Noha Gad

In an era where consumers demand faster deliveries, greater convenience, and seamless shopping experiences, a logistical transformation is occurring behind the scenes: the silent rise of dark stores. These unmarked, tech-driven fulfillment centers are quietly revolutionizing retail infrastructure, emerging as the critical link between digital storefronts and instant delivery expectations in our era of hyper-speed e-commerce and q-commerce.

Recent research showed that the global dark store market is expected to hit $32.91 billion in 2025, with a CAGR of 41%. Meanwhile, the dark store market in the Middle East and North Africa (MENA) is projected to reach $12.1 billion by 2030, growing at a CAGR of 36.1%.

What exactly are dark stores?

Unlike traditional retail stores designed for customer foot traffic, dark stores are optimized exclusively for online order fulfillment. They function as micro-warehouses, strategically located in urban centers to enable hyperlocal deliveries, sometimes in as little as 10 to 30 minutes.

These highly automated spaces eliminate all traditional retail elements: no storefronts, shoppers, or checkout lines. Instead, they feature AI-driven inventory systems, robotic pickers, and smart sorting technology operating around the clock. 

By focusing exclusively on high-demand products and leveraging predictive analytics, dark stores simultaneously achieve remarkable speed, reduced waste, and optimal space utilization, making them the perfect fulfillment solution for today's instant gratification economy.

Why dark stores are gaining traction in Saudi Arabia

Dark stores are gaining traction in the Kingdom thanks to several key factors aligned with the country’s economic, technological, and consumer trends:

• Rapid growth of e-commerce. Consumers increasingly prefer quick, convenient online shopping, especially for groceries and everyday essentials. 
• Demand for super-fast delivery. Dark stores enable 10-to-30-minute deliveries, meeting rising expectations for speed. Applications like Nana, Ninja, and Haseel leverage dark stores to offer instant grocery delivery.
• Urbanization and high population density. Cities like Riyadh, Jeddah, and Dammam have dense populations, making dark stores cost-effective for covering large demand areas.
• Investment in technology and startups. Saudi venture capital firms, such as STV and Jahez, fund quick-commerce startups adopting the dark store model.

How dark stores benefit the supply chain in Saudi Arabia 

Dark stores are transforming supply chain efficiency in Saudi Arabia by optimizing logistics, reducing costs, and improving delivery performance. They provide:

• Faster and more efficient order fulfillment.
• Lower operational costs.
• Enhanced inventory management.
• Scalability for Q-commerce.
• Reduced delivery costs and carbon footprint
• Better supplier and retailer collaboration.

Dark stores vs. traditional warehouses vs. micro-fulfillment centers

Unlike large warehouses, which are typically located on the outskirts of cities and designed for bulk storage, dark stores are compact, urban-based facilities optimized for speed. They act as hidden retail hubs—stocking high-demand groceries and essentials—and enable platforms like Nana and Jahez to deliver orders in under 30 minutes.

Their proximity to consumers and tech-driven picking systems makes them ideal for Saudis' on-demand culture, though their smaller size limits inventory capacity compared to sprawling traditional warehouses.

Meanwhile, traditional warehouses are the backbone of bulk logistics, serving big retailers and manufacturers. While they lack the agility of dark stores, they support large-scale e-commerce operations with lower per-unit storage costs. However, their distance from urban centers slows last-mile delivery.

The automated, high-density micro-fulfillment centers (MFCs), often embedded in existing supermarkets or standalone sites, use robotics and AI to fulfill online orders quickly. 

Dark stores are poised to play an even bigger role in Saudi Arabia’s retail and logistics landscape, driven by several key trends, notably hyperlocal and on-demand dominance, automation and robotics integration, sustainability and cost optimization, and regulatory and investment support.

Finally, dark stores are more than a passing trend in Saudi Arabia, they’re a strategic evolution in retail and supply chain efficiency. By combining speed, cost savings, and scalability, they address the Kingdom’s unique challenges: urbanization, high digital adoption, and demand for instant gratification.

Ghada Ismail

In recent years, Saudi Arabia has thrown open its doors to foreign entrepreneurs, promising 100% ownership, faster business licensing, and easier visa pathways. Backed by Vision 2030, these reforms aim to position the Kingdom as a startup magnet, especially as regional rivals compete for global talent and capital. While homegrown entrepreneurship is thriving, a growing number of foreign entrepreneurs are also seeing Saudi Arabia as a promising destination to launch startups. As traditional barriers fade and incentives increase, expats are stepping forward not just as contributors to the Saudi economy but as builders of entirely new ventures. But what exactly makes Saudi Arabia appealing to expatriate entrepreneurs, and what roadblocks still stand in their way?

