Ghada Ismail

Saudi Arabia, a country historically famous for its oil reserves, is in the process of undergoing a revolutionary transition towards a knowledge economy. One of the most promising areas of this transformation is health technology or HealthTech. The Kingdom's Vision 2030 program has also placed a great emphasis on economic diversification and quality of life for its citizens, and healthcare forms the core of this vision. For this reason, the HealthTech sector of Saudi Arabia is transforming at a very rapid pace with government and private sector players alike at the helm, leveraging technology to seek solutions to the health challenges of the country.

The Healthcare Landscape in Saudi Arabia

The Saudi healthcare sector has long relied heavily on government spending, and the Ministry of Health (MOH) has been the controlling force for delivering healthcare. However, the Kingdom is being challenged by a high population growth rate, an increase in the occurrence of chronic conditions, and the pressing need to more efficiently deliver healthcare. All of these issues have created fertile ground for HealthTech innovation as the nation continues to modernize its healthcare facilities and improve patient outcomes.

The Saudi government has, nonetheless, recognized the potential of HealthTech in addressing these challenges and has been proactively promoting the use of digital health solutions. This has led to a growth in HealthTech startups and investment in HealthTech by both public and private sector entities.

Public Sector Initiatives and Key Players

The Saudi government has been the key driver of HealthTech innovation in the Kingdom, with several significant initiatives aimed at transforming the healthcare industry. All of these are linked to the overall goals of Vision 2030, which is geared towards making the economy more diversified and sustainable.

1. Ministry of Health (MOH): The MOH has been at the forefront of the adoption of HealthTech in Saudi Arabia. The Ministry has taken several digital health initiatives, including the formation of a national electronic health record (EHR) system, aimed at establishing a single platform for patient data across the country. The system will most probably increase the efficiency of healthcare delivery and reduce the burden on healthcare workers.

2. Saudi Health Council (SHC): The SHC is tasked with designing the healthcare policy of the Kingdom. It has been in the lead in promoting the adoption of HealthTech solutions, particularly telemedicine and remote patient monitoring. The SHC has also been involved in the creation of a national health information exchange (HIE) platform, which will facilitate the sharing of health information between different healthcare providers.

3. National Transformation Program (NTP): As part of Vision 2030, the NTP has lofty objectives for the health sector, including increasing the private sector's role in healthcare provision and improving the quality of health services. The NTP also identified HealthTech as a core enabler of these goals and has been busy promoting the adoption of digital health solutions.

4. Saudi Food and Drug Authority (SFDA): The SFDA has been working actively to create a regulatory environment for HealthTech products, including medical devices and digital health apps. This is expected to provide clarity to HealthTech firms already operating in the Kingdom and encourage further innovation in the sector.

Seha Virtual Hospital: A Pioneering Initiative

The largest milestone in Saudi Arabia's HealthTech history is the establishment of the Seha Virtual Hospital, which is recognized by the Guinness World Records as the world's largest online medical initiative. The Saudi Ministry of Health launched Seha Virtual Hospital in 2022 and it is a giant leap in the Kingdom's healthcare delivery system. It employs cutting-edge technologies such as telemedicine, artificial intelligence (AI), and big data analytics to provide high-quality healthcare services to patients across the nation, particularly in rural and underdeveloped areas.

Seha Virtual Hospital Key Achievements

1. Scale and Reach: Seha Virtual Hospital covers over 130 hospitals across Saudi Arabia and offers more than 30 specialized services, where the number of beneficiaries so far has reached 58550, and its capacity during the year reaches 400+ thousand beneficiaries. This has actually eradicated the need for patients to travel long distances for consultations, diagnostics, and treatment.

2. Telemedicine Services: The hospital has conducted over 2 million virtual consultations since its inception, and it is one of the busiest telemedicine platforms in the world. This has been especially useful for rural patients as they have limited access to specialist healthcare services.

3. AI-Assisted Diagnostics: Seha Virtual Hospital has integrated AI into its diagnostics, enabling faster and more accurate disease identification. For example, the hospital's AI-assisted radiology system has analyzed over 500,000 medical images, reducing diagnostic times by up to 30%. Artificial intelligence also contributes to giving priority to examinations that require urgent medical intervention through the use of medical imaging algorithms that are conducted on cases such as strokes in CT scans and chest x-rays; Which raises the quality of the doctor’s work for the case and makes the accuracy of diagnosing the target diseases up to 95%.

4. Chronic Disease Management: The hospital has set up special programs for chronic disease management such as diabetes and hypertension. They have touched 200,000 patients, with improved health outcomes and reduced hospital admissions.

5. Training and Capacity Building: Seha Virtual Hospital has so far trained over 10,000 healthcare professionals on the utilization of digital health technology in order to ensure that the Kingdom's healthcare workforce is capable of dealing with the challenges of a contemporary, technology-based healthcare system.

6. COVID-19 Response: Seha Virtual Hospital played a crucial role in addressing the COVID-19 pandemic. It provided virtual consultations to over 300,000 COVID-19 patients and helped the Ministry of Health monitor and track the virus spread.

7. Cost Efficiency: By reducing the need for physical infrastructure and optimizing resource allocation, Seha Virtual Hospital has saved the Saudi healthcare system approximately $200 million in operational costs.

Sehhaty Platform by the Sudi Ministry of Health

The Sehhaty platform, operated by Saudi Arabia's Ministry of Health, is a key digital healthcare solution that offers a wide range of services to citizens and residents. It is the unified platform of the Ministry of Health, which allows users to access health information and obtain several health services provided by various entities in the health sector in Saudi Arabia. 

The platform enables users to book appointments at MOH-affiliated facilities, access medical records, request prescription refills, and track fitness metrics. During the COVID-19 pandemic, Sehhaty played a crucial role in managing vaccination appointments, PCR test bookings, and displaying immunization status. The platform also supports telemedicine services, allowing virtual consultations with healthcare providers, while offering dedicated tools for children's healthcare management and mental well-being support. As part of Saudi Arabia’s Vision 2030 strategy, Sehhaty has become a vital tool in enhancing healthcare accessibility and efficiency, serving millions across the Kingdom.

Private Sector Innovations and Key Players

While the public sector has led the uptake of health tech in Saudi Arabia, the private sector has not lagged behind in spurring the evolution of the health tech ecosystem. Increasing numbers of health tech startups and incumbent players are inundating the market with creative solutions to address the Kingdom's healthcare requirements.

1. Vezeeta: Vezeeta is one of the top Middle Eastern health technology startups, with an online platform that allows patients to schedule appointments, consult doctors, and see their medical history online. Vezeeta expanded rapidly in Saudi Arabia, where it has allied with several healthcare providers to offer its services.

2. Altibbi: Altibbi is yet another regional HealthTech leader offering a range of digital health offerings, including telemedicine, online consultations, and medical knowledge. Altibbi has a strong presence in Saudi Arabia where it has partnered with both public and private sector healthcare providers to facilitate access to healthcare services.

3. Cura: Cura is a Saudi HealthTech company that offers a digital healthcare facility management platform. The company's platform offers electronic medical records (EMR), scheduling, and billing among others, which makes it easier for healthcare providers to manage their operations. Cura has been making strides in the Kingdom, particularly with private healthcare providers.

4. Nabta Health: Nabta Health is a HealthTech company with operations in the UAE that has been expanding its presence in Saudi Arabia. Nabta Health is an organization that offers an online platform focused on women's health and provides telemedicine, monitoring of health, and personalized health advice. Nabta Health has been working together with healthcare providers in Saudi Arabia to increase access to women's health services.

5. Labayh: Labayh is a Saudi-based HealthTech platform that specializes in mental health support, offering confidential and accessible psychological services through digital solutions. Founded in 2016, Labayh connects users with licensed therapists and mental health professionals via secure, private consultations through its mobile app. The platform provides services such as individual therapy sessions, family counseling, and emotional well-being programs, catering to a wide range of mental health needs. Labayh has gained recognition for breaking cultural stigmas around mental health in Saudi Arabia and the broader MENA region by offering discreet, user-friendly support.

Emerging Trends in Saudi Arabia's HealthTech Scene

The Saudi HealthTech landscape is marked by a number of emerging trends that are defining the future of healthcare in the Kingdom. These trends are part of the wider global trend toward digital health but are also shaped by the specific healthcare challenges and opportunities of Saudi Arabia.

1. Telemedicine: Telemedicine is now one of the leading areas of interest in Saudi HealthTech due to a need to improve access to healthcare services, particularly in rural areas. The COVID-19 pandemic has accelerated telemedicine adoption in the Kingdom, with both private and public sector healthcare providers offering online consultations and remote monitoring.

2. Artificial Intelligence (AI) and Machine Learning: AI and machine learning are increasingly being embraced in Saudi Arabia's healthcare system to improve diagnosis, treatment planning, and patient outcomes. Numerous HealthTech startups in the Kingdom are developing AI-based solutions, such as predictive analytics tools and treatment suggestions.

3. Wearable Technology: Wearable technology, such as smartwatches and fitness bands, is gaining popularity in Saudi Arabia, particularly among young consumers. The devices are being used to monitor health indicators, such as heart rate, sleep, and exercise, and are increasingly being paired with digital health platforms.

4. Healthcare Blockchain: Blockchain technology is considered a potential solution to making health information more secure and interoperable in Saudi Arabia. Various health technology startups in the country are building blockchain-based products to manage electronic health records and preserve the integrity of health data.

