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

Sep 15, 2025

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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Red Hat: Saudi Arabia Emerging as a Key Market for AI Innovation

Ghada Ismail

 

As artificial intelligence becomes a core layer of enterprise technology, attention is increasingly shifting to the infrastructure that powers it. Much of today’s AI innovation depends not just on algorithms, but on flexible platforms that can run applications seamlessly across data centers, cloud environments, and the edge. This is where companies like Red Hat play a pivotal role in building open-source, hybrid cloud technologies that provide a consistent foundation for modern IT.

With a portfolio that spans cloud platforms, automation tools, and application development solutions, Red Hat has positioned itself as a key enabler of enterprise transformation, helping organizations scale complex digital operations while maintaining flexibility and avoiding vendor lock-in.

In this interview, Mohamed Youssef, Head of Marketing for Central and Eastern Europe, the Middle East, and Africa at Red Hat, discusses how open-source innovation is accelerating AI adoption, the company’s growing focus on Saudi Arabia, and the sectors driving the Kingdom’s next wave of digital transformation.

 

To start, how is artificial intelligence transforming your company’s products and the solutions you deliver to customers?
Red Hat is a leading open-source software organization, and we provide multiple solutions that support infrastructure software for our customers.

When it comes to AI, the focus is on helping customers transform their core operations and become more efficient. One of the key solutions we provide is Red Hat OpenShift, which allows organizations to operate across multiple clouds with AI-enabled capabilities.

Through OpenShift, customers can build applications and AI solutions on top of our platform in a way that allows them to scale and operate much more efficiently. For example, they can manage workloads across multiple cloud environments, reduce errors, and create more flexible development environments before going live. In short, we help them operate faster and more efficiently.

 

What recent developments in AI are you most excited about?
We are working on several things, but one of the most important areas is helping customers build applications that are more stable and capable of scaling up depending on their needs.

With AI, organizations can scale their applications much faster and reach the market more quickly. This also helps them save resources and optimize costs. Ultimately, AI enables companies to accelerate development cycles while becoming more efficient in how they operate.

 

Many organizations today are investing in chatbots and conversational AI. How does Red Hat approach this space?
We do not compete directly in the chatbot space. What we provide instead is the foundation—the software infrastructure that chatbot solutions can run on.

In other words, developers and companies can build chatbot solutions on top of our platforms. We provide the underlying infrastructure that enables those applications to function effectively.

 

Saudi Arabia has become a key technology hub in the region. How important is the Saudi market for Red Hat?
Saudi Arabia is a strategic market for us. We have been operating in the Kingdom for many years, and we continue to increase our investments and resources there and across the wider region.

We work with most of the distributors and partners in Saudi Arabia and already have partnership agreements in place with them. It is definitely a core market for us, and we are investing heavily there. In fact, we moved to a larger office in the financial district in Riyadh two years ago in order to support our growing operations there.

 

In your view, which sectors in Saudi Arabia are currently the most prepared to benefit from AI transformation?
If we look at the Kingdom’s broader national agenda—particularly Saudi Vision 2030—it is clear that Saudi Arabia is accelerating investments in artificial intelligence across a wide range of sectors.

Rather than being concentrated in a single industry, AI adoption is happening at scale across the economy. The public sector and government entities are leading this shift, with significant investments in AI-driven initiatives, including projects linked to the Public Investment Fund’s HUMAIN.

The banking sector is also highly active, with financial institutions advancing AI-powered solutions through strategic partnerships with us. In the energy sector, Saudi Aramco is not only driving large-scale AI deployments but also stands as one of our key clients in the Saudi market.

We are also seeing strong momentum in aviation, particularly with Riyadh Air, which is among our clients, alongside growing adoption across entertainment, sports, and telecommunications. In telecom, stc is another example of a key client we work with to scale AI capabilities.

Overall, AI investment in Saudi Arabia is broad-based, with multiple sectors advancing in parallel—and notably, many of the leading players across these industries are part of our client ecosystem in the Kingdom.

 

Looking ahead, how do you expect AI to reshape the broader business landscape in Saudi Arabia?

AI is already transforming the way we work today, and the pace of development is extremely fast globally.

We are seeing this momentum in Saudi Arabia and across other markets in the Middle East. In Saudi Arabia specifically, there is a strong ambition to be ahead of the curve by building companies that are Saudi-developed and Saudi-originated.

There is significant investment supporting this effort. As a result, we will likely see rapid changes in the working environment and major improvements in efficiency as AI continues to transform how organizations operate and deliver services.

