How Financial Barriers Undermine Spiritual Equality for Pilgrims from Emerging Markets

Sep 30, 2024

William Phelps

 

In 2023, Saudi Arabia welcomed a record-breaking 13.5 million pilgrims for both Umrah and Hajj. This was the best attended year of pilgrimage to date, reflecting the Kingdom’s ambitious Vision 2030 goals of expanding the capacity of Hajj and Umrah whilst enhancing the experience of religious visitors. 

Despite the Government’s inspiring work in this regard, however, there still remain significant financial challenges for many pilgrims from emerging markets. These issues threaten the very essence of Hajj and Umrah – spiritual equality. 

 

Providing swift and streamlined solutions is a fantastic opportunity to add and support the modernization of pilgrimage. As I appreciate both the significance of and the challenges associated with the journey to Mecca. The financial barriers associated with emerging markets are not limited to their business and trade with Europe and North America: they are also acutely felt in Hajj and Umrah. Pilgrims from emerging markets often encounter financial obstacles that pilgrims from wealthier nations rarely face.

 

In 2024, almost 100,000 Nigerian pilgrims participated in Hajj, joining millions of Muslims worldwide in the sacred observance of Arafah Day. However, Nigerian pilgrims must navigate a complicated web of currency exchange issues. Due to limited access to foreign currency in Nigeria, most pilgrims resort to buying U.S. dollars in cash before travelling, only to sell them again upon arrival in Saudi Arabia at a significant loss. This process is not only stressful and cumbersome but also introduces security risks, not to mention the financial burden. Carrying large sums of cash while abroad detracts from what should be a peaceful, spiritual experience. 

 

Further, digital banking platforms like Revolut, Wise, or Monzo - widely used in Europe and the U.S. - are not accessible in many emerging markets. This further exacerbates the financial divide, forcing pilgrims to navigate their journey with additional stress; their focus should be entirely on their faith.

 

In my experience working with Nigerian pilgrims, I have seen the frustration this financial exclusion causes. For those fortunate enough to save and plan for a core tenet of their faith, it is a tragedy to think of it as marred by financial challenges and stress.

 

Pilgrims from countries like Pakistan, Bangladesh, and other emerging markets face similar challenges. This isn’t just an inconvenience - it risks creating a two-tiered pilgrimage experience, where the quality of a pilgrim’s journey is dictated by their financial means and country of origin.

 

Establishing “UmrahCash” to Bridge the Financial Divide

These challenges inspired me to launch UmrahCash, based between Jeddah and Kano in northern Nigeria. Our mission is to ensure that every pilgrim, regardless of their financial background, has access to the capital they need in a safe, secure, and seamless way. UmrahCash is not just another fintech app; it is designed to address the unique needs of pilgrims from emerging markets. Our platform caters to individuals with varying levels of financial and technological literacy, ensuring that both the banked and unbanked can participate in pilgrimage without financial stress.

 

With UmrahCash, we’ve simplified currency exchange, allowing pilgrims to convert their home currency directly to Saudi Riyals, eliminating the need to carry large amounts of cash. Starting in northern Nigeria, we’ve built a vetted network of agents who offer local language support and personalized assistance. Most importantly, we’ve created a platform that fosters trust and transparency, removing the risks associated with existing currency exchange methods.

 

Our goal is to empower pilgrims from emerging markets with the financial tools they need to focus on their spiritual journey, free from the worries of financial management. As such, we leveraged cutting-edge technology on the backend to streamline currency exchange and ensure that all financial transactions are secure, and efficient. We paired this with an easy-to-use front-end app that is accessible to users of all technical skill levels and backgrounds. 

 

A Path Forward for All Pilgrims

The significant growth in international Umrah pilgrims - 26.9 million in total in 2023, with the majority hailing from emerging markets - underscores the urgent need for inclusive financial solutions. Saudi Arabia’s Vision 2030 has laid the groundwork for innovation, with over $1.3 billion invested in developing infrastructure at the holy sites. But while infrastructure development is crucial, it’s only part of the solution. We must also address the financial barriers that prevent many pilgrims from fully engaging in their spiritual journey.