Is It Easy for Expats to Start a Business in Saudi Arabia?

Starting a business as an expat in Saudi Arabia is more possible than ever, but it isn’t without challenges. On the upside, the government has rolled out a suite of reforms and incentives aimed at making the Kingdom an attractive launchpad for startups of all kinds. Startups led by foreign nationals can now apply for investment licenses without needing a Saudi partner, thanks to changes rolled out by the Ministry of Investment (MISA). The business visa process has also been simplified, with multi-entry options for founders and employees.

Entrepreneurial residency programs, such as the Special Talent and Premium Residency visas, offer an alternative to traditional work sponsorships. These permits provide greater mobility, the right to own property, and fewer employment restrictions—key incentives for global entrepreneurs considering Saudi Arabia as a base.

Opening the Door for Expat Founders: Premium Residency Options

Saudi Arabia’s evolving residency landscape is playing a crucial role in attracting global entrepreneurial talent. One standout initiative is the Premium Residency Program, which offers foreign professionals, investors, and startup founders the opportunity to live and work in the Kingdom with greater flexibility and fewer restrictions.

According to Monsha’at, the Premium Residency holders enjoy several key benefits, including the ability to own real estate, conduct business, invite family members, and move freely in and out of the country without a visa. Notably, they are exempt from expat fees and can transfer between employers without penalties—a significant shift from the older sponsorship-based system.

There are multiple tailored tracks under the program that cater to the needs of foreign entrepreneurs and investors:

Entrepreneur Residency is specifically designed for startup founders aiming to build and scale in Saudi Arabia. It allows entrepreneurs to nominate two team members for residency under the Special Talent category and exempts them from the Saudization quota (Nitaqat) for the first three years. Those who create 10 jobs in the first year and another 10 in the second can directly qualify for conditional permanent residency.

Investor Residency targets those looking to tap into the Kingdom’s booming economy and offers a streamlined path to long-term residency.

Other tracks like Special Talent, Gifted, and Real Estate Owner Residency further expand the program’s appeal, catering to scientists, artists, athletes, and property owners.

With both limited and unlimited duration options, the Premium Residency program is helping redefine what it means to be a foreign entrepreneur in Saudi Arabia, offering not just access but long-term stability and inclusion in the Kingdom’s ambitious development journey. 

On the policy side, recent changes have made it easier for non-Saudis to own 100% of their companies without the need for a local sponsor. Licensing procedures have been streamlined through platforms like “Meras” and “Monsha’at,” while the Ministry of Investment offers dedicated support for foreign investors looking to navigate regulations.

In the same context, foreign entrepreneurs can choose from several business structures based on their goals and industry, including:

Limited Liability Company (LLC)

Subsidiary of a Foreign Company

Joint Stock Company (JSC)

Regional Headquarters (RHQ)

Technical and Scientific Services Office (TSSO)

According to the Setup in Saudi website - a comprehensive digital platform designed to assist foreign entrepreneurs and businesses in establishing and growing their ventures within Saudi Arabia - each structure offers distinct benefits depending on the founder’s vision and operational needs, and consulting with a qualified business advisor or local incubator is highly recommended to navigate the legal and regulatory landscape smoothly.

Further, the Saudi Arabian General Investment Authority (SAGIA), now part of the Ministry of Investment (MISA), has made it possible for foreigners to obtain investment licenses within days, streamlining what used to be a more complicated process.

The Drawbacks:
However, barriers remain. Bureaucracy, though improving, can still be complex and time-consuming. Some expats face difficulties understanding regulatory updates, especially if they’re unfamiliar with Arabic or the local legal system. Moreover, competition in certain sectors—like food tech or logistics—has intensified, particularly from well-funded Saudi firms.

Cultural nuances also pose hurdles. Building trust with local partners or clients often requires deeper integration into Saudi business etiquette, which can be unfamiliar to newcomers. For many expats, establishing credibility and a reliable local network takes time—and often, patience.

