Robo-Advisory in Saudi Arabia: Algorithms Shaping the Future of Wealth Management

Aug 21, 2025

Ghada Ismail

 

Saudi Arabia, a nation with a historically strong savings culture but a relatively nascent public investing scene, is witnessing an undeniable shift. Propelled by the forces of Vision 2030, an overwhelmingly young and digital-native population, and a post-pandemic surge in financial literacy, automated investment platforms are breaking down the barriers to wealth management. They are offering a new generation of Saudis an accessible, affordable, and Sharia-compliant path to grow their wealth, fundamentally democratizing finance in the world’s largest oil exporter.

 

 Investment advice is now landing in the pockets of everyday citizens, delivered not by suited advisers, but by algorithms running on smartphones. What was once a fringe experiment in global finance has begun to carve out a place in the Kingdom’s financial landscape, marrying cutting-edge technology with a youthful, digitally fluent population. Robo-advisory is changing how Saudis imagine their financial futures: more automated, more accessible, and more aligned with local values.

 

What is a Robo-Advisor?

A robo-advisor is, at its core, an automated platform that provides algorithm-driven financial planning and investment management with minimal human supervision. A user answers a series of questions about their financial goals, risk tolerance, and time horizon. The algorithm then constructs and manages a diversified portfolio of exchange-traded funds (ETFs) tailored to that individual.

However, in Saudi Arabia, the algorithm must do more. It must be confined to Sharia.

The demand for Sharia-compliant investing is not a niche preference; it is a foundational requirement for the vast majority of local investors. This means the algorithms powering Saudi robo-advisors are intricately coded with specific filters. They automatically screen out companies involved in prohibited (haram) activities, such as alcohol, gambling, and conventional banking (interest-based), among others. Furthermore, they perform rigorous financial ratio analysis to ensure companies do not hold excessive debt or derive significant income from interest.

 

A Market Built in the Lab: Where Regulation Meets Innovation

This shift didn’t happen by accident. At the center of it is the Capital Market Authority’s FinTech Lab, a regulatory sandbox where new ideas are allowed to grow under careful watch. Here, start-ups and banks alike are testing automated portfolio-management tools with time-limited permits. The goal? To make sure investors are protected, risks are mapped, and systems are transparent before a permanent license is granted.

The approach has worked. Today, companies that once operated under experimental conditions have graduated into fully licensed capital-market institutions, cleared to advise, manage, arrange, and even hold assets. By releasing regular bulletins and tracking everything from assets under management to user demographics, the CMA ensures this growth is not just fast, but also safe.

 

Open Banking & Digital Adoption: Fueling the Engine

Robo-advisory thrives on data: income flows, spending habits, savings goals. Saudi Arabia’s embrace of Open Banking—first through account information sharing, then payment initiation—has created the perfect rails for these platforms to operate. With APIs powering seamless onboarding and automatic contributions, investing has become as effortless as setting up a direct debit.

This is layered on top of a society already primed for digital adoption. Mobile banking, e-wallets, and instant payments are part of everyday life. Smartphone penetration is near-universal. For a young population that already lives online, a robo-advisor isn’t a foreign tool, but a natural extension of their digital routines.

 

Who’s Leading the Charge?

Behind the buzz, a few names stand out as the architects of Saudi, regional, and global robo-advisory:

