Report Highlights Growth, Investment Trends, and Entrepreneurial Shifts by Endeavor Saudi Arabia

• 62% of tech startups in Riyadh were founded in the past five years, reflecting significant growth in the capital’s entrepreneurial ecosystem.
• Riyadh is the leading destination for venture capital investments in the MENA, with 51% of its entrepreneurs being newcomers.
• The city is emerging as a hub for DeepTech and AI, supported by national initiatives like “The Garage” and the “Relocate Initiative.”

Riyadh is rapidly emerging as a key player in the global startup ecosystem, attracting founders, investors, and innovators at an unprecedented pace. According to a newly released report, “Riyadh: An Emerging Platform for Entrepreneurs”, the city has witnessed remarkable entrepreneurial activity, with startups founded in the past five years now making up 62% of Riyadh’s tech ecosystem.

The study, developed by Endeavor Saudi Arabia and sponsored by The Garage, provides deep insights into the trends shaping the Kingdom’s entrepreneurial landscape. It highlights Riyadh’s growing role as a regional hub for high-growth startups, backed by strong government support, a dynamic investor landscape, and an expanding talent pool.

Key Findings from the Report

A Thriving Entrepreneurial Scene

• 51% of Riyadh’s tech entrepreneurs are newcomers, proving the city’s attractiveness to regional and international founders.
• 62% of Riyadh’s startups have been founded in the last five years, signaling a rapid expansion of the ecosystem.

Investment & Economic Impact

• Riyadh is now the #1 destination for venture capital funding in MENA, highlighting the strength of Saudi Arabia’s investor landscape.
• 41% of total startup funding came from Saudi-based investors, demonstrating strong confidence in the local ecosystem.
• Startups in Riyadh contribute 4% to the services sector GDP and have created over 4,000 jobs.

Opportunities & Challenges

Talent Acquisition

• 65% of entrepreneurs are actively seeking specialized talent, particularly in technology and executive leadership.
• Riyadh’s STEM-focused universities and government talent development programs are enhancing the future talent pipeline.

Market Adaptation & Cost Management

• 80% of startups recognize the need for strategic financial planning.
• Entrepreneurs are leveraging government incentives and adopting cost-optimization strategies to sustain growth.

Global Business Hub Potential

• With 62% of startups founded recently, entrepreneurs are working to strengthen their local presence.
• Building strong networks, engaging with government initiatives, and using local market insights are crucial for long-term success.

Market Integration & Customer Engagement

• 68% of founders see Riyadh’s large consumer base as a major advantage.
• Startups are adapting strategies to align with Saudi Arabia’s digital economy and to grow in B2B and B2C sectors.

Future of Innovation & Technology

• Riyadh is quickly positioning itself as a hub for DeepTech, AI, and next-generation industries.
• National programs such as “The Garage” and the “Relocate Initiative” support global startup attraction and innovation.

Positioning Riyadh in the Global Startup Landscape

With Saudi Arabia leading the MENA region in venture capital funding, Riyadh is solidifying its place as a regional hub for innovation and entrepreneurship. Entrepreneurs and investors alike are increasingly viewing the city as a strategic launchpad for regional expansion and long-term growth.