”

17:15 - Among the MoUs signed so far include agreements to establish a joint entity with the French company, Thales, with a localization rate of more than 50% in the military sectors and a commercial entity with CMI by 50% localization to provide multi-function armed towers with high capabilities for armored vehicles.
Investment agreements were also signed to establish and operate the Trans Asia Saudi plant in Jazan for basic and conversion industries and for an oil to chemicals conversion complex between Aramco and SABIC.
Saudi Aramco also signed another MoU with Saudi Customs to establish a deposit and re-export area in King Salman Energy City.
An MoU was signed between the High Chemicals Company and Eastman Chemical Company to establish a plant for hydrocarbon resins in the Kingdom.
Another agreement was signed between Ma’aden and Al-Sadiq to supply phosphate ore and to establish a complex for the manufacture of yellow phosphorus.

16:45 - Saudi Arabia is seeking to attract $427 billion of private sector investment of the total $450 billion 2030 target over the next ten years... 

16:00 - The third panel with a discussion about the private sector is about to begin, stay tuned for details...

14:50 - Saudi Arabia's deputy minister of energy, industry and mineral resources said the main priority of the program is to attract investments to the industrial sector.
Speaking to Al-Arabiya, Abdulaziz Al-Abdul Kareem said "at the moment Saudi Arabia has one of the best strategic locations for industry, as it is a gateway to Africa, Asia and Europe."
He explained that the Kingdom has set up mechanisms to facilitate procedures, from logistics and manufacturing to exporting to attract more investors, adding that they are seeking Foreign Direct Investment (FDI).
The minister said most of the investors at the moment are Chinese, and have been vetted by the Ministry of Interior.




Abdulaziz Al-Abdul Kareem, Deputy Minister of Energy, Industry and Mineral Resources.

14:45 - Export procedures today do not exceed 12 hours and do not require more than two documents to serve the manufacturers, the governor of the General Authority for Customs said at Saudi Arabia’s National Industrial Development and Logistics Program on Monday.

Twelve targets were set to meet the challenges of the export sector according to governor Ahmed Al-Qahbani. He explained that the customs authority is working on changing and enhancing competitive objectives to serve the private sector in the Kingdom and achieve the objectives of Vision 2030.

The governor also said that they hold periodic meetings with logistics companies and industrial committees to develop procedures.

"We have revised regulations in 2017 to serve the sector after important remarks and we are working on finding specialized studies for some of the target markets," Ahmed Al-Qahbani said.

14:10 - In an interview with Al Arabiya News Channel, Minister of Energy, Industry and Mineral Resources Khalid Al-Falih revealed that new memoranda will be announced at the event, most of which have not been announced in the initiatives sponsored by (NIDLP).

He said that agreements worth $62.6 billion will be signed on the sidelines of the event, including large deals in military industries, as well as a major agreement between Aramco and SABIC after reaching economic feasibility of the project to convert oil to petrochemicals, site selection and engineering studies.

Stimulus programs for the automotive manufacturing sector in Saudi Arabia at $10.6 bln are also expected to be announced, with a significant presence from the private sector and international companies to seize the opportunities offered by the national industrial development program.

13:30 - More details are emerging about the sheer scale of Saudi Arabia’s National Industrial Development and Logistics Program. By 2030, the program aims to stimulate private sector investments worth more than $450 billion, according to documents circulated today in Riyadh. The plan spans four sectors: Mining, industry, logistics and energy.

13:15 - Arab News reporter Frank Kane gets a look inside the “Deals Room” at today's conference...

12:45 - Aabed Abdullah al-Saadoun, deputy minister of Energy, Industry and Mineral Resources says the Saudi Arabian government will spend $27 billion in 2019 and 2020 as part of its industrial development programme.

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READ MORE: Saudi Arabian government to spend $27 billion on industry development plan

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10:34 - "This vision embodies the national industry development program and logistics best because it aims to integrate the capabilities of state agencies in the Kingdom and attract local and global investment," Al-Amudi says.

9:45 - Saudi Arabia's Minister of Transportation Nabeel Al-Amudi says that the Kingdom is working on more than 300 initiatives in the industrial development program and urges everyone to look into the program and invest.

9:00 - Saudi Arabia's Minster of Transportation Nabeel Al-Amudi is set to give the opening remarks at the event, followed by an introduction to NIDLP from its CEO and Deputy Minister of Energy, Industry and Mineral Resources Dr. Aabed Abdullah Al Saadoun.

