Saudi Arabia has secured top global positions across several key entrepreneurship indicators, according to the 2025-2026 Global Entrepreneurship Monitor (GEM) report. The results highlight the Kingdom’s rapidly developing startup environment and its growing competitiveness, positioning it as one of the world’s most supportive economies for new ventures. The progress is a direct reflection of collaborative efforts between government bodies, private sector players, and academic institutions, spearheaded by entities like the Small and Medium Enterprises General Authority (Monsha’at).
Quick Facts
- Ranked #1 for Entrepreneurial Finance among high-income economies.
- Secured #3 globally in the National Entrepreneurship Context Index.
- Early-stage entrepreneurial activity surged from 12.1% to 28.9%.
A Surge in Funding and Founder Confidence
The Kingdom’s most notable achievement in the GEM report is its first-place ranking in the Entrepreneurial Finance index for 2025 among high-income economies. This underscores the effectiveness of the local funding environment and the sophisticated support tools available for SMEs, which simplify access to capital and promote sustainable growth.
Further cementing its position, Saudi Arabia ranked third globally in the National Entrepreneurship Context Index (NECI). This index measures the broader environmental factors that enable new businesses to thrive, confirming the Kingdom’s status as an attractive destination for investment and entrepreneurial talent.
The report also registered a significant increase in founder activity and ambition. The Early-Stage Entrepreneurial Activity index jumped from 12.1% in 2018 to 28.9% in 2025. In parallel, the Entrepreneurial Intention index, which measures the desire of individuals to start their own businesses, rose from 26.8% in 2018 to a strong 48.5% in 2025.
Universities Fueling the Next Wave of Startups
The report revealed remarkable progress in university-led entrepreneurship. Saudi Arabia climbed to 7th place globally in 2025, a massive leap from its 53rd position in 2018. This rapid ascent points to the expanding role of educational institutions in fostering innovation and embedding an entrepreneurial culture, a key objective of the Kingdom’s Vision 2030.
The NECI is a primary component of the GEM report, which is led by a global consortium including Babson College and London Business School. The research in Saudi Arabia is conducted by the Prince Mohammed Bin Salman College of Business and Entrepreneurship (MBSC) in partnership with Monsha’at.
About Monsha’at
Monsha’at, the Small and Medium Enterprises General Authority of the Kingdom of Saudi Arabia, is the primary government body responsible for organizing, supporting, and developing the SME sector. It aims to increase the productivity of these enterprises and grow their contribution to the national GDP by implementing programs and initiatives that foster a supportive and competitive business environment.
Source: Almowaten
