Henkel’s GBS+ Revolution: Driving Innovation and Sustainability in the MENA Region

Dec 19, 2024

Kholoud Hussein 

 

In the rapidly evolving landscape of global business operations, Henkel’s Global Business Solutions+ (GBS+) network stands as a testament to innovation, efficiency, and strategic vision. This exclusive interview with Roland Haefs, Corporate Vice President of GBS+, and Shereen Alaa, Head of GBS+ Cairo, provides invaluable insights into the pivotal role played by GBS+ in Henkel’s global strategy, with a special focus on its expanding footprint in the MENA region.

 

The conversation explores the strategic foundations of Henkel’s Cairo GBS+ Center, its contributions to Henkel’s operational excellence, and its alignment with regional and global priorities such as digital transformation, sustainability, and talent development. With Egypt positioned as a regional hub for advanced services and solutions, the interview also delves into the potential for growth across the MENA region, including opportunities in Saudi Arabia under Vision 2030.

 

Sharikat Mubasher presents this exclusive interview, shedding light on how Henkel’s GBS+ continues to redefine business processes, foster innovation, and drive sustainable impact in one of the world’s most dynamic markets.

 

The following questions are answered by Roland Haefs, Corporate Vice President, Global Business Solutions+ (GBS+): 

 

Could you provide an overview of the current scale and influence of the GBS+ network globally? What are the key goals for expanding its role within Henkel’s global strategy, particularly as it pertains to the MENA region?

 

Henkel’s GBS+ organization, with a workforce of over 3,600 highly qualified employees, has become a critical component of Henkel’s value chain. Over the past 20 years, it has evolved from a transactional partner to a strategic player, operating across all time zones and languages. Today, GBS+ centers are located in Manila (Philippines), Bratislava (Slovakia), Mexico City (Mexico), Shanghai (China), and Cairo (Egypt).

 

The organization consists of specialized teams in areas such as finance, HR, IT, planning, sourcing, production, logistics, marketing, and sales. This broad expertise enables Henkel to deliver innovative solutions that meet the diverse needs of our global operations.

 

With a strong focus on digital transformation and process optimization, GBS+ will continue to streamline operations, enhance efficiency, and expand its role in higher value-adding activities. As we look to the future, expanding GBS+’s capabilities in the MENA region will be a key aspect of Henkel’s global strategy, further strengthening our ability to support the company's growth and operational excellence across markets.

 

What were the strategic factors behind choosing Egypt as a base for Henkel’s GBS+ Center? Additionally, do you foresee opportunities to expand similar operations in Saudi Arabia, and what role could it play within Henkel’s MENA vision?

 

Henkel chose Egypt as the base for its GBS+ Center for several strategic reasons. First, Egypt’s central geographic location enables it to cover multiple time zones, facilitating real-time collaboration with countries across the EMEA region and beyond. Additionally, Egypt offers a highly skilled, multilingual talent pool, which was instrumental in the establishment of our GBS+ Center. This decision also aligns with Henkel’s long-term goal to strengthen its presence in Egypt and transform the country into a hub for both product and service exports.

 

The GBS+ Center in Cairo is a critical part of Henkel’s broader strategy to expand its footprint in the Middle East and Africa (MEA) region. It positions Egypt as a global export hub for Henkel, particularly in terms of digital and technological solutions. The center plays a key role in enhancing Henkel’s service offerings by strengthening our digital capabilities and enabling us to deliver high-impact, value-added solutions across the MEA region and beyond.

 

By leveraging local talent and advanced technologies, Henkel is driving operational efficiency and innovation in the region. The GBS+ Cairo center is already playing a pivotal role as an exporting hub for digital and technology-driven solutions, supporting Henkel’s global operations.

 

As for Saudi Arabia, the country’s Vision 2030 focuses on diversification and development across multiple sectors, including technology and innovation. Henkel’s established investments in Saudi Arabia, including manufacturing facilities and an expanding market presence, align closely with the Kingdom's strategic objectives. While there are no immediate plans for expanding GBS+ operations in Saudi Arabia, the country’s growing role in Henkel’s strategy presents potential opportunities for future collaboration in line with Vision 2030’s goals.

 

How do you envision the Cairo GBS+ Center contributing to Henkel’s standing across the MENA region? What are some specific regional milestones or achievements you anticipate for this center in the near future?

 

The GBS+ Center in Cairo plays a pivotal role in strengthening Henkel’s presence across the Middle East and Africa (MEA) region. As a comprehensive organization, it offers a wide range of services that support Henkel's global operations and enable the company to meet the diverse needs of countries worldwide. This is made possible by the center’s strong multilingual talent pool, which allows GBS+ Cairo to operate in eight languages, including Arabic, English, French, German, Turkish, and Spanish. As a result, it provides services and solutions to over 75 countries globally.

 

Looking ahead, GBS+ Cairo holds significant potential to further contribute to Henkel’s strategic goals. It will remain a key part of Henkel's broader strategy to enhance its regional footprint, positioning Egypt as a hub for both product and technological exports. Henkel's vision includes not only expanding product exports but also strengthening its digital and technological presence by exporting innovative solutions and services.

