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

Oct 1, 2024

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.

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Tech for Accessibility: Startups Supporting People with Disabilities in Saudi Arabia

Ghada Ismail

 

Around the world, technology has become a catalyst for inclusion, transforming how people with disabilities engage with the economy, access education, and participate fully in society. From AI-powered communication tools to digital accessibility platforms and supported employment systems, innovation continues to dismantle barriers that once constrained opportunity.

In Saudi Arabia, this global wave of accessibility tech is gaining unique momentum. With Vision 2030 emphasizing social inclusion, human empowerment, and digital transformation, there’s a growing recognition that technology must work for all citizens, including the millions who live with disabilities. What was once mainly the responsibility of public institutions and NGOs is now increasingly being advanced by startups and mission-driven organizations harnessing technological solutions to improve the quality of life and economic participation for people with disabilities.

This article examines the evolving Saudi accessibility tech landscape, highlighting key innovations, market dynamics, real-world examples, regulatory and social context, and the road ahead.

 

Market Overview: Accessibility Innovation in Saudi Arabia

Saudi Arabia’s accessibility ecosystem still sits at an early but accelerating stage. Traditional assistive solutions—like mobility aids and localized special education tools—are now converging with digital services, AI-driven platforms, and inclusion-focused solutions designed for broad scalability.

Across the spectrum:

  • Digital accessibility is becoming a priority as more services move online.
  • Assistive technology empowerment is expanding beyond hardware into software and training.
  • Employment and skills programs are pairing digital tools with economic integration.

Despite this progress, challenges persist. These include limited local datasets for Arabic-native accessibility AI models, a scarcity of venture funding specifically earmarked for assistive technology, and ongoing gaps in awareness among private sector adopters. Yet Saudi Arabia’s digital-first trajectory, coupled with supportive government frameworks, creates fertile ground for further innovation.

 

Startup and Organization Profiles: Leaders in Accessibility

Advanced Access 

Advanced Access is a Saudi company dedicated to making digital platforms—websites, apps, and services—fully inclusive and usable by people of all abilities. Its core offering is digital accessibility auditing and consulting, combining automated and manual testing to identify barriers and guide organizations toward international accessibility standards. Beyond compliance, Advanced Access supports strategy development, training, and continuous improvement to ensure digital services are equitably accessible to users with visual, motor, cognitive, or sensory impairments. 

Importantly, Advanced Access aligns with Vision 2030’s goal of building a truly inclusive national digital ecosystem, positioning Saudi Arabia as a leader in digital accessibility. 

 

Tawasal Association for Assistive Technologies 

Tawasal is a pioneering association in Saudi Arabia focused on harnessing modern devices and software to improve everyday life for people with disabilities. Licensed by the National Center the Non-Profit Sector, the organization provides assistive devices, technology project support, and consultation tailored to individual needs and functional impairments. 

Rather than functioning solely as a product vendor, Tawasal acts as an integrator, connecting users with adaptive technologies (like communication devices or smart mobility aids), offering training, and facilitating community awareness about tech adoption. Its mission, “Better Technology, Easier Life,” reflects a holistic approach where technology meets real-world needs, especially among individuals who may struggle to access mainstream solutions otherwise.

 

Qaderoon Foundation 

While Qaderoon is a nonprofit rather than a classic tech startup, it plays a crucial role in the accessibility ecosystem by marrying digital inclusion with workforce integration. Based in Jeddah, Qaderoon focuses on rehabilitation, training, and employment opportunities for people with disabilities, equipping them with the skills and tools necessary to thrive in the modern job market. 

Its services include job placement portals, professional training programs, and workplace readiness initiatives that emphasize not just employment but sustained participation and independence. Qaderoon acts as a bridge between talent and opportunity, ensuring that accessibility tech and inclusive employment go hand in hand. 

 

Technological Innovations in Accessibility

Across these initiatives, specific technological threads are emerging:

  • Accessibility Standards and Digital Audits: Tools and processes that evaluate and fix digital barriers, ensuring compliance with accessibility guidelines and making online content usable for screen readers and adaptive interfaces.
  • Assistive Devices and Software: Adaptive technologies—from communication aids to mobility supports—are central to Tawasal’s mission, enabling users to overcome physical or functional barriers in daily life. 
  • Web and App Usability Enhancements: Modern UX design infused with accessibility considerations (contrast modes, keyboard navigation, alternative text protocols) helps digital services become universally accessible. 
  • Employment Tech Platforms: Digital recruitment and training systems support economic inclusion, bridging gaps between talent and opportunity for people with disabilities. This model is central to Qaderoon’s operations. 

