Why tech startups should choose Riyadh as their MENA launchpad

Riyadh has become a magnet for multinational corporations, with around 600 foreign companies establishing their regional headquarters in the city. (SPA)
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Updated 21 June 2025
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Why tech startups should choose Riyadh as their MENA launchpad

  • Saudi Arabia offers startups access to a high-spending consumer base and a gateway to regional expansion

RIYADH: Riyadh is becoming a leading destination for tech startups in the Middle East, fueled by Saudi Arabia’s Vision 2030 reforms, an advanced infrastructure, and robust government-backed incentives.

The Saudi information and communication technology market is projected to reach $54.90 billion in 2025 and $82.51 billion by 2030 at a compound annual growth rate of 8.49 percent, according to an analysis by Mordor Intelligence.

This growth highlights the Kingdom’s increasing prominence as a regional innovation hub.

At the heart of this transformation is Saudi Arabia’s Vision 2030 economic diversification plan, which has placed technology at the forefront of its strategy. Major initiatives, such as NEOM, a $500-billion smart city powered by artificial intelligence and renewable energy, and Riyadh Tech Valley, a dedicated hub for AI, the Internet of Things, and robotics startups, are driving this momentum.

Government programs such as the Saudi Unicorns Program and Tech Growth Financing provide critical support for scaling businesses, further cementing Riyadh’s appeal. 

Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East, highlighted three key operational factors behind Riyadh’s startup success. “First, Saudi Arabia’s advanced digital infrastructure has significantly accelerated startup growth,” he told Arab News in an interview. 

The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default.

Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA

Government-led digital transformation initiatives have created a robust technological backbone, with 14 percent of Saudi broadband users enjoying speeds over 1G bits per second — far surpassing the 4 percent seen in markets like the UK. “This infrastructure supports rapid innovation and scaling up,” he added.

The second factor, according to Durou, is the Kingdom’s strategic focus on developing local talent pipelines. “As many as 86 percent of Saudi universities now provide undergraduate programs in AI, 56 percent offer master’s degrees, and doctoral opportunities stand at 9 percent,” he noted.

The Deloitte leader emphasized that institutions like King Abdullah University of Science and Technology play a pivotal role in supplying startups with skilled, technology-ready talent.

Lastly, Durou pointed to the Kingdom’s supportive business environment, which includes government incentives, substantial funding mechanisms like venture capital and private equity, and vibrant incubator ecosystems such as Garage 46 and Impact 43.

He also shed light on the Kingdom’s high consumer adoption rates of advanced technologies, particularly Gen AI. 

Deloitte’s recent survey outlined Saudi Arabia’s high awareness of the technology at 76 percent, with usage frequencies of 20 percent daily and 32 percent weekly — significantly higher than the UK, he added. 

When comparing Riyadh’s startup scaling environment to Dubai’s, Durou observed distinct strengths in each. 

“In Riyadh, government-driven initiatives such as Saudi Vision 2030 have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market,” he said, adding that “extensive support from local incubators, accelerators, and dedicated funding programs serve to further accelerate product development and launch timelines.”

Durou noted that customer acquisition costs in Riyadh are comparatively lower, driven by the ongoing surge in digital adoption among consumers and supported by targeted government-backed marketing initiatives. 

The fintech sector, in particular, benefits from robust governmental support, which helps meet rising local demand. Meanwhile, e-commerce growth is further propelled by high Internet penetration and shifts in consumer behavior.

“Dubai offers rapid market entry facilitated by the globally recognized Dubai International Financial Centre and a mature, efficient regulatory environment. Although high market competition can drive up customer acquisition costs in Dubai, it’s balanced by an expansive and diverse customer base,” he explained.

Durou highlighted that the DIFC ecosystem offers fintech startups access to government incentives, which greatly enhance their growth prospects. He also emphasized that Dubai’s strategic geographic position as a global trade hub, along with its advanced logistics and warehousing capabilities, significantly accelerates the expansion of e-commerce.

Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA, shed light on the legal structures that are proving effective in the Kingdom.

“Saudi startups have historically preferred an offshore ring-fencing of intellectual property assets by holding and protecting intellectual property interests in a standalone sister company based in an offshore jurisdiction,” he explained to Arab News.

“This has helped startups in scaling globally and simplifies exit strategies,” Al-Anizy said. 

Government-driven initiatives have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market.

Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East

However, with stronger business and intellectual property laws, there is increasing trust in local company structures like the Simplified Closed Joint Stock Co.

Al-Anizy also highlighted the advantages of Riyadh’s bankruptcy laws for tech startups facing liquidity challenges. The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default, he said.

