RIYADH: Sentiments about Saudi Arabia becoming the next entrepreneurial hotspot are resonating as global venture capitalists gathered to discuss the region’s future. 

During a panel session at the Future Investment Initiative in Riyadh, industry leaders cited the Kingdom when asked which region is going to be the next Silicon Valley, as they drew comparisons between Saudi Arabia and the US.

“We’re really encouraged by what we’re seeing across the Middle East and North Africa region, especially in Saudi Arabia. The conditions here are very promising. We’ve seen similar patterns in the US over the last two decades, and, frankly, the world has become flat when it comes to entrepreneurship,” said Tony Florence, co-CEO at American-based venture capital firm NEA. 

During the panel, Florence emphasized that the Kingdom’s business environment is rapidly benefiting from the transformational journey of Vision 2030. 

“Over the next decade, I believe there will be rapid innovation and development in healthcare, tech, and AI (artificial intelligence). Saudi Arabia, in particular, is likely to be a net beneficiary of the trends we’ve been discussing over the past few days,” he added. 

Nabeel Koshak, CEO and board member of Saudi Venture Capital Co., echoed Florence’s remarks: “Many activities have evolved (in the startup sector). Actually, I’ve been part of this ecosystem building in Saudi Arabia since 2010 and it all trickles down to Vision 2030.” 

“Since the launch of Vision 2030, it was clear how important backing startups and SMEs was for job creation, developmental metrics and impact and commercial value,” Koshak added. 

He further said: “If we compared 2018 to 2023, it was only $60 million of deployed capital in 2018; it reached $1.4 billion in 2023, and that’s almost 21 multiple actually of the total amount deployed in Saudi Arabia.” 

He added that the Kingdom saw two venture-backed companies now planning to list on the public market, namely, Tamara and Tabby. 

“The exit landscape has also been improving significantly. We’ve seen nearly 100 M&A (mergers and acquisitions) and listing activities involving venture-backed companies across the MENA region. This momentum is attracting top-tier investors to Saudi Arabia, with major names like Wellington, Sequoia, General Atlantic, and TPG increasingly active in Saudi and across the broader MENA region,” he added. 

Sam Englebardt, founding general partner of New York-based VC firm Galaxy Interactive, also emphasized the Kingdom’s vast prospects. 

“Saudi Arabia has the potential to be a country with a large enough population to build and scale businesses domestically, supported by significant top-down backing. This extends across various industries, where the government’s ability to mandate changes and act swiftly creates substantial opportunities,” he said.