The Billion-Riyal Climate Risk: Can Saudi Startups Help Save the Economy?

Jul 8, 2025

Kholoud Hussein 

 

As climate change accelerates, its economic ramifications are becoming impossible to ignore—even for oil-rich economies like Saudi Arabia. Rising temperatures, declining water reserves, desertification, and coastal vulnerabilities are no longer abstract forecasts but present-day threats that affect food security, industrial productivity, public health, and long-term fiscal stability.

 

According to estimates by the World Bank and the Arab Forum for Environment and Development, climate-related damages could reduce MENA’s GDP by up to 14% by 2050 if left unaddressed. For Saudi Arabia, which is heavily reliant on energy exports and vulnerable to extreme heat, the stakes are particularly high. The economic cost of inaction could be measured not only in terms of direct environmental damage but also in lost investment, hindered diversification, and rising mitigation costs in the future.

 

In response, Saudi Arabia has positioned itself at the center of the region’s green transition. From the ambitious Saudi Green Initiative to national investments in renewables, hydrogen, and sustainable infrastructure, the Kingdom has launched a series of strategic programs aimed at decarbonizing key sectors while preparing for a post-oil global economy. However, achieving these goals requires more than state-led projects—it demands entrepreneurial innovation, technological agility, and scalable private-sector solutions.

 

Startups are emerging as a key force in this transformation. No longer confined to consumer apps or fintech, Saudi entrepreneurs are building businesses that tackle water scarcity, energy inefficiency, waste management, and climate monitoring. In doing so, they’re not just filling policy gaps—they are redefining what economic growth looks like in an era of climate disruption.

 

Renewables & Green Tech: Saving Costs, Creating Markets

 

Saudi Arabia has taken global lead steps:

  • The cost of solar/wind-generated power now ranges as low as 2 cents per kWh, with 17 utility-scale projects already operating and renewable capacity expected to power two-thirds of the population’s needs by end‑2024. 
  • The Sudair Solar PV Project (1.5 GW) has created ~1,200 construction jobs, plus 120 operational roles, and delivers power to about 185,000 homes while offsetting 2.9 million tonnes of CO₂ annually. 
  • ACWA Power’s Red Sea Project combines solar, battery storage, and desalination infrastructure, supported by a $1.33 bn debt package, integrating climate resilience into tourism development.

These macro-projects mitigate climate costs and open USD 50 bn+ of investment potential for renewables, hydrogen, carbon capture, and blue economy initiatives—tightly aligned with Vision 2030 and net-zero by 2060 targets. 

 

Startups at the Vanguard of Climate Action

 

In the broader economic equation of climate adaptation and sustainability, Saudi startups are not simply participants—they are becoming primary catalysts for innovation, risk-taking, and impact delivery. While mega-projects and policy frameworks lay the foundational infrastructure for decarbonization, it is the startup ecosystem that is driving agility, experimentation, and localized solutions tailored to the Kingdom’s unique climate challenges.

 

According to a recent report by PwC Middle East, Saudi Arabia accounted for nearly 94% of climate-tech startup funding in the GCC between 2018 and 2023, with over $439 million in disclosed investments. This dominance is not incidental—it reflects a deliberate alignment between national policy goals and entrepreneurial activity, reinforced by venture capital flows, public-sector backing, and growing consumer demand for sustainable solutions.

 

Sectoral Breadth and Technological Depth

 

Saudi climate-tech startups are increasingly branching out from traditional solar energy ventures into complex, cross-sectoral solutions spanning:

 

  • Energy Efficiency & Decentralized Power:
    Companies like Mirai Solar are developing lightweight, deployable photovoltaic solutions designed for mobility, modularity, and dual use—generating clean energy while acting as shading systems for agriculture, real estate, and logistics sectors. Such innovations directly reduce grid reliance and carbon intensity per square meter.
  • Sustainable Materials & Waste Valorization:
    Plastus has gained attention for its ability to convert agricultural and organic waste into biodegradable plastic alternatives—a critical advancement in reducing single-use plastic pollution, especially in food and logistics packaging.
  • Water & Urban Resilience Tech:
    Sadeem, a homegrown Saudi company founded out of KAUST, has created solar-powered IoT flood monitoring systems deployed in Riyadh and Jeddah. These systems not only reduce damage costs from flash flooding events but also cut emissions by enabling predictive, rather than reactive, municipal response.
  • Geothermal & Carbon Sequestration:
    Startups like Eden GeoPower, although still in their pilot stages, are experimenting with geothermal energy systems adapted for arid-zone geology. These technologies could offer long-term, dispatchable renewable energy—complementing intermittent solar and wind.

