Kholoud Hussein 

In the world of venture capital, mergers, and rapid-growth startups, few terms carry as much weight—or anxiety—as due diligence. It is the checkpoint between a startup’s ambition and an investor’s capital, the rigorous validation process that determines whether a business is truly worth the risk. Although often spoken about as a routine step, due diligence has evolved into a sophisticated, multilayered investigation that shapes the fate of fundraising rounds, acquisitions, and even long-term survival.

At its core, due diligence refers to the comprehensive assessment conducted by investors, acquirers, or financial institutions to evaluate a startup’s viability—financially, legally, operationally, and strategically. It is the process through which claims are tested, risks are measured, and assumptions are either validated or exposed. For early-stage founders, this is the moment when the narrative must finally match the numbers.

In practical terms, due diligence begins when an investor shows serious interest in a startup. The glossy pitch deck no longer suffices; instead, founders must provide access to detailed financial reports, customer metrics, intellectual property documentation, legal filings, product performance data, and more. Everything from revenue consistency to founder equity structure is scrutinized. The goal is simple: to ensure that what the startup says it is building aligns with what it actually operates.

This process typically spans several categories—financial, legal, technical, and commercial. Financial due diligence reveals whether revenues are stable or inflated, whether burn rate is manageable, and whether the business’s cost structure is built for scale. Legal due diligence uncovers potential landmines: unregistered trademarks, unsettled disputes, improper employment contracts, or shareholder conflicts that could hinder growth. Technical due diligence has become increasingly essential in a world dominated by AI, cloud software, and cybersecurity threats, as investors assess whether the product is robust, defensible, or even feasible at scale. Commercial due diligence, meanwhile, evaluates market potential—customer retention, competitive positioning, and sector dynamics.

For startups, due diligence functions as a double-edged sword. While it is often stressful and time-consuming, it also acts as a validation milestone. A company that passes rigorous due diligence signals maturity and credibility in the market. Investors tend to view such startups not just as promising, but as stable and trustworthy. In regions such as the GCC, where the venture capital landscape is accelerating rapidly, due diligence has become essential in separating hype from genuine scalability.

Startups are increasingly preparing for due diligence earlier than ever—sometimes before even seeking investment. Many adopt internal “data room” structures, organize compliance documentation, and maintain accurate financial records to avoid last-minute surprises. This preparation reflects a broader maturity in the ecosystem: as competition increases, investors demand cleaner, more transparent operations.

In Saudi Arabia, for example, the surge in venture capital activity under Vision 2030 has brought heightened attention to governance and operational resilience. With record-breaking investments across sectors like fintech, logistics, cloud services, and AI, startups are expected to demonstrate not only innovation but also sustainable growth paths supported by data. Due diligence is the mechanism ensuring that capital is deployed responsibly in this new economy.

Global investors entering the MENA region also rely heavily on robust due diligence to navigate fragmented regulations, young markets, and rapidly growing sectors. For many foreign funds, the depth and transparency of due diligence outcomes often determine whether they will green-light an investment in the region. Consequently, startups that maintain high-quality operational discipline gain a competitive edge—not just locally, but globally.

In essence, due diligence is not a barrier; it is a blueprint. For founders, preparing for it forces clarity of vision, discipline around metrics, and alignment across teams. For investors, it is the safeguard that ensures capital goes to companies with real potential. And for the broader startup ecosystem, it serves as a mechanism of integrity—one that helps shape sustainable growth.

As venture capital deepens its roots in emerging markets and competition for capital intensifies, due diligence will remain the defining test of a startup’s readiness. In the end, the companies that embrace transparency, maintain operational rigor, and deliver measurable results will be the ones that survive the scrutiny—and secure the funding needed to thrive.

Noha Gad

People often think building wealth through property means buying a house, managing tenants, and handling repairs, but there are simpler, more liquid ways to capture real estate returns without becoming a landlord. Investors who want exposure to commercial buildings, warehouses, data centers, or apartment complexes can do so through vehicles that behave more like stocks than physical assets, helping them focus on allocation and income rather than daily property management. A Real Estate Investment Trust (REIT) is one of those vehicles.

What are REITs?

REITs are companies that own, operate, or finance income-producing real estate across a wide range of property sectors. These investments can often be purchased through top brokerage and real estate crowdfunding platforms. They allow investors to earn income from real estate without having to buy, manage, or finance properties by themselves.

REITs make institutional-scale real estate accessible to individual investors by packaging property cash flows into tradable shares, offering a combination of regular income, potential capital appreciation, and diversification benefits that differ from both direct property ownership and traditional equities.

