Ghada Ismail 

Open banking is emerging as a key force in reshaping financial services across the Middle East, moving beyond regulation to become an enabler of innovation. At the forefront of this shift is Spare, a Saudi-headquartered fintech, offering account-to-account payments that are faster, more secure, and more cost-efficient than traditional card networks.

With a mission to democratize access to financial infrastructure, Spare is building seamless rails for enterprises, SMEs, and fintechs, unlocking new use cases powered by instant settlements and real-time data. By working closely with regulators and businesses, the company is helping to address adoption challenges while setting the foundation for open banking to transform industries across the region.

In this interview, we explore how Spare is driving this change, what sets its model apart, and where open banking in the Middle East is headed next.

Can you walk us through Spare’s mission and how you’re redefining open banking payments in the GCC and MENA?

Spare’s mission is to democratise access to financial infrastructure to enable growth for innovative companies that want to build world-class products for their customers using a secure, seamless, and transparent connectivity that is compliant with regulatory guidelines. We’re redefining Open Banking by making payments more accessible for businesses of all sizes, giving them access to rails that are cheaper, more secure, and above all, faster. Open Banking payments will be a game changer, as they allow businesses to access liquidity far quicker than traditional legacy systems, enabling them to grow and operate more efficiently.

How does Spare differentiate itself from traditional payment gateways, and what value does your open banking model bring to fintech and enterprise customers?

At Spare, we connect directly to banks. When it comes to payments, we move money directly from account to account, avoiding intermediaries such as card networks, which means faster settlement and lower fees. For fintechs and enterprises, we unlock real-time payments, better margins, and new customer experiences with use cases such as easy-to-set-up recurring payments and refunds. This marks a significant improvement for many businesses, particularly SMEs. Lower transaction fees combined with instant settlement not only reduce costs but also enhance financial transparency and cash flow visibility.

How does Spare ensure regulatory compliance and data security in different markets, including Saudi Arabia?

At Spare, we work closely with regulators in each market and follow local licensing frameworks. On security, all customer data is encrypted, and we meet banking-grade standards for authentication and access. In Saudi Arabia, we comply with SAMA regulations, and all our data centers are based in the kingdom. In addition, in the UAE, we received an In Principle Approval, allowing us to conduct Open Finance activities under CBUAE’s regulated framework.
 

Which fields—like SME payments, lending platforms, or BNPL—are responding most to your open banking tools in the region?

We see strong pull from SMEs who need cheaper, faster collections, and from BNPL and lending players who rely on instant account verification and payouts.  There is also significant interest from lenders and microfinance companies in the rich banking data and credit risk assessment tools we provide.
 

What have been some of the biggest friction points businesses face when adopting open banking payments, and how does Spare help overcome them?

 Many businesses are concerned about customer adoption and the complexity of bank integrations. We solve this with a simple API and a user flow that feels as easy as card checkout.  We also support our partners with creating simple bank integration journeys and with educational material and content that they can equip their teams to educate customers and build trust.  Moreover, we believe the first wave of Open Banking payments adoption will come from the B2B space. Open banking offers powerful capabilities that directly address B2B needs, such as invoice payments, bulk disbursements, and recurring transactions. As with any new payment scheme introduced to consumers, widespread adoption will take time, but the foundation being built today will unlock significant efficiencies for businesses tomorrow.

What’s your roadmap for geographic expansion?
We’re focused on deepening our footprint in the region first - we’re headquartered in KSA, licensed in Bahrain, and recently received our IPA in the UAE. We’re also working on Kuwait and Oman, as they have recently released their open banking frameworks.
 

As open banking matures in the Middle East, what additional services or products is Spare exploring next?

Open banking in the region is still at its starting stages, so there’s much more to come. We’re looking at value-added services on top of payments: smarter payouts, recurring billing, data-driven credit, and insights that help with underwriting and personalized offers. Open finance is also on the horizon, and that’s an exciting next step.
 

What do you believe is the biggest misconception about open banking in the MENA region, and how is Spare helping shift that perception?

A big misconception is that open banking is only for banks and fintechs. In reality, it can transform many industries. E-commerce, healthcare, and real estate can all benefit from instant access to financial data and customer insights. At Spare, we show businesses that open banking is a foundation for innovation across the economy, not just financial services.