  • Malaa Technologies: Founded in 2021, Malaa Technologies is a Saudi robo-advisory platform licensed by SAMA. It offers Sharia-compliant portfolios built from ETFs covering U.S. stocks, Saudi stocks, gold, and bonds, with investment entry starting at SAR 1,000. The platform uses algorithms to match portfolios to each investor’s risk profile, charges low fees of 0.35% only upon withdrawal, and even handles Zakat calculations. Beyond investments, Malaa also provides expense-tracking tools and plans to expand into financing services.
  • SNB Capital, part of Saudi National Bank, which has built goal-based advisory services directly into customer accounts, allowing wealth to grow almost on autopilot. Back in 2023, SNB took a leading step in digital wealth management with the launch of its Idikhari robo-advisory program, designed to make investment more accessible to everyday users. The platform uses automated financial planning tools to create personalized portfolios based on an individual’s risk profile, goals, and time horizon, while keeping the process simple and Shariah-compliant. By integrating advanced algorithms with SNB’s banking ecosystem, Idikhari not only lowers barriers to entry for first-time investors but also supports the Kingdom’s Vision 2030 agenda of boosting financial literacy and expanding participation in capital markets.
  • Derayah Financial, a homegrown pioneer, whose “Derayah Smart” platform offers Shariah-compliant portfolios with transparent fees and low entry barriers. Derayah Smart is one of the Kingdom’s earliest homegrown robo-advisory platforms, aimed at simplifying investment for both beginners and experienced investors. The service provides automated portfolio management by assessing clients’ financial goals and risk appetite, then allocating assets across global markets through diversified exchange-traded funds (ETFs). With a fully digital onboarding process and low entry requirements, Derayah Smart has helped broaden access to investment opportunities in Saudi Arabia, positioning itself as a key player in the country’s growing fintech-driven wealth management space.
  • Founded in 2021, Drahim is a Saudi robo-advisor licensed by both SAMA and the CMA. It offers ten Sharia-compliant portfolios spanning sukuk, real estate, and Saudi and global stocks, with a minimum investment of SAR 1,000. Fees start at 0.25% annually, and investors can track all accounts and assets through the app, which also provides detailed financial reports.
  • Abyan Capital is a Saudi robo-advisor also founded in 2021 and licensed by the CMA with a focus on long-term savings and retirement planning. It quickly grew to manage over SAR 500 million in its first year and offers three Sharia-compliant portfolios across stocks, real estate, and sukuk, primarily via ETFs. Investors can start with SAR 1,000, with a 1% annual management fee, and enjoy flexible deposits and withdrawals.
  • Sarwa, the UAE-born fintech operating under a CMA permit, targets millennials with low-cost, diversified portfolios. Sarwa, which officially launched its robo-advisory platform in February 2018 under the Dubai Financial Services Authority’s Innovation Testing License, presented itself as the region’s first regulated automated investment advisor. The platform combines automated investing with human financial advice, offering diversified portfolios built with low-cost ETFs and tailored to individual risk profiles. With features such as zero-commission trading, fractional shares, and Shariah-compliant investment options, Sarwa has positioned itself as both accessible and innovative, attracting thousands of young professionals seeking simple, affordable ways to grow their wealth. Its cross-border presence also makes it a benchmark for how robo-advisory can scale across the wider MENA region.
  • Tamra Capital, licensed by the Capital Market Authority, is a leading UAE-based robo-advisory firm by assets under management. Its platform offers Sharia-compliant ETFs and simplifies access to local and international funds, publishing AUM and subscriber data quarterly through the CMA.
  • Vault Wealth, the UAE’s first digital private wealth app for high-net-worth individuals, blends robo-advisory with human expertise. It offers global portfolios of equities, bonds, and private markets, alongside a high-yield cash solution. Partnered with Interactive Brokers for custody, Vault also provides Sharia-compliant portfolios of equities and sukuk for ethical investors.
  • Wahed Invest, a global halal robo-advisor already familiar to Muslim investors worldwide, is bringing faith-aligned investing into Saudi homes. The platform, widely recognized as the world’s first Shariah-compliant robo-advisor, has steadily grown its presence across key markets. Founded in 2015 and launching its service in the U.S. in 2017, Wahed secured a pivotal US$25 million funding round in June 2020—led by Saudi Aramco Entrepreneurship Ventures (Wa’ed)—to support its global expansion and establish a dedicated subsidiary in Saudi Arabia following regulatory approval from the CMA

 

Demand Side Momentum: Culture, Demographics, and Behavior

Several cultural and demographic forces are driving robo-advisory into the mainstream.

The fintech explosion is one. By 2023, Saudi Arabia had nine active robo-advisory platforms, and their growth has been breathtaking. Assets under management leapt 354% in a single year, from SAR 308 million to SAR 1.4 billion. Investors flocked in, nearly half a million of them by 2023, pushing regular, automated investments up by an astonishing 568%.

The youth factor is another. More than three-quarters of robo users fall between the ages of 20 and 40, with Riyadh, Makkah, and the Eastern Province leading adoption. This is a generation that’s digitally native, comfortable with risk, and eager for transparent, low-friction ways to build wealth.

Finally, the numbers suggest this is no passing fad. Statista projects Saudi robo-advisory assets to top US $4.29 billion by 2025, rising to over US $5 billion by 2029. Ken Research even forecasts a compound annual growth rate of nearly 48%, underlining the sheer velocity of adoption.

 

The Saudi Take on Robo-Advisory: Faith-Aligned, Goal-Oriented, and Hyper-Local

Saudi robo-advisors are not carbon copies of their Western counterparts. Two features set them apart.

First is Shariah compliance. Every portfolio is rigorously screened to exclude prohibited instruments or non-interest-bearing products, no non-compliant equities. Many platforms even publish endorsements from Shariah boards, ensuring investor trust.

Second is a goal-based approach. Rather than focusing on abstract benchmarks, platforms guide users through tangible milestones: saving for a wedding, buying a home, funding a child’s education, or planning retirement. Dashboards, auto-funding schedules, and risk alerts help keep users anchored to real-life aspirations.

 

Innovation on the Horizon

Looking ahead, Saudi robo-advisory is expected to branch into new directions. Artificial intelligence will drive personalization, tailoring portfolios to behavior and life stage. Hybrid models will blend algorithms with human advisors, catering to more complex needs such as estate planning. ESG and sustainability-focused portfolios are also on the horizon, meeting a growing demand for values-based investing. And with embedded finance, robo-advisors may soon be integrated into banking apps, e-wallets, or even telecom platforms like STC Pay, broadening reach even further.

 

Balancing Innovation with Investor Protection

Yet the path is not without hurdles. Regulators are pressing for more transparency around how algorithms work, how fees are charged, and how risks are communicated. Investor education campaigns are being rolled out to ensure that first-time users understand what they are signing up for.

Risks remain. Algorithms can be opaque, leaving users confused during market swings. Poorly designed questionnaires can misclassify risk tolerance, producing portfolios that don’t match real-life temperament. And because automation is so convenient, some investors disengage altogether, missing out on adjustments that require human judgment.

Competition adds another layer. With low switching costs, platforms must continuously innovate or risk losing clients to rivals.

 

Looking Toward 2030

By the end of this decade, success for Saudi robo-advisory will be measured not just in numbers, but in trust and resilience. It will be about how deeply retail investors are engaged, how well returns are delivered net of fees, and how faithfully Shariah compliance and transparency are upheld. Most of all, it will be about whether Saudi citizens continue to see these platforms not as novelties, but as reliable partners in building their financial futures.

