In a significant push to nurture its emerging start-up ecosystem, Saudi Arabia has unveiled a series of seven funds totaling a substantial $838 million. These funds are designed to provide critical support to burgeoning companies at various stages of their growth, particularly in dynamic sectors such as gaming and e-sports.
Last year, start-ups backed by the National Technology Development Programme (NTDP) successfully secured more than 49 investments, amounting to $750 million. This impressive figure represents over half of the total investments made in Saudi Arabia in 2023, as stated by Ibrahim Neyaz, NTDP’s chief executive, during the Leap 2024 technology conference held in Riyadh.
The investments have had a notable economic impact, contributing approximately $1.45 billion to the economy and resulting in the creation of over 7,300 new jobs.
NTDP’s efforts extend beyond just investment, as it has also facilitated start-ups in accessing around $700 million in debt financing from commercial banks and financial institutions. This is part of the kingdom’s broader strategy to diversify its economy beyond oil, focusing on sectors such as technology, real estate, tourism, and infrastructure.
In a landmark achievement, Saudi Arabia emerged as the leading destination for venture capital funding in the Middle East and North Africa in the past year, attracting upwards of $1.38 billion in investments, according to a report by the start-up platform Magnitt. This marks the second consecutive year that the kingdom has surpassed the billion-dollar mark, with a 33% increase in venture capital investment year-over-year.
The NTDP isn’t resting on its laurels, announcing new initiatives aimed at supporting advanced fields like artificial intelligence (AI), quantum computing, and smart cities, while also striving to enhance female participation in the ICT sector. An ambitious plan is set to deploy $266 million towards the development of 1,000 AI and machine-learning engineers, along with up to 100 AI native features and 25 AI foundation models within the next five years.
Highlighting the disruptive potential of generative AI across industries, NTDP emphasizes the importance of R&D infrastructure, talent development, industrial challenges, data access, and venture-building activities as key drivers of innovation and growth.