Fueling Innovation: How Venture Capital is Driving Saudi Arabia’s Startup Success

Jan 19, 2025

Kholoud Hussein 

 

Venture capital (VC) has become a cornerstone of startup ecosystems worldwide, providing the fuel that propels innovative ideas into successful businesses. In Saudi Arabia, the VC landscape has grown significantly, and it is supported by government initiatives, international investor interest, and an increasingly dynamic entrepreneurial culture. 

This blog explores how venture capitalists identify and invest in promising startups, tips for attracting VC funding, and case studies from Saudi Arabia highlighting venture capital's transformative power.

 

How VCs Identify and Invest in Promising Startups

Venture capitalists are not just financiers; they are strategic partners who invest in startups with high-growth potential. In Saudi Arabia, VCs consider several factors when deciding where to invest:

  1. Market Opportunity:
    VCs assess the size and growth potential of the market a startup is targeting. For example, in 2024, sectors like fintech, artificial intelligence, and health tech emerged as top investment areas in the Kingdom due to their alignment with Vision 2030. Mohammed Alzahrani, a managing partner at Saudi-based Raed Ventures, explains: "We look for startups addressing sizable market gaps, particularly those leveraging technology to create scalable solutions."
  2. Founding Team:
    The strength, expertise, and commitment of the founding team are crucial. VCs prioritize founders with a clear vision and the ability to execute it effectively.
  3. Traction and Metrics:
    Startups with proven traction—such as user acquisition, revenue growth, or strong partnerships—are more likely to attract VC attention. These metrics demonstrate product-market fit and potential for scalability.
  4. Competitive Edge:
    A unique value proposition or innovative technology can set a startup apart. Venture capitalists look for businesses that can defend their market position against competitors.
  5. Alignment with Long-Term Goals:
    In Saudi Arabia, VCs often align their investments with the national agenda. Sectors like renewable energy, smart cities, and education technology are particularly attractive due to government support and public-private partnerships.

Tips for Startups to Attract VC Funding

Securing venture capital requires a strategic approach. Startups in Saudi Arabia can enhance their chances of attracting VC funding by following these tips:

  1. Develop a Strong Business Plan:
    A clear, well-researched business plan outlining market opportunity, financial projections, and growth strategies is essential. Ensure your pitch deck is visually compelling and succinct.
  2. Demonstrate Traction:
    Show measurable progress, whether it’s growing a customer base, securing partnerships, or achieving profitability in key areas.
  3. Build Relationships with Investors:
    Networking is vital. Attend events like the LEAP tech conference or connect with VCs through platforms.
  4. Leverage Government Programs:
    Take advantage of Saudi initiatives like the Monsha’at SME program or the PIF-backed venture funds. These programs provide funding and credibility, making your startup more attractive to private investors.
  5. Highlight Your Team’s Strengths:
    Showcase the expertise and dedication of your team. Investors need confidence in the people behind the business, as much as in the idea itself.
  6. Be Open to Feedback:
    Engage in conversations with potential investors and be prepared to iterate on your model based on their feedback. Flexibility demonstrates your willingness to adapt to market needs.

Case Studies: Saudi Startups Scaling with VC Support

Jahez

One of Saudi Arabia’s most notable startup success stories, Jahez, an online food delivery platform, benefited immensely from venture capital support. The company secured significant funding in its early stages, enabling it to scale rapidly and expand operations across the Kingdom. By 2024, Jahez had become a leader in its sector, with a successful IPO cementing its status as a powerhouse in the Saudi tech ecosystem.

 

Tamara

Tamara, a buy-now-pay-later (BNPL) fintech company, has also thrived with VC backing. The startup raised $110 million in a Series A funding round, led by Checkout.com, in 2021. This injection of capital helped Tamara enhance its platform and scale its services across the MENA region. Today, Tamara continues to attract customers and investors, solidifying its position as a leader in Saudi fintech.

 

Sary

Sary, a B2B e-commerce platform, raised $75 million in a Series C round in 2022, which accelerated its growth and allowed it to expand regionally. The startup leveraged the funding to build a robust technology infrastructure and optimize supply chain operations, catering to thousands of businesses across the Middle East.

 

Looking Ahead: The Future of VC in Saudi Arabia

As the Saudi startup ecosystem matures, venture capital is poised to play an even greater role in fostering innovation and economic diversification. With the Kingdom attracting record levels of foreign direct investment and a supportive regulatory environment, startups in Saudi Arabia are well-positioned to thrive.

 

Yasir Al-Rumayyan, Governor of the Public Investment Fund, highlights the broader vision: "By investing in emerging technologies and entrepreneurial ventures, we are laying the foundation for a dynamic, diversified economy that will benefit future generations."

 

As Saudi Arabia continues to embrace its entrepreneurial potential, venture capital serves as the lifeblood for turning bold ideas into market-shaping realities. From tech unicorns like Tamara to industry disruptors like Jahez, these success stories underscore the transformative power of venture capital. 

 

For startups, the journey to securing VC funding begins with a clear vision, robust strategy, and the willingness to innovate. With a wealth of opportunities on the horizon, the Kingdom’s startup ecosystem is set to become a beacon of innovation in the Middle East and beyond.

 

Don’t miss our next article in this series, "Accelerators and Incubators: Launchpads for Startup Success," where we’ll delve into the vital role these programs play in nurturing Saudi Arabia’s entrepreneurial talent.

 

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Yahia: Rabbit’s techs fuel regional growth with plans to expand into new Saudi cities

 Shaimaa Ibrahim

 

The quick delivery services and e-commerce sector in the GCC and the Middle East are undergoing a profound transformation, driven by the development of logistics technologies and changing consumer preferences. In this dynamic landscape, Rabbit emerged as one of the leading models that reshaped the standards of quick delivery services. As it broadens operations across Egypt and Saudi Arabia and adopts a flexible, tech-based operating model, Rabbit plans to strengthen its presence and expand market share in this competitive industry.

In this context, Sharikat Mubasher held an exclusive interview with Shaza Yahia, Regional Marketing Director at Rabbit, on the sidelines of the fourth edition of the HERizon 2025 Summit, organized by Carerha, a leading platform focusing on empowering women across the region to compete in the job market.

The interview discussed the company’s journey since its foundation and its mechanisms to address the real challenges within the delivery sector, in addition to highlighting the competitive edges that boost Rabbit’s expansion across the fastest-growing and evolving markets in the region.

It also underscored the pivotal role of technology and artificial intelligence (AI) in enhancing operational efficiency, and showcased the company’s achievements and the key challenges it faced to expand regionally, in addition to providing insights on the future of e-commerce in the region amid the rapid transformations that the sector witnesses.

 

What is the core concept behind Rabbit? And how does it fill the gap in the quick delivery sector in Egypt and the GCC?  

The idea behind Rabbit emerged five years ago when the founders identified common challenges facing consumers in Egypt and the broader region, notably home delivery delays, inaccurate orders, and missing items upon receipt. Hence, the vision was born to establish a platform based on a model that offers a swift and accurate shopping experience, with a firm promise to deliver within only 20 minutes. The focus was to offer a reliable service that customers could trust and integrate seamlessly into their daily lives.

There were several key players in the Egyptian and Saudi markets when Rabbit was launched; however, the company chose to enter the market with a distinct approach centered on reliability, speed, and building long-term relationships with customers. Rabbit delivered clear added value and crafted personalized experiences that accurately meet each customer’s needs. This ultimately fostered strong user loyalty and enabled Rabbit to attract a growing segment of the market.

With this approach, Rabbit seeks to fill a genuine gap in the quick delivery sector in Egypt and the GCC, offering an operational model capable of keeping pace with the rapidly evolving lifestyle of consumers and enhancing the reliability of e-commerce services across the region.

 

What are the factors and features that give Rabbit a competitive edge over other companies in the Egyptian and Saudi markets?

Since its launch, Rabbit has focused on two core principles at the heart of its operations: convenience and simplicity. Our clear goal is to provide customers with a seamless experience, ensuring orders are delivered quickly and accurately, and offering all essential products at affordable prices, along with daily promotions that add genuine value to users.

Diversity is an integral part of Rabbit’s strategy to foster customer loyalty. As the number of online applications grows, the market experiences intense competition both among e-commerce platforms themselves and between these platforms and traditional stores, which continue to attract a significant segment of consumers, particularly in Saudi Arabia.

What sets Rabbit apart is that it adopts the ‘House of Brands’ model, being a home for brands, while focusing on supporting local products and providing them with a broad platform to reach more customers. Many of these brands have achieved growth through Rabbit that exceeds what they have achieved through global competitors, thanks to joint campaigns and additional marketing within the platform.

Rabbit’s competitive edge relies on multiple factors: quick services, product diversity, affordable prices, and strong support for local brands. Together, these factors enable Rabbit to compete effectively in this dynamic and rapidly evolving market.

 

How does Rabbit utilize technology and AI to enhance customer experience and improve operational efficiency?

Rabbit relies entirely on an advanced, in-house technology infrastructure, a rare approach in the e-commerce market where ready-made systems or partnerships with external technology providers are more common. At its early stages, the company relied on some partners but quickly developed its own infrastructure, enabling it to create a fully integrated application built on custom-designed systems tailored to meet its operational needs.

