Ghada Ismail

As artificial intelligence moves from experimentation to enterprise-wide deployment, Egyptian organizations are entering a decisive phase of digital transformation. In this interview, Hossam Seifeldin, Executive Vice President and CEO of Capgemini in Egypt, shares his perspective on how generative and agentic AI are set to reshape operations, competitiveness, and talent development over the next five years.

Drawing on Capgemini’s expanding footprint in Egypt and its role as a global delivery hub, Seifeldin discusses the technologies poised to have the greatest impact, how consulting and technology firms must adapt their business models in an AI-driven economy, and what truly differentiates Capgemini’s approach to digital transformation. He also highlights the company’s growing focus on youth empowerment, skills development, and public-private partnerships as Egypt positions itself as a regional hub for advanced technology and innovation.

Generative and agentic AI are reshaping enterprise operations globally. How do you expect these technologies to transform Egyptian organizations over the next five years?

We are entering a new phase where AI is no longer experimental; it is a practical, scalable driver of real business value. Over the next five years, generative and agentic AI will reshape how Egyptian organizations operate, make decisions, and engage with customers.

Globally, companies moving from pilots to full-scale AI deployments are seeing measurable returns, with average ROI of 1.7x and cost reductions of 26–31% across functions like finance, supply chain, HR, and customer operations. AI is now a strategic business asset delivering efficiency and growth simultaneously.

Sectors such as banking, telecom, healthcare, retail, and especially hospitality and tourism — a cornerstone of Egypt’s economy — will benefit significantly. In tourism, AI can enable personalized visitor journeys, immersive experiences, predictive destination management, and sustainable resource planning. Initiatives like our “Hack the Future of Tourism in Egypt… Make it Real!” engage students to create practical AI solutions, from virtual tour guides to smart travel platforms.

Ultimately, AI will help Egyptian organizations compete globally, unlock new services and revenue streams, and foster a culture of continuous innovation, positioning Egypt as a growing hub for AI-driven transformation.

How is Capgemini evolving its business model to remain competitive amid accelerated AI adoption across industries?

Capgemini is evolving through a multi-dimensional strategy designed to lead in an AI-driven economy. We are investing heavily in advanced AI, cloud, and data capabilities while strengthening partnerships with global technology leaders and local institutions.

In Egypt specifically, we are establishing a dedicated AI Center of Excellence that brings together elite solution architects, data scientists, and engineers to deliver end-to-end AI solutions to global clients. This reinforces Egypt’s role as a global delivery hub for innovation and advanced technology services.

We are equally focused on talent. Since launching operations in Egypt in 2022, our team has grown from 40 to more than 1,000 professionals, with plans to reach 1,700 by the end of 2026. Through continuous reskilling and programs such as our Young Professionals Program, we are ensuring our workforce can design and implement responsible, scalable AI solutions that deliver measurable value for clients worldwide.

What emerging technologies do you see as most transformative for your clients over the coming period of time? How is Capgemini preparing for these shifts?

While generative and agentic AI remain at the forefront, several complementary technologies will be highly transformative for our clients, including advanced analytics, immersive technologies such as AR and VR, edge computing, blockchain, and in the longer term, quantum computing.

Capgemini is preparing by investing in innovation labs, strengthening collaboration with universities and startups, and expanding research and development capabilities. With our proven methodologies and deep industry knowledge, we partner with leaders to turn AI into a competitive advantage and a driver of sustainable growth.

In your view, what differentiates Capgemini’s approach to digital transformation from other major consulting and technology services firms?

What truly differentiates Capgemini’s approach to digital transformation is that we see technology not as an end goal, but as a human-centric enabler of sustainable business and societal impact.

We deliver end-to-end transformation — from strategy and design to implementation and scaling — ensuring measurable outcomes and long-term value for our clients. What makes our Egypt operations particularly distinctive is our role as a global delivery gateway: from here, we provide 24/7 services in multiple languages and support clients across diverse sectors, including telecom, retail, pharmaceutical and hospitality.

By combining global expertise with strong local talent and ecosystem partnerships, Egypt has become a strategic hub for Capgemini, enabling us to deliver high-value digital and AI solutions worldwide while developing future-ready capabilities locally.

How has the increasing adoption of AI by competitors influenced your strategic priorities?

The rapid adoption of AI across industries has reinforced the importance of speed, innovation, and differentiation. It has accelerated our investments in AI capabilities, talent development, and industry-specific solutions that deliver measurable outcomes.

