Newlab, a company from New York City specializing in launching and funding startups in industrial sectors, is expanding to Riyadh, Saudi Arabia. The new hub will initially target the mining industry, with plans to later focus on energy, logistics, and advanced manufacturing.
Newlab’s larger hubs typically require substantial funding commitments from governments and large corporations. The Riyadh hub underscores Saudi Arabia’s dedication to economic transformation, aligning with initiatives under Vision 2030 aimed at fostering innovation and increasing women’s workforce participation.
“As a woman, I can see that,” said Liz Keen, Newlab’s chief strategy officer, highlighting the return of talent to Saudi Arabia to aid in its transformation. Newlab, founded in 2011 by David Belt and Scott Cohen, operates hubs in Brooklyn, Detroit, and Montevideo, Uruguay, and plans to open two smaller hubs this year.
Muneef AlMuneef will lead Newlab Riyadh, bringing experience from his role at the Ministry of Energy. Funding for these hubs comes from private companies and governments interested in sector transformation. For instance, Ford Motor Co. supported the Detroit hub, housing over 100 transportation startups with $700 million in funding.
Saudi Arabia’s focus on mining aligns with a global shift towards controlling value chains for critical minerals essential for the new energy economy. Newlab positions itself as a venture platform, nurturing startups and connecting them with customers and funding.
Venture capital has traditionally thrived on software investments but is now shifting towards “deep tech” or “critical tech” to solve global challenges like new energy systems. However, geopolitical tensions could influence venture capital flows, with recent U.S. restrictions on investments in Chinese firms.
Despite these challenges, Saudi Arabia’s developments suggest a promising innovation ecosystem. Newlab plans to establish a beta space in Riyadh by 2025, with a larger hub following in 2026. The hub will offer flexible workspaces, labs, and event areas, alongside sector-focused programs to attract startups.
Newlab’s connections with industrial and governmental entities in Saudi Arabia will aid startups in proving their business models and securing financing. The first program, The Mining Innovation Studio, will focus on:
- Enhancing exploration and identification of mineral resources
- Boosting efficiency and compliance in mineral recovery
- Reducing emissions in the mining value chain
- Improving processing and refining of critical minerals
Initial partners for Newlab in Saudi Arabia include the National Industrial Development and Logistics Program, the Ministry of Industry and Minerals, Saudi Geological Survey, Saudi Arabia Mining Company, and Saudi Mining Services Company.