 

Furthermore, the Cairo center is expected to play a central role in Henkel’s sustainability and digitalization initiatives, which are integral to the company's regional and global objectives. This will enable GBS+ Cairo to drive value for Henkel while supporting the company’s commitment to sustainable growth and digital transformation in the MEA region.

 

In what ways will the Cairo GBS+ Center support and enhance Henkel’s operations in the MENA region? 

 

The GBS+ center in Cairo plays a critical role in enhancing Henkel’s operations by streamlining and standardizing processes through the use of automation and digital solutions. With over a decade of experience, GBS+ Cairo is focused on adopting value-added activities that drive greater efficiency and effectiveness across the organization.

 

The center provides a comprehensive suite of services, including human resources, financial accounting and analysis, sales order processing, customer service, and marketing support. This broad portfolio enables Henkel to optimize operations and improve responsiveness to market demands, leading to better overall business performance.

 

In recent years, the center has expanded its capabilities to include IT and data analytics, reinforcing Henkel’s competitiveness in an increasingly fast-paced market. Moreover, the expansion of language support from three to eight languages has allowed GBS+ Cairo to serve over 75 countries, further strengthening its global reach and operational impact.

 

By leveraging local expertise and driving innovative practices, the GBS+ Cairo center supports Henkel’s global strategy, positioning Egypt as a key hub for advanced services and solutions, not just in the MENA region, but on a global scale.

 

How does the Cairo GBS+ Center fit into your broader vision for Henkel’s GBS+ network, and what unique contributions do you see it making to Henkel’s regional success across MENA, including Saudi Arabia?

 

The Cairo GBS+ Center is a key element of Henkel’s broader vision for its Global Business Services (GBS+) network. Strategically located in Egypt, the center takes full advantage of the country’s robust infrastructure, skilled workforce, and deep regional market knowledge to optimize essential processes, including finance, IT, and sales. 

 

This aligns with Henkel’s goal of streamlining operations, enhancing digital capabilities, and fostering innovation across the global network. With its focus on process efficiency and service excellence, GBS+ Cairo plays a critical role in supporting Henkel’s growth strategy, both within the MENA region and internationally, including in key markets such as Saudi Arabia.

 

The following questions are answered by Shereen Alaa, Head of Global Business Solutions+ (GBS+), Cairo:  

 

Can you give us an overview of the Cairo GBS+ office's current scale and scope, including the number of employees, primary services, and areas of specialization?

 

GBS+ Cairo began in 2014 and has grown significantly since then, now employing 260 talented people. The center provides a wide range of services and solutions in human resources, accounting, and financial analysis, sales order processing and payments, customer service, sales reporting, marketing support, and IT and digital solutions. 

 

This diverse portfolio allows Henkel to streamline operations and contribute to better overall business performance. Additionally, the number of supported languages has increased from three to eight, allowing GBS+ Cairo to offer its services from Egypt to more than 75 countries across the globe. 

 

How does the Cairo GBS+ Center support the development of local talent, particularly young professionals in Egypt? What skill sets are being prioritized to make the workforce competitive on a global scale?

 

At GBS+ Cairo, we are committed to the continuous development and upskilling of young Egyptian talent by providing unique opportunities for hands-on and practical experience. 

We offer on-the-job training programs that strengthen our employees’ expertise and job rotation opportunities to broaden their knowledge beyond their area of expertise. 

 

Additionally, we focus on our young talents in universities and organize multiple programs that prepare them for the job market. These include internships that give them hands-on work experience and job shadowing and case studies sessions to familiarize them with the practical application of their studies. We are proud that 54% of our interns were hired with us.

 

We aim to enhance skills across all areas, but prioritize expert competencies, digital mindset, and business acumen. This is in addition to soft skills training programs that equip our team members with the skills needed in today’s and tomorrow’s work environment, such as communication, presentation, project management, strategic thinking, and many more.

 

All these initiatives aim to prepare the workforce for global competitiveness, ensuring that local talent contributes effectively to Henkel’s international operations while also fostering Egypt's talent pool for future growth in the region.

 


Could you elaborate on the Cairo GBS+ Center’s approach to sustainability and social responsibility, and how it aligns with Henkel’s global standards? What positive impacts have been observed on the local environment and community, and what are your future goals in this area across MENA?

 

The GBS+ Cairo approach to sustainability and social responsibility aligns closely with Henkel’s global strategy, particularly its commitment to Environmental, Social, and Governance (ESG) objectives, which place a high priority on environmental and community well-being. 

At Henkel, corporate social responsibility (CSR) is central to our purpose, focusing on sustainability, social engagement, and ethical business practices.

 

Our CSR initiatives aim to make a lasting positive impact on the environment and society through education and active community involvement.

 

At GBS+ Cairo, we are proud of our strong culture of volunteering, with each team member contributing an average of 7.5 hours annually, leading to an impressive total of 10,000 volunteering hours dedicated to community projects over the past decade, such as Children Cancer Hospital, Green school program to name a few. This collective effort highlights our commitment and reflects our core values of equity, inclusivity, and social impact, which align perfectly with Henkel’s global standards. 