 

Conclusion: A Saudi-Engineered Wealth Revolution

Robo-advisory in Saudi Arabia is more than a fintech trend; it is a deliberate instrument of national transformation. It brings together youthful demographics, Islamic investment values, regulatory foresight, and digital infrastructure into a uniquely Saudi model of wealth automation. What began as experimentation in a regulatory sandbox now stands ready to redefine how an entire nation saves, invests, and grows. The future of investing in the Kingdom is not just digital. It is algorithmic, values-driven, and unmistakably Saudi.

 

Tags

Share

Advertise here, Be the LEADER

Advertise Now

Latest Experts Thoughts

Esports Meets Entrepreneurship: Could Gamers Be Saudi Arabia’s Next Big Investors?

Ghada Ismail

 

When an ecosystem grows fast enough, its consumers often become its creators.. and potentially its funders. Over the past few years, Saudi Arabia’s gaming and esports sector has transformed from a niche leisure activity into a central plank of the Kingdom’s economic‑diversification strategy. This shift is creating a new dynamic: engaged, affluent gamers who understand games, audiences and monetization, and who may soon act like investors. 

The resulting feedback loop seems promising: state‑backed capital and high-profile events generate interest; local entrepreneurs launch studios, platforms and tools; and successful players, creators and founders begin to emerge as potential angel investors — accelerating the cycle.

The scale of the opportunity helps explain the momentum. According to according to Savvy Games’ 2024 report, Saudi Arabia’s gaming market generated about US$1.19 billion in revenue in 2024, making it the largest gaming market in the Middle East and North Africa (MENA). 

Projections in that report estimate the market could reach US$1.64 billion by 2028, assuming steady growth across platforms (console, mobile, PC). 

Moreover, the overall appetite for gaming in the Kingdom appears substantial. According to one 2025 analysis by Antom.com, Saudi Arabia outpaces the MENA average in per‑capita gaming spending (almost three times higher) and counts about 23.5 million players, with a reported penetration of about 63%. 

Thanks to these numbers, as Saudi gamers participate in tournaments, build communities, create content, and use local or regional platforms, they are gaining a kind of product and market literacy, the kind of instinctive sense for audience behavior, monetization and content dynamics that investors typically rely on. With the gaming sector expected to expand steadily through at least the latter half of the decade, the Kingdom may be approaching a novel phenomenon: where players and creators don’t just consume the ecosystem — they fund it.

 

Why Gamers Could Make Effective Investors

The idea of a gamer acting like an angel investor may sound bold, but in Saudi Arabia’s current context, it is increasingly plausible. Gamers tend to develop deep product intuition: after thousands of hours engaging with games, they learn to spot good user experience, balance design, monetization potential, and retention dynamics. They understand what players want, a useful skill when evaluating new gaming or esports startups.

Content-creating gamers — whether they stream, compete, commentate, or run communities — usually build strong followings. That audience gives them real influence. A single post, stream, or tournament partnership can draw attention to a startup, bring in early users, or even attract investors. Because they have this direct reach and credibility, creators can be powerful early supporters or even valuable co-founders.

Some gamers have moved beyond playing or content creation into informal micro‑businesses: coaching, streaming monetization, community tournaments, and even indie game development. These ventures mirror early-stage startup experience, giving gamer‑entrepreneurs a head start.

Because many of these initiatives build on local tastes, culture, language, and regional understanding, there is strategic alignment: Saudi gamer‑investors may be especially motivated to support platforms and titles that resonate regionally.

 

Institutional Support: Savvy Games Group

At the top of the new gaming ecosystem sits Savvy Games Group, created under the Kingdom’s sovereign wealth fund to lead the charge. According to its 2023 annual report, it was set up to align with Saudi Vision 2030 goals: leveraging a young, affluent, tech-savvy population to build a national games industry. 

Savvy’s backing gives legitimacy and resources to the sector — from infrastructure and studio development to global publishing and esports investments. This sovereign‑scale commitment signals strongly to local entrepreneurs and prospective gamer‑investors that gaming is not a passing trend, but a long-term strategic industry for the Kingdom. 

 

Emerging Domestic Platforms and Startups

As institutional capital flows, local startups and regional platforms are shaping the ecosystem from the grassroots upward. Their existence expands the possible entry points for gamer‑investors. These are the most prominent players in the local market:

  • Grintafy — A Saudi sports-tech platform (founded in 2018 / 2019, based in Jeddah) that connects amateur and semi-pro footballers to clubs, matches, and talent scouts. Grintafy allows users to build a “football CV,” organize or join games, rate players, track performance, and get visibility among clubs and academies — effectively democratizing access to football opportunities across the Middle East. Grintafy has raised external investment: a 2022 convertible note from Wa’ed Ventures, and more recently a strategic investment from Chiliz (a global sports-blockchain company) to accelerate its transition toward Web3 and scale its talent-discovery ambitions. 
  • Spoilz   A Saudi game-development studio (founded 2020) focused on mobile games and live-ops services for the MENA region. Spoilz recently secured investment from investors including Merak Capital and Impact46, with plans to build globally competitive games and expand beyond mobile to PC/console/smart-TV platforms. 
  • Fahy Studios  A Riyadh-based game studio that in 2025 closed a US$1.75 million funding round to develop hybrid-casual games globally. The studio graduated from the educational accelerator program at NEOM Media Industries’ Level-Up accelerator and signed a publishing deal with international publisher Kwalee. 
  • Starvania Studios  A newer Saudi indie studio (founded 2022) that secured US$1.1 million in funding from Merak Capital and Impact46, aiming to expand into PC and console game development. Its first released game (on Steam) draws on Arabian mythology themes, showing local creative ambition and regional cultural resonance. 
  • Rize.gg   A newer, pre-seed startup (headquartered in Riyadh) building a platform for competitive gamers to team up, stream gameplay, and organize tournaments, representing early-stage, community-driven startup activity in Saudi Arabia’s esports ecosystem. 

