Can Saudi Arabia become a leading global fintech hub?

Sep 15, 2025

Kholoud Hussein 

 

Over the past few years, Saudi Arabia has managed to take the lead and take advanced steps to boost the fintech sector and develop it into a flourishing industry marked by rapid growth, diversifying services, and increasing contribution to its national economy. Yet, the kingdom is facing challenges to become a leading global fintech hub. 

 

Key players 

 

In April 2018, the Saudi Arabian Monetary Authority (SAMA), in collaboration with the Saudi Capital Markets Authority (CMA), kickstarted the nation’s fintech growth journey with the launch of Fintech Saudi, an initiative aimed at cementing KSA’s position as the leading fintech hub in the MENA (Middle East and North Africa) region. Fintech Saudi continuously strives to boost, support, and represent the fintech industry in KSA through initiatives such as its Accelerator program, Career Fair, Fintech Tour, and the Summer Sessions. Since the launch of Fintech Saudi, there has been a 20-fold increase in the number of fintechs operating in the kingdom. Over SAR 4 billion ($1 billion) has been invested into fintech companies in KSA, and over 100,000 people have engaged in fintech-related events, training courses, and internships organized by Fintech Saudi.

 

According to a recent report by Arthur D. Little, the development and approval of the national fintech strategy in May 2022 marked the next stage of fintech development for KSA. The strategy was based on six pillars:

 

  1. Developing KSA as the fintech hub for the Middle East
  2. Creating a regulatory environment supportive of growth and innovation
  3. Funding for start-ups
  4. Training and skill enhancement
  5. Accelerating support infrastructure
  6. Driving local and international collaboration

KSA’s Vision 2030 plan for fintech has four key objectives, constituting clear milestones toward its aspirations of being a global fintech leader: 

 

  1. Establish at least 525 fintech companies (versus 200 in 2023)
  2. Open 18,000 fintech job opportunities (versus around 5,400 in 2023)
  3. Account for $13.3 billion in direct GDP (versus around $1 billion in 2023)
  4. Achieve $12.2 billion in direct venture capital (VC) contributions (versus $1.4 billion in 2023)

The number of fintech companies in KSA more than doubled in one year, from 89 in 2022 to ~200 in 2023. This impressive growth has been catalyzed by a range of measures to stimulate innovation, with three in particular standing out:

 

  1. Fintech Saudi: The establishment of Fintech Saudi was a catalyst for change, leading to such measures as the Fintech Accelerator program, the Fintech Saudi Innovation Hub, an online fintech directory, regulatory enhancements in collaboration with SAMA, and various flagship events (e.g., Fintech Tour and hackathon)
  2. Fintech Regulatory Sandbox: The SAMA-established sandbox allowed controlled live testing of fintech innovations, facilitating a smooth transition to the open market
  3. Start-up funding: Various financial-support mechanisms have been deployed in the Saudi fintech ecosystem, some of which are industry-agnostic. For example, the Saudi Venture Capital Company (SVC), supported by CMA and the Financial Sector Development Program (FSDP), launched a SAR 300 million fund focused on fintech start-ups and plans to invest SAR 6 billion more into start-ups and SMEs across other sectors.

 

So far, SVC has invested in 35 VC funds, which have facilitated over 900 deals and SAR 1.9 billion in investments. The Saudi National Technology Development Program (NTDP) has launched the Technology Development Financing initiative that supports start-ups with debt funding.

 

Key progress areas

 

The report pointed out that the three key areas illustrate the major progress already made in KSA fintech: digital payments, alternative financing, and financial product aggregation.

 

For digital payment, the kingdom embarked on a journey to transform society to be less dependent on cash transactions. A cornerstone was the FSDP, which played a pivotal role in introducing new players to the financial services landscape. According to the Saudi Vision 2030, there is a plan to escalate the proportion of non-cash transactions to 80% by 2030, a significant leap from its 18% baseline in 2016.

 

The fintech landscape has been enriched through collaborative synergies between Saudi Payments and fintech companies. Among the various developments, digital wallets, local transfers, QR code payments, and SADAD system bill payments stand out as the most prominent. According to data released by SAMA, digital wallet usage has seen an exponential rise from 315,000 in 2018 to 17 million by 2022, representing over half of KSA’s population. In 2018, bank transfers were the primary method for topping up these wallets, accounting for approximately 70% of all top-ups. However, by 2022 around 80% of top-ups were being made via debit or credit cards.

