Riyadh Ranks 23rd Globally in Startup Activity

Riyadh ranked 23rd globally in the list of startup choices for 2025, according to a report published by Startup Genome, which ranks global cities based on their entrepreneurial activity.

The Global Startup Ecosystem Report 2025 (GSER 2025) reveals a remarkable shift in the global startup landscape, with the Gulf region emerging as a driving force for innovation, supported by ambitious national visions, growing startup momentum, and clear intentions for expansion. At a time when global startup ecosystems are experiencing a decline in late-stage funding and a slowdown in exits, GCC countries, led by Saudi Arabia and the UAE, have doubled down on their efforts to accelerate growth in this vital sector, according to the report published by Arabian Business.

Saudi Vision 2030, which is anchored by public platforms such as Monshaat and CODE, is not just a startup funding initiative; it is a design for policy frameworks aimed at enabling these companies. Companies are expanding globally. Data shows that Riyadh ranks second in the MENA region in terms of startup ecosystem value and early-stage funding.

The report notes that “venture building outperforms accelerators in high-growth markets like Saudi Arabia by reducing risk across the entire company-building journey.” This proactive approach increases the chances of ventures reaching positive cash flow faster, attracting investors in a capital-rich but selective market. Market metrics show that the value of Riyadh’s ecosystem reached $4 billion between the second half of 2022 and 2024, with total early-stage funding reaching $0.5 billion in the same period.

The MENA region boasts young, high-quality talent, large markets like Egypt and Pakistan, and high-revenue hubs like Saudi Arabia and the UAE. This combination offers global investors unparalleled growth potential within an interconnected ecosystem, with an optimal mix of investments that generate disproportionate returns. Samantha Evans, Managing Director of the MENA region at Startup2, confirms Genome notes that “the Gulf is one of the few markets in the world where ambition, consensus, and execution converge.”3 She describes governments in the region as acting as “accelerators, not impediments,” with patient capital and founders focused on expansion from day one.