Saudi Arabia is on a mission to transform its economy, and one of the key areas it has identified for growth is the technology industry. The Kingdom is investing heavily in developing a thriving tech ecosystem, and the results are starting to show. Saudi Arabia is now home to a growing number of successful startups, and its tech industry is attracting investment and attention from around the world. Saudi Arabia’s tech sector is projected to contribute over 20 percent to the country’s GDP by 2030
This presents a significant opportunity for Pakistan, which has its own thriving tech scene. Pakistan is home to a large and tech-savvy population, with a growing number of startups and entrepreneurs entering the market. By collaborating with Saudi Arabia’s tech industry, Pakistani startups and entrepreneurs could tap into a larger market and access funding and resources that could help them scale and grow. The Vision 2030 agenda, a notable Saudi initiative that aims to reduce Saudi Arabia’s oil-dependency and diversify its economy, highlights the tech sector’s growth as a priority. Consequently, Saudi Arabia has launched several schemes and initiatives to endorse and assist tech startups and entrepreneurs.
One of the most significant of these initiatives is the Saudi Venture Capital Company (SVC), which was launched in 2018 with the aim of investing in Saudi startups and helping them grow. The SVC has already made several investments in Saudi startups, and it has also attracted investment from international firms. Another key initiative is the MiSK Innovation programme, which was launched by the Crown Prince Mohammad bin Salman in 2016. The programme provides training, mentorship, and funding to young Saudis with innovative ideas, and has already supported a number of successful startups.
These initiatives are paying off. According to a report by Magnitt, a Dubai-based startup data platform, Saudi Arabia’s startup ecosystem saw a record-breaking year in 2020, with $152 million invested across 71 deals. The report also noted that Saudi Arabia has the largest number of active investors in the Middle East and North Africa (MENA) region.This growth in the Saudi tech industry presents many opportunities for Pakistani startups and entrepreneurs. Saudi Arabia has a large consumer market, and there is growing demand for innovative tech solutions in areas such as e-commerce, fintech, and artificial intelligence. Pakistani startups and entrepreneurs could leverage their expertise in these areas to develop solutions that meet the needs of the Saudi market.
There are already examples of successful collaboration between Saudi Arabia and Pakistan’s tech industries. In 2019, the Saudi Arabian General Investment Authority (SAGIA) signed an agreement with the Pakistan Software Export Board (PSEB) to promote collaboration between the two countries’ tech industries. The agreement aimed to facilitate the exchange of knowledge, expertise, and resources between the two countries, and to promote joint ventures and investment opportunities.
One area of potential collaboration is in the development of e-commerce platforms. Saudi Arabia has a large and growing e-commerce market, and Pakistani startups and entrepreneurs have expertise in building e-commerce solutions. By partnering with Saudi businesses, Pakistani startups could develop innovative online marketplaces that meet the needs of the Saudi consumer.
Another area of opportunity is in the development of fintech solutions. Saudi Arabia has been working to modernize its financial sector, and there is growing demand for innovative digital payment solutions. Pakistani fintech startups have already made significant strides in this area, and could potentially partner with Saudi banks and financial institutions to develop new products and services. There is also potential for collaboration in the development of artificial intelligence and machine learning solutions. Saudi Arabia has been investing heavily in these areas, and Pakistani tech talent could contribute to the development of cutting-edge AI applications that could be used across various industries.
However, the success of this collaboration will depend on various factors, such as government policies, regulatory frameworks, and the availability of talent and resources. Both countries need to work together to create an enabling environment for startups and entrepreneurs to thrive, and to promote knowledge-sharing and collaboration across borders.
Saudi Arabia’s push for digital transformation extends beyond its domestic market. The Kingdom is also positioning itself as a technology hub for the wider Middle East and North Africa (MENA) region, with initiatives such as the Saudi Technology Development and Investment Company (TAQNIA), which aims to attract foreign investment in the Kingdom’s tech sector. This presents an opportunity for Pakistani startups and entrepreneurs to not only access the Saudi market but also potentially expand their reach to other countries in the region. By collaborating with Saudi businesses, Pakistani tech companies could establish themselves as leaders in the MENA tech scene and benefit from the growing demand for innovative solutions in the region.
In recent years, the relationship between Saudi Arabia and Pakistan has grown even stronger. In 2019, Saudi Arabia announced a $20 billion investment in Pakistan’s economy, which included investments in the energy, infrastructure, and technology sectors. The investment was seen as a major boost to Pakistan’s economy and its efforts to attract foreign investment. The collaboration between Saudi Arabia and Pakistan in the tech industry could build on this strong relationship and lead to further investment and economic opportunities. By working together to develop innovative solutions, the two countries could tap into new markets and create new business opportunities.
Many Pakistani tech professionals and entrepreneurs have historically left the country to pursue opportunities abroad, often due to a lack of resources and support in Pakistan. By collaborating with Saudi Arabia’s tech industry and attracting investment and resources, Pakistan could provide its tech talent with more opportunities to stay and contribute to the country’s economy.
Saudi Arabia’s thriving tech industry presents significant opportunities for Pakistani startups and entrepreneurs. By collaborating and leveraging each other’s strengths, the two countries can create innovative solutions that have the potential to transform various industries and benefit both their nations. Overall, Saudi Arabia’s efforts to promote and support its tech industry offer great potential for collaboration and growth between the Kingdom and Pakistan’s tech scenes.
However, the success of this collaboration will depend on various factors, such as government policies, regulatory frameworks, and the availability of talent and resources. Both countries need to work together to create an enabling environment for startups and entrepreneurs to thrive, and to promote knowledge-sharing and collaboration across borders.
