Infrastructure Startups invited to solve Medina’s challenges By Megha Merani June 5, 2025, 2:59 PM Alamy via Reuters Medina is opening its doors to tech startups, aiming to blend tradition with innovation to enhance urban life and accommodate growing religious tourism Infrastructure solutions needed Expansion of religious tourism Medina economic growth targeted Saudi Arabia is inviting startups to tackle infrastructure challenges in Medina, one of Islam’s holiest cities, as it ramps up efforts to expand religious tourism. Madinah-Tech, an accelerator backed by the regional municipality and private investors, has opened applications for its first cohort as the city struggles to keep pace with growing visitor numbers. The programme offers funding, mentorship and office space target solutions in smart city tech, mobility, sustainability and infrastructure. Academic partners include Stanford StartX, Cambridge University and NYU Tandon. While not a formal part of the pilgrimage, visiting Medina, home to the Prophet Mohammed’s burial site, is a longstanding tradition and is typically included in Hajj and Umrah travel packages. Mecca and Medina are central to Crown Prince Mohammed bin Salman’s Vision 2030 strategy, which aims to diversify the economy and host up to 30 million pilgrims annually by the end of the decade. Medina, with a population of 1.6 million, faces rising temperatures and limited green space, according to the accelerator’s website, which calls the city a “living lab for urban solutions.” Medina plays catch-up to Mecca’s expansion Saudi Arabia sets foreign tourism income record in 2024 Pilgrims remain bedrock of Saudi tourism plans Like Mecca, where the Grand Mosque expansion was recently completed, Medina is undergoing a wave of development to accommodate the millions of religious visitors it receives each year. During Ramadan, spending in both cities surged past Riyadh and Jeddah, Visa’s Q1 2025 Travel Pulse report shows. In Mecca, average spend per visitor jumped to $449 from $356. Medina saw a 64 percent increase in visitor spending. “Beyond their religious significance, Mecca and Medina are also engines of economic growth,” said Ali Bailoun, Visa’s regional general manager for Saudi Arabia, Bahrain and Oman. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