The law was introduced to provide guidance on the adoption and implementation of bankruptcy proceedings. Despite its name, the primary objective of the Bankruptcy Law is not liquidation but rather the rescue of insolvent businesses through reorganization and financial restructuring.

Al-Anizy said that this sophisticated regime demonstrated in recent large-scale restructurings, has garnered recognition from founders and investors alike. On the dispute side, mediation and the Saudi Center for Commercial Arbitration are becoming preferred avenues for resolution.

For foreign founders setting up their MENA Headquarters in Riyadh, Al-Anizy stressed the importance of clear contractual considerations. “Founders having an unclear picture of their share cap table, equity vesting, or the conversion of any issued SAFE/KISS notes is an easily avoidable way to lose investor confidence,” he warned.

A Simple Agreement for Future Equity is an investment instrument that allows startups to raise capital without immediately determining a valuation, converting it into equity upon a future-priced round or liquidity event. Similarly, a Keep It Simple Security operates as either a convertible note or a SAFE-like agreement, offering standardized terms for early-stage funding.

Both are designed to streamline early investments while deferring valuation discussions, but founders must track their terms, such as discount rates, valuation caps, and conversion triggers, to maintain transparency with investors.

Al-Anizy also advised explicit contractual clauses to ensure intellectual property rights are clearly vested in the company, safeguarding the business and maintaining investor trust.

Riyadh has become a magnet for multinational corporations, with around 600 foreign companies establishing their regional headquarters in the city since the launch of the Saudi Program for Attracting Regional Headquarters in 2021.

Spearheaded by the Ministry of Investment and the Royal Commission for Riyadh City, this initiative is a cornerstone of Vision 2030’s goal to position Saudi Arabia as a global business hub.

The program offers compelling incentives, including a 30-year tax relief package with 0 percent corporate and withholding taxes, streamlined setup processes, and access to world-class infrastructure.

Riyadh’s strategic location at the crossroads of Asia, Africa, and Europe, combined with its skilled workforce and economic stability, has made it the top choice for multinationals looking to expand in the region.

Riyadh’s appeal is further bolstered by business-friendly policies, including 100 percent foreign ownership in key sectors, tax incentives, and streamlined licensing through the Saudi Business Center. Startups also benefit from partnerships with major corporations like Aramco and STC, as well as accelerator programs from Flat6Labs and 500 Global. 

With a population of 36 million and the largest economy in the Middle East and North Africa, Saudi Arabia offers startups access to a high-spending consumer base and a gateway to regional expansion. The Kingdom’s advancements in technology were recognized in the 2024 Global Innovation Index, where it secured the 47th spot among 132 countries.

Events such as the LEAP Tech Conference and Riyadh Season continue to draw global investors, while local success stories — from Tamara, Saudi Arabia’s first fintech unicorn delivering payments and banking, to Salla, an e-commerce platform empowering SMEs with digital storefronts — demonstrate Riyadh’s potential as a launchpad for high-growth companies.


Youth-led businesses in Saudi Arabia account for over a third of all commercial registrations

Updated 36 sec ago
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Youth-led businesses in Saudi Arabia account for over a third of all commercial registrations

RIYADH: Saudi youth-owned businesses now represent 38 percent of the Kingdom’s total active commercial registrations as of the second quarter of this year, according to the Ministry of Commerce.

The fastest-growing sectors among the 474,000 youth-led businesses include app development, which led the way with 28 percent annual growth resulting in 18,780 commercial permits. Artificial intelligence technologies closely followed, with a 34 percent increase, reaching 14,409 registrations.  

The e-gaming industry also showed remarkable progress, expanding by 32 percent to 8,260 permits, while film, video, and TV production grew by 20 percent, totaling 5,752 registrations by mid-2025.

Saudi Arabia has a predominantly young population, with the latest census data indicating that individuals under the age of 30 constitute 62.8 percent of the population.

Through public-private partnerships and targeted programs, the nation is equipping young Saudis with digital literacy, entrepreneurial skills, and industry-specific expertise in high-growth sectors like AI, renewable energy, and tourism. 

Private sector giants, including PwC, NEOM, Aramco, and Red Sea Global, are collaborating with government initiatives to equip Saudi youth with industry-relevant expertise.

Programs such as PwC’s Hemam training, Red Sea Global’s leadership programs, and vocational training schemes ensure hands-on experience, aligning education with labor market demands.

Incubators like The Garage foster startup innovation.

However, challenges persist in aligning education with labor market needs, necessitating ongoing cooperation between businesses and academia to sustain this talent pipeline. 

PwC’s Riyadh Al-Najjar emphasized in an interview with Arab News in January that an “entrepreneurial mindset” is critical for private sector growth, while Red Sea Global’s Zehar Filemban highlighted the need for adaptability in a fast-evolving job market. 