Vision 2030 Impact:
Vision 2030, the Kingdom’s landmark transformation plan, explicitly encourages foreign participation in building a diversified, knowledge-based economy. The plan supports SMEs and startups through funding bodies like the Saudi Venture Capital Company (SVC), the Social Development Bank, and the Public Investment Fund (PIF).

Moreover, the Monsha’at SME Authority provides training, mentoring, and subsidized tools to early-stage founders—services which are increasingly accessible to expat entrepreneurs. Free zones and innovation hubs such as King Abdullah Economic City (KAEC), Neom’s Oxagon, and the Riyadh Techno Valley also offer regulatory and operational advantages to foreign-led ventures.

Real-Life Stories: Finding the Right Fit in Saudi Arabia

One compelling example of foreign expansion into Saudi Arabia comes from Waagner Biro Steel and Glass, an Austrian firm with over 165 years of engineering expertise, whose success story was narrated by the Setup in Saudi website. 

Known for high-profile projects across the Middle East, including the Floating Bridge and Al Noor Island Development in the UAE, the company recognized Saudi Arabia as the next logical step, both strategically and economically.

“We saw a market that’s simply too big to ignore,” said Jason Wilson, General Manager of Waagner Biro Steel and Glass. “The upcoming global events—like the 2029 Asian Winter Games and Expo 2030—are more than milestones. They are catalysts driving accelerated urban development.”

Motivated by the ambitions of Vision 2030 and the scale of infrastructure transformation underway, the firm partnered with expansion platform AstroLabs to navigate entry into the Saudi market. With local guidance, they were able to efficiently meet entry requirements, build the right relationships, and set up operations aligned with their long-term vision.

Wilson emphasizes that local engagement is key. “It takes face-to-face interaction. Don’t spend too much time developing remote strategies. Get on the ground. Meet suppliers. Assess capacities. The earlier you’re in, the sooner you adapt.”

Waagner Biro’s story underscores how established foreign companies, when supported by local networks and aligned with national priorities, can thrive in Saudi Arabia’s evolving economic landscape.

Challenges to Watch Out For

Despite the promising developments, launching a startup in Saudi Arabia as an expat is not without its friction points.

Legal and Licensing Complexities:
Even with streamlined procedures, licensing can still be nuanced depending on the sector. Certain activities require approvals from multiple agencies, and rules around foreign ownership can vary for industries deemed strategic or sensitive. Navigating these nuances often requires legal counsel or local advisors, adding to the cost and complexity.

Access to Capital:
While the venture capital scene is growing rapidly, access to funding for expat-led startups is still somewhat limited compared to those with Saudi founders or partnerships. Many local VCs prefer to back teams with a strong Saudi presence or deep local understanding. Establishing investor confidence as an outsider can be difficult unless paired with a compelling Saudi-market value proposition or a local co-founder.

Hiring and Retention:
Saudi Arabia’s labor laws and Saudization requirements—while not always applicable to early-stage ventures—can still affect long-term hiring plans. Many expat founders report challenges in finding the right mix of local and international talent, especially in niche tech or design roles.

Cultural and Consumer Fit:
Creating a product that resonates with Saudi consumers often requires an insider’s perspective. Foreign founders must take time to understand social norms, spending habits, and consumer expectations. What works in Western or Asian markets may not translate directly in the Kingdom.

Navigating the Ecosystem:
While support programs are abundant, knowing which doors to knock on isn’t always easy. Some expats report difficulty navigating the overlapping mandates of multiple government agencies or gaining visibility within local investor networks.

Conclusion & Future Outlook

Saudi Arabia is emerging as a serious contender on the global startup map, not just for Saudis, but increasingly for the world’s entrepreneurs. Its fast-growing market, government-backed funding, and ambitious economic diversification goals make it a fertile ground for innovation.

For expat founders, the opportunity is clear: access to a young and growing population, government support, and a hunger for new ideas. But success requires more than just a visa and a business plan. It takes cultural adaptability, regulatory know-how, and the ability to forge strong local partnerships.

As the Kingdom continues to open its doors to global talent, the next wave of startups will likely be built by teams that blend international experience with local insight. And for those willing to learn, adapt, and build with intention, Saudi Arabia may well be one of the most promising frontiers for entrepreneurship today.

