Saudi Arabia’s entrepreneurial landscape is undergoing a major shift. Saudi youth-led businesses now make up 38% of all active commercial registrations. New data from the Ministry of Commerce reveals rapid growth in tech-driven sectors. This highlights the Kingdom’s push toward a knowledge-based economy.
App development leads the charge with an impressive 28% annual growth, resulting in 18,780 new commercial permits. Artificial intelligence follows closely, surging by 34% to reach 14,409 registrations. Meanwhile, the e-gaming industry expanded by 32%, totaling 8,260 businesses, while film and video production grew by 20%.
With 62.8% of the population under 30, Saudi Arabia is leveraging its young demographic to fuel economic diversification. Government initiatives and private-sector partnerships are equipping young entrepreneurs with digital skills, fostering innovation in AI, renewable energy, and tourism.
Major corporations like PwC, NEOM, Aramco, and Red Sea Global are actively supporting youth entrepreneurship. Programs such as PwC’s Hemam training and Red Sea Global’s leadership initiatives provide hands-on experience. They bridge the gap between education and industry demands. Startup incubators like The Garage further accelerate innovation.
However, challenges remain in aligning education with labor market needs. Riyadh Al-Najjar of PwC stressed the importance of an “entrepreneurial mindset.” Meanwhile, Red Sea Global’s Zehar Filemban emphasized adaptability in a fast-changing job market.
To maintain this growth, the government is expanding vocational training, Saudization programs, and incentives for skilled professionals. These efforts ensure that Saudi youth-led businesses continue thriving in high-potential sectors.
As the Kingdom advances its Vision 2030 goals, young entrepreneurs are proving to be key drivers of economic transformation. With strong private-sector support and targeted policies, Saudi youth-led businesses are set to play an even bigger role. They will shape the nation’s future.