Where Is Venture Capital Heading in Saudi Arabia? Mapping the Kingdom’s Next Investment Wave

Kholoud Hussein 

 

Saudi Arabia’s venture capital landscape has undergone a profound transformation over the past five years. Once considered an emerging ecosystem, the Kingdom is now one of the most active startup investment markets in the Middle East and North Africa. Backed by structural reforms, sovereign capital, and an expanding pool of entrepreneurs, venture capital in Saudi Arabia is no longer defined by experimentation—it is increasingly shaped by strategic direction.

As the country advances its economic diversification agenda under Saudi Vision 2030, the question facing investors is not whether capital will continue to flow, but where it will be deployed next. The answer lies at the intersection of national priorities, technological transformation, and market demand.

 

A Market Moving from Volume to Strategy

Saudi Arabia recorded over $1.3 billion in venture capital funding in 2023, maintaining its position as the largest VC market in the MENA region. While deal volume remains strong, a noticeable shift is underway. Investors are becoming more selective, moving away from broad-based funding toward sector-focused, thesis-driven investments.

This transition reflects a maturing ecosystem. Early-stage enthusiasm—once concentrated in e-commerce and general fintech—is now giving way to more specialized sectors aligned with national transformation goals. Government-backed entities such as Public Investment Fund and initiatives like Fintech Saudi have played a central role in shaping this direction.

According to a senior official at the Ministry of Investment, “The next phase of venture capital in Saudi Arabia is not about increasing the number of startups—it is about building companies that can scale globally while solving real economic challenges.”

 

Artificial Intelligence: The Center of Gravity

Artificial intelligence is rapidly becoming the focal point of venture capital allocation in Saudi Arabia. The Kingdom’s ambition to become a global AI hub is reflected in both policy and funding priorities.

Estimates from Saudi Data and Artificial Intelligence Authority suggest AI could contribute $135 billion to the national economy by 2030, making it one of the most economically significant sectors in the country’s future.

Investment Momentum & Startup Activity

Saudi-based startups such as Mozn have already demonstrated the commercial viability of AI-driven solutions, particularly in fintech and risk analytics. Similarly, Quant Data & Analytics has expanded its footprint by providing advanced data solutions to both public and private sectors.

Over the next five years, venture capital is expected to increasingly target:

  • Enterprise AI solutions
  • Government technology (GovTech) platforms
  • Arabic-language AI models
  • Predictive analytics for industrial sectors

A senior executive at SDAIA noted: “Artificial intelligence will underpin every major sector in the Kingdom—from healthcare to logistics—creating a multi-layered investment opportunity.”

 

Fintech: From Expansion to Specialization

Fintech has been one of the most heavily funded sectors in Saudi Arabia, with the number of fintech companies exceeding 230 firms by 2024, compared to fewer than 50 just a few years earlier.

However, the sector is entering a new phase. Instead of horizontal growth, where multiple startups compete in payments and wallets, investors are now focusing on vertical specialization.

Next-Phase Investment Areas

  • Wealth management platforms
  • SME financing solutions
  • Embedded finance
  • Regulatory technology (RegTech)

Startups like Tamara and Tabby have already scaled regionally, demonstrating that Saudi-born fintech companies can achieve cross-border growth.

Officials at the Saudi Central Bank have emphasized that “the Kingdom is entering a phase where fintech innovation must go beyond payments and contribute to financial inclusion and economic productivity.”

 

Climate Tech and Energy Transition: A Rising Investment Theme

Saudi Arabia’s commitment to achieving net-zero emissions by 2060 is reshaping investment priorities. The energy transition is not only a policy objective but also a growing venture capital theme.

The Kingdom plans to invest tens of billions of dollars in renewable energy, including large-scale solar and wind projects, as well as green hydrogen production.

Opportunities for Startups

  • Energy efficiency technologies
  • Carbon tracking and ESG platforms
  • Smart grid solutions
  • Battery storage innovation

Projects under NEOM are expected to serve as testing grounds for many of these technologies, creating demand for startups that can provide scalable, tech-driven solutions.

An official from the Ministry of Energy stated: “The private sector, particularly startups, will play a crucial role in developing the technologies needed for the energy transition.”

 

Logistics and Mobility: Building a Regional Hub

Saudi Arabia’s ambition to become a global logistics hub is driving investment into mobility and supply chain technologies. The National Transport and Logistics Strategy aims to position the Kingdom as a central node connecting Asia, Europe, and Africa.