Rather than viewing competition solely as a challenge, we see it as a catalyst for continuous innovation. It pushes us to refine our offerings, deepen our partnerships, and ensure that our clients are not only adopting AI but leveraging it strategically to lead in their sectors.

Our priority remains clear: to deliver practical, scalable AI solutions that create business value while positioning Egypt as a global hub for digital innovation and advanced technology services.

How do you think you can empower youth and young entrepreneurs through your business tech offerings?

Through initiatives like the “Hack the Future of Tourism in Egypt… Make it Real!” hackathon, we are connecting innovation with practical training. Multidisciplinary student teams are developing AI-driven solutions such as virtual tour guides, smart travel platforms, immersive storytelling experiences, and predictive analytics tools that enhance visitor experiences while preserving cultural heritage and sustainability.

The top three teams will join our six-month Young Professionals Program, where they will receive intensive hands-on training, mentorship from global and local experts, and direct exposure to real client projects, with a clear pathway to employment upon completion.

Beyond individual programs, our broader commitment is to build a generation of tech-enabled innovators who can lead Egypt’s digital transformation. By investing in skills, mentorship, and real-world experience, we help young talent move from creative ideas to meaningful careers that support Egypt’s Vision 2030 and its ambition to become a global digital and innovation hub.

This commitment is strengthened through robust public-private partnerships. Most recently, we signed memorandums of understanding with ITIDA and ITI to expand our presence and train 300 young engineers through the ServiceNow program, supporting a national initiative expected to create 70,000 new jobs and further position Egypt as a global hub for technology and outsourcing services.

Through collaborations with government entities, academic institutions, and global technology partners, we are not only creating career pathways for young talent but also strengthening Egypt’s role as a strategic gateway for high-value digital and AI services worldwide.

Ghada Ismail

In finance, few phrases sound as dramatic—and as misunderstood—as “dry powder.” It has nothing to do with explosives or chemistry, yet when markets wobble and funding dries up, it suddenly becomes the most powerful thing in any context.

Dry powder is the cash everyone wishes they had when conditions turn tough. It doesn’t chase hype or panic in downturns. It waits—quietly and strategically—until the right moment arrives.

As startups learn to survive longer, investors favor discipline over speed, and economies navigate uncertainty, dry powder has moved from a niche term to a core strategy. It shapes who can act decisively, who can negotiate from strength, and who is forced to react.

At its simplest, dry powder means cash or highly liquid capital that is ready to be deployed. In reality, it represents control. For investors, startups, and the broader economy, dry powder is what separates those who endure market cycles from those who define what comes next.

Dry Powder from an Investor’s Perspective

For investors—particularly in venture capital, private equity, and institutional funds—dry powder refers to capital that has been raised but not yet invested. Funds typically collect commitments from their investors and deploy that money gradually over several years, rather than all at once.

Holding dry powder gives investors flexibility. In overheated markets, disciplined funds may slow their pace and avoid inflated valuations. When markets cool, that same unspent capital becomes a competitive advantage. Investors can move quickly, negotiate better terms, support existing portfolio companies, or back strong businesses that suddenly look undervalued.

This is why periods of uncertainty often coincide with reports of record levels of dry powder. It is not a sign of indecision, but of patience. Investors with capital ready to deploy often end up shaping the next growth cycle.

What Dry Powder Means for Startups

For startups, dry powder usually means cash reserves in the bank. It is the runway that buys time, reduces pressure, and keeps founders in control of their decisions.

Startups with sufficient dry powder can slow hiring, refine their product, or adjust strategy without being forced into emergency fundraising. They are less likely to accept unfavorable terms or dilute too early. In contrast, startups running low on cash often make rushed decisions driven by survival rather than long-term value.

Dry powder also changes how startups are perceived. A company with healthy reserves signals stability and confidence to investors, customers, and partners. It suggests the business is choosing capital—not desperately chasing it—often resulting in better negotiations and stronger relationships.

Dry Powder and Market Cycles

Dry powder plays a central role in how markets move through cycles. During boom periods, capital flows freely and aggressively, reducing the amount of unspent cash. Valuations rise, competition intensifies, and speed often outweighs discipline.

When markets correct, investment activity slows, and dry powder accumulates. While this phase can feel stagnant, it often sets the stage for the next wave of growth. Once confidence returns, that stored capital is deployed into new companies, technologies, and acquisitions, often more selectively and sustainably than before.

