Saudi Arabia is a country that is often associated with oil, desert and conservatism. But behind this image lies a vibrant and dynamic tech scene that is attracting entrepreneurs from all over the world. In this blog post, we will explore why Saudi Arabia is becoming the next Silicon Valley for tech entrepreneurs and what opportunities it offers.
Saudi Arabia has a young and tech-savvy population that is eager to embrace innovation and entrepreneurship. According to a report by Google, Saudi Arabia has the highest smartphone penetration rate in the world at 86%, and 93% of its internet users are active on social media. Moreover, Saudi Arabia has a large and growing market for digital services, especially in sectors such as e-commerce, fintech, healthtech and edtech.
Saudi Arabia also has a supportive government that is investing heavily in developing its tech ecosystem. As part of its Vision 2030 plan, Saudi Arabia aims to diversify its economy away from oil dependence and create a knowledge-based society. To achieve this goal, Saudi Arabia has launched several initiatives and programs to foster tech entrepreneurship, such as:
- The National Transformation Program (NTP), which allocates SAR268 billion ($71 billion) for digital transformation projects across various sectors.
- The Digital Transformation Unit (DTU), which oversees the implementation of digital strategies and policies across government entities.
- The Ministry of Communications and Information Technology (MCIT), which regulates the ICT sector and supports innovation through various initiatives such as Digital Giving, Digital Academy and Tech Champions.
- The Saudi Data & AI Authority (SDAIA), which leads the development of data and artificial intelligence capabilities in the country.
- The Public Investment Fund (PIF), which is one of the largest sovereign wealth funds in the world with over $400 billion in assets under management. PIF invests in both local and global tech companies such as Uber, Lucid Motors, Noon.com, Careem and Souq.com.
- The Future Investment Initiative (FII), which is an annual event that brings together global leaders, investors and innovators to discuss the future of investment.
- The National Center for Artificial Intelligence (NCAI), which was launched in 2020 as a hub for AI research, education and innovation.
- The National Center for Cybersecurity (NCC), which was established in 2017 as a center of excellence for cybersecurity research, development and training.
Saudi Arabia also has a thriving private sector that is creating opportunities for tech entrepreneurs. There are several players that are contributing to building a vibrant tech community in Saudi Arabia, such as:
- Tech incubators and accelerators: These are organizations that provide mentorship, training, funding and networking opportunities for startups. Some examples are Badir Program for Technology Incubators, KAUST Innovation Fund, Flat6Labs Jeddah, InspireU by STC Ventures and 500 Startups MENA.
- Tech hubs and coworking spaces: These are places where entrepreneurs can work, collaborate and learn from each other. Some examples are AstroLabs Riyadh, HUB71 Riyadh, Wadi Makkah and King Abdullah University of Science and Technology (KAUST).
- Tech events and communities: These are platforms where entrepreneurs can showcase their ideas, network and learn from experts. Some examples are ArabNet Riyadh, STEP Saudi, Startup Grind Riyadh and Techstars Startup Weekend Riyadh.
With all these factors combined, Saudi Arabia offers an attractive destination for tech entrepreneurs who want to tap into a large and growing market, access abundant resources and support, and be part of an exciting and emerging tech scene.