 

What These Real Examples Tell Us

  • The ecosystem is diverse; not just big capital-heavy firms, but indie studios (Spoilz, Starvania, Fahy), and platform/community-builders (Rize.gg). There is active investor interest and early-stage funding: studios like Fahy and Starvania have secured external investment; Spoilz is scaling. This shows that Saudi Arabia’s gaming scene is beginning to attract real capital beyond state-backed conglomerates.
  • These companies emphasise regional relevance and global ambition — games drawing on local cultural references, but aiming for international distribution; venues and platforms designed for local communities but part of broader esports networks.
  • For “gamer-investors,” this variety offers multiple entry points: investing in indie studios, backing platforms, co-owning venues or clubs, or even participating directly in community-driven content/competition.

 

Government and Regulatory Support: Clearing the Path for Gaming Investment

Saudi Arabia’s gaming ecosystem is buoyed by proactive government policies. The Saudi Esports Federation (SEF) and the Ministry of Communications and Information Technology (MCIT) have implemented frameworks to support esports tournaments, professional leagues, and content creation. Initiatives like SEF Arena in Riyadh, which hosts competitive gaming events, serve not only as a physical hub for players but also as a proving ground for potential investor-gamers to assess market dynamics firsthand. 

Additionally, regulatory clarity around digital assets, in-game monetization, and content licensing is improving, lowering barriers for both startups and investor-gamers. Policies encouraging local IP development and regional content distribution provide incentives for Saudi gamers to participate in funding domestic projects rather than relying solely on foreign titles. These regulatory advances reinforce the sustainability of a gamer-investor ecosystem.

 

The Role of Education and Skills Development in Gaming Investment

Another emerging trend is the overlap between gaming literacy and professional skills. Many Saudi gamers are students or professionals in computer science, design, data analytics, or digital media. Their gaming experience equips them with deep insights into user behavior, digital monetization, and community management, skills that are directly transferable to evaluating startups or running small gaming-focused ventures.

Local educational initiatives, including partnerships with universities and coding academies, are increasingly incorporating esports management, game design, and content production into their curricula. Programs like these provide structured pathways for aspiring investor-gamers to transition from hobbyist participation to professional involvement in the gaming economy, further reinforcing the pipeline from player to investor. 

 

Conclusion

Saudi Arabia’s gaming push is no longer just about big tournaments or major acquisitions. Thanks to strong government support, a young population, and growing local spending, the Kingdom now has the foundations of a gaming sector that can sustain itself.

These foundations could also create a new kind of investor- gamers who understand products, digital culture, and community needs better than traditional investors. As the market grows and more Saudi studios, tools, and platforms appear, these gamers may increasingly step into roles as founders, early backers, or active stakeholders.

In short, Saudi Arabia might be on its way to creating one of the world’s most unique groups of digital-native, gaming-driven investors. This future now feels realistic, it’s just not fully here yet.

Yahia: Rabbit’s techs fuel regional growth with plans to expand into new Saudi cities

 Shaimaa Ibrahim

 

The quick delivery services and e-commerce sector in the GCC and the Middle East are undergoing a profound transformation, driven by the development of logistics technologies and changing consumer preferences. In this dynamic landscape, Rabbit emerged as one of the leading models that reshaped the standards of quick delivery services. As it broadens operations across Egypt and Saudi Arabia and adopts a flexible, tech-based operating model, Rabbit plans to strengthen its presence and expand market share in this competitive industry.

In this context, Sharikat Mubasher held an exclusive interview with Shaza Yahia, Regional Marketing Director at Rabbit, on the sidelines of the fourth edition of the HERizon 2025 Summit, organized by Carerha, a leading platform focusing on empowering women across the region to compete in the job market.

The interview discussed the company’s journey since its foundation and its mechanisms to address the real challenges within the delivery sector, in addition to highlighting the competitive edges that boost Rabbit’s expansion across the fastest-growing and evolving markets in the region.

It also underscored the pivotal role of technology and artificial intelligence (AI) in enhancing operational efficiency, and showcased the company’s achievements and the key challenges it faced to expand regionally, in addition to providing insights on the future of e-commerce in the region amid the rapid transformations that the sector witnesses.

 

What is the core concept behind Rabbit? And how does it fill the gap in the quick delivery sector in Egypt and the GCC?  

The idea behind Rabbit emerged five years ago when the founders identified common challenges facing consumers in Egypt and the broader region, notably home delivery delays, inaccurate orders, and missing items upon receipt. Hence, the vision was born to establish a platform based on a model that offers a swift and accurate shopping experience, with a firm promise to deliver within only 20 minutes. The focus was to offer a reliable service that customers could trust and integrate seamlessly into their daily lives.

There were several key players in the Egyptian and Saudi markets when Rabbit was launched; however, the company chose to enter the market with a distinct approach centered on reliability, speed, and building long-term relationships with customers. Rabbit delivered clear added value and crafted personalized experiences that accurately meet each customer’s needs. This ultimately fostered strong user loyalty and enabled Rabbit to attract a growing segment of the market.