In this way, dry powder acts as both a buffer and a reset button, preventing capital from being exhausted at the peak of hype and ensuring resources remain available when opportunity reappears.

The Economic Impact of Dry Powder

At the macro level, dry powder influences investment, innovation, and job creation. Large pools of deployable capital—held by institutional investors, sovereign funds, and corporations—can stabilize markets during downturns and accelerate recovery during upswings.

For innovation-driven economies, dry powder is especially important. It allows funding to continue flowing into startups, infrastructure, and strategic sectors even when global conditions tighten. Economies with active investors and available capital are better positioned to maintain momentum through volatility.

Common Misconceptions

Dry powder is often mistaken for idle money. In reality, it is intentional restraint. Choosing when not to invest can be just as strategic as choosing when to invest. At the same time, holding too much dry powder for too long can create pressure to deploy capital quickly, sometimes at the wrong moment.

The key is balance: aligning deployable capital with clear strategy, realistic timelines, and market conditions.

Why Dry Powder Matters More Than Ever

In today’s environment of economic uncertainty, higher interest rates, and rapid technological change, dry powder has taken on renewed importance. Investors are more selective, startups are more cautious, and economies are prioritizing sustainable growth over speed at any cost.

Ultimately, dry powder is not about waiting on the sidelines. It is about being ready to invest, to grow, and to lead when opportunity returns.

Kholoud Hussein 

For decades, Saudi Arabia was viewed primarily through the lens of hydrocarbons. Today, it is increasingly positioning itself as a capital provider and policy driver in the global climate finance landscape. The shift is neither rhetorical nor symbolic. It is structural, anchored in fiscal capacity, sovereign strategy, and a deliberate attempt to align energy transition goals with long-term economic diversification.

At the center of this transformation stands the Public Investment Fund (PIF), supported by national policy under Saudi Vision 2030. Together, they are shaping how capital flows into renewable energy, carbon management, sustainable infrastructure, and climate-aligned technologies both domestically and internationally.

The scale of ambition is significant. What is emerging is not simply an environmental strategy, but a financial architecture designed to mobilize and deploy climate-linked capital at scale.

From Energy Producer to Climate Capital Allocator

Saudi Arabia’s climate finance trajectory is closely tied to its economic diversification agenda. Under Vision 2030, the Kingdom aims to generate 50 percent of its electricity from renewable sources by 2030. Achieving that target requires not only infrastructure but structured financing mechanisms capable of attracting domestic and international investors.

PIF, whose assets under management exceed $700 billion according to its most recent annual disclosures, has increasingly embedded sustainability criteria into its investment strategy. In 2022, the fund established a Green Finance Framework aligned with international standards, enabling it to issue green bonds and sukuk dedicated to environmentally sustainable projects.

Since entering the green debt market, PIF has raised billions of dollars earmarked for renewable energy, sustainable water management, clean transportation, and green buildings. These issuances signal to global markets that Saudi Arabia intends to participate in climate finance not merely as a policy beneficiary, but as an issuer and allocator of capital.

Saudi Finance Minister Mohammed Al-Jadaan has repeatedly emphasized that economic diversification and sustainability are intertwined. The transition to a greener economy, he has noted in international forums, represents a structural growth opportunity rather than a constraint.

The Saudi Green Initiative and Capital Deployment

The Saudi Green Initiative provides the policy umbrella for much of the Kingdom’s climate finance activity. Announced in 2021, the initiative includes commitments to reduce carbon emissions, expand renewable energy capacity, and plant billions of trees across the region.

Saudi Arabia has pledged to achieve net-zero emissions by 2060 through a circular carbon economy approach, which integrates carbon reduction, reuse, recycling, and removal. This model allows the Kingdom to invest simultaneously in renewables, carbon capture, and hydrogen technologies.

Recent government disclosures estimate that Saudi Arabia plans to invest more than $180 billion toward sustainable development and climate-related projects by 2030. This includes renewable power generation, grid expansion, energy efficiency upgrades, and emerging technologies such as carbon capture and green hydrogen.

Energy Minister Prince Abdulaziz bin Salman has consistently framed the transition as pragmatic and investment-led, emphasizing that emissions reduction and energy security must advance together.

Hydrogen, Renewables, and the Scale of Investment

One of the most capital-intensive components of Saudi Arabia’s climate finance deployment is green hydrogen. The PIF-backed NEOM Green Hydrogen Company is developing what is projected to become one of the world’s largest green hydrogen production facilities. The project carries an estimated investment value of approximately $8.4 billion and is expected to produce up to 600 tons of carbon-free hydrogen per day upon completion.

