Is Saudi Arabia a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Saudi Arabia has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Saudi Arabia gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Saudi Arabia

Funding is one of the most critical ingredients in building a successful startup – and Saudi Arabia offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Saudi Arabia's early-stage funding environment is dynamic, supported by various players aiming to boost the Vision 2030 goals. Notable VC firms active in the early stages include Raed Ventures, Impact46, and Flat6Labs, which also runs a seed program. The government plays a significant role through entities like the Saudi Venture Capital Company (SVC), which invests in funds and co-invests with angel groups, and initiatives like Monsha'at offering grants and resources. Angel networks such as OQAL and Falak Angels are also crucial for local founders seeking initial capital. Despite this support, challenges persist, including securing adequate funding, with around 50% of founders relying on personal or family funds according to one survey. While total VC funding saw a significant drop in 2024 compared to 2023, particularly in later stages, there was an increase in the number of pre-seed and Series A rounds in the first half of 2024, indicating continued early-stage activity. However, a funding gap, particularly for growth-stage companies, remains a concern.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Saudi Arabia has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Saudi Arabia's startup and innovation culture is rapidly growing, strongly supported by Vision 2030 initiatives aimed at economic diversification. The ecosystem features a significant presence of coworking spaces across major cities like Riyadh and Jeddah, offering flexible work options and fostering community. Numerous tech events and conferences, such as LEAP, the Digital Transformation Summit, and Step Riyadh, attract entrepreneurs, investors, and tech enthusiasts, highlighting key sectors like AI, Fintech, and e-commerce. Entrepreneurial activity is increasing, with a notable rise in women entrepreneurs. While there is substantial support for startups through government programs, incubators, and accelerators, the ecosystem appears to favor both early-stage and more mature startups, with increasing late-stage investments and a focus on building a robust pipeline from the grassroots level. Personalized support exists within various programs, alongside competitive, standardized initiatives.

For many entrepreneurs, the energy and resources available in Saudi Arabia can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Saudi Arabia, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Saudi Arabia is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Saudi Arabia's talent pool for startups is growing, supported by significant government investment in education and skill development aligned with Vision 2030. Universities are increasingly tailoring curricula to market needs, and partnerships with global tech companies provide specialized training. While a shortage of highly specialized tech and digital marketing skills exists, there's a young, tech-savvy population and a focus on developing local expertise in areas like AI, programming, and cybersecurity. Local talent offers crucial market insights and cultural understanding, supporting entrepreneurial growth alongside government initiatives and incubators providing resources and mentorship.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Saudi Arabia can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Saudi Arabia boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Saudi Arabia's startup ecosystem is rapidly growing, driven by Vision 2030 aiming to diversify the economy. The infrastructure includes numerous incubators and accelerators like BIAC, Misk Accelerator, and TAQADAM, providing mentorship and resources. Support systems encompass significant funding from entities like the Saudi Venture Capital Company (SVC) and Monsha'at, along with regulatory reforms simplifying business setup. These initiatives, including programs like the Saudi Unicorns Program, help startups access capital, expertise, and a favorable environment to thrive and scale.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Saudi Arabia. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Saudi Arabia Be Considered the Best Place to Launch a Startup?

There’s no doubt that Saudi Arabia provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Saudi Arabia face several challenges. Competition is increasing in the rapidly growing market, requiring strong differentiation. While the cost of living in cities like Riyadh can be high, impacting operational expenses and salaries, it is noted as being lower than Dubai. Regulatory hurdles remain a significant challenge, with complex procedures for licensing and compliance, although the government is working to improve this. Navigating evolving laws and obtaining necessary approvals can be time-consuming.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Saudi Arabia or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Saudi Arabia offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash