Investing in the future of Saudi innovation

The global narrative around innovation often focuses on well-established tech hubs such as Silicon Valley and Shenzhen. However, powerful innovation ecosystems are rapidly gaining attention elsewhere — and the proof is in the finance. 

At King Abdullah University of Science and Technology, we are engineering an innovation powerhouse — turning foundational science research into tangible businesses and attracting significant global investment.

The numbers speak for themselves. KAUST-affiliated startups have collectively raised over $1 billion in investments, co-investing alongside leading local and global firms. In 2024 alone, KAUST-affiliated startups raised over $150 million in investments, contributing to a total portfolio valuation now exceeding $2 billion. 

This growth is the direct outcome of a deliberate strategy to support our emerging entrepreneurs, push forward their research and development goals and establish product-market fit.

The funds raised highlight the growing appetite for investment in Saudi Arabia’s technology sector, and the increasing trust in our scientific capabilities. With access to venture capital and international partnerships, we are well-positioned to support early-stage businesses through our incubation programs and provide mentorship across the region.

And it’s not all theoretical. Our companies are actively scaling and moving toward industry, simultaneously aligning with regional and global economic and development ambitions. Born from KAUST’s labs, Edama is an organic waste recycling company that transforms discarded matter into high-value soil improvers for desert agriculture and has secured $5.6 million from the Saudi Investment Recycling Co. to expand its circular economy facilities. Edama exemplifies how deep tech, grounded in fundamental scientific research, can drive both environmental responsibility and economic growth.

Another example is Flynow. Having recently completed a successful $44 million funding round, Flynow is set to establish eCopter manufacturing in Saudi Arabia and the UAE. E-copters — electric vertical take-off and landing air taxis — offer a sustainable and efficient alternative to ground transportation. This venture represents a bold leap into the future of urban mobility and logistics, demonstrating a readiness to invest in advanced manufacturing capabilities with profound regional and global implications.

It is a testament to how our ecosystem nurtures ambitious projects, turning concepts into industrial-scale production while successfully attracting significant external investment.

And then there is Intelmatix, which raised $20 million to advance AI-driven business intelligence solutions and Rize, which recently raised $35 million to scale its “rent-now-pay-later” real estate platform in partnership with Aqar, the Kingdom’s largest property listing marketplace, demonstrating the broad applicability of our innovation.

KAUST’s innovation ecosystem has already supported 428 startups, created 6,661 direct jobs, and generated $925 million in revenue. 

Our portfolio of companies, spanning 27 countries, attract international talent and capital, highlighting Saudi Arabia’s rising appeal as a hub for deep-tech investment and entrepreneurship.

With economic diversification at the heart of Saudi Arabia’s Vision 2030, it’s imperative we move quickly to turn our knowledge into assets, creating sustainable economies for the future. We have world-class academic research; but our new business translation is critical for this national shift.

Crossing the $1 billion investment mark is a major milestone, demonstrating that Saudi deeptech is globally competitive. Looking ahead, we have forged four new international venture partnerships — with Techstars, NewLab, First Star Ventures, and Foundtech Labs — bringing fresh capital, global expertise, and strategic collaborations to Saudi Arabia’s expanding deeptech ecosystem.

For those tracking where smart money is heading, the story at KAUST shows that Saudi science and technology are gaining momentum with investors. It offers a blueprint for nations aiming to build sustainable economies that leverage local talent and expertise.

• Ian Campbell is vice president at KAUST Innovation.