Beyond hydrogen, Saudi Arabia has awarded contracts for multiple gigawatts of solar and wind projects under the National Renewable Energy Program. Renewable energy investments alone are projected to exceed $50 billion over the next decade as the Kingdom scales toward its 2030 electricity targets.

Battery storage is also expanding rapidly. As renewable penetration increases, large-scale storage projects are being deployed to stabilize the grid and manage intermittency. These systems require sophisticated financing structures, creating space for blended finance models that combine sovereign backing with private capital participation.

Financial Markets and Green Instruments

Climate finance in Saudi Arabia is not confined to sovereign spending. Domestic banks are increasingly offering sustainability-linked loans and green sukuk to fund clean energy, sustainable real estate, and energy efficiency projects.

The Saudi Exchange has strengthened ESG disclosure requirements, encouraging listed firms to align with global reporting standards. Institutional investors, both domestic and international, are now integrating climate risk assessments into portfolio strategies.

This evolution is critical. Climate finance, to scale effectively, must move beyond public expenditure and become embedded in mainstream financial markets. Saudi Arabia appears intent on building that ecosystem.

The Startup Ecosystem: Innovation Within the Climate Economy

While sovereign funds provide scale, startups provide agility. Saudi Arabia’s expanding climate finance architecture is generating opportunity for early-stage companies operating in emissions tracking, energy optimization, sustainable mobility, and resource efficiency.

CarbonSifr is one example. The company offers carbon accounting platforms that allow businesses to measure and manage their emissions footprint. As regulatory and investor scrutiny increases, demand for credible emissions data is growing.

Similarly, NOMADD focuses on digital energy performance solutions, helping industrial clients optimize energy consumption and reduce waste. These efficiency gains translate directly into emissions reductions and cost savings.

Other startups are working in water management, smart grid analytics, and AI-driven infrastructure optimization. As Saudi Arabia expands renewable capacity and sustainable urban development projects, demand for these technologies is expected to rise.

Venture capital flows into the Kingdom have grown steadily in recent years, and climate tech is emerging as a distinct vertical. The combination of sovereign backing, regulatory clarity, and market scale gives Saudi startups operating in climate-related sectors strong growth potential over the coming decade.

Market Outlook and Investment Projections

Saudi Arabia’s climate finance trajectory is no longer speculative. It is measurable, multi-layered, and accelerating.

Independent market estimates project that the Kingdom’s renewable energy sector alone could exceed $12 billion annually within the next decade, driven by large-scale deployments of solar, wind, and battery storage. When hydrogen, carbon capture, grid modernization, water sustainability, green construction, and energy efficiency upgrades are included, cumulative climate-aligned investments could reasonably surpass $200 billion by the early 2030s.

However, the composition of this investment is what matters most.

1. Utility-Scale Renewables: Scale With Secondary Markets

Saudi Arabia’s target of generating 50 percent of electricity from renewables by 2030 implies adding tens of gigawatts of capacity over the coming years. Utility-scale solar projects remain the backbone of deployment, supported by wind farms in strategically viable regions.

Projected capital allocation in this segment over the next decade is expected to exceed $50–70 billion, including grid integration and storage infrastructure.

While large developers and sovereign-backed entities dominate project execution, this scale creates secondary markets that startups can serve, including:

• Asset performance monitoring
• AI-based solar yield forecasting
• Predictive maintenance platforms
• Drone-based inspection systems
• Grid balancing software

As renewable penetration increases, grid complexity rises. Startups specializing in optimization algorithms, demand forecasting, and distributed energy management systems are well-positioned to scale alongside infrastructure expansion.

2. Hydrogen and Industrial Decarbonization: High Capital, High Complexity

Green hydrogen represents one of the most capital-intensive pillars of Saudi Arabia’s climate strategy. Beyond the estimated $8.4 billion investment in the NEOM hydrogen facility, additional projects are expected across industrial clusters.

Hydrogen production is only the beginning. The broader ecosystem includes:

• Electrolyzer manufacturing
• Storage and transport solutions
• Export logistics
• Industrial conversion systems
• Carbon capture integration

This complexity creates a fertile environment for startups developing niche technologies such as efficiency optimization software for electrolysis, hydrogen-compatible materials, or digital tracking systems for carbon intensity certification.