 

At UmrahCash, we believe that Umrah should be a unifying experience for all Muslims and are committed to bridging this financial divide, ensuring that all pilgrims, no matter their country of origin or economic status, can participate in the sacred journey to Mecca with peace of mind and spiritual fulfillment.

 

William Phelps is the founder of the “UmrahCash” application. 

 

 

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Unlocking Success: the power pf networking for startups

Ghada Ismail

 

In the ever-evolving world of startups, success is often less about having a groundbreaking idea and more about the connections that pave the way for that idea to flourish. Like the roots of a tree that nourish and stabilize it, networking forms the foundation upon which entrepreneurs can build their dreams. This vital practice not only opens doors to resources and opportunities but also plays a crucial role in driving economic growth.

 

Networking is the unseen thread that actually connects entrepreneurs to resources, knowledge, and opportunities, making it an essential ingredient for achieving the desired impact among a crowd of competitors in multiple aspects that is going to unfold as you keep reading: 

 

Accessing Capital: A Key Economic Driver

Capital acquisition remains one of the key challenges for startups. According to the National Venture Capital Association, external funding is vital for nearly all new ventures. This is where networking can play a crucial role, as personal connections often lead to generating investment opportunities. Warm introductions to investors can significantly enhance a startup's ability to secure funding, transforming potential ideas into operational realities.

 

The economic implications are substantial. When startups successfully attract investment through networking, they create a multiplier effect within the economy. Each investment not only supports the startup but also generates employment, drives innovation, and stimulates economic activity across various sectors. This interconnectedness underscores the importance of networking as a mechanism for achieving your desired growth.

 

Knowledge Exchange: Fostering Innovation

Networking serves as a critical conduit for knowledge transfer among entrepreneurs. By engaging in dialogue and collaboration, startups can exchange ideas and best practices, leading to the development of new products and services. Research by the Kauffman Foundation indicates that startups actively engaged in networking are significantly more likely to introduce innovative solutions to the market.

 

This collaborative environment fosters a culture of continuous improvement, enhancing overall productivity and competitiveness within industries. As knowledge circulates through these networks, it not only benefits individual startups but also contributes to a more vibrant and adaptable economy.

 

Strategic Partnerships: Enhancing Market Position

Networking is instrumental in forming strategic partnerships that can amplify a startup's market presence. Collaborations between startups and established firms can provide access to distribution channels, technological resources, and operational efficiencies. For instance, a tech startup might partner with a larger company to leverage its established market reach, while a manufacturing venture may collaborate with research institutions to innovate new processes.

 

From an economic perspective, these partnerships enhance the resilience and dynamism of the business ecosystem. By facilitating cooperation and competition, networking enables startups to drive sectoral growth and adapt to shifting market demands, thus fostering a more robust economic environment.

 

Talent Acquisition: Building Human Capital

In addition to facilitating access to capital and knowledge, networking plays a critical role in talent acquisition. Startups often rely on personal connections to identify and recruit skilled individuals who can drive innovation and growth. By engaging with potential hires through industry events and professional platforms, startups can build a workforce that is diverse, agile, and equipped to navigate the complexities of the modern economy.

 

The resulting job creation not only benefits individual startups but also enhances local labor markets. As startups grow and expand, they contribute to economic stability and resilience in their communities, underscoring the importance of networking in fostering a healthy employment landscape.

 

Community Development: Local Economic Impact

The effects of networking extend beyond individual startups to the broader community. Engaging in networking activities often leads entrepreneurs to participate in local incubators, accelerators, and co-working spaces, which play a pivotal role in nurturing entrepreneurial ecosystems. These initiatives not only provide resources but also create a collaborative environment conducive to innovation and growth.

