Saudi Entrepreneurial Drive Hits 8-Year High: GEM Report

Saudi Arabia has recorded its highest level of entrepreneurial intention in eight years, with 42 percent of adults in the Kingdom now planning to launch their own businesses within the next three years, according to the National GEM Report 2024-2023 released during the Biban24 Forum in Riyadh. The report, produced by Prince Mohammed Bin Salman College of Business and Entrepreneurship (MBSC) in partnership with Babson Global and launched under the umbrella of the Small and Medium Enterprises General Authority (Monsha’at), was unveiled at the Riyadh Front for Exhibitions and Conferences during the forum, which ran from November 5 to 9 under the slogan “A Global Destination for Opportunities.”

The findings, announced via the Saudi Press Agency, offer one of the clearest signals yet that the Kingdom’s economic transformation is reshaping how its citizens view career opportunities, risk, and innovation. The report also placed a special focus on the growing role of women entrepreneurs, documenting how Saudi women are contributing to a business landscape that has expanded dramatically in scale and ambition over the past decade. For an international audience watching Saudi Arabia’s diversification journey, the data provides measurable evidence that Vision 2030’s entrepreneurship agenda is moving from aspiration to activity. How did a Kingdom long associated with public-sector employment become one of the world’s most entrepreneurially optimistic economies?

Context and Background

The National GEM Report is part of the Global Entrepreneurship Monitor, the world’s longest-running study of entrepreneurial activity, spanning more than 100 economies. The 2024-2023 edition marks the eighth consecutive national report for Saudi Arabia, a sustained research effort that allows policymakers, investors, and academics to track the evolution of the Kingdom’s business environment over time. The report is a collaboration between MBSC, Babson Global, and Monsha’at, institutions that have worked together to build an ecosystem benchmarked against international standards while remaining tailored to local market realities.

The timing of the launch is significant. Biban24, organized by Monsha’at, has grown into one of the region’s largest gatherings of entrepreneurs, investors, and support organizations, and the report’s release on that stage underscores how central entrepreneurship has become to Saudi economic policy. The forum’s slogan, “A Global Destination for Opportunities,” reflects a dual ambition: nurturing domestic founders and attracting international entrepreneurs to explore the growing Saudi market. Where does the Kingdom’s entrepreneurial surge fit within the broader story of its economic diversification?

Under Vision 2030, launched in 2016 under the leadership of Crown Prince Mohammed bin Salman, Saudi Arabia has pursued a deliberate strategy of reducing dependence on oil revenues by expanding the private sector, empowering small and medium enterprises, and opening new sectors to investment. The GEM report effectively serves as an independent scorecard on how those policies are translating into public attitudes and business formation.

Key Details from the National GEM Report

The headline figure is striking: 42 percent of adults in Saudi Arabia intend to start a business within three years, the highest level of entrepreneurial intention recorded in eight years. This figure reflects not only ambition but also a shifting cultural perception of self-employment as a viable and respectable career path. Complementing this, the report found that early-stage entrepreneurial activity, defined as businesses operating for less than 42 months, increased by one-third compared to 2022, rising to 25 percent of the adult population.

Even more notable is the performance of mature businesses. Established Business Ownership jumped 40 percent to a record high of nearly 14 percent, a statistic that suggests Saudi founders are not merely starting companies but sustaining them beyond the vulnerable early years. According to MBSC dean Dr. Zeger Degraeve, “The latest national report reaffirms the ongoing progress of the Kingdom’s dynamic entrepreneurial ecosystem. As the economy diversifies, the supportive environment established by Saudi Arabia serves as a catalyst for SME growth.” He added that the findings “fill us with optimism, but they also remind us of our responsibilities,” noting that MBSC will continue developing the Kingdom’s next generation of transformative leaders.

The report also highlighted a distinctive feature of Saudi entrepreneurship: a strong orientation toward social and environmental impact. According to the 2023 GEM data, 80 percent of entrepreneurs and 84 percent of established business owners prioritize social or environmental impact alongside profitability or growth. This alignment with Vision 2030’s quality-of-life and sustainability goals suggests that Saudi founders are increasingly measuring success in terms broader than financial return alone.

Women Entrepreneurs and the Changing Face of Saudi Business

A special focus of the 2024-2023 report is the role of women entrepreneurs, whose participation in the Saudi economy has expanded markedly in recent years. Legal and regulatory reforms, including changes to business licensing, guardianship rules, and workplace participation, have removed many of the barriers that previously limited female entrepreneurship. Today, Saudi women are launching ventures across e-commerce, technology, creative industries, and professional services, supported by dedicated financing programs and incubators.