This technology infrastructure enables customers to place orders in under two minutes, maintaining a delivery promise of approximately 18 minutes. Internal system development also facilitated rapid responses to customer feedback, significantly improving their experience.

AI became an integral part of Rabbit’s operations. We employ AI in managing operations, data analysis, marketing personalization, and reducing operational costs. The company also integrates AI in content creation and marketing materials design to enhance team efficiency and accelerate marketing campaign development. 

 

What are the key figures and milestones that Rabbit has recently achieved?

Rabbit achieved remarkable growth in a short period, with over two million customers benefiting from its services, despite its marketing budget being significantly lower than that of its competitors. This reflects how our services meet customers' needs and reaffirms the company’s capability to build long-term relationships with customers.

The platform also enabled several local companies to achieve four- and five-fold growth rates by expanding their customer bases and boosting sales through Rabbit. Some of these companies successfully transformed their products into regional brands and expanded beyond Egypt, thanks to their partnership with the platform.

Additionally, Rabbit provides brands with strategic opportunities to reach new customer segments and showcase their products on a broader scale, unlocking new growth opportunities that were not accessible before.

 

What were the major challenges that Rabbit faced during the expansion phase, and how did the company overcome these challenges? 

We faced several challenges across various expansion phases, most notably the variance in marketing budgets compared to competitors, which significantly exceeded our resources. We also noticed that customer needs change rapidly, and that each stage of time imposes different priorities and behaviors, which puts constant pressure on companies to keep up with these changes. 

We were able to overcome these challenges thanks to the team’s ability to develop and respond quickly to changes, along with our approach that focuses on continuous testing, whether to measure customer satisfaction or to test new features within the application.

We learned a fundamental lesson from this experience: addressing challenges begins with understanding their nature. Are they temporary and time-bound, or are they fundamental problems that require modifying the business model? Therefore, we are always keen to try new ideas quickly and make the required changes, driven by our belief that flexibility and quick decision-making are key factors to maintain the company’s ability to compete and achieve rapid growth.

 

What motivated Rabbit to expand into the Saudi market, and what investment opportunities did the company find in the Kingdom?

Since its foundation, Rabbit has had a clear expansion plan, which focused on launching operations in Cairo before moving to Riyadh. We obtained the necessary licenses to expand into Saudi Arabia during the first year of our launch in Egypt; however, we preferred to postpone this step till early 2025 to deeply understand the Saudi market and ensure a strong and balanced entry.

The Saudi market is a highly competitive one, thanks to the emergence of new companies and large investments in growth, as well as intense competition between online applications and traditional stores. This eventually increased consumer awareness of digital services and paved the way for applications that deliver exceptional experiences and added value. 

Despite this intense competition, the Saudi market remains abundant with opportunities for any application offering a high-quality experience and building a genuine connection with the local community.

Rabbit currently focuses its efforts on Riyadh, aiming to provide an experience that the Saudi customer feels is tailored specifically for them, not just a copy of a foreign service.

 

Does Rabbit plan to expand into new markets beyond Egypt and Saudi Arabia?

Yes, we have clear expansion plans, but we always ensure a thorough study of the target markets before taking any step by analyzing demand size, competition levels, and gaps we can fill to guarantee a successful and sustainable entry.

In the short term, our plans focus on expanding into new cities across Saudi Arabia, following the success we achieved in Riyadh. The Saudi market still holds significant growth opportunities, and expanding into other cities is a pivotal step before moving to new markets beyond Egypt and Saudi Arabia.

 

How do you see the future of the delivery services and e-commerce sectors in GCC and the Middle East?

The delivery and e-commerce sectors in the GCC and the Middle East are experiencing rapid growth, driven by changing consumer behavior and their increasing reliance on online shopping, both in Cairo and Riyadh. Riyadh, in particular, stands as a model for this transformation, given the high youth population who prefer digital solutions and applications that meet their needs quickly and easily. 

The more companies can offer an integrated experience combining speed, convenience, and a variety of options, the more they will be able to capture larger market shares. Government policies, especially in Saudi Arabia, also accelerate this growth by supporting the adoption of cutting-edge technology and investing in AI solutions to enhance the efficiency of logistics and supply chains.

In light of these developments, the sector is expected to continue expanding, triggered by the entry of new players and increased investment volume. This will ultimately boost market competitiveness and reshape the future of e-commerce in the region.

 

Translation: Noha Gad

What Makes Certain Startups Go Viral?