5. Digital Therapeutics: Digital therapeutics, where software-based interventions are used to treat conditions, are also gaining traction in Saudi Arabia. The solutions are being used to address chronic diseases, such as diabetes and high blood pressure, and are also being integrated with traditional healthcare services.

Challenges and Opportunities

While the Saudi HealthTech environment is promising, it also has some challenges. These include regulatory barriers, limited awareness among healthcare professionals and patients, and the need for greater investment in HealthTech infrastructure. However, these challenges also present opportunities for growth and innovation, particularly for startups and existing companies who are prepared to navigate the complexities of the Saudi healthcare market.

One of the key opportunities in Saudi Arabia's HealthTech ecosystem is the possibility of partnership between private and public sector stakeholders. The government's emphasis on health tech innovation, combined with the flexibility and capabilities of the private sector, presents a rich ground for partnerships that can drive the development and deployment of digital health solutions.

Conclusion

The Saudi HealthTech ecosystem is in a fascinating phase, with public and private sector players leading innovation and developing the healthcare landscape. The Vision 2030 initiative of the Kingdom has provided a major thrust towards health tech implementation, and the government's focus on digital health is creating growth-friendly conditions.

As the HealthTech ecosystem in Saudi Arabia expands, we can look forward to seeing more innovative solutions being created, addressing the unique health requirements of the Kingdom and improving the quality of life of the people. By achieving the right balance of public sector enablement, private sector innovation, and regulatory clarity, Saudi Arabia has the potential to become a health tech regional leader, an example for other countries in the Middle East and elsewhere.

Noha Gad

Successfully bidding on an IT project in Saudi Arabia requires more than just understanding the process; it demands strategic positioning to stand out in a competitive market. In our previous blog, we explored the key steps to prepare for a bid, including researching tenders, meeting regulatory requirements, and crafting a compelling proposal. However, winning a bid goes beyond compliance; it requires a well-planned approach to pricing, negotiation, and differentiation.

In this blog, we will dive into key strategies to maximize your chances of securing an IT project in Saudi Arabia. From offering competitive and sustainable pricing to navigating negotiations and avoiding common pitfalls, these insights will help you develop a winning edge in the Kingdom’s rapidly growing IT sector. 

How to craft a winning proposal?

A well-crafted proposal is essential for standing out in the competitive Saudi IT bidding landscape. It should not only meet technical and financial requirements but also align with the Kingdom’s Vision 2030 digital transformation goals. Below are the key components of a winning bid:

• Technical excellence: showcasing previous projects, case studies, and certifications.
• Financial competitiveness: structuring a cost-effective and profitable bid and understanding the weight of technical vs. financial scoring in evaluations.
• Local content and Saudization compliance.

Mastering Pricing Strategies

A well-balanced pricing strategy ensures that a bid is competitive, sustainable, and aligned with the project's financial expectations. Here are key considerations when developing a pricing strategy:

1. Balancing cost and value. You should analyze market benchmarks to ensure your pricing remains reasonable to avoid underpricing and overpricing. Underpricing can raise concerns about the project’s feasibility and quality, while overpriced bids are often eliminated early unless the company demonstrates significant added value.
2. Understanding government and private sector budgets. IT projects in Saudi Arabia vary based on the contracting entity, whether it is a government entity or a private one. Government projects usually follow strict budget allocations set by ministries or government agencies. Thus, your pricing must align with public sector regulations and transparency requirements. However, private sector projects have more flexible budgets but often focus on cost efficiency.
3. Structuring a profitable and competitive bid. Your bid must include a transparent cost breakdown, clearly outlining costs related to software development, licensing, hardware and infrastructure, maintenance, and training.

Navigating the negotiation process 

Winning an IT project bid is not just about submitting a strong proposal, it also requires strategic negotiation to finalize terms, secure the contract, and maximize profitability. 

Effective negotiation can differentiate a bidder from competitors by showcasing flexibility, value, and commitment to project success. To navigate this phase successfully, you have to:

• Effectively engage with key stakeholders by conducting thorough research, building relationships, and customizing value propositions.
• Adjust proposals post-bid submission. Even after submitting a bid, there is room for adjustments and refinements. Procurement teams may request modifications related to project scope, pricing, timelines, and compliance requirements.
• Leverage competitive advantages. Winning negotiations often depends on showcasing unique strengths such as a proven track record, innovation and technology leadership, customization and scalability, and after-sales support, and training.

Common mistakes to avoid

Even the strongest IT proposals can fail due to avoidable mistakes. Common pitfalls include a lack of compliance with Saudi regulations, unclear pricing structures, and overpromising deliverables without a clear execution plan.

Finally, you can be a strong contender in Saudi Arabia’s rapidly growing IT sector by crafting a compelling proposal, mastering pricing strategies, and avoiding common pitfalls. With the right preparation and a clear understanding of the bidding landscape, you can secure valuable contracts and contribute to the Kingdom’s digital transformation goals.

Kholoud Hussein

In the dynamic landscape of entrepreneurship, continuous learning and skill development are paramount for success. Educational platforms and skill-building initiatives play a crucial role in equipping entrepreneurs with the knowledge and competencies needed to navigate challenges and seize opportunities. In Saudi Arabia, the convergence of technology and education has led to the emergence of innovative platforms and programs that empower aspiring and established entrepreneurs alike.

The Significance of Educational Platforms for Entrepreneurs

Educational platforms offer accessible, flexible, and tailored learning experiences that cater to the unique needs of entrepreneurs. These platforms provide a wealth of resources, from foundational business knowledge to advanced strategic insights, enabling entrepreneurs to:

• Acquire Essential Skills: Develop competencies in areas such as financial management, marketing, leadership, and technology adoption.
• Stay Updated: Keep abreast of the latest industry trends, market dynamics, and regulatory changes.
• Network and Collaborate: Connect with peers, mentors, and industry experts to share experiences and foster collaborations.
• Access Mentorship: Receive guidance from seasoned professionals to navigate complex business challenges.

Saudi Arabia's Commitment to Entrepreneurial Education

Under the Vision 2030 initiative, Saudi Arabia has demonstrated a robust commitment to fostering entrepreneurship through educational reforms and the integration of technology in learning. This strategic focus aims to diversify the economy and cultivate a culture of innovation.

Leading Educational Platforms and Initiatives

Several platforms and programs have been instrumental in nurturing entrepreneurial talent in the Kingdom:

1. Doroob: An e-learning platform offering a wide range of courses designed to enhance the skills of Saudi professionals and entrepreneurs. Doroob provides self-paced online programs accessible 24/7, focusing on various aspects of entrepreneurship, including lessons and assessments. 
2. Rwaq: A platform providing free Arabic courses on diverse subjects, including business and entrepreneurship, catering to the educational needs of the Kingdom. 
3. Misk Launchpad: A virtual, fast-paced 10-week program delivered in English for aspiring entrepreneurs to transform their ideas into working Minimum Viable Products (MVPs). The program is a mix of theoretical masterclasses and practical workshops delivered by world-class experts, broken down into three main phases: Shape, Build, and Pitch. 
4. KAUST Entrepreneurship Center: Supports innovators from across the Kingdom by providing training, space, and leadership to make entrepreneurship happen. The center fosters a connected community of innovators by providing hands-on training and funding support for emerging ideas. 
5. Monsha'at Academy: Offers self-paced online programs available 24 hours a day through the academy's learning management system. These programs focus on various aspects of entrepreneurship and include lessons and assessments. 
6. FutureX Platform: Enables institutions to create and design high-quality e-learning programs by linking them with qualified providers, equipped with advanced e-learning technologies. 
7. SaudiPreneur: A program launched by EYouth Learning and Value Makers Studio to encourage and support entrepreneurship among the Kingdom's youth. The program aligns with the goals of Saudi Vision 2030 and provides youth-specific programs across various fields. 
8. Noon Education: A Saudi-based edtech platform on a mission to make quality education accessible everywhere. Noon crafts learning experiences that deeply connect with students, engage them, and inspire them in many ways. 
9. Empretec's FintechHub and LogiHub Projects: Offer comprehensive learning opportunities for start-up founders at all growth stages across Saudi Arabia, blending essential entrepreneurial skills with practical insights.  
10. Saudi Women Entrepreneurs Networking and Mentorship Initiative: A program designed to provide access to best practices and immersive learning opportunities while connecting Saudi women entrepreneurs. 

Impact on Entrepreneurial Success

The integration of these educational platforms and initiatives has yielded significant benefits for entrepreneurs in Saudi Arabia:

• Enhanced Skill Sets: Entrepreneurs have developed critical skills necessary for business success, from strategic planning to digital marketing.
• Increased Startup Success Rates: Access to quality education and mentorship has contributed to higher survival and success rates among startups.
• Economic Diversification: Empowered entrepreneurs have ventured into various sectors, contributing to the diversification of the Saudi economy.
• Job Creation: Successful startups have generated employment opportunities that align with national economic goals.

Local entrepreneurs have attested to the value of these educational platforms, including Nadia Alafaleq, Founder & CEO of Beaee Platform, saying: "Misk Entrepreneurship has been instrumental in developing youth knowledge and skills to create ventures, build networks, scale up ideas, and gain access to fundraising." 

on the other hand, Mohammed Aldhalaan, Co-founder and CEO of Noon Education, stated: "Noon is a student-first company obsessed with crafting learning experiences that deeply connect with students, engage them, and inspire them in many ways." 