The GEM data situates these developments within a broader regional and global context, where women’s entrepreneurship is increasingly recognized as a driver of economic growth. For Saudi Arabia, the participation of women is not a peripheral social question but a core economic imperative: Vision 2030 targets aim to raise women’s labor force participation substantially, and female-founded SMEs are a key channel for achieving that goal. What does the rising visibility of women founders signal about the depth of the Kingdom’s economic transformation?

Professor Muhammad Azam Roomi, GEM Saudi Arabia team lead, emphasized continuity and momentum: “The 8th consecutive edition of the report underscores the Kingdom’s thriving entrepreneurial landscape, reflecting the ongoing diversification of its economy. Saudi Arabia’s steadfast support for SMEs serves as a vital engine for growth.” His remarks point to a policy environment that treats small business as infrastructure for national development rather than a niche concern.

International and Regional Impact

Saudi Arabia’s entrepreneurial trajectory carries implications well beyond its borders. As the largest economy in the Arab world and a G20 member, the Kingdom’s business environment influences investment flows, talent mobility, and startup activity across the Gulf and the wider Middle East. The GEM report’s findings are likely to be read closely by international venture capital firms, multinational corporations, and diaspora entrepreneurs evaluating the Saudi market as a base for regional expansion.

The Biban24 Forum itself reflects this international orientation, convening participants from across the world to explore partnerships and investment opportunities. The report is expected to provide in-depth insights for investors and decision-makers, helping to accelerate the growth of emerging businesses and enhance the investment climate. In a region where several economies are pursuing similar diversification strategies, Saudi Arabia’s ability to demonstrate measurable progress in entrepreneurial intention and business survival gives it a competitive edge in attracting global capital and expertise. Could the Kingdom’s entrepreneurship data become a benchmark for other emerging economies navigating similar transitions?

Economic and Strategic Significance

The economic logic behind Saudi Arabia’s entrepreneurship push is straightforward: SMEs are among the most effective engines of job creation, innovation, and resilience in diversified economies. A 42 percent entrepreneurial intention rate implies a large pipeline of future founders, while the 40 percent rise in established business ownership suggests that the ecosystem is retaining businesses past the startup phase. Together, these indicators point to a maturing environment rather than a temporary spike in enthusiasm.

At the same time, the report identifies a persistent obstacle: fear of failure. Although 93 percent of Saudis perceive ample opportunities for starting businesses, more than 57 percent of those who see these openings say fear of failure would hold them back. Addressing this gap through mentorship, education, financing, and role models is a central task for institutions such as Monsha’at and MBSC. Dr. Degraeve’s acknowledgment that the findings “remind us of our responsibilities” captures the dual nature of the data: encouraging, but not complacent.

Strategically, the entrepreneurship agenda supports several Vision 2030 pillars at once: private-sector growth, non-oil GDP expansion, women’s economic participation, and the development of a knowledge-based economy. Each new established business contributes to tax revenue, employment, and export capacity, while also strengthening the Kingdom’s position as a hub for innovation in sectors from logistics to tourism to technology.

Vision 2030 Alignment

The National GEM Report 2024-2023 is, in effect, a progress report on Vision 2030’s economic ambitions. The surge in entrepreneurial intention and established business ownership aligns directly with the program’s goal of a thriving private sector, while the emphasis on social and environmental impact mirrors its quality-of-life and sustainability objectives. The special attention given to women entrepreneurs reflects the broader national effort to expand female participation across the labor market and business ownership.

As Saudi Arabia continues its transformation, the Kingdom’s institutions are positioning entrepreneurship not as a side project but as a central pillar of long-term prosperity. The collaboration between MBSC, Babson Global, and Monsha’at demonstrates a commitment to evidence-based policymaking and to building an ecosystem that meets international standards while serving local needs. The report’s findings will inform investors, educators, and decision-makers as they work to convert ambition into sustainable enterprise. For a Kingdom writing a new chapter in its economic history, the message of the GEM data is clear: the appetite for innovation is strong, the support structures are in place, and the next generation of Saudi founders is ready to build.

20 Questions

Q1. What is the National GEM Report 2024-2023?