Ghada Ismail

 

Some startups seem to explode overnight, appearing in feeds, conversations, and headlines almost magically. But virality is rarely accidental. Behind every breakout success is a careful mix of human psychology, clever product design, perfect timing, and engineered growth mechanics. Virality is not luck then; it’s strategy. Understanding why certain products spread like wildfire can reveal patterns that founders, marketers, and product teams can intentionally leverage. In other words, going viral is less about chance and more about creating the conditions that make sharing irresistible, adoption effortless, and growth self-propagating.

 

1. Psychology: Why People Share

Viral products succeed because they tap directly into human behavior. People don’t just share products; they share experiences that make them feel seen, valued, or emotionally engaged.

  • Identity expression: Users share things that reinforce how they see themselves or how they want to be perceived.
  • Emotional impact: Strong emotions—whether delight, surprise, or even frustration—motivate people to talk about a product. The more emotionally charged an experience, the more likely it spreads.
  • Social currency: Sharing gives users a sense of contribution or status. By showing others something new, useful, or exclusive, they feel like they are providing value to their network.

Pro Tip: Emotional engagement often drives more shares than functional usefulness. Products that trigger strong, shareable emotions scale faster.

 

2. Product Loops: Growth Built Into the Product

The most viral startups design mechanisms that naturally pull in more users. This is called a “growth loop.”

  • Network effects: Messaging apps or collaborative tools become more valuable as more people join.
  • Referral loops: Incentivized invitations, like Dropbox’s early free-storage strategy.
  • Content loops: Platforms like Instagram or TikTok grow because user-generated content spreads organically.

Pro Tip: Products that embed sharing into their core functionality can sustain long-term viral growth without heavy marketing spend.

 

3. Onboarding: Instant Value Matters

A viral product must deliver value immediately. Users ask:

  • “Can I understand this in seconds?”
  • “Is it easy to start using without instructions?”
  • “Can I quickly experience the benefit?”

Pro Tip: Frictionless onboarding directly correlates with higher share rates. The simpler the first experience, the more likely users are to invite others.

 

4. Timing: Hitting the Cultural Sweet Spot

Even the best product may fail if the market isn’t ready. Virality often depends on alignment with cultural or technological trends.

  • Zoom’s rise coincided with remote work adoption.
  • Fitness apps surged during global lockdowns.
  • New social media tools often succeed when network behaviors are shifting.

Pro Tip: Timing amplifies the effectiveness of psychological triggers and product loops. A perfectly engineered product launched too early or too late may never go viral.

 

5. Social Proof and FOMO: Accelerating Momentum

Virality grows faster when users see others using or endorsing the product. Techniques include:

  • Invite-only launches and waitlists to create scarcity.
  • Influencer endorsements for credibility.
  • Shareable content (screenshots, posts) that spreads awareness.

Pro Tip: Social proof multiplies momentum by increasing the probability that users will share or invite others.

 

6. Speed and Experimentation Create “Luck”

While luck plays a role, successful startups usually create conditions for it. They:

  • Launch quickly and expand based on feedback.
  • Test bold ideas and pivot fast.
  • Observe trends and react before competitors.

Pro Tip: Virality rarely happens without a culture of rapid experimentation. Startups that move fast can capitalize on windows of opportunity that others miss.

 

Conclusion: Virality Can Be Engineered

Virality is often treated as a mysterious, almost magical phenomenon, but the truth is more tangible. Successful startups achieve virality by understanding human behavior, embedding sharing mechanisms into their products, launching at the right moment, leveraging social proof, and moving faster than anyone else. The brands that truly explode don’t wait for luck; they create it. By studying these patterns, founders can shift their mindset from hoping for virality to designing it into their products, making growth predictable, measurable, and sustainable. 

How an AI co-founder can accelerate your startup to market

Noha Gad

 

The entrepreneurship ecosystem is undergoing a profound transformation today, driven by the fast-evolving technological landscape. Traditionally, startups have been launched by visionary individuals or teams sharing complementary skills and a common goal. However, the rise of artificial intelligence (AI) is revolutionizing the future of business, introducing a new paradigm where AI can serve as a full-fledged co-founder alongside human entrepreneurs.

In 2025, several startups are naming AI tools, like GPT-4, Claude, and open-source large language models (LLMs), as co-founders, not just assistants. In many cases, these AI systems ideate, write code, draft pitch decks, analyze markets, and even engage with customers.

The integration of AI as a co-founder democratizes entrepreneurship by leveling the playing field, especially for solo founders or resource-constrained teams. It empowers innovators to accelerate product development, optimize business strategies, and reduce time-to-market, all while fostering smarter, data-driven growth. 

 

What is an AI co-founder?

