Saudi Arabia is inviting the world to invest in its sprawling trillion-dollar NEOM megaproject and advising potential backers to ignore the recent bumps along the road.

“The flywheel is starting and it will gain speed as we go forward, as some of the foundational assets come to the market,” Saudi Investment Minister Khalid Al-Falih told Reuters this week on the sidelines of the World Investment Conference in Riyadh.

The development in western Saudi Arabia – which features a 100-mile long vertical city, ski slopes and beach resorts – is the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 plan to overhaul the economy and wean it off dependence on the kingdom’s vast oil revenues. The Public Investment Fund, which owns NEOM, announced that the project’s longtime CEO stepped down this month while it has had to delay some of the project’s target completion dates.

Al-Falih says to be patient. “NEOM was not meant to be a two-year investable opportunity,” he told the news agency. “If anybody expected NEOM to be a foreign investment in two, three or five years, then they have gotten (it) wrong – it’s a generational investment.”

Asked if most of the spending on NEOM will continue to come from the PIF, Al-Falih said funds from abroad are expected to increase.

“I think foreign investors are starting to come to NEOM – they’re starting to channel capital,” he said. “Some of the projects that the PIF will be doing will be financed through global capital pools, through some alternative and private capital. That’s taking place as we speak.”

Morocco, which has banned cryptocurrencies since 2017, is preparing a law to allow their use, Central Bank Governor Abdellatif Jouahri said.

“Like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion,” Jouahri said Tuesday at the Regional High-Level Symposium on Financial Stability in Rabat.

Bank Al Maghrib, as the Central Bank is known, is also exploring the possibility of issuing its own digital currency, he said.

Moroccan law forbids cryptocurrencies, but their broad use is well-known as citizens find ways to bypass the restrictions. 

The Gulf has emerged as a dynamic hub for startups, attracting global attention with its investments, government-backed initiatives and an increasing number of venture capital funds. 

Here’s a glance at the region’s early-stage startup ecosystem, highlighting its growth over the past decade and the supportive frameworks fueling entrepreneurial growth.

In 2023, early-stage funding across pre-seed, seed, and Series A rounds surpassed $500 million across the region, a 12-fold increase from 10 years ago. Overall, VC funding in the Gulf rose in 2023 – despite a global decline – with Saudi Arabia overtaking the UAE as the region’s top recipient of VC investments.

Historically, the UAE and Saudi Arabia dominate these investments, with the UAE’s fintech and healthtech startups leading recipients of VC funds. Alma Health’s $10 million Series A exemplifies the momentum, alongside seed success stories like Ejari closing a $14.7 million seed round in October.  

The region now boasts around 60 to 80 active VC funds, including heavyweights like Mubadala Ventures in the UAE and STV in Saudi Arabia. Qatar and Oman are also fostering growth with targeted initiatives such as Qatar’s QBIC and Oman’s Innovation Hub.

Notable Exits and Milestones

Growth opportunities and the burgeoning vigor of the ecosystem can be traced through the increasing number of milestone moments for homegrown startups. 

Careem: Acquired by Uber for $3.1 billion in 2019, becoming a benchmark for regional unicorns.

Souq.com: Amazon’s $580 million acquisition of this e-commerce giant was pivotal in connecting global investors with the region.

Jahez: The Saudi food delivery app made headlines with its $2.4 billion IPO in 2021.

Floward: online flower and gift delivery platform, raised $156 million in a 2023 pre-IPO Series C round led by Aljazira Capital, Rainwater Partners, and STV marking the largest deal in Kuwait in 5-years. 

Government-Backed Initiatives

The GCC owes much of its startup boom to forward-thinking government initiatives. These programs combine entrepreneurship training with access to resources, capital, and world-class expertise among other benefits for founders 

Each country has unique offerings and accelerator programs. Here is a brief list of some of the programs 

Hub71 in Abu Dhabi is a cornerstone of the UAE’s Ghadan 21 program. The technology park provides startups with office space, visa assistance, access to investors, and industry-specific accelerator programming making it a magnet for global tech talent​.  

Dubai Silicon Oasis: This Free Trade Zone supports digital transformation startups, offering 100% foreign ownership and tax incentives​. It also hosts the Dubai Technology Entrepreneur Campus which is home to over a thousand startups from 90 countries.