Industrial decarbonization more broadly — including cement, steel, petrochemicals, and refining — presents another major investment wave. As Saudi industries face global pressure to reduce embedded carbon in exports, climate-tech startups offering emissions analytics, carbon capture enhancements, and process optimization tools may see sustained demand.

3. Carbon Markets and ESG Infrastructure

Saudi Arabia’s circular carbon economy framework signals growing interest in carbon management mechanisms. As voluntary carbon markets develop regionally, capital deployment is expected in:

• Carbon credit verification platforms
• Blockchain-based tracking systems
• Measurement, reporting, and verification (MRV) software
• Nature-based carbon offset initiatives

Startups in this space could fill credibility and transparency gaps. Companies like CarbonSifr illustrate the early-stage development of emissions tracking infrastructure. As regulatory clarity increases, growth in this segment could accelerate significantly.

Estimates suggest that carbon market-related financial flows in the region could reach several billion dollars annually by the early 2030s, depending on global carbon pricing developments.

4. Grid Modernization and Energy Storage

Battery storage installations are expected to expand rapidly as renewable penetration rises. Large-scale storage deployments require integrated software systems for load management, arbitrage optimization, and resilience planning.

This segment alone could attract tens of billions of dollars in capital over the next decade, particularly as smart grid systems evolve.

Startups can compete in:

• Battery lifecycle analytics
• Storage performance optimization
• AI-powered grid dispatch tools
• Vehicle-to-grid integration systems
• Microgrid design for industrial zones

These technologies are capital-light relative to infrastructure projects but critical to performance outcomes, making them attractive to venture investors.

5. Sustainable Urban Development and Green Construction

Saudi Arabia’s large-scale urban projects under Vision 2030 integrate sustainability requirements into design and construction. Green buildings, water efficiency systems, district cooling technologies, and smart mobility infrastructure are expected to drive billions in additional climate-aligned investment.

This area opens opportunities for startups developing:

• Smart building management systems
• Water reuse and efficiency technologies
• Low-carbon construction materials
• Digital twins for urban sustainability planning

As regulatory standards tighten and global investors assess ESG metrics, sustainable construction technologies are likely to experience strong demand growth.

Where the Gaps Remain

Despite strong capital deployment, several structural gaps present an opportunity:

1. Localized Climate Data Infrastructure
   Saudi-specific emissions baselines, climate risk analytics, and industrial carbon intensity datasets remain underdeveloped. Startups can build localized intelligence platforms tailored to regional industries.
2. SME Decarbonization Solutions
   Large corporations may access sustainability consultants and global software platforms, but small and medium enterprises often lack affordable tools. Scalable, subscription-based emissions tracking and energy optimization tools could fill this gap.
3. Climate Insurance and Risk Modeling
   As infrastructure investments grow, demand for climate risk assessment and parametric insurance products will increase. Fintech-climate hybrids could emerge in this space.
4. Talent and Technical Advisory Platforms
   Climate finance requires specialized skills in carbon accounting, green bond structuring, and sustainability reporting. Digital marketplaces connecting experts to projects may gain traction.

Growth Potential: From Niche to Core Sector

Saudi Arabia’s startup ecosystem has matured rapidly, with venture capital investment reaching record levels in recent years. As climate finance frameworks become institutionalized, climate-tech could evolve from a niche vertical into a core investment category.

Over the next decade, climate-aligned startups in Saudi Arabia could see compound annual growth rates exceeding 25–35 percent in segments such as energy analytics, carbon accounting, and grid software.

The advantage for Saudi-based startups lies in proximity. They operate within a market undergoing rapid regulatory change, sovereign-backed capital deployment, and infrastructure expansion. That alignment reduces market entry barriers and shortens sales cycles relative to markets where policy support is uncertain.

A Capital Cycle in Motion

What distinguishes Saudi Arabia’s climate finance strategy is not just the scale of funding, but its integration across sovereign funds, public markets, private banks, and venture capital channels.

If current trajectories hold, by the early 2030s, Saudi Arabia could rank among the leading emerging-market hubs for climate capital deployment, particularly in hydrogen, solar, and industrial decarbonization.

For startups, the message is clear. The next decade will not be defined solely by infrastructure construction. It will be shaped by the digital systems, analytics tools, efficiency platforms, and financial innovations that make that infrastructure viable and profitable.

In that environment, climate finance is not just about funding projects. It is about building an ecosystem — and startups may prove to be some of its most agile architects.

From Oil Capital to Climate Capital

Saudi Arabia’s role in climate finance is not defined by rhetoric but by capital allocation. The Kingdom is leveraging its fiscal strength to influence the direction of energy investment, support technological innovation, and reshape its economic identity.