Such ventures, though small in market cap, deliver disproportionate environmental returns by addressing direct pain points—from reducing energy waste and urban flooding to improving resource circularity and grid efficiency.

 

A Culture of Mission-Driven Entrepreneurship

 

What sets this generation of Saudi startups apart is their explicit climate intent. Unlike earlier cohorts that viewed sustainability as a peripheral value-add, today’s founders—many trained at KAUST, KAPSARC, or abroad—are building business models with climate outcomes at their core.

 

Moreover, many of these startups operate under constrained conditions: fragmented supply chains, nascent climate regulations, limited liquidity in Series A/B rounds. Yet they persist, driven by a shared recognition that climate change is not only an existential risk but an economic opportunity valued in the trillions globally.

 

This emerging culture is aided by a growing infrastructure of green innovation enablers, including:

  • University-anchored incubators (e.g., KAUST Innovation Fund)
  • Public climate sandboxes launched by Monsha’at and the Ministry of Investment
  • Climate-focused VC mandates from SVC, STV, and regional family offices
  • Sector accelerators targeting agritech, aquatech, hydrogen, and e-mobility

Such support helps de-risk innovation and accelerate the go-to-market timelines for startups tackling challenges like desertification, marine degradation, and extreme weather volatility.

 

From National Challenge to Global Export Potential

 

Beyond their domestic impact, Saudi climate-tech startups are increasingly positioning themselves as export-ready innovators capable of scaling across the GCC, Africa, and Southeast Asia—regions that face similar environmental conditions.

 

For example:

  • Sadeem’s urban flood tech is now being piloted in Oman and Bahrain.
  • Plastus has begun licensing discussions with packaging firms in North Africa.
  • Mirai Solar is participating in solar mobility tenders in Southeast Asia.

This evolution from “local solution provider” to “global climate-tech contender” is a strategic imperative—not just for financial returns, but for Saudi Arabia’s soft power and green industrial policy goals under Vision 2030 and the Net-Zero 2060 pledge.

 

Enablers: Policy Frameworks & Ecosystem Support

 

Startup growth in climate-tech is buoyed by a supportive ecosystem:

 

  • Saudi government incentives: Monsha’at, CODE and Saudi Venture Capital Co. and PIF-backed funds have injected SAR 9.75 bn (~USD 2.6 bn) since 2018 into the startup market—many focused on sustainability.
  • Institutional seed funding: KAUST’s $200 m fund, part of a broader push to translate R&D into commercial solutions, aligns with NEOM reef restoration and Red Sea Projects.
  • Global R&D partnerships: Collaboration hubs at KACST, KAPSARC, and KAUST tie startups to national decarbonization strategy and COP frameworks.
  • Renewables procurement: Public tenders for solar, hydrogen, and hydrogen transport technologies generate demand for innovative startups.

Challenges Ahead

 

Despite momentum, barriers remain:

  • Regulatory complexity: Early-stage firms often struggle with unclear licensing, IP challenges, and sector-specific standards, particularly in marine and carbon-intensive sectors.
  • Financing gaps: Series A/B investment remains sparse, especially in blue-tech and hard-tech startups.
  • Talent shortage: Hiring advanced technical skills—marine scientists, geothermal engineers, IoT specialists—lags behind demand.
  • ROI expectations: 74% of regional business leaders avoid climate investments due to perceived low returns, underscoring the need for balanced incentives. 

 

Commenting on this, Mazeen Fakeeh, president of Fakeeh Care Group—a public entity that installed rooftop solar—reported savings of SR 170,000 (USD 45,000) on energy bills in 2024 and emphasized, “It’s a long‑term investment…to see the full return you need two or three decades.”

 

In the same vein, Faris al‑Sulayman, co-founder of Haala Energy, noted that commercial clients now actively pursue solar due to subsidy cuts and new tariff structures, reinforcing the business case for renewables. 

