As part of the reforms launched in the wake of Vision 2030, the new investment rules and regulations relating to company formation in Saudi Arabia have been liberalized, leading to an increase in startups in Saudi Arabia by foreigners and locals.
Saudi Arabia’s Vision 2030, a government development program aiming to achieve economic, social, and cultural diversification of the country, has set in motion a vibrant and sustainable environment for local and international businesses.
The Vision encompasses a holistic approach to development, steered by innovation, inclusivity, sustainability principles and critical reforms.
Saudi Arabia actively supports startups through various programs and initiatives primarily driven by its “Vision 2030” plan. These initiatives were instrumental in establishing many startups in Saudi Arabia.
Startup Ecosystem Saudi Arabia
Under its Vision 2030, substantial investment for strengthening the startup ecosystem in Saudi Arabia is sought for wide-ranging business sectors like renewable energy, transport and logistics, tourism, digital infrastructure and healthcare. The increased business opportunities have encouraged many foreign investors to start a business in Saudi Arabia.
Other areas where significant investments have been made include technology and innovation, such as FinTech and Information and Communication Technology (ICT). Leisure and hospitality sectors are also being developed to enhance Saudi’s quality of life and attract international tourists.
Giga Projects like Qiddiya Entertainment City and NEOM, large infrastructure projects like the Riyadh Metro and the Red Sea Project, and special economic zones like the King Abdullah Economic City are vital in attracting investments.
Key Programs and Initiatives for Startups in Saudi Arabia:
- Saudi Unicorns Program: A dedicated initiative to nurture high-growth potential startups to create “unicorns” (startups valued at over $1 billion).
- Tech Growth Financing: Programs providing financial support to startups through loans, grants, and equity investments.
- Venture Capital Funds: Establishment of dedicated venture capital funds by government entities and private investors to fund promising startups.
- Startup Accelerators and Incubators: They help create physical spaces and are support programs to help startups develop their ideas and businesses.
- Misk Accelerator: Provides entrepreneurship education and master classes through the Misk Startup School, showing access to knowledge from successful global founders.
- BIAC: A prominent organization managing business incubators and accelerators, offering support services to startups and SMEs.
- TAQADAM: Focused on rapid business growth for founders through non-dilutive funding and mentorship.
- ZID: A platform enabling retailers to launch their online stores, facilitating e-commerce development efficiently.
- Misk Startup School master classes: Online courses designed to educate aspiring entrepreneurs on key entrepreneurship topics through insights from successful founders.
- ICT Sector Focus: Saudi Arabia actively promotes the information and communications technology sector, creating opportunities for startups in this field.
- Healthcare Focus: Saudi Arabia is actively investing in healthcare, providing opportunities for startups in e-health services and private hospital operations.
- Monsha’at (The General Authority for Small and Medium Enterprises): This program offers SMEs funding, training, and resources.
- Saudi Industrial Development Fund (SIDF): SIDF funds industrial projects with special schemes for startups in Saudi Arabia..
- Regulatory Reforms: Simplifying business registration processes and creating favourable regulatory environments for startups.
- Digital Infrastructure Development: Investing in advanced digital infrastructure to facilitate innovation and connectivity.
- Talent Development Programs: Initiatives to up-skill the local workforce and attract tech talent to the Saudi startup ecosystem.
Eligibility Criteria for Grants
To be eligible for startup grants in Saudi Arabia, the businesses must do the following:
- They should register legally in Saudi Arabia.
- The business should operate in priority sectors like technology, manufacturing or green energy.
- A viable business plan to be submitted demonstrating growth potential.
- Meet specific criteria laid down by individual grant programs.
- Accurate information should be provided during the application process.
- The funds granted should be strictly used for intended purposes.
- Periodic reports should be submitted on utilizing the grant as the funding body requires.
It is advisable to obtain the services of a professional consulting agency like Helpline Group in Saudi Arabia to expedite the establishment of a startup business in Saudi Arabia.
How Helpline Group guide Startups in Saudi Arabia?
Helpline Group, Saudi Arabia, is a renowned global business consultancy firm providing accurate solutions and strategic consulting services for over 25 years. Backed by an efficient team of 300+ experts, the Helpline Group assists and supports startup businesses in Saudi Arabia.
We assist you at every stage in company formation in Saudi Arabia and expanding your business with appropriate guidance and support.
