Foreign Startup Registration in Saudi Arabia Surges 118% in 2025
Foreign startup registration activity in Saudi Arabia is up 118% year over year, indicating a seismic shift in the country's startup ecosystem. As of mid-2025, the Ministry of Investment has issued 550 Riyadi licenses, a specialized permit designed to streamline market entry for international ventures. This surge reflects the Kingdom’s aggressive push to position itself as the MENA region’s entrepreneurial nucleus.
550 Riyadi Licenses Issued: What’s Driving the Uptick?
The Riyadi license is part of Saudi Arabia’s Startup Investment Registration program, offering foreign founders a fast-track into the local market. The license simplifies regulatory hurdles and provides access to government-backed support, including mentorship, prototype development, and investor matchmaking. The 550 licenses granted this year mark a dramatic leap from 2024, signaling growing global confidence in the Kingdom’s business climate.
$860M in VC Funding Fuels Foreign Interest
Saudi Arabia led MENA venture capital activity in H1 2025, raising $860 million across 114 deals, a 116% increase from the previous year. This funding boom has made the Kingdom a magnet for foreign startups seeking capital, partnerships, and regional expansion. The rise in foreign startup registrations in Saudi is closely tied to this influx of VC dollars, which has also driven a 31% increase in deal volume.
364 Incubator Licenses Expand Startup Infrastructure
To support this momentum, Monsha’at—the Small and Medium Enterprises General Authority—has issued 364 licenses to incubators and accelerators nationwide. These entities offer critical infrastructure for early-stage startups, including workspace, technical resources, and investor access. The expansion of this support network is a key factor in attracting foreign founders to the Saudi market.
Vision 2030 and Global Outreach Boost Registrations
Saudi Arabia’s Vision 2030 agenda continues to reshape its investment landscape. Recent legislative reforms, enhanced digital infrastructure, and targeted international outreach—via events like LEAP, Biban, and appearances at Web Summit and VivaTech—have amplified the Kingdom’s appeal. The foreign startup registration Saudi trend is a direct result of these efforts to globalize the local ecosystem.
Sector-Specific Licenses Offer Tailored Entry Points
Beyond the Riyadi license, the Ministry of Investment offers eight sector-specific permits for foreign investors. These include:
- Service licenses: 100% foreign ownership in IT, consulting, and hospitality
- Industrial licenses: For manufacturing operations
- Trade licenses: Covering wholesale, retail, and import-export
- Agricultural, mining, and real estate permits: For specialized ventures
All licenses are accessible via MISA’s centralized online portal, streamlining application and renewal processes.
Final Take: Saudi Arabia’s Startup Scene Is Open for Foreign Business
Foreign startup registration Saudi rose by 118% in 2025, while VC funding reached $860 million in just six months. Saudi Arabia is quickly becoming a top destination for global entrepreneurs. The Riyadi license is more than a permit; it’s a passport to one of the fastest-growing innovation hubs in the world.
Also Read: Charting the Course of Accelerated Growth in Saudi Retail Banking