The transformation remains complex. Balancing hydrocarbon revenues with decarbonization goals requires disciplined policy coordination and sustained financial commitment. Yet the trajectory suggests that Saudi Arabia is moving deliberately toward embedding climate considerations into sovereign strategy, capital markets, and private-sector development.

If successfully executed, this approach could redefine the Kingdom’s global positioning. Rather than being seen solely as an energy exporter, Saudi Arabia may increasingly be recognized as a climate capital allocator, shaping how emerging markets finance their transition.

In an era when capital determines the pace of decarbonization, that shift may prove to be one of the most consequential chapters in the Kingdom’s economic evolution.

Kholoud Hussein 

In the startup world, speed has always mattered. But over the past decade, the definition of speed has changed. It no longer means launching fast and scaling recklessly. It means learning fast. That shift in mindset sits at the heart of what is known as the lean startup.

The lean startup approach, popularized by entrepreneur and author Eric Ries in his book The Lean Startup, challenges traditional business planning. Instead of spending years developing a product in isolation and then bringing it to market, the lean model encourages founders to build quickly, test early, and adapt continuously.

At its core, a lean startup is a method for reducing risk. It is not about being cheap. It is about being efficient with time, capital, and effort.

The Problem with Traditional Startup Thinking

Historically, startups followed a predictable script. Write a detailed business plan. Raise capital. Build a full-featured product. Launch. Market aggressively. Hope customers respond.

The flaw in this sequence is simple: it assumes the founders already know what customers want. In reality, many early-stage assumptions are wrong. Markets shift. Customer behavior surprises. Product features that seemed essential often prove irrelevant.

When companies discover these mismatches too late, the cost is high. Resources are exhausted. Investors lose confidence. The company collapses under the weight of untested assumptions.

The lean startup framework was designed to prevent that outcome.

The Build–Measure–Learn Loop

The lean methodology revolves around one continuous cycle: build, measure, learn.

First, build a minimum viable product (MVP). This is not a prototype for internal discussion. It is a basic, usable version of the product that allows real customers to interact with it. The goal is not perfection. The goal is feedback.

Second, measure how customers respond. Do they use the product as expected? Do they return? Are they willing to pay? Which features matter most?

Third, learn from the data. If assumptions prove incorrect, the company pivots. If evidence supports the hypothesis, the company iterates and improves.

This loop continues until the business finds product–market fit, the point where demand becomes consistent and measurable.

Validated Learning Over Vanity Metrics

A defining characteristic of lean startups is their focus on validated learning. Growth in social media followers or website traffic may look impressive, but those metrics do not always reflect real demand or sustainable revenue.

Lean startups concentrate on actionable metrics: customer acquisition cost, lifetime value, retention rate, and conversion rate. These numbers provide insight into whether the business model works at scale.

By grounding decisions in data rather than optimism, founders reduce uncertainty and avoid expensive missteps.

Capital Efficiency as Strategy

The lean approach also reshaped how startups think about capital. Instead of raising large amounts of funding to execute a fixed plan, lean startups treat capital as fuel for experimentation.

Small, controlled tests replace large, irreversible bets. Marketing campaigns are piloted before expansion. Features are released incrementally rather than all at once. Hiring follows traction, not projections.

This discipline often extends the runway, the amount of time a startup can operate before running out of cash. More runway means more opportunities to refine the model and reach profitability.

The Pivot: A Strategic Reset

One of the most misunderstood elements of lean startups is the pivot. A pivot is not a failure. It is a structured course correction based on evidence.

Some of the most successful companies began with entirely different ideas. What distinguishes lean startups is their willingness to change direction early, before resources are depleted.

A pivot might involve targeting a new customer segment, altering the pricing model, or simplifying the product offering. The decision is not emotional. It is data-driven.

Why Lean Still Matters

More than a decade after its introduction, the lean startup methodology remains central to modern entrepreneurship. In a business environment defined by uncertainty, speed alone is not enough. Precision matters. Adaptability matters.

Lean startups succeed not because they avoid failure, but because they fail intelligently and early. They treat uncertainty as a variable to manage rather than a threat to fear.

In an era where capital markets fluctuate and competition intensifies, the lean mindset offers something valuable: a structured way to build companies grounded in evidence, discipline, and continuous learning.

For founders navigating today’s volatile markets, that may be the most sustainable advantage of all.