 

Vito Intini, UNDP’s MENA Chief Economist, praised Saudi startups for tackling land degradation: “By fostering an entrepreneurial ecosystem and investing in green innovation, the Kingdom can accelerate its sustainability agenda.”

 

Also, Fahd Al‑Rasheed of the Royal Commission highlighted the economic and environmental importance of marine tech: “We need to scale innovation faster, especially in aquatech, logistics, and ocean clean energy.” 

 

The Road Ahead: Scaling the Climate-Tech Frontier

 

Saudi Arabia’s climate agenda and entrepreneurial ecosystem are aligned, but scaling impact requires:

 

  1. Closing funding gaps: Develop more later-stage climate-tech funds and blended finance vehicles.
  2. Streamlining regulation: Simplify VC, IP, and licensing processes, particularly in the marine and carbon sectors.
  3. Building human capital: Scale technical training and attract global climate-tech talent.
  4. Boosting demand creation: Use public procurement to anchor startup solutions in national decarbonization pipelines.
  5. Catalyzing global partnerships: Embrace alliances through Green Hydrogen and Blue Economy strategies, involving China, EU, and US green-tech investments.

Finally, Saudi Arabia is emerging not only as a national leader in climate mitigation but as a fertile ground for startups to shape the green economy. By integrating massive renewable infrastructure, supportive policy frameworks, and venture capital into its Vision 2030 matrix, the Kingdom is positioning itself to absorb the economic costs of climate change rather than succumb to them.

 

However, the future depends on scaling innovation, maturing its startup ecosystem, and institutionalizing climate-tech as a growth and export pillar. If Saudi Arabia succeeds, it will offer not just resilience, but a global blueprint for economic transformation powered by climate-conscious entrepreneurship.

 

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What Is Churn Rate for Startups And Why It Can Make or Break You

Ghada Ismail

 

If you’re building a startup, you’re probably focused on growth. Watching your user numbers tick up, getting excited about new downloads, seeing traffic rise—it feels good. But here’s the thing most founders overlook: growth doesn’t matter if people don’t stick around.

 

You spend time and money getting people to try your product. But what if they quietly disappear after a week or two? No complaints. No goodbye. Just... gone. That silent exit? That’s called churn.

For early-stage startups—especially those with subscription models or digital platforms—retention matters as much as acquisition, maybe even more. But too many teams fall into the trap of chasing new users without realizing their existing ones are slipping away.

 

This is why understanding your churn rate is so important. It’s not just something your growth lead or investor should care about. It’s a core signal about whether your product is delivering real, lasting value.

Let’s break down what churn rate actually means, how to calculate it, and what you can do to improve it.

 

What Is Churn Rate?

Churn rate is the percentage of users or customers who stop using your product over a certain time period.

Here’s a simple way to calculate it:

Churn Rate = (Customers Who Left ÷ Customers You Had at the Start) × 100

Example:

Let’s say you started the month with 100 customers. By the end of the month, 8 of them stopped using your product.

Churn Rate: (8÷100)×100=8%

That’s your monthly churn rate: 8%.

 

Why Churn Rate Matters for Startups

1. Acquiring Users Is Expensive

You’ve spent money on ads, time on outreach, maybe even given away discounts. When a customer leaves quickly, you’re losing all that effort. And it adds up fast.

2. It Kills Growth

It’s hard to grow if your users keep leaving. You might feel like you're getting traction, but if your churn is high, you’re just running in place.

3. It Reveals Product Problems

Churn is often a signal that your product isn’t solving the user’s problem—or isn’t doing it well enough. If users leave, they’re voting with their feet.

4. Investors Pay Close Attention

If you’re raising funds, expect VCs to ask about your churn rate. It’s one of the quickest ways to assess whether your business has real staying power.

 

How Can You Reduce Churn?

Here are a few ways to plug the hole in your bucket:

  • Nail your onboarding.
    Make it ridiculously easy for new users to get started and see value right away.
  • Talk to churned users.
    Ask them why they left. You'll be surprised how many are willing to tell you.
  • Build “stickiness” into the product.
    What brings users back? Reminders? New content? Useful alerts? Find it—and double down.
  • Support matters.
    Quick, helpful responses build trust and can often prevent a user from leaving.
  • Win them back.
    Re-engagement emails or offers can remind users why they signed up in the first place.
  • Track usage signals.
    If someone hasn’t logged in for a week, don’t wait until they’re gone—check in early.