Finally, educational platforms and skill-building initiatives are vital components in the entrepreneurial ecosystem, transforming raw ambition into actionable success. In Saudi Arabia, the synergy between technological advancement and educational innovation has created a fertile ground for entrepreneurs to thrive. As the Kingdom continues its journey toward economic diversification and sustainable growth, these platforms will play an increasingly pivotal role in shaping the future

Magdy Hassan, CEO of taly

The sounds of coins clinking and bills rustling are becoming increasingly rare as we shift toward a cashless future, where digital transactions take the lead. While some people still prefer the feel of physical money, the global transition to digital payments is already well underway, and there are compelling reasons for it. The advantages of going cashless are hard to ignore.

This change is not just a vision for the future—it’s already happening in many parts of the world, including Egypt. Over the past decade, initiatives by the government and the Central Bank of Egypt have spurred economic growth and expanded financial inclusion. As a result, more than 177+ fintech startups and payment service providers (PSPs) have emerged, offering innovative solutions across 14 different subsectors. Many of these companies are expanding their services beyond Egypt, reaching regional and even global markets. The recent launch of Tokenization in Egypt is another game changer that would enable consumer to make their payment directly from their mobiles without the need to use a plastic card, which will embrace the digital life style.

In line with Egypt’s Sustainable Development Strategy and the UN Sustainable Development Goals, Egyptian banks have significantly advanced financial inclusion and digital transformation. Today, around 52 million citizens actively use financial accounts across banks, post offices, mobile wallets, and prepaid cards. Financial inclusion rates soared to 74.8% by the end of 2024, up from 70.7% in 2023, representing a 204% growth since 2016. Digital transformation is further demonstrated by a 32% annual increase in mobile wallet accounts, reaching a total of 42.1 million accounts in March 2024.

With the increasing demand of non-face-to-face payment and transfer due to the significant increase of online ordering Egypt's e-commerce market projected to double from 2025 to 2030, with the increasing need of people convenience the digital payments are becoming even more crucial. Evidence of this shift is clear: 85% of mobile wallet usage is dedicated to peer-to-peer transfers, with over 18 million wallets and over 6 million Instapay users playing a vital role in the ongoing digital transformation.

While the potential benefits of digital payments are undeniable, at taly, we believe it’s important to ask: Are we truly ready to be Digital Enabler?

The clear answer that Taly born Digitally with the vision of providing comprehensive ecosystem offering unparalleled convenience. Imagine a world where you can pay for anything, anywhere, with just a few taps on your phone or a swipe of your card. No more fumbling for change or countless trips to the ATM. Whether in bustling city markets or remote rural shops, taly ecosystem connects consumers with their service providers, merchant with their suppliers, Corporates with their employees, making day-to-day transactions faster, easier, secured, trackable, and more efficient for all stakeholders. The first of its kind Corporate Portal just launched by taly is a great example of increased corporates efficiency, saves time, reduces overhead costs, ease reconciliation between the company and its employees, and promotes a smoother economic flow.

Digital transactions create traceable records, making it harder for criminals to operate, and helping to combat tax evasion and money laundering, leading to a fairer and more just economic system.

Moreover, digital payments offer easy tracking and management, giving individuals better control over their finances and supporting effective budgeting. Consumers are increasingly aware of solutions like digital cards, Buy Now Pay Later (BNPL) options, and open banking, and they are actively integrating these solutions into their daily lives. We are really proud to be on the heart of all those solutions as digital enabler not competitor.

Of course, the transition to a cashless society isn’t without challenges. Concerns around privacy, cybersecurity, and accessibility for underserved populations are critical subjects that must be addressed. Strong safeguards are necessary to protect personal data and prevent fraud. Ensuring universal access to digital tools is vital before fully embracing a cashless system. Education and support programs will be key to bridging the digital divide and promoting inclusivity.

At taly, we understand that the shift to a cashless future is not a matter of if, but when. While challenges remain, the benefits of a cashless world—convenience, security, transparency, and economic efficiency—are undeniable. By embracing innovation and inclusivity, we can unlock the full potential of this transformation, paving the way for a prosperous future in Egypt.

Building on the continuous efforts of the Central Bank of Egypt, our company plays a pivotal role in Egypt’s digital transformation by offering a full suite of services and tailored solutions. With a team of over 200 employees, comprehensive digital processing capability, local first Tokenization platform, and payment gateway those connected with all global and local payment schemes, taly ensures secure and seamless transactions having recently renewed its ISO and PCI certifications positioning it as one of the first to be certified PCI DSS V4.0, reaffirming our commitment to the highest security standards.

As a comprehensive digital payment ecosystem, taly facilitates digital transformation by providing a seamless payment experience for banks, enterprises, and merchants. We also empower startups with innovative infrastructure that enhances financial ecosystems and accelerates transactions, driven by our unwavering commitment to advancing Egypt’s fintech sector and supporting Egypt’s Vision 2030.

Our company boasts unparalleled technological infrastructure in Egypt, promoting integration with banks and collaboration with digital payment apps. taly’s mission is to support the Egyptian economy’s digital evolution by providing the necessary infrastructure. We offer a wide range of digital solutions for Egyptian banks and their customers, including tokenization, allowing customers to use their phones as alternatives to plastic cards.

The fintech sector in Egypt has a very promising future, having already witnessed rapid development thanks to the diligent efforts of the Central Bank of Egypt. As digital transformation becomes not a luxury, but a necessity, it's time to embrace this change and leave the clink of coins behind.

Kholoud Hussein 

Generative Artificial Intelligence (GenAI) is rapidly transforming industries worldwide, and Saudi Arabia is embracing this technological revolution with strategic vigor. Aligned with the Kingdom's Vision 2030 initiative to diversify its economy beyond oil dependence, GenAI is making significant inroads into various sectors, particularly within the private domain and the burgeoning startup ecosystem. This article explores the sectors most impacted by GenAI in Saudi Arabia, supported by recent data and insights from industry leaders, and discusses potential sectors poised for future transformation.

The Rise of GenAI in Saudi Arabia

Under the ambitious leadership of Crown Prince Mohammed bin Salman, Saudi Arabia is positioning itself as a global hub for artificial intelligence. The Kingdom's strategic initiatives, such as "Project Transcendence," aim to attract substantial investments from global tech companies to bolster domestic AI infrastructure, including data centers and startups. This aligns with the broader Vision 2030 plan to diversify the economy and reduce dependence on oil. 

The Public Investment Fund (PIF) has announced plans to launch a $40 billion fund to invest in AI, potentially partnering with venture capital firms like Andreessen Horowitz. This initiative underscores the Kingdom's commitment to establishing a robust AI ecosystem, fostering innovation, and attracting global tech leaders to its domestic market. 

Sectors Most Affected by GenAI

1. Technology Sector

The technology sector stands at the forefront of GenAI adoption in Saudi Arabia. According to research by Strategy& Middle East, the sector could see an increase in operating profit by up to SAR 15 billion by 2028 through the development and commercialization of new GenAI use cases and the growing demand for advanced hardware and infrastructure. Additionally, Saudi tech firms could streamline their research and development (R&D) capabilities, enhance solution design, and automate internal processes, potentially reducing costs by up to 30%. 

2. Media and Entertainment

The media and entertainment sector is poised to benefit significantly from GenAI. The same Strategy& report indicates that this sector could experience an increase in operating profit of up to SAR 6 billion by 2028. GenAI enables firms to develop more original Arabic content, personalize customer experiences, and improve operational capabilities. This advancement aligns with the Kingdom's national agenda to establish itself as a media and entertainment hub. 

3. Telecommunications

Telecommunications companies in Saudi Arabia are leveraging GenAI to enhance customer insights and infrastructure utilization. The adoption of GenAI could lead to an increase in operating profit of up to SAR 11 billion by 2028. By analyzing customer behavior, telecom operators can personalize campaigns and enhance cross-selling opportunities, particularly within the small and medium-sized enterprises (SME) market, projected to reach SAR 10 billion by 2028. 

4. Healthcare

The healthcare sector in Saudi Arabia is also experiencing the transformative effects of GenAI. Globally, AI is being utilized for predictive diagnostics, personalized treatment plans, and efficient patient management. In Saudi Arabia, integrating GenAI could enhance healthcare delivery, optimize resource allocation, and improve patient outcomes, aligning with the Kingdom's goals to modernize its healthcare infrastructure.

5. Finance and Banking

The finance and banking sector is transforming with the integration of GenAI. AI-driven algorithms are enhancing fraud detection, risk assessment, and customer service through chatbots and personalized financial advice. Saudi banks and financial institutions are investing in AI technologies to streamline operations, reduce costs, and offer innovative services to customers.

Impact on Startups and the Private Sector

The startup ecosystem in Saudi Arabia is rapidly evolving, with a significant focus on deep tech innovations. A report by the Ministry of Communications and Information Technology, in collaboration with King Abdullah University of Science and Technology, reveals that up to 50% of deep tech startups in the Kingdom are working on artificial intelligence and the Internet of Things (IoT). These startups have collectively secured more than $987 million in funding, reflecting a robust commitment to technological advancement.

