Sustainability in E-commerce: Insights from Seamless KSA 2024

Sep 15, 2025

Kholoud Hussein 

 

As Saudi Arabia pursues its Vision 2030 goals of diversifying the economy and promoting sustainability, the intersection of e-commerce and sustainability is becoming increasingly important. The Seamless KSA 2024 event brings together retailers, e-commerce leaders, fintech innovators, and government officials to discuss the latest trends and innovations in digital commerce, with sustainability emerging as a key theme. This article explores how Saudi Arabia’s e-commerce sector embraces sustainable practices, technology's role in this transformation, and the insights shared at Seamless KSA 2024.

 

Sustainability in E-commerce: A Growing Priority

 

E-commerce has seen explosive growth in Saudi Arabia, particularly in recent years. The sector is expected to reach $30 billion by 2026, according to a 2024 report by Saudi Arabian General Investment Authority (SAGIA). However, with this rapid expansion comes increased pressure on logistics, packaging, and energy consumption, all of which have environmental implications. As a result, sustainability is becoming a priority for the Kingdom’s e-commerce industry, driven by both government initiatives and changing consumer expectations.

 

Minister of Commerce Majid Al-Qasabi emphasized at Seamless KSA 2024, “Sustainability is no longer an option, but a necessity. The future of e-commerce in Saudi Arabia will be shaped by how businesses integrate sustainable practices into their operations, from packaging and delivery to energy consumption and waste management.”

 

In line with Vision 2030, which includes ambitious environmental goals such as reducing the Kingdom’s carbon footprint, the e-commerce sector is under increasing scrutiny to adopt sustainable practices. Seamless KSA 2024 provided valuable insights into how these practices are being implemented and the technologies driving this transformation.

 

1. Sustainable Packaging and Waste Reduction

 

One of the key areas of focus in the sustainability discussion at Seamless KSA 2024 was sustainable packaging. As e-commerce orders continue to rise, so does the use of packaging materials, much of which is plastic or non-recyclable. Saudi Arabia’s e-commerce giants, including Noon and Jarir, are beginning to recognize the environmental impact of excessive packaging and are adopting eco-friendly alternatives.

 

During a panel discussion at Seamless KSA, Noon’s COO, Ali Kothari, remarked, “As we scale our e-commerce operations, the need for sustainable packaging becomes critical. We are actively investing in biodegradable and recyclable materials, reducing our reliance on plastic, and working with suppliers to minimize packaging waste.”

 

Companies are also exploring innovations such as minimalist packaging, which reduces the size and volume of materials used, and reusable packaging solutions, allowing consumers to return packaging for reuse. These efforts are aligned with Saudi Arabia’s broader environmental goals, including the Saudi Green Initiative, which aims to promote circular economy practices and reduce waste.

 

In a 2024 report by McKinsey & Company, it was highlighted that e-commerce businesses can reduce their carbon footprint by up to 15% through sustainable packaging solutions alone. This not only addresses environmental concerns but also meets the growing demand from eco-conscious consumers who are increasingly factoring sustainability into their purchasing decisions.

 

2. Optimizing Logistics and Reducing Emissions

 

Another critical element of sustainability in e-commerce is the optimization of logistics and delivery processes. The rise of same-day delivery and on-demand logistics has led to an increase in the number of delivery vehicles on the road, contributing to carbon emissions and traffic congestion. Seamless KSA 2024 highlighted the role of AI and big data in optimizing delivery routes, reducing fuel consumption, and minimizing the environmental impact of logistics.

 

According to a 2024 study by PwC, optimizing last-mile delivery operations through AI-powered route planning and electric vehicle (EV) adoption could reduce carbon emissions from e-commerce logistics by 25% in the Kingdom. Several e-commerce companies are already experimenting with electric delivery vehicles and alternative energy solutions to power their logistics networks.

STC Pay CEO Ahmed Al-Enizi spoke at the event, stating, “The future of e-commerce logistics is sustainable. By adopting electric delivery vehicles and leveraging AI to optimize delivery routes, we can not only reduce our operational costs but also significantly lower our environmental impact.”

 

Additionally, drone delivery is emerging as a futuristic solution for reducing emissions in last-mile delivery. Though still in the testing phase, drone delivery has the potential to revolutionize logistics in Saudi Arabia by cutting delivery times and emissions. Seamless KSA 2024 showcased several drone technology demonstrations, highlighting the potential of this technology to make e-commerce more environmentally friendly.

