Get All Access for $5/mo

Three Current Trends To Watch In Saudi Arabia's Startup Ecosystem Many international VCs that have started to keep an eye on the Saudi market are also assessing it as a potential market for their international portfolio companies.

By Erika Masako Welch

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

Shutterstock.com

We asked key stakeholders in the KSA -including venture capitalists (VCs), startup founders, accelerators, incubators and angel investors- the question: "What are the current trends to watch in Saudi Arabia's startup ecosystem?"

Here is what they told us:

1. More Saudi startups are reaching the later growth stages, looking for Series B funding Many VCs are looking to fund growth stage funds to support their existing portfolio of startups, and meet this growing demand in the Kingdom. At present, some fast-paced Saudi startups in later growth stages are going to international VCs for support, garnering support from the likes of Softbank and Sequoia.

2. Direct-to-consumer (D2C) startup categories like fintech and e-commerce will remain dominant, but Saudi will see an emergence of B2B startups These B2B solutions will emerge in sub-sectors such as supply chain technologies, fleet optimization, agtech, and even further into deeptech, driven by artificial intelligence-powered software solutions.

3. Increasing number of "experienced" founders starting companies The current enthusiasm and activity in the Saudi startup market has shifted mindsets so drastically that many experienced professionals are leaving 10-20 year careers to found their first startups. This also means that the solutions they are offering are highly specialized, bringing more sophisticated solutions to the market.

4. More globally-minded startups are entering the market The first startups that came out of the Kingdom were very Saudi-focused. Today, however, founders are thinking bigger and bolder from day one. The market expects to see many more startups that have a MENA region focus from the beginning, with bold global ambitions in their future.

5. International startups are making their presence felt in KSA As the Kingdom continues to open its borders, with accelerator programs run by 500 Global and King Abdullah University of Science and Technology (KAUST) sending invitations to international founders, and local VCs like Wa'ed Ventures investing in international startups with the aim of supporting their market-entry into the Kingdom, it is predicted that Saudi Arabia will see a gradual increase of foreign startups establish themselves in the market. Many international VCs that have started to keep an eye on the Saudi market are also assessing it as a potential market for their international portfolio companies.

Learn more about the successful and the emerging startups in the KSA ecosystem by checking out the report, The Evolution of Saudi Arabia's Startup Ecosystem 2010-2022.

This article was originally published on Lucidity Insights, a partner of Entrepreneur Middle East in developing special reports on the Middle East and Africa's tech and entrepreneurial ecosystems.

Erika Masako Welch

Chief Content Officer, Lucidity Insights

Erika Masako Welch is the Chief Content Officer of Lucidity Insights.
Starting a Business

He Started a Business That Surpassed $100 Million in Under 3 Years: 'Consistent Revenue Right Out of the Gate'

Ryan Close, founder and CEO of Bartesian, had run a few small businesses on the side — but none of them excited him as much as the idea for a home cocktail machine.

Growth Strategies

"We Got Funded!" UAE-Headquartered Epik Foods' US$15.5 Million Investment from Ruya Fund is Set to Propel its Regional Expansion Goals

The group's investment news thus comes just days away from its first anniversary as a fully operational business.

Business News

Looking for a Remote Job? Here Are the Most In-Demand Skills to Have on Your Resume, According to Employers.

Employers are looking for interpersonal skills like teamwork as well as specific coding skills.

Technology

Seamless 2024: Amr Aboushady, Co-Founder and Chief Commercial Officer, QSalary

Learn more about QSalary's latest initiatives in the Kingdom and how it is supporting Saudi Arabia's Vision 2030.

Entrepreneurs

Catalyzing Change: How UAE-Based Holo, The Middle East's First Digital Mortgage Platform, Is Transforming The Process Of Buying A Home

With free access to over 500 mortgage products from all the banks in the UAE today, the Holo platform directly addresses pressing issues that the home buying process is ridden with till date