Business Incubator Services
The business incubator service is designed for entrepreneurs who wish to establish innovative, distinctive, or scalable technology-based companies that offer products or services in a better and different way in the Saudi market. These businesses are supported by accredited entities, typically one of the following:
- Government ministries
- Government universities
- Accredited business incubators by Monsha'at (Saudi Small and Medium Enterprises Authority)
For a company wishing to establish a business in Saudi Arabia, it is necessary to obtain a support letter or proof from an accredited entity such as a government ministry, a Saudi university, or a business incubator in the country. Additionally, the company must submit a Board of Directors’ resolution stating their intention to apply for a license, clarifying the type of innovation and the sponsoring entity along with defining its powers. A copy of the national ID is required if one of the partners is a natural person (individual) holding the nationality of a GCC country (if their data is not registered in the Absher system), or a passport for the license applicant.
The business incubator service in Saudi Arabia is supported by the Monsha'at Authority and aims to foster entrepreneurship in the country. It supports startups, stimulates innovation, and develops the capabilities of entrepreneurial idea owners by issuing a license for entrepreneurs, backed by an accredited business incubator. This service provides co-working spaces and creates an attractive environment for startups, after meeting the required conditions. This support helps businesses obtain necessary facilities and defines the requirements for supporting and growing the entrepreneurship sector in Saudi Arabia.
What is a business incubator service in Saudi Arabia?
A business incubator service in Saudi Arabia is a government-supported initiative designed to help entrepreneurs launch innovative or technology-based startups. It offers resources such as co-working spaces, mentorship, and access to funding networks. Accredited by entities like Monsha'at, government ministries, or universities, these incubators aim to foster entrepreneurship, support scalable business models, and boost innovation in the Saudi market.
Who can apply for business incubator support in Saudi Arabia?
Entrepreneurs who want to establish a unique, innovative, or tech-driven company in Saudi Arabia can apply for business incubator support. The startup must introduce a new or improved product or service tailored to the local market. Additionally, foreign companies seeking to enter the Saudi market must obtain a support letter from an accredited incubator, a Saudi university, or a government ministry.
What are the requirements to get a business incubator license in Saudi Arabia?
To obtain a business incubator license in Saudi Arabia, the applicant must:
Submit a support letter from an accredited incubator, ministry, or university.
Provide a Board of Directors’ resolution detailing the type of innovation and naming the sponsoring entity.
Submit a valid ID or passport (for GCC nationals not registered in Absher).
Demonstrate that the startup is innovative and scalable, meeting the criteria set by Monsha'at or other accrediting bodies.
How does Monsha'at support startups through business incubators?
Monsha'at (the Small and Medium Enterprises Authority in Saudi Arabia) accredits business incubators and provides support by facilitating the issuance of entrepreneur licenses, offering co-working spaces, and enhancing startup development. Their incubator program connects startups with funding sources, mentorship, and regulatory guidance to help scale innovative businesses and stimulate the Saudi entrepreneurial ecosystem.
Why is a support letter from an accredited incubator or ministry required for foreign companies in Saudi Arabia?
A support letter from an accredited incubator, Saudi university, or government ministry is mandatory for foreign companies to ensure that the proposed business aligns with national innovation goals. It validates the company’s intent to contribute to the Saudi economy through innovation or technology, and is a key requirement when applying for a business license or investor visa in Saudi Arabia.