National Technology Development Program (NTDP)

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A comprehensive government technology ecosystem development program providing financial and non-financial support to local and international tech companies across all growth stages.
What are the main aims and objectives?

The National Technology Development Program (NTDP) aims to drive sustainable growth and position Saudi Arabia as a leading regional hub for innovation and investment in the technology sector. The program seeks to encourage and support national companies in information technology and emerging technologies to expand their presence locally and globally, thereby increasing market share and exports. NTDP promotes the adoption of information technology solutions and services among the local private sector, with specific focus on emerging technologies. The program attracts global and local companies specializing in innovation and research relevant to the information technology sector, fostering collaboration and knowledge exchange. NTDP facilitates the localization of the information technology sector and increases the incorporation of local content within the sector. The program targets achieving returns of SAR 10 billion ($2.67 billion) and creating 10,000 jobs by 2026. Through these objectives, NTDP addresses Saudi Arabia's economic diversification goals under Vision 2030 by reducing dependence on oil revenues and building a knowledge-based economy.

How does the program work?

NTDP operates through a comprehensive portfolio of 18-19 financial and non-financial initiatives designed to support technology companies at every stage of development. The program works through strategic partnerships with over 45 entities from public and private sectors, including government agencies, financial institutions, and international accelerators.​

The Venture Debt Initiative allocates over $150 million to support the expansion of high-growth startups, particularly those in Series A funding rounds, providing 15% of the equity round size through flexible debt structures. The TechCrew Initiative provides $78 million to support tech small and medium enterprises by helping them attract talent through either 50% salary subsidies or prolonged financial support for up to 18 months. The Boost Initiative allocates more than $46 million to build entrepreneurial experience by providing incubation services and monthly stipends ranging from $1,900 to $3,600 over 12 months to individuals pursuing entrepreneurial activities.​

The Connect Initiative invests more than $42 million to help local tech small and medium enterprises qualify for large tech projects, covering 50% of costs (capped at $200,000) to reach proof of concept. The Bridge Initiative supports high-growth tech ventures with more than $100 million in revenue to expand globally, providing up to $1.3 million or 70% of costs per venture, with support duration capped at 24 months. The Relocate Initiative incentivizes global tech startups and multinational companies to relocate to Saudi Arabia, offering up to $1.4 million per company in non-dilutive grants, relocation assistance, and employment subsidies.​

Additional programs include NEXT ERA, which offers financial incentives to individuals and tech companies to boost innovation in emerging and deep technologies, and MVPLAB, which supports creators of innovative technology projects with a goal of establishing 1,000 tech startups. The LendTech program provides financing access under flexible terms tailored to tech company needs, with total capital of SAR 360 million ($96 million). The Technology Development Financing initiative works with the Kafalah Program to provide guarantees for small and medium companies, offering up to 90% of financing value with loans ranging from SAR 100,000 ($26,700) to SAR 15 million ($4 million).​

The Saudi Unicorns program, a partnership between the Ministry of Communications and Information Technology, Misk Foundation, and NTDP, supports rapidly growing tech companies with comprehensive services including skill-building, investor connections, market expansion support, and access to global expert networks. Companies typically apply directly through NTDP's initiatives or through participating banks and financing agencies, with the program providing coordination across government agencies to ensure alignment.

What is the overall cost?

NTDP was launched in 2020 with an initial budget allocation of SAR 2.5 billion (approximately $667 million). Beyond its core budget, the program mobilized substantial additional capital through its various initiatives. In 2024, NTDP committed more than $430 million across six new initiatives, including the Venture Debt ($150 million), TechCrew ($78 million), Boost ($46 million), Connect ($42 million), and other programs. The Technology Development Financing initiative provides SAR 700 million ($187 million) in guarantees for micro, small, and medium businesses. NTDP contributed to establishing seven funds worth $838 million to support startups across various development stages.

How was it implemented?

NTDP was established by the Saudi Ministry of Communications and Information Technology as part of the Kingdom's Vision 2030 strategic framework. The program was officially launched in 2020 as a dedicated initiative to enhance the effectiveness of the Kingdom's technology ecosystem. The program's creation was driven by Saudi Arabia's broader economic diversification goals under Vision 2030 and the National Transformation Program, which was first launched in 2016.​

NTDP operates under the governance of the Ministry of Communications and Information Technology and works collaboratively with multiple government entities, including the Saudi Data and Artificial Intelligence Authority, King Abdulaziz City for Science and Technology, Mohammed bin Salman Foundation, Public Investment Fund, Social Development Bank, and the Kafalah Program for small and medium enterprise financing guarantees.​