Advice for Aspiring Expats:

• Do your homework. Understand the legal and market landscape before making the leap.
• Build local connections early. Having a Saudi partner, mentor, or advisor can be invaluable.
• Be patient but proactive. Things move quickly, but building trust takes time.
• Leverage the ecosystem. From incubators to grants, take full advantage of what’s available.

With the right mix of preparation and adaptability, expat founders can thrive and help shape the future of Saudi innovation.

Noha Gad

The loyalty program market in Saudi Arabia is poised for steady growth in the coming years, fueled by innovative product launches and businesses increasingly leveraging loyalty strategies to boost sales and revenue.

According to a recent report published on Research and Markets, one of the world’s largest research market stores, the Saudi loyalty market is projected to grow by 15.4% annually, reaching $842.5 million in 2025, with a CAGR of 13% from 2025–2029, propelling the market to $1.37 billion by 2029.

This growth reflects a transformative shift in the Kingdom’s loyalty landscape, driven by technological advancements, evolving consumer demands, and Vision 2030-aligned policies that incentivize digital innovation.

At the forefront of this evolution is Resal, a pioneer in redefining loyalty and rewards solutions. By offering cutting-edge digital platforms, Resal bridges merchants, businesses, and consumers through an expansive, seamless network.

To explore Resal’s role in shaping the future of the loyalty and rewards landscape in Saudi Arabia, Sharikat Mubasher held an interview with CEO Hatem Kameli to discuss industry trends, growth drivers, and the company’s vision for revolutionizing the sector.

How does Resal contribute to the growth of digital payments in Saudi Arabia, and what makes your services unique?

Resal plays a pivotal role in advancing digital payments in Saudi Arabia by offering innovative solutions in digital cards, rewards, and loyalty programs. Our platform empowers individuals, businesses, and merchants to maximize the benefits of digital value through seamless and exceptional experiences. 

What sets Resal apart is our commitment to providing effortless rewards, seamless payouts, and smarter loyalty solutions. By integrating cutting-edge technology, we ensure that our services are not only efficient but also tailored to meet the evolving needs of our users. 

What are the biggest challenges facing loyalty programs in the Kingdom, and how do you address them?

The current loyalty and rewards landscape is fragmented, causing inefficiencies for consumers, businesses, and merchants. Consumers struggle to manage and redeem scattered loyalty points; businesses lack efficient tools for rewards and payouts; and merchants face challenges in digitizing and monetizing programs.

Resal addresses these issues by offering a unified digital platform that:

● Empowers consumers to aggregate and use loyalty points across a broad network.

● Enables businesses to manage and distribute rewards and incentives seamlessly.

● Helps merchants issue and manage digital prepaid cards and loyalty programs, enhancing customer engagement.

With 1.5 million users, how does Resal plan to scale its alternative digital payment solutions?

Resal has successfully secured $9 million in Series A funding to expand our digital rewards in Saudi Arabia. This investment will be utilized to enhance our technological infrastructure, develop new products, and expand our services to a broader audience.

Our growth strategy includes targeting new sectors, launching various technological products for alternative payment solutions, and strengthening our partnerships to reach more users and businesses across the Kingdom.

How does Resal plan to maintain its lead in digital rewards and loyalty programs, both regionally and globally?

To maintain our leadership position, Resal focuses on continuous innovation and strategic partnerships. We are committed to developing scalable products and services that cater to the evolving needs of our users with different use cases.

Our vision includes expanding our presence in the Middle East and North Africa region, offering alternative payment solutions, and enhancing our loyalty programs to provide more value to our users.

How will Resal’s partnership with Grintafy revolutionize Saudi Arabia’s sports sector?

Resal's strategic partnership with Grintafy aims to empower players and the sports community by offering digital rewards and creating an interactive user experience that encourages continuous skill development. 

By integrating our digital rewards solutions with Grintafy's platform, we provide athletes with incentives that motivate them to improve their performance and engage more deeply with the sports community. This collaboration is set to transform the way athletes and sports enthusiasts interact with digital platforms in Saudi Arabia.

Beyond sports, what other sectors does Resal target for expansion?

Beyond sports, Resal is strategically expanding its presence across several high-growth sectors, notably entertainment and lifestyle. These industries are integral to everyday consumer engagement, and our solutions aim to elevate how users interact with brands through seamless digital rewards and gifting experiences.

Our goal is to become a leading platform in innovative payment and spend management across diverse lifestyle sectors, enriching how people connect with brands and services through intelligent, easy-to-use digital tools.