Although AI-specific tools for people with disabilities (e.g., sign language recognition or predictive text for communication disorders) are not yet prominently developed by these organizations, the foundation they are building—especially in accessible digital frameworks—sets the groundwork for future AI-driven solutions.

 

Social and Regulatory Environment

Saudi Arabia’s regulatory landscape is evolving rapidly. National strategies and quality-of-life programs emphasize inclusion, accessibility, and technology empowerment. Digital platforms used by the government are increasingly expected to meet accessibility standards, creating demand for services like those offered by Advanced Access.

Meanwhile, nonprofits like Tawasal and Qaderoon benefit from government recognition and licensing, an indicator of institutional support for inclusive initiatives.

Social attitudes toward disability are also shifting. Where access was once framed primarily as a welfare issue, it is now increasingly positioned as a matter of civil inclusion and economic participation. This cultural change—amplified by awareness campaigns and visibility of people with disabilities in public life—creates a more fertile environment for accessibility innovation.

 

Future Outlook: Growth Ahead

Looking forward, Saudi Arabia’s accessibility tech sector is poised for expansion in several key directions:

  • AI-Driven Accessibility Tools: As data ecosystems grow, there’s potential for AI models tailored to assistive use cases (e.g., Arabic-language speech recognition or predictive text for alternative communication).
  • Accessible Government Services: With digital transformation underway across the public sector, accessibility compliance could become a basic requirement, boosting demand for auditing and consulting services.
  • Inclusive Employment Platforms: Digital platforms linking people with disabilities to jobs—and supporting employers in creating accessible work environments—could proliferate alongside Saudi labor reforms.
  • Cross-Sector Innovation: Integrations between healthtech, smart mobility, and digital inclusion promise hybrid solutions that enhance independent living.

To sustain this momentum, collaboration will be key. Startups, nonprofits, government agencies, tech giants, and investors must work together—sharing data, co-developing solutions, and scaling what works.

 

Conclusion

Technology’s potential to empower people with disabilities in Saudi Arabia is no longer theoretical; it is tangible, actionable, and growing. Organizations like Advanced Access, Tawasal, and Qaderoon demonstrate how digital inclusion can intersect with real-world impact, from accessible websites to assistive technologies and inclusive employment.

By continuing to invest in technology built with and for people with disabilities, Saudi Arabia can not only close persistent gaps in accessibility but also unlock new avenues for dignity, independence, and participation for all.

Saudi resale revolution: how secondhand market is reshaping e-commerce

Noha Gad

 

The e-commerce sector in Saudi Arabia has settled into a stable, high-growth era, driven by increased opportunities for e-commerce players and a continued rise in consumer preference for innovative new payment methods, ranging from Buy Now, Pay Later (BNPL) to crypto and digital wallets. According to the latest report released by the Ministry of Commerce, the e-commerce sector experienced a 5% increase in existing registrations during the third quarter (Q3) of 2025, reaching 41,816 registrations, compared with 39,769 in Q3-24. Another report published by Modor Intelligent indicated that the e-commerce market size in Saudi Arabia reached $27.9 billion in 2025, and is projected to grow at a compound annual growth rate (CAGR) of 11.9% between 2026 and 2031. The re-commerce sector emerged rapidly across the Kingdom, transforming the way consumers buy and sell pre-owned goods. Fueled by a large, connected youth population and a booming e-commerce ecosystem, buying and selling pre-owned goods through specialized applications and online platforms moved from a niche practice to a mainstream economic activity. 

Digital marketplaces are redefining value for Saudi consumers, offering access to high-quality secondhand electronics, fashion, furniture, vehicles, and real estate units with unprecedented convenience and security. This tech-driven sector not only unlocks significant economic value for individuals and entrepreneurs but also aligns with national priorities by promoting a more circular economy and sustainable consumption patterns in alignment with Vision 2030.