Investment Focus Areas

  • Last-mile delivery optimization
  • Autonomous mobility
  • Fleet management platforms
  • Smart warehousing systems

Startups such as Jeeny highlight the potential of mobility platforms to scale within the region, while new entrants are focusing on logistics efficiency and automation.

Over the next five years, venture capital is expected to increasingly back startups that can integrate AI into logistics operations, improving efficiency and reducing costs.

 

Digital Health: Scaling With Government Backing

Healthcare is another sector attracting increasing venture capital attention. With healthcare spending exceeding 189 billion SAR, digital health solutions are becoming a national priority.

Emerging Investment Areas

  • Telemedicine platforms
  • AI diagnostics
  • Health data management systems
  • Personalized medicine

The Ministry of Health has emphasized that “digital transformation in healthcare is essential to improving access, efficiency, and outcomes.”

The opportunity lies not just in building standalone applications, but in integrating digital health solutions into the broader healthcare infrastructure.

 

Tourism and Experience Economy: Technology Meets Culture

Saudi Arabia’s tourism sector is expanding rapidly, with the Kingdom surpassing 100 million visitors in 2023. As tourism becomes a key pillar of the economy, venture capital is increasingly directed toward startups that enhance the visitor experience.

Key Areas of Investment

  • Travel-tech platforms
  • Experience marketplaces
  • AR/VR tourism solutions
  • Event technology

Developments led by Red Sea Global and Qiddiya Investment Company are creating new demand for innovative digital solutions.

 

The Role of Sovereign and Institutional Capital

A defining feature of Saudi Arabia’s venture capital ecosystem is the role of sovereign and institutional investors. The Public Investment Fund continues to act as a catalyst, both directly and through its subsidiaries and partnerships.

In addition, government-backed funds such as Jada Fund of Funds have helped deepen the VC ecosystem by supporting local fund managers.

This institutional backing provides stability and long-term vision, allowing venture capital to align with national development goals rather than short-term market cycles.

 

Five-Year Outlook: Where Capital Will Flow Next

Looking ahead to the next five years, several trends are likely to define venture capital allocation in Saudi Arabia:

1. Sector Concentration

Capital will increasingly concentrate in fewer, high-impact sectors such as AI, climate tech, and digital health.

2. Larger Ticket Sizes

As startups mature, average deal sizes will increase, particularly in Series B and beyond.

3. Regional Expansion

Saudi startups will expand more aggressively into GCC and international markets, supported by stronger balance sheets.

4. Exit Maturity

The ecosystem will see more acquisitions and IPOs, signaling a maturing investment cycle.

5. Rise of Deep Tech

Investment will shift toward technically complex startups with defensible intellectual property.

 

Finally, Saudi Arabia’s venture capital ecosystem is no longer defined by early-stage experimentation. It is entering a phase of strategic deployment, where capital is directed toward sectors that align with long-term economic transformation.

For investors, the opportunity lies in identifying startups that operate at the intersection of technology and national priorities. For founders, success will depend on building solutions that address real market needs while maintaining the scalability required to compete globally.

As one senior policymaker put it: “The future of venture capital in Saudi Arabia is not just about funding innovation—it is about shaping the industries that will define the Kingdom’s economic future.”

In that sense, the next wave of venture capital in Saudi Arabia will not simply follow trends—it will help create them.

 

Can Saudi creators take center stage in Vision 2030's digital revolution?

Noha Gad

 

The emergence of social media has transformed global connectivity and information sharing, subsequently driving a major shift in consumer behavior and marketing tactics. In this new landscape, audiences value authenticity above all else when deciding what to buy. This has created fertile ground for influencer marketing, which enables brands to bypass traditional advertising and build trust by collaborating with content creators who have already established loyal, engaged followers.

In Saudi Arabia, the number of people having social media accounts reached 35.33 million as of 2024. A report released by the social media management platform Sprinklr Social indicated that platforms such as X, TikTok, and Snapchat dominate daily life in the Kingdom, with 94.03% of internet users actively engaging with them, which has shaped opinions, trends, and purchasing decisions.

With nearly 95.3% of Saudi Arabia’s population using at least one social media platform, the marketing and advertising market size in the Kingdom reached $3.02 billion in 2025 and is estimated to grow from $3.19 billion in 2026 to reach $4.13 billion by 2031, at a compound annual growth rate (CAGR) of 5.3% between 2026 and 2031, according to recent figures released by Modor Intelligence.