Public Investment Fund: Saudi Arabia’s PIF, through programs like Aramco’s Wa’ed Ventures – supports the government’s Vision 2030 goals by investing heavily in accelerators and incubators​ and fostering technological innovation.

University-Led Programs:

King Abdullah University of Science and Technology (Saudi Arabia): Known for fostering sustainability-focused ventures.

Khalifa University (UAE): Offers seed funding and mentorship via its innovation center.

Qatar University: Promotes entrepreneurial activity through workshops and funding.

Sultan Qaboos University (Oman): Aligns its programs with the Omani government’s Vision 2040 program to emphasize sustainable development​.

These initiatives combine regulatory easing, financial incentives and innovation hubs to nurture startups. Governments are aggressively rolling out startup visas to attract talent, with the UAE leading the way through its “Golden Visa” program. Saudi Arabia’s Entrepreneurship License simplifies startup formation, further demonstrating the region’s commitment to economic diversification.

Despite remarkable growth, the GCC faces the same challenges as other developing ecosystems. Though there have been overall increases in early-stage VC funds, there is still limited access to growth capital in the region and cross-border expansion can be logistically complicated for startups.

Saudi Arabia’s drive to establish itself as a Middle East hub for international business while shifting its economy from dependence on oil is making progress, according to Investment Minister Khalid Al-Falih.

Speaking at the World Investment Conference in Riyadh on Monday, Al-Falih said more than 550 firms have established regional headquarters in the kingdom, making reference to announcements last week by Citibank and Morgan Stanley on their expanded Saudi offices.

Saudi Arabia introduced a policy this year requiring foreign firms to set up regional hubs in the kingdom as a prerequisite to winning government contracts. Compliance comes with perks, including a 30-year exemption from corporate income tax and access to discounts and support services.

Al-Falih, who is trying to coax more countries to put their money in Saudi Arabia, opened the conference by reporting that foreign direct investment has tripled since 2016, when the kingdom introduced its Vision 2030 economic overhaul plan.

“We are confronted with crosswinds to global investments – driven forward on one hand by the tech revolution, booming stock markets, and the onset of promising monetary policies, while constrained on the other hand by geopolitical instabilities, trade barriers, and talent and skill shortages,” Al-Falih said.

Saudi leaders are amplifying their message that foreign investment is a two-way street.

As the kingdom’s 27th World Investment Conference kicks off today in Riyadh, Cabinet ministers and other top officials are letting other nations know that putting money into the Saudi economy would be especially appreciated after decades of their being on the receiving end.

In a warm-up statement before the conference, Saudi Investment Minister Khalid Al-Falih said: “We look forward to welcoming investment leaders from around the world to forge partnerships that will benefit both the kingdom and global economies.”

Saudi Arabia’s inflows of foreign direct investment barely rose in the first half of the year from the same period in 2023, contributing to delays in the target dates for several projects that are part of the kingdom’s Vision 2030 economic overhaul plan.

Among the conference speakers: Saudi Minister of Economy and Planning Faisal Alibrahim; Prince Sultan bin Khalid, CEO of the Saudi Industrial Development Fund; Egyptian Investment Minister Hassan Khatib; Alastair King, Lord Mayor of London; Christophe Farnaud, EU Ambassador to Saudi Arabia and Nivruti Rai, CEO of Invest India.

Meanwhile, Saudi Arabia’s credit rating was raised by Moody’s Investors Service for the first time, citing the kingdom’s efforts to diversify its economy beyond oil.

And Saudi regulators granted licenses to Citigroup and Morgan Stanley to set up regional headquarters in Saudi Arabia, a prerequisite for getting government contracts in the kingdom.

Bill Gates crisscrossed Abu Dhabi this week as an evangelist for the many applications of AI technology.

The Microsoft founder and philanthropist came to the UAE’s capital to participate in an event showcasing the benefits artificial intelligence can offer farmers and agricultural industries, particularly in Africa.

Together with Mariam Almheiri, head of International Affairs at the UAE Presidential Court, Gates discussed progress on the $200 million partnership formed between the UAE and the Bill & Melinda Gates Foundation at last year’s COP28 climate summit in Dubai. Microsoft is investing $1.5 billion in Abu Dhabi-based G42 to fund data centers and work on AI projects.