Noha Gad

In today’s world, the way people manage money and investments not only impacts financial returns but also has profound effects on the environment and society. Sustainable finance is an approach that recognizes this connection by integrating environmental, social, and governance (ESG) standards into financial decisions. 

The ESG standards offer a framework for evaluating how companies and investments perform in these critical areas: environmental responsibility, social impact, and governance transparency. They help investors understand the broader risks and opportunities that traditional financial metrics might miss.

Sustainable finance plays a pivotal role in advancing ESG principles by directing capital toward initiatives that promote long-term sustainability and responsible growth. This approach is crucial for addressing global challenges, notably climate change and social inequality.

Green finance, which is a key component of sustainable finance, focuses specifically on funding environmentally beneficial projects, including investments in renewable energy, energy efficiency, pollution control, water management, and biodiversity preservation. Instruments such as green bonds and sustainability-linked loans are common tools used to mobilize capital for these purposes.

Ultimately, sustainable and green finance aim to rebuild financial systems to serve society and the planet in a better way, directing investments into activities that align with sustainability goals and support the transition to a low-carbon, equitable economy.

How does sustainable and green finance support 3?

Integrating ESG criteria into investment and financing decisions ensures that the capital is allocated to projects and companies that demonstrate responsible practices aligned with ESG principles. This integration helps drive positive environmental outcomes, social inclusion, and transparent governance. For instance, green finance channels funds into renewable energy, energy efficiency, and ecosystem conservation projects that directly address the environmental goals of ESG.

Financial instruments like green bonds and ESG-linked loans were designed to link funding conditions to ESG performance, incentivizing companies to improve their sustainability practices.

Benefits of integrating sustainable finance with ESG standards

Integrating sustainable finance with ESG standards brings significant benefits to businesses, investors, and society. This includes: 

*Lower operational costs and improved efficiency.

*Enhanced risk management.

*High stock market performance.

*Strong employee engagement.

*Improved brand reputation.

*Compliance with regulations.

Although the integration of sustainable finance into ESG standards offers various advantages, it faces different challenges, notably:

• Changing regulatory landscape: Financial institutions face a rapidly shifting regulatory environment with new rules emerging globally. Navigating these evolving requirements demands agility and continuous adaptation.
• Risk of greenwashing: misleading sustainability claims, known as greenwashing, impose major challenges that affect transparency and lead to mislabeling of funds as sustainable without sufficient backing.
• Fragmented standards: The absence of globally accepted ESG and green finance standards creates confusion and complicates compliance.
• High compliance costs: Meeting enhanced ESG disclosure requirements can be expensive and resource-intensive, particularly for smaller firms.
• Data quality and transparency issues: Reliable and standardized ESG data remain rare. This makes it difficult for investors to assess sustainability credibly.

Sustainable and green finance are expected to witness significant growth in the future, triggered by evolving regulatory frameworks and innovation. The global sustainable finance market is projected to expand rapidly, with assets under management (AUM) anticipated to rise substantially in the next few years. This growth will be triggered by increasing investor demand for ESG-aligned products and the widespread awareness of the importance of integrating sustainability for long-term financial performance and risk management.

Innovative financial instruments, such as sustainability-linked loans, green bonds, climate-linked derivatives, and voluntary carbon credits, are emerging to realize various sustainability goals. Technology is playing a transformative role, with advances in artificial intelligence and blockchain enhancing transparency, data accuracy, and efficiency in ESG reporting and sustainable asset issuance.

Overall, the sustainable finance ecosystem is expected to become more advanced and integrated, driving a global transition toward a resilient, low-carbon, and equitable economy. Strategic adaptation to these trends will be pivotal for investors, companies, and policymakers aiming to capitalize on opportunities while addressing pressing environmental and social challenges.

Kholoud Hussein 

New playbook

Venture capital in Saudi Arabia is being fundamentally rewired by artificial intelligence. What once was a search for disruptive apps and platforms is now a race to fund companies that can build and defend algorithmic moats. Investors are no longer content with “AI-enabled” features bolted onto legacy models; they are chasing startups whose entire business logic is inseparable from data and AI. This shift is already visible in the numbers: according to MAGNiTT, Saudi Arabia attracted $860 million in venture funding in the first half of 2025, a 116% year-on-year jump, with deal counts up 31%. For the first time, Saudi matched the UAE as the region’s top investment destination during a half-year period. That momentum stands out against a global backdrop of caution in venture capital, underscoring that Saudi’s bet on AI-first entrepreneurship is not a marginal play—it is becoming central to the Kingdom’s economic diversification strategy.

Government policy has been crucial in shaping this trajectory. At LEAP 2025, Riyadh announced $14.9 billion worth of AI-related investments, ranging from hyperscale data centers to startup support funds. As Minister of Communications and Information Technology Abdullah Al-Swaha remarked at the event, “Our goal is not just to adopt AI technologies, but to produce them, to export solutions from Saudi Arabia to the world.” He highlighted that the local digital workforce had grown from 150,000 in 2021 to 381,000 in 2024, reflecting how the Kingdom has quickly built a foundation of talent that AI startups can tap into. This expansion in skills gives confidence to investors that early-stage ventures can scale without relying entirely on imported expertise.

Data over markets

Artificial intelligence has altered the very metrics that Saudi venture capitalists use to evaluate opportunities. Instead of relying on traditional total addressable market (TAM) models, investors are now considering what some describe as the “trainable addressable market.” This perspective asks: given Saudi regulations, data residency rules, and ethical frameworks, how much usable data can a startup access, label, and train on? The size of that trainable set directly affects how far a company’s model can improve and thus how much value it can capture.

Business owners in fintech, healthtech, and logistics confirm this shift. A Riyadh-based founder in digital health explained, “When we speak with VCs now, they don’t just ask how many clinics or patients we could serve. They ask how many hours of labeled diagnostic data we own, what our annotation process looks like, and how quickly our model improves with new inputs.” This level of technical due diligence signals that capital allocators in the Kingdom are now fluent in the economics of training data and algorithmic scaling.

This reframing also affects the startup lifecycle. A company that secures proprietary datasets through government partnerships, industry consortia, or user acquisition strategies becomes disproportionately attractive to investors, even at the seed stage. In Saudi Arabia, where public-private partnerships are a policy priority, startups that align with government initiatives—whether in smart cities, healthcare digitization, or financial inclusion—often gain preferential access to unique data streams. That, in turn, enhances their valuation and ability to secure follow-on capital.

Infra edge

Saudi Arabia’s decision to invest directly in AI infrastructure is perhaps the most consequential development for both startups and venture investors. In May 2025, the Kingdom launched Humain, a national AI company backed by the Public Investment Fund, with a mandate to develop domestic compute, models, and data-center capacity. Media reports indicate that Nvidia has committed 18,000 Blackwell chips to the project, with the first 100-megawatt data centers in Riyadh and Dammam expected to come online in 2026.

This matters for startups because compute scarcity has been one of the greatest bottlenecks globally. Access to high-performance GPUs in markets like the U.S. and Europe is constrained and expensive, and Saudi entrepreneurs often struggle to secure capacity at reasonable costs. By hosting this infrastructure locally, the Kingdom is effectively subsidizing the next wave of AI startups. As one venture capitalist in Riyadh noted, “When a founder can train models inside the Kingdom, on Saudi data, at predictable costs, it fundamentally changes the investment case. You reduce execution risk, regulatory risk, and margin pressure at once.”

Regulators, too, view local compute as essential. Sensitive sectors such as finance and healthcare require data to remain within Saudi borders. Having world-class capacity available in Riyadh allows startups to deploy solutions for banks, hospitals, and ministries without running afoul of compliance rules. This alignment between infrastructure and regulation is why many VCs now speak of compute availability as a national “comparative advantage.”

Startups lead

Saudi startups are not waiting for the infrastructure to mature; they are already showing how AI-native strategies can produce growth. Mozn, headquartered in Riyadh, began as a fintech analytics firm but has evolved into a leader in AI-driven fraud prevention. At LEAP 2025, Mozn unveiled new modules for agentic AI in financial crime prevention, expanding its offerings beyond traditional AML into real-time fraud detection. Partnering with banks like D360, Mozn has become an example of how Saudi startups can build for regulated industries and then scale regionally.

Another standout is Quant, which applies AI to big data problems across sectors, including retail, real estate, and government services. By tailoring models to Arabic and regional contexts, Quant provides insights that global platforms often overlook. As one retail client explained, “Quant’s AI models understand local consumer behavior in a way no off-the-shelf product can. That’s why we can optimize inventory and pricing with confidence.”

Beyond these, companies like Unifonic, Lean Technologies, Foodics, and Sary are integrating AI deeper into their platforms. Whether in customer engagement, financial connectivity, restaurant demand forecasting, or procurement optimization, these startups are weaving machine learning into core workflows, turning AI into an essential rather than optional feature. For VCs, such integration signals resilience: when AI drives the core economics of a business, customer stickiness and margins improve.

Policy and trust

While Saudi Arabia is moving fast, officials emphasize the importance of responsible adoption. Abdullah bin Sharaf Al-Ghamdi, president of the Saudi Data and AI Authority (SDAIA), has often stated that AI is not merely a technology but a “societal transformation.” Speaking at global forums, he pointed to pilot programs in water management and emissions reduction where AI delivered measurable sustainability gains, stressing that these successes must go hand-in-hand with ethical safeguards.

SDAIA’s launch of the National AI Readiness Index reflects this balance. By benchmarking government agencies on their ability to adopt AI responsibly, the state creates predictable demand pipelines for startups. For venture capitalists, this offers greater visibility: they can track which ministries are ready to procure AI solutions, in what domains, and on what timelines. This reduces uncertainty in sales cycles, a key concern for investors underwriting enterprise-focused startups.

VC craft shifts

The practice of venture capital itself is adapting. Technical diligence now includes model governance, data provenance, evaluation metrics, and cost-per-inference calculations. As one Saudi GP put it, “It’s not enough for a founder to show traction in users or revenues. We want to see model cards, red-teaming schedules, and evidence that the AI pipeline is production-ready.”

Portfolio construction is also changing. Many Saudi investors are adopting a barbell strategy—allocating to infrastructure plays like MLOps and inference orchestration on one end, and regulated application-layer companies on the other. The middle ground—generic AI platforms with weak moats—is less attractive unless the distribution advantage is overwhelming.

Perhaps most interesting is the rise of operator-led angel syndicates. Former Careem executives, now veterans of scaling tech across the region, are active in early-stage AI rounds. Their practical knowledge of distribution, compliance, and procurement is proving invaluable for young founders. This layer of operator capital shortens go-to-market timelines and reassures institutional investors.

Fintech lens

Fintech provides a clear example of how AI is reshaping venture logic in Saudi Arabia. Fraud prevention, AML, and sanctions screening are high-stakes accuracy problems that demand both speed and compliance. Mozn’s agentic AI solutions, launched in 2025, show how Saudi startups can deliver measurable results. Banks report lower false positives and faster processing times, directly improving ROI. For VCs, this kind of quantifiable impact justifies larger checks at higher valuations.

Events like Money 20/20 Middle East in Riyadh amplify the effect by bringing together regulators, banks, and startups. Vendors showcasing AI compliance tools that are tailored for Arabic and Saudi hosting requirements gain an immediate edge in procurement cycles. For investors, this is evidence that the ecosystem has reached a level of maturity where global capital and local demand intersect.

Bottlenecks

Despite the optimism, challenges remain. Compute costs, talent shortages, and capital efficiency are recurring concerns. Yet Saudi Arabia is actively addressing all three. Humain’s compute buildout and Nvidia’s chip shipments promise to ease capacity constraints. On the talent side, the government has grown the digital workforce by more than 2.5 times in three years, reaching 381,000 professionals. Special visa schemes also attract senior ML engineers from abroad.

Capital, meanwhile, is increasingly strategic. Sovereign-linked vehicles and corporate venture arms from banks, telcos, and industrial groups are investing in AI startups, not just for returns but to acquire capabilities. This dual role as both customer and investor reduces risk for VCs and accelerates time-to-revenue for startups.

Founder edge

For founders, the message is clear: competitive advantage in Saudi AI will belong to those who own unique Arabic data, can ship production-grade models with regulatory compliance built in, and exploit domestic compute to reduce latency and costs. These are the traits that shift a startup from being “AI-enabled” to “AI-essential.” Investors recognize this and are rewarding such companies with premium valuations and substantial follow-on commitments.

Risk priced

Risks are not ignored. Model brittleness, evaluation challenges in Arabic dialects, and global talent shortages are real. But local infrastructure, policy transparency, and concentrated demand all reduce the severity of these risks. Compared to global peers, Saudi AI startups are less likely to be binary bets and more likely to become durable, ROI-driven businesses.

Next 24 months

Looking ahead, three themes dominate Saudi venture theses:

1. Arabic-first enterprise copilots in finance, logistics, and government workflows.
2. AI safety and trust tools, including monitoring, red-teaming, and security solutions.
3. AI and Industry 4.0 converge in Saudi industrial corridors, particularly as new data centers connect to edge infrastructure.

To conclude, Saudi Arabia’s venture market is not merely experimenting with AI; it is being rebuilt around it. With record-breaking VC inflows, policy-backed AI investments, and domestic compute capacity on the horizon, the Kingdom is setting the stage for compounding innovation. As Al-Ghamdi of SDAIA recently said, “AI is not just about technology—it is about shaping the future of our society and economy.” For investors, that future is already investable. For founders, the edge will belong to those who turn Saudi Arabia’s unique data, infrastructure, and policy alignment into globally relevant AI products.

Ghada Ismail

For many founders, reaching the IPO stage is a dream moment in their business journey. It is more than a financial milestone; it is proof that the late nights, scrappy beginnings, and relentless hustle have led to something bigger. Going public opens the door to growth, recognition, and a permanent place on the business map.

But here is the thing: an IPO is not just about that single moment on the trading floor. It is about showing the market that your company is ready for the spotlight, and that takes years of preparation.

So how do you know if you are ready? Let’s break it down.

Get Your Financial House in Order

Think of your financials as the backbone of your IPO story. Investors want to see clean, audited numbers that paint a picture of stability and growth. Shortcuts will not cut it here. Accuracy and transparency are everything.

Many founders bring in a seasoned CFO who has guided companies through IPOs before. That experience is invaluable when regulators and investors start asking tough questions. The sooner you put strong financial systems in place, the smoother the road will be.

Build a Governance Structure People Can Trust

Numbers matter, but people matter more. Investors need confidence not just in your product but in your leadership. That is where governance comes in.

A solid board with independent directors and clear oversight tells the market you are serious. If your current setup feels more like a friendly advisory circle, it might be time to upgrade. Think of it as leveling up your leadership team for the big leagues.

Get Comfortable with Regulation

Going public comes with rules, and lots of them. From quarterly reports to disclosure requirements, compliance will become part of your everyday life. It may sound daunting, but with the right legal advisors, it is manageable.

Remember: investors want reassurance that you can play by the rules. Show them you can, and you will earn their trust.

Tell a Growth Story People Believe In

Your financials prove what you have done. Your story convinces people of what is next. Why should the market believe in your future? What makes your company the one to back five years from now?

A compelling growth story is not just about big promises. It is about connecting your wins so far to a clear, data-backed vision of where you are headed. That narrative becomes the heart of your IPO pitch.

Upgrade Your Team and Systems

An IPO is not just about raising money; it is rather about scaling to meet bigger expectations. Once you are public, everything is under the microscope.

That might mean upgrading your executive team, strengthening IT systems, or setting up dedicated investor relations. Think of it as preparing your startup for prime time.

Start Building Investor Relationships Early

The best IPOs are built on trust that starts long before the listing. Cultivate relationships with institutional investors, analysts, and even the media early on.

By the time you are ready to go public, you will not just be introducing yourself; you will be continuing a conversation.

Look Beyond IPO Day

It is tempting to see the IPO as the finish line. In reality, it is just the beginning of a new phase. Public companies face quarterly earnings calls, media scrutiny, and shareholder pressure.

