Saudi Arabia’s capital city, Riyadh, has been named one of the top 20 cities to watch for its high achievement and development within the FinTech space worldwide, according to a report by research organization Startup Genome.
Bahrain and Riyadh were the only GCC-based countries that were mentioned in the report, with Silicone Valley, New York, London, Singapore, and Beijing topping the charts.
Startup Genome analyzed dozens of countries across the globe based on factors including funding, exits, talent and focus, as well as the impact of ecosystem players such as policymakers and founders.
According to the report, the Kingdom enjoyed heavy support from Saudi-based logistics firms, which subsequently received 65 percent of all startup funding during 2020.
In parallel, EdTech was also a growing sector within the country, accounting for 11 percent of total funding mainly due to the COVID-19 pandemic’s heavy emphasis on the need for distance learning applications and platforms.
“Since 2019, there has been a 352 percent increase in smartphone payment transactions and a threefold increase in the number of fintech startups setting up in the Kingdom,” the report highlighted regarding the Saudi FinTech ecosystem.
In addition, Saudi Arabia’s government played a big role within the startup scene, as the report noted that international entrepreneurs can obtain an entrepreneurship license, with 100 percent ownership of their company, in under three hours.
Venture capitalists have found a home within the Kingdom, as the Ministry of Investments granted 15 licenses for VCs to setup shop within the country, receiving help from Saudi Arabia’s Venture Capital and Private Equity Association and the General Authority for Small and Medium Enterprises “Monshaat.”
Saudi Arabia’s technological rise is indicative of a growing and flexible economy that aims to cement itself as a global startup hub, reflecting the goal of the Kingdom’s Vision 2030 strategy.