According to a recent report, the Middle East and North Africa (MENA) area has the potential to produce 45 digital start-ups worth close to $100 billion by 2030. Before the end of the decade, the MENA area, according to Saudi Technology Ventures (STV), could develop 45 businesses worth at least $1 billion apiece, including a $10 billion decacorn technology company.
That decacorn is expected to reach a value of $20 billion, five will be worth $5 billion, 13 worth $2 billion and 26 worth $26 billion, a total of $97 billion, according to STV’s report titled, From Startup to IPO, unlocking a $100 billion+ Opportunity.
The report produced by the venture capital fund cited the region’s youthful population, 55% under 30, growing at 1.6% per year, as well as its high average daily social media consumption of 3.5 hours.
The region also has the highest percentage of “unbanked” consumers, or those without bank accounts, at 45%, leading to large potential for fintech businesses, the report said.
STV described Saudi Arabia as the “gravitational centre” for the broader MENA catchment area, which also includes Central Africa, Southeast Europe and Southwest Asia.
The two main drivers of Saudi’s status as a hub for tech start-ups are its GDP, which account for one third of the region’s GDP and the size and depth of its stock exchange, STV said. New development programmes and company laws designed to encourage innovation and remove barriers also play a part.