8:00 - The National Industrial Development and Logistics Program, which has the aim of attracting $427 billion over the next decade from Saudi and global private-sector investors, is set to be launched today in Riyadh. The program is a key pillar of the Vision 2030 strategy aimed at diversifying the economy away from dependence on oil revenues and government spending.

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INTERVIEW: Saudi Arabia open for business, says SAGIA governor Ibrahim Al-Omar

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Energy Minister Khalid Al-Falih said earlier that the Kingdom would announce multibillion-dollar projects to boost the industrial, mining, energy and logistics sectors. The program was “quite ambitious but it is over a 10-year period so we have got the time to do it,” he said. 

“We will have a huge contribution from the private sector outside the Kingdom, but we will leave the biggest share for the Saudi private sector.”

The program is being launched at a crucial time in the Kingdom’s economic development, amid volatility in global energy markets and increasing concerns about world economic growth prompted by the trade confrontation between the US and China.

Ibrahim Al-Omar, the governor of the Saudi Arabian General Investment Authority (SAGIA), told Arab News at the World Economic Forum annual meeting in Davos last week: “Vision 2030 isn’t just for the Saudis, it’s for everyone. I think this is a golden opportunity for investors to join us on our journey.

“We’re in a massive transformation on a scale that has never been seen before. We’re changing economically, socially and culturally. We’re three years into a 15-year journey to transform and diversify our economy, and we’re doing that with such speed because we have a can-do, make-it-happen attitude.”

Topics: Vision 2030 National Industrial Development and Logistics Program Energy Minister Khalid Al-Falih Saudi industrial development program

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Saudi banks’ funding profile changing on rising mortgage demand: S&P Global

Updated 04 May 2024
Arab News
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Saudi banks’ funding profile changing on rising mortgage demand: S&P Global

Updated 04 May 2024
Arab News

RIYADH: Saudi banks are expected to pursue alternative funding strategies to deal with the rapid expansion in lending, fueled by the demand for new mortgages, according to S&P Global.
In its latest report, the credit-rating agency stated that the funding profiles of financial institutions in the Kingdom are set to undergo changes, primarily driven by a state-backed initiative to boost home ownership.
According to the analysis, mortgage financing represented 23.5 percent of Saudi banks’ total credit allocation at the end of 2023, compared to 12.8 percent in 2019.
“The ongoing financing needs of the Vision 2030 economic initiative and relatively sluggish deposits growth, is likely to incentivize banks to seek alternative sources of funding, including external funding,” said S&P Global.  
The report also predicted that this pursuit of external funding could potentially impact the credit quality of Saudi Arabia’s banking sector.
According to the US-based rating agency, lending growth among Saudi banks has outpaced deposits, with the loan-to-deposit ratio exceeding 100 percent in 2022, up from 86 percent at the end of 2019.
S&P Global expects this trend to persist, particularly with corporate lending playing a more significant role in growth over the next few years. “We consider Saudi banks are likely to turn to alternative funding strategies to fund that expansion,” the report said.  

HIGHLIGHTS

100%

According to the US-based rating agency, lending growth among Saudi banks has outpaced deposits, with the loan-to-deposit ratio exceeding 100 percent in 2022, up from 86 percent at the end of 2019.

It added: “We consider, however, that the risk created by the maturity mismatch is mitigated by the relative stability of Saudi deposits.”   The agency also predicted that Saudi banks’ foreign liabilities will continue to increase, rising from about $19.2 billion at the end of 2023 to meet the funding requirements of strong lending growth, particularly amidst lower deposit expansion.
The report highlighted that Saudi banks have already tapped international capital markets, and the credit rating agency expects this trend to continue for the next three to five years.
According to S&P Global, the Saudi banking system could transition from a net external asset position of SR42.9 billion, or 1.6 percent of lending, at the end of 2023 to a net external debt position within a few years.
In April, S&P Global, in another report, stated that banks in the Kingdom are anticipated to experience robust credit growth ranging between 8 to 9 percent in 2024.
The agency noted that this credit expansion will be propelled by corporate lending, fueled by increased economic activities driven by the Vision 2030 program.
Moreover, the report added that the Saudi government and its related entities are expected to inject deposits into the banking system, thereby supporting the credit growth of financial institutions in the Kingdom.