They invest in different properties, including apartment complexes, data centers, healthcare facilities, hotels, infrastructure, office buildings, retail centers, self-storage units, timberland, and warehouses. They often specialize in specific real estate sectors, like commercial properties. However, many hold diversified portfolios with different property types.

REITs perform three primary roles: acquire and manage income-producing properties; finance real estate through mortgages or mortgage-backed securities; or combine both activities in a hybrid model. Equity REITs generate cash by leasing space and managing properties; mortgage REITs earn interest on loans and securities; hybrids mix rental income and interest income. 

Criteria for REIT Qualification

A company must meet several requirements to qualify as a REIT, including:

• Must be a taxable corporation.
• Must be managed by a board of directors or trustees.
• Have no more than 50% of its shares held by five or fewer individuals
• Invest at least 75% of total assets in real estate or cash.
• Derive at least 75% of gross income from rent, interest on mortgages that finance real estate, or real estate sales.
• Pay a minimum of 90% of their taxable income to their shareholders through dividends.
• Have a minimum of 100 shareholders.

Key types of REITs

1. Equity REITs. Equity REITs own and manage income-generating real estate. Revenues are generated primarily through rent, not by reselling properties. They offer more stable, operational cash flows tied to occupancy, lease terms, and rent growth. This type is commonly the go-to vehicle for investors seeking dividend income plus potential appreciation from rising property values.
2. Mortgage REITs. Mortgage REITs invest in mortgages, mortgage-backed securities, or other real-estate debt instruments and earn income from the interest spread. Because their returns depend on interest-rate spreads and financing conditions, Mortgage REITs are generally more sensitive to rate volatility and can show higher short-term earnings variability than equity REITs.
3. Hybrid REITs. This type combines strategies from both equity and mortgage REITs, holding both properties and real-estate debt. This structure can offer diversification within a single vehicle but also mixes the operational risks of property ownership with the interest-rate and credit risks of mortgage lending.
4. Private REITs. These REITs are sold to accredited investors or institutions and are not registered with public exchanges; they often pursue niche strategies, bespoke property portfolios, or longer-term value creation. Private REITs can offer access to specialized deals but carry higher minimums, limited transparency, and extended lock-ups.

Why investors use REITs?

REITs help investors access property returns through tradable shares, combining income potential with professional management and easier liquidity. Key reasons why investors include REITs in portfolios are:

• Generating income: REITs pay out most taxable income as dividends, providing regular cash flow and often higher yields than typical stocks.
• Diversification: REITs add real-estate cash flows and property-value returns to a portfolio, lowering concentration risk compared to holding only stocks or bonds.
• Inflation hedge: Property rents and lease escalators can help preserve purchasing power, with faster pass-through in sectors with shorter leases.
• Liquidity and accessibility: REITs let investors buy real-estate exposure easily through a brokerage without large capital or hands-on management.
• Professional management and scale: REITs are run by experienced property and capital-markets teams who can access deals and financing that individual investors usually cannot.

By: Michael Cade, Global Field CTO, Veeam Software 

So far, AI adoption has outpaced regulatory frameworks, leaving organizations largely to make up their own rules. But this lack of clarity hasn’t slowed organizations down. In fact, McKinsey’s latest survey found that 88% of organizations already report using AI in at least one business function. Despite this, innovation has slowed, and it’s become clear that organizations have overlooked a key enabler of safe and secure AI - data sovereignty.

Simultaneously, regulation has begun to catch up, and much of it points to the same principles of data sovereignty and AI visibility. Take the EU AI Act, for example, which sets strict, risk-based rules on both AI development and deployment within the EU to improve AI visibility. 

Rather than blindly charging ahead, organizations need to pause to develop transparent, traceable, and sovereign-by-design data architectures. Otherwise, they won’t just be unable to unlock the true potential of AI for their businesses; they’ll also fall behind on regulatory compliance. 

Not all data is good data.

As you might expect, both digital sovereignty and AI innovation boil down to data. It’s already well documented that AI needs a lot of data, and we’ve got plenty, with the IDC estimating that the global datasphere reached around 181 zettabytes annually in 2025. But, despite having plenty of data, Generative AI (genAI) pilots continue to fail widely. Some research suggests that as many as 95% of enterprise genAI pilots fail to reach production, or even demonstrate measurable ROI. The reason? Long-standing data hygiene issues. 

