Houssem Jemili, Partner and member of the Vector℠ and Advanced Manufacturing & Services practices at Bain & Company, recently shared valuable insights into the burgeoning startup ecosystems and innovation landscape in Saudi Arabia. He emphasized the critical roles of livability, funding, business environment, and infrastructure in transforming Saudi cities into global hubs for innovators and creators. Saudi Arabia"s livability is crucial for attracting and retaining top-tier global talent and beyond the basic livable standards such as health, connectivity, and safety. It is important to create a sense of belongingness in the community, which can be spurred through social events, and creative conferences. “Events like LEAP have already started creating a positive flywheel effect in the technology and innovation ecosystem,” said Jemili. He also highlighted the importance of Saudi Arabia"s natural and cultural offerings, such as the Asir Mountains, the Al Wahbah Crater, Al Ula and international sporting events like Formula One, which contribute significantly to the country"s livability. Furthermore, Jemili stressed the importance of other key elements of the value proposition needed for Saudi Arabia to become a leading innovation ecosystem globally, including a supportive business environment and accessible funding for startups. "Funding is a critical element for the technology and creative ecosystem. Saudi Arabia has a mature and diverse set of funding partners – government entities and programs (e.g., Moonshot), large investment funds, and venture capitalists that provide access to both direct and indirect funding to start-ups and entrepreneurs. Growth in such financial solutions is needed to service a large domestic captive audience (largest in GCC) that demands the technology products & services," he explained. As such, Saudi Arabia"s success in climbing the Global Innovation Index is attributed significantly to its dedicated innovation hubs and programs. "Saudi Arabia has several best-in-class innovation led programs such as Riyadh Techstar accelerator program for early-stage startups, as well as Plug and Play that partners with Saudi-based entities and manages accelerator programs like MISK accelerator, iHub accelerator, NCA program, Taqadam accelerator program and many more," added Jemili. These hubs are crucial for connecting different ecosystem players, including startups, investors, and academia, thereby facilitating collaborative growth and innovation. In line with these developments, Jemili recommended a structured regulatory approach and continuous development of the funding landscape to sustain and nurture innovation ecosystems, "KSA requires a regulatory system that brings transparency in the business ecosystem, enacts clear and predictable regulation to foster innovation, brings ease of doing business, and continues to build the trust of both the business community and investors. Adoption of regulatory sandboxes as a tool to enhance innovation and enable testing, and commercialization of use cases is critical to promote the vision of innovation and entrepreneurship." These insights underline the significant strides the Kingdom is making towards becoming a leading hub for technology and innovation. With its strategic initiatives and ongoing improvements in ecosystem connectivity, KSA is well-positioned to achieve remarkable growth in the technology and creative sectors in the coming years.