 

Local governments and economic development agencies increasingly recognize the value of networking in fostering a vibrant entrepreneurial culture. By supporting networking initiatives, they can enhance job creation, stimulate economic diversification, and promote regional economic resilience.

 

In an economy where startups are pivotal to innovation and growth, networking emerges as a strategic necessity. By facilitating access to capital, enabling knowledge exchange, fostering strategic partnerships, enhancing talent acquisition, and promoting community development, networking acts as a fundamental driver of growth.

 

For entrepreneurs, prioritizing networking is not merely a best practice; it is an essential component of a successful growth strategy. As they forge connections and cultivate relationships, startups not only enhance their own trajectories but also contribute significantly to the broader economic landscape. In this interconnected ecosystem, the maxim holds true: in addition to what one knows, who one knows is crucial for navigating the complexities of the entrepreneurial journey.

Rizk: PROPTEX plays vital role in shaping the future of Proptech innovation

Kholoud Hussein

 

The proptech sector in Egypt and the GCC is experiencing rapid growth, fueled by the increasing demand for smart cities and sustainable real estate solutions. Egypt, in particular, has emerged as a hub for real estate technology, driven by government initiatives like the New Administrative Capital and urban development projects across the country.

 

In the GCC, countries like the UAE and Saudi Arabia invest heavily in smart city projects such as NEOM and Masdar City, accelerating the adoption of proptech to enhance planning, construction, and property management. According to a recent report, the MENA proptech market is projected to grow at a compound annual growth rate (CAGR) of 12% through 2032, indicating immense potential for startups to innovate and expand. This surge in demand provides fertile ground for programs like PROPTEX, which aim to position Egypt and the broader region as leaders in the global proptech landscape.

 

In an exclusive interview with Sharikat Mubasher, Bedeir Rizk, CEO of Paragon Real Estate Development, Managing Partner at ABEC (Al-Bedeir Engineering and Construction), and the visionary behind PROPTEX, delves into the groundbreaking efforts of his PropTech initiative. PROPTEX is making waves in the real estate technology landscape, not only in Egypt but also across the MENA region. As the real estate market shifts towards smart cities and sustainable technologies, PROPTEX is at the forefront, supporting startups that are driving innovation in planning, development, and property management.

 

Rizk discusses how PROPTEX is providing strategic investments, mentorship, and networking opportunities to proptech startups. These services enable businesses to overcome the challenges of entering an emerging and technologically driven real estate market. With global demand for proptech solutions expected to reach $89.93 billion by 2032, PROPTEX is positioning itself to support the evolution of the MENA real estate sector through cutting-edge technologies and collaborations with major players in the industry. The interview offers a comprehensive look at the program’s vision for transforming traditional real estate systems and the immense opportunities available for proptech innovation.

 

Can you provide an overview of the services that PROPTEX offers to startups in the PropTech space in Egypt? How do these services help accelerate their growth?

PROPTEX's comprehensive acceleration program focuses on supporting and accelerating startups working in the field of smart and sustainable cities by providing necessary strategic investments, offering networking opportunities with major real estate developers, and providing guidance and mentorship throughout various stages and over several years. 

 

This support contributes to building smart and sustainable cities and enhances Egypt’s position as a regional hub for innovation in proptech. These facts align with the growing global expectations for the real estate technology market, with a study by Fortune Business Insights indicating that the global market is expected to witness a compound annual growth rate of nearly 12% from 2024 to 2032, reaching approximately USD 89.93 billion by 2032. These projections offer significant opportunities for proptech companies and other businesses operating in this sector.

 

Mentorship is a critical part of your offering. Could you elaborate on the kind of mentorship PROPTEX provides to startups and how it enhances their business development and innovation strategies?

PROPTEX supports startups in various ways according to their needs, notably by providing assistance and guidance in developing products and services to meet market demands. The support is structured in 5 distinct phases, each lasting 3 months, with an additional 3 months recently added for the pilot launch of projects. A total of $5 million in financial support will be allocated across these five programs, with funds distributed to selected startups within each program.

