Riyadh’s startup ecosystem had the most significant growth of any MENA ecosystem in the Top 100 Emerging ranking
Saudi Arabia has achieved a new milestone in entrepreneurship, with its capital, Riyadh, advancing 60 places over the past three years to rank 23rd among the top 100 emerging startup ecosystems globally, according to the “Global Startup Ecosystem Report 2025,” published by Startup Genome in partnership with the Global Entrepreneurship Network.
Riyadh’s remarkable progress underscores its rapid development in the entrepreneurship environment, particularly reflected in robust venture capital indicators, advanced infrastructure and increasing levels of innovation and investment in emerging technologies.
Strong government backing drives growth
The success of Riyadh’s startup ecosystem is largely supported by strong government backing, notably from the Small and Medium Enterprises General Authority (Monsha’at). Monsha’at plays a key role in building an integrated entrepreneurship environment through initiatives and programs that support startup growth and expansion. It also works to enhance the legislative and regulatory environment for entrepreneurs. These efforts aim to increase the sector’s contribution to gross domestic product (GDP), in line with the goals of Saudi Vision 2030.
According to the report, Saudi Arabia recorded the second-highest performance in the Middle East and North Africa region.
“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,” said Khaled Sharbatly, chairman of the National Entrepreneurship Committee.
Riyadh records most significant growth in the region
Notably, Riyadh’s startup ecosystem had the most significant growth of any MENA ecosystem in the Top 100 Emerging ranking, moving up from the 51-60 range in 2024 to the 21-30 range this year, thanks to major growth in exits over $50 million, including rasan.co’s $1.1 billion exit.
It also ranked third in terms of funding volume and investment value relative to impact, and fourth in the availability of skills and expertise, further strengthening its capacity to attract and retain entrepreneurial talent.
The report also highlighted several key high-potential sectors that contributed to these outcomes, foremost among them artificial intelligence, FinTech, cybersecurity, smart cities, infrastructure and digital health. These sectors represent essential pillars in the Kingdom’s economic transformation strategy.
Other regional players on the Emerging Ecosystems Ranking 2025 include Dubai in 19th place, Abu Dhabi in the 51-60 range and Cairo in the 71-80 range.
GCC is becoming a leading market for the future economy
While global startup ecosystems struggle with declining late-stage funding and exit slowdowns, GCC nations—led by Saudi Arabia and the UAE—have doubled down. Saudi Arabia’s Vision 2030, anchored by public platforms like Monsha’at and CODE, is not only funding startups, but it is also designing policy architectures to enable them to scale globally.
The early signals are clear: the Gulf is not a follower; it is becoming a leading market for the future economy.
“The Gulf is one of the few markets in the world where ambition, alignment, and execution converge. This is not a speculative bet – it’s a strategic inflection point. Governments here act as accelerators, not obstacles. Capital is available and patient. And founders are solving for scale from day one. The world is only just beginning to grasp the depth of what’s being built here – and those who engage now will be shaping the next frontier of global innovation,” says Samantha Evans, managing director, MENA at Startup Genome.
Read: Abu Dhabi startup ecosystem ranks 3rd in MENA for performance, generates $4.4 billion in value
Region mobilizes capital in strategic sectors
Across the region, public capital is being mobilized into strategic sectors: Artificial Intelligence (AI), Deep Tech, Climatetech, Fintech and Digital Infrastructure. Abu Dhabi’s $100 billion commitment to AI, combined with Saudi Arabia’s $40 billion technology fund ambitions and the rise of sovereign-supported accelerators, shows that this is not opportunistic investment – it is national strategy.
Notably, Riyadh’s startup ecosystem has seen a sharp rise in both deal volume and startup density. Over $2.6 billion in VC funding has flowed into the market since 2018, driven by government-backed funds such as SVC, Jada, and the PIF.
As global corporations establish regional headquarters in Riyadh and local success stories begin to scale globally, Saudi Arabia is no longer viewed as an emerging innovation player. It is defining what the next frontier of innovation leadership looks like – one that is state-enabled, capital-backed and commercially grounded.