 

Wrapping things up…

Churn rate isn’t just another dashboard metric; it’s your product’s reality check. It tells you if people are finding enough value to stick around. And for any startup trying to grow in a noisy, competitive world, that’s everything.

Before you pour more budget into customer acquisition, take a closer look at the people already using your product. Are they happy? Are they staying? If not, it’s time to dig deeper, fix what’s broken, and build something worth coming back to.

 

Align or Decline: Why Picking the Right Venture Capitalist Is Crucial?

Kholoud Hussein 

 

Choosing a venture capital (VC) investor is not merely a funding decision; it is one of the most strategic partnerships a startup founder will make. While securing capital is often the immediate goal, aligning with the right investor can significantly influence a company’s trajectory, from operational decisions and market expansion to talent acquisition and even eventual exit strategies. In an increasingly competitive and sophisticated entrepreneurial landscape, founders must approach the VC selection process with the same diligence and intentionality they would use when hiring a C-level executive or co-founder.

 

The first consideration goes beyond capital—it's about value-added support. The best venture capitalists bring more than just a checkbook; they offer access to networks, mentorship, and strategic guidance. For early-stage startups, this often means introductions to potential clients, top-tier talent, or future investors. For growth-stage companies, it may involve international expansion strategies, mergers and acquisitions support, or crisis management expertise. A founder must assess what type of value their business truly needs at its current stage, and seek investors whose portfolio history and operational involvement align with those needs.

 

Equally important is the sector focus and domain expertise of the VC. Investors who have a track record in the startup industry are more likely to understand its nuances, regulatory landscape, and customer behaviors. They can anticipate market shifts and offer insight drawn from past successes and failures. A fintech founder, for example, will benefit more from a VC that has navigated banking integrations and compliance hurdles than from a generalist fund with no financial sector exposure. It's not just about the money—it’s about smart money.

 

The chemistry and alignment between the founder and investor also play a pivotal role. This relationship will inevitably be tested during periods of rapid growth or unexpected downturns. Founders must be comfortable with their investors’ communication style, level of involvement, and strategic vision. A misaligned investor could push for premature scaling or unrealistic return timelines, leading to unnecessary strain. Honest conversations about expectations, governance, and decision-making frameworks must occur early in the courting process. Due diligence is a two-way street: just as investors investigate the startup’s viability, founders must vet investors for alignment and long-term compatibility.

 

Another often overlooked factor is the reputation and signaling power of the VC. In markets where access to capital is still consolidating—such as emerging economies or sectors with nascent venture activity—the involvement of a respected investor can significantly elevate a startup’s credibility. This "signaling effect" can attract top talent, future investors, and strategic partners. However, founders should not be blinded by brand names alone. A highly reputable VC may also have competing priorities or an overly hands-off approach. The key is finding a balance between prestige and partnership.

 

Lastly, founders should consider the fund size, stage focus, and time horizon of the investor. A large fund with a wide portfolio may allocate a limited amount of time to each investment, while a smaller, more focused fund might offer more attention but fewer follow-on funding opportunities. Likewise, a fund nearing the end of its life cycle may push for quicker exits, which may not align with the founder’s long-term vision.

 

In conclusion, selecting a venture capital investor is as much about strategic fit as it is about financial capacity. The right investor becomes a partner in building, scaling, and navigating complexity, rather than just a source of capital. Founders who approach this decision thoughtfully are better positioned to secure not only funding but also the foundations of lasting success.

 

FraudTech in Saudi Arabia: The Battle Against Evolving Financial Scams

Ghada Ismail

 

Across Saudi Arabia, the way people handle money has undergone a quiet revolution. Tapping your phone to pay for coffee, transferring cash through a wallet app, and getting a loan without stepping into a bank, these are now part of everyday life. Over just five years, the Kingdom’s fintech sector has surged forward, reshaping how people save, spend, and invest.

The numbers reflect this momentum. According to the ‘Setup in Saudi’ website, the number of active fintech companies in the country jumped from 89 in 2022 to over 200 fintech firms as of August 2023. Digital-first banking, robo-advisory tools, and BNPL (buy-now-pay-later) platforms are gaining traction not just in Riyadh or Jeddah but across a much broader swath of the population.

 

But while fintechs have made finance more accessible, they’ve also created new openings for fraudsters.