The number of active startup investors in Saudi Arabia reached 104 in 2023, marking a 41% increase from 2018. Public funds heavily support this expansion, as the government is committed to nurturing tech startups and scale-ups. Furthermore, the number of researchers in the country has risen by 75% since 2015, with plans to expand the research infrastructure to accommodate 140,000 researchers by 2030, up from the current 20,000.

Insights from Saudi Officials and Business Leaders

Saudi officials and business leaders are vocal about the transformative potential of GenAI. Richard Attias, CEO of the Future Investment Initiative (FII) Institute, emphasizes the importance of AI in addressing global challenges and fostering inclusive investments. He highlights the role of AI in driving innovation and efficiency across various sectors, aligning with the Kingdom's vision for economic diversification. 

The Kingdom's strategic collaborations, such as the partnership between Aramco and Groq to build the world's largest AI inference data center, underscore the commitment to establishing a robust AI infrastructure. These initiatives are part of a broader strategy to position Saudi Arabia as a leader in AI investment, complementing the country's oil wealth and ensuring relevance in the post-oil era. 

Potential Sectors for Future GenAI Impact

Beyond the sectors currently experiencing significant GenAI integration, several other industries in Saudi Arabia are poised for transformation in the near future. As the Kingdom continues its AI-driven economic diversification, the following sectors are expected to see increasing disruption and opportunities for growth.

1. Automotive Industry

Saudi Arabia’s ambitious plans to establish a homegrown automotive industry, with initiatives such as Ceer Motors, will likely benefit from GenAI. Generative AI can revolutionize vehicle design, predictive maintenance, and supply chain optimization.

• Generative Design: AI can optimize vehicle components for strength, weight, and fuel efficiency, improving performance and reducing material waste.
• Smart Manufacturing: AI-powered automation in assembly lines can enhance precision and efficiency while lowering production costs.
• Autonomous Vehicles: As part of the Kingdom’s Vision 2030 Smart City initiatives (such as NEOM and The Line), GenAI will play a key role in self-driving technology, traffic management, and mobility solutions.

With the Saudi government investing billions into electric and autonomous vehicles, this sector is primed for AI-driven innovation.

2. Education and E-Learning

Saudi Arabia has been actively integrating AI into education, with a strong push toward personalized learning experiences and AI-powered content generation.

• Adaptive Learning Platforms: AI can tailor lessons to individual student needs, ensuring better retention and engagement.
• Automated Content Generation: GenAI tools can develop course materials, summarize lectures, and even generate interactive quizzes.
• AI-powered tutoring: Chatbots and AI tutors can provide 24/7 academic support to students across various disciplines.

With the Kingdom investing heavily in digital education platforms, GenAI could redefine the way students and professionals learn in Saudi Arabia.

3. Real Estate and Urban Development

The Saudi real estate sector is undergoing rapid expansion, driven by mega-projects like NEOM, Qiddiya, and the Red Sea Project. AI is expected to streamline construction planning, optimize resource allocation, and enhance property management.

• AI-Generated Architectural Designs: Generative AI can automate building designs, improving efficiency and reducing project timelines.
• Smart Cities: AI-driven traffic control, energy management, and security systems will play a crucial role in urban development.
• Property Valuation and Market Predictions: AI-powered analytics can provide accurate real estate forecasts, assisting investors and developers in making informed decisions.

As Saudi Arabia aims to create futuristic, AI-driven urban environments, GenAI will be integral to shaping the Kingdom’s real estate landscape.

4. Retail and E-Commerce

Saudi Arabia’s booming e-commerce market, projected to reach $20 billion by 2025, is already leveraging AI for customer experience enhancement and supply chain optimization.

• Hyper-Personalized Shopping: AI can analyze customer behavior and generate real-time personalized recommendations.
• AI-powered chatbots: Virtual assistants can handle customer inquiries, recommend products, and process transactions, improving efficiency.
• Inventory and Logistics Optimization: AI models can predict demand trends, automate restocking, and reduce waste, making supply chains more efficient.

With Saudi startups and enterprises investing heavily in AI-driven retail solutions, the sector is poised for even greater transformation in the near future.

5. Energy and Sustainability

As Saudi Arabia transitions toward renewable energy and sustainability goals, GenAI will play a pivotal role in optimizing energy management and reducing carbon footprints.

• AI-Optimized Power Grids: Machine learning algorithms can predict energy demand, allowing for efficient power distribution.
• Predictive Maintenance for Renewable Energy: AI can monitor and predict failures in solar farms, wind turbines, and smart grids, reducing downtime and maintenance costs.
• Sustainable Resource Allocation: AI-driven simulations can optimize water and energy usage across industrial and residential sectors.

Saudi Arabia’s commitment to green energy through projects like the $5 billion NEOM Green Hydrogen plant highlights GenAI's crucial role in the energy sector.

Finally, Generative AI is fundamentally reshaping industries across Saudi Arabia, accelerating economic diversification and boosting productivity. While sectors like technology, media, telecommunications, healthcare, and finance have already witnessed significant AI integration, emerging fields like automotive, education, real estate, retail, and energy are set to experience profound transformations.

With the Saudi government investing in AI research, local startups, and global partnerships, the Kingdom is on track to become a global AI hub. However, challenges remain in terms of regulation, talent development, and infrastructure, which must be addressed to fully capitalize on GenAI’s potential.

As Saudi Arabia continues its digital revolution, AI-powered industries will drive innovation, economic growth, and long-term sustainability, positioning the Kingdom as a leader in the global AI economy.

Ghada Ismail

Startups are built on ideas, but they survive and thrive on insights. In Saudi Arabia’s fast-changing market, where digital transformation is reshaping industries and consumer behavior is evolving rapidly, listening to customer feedback can be the difference between winning and losing.

Imagine pouring months into developing what you believe is a groundbreaking product, only to find that customers don’t see the value. It’s a common pitfall, especially when founders get so attached to their vision that they overlook what their audience is really asking for. Ignoring feedback isn’t just a missed opportunity, it’s rather a direct path to failure.

Why Ignoring Feedback Is Risky

The numbers paint a clear picture:

• According to CB Insights, 14% of startup failures are linked to ignoring customer needs.
• In Saudi Arabia’s growing startup scene, 60% of struggling startups reported a disconnect between their product and customer expectations (MAGNiTT, 2023).

When startups tune out feedback, they risk creating solutions that fail to solve real problems. Worse yet, they may alienate early adopters, the very people willing to give honest insights that could shape a stronger product.

Common Mistakes Startups Make

• Dismissing Negative Feedback: It's easy to brush off complaints as isolated incidents, but patterns in criticism often signal deeper flaws.
• Failing to Act on Feedback: Gathering insights without following through frustrates customers. HubSpot reports that 42% of customers disengage from businesses that ignore their concerns. 
• Assuming Silence Means Satisfaction: Just because customers aren’t complaining doesn’t mean they’re happy. Many dissatisfied users simply leave without sharing their frustrations.
• Relying Solely on Internal Assumptions: Building a product based on what founders think customers want instead of gathering direct feedback often leads to misalignment.
• Ignoring Cultural Preferences: For startups in Saudi Arabia, failing to account for local preferences, language, and traditions can alienate key customer segments.

Building a Strong Feedback System

To stay in tune with customer needs, startups should:

• Develop clear processes for collecting and analyzing feedback.
• Engage through customer support channels, surveys, and social media, especially vital in Saudi Arabia, where social media penetration exceeds 80% according to Statista.
• Show customers that their voices matter by acting on feedback and openly sharing improvements inspired by their input.

Wrapping things up…

Startups that truly listen to their customers are the ones that adapt, evolve, and thrive. Saudi Arabia’s startup landscape is competitive, and winning over customers takes more than just a strong product, it requires building trust. By responding to feedback and making users feel heard, startups gain more than insights; they gain advocates who will champion their success.

On the other hand, ignoring feedback is like driving blind—risky, reckless, and often fatal for businesses. Embracing customer insights isn’t just smart, it makes you survive the first year’s curse. 

Stay tuned for the final episode in this series, where we'll explore the last two major reasons why startups struggle  and how to overcome them with key insights to help founders navigate their crucial first year.

Kholoud Hussein 

In today's data-driven business landscape, the ability to transform raw data into actionable insights has become a cornerstone of success, particularly for startups aiming to navigate competitive markets. Data analytics services play a pivotal role in this transformation, enabling organizations to make informed decisions, optimize operations, and drive growth. In Saudi Arabia, a nation undergoing rapid economic diversification under Vision 2030, the integration of data analytics is proving instrumental in fostering innovation and entrepreneurship.

The Power of Data Analytics in Modern Business

Data analytics involves examining raw data to uncover patterns, correlations, and trends that inform strategic decision-making. By applying statistical and computational methods, organizations can interpret complex datasets, leading to a deeper understanding of business processes, customer behaviors, and market dynamics. This analytical approach not only enhances operational efficiency but also fosters innovation by identifying new opportunities and optimizing strategies. 

Data Analytics: A Catalyst for Startup Success

For startups, data analytics is not just a tool but a critical asset that can significantly influence their trajectory. Here's how data analytics services are transforming raw information into actionable insights:

1. Informed Decision-Making

Startups often operate with limited resources, making precise decision-making crucial. Data analytics provides empirical evidence that guides strategic choices, reducing reliance on intuition and increasing the likelihood of success. By analyzing market trends, customer feedback, and operational metrics, startups can make data-driven decisions that align with their business objectives. 