 

3. Renewable Energy Integration in E-commerce Operations

 

A major theme at Seamless KSA 2024 was the integration of renewable energy into e-commerce operations. As warehouses and fulfillment centers grow in size and scale, so do their energy consumption needs. To meet the demands of high-volume operations while adhering to Saudi Arabia’s environmental goals, many e-commerce companies are investing in solar power and other renewable energy sources to power their facilities.

 

Amazon Saudi Arabia, for example, announced at Seamless KSA 2024 that it plans to power its new fulfillment centers in Riyadh entirely with solar energy by 2026. Ronaldo Mouchawar, Vice President of Amazon MENA, said, “Sustainability is central to our operations. By integrating renewable energy into our facilities, we are not only reducing our carbon footprint but also supporting Saudi Arabia’s commitment to increasing renewable energy adoption.”

 

The Saudi Green Initiative, launched as part of Vision 2030, aims to increase the share of renewable energy in the Kingdom’s energy mix to 50% by 2030. E-commerce companies are aligning with this target by incorporating solar panels, energy-efficient lighting, and smart building technologies in their logistics centers, warehouses, and office spaces. These energy-efficient solutions not only reduce the environmental impact of e-commerce but also offer cost savings in the long run.

 

4. Promoting Circular Economy and Sustainable Consumer Behavior

 

Beyond operational changes, Seamless KSA 2024 also addressed the role of circular economy principles and promoting sustainable consumer behavior in the e-commerce space. A growing number of companies are introducing recycling programs, product refurbishment, and second-hand marketplaces to extend the life cycle of products and reduce waste.

 

For example, Mumzworld, a leading e-commerce platform for mothers and children, launched a recycling initiative that allows customers to return used baby products such as strollers and toys, which are then refurbished and resold at a discount. This not only reduces waste but also encourages consumers to participate in sustainable practices.

 

Hala Al-Tuwaijri, CEO of the Center for Sustainability and Waste Management, emphasized at the event, “E-commerce businesses have a responsibility to promote sustainable consumption. By adopting circular economy models and engaging consumers in recycling and reuse initiatives, we can reduce the environmental footprint of online shopping.”

 

Seamless KSA 2024 also highlighted the importance of educating consumers about the environmental impact of their purchasing decisions. Many companies now offer carbon-neutral or carbon-offset options at checkout, allowing customers to compensate for the carbon emissions generated by their purchases. This growing trend aligns with consumer demand for greater transparency and accountability from businesses regarding their sustainability efforts.

 

5. The Role of Government and Policy in Driving Sustainability

 

The Saudi government’s active role in promoting sustainability was a key topic at Seamless KSA 2024. Through various initiatives and regulatory frameworks, the government is encouraging e-commerce businesses to adopt sustainable practices. The Saudi Central Bank (SAMA), for instance, is working closely with fintech companies to integrate sustainable finance solutions that support environmentally conscious business practices.

 

In his opening remarks at Seamless KSA 2024, Mohammed Al-Jadaan, Minister of Finance, said, “The government is committed to creating a regulatory environment that encourages sustainability across all sectors, including e-commerce. By incentivizing companies to adopt green technologies and sustainable practices, we are ensuring that economic growth goes hand in hand with environmental stewardship.”

 

The National Renewable Energy Program (NREP), launched as part of Vision 2030, also plays a key role in the e-commerce sector’s transition to sustainability. The program encourages private companies to invest in renewable energy solutions and provides financial incentives for businesses that adopt sustainable energy practices.

 

Looking Ahead: The Future of Sustainability in Saudi E-commerce

 

The discussions and innovations showcased at Seamless KSA 2024 indicate that sustainability is no longer a peripheral concern for Saudi Arabia’s e-commerce sector. It is becoming a core component of business strategy, driven by both government initiatives and consumer demand. As Saudi Arabia continues to lead the MENA region in e-commerce growth, the integration of sustainable practices will be essential in ensuring the long-term success and resilience of the industry.

 

Technology as a Catalyst for Sustainable E-commerce

 

The role of technology, particularly AI, IoT, and blockchain, will be critical in accelerating the transition to sustainable e-commerce. These technologies are already being used to optimize supply chains, reduce emissions, and provide greater transparency in product sourcing and delivery. As these technologies continue to evolve, they will offer even more opportunities for e-commerce businesses to reduce their environmental impact and improve efficiency.

