Saudi Arabia’s capital, Riyadh, has surged 60 places in the last three years to rank 23rd among the top 100 emerging startup ecosystems worldwide, according to the Global Startup Ecosystem Report 2025 by Startup Genome and the Global Entrepreneurship Network. This remarkable rise highlights Riyadh’s rapid progress driven by venture capital growth, infrastructure development, and increasing innovation in emerging technologies.
Government Support Fuels Growth
A key driver behind this success is strong government backing, particularly from the Small and Medium Enterprises General Authority (Monsha’at), which fosters an integrated entrepreneurship environment through initiatives, regulatory enhancements, and programs aimed at startup growth. These efforts support Saudi Vision 2030’s goal to increase the private sector’s GDP contribution.
Khaled Sharbatly, chairman of the National Entrepreneurship Committee, said, “Saudi Arabia has made significant strides to support innovation, drive economic diversification, and empower a new generation of entrepreneurs. We are committed to positioning Saudi Arabia as a global hub for entrepreneurship and innovation.”
Regional Leadership and Sector Strengths
Riyadh’s startup ecosystem recorded the most significant growth in the MENA region, moving from the 51-60 range in 2024 to the 21-30 range in 2025, highlighted by major high-value exits like rasan.co’s $1.1 billion deal. The city ranked third in funding volume relative to impact and fourth in availability of skills, underscoring its ability to attract and nurture talent.
Key high-potential sectors propelling Riyadh’s ecosystem include artificial intelligence, FinTech, cybersecurity, smart cities, infrastructure, and digital health, which are pillars of the Kingdom’s economic transformation.
Other MENA players in the ranking are Dubai (19th), Abu Dhabi (51-60 range), and Cairo (71-80 range).
GCC Emerging as a Global Innovation Hub
Despite global challenges in late-stage funding, GCC countries—led by Saudi Arabia and the UAE—are doubling down on startup investment and policy frameworks to enable global scaling. Saudi Arabia’s Vision 2030 initiatives like Monsha’at and CODE are catalyzing this shift.
Samantha Evans, managing director for MENA at Startup Genome, notes: “The Gulf is one of the few markets in the world where ambition, alignment, and execution converge… Governments act as accelerators, capital is available and patient, and founders solve for scale from day one.”
Strategic Capital Mobilization
The region is channeling public capital into AI, deep tech, climatetech, FinTech, and digital infrastructure. Abu Dhabi’s $100 billion AI commitment and Saudi Arabia’s $40 billion tech fund ambitions reflect a long-term national strategy.
Since 2018, Riyadh has attracted over $2.6 billion in VC funding, supported by government-backed funds like SVC, Jada, and PIF. With global corporations setting up regional hubs and local startups scaling internationally, Saudi Arabia is shifting from an emerging market to a leader in innovation, blending state support, capital strength, and commercial viability.