 

Currently, the program has completed the educational phase and has moved on to the next phase, which focuses on training companies on how to engage with the market. This is part of an effort to accelerate the growth of proptech startups and expand their activities both locally and internationally.

 

How does PROPTEX facilitate access to investment opportunities for PropTech startups? What type of investors are you connected with, and what has been the success rate in terms of funding?

The PROPTEX program facilitates investment opportunities by connecting startups with major real estate investors both in Egypt and abroad. The program also encourages large real estate companies to support startups and provide necessary assistance in all forms. Many leading real estate firms have already expressed their willingness to invest in these startups for a stake of less than 15%. The program relies on an initial investment fund of $5 million, distributed over 5 phases. The amount of funding and the percentage of partnership are determined based on an assessment of each project's needs to ensure its success.

 

Given the unique challenges in the real estate and technology sectors, what specific resources or support does PROPTEX offer to help startups overcome regulatory, technical, or market-entry barriers in the MENA region?

The PROPTEX program aims to overcome the challenges it faces as a startup support program, including low awareness of the proptech sector, the absence of specialized internal departments within companies to adopt the required technological changes, the need for project continuity guarantees, and the lack of supportive work environments and limited market for sustainable projects, among other challenges facing emerging sectors like proptech.

 

To address these challenges, PROPTEX encourages private sector companies to collaborate and form an alliance to support startups to become the driving force of the sector. This collaboration helps reduce market entry barriers, promotes investment, and enhances the mentorship support needed by companies during their development stages. The program also directly requests the New Administrative Capital Development Company to provide a controlled environment for startups to test their technological capabilities on a limited scale, paving the way for broader trials across the country. Additionally, the program urges them to provide necessary information to support these companies.

 

With PropTech growing rapidly in the MENA and GCC markets, what are your plans for expanding PROPTEX’s reach and services in these regions? Are there any specific countries or areas you’re focusing on?

As part of PROPTEX's development and expansion efforts, the program aims to support and encourage startups to expand both locally and internationally, taking advantage of opportunities in the real estate tech sector, which allows them to export their services to global markets over the next fifteen years. The program is currently studying expansion opportunities in the MENA region due to its promising potential. The program emphasizes its commitment to enabling startups to serve the entire region rather than focusing solely on the Egyptian market.

 

Currently, PROPTEX supports 11 startups in the proptech sector, both locally and internationally. Notable among them is "Amtaar," which offers its target audience the option to purchase office space by the square meter rather than the entire unit, addressing recent issues related to purchasing power.

 

What role does PROPTEX play in shaping the future of real estate technology in the MENA region? How do you see the adoption of PropTech transforming the real estate market in the coming years?

Proptech is a powerful tool for enhancing the real estate sector by aiming to revolutionize traditional systems through the development of five key areas:

 

  • Planning and Development: Improving planning processes and real estate project development.
  • Building Design and Construction: Introducing modern technologies for designing and constructing buildings.
  • Financial Transactions Management: Simplifying financial procedures associated with buying, selling, and leasing properties, including solutions for fractional ownership and co-ownership.
  • Property Management and Operations: Enhancing methods for managing and operating properties to ensure higher efficiency.
  • End-User Experience Management: Improving the end-user experience and how they interact with the property.

 

In this context, PROPTEX seeks to advance these areas by supporting and developing proptech startups. By providing resources, mentorship, and investment opportunities, the program helps these companies make a positive impact in each of these areas, ultimately improving the efficiency and effectiveness of the real estate sector as a whole.

 

In terms of business development, how does PROPTEX help startups forge partnerships with established real estate companies, government bodies, or technology firms in the region?

PROPTEX is committed to setting precise criteria for selecting startups eligible for support, ensuring they are well-prepared for graduation. The primary criterion is having a working and validated Minimum Viable Product (MVP), rather than just initial ideas. Priority will be given to startups that have progressed beyond the MVP and seed stages.