Thanks in no small part to AI, data growth has become exponential, but organizations have largely failed to keep up. This influx has far outpaced storage processes, and organizations have somewhat taken their eye off the ball, with ‘junk’ data being stored alongside the ‘useful’ data required for AI usage. And ultimately, AI systems inherit not just the bias but also the quality and structure of the data they are trained on. So, if the training sets are poorly structured and include ‘junk’ data, outputs, and usability suffer. 

There’s also a significant knock-on effect with compliance and regulation. While regulatory bodies are yet to agree on a unified approach to AI regulation, it’s already becoming clear that visibility will be central to future requirements. In Europe alone, the EU AI Act and the NIS2 Directive are already signaling a broader push for stronger governance, transparency, and control over operational and training data. And without strong sovereignty, organizations will remain unable to map and understand their data landscape to adhere to existing and future requirements. 

Sorting the wheat from the chaff 

After the last few years of data growth, the sheer scale of the workloads most businesses now hold can seem daunting. Before organizations can improve their data hygiene, they first need to understand and classify their data. Not just for what it contains, but also according to how sensitive it is. A piece of data may be useful for a genAI pilot, but if it’s too sensitive, it cannot be used. This level of understanding not only avoids mistakenly giving genAI programmes sensitive data, but could also be key to creating genAI that delivers on its potential. Instead of training it on a pile of ‘useful’ data peppered with ‘junk’ data, organizations will be able to feed AI only the information it actually needs. 

Once this is all in place and you know what you’re working with, organizations can begin to define the sovereignty requirements for each data bucket, including both regulatory and locality rules. For some, the knee-jerk reaction is to restrict usage to meet the strongest requirements of data localization laws. Still, the EU’s GDPR, for example, doesn’t mandate localization within a specific EU country, just to the European Economic Area (EEA), although it does place strict restrictions on the transfer of personal data outside the EEA – creating a ‘soft localization’ effect in practice. There’s a lot of nuance within this, which is why many organizations are adopting hybrid or multi-cloud architectures to maintain flexibility over where workloads are processed and stored. With these, organizations can restrict data where needed to meet localization requirements, while still maintaining data portability, which will be essential as regulations continue to change. This flexibility and transparency allow organizations not just to monitor where their data resides, but who can access it - essential knowledge not just for compliance, but for security too. 

Not just a tickbox

Up until now, data sovereignty has been relegated to the bottom of the priority list, seen mostly as a compliance exercise. Organizations have ticked it off, but only as part of a longer list of regulatory requirements, rather than considering it as a vital part of their data strategy. But if fully understood and wielded correctly, aligned with the wider business strategy, it can do much more. 

Not only can it feed into the data governance frameworks that underpin operations, but it can also help inform and establish AI governance. With clean, structured, and classified data, organizations can finally unlock the true potential of their genAI pilots. 

So far, data sovereignty has been underestimated, but with genAI innovation stalling and regulation catching up, organizations can’t afford to do so any longer. 

Noha Gad

Saudi Arabia’s logistics ecosystem has been shaped by its strategic location, connecting the three continents with some of the world’s busiest trade routes. Since the launch of Vision 2030, the Kingdom has made broad reforms to improve coordination and performance of the logistics sector. This included restructuring key entities across transport, ports, aviation, and rail, in addition to establishing new institutions and expanding the national carriers and infrastructure projects.  

Guided by the National Transport and Logistics Strategy (NTLS), aiming to transform Saudi Arabia into a logistics hub, the sector has expanded infrastructure, strengthened connectivity, and developed logistics zones across the Kingdom. Since its launch, over $75 billion in investment contracts have been signed across multiple transport modes, according to the Vision 2030 Annual Report 2025. These efforts have improved efficiency and reduced friction across the system, supported by digitalized services, simplified procedures, and stronger integration between entities.

The Kingdom successfully achieved groundbreaking developments to build a robust network of rail, ports, and infrastructure to strengthen the ecosystem. Key milestones included the expansion of King Abdulaziz Port in Dammam, the establishment of a new logistics corridor linking Jeddah Islamic Port to Al-Khumrah, and the launch of the India-Middle East-Europe Economic Corridor. This progress reflects stronger supply chains, expanded logistics capacity, and improved integration across transport systems, alongside greater regional connectivity and streamlined customs procedures, enhancing the flow of regional and international trade.

With these developments, Saudi Arabia has advanced across global logistics indicators, supported by sustained investment in infrastructure and operational performance. The Kingdom ranked second in the G20 group with the highest cargo throughput growth rate at 32%. It was also selected among the top four emerging markets in the Agility Logistics Index in 2025.