 

On the other hand, the alternative financing sector, particularly “buy now, pay later” (BNPL) and debt crowdfunding, has emerged as the second-largest fintech subsector in Saudi Arabia, trailing only behind Saudi Payments. This growth reflects a shift in consumer and business financing preferences, increasingly leaning toward more flexible and accessible options than traditional banking models.

 

Debt crowdfunding has become a vital avenue for financing, especially for small and medium-sized enterprises (SMEs) facing challenges in securing traditional bank loans. The platforms operating now in KSA offer a streamlined digital process for businesses to sell invoices and secure funding, alleviating cash flow issues and aiding growth.

 

As reported by SAMA, the investor base in the KSA crowdfunding market has seen significant growth, from 302 in 2019 to over 92,000 in 2022. These investors have collectively issued over 1,800 loans worth more than SAR 1.1 billion since 2019, with about SAR 770 million in loans disbursed in 2022 alone.

 

Challenges 

 

Saudi Arabia’s fintech landscape is still young and nascent. It does not have the deal flow we see in Egypt, the advantage of Bahrain’s long experience in financial markets, nor the pull of the UAE’s ecosystem, whose financial landscape is also further ahead in terms of crypto and blockchain regulations.

 

Talent is also a big issue. A report from Fintech Saudi shows that hiring qualified talent was the main obstacle for 40% of fintech startups, followed by regulations at 37%, then access to customers/customers testing at 28%.

 

In addition, there is a gap in Saudi Arabia, like most of the other countries in the region, between the education system and work requirements. Universities need to bridge this gap by preparing students for the labor market in different tech spaces. 

 

Further, the kingdom’s startup ecosystem is still young, and attracting talent requires hefty salaries that most startups cannot afford. It still lags behind Dubai as a hub for global companies and talent, while processes tend to be more laborious and time-consuming. Riyadh and Jeddah both lack the quality of life that has proven to be so crucial for attracting talent and that is visible in the makeup of the fintech sector in the country. According to recent data, 80% of the fintech startups operating in Saudi Arabia are headquartered in the kingdom and are founded primarily by Saudi entrepreneurs.

 

However, the Saudi government has made its intentions very clear – it wants a diversified economy where entrepreneurs, startups, and innovators should be able to flourish. If it continues to progress in its current trajectory, Saudi Arabia certainly has the potential and capacity to become the best market for fintech for many reasons, including the spending capabilities of the population, the advancement of the financial sector, and the progression of the regulator.

 

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How AI Is Reshaping Saudi Arabia’s Mining Sector

Ghada Ismail

 

Mining is no longer a background industry in Saudi Arabia’s economic story. As the Kingdom works to reduce its dependence on oil, mining has moved to the forefront of its diversification agenda. Under Vision 2030, the sector is being positioned as the third pillar of Saudi Arabia’s industrial economy, standing alongside oil and petrochemicals. According to the Ministry of Industry and Mineral Resources, the Kingdom’s untapped mineral wealth is valued at more than SAR 9.3 trillion, including gold, copper, phosphate, bauxite, rare earth elements, and other critical minerals that are increasingly essential to the global energy transition and advanced manufacturing.

 

This push comes at a moment when global demand for minerals is accelerating, driven by renewable energy technologies, electric vehicles, and the digital infrastructure powering modern economies. Saudi Arabia sees an opportunity to establish itself as a major global mining hub. But turning geological potential into long-term value is not straightforward. Mining in harsh desert environments, often far from major population centers, is capital-intensive and operationally complex. Staying competitive requires smarter, safer, and more sustainable ways of working.

 

This is where artificial intelligence is beginning to change the game.

Across the mining value chain, AI is emerging as a powerful enabler, spanning early-stage exploration to daily operations, safety management, and environmental monitoring. By embedding AI into mining processes, Saudi companies are improving productivity, cutting costs, and making faster, better-informed decisions. At the same time, this shift is opening the door to a broader innovation ecosystem, drawing in startups, research institutions, and technology providers eager to help shape the future of mining in the Kingdom.