What trends do you see shaping the future of loyalty programs in Saudi Arabia?

The future of loyalty programs in Saudi Arabia is being shaped by several key trends:

● AI-Powered Personalization through Data Analytics: Leveraging artificial intelligence to deliver personalized rewards and experiences is becoming increasingly important in meeting consumer expectations.

● Rise of Coalition Loyalty Programs: There is an increasing trend towards coalition loyalty programs, where multiple brands collaborate to offer shared rewards. This approach provides customers with more versatile and valuable benefits, enhancing the overall appeal of loyalty programs.

● Experiential Rewards: Saudi consumers are increasingly valuing unique experiences over mere discounts. Loyalty programs are evolving to offer curated lifestyle experiences such as exclusive dining events, travel packages, and entertainment options, fostering deeper emotional connections with brands.

Resal is at the forefront of these trends, continuously innovating to provide loyalty solutions that align with the evolving preferences and values of consumers in Saudi Arabia.

Kholoud Hussein 

In the evolving dynamics of global entrepreneurship, the flow of capital, talent, and innovation is increasingly bridging emerging economies across continents. One of the most significant developments in this regard is Saudi Arabia’s strategic repositioning as the primary MENA gateway for African tech startups—a trend driven not by rhetoric, but by capital allocations, institutional reform, and regional opportunity alignment.

This transformation reflects the Kingdom’s broader shift under Vision 2030, which is steering the economy away from hydrocarbon dependency and toward a diversified, knowledge-driven model. In this model, the cross-pollination between African tech ecosystems and Saudi institutional frameworks presents unique, untapped upside.

Capital Flows: Saudi Arabia as the MENA VC Anchor

According to the 2024 annual report by MAGNiTT, Saudi Arabia captured over 40% of total MENA venture capital deployment, with approximately $750 million invested across 178 deals. This capital momentum is not only domestic—it is regionally magnetic. African tech startups are increasingly looking to Riyadh not just for financing, but for access to structured scale-up ecosystems.

In particular, startups from Nigeria, Kenya, Egypt, and South Africa—Africa’s “big four” in venture activity—are actively building bridges with Saudi VCs, accelerators, and sovereign funds.

Nabeel Koshak, CEO of the Saudi Venture Capital Company, noted: “Saudi Arabia’s emergence as a regional VC leader is not accidental. It is the result of well-orchestrated Vision 2030 policies that positioned the Kingdom as a scale-up launchpad for emerging market innovators.”

The increasing presence of Saudi investors in African seed and Series A rounds further confirms this trend. According to Partech Partners, African startups raised $2.9 billion in 2023, and Saudi entities participated in at least 18% of MENA-to-Africa cross-border deals—an uptick from just 6% two years earlier.

Infrastructure and Institutional Capacity: Building a Launchpad for Scale

Saudi Arabia is not merely offering capital—it is building the structural backbone for scale. The creation of tech-centric free zones, R&D parks, and advanced data centers under the purview of SDAIA (Saudi Data and AI Authority) underscores the government’s commitment to digital infrastructure as a comparative advantage.

Events like LEAP, the Kingdom’s flagship global tech conference, have become essential touchpoints for African startups seeking visibility, capital, and market access. In 2023, more than 16 Nigerian and Ghanaian startups exhibited at LEAP, while delegations from Egyptian incubators signed MOUs with Saudi accelerators such as Misk and Flat6Labs Riyadh.

These engagements are not symbolic. They are backed by a growing web of incentives: expedited business registration for foreign tech firms, streamlined visa processes for startup founders, and co-investment opportunities through sovereign programs like Jada and PIF’s Sanabil Investments.

Geographic and Strategic Alignment: Logistics Meets Market Proximity

Saudi Arabia’s emergence as a regional launchpad for African tech startups is not solely a function of capital or policy—it is deeply rooted in its geographic positioning and the strategic vision that leverages it.

Situated at the intersection of Africa, Asia, and Europe, the Kingdom occupies a location of immense logistical value. Major cities like Riyadh, Jeddah, and Dammam offer direct air and sea connectivity to over 40 countries within a 4–6 hour range, encompassing key markets such as Egypt, Kenya, the UAE, India, and Turkey. African tech founders are increasingly viewing this geographic centrality as a force multiplier, especially those operating in mobility, trade-tech, agri-supply chains, and cross-border fintech.