 

Consumer Demand for Sustainability

 

As eco-conscious consumers become a larger share of the market, businesses will need to meet their expectations by offering sustainable products, transparent supply chains, and environmentally friendly options. Companies that fail to address sustainability may face increasing pressure from both consumers and regulators, making it

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AI for Senior Citizens in Saudi Arabia

Ghada Ismail

 

Saudi Arabia is quietly entering a new demographic chapter. While the Kingdom remains widely known for its youthful majority—with more than 70 % of citizens under the age of 35—another segment of the population is steadily expanding: older adults. According to the General Authority for Statistics (GASTAT), about 1.7 million people aged 60 and above now live in the Kingdom, representing roughly 4.8 % of the total population in 2025. 

This shift is subtle compared with global aging trends but significant enough to influence how healthcare, social services, and digital technologies are designed and delivered. The World Health Organization and Saudi health authorities define the elderly as individuals aged 60 years or above, a demographic that is expected to grow in the decades ahead amid rising life expectancy and improvements in healthcare access. 

Across homes, clinics, and digital platforms, artificial intelligence (AI) is beginning to play a meaningful role in enhancing seniors’ quality of life, helping them remain independent, connected, safe, and engaged in ways that align with Saudi cultural values and Vision 2030 priorities.

 

Aging and Its Challenges

Aging often brings layered challenges. Chronic disease management, reduced mobility, memory changes, and social isolation can gradually erode independence. Traditional care systems, heavily reliant on family or institutional support, are increasingly stretched amid smaller household sizes and urban lifestyle shifts. In Saudi Arabia, these concerns are compounded by a healthcare environment preparing for the future dynamics of a longevity economy.

Yet many older Saudis are actively engaged both socially and digitally. GASTAT’s 2025 Elderly Statistics Bulletin shows that over 60 % of elderly Saudis participate actively in social events, with 63.4 % of men and 57.3 % of women reporting regular activity. Additionally, high rates of digital engagement—where about 87 % of elderly men and 78 % of elderly women use smartphones or computers—reflect a population already comfortable with basic technology. 

 

Wearables: Personalized, Continuous Support

One of the most visible intersections of AI and elder care is through wearables, smart devices capable of continuous monitoring and predictive analysis. These devices use machine learning to track vital signs such as heart rate, movement, sleep patterns, and irregular activity. The real value lies in algorithms that can detect deviations from personal norms and alert caregivers or family members before small issues become emergencies.

A notable Saudi startup leading innovation in this space is Me’kaaz, which has developed AI-enabled wearable solutions tailored to senior care. Rather than serving merely as emergency alerts, Me’kaaz’s technology focuses on early detection and prevention. It captures subtle changes in activity or routines that may signal emerging health problems—whether related to mobility, cardiovascular health, or daily function—helping families and clinicians intervene proactively.

Importantly, these technologies are linguistically and culturally localized for Saudi users. AI interfaces support the Arabic language and sensory cues that feel natural and respectful, ensuring seniors can interact comfortably with devices. This cultural resonance is crucial in a society that emphasizes family involvement and dignity in elder care.

 

AI Companions and Social Connectivity

Physical health is part of the picture, but emotional well-being is equally important. Loneliness and social isolation have been linked globally to depression and cognitive decline, particularly among seniors living alone or with limited mobility.

AI-powered digital companions are entering this space as well. These systems combine conversational capability with reminders, mental exercises, and engagement tools designed to keep elderly users mentally stimulated and socially connected. Me’kaaz and other innovators are exploring how these companions can deliver culturally relevant content, including religious and community-oriented interactions, enriching everyday life for seniors who may spend long hours alone.

Such AI companions are not a replacement for human interaction, but a supplemental presence, especially valuable for those whose families live at a distance or have demanding work schedules.

 

Training for an AI-Enabled Life

Technology adoption does not begin with advanced gadgets; it begins with confidence. Recognizing this, national and private initiatives in Saudi Arabia are increasingly focusing on digital literacy for older adults.

A notable example is the collaboration between Huawei Technologies and stc Group, which launched a senior-focused training program under Huawei’s global “Education for All” initiative. The program’s SmartTruck serves as a mobile digital classroom, traveling across regions of the Kingdom to deliver free, hands-on training for people aged 50 and above.

These workshops cover practical digital skills: using smartphones, accessing online services, understanding digital safety and fraud protection, and navigating AI-enabled tools. In its early phase, the initiative trained more than 2,000 seniors through over 150 workshops, underscoring strong enthusiasm among older adults for digital skill-building when instruction is accessible and age-appropriate.