 

AI in Exploration and Operations

Mineral exploration has always been a high-risk, high-cost endeavor. Traditional methods rely on years of geological surveys, drilling campaigns, and lab analysis, often with no guarantee of a viable discovery. AI is helping tilt the odds.

Machine learning models can now process vast volumes of data—satellite images, geophysical surveys, and decades of historical records—to identify patterns that would be nearly impossible for humans to detect. These systems can flag promising areas for exploration with greater accuracy, allowing companies to focus their investments where the likelihood of success is highest and avoid unnecessary drilling.

 

Saudi Arabian Mining Company (Ma’aden), the Kingdom’s flagship mining firm, has been actively exploring AI-driven tools to enhance exploration and resource modeling. By integrating advanced analytics into its workflows, Ma’aden has improved its ability to assess ore quality, estimate reserves, and shorten exploration timelines, making investment decisions more efficient and data-driven.

Once a mine is operational, AI continues to deliver value. Autonomous equipment and robotics are increasingly taking on tasks that were once labor-intensive and dangerous. Self-driving haul trucks, AI-assisted drilling systems, and automated processing plants are enabling more consistent, around-the-clock operations with reduced human exposure to risk.

Downtime is another costly challenge in mining. AI-powered predictive maintenance systems help address this by continuously monitoring equipment performance through sensors and real-time data feeds. Instead of reacting to breakdowns after they happen, operators can anticipate failures, schedule maintenance in advance, and extend the life of critical machinery. The result is lower operating costs and more reliable production.

 

Back in 2023, a notable initiative in this context is Ma’aden’s partnership with OffWorld, which develops AI-driven swarm robotic systems for autonomous mining tasks. These robots can perform repetitive or hazardous operations with minimal human intervention, enhancing safety and operational precision while enabling fully automated mining workflows in the Kingdom.

AI is also transforming ore processing and refining. Intelligent systems can adjust processing parameters on the fly based on the composition of incoming ore, improving recovery rates while reducing waste. For Saudi Arabia, where maximizing the value of each extracted resource is central to long-term sustainability, these efficiencies are particularly important.

 

AI in Safety and Sustainability

Mining will always carry inherent risks, but AI is helping make worksites safer and more controlled. Advanced monitoring systems now allow operators to oversee conditions across vast and often remote mining sites in real time.

AI-powered cameras, drones, and computer vision tools can detect structural weaknesses, monitor equipment behavior, and flag unsafe practices before they escalate into serious incidents. Video analytics, for example, can identify whether workers are complying with safety protocols, helping reduce accidents without relying solely on manual supervision.

Automation also plays a role in safety. Remote-controlled and autonomous machinery reduces the need for workers to operate in high-risk environments such as deep underground tunnels or extreme heat zones. This not only lowers accident rates but also improves precision and operational consistency.

Environmental sustainability is another area where AI is making a tangible impact. Mining can place heavy demands on water, energy, and land resources, especially in arid regions like Saudi Arabia. AI-driven systems help companies monitor and manage these impacts more effectively.

Water optimization tools analyze usage patterns in processing plants and recommend ways to reduce consumption without compromising output. Energy management systems adjust power usage in response to operational needs, cutting waste and lowering emissions. Satellite imagery and drone-based monitoring enable companies to track land rehabilitation efforts, detect pollution risks early, and ensure compliance with environmental regulations.

These capabilities align closely with Saudi Arabia’s broader sustainability ambitions and its goal of setting higher standards for responsible mining.

 

Industry Ecosystem and Opportunities

The rise of AI in Saudi mining is not just benefiting large corporations. It is also creating space for startups, technology firms, and research institutions to play a meaningful role.

Lithium Infinity (Lihytech), for example, a Saudi mining tech company, is developing advanced lithium extraction solutions, targeting minerals essential for batteries and the global energy transition. While AI is not yet native to their operations, these technologies are highly compatible with AI-driven optimization and automation.

Incubated by King Abdullah University of Science and Technology (KAUST), Lihytech represents a growing ecosystem where innovation meets industrial needs. With government programs supporting AI adoption and workforce development, startups like Lihytech have a chance to bridge technology gaps and accelerate the Kingdom’s journey toward smart mining.

