BIAC's soft-landing program to attract foreign startups to Saudi Arabia: CEO

Riyadh-based Business Incubators and Accelerators Company (BIAC) is collaborating with the Saudi Arabian General Investment Authority (SAGIA) to develop a soft-landing program aimed at enabling foreign startups gain access to the Arab region's largest economy, its CEO Nawaf Al Sahhaf told Argaam in an exclusive interview.

The program targets scalable startups from Arab countries, the US, UK, Eastern Europe and South-East Asia.

The soft-landing program will pave the way for foreign investors to get a license from SAGIA, as well as facilitate the formalities of incorporating their companies by connecting them with other government entities such as the Ministry of Commerce and Investment, Ministry of Labor and General Authority of Zakat and Tax (GAZT).

"The entry of these successful startups will have a positive impact on the economy and help in job creation,” Al Sahhaf said, adding it will propel Saudi Arabia to become a top entrepreneurial hub in the Middle East.

# Maturing ecosystem

While BAIC-managed Badir Program for Technology Incubators and Accelerators raised a record SAR 110 million across 63 funding deals in 2019, Al Sahhaf expected the number to increase in 2020 on the back of a positive and maturing entrepreneurship ecosystem in line with Saudi Vision 2030.

Another driver for the growth is the successful exits and success stories unfolding in the past few years, more recently with Dubai-based ridesharing app Careem’s acquisition by Uber Inc. for $3.1 billion.

In addition, other initiatives such as the Fund of Funds “Jada” and programs by the Saudi Venture Capital Company and Small and Medium Enterprises General Authority (Monshaat) support and empower small and medium enterprises.

“The crucial changes in the investment ecosystem, including the recent agreements signed between various foreign venture capitalists and SAGIA, have favorably supported startups," Al Sahhaf stressed.

# Regional expansion

Following its domestic success, BIAC, a subsidiary of state-owned Saudi Technology Development and Investment Company, will increase its geographical reach and fund non-incubated startups.

“We will enter Oman in 2020 and steadily cover the remaining GCC countries in the first phase, followed by entry into the Middle East and beyond," Al Sahhaf concluded.

Write to Parag Deulgaonkar at parag.d@argaam.com