Kholoud Hussein 

Islamic finance, rooted in Sharia-compliant principles, is a cornerstone of Saudi Arabia’s financial ecosystem and a critical driver of the global Islamic economy. As the Kingdom embraces digital transformation under Vision 2030, artificial intelligence (AI) is emerging as a transformative force in Islamic finance. By streamlining operations, enhancing compliance, and fostering innovation, AI is redefining how financial institutions navigate ethical frameworks to deliver efficient and compliant financial solutions.

This third blog in our series explores the intersection of AI and Islamic finance in Saudi Arabia, highlighting how technology aligns with Sharia principles to unlock new opportunities.

The Role of AI in Transforming Islamic Finance

1. Automating Compliance with Sharia Principles

One of the most significant challenges in Islamic finance is ensuring that financial products and services adhere to Sharia law. AI simplifies and accelerates this process by automating compliance checks.

• Smart Contracts: AI and blockchain-based smart contracts ensure transparency and compliance by executing financial agreements automatically when all conditions meet Sharia requirements.
• Natural Language Processing (NLP): AI-powered NLP tools analyze contracts and legal documents to ensure they align with Islamic guidelines, reducing the time and cost of manual reviews.
• Regulatory Reporting: AI systems streamline the process of documenting and reporting compliance with Sharia standards to regulators, enhancing trust and efficiency.

Example:
A Saudi financial institution implemented an AI-driven compliance tool to evaluate Sukuk (Islamic bonds), ensuring they met ethical requirements while reducing approval times by 30%.

2. Enhancing Sukuk Issuance and Management

Saudi Arabia is a global leader in the issuance of Sukuk, a vital instrument in Islamic finance. AI is playing a pivotal role in optimizing this process.

• Risk Assessment: Machine learning models evaluate market conditions and issuer creditworthiness, offering real-time insights to structure Sukuk offerings effectively.
• Investor Matching: AI algorithms match Sukuk issuers with investors based on risk tolerance, investment goals, and ethical preferences, streamlining the fundraising process.
• Lifecycle Management: AI-powered platforms monitor Sukuk's performance, ensuring timely repayments and compliance throughout the lifecycle of the bond.

3. Personalizing Financial Products

AI enables Islamic banks in Saudi Arabia to deliver highly personalized financial products that meet customer needs while adhering to Sharia principles.

• Robo-Advisors: AI-driven robo-advisors provide tailored investment recommendations for Islamic portfolios, ensuring ethical compliance while maximizing returns.
• Data-Driven Insights: AI analyzes customer preferences and behavior to design custom savings accounts, home financing options, and Halal investment opportunities.

Real-World Impact:
A leading Saudi Islamic bank integrated AI into its product design process, creating personalized investment portfolios that increased customer satisfaction by 40%.

Challenges in Integrating AI with Islamic Finance

1. Ethical Dilemmas

AI applications must operate within strict ethical guidelines to ensure alignment with Islamic principles, avoiding activities like speculation (Gharar) or interest (Riba).

2. Lack of Standardization

While AI systems excel in automation, the lack of universal Sharia standards can create challenges for global implementation.

3. Data Privacy Concerns

AI relies on vast amounts of data, raising concerns about customer privacy and compliance with local regulations in Saudi Arabia.

Opportunities for Growth

1. Expanding Financial Inclusion

AI-driven platforms can bring Islamic financial services to underbanked populations in Saudi Arabia, including rural communities and small businesses.

2. Supporting ESG Goals

AI tools can evaluate investments' environmental, social, and governance (ESG) impact, enabling Islamic financial institutions to align with sustainable development goals while remaining compliant with Sharia law.

3. Accelerating Innovation

By reducing costs and improving efficiency, AI empowers Islamic financial institutions to innovate and compete in a rapidly evolving global market.

AI’s Alignment with Vision 2030

The integration of AI into Islamic finance aligns perfectly with Saudi Arabia’s Vision 2030 goals:

• Economic Diversification: AI enables the Islamic finance sector to expand beyond traditional markets, driving growth and innovation.
• Digital Transformation: Advanced AI systems modernize Islamic banking operations, making them more competitive globally.
• Empowering Women and Youth: AI-driven platforms democratize access to financial services, supporting inclusivity across demographics.