An AI co-founder is not a robot CEO. It is typically an advanced AI system, often based on LLMs or custom-trained agents, that supports or drives major startup functions from day one. Unlike human co-founders, AI systems operate tirelessly without requiring salaries, breaks, or rest. They harness vast data, predictive analytics, and machine learning to offer real-time insights, automate complex tasks, and support critical decision-making. This transformative concept is quickly moving from futuristic speculation to practical reality, fundamentally redefining how startups are conceived, launched, and scaled.

What makes AI co-founders different from traditional AI tools is their ability to handle up to 80% of early-stage R&D work that usually takes a lot of time and resources from founders. They keep learning and adapting to a startup's specific needs, becoming more efficient and customized over time. Several factors set AI co-founders apart from regular AI assistants. These include:

  • Strategic input: AI co-founders are not just implementing tasks; they propose product directions or market pivots.
  • Continuous learning: they adapt to the startup’s data, goals, and team behavior.
  • High Autonomy: AI co-founders operate without constant human oversight, having access to APIs, CRMs, design suites, code repositories, and more.

 

The impact of AI co-founders on the entrepreneurship ecosystem

AI co-founders play a pivotal role in transforming the startup landscape into a more inclusive, efficient environment where human creativity pairs with relentless computational power to drive sustainable growth and broader economic innovation. They significantly contribute to:

     -Democratizing access to entrepreneurship. They lower barriers for solo founders and underrepresented groups, providing expert-level support without the need for large teams or significant funding.

     -Accelerating innovation cycles. AI co-founders enable rapid execution of market research, product roadmaps, and strategy development, reducing weeks of work into minutes and accelerating innovation cycles across industries.

     -Enhancing cost efficiency. These founders foster cost efficiency and lean operations, as they automate repetitive tasks, allowing startups to iterate faster, manage risks through data-driven insights, and achieve quicker time-to-market.

 

Will AI replace human founders?

AI co-founders do not replace human creativity and leadership; instead, they complement them by automating repetitive and resource-intensive tasks. This partnership enables founders to focus on innovation, strategy, and cultivating the company’s culture. Additionally, AI co-founders complement human strengths through:

    -Automating administrative tasks, data analysis, and routine operations, allowing human founders to prioritize high-level strategy, creativity, and vision.

    -Handling operations without burnout, enabling humans to provide empathy, relationship-building, and ethical judgment, ultimately creating a symbiotic dynamic that enhances innovation and decision-making.

    -Enabling solo founders to achieve what once required full teams, but leadership and cultural nuance remain distinctly human.

    -Shifting hiring toward specialized roles by filling skill gaps, with human-AI collaboration yielding higher-quality solutions.

Finally, blending human ingenuity with machine intelligence can create more accessible, efficient, and innovative ecosystems. From democratizing startup formation and accelerating market entry to fostering symbiotic human-AI teams, these virtual partners empower founders to compete globally without traditional barriers. Entrepreneurs who embrace this collaboration will lead sustainable growth, navigating challenges like regulation and ethics to unlock unprecedented economic value.

Al-Abbasi: EdVentures Eyes Saudi Expansion to Empower Regional EdTech Startups

 Shaimaa Ibrahim

 

The education ecosystem in the Arab world is witnessing rapid transformations that are pushing EdTech startups to play a central role in creating solutions capable of bridging skills gaps and improving learning opportunities. At the same time, governments are increasingly adopting broad digital strategies, creating a rising need for entities capable of aligning these ambitions with modern market demands. Within this context, specialized investment firms have become essential contributors to reshaping the learning landscape and supporting the region’s innovation ecosystem.

 

EdVentures, the investment arm of Nahdet Misr Group, is among the most prominent entities that, since its establishment in 2017, has pursued a clear vision to empower EdTech startups. Its efforts have gone beyond supporting digital solutions—it has worked to build an integrated ecosystem encompassing incubation, investment, and mentorship, with the aim of achieving sustainable social impact in the sector.

 

Sharikat Mubasher conducted an interview with Amr El Abassy, General Manager of EdVentures, on the sidelines of his participation in the fourth edition of the HERizon 2025 Summit, organized by Carerha, a leading platform for empowering women and preparing them for the job market in Egypt and the Middle East. The conversation covered EdVentures’ vision, its support programs, its criteria for selecting startups, as well as its strategic outlook on expansion into the Saudi market and the role of technology and artificial intelligence in shaping the future of education in the Gulf and the wider Middle East.

 

To begin, what is the vision on which EdVentures was founded? How do you view your mission in developing the EdTech sector in Egypt and the region?