Both Henkel’s broader goals—such as reducing its environmental footprint, fostering a circular economy, and improving resource efficiency—and GBS+ Cairo's community outreach initiatives are aimed at creating long-term positive impacts on both the environment and society. Moving forward, Henkel’s goals in MENA, including Egypt, will continue to focus on strengthening these sustainability efforts, ensuring they contribute to Henkel’s global vision of a sustainable and equitable future for all.

 

By prioritizing sustainability, social responsibility, and ethical values, we bring our purpose to life: "Pioneers at Heart for the Good of Generations".

 

How does the Cairo GBS+ Center promote gender equality and female leadership? What initiatives are in place to increase women’s participation in the workforce, and are there similar plans for other parts of the MENA region?

 

At Henkel, we strongly believe that our diversity is our strength! We are committed to fostering an inclusive environment that nurtures the growth of all employees. 

Since women make up nearly 70% of the workforce, we see this representation as a proud accomplishment that embodies our basic beliefs and ideals rather than merely a figure. For us at GBS+ Cairo, increasing women's involvement in the workforce is essential to attaining inclusivity and balance, which in turn encourages creativity and innovation.

 

We are committed to fostering an atmosphere that nurtures everyone’s growth and enables women to assume leadership positions and play a part in the company’s success. This is evident with our over 65% female representation in leadership. We see that empowering women to assume leadership positions contributes is integral to shaping and cultivating a culture of collaboration and excellence.

 

What is the center’s future outlook for growth within the MENA market? What potential do you see for further expansion and impact throughout the region, and what makes MENA a priority for Henkel?

 

The Cairo-based GBS+ Center is a key component of Henkel's broader strategy to enhance its presence in the Middle East and Africa (MEA) region and position Egypt as a global export hub. 

Henkel has strengthened its presence in the Middle East and Africa region with GBS+ Cairo positioned as a comprehensive organization, that provides a wide range of high-impact value-adding services and solutions as well as digital and technological solutions that support Henkel's global operations and enables the company to cater to all countries across the globe. 

 

Looking ahead, GBS+ Cairo holds significant potential to further contribute to Henkel’s strategic goals. It will remain a key part of Henkel's broader strategy to strengthen its regional footprint in the dynamic and growing market in the Middle East and Africa region. 

 

Furthermore, the Cairo center is expected to play a central role in Henkel’s sustainability and digitalization initiatives, which are integral to the company's regional and global objectives. This will enable GBS+ Cairo to drive value for Henkel while supporting the company’s commitment to sustainable growth and digital transformation in the MEA region, adding to the region's strategic importance.

 

 

 

 

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Ground Up Growth: How Greenfield FDI and Startups Are Re-Engineering Saudi Arabia’s Economy

Kholoud Hussein 

 

Greenfield foreign direct investment (FDI) is no longer episodic, it’s compounding. In the first half of 2025 alone, investors announced 203 greenfield projects worth $9.34 billion, a 30% year-on-year jump in project count that underscores Saudi Arabia’s evolving appeal as a platform for new capacity, plants, data centers, and service hubs rather than mere capital transfers or acquisitions. Riyadh leads by a wide margin—100 projects and $2.3 billion—with Dammam (21 projects; $1.28 billion) and Jeddah (13 projects; $1.22 billion) emerging as secondary magnets in a multi-city investment map that policy planners have sought to build since Vision 2030’s launch. 

 

Why greenfield—and why now?

Three policy levers have altered investor behavior. First, regulatory reforms—commercial courts, a modernized civil transactions law, and faster company formation—are gradually reducing transaction friction and legal uncertainty. The Regional Headquarters (RHQ) program adds a powerful demand-side nudge: multinationals that want to win government business now need a Saudi RHQ, helping seed executive talent, procurement, and shared services in the Kingdom. As Investment Minister Khalid Al-Falih noted earlier this year, nearly 600 global firms have committed to an RHQ in Saudi Arabia, well ahead of the original 2030 target. 

 

Second, the Premium Residency framework—expanded in 2024–2025—simplifies long-term settlement for skilled professionals, investors, and founders, including dedicated tracks for entrepreneurs and investors. That matters in greenfield projects where expatriate leadership and specialist technicians must relocate to design, commission, and operate new assets. Applications crossed 40,000 between January 2024 and July 2025, a leading indicator of human-capital inflows tied to investment. 

 

Third, sectoral strategy has become more “bankable.” Industrial policy in advanced manufacturing, logistics, clean energy, and digital infrastructure is translating into investible pipelines. The Ministry of Industry and Mineral Resources reports 1,346 new industrial licenses in 2024, channeling SR50 billion ($13.3bn) of fresh commitments and bringing private investment in industrial cities to SR1.9 trillion—a base that foreign manufacturers can plug into for suppliers, utilities, and land. 

 

The city map: Riyadh ascendant, co-anchors emerge

Riyadh’s dominance in greenfield projects is not accidental. The capital now bundles market access, procurement proximity, and talent density. The once-quiet King Abdullah Financial District (KAFD) is filling with global names—HSBC, Accenture, Goldman Sachs, Morgan Stanley—turning the skyline into substance and giving CFOs and general counsels a neighborhood to recruit from. As one recent analysis put it, regulatory reforms have improved the legal framework even as investors continue to ask for greater clarity across agencies. 

 

But the geography is widening. Dammam channels industrial and energy logistics through the Eastern Province’s ports and suppliers, while Jeddah—with its Red Sea connectivity—pulls in logistics, tourism, and consumer projects. The distribution of project counts and capital across these cities—Riyadh 100; Dammam 21; Jeddah 13—confirms a multi-node investment story rather than a single-city bet. 

 

Greenfield meets startups

The most important complement to greenfield FDI is the startup engine that services, localizes, and extends foreign projects. Saudi venture activity rebounded sharply in 2025: by mid-year, the Kingdom posted a 116% YoY jump in capital deployed and a 31% rise in deal count, matching the UAE for the first time in H1 deal volume. This matters because international manufacturers and digital operators increasingly source innovation from local SaaS vendors, AI integrators, and robotics startups orbiting their plants and offices. 

 

Policy alignment is visible in the Entrepreneur License and the RHQ rules. The entrepreneur track allows qualified foreign founders to set up 100% foreign-owned startups—often as service providers to greenfield entrants—while the RHQ push draws corporate venture arms and innovation budgets into Riyadh. By mid-2025, 550 foreign startups had been licensed under the entrepreneur scheme—up 118% year-on-year—with 364 incubators and accelerators licensed nationwide to help scale them. A founder of a European industrial-AI firm now opening in Dammam put it succinctly at a private investor roundtable: “Our Saudi entity exists because our customers’ Saudi plants now exist”—a network effect where greenfield begets startup formation and vice versa. 

 

Where the projects are going

The sector distribution of H1-2025 greenfield announcements tracks three structural themes:

 

1) Advanced industry and clean tech. With new industrial licenses and utility corridors in place, manufacturers are building for the GCC and wider MENAT region. Chinese-Saudi ties have deepened beyond crude: from 2021 to Oct-2024, China became the top source of greenfield FDI into Saudi Arabia—$21.6 billion—mostly in clean technologies. Expect more battery materials, solar components, and grid-adjacent electronics as localization ratios rise. 

 

2) Digital infrastructure and AI services. RHQ mandates bring CIOs and CTOs closer to Saudi demand centers, driving data center builds, cloud points of presence, and AI integration work. The transition of KAFD from a real-estate project to a functioning financial and advisory hub puts more dealmakers and systems integrators within walking distance—important for multi-year transformation programs.

 

3) Logistics and tourism. Red Sea assets and the Kingdom’s burgeoning visitor economy are catalyzing warehousing, freight forwarding, and destination infrastructure. Greenfield FDI is attractive in these sub-sectors because global operators can standardize formats and import operating playbooks while training local teams to scale.

 

Interactions with executives reveal a pattern. One European mobility CEO whose firm is commissioning a Riyadh assembly facility noted privately that the “RHQ rule changed our cost-benefit analysis—being here is now the default”, adding that proximity to large government buyers reduced bid risk. That sentiment echoes broader coverage that the RHQ rule has become a decisive factor in competitive positioning for contracts. 

 

A US manufacturing executive added that talent visas and premium residency eased the relocation of commissioning engineers—“We used to rotate teams; now we can plant them”—crediting the expanded residency categories for compressing timelines. The sustained influx of premium residency applicants in 2024–2025 supports that operational angle. 

 

Startups as force multipliers

For foreign investors, the Saudi startup scene is a force multiplier, not a sideshow. Corporate innovation managers are now writing local checks to automate back-office functions, deploy industrial IoT, and stand up Arabic-first AI copilots. The rebound in Saudi venture funding in H1 2025 (+116% YoY) provides foreign companies with a denser supplier ecosystem for software and services, reducing vendor concentration risk and enabling pilots to scale faster. 

 

Policy has synchronized on the supply side too. The Entrepreneur License enables 100% foreign-owned tech startups with incubator endorsements or IP/patent credentials—critical for specialist vendors that prefer full control over code and export rights. As that cohort scales—550 foreign startups licensed by mid-2025—large greenfield investors can source more of their localization roadmaps domestically. 

 

Headwinds

Investors are not naïve about risks. Execution complexity on giga-projects, uneven agency coordination, and cost inflation remain top of mind. Reporting in late 2024 and 2025 highlighted delays and scope resets at mega-developments, prompting some boardrooms to stage capital in tranches tied to off-take, permitting, or infrastructure milestones. Officials have framed signature projects like NEOM as “generational investments,” signaling tolerance for long runways while trying to avoid over-promising short-term outcomes. 

 

At the same time, ministers have emphasized macro resilience and non-oil momentum to reassure investors during bouts of geopolitical noise or commodity volatility. In late-2024 remarks, the investment minister argued that non-oil activity has maintained a 4–5% trend since 2017, even as the IMF adjusted near-term growth forecasts due to oil market management. That narrative—stability plus reform—is part of why greenfield decisions are continuing rather than pausing. 

 

What to expect next 

Deal flow broadens beyond Riyadh. Riyadh will remain the anchor, but Dammam and Jeddah should capture rising shares in energy-adjacent manufacturing and logistics/tourism, respectively. The H1-2025 distribution offers a baseline for the next two years as supply chains are rerouted closer to demand and ports. 

 

Premium Residency and RHQ continue to clip friction. With tens of thousands of residency applications and ~600 RHQs already committed, the soft infrastructure for talent mobility and corporate governance is maturing. Each additional RHQ is effectively a funnel for supplier mandates and local procurement that greenfield operators can tap. 

 

Startups become embedded vendors. The 118% annual jump in licensed foreign startups and the 116% YoY leap in H1-2025 venture funding are not cosmetic. They are the early signs of a procurement market where Saudi-based SaaS, AI, and Industry 4.0 firms are preferred partners for localization and Arabic-first adaptation. Expect corporate venture capital and joint labs to proliferate inside KAFD and nearby innovation districts. 

 

Greenfield spreads into services. Not all greenfield is smokestacks. Banks, insurers, and professional services are standing up operating centers and shared-services hubs to serve the GCC, anchored by RHQ mandates and deepening local client rosters. The visible “re-tenanting” of KAFD is one barometer of that pivot. 

 

A founder’s lens

For founders—Saudi and foreign—the opportunity is unusually bidirectional. Greenfield projects create demand-side certainty for B2B startups: quality assurance, maintenance, workflow automation, Arabic NLP, ESG reporting, and workforce upskilling. The entrepreneur pathway enables foreign technologists to establish Saudi-based entities directly; accelerators and incubators—364 licensed as of mid-2025—can mitigate the risks associated with the first year by providing customer introductions and guidance on product-market fit. In turn, startups make foreign factories and service hubs more competitive regionally, helping parent companies justify additional waves of capex. 

 

One Riyadh-based industrial AI founder described the flywheel candidly: “We built for a single multinational plant; six months later we were in four facilities across two cities.” That is what Greenfield looks like when it works: physical assets anchoring software demand, and software compressing time-to-productivity for physical assets.

 

Finally, Saudi Arabia’s greenfield story is not simply about large checks; it is about institution-building that converts checks into capacity, jobs, and exportable know-how. The 203 projects in H1-2025 document momentum; the RHQ numbers document commitment; the startup licensing and venture rebound document optionality. Together, they form the scaffolding of a non-oil economy that investors and founders can model around.

 

Challenges remain—predictability, inter-agency clarity, and global macro headwinds—but the direction of travel is unmistakable. As one policymaker put it on stage in Riyadh late last year, the Kingdom is “resilient and investable” even as it manages near-term oil and fiscal variables. For greenfield investors and the startups that orbit them, the actionable question is no longer if Saudi Arabia fits the strategy. It’s where—Riyadh, Dammam, Jeddah—and how fast.

 

 

Building Bulletproof Startups: Why Crisis Management Is a Founder’s Most Underrated Skill

Ghada Ismail

 

Every founder dreams big. Maybe you want to build the next unicorn, shake up an entire industry, or just prove the doubters wrong. We spend endless hours chasing product-market fit, pitching investors, and running growth experiments. But here’s the uncomfortable truth: none of it matters if your startup can’t survive its first real storm.

And storms will come. That’s where crisis management—an unglamorous but vital skill—quietly decides whether a startup folds or fights through.

 

The Crisis You Don’t See Coming

Startups rarely die from the challenges we expect. It’s the curveballs that sting. A regulator rolls out new rules that wreck your business model. An investor pulls out right before payroll. Your product crashes just as your first big wave of users arrives. Veteran founders know this. They don’t waste energy pretending crises won’t happen. Instead, they prepare, because preparation beats panic every time.

 

Why Founders Don’t Talk About It

Let’s be honest: talking about crisis planning doesn’t sound positive. It feels like admitting weakness. Founders prefer to pitch bold visions, not “what if everything breaks?” scenarios. But the thing is, investors and teams don’t expect perfection; they expect adaptability. A founder who says, “Here’s what could go wrong, and here’s how we’ll handle it,” isn’t sowing doubt. They’re building trust.

 

Building Your Startup’s “Crisis Muscle”

You don’t have to wait for chaos to test you, but you can train for it in the following ways:

  1. Scenario mapping. Write down your top “nightmare” risks. For each, note warning signs, who acts first, and what immediate moves you’d make. That’s your crisis textbook.
  2. Cash contingencies. Know your minimum runway. Keep an emergency cash reserve that you can fall back on when things go wrong, like a sudden drop in sales, a lawsuit, or a supply chain problem. This safety net gives your startup breathing room to survive a crisis and plan the next move. Founders who survive downturns usually made financial discipline a habit long before.
  3. Communication protocols. Don’t wing it when bad news hits. Decide now how you’ll brief your team, investors, and customers. One clear, honest message beats a dozen scattered ones.
  4. Be Ready to Pivot. A crisis can reveal weaknesses in your business model. Use it as a chance to adapt, whether that means adjusting your pricing, changing suppliers, or targeting a new customer group.
  5. Prepare your employees for the worst. Run “what if” rehearsals with your team and prepare them for different scenarios. What if the platform goes down for 48 hours? What if your biggest client walks? This protocol can save your company later.