The government is addressing these needs through vocational training, Saudization programs, and incentives to attract and retain skilled professionals.


Egypt’s mineral revenues rise 131% to $446m on strong gold output, says minister

Updated 7 min 50 sec ago
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Egypt’s mineral revenues rise 131% to $446m on strong gold output, says minister

  • Gold and silver output reached 640,000 ounces
  • Ore and mineral production rose to 26 million tonnes

RIYADH: Egypt’s revenues from mineral wealth development jumped 131 percent year on year to nearly $446 million in fiscal year 2024/2025, driven by strong growth in gold and silver production. 

Speaking at the Egypt Mining Forum 2025, Minister of Petroleum and Mineral Resources Karim Badawi said, gold and silver output reached 640,000 ounces during the year, a 14 percent increase from the previous period, generating $1.54 billion in sales, up 57 percent annually. 

The gains were attributed to higher production volumes and stronger export performance, according to his statement on Facebook. 

Egypt’s mining sector is undergoing a major transformation under the Vision 2030 agenda, as the government seeks to position the country as a regional hub for mineral exploration while boosting its gross domestic product contribution through sustainable and environmentally responsible practices. 

“Egypt is a nation distinguished by its unparalleled strategic location and expansive infrastructure. Our rich legacy of mineral resources includes gold, copper, silver, zinc, platinum, as well as a diverse range of other precious and base metals,” Badawi said. 

The Ministry of Petroleum and Mineral Resources signed a framework agreement for mine exploitation with the Mineral Resources and Mining Industries Authority and Canada’s Barrick Mining Corporation on the sidelines of the Egypt Mining Forum 2025 in Cairo. Egypt’s State Information Service

He added: “These enormous potentials are backed by the Egyptian government’s economic reform program, aimed to achieve economic stability, attract investments, and enhance market attractiveness, thus contributing to strengthening Egypt’s position as a distinctive and exceptional destination for international investors and placing it on the global mining investment map, in line with the Sustainable Development Strategy.” 

According to the minister, ore and mineral production rose to 26 million tonnes, marking a 39 percent increase from the previous year. Egypt also exported 1.4 million tonnes of ores and mining products in 2024/2025, generating $52.5 million in export revenues. 

During the forum, the ministry signed two agreements with major international mining companies to boost exploration efforts. 

One licensing contract was signed with Centamin Central, a subsidiary of South African-based AngloGold Ashanti, for the exploration of gold and associated minerals, according to Egypt’s State Information Service. 

The second agreement, signed with Canada-based mining giant Barrick, aims to pave the way for expanded collaboration and exploration activities in the country. 

“This step clearly demonstrates the strong desire of international companies to expand their investments in the Egyptian mining sector, which serves as global proof of major international companies’ confidence in Egypt’s investment climate, reflecting the success of the state’s policy in attracting foreign investments,” Badawi said. 


Hotel spending drives Saudi POS transactions to $3.5bn

Updated 48 min 15 sec ago
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Hotel spending drives Saudi POS transactions to $3.5bn

RIYADH: Hotel spending in Saudi Arabia increased by 8 percent in the week ending July 12, helping total point-of-sale transaction values reach SR13.12 billion ($3.5 billion).

The latest data from the Kingdom’s central bank, SAMA, revealed that the sector recorded SR281.56 million in transaction value, while the number of payments rose 4.6 percent to 839 million.

The overall POS value for the week dipped by 8.2 percent, with the number of transactions dropping by 3 percent to 223.57 million.

According to SAMA’s bulletin, the education sector saw the largest decrease, dropping by 27.6 percent to SR102.21 million. Spending on miscellaneous goods and services ranked next, decreasing 15.6 percent to SR1.51 billion, but still accounting for the third-largest share of the POS value.

Restaurants and cafes, the division with the most significant share of total POS value, recorded a 1.7 percent decrease to SR1.92 billion, while the food and beverages sector saw a 13 percent decrease, totaling SR1.84 billion and claiming the second-largest share of this week’s POS.

The top three categories accounted for approximately 40.2 percent of the week’s total spending, amounting to SR5.28 billion.

Other smallest spending drops were in gas stations, slipping by 2.6 percent to SR948.99 million, and spending on building materials, which decreased by 3.7 percent to SR330.83 million.

The health and furniture sectors also saw downward changes, decreasing by 7.6 percent and 4.9 percent to reach SR805.09 million and SR275.70 million, respectively. 

Spending on clothing and footwear dipped by 7.3 percent to SR827.14 million, followed by a 6.9 percent decrease in spending on transportation.

