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.

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. 

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.

Roudny Nahed

For decades, branding has been dominated by the visual world. Companies invested heavily in logos, color palettes, typography, and visual guidelines to ensure consistent recognition across their communications. But as the digital ecosystem evolves, another dimension of branding is gaining strategic importance: sound.

From mobile applications and digital platforms to retail spaces and advertising campaigns, sound has become an integral part of the customer experience. Every notification, confirmation tone, background music track, or advertisement audio contributes to how audiences perceive a brand. As a result, businesses are increasingly recognizing the importance of audio branding, also known as sonic branding.

Today, the brands people hear can be just as powerful as the brands they see.

Every Brand Already Has a Sound
Whether companies realize it or not, every brand already produces sound. A mobile banking notification, the music inside a retail store, the audio in a promotional video, or the tone accompanying a digital transaction all shape how people experience a brand.

However, in many organizations, these sounds are created without strategic alignment. Different teams produce audio elements independently, resulting in a fragmented and inconsistent brand experience.

This is where sonic branding becomes valuable. Just as companies develop visual identity guidelines, leading organizations are now building sonic identity systems. These systems define how a brand should sound across every touchpoint, including sonic logos, brand music, interface sounds, voice direction, and audio used in advertising.

When designed intentionally, these elements create a consistent and recognizable brand presence.

Sound Connects With Emotion Faster
One of the key reasons sound is so powerful lies in neuroscience. Research in consumer psychology shows that sound can trigger emotional responses almost instantly. Music and sound interact directly with areas of the brain responsible for memory and emotion, allowing brands to create deeper connections with their audiences.

This is why a short melody or sound signature can instantly remind people of a particular brand or experience. Audio has the ability to reinforce brand recognition and create emotional associations that visuals alone often cannot achieve.

The Rise of Audio in the Digital Economy
The growing importance of sonic branding is also driven by the rise of audio-driven environments. Today’s digital ecosystem is filled with sound, from social media video content and streaming platforms to smart devices and voice assistants.

In many cases, consumers interact with brands without even looking at a screen. A voice assistant response, a payment confirmation tone, or a branded podcast may be the primary interaction point with a company.

This shift means businesses can no longer rely solely on visual identity. Brands must also think about how they sound across the customer journey.
A Strategic Opportunity for Businesses

While many global brands have already embraced sonic branding, the field is still emerging in several regions, including the Middle East. As industries across the Gulf continue to invest in digital transformation, entertainment, fintech, and large-scale consumer experiences, the role of sound in brand communication will only grow.

Organizations that start thinking strategically about their audio identity today can gain a competitive advantage tomorrow.

The future of branding is multisensory. The strongest brands will not only be recognized visually, but they will also be recognized instantly by the way they sound.
In an increasingly noisy world, a distinctive sound may become one of the most powerful tools a brand can own.

By: Roudny Nahed, Partnership Manager at MusicGrid

Ghada Ismail

When discussions turn to Saudi Arabia’s startup ecosystem, attention usually centers on highly visible consumer platforms, such as food delivery apps, ride-hailing services, digital wallets, and online marketplaces. These are the companies that attract millions of users and quickly become part of everyday life. Their brands dominate headlines, and their apps live on people’s phones.

Yet beneath these familiar platforms lies another layer of the digital economy, one that most consumers rarely notice.

Behind every e-commerce store, fintech app, or digital marketplace is a network of companies providing the technological infrastructure that allows these businesses to function. These firms develop the systems that manage payments, verify identities, deliver notifications, detect fraud, and help merchants run online stores. Without these technologies, many digital platforms would struggle to operate at scale.

While some startups build products designed for the public, others build the invisible systems that allow those products to work. These companies can be described as “invisible startups.” Their customers are businesses rather than individuals, and their technologies operate quietly behind the scenes.

As Saudi Arabia accelerates its digital transformation under Saudi Vision 2030, these startups are becoming a crucial backbone of the Kingdom’s rapidly expanding digital economy.

What Are Invisible Startups? 

Invisible startups are companies that focus on building technological infrastructure rather than consumer-facing products. Instead of launching apps aimed directly at individuals, they develop systems that help other companies operate more efficiently.

Their technology often works in the background. Consumers may interact with the outcomes of these systems—such as receiving a verification code or completing a secure online payment—but they rarely know which company powers the underlying technology.

These startups typically build tools that support essential digital operations. Some develop platforms that allow merchants to create and manage online stores. Others focus on communication infrastructure that enables businesses to send messages and notifications to customers. There are also companies specializing in fraud detection technologies designed to protect digital transactions, as well as firms building logistics systems that help manage deliveries and supply chains.

Because invisible startups operate in the business-to-business space, their growth often comes from enabling thousands of companies to operate digitally. Rather than focusing on user downloads or consumer marketing, they concentrate on building scalable systems that businesses rely on every day.

Why Saudi Arabia Needs Invisible Startups 

Saudi Arabia’s digital economy has been expanding rapidly over the past decade. Government reforms, growing venture capital investment, and rising internet penetration have all contributed to the development of a dynamic startup ecosystem.

At the center of this transformation is Saudi Vision 2030, which prioritizes innovation, digital infrastructure, and technology-driven industries as key pillars of economic diversification.