With this approach, Rabbit seeks to fill a genuine gap in the quick delivery sector in Egypt and the GCC, offering an operational model capable of keeping pace with the rapidly evolving lifestyle of consumers and enhancing the reliability of e-commerce services across the region.

 

What are the factors and features that give Rabbit a competitive edge over other companies in the Egyptian and Saudi markets?

Since its launch, Rabbit has focused on two core principles at the heart of its operations: convenience and simplicity. Our clear goal is to provide customers with a seamless experience, ensuring orders are delivered quickly and accurately, and offering all essential products at affordable prices, along with daily promotions that add genuine value to users.

Diversity is an integral part of Rabbit’s strategy to foster customer loyalty. As the number of online applications grows, the market experiences intense competition both among e-commerce platforms themselves and between these platforms and traditional stores, which continue to attract a significant segment of consumers, particularly in Saudi Arabia.

What sets Rabbit apart is that it adopts the ‘House of Brands’ model, being a home for brands, while focusing on supporting local products and providing them with a broad platform to reach more customers. Many of these brands have achieved growth through Rabbit that exceeds what they have achieved through global competitors, thanks to joint campaigns and additional marketing within the platform.

Rabbit’s competitive edge relies on multiple factors: quick services, product diversity, affordable prices, and strong support for local brands. Together, these factors enable Rabbit to compete effectively in this dynamic and rapidly evolving market.

 

How does Rabbit utilize technology and AI to enhance customer experience and improve operational efficiency?

Rabbit relies entirely on an advanced, in-house technology infrastructure, a rare approach in the e-commerce market where ready-made systems or partnerships with external technology providers are more common. At its early stages, the company relied on some partners but quickly developed its own infrastructure, enabling it to create a fully integrated application built on custom-designed systems tailored to meet its operational needs.

This technology infrastructure enables customers to place orders in under two minutes, maintaining a delivery promise of approximately 18 minutes. Internal system development also facilitated rapid responses to customer feedback, significantly improving their experience.

AI became an integral part of Rabbit’s operations. We employ AI in managing operations, data analysis, marketing personalization, and reducing operational costs. The company also integrates AI in content creation and marketing materials design to enhance team efficiency and accelerate marketing campaign development. 

 

What are the key figures and milestones that Rabbit has recently achieved?

Rabbit achieved remarkable growth in a short period, with over two million customers benefiting from its services, despite its marketing budget being significantly lower than that of its competitors. This reflects how our services meet customers' needs and reaffirms the company’s capability to build long-term relationships with customers.

The platform also enabled several local companies to achieve four- and five-fold growth rates by expanding their customer bases and boosting sales through Rabbit. Some of these companies successfully transformed their products into regional brands and expanded beyond Egypt, thanks to their partnership with the platform.

Additionally, Rabbit provides brands with strategic opportunities to reach new customer segments and showcase their products on a broader scale, unlocking new growth opportunities that were not accessible before.

 

What were the major challenges that Rabbit faced during the expansion phase, and how did the company overcome these challenges? 

We faced several challenges across various expansion phases, most notably the variance in marketing budgets compared to competitors, which significantly exceeded our resources. We also noticed that customer needs change rapidly, and that each stage of time imposes different priorities and behaviors, which puts constant pressure on companies to keep up with these changes. 

We were able to overcome these challenges thanks to the team’s ability to develop and respond quickly to changes, along with our approach that focuses on continuous testing, whether to measure customer satisfaction or to test new features within the application.

We learned a fundamental lesson from this experience: addressing challenges begins with understanding their nature. Are they temporary and time-bound, or are they fundamental problems that require modifying the business model? Therefore, we are always keen to try new ideas quickly and make the required changes, driven by our belief that flexibility and quick decision-making are key factors to maintain the company’s ability to compete and achieve rapid growth.

 

What motivated Rabbit to expand into the Saudi market, and what investment opportunities did the company find in the Kingdom?

Since its foundation, Rabbit has had a clear expansion plan, which focused on launching operations in Cairo before moving to Riyadh. We obtained the necessary licenses to expand into Saudi Arabia during the first year of our launch in Egypt; however, we preferred to postpone this step till early 2025 to deeply understand the Saudi market and ensure a strong and balanced entry.

The Saudi market is a highly competitive one, thanks to the emergence of new companies and large investments in growth, as well as intense competition between online applications and traditional stores. This eventually increased consumer awareness of digital services and paved the way for applications that deliver exceptional experiences and added value. 

Despite this intense competition, the Saudi market remains abundant with opportunities for any application offering a high-quality experience and building a genuine connection with the local community.

Rabbit currently focuses its efforts on Riyadh, aiming to provide an experience that the Saudi customer feels is tailored specifically for them, not just a copy of a foreign service.

 

Does Rabbit plan to expand into new markets beyond Egypt and Saudi Arabia?

Yes, we have clear expansion plans, but we always ensure a thorough study of the target markets before taking any step by analyzing demand size, competition levels, and gaps we can fill to guarantee a successful and sustainable entry.

In the short term, our plans focus on expanding into new cities across Saudi Arabia, following the success we achieved in Riyadh. The Saudi market still holds significant growth opportunities, and expanding into other cities is a pivotal step before moving to new markets beyond Egypt and Saudi Arabia.

 

How do you see the future of the delivery services and e-commerce sectors in GCC and the Middle East?

The delivery and e-commerce sectors in the GCC and the Middle East are experiencing rapid growth, driven by changing consumer behavior and their increasing reliance on online shopping, both in Cairo and Riyadh. Riyadh, in particular, stands as a model for this transformation, given the high youth population who prefer digital solutions and applications that meet their needs quickly and easily. 