A1. It is the eighth consecutive Saudi edition of the Global Entrepreneurship Monitor report, produced by MBSC in partnership with Babson Global and Monsha’at, assessing entrepreneurship trends across the Kingdom.

Q2. Where and when was the report launched?

A2. It was launched during the Biban24 Forum, held from November 5 to 9, 2024, at the Riyadh Front for Exhibitions and Conferences under the slogan “A Global Destination for Opportunities.”

Q3. What percentage of Saudi adults intend to start a business within three years?

A3. The report found that 42 percent of adults in the Kingdom intend to launch their own businesses within the next three years, the highest level recorded in eight years.

Q4. How did early-stage business activity change compared to 2022?

A4. Early-stage entrepreneurial activity, covering businesses operating less than 42 months, increased by one-third compared to 2022, rising to 25 percent.

Q5. What is Established Business Ownership and how did it perform?

A5. Established Business Ownership measures mature businesses; it jumped 40 percent to a record high of nearly 14 percent, indicating improved business survival beyond the startup phase.

Q6. Which organizations produced the report?

A6. Prince Mohammed Bin Salman College of Business and Entrepreneurship (MBSC), Babson Global, and the Small and Medium Enterprises General Authority (Monsha’at) collaborated on the report.

Q7. What did MBSC dean Dr. Zeger Degraeve say about the findings?

A7. He said the report reaffirms progress in the Kingdom’s entrepreneurial ecosystem, that Saudi Arabia’s supportive environment catalyzes SME growth, and that the findings inspire optimism while reminding institutions of their responsibilities.

Q8. What did Professor Muhammad Azam Roomi emphasize?

A8. The GEM Saudi Arabia team lead said the eighth consecutive edition underscores the Kingdom’s thriving entrepreneurial landscape and economic diversification, with SME support serving as a vital engine for growth.

Q9. How do Saudi entrepreneurs view social and environmental impact?

A9. According to 2023 GEM data, 80 percent of entrepreneurs and 84 percent of established business owners prioritize social or environmental impact alongside profitability or growth.

Q10. What challenge does the report identify?

A10. Fear of failure remains a barrier: while 93 percent of Saudis see opportunities for starting businesses, over 57 percent of those who perceive these openings say fear of failure would hold them back.

Q11. Why is the report’s focus on women entrepreneurs significant?

A11. It highlights the expanding role of Saudi women in business, supported by reforms and financing programs, and reflects Vision 2030 goals to raise women’s participation in the economy.

Q12. What is the Biban24 Forum?

A12. Biban24 is a major entrepreneurship event organized by Monsha’at, serving as an international platform for exploring opportunities, supporting innovation, and connecting founders, investors, and decision-makers.

Q13. How does the report relate to Vision 2030?

A13. Its findings align with Vision 2030 goals of private-sector growth, non-oil economic expansion, women’s participation, sustainability, and the development of a knowledge-based economy.

Q14. What does the 93 percent opportunity perception figure indicate?

A14. It shows that the vast majority of Saudis believe good opportunities exist for starting a business, reflecting a positive view of the market environment and available support.

Q15. Who benefits from the report’s insights?

A15. Investors, policymakers, educators, and entrepreneurs can use the data to understand market trends, design support programs, and accelerate the growth of emerging businesses in the Kingdom.

Q16. Why is the eighth consecutive edition noteworthy?

A16. It demonstrates sustained research commitment and allows long-term tracking of entrepreneurship trends, showing consistent progress rather than a one-time spike in activity.

Q17. What role does Monsha’at play in Saudi entrepreneurship?

A17. Monsha’at is the Small and Medium Enterprises General Authority, responsible for supporting SME growth, organizing events like Biban24, and building an ecosystem that meets international standards.

Q18. How does the report describe the Saudi entrepreneurial ecosystem?

A18. It describes a thriving ecosystem across all stages, with rising early-stage activity, record established business ownership, and growing emphasis on innovation, self-employment, and social impact.

Q19. What makes Saudi Arabia attractive to international entrepreneurs?

A19. A growing market, supportive government policies, world-class events like Biban24, and a maturing ecosystem create opportunities for local and international entrepreneurs to explore Saudi market potential.

Q20. What is the forward-looking message of the report?

A20. The report signals strong entrepreneurial ambition, improving business survival, and sustained institutional support, positioning entrepreneurship as a central pillar of Saudi Arabia’s long-term economic transformation under Vision 2030.

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