Youth-led businesses drive Saudi Arabia's commercial growth with technology-focused sectors leading the charge
Saudi youth-owned companies now account for 38% of total active registrations as tech sectors boom.
Riyadh: The Kingdom of Saudi Arabia has witnessed a surge in youth entrepreneurship, with more than one-third (38%) of its total commercial registrations now held by businesses owned by Saudis under the age of 30.
According to data released by the Ministry of Commerce in mid-2025, the momentum behind these young-led companies is largely fueled by rapidly growing sectors such as app development and artificial intelligence (AI) technologies.In terms of specific growth rates, app development has seen an impressive 28% annual increase in registrations, resulting in a total of 18,780 commercial permits.
Meanwhile, AI-related business registrations have expanded by 34%, reaching 14,409 licenses within the same period.The e-gaming industry is also experiencing significant growth with a 32% expansion to reach 8,260 permits, while film and TV production grew by 20% to total 5,752 registrations.
The rise of these sectors reflects Saudi Arabia's strategic initiatives aimed at diversifying its economy away from oil by investing in high-technology industries.With 62.8% of the population under the age of 30, Saudi Arabia is focusing on equipping its youth with the necessary skills to succeed in a rapidly evolving job market.
Public-private partnerships and targeted training programs are designed to enhance digital literacy, entrepreneurial abilities, and industry-specific expertise across sectors such as renewable energy and tourism.Collaborations between major private sector players like PwC, NEOM, Aramco, and Red Sea Global with government-led initiatives aim to provide young Saudis with the opportunity to gain practical experience in their chosen fields.
For example, PwC's Hemam training program and Red Sea Global’s leadership development initiatives offer hands-on experience that aligns with current industry demands.To foster startup innovation, incubators such as The Garage play a critical role by providing resources and support networks for young entrepreneurs.
Despite these efforts, ongoing challenges remain in ensuring that education systems keep pace with labor market needs, requiring continuous partnership between businesses and academic institutions to sustain the talent pipeline.PwC's Riyadh Al-Najjar has emphasized the importance of an 'entrepreneurial mindset' for private sector growth, while Red Sea Global’s Zehar Filemban stressed the need for adaptability in a rapidly changing job market.
To address these needs, the government is committed to enhancing vocational training programs, Saudization initiatives, and providing incentives to attract and retain skilled professionals.
According to data released by the Ministry of Commerce in mid-2025, the momentum behind these young-led companies is largely fueled by rapidly growing sectors such as app development and artificial intelligence (AI) technologies.In terms of specific growth rates, app development has seen an impressive 28% annual increase in registrations, resulting in a total of 18,780 commercial permits.
Meanwhile, AI-related business registrations have expanded by 34%, reaching 14,409 licenses within the same period.The e-gaming industry is also experiencing significant growth with a 32% expansion to reach 8,260 permits, while film and TV production grew by 20% to total 5,752 registrations.
The rise of these sectors reflects Saudi Arabia's strategic initiatives aimed at diversifying its economy away from oil by investing in high-technology industries.With 62.8% of the population under the age of 30, Saudi Arabia is focusing on equipping its youth with the necessary skills to succeed in a rapidly evolving job market.
Public-private partnerships and targeted training programs are designed to enhance digital literacy, entrepreneurial abilities, and industry-specific expertise across sectors such as renewable energy and tourism.Collaborations between major private sector players like PwC, NEOM, Aramco, and Red Sea Global with government-led initiatives aim to provide young Saudis with the opportunity to gain practical experience in their chosen fields.
For example, PwC's Hemam training program and Red Sea Global’s leadership development initiatives offer hands-on experience that aligns with current industry demands.To foster startup innovation, incubators such as The Garage play a critical role by providing resources and support networks for young entrepreneurs.
Despite these efforts, ongoing challenges remain in ensuring that education systems keep pace with labor market needs, requiring continuous partnership between businesses and academic institutions to sustain the talent pipeline.PwC's Riyadh Al-Najjar has emphasized the importance of an 'entrepreneurial mindset' for private sector growth, while Red Sea Global’s Zehar Filemban stressed the need for adaptability in a rapidly changing job market.
To address these needs, the government is committed to enhancing vocational training programs, Saudization initiatives, and providing incentives to attract and retain skilled professionals.