The more companies can offer an integrated experience combining speed, convenience, and a variety of options, the more they will be able to capture larger market shares. Government policies, especially in Saudi Arabia, also accelerate this growth by supporting the adoption of cutting-edge technology and investing in AI solutions to enhance the efficiency of logistics and supply chains.

In light of these developments, the sector is expected to continue expanding, triggered by the entry of new players and increased investment volume. This will ultimately boost market competitiveness and reshape the future of e-commerce in the region.

 

Translation: Noha Gad

What Makes Certain Startups Go Viral?

Ghada Ismail

 

Some startups seem to explode overnight, appearing in feeds, conversations, and headlines almost magically. But virality is rarely accidental. Behind every breakout success is a careful mix of human psychology, clever product design, perfect timing, and engineered growth mechanics. Virality is not luck then; it’s strategy. Understanding why certain products spread like wildfire can reveal patterns that founders, marketers, and product teams can intentionally leverage. In other words, going viral is less about chance and more about creating the conditions that make sharing irresistible, adoption effortless, and growth self-propagating.

 

1. Psychology: Why People Share

Viral products succeed because they tap directly into human behavior. People don’t just share products; they share experiences that make them feel seen, valued, or emotionally engaged.

  • Identity expression: Users share things that reinforce how they see themselves or how they want to be perceived.
  • Emotional impact: Strong emotions—whether delight, surprise, or even frustration—motivate people to talk about a product. The more emotionally charged an experience, the more likely it spreads.
  • Social currency: Sharing gives users a sense of contribution or status. By showing others something new, useful, or exclusive, they feel like they are providing value to their network.

Pro Tip: Emotional engagement often drives more shares than functional usefulness. Products that trigger strong, shareable emotions scale faster.

 

2. Product Loops: Growth Built Into the Product

The most viral startups design mechanisms that naturally pull in more users. This is called a “growth loop.”

  • Network effects: Messaging apps or collaborative tools become more valuable as more people join.
  • Referral loops: Incentivized invitations, like Dropbox’s early free-storage strategy.
  • Content loops: Platforms like Instagram or TikTok grow because user-generated content spreads organically.

Pro Tip: Products that embed sharing into their core functionality can sustain long-term viral growth without heavy marketing spend.

 

3. Onboarding: Instant Value Matters

A viral product must deliver value immediately. Users ask:

  • “Can I understand this in seconds?”
  • “Is it easy to start using without instructions?”
  • “Can I quickly experience the benefit?”

Pro Tip: Frictionless onboarding directly correlates with higher share rates. The simpler the first experience, the more likely users are to invite others.

 

4. Timing: Hitting the Cultural Sweet Spot

Even the best product may fail if the market isn’t ready. Virality often depends on alignment with cultural or technological trends.

  • Zoom’s rise coincided with remote work adoption.
  • Fitness apps surged during global lockdowns.
  • New social media tools often succeed when network behaviors are shifting.

Pro Tip: Timing amplifies the effectiveness of psychological triggers and product loops. A perfectly engineered product launched too early or too late may never go viral.

 

5. Social Proof and FOMO: Accelerating Momentum

Virality grows faster when users see others using or endorsing the product. Techniques include:

  • Invite-only launches and waitlists to create scarcity.
  • Influencer endorsements for credibility.
  • Shareable content (screenshots, posts) that spreads awareness.

Pro Tip: Social proof multiplies momentum by increasing the probability that users will share or invite others.

 

6. Speed and Experimentation Create “Luck”

While luck plays a role, successful startups usually create conditions for it. They:

  • Launch quickly and expand based on feedback.
  • Test bold ideas and pivot fast.
  • Observe trends and react before competitors.

Pro Tip: Virality rarely happens without a culture of rapid experimentation. Startups that move fast can capitalize on windows of opportunity that others miss.

 

Conclusion: Virality Can Be Engineered

Virality is often treated as a mysterious, almost magical phenomenon, but the truth is more tangible. Successful startups achieve virality by understanding human behavior, embedding sharing mechanisms into their products, launching at the right moment, leveraging social proof, and moving faster than anyone else. The brands that truly explode don’t wait for luck; they create it. By studying these patterns, founders can shift their mindset from hoping for virality to designing it into their products, making growth predictable, measurable, and sustainable. 

How an AI co-founder can accelerate your startup to market

Noha Gad

 

The entrepreneurship ecosystem is undergoing a profound transformation today, driven by the fast-evolving technological landscape. Traditionally, startups have been launched by visionary individuals or teams sharing complementary skills and a common goal. However, the rise of artificial intelligence (AI) is revolutionizing the future of business, introducing a new paradigm where AI can serve as a full-fledged co-founder alongside human entrepreneurs.

In 2025, several startups are naming AI tools, like GPT-4, Claude, and open-source large language models (LLMs), as co-founders, not just assistants. In many cases, these AI systems ideate, write code, draft pitch decks, analyze markets, and even engage with customers.

The integration of AI as a co-founder democratizes entrepreneurship by leveling the playing field, especially for solo founders or resource-constrained teams. It empowers innovators to accelerate product development, optimize business strategies, and reduce time-to-market, all while fostering smarter, data-driven growth. 

 

What is an AI co-founder?