EdVentures was launched as the investment arm of Nahdet Misr Group—the largest publishing house and educational content provider in the Arab world and Africa—driven by a clear understanding of the absence of startups that could position themselves as meaningful players in the EdTech sector, at a time when fintech solutions dominated the scene.

The company’s vision is centered on empowering startups in the education sector and creating real social impact through knowledge. This is achieved by incubating entrepreneurs, educating them on the nature of the sector, raising awareness about investment opportunities, and helping them build strong, scalable, and sustainable business models.

The journey began with the launch of a business incubator aimed at encouraging new ideas and raising awareness of the importance of investing in educational technology. Later, EdVentures moved toward direct investment in startups to demonstrate the presence of promising opportunities in this sector and to pave the way for further innovation and growth.

 

What is the total number of startups you have supported and invested in? And what is the current combined valuation of these companies?

EdVentures was among the earliest investors supporting a number of EdTech startups in Egypt and the region. It has invested in companies such as ‘eYouth’, which offers mentoring and guidance services in entrepreneurship and has offices in Saudi Arabia and the UAE; ‘Entreprenelle’, which focuses on empowering women in entrepreneurship; ‘OTO’, which specializes in English-language courses and other training; and ‘iSchool’, which provides programming and artificial intelligence education for children aged 6 to 17.

This early investment gave these companies strong credibility in the market and directly helped them attract further funding. It also enabled them to expand into new regional and international markets, strengthening their position and accelerating their growth significantly.

Today, the EdVentures portfolio comprises around 28 startups, with a combined valuation exceeding $200 million. Many of these companies now operate in more than 20 countries, including eYouth, iSchool, and Sprints.

EdVentures has also played an active role in redefining traditional education by offering a comprehensive educational ecosystem that includes professional skills training, employment programs, programming education, artificial intelligence technologies, and specialized medical education.

 

How do you select the startups you support and invest in? What are the main criteria you look for when evaluating a project idea? And do you offer programs specifically supporting women entrepreneurs?

EdVentures focuses solely on a single sector: education. For that reason, we carefully seek out companies capable of understanding real market problems and presenting practical solutions that address the needs of all stakeholders, while also aligning with governmental policies and national education strategies.

Among the most important criteria for founders is having a clear vision for the future of the company and the ability to create both direct and indirect impact through their projects. We also evaluate whether the business idea has the potential to scale, expand, and remain sustainable. We target companies capable of building strategic partnerships with various stakeholders, particularly in B2B and B2G business models.

Regarding women entrepreneurs, about 45% of the companies in the EdVentures portfolio are led by women. Additionally, the company has supported more than 150 startups in the education sector, benefiting more than 6 million learners, nearly half of whom are women—reflecting the company’s strong commitment to empowering women and educational communities across the region.

 

What are EdVentures’ key programs and initiatives for supporting EdTech startups?

The company has launched an integrated suite of programs and initiatives designed to support entrepreneurs and startups in the education sector, in collaboration with local and global partners. EdVentures began with a series of incubation programs in Egypt, most notably a business incubator in partnership with the Academy of Scientific Research, which provides training, mentorship, and expertise to help startups build sustainable business models.

In terms of accelerators, EdVentures offers a program in collaboration with the Mastercard Foundation, launched last year and renewed annually. Each cycle hosts 12 startups at various stages, with special focus on Seed and Pre-Seed companies. The initiative provides a comprehensive six-month support program, during which each startup receives up to $60,000 in funding. The program allows companies to exchange expertise, enhancing their ability to grow and prepare for future investment rounds.

The initiatives also include a joint program with the Challenge Fund for Youth Employment, combining elements of a venture studio and a venture builder to create job opportunities and support startup expansion in Egypt and regional markets.

Finally, EdVentures plans to launch its own ‘Venture Studio’ in 2026 to offer educational content production and podcast services, providing innovative tools to help startups grow and expand their educational and commercial impact across the region.

 

What are EdVentures’ plans for expanding into the Saudi market? What makes the Kingdom a strategic opportunity, and how do you envision your role in supporting its entrepreneurship ecosystem?

The Saudi market is one of the most promising in the region, thanks to its size and the abundance of opportunities that align with Saudi Vision 2030, which focuses primarily on developing student and graduate skills and directly linking them to labor-market needs.

Saudi Arabia is characterized by a strong readiness among institutions and stakeholders to build strategic partnerships with startups, an important incentive that supports the companies in EdVentures’ portfolio and enables them to expand in this dynamic market.

EdVentures’ approach goes beyond offering venture investments; it also provides integrated operational and strategic support to help startups enter new markets and expand their businesses effectively. This combination of funding and strategic guidance—one of EdVentures’ core strengths—enhances its ability to create tangible and sustainable impact for startups in the Saudi market.