 

The rise of influencer marketing in Saudi Arabia

In a rapidly changing world, consumer behavior and marketing strategies have evolved as consumers increasingly prioritize authenticity in purchase decisions. This growing demand for authentic and relatable content has facilitated influencer marketing. Around 70% of consumers in Saudi Arabia place more trust in influencers’ recommendations than in traditional advertising. According to Statista, ad spending in Saudi Arabia's influencer advertising market is projected to reach $95.69 million by 2025, with a CAGR of 9.82%, resulting in a market volume of $139.20 million by 2029. These figures underscore the growth of influencer marketing in Saudi Arabia, as brands implement influencers as the primary marketing channel to promote their products and services.

Short-form video content is also increasingly popular on social media platforms in the Kingdom, engaging audiences with concise storytelling, building emotional connections, and enhancing brand recall. Ad spending on short-form videos is anticipated to reach $127.2 million by 2028. 

 

Regulating influencers economy

Saudi Arabia has implemented a comprehensive, multi-faceted strategy to regulate its influencer economy, moving to formalize the sector, enforce cultural standards, and protect consumer rights. These efforts are led primarily by the General Authority of Media Regulation and are designed to bring transparency and accountability to digital content creation.

In 2022, the authority introduced the Mawthooq license to regulate the status of individuals who provide advertising content on social media platforms. This initiative mandates influencers and creators to register for a license to provide advertisements on social media platforms.

To obtain the Mawthooq license, influencers must comply with the terms and controls set by the General Authority of Media Regulation. This includes adherence to content-related controls, advertisements, classifications (including age ratings), and instructions issued by the authority. These controls apply to citizens, residents, and foreign investors who advertise through social media platforms about a brand, product, service, event, or commercial activity offered or located within the Kingdom. 

Beyond formal licensing, the Kingdom introduced detailed content guidelines that determine what influencers can and cannot post, aiming to align online content with the Kingdom's cultural and religious values. These rules include adhering to modest closing guidelines, protecting privacy and dignity, and ensuring social harmony.

Additionally, the Personal Data Protection Law (PDPL) governs how personal data is collected, processed, and stored. This means that influencers and businesses must obtain explicit consent from individuals before collecting their data through methods like cookies or direct marketing activities. They are also obligated to inform users about the purpose of data collection and their rights regarding it.

 

The rise of specialized infrastructure players

While social media platforms provide the stage, specialized companies like KLIQ are building the critical back-end infrastructure. KLIQ is Saudi Arabia’s go-to platform connecting brands with the right content creators smartly and seamlessly. This AI-powered platform tackles all common industry frustrations, providing creators with guaranteed payments, clear timelines, and vetted brand opportunities that match their niche. It also solves the problems of delayed payments and difficulty finding quality collaborations. For brands, it offers an intelligent dashboard for data-driven creator discovery and real-time campaign tracking.

Beyond the companies directly involved in campaigns, major international and local advertising agencies are increasingly relying on influencer marketing as a core strategy for their clients. This integration into mainstream marketing budgets provides a steady stream of professional opportunities for creators and validates influencer marketing as a serious and effective channel.

The competitive landscape of the influencers' economy in Saudi Arabia is expected to continue booming, driven by two key trends: AI integration and localized content demand. Companies are betting big on AI to improve creator-brand matching and measure campaign performance, transforming the industry from guesswork to data-driven decisions. AI tools like generative video editors and personalized analytics will dominate, enabling creators to produce hyper-localized Arabic content at scale. Additionally, the growing appetite for localized content reflects a clear preference among audiences for material that resonates with their own experiences, culture, and language, moving away from a one-size-fits-all, globally-focused model.

In summary, Saudi Arabia's creator economy has rapidly evolved from a niche trend into a powerhouse of digital innovation and commerce, aligning perfectly with Vision 2030's ambitious goals. With 35.33 million users in 2024, representing 94% of internet users actively engaging on social media platforms, influencers have become the trusted voice for the majority of consumers, excelling traditional advertising.

Robust regulations coupled with the Personal Data Protection Law (PDPL) have provided the guardrails needed for sustainable expansion. By mandating licensing for commercial promotions, enforcing cultural and modesty standards, and ensuring data privacy through explicit consent, these measures transform influencers from casual posters into professional micro-entrepreneurs, fostering accountability and consumer trust.