2. Enhancing Customer Experiences

Understanding customer behavior is vital for startups aiming to establish a loyal customer base. Data analytics enables the examination of customer interactions, preferences, and feedback, allowing startups to tailor their products or services to meet customer needs effectively. This personalization fosters customer satisfaction and loyalty, which are essential for long-term success.

3. Operational Efficiency

Identifying inefficiencies within operations can be challenging without proper analysis. Data analytics helps startups pinpoint areas where resources may be underutilized or processes can be streamlined, leading to cost reductions and improved productivity. For instance, analyzing supply chain data can reveal bottlenecks, enabling startups to implement solutions that ensure smoother operations. 

4. Risk Mitigation

Startups face various risks, from market volatility to operational challenges. Data analytics facilitates risk assessment by identifying potential issues before they escalate. By monitoring key performance indicators and market signals, startups can proactively address risks, ensuring business continuity and resilience. 

Data Analytics in Saudi Arabia's Startup Ecosystem

Saudi Arabia's commitment to fostering a robust startup ecosystem is evident through its investments in technology and innovation. The data analytics sector in the Kingdom is experiencing significant growth, driven by the expanding IT infrastructure and a heightened focus on evidence-based decision-making. Experts project that the sector will grow at a compound annual growth rate (CAGR) of 30.04% from 2024 to 2032, indicating a promising future for data-driven enterprises. 

Mozn, a Saudi-based startup, exemplifies the successful integration of data analytics in business operations. Specializing in artificial intelligence and data analytics, Mozn provides solutions that help organizations make informed decisions. By leveraging data analytics, Mozn enables businesses to enhance efficiency and drive growth, showcasing the transformative potential of data-driven strategies. 

Insights from Saudi Business Leaders

Saudi business owners recognize the value of data analytics in achieving business objectives. A prominent Saudi entrepreneur noted, "Incorporating data analytics into our operations has been a game-changer. It has allowed us to understand our customers better and streamline our processes, leading to increased efficiency and profitability."

Another business leader highlighted, "The insights gained from data analytics have been instrumental in guiding our strategic decisions. It has given us a competitive edge in the market, enabling us to anticipate trends and adapt accordingly."

Challenges and Considerations

While the benefits of data analytics are substantial, startups may encounter challenges in its implementation:

• Data Quality: Ensuring the accuracy and completeness of data is essential for reliable analysis.
• Resource Constraints: Implementing data analytics requires investment in technology and skilled personnel, which may be challenging for startups with limited resources.
• Data Privacy: Adhering to data protection regulations is crucial to maintain customer trust and avoid legal repercussions.

Addressing these challenges necessitates a strategic approach, including investing in quality data management systems, training staff, and establishing robust data governance policies.

To conclude, data analytics services are indispensable in transforming raw information into actionable insights, particularly for startups striving for success in competitive markets. In Saudi Arabia, the integration of data analytics aligns with the nation's Vision 2030 goals, fostering innovation and economic diversification. By leveraging data analytics, startups can make informed decisions, enhance customer experiences, optimize operations, and mitigate risks, thereby establishing a strong foundation for sustainable growth.

As we continue our exploration of the building blocks of startup success, our next discussion will delve into the role of educational platforms and skill-building initiatives in empowering entrepreneurs. We will examine how access to knowledge and continuous learning contribute to entrepreneurial success, particularly in the context of Saudi Arabia's evolving business landscape.

Ghada Ismail

A groundbreaking idea, strong financial backing, and an eager market may seem like the perfect formula for startup success. Yet beneath these promising elements lies a crucial factor that determines whether a startup thrives or fails: the people driving it.

Leadership and team dynamics are the unseen forces that shape every decision, process, and relationship within a company. Founders who build cohesive teams and embrace effective leadership practices create environments where innovation flourishes and employees remain motivated. Conversely, startups plagued by leadership conflicts, misaligned visions, or toxic work cultures risk collapse even when their products or services show great potential.

How Leadership and Team Issues Emerge

Problems often arise when founders struggle to define roles, align visions, or manage conflicts. Leadership inexperience can lead to poor decision-making, unclear communication, or a failure to set realistic goals. Similarly, weak team cohesion may result in internal friction, disengagement, or frequent turnover.

Research by CB Insights shows that 23% of startups fail due to team issues, including leadership conflicts and skill gaps. A startup with two co-founders, for example, may face tensions if one envisions aggressive growth while the other prefers a more conservative pace. Without alignment, this disconnect can ripple through the entire company, affecting strategic direction and morale.

A study by Harvard Business Review found that startups with clearly defined leadership roles and well-structured teams are 2.3 times more likely to scale successfully. Meanwhile, fragmented teams often suffer from duplicated efforts, miscommunication, and wasted resources, ultimately slowing growth.

Key Strategies to Build a Stronger Leadership and Team Foundation

1. Establish Clear Roles and Responsibilities: Define leadership roles early and ensure each leader understands their scope. This reduces overlap and confusion. Founders should align on decision-making authority and areas of accountability to minimize power struggles.
2. Prioritize Communication: Regular team check-ins, open dialogue, and transparent decision-making help prevent misunderstandings and keep teams aligned. Successful startups often implement structured communication routines such as weekly stand-ups, performance reviews, and team-wide updates to ensure alignment.
3. Invest in Leadership Development: Even experienced founders can benefit from mentorship, coaching, or management training to strengthen their leadership skills. Programs like Endeavor Saudi Arabia provide guidance to founders, helping them refine their leadership approach.
4. Build a Collaborative Culture: Encourage teamwork through shared goals, team-building activities, and a supportive environment where ideas are valued. Studies by the Institute for Corporate Productivity (i4cp) have shown that companies that actively promote collaboration are five times more likely to be high-performing.
5. Address Conflict Early: Tensions are inevitable, but unresolved disputes can fester. Creating a structured process for resolving conflicts ensures issues are managed before they escalate. Conflict resolution frameworks like the "Radical Candor" approach encourage open yet empathetic conversations to resolve friction productively.

The Radical Candor is a communication framework developed by Kim Scott, designed to help leaders give feedback that is both direct and caring. The concept encourages managers to challenge their team members while simultaneously showing they care about them personally. The framework is built on two key dimensions:

• Care Personally: Building strong relationships by genuinely caring about your colleagues as individuals.
• Challenge Directly: Offering clear, honest, and sometimes tough feedback that helps people improve.

The Power of Strong Leadership and Teamwork

Startups that cultivate clear leadership structures and foster a united team are far better equipped to handle the pressures of early-stage growth. Research by McKinsey & Company shows that companies with effective leadership teams are 1.9 times more likely to achieve above-average financial performance, emphasizing the value of well-managed teams.

In the unpredictable world of entrepreneurship, strong leadership, and cohesive teams are not just assets, they're essential for survival. Up next, we'll explore how ignoring customer feedback can silently sabotage even the most promising startups. Stay Tuned!

Kholoud Hussein 

In the rapidly evolving landscape of technology, Artificial Intelligence (AI) and Machine Learning (ML) have emerged as pivotal forces driving innovation and efficiency. Integrating these technologies is no longer a luxury for tech startups but a necessity to remain competitive and agile. This installment of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," explores the significance of AI and ML partnerships for tech startups, with a special focus on the burgeoning ecosystem in Saudi Arabia.

The Imperative of AI and ML for Tech Startups

AI and ML technologies enable startups to analyze vast amounts of data, automate processes, and deliver personalized customer experiences. According to a report by Exploding Topics, approximately 35% of companies have adopted AI services to address labor shortages, and global AI adoption is projected to grow at a compound annual growth rate (CAGR) of 36.6% between 2024 and 2030. 

The benefits of incorporating AI and ML into business operations are manifold:

• Enhanced Decision-Making: AI-driven analytics provide startups with actionable insights, facilitating informed decision-making and strategic planning.
• Operational Efficiency: Automation of routine tasks through AI reduces operational costs and minimizes human error, leading to increased productivity.
• Customer Engagement: Personalized recommendations and services powered by ML algorithms enhance customer satisfaction and loyalty.

AI and ML Adoption Among Startups

The adoption of AI and ML is particularly pronounced among startups aiming to disrupt traditional business models. A McKinsey Global Survey indicates that organizations are beginning to implement changes designed to generate future value from generative AI, with large companies leading the way.

In the United States, AI adoption rates vary by company size. Data from the Bipartisan Policy Center reveals that firms with 250 or more employees have an adoption rate of 7.2%, while those with one to four employees have a rate of 5.5%. This trend underscores that both large enterprises and nimble startups recognize the value of AI integration.

The Saudi Arabian Context

Saudi Arabia is undergoing a technological renaissance, with AI and ML at the forefront of its Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil. The Kingdom's deep tech startup ecosystem is thriving, with half of these startups focusing on AI and the Internet of Things (IoT), reflecting a robust commitment to technological advancement.

Several Saudi startups have emerged as leaders in the AI and ML space:

• Mozn: Specializing in AI development and IT strategy consulting, Mozn operates in Riyadh and London, offering solutions that enhance business intelligence and operational efficiency. 
• Lucidya: This startup focuses on AI-driven customer experience management, enabling businesses to analyze and improve customer interactions across various platforms.
• Intelmatix: Providing AI solutions for decision intelligence, Intelmatix assists organizations in making data-driven decisions to optimize performance.