Opportunities are emerging in areas such as geological data analytics, drone-based surveying, autonomous systems, and digital twins—virtual replicas of mining operations that allow companies to simulate scenarios, test improvements, and optimize workflows without disrupting live operations.

 

Challenges Are Still Ahead

At the same time, where the field is rich in opportunities, challenges remain. One of the biggest is data fragmentation, with geological and operational information often spread across disconnected systems. Startups specializing in data integration and AI compatibility could play a key role in bridging these gaps.

Workforce readiness is another hurdle. As mining becomes more data-driven, demand is growing for skills in AI, automation, and digital systems. Training platforms, simulation tools, and AI-enabled upskilling solutions will be essential to preparing the next generation of mining professionals.

Government support is helping accelerate this transition. The Ministry of Industry and Mineral Resources has been actively promoting digital transformation across the sector, while programs under Vision 2030 aim to localize mining technologies and encourage collaboration between miners and tech providers. Initiatives such as the Saudi Geological Survey’s National Geological Database are improving access to critical mining and geological data, enabling researchers, investors, and industry players to make more informed decisions. The National Industrial Development and Logistics Program (NIDLP) is supporting the sector by fostering innovation, local technology adoption, and integration across industrial value chains. Meanwhile, the Kingdom’s National Strategy for Data and AI, led by SDAIA, provides a strong framework for adopting AI technologies across industrial sectors, including mining, helping drive digital transformation and long-term competitiveness under Vision 2030.

 

Recent Industry Milestone
The sector’s momentum was highlighted at the fifth Future Minerals Forum, held in Riyadh in January 2026, which drew over 21,500 participants from governments, investors, and technical experts worldwide. The forum, themed “Dawn of a Global Cause,” showcased Saudi Arabia’s growing role as a hub for responsible mineral development and innovation. Over the course of the event, participants signed 132 agreements and memoranda of understanding worth approximately USD 26.6 billion, covering exploration, financing, R&D, innovation, and sustainability initiatives. Key recommendations emphasized accelerating the adoption of advanced technologies, strengthening regulatory frameworks, expanding investment incentives, and fostering global collaboration to secure resilient and sustainable mineral supply chains. The forum’s outcomes underline the Kingdom’s commitment to both technological innovation and long-term sustainability in mining.

 

Conclusion

Artificial intelligence is rapidly reshaping Saudi Arabia’s mining sector, changing how minerals are discovered, extracted, and processed. By improving exploration accuracy, streamlining operations, enhancing safety, and strengthening environmental stewardship, AI is helping the industry overcome long-standing challenges.

Beyond operational gains, AI is also catalyzing a broader innovation ecosystem, creating new opportunities for startups, technology providers, and research institutions to contribute to the Kingdom’s mining ambitions. Backed by government support and growing private sector investment, Saudi Arabia is steadily building a smarter, more resilient mining industry.

As global competition for critical minerals intensifies, the Kingdom’s AI-driven approach offers a compelling model for sustainable and technology-led resource development. By combining vast mineral resources with advanced digital capabilities, Saudi Arabia is not just diversifying its economy but also redefining what modern mining can look like in the decades ahead.

Will agentic commerce define Saudi Arabia's next economic leap?

Noha Gad

 

Commerce worldwide is entering a new era where artificial intelligence (AI) agents not only assist but also act. Agentic commerce represents a fundamental shift from manual clicks to autonomous, goal-driven systems that can reason, plan, and transact on behalf of users. Unlike traditional automation, AI agents operate through a complete cognitive cycle: possessing goals, memory, and specific instructions, offering enormous potential for companies to transform their operations as never before. Agentic AI represents a sophisticated framework with tools and protocols that enable intelligent systems to interact seamlessly with other systems, agents, and humans. 

In Saudi Arabia, the e-commerce sector is booming. According to recent figures by the Saudi Central Bank (SAMA), online spending via Mada cards surged to SAR 90.9 billion in the fourth quarter (Q4) of 2025. This growth is driven by a young, tech- savvy population and extensive Internet access. In recent years, the retail experience has been transformed by the move from cash to digital payments. The emergence of agentic commerce in Saudi Arabia will bring an era of hyper-personalized, automated shopping experience, where AI agents can anticipate needs, show the best choices, restock essentials, and manage purchases in real time.

