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It is now almost impossible to imagine the Saudi economy without a thriving startup scene and female entrepreneurs.
Less than a decade ago, things were very different.
“There was literally no ecosystem for startups,” Maha Shira, one of Riyadh’s first Saudi female entrepreneurs, told DW.
Starting a business was especially difficult for women.
When Schiller opened the country’s first women’s workspace in 2014, laws still limited women’s participation in many industries.
After 10 years, the Saudi Ministry of Commerce released a comprehensive list The local startup environment is not only thriving, but driven by women across all industries.
“Saudi Arabia receives a perfect score of 100 for laws that affect women’s decisions to work, laws that affect women’s wages, restrictions on women’s ability to start and run businesses, and laws that affect the amount of women’s pensions. ‘, the World Bank recently announced. Report Women, Business and Law 2024 concluded.
The Kingdom of Saudi Arabia’s 2021-2022 Women’s Report also stated that 95% of Saudi women listed entrepreneurship as a good career option.
Although current statistics on female labor force participation and female entrepreneurship are not yet published, trends are clear.
“From 2017 to 2021, Saudi Arabia’s female labor force participation rate doubled from 17.4% to 35.6%, comfortably exceeding the Vision 2030 goal of increasing it to 30%,” said a visiting think tank based in Washington. said researcher Tim Cullen.Written by Arab Gulf States Institute, January 2024.
There is no doubt that Vision 2030, a series of social and economic reforms introduced by Saudi Crown Prince Mohammed bin Salman in January 2016, is a key driver of this process.
Part of the review includes increasing women’s participation in the workforce, tackling pressing unemployment issues, increasing the diversification of oil revenues and opening up the country to tourists.
Structuring the Saudi startup scene
“I remember very well that before 2017, there were very few courses in schools and universities that focused on startups and entrepreneurship,” Schiller said.
She also recalled that starting a business was an option only for the wealthy and was “considered a stigma” for everyone else.
But thanks to government efforts, “anyone with a solid idea can now become an entrepreneur, including women,” she says.
Over time, the government even became one of the most active investors in the local startup scene.
For example, technology summit Leap24 in March this year recorded a staggering $11.9 billion in investments.By the Saudi Ministry of Communications and Information Technology.
In Schiller’s view, the Saudi startup scene is already quite strong and continues to grow. She believes that we will need more startup accelerators and incubators going forward.
Startup incubators help early-stage startups develop their ideas into businesses. Accelerators support existing businesses with resources and mentorship.
Incubators and accelerators are the next step
Advising startups is a new endeavor for Saudi entrepreneur Mariam Mossari, who has been advocating for women’s empowerment for years through her nonprofit organization Under the Abaya. (An abaya is a robe-like dress that covers the entire body except the head, hands, and feet.)
In 2024, Mossari launched C-Suite Advisory, an investment and business consultancy firm. The term C-Suite refers to a leadership position in a company, such as the CEO (Chief Executive Officer) or her COO (Chief Operating Officer). She also invested in several women-run startups.
“As a female entrepreneur myself, I know first-hand the challenges we face,” she told DW, adding: “It’s time to put our money where our mouth is.”
One of the startups Mossari advises on is Sirene, a third-party e-commerce luxury fashion retail company recently founded by Saudi entrepreneur Basma Barzangi.
“I’m nervous about the future because we’re still at the pre-seed stage and actively looking for investors,” Barzangi told DW.
But as an entrepreneur, he says he has learned to accept setbacks as “part of the journey.”
“It’s important to remember that even failure is just a stepping stone to success,” she says.
Her views also illustrate the change.
“For decades, the concept of failure has been frowned upon in Saudi Arabia,” Sebastian Sands, a senior researcher at the Orient-affiliated German Center for Applied Research, told DW.
“This is changing as more young people realize that failure can be part of the business experience and are willing to take that risk,” he said.
Startup as a strategy for nation branding
Nurturing a vibrant startup scene makes sense not only for society but also for the Saudi government, Sons said.
“The emphasis is on economic diversification because the state can no longer absorb many public sector employees and needs to strengthen the private sector,” he said. “The second reason is the external and internal impact of startup support.”
On the other hand, he said, the government has indicated that it is promoting individual initiatives through startups as part of nation branding.
Son said there was another factor as well: “This is also part of Crown Prince Mohammed bin Salman’s efforts to consolidate his power in the country.”
But just because more women have the opportunity to become entrepreneurs, the situation for women’s rights in Saudi Arabia is not perfect.
According to Human Rights Watch World Report 2024, “Further legal reform remains severely undermined by widespread repression under de facto ruler Crown Prince Mohammed bin Salman, and many women’s rights activists, including Loujain al-Hathleman, He remains prohibited from traveling and is serving a suspended prison sentence.
Editor: Kara Breiker
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