Looking Ahead

The future of Islamic finance in Saudi Arabia is intertwined with technology. As AI continues to evolve, its role in enhancing Sharia compliance, streamlining processes, and delivering personalized products will only grow. For Saudi financial institutions, adopting AI strengthens their competitive edge and reinforces their commitment to ethical and inclusive growth.

To conclude, AI is redefining the boundaries of what’s possible in Islamic finance, enabling Saudi Arabia to maintain its leadership in this sector while meeting the demands of a digital-first economy. By blending technology with tradition, the Kingdom is setting a global benchmark for innovation in ethical finance.

Stay tuned as we continue our journey into the transformative power of AI across Saudi Arabia’s financial ecosystem in the next installment of this series.

Kholoud Hussein 

The banking sector in Saudi Arabia is undergoing a profound transformation as artificial intelligence (AI) reshapes how financial institutions operate and serve their customers. AI is no longer just a tool for innovation; it is a competitive necessity, enabling banks to offer highly personalized services, streamline operations, and enhance risk management.

This second blog in our series delves into how AI is revolutionizing banking in Saudi Arabia, focusing on three key dimensions: personalization, efficiency, and risk management. These advancements are aligned with the Kingdom's broader Vision 2030 goals of creating a world-class financial sector.

1. Personalized Banking Experiences

Saudi customers today demand seamless and personalized banking services. AI enables banks to meet these expectations by leveraging vast amounts of customer data to deliver tailored solutions.

AI-Driven Personalization in Action

• Chatbots and Virtual Assistants: AI-powered tools such as chatbots are transforming customer service by providing instant responses to queries, enabling 24/7 support. Banks in Saudi Arabia, like Al Rajhi Bank and Riyad Bank, are implementing these solutions to enhance customer interactions.
• Predictive Analytics: By analyzing transaction histories, spending patterns, and customer behavior, AI systems can recommend personalized financial products, such as savings plans, credit options, or investment portfolios.
• Omnichannel Experiences: AI enables a seamless transition between digital and physical banking channels, ensuring customers receive consistent and personalized service, whether online, via mobile apps, or in-branch.

2. Streamlining Operations for Greater Efficiency

Operational efficiency is a cornerstone of modern banking, and AI plays a pivotal role in automating repetitive tasks and optimizing processes.

AI Applications for Efficiency

• Back-Office Automation: Tasks such as data entry, document verification, and compliance checks are now handled by AI systems, significantly reducing time and human error.
• Process Optimization: AI-powered workflow management tools optimize resource allocation, ensuring faster turnaround times for services like loan approvals.
• Cost Reduction: By automating labor-intensive tasks, Saudi banks are reducing operational costs, allowing them to reinvest in innovation and customer-centric services.

Real-World Impact:
A major bank in Saudi Arabia implemented AI to streamline its loan processing system, reducing approval times from days to just hours, and dramatically improving customer satisfaction.

3. Strengthening Risk Management and Fraud Prevention

The rise of digital banking in Saudi Arabia has also increased exposure to cybersecurity threats and financial fraud. AI provides advanced tools to mitigate these risks while ensuring robust risk management practices.

AI for Risk Mitigation

• Fraud Detection: Machine learning algorithms analyze real-time transaction data to identify unusual patterns or anomalies that may indicate fraudulent activity.
• Credit Scoring: AI-powered models evaluate a broader range of data, including non-traditional metrics, to provide more accurate and inclusive credit assessments.
• Regulatory Compliance: AI tools help banks ensure compliance with Saudi regulations by automating the monitoring and reporting of transactions, reducing the risk of penalties.

Benefits of AI in Saudi Banking

AI is not just a technological advancement; it is a driver of transformative benefits for the banking sector:

• Enhanced Customer Loyalty: Personalized experiences create deeper customer relationships and improve retention.
• Faster Service Delivery: Automated processes reduce wait times for customers.
• Improved Security: Real-time fraud detection safeguards customer trust and reduces financial losses.
• Data-Driven Decisions: AI insights enable banks to make more informed and strategic decisions.

Challenges and Opportunities

Challenges:

• Data Privacy and Security: As banks collect more customer data, ensuring its protection is critical.
• Workforce Adaptation: Employees need to be reskilled to work alongside AI-driven systems.
• Integration Complexity: Migrating legacy systems to AI-enabled platforms can be a complex and resource-intensive process.

Opportunities:

• Untapped Customer Segments: AI can help banks cater to underbanked populations in Saudi Arabia, including small businesses and rural communities.
• Regulatory Support: The Saudi Arabian Monetary Authority (SAMA) is actively fostering a conducive environment for AI adoption in banking, encouraging innovation while maintaining compliance.

Looking Ahead

As Saudi banks continue to invest in AI, the potential for growth and innovation is limitless. From delivering hyper-personalized experiences to fortifying cybersecurity, AI is positioning Saudi Arabia as a leader in digital banking transformation.

In conclusion, AI is not just changing how banks operate—it is redefining the customer experience, improving operational efficiency, and mitigating risks in unprecedented ways. For Saudi Arabia, where Vision 2030 emphasizes creating a vibrant financial sector, AI is the cornerstone of this transformation.

Stay tuned as we continue to explore the AI revolution across Saudi Arabia’s financial ecosystem in our next installment.

Selina Bieber

As Egypt’s entrepreneurial ecosystem continues to evolve, the country’s small business owners are increasingly recognizing the power of digital solutions to propel their ventures forward. According to the 2024 Global Entrepreneurship Survey, an overwhelming 96% of Egyptian small business owners said that they believe that artificial intelligence (AI) can have a positive impact on their businesses. Yet, despite this optimism, many entrepreneurs still struggle to establish a polished online presence due to a lack of technical expertise, time, or resources.

Survey Insights Reveal Key Barriers to Growth

These challenges are further underscored by additional insights from the survey, which highlight the primary barriers to business growth: difficulties in marketing online (56%), reliance on outdated traditional marketing methods (37%), and a shortage of expertise in website building or technology management (20%). While digital transformation is key to unlocking new opportunities, the path forward for many small businesses remains fraught with obstacles.

GoDaddy's Commitment to Simplifying Digital Journeys

At GoDaddy, we are committed to removing these barriers and simplifying the digital journey for entrepreneurs worldwide. Our latest innovation, GoDaddy Airo™, available in English language, is specifically designed to help small business owners build and manage their online presence with ease. This AI-powered experience provides entrepreneurs with the tools they need to both establish an online identity and to grow their business in a highly competitive digital marketplace.

Introducing GoDaddy Airo™: A Game-Changer for Entrepreneurs

GoDaddy Airo™ is not just another website builder—it’s a comprehensive AI-powered experience that streamlines the entire process of creating and enhancing a business’ online presence. Whether an entrepreneur is launching their first business or scaling an existing one, GoDaddy Airo™ offers an intuitive, user-friendly experience that enables anyone to build custom websites, design unique logos, and craft effective social media marketing strategies.

For those starting with just an idea, GoDaddy Airo™ offers seamless onboarding, suggesting domain names based on a simple description of the business from the entrepreneur. Upon choosing a domain name, it generates essential business assets, including logos and fully designed websites, complete with eye-catching visuals and engaging content tailored to attract customers. The experience also provides professional email accounts, with a paid subscription, that strengthens the credibility and prestige of the business.

As businesses grow, GoDaddy Airo™ continues to support their expansion with powerful marketing tools. It also creates comprehensive email marketing campaigns and optimizes social media calendars. 

Supporting Egypt’s SMEs with Tailored Digital Solutions

In Egypt, where small and medium-sized enterprises (SMEs) play a vital role in driving economic growth, providing tailored digital solutions is more important than ever. GoDaddy recognizes the unique challenges that local entrepreneurs face and is committed to empowering them with technology that simplifies digital transformation. By removing technical barriers and offering AI-powered tools that cater to their specific needs, GoDaddy Airo™ is helping Egypt’s small business owners benefit from new technologies and unlock new opportunities to thrive in an increasingly digital world.

