Commissioned by Google, a new report titled "Tech Entrepreneurship Ecosystem in the Kingdom of Saudi Arabia" by Wamda in collaboration with OC&C Strategy Consultants highlights the state of the entrepreneurial ecosystem and the challenges and opportunities facing startups in the Kingdom of Saudi Arabia. The releasing ceremony brought together entrepreneurs, industry experts, investors, among others to focus on issues relevant to the Saudi startup ecosystem.

As a $1bn "fund of funds" alongside other financing programs have been available, and in the past three years, the Kingdom has seen a surge in start-up accelerators and incubators for technology companies, as many government and non-profit organizations are directly or indirectly supporting Saudi entrepreneurs. Saudi Arabia has more than 40 business incubators and several accelerator programs, half of which have some form of government affiliation. But according to the report, they are not enough as the number of startups in Saudi Arabia is rising. The kingdom's startups need more accelerators, mentorship programs and co-working spaces.

According to the report, a healthy tech ecosystem depends on a large pool of qualified potential founders and employees with superior skills in technology development and entrepreneurial drive. Saudi Arabia's fundamental challenge is to transfer talent to private-sector employment and to tech entrepreneurship. The drive to promote private-sector employment, especially entrepreneurship, demands a radical shift in the mindset of the young as well as that of their communities. Saudi Arabia's tech startup ecosystem is small and nascent compared to its vast oil sector. As the ecosystem matures, tech entrepreneurship can be a remedy for the country's oil sector dependency.

Other common issues in the kingdom's start up sector include raising angel investment, acquiring talent, as well as a lack of connection between government and licensing bodies, the report said.