Resale in Saudi Arabia primarily refers to the informal buying and selling of pre-owned goods through digital platforms, such as Haraj, Soum, Kayishha, Syarah, Dubizzle, and OpenSooq, where transactions rely on personal trust, direct negotiation, and minimal platform intervention. This model dominates for everyday items, such as used furniture, cars, and mid-range fashion, often lacking formal quality checks or warranties.

The re-commerce market in Saudi Arabia is expected to grow annually by 15.8% to record $1.75 billion in 2025. According to a recent report published by ResearchAndMarkets, the market is expected to grow at a CAGR of 13.3% between 2025 and 2029 to reach $2.88 billion by the end of 2029. This growth will be fueled by a mix of economic drivers, policy support, and digital infrastructure and payment readiness

Rising living costs amid aspirational spending made pre-owned goods a practical choice for electronics, fashion, and appliances, especially as new luxury items strain budgets for the Kingdom's young urban professionals. This shift is evident in the rapid growth of electronics trade-ins and fashion resale, where affordability meets desire without compromising perceived quality. Additionally, re-commerce aligns perfectly with Vision 2030’s circular economy targets by extending product lifecycles, appealing to a rising eco-conscious demographic that views resale as both sustainable and patriotic.

High smartphone penetration, advanced logistics, and widespread digital wallets enabled key players in the Saudi market to offer seamless transactions. Trust mechanisms such as escrow, buyer protection, and cash-on-delivery (COD) options bridge cultural preferences for secure deals. This infrastructure, combined with social media's influence, accelerates peer-to-peer (P2P) and B2C models, making Saudi Arabia a frontrunner in regional re-commerce maturity.

Saudis have long embraced resale through trusted informal channels, but digital platforms now focus on structure, quality assurance, and scale to evolve the market.

 

Key players in the Saudi market

  • Haraj: Established in 2007, Haraj is a Saudi marketplace for all goods, cars, real estate, and electronics. It initially focused on cars, then moved to real estate, and ended up being the one-stop shop for all classifieds in the Kingdom. Receiving over half a million visitors daily, Haraj applies the world's latest technologies at the back-end to provide developers with a great environment to learn and empower entrepreneurs to build a strong base before expanding the market.
  • Soum: One of the leading marketplaces for secondhand electronics in Saudi Arabia that enables users to buy, sell, and discover various products, including desktops, laptops, tablets, smartwatches, cameras, headphones, and more. This first-of-its-kind unified national application enables both small and medium-sized enterprises (SMEs) and individuals to sell in its marketplace, leveraging its wide network that covers over 150 Saudi cities.
  • Kayishha: A reliable car buying company in Saudi Arabia that helps car sellers sell their used cars in a hassle-free manner, regardless of their make, model, age, or condition. Using a safe and transparent car-selling process, Kayishha enables sellers to sell their cars in just 30 minutes.
  • OpenSooq: The leading mobile-first classifieds marketplace in the Middle East and North Africa (MENA) region that allows users to buy, sell, and trade a wide variety of goods and services. It enables user-to-user real-time chat and allows each user to build their own profile.

 

Saudi consumer engagement with the resale market is a significant and growing trend, primarily driven by a generational shift where younger buyers prioritize value and sustainability over pristine newness. Tech-savvy youth are the primary adopters of digital resale platforms, using them for value-driven purchases and to generate side income. In the context of high costs for new vehicles, electronics, and branded goods, the resale market serves as a strategic channel for cost-conscious consumers to access quality products. However, quality and counterfeiting fears persist, particularly for fashion and tech. 

The resale market in the Kingdom faces several distinct challenges that affect its scalability, trust, and user experience. Major challenges include:

  • Lack of standardization: In open-market platforms, product grading, condition descriptions, and imagery are not standardized, leading to buyer-seller disputes and hesitation.
  • Counterfeit and misrepresented goods: Particularly in high-value segments like luxury fashion, electronics, and automotive parts, verifying authenticity and accurate condition descriptions remains a significant hurdle.
  • Seller accountability: Ensuring reliable seller behavior, honest representation, and safe transaction completion can be difficult on P2P platforms without robust mediation systems.
  • Returns and refunds complexity: Establishing fair and clear return policies for used items is a persistent operational and customer service challenge.
  • Consumer protection gaps: The legal framework for disputes in private online sales is less clear than for registered e-commerce businesses, potentially leaving buyers and sellers vulnerable.

