Saudi Arabia Emerges as a MENA Startup Powerhouse

Saudi Arabia has rapidly consolidated its position as the dominant startup hub in the Middle East and North Africa, according to a February 2026 guide from the Saudi Ministry of Investment and Invest Saudi. The handbook reports that the kingdom’s knowledge-based economy now totals about US$132 billion, more than US$1 billion has been invested across AI, deeptech and data centres, and Saudi tech startups have raised over US$3.4 billion since the start of 2023 — including US$1.66 billion in 2025 alone. The guide also states Saudi Arabia has captured more than 55% of MENA venture capital funding for three consecutive years.

"Saudi Arabia is undergoing a profound structural transformation aimed at diversifying its economy away from oil and positioning the kingdom as a hub for startups and international businesses," the guide produced by the Saudi Ministry of Investment in collaboration with Invest Saudi says.

Context and ecosystem details

The handbook lays out a suite of policy, infrastructure and capital measures that underpinned the growth. Key government initiatives named in the guide include the Startup Saudi Program, the Ministry of Communications and Information Technology’s (MCIT) Center of Digital Entrepreneurship (CODE), and the National Technology Development Program (NTDP). Regulatory tools such as sector-focused sandboxes for fintech, telecom, digital services and emerging technologies are highlighted as ways to de-risk innovation and improve investability.

• Knowledge economy value: approximately US$132 billion
• AI, deeptech and data-centre investment: more than US$1 billion
• Tech startup funding since 2023: over US$3.4 billion (US$1.66bn in 2025)
• Share of MENA VC funding: more than 55% for three consecutive years

The guide details sector-specific momentum. In healthcare, Seha — the national digital health system and virtual hospital network — now connects more than 224 facilities, while the Sehhaty app engages 31 million users, about 88% of the population. In payments, the report notes "electronic payments now account for nearly 80% of all retail transactions," a figure that surpasses the kingdom’s 70% cashless target for 2025.

Fintech is singled out as a particularly dynamic vertical: Saudi hosted 281 fintech companies in H1 2025, up from 261 in 2024, and the guide projects 525 fintech firms will be operating in the kingdom by 2030. Cybersecurity is another priority, with Saudi ranked first globally in cybersecurity in the 2025 World Competitiveness Yearbook; the market is estimated at US$5.1 billion and — according to the guide — more than 21 million Saudi nationals work in cybersecurity.

Outlook

The guide frames current progress as part of Vision 2030’s long-term economic reshaping. International firms and investors are being courted through streamlined processes promoted by the Ministry of Investment and Invest Saudi. Riyadh’s ascent in global rankings underlines that push: the Global Startup Ecosystem Report 2025 by Startup Genome and the Global Entrepreneurship Network put Riyadh at 23rd, a jump of 60 places.

With near-universal internet penetration (99% in 2024), a growing pipeline of fintech and deeptech companies, and sovereign capital and regulatory mechanisms aimed at scaling startups, the Saudi playbook seeks to convert capital and infrastructure gains into a sustained, investible tech ecosystem ahead of 2030.