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

Dec 3, 2025

 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

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Beyond import: Cultivating world-class fresh produce ecosystem in Saudi Arabia

Noha Gad

 

Saudi Arabia’s agricultural sector contributed $31.5 billion to the Kingdom's gross domestic product (GDP) in 2024, triggered by rising production and initiatives that strengthened food self-sufficiency. According to recent official data from the Ministry of Environment, Water, and Agriculture, total agricultural and food production exceeded 16 million tons in 2024, reflecting progress toward building resilient, sustainable food systems.

Despite almost 90% of the country being desert, Saudi Arabia is undergoing a remarkable transformation, actively expanding domestic crop production and reducing reliance on imports, cultivating a future where fresh, locally-grown produce is a cornerstone of its economy and food security. This shift is central to the ambitious goals of Saudi Vision 2030, which prioritizes self-sufficiency and economic diversification.

Historically dependent on imports to meet its population's needs, the Kingdom now views its fresh produce sector as a strategic priority. According to figures published by the General Authority for Statistics (GASTAT), total imports of crops in the Kingdom reached 18.7 million in 2024, an increase of 10.8% compared to 2023. Additionally, the cultivated area of open-field vegetables reached 89,700 hectares, with a production volume of 2.7 million tons in 2024, marking an increase of 8.4% compared to 2023. 

Evolving landscape of Saudi fresh produce

The structure of Saudi Arabia's fresh produce market is experiencing a fundamental change, transitioning from a model of heavy import reliance to one of strategic local empowerment. For many years, the majority of fruits and vegetables consumed within the Kingdom were imported from global sources. Guided by the objectives of the National Agriculture Strategy, this sector is shifting as substantial public and private investments target a significant increase in domestic production capacity.

Saudi Arabia is emerging as a surprising leader in advanced agricultural technologies, moving decisively beyond water-intensive practices toward a model defined by precision, control, and data-driven intelligence. From vast, climate-controlled greenhouses to sophisticated vertical farms, the nation is redefining what is possible in desert agriculture. At the heart of this agricultural revolution is the strategic adoption of cutting-edge technologies. Innovations in controlled environments, automation, and water conservation are building a resilient foundation for growth. Crucially, Artificial Intelligence (AI) is now being deployed as the central nervous system of this modern sector, optimizing every aspect from seed to harvest.

Key technologies bolstering the industry

Today, the Saudi fresh produce sector is enabled by various advanced technologies that contribute to creating optimal growing conditions while conserving water resources. These technologies include:

  • Controlled Environment Agriculture (CEA). Structures such as high-tech greenhouses and indoor vertical farms use automated systems to precisely manage temperature, humidity, light, and carbon dioxide levels. Within them, advanced irrigation and fertigation systems, such as automated drip networks, deliver water and nutrients directly to plant roots. This method eliminates waste and provides crops with an ideal, consistent climate year-round, independent of the harsh external desert conditions.
  • Smart water management. Systems employing sophisticated sensor networks can monitor real-time soil and plant moisture data. Also, advanced wastewater treatment and recycling technologies are becoming standard, ensuring that every drop is used multiple times within a closed-loop system to maximize conservation.
  • Automation and Robotics. They play a pivotal role in increasing the scale and precision of farming operations. From automated seeding and planting robots to autonomous drones that scout fields for pests, technology is handling repetitive and labor-intensive tasks. Additionally, post-harvest, automated optical sorters and packing lines use sensors to grade produce by size, color, and quality at high speed.

 

Main applications of AI in the fresh produce industry

Along with the previously mentioned technologies, AI emerged as the central intelligence that optimizes them all. By processing vast amounts of data from sensors, drones, and satellites, AI algorithms generate actionable insights, moving the sector from reactive management to proactive decision-making. Key applications of AI include:

  • Predictive analytics and precision farming. AI models analyze historical climate data, real-time sensor readings, and plant physiology to forecast optimal growing conditions. AI-powered computer vision by drones and cameras captures detailed imagery, which AI software scans to detect early signs of disease, pest infestation, or nutrient deficiencies.
  • Smart automation and resource optimization. Machine learning algorithms dynamically adjust irrigation schedules and nutrient delivery in real-time based on plant needs and evaporative demand, achieving unprecedented water and fertilizer efficiency. 
  • Supply chain and post-harvest processes. AI can predict market demand fluctuations, helping to align harvest schedules with pricing trends and reduce waste. In packing facilities, AI-powered vision systems perform consistent, high-speed grading and sorting, ensuring only produce meeting strict quality standards proceeds.