The country also saw a notable improvement in 2024 in its global ranking for container handling, climbing to 15th place globally, as reported by Lloyd’s List. Jeddah Islamic Port moved up from 41st to 32nd, King Abdullah Port rose to 70th from 71st, and King Abdulaziz Port in Dammam advanced from 90th to 82nd, marking significant progress in the competitiveness of Saudi ports.

Mawani: A Key Enabler Revolutionizing Logistics

The Saudi Ports Authority (Mawani) is rapidly transforming Saudi Arabia into a logistics hub by launching new shipping lines, specialized logistics parks, and digital services to support Vision 2030. The authority has invested more than SAR 30 billion since the launch of Vision 2030 to develop the Kingdom’s ports, increasing its capacity by more than 50% in recent years.

In 2025, the authority added more than 34 new shipping services to the Saudi ports to reinforce Saudi Arabia’s position as a global logistics hub connecting Asia, Africa, and Europe. Key services included the Himalaya Express Service that connects King Abdulaziz Port with 12 global ports with a capacity of over 14,000 TEUs, and the MEDEX Service, which links Jeddah Islamic Port with 12 global ports, boasting a capacity of over 10,000 TEUs, in addition to RSX1, SJA, and BOS services.

In March, Mawani announced the launch of five new maritime shipping services to enhance the resilience of the logistics sector and ensure the continuity of supply chains and the flow of goods, ultimately reinforcing the Kingdom’s position as a global logistics hub. These services are:

1. Gulf Shuttle. This service was launched to connect King Abdulaziz Port in Dammam with Khalifa Bin Salman Port in Bahrain, with a capacity of up to 3,000 TEUs (Twenty-foot Equivalent Unit). Through this service, Mawani aims to support national exports, improve operational efficiency at the port, and strengthen the Kingdom’s position as a regional and global logistics center.
2. Redex by CMA CGM. With a capacity of 2,594 TEUs, this service enhances maritime connectivity with Arab countries, including Egypt and Jordan, and supports global trade flows.
3. Jade by MSC. This service was added to Jeddah Islamic Port and King Abdullah Port, linking the Kingdom to eight regional and global ports and offering a capacity of 24,000 TEUs. This initiative also strengthens inland logistics connectivity between Jeddah Port and the GCC countries.
4. Maersk’s new AE19 shipping service. This high-capacity service, utilizing vessels capable of carrying up to 17,000 TEUs, links Jeddah to primary Asian hubs including Shanghai, Ningbo, Qingdao, and Xingang in China, Busan in Korea, and Tanjung Pelepas in Malaysia.
5. Hapag-Lloyd’s SE4 Service. This new route links Jeddah to major international hubs in China, Korea, and Malaysia, boasting a capacity of up to 17,000 TEUs.

Logistics Corridors Initiative 

Mawani launched this integrated initiative to enable the transport of containers arriving at the Kingdom’s western coast ports through dedicated land routes to various regions of the Kingdom and GCC countries, contributing to reduced handling time and improved operational efficiency at ports. This initiative was designed to enhance supply chain efficiency and facilitate cargo movement between the Kingdom’s ports.

Port of NEOM

This strategic gateway on the Red Sea connects the three continents while advancing regional integration through multimodal corridors with Egypt, Saudi Arabia, and Iraq. It currently provides a comprehensive suite of services designed to meet the demands of modern trade: general and project cargo, containerized shipments, bulk consignments, warehousing, and RoRo (roll on–roll off) ferry operations. 

In April, NEOM announced the launch of a new multimodal land bridge connecting Europe to the GCC through Egypt and northwest Saudi Arabia, in partnership with Pan Marine, with support from DFDS and regional logistics players. This integration allows truck-carried freight to move directly from Europe to Egypt and into the Gulf, via the Port of NEOM, offering an alternative to previous only container flows and enabling the movement of critical goods, including FMCG and other time-sensitive cargo.

The new route is already in active use by importers from several European countries, including Italy, the UK, Germany, and Poland, and provides direct access into the UAE, Kuwait, Oman, the wider GCC, and Iraq, supporting customers seeking predictable and efficient market entry. This corridor helped reduce transit time by more than 50%, featuring over 900 KM covered by shipments.

Private Sector Contribution 

The private sector has played a pivotal role in strengthening Saudi Arabia’s position as a regional and global logistics leader by driving infrastructure improvements and forming partnerships with global firms. According to the Vision 2030 Annual Report 2025, total private sector investment surpassed SAR 30 billion by the end of 2025. 