Among the projects Gates highlighted at the event on Wednesday was AgriLLM, which focuses on fine-tuning the open-source Falcon large language model to improve agricultural research and development knowledge. AgriLLM aims to synthesize complex agricultural research into accessible, actionable insights for farmers and extension workers.

Gates also taught a 30-minute “masterclass” for students at the CNN Academy Abu Dhabi and several UAE universities, which focused on how AI and other emerging technologies can address global challenges such as disease eradication, climate change, and food security in underserved regions.

Gates met separately with billionaire developer Hussein Sajwani, Chairman of DAMAC Properties, to talk about charitable activities.

Qatar and the UAE are making new efforts to strengthen commercial ties with shared interest in shifting their economies away from dependence on oil and gas.

Khalid Al-Mana, Qatar Development Bank’s Vice President of Enterprise Development, brought executives from 25 companies – including Doha Cables, Delta Corp., Dderve, Q Ceramic and Doha Plastic – on a relation-building trade mission to Dubai this week. Among the group were firms with interests ranging from artificial intelligence and sports technology to construction, steel and food.

In an interview with The Circuit, Al-Mana highlights Qatar’s strategic focus on economic diversification. QDB is making particular efforts to support small and medium-sized businesses, or SMEs, promoting exports and facilitating greater activity by Qatari companies in global markets. The interview has been edited for length and clarity.

How does QDB envision its role evolving in the next decade?
Qatar Development Bank is a government institution that was established in 1997. The purpose of the bank is to promote the private sector and entrepreneurship in the country outside of the oil and gas market. As you know, Qatar is very successful in developing its oil and gas industry and markets worldwide. However, with this comes the challenge of diversification, and it’s the role of the bank to create a more diverse economy.

How does the bank address the finance challenges businesses are facing?

At the bank, we have several arms. One of the arms, of course, is exports and we have a dedicated exports department called Tasdeer. In this department, we look at both developing SMEs through workshops and through our “Go Global” accelerator, which is an award-winning accelerator dedicated to helping local industries export to international markets.

It involves giving them a tool kit for their target markets. So we would try to identify the target market for each SME, and we would develop a tool kit for them to try to penetrate these markets, which goes all the way down to identifying the buyers in these markets so they can deal-make for their exports. This is under the development arm for exports.

In the past, under the finance arm for exports, we were doing only short-term lending through credit insurance and through raw material and bill discounting financing. However, just about a month or two ago, we launched a variety of new products and we have a lot of hopes for these new products to support our private sector and gain more global presence.

What strategies has QDB implemented to enhance Qatar’s global competitiveness?

These products are in line with what leading export credit agencies offer in other countries, such as buyer credit. So we would finance the buyers of Qatari goods and services, and as well, we would provide project finance for Qatari contractors who are seeking to do contracting abroad. Our EPC contractors now have the ability to approach us at Qatar Development Bank and get financing for the projects that they are awarded in foreign countries.

How do you help Qatari companies raise money for international activities?

There are products such as international finance where a Qatari company would like to have a presence in an international market. They would like to either open a branch or extend their businesses in other countries. We now have the ability to finance Qatari companies to expand into international geographies. All these were not available in the past, but currently, they are available with QDB.

Yasir Al-Rumayyan, Governor of Saudi Arabia’s Public Investment Fund, sat with U.S. President-elect Donald Trump and billionaire Elon Musk in ringside seats at the United Fighting Championship’s UFC 309 event on Saturday night in New York’s Madison Square Garden.

Al-Rumayyan, who is also Chairman of Saudi Aramco, the world’s biggest oil company, as well as the PIF-owned LIV Golf tournament and English football club Newcastle, showed up in a photo posted on Musk’s X social media platform, chatting with fellow golf lover Trump while watching the fights.

Al-Rumayyan has been negotiating for the past two years over a proposed merger with the PGA golf tour after luring some of the top professional golfers with paychecks of over $200 million. The two sides, along with Europe’s DP World Tour, reached a framework merger agreement in June 2023 that has yet to be finalized.

The former President’s Trump National Golf Club in Bedminister, N.J., hosted LIV Golf tournaments in 2022 and 2023.