This transformation is generating strong demand for infrastructure-focused startups. As more businesses move their operations online, the need for reliable technological systems becomes increasingly important. Startups launching digital services require ready-made tools that allow them to operate quickly without having to build complex infrastructure from scratch.

The rapid growth of small and medium-sized enterprises across Saudi Arabia has further accelerated this demand. Many entrepreneurs entering sectors such as e-commerce, fintech, and logistics rely on specialized technology providers that simplify digital operations.

In this context, invisible startups serve as a vital layer within the broader ecosystem. By offering ready-made platforms and services, they reduce the technological barriers facing entrepreneurs and make it easier for new businesses to enter the digital economy.

Startups Supporting Online Businesses 

One of the clearest examples of invisible infrastructure can be found in platforms that enable merchants to launch online stores.

Saudi startups such as Zid and Salla have emerged as key players in this space. Both companies provide technology that allows businesses to create and manage their own digital storefronts without requiring advanced technical expertise.

Through these platforms, merchants can design websites, integrate payment systems, coordinate shipping services, and manage orders through a single dashboard. A traditional retailer that once relied entirely on a physical store can now establish a fully functioning online business within a short period of time.

The impact of these platforms extends far beyond the companies themselves. By enabling thousands of merchants to sell products online, they help expand the entire e-commerce ecosystem in Saudi Arabia.

Consumers browsing online stores may never realize that a specialized platform is operating behind the scenes, yet companies like Zid and Salla have quietly become essential infrastructure for digital commerce across the Kingdom.

Communication Infrastructure 

Another critical layer of invisible technology involves the systems that power digital communication between businesses and their customers.

Modern digital services depend heavily on messaging infrastructure. From verification codes and delivery updates to transaction confirmations and customer service notifications, communication plays a central role in the digital customer experience.

One Saudi company contributing significantly to this infrastructure is Unifonic. The firm provides cloud-based communication solutions that allow businesses to send messages across multiple channels, including SMS, voice, and messaging applications.

When users receive a one-time password while logging into a platform or confirming a transaction, the message may be delivered through systems developed by companies like Unifonic.

Although consumers see the messages appearing on their phones, the technology behind the communication often remains invisible. Yet these systems are essential for maintaining secure transactions, engaging customers, and ensuring smooth digital interactions.

Security and Trust Infrastructure 

As digital services expand, maintaining trust and security becomes increasingly critical. Online transactions, digital banking, and remote identity verification all require sophisticated technological systems to prevent fraud and protect sensitive information.

Saudi Arabia has witnessed the emergence of several companies developing solutions in this area, including Mozn and Elm.

These companies build technologies designed to monitor financial activity, analyze transaction patterns, and detect potential risks. Their systems are widely used by banks, fintech companies, and government institutions seeking to strengthen security and regulatory compliance.

Artificial intelligence plays an important role in many of these solutions. By analyzing large volumes of data in real time, advanced analytics platforms can identify suspicious activities and help prevent fraud before it occurs.

Organizations across both the public and private sectors also rely on digital services developed by Elm to streamline administrative processes and enhance digital identity systems.

Although these technologies rarely appear in consumer-facing applications, they form a crucial layer of trust within the Kingdom’s digital economy.

Why These Startups Matter for the Entire Ecosystem 

Despite their relatively low public profile, invisible startups play an essential role in supporting Saudi Arabia’s technology ecosystem.

Unlike consumer startups that depend on widespread brand recognition, infrastructure companies grow by enabling other businesses to succeed. A single technology provider may serve hundreds or even thousands of clients, creating significant effects across entire industries.

This model allows these startups to develop highly scalable businesses. Once the technological infrastructure is built, it can be deployed across multiple companies and sectors. The result is a powerful multiplier effect within the digital economy.

Infrastructure startups also accelerate innovation. By offering ready-made tools for payments, communication, and fraud detection, they allow entrepreneurs to focus on developing new products and services rather than building complex technological systems.

In many ways, these companies function like the roads and utilities of the digital economy. They may not always attract attention, but they provide the foundation upon which other businesses operate.

The Future of Invisible Startups in Saudi Arabia 

Saudi Arabia’s digital transformation is still unfolding, and the demand for infrastructure startups is expected to grow in the years ahead.

As industries such as fintech, logistics, e-commerce, and artificial intelligence continue expanding, businesses will require increasingly specialized technology solutions. This environment creates significant opportunities for startups building platforms related to digital identity, cybersecurity, financial infrastructure, and data analytics.

Investors within the Kingdom are also beginning to recognize the strategic importance of these companies. While consumer apps often receive the most media coverage, infrastructure startups can generate long-term value by serving entire industries.

Globally, many of the most influential technology companies operate largely behind the scenes, providing the platforms that power other businesses. Saudi Arabia’s startup ecosystem may increasingly follow a similar path.

The most important tech companies of the future may not be the apps that dominate smartphone screens. Instead, they may be the platforms quietly enabling thousands of businesses to operate digitally.

Invisible startups may not seek the spotlight, but their impact on Saudi Arabia’s digital economy is becoming impossible to ignore. As the Kingdom continues its journey toward a diversified and technology-driven future, these companies will remain an essential force powering the ecosystem from behind the scenes.