Additionally, challenges center on building systematic trust, streamlining complex operations, and changing deep-seated consumer habits. Addressing these issues through technology, standardized services, and clear regulations is instrumental for the Saudi resale market to mature from a popular informal exchange into a structured, high-growth segment of the retail economy.

Finally, Saudi Arabia’s e-commerce landscape is advancing on two dynamic fronts: the mature expansion of traditional e-commerce and the rapid emergence of re-commerce. Together, they are fundamentally reshaping the Kingdom’s retail economy, driven by digital adoption, youthful demographics, and alignment with Vision 2030's economic diversification and sustainability goals. The re-commerce sector evolved from informal P2P trading into a structured, high-potential market projected for significant growth. Digital marketplaces are driving this shift, moving the market toward greater convenience, trust, and scale. As these marketplaces continue to innovate and integrate stronger trust mechanisms, they will not only capture greater market share but also redefine sustainable consumption for a generation.

How Startups Can Use Gamification to Supercharge Their Marketing

Ghada Ismail

 

In a competitive digital landscape, grabbing attention and keeping users engaged is tougher than ever. Traditional marketing tactics alone often fall short in capturing long-term interest. This is where gamification—the practice of applying game mechanics to non-game experiences—comes in. By making interactions fun, interactive, and rewarding, gamification transforms ordinary campaigns into experiences that motivate, engage, and create loyalty.

 

What is Gamification?

Gamification involves integrating elements like points, badges, levels, challenges, leaderboards, and rewards into marketing, apps, or digital platforms. It leverages human psychology by tapping into natural drivers such as achievement, progress, recognition, and competition. When users feel motivated by these triggers, they are more likely to take the actions you want as a business owner, including signing up, sharing content, purchasing, or returning regularly. In short, gamification is about making engagement both enjoyable and purposeful.

 

1. Understand Your Audience

Not all users respond to the same incentives. Some are motivated by competition and social recognition, while others seek personal achievement, mastery, or tangible rewards. Startups need to research and segment their audience to understand these motivations. By aligning gamification mechanics with user preferences, you create experiences that feel meaningful rather than gimmicky, increasing the likelihood of consistent engagement.

 

2. Set Clear Objectives

Gamification should be integrated into a broader marketing strategy, not treated as a standalone tactic. Every gamified element should tie back to specific business goals. For example, if your aim is to grow your email list, the gamification should reward sign-ups or referrals. If your goal is repeat purchases, points, or progress tracking tied to buying behavior can encourage loyalty. Clearly defined objectives also allow you to measure success, adjust strategies, and ensure your gamification delivers tangible results.

 

3. Incorporate Game Mechanics Thoughtfully

Choosing the right mechanics is essential. Gamification tools like points, badges, levels, challenges, leaderboards, and progress bars can all enhance engagement, but only if they are implemented thoughtfully. Points and rewards incentivize specific actions, while badges and levels recognize achievement and create a sense of progress. Leaderboards foster healthy competition, challenges encourage ongoing interaction, and progress bars visually track advancement, keeping users motivated and invested over time.

 

4. Make It Social and Shareable

Humans are inherently social creatures, and gamification thrives on social interaction. When users can share achievements, invite friends, or compete with peers, engagement naturally increases. Social features also amplify the reach of your campaigns, turning users into organic promoters of your brand. Encouraging friendly competition or cooperative challenges can transform a passive marketing experience into an interactive, community-driven journey.

 

5. Tie Rewards to Real Value

Rewards are only effective when they feel worthwhile. They don’t always need to be financial; recognition, early access, exclusive content, or digital perks can be equally compelling. The key is that rewards align with user interests and reinforce desired behaviors. When users perceive genuine value in the rewards, they are more likely to participate and remain engaged.

 

6. Test, Measure, and Iterate

Gamification is not one-size-fits-all. Continuous monitoring, testing, and refinement are essential to maintain effectiveness. Startups should track engagement metrics, experiment with different mechanics, and respond to user feedback. Iteration ensures that gamified experiences evolve alongside user behavior and market trends, keeping your marketing strategy relevant and impactful.