 

Additional criteria include having initial customer traction and generating monthly recurring revenue (MRR) and securing initial investment sources. Furthermore, the startups must operate in sustainability fields and focus on smart buildings or contribute to the smart cities development, impacting the real estate market in Egypt and the MENA region.

 

PROPTEX emphasizes encouraging startups to expand in this field and build lasting partnerships by highlighting their work, providing comprehensive support, and inviting them to events that connect them with established real estate companies, construction firms, engineering consultants, government entities, and other potential partners. Prominent among these events is the Cityscape competition, which PROPTEX is organizing this September. This competition provides startups with the opportunity to present their project ideas in front of leading figures in Egypt's real estate sector.

 

Looking ahead, what are PROPTEX’s strategic goals for growth and innovation within the next five years? How do you plan to position yourself as a leader in the PropTech ecosystem across the MENA and GCC markets?

In its future plans, PROPTEX aims to incubate 50 startups over the next five years, with a target of 10 new companies annually. The program seeks to help these startups obtain external funding from venture capitalists, establish partnerships with real estate corporations, and achieve mergers and acquisitions in both local and international markets.

 

How AI is Transforming the E-commerce Landscape in Saudi Arabia

Kholoud Hussein 

 

Artificial Intelligence (AI) is playing a pivotal role in revolutionizing e-commerce in Saudi Arabia, reshaping the way businesses operate and interact with consumers. As the Kingdom’s e-commerce market rapidly expands, projected to reach $30 billion by 2026, AI is becoming a key driver of innovation, optimizing everything from customer experiences to logistics.

 

One of the most visible impacts of AI is in personalization. AI-driven algorithms analyze consumer behavior, preferences, and purchase histories to provide tailored recommendations. E-commerce platforms like Noon and Jarir are leveraging AI to create more engaging and personalized shopping experiences, which has been shown to increase conversion rates and customer satisfaction. Machine learning models help e-commerce businesses predict what products a customer is likely to purchase, creating a seamless and intuitive shopping experience.

 

AI is also enhancing customer support through the use of chatbots and virtual assistants. These tools provide instant, 24/7 customer service, handling inquiries, solving problems, and guiding shoppers through their purchasing journey. As Saudi consumers demand faster, more responsive service, AI-driven customer support systems are helping businesses meet these expectations efficiently.

 

Another critical application of AI in Saudi Arabia’s e-commerce sector is in supply chain optimization. AI-powered analytics predict demand, manage inventory, and optimize delivery routes, reducing costs and ensuring faster deliveries. According to a 2024 report by PwC, companies that have integrated AI into their supply chains have seen a 15% improvement in delivery efficiency and a 20% reduction in operational costs.

 

As Saudi Arabia continues to embrace Vision 2030 and the digital economy, AI’s role in e-commerce will only grow. By streamlining operations and enhancing customer engagement, AI is helping Saudi e-commerce businesses remain competitive in a rapidly evolving market.

 

 

How AI is Supporting the Circular Economy: Innovations from Saudi Startups

Kholoud Hussein 

 

As the world increasingly focuses on sustainability, the concept of a circular economy—a system where resources are reused, recycled, and repurposed to minimize waste—has gained prominence. Through its ambitious Vision 2030, Saudi Arabia is actively pursuing sustainable economic growth by integrating cutting-edge technologies into its business ecosystem. In this effort, artificial intelligence (AI) is emerging as a powerful tool in supporting circular economy models. Saudi startups are at the forefront of leveraging AI to drive innovations that support resource efficiency, waste reduction, and environmental sustainability.

 

The Importance of the Circular Economy in Saudi Arabia

 

The circular economy contrasts with the traditional linear economy, which follows a "take-make-dispose" model that leads to significant waste and environmental degradation. By contrast, the circular economy emphasizes keeping resources in use for as long as possible, extracting maximum value, and regenerating products at the end of their life cycle. This model is essential for Saudi Arabia as it seeks to reduce its reliance on oil and shift towards a more diversified and sustainable economy.