In a landscape where an online presence is no longer optional but essential for success, GoDaddy Airo™ is revolutionizing the way Egyptian entrepreneurs engage with technology. By making AI accessible and easy to use, we’re not just offering products—we’re empowering Egypt’s entrepreneurs to realize their full potential and secure their place in the digital economy. 

Selina Bieber is the Vice President for International Markets at GoDaddy.

Capgemini unveiled today its “TechnoVision Top 5 Tech Trends to Watch in 2025”, focused on the technologies that are expected to reach an inflection point in the next year. The focus on AI and generative AI (Gen AI) is shared both by executives around the world as well as by the venture capital professionals that were interviewed in a global survey to be published at CES in January 2025. It is anticipated to also have a significant impact on other key technologies which are likely to reach a stage of maturity or breakthrough in 2025.

“Last year, Capgemini’s Top 5 Tech Trends predicted the emergence of smaller Gen AI language models and AI agents, both of which came to fruition. We also signaled the importance of Post-Quantum Cryptography, which was confirmed by the publication of the National Institute of Standards and Technology’s standards last summer. And as anticipated, semiconductors have been at the center of attention in 2024 with significant evolution driven by the massive use of AI and generative AI, as well as shifts in market dynamics,” explains Pascal Brier, Chief Innovation Officer at Capgemini and Member of the Group Executive Committee. “In 2025, we see AI and Gen AI having a major impact on companies’ priorities and also on many adjacent technology domains, such as robotics, supply chains, or tomorrow’s energy mix.” 

Technologies to watch in 2025

1. Generative AI: From copilots to reasoning AI agents

Generative AI is now entering the dawn of a gentrification where AI systems are evolving from isolated tasks to specialized, interconnected agents. In fact, according to a Capgemini Research Institute survey of 1,500 top executives globally, which will be published in January 2025, 32% of them place AI agents as the top technology trend in data & AI for 2025.  Thanks to the increasing capabilities of logical reasoning in Gen AI models, these will start operating more autonomously while providing more reliable, evidence-based outputs, and will be able to manage tasks such as supply chains and predictive maintenance without constant human oversight. AI systems can handle dynamic decision-making in more sensitive environments where correctness is paramount. The next step will be the rise of a super agent, an orchestrator of multiple AI systems, optimizing their interactions. In 2025, these advancements will enable new AI ecosystems across industries, allowing new levels of efficiency and innovation.

Why it matters: With the maturation of AI models, transformer models and other Gen AI architectures have reached new levels of sophistication and accuracy, making multi-agent systems viable for real-world, complex, dynamic decision-making, even in unpredictable situations. This is set to unlock greater potential in industries that rely on quick, flexible responses to unexpected challenges, such as healthcare, law, and financial services.

1. Cybersecurity: New defenses, new threats

AI is transforming cybersecurity, enabling both more sophisticated Gen AI-enhanced cyberattacks and more advanced AI-driven defenses to the point where almost all organizations surveyed (97%) in the recently published Capgemini Research Institute’s report say they have encountered breaches or security issues related to the use of Gen AI in the past year. In recent years, with remote work, companies now face a larger attack surface and greater vulnerability to these threats. In fact, 44% of top execs in the upcoming Capgemini Research Institute report place the impacts of Gen AI in cyber as the top technology topic in cybersecurity for 2025. To mitigate these risks, there have been renewed investments and innovations in endpoint and network security, increased efforts to automate threat detection, especially using AI-driven threat intelligence, as well as an effort to prepare for the future by reinforcing encryption algorithms, in particular the growing interest into Post-Quantum Cryptography to protect against the next expected disruption: quantum-computing threats. This shift marks a broader transformation in how businesses approach security and build trust in their increasingly autonomous systems. 

Why it matters: In 2025, generative AI-powered cyberattacks will continue to be more sophisticated and widespread, increasing risks for organizations. In parallel, as AI plays a larger role in decision-making and operational control, ensuring that humans trust these systems will become crucial. But it's not just about being safe—it's about feeling safe. Cybersecurity must address both technical and psychological concerns, ensuring not only protection but confidence in the systems people rely on daily.

