Saudi Arabia and the UAE are cementing their positions as pivotal players in the Middle East and North Africa (MENA) startup ecosystem, driving innovation and funding across various sectors. The two nations are attracting significant investment and offering strong governmental support, which is vital for the continued growth of the region’s startup landscape.

Saudi Arabia’s Startup Boom

Saudi Arabia’s startup ecosystem has shown impressive growth, especially in the fintech and e-commerce sectors. In 2023, the Kingdom raised $1.38 billion, with two Saudi-based companies—Tabby and Tamara—becoming unicorns by exceeding valuations of $1 billion. These achievements highlight the Kingdom’s strong emphasis on financial technology, reflecting its broader digital transformation under Vision 2030.

The Kingdom’s support for startups extends beyond financial investments. Initiatives such as the Saudi Central Bank’s Makken Fintech program and the Emerging Fund Manager program contribute significantly to the entrepreneurial landscape. With the rise of government-backed incubators and accelerators, Saudi Arabia is ensuring that early-stage companies receive the infrastructure and mentorship necessary to thrive.

UAE’s Thriving Innovation Hub

The UAE remains a dominant force in the MENA region, particularly in terms of deal volume. Although Saudi Arabia surpassed the UAE in terms of total funding in 2023, the UAE secured 158 startup deals, the highest in the region. Dubai, in particular, has established itself as a global hub for startups, driven by its strategic location, favorable business environment, and government initiatives like Dubai Future Foundation and Dubai Silicon Oasis.

Fintech and e-commerce remain central to the UAE’s startup ecosystem, but other sectors such as healthtech, logistics, and green energy are also attracting attention. Initiatives such as Hub71 in Abu Dhabi and the DIFC Fintech Hive in Dubai are designed to foster growth across diverse industries.

A Promising Future for MENA Startups

Saudi Arabia and the UAE continue to play leading roles in driving the MENA region’s startup ecosystem. With robust government backing, increased venture capital, and a focus on key sectors like fintech and e-commerce, these nations are well-positioned to maintain their leadership. However, addressing challenges such as gender disparities and attracting diversified venture capital will be essential for ensuring sustained growth. As both countries advance their economic diversification plans, their thriving startup ecosystems will play a critical role in shaping the future of the MENA region’s economy.