The Saudi Data and Artificial Intelligence Authority (SDAIA) plays a pivotal role in fostering entrepreneurship in data and AI, contributing to the growth of a knowledge-based economy. 

Insights from Saudi Business Leaders

Saudi business leaders recognize the transformative potential of AI and ML. For instance, Cognite, an industrial software firm backed by Saudi Aramco, has expanded its AI services to India, aiming to collaborate with major conglomerates and invest significantly in the region. This move underscores the strategic importance placed on AI by leading Saudi enterprises.

Furthermore, vminds.ai, a platform developed by VEEM Solutions, integrates over 150 AI tools from global providers, offering services like generative AI for text, images, video, music, AI-powered automation, and speech processing. The startup has secured six-figure pre-seed funding and has been incubated at Saudi Aramco’s Wa’ed Entrepreneurship Centre and the Ministry of Communications and Information Technology’s Tech Champions Accelerator, demonstrating strong ecosystem support. 

Challenges and Considerations

While the integration of AI and ML offers numerous benefits, startups must navigate certain challenges:

• Resource Constraints: Developing and implementing AI solutions can be resource-intensive, requiring specialized talent and infrastructure.
• Data Quality: AI systems rely on high-quality data; ensuring data accuracy and relevance is crucial for effective outcomes.
• Ethical Implications: Startups must consider the ethical aspects of AI deployment, including data privacy and algorithmic bias.

Finally, AI and ML are indispensable partners for tech startups aiming to innovate and thrive in a competitive landscape. The global trend toward AI adoption is mirrored in Saudi Arabia, where a vibrant ecosystem supports the growth of AI-focused startups. By embracing these technologies, startups can enhance decision-making, streamline operations, and deliver superior customer experiences, aligning with the Kingdom's Vision 2030 goals.

In the next installment of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," we will explore the role of Data Analytics Services in transforming raw information into actionable insights. Understanding how to harness data effectively is crucial for startups seeking to make informed decisions and drive strategic growth.

Stay tuned as we delve into how data analytics can empower startups to unlock new opportunities and achieve sustained success.

Noha Gad

Saudi Arabia’s information technology (IT) sector has witnessed significant growth since the launch of Vision 2030. The Kingdom’s continuous efforts to shore up its IT infrastructure have positioned the country favorably on international indices, ranking it second among G20 countries on the UN International Telecommunication Union’s ICT Development Index.

According to a recent report by AstroLabs, the IT sector in Saudi Arabia reached over $50.6 billion as of 2024, contributing 4.1% of the national gross domestic product (GDP).

Bidding on IT projects in the Kingdom presents a significant opportunity for businesses looking to tap into the rapidly growing digital economy in Saudi Arabia. With the government's strong focus on digital transformation under Vision 2030, numerous public and private sector projects are available across various domains, including cloud computing, cybersecurity, smart cities, AI, fintech, and e-government solutions. 

Government-led initiatives, such as the Etimad portal for public tenders, provide structured bidding opportunities, while major private sector players and mega-projects like NEOM and the Red Sea Project are driving demand for cutting-edge IT solutions.

Understanding the bidding process, regulatory requirements, and best practices is essential for companies looking to compete effectively and secure contracts in this dynamic market. In this blog, we will explore the key steps needed for successful bidding on IT projects in Saudi Arabia.

Step 1: Pre-registration requirements (2 to 3 weeks)

In this stage, you need to obtain a valid Commercial Registration (CR) certificate and secure a license from the Ministry of Investment (MISA). You also have to acquire a Saudization Certificate to verify your company's compliance with Saudization regulations, in addition to having a valid certificate from the General Organization for Social Insurance (GOSI).

The next steps include opening and maintaining active bank accounts with local banks and preparing all other necessary legal documents, including Chamber of Commerce membership, Zakat certificate, VAT registration certificate, supplier classification certificate (if required), and SMEs Monsha’at certificate (optional for SMEs).

Step 2: Register on the Etimad Portal (5 to 6 weeks)

The Etimad Platform is an official electronic procurement platform launched by the Ministry of Finance to streamline government tenders and financial services. It serves as the central hub for public sector procurement, enabling businesses to view, bid on, and manage government contracts efficiently.

After completing all mandatory registration on theEtimad platform, you will need to upload all required documents, such as CR, GOSI, and bank details certificates. 

This stage also includes creating the company stamp, the Ministry of Law registration, national address registration, GOSI registration, and GAZT & VAT registration.

Step 3: Preparing for bidding (2 to 3 weeks)

First, you will need to register on several portals including, Absher, Mudad, Muqeem, and Qiwa. Then, you can search for available tenders, ensuring compliance with Saudi labor laws, Saudization policies, and financial regulations.

The Etimad platform is your perfect choice for searching for public-sector IT projects. Meanwhile, networking with key stakeholders and industry events can help identify upcoming opportunities in the private sector.

Building a Competitive Proposal

A strong proposal should address three key areas:

1. Technical Requirements. This includes project scope, deliverables, timelines, expertise, certifications, and previous experience.
2. Financial competitiveness. You have to provide detailed cost breakdowns to ensure transparency while balancing competitive pricing with profitability.
3. Compliance and Documentation. Ensure all legal and financial documents are in place, submit proof of experience, and provide partnership agreements if collaborating with local firms. 

Finally, bidding on IT projects in Saudi Arabia presents a wealth of opportunities, but success requires a solid understanding of the process, compliance with regulations, and a well-prepared proposal. In the next blog, we will explore key strategies to increase your chances of winning an IT project bid in Saudi Arabia, including tips on pricing, negotiation, and common pitfalls to avoid.

Mohamed Ramzy

As the Middle East undergoes rapid technological transformations, Huawei Cloud emerged as a key player in the cloud computing sector, offering over 200 diverse cloud services—from data analysis to artificial intelligence (AI) tools—that cater to various sectors such as e-commerce, financial services, healthcare, and retail.

The Chinese company focuses on expanding its business in Egypt and Saudi Arabia by investing in technological infrastructure and establishing strategic partnerships with various public and private entities.

Sharikat Mubasher held an exclusive interview with Jo Xu, CEO of Huawei Cloud Egypt, to learn more about the company’s expansions in Egypt and Saudi Arabia amidst the significant transformation of the technological landscape in both countries and the fierce competition with global tech giants.

First, how do you see Huawei Cloud’s journey in the Egyptian market so far? 

We believe that the Egyptian market has very promising opportunities; therefore, we decided to invest heavily in it. In May 2024, Huawei Cloud officially launched its operations in Egypt. During this short period, we have established effective partnerships with key players in the market, including fintech startups and various organizations seeking our solutions.

What are the key projects that Huawei Cloud launched in Egypt?

From day one, we have strived to replicate the experience we delivered in Saudi Arabia here in Egypt. Thus, we launched our Huawei Cloud Region to serve as a central hub for our services in the Middle East and North Africa (MENA) region.

What are the most prominent services that Huawei Cloud offers through the Cloud Region? 

The Huawei Cloud Region provides innovative technology solutions to support clients, leveraging generative AI (Gen AI). It develops new business models with reduced costs and increased speed, helping e-commerce companies keep pace with the growing demand.

Additionally, the Cloud Region enables companies to enhance customer experience by leveraging cutting-edge technologies such as virtual reality (VR), and stay abreast of the latest technology advancements to grow.   

Speaking about the Saudi market, how do you see it at the current time?

Saudi Arabia is one of the most promising markets in the region. It has tremendous potential to grow and thrive, backed by the government’s strong support for digital transformation, aligning with Vision 2030 which aims to position the Kingdom as a strategic hub for technology. 

Saudi Arabia was one of the first markets where Huawei Cloud established a presence. Can you tell us more about this? 

Yes, Saudi Arabia was one of the first markets where Huawei Cloud launched its operations and we have a robust presence there. We target expanding our business, enhancing services, and strengthening our partnerships with different public and private entities. 

In 2022, we announced building a specialized cloud computing region in Saudi Arabia to provide advanced, secure cloud services that streamline the business of local companies, organizations, and government authorities in the Kingdom and the wider region. Huawei Cloud officially launched its operations in Saudi Arabia in February 2023, during LEAP 2023.

What about the projects that the company has implemented in Saudi Arabia?

Our investments are centered around data. So far, we have built three data centers in Riyadh, capitalizing on the huge support that the Kingdom provides through its various agencies to global multinational companies.

What are Huawei Cloud's key areas of focus for the Saudi market within the upcoming period?

Huawei Cloud focuses on expanding its business in all countries where it operates. Over the next five years, we target supporting more than 2,000 startups in Saudi Arabia, in alignment with Vision 2030.

The global AI landscape is undergoing significant advancements nowadays. How is Huawei Cloud shaping the future of this sector?

At Huawei Cloud, we provide more than 200 diverse cloud services and a wide range of AI-powered solutions. Additionally, our services include data analysis, data storage, and developing AI platforms that streamline business operations for companies and organizations.

Translation: Noha Gad

Kholoud Hussein 

Saudi Arabia’s giga-projects—Neom, The Line, and Qiddiya—are redefining the Kingdom’s economic landscape, aligning with Vision 2030’s goal of diversifying the economy and reducing reliance on oil. While these projects promise futuristic urban planning, cutting-edge technology, and world-class tourism, they also create unprecedented opportunities for startups and SMEs.