 

Despite significant technological progress, the growth of Saudi Arabia's high-tech fresh produce sector faces different challenges. The initial capital investment required for advanced greenhouses, AI systems, and automation remains substantial, potentially limiting access for smaller-scale farmers. Additionally, the energy demands of controlled environment agriculture, particularly for cooling and lighting, present an ongoing operational cost and sustainability consideration. Success also depends on developing a skilled local workforce with expertise in data science, agronomy, and tech maintenance, requiring continued investment in specialized education and training programs.

Finally, Saudi Arabia’s fresh produce sector reflects a broader national transformation under Vision 2030. By strategically deploying controlled-environment agriculture, precision water management, and intelligent automation, the Kingdom has turned its agricultural challenges into a catalyst for innovation. Harnessing cutting-edge technology and forward-thinking policy will enable the Kingdom to secure its food future while contributing to a more sustainable and innovative model of agriculture.

Digital Loyalty Platforms Connecting Brands and Customers

Ghada Ismail

 

In Saudi Arabia, where digital adoption is accelerating at record speed and competition across retail, food, fintech, and lifestyle services is intensifying, loyalty is no longer about occasional discounts or plastic cards tucked into a wallet. It is becoming a strategic, data‑driven layer that sits at the heart of how brands engage, retain, and grow their customer base.

Today’s digital loyalty platforms are reshaping the relationship between brands and customers in the Kingdom. Built for mobile-first consumers and powered by real-time data, these platforms move beyond transactional rewards to create ongoing, personalized engagement. From coalition loyalty wallets and restaurant‑focused aggregators to fintech‑embedded cashback systems, Saudi startups are redefining what loyalty looks like in a digitally native economy.

 

Loyalty in a Cashless, Mobile‑First Economy

Saudi Arabia’s push toward a cashless society under Vision 2030 has created fertile ground for loyalty innovation. As digital payments, e-commerce, and app-based services become part of everyday life, consumers expect seamless experiences across touchpoints, including how they earn and redeem rewards. Loyalty has shifted from being a marketing afterthought to a core product feature, closely tied to payments, data analytics, and customer experience design.

Market research indicates that the Saudi loyalty programs sector is expanding rapidly, driven by increased smartphone penetration, widespread adoption of digital wallets, and rising demand for personalized offers. Brands are recognizing that acquiring new customers is expensive, while retaining existing ones through meaningful engagement delivers far greater long-term value. In this environment, digital loyalty platforms act as connective tissue, linking brands and customers through continuous, value-based interactions.

 

From Fragmented Programs to Unified Loyalty Ecosystems

One of the long-standing pain points for consumers has been fragmentation. Customers often find themselves juggling multiple loyalty apps, cards, and point systems, many of which offer limited value or cumbersome redemption processes. Saudi startup WalaOne emerged to tackle this problem by introducing a coalition‑based digital loyalty wallet that aggregates rewards from multiple merchants into a single platform.

Rather than forcing users to manage separate programs, WalaOne allows customers to earn and store points from a wide network of participating brands in one place. These points can then be redeemed across different categories, including retail, dining, travel, and services. For consumers, the value lies in simplicity and flexibility. For merchants, the benefit is access to a broader ecosystem that encourages cross‑brand engagement and repeat spending.

What makes this model particularly relevant to Saudi Arabia is its scalability. Small and medium-sized businesses, which often lack the resources to build proprietary loyalty systems, can plug into an existing network and immediately offer competitive rewards. Strategic partnerships with payment infrastructure providers have further strengthened this approach, enabling loyalty features to be embedded directly into checkout and payment flows rather than treated as standalone programs.

 

Reinventing Restaurant Loyalty Through Aggregation

The food and beverage sector is one of the most competitive in the Saudi market, especially in urban centers such as Riyadh and Jeddah. Despite this, a relatively small percentage of restaurants operate structured loyalty programs, often due to cost, technical complexity, or lack of data insights. This gap has opened the door for startups like Mithu, which is focused on building a unified loyalty platform tailored specifically for restaurants and cafes.