1. AI-driven robotics: Blurring the lines between humans and machines

Advancements in AI technology have accelerated the development of next-generation robots, building upon innovations in mechatronics and expanding beyond traditional industrial uses. While robotics used to be dominated by hard-coded, task-specific machines, the development of Gen AI is spurring the development of new products (including humanoid robots and collaborative robots - or cobots) that can adapt to diverse scenarios and learn continuously from their environment. According to the Capgemini Research Institute’s upcoming report, 24% of top executives and 43% of Venture Capitalists see AI-driven automation and robotics as one of the top 3 tech trends in data and AI in 2025. With robots becoming more autonomous and AI taking on complex decision-making roles, the future of work may see a shift in the traditional structure of authority. The rise of AI-powered machines that mimic human behaviors challenges our understanding of leadership, responsibility, and collaboration, ultimately pushing us to reconsider the role of humans.

Why it matters: As Industry 4.0 progresses, AI-powered robots will drive efficiency, flexibility, and innovation, becoming key components of intelligent, connected systems that redefine industrial processes. By 2025, advances in natural language processing and machine vision will further enhance their capabilities, allowing robots in manufacturing, logistics, and agriculture to take on more complex roles within the modern workforce.

1. Nuclear: The surge of AI driving the clean tech agenda

The energy industry is in the midst of a transformative shift, with the energy transition accelerating at an unprecedented pace. This change is fueled by mounting pressure to fight climate change and supported by rapid innovations across various sectors, from renewables and biofuels to low carbon Hydrogen and beyond. Nuclear energy stands out as a focal point for 2025: nuclear is re-emerging at the top of the business agenda, propelled by the urgent need for clean, dependable and controllable power that can support the rising energy demands of AI and other high-energy technologies. Although in September/October 2024,   very few top execs globally identified Small Modular Reactors (SMRs) as a top 3 Sustainability technology for 2025, SMR technology development is expected to accelerate by 2025, and other key innovation priorities include strides toward limitless, clean power with nuclear fusion, or Advanced Modular Reactors that differ from light water reactors in the use of new types of fuels and a higher temperature and for some of them the promise to reduce the production of nuclear waste. 

Why it matters: Driven by the massive energy demands of AI, major tech players are turning to nuclear energy to meet their growing computing needs. Large-scale investments are expected to further accelerate innovation in reactor technology and waste management, as the tech industry acknowledges that renewables alone cannot sustain its energy demands.

1. New generation supply chains: Agile, greener and AI-assisted 

In the last few years, businesses have had to navigate increasingly complex, unpredictable market conditions. Key technologies including AI, data, blockchain, IoT, and connectivity with Terrestrial Satellite Networks are now playing a strategic role in improving the cost efficiency, resilience, agility, circularity, and sustainability of supply chains. These technologies are allowing companies to enhance their predictive capacities and navigate an ever-changing ecosystem as they have now reached a sufficiently high level of maturity and therefore reliability. Meanwhile, progress in space techs such as low-earth orbit satellite constellations is particularly essential to increase coverage in white spots which is crucial for companies to be able to control their entire supply chains throughout the globe. In fact, according to the Capgemini Research Institute’s upcoming report, 37% of top executives see these new-generation supply chains powered by technologies as the top tech trend in industry and engineering in 2025. Additional regulatory and environmental constraints will make this shift all the more critical to ensure competitiveness, agility and resilience.

Why it matters: In 2025, global supply chains will keep facing environmental disruptions, regulatory pressures, and geopolitical tensions which will impact the flow of goods and raw materials. New regulations like the European Union’s Digital Product Passport will make it mandatory for companies to track and disclose the environmental footprint of their products, pushing them to adopt more sustainable practices. 

Beyond 2025 - technologies shaping the next 5 years:

1. Engineering biology: BioSolutions to today’s most pressing challenges

While the potential of engineering biology and its ability to transform manufacturing, develop drugs, and produce materials with novel properties has been widely discussed over the past years, this technology is yet to reach its scaling phase. According to the Capgemini Research Institute’s upcoming report, 41% of top executives believe that molecular assembly will reach maturity and become commercially viable by 2030. Meanwhile, 37% of them envision the same for Genomic Therapies. In the coming years, we can look forward to new innovations in this diverse field, such as personalized mRNA vaccines and GenAI for protein design.