The program evolved through several phases. During the initial phase from 2020 to 2021, NTDP launched core financing initiatives including Technology Development Financing and early accelerator programs. From 2022 to 2023, the program expanded its initiative portfolio with the launch of programs like Saudi Unicorns in 2022, the Venture Debt Initiative in February 2023, and established partnerships with international accelerators. From 2024 to 2025, NTDP significantly scaled operations with the announcement of $430 million across six major initiatives, launched artificial intelligence-focused programs, and expanded the Relocate Initiative to attract international companies.​

NTDP operates through strategic partnerships with over 45 entities from public and private sectors and delivers support through 18-19 distinct initiatives, each targeting specific needs within the technology ecosystem. Companies apply directly to NTDP or through participating financial institutions and accelerators, with the program coordinating across government agencies to ensure alignment and integration of support mechanisms.​

What impact has been measured?

NTDP facilitated the creation of 568+ startups with robust support structures. The program attracted 100+ international companies that relocated to Saudi Arabia. Seven international business accelerators were attracted to Saudi Arabia, supported by venture capital funds with more than SAR 2 billion to invest in tech startups.​

In 2023 alone, NTDP-backed startups closed more than 49 investments totaling $750 million, representing over 50% of total investment in Saudi Arabia that year. NTDP-supported startups raised SAR 3.8 billion ($1 billion) in venture capital investments overall. The program supported startups in securing an additional $700 million in debt financing from commercial banks and financial institutions. Local content in the communications and information technology sector reached 28.8%.​

Startups supported by NTDP generated SAR 7.9 billion ($2.1 billion) in gross domestic product impact. The program created an economic impact of $1.45 billion as of 2024. NTDP facilitated the creation of 12,950 new jobs in the technology sector. More than 11,000 jobs have been created through companies supported by the program since its launch. NTDP contributed to Saudi Arabia becoming the most funded country in the Middle East and North Africa region for venture capital in 2023 and 2024. The Kingdom attracted SAR 3.2 billion ($860 million) in venture capital during the first half of 2025, a 116% year-on-year increase. Saudi Arabia produced multiple unicorn companies including Tamara and Tabby, both achieving billion-dollar valuations with NTDP ecosystem support.

What lessons can be learned?
  • Sustainability concerns: The heavy reliance on government subsidies and financial incentives raises questions about long-term sustainability. Companies receiving 50% salary subsidies for 18 months or significant relocation grants may face challenges when support ends, potentially creating artificial ecosystem dynamics that don't reflect true market competitiveness.​
  • Evaluation gaps: There is a notable absence of comprehensive independent evaluations, peer-reviewed academic studies, or publicly available impact assessments that would enable evidence-based program improvement. Without rigorous evaluation frameworks, it remains difficult to determine which initiatives deliver the highest return on investment.​
  • Talent shortage persists: Despite significant investments, challenges remain in workforce development and digital literacy. Research identifies persistent gaps in technical skills, qualified personnel, and comprehensive training programs needed to support the technology sector's growth, particularly in fields like quantum computing, advanced materials, and sophisticated semiconductor industries. NTDP's target of creating only 10,000 jobs by 2026 may be modest relative to the Kingdom's broader employment needs.​
  • Infrastructure and implementation barriers: Studies of technology adoption in Saudi Arabia highlight ongoing challenges including infrastructural gaps in remote regions, inadequate digital infrastructure in some areas, unequal access to technology, limited technical capacity in certain institutions, and bureaucratic obstacles that can slow program implementation.​
  • Private sector participation needed: Analysis suggests that while government investments have been substantial, local venture capital remains quite small when compared to well-established ecosystems like Silicon Valley or Shenzhen. The size of government investments has not yet been equaled by the level of private sector involvement, which is essential for developed innovation ecosystems. Encouraging significant private venture capital participation remains crucial to reduce dependency on state funding alone.​
  • Concentration risks: Much of Saudi Arabia's venture funding comes from a handful of large deals, while seed and early-stage funding represents a smaller proportion. This concentration may indicate limited broad-based entrepreneurship beyond a few high-profile companies.​
  • Integration depth unclear: While the Relocate Initiative successfully attracts international companies, the extent to which these companies genuinely integrate into the local ecosystem versus simply establishing nominal headquarters for contract access requires further assessment. Some companies may establish minimal presence primarily to qualify for government contracts rather than contributing substantively to ecosystem development.​
  • Regulatory complexity: While the regulatory framework is evolving, there are still challenges related to compliance and regulatory alignment with international standards. Navigating the regulatory landscape can be complex for both local and foreign tech companies.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom