AI and Sustainability: How Saudi E-commerce Can Go Green

Sep 24, 2024

Kholoud Hussein 

 

As Saudi Arabia seeks to diversify its economy and align with Vision 2030, the intersection of artificial intelligence (AI) and sustainability in the e-commerce sector is gaining significant attention. With e-commerce rapidly expanding, there’s an urgent need for businesses to adopt greener practices that minimize environmental impact. AI offers innovative solutions to help Saudi e-commerce companies achieve sustainability goals while enhancing operational efficiency.

 

One of the primary ways AI contributes to sustainability is through supply chain optimization. By analyzing vast amounts of data, AI can predict demand more accurately, reducing overproduction and waste. This lowers costs and minimizes excess inventory, which can lead to unsold products ending up in landfills. Companies can leverage AI-driven analytics to streamline logistics, ensuring that products are delivered efficiently and with a smaller carbon footprint.

 

Another significant aspect is energy management. AI technologies can monitor energy consumption in real time, identifying areas for improvement in warehouses and fulfillment centers. By optimizing energy usage, e-commerce businesses can significantly reduce their operational costs and environmental impact, aligning with the Kingdom’s commitment to sustainability.

 

Furthermore, AI can enhance customer engagement by promoting eco-friendly products and practices. Through personalized recommendations, e-commerce platforms can encourage consumers to choose sustainable options, such as products made from recycled materials or items with minimal packaging. This shift in consumer behavior not only fosters a culture of sustainability but also helps businesses cater to the growing demand for green products.

 

In conclusion, integrating AI into Saudi e-commerce operations offers a pathway to sustainability. By optimizing supply chains, managing energy consumption, and promoting eco-friendly products, e-commerce companies can contribute to a greener future while thriving in a competitive market. As Saudi Arabia continues its journey toward sustainability, AI will play a pivotal role in shaping a more responsible e-commerce landscape.

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AI and Sustainability: How Saudi E-commerce Can Go Green

Kholoud Hussein 

 

As Saudi Arabia seeks to diversify its economy and align with Vision 2030, the intersection of artificial intelligence (AI) and sustainability in the e-commerce sector is gaining significant attention. With e-commerce rapidly expanding, there’s an urgent need for businesses to adopt greener practices that minimize environmental impact. AI offers innovative solutions to help Saudi e-commerce companies achieve sustainability goals while enhancing operational efficiency.

 

One of the primary ways AI contributes to sustainability is through supply chain optimization. By analyzing vast amounts of data, AI can predict demand more accurately, reducing overproduction and waste. This lowers costs and minimizes excess inventory, which can lead to unsold products ending up in landfills. Companies can leverage AI-driven analytics to streamline logistics, ensuring that products are delivered efficiently and with a smaller carbon footprint.

 

Another significant aspect is energy management. AI technologies can monitor energy consumption in real time, identifying areas for improvement in warehouses and fulfillment centers. By optimizing energy usage, e-commerce businesses can significantly reduce their operational costs and environmental impact, aligning with the Kingdom’s commitment to sustainability.

 

Furthermore, AI can enhance customer engagement by promoting eco-friendly products and practices. Through personalized recommendations, e-commerce platforms can encourage consumers to choose sustainable options, such as products made from recycled materials or items with minimal packaging. This shift in consumer behavior not only fosters a culture of sustainability but also helps businesses cater to the growing demand for green products.

 

In conclusion, integrating AI into Saudi e-commerce operations offers a pathway to sustainability. By optimizing supply chains, managing energy consumption, and promoting eco-friendly products, e-commerce companies can contribute to a greener future while thriving in a competitive market. As Saudi Arabia continues its journey toward sustainability, AI will play a pivotal role in shaping a more responsible e-commerce landscape.

A New Era of Play: Saudi Arabia's bold leap into the gaming and e-sports world

Ghada Ismail

 

In recent years, Saudi Arabia has emerged as a significant player in the global gaming and e-sports industry, a development driven by a blend of economic diversification strategies, youthful demographics, and robust governmental support. As part of its Vision 2030 initiative, the Kingdom aims to reduce its dependency on oil revenues by fostering sectors like entertainment and technology. The gaming industry, in particular, has become a focal point in this transformative agenda.

 

Demographics and Market Potential

Saudi Arabia boasts a youthful population, with over 60% of its citizens under the age of 30. This demographic is increasingly tech-savvy and engaged in digital entertainment, providing a fertile ground for the gaming industry to flourish. According to a report by Newzoo, the Middle East and North Africa (MENA) gaming market was valued at approximately $1 billion in 2022, with Saudi Arabia contributing significantly to this growth. The Kingdom is home to about 25 million gamers, which represents one of the highest per capita gaming rates globally.

 

Government Support and Investment

The Saudi government has recognized the economic potential of the gaming sector and has actively sought to promote its growth. The establishment of the Saudi E-sports Federation (SEF) in 2019 exemplifies this commitment. The SEF aims to cultivate a robust e-sports ecosystem, organizing competitions, and promoting local talent. Furthermore, the Kingdom has invested heavily in various gaming initiatives, including partnerships with leading global game developers and e-sports organizations.

 

In 2021, the Public Investment Fund (PIF) announced its plan to invest $3.3 billion in gaming companies over the following years. This investment aims to foster local talent and establish Saudi Arabia as a global hub for gaming development and e-sports events. Such strategic investments are set to bolster the industry’s infrastructure, including gaming studios, event venues, and training facilities.

 

Infrastructure Development

To facilitate the growth of the gaming sector, Saudi Arabia is also focusing on infrastructure development. The NEOM project, a futuristic city being built in the northwestern part of the Kingdom, is envisioned as a tech-driven urban environment that will include dedicated spaces for gaming and digital entertainment. This initiative reflects a broader trend of integrating gaming into lifestyle and culture, making it accessible and appealing to a wide audience.

 

Additionally, the Kingdom is hosting several gaming expos and conventions, such as the annual Gamers8 festival. This event has rapidly gained prominence, attracting international gamers, developers, and enthusiasts, creating a vibrant community and fostering knowledge exchange before being replaced by the E-sports World Cup.

 

In October 2023, Saudi Arabia announced the inaugural E-sports World Cup as the successor of Gamers8, the Saudi E-sports Federation's previously existing e-sports festival, set to take place in Riyadh. 

 

The 2024 E-sports World Cup (EWC) was the first edition of the E-sports World Cup, an annual international e-sports tournament series run by the E-sports World Cup Foundation (funded by Saudi Arabia's Public Investment Fund). The event took place in Riyadh, Saudi Arabia, from July 3 to August 25, 2024, and featured 23 events in 22 different video game titles. It had the largest combined prize pool in e-sports history at over US$60 million, encompassing individual tournament prize pools, rewards for teams that qualify for EWC events, most valuable player awards, and the Club Championship, a cross-game competition that aggregates the individual game results of all participating organizations (known as "clubs" to the EWC) to crown a Club Champion. 

 

Cultural Acceptance and Community Engagement

Historically, gaming in Saudi Arabia faced cultural scrutiny. However, a significant shift has occurred in recent years, with gaming increasingly being accepted as a legitimate form of entertainment and social engagement. The younger generation is leveraging online gaming platforms to connect with peers, fostering community and collaboration.

 

The government's focus on digital entertainment is also evident in its efforts to promote a balanced approach to gaming, emphasizing responsible play while encouraging competitive engagement. Initiatives aimed at educating parents and young players about healthy gaming habits are becoming more common, reflecting a broader societal acceptance of gaming as a mainstream activity.

 

Local Game Development

Beyond consumption, Saudi Arabia is positioning itself as a center for game development. Local companies are emerging, and many are gaining recognition for their innovative titles. For example, studios like Saeed Games and Mikado Games are developing games that resonate with local culture and values while appealing to a global audience. The government is providing support through funding and resources, allowing these companies to flourish and contribute to the Kingdom's economic diversification objectives.

 

Moreover, in 2023, Saudi Arabia launched its first game development accelerator program, aimed at nurturing budding developers and fostering creativity. This initiative reflects a growing awareness of the importance of local content creation in the gaming ecosystem, enhancing cultural representation and storytelling in games.

 

E-Sports: Competitive and Commercial Growth

The e-sports sector became a vital component of the gaming industry in Saudi Arabia, characterized by rapid growth in both participation and viewership. Major tournaments are attracting large audiences, both in-person and online, with platforms like Twitch and YouTube gaining traction among local gamers. 

 

The SEF has been instrumental in organizing high-profile events that draw international attention, such as the Gamers Without Borders charity tournament, which not only showcases local talent but also reinforces Saudi Arabia's commitment to global community engagement.

Moreover, the commercial potential of e-sports is increasingly recognized by brands and sponsors. Companies are leveraging the popularity of e-sports to connect with younger consumers, investing in sponsorship deals, advertising campaigns, and product placements. This trend reflects a broader shift in marketing strategies, as brands seek to engage with the digitally native youth demographic.

 

Challenges Ahead

Despite the promising landscape, the gaming and e-sports industry in Saudi Arabia faces several challenges. Regulatory hurdles, particularly around online gaming and content creation, remain a concern for developers and players alike. Navigating these regulations while fostering innovation will be crucial for the sector's sustained growth.

 

Furthermore, competition from established gaming markets, such as North America and Asia, presents a challenge for Saudi Arabia as it strives to carve out its niche. To compete effectively, local developers must prioritize quality, innovation, and user experience, while also building a supportive community for gamers and developers.

 

Wrapping it up, the gaming and e-sports industry in Saudi Arabia is on an upward trajectory, bolstered by demographic advantages, government support, and a rapidly evolving cultural landscape. As the Kingdom continues to invest in this sector, it is well-positioned to become a regional powerhouse in gaming and a key player on the global stage. The success of this endeavor will not only contribute to economic diversification but will also reshape the entertainment landscape, creating new opportunities for creativity and community engagement. As the gaming industry matures, it will be fascinating to observe how Saudi Arabia balances tradition with innovation in this digital age.

 

 

 

Hot Solutions for a Hotter World: Securing MENA’s Food Supply

John Keppler

 

Just how hot will this summer get in the UAE? With record temperatures, like the 50.8°C recorded on 9 July in the small town of Sweihan, Al Ain, the heatwave appears unrelenting as other parts of the country also experience temperatures above 50°C. Temperatures in the UAE are normally higher in August and September than in July

 

As the population seeks shade and air-conditioned safety, spare a moment for farmers across the region, facing inhospitable temperatures with growing regularity.

 

It is a growing challenge - 2023 was the hottest year ever recorded globally. There were reports of climate-related disasters across the globe, leading to widespread crop failures and reduced yields due to water shortages and heat stress. 

 

Agriculture accounts for over a quarter of global greenhouse gas emissions and 70% of the drain on freshwater resources. In the context of agriculture, the climate crisis is a ticking time bomb.

 

The Middle East’s harsh arid climate only exacerbates the situation, increasing the region’s drain on freshwater resources in agricultural operations to 85%-90%. Current forecasts suggest the world will need to produce 50% more food by 2050 to feed a soaring population, much of it in arid countries

 

The challenge of regional food security is mounting. Around 85% of MENA’s fresh produce is imported - dependence on other regions to feed nations is clearly of concern in this region. The UAE alone imports $24 billion worth of food and agricultural products annually - nearly half the GCC’s total. With additional ‘food miles’ and environmental harm from transport and distribution - the incremental climate impact is significant.

 

Strengthening food security in the region is already a priority, driven by concerns over international conflicts, crop supply chain reliability, and climate change.  Extremely high temperatures in the UAE and the wider GCC continue to crystallize the region’s focus on the problem and identifying solutions to support farmers for whom the water and energy needed to produce the food their consumers need is an increasing financial burden..

 

Breaking the food-water-energy nexus is crucial. The region needs to make changes - for which innovative, sustainable technologies can be key.  Changing agricultural processes - some of which have been in place for decades, or even centuries - is also not a practical solution. 70% of farmers globally operate in low and middle-level technology sites. A typically low-margin business, this critical farming bloc rarely has the financial resources to invest in industrial-scale solutions and processes. Indoor and vertical farming, touted as options, are capital-intensive and require farmers to learn new techniques.

 

Farmers need workable options to mitigate risk and improve their economic and ecological sustainability without investing significant time and money. Farming is a sufficiently challenging profession. Access to drop-in, affordable, and cost-effective technology is a potential panacea the region desperately needs - when facing the climate and food security challenge.

 

The good news is that the region’s harsh desert climates are a perfect testing ground for innovative technologies. Withstanding the heat of the Arabian Desert is the perfect challenge for solutions with the potential to improve food security in the Gulf. As temperatures increase, this could extend to other global hot spots - a club growing larger every year.

 

In the AgTech industry, new solutions offering holistic approaches to climate adaptation, from greenhouse roof materials to newly cultivated rootstocks thriving in hot and salty environments, are on the increase.

 

One such solution, SecondSky by iyris, is showcased in its R&D Facility in Al Ain. SecondSky, offers a range of transparent, near-infra-red heat radiation-blocking agricultural covers. Winner of the 2023 Davidson Prize, SecondSky covers incorporate a nanoparticle additive that blocks the harmful effects of heat radiation. This innovative technology reduces energy usage by over 40% and water consumption by 30%, significantly minimizing environmental impact, improving crop yields, and extending the growing season for farmers.

 

A long road ahead remains for the agricultural industry. The rapidly warming planet has turned a MENA region challenge into an opportunity to solve a problem at the world’s front door. 

 

For the AgTech industry, smart combinations of scientific knowledge and innovation that begin with improving the Gulf’s food security - can be a driver to feed the world sustainably. 

 

John Keppler is the Executive Chair of iyris – a world-leading, sustainable AgriTech company

 

 

Top Green Tech Startups to Watch in Saudi Arabia

Kholoud Hussein 

 

As Saudi Arabia pivots toward a more sustainable future under Vision 2030, green tech startups are emerging as key players in the country’s economic and environmental transformation. These startups are addressing critical issues such as renewable energy, sustainable agriculture, and waste management, all while positioning Saudi Arabia as a hub for green innovation.

 

Here are some of the most promising green tech startups to watch:

 

1. Desert Technologies: Desert Technologies is pioneering solar energy solutions tailored to the region’s harsh desert climate. Specializing in the manufacturing and deployment of solar panels, they’re helping Saudi Arabia achieve its goal of generating 50% of its energy from renewable sources by 2030. Their projects extend across the Middle East and Africa, making them a key player in the region’s green energy shift.

 

2. Naqaa Solutions: Naqaa Solutions is revolutionizing waste management in Saudi Arabia by offering sustainable recycling and waste disposal services. Their innovative solutions focus on turning waste into energy and other byproducts, helping to reduce the Kingdom’s carbon footprint while promoting eco-friendly business practices.

 

3. SecondSky: Developed by iyris, SecondSky uses nanotechnology to create agricultural covers that block heat radiation, reducing farm energy and water consumption. This technology improves crop yields while extending growing seasons, making it essential for tackling food security challenges in the region’s extreme climate.

 

4. Greenzie: As electric vehicles (EVs) become more popular, Greenzie is developing the infrastructure needed to support EV adoption in Saudi Arabia. Their focus on EV charging stations and green mobility solutions aligns with the Kingdom’s efforts to reduce transportation emissions.

 

These startups are crucial to the success of Vision 2030, Saudi Arabia's long-term strategic plan to diversify the economy and reduce reliance on oil by investing in sustainable technologies. By developing renewable energy solutions, promoting waste management, and enhancing agricultural sustainability, these companies directly contribute to the Kingdom's ambitious goals of reducing carbon emissions and increasing environmental resilience. Their innovations not only address local challenges but also create scalable solutions that can be applied across the region, aligning with Saudi Arabia’s goal of becoming a leader in green technology.

 

The potential for other companies to enter the green tech space is significant. Saudi Arabia’s commitment to sustainability and the growing demand for eco-friendly solutions provide fertile ground for new entrants. Sectors like water conservation, energy efficiency, and sustainable construction are still emerging, offering opportunities for both local entrepreneurs and international companies to collaborate. As government support continues through initiatives like the Saudi Green Initiative and the expansion of venture capital for sustainability-focused startups, the stage is set for more innovative companies to join the scene and further accelerate the Kingdom’s green transformation.

 

Why do you need to do market research before launching your startup?

Noha Gad

 

The process of launching a new startup is energized by ambition, creativity, and passion, however, these alone are not enough to achieve long-term success. In an increasingly competitive and volatile economic landscape, market research is crucial to building a robust foundation for your startup. It’s not just a step in the process, it’s the cornerstone upon which every strategic decision should be based. 

Market research is the process of examining customer behavior and trends in the economy to help a startup develop and fine-tune its business idea and strategy. It evaluates the viability of a new service or product through research conducted directly with potential customers.

You have to conduct in-depth market research before launching your startup or introducing new products to determine their appeal to potential customers. 

Extensive market research helps you:

  •   Understand market demand. Detailed market research provides critical data to confirm whether there is sufficient demand for your product or service. Understanding this demand helps prevent the common mistake of overestimating the market size, which can lead to overproduction, excess inventory, and wasted resources.
  • Identify and learn from competitors. Market research enables startups to identify competitors and understand their strengths, weaknesses, pricing strategies, and market positioning. This could help you differentiate your product and determine your unique value proposition.
  •  Determine target audience: By determining your target demographic, you ensure that your product resonates with the right audience. Knowing the demographic specifics of your potential customers, such as age, income level, location, and buying habits, allows you to design your messaging and marketing efforts for maximum impact.
  • Mitigate risks. Effective market research can significantly mitigate the risks of launching your startup by providing actionable insights, identifying economic downturns, and understanding regulatory hurdles. Market research empowers startups to avoid or minimize losses by anticipating market shifts and consumer behavior.
  • Maximize revenues. Carrying out pricing research, whether through surveys, focus groups, or competitor analysis, helps startups establish a price that meets both customer expectations and business profitability goals.
  • Gain investors' confidence. Startups with a clear understanding of their market always attract investors. Market research demonstrates that you have a data-driven approach, and reduces perceived risk for potential investors. Market research provides evidence that there is a demand for your product, that you’ve identified your target audience, and that you have a competitive edge.
  • Adapt to market changes. Startups that continue to invest in market research are better equipped to adapt, pivot, or scale when necessary. Consumer preferences shift, new competitors emerge, and technological advances can change the landscape overnight. Thus, ongoing market research is necessary to stay agile in a dynamic market.

Finally, market research is an essential component of strategic decision-making as it allows startups to allocate resources efficiently, minimize risks, and maximize revenues. Investing in market research before launching your startup helps you hit the ground running with a clear sense of purpose, direction, and competitive advantage.