- Riyadh is becoming an entrepreneurial hub thanks to government support and a wealth of untapped potential markets there. Many entrepreneurs from across the globe are moving there to start or expand their companies. Three successful women in business in Saudi Arabia shared their insights at Fortune’s Most Powerful Women International Conference in Riyadh, Saudi Arabia, on Tuesday.
Not only is Riyadh considered the main financial hub in Saudi Arabia, it’s also becoming an epicenter for entrepreneurship in the Middle East.
Almost 50% of entrepreneurs of tech companies in Riyadh created their companies since 2016, meaning there has been huge growth of these businesspeople moving to and establishing themselves in the kingdom, said Lateefa Alwaalan, at Fortune’s Most Powerful Women International conference in Riyadh on Tuesday. The panel was moderated by Saudi journalist Lama Alhamawi, a reporter for Arab News. She also has her own podcast, Discussions, which is focused on social impact and education.
Alwaalan, managing director of entrepreneurship community Endeavor Saudi Arabia and founder of coffee brand Yatooq, cited a study published by her group regarding the movement of entrepreneurs—whether from around the kingdom to Riyadh or from across the world to Riyadh. The study discovered founders from 40 countries decided to found their company or expand there.
The No.1 reason founders said they chose Riyadh was a large consumer base, followed by building a “first-mover advantage,” or coming to Riyadh to establish a presence. Of entrepreneurs in Riyadh, 4% are women who are local, while 13% are women who have moved there, Alwaalan said.
“And when you ask them why, they would say, we feel safe to come and start our business here, which is really a positive thing to see,” Alwaalan said. “There is also a strong appetite coming from entrepreneurs themselves wanting to establish here.”
Shahad Geoffrey, cofounder and CEO of fashion e-commerce tech company Taffi, said there are a number of initiatives in the kingdom designed to help startups succeed.
She cited the National Technology Development Program (NTDP), which helps tech-focused companies in the kingdom to grow. One of the benefits includes helping to pay for payroll, which she called “incredible government support.”
“I think it’s a golden time for entrepreneurs,” Geoffrey said. “If you want to start something, you have zero risk, actually, and try it out and see how the market responds. Of course, there should be a need for what you’re doing, but I think that’s one angle of why people are coming and building here.”
Yara Ghouth, cofounder and commercial director of expense management tech company Nqoodlet, added it’s also within Saudis’ nature to build a bustling startup ecosystem.
“What’s important is just to talk to as many locals and get connected to them,” Ghouth said. “I promise you—every person will open as many doors for you as possible. This is something in our culture, where we love to give back. We love to help. We love to welcome people.”
This story was originally featured on Fortune.com
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