As a founder, your challenge is to hold on to the agility that got you here while adapting to the accountability public markets demand. Now here’s a quick IPO Readiness Checklist for your convenience:

IPO Readiness Checklist

•  Audited financials that show growth and profitability
•  Independent board and clear governance structure
• Compliance framework with legal advisors in place
• A credible growth story supported by strategy and data
• Upgraded systems and talent ready for public company life

Wrapping Things Up…

An IPO can change everything, but only if you prepare for it with intention. Strong financials, trusted governance, regulatory readiness, a clear growth story, and the right team are your foundation.

And remember: going public is not about ending the journey. It is about starting the next chapter on an even bigger stage.

Kholoud Hussein 

In today’s hyper-competitive global economy, building a billion-dollar company—known as a unicorn—once required decades of persistence, massive capital, and a fair share of luck. But the rise of Artificial Intelligence (AI) has completely changed the rules. Startups that leverage AI effectively can cut years off their growth trajectory, scale at unprecedented speed, and attract investor attention like never before.

This blog explores how AI is transforming early-stage startups into unicorns in record time, highlighting key strategies, valuable tips, and key pitfalls to watch out for.

1. Automate to Accelerate

One of the greatest advantages AI gives startups is the ability to automate repetitive, costly, or time-consuming processes. Customer support chatbots, AI-driven marketing campaigns, predictive analytics for inventory—these are no longer optional extras but core competitive tools.

Tip: Identify your biggest operational bottlenecks and deploy AI tools to remove them. Every task AI takes over frees up human capital for innovation and growth.

2. Build Products That Learn

Unlike traditional software, AI-powered products improve with time and data. This self-improving nature makes them far more attractive to investors, who see compounding value. Think of Grammarly, which learns from billions of writing corrections, or fintech apps that continuously refine fraud detection.

Tip: Design your product around feedback loops. The more data your users generate, the smarter—and stickier—your solution becomes.

3. Attract Venture Capital Like a Magnet

Investors are pouring billions into AI startups. According to PitchBook, global VC investment in AI surpassed $80 billion in 2023, with valuations often skyrocketing based on market potential rather than revenue. If your startup positions itself at the intersection of AI and a high-growth industry (healthcare, logistics, cybersecurity), you’re automatically more appealing to capital.

Tip: Frame your pitch not only around what your product does, but also how AI makes it exponentially better than any competitor.

4. Global Scalability, Faster

AI removes geographical limits. A SaaS startup that integrates AI recommendations can serve millions of users globally without requiring a massive investment in human resources. Generative AI platforms like OpenAI and Stability AI scaled internationally in record time, driven by viral adoption and global demand.

Tip: From day one, build with international users in mind. AI allows you to customize experiences for different markets (languages, cultural nuances) at scale.

5. Data Is Your Goldmine

Every unicorn today—from TikTok to Stripe—relies on data. But AI turns raw data into real-time insights and predictions. Startups that harness data effectively can forecast demand, personalize customer experiences, and optimize pricing strategies instantly.

Tip: Don’t wait until you have millions of users to build your data strategy. Start early, collect clean data, and make it central to your growth engine.

6. Lower Costs, Higher Margins

AI allows startups to operate with leaner teams and lower overhead. An AI-driven customer acquisition funnel can replace expensive marketing agencies. AI-enabled product development accelerates time-to-market, allowing startups to outpace incumbents.

Tip: Reinvest cost savings into R&D and growth. Lean operations are not just efficient—they’re a signal to investors that your business can scale profitably.

7. Beware the Hype Trap

While AI is powerful, not every startup that sprinkles AI jargon becomes a unicorn. Many crash due to overpromising or underdelivering. Founders must balance vision with execution.

Tip: Be transparent with what your AI can actually deliver. Investors and customers will forgive limitations, but they won’t forgive false claims.

Finally, AI is no longer just a technology—it’s a growth accelerant. By automating operations, scaling globally, unlocking data value, and attracting investor capital, AI gives startups an unfair advantage in reaching unicorn status faster than ever.

For founders, the message is clear: AI isn’t just part of the strategy—it should be the strategy. Those who master it will not only join the unicorn club but may rewrite the very definition of speed and scale in entrepreneurship.