As fast as platforms evolve, scammers adapt. No longer content with crude spam messages or clumsy impersonation attempts, they’re now deploying far more sophisticated tactics: hijacking OTPs, creating near-perfect fake apps, and launching social engineering scams that are tailored to Arabic-speaking users.

These attacks aren’t random. They’re calculated, localized, and alarmingly effective.

 

In a country where digital trust underpins an increasingly cashless economy, even a single breach can ripple far beyond the victim. For fintechs, the challenge is not just about securing systems, it’s about preserving confidence.

That’s why a new wave of innovation is taking shape: that’s FraudTech, a growing arsenal of technologies designed to detect and block fraud before it strikes. AI-driven threat detection, biometric verification, and behavioral analytics are becoming essential weapons in the fight against a smarter, faster breed of financial crime.

In today’s Saudi fintech landscape, the real arms race isn’t over who builds the flashiest app—it’s over who can build the safest one.

 

Inside the Modern Scam: What Fraud Looks Like in 2025

Gone are the days of laughably fake emails and “you’ve won a prize” messages. Today’s scams are sharper, better disguised, and more emotionally manipulative.

Across Saudi Arabia, users are being targeted with Arabic-language phishing messages disguised as official alerts from banks, government portals, or shipping services. Often sent via SMS or WhatsApp, these messages lead to malicious links or request seemingly harmless details, like a One-Time Password (OTP). In reality, that OTP is often the last step before someone’s account is drained.

 

Fake apps are another growing threat. These replicas of popular fintech platforms are nearly identical to the real thing, right down to the colors, layout, and fonts. Once installed, they harvest credentials and silently pass data back to cybercriminals.

Even more concerning is the rise of AI-enhanced fraud. Deepfake audio and video, cloned voices of bank agents, and personalized spear-phishing campaigns are creeping into the ecosystem. These tools make it increasingly difficult to tell the difference between a genuine call and a scam.

 

And then there’s social engineering, where the attacker’s strongest weapon is human emotion. A panicked call from someone claiming to be a relative in trouble. A friendly “customer service agent” helping you resolve an urgent issue. The goal isn’t to hack your phone, it’s to hijack your trust.

This new era of fraud is no longer just a tech problem. It’s a human one.

 

How Saudi Fintechs Are Fighting Back

In response to these rising threats, Saudi fintechs are stepping up with a new mindset: prevention by design.

Artificial Intelligence (AI) is now at the core of many platforms’ fraud strategies. These systems aren’t just flagging unusual logins; they’re learning user behavior in real time. If someone who always transfers SAR 200 suddenly sends SAR 20,000 to a new international account, the AI doesn’t just log it; it can freeze it, verify it, or block it altogether.

Biometric tools like fingerprint scans and facial recognition are becoming standard across many Saudi fintech apps. They provide an added layer of protection that can’t be phished or guessed.

 

But it doesn’t stop there. Behavioral biometrics—tracking how you hold your phone, how fast you type, or how you swipe—adds another invisible shield. These patterns are unique to each person and difficult for fraudsters to mimic.

 

Local players like Hala, Tweeq, and stc pay are investing heavily in fraud detection infrastructure. stc pay has publicly launched anti‑fraud initiatives like the “Scam the Scammer” awareness campaign, explicitly stating its ongoing investment in fraud prevention and customer security. Additionally, STC (the parent company) has partnered with telecom‑fraud solutions companies like Mobileum and Subex, deploying AI-driven systems to detect and prevent fraud across its network. Some have partnered with international specialists like Feedzai and BioCatch, which provide advanced, AI-powered fraud monitoring tailored for the financial industry.

What used to be back-end security is now a frontline feature. In a crowded fintech market, platforms that offer visible, transparent protection stand out. For users, safety has become just as important as speed or convenience.

 

Regulators Join the Fight

The battle against fraud isn’t being fought by fintechs alone.

The Saudi Central Bank (SAMA) has taken a proactive stance in fraud prevention by issuing a comprehensive Counter‑Fraud Framework and Fundamental Requirements, compelling banks and fintechs to implement real‑time monitoring, conduct frequent control maturity assessments, and submit roadmaps for compliance by June 2023. These requirements include board oversight and ongoing reporting obligations.

