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Foreign startups flock to Saudi Arabia

Jul 23, 2025, 7:59am EDT
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Riyadh’s skyline.
Bernd von Jutrczenka/picture alliance via Getty

The number of foreign startups licensed to operate in Saudi Arabia grew 118% year-on-year. The Ministry of Investment issued 550 new permits in the first half of 2025.

Saudi Arabia is courting startups in growing sectors like fintech, artificial intelligence, and climate technology, offering entrepreneurs full ownership rights, rather than forcing firms to partner with local investors and companies.

Some startups have shifted headquarters to the kingdom, notably Tabby, the buy-now-pay-later unicorn that was previously based in Dubai. Companies are drawn to the kingdom because it is the largest economy and stock market in the region.

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