In practical terms, this translates into tangible operational and commercial advantages. For example, a Nigerian health logistics startup seeking to scale its diagnostic supply chain into the GCC can use Jeddah Islamic Port or King Abdullah Port as logistical hubs, reducing customs latency and last-mile costs in other Gulf states. Similarly, Kenya-based agritech companies looking to access northern Africa and the Levant can now tap into Saudi Free Economic Zones, which offer bonded warehousing and tariff incentives.

Saudi Arabia has capitalized on this advantage by investing heavily in logistics infrastructure. The National Transport and Logistics Strategy (NTLS), launched in 2021 and now in mid-implementation, aims to position the Kingdom among the top 10 global logistics hubs by 2030. To date, more than SAR 40 billion ($10.6 billion) has been allocated to the development of smart ports, rail connectivity, and logistics cities, such as the Logistics Zone at King Salman Energy Park (SPARK).

This is not just policy ambition—it’s being translated into practice. According to the General Authority for Ports (Mawani), container throughput in Saudi ports increased by 13% in 2024, largely due to demand from emerging regional trade routes that now include Sub-Saharan exporters.

“African startups, especially in trade, food security, and industrial tech, increasingly see Saudi Arabia as a bridge, not a wall, between fragmented markets,” said Mazen Al-Dawood, a logistics investor and board advisor to a regional agri-export group.

Al-Dawood added: “Our ports and supply corridors are not just serving domestic needs—they’re enabling intercontinental commerce.”

Further bolstering this position is the Kingdom’s growing investment in digital logistics platforms, many of which are open to African integrations. Local startups such as BARQ and Odiggo, operating in smart delivery and mobility logistics, have already begun forming commercial alliances with African peers, opening pathways for API-based services, AI-optimized routes, and payment settlement interoperability.

This strategic convergence of geography, infrastructure, and digital integration makes Saudi Arabia not just a node on the map, but an active facilitator of South-South trade flows and innovation pipelines. In this context, the Kingdom is evolving beyond a mere market destination to become a supply chain orchestrator for African ventures scaling into the Middle East and South Asia.

For founders and investors alike, the implications are clear: location is no longer passive—it is an economic enabler. And Saudi Arabia is now using its geography as a deliberate, monetizable asset to attract the next wave of globally scalable startups from Africa.

IV. Policy-Led Enablement: From Vision to Execution

Saudi Arabia’s transformation into a regional startup and innovation hub is underpinned not only by capital inflows and infrastructure, but more fundamentally by a deliberate, policy-driven framework designed to attract and retain high-growth ventures. The country’s ability to operationalize Vision 2030 through institutional reform and policy synchronization is what differentiates it from other regional players.

At the core of this policy architecture is the Ministry of Investment (MISA), which has reengineered foreign investment protocols to make market entry for non-Saudi tech companies significantly more seamless. Through fast-track licensing, streamlined regulatory pathways, and sector-specific incentives, the Ministry has become a single-window interface for global and regional startups—including those from Africa—looking to establish a footprint in the Kingdom.

Complementing this is the General Authority for Small and Medium Enterprises (Monsha’at), which plays a catalytic role in enabling international startups to access local capital, talent, and partnerships. Monsha’at has launched initiatives such as the Soft Landing Program, which provides African startups with subsidized access to office space, legal services, and mentorship during their entry phase.

Further, the implementation of the National Strategy for Data and Artificial Intelligence (NSDAI)—a multi-year framework developed by the Saudi Data and AI Authority (SDAIA)—has created one of the most forward-looking data governance ecosystems in the region. This is a key draw for African startups operating in healthtech, fintech, agritech, and AI-driven logistics, where data protection, interoperability, and compliance are critical.

As Esam Alwagait, Director of SDAIA, stated during the Future Investment Initiative, “We are building a data-first economy. Regulatory clarity and security are not negotiables—they are national imperatives. This is what responsible tech innovators are looking for.”

In parallel, the Saudi Central Bank (SAMA) has modernized its fintech licensing and sandbox frameworks, providing international startups—especially those in payments, neobanking, and insuretech—with a pathway to operate, test, and scale within a regulated environment. This is particularly beneficial for African fintechs aiming to export their solutions to the Gulf, where regulatory harmonization remains a key barrier.