 

Crises Can Spark Breakthroughs

Crises are tough, but they can also open new doors. In Saudi Arabia, startups like HungerStation and Jahez used the disruption of COVID-19 to adapt fast and secure their lead in the market.

The bottom line: a crisis might show you what’s broken, but it can also point you to opportunities you wouldn’t have noticed otherwise.

 

To Wrap Things Up…

Vision gets people excited to join your journey. Resilience keeps them there when the dream feels shaky. You don’t need to obsess over every disaster scenario, but you do need a framework for how you’ll respond when—not if—the storm comes.

Think of crisis management as founder insurance. Not the glamorous part of the job, but the part that keeps your dream alive. That’s how you build a startup that doesn’t just grow fast, but rather lasts.

 

Your voice, your wallet: The power of voice in seamless financial transactions

Noha Gad 

 

The e-payments have become the backbone of modern commerce as they enable everything from online shopping and bill payments to peer-to-peer money transfers and business-to-business transactions. The adoption of e-payments has surged in recent years thanks to their convenience, speed, and security features, such as tokenization and biometric authentication. Both businesses and consumers benefit from the ability to make instant or near-instant payments anytime and anywhere with minimal friction, setting the foundation for a cashless economy. 

Voice payments emerged as one of the latest innovations in the broader e-payments ecosystem. They allow users to perform financial transactions simply by speaking commands to voice-enabled devices like smartphones, smart speakers, or virtual assistants such as Amazon Alexa, Google Assistant, and Apple Siri. 

Voice payments leverage artificial intelligence (AI), natural language processing (NLP), and voice recognition to interpret spoken instructions, authenticate users, and process payments seamlessly without the need for physical interaction with devices. By saying commands, users can enjoy a faster, more convenient, and hands-free transaction experience.

This type of payment integrates with payment gateways and banks behind the scenes to complete these transactions securely, often using voice biometrics and multi-factor authentication to ensure safety.

 

How do voice payments work?

To conduct financial transactions via voice, users must follow few steps:

       *Activation: users activate their voice assistant by saying a wake word or opening a voice payment app and tapping the microphone button.  

       *Instruction: the user clearly states their payment command, specifying the action, the recipient, and the amount to be paid or transferred.

       *Voice recognition and processing: The voice assistant captures the spoken command and converts it into text using voice recognition technology. NLP algorithms then interpret the intent and details of the transaction.

       *Authorization: The assistant securely communicates with the user’s linked financial accounts to authorize the transaction. 

       *Authentication: Security steps, such as voice biometrics, passcodes, or multi-factor authentication, may be required.

       *Transaction processing: Once authorized, the payment instructions are transmitted to the payment service provider, which verifies the details and transfers the funds between accounts.

       *Confirmation: The user receives confirmation via voice feedback or on-screen notification.

 

Although voice payments offer great convenience and innovation in the digital payment space, they also come with several significant challenges and concerns that must be addressed for widespread adoption and trust. This includes:

       *Security risks. The risk of unauthorized transactions grows, as voice commands can be accidentally or maliciously triggered on voice-enabled devices.

       *Privacy. Voice payment systems collect sensitive data, including voice recordings and biometric profiles. Thus, protecting user privacy through secure storage, encryption, and adherence to data protection regulations is critical.

       *Accuracy. Voice recognition still faces challenges regarding accuracy, especially in noisy environments or with diverse linguistic accents and speech patterns.

       *Integration and standardization. The lack of universal standards makes it difficult to integrate voice payments across different devices and platforms. 

 

Future outlook

The future of voice payments is promising, driven by the rapid growth and transformative innovations that are expected to reshape the way consumers and businesses make financial transactions.  The voice payments market is expected to grow significantly, driven by key trends, including advanced biometric authentication, AI-powered personalization, and the integration of blockchain technology.

With the rising popularity of voice assistants and smart devices, along with consumers’ increasing comfort with voice commands, voice payments are expected to become an integral part of daily financial activities. This shift reflects a broader trend toward more natural, seamless, and user-friendly interactions in digital commerce. 

As voice payment technology matures, it will offer unprecedented convenience, enabling users to conduct transactions with simple spoken commands anytime and anywhere. Businesses and financial institutions are poised to leverage these technologies to streamline payment processes, reduce friction, and engage consumers more effectively.

Finally, voice payments are set to become a mainstream, trusted method of payment, fundamentally changing the way society conducts financial exchanges in the upcoming years.

AI-First Startups: The New Blueprint for Innovation

Kholoud Hussein 

 

In the evolving landscape of global entrepreneurship, a new breed of companies is taking center stage: AI-first startups. Unlike traditional businesses that adopt artificial intelligence as an enhancement or add-on, AI-first startups are built on the premise that artificial intelligence is not just a tool but the very foundation of their business models. These startups are not simply using AI to optimize; they are reimagining entire industries by placing algorithms, data, and machine learning at the core of their value proposition.