An AI co-founder is not a robot CEO. It is typically an advanced AI system, often based on LLMs or custom-trained agents, that supports or drives major startup functions from day one. Unlike human co-founders, AI systems operate tirelessly without requiring salaries, breaks, or rest. They harness vast data, predictive analytics, and machine learning to offer real-time insights, automate complex tasks, and support critical decision-making. This transformative concept is quickly moving from futuristic speculation to practical reality, fundamentally redefining how startups are conceived, launched, and scaled.

What makes AI co-founders different from traditional AI tools is their ability to handle up to 80% of early-stage R&D work that usually takes a lot of time and resources from founders. They keep learning and adapting to a startup's specific needs, becoming more efficient and customized over time. Several factors set AI co-founders apart from regular AI assistants. These include:

  • Strategic input: AI co-founders are not just implementing tasks; they propose product directions or market pivots.
  • Continuous learning: they adapt to the startup’s data, goals, and team behavior.
  • High Autonomy: AI co-founders operate without constant human oversight, having access to APIs, CRMs, design suites, code repositories, and more.

 

The impact of AI co-founders on the entrepreneurship ecosystem

AI co-founders play a pivotal role in transforming the startup landscape into a more inclusive, efficient environment where human creativity pairs with relentless computational power to drive sustainable growth and broader economic innovation. They significantly contribute to:

     -Democratizing access to entrepreneurship. They lower barriers for solo founders and underrepresented groups, providing expert-level support without the need for large teams or significant funding.

     -Accelerating innovation cycles. AI co-founders enable rapid execution of market research, product roadmaps, and strategy development, reducing weeks of work into minutes and accelerating innovation cycles across industries.

     -Enhancing cost efficiency. These founders foster cost efficiency and lean operations, as they automate repetitive tasks, allowing startups to iterate faster, manage risks through data-driven insights, and achieve quicker time-to-market.

 

Will AI replace human founders?

AI co-founders do not replace human creativity and leadership; instead, they complement them by automating repetitive and resource-intensive tasks. This partnership enables founders to focus on innovation, strategy, and cultivating the company’s culture. Additionally, AI co-founders complement human strengths through:

    -Automating administrative tasks, data analysis, and routine operations, allowing human founders to prioritize high-level strategy, creativity, and vision.

    -Handling operations without burnout, enabling humans to provide empathy, relationship-building, and ethical judgment, ultimately creating a symbiotic dynamic that enhances innovation and decision-making.

    -Enabling solo founders to achieve what once required full teams, but leadership and cultural nuance remain distinctly human.

    -Shifting hiring toward specialized roles by filling skill gaps, with human-AI collaboration yielding higher-quality solutions.

Finally, blending human ingenuity with machine intelligence can create more accessible, efficient, and innovative ecosystems. From democratizing startup formation and accelerating market entry to fostering symbiotic human-AI teams, these virtual partners empower founders to compete globally without traditional barriers. Entrepreneurs who embrace this collaboration will lead sustainable growth, navigating challenges like regulation and ethics to unlock unprecedented economic value.

Al-Abbasi: EdVentures Eyes Saudi Expansion to Empower Regional EdTech Startups

 Shaimaa Ibrahim

 

The education ecosystem in the Arab world is witnessing rapid transformations that are pushing EdTech startups to play a central role in creating solutions capable of bridging skills gaps and improving learning opportunities. At the same time, governments are increasingly adopting broad digital strategies, creating a rising need for entities capable of aligning these ambitions with modern market demands. Within this context, specialized investment firms have become essential contributors to reshaping the learning landscape and supporting the region’s innovation ecosystem.

 

EdVentures, the investment arm of Nahdet Misr Group, is among the most prominent entities that, since its establishment in 2017, has pursued a clear vision to empower EdTech startups. Its efforts have gone beyond supporting digital solutions—it has worked to build an integrated ecosystem encompassing incubation, investment, and mentorship, with the aim of achieving sustainable social impact in the sector.

 

Sharikat Mubasher conducted an interview with Amr El Abassy, General Manager of EdVentures, on the sidelines of his participation in the fourth edition of the HERizon 2025 Summit, organized by Carerha, a leading platform for empowering women and preparing them for the job market in Egypt and the Middle East. The conversation covered EdVentures’ vision, its support programs, its criteria for selecting startups, as well as its strategic outlook on expansion into the Saudi market and the role of technology and artificial intelligence in shaping the future of education in the Gulf and the wider Middle East.

 

To begin, what is the vision on which EdVentures was founded? How do you view your mission in developing the EdTech sector in Egypt and the region?

EdVentures was launched as the investment arm of Nahdet Misr Group—the largest publishing house and educational content provider in the Arab world and Africa—driven by a clear understanding of the absence of startups that could position themselves as meaningful players in the EdTech sector, at a time when fintech solutions dominated the scene.

The company’s vision is centered on empowering startups in the education sector and creating real social impact through knowledge. This is achieved by incubating entrepreneurs, educating them on the nature of the sector, raising awareness about investment opportunities, and helping them build strong, scalable, and sustainable business models.

The journey began with the launch of a business incubator aimed at encouraging new ideas and raising awareness of the importance of investing in educational technology. Later, EdVentures moved toward direct investment in startups to demonstrate the presence of promising opportunities in this sector and to pave the way for further innovation and growth.

 

What is the total number of startups you have supported and invested in? And what is the current combined valuation of these companies?

EdVentures was among the earliest investors supporting a number of EdTech startups in Egypt and the region. It has invested in companies such as ‘eYouth’, which offers mentoring and guidance services in entrepreneurship and has offices in Saudi Arabia and the UAE; ‘Entreprenelle’, which focuses on empowering women in entrepreneurship; ‘OTO’, which specializes in English-language courses and other training; and ‘iSchool’, which provides programming and artificial intelligence education for children aged 6 to 17.