While these sessions don’t teach deep AI theory, they build foundational confidence. For seniors, learning to interact safely with digital systems reduces anxiety, increases participation, and lays the groundwork for more sophisticated AI engagement, whether through telemedicine, smart wearables, or digital communities.

 

AI in Healthcare Systems

AI’s role is expanding beyond the home into broader healthcare delivery. Hospitals and clinics across the Kingdom are using AI tools for diagnostics, predictive analytics, and remote monitoring—beneficial for senior patients managing chronic conditions.

AI can help clinicians identify high-risk patients sooner, personalize treatment plans, and reduce unnecessary hospital visits. For seniors, this means more tailored care with less physical strain, particularly for those managing conditions like diabetes, hypertension, or cardiovascular issues.

Government entities such as the Saudi Data and Artificial Intelligence Authority are central in shaping ethical AI deployment across sectors, including healthcare. Professional bodies like the Saudi Association for AI and Healthcare are also contributing research and education frameworks to align AI adoption with clinical standards and ethical guidelines.

 

Cultural and Ethical Dimensions

Despite the promise, challenges persist. Not all seniors have equal access to smartphones, high-speed internet, or ongoing support, particularly in rural areas. Digital inequality remains a real barrier to the full potential of AI adoption.

Privacy concerns also loom large. AI elder-care systems rely on sensitive personal data—from biometric readings to behavior patterns—making data protection and transparency essential. Ensuring that seniors understand how their data is used and protected is particularly important in a society where privacy and family reputation are highly valued.

Cultural compatibility remains key as well. AI systems must respect Saudi social norms, language nuances, and religious practices. Solutions that feel foreign or disconnected from daily life are unlikely to gain traction, regardless of their technical sophistication.

 

Looking Ahead

Saudi Arabia’s broader AI ecosystem—strengthened by national strategic investments, research institutes, and innovation incentives—provides fertile ground for senior-focused technologies. Future developments are likely to include more advanced predictive care models, AI-assisted cognitive health tools, and deeper integration between home-based systems and national healthcare platforms.

Demographic data indicate that the proportion of older adults in Saudi Arabia is modest but growing. According to GASTAT’s 2025 Elderly Statistics Bulletin, people aged 60 and above currently represent about 4.8 % of the population, with men slightly outnumbering women in this age group. While still a small share, demographic trends suggest this segment will expand in the coming decades as life expectancy rises and fertility rates decline, reflecting broader global aging patterns. This gradual increase highlights the need for proactive planning, innovative care models, and policies that embrace technology while maintaining human dignity and social inclusion.

 

Embracing Aging with Intelligence

AI for senior citizens in Saudi Arabia is no longer a theoretical concept; it is taking shape now through wearable devices, digital engagement programs, and healthcare innovations that respect cultural values. These technologies complement family care, empower seniors to stay connected, and enhance their ability to live independent, fulfilled lives longer.

By investing in localized tech solutions, digital literacy training, and ethical AI frameworks, Saudi Arabia is fostering an environment where aging with intelligence and intention is possible. For the Kingdom’s older adults, this means accessing tools that enrich daily life—while retaining the autonomy, dignity, and social bonds that define Saudi culture.

How SPACs revolutionize paths to public markets

Noha Gad

 

The process of taking a company public traditionally involved significant challenges, including regulatory requirements, market volatility, and high costs. Initial public offerings (IPOs) have long served as the primary method, enabling companies to achieve substantial growth. However, the rapid rise of startups in sectors such as fintech, artificial intelligence (AI), and sustainable technology increased demand for more efficient routes to capital markets. Special Purpose Acquisition Companies (SPACs) address this need.

With no commercial operations, a SPAC is essentially a shell company established to acquire companies by purchasing their shares. They are formed specifically to raise capital through an IPO, which can be used to acquire or merge with another private operating company. This approach enables private companies to become publicly traded in a matter of months rather than years, without the full burdens of a conventional IPO.

How do SPACs work?

A SPAC is created by experienced investors, known as sponsors, with the sole purpose of acquiring or merging with an unidentified private business. Unlike traditional IPOs, where a company directly lists its shares, a SPAC raises capital first and identifies a target later. This structure provides a streamlined path to public markets. 

The SPAC transaction process encompasses several key stages:

  • Formation and IPO. Sponsors form a team of industry experts and file for an IPO, then investors purchase units, typically comprising one share of common stock and a fraction of a warrant. Proceeds from the IPO are placed in a trust account to earn interest.
  • Finding a target. The SPAC has 18 to 24 months to find and negotiate a merger with a private company. During this period, the SPAC remains listed on an exchange, offering its shares for trading.
  • Merger announcement. After identifying the target, the SPAC announces the proposed deal and takes shareholders’ votes on the transaction.
  • De-SPAC and public listing: If approved, the merger will be completed, and the target emerges as a public company under a new ticker symbol.