1. Quantum computing: on the verge of the quantum leap

According to the upcoming Capgemini Research Institute survey, 55% of top executives and 44% of VCs expect quantum computing to be one of the top 3 technologies within the ‘Computing & Networking’ space which will create a major impact in 2025. 41% of top executives expect to be experimenting with quantum computing Proofs of Concepts with limited use cases, and 27% of the top executives surveyed expect the technology to be partially scaled in some parts of the organization in 2025. The key question is – when will the quantum leap happen, and who will master it?

1. Artificial General Intelligence: I think, therefore AI am? 

AI reasoning capabilities have made spectacular progress over the past 5 years, and some predict an era of artificial general intelligence (AGI). As such, 60% of top executives and 60% of VCs surveyed by the Capgemini Research Institute believe this technology will reach maturity and become commercially viable by 2030. Would this technology basically be able to mimic human intelligence to the point of making it irrelevant? This topic leads to exaggerated predictions, and some now question whether the intelligence potential of the technology is really unlimited.

Ghada Ismail 

Welcome back to the ‘Building Bridges: A Startup's Guide to Partnerships at Every Stage’ series. In the previous installment, we explored the foundational partnerships essential for startups in their pre-launch phase. Today, we dive into the seed stage, a pivotal moment in a startup's journey when the focus shifts to securing funding, building a market presence, and assembling a scalable team. Partnerships during this phase can either propel a startup toward its next big milestone or lead to missed opportunities.

The Seed Stage: A Crucial Growth Phase

At the seed stage, startups transition from idea validation to actual execution. This phase typically involves:

Securing initial capital.

Establishing a product-market fit.

Laying the groundwork for scalable operations.

For all these goals, partnerships play a central role. Whether through financial backing, strategic insights, or operational support, the right alliances can accelerate growth and de-risk early challenges.

Key Partnerships to Cultivate at the Seed Stage

Angel Investors

These early-stage backers bring more than just funding; they offer industry knowledge, mentorship, and valuable connections.

Why they matter: Angel investors often have vested interests in the startup’s success and can provide tailored guidance that goes beyond financial support.

Venture Capital (VC) Firms

While traditionally associated with later stages, some VCs specialize in seed funding. Partnering with such firms not only brings financial resources but also credibility.

Why they matter: Their expertise and networks open doors to new markets, advisors, and even future funding rounds.

Early Adopter Customers

Collaborating with initial users or clients who are passionate about your product can provide critical feedback and validate your market assumptions.

Why they matter: They help refine your offering, build case studies, and establish early revenue streams.

Talent Partners

Building a strong team is imperative at this stage. Recruitment agencies, universities, or even freelance platforms can be vital allies in identifying the right talent.

Why they matter: A capable team ensures smoother scaling and higher efficiency.

Service Providers

Specialized partners for marketing, product development, or legal services can help streamline operations without the need for full-time hires.

Why they matter: They provide expertise at a fraction of the cost, enabling startups to allocate resources effectively.

What to Look for in Seed-Stage Partners

Aligned Vision: Ensure your partners believe in your product and share your goals for growth.

Credibility: Reputation matters, especially when securing investors or service providers. Conduct due diligence to assess their track record.

Mutual Value: A good partnership is a two-way street. Look for collaborators who can benefit as much as you from the relationship.

Tips for Forming Effective Seed-Stage Partnerships

Leverage Networks: Use incubators, accelerators, and personal connections to identify potential partners.

Communicate Clearly: Define roles, expectations, and outcomes at the outset to avoid conflicts.

Measure Progress: Establish metrics to evaluate the success of the partnership periodically.

To wrap things up, the seed stage is where dreams begin to materialize. Strategic alliances during this phase can provide the momentum your startup needs to break into the market and scale efficiently.

In the next installment, we’ll explore partnerships critical for scaling up and managing rapid growth. Stay tuned for insights into navigating the challenges of expansion!