Mithu’s proposition is built around aggregation and engagement. Instead of individual restaurants running isolated programs, customers use a single app to collect rewards across multiple dining venues. The platform incorporates gamification elements and personalized offers, encouraging users to return more frequently and explore new brands within the network.

For restaurant operators, Mithu offers more than just a loyalty tool. It provides access to customer behavior data, enabling businesses to understand visit frequency, spending patterns, and preferences. This insight allows restaurants to design smarter promotions and reward structures that go beyond blanket discounts. In a sector where margins are tight and competition is fierce, data-driven loyalty can become a powerful lever for sustainable growth.

 

Aviation Loyalty Goes Digital: AlFursan as a National Ecosystem

Beyond retail and fintech, Saudi Arabia’s aviation sector offers one of the most mature examples of how loyalty programs can evolve into full-fledged digital ecosystems. Saudia’s AlFursan loyalty program stands out as a benchmark in the local market, illustrating how loyalty can extend far beyond frequent-flyer miles.

Originally designed to reward air travel, AlFursan has expanded into a multi-partner, lifestyle-driven platform that allows members to earn and redeem miles across a wide network of partners, including hotels, car rental companies, retail brands, banks, and telecom operators. This shift has effectively positioned AlFursan as a coalition loyalty program that connects travel with everyday spending.

Crucially, AlFursan’s digital-first approach reflects changing consumer expectations. Members manage their accounts, track miles, and redeem rewards through digital channels, while partnerships with banks and payment providers enable miles to be earned through card spending rather than flights alone. This integration transforms loyalty from an occasional travel perk into a continuous engagement tool that remains relevant even when customers are not flying.

From a strategic perspective, AlFursan demonstrates how loyalty programs can serve as national-scale engagement platforms. By anchoring the ecosystem around a trusted national carrier, the program reinforces brand affinity while driving value across multiple sectors. For Saudi consumers, this means loyalty that aligns with lifestyle and mobility. For partner brands, it offers access to a highly engaged customer base with strong spending power. For customers, rewards feel effortless, earned automatically as part of daily spending. For merchants, fintech-linked loyalty programs drive higher transaction volumes and repeat visits without requiring separate systems.

This convergence of payments and loyalty is particularly powerful in a market like Saudi Arabia, where regulators and policymakers are actively encouraging digital financial adoption. As fintech platforms collect richer transaction data, they can personalize offers with greater precision, matching rewards to individual spending habits and preferences.

 

Data, Personalization, and the Experience Economy

At the core of modern loyalty platforms lies data. Saudi consumers are increasingly receptive to personalized experiences, provided they deliver clear value and respect privacy expectations. Digital loyalty platforms analyze transaction histories, visit frequency, and engagement patterns to tailor rewards that feel relevant rather than generic.

This shift reflects a broader move toward the experience economy. Instead of simply offering points or discounts, brands are using loyalty platforms to unlock exclusive access, priority services, and curated experiences. Whether it is early access to product launches, special dining events, or premium customer support, loyalty is becoming a way to deepen emotional connections rather than just incentivize purchases.

Cross‑sector partnerships are also gaining momentum. Coalition programs that link retail, travel, entertainment, and financial services allow loyalty points to travel with customers across different aspects of their lifestyle. This interconnected approach increases the perceived value of rewards and encourages customers to remain within a broader brand ecosystem.

 

Challenges Facing Digital Loyalty Platforms

Despite strong momentum, digital loyalty platforms in Saudi Arabia face several challenges. Data privacy and cybersecurity remain top priorities, particularly as platforms integrate with payment systems and collect sensitive customer information. Building trust is essential, and platforms must demonstrate transparency in how data is used and protected.

Another challenge lies in differentiation. As more brands adopt digital loyalty tools, customers may experience fatigue if programs fail to offer genuine value. Platforms must continuously innovate, using insights and technology to keep engagement fresh and meaningful. For merchants, aligning loyalty strategies with broader business objectives — rather than treating them as isolated marketing campaigns — is critical to long-term success.

Regulatory compliance also plays a role. As loyalty platforms intersect with fintech, data governance, and consumer protection frameworks, startups must navigate a complex regulatory landscape while scaling their solutions.

