Saudi Riches Don’t Reach Entrepreneurs as Bankers Shun Startups
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When Saleh Al-Zaid decided it was time to expand Twitmail.com, the Saudi Arabian entrepreneur figured it wasn’t even worth trying to get a bank loan.
“Saudi banks don’t want to take the risk with early stage startups,” Al-Zaid said over coffee and donuts in Riyadh. Instead, the 28-year-old obtained 1 million riyals ($267,000) from an investor in local venture-capital group Oqal, financing a trip to Silicon Valley for training. He left his part-time job, and now his website, which helps Twitter users share e-mails, has 400,000 visitors on a busy day.