Looking ahead, AI-driven tools and the growing demand for culturally attuned content position this ecosystem for explosive growth, reaching $139 million by 2029. Investors, startups, and brands should seize this opportunity to collaborate in a regulated, data-smart landscape where authenticity fuels commerce and innovation thrives.

Hot Money in Startups: Opportunities and Risks Explained

Ghada Ismail

 

In the world of finance and startups, you may sometimes hear the term “Hot Money.” It sounds dramatic, but the idea is actually simple. Hot money refers to capital that moves quickly from one investment to another in search of fast profits.

Unlike long-term investments that support companies for years, hot money is usually short-term. Investors move it rapidly when they see an opportunity to make quick returns.

Understanding this concept is useful for founders, investors, and anyone following the startup ecosystem because these fast-moving funds can influence markets, valuations, and investment trends.

 

The Simple Meaning of Hot Money

Hot money is investment capital that quickly enters and exits markets.

Investors move this money to wherever they believe they can earn higher returns in the short term. When a better opportunity appears somewhere else, the money moves again.

In simple terms, hot money behaves like capital that is always “looking for the next opportunity.”

 

Where You Might See Hot Money

Hot money appears in several areas of finance and business, including:

  • Stock markets, where investors quickly buy and sell shares.
  • Cryptocurrency markets, where capital often moves rapidly between tokens.
  • Startup funding waves, when investors rush into trending sectors like AI or fintech.
  • Venture capital cycles, where investors temporarily focus on specific industries.

For example, when artificial intelligence startups began attracting major attention globally, large amounts of capital quickly flowed into AI startups. Many investors wanted to enter early and benefit from the growth of the sector.

 

Why Investors Use Hot Money

Investors use hot money mainly to capture short-term gains.

Common reasons include:

  • Taking advantage of rapidly growing industries
  • Investing early in trending technologies
  • Benefiting from quick increases in company valuations
  • Moving capital between different markets to maximize returns

In the startup world, this sometimes leads to investment hype cycles, where certain sectors receive large amounts of funding in a short period.

 

How Hot Money Affects Startups

Hot money can influence the startup ecosystem in several ways.

Positive effects

  • Startups in popular sectors may receive funding faster.
  • New technologies may attract large investment attention.
  • Entrepreneurs may find it easier to raise capital during hype cycles.

Challenges

  • Startup valuations may rise too quickly.
  • Some investors may focus on quick exits instead of long-term growth.
  • Funding trends may shift suddenly when investors move to a different sector.

For example, many fintech startups experienced strong investment waves over the past decade. Later, some investors shifted their attention toward AI and climate tech.

 

Hot Money vs Long-Term Investment

Not all investments behave like hot money.

Many venture capital firms invest with a long-term mindset, supporting startups through multiple stages of growth.

The key differences are simple:

  • Hot money: short-term, fast-moving capital looking for quick returns.
  • Long-term investment: patient capital focused on building companies over time.

For founders, long-term investors are often more valuable because they provide strategic support, mentorship, and stability.

 

Why the Concept Matters for Founders

For startup founders, understanding hot money helps explain why funding trends change quickly.

Some years, investors may be excited about fintech. In other years, they may focus on AI, Web3, climate tech, or deep tech.

These shifts are not always about fundamentals. Sometimes they simply reflect where fast-moving capital is flowing at that moment.

Founders who understand this dynamic are better prepared to navigate fundraising cycles and investor expectations.

 

Wrapping Things Up…

Hot money is simply fast-moving investment capital looking for quick opportunities. It plays a visible role in financial markets and increasingly in startup ecosystems as well.

While it can bring attention and funding to emerging industries, sustainable startups are usually built with long-term capital, strong business models, and patient investors.

For entrepreneurs, the key lesson is clear: trends may attract hot money, but lasting companies are built with strategy, resilience, and long-term vision. 

What Mezzanine Financing Really Means for Growing Startups

Kholoud Hussein 

 

Startups often outpace their financial capacity. Product traction accelerates, customer acquisition rises, and new markets open faster than revenue arrives. At that point, founders face a familiar dilemma: raise more equity and dilute ownership, or borrow and take on repayment pressure. Between these two paths lies a middle option that is less discussed but increasingly relevant in maturing startup ecosystems: mezzanine financing.

Mezzanine financing is a hybrid form of capital that blends features of debt and equity. It is structured as a loan, but one that can convert into equity if the borrower fails to meet certain repayment terms. It sits “in the middle” of the capital stack — senior to equity but subordinate to traditional bank loans, hence the name “mezzanine.”

