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.
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 the Department for Promotion of Industry and Internal Trade Government of India (DPIIT). A young, tech-savvy population fuels this growth, a strong IT services industry, and government support through initiatives like Start-up India and the Digital India programmes.
Saudi Arabia: A Kingdom in Transformation
Saudi Arabia is emerging as a robust ecosystem for entrepreneurship, with its startup 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 by introducing a wide range of services to the Saudi market for 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 to build 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 from which both nations stand to benefit. India’s expertise in scaling startups globally, particularly in 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.
India and Saudi Arabia are uniquely positioned to collaborate and create a robust start-up ecosystem due to their respective economic growth, demographic profiles, and strategic priorities. Both countries are firmly committed 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.
Unlocking Opportunities
The CII-Grant Thornton Bharat report, ‘Unlocking opportunities: India-Saudi Arabia start-up ecosystem convergence’, serves as a comprehensive guide, highlighting the 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 from the report include:
- The 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.
- Comprehensive analysis of the 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 startups and investors aiming to leverage the opportunities in these markets.
- Sectoral investment trends and growth opportunities
Leading sectors in 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.
- 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.
