SAUDI ARABIA IS THE GRAVITATIONAL CENTER
The nascent ecosystem in MENA has soared exponentially with the region set to seed and harvest 45 new “billion dollar” startups by 2030. Although investor sentiment and capital inflow has been comparatively more cautious this year due to the strained macroeconomic outlook faced globally; the Saudi GDP’s size and the stock market’s volume has easily garnered strong investor appetite. Investors all over the world are convinced that KSA’s youth, high spending power and the rapid incorporation of next generation technologies will translate into high reaping benefits in the years to come.
In a report published by the Saudi Technology Ventures (STV), it is reiterated that the Kingdom has unarguably became the hub of investments in the MENA region. The strong appeal of the Saudi Market is attributed to its increasing talent pool, technological development and shift towards consumer centered practices brewed fairly by strong conducive macro-economic and regulatory reforms.
“The opportunity to exit through an IPO has a positive impact on the strategy and level of ambition of Mena tech companies who are transitioning from developing a mainstream, specialist offering to become attractive acquisition targets for global players, to develop solutions more adapted to the regional market with the vision of becoming self-sustaining regional leaders,” said STV.
STV predicts that the coming decade will witness the development of decacorns in the Kingdom. Among the crucial 45 unicorns that were funded this year, one has been predicted to bud into a decacorn at the valuation of around $ 20 billion and five of these will realize the worth of $ 5 billion by 2030. Additionally, thirteen of these startups are expected to be worth more than $ 2 billion by 2030.