Riyadh Ranks Among Top Startup Ecosystems in MENA Region
In a groundbreaking report by the international policy advisory and research organization Startup Genome, Riyadh, the capital of Saudi Arabia, has been recognized as one of the top five startup ecosystems in the Middle East and North Africa region.
Three Saudi Cities Make the Cut
Not only was Riyadh ranked fourth in the region, but Jeddah and Alkhobar also earned a spot on the list, showcasing the Kingdom’s growing entrepreneurial landscape.
Criteria for Inclusion
To be included in the prestigious list, ecosystems had to meet certain criteria, such as being ranked among the top 40 global leaders or top 200 emerging environments, or having a value exceeding $200 million.
Riyadh’s Impressive Performance
Riyadh was also recognized as one of the few MENA ecosystems with four or more unicorns in the past decade, alongside Dubai. A unicorn refers to a company valued at $1 billion without being publicly listed.
Global Recognition and Funding Performance
The capital city of Riyadh was ranked between 51 and 60 globally, with its funding performance receiving a commendable seven out of 10. The Kingdom’s proactive approach to embracing artificial intelligence also garnered praise, with a $40 billion commitment to boosting the technology.
Abu Dhabi Emerges as Fastest-Growing Ecosystem
Meanwhile, Abu Dhabi, the capital of the UAE, was labeled as the fastest-growing startup ecosystem in the region, with a global ranking between 61 and 70. The city’s ecosystem was valued at $4.2 billion, with significant funding and successful exits in recent years.
Saudi Arabia Leads in Venture Capital Funding
Driven by Saudi Arabia, the MENA region has witnessed significant growth in venture capital and startup development. In 2023, the Kingdom secured 52 percent of the total VC funding in the region, surpassing the $1 billion mark for the first time and solidifying its position as a leader in venture capital funding in the Middle East and North Africa.