 

Saudi Arabia is undergoing an unprecedented transformation, with NEOM, The Red Sea Project, and other mega-projects setting ambitious sustainability goals. These initiatives are pushing the Kingdom to explore innovative solutions to achieve zero waste and carbon neutrality targets. According to the World Bank’s 2024 report on sustainability in the MENA region, Saudi Arabia's transition to a circular economy could save the country billions in resource extraction costs and significantly reduce its environmental footprint.

 

AI: A Key Enabler of the Circular Economy

 

Artificial intelligence is playing a critical role in advancing circular economy models in Saudi Arabia. By automating processes, improving resource efficiency, and enabling smarter decision-making, AI technologies are helping businesses optimize their use of materials, reduce waste, and minimize environmental impact. AI-driven systems can analyze data on a large scale, helping companies identify inefficiencies in their supply chains, predict future resource needs, and create innovative solutions for reusing materials.

 

Hala Al-Tuwaijri, the CEO of the Saudi Green Initiative, recently remarked in an interview with Saudi Gazette, "AI will be an indispensable tool in driving sustainability efforts across the Kingdom. Whether it's optimizing energy use, managing waste more effectively, or creating new recycling technologies, AI enables us to make smarter, greener decisions."

 

Saudi Startups Leading the Circular Economy Revolution with AI

 

Several Saudi startups are making significant strides in integrating AI into circular economy solutions, offering innovative technologies that support the sustainability goals of Vision 2030.

Sadeem, a Riyadh-based environmental tech startup, is using AI-powered sensors to optimize water and waste management systems. Founded in 2017, Sadeem developed a platform that monitors wastewater systems in real-time, helping cities and businesses reduce water wastage. The platform collects and analyzes data to predict potential failures in water systems, allowing for proactive maintenance and preventing leaks that lead to massive water loss.

 

By utilizing machine learning algorithms, Sadeem is also able to identify patterns in water usage and waste generation, enabling cities to optimize resource allocation. As Dr. Ahmed Al-Kahtani, CTO of Sadeem, noted in a recent interview, "Our AI solutions are not only making water management more efficient but are also contributing to broader sustainability goals by reducing waste and conserving precious natural resources."

 

Another innovative startup is the Plastic Bank Saudi Arabia that is driving circular economy solutions is Plastic Bank Saudi Arabia, which uses AI to track plastic waste across the Kingdom. Plastic Bank operates a blockchain-based marketplace where waste collectors can trade recyclable plastics for digital tokens. These tokens are then exchanged for essential goods, creating an incentive for waste collection and recycling.

 

Plastic Bank employs AI algorithms to track plastic waste collection data, identify recycling bottlenecks, and optimize waste management routes. This AI-driven approach has led to a 25% increase in plastic recycling rates in areas where the startup operates. According to 2024 statistics from the Saudi Ministry of Environment, Water, and Agriculture, the Kingdom produces over 3 million tons of plastic waste annually, much of which could be recycled if more efficient systems like Plastic Bank's were implemented.

 

David Katz, founder of Plastic Bank, stated during an interview at the World Economic Forum in 2024, "By combining AI with blockchain, we are creating a transparent, scalable model for managing plastic waste. Our goal is to turn plastic into a currency that benefits local communities and helps build a circular economy."

 

Naqaa Solutions, a Jeddah-based startup, focuses on sustainable waste management by leveraging AI-powered robotics for sorting waste materials more efficiently. The company has developed an automated system that uses computer vision and AI algorithms to sort recyclable materials from general waste, significantly reducing the amount of waste that ends up in landfills. This solution is particularly valuable for Saudi Arabia, where urbanization is leading to increasing waste production.

 

According to Naqaa's CEO, Fahad Al-Mutairi, "Our AI-driven sorting systems have increased recycling efficiency by 40%. We believe that smart waste management is essential for achieving the goals of Vision 2030, especially as the Kingdom moves towards building sustainable cities."