Noha Gad

Saudi Arabia’s total agricultural imports recorded 18,762 thousand tons in 2024. Since the launch of Vision 2030, the Kingdom has pursued an ambitious strategy to reduce reliance on imported products by enhancing local production and providing high-quality alternatives, particularly in the fresh produce market.

At the forefront of this shift is Grove, a Riyadh-based agricultural technology startup. Positioning itself as a consumer brand, Grove leverages technology to create a demand-driven supply chain that connects farms directly to markets and households while minimizing waste and maximizing quality.

In an exclusive interview with Co-founder Mohammed Bin Ghannam, Sharikat Mubasher delved into how Grove is revolutionizing the fresh produce sector in Saudi Arabia, the key challenges it addresses, and its plans for market expansion. Ghannam also shared his vision for the future of the market both within the Kingdom and globally, outlining the key trends set to define its trajectory.

Grove describes itself as a consumer brand connecting farms, markets, and households. Can you walk us through how Grove's technology and operations enable this coordination?

At its core, Grove is solving a flavor and variety problem created by how traditional supply chains are designed. Because the system is optimized for predictability, shelf-life, and intermediaries, not end-consumer taste, farmers are pushed toward limited varieties and harvest timing that prioritizes transport and handling over ripeness. The result is a product that is often picked too early, travels too long, and reaches households with muted flavor and inconsistent eating quality.

Grove's technology changes that by turning real consumer demand into farm-level decisions through what we call a grade-to-channel system. We start by analyzing multi-channel demand, what people buy through our app, what retailers need, and what B2B clients order, then translate that into precise production planning at the farm level. This means farmers know what to plant, when to harvest, and which quality standards to meet before the season even starts.

On the operations side, we have built an integrated system that handles everything from harvest planning and quality grading to cold-chain logistics and last-mile delivery. Our software generates accurate harvest schedules days in advance based on real-time demand, and our routing algorithms ensure each grade is directed to the best-fit outlet based on quality specs and customer requirements.

What makes this work is vertical coordination. We are not a marketplace that just connects buyers and sellers. We operate as one extended system where farms, logistics partners, and sales channels share data and processes. This allows coordinated decisions across the entire chain, from soil to doorstep, so supply is shaped by real consumer demand instead of intermediary convenience.

What are the main challenges facing the fresh-produce market in Saudi Arabia, and how does Grove address them?

The biggest challenge is structural, not operational. The traditional supply chain was designed to move volume through intermediaries, not to deliver quality to consumers. This creates four major problems.

First, there is a massive quality gap. Most produce is harvested too early to survive the long journey through wholesale markets and distribution centers. Tomatoes arrive firm but flavorless. Strawberries are red but lack sweetness. Consumers pay premium prices but receive mediocre products optimized for travel, not taste.

Second, variety is extremely limited. The assortment on supermarket shelves does not match how people actually cook or eat. Generic varieties dominate because they fit standard supply chain flows, reflecting what intermediaries are comfortable managing rather than what kitchens actually need. What is surprising is that almost all imported products have local alternatives that are often far superior, closer to consumers, fresher, and in many cases cheaper to produce. But farmers do not know this, and even if they did, wholesale market brokers will not risk pushing new products into the market.

Third, there is zero transparency. Information about origin, handling, and farming practices is minimal. Without transparency, consumers cannot verify that their produce is safe or grown responsibly. They are forced to trust a system that has no accountability.

Fourth, food waste is massive; up to 30% of fresh produce is wasted in the traditional chain. When consumers purchase produce days after harvest, a significant portion of its usable lifetime has already elapsed. The result is spoilage in refrigerators, a hidden cost that makes cheap produce expensive.

Grove addresses these challenges through our demand-driven operating model. We partner directly with farmers through our Agri-Marketing service, which handles sales planning, coordinated planting and harvest, certified quality standards, cold-chain logistics, and guaranteed market access. This allows farmers to prioritize quality over volume because they know their entire harvest will be absorbed across appropriate channels.

For consumers, this means fresher, riper produce with full traceability. Our direct pathway eliminates premature harvesting, ripens fully, and reaches customers faster. We also solve the variety problem by moving the "what should be farmed" decision downstream, giving end consumers agency and input. That demand signal flows back upstream to farmers, giving them confidence that expanding into local alternatives will have commercial success.

The results speak for themselves. Our repeat-purchase rate is nearly 48%, and our food waste remains under 5%. These metrics prove that prioritizing quality and aligning with farmers aren't just idealistic goals, they lead to superior commercial performance.