 

How does technology contribute to enhancing the growth of startups, and what are your expectations for the future of EdTech in the Gulf and the Middle East?

Technology plays an essential role in enabling startups to scale more efficiently than traditional models, especially after the COVID-19 pandemic, which accelerated the acceptance of digital learning and the adoption of tech-enabled solutions across all learning stages. This shift created major opportunities for startups to offer innovative educational products and reach broader audiences more quickly and effectively.

Rapid advancements in artificial intelligence have also created powerful tools that help startups build stronger, more sustainable business models through performance analytics, personalized content, digital curriculum design, and intelligent assessment tools that accurately measure student progress and provide tailored learning recommendations.

The success of any startup depends on the entrepreneur’s understanding of how to employ technology correctly, ensuring that digital tools and AI are not merely supplementary but strategic assets that support the company’s goals, drive sustainable growth, and create real impact on education quality and learner experience.

 

What are the most effective ways to enhance cooperation among governments, startups, and the private sector to support the EdTech industry in the region?

In recent years, governments have clearly shifted toward integrating entrepreneurship into educational systems, adopting national strategies that increasingly focus on leveraging technology to enhance educational outcomes and align learning with labor-market needs.

Saudi Arabia stands as a prime example of this direction through Vision 2030, which aims to develop youth skills and expand employment opportunities, offering startups the chance to introduce innovative EdTech solutions that directly support these goals.

In addition, ministries of education and communication across the region have launched a continuous stream of initiatives, creating fertile ground for collaboration among different stakeholders. However, the success of these initiatives depends on the ability of startups and the private sector to take the initiative and provide practical, implementable solutions.

Governments possess the necessary resources and infrastructure, while the private sector contributes innovation and execution speed. When these strengths are combined, the EdTech industry can achieve genuine, sustainable growth that serves future generations and amplifies the impact of education across the region.

 

Translated by: Ghada Ismail

From scarcity to security: how nanotechnology startups cultivate Saudi Arabia’s future

Noha Gad

 

Saudi Arabia faces one of the most severe water scarcity challenges globally due to its extremely arid climate, limited freshwater resources, and a rapidly growing population that is projected to surpass 47 million by 2025, according to figures by the World Health Organization (WHO). According to recent figures by the General Authority for Statistics (GASTAT), the water sector in the Kingdom witnessed significant shifts in 2023, with a 31% rise in desalinated seawater production, now comprising 50% of the Kingdom’s distributed water supply.

With groundwater resources depleting and the per capita household water consumption declining from 112.8 liters per day in 2022 to 102.1 liters in 2023, the Kingdom’s investments in desalination and reuse technologies underscore its commitment to long-term water security. 

These conditions have positioned water security and sustainable agriculture as critical priorities aligned with Saudi Vision 2030's sustainability goals. Thus, nanotechnology startups emerged as pivotal players in addressing water and agricultural challenges in Saudi Arabia. They leverage advanced nanomaterials and nanoscale innovations to transform water treatment, wastewater recycling, desalination efficiency, and precision agriculture techniques. 

By offering promising solutions to optimize water use, improve crop yields, and reduce environmental impact, these startups help Saudi Arabia move toward a water-secure and food-secure future amid harsh natural conditions and growing demand. 

Overall, the nanotechnology market in Saudi Arabia is projected to hit $1.1 billion by 2033, showing a compound annual growth rate (CAGR) of 27.30% between 2025 and 2033, according to recent analytics by the IMARC Group.

 

Nanotechnology in water management

Nanotechnology companies and startups in Saudi Arabia develop cutting-edge nano-enabled filtration and purification technologies that significantly enhance efficiency and sustainability. Such technologies employ nanomaterials and nanostructured membranes designed at the molecular level to capture contaminants more effectively than conventional systems.

The nano-enabled systems minimize energy consumption, up to 80% less compared to traditional treatment plants, and drastically reduce operational footprints by 90%. They also eliminate odors and chemical residues, making treated water safe for reuse in agriculture, industry, and municipal applications. 

For instance, the Ras Al-Khair Power and Desalination Plant stands as the world’s largest hybrid desalination facility, producing both electricity and desalinated water. By integrating nanotechnology in its desalination process, the plant became a model for sustainable water management. Advances in graphene oxide-based nanomembranes are expected to increase the plant's efficiency, reducing energy consumption while improving the purity of the desalinated water.

Additionally, the Saudi Water Authority recently registered a patent for increasing magnesium levels in drinking water using nanotechnology, a pioneering step that strengthens innovation leadership and promotes sustainability. This achievement is expected to enhance the circular economy, promote resource sustainability, and reduce costs. 