 

Wrapping Things Up…

Gamification can transform traditional marketing into interactive, engaging experiences that drive meaningful actions and foster loyalty. For startups, it offers a cost-effective way to increase user engagement, encourage repeat interactions, and differentiate your brand. By focusing on audience motivations, setting clear goals, thoughtfully implementing game mechanics, creating social interactions, providing meaningful rewards, and iterating based on feedback, startups can use gamification to deliver campaigns that are both fun and results-driven.

Unlocking startup profits: master MROI to turn marketing spend into growth

Noha Gad

 

Startups often struggle with limited budgets while pursuing rapid growth, relying on lean marketing approaches such as growth hacking, content marketing, and digital channels to maximize revenues. These strategies prioritize low-cost, high-impact tactics such as social media virality, SEO-driven inbound leads, and influencer partnerships over traditional mass advertising. Therefore, marketing return on investment (MROI) became crucial as it evaluates how effectively these efforts translate spending into profitable revenue.

 

What is marketing ROI?

Marketing ROI is a performance measure used to evaluate the efficiency of a marketing campaign or to compare the efficiency of different campaigns, helping marketers understand what is working, what is not, and where to adjust. It is a critical metric for proving marketing’s impact on growth and making smarter budget decisions.

It refers to all profit and revenue growth from all marketing channels, which may include email marketing, social media marketing, digital marketing, and any other type of marketing.

MROI contributes to assessing broader value, such as customer engagement, brand visibility, and long-term impact, by evaluating how different channels and campaign types boost business growth. It also helps startups build a strategy that delivers both short-term results and long-term gains.

 

Marketing ROI = (Revenue Generated from Marketing - Cost of Marketing) / Cost of Marketing 

 

Startups and companies can track marketing ROI by evaluating the cost ratio or efficiency ratio. This formula calculates how much money is generated for every marketing dollar spent. An efficient marketing campaign may result in a cost ratio of 5:1—that is, $5 generated for every $1 spent, with a simple marketing ROI of 400%. 

Early-stage companies typically aim for MROI benchmarks of 3:1 to 5:1, adapting as they scale from acquisition-focused tactics to retention-driven models. It shifts focus from vanity metrics, such as impressions, to revenue realities, enabling data-backed pivots in volatile markets. 

 

Marketing ROI vs. traditional ROI

MROI fundamentally differs from traditional ROI in accounting terms due to the way each is classified and treated on financial statements. Traditional ROI applies to capital expenditures (CAPEX), where funds are invested upfront and depreciated over time, generating returns from long-term assets. Meanwhile, MROI treats marketing spend as operational expenditure (OPEX), expensed immediately in the current period rather than capitalized.

MROI divides incremental profit contribution after marketing costs by the full spend, ignoring asset depreciation since marketing does not create lasting balance sheet items. Traditional ROI, however, uses assets tied up in balance sheets, enabling residual income calculations that factor the minimum required returns on those assets. 

 

Why marketing ROI matters?

Marketing ROI illustrates how the company’s marketing is performing and its impact on the business. When MROI data shows which marketing channels are most effective and most profitable, companies can pivot their marketing spend to focus on those channels and reach more customers. The ability to quickly and clearly determine the most effective marketing tactics and channels is particularly important for SMEs, where budgets are more constrained, and value needs to be proven as fast as possible.

For C-suite executives, especially CMOs and CFOs, marketing ROI provides the financial justification for continued investment. For marketing teams, it offers the language and metrics to communicate value in terms that resonate throughout the organization and to facilitate cross-team collaboration.

In conclusion, mastering MROI empowers startups to navigate tight budgets with precision, transforming lean tactics, such as SEO, social media virality, and content marketing, into scalable growth engines that deliver measurable profits.

Unlike traditional ROI, which handles long-term capital assets depreciated over time, MROI treats marketing as immediate operational expenses, emphasizing short-term incremental gains without balance sheet complications. This distinction empowers faster pivots, sharper budget decisions, and stronger alignment between marketing and finance leaders.

Ultimately, startups that prioritize MROI foster a cycle of continuous optimization, which includes auditing campaigns regularly, relocating to top performers, and scaling what works. This not only justifies marketing's role to executives but also drives lasting customer acquisition, retention, and business success in competitive landscapes.

