Foreign Startup Registrations Surge 118% in Saudi Arabia

Saudi Arabia has reported a 118% increase in foreign startup registrations, with 550 companies receiving Riyadi licenses by mid-2025, according to the Ministry of Investment. The Riyadi license offers foreign entrepreneurs streamlined access to the Saudi market as part of the Kingdom’s push to boost its innovation ecosystem.

In parallel, the Small and Medium Enterprises General Authority, Monsha’at, issued 364 licenses to accelerators and incubators across the country. These hubs are designed to support startups with infrastructure, investor networks, mentorship, and tools to develop and commercialise new products.

The spike in licensing activity follows a record first half of the year for venture capital. Saudi startups secured $860 million across 114 deals, marking a 116% increase in capital and a 31% growth in deal count compared to the same period in 2024. These figures underscore Saudi Arabia’s continued dominance as the leading VC destination in the Middle East and North Africa.

The growth also reflects broader national efforts to attract foreign startups through simplified procedures and targeted reforms. The Ministry of Investment has introduced eight new business license categories - covering sectors like IT, consulting, hospitality, manufacturing, and mining - that allow 100% foreign ownership and are available through its digital portal.

Saudi Arabia’s momentum has also been supported by global startup showcases like LEAP, Biban, and participation in events such as Web Summit and VivaTech, reinforcing the Kingdom’s efforts to position itself as a global hub for innovation and entrepreneurship.