See Saudi Arabia 2030: improving the investment in startups

Saudi experiencing an improvement in investing in startups in the last few years this is due to aim of Vision 2030 that by reducing the adoption of the economic growth on the oil sector. The kingdom is trying to build a thriving economy through supporting entrepreneurship and innovation by supporting startups and investing in them.

According to the fourth edition of the report “the reality of the investments the digital in the Middle East and North Africa between 2013-2018”, which was prepared by ArabNet in partnership with the Mohammed bin Rashid Establishment for SME development, in Saudi Arabia 95 startup activist. But Saudi Arabia also registered the largest number of startups generated by the action(39 startup companies) that moved to the valley of death between the years 2013 and 2018.

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The Kingdom ranked third in terms of proportion of investors in the Middle East and North Africa and the GCC countries increased by 17 percent, while the United Arab Emirates ranked first by 31 percent. This ratio remained constant in these two states over the years and maintained the largest sectors of the market among other markets.

Since 70 percent of the company and the investor are concentrated in the Gulf Cooperation Council, the registration of Saudi Arabia the second highest percentage of companies invested by 19 percent, after the UAE, which registered 36 percent. Despite that, overtake the corporate investors in Saudi Arabia, historically the rest of the Middle East and North Africa; but in the past few years, other markets will quickly improve while Saudi Arabia is experiencing a decline in the share of the corporate investor during the period between 2013 and 2017.

After reviewing the outside the preparation of investment deals in the Middle East and North Africa, Saudi Arabia ranked fourth in terms of number of investment deals in 2017(41) and 2018(26) and scored 180 deal invested between 2013 and 2018.

While the number of deals fell year 2018 compared to 2017, the higher the value of the transaction significantly from $ 39 million(2017) to $ 59 million (2018), and thanks to this height, enable Saudi Arabia to finally retrieve the value of the deals that were available in 2013 and 2014 after several years of decline in the value of investments.

Although record Saudi Arabia declining by 37 percent in the number of pages between the years 2017 and 2018, the value of the trades in U.S. dollars in 2018 compared to 2017, thanks primarily to the value of the significant investment in the company money (Unifonic) amounting to 21 million USD.

Looking at the proportion of women enterprises in each market, we note that only 16 percent of founders of startups in Saudi Arabia are women out of 192 of the founder. It seems that the situation began to change in the field of business in the kingdom who were men controlled, after increasing numbers of women in the corporate sector is emerging.

For more information about the pulse of the corporate sector arising in the region, be sure to read the attached report here

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