 

Loyalty as Strategic Infrastructure

What is increasingly clear is that loyalty in Saudi Arabia is evolving into strategic infrastructure rather than a tactical add-on. Digital loyalty platforms sit at the intersection of commerce, payments, and customer experience, shaping how brands interact with consumers over time. For startups, this presents a significant opportunity to build scalable, platform-driven businesses that serve both sides of the market.

As competition intensifies across sectors, brands that invest in thoughtful, data-driven loyalty strategies will be better positioned to retain customers and increase lifetime value. Platforms that succeed will be those that simplify experiences, respect consumer trust, and continuously adapt to changing expectations.

 

Conclusion

Digital loyalty platforms are redefining the rules of engagement in Saudi Arabia’s rapidly digitizing economy. Through unified wallets, sector-specific aggregators, and fintech‑embedded rewards, startups are transforming loyalty from a passive benefit into an active relationship-building tool.

For consumers, the future of loyalty promises simplicity, relevance, and real value. For brands, it offers deeper insight, stronger retention, and a more sustainable path to growth. As Saudi Arabia continues its journey toward a fully digital economy, loyalty platforms will play a central role in connecting brands and customers, not through points alone but through experiences that keep them coming back.

Why Capital Efficiency Is Becoming a Startup Survival Skill

Ghada Ismail 

 

In the startup world, money isn’t just a tool—it’s the thing that keeps the whole idea alive. You can have a great product, a strong team, and a big vision, but without capital, even the best plans can stall.

The tricky part is that raising money is only the beginning. The real challenge is using that money in a way that builds something lasting, not just something that looks impressive for a short time.

That’s what capital efficiency is all about. It’s the ability to turn every Riyal into real progress—better products, stronger customer loyalty, and steady, sustainable growth. It’s the difference between a startup that grows with purpose and one that grows by luck.

 

Why Capital Efficiency Matters

A lot of startups chase fast growth because it feels exciting and looks good. But growth that isn’t built on solid foundations is like sprinting on a treadmill—you’re moving fast, but you’re not actually getting anywhere.

Capital efficiency matters because it:

  • Gives you more runway and more time to figure things out
  • Helps you build a business that can survive tougher times
  • Keeps your focus on real, long-term progress instead of short bursts
  • Makes your startup more attractive to investors who want stability, not just hype

 

Capital Efficiency Is Not About Being Cheap

A common misconception is that being capital-efficient means being overly cautious or stingy. That’s not the case.

Capital-efficient startups are willing to spend money. They just spend it in a way that actually creates value.

They think carefully about questions like:

  • What investment will bring customers who stick around?
  • Which expenses directly improve the product or experience?
  • Which costs will help us grow in a way that lasts?

 

The Real Measure: Value Over Cost

Capital efficiency is really about one simple idea:

How much value does each Riyal create?

If spending money leads to more users, better retention, a stronger product, or higher revenue, then it’s worth it. If it doesn’t, then it’s not efficient—no matter how impressive the growth looks.

 

What Capital-Efficient Startups Do Differently

Capital-efficient startups tend to follow a few clear habits:

  • They focus on one or two growth channels instead of trying everything
  • They build a product that keeps customers coming back instead of relying on constant marketing
  • They invest in systems that scale instead of quick fixes
  • They avoid hiring too early until the need is clear

This doesn’t mean they move slowly. It means they move intentionally.

 

Examples That Make It Clear

A Strong Example

A startup invests in improving the product and customer support. Growth may start slow, but the customers that do join stay longer. When growth picks up, it’s stable and sustainable.

A Weak Example

A startup spends heavily on ads and discounts to attract users. Growth looks fast, but users leave as soon as the promotions end. The numbers look good for a moment, but they don’t last.

Both startups may grow, but only the first one is truly capital-efficient.

 

Common Mistakes That Destroy Capital Efficiency

Many startups don’t fail because they lack ideas. They fail because they spend money in the wrong places.

Common mistakes include:

  • Chasing quick growth while neglecting product quality
  • Hiring too early before there’s a clear need
  • Investing heavily in marketing before finding product-market fit
  • Focusing only on acquiring customers, not keeping them

These mistakes can make a startup look alive while it’s actually burning through its resources.