 

Topics: Saudi banks Saudi Arabia

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NEOM, Saudi Red Sea Authority sign MoU to develop marine tourism regulations

Updated 03 May 2024
Arab News
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NEOM, Saudi Red Sea Authority sign MoU to develop marine tourism regulations

  • The MoU’s goal is to enhance research, deliver innovation, and improve the visitor experience for tourists
  • The agreement reflects SRSA’s commitment to attracting investment in coastal tourism activities
Updated 03 May 2024
Arab News

NEOM: The Saudi Red Sea Authority and NEOM signed a memorandum of understanding on Friday to cooperate on developing legislation, regulations, and technology in marine tourism, reported the Saudi Press Agency.
The MoU’s goal is to enhance research, deliver innovation, and improve the visitor experience for tourists in Saudi Arabia’s existing, emerging, and future Red Sea coastal destinations.
SRSA Acting CEO Mohammed Al-Nasser and NEOM’s CEO Nadhmi Al-Nasr signed the partnership, which they hope will promote an exchange of expertise and enable the implementation of joint initiatives.
The agreement also reflects SRSA’s commitment to attracting investment in coastal tourism activities.
The partnership will further assist small and medium enterprises in the sector through administrative, technical, and advisory support.
Via this agreement, SRSA aims to integrate with relevant public, private, and third-sector entities to achieve one of the goals of Saudi Vision 2030, which is to develop coastal tourism as a valuable sector of the Kingdom’s economy.

Topics: Saudi Red Sea Authority NEOM

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World food prices up in April for second month: UN agency

Updated 03 May 2024
Reuters
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World food prices up in April for second month: UN agency

Updated 03 May 2024
Reuters

PARIS: The UN food agency’s world price index rose for a second consecutive month in April as higher meat prices and small increases in vegetable oils and cereals outweighed declines in sugar and dairy products.

The Food and Agriculture Organization’s price index, which tracks the most globally traded food commodities, averaged 119.1 points in April, up from a revised 118.8 points for March, the agency said on Friday.

The FAO’s April reading was nonetheless 7.4 percent below the level a year earlier.

The indicator hit a three-year low in February as food prices continued to move back from a record peak in March 2022 at the start of Russia’s invasion of Ukraine.

In April, meat showed the strongest gain in prices, rising 1.6 percent from the prior month.

The FAO’s cereal index inched up to end a three-month decline, supported by stronger export prices for maize. Vegetable oil prices also ticked higher, extending previous gains to reach a 13-month high due to strength in sunflower and rapeseed oil.

The sugar index dropped sharply, shedding 4.4 percent from March to stand 14.7 percent below its year-earlier level amid improving global supply prospects.

Dairy prices edged down, ending a run of six consecutive monthly gains.

In separate cereal supply and demand data, the FAO nudged up its estimate of world cereal production in 2023/24 to 2.846 billion metric tonnes from 2.841 billion projected last month, up 1.2 percent from the previous year, notably due to updated figures for Myanmar and Pakistan.

For upcoming crops, the agency lowered its forecast for 2024 global wheat output to 791 million tonnes from 796 million last month, reflecting a larger drop in wheat planting in the EU than previously expected.

The revised 2024 wheat output outlook was nonetheless about 0.5 percent above the previous year’s level.

Topics: FAO UN Food global prices

Material sector dominates TASI trading in first quarter of 2024

Updated 03 May 2024
Dayan Abou Tine
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Material sector dominates TASI trading in first quarter of 2024

Updated 03 May 2024
Dayan Abou Tine

RIYADH: The materials sector led trading on Saudi Arabia’s Tadawul All Share Index, accounting for approximately SR87 billion ($23.2 billion) or 15.11 percent of the market, according to TASI’s 2024 first-quarter report.

SABIC, the largest component of this sector, boasted a market capitalization of SR234.9 billion, with trading value reaching nearly SR7 billion.

The banking sector trailed with transactions valued at SR71.22 billion, comprising 12.37 percent of the market. Al-Rajhi Bank took the lead in market capitalization within the sector and secured the second spot in trade value totaling SR23.62 billion.

In a February report by Bloomberg, Al-Rajhi Bank, seen as an indicator of Saudi Arabia’s growth strategies, exceeded the performance of JPMorgan Chase & Co., exhibiting nearly a 270 percent surge in shares since the initiation of Vision 2030. It has outpaced both local and global competitors, including state-supported banks, emerging as the largest bank in the Middle East and Africa, boasting a market cap of around $95 billion.