These reforms are not purely administrative—they represent a philosophical shift in how Saudi Arabia views its private sector. By fostering a startup-first regulatory mindset, the Kingdom is moving from a gatekeeper model to an enabler model. The success of this shift is reflected in a marked increase in foreign-founded startups receiving funding from local VCs and accelerators.

According to a 2025 report from the Saudi Investment Promotion Center, 28% of startups that received early-stage funding in the Kingdom last year had at least one non-Saudi founder—a record figure and a signal of growing ecosystem openness.

The Road Ahead: Strategic Interdependence or Opportunistic Trend?

The question remains: will Saudi Arabia’s growing role as a MENA base for African startups develop into long-term economic interdependence, or is it a temporary capital arbitrage opportunity?

The answer likely lies in execution. If Saudi Arabia continues to blend financial liquidity, regulatory foresight, and infrastructural depth with regional engagement, the Kingdom could evolve into what Singapore is to Southeast Asia: a trusted, scale-efficient launchpad for cross-border innovation.

A Strategic Convergence, Not a Coincidence

Saudi Arabia is not accidentally becoming the gateway for African tech startups in MENA—it is designing itself to be. With a clear alignment of national vision, institutional capital, geographic leverage, and regional partnership strategies, the Kingdom is poised to become a launchpad for African innovation into larger markets.

In doing so, it is not just rewriting the rules of regional venture expansion—it is actively redrawing the map.

Ghada Ismail

In the fast-evolving world of fintech and Web3, new technologies are reshaping how we build, invest, and exchange value. Among the most talked-about innovations is tokenization, a powerful tool that’s opening up new revenue models, improving asset liquidity, and redefining ownership as we know it.

For startups exploring new ways to scale or tap into previously illiquid markets, tokenization offers more than just technical appeal, it represents a shift toward more inclusive, programmable finance. But what does it actually mean, and how does it work? Let’s break it down.

Tokenization is the process of digitally representing ownership rights to real-world or digital assets using blockchain technology. At its core, it involves creating cryptographic tokens that correspond to a specific asset, such as real estate, securities, commodities, or intellectual property, allowing these tokens to be securely transferred and traded on a decentralized network.

Unlike traditional records of ownership maintained by centralized institutions, tokenized assets are managed through smart contracts and distributed ledgers, ensuring transparency, immutability, and programmability. Tokenization enables assets to be fractionalized, making them more liquid and accessible to a broader range of participants.

How It Works

The tokenization process typically involves three main components:

1. The underlying asset – a tangible or intangible item with economic value.
2. A blockchain protocol – a decentralized network that records and verifies transactions.
3. The token – a digital unit that represents ownership rights or claims to the underlying asset.

For instance, a commercial property valued at $10 million can be tokenized into 100,000 tokens, with each token representing a 0.001% ownership stake. These tokens can then be issued, held in digital wallets, and traded on compliant secondary markets.

Smart contracts govern the rules of issuance, transferability, dividend distribution (if applicable), and compliance checks, removing the need for traditional intermediaries and manual processes.

Types of Tokens

Tokenized assets are commonly issued in one of two forms:

• Security Tokens – representing regulated financial instruments such as equity, debt, or funds. These are subject to securities laws and compliance protocols.
• Utility Tokens – granting access to a specific platform, service, or product, though not representing ownership in a legal sense.

The key distinction lies in their legal treatment and functional use. Tokenization platforms must ensure proper classification and adherence to jurisdictional regulations.

Benefits of Tokenization

Tokenization offers several significant advantages across industries:

• Improved liquidity: Fractional ownership enables smaller investments and increases the marketability of traditionally illiquid assets.
• Enhanced transparency: Blockchain provides an immutable audit trail for all transactions.
• Operational efficiency: Smart contracts reduce reliance on intermediaries and streamline settlement processes.
• 24/7 market access: Unlike traditional exchanges, tokenized assets can be traded around the clock.

These benefits are especially impactful in sectors like real estate, private equity, art investment, and structured finance, where asset transfers are often slow, opaque, and costly.

The Road Ahead

Tokenization is poised to play a foundational role in the future of finance. As legal frameworks, interoperability standards, and institutional adoption continue to evolve, tokenized markets are expected to unlock new forms of capital formation, cross-border trade, and financial inclusion.

In essence, tokenization is not just a technological advancement; it’s rather a re-architecture of ownership, with the potential to make global markets more efficient, accessible, and secure.