 

Wrapping Things Up…

Capital efficiency is about building real progress through intentional spending. It’s not about cutting costs or being overly cautious—it’s about making every Riyal count.

For startups, capital efficiency is more than a financial measure. It’s the difference between a business that barely survives and a business that lasts.

How ETFs help investors build smarter, modern portfolios

Noha Gad

 

In today’s fast-paced financial world, investors seek tools that balance accessibility, diversification, and cost-efficiency. This quest propelled the Exchange-Traded Funds (ETFs) from a novel idea into a cornerstone of contemporary investing. ETFs elegantly solve this puzzle, offering a one-stop solution that bridges the gap between sophisticated strategy and everyday execution.

Similar to mutual funds, ETFs pool money from many investors and invest in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. However, ETFs can sometimes be more tax-efficient than mutual funds. In ETFs, investors buy and sell ETF shares on national securities exchanges at market prices. 

 

What is an Exchange-Traded Fund (ETF)?

Exchange-traded funds (ETFs) are investment funds that hold several underlying assets. They can be bought and sold on an exchange, much like an individual stock. They can be structured to track anything from the price of a commodity to a large and diverse collection of stocks, even specific investment strategies.

The combined holdings of the ETF are known as its portfolio, which is usually managed by a registered investment adviser. Each ETF share represents an investor’s part ownership of the ETF’s portfolio and the income the portfolio generates.

An ETF can own hundreds of securities across various industries, or it can be dedicated to one particular industry or sector, such as the technology sector.

 

Types of ETFs

Various types of ETFs can be used for income generation, capital growth, or to mitigate risk in a portfolio. This includes:

       - Equity ETFs. Also known as passive ETFs, this type comprises a basket of stocks and aims to replicate the performance of the broader equity market or a specific sector or trend. 

       - Bond ETFS. They provide regular income to investors and do not have a maturity date. Their income distribution depends on the performance of underlying bonds. Distribution in bond ETFs depends on the performance of underlying bonds, which may include government, corporate, and state and local bonds, usually called municipal bonds.

       - Industry or sector ETFs. They focus on a specific sector or industry. They provide diversified exposure to a single industry, one that includes high performers and new entrants with growth potential.

       - Commodity ETFs. This type focuses on investing in commodities, such as crude oil or gold. They can diversify a portfolio, making it easier to hedge downturns.

       - Currency ETFs. They track the performance of currency pairs, consisting of domestic and foreign currencies. Some investors use these ETFs to diversify a portfolio, while importers and exporters use them to hedge against volatility in currency markets.

       - Inverse ETFs. These funds earn gains from stock declines without having short stocks.

       - Leveraged ETFs. A leveraged ETF seeks to return multiples (e.g., 2× or 3×) on the return of the underlying investments. These products use debt and derivatives, such as options or futures contracts, to leverage their returns.

 

The goal of each ETF is to replicate its index as closely and cost-effectively as possible. There are two types of replications: physical and synthetic. Physical replication is the classic method of replicating an index. If the ETF directly holds all securities of the index, this is known as full replication. However, full replication is not always possible. Meanwhile, synthetic replication allows ETF investors to invest in new markets and asset classes. A synthetic ETF tracks a benchmark index using derivatives and swap agreements rather than owning the underlying securities.

 

Pros and cons of ETFs

ETFs offer a powerful combination of benefits that align with modern investment goals:

 

      - Exposure to many stocks across various industries.

      - Low expense ratios and commissions.

      - Risk management through diversification.

      - Can focus on targeted industries or commodities.

      - Can be bought and sold easily via any cost-effective online broker.

 

While powerful, ETFs are not a perfect solution. Smart investors are aware of these nuances:

      - Diversification illusions: A niche ETF or single-industry-focused ETF may concentrate risk rather than spread it. True diversification often requires a broader portfolio.

      - Fee variability: While most are low-cost, some actively managed or complex strategy ETFs carry higher fees that can erode returns.

      - Liquidity risks: Lesser-traded ETFs can have wide "bid-ask spreads," making transactions more costly, and may be difficult to sell quickly at a fair price.

Finally, ETFs provide a versatile solution for investors at every level by offering a unique blend of stock-like tradability and mutual fund-like diversification. Their inherent advantages, including low costs, transparency, and flexibility, make them an exceptionally efficient vehicle for executing both simple and sophisticated investment plans. By leveraging their advantages while respecting their limitations, investors can harness the full potential of ETFs to build a more resilient and efficient path to their financial future.