The National Cybersecurity Authority (NCA) stands alongside SAMA in safeguarding Saudi Arabia’s digital infrastructure and coordinating cyber threat response across sectors. Working together, these regulators deliver unified frameworks—such as SAMA’s Cybersecurity Framework and NCA’s Essential Cybersecurity Controls—that reinforce collaboration across finance, telecom, and critical infrastructure providers.

 

A. SAMA’s Cybersecurity Framework

  • Strong Customer Authentication (SCA): Mandates two-factor authentication (2FA) for all digital payments.
  • Fraud risk assessments required for fintech licensing.
  • Real-time transaction monitoring enforced for all payment providers.

B. National Cybersecurity Authority (NCA) Initiatives

  • "Kafalah" program: Aims to protect consumers from fraud via awareness campaigns.
  • Fraud reporting portals allow victims to report scams quickly.

This approach signals a shift: beating fraud isn’t about acting alone; it’s about acting together.

Public awareness campaigns have also ramped up, with simple, clear messages targeting everyday users. Whether it's an ad reminding you to never share your OTP or a video warning against fake apps, education is becoming part of the strategy.

 

Users: The First Line of Defense

Despite all the tech defense systems, one uncomfortable truth remains: people are still the easiest target.

Fraudsters don’t need to break into your system if they can simply trick you into opening the door. A well-timed scam call or convincing SMS is all it takes for many users to unknowingly give away critical information.

Recognizing this, fintechs are redesigning how they interact with users.

Some apps now display real-time warnings when a user tries to transfer money to a flagged account. Others introduce delays for unusually large transactions, buying time for users to reflect or cancel. Educational nudges, trust scores, and interactive security tips are also being embedded into user journeys.

In parallel, many fintechs are taking to social media, posting bite-sized Arabic videos that explain new fraud techniques, scams to watch for, and tips for safer banking.

 

Educating and Protecting the User

A. How Fintechs Are Raising Awareness

  • In-app scam warnings pop up during risky transactions.
  • Interactive tutorials teach users how to spot phishing attempts.
  • Gamification: Some apps reward users for completing security training.

B. What Users Must Do

  • Never share OTPs or passwords, even with "bank agents."
  • Verify app legitimacy before downloading (check developer names, reviews).
  • Enable biometric logins for added security.
  •  

The goal is simple: build habits, not just awareness.

Because in the fight against fraud, an informed user isn’t just a customer; they’re a partner.

 

Smarter Threats, Smarter Defenses

The fraud landscape isn’t standing still, and neither should Saudi Arabia’s fintech sector.

With generative AI, scammers can now create realistic fake identities, impersonate company executives, and automate social engineering campaigns at scale. We’re entering a time when a video of your CFO asking for a wire transfer might not be real, and you may not know until it’s too late.

 

To stay ahead, fintechs must treat security as a product, not a feature. That means real-time monitoring, regular penetration testing, strong collaboration across sectors, and above all, user-centric design that keeps protection seamless but effective.

In a future shaped by mobile-first banking, open APIs, and digital identity, Saudi fintechs won’t just be judged by how fast they grow, but by how securely they scale.

 

Conclusion: A Secure Digital Future for Saudi Arabia

Saudi Arabia’s fintech revolution is unstoppable, but so is financial fraud. The Kingdom is fighting back with strong regulations, AI-powered FraudTech, and consumer awareness.

The next phase will require even smarter defenses as criminals leverage AI. Yet, with SAMA, NCA, and fintech innovators working together, Saudi Arabia is well-positioned to become a global leader in secure digital finance.

The message is clear: Fraud is evolving, but so are the tools to stop it.

 

How does Swypex contribute to shaping the fintech landscape in Egypt?

Mohamed Ramzy

 

Amid Egypt’s rapid digital transformation in recent years, Swypex has emerged as a key player in the fintech sector, offering innovative solutions that empower businesses to manage their spending with greater efficiency and transparency.

Since its founding in 2022, Swypex has filled the gap in the Egyptian fintech market, capitalizing on robust partnerships that fueled the company’s growth and propelled its business model toward ongoing evolution and success.

Sharikat Mubasher had an interview with the Co-founder and CEO, Ahmad Mokhtar, to learn more about Swypex’s journey and future strategy.

 

First, what inspired you to found Swypex, and how has the company’s vision developed since day one?