 

Advantages of SPACs 

SPACs offer several benefits over traditional IPOs, providing efficiency and access for private companies seeking capital and investors pursuing opportunities. Key advantages are:

  • Fast access to public markets. The process usually takes 3 to 6 months from merger announcement to completion, compared to more than 12 months for a standard IPO.
  • Price stability: The SPAC sets a fixed share price during its IPO, reducing exposure to pricing volatility common in direct listings.
  • Expert guidance: Sponsors, often executives or investors with proven track records, offer strategic advice, networks, and credibility. 
  • Attractiveness in emerging markets: This model can support fintech and tech startups in emerging markets, providing liquidity without full IPO infrastructure.

While SPACs offer distinct advantages, most notably speed and efficiency, they also carry specific risks for investors and target companies. These include share dilution, inconsistent post-merger performance, potential conflicts among sponsors, and high redemption rates.

In essence, SPACs present a compelling alternative to traditional IPOs as they provide faster access to public markets and engage experienced sponsors. However, their success ultimately depends on careful evaluation at every stage. Ongoing regulatory developments continue to strengthen transparency and investor protections, contributing to a more stable environment. For investors, the key is to study sponsor track records, merger terms, and the realism of financial projections. Target companies, in turn, must ensure alignment with long-term strategic goals to mitigate potential drawbacks. As the SPAC model evolves alongside moderating deal volumes, it remains a relevant pathway for growth-oriented companies seeking to enter public markets. 

Dawud: Cybersecurity, AI drive digital transformation in Saudi Arabia, Egypt

Mohamed Ramzy

 

The technology landscape in the Middle East is witnessing an unprecedented boom, driven by massive investments in digital infrastructure and a strategic shift towards the adoption of artificial intelligence (AI). With this momentum, cybersecurity is becoming increasingly important as the primary defense line protecting data and ensuring sustainable economic growth.

Spire Solutions emerged as a key player in this rapidly growing landscape and one of the leading distributors of cybersecurity, data, and AI solutions in the region, with a robust presence across the Gulf and Egyptian markets over nearly two decades. As Saudi Vision 2030 targets accelerate and Egypt advances digital transformation pathways, the company aims to deepen its operations and expand investments in both markets.

Sharikat Mubasher held an interview with Anas Dawud, General Manager for Saudi Arabia, Egypt, and Lavent at Spire Solutions, to discover the company’s expansion plans, its role in supporting Saudi Vision 2030 and driving digital transformation in Egypt, the role of the regulatory ecosystem in bolstering growth, and the company’s plans across the cybersecurity and AI sectors.

 

Spire Solutions has a long-standing record in the region. Could you highlight the company's key milestones and current solutions it focuses on?

Spire Solutions was founded nearly 19 years ago, with an initial focus centered on cybersecurity as a value-added service across the GCC, Egypt, and North Africa. To meet the needs of these rapidly evolving markets, we expanded our portfolio to include data and AI solutions, establishing a strategic integration between information security, data analytics, and intelligent technologies. This comprehensive package now defines our IT services offered to clients.

 

Speaking about the Saudi market, how do you assess the company’s operations amid the Kingdom’s significant momentum?

Saudi Arabia is our largest market. We have been operating in the Kingdom for over 15 years, and now serve a huge client base of more than 1,000 customers, including diverse government entities and large companies. Our main goal is to ensure robust protection of the IT environments of these organizations.

Geographically, we currently cover 18 cities across the Kingdom through a specialized team of engineers and consultants. We also aim to expandi our team in the Western Region, in line with our plan to open a regional headquarters in Riyadh soon.

 

How has Saudi Arabia’s regulatory environment contributed to driving Spire Solutions’ growth in this sector?

Governance and regulations put in place by Saudi regulators have been the cornerstone for our business growth, setting clear frameworks for cybersecurity and data protection standards. This boosted demand for our solutions across pivotal sectors, whether financial, banking, or governmental, while ensuring companies operate within a protected, regulated market.

The sector is witnessing a great momentum, backed by several supporting entities, notably the Saudi Data and Artificial Intelligence Authority (SDAIA), the Saudi Ministry of Communications and Information Technology, and many other entities.

 

Spire Solutions recently participated in the inaugural AI Everything MEA 2026 summit. How do you see the growth opportunities in the Egyptian market compared to other markets in the region? 