Young Saudi Founders Making Global Impact Before 30

Ghada Ismail

 

Not long ago, Saudi success stories followed a familiar script: corporate boardrooms, government corridors, and decades-long career climbs. Today, that script is being rewritten, sometimes before the ink on a university degree has even dried. Across Riyadh, Jeddah, and Dhahran, Saudi founders are launching startups that scale faster than their age, exporting ideas and landing on global radars before they turn 30.

This new generation of entrepreneurs is not waiting for permission, legacy, or perfect conditions. Armed with code, climate tech, AI models, and creative IP, young Saudis are building companies that speak the language of international markets while remaining rooted in local ambition. Their rise reflects more than personal success stories; it signals a structural shift in how the Kingdom produces innovation, competes globally, and defines leadership in the post-oil era.

As Saudi Arabia’s youth-heavy population meets unprecedented access to capital, infrastructure, and global networks, the result is a cohort of founders who are thinking borderless from day one. These under-30 entrepreneurs are proving that global impact is no longer something Saudi startups grow into; it’s something they are born with.

The Kingdom’s startup ecosystem now boasts thousands of youth-led enterprises in technology, climate action, education, health, and lifestyle sectors. Young Saudis are not merely starting businesses; they are building scalable ventures that resonate regionally and internationally, backed by investors, accelerators, and recognition on platforms like Forbes Middle East’s annual 30 Under 30 list. 

In this feature, we explore the journeys of several of these founders under 30, understanding how they navigate systemic challenges, leverage global trends, and create meaningful impact, both for Saudi Arabia’s innovation ecosystem and on the world stage.

 

Redefining Education with AI: AILA

At just 23 and 22, Yousef Alsayed and Abdulaziz Bin Mugayel have reimagined learning through ‘AILA’, an AI-driven education platform designed to tailor learning paths to individual student needs. Founded in June 2023 while both were still youthful visionaries, AILA uses artificial intelligence to assess students’ strengths, preferences, and pace, delivering personalized quizzes, lessons, and insights while easing administrative burdens for teachers. 

Their impact has been rapid: AILA now supports 26,000 students in Saudi institutions and an additional 15,000 learners in Central Asia, after securing $1.15 million in pre-seed funding from regional venture funds and angels at a valuation of $5.5 million. 
In a recent post on social media, Abdulaziz reflected on their startup’s evolution from “just an idea” to a solution affecting thousands; a reminder of how youthful ambition, when matched with execution, can scale across borders. 

Beyond numbers, their story underscores the potential for Saudi-built AI solutions to contribute to global education challenges — from personalized learning to reduced dropout rates — while showing how young founders can attract capital and adoption beyond domestic markets.

 

Cultivating Sustainability: NABATIK

Few narratives capture the blend of social mission and technological ingenuity as powerfully as that of Mohammed Alkhalid, founder of ‘NABATIK’. What began with the simple childhood memory of planting a sapling in a barren over the years has grown into a climate-tech startup dedicated to affordable, technology-enabled reforestation. 

NABATIK’s platform links corporates and individuals with nurseries and logistics frameworks that enable tree planting across the Kingdom, incentivizing action toward carbon offset goals. Its model turns environmental stewardship into verifiable impact — something increasingly vital as global climate objectives stress measurable outcomes. 

Alkhalid’s work resonated with global institutions; early in his career, he was recognized among the UN Environment Programme’s Young Champions of the Earth, an honor that signals international recognition of his environmental leadership before age 30. 

His story highlights a broader truth: young Saudi founders are not restricted to app development and fintech but are pioneering climate solutions that align with worldwide sustainability commitments.

 

KAUST Innovators

Institutions like King Abdullah University of Science and Technology (KAUST) have become fertile ground for young innovators whose work straddles scientific research and practical application. In the 2025 Forbes Middle East 30 Under 30 cohort alone, multiple KAUST students and alumni were recognized across science and technology categories. 