 

What Makes a Startup “AI-First”?

The distinction between AI-enabled and AI-first is subtle yet transformative. An AI-enabled company might apply machine learning to streamline existing processes, such as automating customer service or improving logistics. An AI-first company, however, is designed with AI as its primary engine of value creation. Its products and services would not exist without AI capabilities—whether it’s predictive healthcare platforms that detect diseases before symptoms emerge, or financial tools that automate lending decisions in real time.

 

This orientation requires more than just technology adoption; it demands a mindset shift. Founders of AI-first startups begin by asking, “What problem can AI solve that humans alone cannot?” From there, the business model, operational structure, and customer interactions are built around the unique strengths of artificial intelligence.

 

The Competitive Edge of AI-First Models

Placing AI at the center offers several advantages. First, AI-first startups benefit from exponential scalability. Algorithms learn, improve, and adapt at a speed no human team can match, making it possible to handle vast data volumes and complex decisions with minimal incremental costs.

 

Second, these companies often create high barriers to entry. Proprietary data sets, refined models, and constant feedback loops mean that competitors without the same AI infrastructure face difficulty catching up. Consider the healthcare AI startup that trains on millions of patient records; its predictive accuracy becomes more robust over time, creating defensible value.

 

Third, AI-first startups are positioned to unlock entirely new markets. In sectors like education, AI tutors can scale personalized learning experiences to millions of students simultaneously. In agriculture, machine-learning models enable precision farming that boosts yields while conserving resources. In finance, algorithm-driven startups are redefining credit scoring, wealth management, and fraud detection.

 

Challenges on the AI-First Journey

Yet the AI-first path is far from frictionless. Building such companies demands heavy upfront investment in data infrastructure, talent, and computational resources. Unlike conventional startups that can bootstrap with minimal technology, AI-first ventures often require specialized machine learning engineers and access to high-quality datasets—both of which are scarce and costly.

 

Moreover, questions around trust and transparency loom large. Customers, regulators, and investors increasingly demand explainable AI. Startups that fail to demonstrate ethical standards risk reputational damage and regulatory pushback. Data privacy and security are also paramount, as breaches or misuse can dismantle consumer confidence overnight.

 

Another challenge lies in the talent war. Skilled AI professionals are among the most sought-after globally, and early-stage companies must compete with tech giants that can offer far greater compensation. Startups that succeed often do so by creating mission-driven cultures that attract talent motivated by the impact they can make, rather than salary alone.

 

Why Investors Are Paying Attention

Despite challenges, investors are flocking to AI-first startups. The global surge of funding into generative AI is a testament to the belief that these companies will shape the next decade of innovation. For venture capitalists, the appeal lies in the asymmetry of outcomes: the potential to back companies that can dominate entirely new categories.

 

A McKinsey report estimates that AI could contribute up to $4.4 trillion annually to the global economy. Startups that position themselves at the frontier of this transformation stand not only to capture market share but also to dictate the rules of new industries.

 

The Future Belongs to the AI-First

As industries across the world digitize, the difference between surviving and thriving may come down to how deeply companies embed artificial intelligence into their DNA. AI-first startups are not waiting for incumbents to lead the way; they are rewriting the script entirely.

 

For founders, this represents both an opportunity and a responsibility: to leverage AI in ways that solve real-world problems, create equitable growth, and maintain trust. For investors and policymakers, the rise of AI-first startups signals a paradigm shift—one where the most valuable companies of the future may not just use AI but will exist because of it.

 

Salasa.. A Saudi fulfillment platform revolutionizing e-commerce and logistics in GCC

Noha Gad

 

In the heart of the Middle East, Saudi Arabia is positioning itself as a global logistics hub, supported by strong government backing, extensive infrastructure development, and ongoing reforms in laws and regulations. The National Industrial Development and Logistics Program (NIDLP) aims to enhance the performance of logistics hubs and improve local, regional, and international connectivity across trade and transport networks, leveraging the Kingdom’s strategic location as the crossroad of three continents.

Tech-powered platforms like Salasa are revolutionizing traditional logistics by integrating advanced digital tools with deep market expertise, redefining speed, transparency, and operational efficiency.

As one of the leading e-commerce fulfillment platforms in Saudi Arabia, Salasa connects businesses to a sophisticated fulfillment network, turning complex logistics into seamless customer experiences.

 

To explore this transformation, Sharikat Mubasher interviewed Salasa’s founders, Hasan Alhazmi and Abdulmajeed Alyemni, to learn more about the platform’s business model, innovative offerings, and its role in transforming the logistics industry in Saudi Arabia.

Alhazmi, who also serves as Salasa’s CBO, shared insights into the platform’s evolution from a 3PL delivery provider to the logistics partner of choice for over 1,000 merchants, having fulfilled and shipped more than 50 million products domestically and internationally since inception.

 

First, what motivated you to establish Salasa? And what are the key logistics challenges that the platform addresses? 

Salasa began as a simple 3PL company delivering e-commerce orders by car and motorcycle. When one of our clients faced challenges with picking and packing, we stepped in to handle it. That light bulb moment revealed a clear opportunity: fulfillment could be offered as a dedicated service. My partner and I left our jobs at the time to build that model from the ground up.