Expenditure on jewelry followed the trend, declining 7.9 percent to SR305.49 million.

Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.47 billion, an 8.1 percent decrease from the previous week. 

Jeddah followed closely with a 7.9 percent dip to SR1.89 billion, while Dammam ranked third, down 7.9 percent to SR626.13 million.

Makkah saw the smallest decrease, inching down 1.1 percent to SR530.71 million, followed by Abha with a 3.6 percent decrease to SR209.73 million. 

Hail recorded 3.99 million deals in activity volume, down 5.3 percent from the previous week, while Tabuk reached 4.57 million transactions, dropping 15.5 percent.


Oil Updates — prices gain on summer demand expectations despite wider economy woes

Updated 16 July 2025
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Oil Updates — prices gain on summer demand expectations despite wider economy woes

  • China data proves to be less bearish
  • Some see uptrend as temporary on limited shifts in fundamentals

SINGAPORE: Oil prices rose on Wednesday, boosted by expectations of firm summer demand in the world’s two largest consumers, the US and China, though gains were capped by analysts’ caution about the wider economy.

Prices have seesawed in a tight range as signs of steady demand from an increase in travel during the Northern Hemisphere summer have competed with concerns that US tariffs on trading partners will slow economic growth and fuel consumption.

Brent crude futures rose 36 cents, or 0.5 percent, to $69.07 a barrel by 8:46 a.m. Saudi time. US West Texas Intermediate crude futures were up 47 cents, or 0.9 percent, to $66.99.

That reversed two days of declines as the market downplayed the potential for supply disruptions after US President Donald Trump threatened tariffs on purchases of Russian oil.

Major oil producers are pointing to signs of better economic growth in the second half of the year while data from China showed consistent growth.

“Strong seasonal demand is currently providing upward momentum to oil prices, as summer travel and industrial activity peak,” LSEG analysts said in a note.

“Increased gasoline consumption, especially in the US during the Fourth of July holiday period, has signalled robust fuel demand, helping offset bearish pressures from rising inventories and tariff concerns.”

China data showed growth slowed in the second quarter, but less than feared, in part because of frontloading to beat US tariffs. That eased some concerns about the economy of the world’s largest importer of crude.

The data also showed that China’s crude oil throughput in June jumped 8.5 percent from a year earlier, indicating stronger fuel demand.
However, some analysts saw the price rebound as temporary.

Much of the steadying of crude markets after two volatile sessions resulted from a mild technical correction rather than any significant shift in underlying fundamentals, said Phillip Nova’s senior market analyst Priyanka Sachdeva.

“Investors should monitor inflation and interest rate expectations in the United States as Trump’s continued push for broader tariffs could be inflationary and could dampen fuel demand in the medium term,” she said.

OPEC’s narrative remained more optimistic, Sachdeva said, pointing to the grouping’s monthly report on Tuesday that forecast that the global economy would do better in the year’s second half, boosting the oil demand outlook.

Brazil, China and India are exceeding expectations while the US and EU are recovering from last year, it added.

“The technicals may offer short-term relief, but fundamentally, the market lacks momentum,” Sachdeva said.

“Until clarity emerges on global growth, policy direction, and real demand recovery, especially from Asia, the crude complex looks set to drift sideways.” 


Bahrain, US firms sign $17bn in deals to deepen economic ties, news agency BNA says

Updated 16 July 2025
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Bahrain, US firms sign $17bn in deals to deepen economic ties, news agency BNA says

LONDON: Bahraini and US companies signed a series of agreements worth approximately $17 billion, aimed at strengthening economic ties and advancing cooperation across key sectors, Bahrain’s state news agency BNA reported on Wednesday.

The deals span sectors such as aviation, technology, industry, and investment.

Among the agreements, Cisco Systems will provide digital solutions for Bahrain’s government information and telecommunications infrastructure. Separately, plans were announced to establish an 800-km, or 497-mile, multi-fiber submarine cable linking Bahrain, Saudi Arabia, Kuwait, and Iraq to global networks, according to BNA.

Bahraini financial institutions and private-sector firms also announced plans to invest $10.7 billion in the US, while sovereign wealth fund Mumtalakat signed deals with several US companies to invest $2 billion in downstream aluminum projects, with a focus on job creation.

The signing ceremony took place during Bahraini Prime Minister and Crown Prince Salman bin Hamad Al Khalifa’s visit to Washington late on Tuesday.

He emphasized that expanding cooperation with the US could help create new economic opportunities through investment and collaboration.

In 2023, Bahrain and the US signed a security and economic agreement, and Bahrain continues to host the US Navy’s Fifth Fleet and the headquarters of the US Naval Forces Central Command.