The Egyptian market is very promising, driven by a genuine, tangible shift from the government and the private sector towards comprehensive digital transformation.

Companies and banks have shown significant awareness of the need to integrate AI into their work cycles. Spire Solutions has been operating in the Egyptian market for more than 10 years, and we believe that the current movement in digital transformation and AI paves the way for us to boost investment and expand the reach of our technical services and consultancies in the coming period.

 

Does Spire Solutions plan to launch new projects in Egypt soon?

Spire Solutions is in ongoing talks with local partners to form successful partnerships. We recently held high-level meetings with leading Egyptian entities and have several strategic projects in the pipeline that we will announce soon.

I would like to emphasize a key point regarding our business approach in Egypt. We do not engage directly with the end-user; rather, we work through strategic partnerships with system integrators. However, we provide support to end-users through consultancy services and technical training.

 

The entrepreneurship sector in the region is experiencing significant momentum. What role does Spire Solutions play in supporting startups?

Supporting startups is at the heart of our strategy. We are committed to providing them with specialized technical training, enabling access to markets, and helping them build effective customer relationships.

We believe in the importance of working alongside entrepreneurs who are developing innovative solutions. Through this approach, we have supported a number of startups that have successfully established a strong presence across the region.

 

How do you see the future of AI and data sectors in key markets in the region by 2030?

Data volume is growing continuously and rapidly, making data science and analytics an essential pillar of organizational resilience, serving as the engine that guides companies' investments and helps navigate emerging challenges.

Today, AI plays a crucial role in promoting this process by providing faster and more accurate data protection. We aim to expand beyond Egypt and the GCC to enter specific markets in North Africa within the coming period.

With the accelerated pace of digital transformation in Saudi Arabia and Egypt, opportunities are abundant for cybersecurity and AI companies. Spire Solutions, guided by a clear regional expansion strategy, focuses on building local partnerships, knowledge exchange, and upskilling talent, ultimately enhancing organizations’ readiness to address evolving challenges in the digital landscape.

 

Translation: Noha Gad

Smart Kingdom: How AI Is Powering the Next Generation of Saudi Mega Projects

Kholoud Hussein 

 

Saudi Arabia’s mega projects were conceived as symbols of economic diversification. Today, they are becoming test beds for something even more transformative: artificial intelligence embedded at scale.

From predictive construction systems to AI-managed urban mobility, the Kingdom’s flagship developments are not merely large in size or investment value. They are increasingly designed as intelligent ecosystems. Backed by the policy framework of Saudi Vision 2030 and coordinated through institutions such as the Saudi Data and Artificial Intelligence Authority (SDAIA), AI is moving from experimental pilot to core infrastructure layer.

With mega projects collectively valued in the trillions of dollars, Saudi Arabia is positioning artificial intelligence not as a supporting tool, but as an operating system for next-generation cities, tourism hubs, logistics corridors, and industrial zones.

 

AI as a National Priority

Saudi Arabia’s AI ambitions are not confined to individual developments. In 2020, the Kingdom launched the National Strategy for Data and AI, aiming to position the country among the top 15 global AI leaders by 2030. Officials have repeatedly emphasized that artificial intelligence is central to economic competitiveness.

Crown Prince Mohammed bin Salman has described technology and innovation as pillars of the Kingdom’s diversification strategy. Meanwhile, SDAIA President Abdullah Alghamdi has stated that data and AI are “key enablers of economic growth and digital transformation.”

According to official projections, AI could contribute an estimated $135 billion to Saudi Arabia’s GDP by 2030, representing roughly 12 percent of the national economy. These figures underscore why mega projects are being built with AI integration from inception rather than retrofitted later.

 

NEOM: Building an AI-Native City

Perhaps the most visible example is NEOM, the $500 billion smart city development in northwestern Saudi Arabia. Designed as a fully connected urban environment, NEOM integrates AI across energy management, transportation, water systems, and security infrastructure.

Within NEOM, THE LINE represents an ambitious experiment in AI-driven urban planning. The linear city will rely on predictive analytics to manage traffic flows, optimize energy consumption, and coordinate autonomous transport systems. Digital twins—virtual models of physical infrastructure—allow planners to simulate real-world conditions before construction is completed.

AI algorithms will monitor energy demand in real time, automatically adjusting renewable energy generation and storage systems. In practice, this reduces waste and improves grid resilience. In urban mobility, AI-enabled platforms are expected to manage autonomous vehicles and high-speed transit networks with minimal human intervention.