The Rise of Saudi Biotech: Startups Driving the Kingdom’s HealthTech Revolution

Ghada Ismail

 

Saudi Arabia’s push to diversify its economy under Vision 2030 has brought several sectors into sharp focus, but few are as strategically significant as biotechnology. Once viewed largely as a research-driven niche, biotech has now become a national priority—one that sits at the intersection of healthcare resilience, economic diversification, food security, and advanced manufacturing. At the heart of this shift is a growing cohort of startups working to translate scientific research into scalable, locally relevant solutions.

While Saudi Arabia’s biotech startup ecosystem remains relatively young compared to established global hubs, momentum is building quickly. Government-backed accelerators, evolving regulatory frameworks, and stronger collaboration between academia, hospitals, and industry are laying the foundations for a homegrown life sciences sector with regional—and potentially global—reach.

 

Why Biotech Matters to Saudi Arabia

Biotechnology holds a unique position in Saudi Arabia’s long-term economic planning. Beyond innovation, it addresses structural national challenges. The Kingdom faces a high prevalence of chronic conditions such as diabetes, cardiovascular disease, and inherited disorders, while remaining heavily dependent on imported pharmaceuticals and biologics—an exposure highlighted during recent global supply chain disruptions.

In response, Saudi Arabia launched its National Biotechnology Strategy in January 2024, aiming to localize biopharmaceutical manufacturing, strengthen research and development capabilities, and attract global partnerships. Closely aligned with Vision 2030, the strategy supports broader goals, including knowledge transfer, high-value job creation, and non-oil GDP growth.

Startups play a central role within this framework. Unlike large pharmaceutical companies, early-stage ventures are inherently agile, able to experiment with novel technologies and address niche or underserved health needs. In Saudi Arabia, many are focusing on solutions tailored to regional disease profiles, giving them both local relevance and long-term competitive potential.

 

The Rise of Saudi Biotech Startups

Although still limited in number, Saudi biotech startups are expanding rapidly in scope, spanning diagnostics, therapeutics, genomics, regenerative medicine, and antimicrobial innovation. Many have emerged from university research environments or were founded by Saudi scientists returning from abroad with international experience.

One of the most closely watched areas is diabetes innovation, driven by the Kingdom’s high disease prevalence and the strategic need to localize essential treatments. Plansulin, a Riyadh-based startup founded in 2020, is developing plant-based insulin as an alternative to conventional biologics manufacturing. By using plants as biofactories, the company aims to reduce production costs, lower environmental impact, and improve the sustainability of insulin supply. Plansulin is part of the inaugural cohort of startups selected for the Ministry of Health’s Biotech Accelerator, reflecting its alignment with national healthcare and innovation priorities.

Another startup attracting attention is cellNUA, which operates at the intersection of nanomedicine and immunotherapy. The Saudi arm of the Ireland-based company draws inspiration from natural immune mechanisms—particularly those found in honeybees—to inform its therapeutic development. Through its Beemar platform, cellNUA explores comparative genomics and bio-inspired nanomolecules to develop next-generation vaccines, antivirals, and immune-modulating therapies. While still in early development stages, the company exemplifies the type of science-driven innovation policymakers are keen to nurture.

Vaccine development is also gaining traction. SAGEbio is working on next-generation vaccine and therapeutic protein platforms designed to improve efficacy and scalability. Its novel antigen platform, co-developed with King Abdullah University of Science and Technology (KAUST), aims to enhance vaccine manufacturing and delivery. The startup’s lead COVID-19 vaccine candidate is advancing toward Phase 1 clinical trials, highlighting efforts to build local capabilities for future pandemic preparedness.

 

Genomics and Precision Medicine Take Center Stage

Genomics has emerged as one of Saudi Arabia’s most promising biotech verticals, supported by initiatives such as the Saudi Genome Program, which is building one of the region’s largest population-specific genetic databases. This infrastructure is creating fertile ground for startups focused on precision diagnostics and personalized medicine.

Novo Genomics, founded in 2022, is one such company. Based in Riyadh, it specializes in advanced genetic diagnostics, including circulating tumor DNA testing and polygenic risk scoring tailored to Saudi and Middle Eastern populations. By grounding its technology in local genomic data, Novo Genomics addresses a key limitation of imported diagnostic tools that are often trained on non-representative datasets.