Additionally, the private sector provided privatization investments worth more than SAR 21 billion through 16 contracts and secured SAR 11 billion contracts with local and international partners to establish 29 logistics centers.

Private-sector companies also enhanced the operational efficiency of logistics services across the Kingdom by adopting advanced technologies like automation and digital supply chain systems, improving speed and reliability for trade routes connecting Asia, Europe, and Africa.

Finally, Saudi Arabia's logistics sector stands at the forefront of Vision 2030, transformed by strategic reforms, massive infrastructure investments, and innovative initiatives driven by the National Transport and Logistics Strategy. The private sector's pivotal contributions in funding, technology adoption, and global partnerships have accelerated this progress, ensuring seamless connectivity across continents and enhanced trade efficiency. As the Kingdom continues to climb global rankings and pioneer multimodal corridors, it solidifies its role as a premier logistics hub, driving economic diversification and sustainable growth for the future.

Kholoud Hussein 

In the world of entrepreneurship, funding is often viewed through the narrow lens of venture capital. High-profile equity deals and large funding rounds tend to dominate headlines, giving the impression that selling shares is the default path to growth. But an equally important and increasingly relevant tool for startups—especially as global markets mature—is debt financing. While long associated with traditional businesses, debt is now becoming a strategic option for growth-stage startups seeking to scale without sacrificing ownership or control.

Debt financing, simply put, is when a company raises capital by borrowing money that must be repaid over time with interest. Unlike equity financing, where investors receive a stake in the business, debt allows founders to retain full ownership while still accessing the capital they need. For startups, particularly those that have predictable revenue or assets to leverage, debt can be a powerful instrument that offers flexibility during critical growth phases.

The renewed attention toward debt financing comes at a time when the global venture capital market has cooled. Valuations have tightened, due diligence has become more rigorous, and investors are focusing more on profitability than on rapid, unchecked growth. In this environment, startups are discovering that debt—once considered off-limits for young companies—can be an attractive complement or alternative to equity. It offers liquidity without dilution, and when structured properly, it can unlock the operational runway needed to achieve key milestones.

In regions such as the GCC, and particularly Saudi Arabia, this trend is becoming more visible. As the Kingdom builds a more diversified and innovation-driven economy under Vision 2030, the financial ecosystem surrounding startups has expanded sharply. New private credit vehicles, venture debt funds, and government-backed financing programs are giving startups a way to access capital without surrendering equity too early. Saudi policymakers have emphasized that broadening the financing landscape is essential to supporting high-growth companies through different stages of their development. Debt fits naturally into that vision.

For startups, the strategic value of debt lies in its structure. It can be used to smooth cash flow, purchase inventory, acquire equipment, or finance expansion without affecting the company’s ownership. Growth-stage companies with consistent revenue streams often turn to debt to accelerate product development or enter new markets. Meanwhile, venture debt—designed specifically for startups—typically works alongside equity rounds, offering additional capital without dramatic dilution. This blend can create a more balanced capital structure and signal to investors that the company has multiple financing channels available.

However, debt financing is not without its challenges. Unlike equity, where investors absorb some of the risk, debt must be repaid regardless of the company’s performance. That reality forces startups to think carefully about their cash flow and financial discipline. Borrowing too early, or without a clear growth strategy, can put pressure on operating margins and restrict flexibility. This is why debt financing tends to work best for startups that already have product-market fit, recurring revenue, or tangible assets.

Yet despite the risks, the rising use of debt financing among startups signals a more mature entrepreneurial environment—one where founders think long-term and weigh the cost of capital carefully. In Saudi Arabia, this maturity is taking root as more founders prioritize financial sustainability. By accessing debt responsibly, startups can maintain control during their early years, invest in strategic growth, and position themselves for stronger negotiating power when raising equity later.

What makes debt particularly relevant today is the changing mindset around growth. The era of “growth at all costs” has given way to a more disciplined model in which profitability, resilience, and capital efficiency matter. Debt financing aligns naturally with this shift. It rewards startups that build solid business fundamentals and operational stability—traits that increasingly define the winners in competitive markets.

For founders, the takeaway is straightforward: debt is no longer a fallback option reserved for established companies. It is becoming part of the modern financing toolkit for startups seeking to expand intelligently. In an evolving economic landscape where capital is more selective and growth strategies must be sharper, debt financing offers startups a way to scale while preserving what they value most—their vision and ownership.

If used wisely, debt can be the catalyst that helps a startup cross from early promise to sustained success.