For banks, mezzanine loans are too risky. For venture capitalists, they are a way to invest without immediately giving up equity. And for founders, they offer growth capital at a stage where cash needs rise sharply but equity dilution feels increasingly costly.

What Exactly Is Mezzanine Financing?

In practical terms, mezzanine financing starts as debt with a higher interest rate than a bank loan. The higher rate reflects the higher risk. But unlike traditional debt, mezzanine lenders often receive “equity kickers” such as warrants or the right to convert part of the loan into shares later. This hybrid structure gives investors the upside potential of equity with the repayment priority of debt.

The main components of mezzanine financing include:

  • A loan with flexible terms
  • Interest payments, sometimes deferred
  • Equity-linked features
  • Subordination to senior debt

This structure is designed to help growing companies bridge the gap between early venture rounds and full-scale profitability.

Why Startups Consider Mezzanine Capital

Startups typically encounter mezzanine financing when they reach the scale-up stage. At this point, the business has traction, predictable revenue, and a clear path to expansion — but needs significant capital to accelerate growth.

Choosing mezzanine financing can make sense for several reasons.

First, avoiding equity dilution.
By raising mezzanine capital instead of equity, founders keep a larger share of the company. This matters especially when valuations are not rising as quickly as expected, or when the founders want to postpone a large dilution event until performance strengthens.

Second, accelerating expansion.
Mezzanine financing is often used to fund acquisitions, new market entries, major hiring rounds, or infrastructure investment — areas where speed matters. The flexibility of mezzanine capital lets startups pursue these opportunities without waiting for the next traditional funding round.

Third, bridging to profitability.
For startups close to break-even, mezzanine capital provides the boost needed to reach sustainable cash flow. It acts as a financial bridge between growth and self-sufficiency.

The Risks Behind the Flexibility

Mezzanine financing is not without trade-offs. Its biggest drawback is cost. Interest rates are significantly higher than bank loans, and equity warrants mean founders may still give up shares in the future. This makes mezzanine capital more expensive than both traditional debt and early-stage equity.

Another risk is pressure. While interest payments can sometimes be deferred, the debt still sits on the balance sheet. If growth slows or revenue falls below projections, repayment becomes challenging. In extreme cases, lenders can convert debt into equity, diluting founders under less favorable conditions.

Because of this, mezzanine financing is suitable only for companies with predictable revenue streams — not for early-stage startups still validating their business model.

Why Mezzanine Capital Is Becoming More Common

As startup ecosystems mature, especially in markets like the GCC, founders increasingly look for financing beyond traditional venture capital. Investors, meanwhile, seek structures that reduce risk while retaining upside. Mezzanine financing meets both needs.

In more established markets such as the United States and Europe, mezzanine funds have been common for decades, especially among later-stage startups and growth companies. The rise of private credit globally has made mezzanine-style instruments more accessible to tech companies expanding rapidly but not yet ready for public markets.

Where Mezzanine Financing Fits in a Startup’s Lifecycle

In the typical startup journey, mezzanine capital sits between:

  • Series B–C equity rounds, and
  • Large-scale expansion, acquisitions, or pre-IPO growth.

It comes after venture capital has validated the product and business model, but before the company achieves the cash flow stability of a mature enterprise. At this stage, the valuation may not yet justify a major equity round, but the business requires real capital to scale.

Founders often pursue mezzanine financing when:

  • Growth is strong
  • Revenue is predictable
  • The company wants to maintain ownership control
  • Traditional loans are unavailable
  • Equity rounds would cause heavy dilution

A Tool for Mature Startups, Not Young Ones

Mezzanine financing is not for seed-stage founders. It is a tool for companies that have grown beyond early volatility and are entering a phase where capital efficiency matters. The ideal candidate is a startup with stable revenue, healthy gross margins, and a clear expansion strategy.

To conclude, mezzanine financing occupies a unique space in the funding landscape. It gives founders capital to expand without giving up major equity — but at a cost. It gives investors downside protection through debt, and upside potential through equity features. And it becomes especially relevant as startup ecosystems mature and companies seek alternatives to traditional funding structures.

For the right startup, mezzanine financing is a strategic tool that supports aggressive growth while preserving ownership. For the wrong startup, it can become an expensive strain.

As Saudi Arabia, the UAE, and wider GCC markets continue to develop more sophisticated financial instruments, mezzanine financing will likely become more familiar to founders. Understanding how it works — and when to use it — can be a decisive factor for startups aiming to scale in competitive, fast-growing markets.