This early investment gave these companies strong credibility in the market and directly helped them attract further funding. It also enabled them to expand into new regional and international markets, strengthening their position and accelerating their growth significantly.

Today, the EdVentures portfolio comprises around 28 startups, with a combined valuation exceeding $200 million. Many of these companies now operate in more than 20 countries, including eYouth, iSchool, and Sprints.

EdVentures has also played an active role in redefining traditional education by offering a comprehensive educational ecosystem that includes professional skills training, employment programs, programming education, artificial intelligence technologies, and specialized medical education.

 

How do you select the startups you support and invest in? What are the main criteria you look for when evaluating a project idea? And do you offer programs specifically supporting women entrepreneurs?

EdVentures focuses solely on a single sector: education. For that reason, we carefully seek out companies capable of understanding real market problems and presenting practical solutions that address the needs of all stakeholders, while also aligning with governmental policies and national education strategies.

Among the most important criteria for founders is having a clear vision for the future of the company and the ability to create both direct and indirect impact through their projects. We also evaluate whether the business idea has the potential to scale, expand, and remain sustainable. We target companies capable of building strategic partnerships with various stakeholders, particularly in B2B and B2G business models.

Regarding women entrepreneurs, about 45% of the companies in the EdVentures portfolio are led by women. Additionally, the company has supported more than 150 startups in the education sector, benefiting more than 6 million learners, nearly half of whom are women—reflecting the company’s strong commitment to empowering women and educational communities across the region.

 

What are EdVentures’ key programs and initiatives for supporting EdTech startups?

The company has launched an integrated suite of programs and initiatives designed to support entrepreneurs and startups in the education sector, in collaboration with local and global partners. EdVentures began with a series of incubation programs in Egypt, most notably a business incubator in partnership with the Academy of Scientific Research, which provides training, mentorship, and expertise to help startups build sustainable business models.

In terms of accelerators, EdVentures offers a program in collaboration with the Mastercard Foundation, launched last year and renewed annually. Each cycle hosts 12 startups at various stages, with special focus on Seed and Pre-Seed companies. The initiative provides a comprehensive six-month support program, during which each startup receives up to $60,000 in funding. The program allows companies to exchange expertise, enhancing their ability to grow and prepare for future investment rounds.

The initiatives also include a joint program with the Challenge Fund for Youth Employment, combining elements of a venture studio and a venture builder to create job opportunities and support startup expansion in Egypt and regional markets.

Finally, EdVentures plans to launch its own ‘Venture Studio’ in 2026 to offer educational content production and podcast services, providing innovative tools to help startups grow and expand their educational and commercial impact across the region.

 

What are EdVentures’ plans for expanding into the Saudi market? What makes the Kingdom a strategic opportunity, and how do you envision your role in supporting its entrepreneurship ecosystem?

The Saudi market is one of the most promising in the region, thanks to its size and the abundance of opportunities that align with Saudi Vision 2030, which focuses primarily on developing student and graduate skills and directly linking them to labor-market needs.

Saudi Arabia is characterized by a strong readiness among institutions and stakeholders to build strategic partnerships with startups, an important incentive that supports the companies in EdVentures’ portfolio and enables them to expand in this dynamic market.

EdVentures’ approach goes beyond offering venture investments; it also provides integrated operational and strategic support to help startups enter new markets and expand their businesses effectively. This combination of funding and strategic guidance—one of EdVentures’ core strengths—enhances its ability to create tangible and sustainable impact for startups in the Saudi market.

 

How does technology contribute to enhancing the growth of startups, and what are your expectations for the future of EdTech in the Gulf and the Middle East?

Technology plays an essential role in enabling startups to scale more efficiently than traditional models, especially after the COVID-19 pandemic, which accelerated the acceptance of digital learning and the adoption of tech-enabled solutions across all learning stages. This shift created major opportunities for startups to offer innovative educational products and reach broader audiences more quickly and effectively.

Rapid advancements in artificial intelligence have also created powerful tools that help startups build stronger, more sustainable business models through performance analytics, personalized content, digital curriculum design, and intelligent assessment tools that accurately measure student progress and provide tailored learning recommendations.

The success of any startup depends on the entrepreneur’s understanding of how to employ technology correctly, ensuring that digital tools and AI are not merely supplementary but strategic assets that support the company’s goals, drive sustainable growth, and create real impact on education quality and learner experience.

 

What are the most effective ways to enhance cooperation among governments, startups, and the private sector to support the EdTech industry in the region?

In recent years, governments have clearly shifted toward integrating entrepreneurship into educational systems, adopting national strategies that increasingly focus on leveraging technology to enhance educational outcomes and align learning with labor-market needs.

Saudi Arabia stands as a prime example of this direction through Vision 2030, which aims to develop youth skills and expand employment opportunities, offering startups the chance to introduce innovative EdTech solutions that directly support these goals.

In addition, ministries of education and communication across the region have launched a continuous stream of initiatives, creating fertile ground for collaboration among different stakeholders. However, the success of these initiatives depends on the ability of startups and the private sector to take the initiative and provide practical, implementable solutions.

Governments possess the necessary resources and infrastructure, while the private sector contributes innovation and execution speed. When these strengths are combined, the EdTech industry can achieve genuine, sustainable growth that serves future generations and amplifies the impact of education across the region.

 

Translated by: Ghada Ismail