The result is an environment where infrastructure decisions are driven by continuous data analysis rather than static planning assumptions.

 

The Red Sea Project: AI in Sustainable Tourism

Sustainability is another arena where AI is reshaping Saudi mega developments. Red Sea Global, developer of the Red Sea Project, has embedded AI into environmental management systems.

The destination aims to operate on 100 percent renewable energy. AI-powered monitoring systems analyze weather patterns, guest flows, and energy consumption to optimize operations while minimizing ecological impact. Smart desalination plants use machine learning to improve efficiency and reduce carbon intensity.

By using predictive analytics, operators can anticipate peak visitor demand and adjust services accordingly, limiting overuse of sensitive natural environments. This model reflects a broader shift: AI is not only about efficiency but also about environmental stewardship.

 

Qiddiya and Predictive Operations

Entertainment and sports infrastructure are also being transformed. Qiddiya Investment Company is developing one of the Kingdom’s largest entertainment cities, integrating AI for crowd management, safety monitoring, and real-time operational analytics.

Advanced camera systems and computer vision technologies help detect congestion patterns and enhance security oversight. Predictive maintenance tools monitor ride systems and facilities to reduce downtime and prevent mechanical failures.

For mega venues hosting international events, AI-driven analytics enable dynamic pricing strategies, optimized staffing, and personalized visitor experiences.

 

AI in Construction and Project Management

Beyond the final user experience, AI is reshaping how mega projects are built.

Saudi Arabia’s construction sector faces the challenge of delivering projects at an unprecedented scale. AI-enabled project management platforms analyze supply chains, labor allocation, and procurement timelines to mitigate delays. Predictive analytics help identify bottlenecks before they escalate into costly overruns.

Drone-based imaging combined with machine learning allows real-time monitoring of construction progress. This data feeds into centralized dashboards, enabling developers to compare projected timelines with actual performance.

Given that Saudi giga-projects represent investments exceeding $1 trillion collectively, even marginal efficiency gains through AI can translate into billions of dollars in savings.

 

The Startup Ecosystem: Local Innovation at Scale

While global technology providers are active in the Kingdom, Saudi startups are increasingly contributing to the AI ecosystem, supporting mega projects.

Companies such as Mozn specialize in AI-driven analytics and risk management platforms. Originally focused on financial crime detection, firms like Mozn are expanding into broader data analytics solutions relevant to infrastructure and enterprise clients.

Another emerging player is Quant Data & Analytics, which develops AI tools for predictive analytics and data intelligence. Such companies are well-positioned to serve government agencies and mega-project operators requiring localized AI solutions.

Saudi Arabia’s venture capital ecosystem has grown significantly, with AI startups attracting increasing funding rounds. Government-backed funds and accelerators are prioritizing artificial intelligence as a strategic vertical.

As mega projects mature, demand for specialized AI applications—ranging from logistics optimization to energy modeling—creates a substantial addressable market for domestic startups.

 

Human Capital and Workforce Transformation

AI integration also has labor market implications. Mega projects are serving as training grounds for Saudi engineers, data scientists, and AI specialists.

Under Vision 2030, workforce localization initiatives aim to equip Saudi nationals with advanced digital skills. Universities and research centers are partnering with mega-project developers to create AI-focused training programs.

Officials have emphasized that AI adoption is not about workforce replacement but productivity enhancement. SDAIA leadership has noted that building local AI talent is essential for long-term sustainability.

 

Economic Impact and Investment Outlook

The economic implications are profound. With AI projected to contribute $135 billion to GDP by 2030, mega projects act as catalysts, accelerating this contribution.

Investment in digital infrastructure, cloud computing, and data centers is expanding alongside physical construction. Saudi Arabia has announced multi-billion-dollar investments in cloud services partnerships to support AI workloads.

Moreover, foreign direct investment linked to technology partnerships continues to grow as global firms view Saudi mega projects as large-scale test environments for advanced AI applications.

Industry analysts estimate that AI-related spending in Saudi Arabia could grow at compound annual rates exceeding 25 percent through the end of the decade, driven largely by giga-project deployment.

 

Challenges and Governance Considerations

Despite momentum, challenges remain. Integrating AI across complex, multi-stakeholder projects requires strong governance frameworks. Data privacy, cybersecurity, and algorithmic accountability are critical concerns.

Saudi authorities have introduced regulatory standards governing data protection and AI ethics to ensure responsible deployment. This regulatory clarity may enhance investor confidence.

