Saudi Arabia was titled as the “gravitational centre” for scaling tech unicorns, based on the country’s GDP and stock exchange size

Over 45 start-ups valued at $1 billion is expected to grace the MENA region by 2030, a new study by conducted by Saudi Arabian technology venture capital fund STV said.

The prediction by STV is based on technology, consumer adoption, broad macroeconomic and regulatory reforms and a growing talent pool – all of which cater to the MENA’s technology-driven population.

“We believe the region can output 45 unicorns by 2030, and can create digital giants that can list on public markets, remain independent, and keep their focus on delivering innovative solutions tailored to local needs,” STV said.

Almost 70 percent of MENA venture capital investments were deployed in the UAE over the study period, STV said, adding that it is because of the country’s continued efforts to consistently facilitate access to talent.

“It has also fostered an active ecosystem through favorable regulations and a startup-friendly environment that incentivizes entrepreneurs to choose the country as their launchpad,” the report said.

In the MENA region, Saudi Arabia in particular, was titled as the “gravitational centre” of the region’s catchment area, in terms of scaling technology companies.

The country’s “power of attraction,” the report said, resides in two drivers – GDP size and stock exchange size and depth, which will pave the way for more for initial public offerings (IPOs).

“The opportunity to exit through IPO positively impacts the strategy and the level of ambition of MENA tech ventures that are moving from developing a specialized and conventional offering to become attractive acquisition targets for global players, to developing solutions tailored more to the regional market with the vision to become self-sustainable regional leaders,” the report said.

Saudi Arabia is also emerging as the largest market for ventures in the MENA region, the report said, adding the market can allow companies to scale exponentially over the next seven years.

“We expect to see more businesses gravitate towards Saudi Arabia, as we have seen with Amazon.com and the San Francisco startup Cambly, an English-language learning community. Such activity will no doubt further support Saudi Arabia’s VC growth,” STV said.

https://www.arabianbusiness.com/middle-east/mena-region-to-see-45-unicorns-worth-over-100-billion-by-2030-led-by-saudi-arabia