We founded Swypex in 2022 to meet the growing needs of businesses in Egypt. Over the past years, Egypt has witnessed a significant push towards digitizing financial services, driven by the government’s support marked by the rollout of ‘InstaPay’ for consumers, widespread adoption of point-of-sale (PoS) terminals, and implementation of the e-invoice system, in addition to mandating government entities to accept digital payments. 

Yet, despite this progress, businesses remained without genuine solutions to digitize their internal spending while maintaining robust governance and control levels. Here came Swypex to offer an innovative, safe solution that enables businesses to track expenses efficiently and transparently. 

 

What are the key services or flagship products that Swypex offers in the fintech field?

We offer a wide spectrum of technology services, notably smart corporate cards that allow each employee or team to operate under flexible, personalized spending policies. These cards can be activated within minutes and delivered in only 24 hours.

Swypex also features a comprehensive platform to manage expenses and approvals, offering live tracking and direct integration with e-invoice systems, real-time financial reporting, and smart analytics to help teams make informed decisions. Additionally, the platform integrates directly with the Enterprise Resource Planning (ERP) systems to streamline accounting processes.   

 

What sets Swypex apart from its competitors in this dynamic market?

At Swypex, we deliver several financial solutions tailored to meet the specific needs of businesses, empowering them to digitize expenses while ensuring higher levels of transparency and control.

We also develop programs that align with actual operations and procedures that companies follow today, delivered through a seamless, easy-to-use digital platform that helps finance and management teams streamline spending management efficiently and in a more organized manner.

 

What are the biggest challenges you face in delivering innovative financial solutions, and how do you address them?

The biggest challenge we face is the long-standing lack of innovative financial solutions, which has forced companies to create their own complex internal processes to manage spending.

To address this, we work closely with finance teams to deeply understand their workflows and develop software that helps them solve problems automatically without requiring complicated training or drastic changes to their daily operations. Our goal is to ensure that technology acts as an enabler, simplifying workflows rather than creating additional challenges.

 

How does Swypex align itself with security and compliance standards?

Swypex adheres to the highest global standards for data and transaction security and implements top-level protections in compliance with Payment Card Industry Data Security Standard (PCI DSS). We also work closely with local banks to ensure full compliance with banking laws and regulations set by the Central Bank of Egypt (CBE). 

 

What are the company’s expansion plans in terms of exploring new markets and developing products?

We are developing additional features for our clients, such as broadening subscription packages to cater to medium and large businesses by offering flexible services, spending analysis tools, ERP system integration solutions, and tailored short-term financing services for corporates. All of this aligns with Swypex’s mission to establish an inclusive financial ecosystem that covers every aspect of corporate expense management.  

 

What are the key partnerships that Swypex forged in Egypt and the broader region?

We formed multiple partnerships in Egypt, including a strategic collaboration with Visa to offer smart, secure corporate cards and another partnership with Mashreq Bank. Additionally, we partnered with MDP to develop banking and technical infrastructure.

These partnerships enable us to deliver services that give companies greater control, transparency, and operational efficiency in managing their financial processes.

 

What is the current size and reach of Swypex’s business activities?

Swypex officially launched its operations in 2024, rapidly accelerating its business growth. Today, we partner with several key players in pivotal sectors, such as logistics, contracting, manufacturing, retail, technology, tourism, and more. These partnerships significantly contribute to the steady monthly increase in the volume of transactions processed through SwipeX.

 

What role does customer experience play in Swypex’s strategy, and how do you enhance it? 

Customer experience is at the core of our work. We design every product and service based on genuine feedback from customers. Our dedicated team works continuously to enhance the user experience by regularly measuring customer satisfaction and engaging directly with their feedback.  

Swypex’s goal is to provide a flexible, fast, and hassle-free financial experience.

 

Finally, Swypex has contributed to shaping the fintech landscape in Egypt since its launch in 2022 by providing innovative financial solutions to help startups manage their spending efficiently. During this short period, the company has forged strategic partnerships with leading entities and financial institutions in Egypt.

 

Translation: Noha Gad

Last-mile delivery innovations: Key innovations for modern e-commerce

Noha Gad

 

The substantial growth in the e-commerce sector over the past few years has revolutionized the retail landscape, powered by a surge in global online shoppers and evolving consumer expectations. In 2025, the number of online shoppers across the world is expected to reach around 2.77 billion, representing almost one-third of the global population, according to recent data released by SellersCommerce, a leading global B2B platform transforming the e-commerce landscape. 

