Saudi Arabia has witnessed a significant growth in the entrepreneurial ecosystem during the past five years, as the government, in addition to other entities including the private sector, has begun supporting it more, Nawaf Al Sahhaf, CEO of Badir, told Argaam in an exclusive interview.
During the interview, Al Sahhaf chalked out how Badir program is implementing a number of projects in the fields of innovation and digital entrepreneurship in the Arab world, in an attempt to serve entrepreneurs, innovators and startups.
Badir has also begun a program for the Arab Network for ICT Incubators and Technological Cities, via 22 business incubators and 19 technical business parks in the Arab world, to share ideas and notions on how to promote the regional business' incubators industry.
He also called for providing additional support for Saudi entrepreneurs, whom he said, are still facing various challenges when starting up, including regulations and bureaucracy, and access to funding and talent.
Excerpts from the interview:
Q: Can you describe Badir program’s 2019 projects?
A: We are now working on the development of a business model under commercial privileges system (franchise) of Badir program. The aim is to achieve a greater reach within the Kingdom and other Middle East countries, particularly after the growing demand for our services which carried a prominent role in supporting startup technical projects, and helping entrepreneurs to develop their ideas and turn them into successful ventures.
Also, one of our new incentives for startups is the new investment strategy of Badir program that aims to bridge the funding gap, which in turn, hinders emerging companies from turning into businesses that are capable of attracting investments.
Today, Badir is focusing on expanding its innovation and entrepreneurial hubs across the Kingdom in order to achieve its KPIs of creating 600 startups and 3,600 jobs by 2020.
Q: How was 2018 for Badir? How much did the Saudi startups raise in 2018?
A: The program currently has 320 technical projects incubated through its eight incubators. Total funding for startups under the Badir Program has reached SAR 275.268 million since inception until the end of 2018.
Read: Badir launches first business accelerator to support Hajj and Umrah sector
Q: How will running the Pan-Arab Technology Incubator’s Network highlight Saudi Arabia as an ideal destination for tech startups?
A: The International Telecommunication Union (ITU) selecting the Saudi Arabia to manage Arab Network for Technology Incubators confirms the Kingdom’s prominent role in supporting innovation and entrepreneurship across the Arab region.
Despite the effectiveness of the online reach among incubators and technoparks and the trainings conducted so far, ITU and Badir have identified an area that requires particular attention which is reflected by the ‘lack’ of regular meetings among those two parties.
The scope of the project starts with the creation of an ARTECNET portal that will facilitate the exchange of knowledge and information between all stakeholders, members and non-members in the space of incubators and techno parks in the Arab world.
Furthermore, the soft-landing program/platform realized through this project will provide online access to the package of services offered by ARTECNET, increase member interaction and knowledge sharing, and it will enable startups to establish operations in different Arab countries.
Q: How does Badir program fit into the wider goal of the Saudi government to encourage foreign investments?
A: In 2018, we launched the new Soft Landing Program to attract business startups in the GCC countries and the Middle East, as well as the US, UK, East Europe, Malaysia and Singapore to enter the Saudi market and enable their possible collaboration with local counterparts.
The program provides foreign startup companies with administrative and logistical support, relevant contacts and an understanding of the business culture and applicable practices in the Kingdom.
Services include granting a license to the foreign investor by the Saudi General Investment Authority (SAGIA) and facilitating the formalities of incorporating the company by connecting it with the relevant governmental ministries. The program also includes providing a venue for startup companies across Saudi Arabia.
We aim to promote and support technology innovation and entrepreneurship across Saudi Arabia through comprehensive programs as well as strategic initiatives in cooperation with governmental entities, private sector, and universities that are in alignment with Saudi Vision 2030 and National Transformation Program 2020.
Read: Badir-incubated biotech startups raise $10 mln in 2018
Q: How is the current startup scenario in Saudi Arabia? What are the trends that you have noticed in the region?
A: There is little doubt that the ecosystem for entrepreneurship has never been popular in Saudi Arabia over the last decade. However, the last four or five years have witnessed significant positive development.
Several concerned governmental authorities have started implementing wide-scale public programs focusing on supporting startup technology companies.
The Saudi government attaches a special priority to the tech entrepreneurship sector, which is one of the key pillars of diversification of national income sources, sustainable domestic economic growth, job creation, as well as strengthening the Kingdom’s capabilities for moving towards a post-oil economy.
Another biggest boost to the sector has been the rise of accelerators and incubators across the country.
I think this gives a lot of hope about the future of Saudi Arabia because the youth we are seeing are very talented and driven. When properly empowered, they can deliver quite exceptional innovative solutions to local and regional challenges.
Q: What are the biggest challenges facing startups and entrepreneurs in Saudi Arabia?
A: Overall, the startup ecosystem in Saudi Arabia has become much more structured in recent years and is expected to grow with the support of government and private sector players.
But despite the aforementioned growth, Saudi entrepreneurs are still facing various challenges when starting up, including regulations and bureaucracy, and access to funding and talent.
However, Saudi Arabia can use its resources to develop the entrepreneurial ecosystem, thus facing these challenges one at a time.
Write to Paromita Dey at paromita.d@argaamplus.com
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