“Agentic commerce could be highly rewarding for retailers ready to seize its opportunities and efficiencies. Merchants that act now will put themselves in a strong position to prosper,” said Rob Cameron, Global Head of Visa Acceptance Solutions. In his recent article, Cameron highlighted the Kingdom’s efforts to embrace new shopping ways. In 2024, non-cash retail transactions in the Kingdom reached 79%, surpassing Vision 2030’s target of 70%. He emphasized that Saudi residents are likely adopt agentic commerce with the same enthusiasm, highlighting that the challenge for merchants will not just be to deliver the goods, but to do so in ways that keep both human and silicon shoppers coming back.

 

How it works

Saudi Arabia views agentic AI as a booster for the national economy, as SDAIA’s ALLaM model and HUMAIN localizing tech for different industries, notably e-commerce. Agentic commerce in the Kingdom centers on AI agents autonomously managing shopping, payments, and supply chains, triggered by Vision 2030's digital economy goals and high non-cash transaction rates. AI agents execute full shopping journeys, from need anticipation and deal negotiation to payments, shifting from shopper-led to agent-led processes with human oversight at key points such as approvals. For merchants, those agents enable hyper-personalization, restocking, fraud detection, and back-office tasks, such as invoicing, ultimately bolstering customer engagement via chatbots and recommendations. 

Saudi Arabia is an ideal proving ground for agent-driven cross-border commerce, thanks to a combination of national payment strategies, digital infrastructure readiness, and regulatory ambition, represented in fintech sandboxes. 

Unlike traditional e-commerce, where shoppers manually execute every step, agentic commerce transforms the shopping process into agent-led execution, where AI agents handle tasks autonomously on the user's behalf, according to predefined instructions, only waiting for human approvals on final steps like payment or substitutions. Additionally, agentic systems elevate AI to proactive autonomy, using shopper constraints to add items to carts, negotiate deals, or resolve issues, such as out-of-stock swaps, adapting in real-time via APIs. 

 

Agentic commerce could be highly rewarding for Saudi retailers across several key areas:

  • Double revenue and conversion growth. AI agents can boost cart conversions and reduce cancellations through proactive interventions like real-time guidance and deal negotiations.
  • Enhance operational efficiency. By automating inventory management, dynamic pricing, and catalog updates, AI agents minimize manual effort and enable real-time decisions, ultimately cutting inventory costs.
  • Improve customer experience. Hyper-personalization at scale fosters loyalty by anticipating needs, guiding multi-channel journeys, and handling post-purchase support, shortening decision cycles.
  • Prevent fraud and reduce risks. Real-time fraud detection via agent verification and cryptographic checks secures payments, while backend agents manage settlements.

 

Challenges and Concerns

The path to implementing agentic commerce in Saudi Arabia presents distinct challenges that must be carefully addressed for successful adoption:

  • Regulatory and compliance hurdles. Retailers face challenges in encoding SAMA and Zakat, Tax and Customs Authority (ZATCA) regulations into AI agents to ensure autonomous transactions comply with local payment rules, such as Mada authentication, without human intervention. Data sovereignty demands under SDAIA guidelines require agents to process Arabic data locally, complicating cross-border remittances flow; thus, merchants must adapt application programming interface (APIs) for agentic access, as traditional sites risk invisibility to AI shoppers scanning for real-time pricing and stock.
  • Technical integration and adoption barriers. Legacy systems hinder agent integration, with many Saudi small and medium-sized enterprises (SMEs) lacking open APIs for dynamic pricing or inventory. Additionally, reskilling the human workforce could be a major challenge for merchants transitioning from manual e-commerce to overseeing autonomous systems. 
  • Consumer trust. Successful adoption of agentic commerce in Saudi Arabia hinges on overcoming key barriers to consumer trust, which stem from privacy risks, accountability gaps, and a lack of transparency. These issues require specific, proactive mitigations.
  • Privacy concerns. Autonomous agents require extensive user data, raising fears about compliance with the SDAIA's Personal Data Protection Law and general data security.
  • Accountability gaps. Errors in agent-led transactions create ambiguity over liability, demanding updates to frameworks to address non-human actors.
  • Transparency and bias. A lack of clarity in AI decisions, coupled with risks of cultural bias in Arabic-language models, fails to meet the expectations of mobile-savvy Saudi consumers accustomed to manual control.