This rapid expansion is triggered by increasing internet penetration, mobile commerce adoption, and the convenience offered by digital platforms. Consumers now demand faster, more flexible, and reliable delivery options, raising the bar for companies to optimize their last-mile delivery processes.

 

The term ‘last-mile delivery’ refers to the final stage in the supply chain where goods travel from a warehouse or local distribution center to the end customer’s doorstep, business, or a parcel locker. Although last-mile delivery is the shortest leg of a product’s journey, it is the most complex and expensive part of the logistics process, accounting for over half of total shipping costs. This phase directly links brands to consumers, serving as the ultimate touchpoint in fulfilling customer orders.

 

The rise in e-commerce and on-demand services highlighted the importance of last-mile delivery in meeting customers’ expectations to receive their packages safely with remarkable speed and flexibility. Same-day and next-day delivery options have become standard expectations, pushing businesses to innovate and optimize this phase of logistics. Thus, last-mile delivery is no longer just about moving parcels but about delivering superior customer experience and satisfaction.

 

Last-mile delivery requires careful route optimization, multiple stops, and flexible scheduling to meet strict delivery deadlines, especially in crowded urban environments. With growing expectations for transparency, customers now demand real-time tracking and prompt notifications, adding pressure on carriers and logistics providers. Successfully navigating these operational complexities can set companies apart in a competitive landscape and build lasting customer loyalty.

 

The evolution in last-mile delivery

The last-mile delivery landscape saw a remarkable evolution, driven by the shift from simple, manual processes to highly sophisticated, technology-driven operations. In the past, deliveries were largely managed through routine routes and fixed schedules, but today, last-mile delivery has transformed into a dynamic, customer-focused process that leverages data analytics, automation, and smart logistics solutions to optimize every step of the journey.

Emerging technologies played a pivotal role in enabling this shift. Real-time tracking systems, route optimization software, and mobile applications empowered delivery teams with the tools to plan more efficient routes, reduce fuel consumption, and proactively communicate with customers. Additionally, data analytics provides crucial insights into delivery patterns, resource allocation, and customer preferences, allowing companies to enhance their operations for maximum efficiency. 

These technological developments raised customers' expectations for last-mile delivery as shoppers prioritize speed and convenience, with same-day and even one-hour deliveries becoming standard in many markets. 

 

Outsourcing last-mile delivery became a strategic priority for many businesses aiming to meet the rising demands of today’s fast-paced and competitive market. By outsourcing last-mile delivery, companies mainly rely on specialized third-party logistics (3PL) providers to handle the critical final stage of the supply chain, instead of managing their own fleets and delivery personnel.

This shift enables businesses to scale operations efficiently without incurring the heavy costs of fleet ownership and management. It also enhances customer experience by providing more localized and flexible delivery options.

 

Key innovations in last-mile delivery

  • Electric and autonomous delivery vehicles. This innovation is ideal in urban locations with frequent stops and short distances. It contributes to reducing carbon emissions, noise pollution, and operational costs. Leveraging AI, GPS, and sensors, autonomous delivery vehicles can navigate complex environments and operate 24/7. Despite these promising benefits, challenges remain in regulatory approval, cybersecurity, and infrastructure adaptation.
  • Drone Delivery. This solution rapidly emerged as a transformative power in last-mile logistics as it offers unparalleled speed and flexibility in reaching customers, especially in congested urban centers and remote areas. This ability makes drones ideal for urgent deliveries such as medical supplies, food, and small parcels, where speed is critical. Electric-powered drones produce zero emissions and reduce road congestion, enabling direct deliveries to homes or designated drone ports, supporting sustainable urban logistics. One of the key challenges that delivery drones face is payload and flight range limitations that restrict package size and delivery distance.

 

Overall, last-mile delivery acts as a critical bridge in the logistics chain, connecting the complex global supply network to individual consumer experiences. Its evolving role requires continuous innovation to meet customer expectations for fast, reliable, and sustainable delivery. Mastering last-mile delivery is not just about moving parcels faster; it’s about crafting exceptional delivery experiences that build trust, loyalty, and a greener future in an ever-connected digital marketplace.