Saudi entrepreneurs are tapping into these mega-developments to provide innovative solutions in smart city infrastructure, entertainment, fintech, logistics, and sustainability. This article explores how these projects are fostering startup growth, the role of Saudi business leaders in seizing these opportunities, and the government’s efforts in empowering entrepreneurs.

1. Neom and The Line: A Smart City Ecosystem for Innovation

Neom is a $500 billion mega-city that is poised to become a global hub for technology, AI, and green energy. One of its most ambitious projects is The Line, a 170-kilometer-long, car-free smart city that integrates AI-driven automation, renewable energy, and futuristic urban mobility.

For startups, Neom represents a testing ground for innovation in AI, IoT, and sustainable infrastructure. Entrepreneurs in sectors such as autonomous transportation, AI-driven governance, and urban sustainability can leverage Neom’s open innovation framework to develop and scale their businesses.

Startup Perspective

Sultan Alasmi, CEO of Zid, an e-commerce enabler, highlights the immense potential of Neom for startups: "Saudi Arabia’s giga-projects, especially Neom, offer a once-in-a-lifetime opportunity for startups to develop solutions that integrate with smart city frameworks. Entrepreneurs who innovate in AI-driven commerce, logistics, and urban tech will be at the forefront of the new economy."

As Neom continues to attract global investment, Saudi startups specializing in green energy, sustainable construction, and AI-driven automation will be key players in its long-term development.

2. Qiddiya: A Billion-Dollar Playground for Tourism and Entertainment Startups

With a projected 17 million annual visitors by 2030, Qiddiya is Saudi Arabia’s answer to Dubai’s entertainment sector. Spanning 334 square kilometers, Qiddiya will feature theme parks, motorsports, esports, live performances, and cultural experiences.

Startups in hospitality, ticketing, VR-based entertainment, and travel tech stand to gain significantly from this multi-billion-dollar project. Saudi Arabia is positioning itself as a regional hub for entertainment, and entrepreneurs who capitalize on immersive experiences, AI-driven tourism services, and fintech solutions for travel will thrive.

Startup Perspective

Ebrahim Al-Jassim, founder of Ninja, a quick commerce startup, sees entertainment logistics and hyper-personalized services as a massive growth area: "Qiddiya is more than an entertainment hub; it’s a new ecosystem for hospitality, logistics, and smart payments. Startups that can enhance visitor experiences with AI, VR, and seamless payment solutions will dominate this space."

With Saudi Arabia investing over $8 billion in the entertainment sector, Qiddiya offers massive potential for travel tech startups, luxury tourism brands, and digital payment innovators.

3. Opportunities in Smart Cities, Tourism, and Infrastructure

Smart Cities & Infrastructure

Neom and The Line are pioneering AI-driven governance, hyper-connectivity, and zero-emission infrastructure. Startups that specialize in energy-efficient buildings, smart grid technologies, and AI-based security solutions can integrate their products into these developments. "Our startup, Retailo Technologies, is already working on logistics solutions that cater to the evolving needs of Saudi Arabia’s giga-projects. Supply chain innovations will be crucial in supporting large-scale developments like Neom and The Line," according to Abdulaziz Hadhrawi, Founder of Retailo Technologies. 

Tourism & Hospitality Tech

Saudi Arabia’s plan to attract 100 million tourists by 2030 means massive investments in luxury tourism, wellness retreats, and eco-tourism startups. Entrepreneurs in AI-driven personalized travel experiences, sustainable hospitality, and VR tourism can tap into this market.

Khaled Abou Kassem, Co-founder of AlGooru, said: "The Saudi tourism sector is experiencing rapid growth. Startups that integrate AI, blockchain-based booking systems, and immersive digital experiences will be ahead of the curve."
 

4. Government Policies Supporting Saudi Entrepreneurs

Investment Incentives

The Ministry of Investment of Saudi Arabia (MISA) provides a 100% foreign ownership license for startups setting up in SEZs (Special Economic Zones). This policy has led to a 65% increase in foreign startup investments in 2024.

Special Economic Zones (SEZs) Provide Tax-Free & Duty-Free Benefits: SEZs like King Abdullah Economic City (KAEC) and Neom's Industrial Zone are startup-friendly hubs that offer tax incentives, regulatory benefits, and easy business incorporation.

Venture Capital & Funding for Startups

Saudi Arabia has witnessed a record $3.8 billion in venture capital funding in 2024, with much of it directed towards startups in logistics, fintech, AI, and green energy. Mohammed Aldossary, Co-founder of Sary, stated: "Saudi Arabia’s startup scene is evolving rapidly, thanks to government-backed funding initiatives like Monsha’at and the Saudi Venture Capital Company (SVC). Access to capital is better than ever for ambitious entrepreneurs."
 

5. Overcoming Challenges: What Startups Need to Consider

While Saudi giga-projects present incredible opportunities, startups must navigate challenges such as:

•  Regulatory Compliance: Large-scale projects require businesses to meet international quality and sustainability standards.
• Talent Acquisition: The demand for AI specialists, sustainable engineers, and fintech experts is outpacing local supply.
• Competition from Global Corporations: Startups must differentiate their solutions to compete against established multinational firms.

Advice from Saudi Startup Leaders

Janardan Dalmia, CEO of Trukkin, said: "Startups must move fast, network aggressively, and seek partnerships with giga-project stakeholders. Neom and Qiddiya won’t wait for entrepreneurs who aren’t ready to scale."
 

In the same vein, Hala Zahran, Lead for Arab Bank Accelerator, commented: "Government-backed accelerators like the Saudi Industrial Development Fund (SIDF) and PIF’s investment arms are creating a world-class startup ecosystem. But to succeed, founders must be willing to adapt quickly to regulatory and business changes."
 

The Future of Saudi Startups in Giga-Projects

Saudi Arabia’s giga-projects are not just urban developments—they are catalysts for economic diversification and technological innovation. As Neom, The Line, and Qiddiya continue to take shape, startups and SMEs will play a pivotal role in shaping the future economy.

For entrepreneurs willing to innovate, collaborate, and scale, the Saudi startup ecosystem is ripe with opportunity. Whether in AI-driven smart cities, fintech for tourism, or green energy infrastructure, the future belongs to those who seize it now.

Ghada Ismail

Startups are often launched with bold ideas and ambitious goals, but even the most innovative ventures can falter if their operations descend into chaos. While founders tend to focus on securing funding, building products, or acquiring customers, it's often poor internal structure that quietly unravels their progress. Disorganized workflows, unclear roles, and neglected processes can accumulate, turning a promising startup into a stalled venture.

Many founders underestimate how quickly disorganization can drain resources and hinder growth. Instead of actively scaling, teams get stuck firefighting; fixing errors, resolving conflicts, and scrambling to meet deadlines. The result? A business weighed down by inefficiencies and costly mistakes.

The Hidden Threat of Operational Chaos

Startups often fall into disarray as teams grow, tasks multiply, and founders struggle to manage competing priorities. Without clear processes in place, confusion thrives. Missed deadlines, duplicated efforts, and communication breakdowns become routine, making it hard to focus on growth.

One example is a Saudi-based e-commerce startup that saw rapid early traction but struggled to keep up with order fulfillment. Inventory errors piled up, customer complaints soared, and the team spent more time fixing mistakes than scaling the business. The startup ultimately pivoted to a more streamlined logistics model, but not before losing key partnerships and valuable time.

Operational chaos doesn’t always start with obvious missteps. It often creeps in quietly when founders assume their initial structure can handle ongoing growth. Over time, small inefficiencies compound, turning what seemed like manageable issues into major roadblocks.

Building Operational Resilience

To avoid this fate, founders can adopt several strategies:

1. Establish Clear Roles and Responsibilities: Define who owns what. When teams understand their duties, accountability improves, and tasks don’t fall through the cracks.
2. Adopt Project Management Tools: Platforms like Asana, Trello, or Clickup can centralize tasks, deadlines, and updates, improving visibility across teams.
3. Document Key Processes: Writing down essential workflows, from onboarding to customer support, ensures consistency and clarity, especially during team expansion.
4. Prioritize Communication: Regular check-ins, clear meeting agendas, and centralized chat tools like Slack or Microsoft Teams help minimize miscommunication.
5. Embrace Automation: Automating repetitive tasks, like invoicing or customer follow-ups, reduces manual errors and frees up time for strategic decisions.
6. Monitor Key Metrics: Tracking operational performance such as order accuracy, customer response times, or project deadlines can reveal early warning signs of disorganization.

A Balanced Approach

Startups thrive when they combine structure with flexibility. Strong operational foundations create the stability needed for creativity and growth to flourish. By putting the right systems in place early on, founders can avoid the pitfalls of chaotic workflows and build a team that works smarter, not harder. The startups that survive and thrive are often the ones that turn operational discipline into a powerful advantage.

Next up in this series: Leadership and Team Issues — The Human Factor in Startup Survival.

Kholoud Hussein 

In the intricate journey of building a successful startup, mentorship networks emerge as indispensable pillars, offering guidance, support, and invaluable insights. This installment of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," delves into the profound significance of mentorship networks in steering startups toward success, bolstered by recent statistics and perspectives from Saudi business leaders.

