In recent years, the global startup ecosystem has emerged as a critical driver of innovation, entrepreneurship, and economic growth. Startups —typically young, high-growth companies that aim to disrupt industries with new ideas or technologies — play an increasingly important role in shaping the future of economies worldwide.

India and Saudi Arabia are uniquely positioned to collaborate and create a powerful start-up ecosystem due to their respective economic growth, demographic profiles, and strategic priorities.Both countries have shown strong commitment to fostering innovation and entrepreneurship, making them ideal partners in the global start-up landscape. Their convergence presents a unique opportunity for both countries to leverage each other’s strengths, foster innovation, and accelerate economic transformation.

The CII-Grant Thornton Bharat report, ‘Unlocking opportunities: India-Saudi Arabia start-up ecosystem convergence’ serves as a comprehensive guide, highlighting recent collaboration between India and the kingdom of Saudi Arabia in the start-up landscape. The report uncovers vast opportunities within the start-up ecosystem convergence and provides essential recommendations for investors, start-ups and policymakers to enhance and streamline this promising partnership.

Key highlights

1.

Strategic importance of India-Saudi Arabia collaboration

The convergence between India's high-growth start-up ecosystem and Saudi Arabia's dynamic entrepreneurial landscape is vital for fostering innovation, economic diversification, and cross-border investments.

2.

Comprehensive analysis of start-up ecosystem

The start-up ecosystems in both countries are examined in-depth, detailing key government stakeholders, policy frameworks, and initiatives that shape the entrepreneurial landscape. The analysis provides actionable insights for start-ups and investors aiming to leverage the opportunities in these markets.

3.

Sectoral investment trends and growth opportunities

Leading sectors in both India and Saudi Arabia that attract significant investments are examined, highlighting growth drivers, market size, and regulatory environment. Emerging high-potential sectors in Saudi Arabia are also identified, offering granular insights into their competitive dynamics and outlook.

4.

Unlocking the potential for cross-country collaboration

By exploring synergies in innovation, technology, and talent exchange, the report lays a roadmap for fostering cooperation between India and Saudi Arabia, paving the way for shared growth in a globalised economy. This report guides entrepreneurs, policymakers, and investors looking to tap into the combined strengths of these two rapidly growing economies.

Indian start-up ecosystem

India has rapidly emerged as one of the leading start-up ecosystems in the world. With over 100 unicorns and a vibrant digital economy, it is now the third-largest start-up ecosystem globally, after the US and China. As of 30 June 2024, over 0.14 million start-ups have been recognised by Department for Promotion of Industry and Internal Trade Government of India (DPIIT). This growth is fuelled by a young, tech-savvy population, a strong IT services industry, and government support through initiatives like Start-up India and the Digital India programmes.

Start-up ecosystem growth drivers in India

  • Programmes like Start-up India & Digital India to foster innovation and support start-ups
  • Improvement in Ease of Doing Business through simplified regulations and procedures
  • One-fourth of the world’s working population in the next decade will come from India
  • Institutions like IITs and IIMs producing top-tier talent equipped with technical and entrepreneurial skills
  • Dedicated government funds to support start-ups 
  • Robust venture capital and angel investment landscape
  • Numerous programmes, acting as accelerators and incubators to support early-stage start-ups
  • Growing digital public infrastructure facilitating innovation
  • Internet users: Rapid growth in internet users, enhancing market reach
  • Affordable internet: Low-cost internet access expanding digital connectivity

Saudi Arabia: A kingdom in transformation

Saudi Arabia is emerging as a robust ecosystem for entrepreneurship, with its start-up ecosystem maturing quickly and dramatically. Driven by reforms under the Saudi Arabia Vision 2030, the Saudi Government is committed to expanding the start-up ecosystem through introducing a wide range of services to the Saudi market for both local and foreign start-ups.

Saudi Arabia’s rapidly expanding market, high internet penetration, and strategic geographic location make it an attractive destination for start-ups seeking to enter the MENA region. The kingdom is also undergoing a digital transformation to boost the start-up ecosystem. Additionally, Saudi Arabia is home to the largest economy in the MENA region, with substantial government spending aimed at building innovation clusters and smart cities, such as the futuristic city of NEOM. This environment of economic transformation presents a compelling opportunity for start-ups to scale and contribute to the kingdom’s long-term goals.

Why convergence matters

The convergence of India’s high growth startup ecosystem and Saudi Arabia’s emerging entrepreneurial landscape offers a strategic partnership where both nations stand to benefit. India’s expertise in scaling startups globally, particularly in the areas of technology, IT services, and digital payments, complements Saudi Arabia’s vision for technological leadership and economic diversification. The increasing emphasis on sectors like artificial intelligence, fintech, and green energy in both countries aligns their start-up trajectories towards cooperation. 

Moreover, the commitment and progress of both countries in fostering a robust entrepreneurial ecosystem are evident from their performance in promoting innovation and creating a conducive environment for business creation. This alignment further underscores the potential for synergistic growth and collaboration.

India- Saudi Arabia start-up ecosystem convergence

Unlocking opportunities

India-Saudi Arabia start-up ecosystem convergence