Germany’s GI Aqua Tech is one of the leading providers of innovative wastewater treatment solutions in Saudi Arabia. It operates on an innovative pay-per-cubic-meter business model through its subsidiary GI Water as a Service (GI WaaS), enabling accessible and cost-efficient on-site treatment solutions without the need for costly infrastructure. This model supports the circular economy and sustainability goals under Saudi Vision 2030 by maximizing water resource efficiency and combating desertification. Getting its patented G-Nano technology certified by the Saudi authorities, GI Aqua Tech became a pioneer in sustainable wastewater management. This technology reduces energy consumption by 80%, cuts operational footprint by 90%, and eliminates odors, making it highly efficient and eco-friendly.

Another key player is Separation Membranes Innovation (SMI), a Saudi startup specializing in developing and manufacturing high-quality water treatment membranes locally. It utilizes the latest advancements in materials nano-science for superior membrane performance. 

Founded by Saudi researchers and entrepreneurs with deep knowledge of water treatment technologies, SMI provides innovative, high-quality, locally manufactured water treatment membranes and pioneering solutions to address water scarcity challenges across the Middle East and beyond, while establishing Saudi Arabia as a hub for water treatment innovation.

By incorporating real-time monitoring and automation, these companies enable scalable plug-and-play solutions that can be tailored to different sectors, from oil and gas to urban wastewater.

 

Desert Farming

Recent reports by GASTAT revealed that agriculture remained the largest consumer of water, using 12,298 million cubic meters. However, non-renewable groundwater consumption by the agricultural sector dropped by 7% to 9,356 million cubic meters, compared to 10,044 million cubic meters in 2022. 

Saudi nanotechnology companies and startups utilize precision agriculture tools and smart solutions to optimize resource use and improve crop productivity. These companies embedded nano sensors in the soil and plants, enabling real-time monitoring of soil nutrients, moisture levels, and plant health with unprecedented accuracy. The sensors act as an intelligent nervous system for farms, allowing precise, data-driven irrigation and fertilization that reduces water waste and enhances crop yields in the arid Saudi environment. Other innovations, such as nano-enabled fertilizers and pesticides, were designed to release nutrients slowly and target crops more effectively, minimizing chemical runoff and environmental impact. 

For desert farming, some startups integrate nanotechnology with IoT and renewable energy, supporting controlled environments like solar-powered greenhouses that cultivate salt-tolerant, water-efficient crops compatible with Saudi Arabia’s challenging soil and climate. Key players in this field include iyris, Saudi Desert Control, Arable, Saudi Arabian Hydroponic Company (Zarei), and GreenMast. Research institutions like King Abdullah University of Science and Technology (KAUST) also contribute to achieving sustainable agriculture and food security by developing nanotech solutions and improving plant growth and resilience adapted to desert conditions.

 

The role of nanotechnology startups in promoting sustainability and economic growth

By focusing on nano-enabled water treatment and agriculture technologies, these startups help reduce water consumption and pollution, directly supporting Saudi Vision 2030’s environmental and sustainability goals. 

In water treatment, nano-enabled technologies substantially reduce chemical usage, energy consumption, and waste generation. For instance, nano metal oxides act as powerful catalysts and adsorbents that degrade pollutants efficiently in wastewater, enabling cleaner water recycling with minimal environmental impact. Meanwhile, advanced nano-membranes extend membrane lifespans and performance in seawater desalination plants, curbing energy-intensive operations and lowering carbon emissions.

In agriculture, nano-enabled technologies increase overall agricultural productivity, support food security, and reduce import dependence, which benefits the economy.

Economic impacts arise from building a high-tech ecosystem where startups, research institutions, and government initiatives join hands to develop and commercialize nanotech solutions, ultimately accelerating job creation, enhancing local expertise, and boosting exports of advanced materials and sustainable technologies.

Nanotechnology in Saudi agriculture and water sectors faces several challenges despite its promising potential. Technologically, the development and deployment of nanosensors, nano-fertilizers, and nano-enabled water treatment solutions require deep interdisciplinary collaboration across synthetic biology, materials science, agronomy, and data engineering. On the side, fragmented regulations governing nanomaterial use and safety slow down the approval and scale-up of innovative solutions.

Finally, the future for nanotechnology startups in Saudi Arabia’s water and agriculture sectors is promising, although challenges remain. With continuous developments and supportive ecosystem growth, nanotechnology is expected to play a transformative role in securing water resources, enhancing agricultural productivity, and fostering sustainable economic diversification in line with Vision 2030.