 

Finally, Saudi Arabia’s mega projects were initially defined by scale—record-breaking budgets, ambitious architecture, and expansive geography. Increasingly, however, they are defined by intelligence.

Artificial intelligence is embedded in planning models, operational systems, sustainability metrics, and security frameworks. It is shaping not only how projects are built but how they function long after completion.

If current trajectories continue, Saudi Arabia’s giga-projects may become global reference models for AI-integrated urban development. In doing so, they reinforce the Kingdom’s broader ambition: to transition from an economy built primarily on natural resources to one powered by data, technology, and intelligent systems.

 

What Is ‘Asset Turnover Ratio’ and Why It Matters for Startups

Ghada Ismail

 

Most startups don’t fail because they lack ideas. They fail because they misjudge how efficiently they turn what they own into revenue.

In the rush to grow, founders often focus on how fast money is coming in, while paying far less attention to how hard their assets are actually working. Office space sits half-used. Software tools pile up. Teams expand faster than output. On paper, the startup looks like it’s growing. In reality, its engine may be inefficient.

This is where the Asset Turnover Ratio quietly steps in. It doesn’t care about hype, valuation, or future promises. It asks one simple, uncomfortable question: How much revenue are you actually generating from the assets you already have? For startups operating on limited capital and tight runways, the answer can be revealing, and sometimes alarming.

 

What Is Asset Turnover Ratio?

The Asset Turnover Ratio measures how efficiently a business uses its assets to generate revenue. It shows how much revenue is produced for every unit of assets owned by the company.

The formula is simple:

Asset Turnover Ratio = Revenue ÷ Average Total Assets

If a startup generates SAR 2 million in revenue and holds SAR 1 million in total assets, its asset turnover ratio is 2. This means the company generates SAR 2 in revenue for every riyal invested in assets.

In general, a higher ratio indicates stronger operational efficiency, while a lower ratio suggests that assets may not be used to their full potential.

 

Why Asset Turnover Ratio Matters for Startups

Startups rarely have excess resources. Capital is limited, margins are thin, and every investment—whether in people, technology, or infrastructure—needs to prove its value quickly.

The asset turnover ratio helps founders understand whether their business model is genuinely efficient or simply growing heavier over time. It highlights whether assets are actively contributing to revenue or quietly becoming cost centers.

For investors, this metric offers insight into execution quality. A startup that generates strong revenue relative to its asset base signals discipline, thoughtful scaling, and smarter capital allocation, qualities that matter far more than growth alone.

 

Interpreting High and Low Asset Turnover Ratios

A high asset turnover ratio often reflects a lean, well-optimized business. Digital startups, SaaS platforms, and marketplace models typically perform well because they generate revenue without heavy physical infrastructure. High turnover suggests that the startup is maximizing output from minimal resources.

A low asset turnover ratio is not necessarily a red flag on its own. Asset-heavy startups in sectors such as manufacturing, logistics, or hardware development often show lower ratios, especially in early stages. The real concern arises when assets continue to grow while revenue lags behind, signaling inefficiencies or premature expansion.

What matters most is what happens next. Improving turnover over time indicates that the startup is learning how to scale more efficiently.

 

How Startups Can Improve Asset Turnover

Improving asset turnover is not about cutting costs aggressively. It is about making smarter decisions with existing resources.

Startups can focus on increasing revenue before acquiring new assets, delaying major capital expenditures until demand is validated, and outsourcing non-core functions instead of owning everything in-house. Regularly reviewing underperforming assets—whether tools, systems, or physical resources—also helps prevent unnecessary drag on performance.

Ultimately, the goal is not to own fewer assets, but to ensure that every asset actively supports growth.

 

Putting Asset Turnover in Context

No single metric tells the full story. Asset turnover should be viewed alongside profitability, cash flow, and growth indicators. A startup can be efficient but unprofitable, or profitable but inefficient. The real insight comes from understanding how these metrics work together.

For founders, asset turnover serves as a reality check. It keeps ambition grounded in execution and encourages smarter scaling rather than reckless expansion.

 

Wrapping Things Up…

At its core, the asset turnover ratio is not just a financial metric, but rather a discipline check.

It forces founders to ask whether growth is being built on smart execution or on accumulating more resources than the business can justify. High turnover reflects a startup that knows how to extract value before spending more. Low turnover, if ignored, quietly erodes runway long before cash flow problems become obvious.

In a startup landscape where capital is no longer unlimited, the businesses that survive will not be the ones that own the most assets, but the ones that use what they own best.