Kholoud Hussein
Saudi Arabia is undergoing a profound transformation in the startup ecosystem. No longer is innovation confined to Riyadh—the Kingdom’s startup landscape is branching out into a multi‑center network that includes Jeddah, Dammam, Medina, and Giga-project locales like NEOM. Supported by Vision 2030 policies, billions in venture capital, and mega‑projects serving as innovation anchors, these regional hubs are becoming dynamic launchpads for home‑grown and global entrepreneurs.
The Capital at the Core: Riyadh’s Rise as a Global Ecosystem
Riyadh has cemented itself as Saudi Arabia’s dominant startup city, climbing 60 places in just three years to rank 23rd globally in the 2025 Global Startup Ecosystem Report by Startup Genome—making it third in the MENA region. Since 2018, over $2.6 billion in VC capital has flowed into Riyadh startups, backed by government‑linked funds like SVC, Jada, and PIF. Khaled Sharbatly, Chair of the National Entrepreneurship Committee, emphasized: “We are committed to positioning Saudi Arabia as a global hub for entrepreneurship and innovation.” The capital’s infrastructure—including KAFD (King Abdullah Financial District) and Digital City—provides state-of-the-art office spaces, regulatory support, and direct access to institutional anchors like Tadawul and major corporates.
Diversification Beyond the Capital: Jeddah, Dammam, Medina in Focus
While Riyadh leads, other cities are gaining traction. According to the 2025 StartupBlink index, Jeddah entered the top 10 in the Middle East, and Dammam rose to 12th. Medina debuted in the global top‑1000 ecosystems, signalling the real spread of entrepreneurial activity.
In Jeddah, proximity to the Red Sea and ease of trade are vital assets. Startups in logistic tech, tourism, and digital health benefit from the city’s port access and cosmopolitan energy. Likewise, Dammam and the Eastern Province tie into industrial clusters in Sudair and Khobar, anchoring innovation around energy tech, cleantech, and industrial IoT.
Medina’s Knowledge Economic City (KEC), a project launched in 2006, is being repositioned as a knowledge hub supporting startups. Its partnerships with Cisco and CompTIA aim to create a tech-savvy workforce in the city. This shift illustrates how economic cities are rejuvenating local entrepreneurship beyond metropolitan centers.
Giga-projects as Startup Magnets: NEOM, Qiddiya, The Line
Perhaps the most distinctive phenomenon in Saudi’s startup geography is the role of giga-projects as living innovation labs. NEOM has pledged $500 million in partnerships through its NEOM Investment Fund to invite startups in mobility, robotics, AI, and smart infrastructure. Sultan Alasmi, CEO of the e-commerce enabler Zid, said: “Saudi Arabia’s giga-projects, especially NEOM, offer a once-in-a-lifetime opportunity for startups to develop solutions that integrate with smart city frameworks.”
The upcoming The Line, a 170‑km car-free smart city, will mandate sustainable infrastructure, autonomous transport, and AI‑driven governance—offering fertile ground for startups working in urban tech, clean energy, and IoT. Entrepreneurs in sustainable hospitality, immersive tourism, and blockchain-based booking systems are already positioning to serve these hubs.
Policy and Institutional Infrastructure Across Regions
Saudi Arabia’s national policies underpin the rise of regional startup hubs. Agencies like Monsha’at, SVC, and Jada are building an inclusive ecosystem across cities. Monsha’at’s Deputy Governor for Entrepreneurship, Saud Al‑Sabhan, noted: “The public sector’s role in creating a highly supportive business environment … is developing a landscape where the initial hardships of starting a business can be overcome.”
Simultaneously, venture capital companies such as SVC have deployed SAR 5.2 billion into early and growth-stage startups by Q1 2024, with over 22% going to AI‑focused ventures.
Cities like Jazan are being equipped with Special Economic Zones that aim to attract $2.93 billion in foreign investments by 2040, positioning yet another hub for innovation along the Red Sea port corridor.
Sectoral Strengths in Regional Hubs
Each emerging hub is developing unique sectoral strengths:
- Riyadh dominates in fintech, cybersecurity, smart cities, digital health, and AI, hosting over 200 fintech firms.
- Jeddah thrives in e‑commerce and logistics, thanks to companies like Sary, Jahez, and Noon—each significant Riyadh success stories that have roots in the Red Sea corridor.
- Eastern Province / Dammam is aligning startup activity with industrial tech and energy transition, while Jazan SEZ targets agro, logistics, and port-enabled tech.
- Medina’s KEC is focusing on edtech and IT workforce development—intending to convert academic research into commercial ventures.
Events and Investment Platforms Fueling Local Growth
Annual flagship forums like LEAP Tech have expanded beyond Riyadh to engage startup founders citywide. LEAP 2024 hosted over 215,000 visitors, 600+ startups, and 1,600 investors, announcing up to $11.9–13.4 billion in investment commitments. Moreover, LEAP is set to expand to cities like Jeddah and Dammam, highlighting the push for geographic inclusion.
These events amplify the visibility of regional innovators and connect founders directly with capital, enterprise buyers, and tech partners.
Talent, Academia, and Regional Collaboration
Regional cities benefit increasingly from integration with academia. For example, KAUST and King Saud University are bridging R&D to market through spin-offs and incubators. Medina's KEC is doing the same via ICT partnerships with Cisco and CompTIA.
Moreover, the spread of entrepreneurship into suburban and rural areas is enhancing talent diffusion. Former corporate professionals in secondary cities are increasingly founding startups, bringing experience, maturity, and local relevance.
Regional Hubs: Challenges and Diverging Prospects
Despite the progress, regional hubs face challenges. Riyadh remains the dominant center, with access to capital, foreign investors, and customer pipelines. Cities like Jeddah or Dammam still capture smaller shares of VC flows. Diversifying regional funding and creating city-specific startup funds may be a necessary next step.
Talent gaps persist—regional universities struggle to match the output of major institutions, and specialized AI or IoT talent tends to centralize in Riyadh. Regulatory alignment across provinces is uneven, requiring coordination to make multi-city scaling smoother.
However, venture leaders see opportunity: “Startups must move fast, network aggressively, and seek partnerships with giga-project stakeholders. Neom and Qiddiya won’t wait for entrepreneurs who aren’t ready to scale.”
Looking Ahead: A Network of Real Startup Cities
Saudi Arabia is transforming from a single‑city startup ecosystem into a network of startup cities, each with its own strategic identity:
- Riyadh: Finance, AI, digital infrastructure.
- Jeddah: Port-driven logistics, tourism tech, e‑commerce.
- Dammam / Eastern Province: Industrial tech, energy, smart manufacturing.
- Medina (KEC): Edtech, ICT skill incubation, academic spin-offs.
- Giga-project zones: NEOM, The Line, Qiddiya as controlled innovation zones with global reach.
- Jazan SEZ: Export-oriented logistics and agricultural technology.
Supported by $3.8 billion in venture capital in 2024, with major support from Monsha’at, SVC, PIF, and other agencies, the ecosystem is maturing rapidly.
What was once a centralized ecosystem in Riyadh is now blossoming into a multi-node innovation engine across Saudi Arabia. As Riyadh solidifies its global ecosystem ranking, other cities like Jeddah, Dammam, Medina, and giga-project hubs are emerging as specialized innovation clusters—each offering distinct resources, sector focus, and institutional support. This distributed model not only promotes economic diversification but also aligns with Vision 2030’s ambition of a technology-driven, knowledge-based economy.
As government policies evolve, capital becomes more widespread, and startups increasingly operate beyond city borders, Saudi Arabia is crafting a future where every region is a startup city with its own narrative, potential, and global competitiveness.