Kholoud Hussein
Saudi Arabia’s giga-projects—Neom, The Line, and Qiddiya—are redefining the Kingdom’s economic landscape, aligning with Vision 2030’s goal of diversifying the economy and reducing reliance on oil. While these projects promise futuristic urban planning, cutting-edge technology, and world-class tourism, they also create unprecedented opportunities for startups and SMEs.
Saudi entrepreneurs are tapping into these mega-developments to provide innovative solutions in smart city infrastructure, entertainment, fintech, logistics, and sustainability. This article explores how these projects are fostering startup growth, the role of Saudi business leaders in seizing these opportunities, and the government’s efforts in empowering entrepreneurs.
1. Neom and The Line: A Smart City Ecosystem for Innovation
Neom is a $500 billion mega-city that is poised to become a global hub for technology, AI, and green energy. One of its most ambitious projects is The Line, a 170-kilometer-long, car-free smart city that integrates AI-driven automation, renewable energy, and futuristic urban mobility.
For startups, Neom represents a testing ground for innovation in AI, IoT, and sustainable infrastructure. Entrepreneurs in sectors such as autonomous transportation, AI-driven governance, and urban sustainability can leverage Neom’s open innovation framework to develop and scale their businesses.
Startup Perspective
Sultan Alasmi, CEO of Zid, an e-commerce enabler, highlights the immense potential of Neom for startups: "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. Entrepreneurs who innovate in AI-driven commerce, logistics, and urban tech will be at the forefront of the new economy."
As Neom continues to attract global investment, Saudi startups specializing in green energy, sustainable construction, and AI-driven automation will be key players in its long-term development.
2. Qiddiya: A Billion-Dollar Playground for Tourism and Entertainment Startups
With a projected 17 million annual visitors by 2030, Qiddiya is Saudi Arabia’s answer to Dubai’s entertainment sector. Spanning 334 square kilometers, Qiddiya will feature theme parks, motorsports, esports, live performances, and cultural experiences.
Startups in hospitality, ticketing, VR-based entertainment, and travel tech stand to gain significantly from this multi-billion-dollar project. Saudi Arabia is positioning itself as a regional hub for entertainment, and entrepreneurs who capitalize on immersive experiences, AI-driven tourism services, and fintech solutions for travel will thrive.
Startup Perspective
Ebrahim Al-Jassim, founder of Ninja, a quick commerce startup, sees entertainment logistics and hyper-personalized services as a massive growth area: "Qiddiya is more than an entertainment hub; it’s a new ecosystem for hospitality, logistics, and smart payments. Startups that can enhance visitor experiences with AI, VR, and seamless payment solutions will dominate this space."
With Saudi Arabia investing over $8 billion in the entertainment sector, Qiddiya offers massive potential for travel tech startups, luxury tourism brands, and digital payment innovators.
3. Opportunities in Smart Cities, Tourism, and Infrastructure
Smart Cities & Infrastructure
Neom and The Line are pioneering AI-driven governance, hyper-connectivity, and zero-emission infrastructure. Startups that specialize in energy-efficient buildings, smart grid technologies, and AI-based security solutions can integrate their products into these developments. "Our startup, Retailo Technologies, is already working on logistics solutions that cater to the evolving needs of Saudi Arabia’s giga-projects. Supply chain innovations will be crucial in supporting large-scale developments like Neom and The Line," according to Abdulaziz Hadhrawi, Founder of Retailo Technologies.
Tourism & Hospitality Tech
Saudi Arabia’s plan to attract 100 million tourists by 2030 means massive investments in luxury tourism, wellness retreats, and eco-tourism startups. Entrepreneurs in AI-driven personalized travel experiences, sustainable hospitality, and VR tourism can tap into this market.
Khaled Abou Kassem, Co-founder of AlGooru, said: "The Saudi tourism sector is experiencing rapid growth. Startups that integrate AI, blockchain-based booking systems, and immersive digital experiences will be ahead of the curve."
4. Government Policies Supporting Saudi Entrepreneurs
Investment Incentives
The Ministry of Investment of Saudi Arabia (MISA) provides a 100% foreign ownership license for startups setting up in SEZs (Special Economic Zones). This policy has led to a 65% increase in foreign startup investments in 2024.
Special Economic Zones (SEZs) Provide Tax-Free & Duty-Free Benefits: SEZs like King Abdullah Economic City (KAEC) and Neom's Industrial Zone are startup-friendly hubs that offer tax incentives, regulatory benefits, and easy business incorporation.
Venture Capital & Funding for Startups
Saudi Arabia has witnessed a record $3.8 billion in venture capital funding in 2024, with much of it directed towards startups in logistics, fintech, AI, and green energy. Mohammed Aldossary, Co-founder of Sary, stated: "Saudi Arabia’s startup scene is evolving rapidly, thanks to government-backed funding initiatives like Monsha’at and the Saudi Venture Capital Company (SVC). Access to capital is better than ever for ambitious entrepreneurs."
5. Overcoming Challenges: What Startups Need to Consider
While Saudi giga-projects present incredible opportunities, startups must navigate challenges such as:
- Regulatory Compliance: Large-scale projects require businesses to meet international quality and sustainability standards.
- Talent Acquisition: The demand for AI specialists, sustainable engineers, and fintech experts is outpacing local supply.
- Competition from Global Corporations: Startups must differentiate their solutions to compete against established multinational firms.
Advice from Saudi Startup Leaders
Janardan Dalmia, CEO of Trukkin, said: "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."
In the same vein, Hala Zahran, Lead for Arab Bank Accelerator, commented: "Government-backed accelerators like the Saudi Industrial Development Fund (SIDF) and PIF’s investment arms are creating a world-class startup ecosystem. But to succeed, founders must be willing to adapt quickly to regulatory and business changes."
The Future of Saudi Startups in Giga-Projects
Saudi Arabia’s giga-projects are not just urban developments—they are catalysts for economic diversification and technological innovation. As Neom, The Line, and Qiddiya continue to take shape, startups and SMEs will play a pivotal role in shaping the future economy.
For entrepreneurs willing to innovate, collaborate, and scale, the Saudi startup ecosystem is ripe with opportunity. Whether in AI-driven smart cities, fintech for tourism, or green energy infrastructure, the future belongs to those who seize it now.