The Pivotal Role of Mentorship in Startup Success

Mentorship transcends traditional advisory roles, fostering relationships where experienced individuals impart knowledge, skills, and wisdom to burgeoning entrepreneurs. This dynamic is crucial for startups navigating the complexities of business landscapes. According to a study highlighted by Entrepreneur, a staggering 93% of startups acknowledge that mentorship significantly influences their success. 

The advantages of mentorship are multifaceted:

• Enhanced Survival Rates: Data from the UPS Store reveals that 70% of small businesses receiving mentoring endure beyond five years, doubling the survival rate of non-mentored counterparts.
• Accelerated Growth: Mentored businesses often experience swifter growth trajectories, attributed to strategic guidance and informed decision-making.
• Improved Productivity and Profitability: Research from Guider AI indicates that 70% of businesses report increased productivity, and 55% observe profit enhancements due to mentoring. 

Mentorship: A Catalyst in the Saudi Startup Ecosystem

Saudi Arabia's entrepreneurial landscape has undergone a remarkable transformation, with mentorship playing a pivotal role in this evolution. Initiatives such as Techstars Founder Catalyst have introduced mentorship programs to support Saudi entrepreneurs. 

The Kingdom's commitment to mentorship is further exemplified by its Vision 2030 initiative, which emphasizes empowering women and youth as cornerstones for sustainable growth. Crown Prince Mohammed bin Salman stated, "Empowering women and young people are two main cornerstones for achieving sustainable growth," underscoring the nation's dedication to inclusive development. 

Insights from Saudi Business Leaders

Saudi entrepreneurs recognize the transformative power of mentorship. Sharique Javaid, reflecting on his experience with his mentor in Riyadh, remarked on the enduring inspiration and guidance that mentorship provides. 

Such testimonials highlight the profound impact of mentorship on personal and professional development within the Saudi startup ecosystem.

The Reciprocal Nature of Mentorship

Mentorship is a symbiotic relationship benefiting both mentors and mentees. Engaging with startup founders allows mentors to refine their skills, expand professional networks, and gain fresh perspectives. This reciprocal value fosters a culture of continuous learning and innovation. 

To conclude, mentorship networks are instrumental in guiding startups toward success. They enhance survival rates, accelerate growth, and contribute to economic development. In Saudi Arabia, mentorship is a cornerstone of the burgeoning entrepreneurial ecosystem, aligning with national visions for sustainable growth. As startups continue to emerge, fostering robust mentorship networks will be crucial in navigating challenges and seizing opportunities.

In the forthcoming installment of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," we will explore the integration of AI and machine learning partners in tech startups. These technologies are revolutionizing industries, and understanding their application is vital for startups aiming to innovate and lead in their respective fields.

Stay tuned as we delve into how AI and machine learning collaborations can propel tech startups to new heights, driving efficiency, innovation, and competitive advantage.

Noha Gad

A valuation is a fundamental metric that reflects the company’s current and future potential. It serves as a crucial tool for financial planning, strategic decision-making, and interactions with investors, employees, and other stakeholders.

Valuing a company goes beyond simple revenue figures and considers a range of financial, operational, and market-driven factors that determine how much a business is worth. Whether you are an entrepreneur, investor, or corporate executive, understanding these factors is crucial for making informed financial and strategic decisions.

For a company owner, valuation is a reflection of years of dedication, innovation, and strategic decisions. It is the tangible measure of their vision realized, a benchmark for future growth, and often, the key to unlocking the next phase of their entrepreneurial journey. Whether preparing for a funding round, considering a merger, or simply understanding the business' intrinsic worth, a clear grasp of valuation drivers is paramount.

For an investor, valuation is the cornerstone of due diligence and return on investment analysis. It is the lens through which they assess a company's potential, weigh its risks, and determine the viability of their capital commitment. Investors meticulously examine various metrics, from revenue projections to market share, to ascertain if a company's asking price aligns with its actual and future performance.

In this blog, we will break down the key factors shaping the company’s valuation, explaining how they impact business worth and why both company owners and investors need to pay close attention to them. 

Company valuation from an owner’s perspective

As a business owner, you need to understand your company's worth for reasons such as raising capital, selling the business, bringing in investors, or strategic planning. Owners often focus on methods that highlight the company’s financial health, growth potential, and intrinsic value.

Key Valuation Methods

• Earnings-based valuation. This encompasses the discounted cash flow (DCF) analysis, which determines value based on projected future cash flows, and the capitalization of earnings through which owners divide current earnings by a capitalization rate (rate of return expected by investors).
• Market-based valuation. It includes the comparable company analysis (CCA) which compares the business to similar companies in the industry based on valuation multiples.
• Asset-based valuation. This valuation is based on the net asset value (NAV) and liquidation value. NAV is suitable for asset-heavy businesses such as real estate or manufacturing, helping owners calculate total assets minus liabilities. Meanwhile, liquidation value determines the company’s worth if all assets are sold. It is often used for worst-case scenarios like bankruptcy.

To maximize valuation, owners should strategically emphasize their company's growth potential and distinct competitive advantages, while simultaneously maintaining strong financial records and reducing liabilities. Furthermore, if seeking investor capital, it is imperative to demonstrate clear scalability and a proven path to profitability, as these factors are paramount in attracting and securing favorable investment terms.

Company valuation from an investor’s perspective

Investors look at valuation differently as they focus on return on investment (ROI), risk, and growth potential. Their goal is to assess whether a company is undervalued, fairly valued, or overpriced before investing.

Key Valuation Methods

• Price-to-earning (P/E) ratio which compares the company’s stock price to its earnings per share (EPS). Investors use it to determine if a stock is overvalued or undervalued compared to competitors.
• Enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA). This method measures overall business value, including debt, and is usually used to compare businesses across industries.
• Discounted cash flow (DCF) analysis. Investors use DCF to evaluate the future cash flow potential before making investment decisions.
• Dividend discount model (DDM). It values a company based on expected future dividends and discount rates.
•  Risk-based evaluation. Investors assess factors like industry trends, management efficiency, and market risks. They also evaluate a company’s competitive advantage, such as strong branding, customer loyalty, or cost leadership.

Finally, understanding the company’s valuation is essential for both business owners and investors. It helps owners attract funding, negotiate better deals, and plan for growth, while investors use it to assess risks and identify profitable opportunities. A well-informed valuation ensures smarter financial decisions and long-term success in a competitive market.

Ghada Ismail

Getting your pricing right is one of the toughest calls a founder has to make and it can make or break your business. Set the price too high, and you risk pushing customers away. Go too low, and you may struggle to cover costs or risk being seen as cheap. Finding that sweet spot is crucial, yet many startups stumble here.

The Danger of Overpricing

Overpricing can easily turn potential customers away. If people feel your product isn’t worth the price, they’ll look elsewhere. This is especially risky for startups trying to build a customer base. Higher prices can also raise expectations, and if your product or service doesn’t exceed those expectations, it can hurt your brand.

One common mistake is pricing based solely on costs without considering the customer's perception of value. Customers don’t just evaluate the price; they weigh it against what they believe they’re getting in return. Overpricing without adding value can leave your business looking out of touch. 

The Pitfalls of Underpricing

On the other side, pricing too low can backfire. While it might seem like a great way to win customers early on, underpricing can leave you with little margins or even losses. Worse still, customers might assume your product isn’t up to par. And once you've set those low prices, bumping them up later without upsetting loyal customers can be tricky.

Underpricing can also create a perception problem. Customers may wonder, "Why is this so cheap?" and assume it lacks quality or staying power. For instance, a bakery pricing its cakes below market rates may attract bargain hunters but struggle to establish itself as a premium dessert destination.

Finding the Sweet Spot

The key to good pricing is understanding your costs, knowing your market, and figuring out what customers are willing to pay. Many successful startups use a value-based pricing model, which ties your price to the perceived benefits your product offers. This strategy can help position your offering as worth the investment without scaring off price-conscious buyers.

Market research is crucial here. Founders should analyze competitors, survey potential customers, and study buying behaviors to gauge what their audience is willing to pay. Testing different price points or offering tiered options can also provide insights into what drives sales without scaring off leads. This means creating multiple pricing plans or packages that cater to different customer needs and budgets. For example, a SaaS startup might offer:

Basic Plan: A lower-cost option with essential features for entry-level users.

Standard Plan: A mid-tier package with additional features for growing businesses.

Premium Plan: A higher-priced option with advanced features, dedicated support, or exclusive perks.

This strategy allows customers to choose what best fits their needs, while giving your business opportunities to upsell as users grow or require more value. Tiered pricing is common in tech, subscription services, and even physical products with 'starter,' 'pro,' or 'deluxe' options.

Testing and Adapting

Pricing isn’t something you set and forget. Early-stage businesses should experiment with different pricing models, keep an eye on customer reactions, and adjust accordingly. Special offers, discounts, or premium tiers can help you figure out what resonates best with your audience.

Many successful startups approach pricing as an ongoing process. They gather customer feedback, analyze trends, and adjust their prices when necessary. Some introduce loyalty programs or bundle offers to increase perceived value without directly raising prices. By staying flexible and responsive, startups can adjust their pricing over time.

Wrapping things up…

Pricing mistakes are common, but they’re fixable. By staying tuned into customer feedback and making thoughtful adjustments, you can find a price point that reflects your product’s value and keeps your business sustainable. But even with great pricing, poor execution can derail everything. In the next episode, we'll dive into how operational chaos can drag startups down and what founders can do to keep things running smoothly.