The Middle East and North Africa region is poised to generate more than 30 new unicorns by the end of the decade, with Saudi Arabia firmly establishing itself as the epicenter for venture funding and startup expansion. This optimistic forecast comes as the Kingdom experiences unprecedented growth, highlighted by a fourfold increase in foreign direct investment, according to insights shared at the Future Investment Initiative summit in Riyadh.
Emon Shakoor, CEO of the Saudi-based startup accelerator Blossom Accelerator, noted that the Kingdom’s economic dynamism is creating a fertile ground for high-growth companies to emerge and scale rapidly.
Kingdom’s Economic Momentum
Saudi Arabia’s booming economy is fueling the region’s startup ecosystem. Investment Minister Khalid Al Falih announced that foreign direct investment into the Kingdom has quadrupled, signaling strong international confidence. This surge is complemented by a vibrant public market, with Saudi companies dominating the region’s IPO pipeline and reporting a 120 percent increase in listings as of Q3 this year. This activity provides robust exit opportunities for investors and founders, further accelerating the venture capital cycle.
Diversifying Investment Frontiers
While investor appetite remains strong in established sectors like fintech, logistics, health tech, and educational tech, the landscape is quickly diversifying. According to industry experts, new frontiers for capital deployment are emerging in sectors such as arts and culture, green hydrogen, and space technology. This broadening investment focus reflects a maturing ecosystem capable of supporting innovation across a wide array of industries, moving beyond traditional tech verticals.
Pioneering Public Market Access
A key catalyst for growth has been the strategic development of Saudi Arabia’s public markets. The parallel market, Nomu, alongside significant regulatory reforms by the Capital Market Authority (CMA) and Tadawul Group, has simplified the path for small and medium-sized enterprises (SMEs) to secure funding and achieve early exits. The quick commerce company Jahez serves as a prime example, becoming the first homegrown tech startup to list on the main Tadawul market after its successful debut on Nomu. This pathway provides crucial liquidity for both tech and traditional businesses, including consulting and logistics firms.
Saudi’s Female Founders Break Global Records
In a standout trend, Saudi Arabia is setting a new global standard for female entrepreneurship. Ventures led by female founders in the Kingdom secure approximately 9 percent of all VC funding—a figure that triples the 3 percent seen in Silicon Valley. This supportive environment has led to a major milestone, with women now constituting half of all entrepreneurs in the country, showcasing a truly inclusive and thriving startup culture.
About Blossom Accelerator
Blossom Accelerator is a Saudi Arabia-based accelerator committed to empowering and scaling the next generation of tech-enabled startups. It provides founders with mentorship, resources, and a network to foster innovation and drive growth within the Kingdom and across the MENA region.
Source: AGBI