 

Naqaa has already partnered with local municipalities and large-scale industrial players to deploy its AI-driven sorting technology, contributing to the development of zero-waste cities in Saudi Arabia.

 

AI and Sustainable Supply Chains: A Perfect Match for the Circular Economy

 

One of the most significant ways AI is advancing the circular economy is through the optimization of supply chains. In traditional linear supply chains, materials are used once and then discarded. However, in a circular economy, materials must be continuously reused, recycled, or repurposed. AI can help by improving resource tracking, predicting demand more accurately, and identifying opportunities to reuse materials.

 

Predictive Maintenance and Resource Efficiency

 

AI's ability to monitor systems in real time and predict failures before they happen is transforming industries that rely heavily on machinery and equipment. For instance, AI-based predictive maintenance tools can analyze the performance of industrial equipment, allowing businesses to reduce downtime and extend the life of machinery. This reduces the need for new materials and resources, making the entire production process more sustainable.

 

Aramco, Saudi Arabia's oil giant, has already begun integrating AI for predictive maintenance in its supply chains, reducing resource consumption and minimizing waste. By applying similar technologies to the manufacturing sector, Saudi startups can extend the life of products and create more sustainable supply chains that align with circular economy principles.

 

Circular Economy Opportunities in Saudi Arabia’s Mega Projects

 

Mega projects such as NEOM, The Red Sea Project, and the Green Riyadh Initiative are setting high standards for sustainability. These projects are incorporating circular economy principles from the planning stages, and AI is playing a key role in ensuring these ambitions are met.

 

For example, NEOM has set a target of generating 100% renewable energy and zero-waste cities. AI systems are being deployed to manage energy consumption, optimize construction materials, and monitor environmental impact. The Red Sea Project is also integrating AI into its waste management systems to ensure all waste is recycled or repurposed, contributing to the project's carbon neutrality goals.

 

Mansour Al-Maimani, head of sustainability at the Red Sea Development Company, recently highlighted the importance of AI: "The circular economy cannot exist without innovation, and AI is the backbone of that innovation. In projects like The Red Sea, AI enables us to make real-time decisions that reduce waste, optimize energy, and create long-term sustainability."

 

Overcoming Challenges: The Role of AI in Regulatory and Market Integration

 

While AI holds great promise for supporting the circular economy, challenges remain. The integration of AI technologies requires significant data infrastructure, a highly skilled workforce, and clear regulatory frameworks. Many startups face challenges in accessing the data needed to develop effective AI models and in navigating the complexities of Saudi Arabia’s regulatory environment.

 

However, the Saudi government is taking steps to address these challenges. In 2024, the Saudi Data and AI Authority (SDAIA) launched new initiatives to support startups by providing access to government data and offering grants to develop AI solutions in the sustainability sector. Additionally, SDAIA is working on establishing ethical guidelines for the use of AI in industries like waste management and resource efficiency, ensuring that AI technologies are deployed responsibly.

 

AI as a Catalyst for the Circular Economy

 

As Saudi Arabia moves towards achieving its Vision 2030 sustainability goals, AI-powered startups are playing a crucial role in driving the transition to a circular economy. From waste management and recycling to resource efficiency and predictive maintenance, AI is enabling businesses to rethink how they use materials and optimize processes for a greener future.

 

With continued support from the government, investment in data infrastructure, and the innovation-driven efforts of Saudi startups, AI will be a key catalyst in building a sustainable, circular economy that not only benefits the Kingdom but serves as a model for the broader region.

How Financial Barriers Undermine Spiritual Equality for Pilgrims from Emerging Markets

William Phelps

 

In 2023, Saudi Arabia welcomed a record-breaking 13.5 million pilgrims for both Umrah and Hajj. This was the best attended year of pilgrimage to date, reflecting the Kingdom’s ambitious Vision 2030 goals of expanding the capacity of Hajj and Umrah whilst enhancing the experience of religious visitors. 