How does Grove's unique demand-driven approach position the company to meet the rising demand for premium, organic, and specialty produce?

The traditional supply chain cannot meet premium demand effectively because it is built for volume and commoditized pricing. Grove starts from actual consumer demand and works backward to production planning. When we see demand for organic strawberries or specialty herbs, we translate that signal directly to farmers with clear guidance and guaranteed market access.

Our multi-channel structure de-risks farmer adoption. Premium grades go to our DTC channel at quality-aligned prices, while lower grades move through wholesale at fair value. This blended economics gives farmers confidence to invest in quality and specialization.

How does Grove contribute to reducing food waste in line with Vision 2030's food security objective?

Grove contributes to reducing food waste at three levels. At production, our grade-to-channel system helps ensure full harvest absorption; every kilogram finds its optimal market. At distribution, we harvest to order based on real-time demand, keeping our operational waste under 5% versus industry averages of 20-30%. At consumption, our produce arrives with a more usable lifetime intact, and we've designed packaging for smaller households and modern lifestyles.

Beyond operations, we are working to strengthen local production by proving Saudi farms can produce high-quality alternatives to imports. Our partnerships span the Kingdom, from Tabuk to Al-Hasa, Al-Jouf to Al-Qassim, contributing to a more resilient domestic supply chain that reduces import dependence. As part of the broader ecosystem, when we reduce waste, we are helping increase supply while optimizing the use of Saudi Arabia's rich agricultural resources, contributing to the Kingdom's vision for sustainable food security.

Grove recently closed a $5 million seed round. How will this new capital accelerate the company's growth strategy?

This is Grove's first institutional funding since we began operations in mid-2024, led by Outliers VC. The capital will be deployed across three priorities: deepening farm integration and partnerships, scaling logistics and fulfillment infrastructure, including cold-chain and regional fulfillment centers, and investing in technology systems that coordinate production planning, harvest scheduling, and demand forecasting.

Does Grove's long-term expansion plan include entering into regional and international markets?

Our current focus is on expanding within Saudi Arabia. We serve Riyadh today and are progressing toward additional cities across the Kingdom.

Finally, how do you see the future of the fresh-produce sector in Saudi Arabia, and what are the key trends that will reshape it?

The fresh-produce sector in Saudi Arabia is at an inflection point. Several converging trends are reshaping the market, and companies that understand and adapt to these trends will define the future of the industry.

The first trend is changing consumer behavior. Families are smaller, live in smaller homes, and work longer hours relative to previous generations. This has pushed fruit and vegetable consumption slightly out of diets, not because people don't want fresh produce, but because they have less time to cook, less time to visit central markets for better selection, and they need smaller quantities that don't match traditional market buying sizes. The future belongs to companies that can make fresh produce more convenient, more accessible, and better suited to modern lifestyles.

The second trend is rising quality expectations. Consumers are becoming more health-conscious, more informed, and more willing to pay for quality, traceability, and sustainability. They want to know where their food comes from, how it was grown, and whether it's safe. The traditional opacity of supply chains won't be acceptable in the future. Transparency and trust will become competitive advantages, not just nice-to-haves.

The third trend is technology adoption. Agriculture has historically been resistant to change, but that's shifting. Farmers are increasingly open to data-driven decision-making, precision agriculture, and partnerships that reduce risk and improve outcomes. The companies that can provide farmers with actionable insights, guaranteed market access, and operational support will win farmer loyalty and secure a reliable supply.

The fourth trend is sustainability and food security, driven by Vision 2030. The government is investing heavily in local agriculture, water efficiency, and reducing food waste. Companies that align with these national priorities, by strengthening local production, reducing waste, and building resilient supply chains, will benefit from policy support and consumer preference.

The fifth trend is consolidation and vertical integration. The fragmented, intermediary-heavy supply chains of the past are inefficient and unsustainable. The future will see more vertically coordinated systems where technology enables direct connections between farms and consumers, cutting out unnecessary intermediaries and reallocating value to the people who actually create it, farmers and consumers.

At Grove, we are building for this future. We are not just a produce delivery company. We are building the infrastructure for a demand-driven, tech-orchestrated agricultural system that aligns the incentives of farmers, consumers, and the market. We believe that is the future of fresh produce, not just in Saudi Arabia, but globally.

The companies that will succeed in this future are those that solve real structural problems, not just offer incremental improvements. That is what Grove is doing.