 

The question is not whether agentic commerce will arrive in Saudi Arabia, but whether it will become the defining force of the Kingdom's next economic chapter. The foundations are certainly strong: a booming digital payments infrastructure, a strategic national vision actively promoting technological adoption, and a young, mobile-first population eager for innovation. The potential rewards for Saudi retailers are transformative, enabling doubled conversion rates, streamlined operations, and an unprecedented hyper-personalized customer experience that builds lasting loyalty. 

The future of agentic commerce in Saudi Arabia hinges on navigating critical challenges: regulatory integration, technical interoperability, and, above all, building robust consumer trust.

Ultimately, the trajectory of agentic commerce in the Kingdom will be decided by a strategic collaboration between retailers, regulators, and technologists to build an agentic future that is not only efficient and profitable but also secure, trustworthy, and authentically aligned with Saudi consumer values. 

One Early Yes Can Change Everything: The Anchor Investor Effect

Ghada Ismail

 

In startup fundraising, cash is important, but momentum is everything. That’s why the first serious “yes” in a funding round tends to carry a significant weight. This is the investor everyone talks about, references in meetings, and quietly relies on to unlock the rest of the round. That investor is known as the ‘Anchor’.

An anchor investor is usually the first major backer to commit money to a round. But their role goes far beyond the size of their check. By stepping in early, they help shape how the round is perceived, how fast it moves, and how confident other investors feel jumping in. In many cases, their commitment is the moment a fundraising round shifts from theoretical to real.

 

What an Anchor Investor Actually Does

It’s easy to assume the anchor investor is simply whoever wires money first. In reality, they often play a much more active role. Anchors frequently help set expectations around valuation, influence how the round is structured, and sometimes even guide early governance decisions.

Once a credible anchor is on board, conversations with other investors tend to change overnight. Instead of asking whether the startup is worth backing, they start asking how much room is left in the round—and how quickly they need to move.

 

Why Anchor Investors Matter to Startups

Fundraising isn’t just about numbers on a spreadsheet. It’s about confidence. For early-stage startups, an anchor investor provides validation at a time when there may not yet be enough data, revenue, or scale to speak for itself.

That early vote of confidence can shorten fundraising cycles, reduce back-and-forth, and give founders more leverage at the table. Just as importantly, it saves time, allowing founders to focus on building rather than endlessly pitching.

And the value doesn’t stop at capital. Strong anchor investors often help founders sharpen their story, challenge assumptions, and make key introductions. Over time, many become trusted partners rather than distant names on a cap table.

 

What Anchor Investors Look For

Because anchor investors move first, they also take on more risk. That’s why they tend to be selective. At early stages, they’re often betting less on perfect metrics and more on the people behind the company. A capable founding team, a real problem worth solving, early signs of traction, and a believable growth story usually matter more than polished dashboards.

Equally important is alignment. Anchor investors want to believe in where the company is headed and feel comfortable backing that vision, not just now, but over multiple rounds.

 

Is an Anchor Investor Always Necessary?

Not every startup needs an anchor investor to raise capital. Some early rounds come together through angels, friends of the founders, or small checks that add up organically. But as rounds get bigger—particularly at Seed and Series A—having an anchor becomes increasingly helpful.

For founders, the key lesson is simple: an anchor investor isn’t about prestige or name-dropping. It’s about trust. The right anchor doesn’t just help you close a round, but helps create the momentum that carries your startup forward.

How hybrid funds unlock balanced wealth in volatile markets

Noha Gad

 

Investment is a fundamental pillar of wealth building that enables people to grow their money far beyond the limits of standard savings. Amid today’s economic uncertainties, smart investors seek strategies that balance risk and reward. This approach not only preserves capital but also positions portfolios for sustainable long-term gains.

Hybrid funds emerge as a compelling solution within this landscape, combining the growth potential of equities with the stability of debt instruments. Unlike pure equity funds that ride market highs and lows or debt funds focused solely on steady income, hybrid funds offer a diversified mix of stocks, bonds, or other fixed-income assets. This combination aims to deliver moderate returns while cushioning against volatility.

