The top 10 Saudi startups showcase rapid innovation in digital security, convenience apps, and business solutions, propelling the Saudi Arabia startup ecosystem forward

Saudi Arabia’s startup ecosystem is witnessing significant growth, driven by advancements in digital security, e-commerce, and convenience applications. This growth is a testament to the dynamism of the Saudi Arabia startup ecosystem. LinkedIn’s annual Top Startups list for 2024 highlights the Kingdom’s most influential and fast-growing startups, offering a snapshot of the country’s evolving entrepreneurial landscape.

At the forefront is Cipher, a cybersecurity startup that has emerged as the leader in digital security services. The increasing demand for robust security solutions reflects a broader trend as Saudi businesses prioritize digital protection in a rapidly evolving market.

The surge in startup activity is fueled by venture capital investments, with Saudi Arabia leading the Middle East and North Africa (MENA) region in funding, attracting $412 million in the first half of 2024. This financial backing has empowered startups to make substantial strides in various industries, from technology to business services.

Nabila Rahal, MENA news editor at LinkedIn, emphasized the growing influence of Saudi startups: “This year’s list demonstrates that startups in the Kingdom are continuing to break into new industries, driving economic diversification with a clear focus on technological innovation. These companies are excelling in meeting clients’ needs and are also becoming top destinations for talent.”

Among the top contenders are MR MANDOOB, a delivery service app ranked third, and Mawidy, an appointment-booking platform, securing fourth place. These companies are tapping into the rising demand for convenience apps, reflecting a societal shift toward on-demand services.

SHIFT inc., a car rental app, rounds out the top five, indicating the growing need for practical service-oriented applications in Saudi Arabia. In sixth place, Rewaa, a retail solutions platform, is capitalizing on the expanding e-commerce sector, providing innovative tools for retailers to streamline their operations.

Soum, an AI-powered retail marketplace, climbed to seventh, further signalling the boom in e-commerce and AI-driven solutions. On the business services front, LAWAZEM, a procurement platform, and Squadio, a talent solutions provider, ranked eighth and tenth, respectively. Their presence underscores the increasing need for operational support as more international companies establish themselves in the Kingdom.

Tamara, a buy-now-pay-later fintech company, maintained its position as a top player, ranking second on the list. Additionally, AI solutions company Mozn also earned a place, reflecting the growing influence of AI in shaping the Kingdom’s business landscape.

LinkedIn’s Top Startups list is based on four key pillars: employment growth, engagement with the company, job interest, and the attraction of top talent. To be considered, companies must be privately held, independent, and headquartered in the country they are ranked in.

This year’s list is a testament to Saudi Arabia flourishing startup ecosystem and its significant role in the nation’s broader efforts to diversify the economy away from oil, driving innovation and attracting top talent. The continued evolution of Saudi Arabia’s startup ecosystem is crucial for fostering sustainable economic growth and resilience.

Analysis

Political: The rise of Saudi startups signals a key shift in the Kingdom’s political and economic priorities. Under Vision 2030, Saudi Arabia is moving away from its dependency on oil by fostering a dynamic entrepreneurial ecosystem. The growth of startups across sectors like digital security, fintech, and AI demonstrates the government’s commitment to creating a diversified economy. The Ministry of Investment and other governmental bodies have provided substantial support in the form of venture capital funding, incubation programs, and infrastructure development. This political backing has established Saudi Arabia as a leader in the Middle East and North Africa (MENA) region, paving the way for further international partnerships and investment.

Social: The success of startups such as Cipher and MR MANDOOB points to changing social dynamics in Saudi Arabia. Consumers are increasingly reliant on digital platforms and on-demand services, a shift that reflects the Kingdom’s rapid digital transformation. This change is particularly significant in a society where traditional business models are being replaced by tech-driven solutions. Additionally, the rise of convenience apps like Mawidy highlights a growing demand for services that prioritize user experience and accessibility, especially among the younger, tech-savvy population. Social acceptance of entrepreneurship has also risen, with more young Saudis viewing startup ventures as viable career paths.

Economic: Economically, the growth of Saudi startups is a crucial component of the nation’s diversification strategy. The Kingdom’s leading position in venture capital funding in the MENA region, with $412 million invested in just the first half of 2024, highlights the economic significance of its entrepreneurial ecosystem. Startups like Rewaa and Soum, which cater to the booming e-commerce sector, are driving revenue growth and job creation. The inclusion of companies like LAWAZEM and Squadio, which focus on operational support and talent solutions, also reflects the increasing international interest in setting up operations in Saudi Arabia. These startups contribute to overall GDP growth and help position Saudi Arabia as a global business hub.

Gender: Saudi startups are also playing a role in advancing gender equality. As more women enter the workforce, startups like those in the technology and e-commerce sectors provide new opportunities for female entrepreneurs and professionals. Vision 2030 has set ambitious targets to increase women’s workforce participation, and the tech-driven nature of these startups offers flexible, diverse, and innovative career options for women. Additionally, with the government’s focus on female empowerment, we may see more female-led startups climbing LinkedIn’s Top Startups list in future editions.

Racial: As the Kingdom becomes a global hub for business, the startup ecosystem is likely to become more diverse. With the influx of international investors and talent, Saudi Arabia’s entrepreneurial landscape is poised to embrace racial and cultural diversity. The presence of foreign workers and multicultural teams in startups can enrich the business environment by encouraging new perspectives and fostering inclusive growth. Moreover, the government’s vision to make Saudi Arabia a magnet for global talent can lead to more racially diverse startup teams that contribute to innovation and competitive advantage.

Technological: Technological innovation is at the heart of Saudi Arabia’s startup boom. Startups like Cipher and Mozn are utilizing cutting-edge solutions in cybersecurity and artificial intelligence to address growing demands in the market. The widespread adoption of AI in e-commerce platforms like Soum also underscores the role of technology in shaping consumer behavior and business models in the Kingdom. These advancements in digital security, AI, and business solutions are positioning Saudi Arabia as a leader in technological innovation within the MENA region, attracting international investors and partners eager to capitalize on this rapid growth.