Among them:

  • Aljawharah Alsharif, a Ph.D. candidate developing wearable health-monitoring technologies that can capture physiological signals without skin irritation, which is considered a breakthrough in long-term remote patient monitoring. 
  • Esraa Fakeih, co-founder of ‘Gees’, a femtech venture developing a handheld saliva-based hormonal tracking device to help women manage conditions like PCOS at home. 
  • Yousef Algoos, innovating ultra-miniaturized MEMS (micro-electro-mechanical systems) for real-time impact detection in wearables like helmets and smart glasses — technology with potential applications in sports safety and occupational health. 

These founders illustrate how Saudi talent fostered in scientific environments can transform research excellence into startups targeting global markets, particularly in health, diagnostics, and wearable tech.

 

Culture, Creativity, and Beyond: Molham and the Creative Economy

The entrepreneurial wave isn’t limited to tech and environment — it extends to creative industries where Saudi youth are forging global cultural footprints. Molham Krayem, known simply as Molham, is a Saudi musician who has also grown into a business leader as the founder and CEO of Beyond Group, a creative venture builder behind brands like Sand Circus and MELT London. 

Recognized on Forbes Middle East’s 30 Under 30 for blending artistry with entrepreneurship, Molham exemplifies how creative talent can transcend cultural production and evolve into global entrepreneurial success. 

His journey speaks to a broader trend that Saudi youth are building ventures that cultivate cultural export alongside economic value, positioning the Kingdom as a contributor to global pop culture and creative sectors.

 

The Ecosystem Behind the Success

These success stories emerge within a rapidly evolving support system in Saudi Arabia. According to a recent report issued by the Saudi Gazette, citing the Ministry of Commerce, the number of commercial registrations held by young Saudis of both genders has surpassed 474,000, accounting for 38% of all active commercial records in Saudi Arabia as of the end of Q2 2025, with sectors like app development, artificial intelligence, and e-gaming experiencing strong growth. 

Meanwhile, Public-private partnerships, accelerators, and training programs are increasingly filling gaps that once hindered startups, from regulatory navigation to hands-on mentorship and access to international networks. Initiatives aligned with Vision 2030 are systematically equipping young entrepreneurs with digital, managerial, and leadership skills necessary for competing globally. 

Yet, despite this momentum, challenges persist. Scaling internationally requires not just a strong product but understanding foreign regulatory landscapes, building global trust, and navigating funding ecosystems where competition is intense. For many founders, striking that balance between domestic roots and global ambition requires resilience, community support, and a willingness to iterate rapidly in the face of obstacles.

 

Navigating Challenges and Scaling Beyond Borders

For young Saudi founders, scaling globally entails confronting unique challenges:

  • Access to capital beyond early-stage funding can be limited, pushing founders to forge strategic partnerships, attract international investors, or bootstrap until traction is proven.
  • Talent acquisition in specialized fields like AI or biotech means competing with established hubs in the U.S., Europe, and Asia — urging Saudi startups to cultivate local talent while remaining globally competitive.
  • Regulatory alignment across borders calls for flexible business models and legal frameworks that anticipate international compliance, something many young founders navigate with guidance from global advisers.

But these challenges are also catalysts. Many founders pivot their offerings based on local needs first — building products that resonate globally because they solve universally relevant problems.

 

Impact Beyond Business: Ecosystem and Society

The significance of these young founders extends beyond money and valuations. They serve as role models, encouraging peers to experiment with risk, reimagining career horizons beyond traditional paths. Their achievements encourage educational institutions to integrate entrepreneurship into curricula, and investors to view Saudi talent as globally competitive.

Moreover, youth-led ventures contribute to employment, inspire innovation clusters, and diversify economic narratives once dominated by oil and government contracts. Each success feeds a virtuous cycle: raising visibility, attracting capital, and reinforcing the message that talent — when harnessed — can compete on the world stage.

 

Conclusion: A Generation in Motion

The stories of AILA’s educational transformation, NABATIK’s environmental innovation, KAUST’s scientific pioneers, and Molham’s cultural entrepreneurship illustrate a broader shift. A generation once viewed as a domestic workforce is now a cohort of global changemakers disrupting industries, building scalable ventures, and representing Saudi Arabia in conversations about the future of innovation, sustainability, and culture.

Under 30, yet increasingly on the global stage, these founders embody what the next decade could bring: a Saudi entrepreneurial ecosystem that not only contributes to Vision 2030 but also reshapes global markets in meaningful, lasting ways.