According to Morgan Stanley analysts led by Nida Iqbal, as reported by Bloomberg, “We see it as a long-term winner in the Saudi bank sector… While Al-Rajhi is best placed for a rate-cutting cycle, we believe current valuation levels reflect this.” 

Gulf central banks, including Saudi Arabia’s, frequently align their policies with those of the Federal Reserve to maintain their currency pegs to the dollar. According to Bloomberg Intelligence senior analyst Edmond Christou, a reduction in Fed rates could potentially bolster Al-Rajhi Bank’s profitability and expansion, as it will encourage gathering cheap deposits while enabling it to issue debt at more attractive levels.

In this period, the energy sector secured the third position in terms of value traded, reaching SR55.4 billion. Saudi Aramco topped the list with a market capitalization of SR7.47 trillion and registered the highest value among companies traded on the index, totaling SR28.82 billion.

In March of this year, Aramco announced a net income of $121.3 billion for its full-year 2023 financial results, marking the second-highest in its history. Aramco credited these results to its operational flexibility, reliability, and cost-effective production base, underscoring its dedication to delivering value to shareholders.

Tadawul’s quarterly report also indicated that the transportation sector recorded the fourth-highest value traded at SR39.25 billion, equivalent to 6.82 percent of the market. Among the top performers in this sector was cargo firm SAL Saudi Logistics Services, ranking third in value traded on the TASI during this period, following Aramco and Al-Rajhi Bank, with a total value of SR22.74 billion.

SAL debuted on the main market of the Saudi Exchange in November last year. With aspirations to manage 4.5 million tonnes of air cargo by 2030, Saudi Arabia is empowering its logistics sector from a supportive role to a pivotal driver of economic growth.

SAL, in which the Saudi government holds a 49 percent stake through the Saudi Arabian Airlines Corp., experienced a 30 percent surge in its share price during its initial public offering, raising $678 million and becoming Saudi Arabia’s second-largest IPO of the year.

In a January report by Forbes, SAL’s CEO and Managing Director Faisal Al-Beddah emphasized the company’s potential to shape the future of logistics in Saudi Arabia and beyond. He stated: “Logistics is the backbone of any economy. Now we are ready. We have the rotation, we have the infrastructure, we have the regulations, and most importantly, we have the mindset and the technology for Saudi Arabia to be the leading connecting logistics hub in the region.”

The top gainer during this period in terms of price appreciation was MBC Group, with a quarter-to-date percentage change of 127.6 percent, according to Tadawul.

Saudi Arabia’s MBC Group, a media conglomerate, debuted as the first new listing on TASI in 2024. Its trading began on Jan. 8. The company raised SR831 million through its initial public offering.

Saudi Steel Pipes Co. in the materials sector was the second highest gainer, with price appreciating by 88.15 percent.

Etihad Atheeb Telecommunication Co. had a QTD price percentage change of 81.91 percent making it the third-highest gainer on the exchange during this period.

TASI concluded the first quarter of 2024 with a 3.6 percent increase, climbing by 435 points to reach 12,402 points.

Topics: TASI trading performance Quarterly report

Saudi startups raised $3.3bn in last 10 years, says report

Updated 03 May 2024
Nour El-Shaeri
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Saudi startups raised $3.3bn in last 10 years, says report

  • MAGNiTT report shows fintech emerged as the most funded sector in Kingdom
Updated 03 May 2024
Nour El-Shaeri

RIYADH: Startups in Saudi Arabia saw massive growth during the last decade raking in $3.3 billion in venture capital funding, according to a report issued by MAGNiTT.

The data platform, in its “10 Years Saudi Arabia Founders Report” sponsored by Saudi Venture Capital Co., provides an in-depth analysis of the backgrounds, experiences, and expertise of founders. 

“MAGNiTT initially published a report on founders in the MENA VC ecosystem in 2018, focusing on uncovering the DNA of successful entrepreneurs in the region. Today, in partnership with the Saudi Venture Capital Co., we present a comprehensive report on the founders of the top 200 funded startups in the Kingdom over the last ten years,” said Philip Bahoshy, CEO and founder of the platform. 

“By shedding light on founders’ experiences in the Saudi ecosystem, we aim to dispel myths around founders, empower aspiring entrepreneurs looking to establish their ventures in the Kingdom, guide government decision-makers in shaping policies conducive to innovation, and provide invaluable intelligence to investors seeking opportunities in the region,” he added. 

SVC CEO Nabeel Koshak emphasized the remarkable growth and dynamism in the Saudi startup landscape. 