Professionally managed within the mutual fund framework, these funds dynamically adjust allocations based on market conditions, such as shifting toward debt during downturns or equities in bull markets. 

 

What are hybrid funds?

A hybrid fund is an investment fund that diversifies among multiple asset classes, such as stocks and bonds, to provide a balanced risk and return profile. These funds aim to deliver a diversified portfolio through a single investment, making them accessible and appealing to many investors. They may also be known as asset allocation funds.

It often attracts investors who are interested in spreading risk across different asset types while maintaining efficiency. Common variants include balanced funds and target-date funds, each designed with specific investment goals and strategies.

Balanced funds are made up of both stocks and bonds, expressed as a fixed percentage. The investment objective is to achieve a mixture of growth and income. They usually attract investors with low risk tolerance who are looking for a mixture of safety, income, and modest capital appreciation.

Target-date funds, also known as lifecycle funds, invest in multiple asset classes for diversification. They differ from standard hybrid funds in that they start with riskier investments for growth potential and gradually shift to more conservative options. Portfolio managers use the set time frame to plan investments based on a long-term strategy. This strategy relies on riskier stocks in the early years, moving gradually toward fixed-income investments like bonds in later years.

 

Reasons to invest in hybrid mutual funds

Hybrid mutual funds offer a balanced approach by mixing equities and debt. Key benefits include:

       - Asset diversification: Spreading investments between volatile stocks and stable bonds minimizes overall portfolio risk. This built-in balance suits investors wary of pure equity swings, providing smoother performance over market cycles in some regions.

       - Professional management: Fund managers adjust allocations dynamically to market shifts. This expertise eliminates the need for individual asset selection, making it ideal for busy professionals focused on long-term goals

       - Accessibility for beginners: Low minimums via systematic investment plans (SIPs) allow easy entry without large upfront capital. This democratizes diversified investing, enabling young savers to build habits early through automated contributions tied to apps popular in the region's digital finance ecosystem.

Despite their appeal, hybrid funds can have different challenges, notably:

       - Market sensitivity: The equity component remains exposed to stock market downturns, pulling overall returns lower during broad sell-offs. Even balanced funds experience notable declines during equity corrections

       - Interest rate risk: Rising rates devalue debt holdings, as bond prices inversely correlate with yields, impacting conservative hybrid values.

       - Liquidity limitations: During market stress, funds may impose redemption gates or limits, trapping capital when investors need it most. This contrasts with more liquid individual savings options.

       - Expense ratios: Annual fees gradually reduce compounded returns over time. This highlights the need to compare costs against passive alternatives.

For those seeking a moderated path to long-term financial growth, hybrid funds stand out as a compelling, structured, and resilient option for any well-rounded portfolio. These funds present a strategic middle ground for investors seeking a single, professionally managed vehicle that balances growth and stability. By integrating asset diversification with dynamic management, they offer a pragmatic solution for building wealth over time, particularly for those with moderate risk tolerance and long-term financial goals. While they provide significant advantages, such as built-in asset allocation, accessibility through SIPs, and adaptive management in shifting markets, investors need to consider major challenges.

Beyond import: Cultivating world-class fresh produce ecosystem in Saudi Arabia

Noha Gad

 

Saudi Arabia’s agricultural sector contributed $31.5 billion to the Kingdom's gross domestic product (GDP) in 2024, triggered by rising production and initiatives that strengthened food self-sufficiency. According to recent official data from the Ministry of Environment, Water, and Agriculture, total agricultural and food production exceeded 16 million tons in 2024, reflecting progress toward building resilient, sustainable food systems.

Despite almost 90% of the country being desert, Saudi Arabia is undergoing a remarkable transformation, actively expanding domestic crop production and reducing reliance on imports, cultivating a future where fresh, locally-grown produce is a cornerstone of its economy and food security. This shift is central to the ambitious goals of Saudi Vision 2030, which prioritizes self-sufficiency and economic diversification.

Historically dependent on imports to meet its population's needs, the Kingdom now views its fresh produce sector as a strategic priority. According to figures published by the General Authority for Statistics (GASTAT), total imports of crops in the Kingdom reached 18.7 million in 2024, an increase of 10.8% compared to 2023. Additionally, the cultivated area of open-field vegetables reached 89,700 hectares, with a production volume of 2.7 million tons in 2024, marking an increase of 8.4% compared to 2023. 