Despite the Government’s inspiring work in this regard, however, there still remain significant financial challenges for many pilgrims from emerging markets. These issues threaten the very essence of Hajj and Umrah – spiritual equality. 

 

Providing swift and streamlined solutions is a fantastic opportunity to add and support the modernization of pilgrimage. As I appreciate both the significance of and the challenges associated with the journey to Mecca. The financial barriers associated with emerging markets are not limited to their business and trade with Europe and North America: they are also acutely felt in Hajj and Umrah. Pilgrims from emerging markets often encounter financial obstacles that pilgrims from wealthier nations rarely face.

 

In 2024, almost 100,000 Nigerian pilgrims participated in Hajj, joining millions of Muslims worldwide in the sacred observance of Arafah Day. However, Nigerian pilgrims must navigate a complicated web of currency exchange issues. Due to limited access to foreign currency in Nigeria, most pilgrims resort to buying U.S. dollars in cash before travelling, only to sell them again upon arrival in Saudi Arabia at a significant loss. This process is not only stressful and cumbersome but also introduces security risks, not to mention the financial burden. Carrying large sums of cash while abroad detracts from what should be a peaceful, spiritual experience. 

 

Further, digital banking platforms like Revolut, Wise, or Monzo - widely used in Europe and the U.S. - are not accessible in many emerging markets. This further exacerbates the financial divide, forcing pilgrims to navigate their journey with additional stress; their focus should be entirely on their faith.

 

In my experience working with Nigerian pilgrims, I have seen the frustration this financial exclusion causes. For those fortunate enough to save and plan for a core tenet of their faith, it is a tragedy to think of it as marred by financial challenges and stress.

 

Pilgrims from countries like Pakistan, Bangladesh, and other emerging markets face similar challenges. This isn’t just an inconvenience - it risks creating a two-tiered pilgrimage experience, where the quality of a pilgrim’s journey is dictated by their financial means and country of origin.

 

Establishing “UmrahCash” to Bridge the Financial Divide

These challenges inspired me to launch UmrahCash, based between Jeddah and Kano in northern Nigeria. Our mission is to ensure that every pilgrim, regardless of their financial background, has access to the capital they need in a safe, secure, and seamless way. UmrahCash is not just another fintech app; it is designed to address the unique needs of pilgrims from emerging markets. Our platform caters to individuals with varying levels of financial and technological literacy, ensuring that both the banked and unbanked can participate in pilgrimage without financial stress.

 

With UmrahCash, we’ve simplified currency exchange, allowing pilgrims to convert their home currency directly to Saudi Riyals, eliminating the need to carry large amounts of cash. Starting in northern Nigeria, we’ve built a vetted network of agents who offer local language support and personalized assistance. Most importantly, we’ve created a platform that fosters trust and transparency, removing the risks associated with existing currency exchange methods.

 

Our goal is to empower pilgrims from emerging markets with the financial tools they need to focus on their spiritual journey, free from the worries of financial management. As such, we leveraged cutting-edge technology on the backend to streamline currency exchange and ensure that all financial transactions are secure, and efficient. We paired this with an easy-to-use front-end app that is accessible to users of all technical skill levels and backgrounds. 

 

A Path Forward for All Pilgrims

The significant growth in international Umrah pilgrims - 26.9 million in total in 2023, with the majority hailing from emerging markets - underscores the urgent need for inclusive financial solutions. Saudi Arabia’s Vision 2030 has laid the groundwork for innovation, with over $1.3 billion invested in developing infrastructure at the holy sites. But while infrastructure development is crucial, it’s only part of the solution. We must also address the financial barriers that prevent many pilgrims from fully engaging in their spiritual journey.

 

At UmrahCash, we believe that Umrah should be a unifying experience for all Muslims and are committed to bridging this financial divide, ensuring that all pilgrims, no matter their country of origin or economic status, can participate in the sacred journey to Mecca with peace of mind and spiritual fulfillment.

 

William Phelps is the founder of the “UmrahCash” application.