Grace Ashiru
In Riyadh’s bustling districts, streams of traffic flow past gleaming office towers, where the quiet intensity of boardroom negotiations unfolds against a backdrop of a city racing to position itself as the Gulf’s technology capital. Saudi Arabia is now accelerating one of its most ambitious technology initiatives, a multi-billion-dollar effort to transform the Kingdom into a global tech hub. At the heart of this strategy is the National Technology Development Program (NTDP), launched in 2020 as part of the broader Vision 2030 blueprint, and it is steadily reshaping the landscape of deep-tech innovation across the Middle East. Its most recent and strategic targets: Egypt’s most advanced startups.
With a substantial $430 million in capital spread across six distinct initiatives, the NTDP is not only fostering local talent but also strategically attracting proven technological expertise. A key component of this drive is the “Relocate Initiative,” a state-backed program offering up to $1.4 million per company in non-dilutive grants, comprehensive relocation assistance, and generous employment subsidies. The program’s explicit aim is to establish the region’s most promising startups in Saudi Arabia, pulling them from established innovation hubs like Cairo and Alexandria.
Among the first to seize this opportunity is Si-Ware Systems, a Cairo-based leader in MEMS (Micro-Electro-Mechanical Systems) and spectral sensing. With over 15 years of experience, including collaborations with Saudi industrial giants to co-develop chip technologies, Si-Ware recently announced the opening of a dedicated office in the Kingdom, with expansion supported by a grant from the NTDP-affiliated Saudi National Semiconductor Hub.
“This expansion isn’t just about growing our presence,” said Dr. Hisham Haddara, Founder and CEO of Si-Ware. “It’s a testament to our belief in the region’s potential to lead in deep-tech innovation.”
The new office in Riyadh will serve as a product development hub focused on next-generation MEMS and inertial sensing devices. These technologies, essential for industries like automotive and energy, can analyze the chemical composition of oil or measure protein content in food. Saudi Arabia is actively seeking leadership in these sectors, where Si-Ware’s expertise is crucial. The expansion follows the company’s recent successful sale of its handheld near-infrared (NIR) platform, NeoSpectra, to Swiss lab tech firm BÜCHI Labortechnik AG, marking a significant exit for an Egyptian deep-tech company founded on homegrown intellectual property.
Si-Ware’s story highlights both the promise and challenges faced by deep-tech ventures in the Middle East and North Africa (MENA). While the region’s venture capital ecosystem has traditionally focused on software and fintech, hardware innovators have faced a more challenging path. “In Egypt, we don’t have the luxury of relying solely on VC funding,” explained Haddara, noting the company’s bootstrapped origins. Si-Ware has raised just $19 million in equity funding since its founding, supplemented by $20 million in contract revenue—an innovative approach born out of necessity in a cautious investment environment.
Another Egyptian startup finding fertile ground in the Kingdom is Qara, a supply chain technology firm that recently secured $2.6 million to fuel its Saudi expansion, also supported by the NTDP’s Relocate Initiative. Qara’s AI-powered platform offers real-time product authentication and traceability, tools that are crucial in a region battling counterfeit goods and logistical inefficiencies. To date, the company has authenticated over 28 million products and built a network of more than 50,000 users across Egypt, Saudi Arabia, and Kenya. Its flagship app, “Asly” (Original), allows consumers to verify product authenticity using QR codes, promoting transparency in everything from electronics to pharmaceuticals.
The alignment of Qara’s offerings with Vision 2030’s objectives of digitalizing and securing supply chains makes it a natural fit for the Saudi market. “After three years of successful product-market fit in Egypt, Qara is now ready for international expansion,” said Hassan Abouzeed, Co-founder and CEO of Qara. “We are thrilled that our first step is into the Kingdom of Saudi Arabia, where our solutions align perfectly with the country’s Vision 2030 goals.”
The influx of Egyptian startups extends beyond software and sensing technology. In January, Simplex CNC, a Cairo-based manufacturer of Computer Numerical Control (CNC) machines for industrial automation, announced a major step forward with a memorandum of understanding (MoU) signed with the Saudi National Center for Industrial Development (NCID) to build a $13 million, 20,000-square-meter factory in Riyadh. This facility, Simplex’s first outside of Egypt, is scheduled to begin operations in 2026 and will produce CNC machines for the broader region.
“We see Saudi Arabia not just as a market, but as a regional hub for expansion,” said co-founder Mohammed Mansour. “The Kingdom’s industrial transformation provides significant opportunities for deep-tech manufacturers like us.” This move signals a broader policy shift in Saudi Arabia, which aims to reduce reliance on imports and enhance global competitiveness through advanced, localized manufacturing.
The NTDP’s ambitious courtship of foreign startups is backed by a robust set of financial programs designed to de-risk and accelerate growth. In addition to the Relocate Initiative, five other core programs support the strategy:
- Venture Debt Initiative: Over $150 million for non-dilutive capital to Series A startups.
- TechCrew: A $78 million fund to subsidize the salaries of local tech talent.
- Boost: $46 million to provide monthly stipends to founders for up to 12 months.
- Connect: A $42 million initiative to help SMEs qualify for national tech projects.
- Bridge: A program offering up to $1.3 million for mature tech companies aiming for global expansion.
As Egyptian deep-tech firms increasingly set their sights on Saudi Arabia for growth, a critical question is emerging: Is this a brain drain, or a strategic realignment for the region?
For founders like Haddara, the move represents expansion, not abandonment. Many of these companies retain their core research and development efforts in Egypt, which has recently been recognized as a growing science and technology ecosystem, ranking in the top 100 global innovation clusters in the 2024 Global Innovation Index.
However, the vast financial support and market access provided by Saudi Arabia offer an unparalleled runway for growth that is difficult to match elsewhere in the region. In a market that has long depended on technology importation, the NTDP’s strategy marks a transformative shift. By empowering Egypt’s most capable innovators with the resources to scale, Saudi Arabia is not just building a tech hub—it is shaping the future of the entire region’s technological landscape.
