Saudi Arabia’s holy city of Madinah just launched two ambitious programs that will pump millions of dollars into startups and deep tech companies, sending a clear message that it wants to join the global tech elite.
Al Madinah Ventures Commits $10 Million to Startup Growth
The Al Madinah Ventures program launched in December 2024 with backing from Prince Salman bin Sultan bin Abdulaziz, Governor of Al Madinah Region. The initiative plans to create a $10 million investment fund by 2025 that will support local startups and attract over 30 investors each year.
Value Makers Studio leads this program alongside the Economic Development Centre and Madinah Chamber of Commerce. The studio has already invested in 10 startups worth over $180 million and helped create more than 800 jobs across the region.
“This programme is built on a clear vision to establish a comprehensive platform where ideas are transformed into reality,” said Motaz Abuonq, Founder and CEO of Value Makers Studio.
The city hosts over 60,000 small and medium enterprises and contributes 7% of Saudi Arabia’s GDP, making it a natural choice for expanded tech investment.
DeepMinds Partnership Creates Global Deep Tech Studio
Madinah Regional Municipality partnered with DeepMinds to launch the Madinah Venture Studio. This collaboration targets deep tech sectors including artificial intelligence, healthcare technology, sustainability, and environmental solutions.
DeepMinds brings a team of deep tech scientists, AI engineers, and serial entrepreneurs to help build economically viable companies. The venture studio operates on what they call a “circular innovation cycle”, from discovery and concept generation through to scaling and reinvestment.
Prince Abdulaziz bin Faisal bin Abdulmajid bin Abdulaziz Al Saud attended the signing ceremony, providing formal government backing for the initiative.
Strategic Location Offers Unique Advantages
Madinah attracts millions of visitors annually as Islam’s second holiest city. This constant flow of international visitors creates an unusual opportunity for tech companies to test products and services with a diverse global audience.
The city’s development aligns perfectly with Saudi Arabia’s Vision 2030 economic diversification plan. The Kingdom wants to reduce oil dependence while creating a knowledge-based economy that attracts foreign investment and develops local talent.
Deep Tech Focus Sets Madinah Apart
Unlike many startup hubs that focus on consumer apps and basic software, Madinah is betting on deep tech. This includes quantum computing, advanced robotics, biotechnology, and next-generation materials.
DeepMinds specializes in creating deep tech clusters across the Middle East and North Africa region. The company launched in 2023 to address gaps in knowledge, investment, and ecosystem support for regional deep tech ventures.
The partnership with DeepMinds also includes technology transfer programs that will help move research from labs into market-ready companies.
Competition Heats Up Across Saudi Tech Cities
Madinah joins other Saudi cities in building tech ecosystems. Riyadh hosts the annual LEAP conference and numerous AI initiatives, while Jeddah develops its own startup programs. The competition between cities could accelerate innovation across the Kingdom.
Saudi Arabia secured $1.79 billion in AI-focused funding at the 2025 LEAP conference, showing strong investor interest in the Kingdom’s tech sector.
Building Local Talent Pipeline
Both programs emphasize developing Saudi talent alongside attracting international expertise. The SaudiPreneur initiative will equip young Saudis with startup skills, while The Bridge program helps international startups enter the Saudi market.
This dual approach addresses a common challenge in emerging tech hubs, having either local talent without global connections or international expertise without local market knowledge.
Economic Impact Could Extend Beyond Tech
The initiatives aim to transform Madinah from a primarily religious tourism destination into a diversified economic center. Success could create thousands of high-paying jobs and establish new industries in the region.
The programs also support Saudi Arabia’s broader goal of becoming a global AI hub. Crown Prince Mohammed bin Salman recently launched HUMAIN, a multi-billion dollar AI company, as part of this strategy.
To Wrap Up
Madinah’s entry into the tech space adds another major player to the Middle East’s growing startup ecosystem. The region has seen increasing venture capital activity and government support for innovation in recent years.
The focus on deep tech could help differentiate the Middle East from other global tech hubs that often concentrate on consumer applications. Success in areas like quantum computing and biotechnology could establish the region as a leader in next-generation technologies.
The combination of government backing, private investment, and international partnerships gives Madinah’s tech initiatives strong foundations for growth. Whether the city can execute on its ambitious plans will determine if it becomes Saudi Arabia’s next major tech destination.