From those first few shipments, we have grown into a network that has fulfilled over 50 million products, built on the belief that merchants should be able to scale without being weighed down by operational complexity. Today, our high-speed dark stores and mega fulfillment centers solve the exact pain points we saw in those early days: slow delivery times, fragmented courier options, and the cost burden of running in-house logistics. We combine that infrastructure with smart technology to give merchants what they need most: speed, reliability, and the ability to grow without limits.

 

How did Salasa enhance its products and services to transform the e-commerce logistics industry in Saudi Arabia? 

We are focused on building an infrastructure and technology ecosystem that work seamlessly together. 

On the physical side, we expanded to 15 dark stores and three mega fulfillment centers, ensuring we can reach the majority of customers in Saudi Arabia within hours, not days. 

On the technology side, we are rolling out solutions that automate courier selection, further optimize delivery routes, detect upcoming merchant campaigns, and predict inventory needs based on demand trends.

These tools will give merchants more control and visibility. No more guesswork. Merchants can track their orders in real time, anticipate stock needs, and respond to demand spikes with confidence. Over time, this combination of speed, transparency, and flexibility will raise the bar for what merchants expect from a logistics partner in the region.

 

How does Salasa uphold exceptional customer experience and operational excellence as it scales? 

Operational excellence at Salasa is embedded in every process we design. Our systems are built to minimize errors, cut delivery times, and ensure clear communication at every stage, with tools like voice AI proactively confirming pickups and deliveries for seamless coordination. 

As we scale, we avoid the common drop in service quality by investing heavily in technology and monitoring, staying close to the market, and listening to our customers. By identifying gaps, addressing bottlenecks, and acting quickly on feedback, we maintain the reliability merchants depend on and the on-time delivery customers expect, every single time.

 

For his part, Co-founder and CEO Alyemni shared more about the company’s growth strategy and his thoughts about the future of the logistics and e-commerce landscape in Saudi Arabia and the wider region. 

 

You successfully raised a $30 million Series B round. What motivated investors to invest in Salasa? And how will this fresh capital support your expansion plans?

Investors were drawn to Salasa because we have proven the model at scale. Salasa is not a gamble; it is a winning bet. We have built one of the fastest fulfillment networks in the region, backed by a proprietary tech stack that is actively redefining how e-commerce logistics operates. We have shown consistent growth, high merchant retention, and an ability to expand without compromising service quality.

 

This new capital allows us to move faster on three fronts:

*Infrastructure – expanding our network to handle higher volumes and cover more geographies.

*Technology – accelerating the development of our tech stack, from smart courier routing to predictive inventory positioning and automated merchant workflows.

*Talent – bringing in specialized expertise to strengthen our capabilities in operations, technology, and market expansion.

 

The goal is simple: to scale without losing the precision and quality that define Salasa today.

 

What are the new markets or segments that Salasa targets as part of its growth strategy? 

We are pursuing growth in three main ways: 

 

First, by deepening our presence in Saudi Arabia, reaching merchants in every major city, and scaling infrastructure to handle growing order volumes.

 

Second, by expanding into select GCC markets where there is clear demand for tech-enabled fulfillment.

 

Third, by enabling cross-border trade (inbound and outbound), which allows local sellers to seamlessly reach customers in new international markets, while also enabling global brands to enter Saudi Arabia with faster, more cost-effective delivery.

 

Beyond geography, we are also broadening our service offering, monetizing our proprietary Order Management System (OMS), and introducing adjacent solutions like omni-channel inventory management, AI-powered product content optimization, and campaign recommendations. These expansions position Salasa to serve merchants end-to-end, whether their customers are across the city or across borders.

 

How do you see the logistics and e-commerce fulfillment landscape in Saudi Arabia and the broader GCC region? 

Logistics in the region is moving away from fragmented, courier-led models to integrated fulfillment. Strong economic growth and major infrastructure investments are accelerating that shift. With E-commerce trade surging, Saudi Arabia alone sees over 250 million shipments a year, and higher incomes and connectivity will push that number higher.

Merchants are also changing how they operate, focusing on building their brands and products, while leaving logistics to specialized, tech-driven partners like Salasa. This shift is raising the bar for speed, reliability, and visibility, turning logistics from a challenge into a competitive advantage.

 

In your opinion, what are the key trends and innovations that shape the Saudi logistics sector? And how can cloud-powered and data-driven technology transform this promising sector? 

There are three major trends shaping the sector right now. First is the rise of instant delivery. Same-day and even two-hour windows are becoming more common in urban centers. Second is the growth of cross-border e-commerce, which brings both opportunities and operational complexity. Third is the deeper integration of AI and automation into every logistics function.

Cloud-powered and data-driven systems are the enablers here. They let us unify operations that were once fragmented, including warehousing, courier management, and inventory positioning, and run them as a single, intelligent network. When you layer in AI, you can anticipate demand, route orders in the most cost- and time-efficient way, and even optimize how merchants present their products online. This is how logistics moves from being a cost center to being a driver of growth.