Similarly, NanoPalm is developing advanced delivery technologies, including lipid nanoparticle systems that improve the effectiveness of genetic and RNA-based therapies. As global biotech increasingly shifts toward gene-based treatments, delivery mechanisms have become as critical as the therapies themselves, making NanoPalm’s focus particularly timely.

Early detection is another growing focus. KaRama Bio is working on early-stage disease detection technologies, reflecting a broader shift toward preventive and predictive healthcare. Early diagnosis remains one of the most effective ways to reduce long-term healthcare costs and improve patient outcomes, particularly in oncology and chronic disease management.

 

Regenerative Medicine and Novel Therapeutics

Beyond diagnostics, Saudi biotech startups are also exploring regenerative medicine and alternative therapeutic approaches. MammoStem focuses on stem cell-based solutions aimed at tissue regeneration and recovery, particularly following surgical or chronic conditions. While regenerative medicine is complex and heavily regulated, it holds significant long-term potential as populations age and demand for restorative therapies increases.

Antimicrobial resistance represents another strategic frontier. With antibiotic resistance widely recognized as a global health threat, PhageTech is developing bacteriophage-based solutions as alternatives to conventional antibiotics. Although phage therapy remains relatively niche, renewed global interest suggests that local innovation in this space could position Saudi Arabia as a regional leader.

 

Building the Ecosystem: Accelerators and Institutions

Biotech startups do not operate in isolation, and Saudi Arabia has begun addressing one of the sector’s biggest barriers: ecosystem support. A major milestone was the launch of the Kingdom’s first dedicated Biotech Accelerator by the Ministry of Health in partnership with global life sciences incubator BioLabs. Announced at the BIO International Convention, the accelerator provides mentorship, lab access, commercialization guidance, and global networking opportunities.

Earlier-stage support has also come from the Badir Biotechnology Incubator, under King Abdulaziz City for Science and Technology (KACST), which has played a foundational role in translating research into viable biotech companies through funding, technical support, and industry connections.

Complementing these initiatives, Dammam Valley launched its Biotech Startups Programme to bridge the gap between research and commercialization. Developed in partnership with Imam Abdulrahman bin Faisal University, Saudi Aramco, multiple ministries, the Future Investment Initiative Institute, and Sadara Petrochemical Company, the program supports startup creation, technology localization, and access to investment aligned with the National Biotechnology Strategy.

On the manufacturing front, Saudi Biotechnology Manufacturing Company (SaudiBio) is laying the groundwork for scalable biopharmaceutical production. The company operates the Kingdom’s first GMP-certified sterile fill-and-finish facility for biologics, including insulin and biosimilars, enabling startups to transition from lab-scale innovation to commercial readiness.

Private capital is also beginning to play a larger role. Founded in 2024, Biotech Innovations Co (BIC) represents a new wave of private-sector investment into biologics, vaccines, and gene therapy R&D, helping anchor startups within a broader industrial value chain.

 

Regulatory Progress and Remaining Challenges

Despite rapid progress, Saudi Arabia’s biotech ecosystem still faces structural challenges. Biotechnology is capital-intensive, with long development timelines and complex regulatory requirements. Access to late-stage funding, particularly for clinical trials, remains limited, and navigating approvals can be challenging for first-time founders. Talent availability is another constraint, as advanced biotech R&D requires specialized expertise that is still developing locally.

These challenges, however, are not unique to Saudi Arabia. What distinguishes the Kingdom is the scale of state commitment to addressing them through coordinated policy, funding, and international collaboration.

 

Looking Ahead: From Emerging Market to Regional Hub

Saudi Arabia’s biotech startup scene may still be emerging, but its trajectory is clear. With strong government backing, growing private-sector involvement, and a focus on locally relevant health challenges, the Kingdom is laying the foundations for a sustainable life sciences economy.

Over the next decade, success will depend on startups’ ability to scale, attract long-term investment, and integrate into global biotech value chains. If these conditions are met, Saudi Arabia could evolve from a consumer of biotechnology into a regional—and eventually global—contributor to life sciences innovation.

In that sense, biotech startups represent more than another Vision 2030 initiative. They signal a deeper shift in how the Kingdom approaches health, science, and economic resilience.