Saudi Arabia has undoubtedly become one of the latest hotspots for investors and entrepreneurs who want a slice of its growing economy. With the Vision 2030 initiative setting its sights on moving the Kingdom away from an oil economy, now is the time to dive deep into the many opportunities available here.

So, if you are among the many people who are looking for funding to set up a new venture or startup, this SetHub guide will put you on the right pathway to success! Keep reading as we educate you on some insider tips to get through this process as efficiently as possible.

Understanding the Saudi Startup Scene

Prior to getting into all the opportunities for funding present in Saudi Arabia, you must firstly understand the startup ecosystem that exists in the Kingdom. The government is currently focusing its efforts into the nurturing of SMEs. The reforms that have been introduced stand as a testament to this. Some examples of this in action are: 

• Monsha’at SME Authority
• Specialized funding platforms
• Incubators

Key sectors that you would want to look into are:

• Technology
• Renewable energy
• Tourism

As they are currently brimming with potential and awaiting a capital injection to blossom.

If you really want to get familiar with the startup scene in Saudi Arabia, here is a quick look at what you need to do:

Put your focus into industries that support the Saudi Vision 2030. At the forefront of it all are renewable energy and digital transformation initiatives. These two sectors are currently receiving significant funding

You must also try to connect with the locals as building a network of like minded Saudi Arabian entrepreneurs will go a long way. Also look into the many options for incubators and accelerators. Research will only take you so far. What you really need is a strong local connection for insights that no other resource can give you.

The Government is also working hard to attract investors like yourself through several grants and incentives, provided that your venture will align with the national objective. 

Build Your Reputation

As a foreign investor, one of the biggest challenges you will face is building a name for yourself. In this part of the world, long term relationships and complete trust is valued beyond anything else. Here is how you build your reputation in Saudi Arabia:

When registering your business, make sure that you are compliant with the local laws. If you register your company with the Ministry of Investment, this will show the locals that you are committed to your cause.

Consider partnering with local companies as these Saudi entities will give you the much needed cultural pointers and credibility.

It would be ideal if you have a proven record in your home country. This will show Saudi investors that your capabilities are not to be overlooked

Look Into All Your Options

There is an array of  funding options for foreign entrepreneurs in Saudi Arabia. The more popular choices include venture capital and government-backed loans. If you want to secure funding, you need to have a strategy in place. Here are some tips to help you get started on this:

Look into the local venture capitalists as there are many in Saudi Arabia who are always on the lookout for new startups.

Do not overlook the Government grant option. One in particular is the Saudi Fund for Development (SFD) and plans under Monsha’at offer funding for businesses.

Alternatively, you can explore crowdfunding platforms such as Manafa which provides an alternative for startups that need a small amount of capital.

Angel investors are also a great option if you can find one in your industry. Attend every networking event possible and participate in local forums to make connections.

Nail That Winning Pitch

Now comes the time to create your pitch. Here is what you need to do:

Keep in mind that Saudi Arabia is a culturally sensitive locale. Your pitch must nod to the local culture and business practices.

Stress on the fact that you are aligned with Vision 2030. This will attract the attention of investors as they would also want to fund projects that align with the national goals.

Prioritise transparency as you must communicate your financial needs clearly. This will include the ROI expected, along with your long term vision. 

Don’t Let The Challenges Get to You

Expect that this will be a journey full of challenges. However, this should not deter you. Here is a list of common challenges that you will have to overcome:

You may face regulatory hurdles. To solve them effectively, it is best if you work with local consultants who understand the laws in Saudi Arabia.

Saudi Customs need to be respected and upheld. Spend some time understanding what they are and how to respect them. Remember that patience is a virtue!

English is used in the Kingdom, but having a native Arabic speaker in your team will benefit you in the long run.

In Conclusion,

An exciting journey is ahead of you! Securing startup funding in Saudi Arabia may seem like a difficult task but with the right mindset, you will be able to achieve your goals. Follow our insider tips and use them as guidelines if you ever get lost along the way. Focus on understanding the market, building credibility, exploring funding options, and aligning your business goals with Saudi Vision 2030.

How Can SetHub Help?

We at SetHub know how business works in the Kingdom of Saudi Arabia, securing funding for startups included! If you feel like you could benefit from some professional help, you can schedule a call with one of our experts who will get back to you in under one business hour. Tailored advice is what we are about, so you can be rest assured that we will put in the extra effort to make your time worthwhile!