FASTFACTS

Forty-four percent of these startups were launched by teams with two founding members, who together secured 53 percent of the total funds. 

Startups founded by a single individual accounted for 30 percent of the funded startups but only captured 15 percent of the funding in the last decade. 

Thirty-six percent of the 400 founders analyzed had at least 10 years of work experience before launching their respective startups.  

Fifty-nine percent of founders had technical education backgrounds, highlighting science, technology, engineering, and mathematics. 

Thirty-nine percent of founders held degrees in business, contrasting with the global average of 19 percent, according to an Endeavor Insight study. 

“The Kingdom’s strategic initiatives, driven by the Saudi Vision 2030, have laid a solid foundation for innovation, entrepreneurship, and investment. As a result, we have seen a surge in startup activity, with a growing number of ambitious founders seizing opportunities and driving innovation across various sectors,” he said. 

“The goal of the report is to provide policymakers, government officials, and investors with insights and data to inform strategic decisions and policies to further nurture the startup ecosystem for the next 10 years,” Koshak added. 

A decade of funding 

Compiling data from the 200 Saudi-based startups, which collectively raised a total of $3.3 billion from 2014 to 2023, the report highlighted that 44 percent of these startups were launched by teams with two founding members, who together secured 53 percent of the total funds. 

He further stated that with the significant support for innovation, the Kingdom is set to witness the emergence of more unicorns. 

In contrast, startups founded by a single individual accounted for 30 percent of the funded startups but only captured 15 percent of the funding in the last decade. 

Notably, 36 percent of the 400 founders analyzed had at least 10 years of work experience before launching their respective startups.  

The report also indicated a trend toward entrepreneurship among less experienced founders, with 66 percent being first-time startup founders and only 30 percent with previous regional startup experience. 

It revealed a significant gender disparity in the VC landscape within Saudi Arabia, with male founders comprising 94 percent of the total 400 individuals, while female founders accounted for only 6 percent.  

This gender gap is considerably wider than the global norms, where, according to research by Startup Genome conducted between 2016 and 2022, the average proportion of female founders in an ecosystem was 15 percent. 

Additionally, only 7 percent of solo founders were female, and there were no recorded startups with two or more female founders only.  

However, as the number of founders per startup increased, so did gender diversity, albeit slightly. In startups with three founders, 18 percent were of mixed gender, while in startups with four or more founders, the figure was 12 percent. 

Furthermore, 91 percent of male-only founded startups claimed 98 percent of total funding. Conversely, 3 percent of female-only founded startups accounted for 0.4 percent of the total funding. 

Founders' education 

The report further delved into the education qualification of founders revealing that 55 percent in the Kingdom had attained at least a bachelor’s degree.  

In terms of technical development, 59 percent of founders had technical education backgrounds, highlighting science, technology, engineering, and mathematics. 

Thirty-nine percent of founders held degrees in business, contrasting with the global average of 19 percent, according to an Endeavor Insight study. 

Over half of the 400 founders obtained their degrees internationally, while 22 percent held both international and local degrees. 

King Saud University, King Fahd University of Petroleum and Minerals, and King AbdulAziz University were among the most common institutions for startup founders. 

Seven of the top 10 universities of Saudi founders that raised funding were public institutions.

The top international schools of Saudi founders had Stanford and Harvard among the top choices, mirroring global trends. 

Professional experience 

Despite fintech being the most funded sector, only 7 percent of founders had experience in finance, and 18 percent in banking, which is lower compared to the 48 percent with backgrounds in information technology.  

Additionally, even fewer founders, only 12 percent, had experience in e-commerce, despite this industry accounting for the highest share of deals, 20 percent, closed by the top 200 Saudi startups. 

The report also revealed that 36 percent of the founders in Saudi Arabia are skilled professionals with over 10 years of experience before starting their businesses.  

Notably, Saudi Aramco was the most common previous employer among the funded founders, with 7 percent having worked there before launching their startups. 

Furthermore, McKinsey and Microsoft were among the top 10 companies where the 400 founders covered in this report had previously been employed.  

The majority of these founders held significant leadership roles, with 31 percent having served as a founder, co-founder, or board member. Only 4 percent originated from entry-level positions. 

The report also pointed out: “While Saudi Arabia has witnessed several serial entrepreneurs, 66 percent of founders in the last decade were first-time founders,” indicating a vibrant and growing entrepreneurial ecosystem. 

Topics: startups VC SaudiVision 2030

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