Government Funding for Deep Tech Startups in Saudi Arabia

Deep tech – covering AI, robotics, quantum computing, biotech, advanced materials, and clean energy—is the frontier of global innovation. For founders in London, Riyadh, and beyond, Saudi Arabia represents one of the most compelling ecosystems for scaling deep tech ventures, powered by unprecedented government funding.

Under Vision 2030, the Kingdom is deploying sovereign funds, R&D grants, and public-private partnerships to catalyse its transformation from an oil-based economy to a knowledge-driven innovation hub. Key initiatives include KAUST’s $10bn endowment for R&D, the Public Investment Fund’s (PIF) $100bn innovation portfolio, and targeted SDAIA and Monsha’at programs for AI and robotics startups.

This blog explores how Saudi Arabia is funding deep tech startups, how it compares with UK/EU/US ecosystems, and what pathways Western founders can take to access government-backed capital and research infrastructure.

What Is Deep Tech and Why Saudi Arabia Is Betting Big

• Deep tech definition: High-barrier, IP-heavy innovations requiring significant R&D before commercialisation.

• Saudi relevance: Vision 2030 recognises deep tech as essential to diversifying GDP, building sovereign capabilities, and positioning the Kingdom as a global innovation leader.

• Target sectors: AI, robotics, biotech, hydrogen, advanced materials, and semiconductors.

Key Government Funding Sources for Deep Tech in Saudi Arabia

KAUST (King Abdullah University of Science and Technology)

• $10bn endowment dedicated to R&D and technology transfer.

• Runs innovation centres in AI, robotics, water desalination, and bioengineering.

• Operates KAUST Innovation Fund, targeting Series A/B startups in deep tech.

Public Investment Fund (PIF)

• Allocates $100bn+ to tech and innovation investments, including partnerships with SoftBank Vision Fund, Lucid Motors, and local VC funds.

• Backed SDAIA and NEOM’s technology arms, investing in AI data centres, biotech, and clean energy.

SDAIA (Saudi Data and AI Authority)

• Government body funding AI research, data labs, and applied AI pilots.

• Provides grants and infrastructure for foreign startups partnering with ministries.

Monsha’at SME Authority

• Offers non-dilutive grants and accelerator programs, now extended to high-tech SMEs including robotics and industrial automation.

NIDLP (National Industrial Development and Logistics Program)

• Funds technology pilots in mining, advanced manufacturing, and logistics automation, often with foreign startup partners.

Saudi vs. Global Deep Tech Funding – Comparative Analysis

Insight: While Saudi’s current R&D spend is lower than UK/EU/US, the pace of funding growth is unmatched, driven by Vision 2030 capital and giga-project demand. Unlike Western models, Saudi provides non-dilutive government grants + sovereign wealth VC capital side by side, making it unique for startups.

Founder Pain Points and Solutions

Accessing Saudi R&D Funds

Solution: Partner with KAUST or SDAIA via research collaboration; localisation and joint IP frameworks are essential.

Navigating Government Procurement

Solution: Structure pilots as Proof of Concept (PoCs) with ministries or giga-projects, then scale.

High R&D Costs Pre-Revenue

Solution: Tap Monsha’at non-dilutive grants and PIF-linked VC funds to extend runway before equity dilution.

Step-by-Step Framework for Accessing Deep Tech Funding

1. Align with Vision 2030 priority sectors (AI, biotech, clean energy).

2. Incorporate or JV in Saudi Arabia (MISA license required).

3. Engage research partners (KAUST, SDAIA, or industrial R&D labs).

4. Apply for government grants (Monsha’at, SDAIA programs).

5. Leverage PoCs to validate tech with giga-project operators.

6. Tap PIF and VC funds for Series A/B scaling.

7. Protect IP via local registration (Saudi IP Office, KAUST IP unit).

❓ Frequently Asked Questions (FAQ)

Q1: Does Saudi Arabia fund deep tech startups directly?

Yes. Government bodies like KAUST, SDAIA, and Monsha’at provide grants, while PIF and its venture arms co-invest in scaling startups.

Q2: How much R&D spending is Saudi targeting?

Saudi aims to raise R&D spending from ~0.9% of GDP today to 2.5% by 2040, in line with global leaders.

Q3: Do foreign startups qualify for Saudi deep tech grants?

Yes, but they must incorporate locally or partner with Saudi institutions to access funds.

Q4: Which sectors get priority funding?

AI, robotics, biotech, hydrogen, and advanced materials—aligned with Vision 2030 giga-projects.

Q5: How is Saudi different from UK/US models?

Unlike Western ecosystems, Saudi blends non-dilutive government grants with sovereign VC capital, offering a hybrid funding pathway.

Conclusion

Saudi Arabia is rapidly positioning itself as a deep tech powerhouse by combining world-class R&D infrastructure (KAUST, SDAIA) with sovereign-backed venture capital (PIF) and non-dilutive grants (Monsha’at, SIDF). For founders in London and Riyadh, this creates an unprecedented opportunity to fund research-intensive startups, validate technology through PoCs, and scale commercially within giga-projects.

Compared to Western ecosystems, Saudi’s model is unique – founders benefit from both grant-driven runway extension and equity investment once PoCs succeed. With R&D spending set to triple, giga-projects like NEOM demanding frontier tech, and Saudi family offices backing localised startups, the ecosystem is primed for deep tech.

At 7startup, we help founders navigate Saudi’s grant systems, structure PoCs, and connect with sovereign-backed funds. If your startup is developing AI, robotics, or clean tech, now is the time to align with Vision 2030’s deep tech transformation.