Saudi Arabia’s capital is quickly establishing itself on the global innovation map, with Riyadh jumping 60 spots in just three years to rank 23rd among the world’s top 100 emerging startup ecosystems, according to the 2025 Global Startup Ecosystem Report by Startup Genome and the Global Entrepreneurship Network.

The report highlights Riyadh’s evolution into a strategic launchpad for startups targeting the $2 trillion GCC market. The city now ranks third in the Middle East and North Africa (MENA) region for startup funding, reflecting a sharp increase in deal volume and growing investor confidence.

Key growth drivers include rising venture capital, stronger infrastructure, and increased investment in emerging tech. Government initiatives, especially via Monsha’at, have improved regulation and boosted SME contributions in line with Vision 2030.

Since 2018, the ecosystem has attracted more than $2.6 billion in funding, largely from state-supported entities including the Saudi Venture Capital Co., Jada, and the Public Investment Fund (PIF).

While many global startup ecosystems are experiencing investment slowdowns, the report highlights Riyadh as one of the world’s most resilient and forward-looking innovation hubs.

“The Gulf is one of the few markets in the world where ambition, alignment, and execution converge,” said Samantha Evans, MENA Managing Director at Startup Genome. “It’s not a speculative bet — it’s a strategic inflection point.”

Saudi Arabia’s rise is reflected across several global indicators. The Kingdom ranks third globally for investment-to-impact ratio and total funding volume, and fourth for talent availability. Riyadh—now widely described as a “launchpad”—hosts regional offices of major global tech firms including Google Cloud, Amazon, and SAP. The fintech sector is booming, with over 200 active companies supported by regulators such as the Saudi Central Bank and Fintech Saudi.

Other fast-growing sectors include AI, cybersecurity, digital health, logistics, and smart infrastructure, all of which align with Vision 2030’s goals.

Startups benefit from founder-friendly policies such as 100% foreign ownership, streamlined licensing, and regulatory support from entities like the Communications and Digital Economy Commission (CODE) and the Digital Government Authority.

Riyadh also provides startups with direct access to major buyers, including sovereign wealth funds and national champions such as PIF, STC, and Aramco—all of which actively invest in and collaborate with startups.

In the 2024 edition of the report, Riyadh ranked fourth among the top startup hubs in MENA, with Jeddah and Alkhobar also making the list.