Evolving landscape of Saudi fresh produce

The structure of Saudi Arabia's fresh produce market is experiencing a fundamental change, transitioning from a model of heavy import reliance to one of strategic local empowerment. For many years, the majority of fruits and vegetables consumed within the Kingdom were imported from global sources. Guided by the objectives of the National Agriculture Strategy, this sector is shifting as substantial public and private investments target a significant increase in domestic production capacity.

Saudi Arabia is emerging as a surprising leader in advanced agricultural technologies, moving decisively beyond water-intensive practices toward a model defined by precision, control, and data-driven intelligence. From vast, climate-controlled greenhouses to sophisticated vertical farms, the nation is redefining what is possible in desert agriculture. At the heart of this agricultural revolution is the strategic adoption of cutting-edge technologies. Innovations in controlled environments, automation, and water conservation are building a resilient foundation for growth. Crucially, Artificial Intelligence (AI) is now being deployed as the central nervous system of this modern sector, optimizing every aspect from seed to harvest.

Key technologies bolstering the industry

Today, the Saudi fresh produce sector is enabled by various advanced technologies that contribute to creating optimal growing conditions while conserving water resources. These technologies include:

  • Controlled Environment Agriculture (CEA). Structures such as high-tech greenhouses and indoor vertical farms use automated systems to precisely manage temperature, humidity, light, and carbon dioxide levels. Within them, advanced irrigation and fertigation systems, such as automated drip networks, deliver water and nutrients directly to plant roots. This method eliminates waste and provides crops with an ideal, consistent climate year-round, independent of the harsh external desert conditions.
  • Smart water management. Systems employing sophisticated sensor networks can monitor real-time soil and plant moisture data. Also, advanced wastewater treatment and recycling technologies are becoming standard, ensuring that every drop is used multiple times within a closed-loop system to maximize conservation.
  • Automation and Robotics. They play a pivotal role in increasing the scale and precision of farming operations. From automated seeding and planting robots to autonomous drones that scout fields for pests, technology is handling repetitive and labor-intensive tasks. Additionally, post-harvest, automated optical sorters and packing lines use sensors to grade produce by size, color, and quality at high speed.

 

Main applications of AI in the fresh produce industry

Along with the previously mentioned technologies, AI emerged as the central intelligence that optimizes them all. By processing vast amounts of data from sensors, drones, and satellites, AI algorithms generate actionable insights, moving the sector from reactive management to proactive decision-making. Key applications of AI include:

  • Predictive analytics and precision farming. AI models analyze historical climate data, real-time sensor readings, and plant physiology to forecast optimal growing conditions. AI-powered computer vision by drones and cameras captures detailed imagery, which AI software scans to detect early signs of disease, pest infestation, or nutrient deficiencies.
  • Smart automation and resource optimization. Machine learning algorithms dynamically adjust irrigation schedules and nutrient delivery in real-time based on plant needs and evaporative demand, achieving unprecedented water and fertilizer efficiency. 
  • Supply chain and post-harvest processes. AI can predict market demand fluctuations, helping to align harvest schedules with pricing trends and reduce waste. In packing facilities, AI-powered vision systems perform consistent, high-speed grading and sorting, ensuring only produce meeting strict quality standards proceeds.

 

Despite significant technological progress, the growth of Saudi Arabia's high-tech fresh produce sector faces different challenges. The initial capital investment required for advanced greenhouses, AI systems, and automation remains substantial, potentially limiting access for smaller-scale farmers. Additionally, the energy demands of controlled environment agriculture, particularly for cooling and lighting, present an ongoing operational cost and sustainability consideration. Success also depends on developing a skilled local workforce with expertise in data science, agronomy, and tech maintenance, requiring continued investment in specialized education and training programs.

Finally, Saudi Arabia’s fresh produce sector reflects a broader national transformation under Vision 2030. By strategically deploying controlled-environment agriculture, precision water management, and intelligent automation, the Kingdom has turned its agricultural challenges into a catalyst for innovation. Harnessing cutting-edge technology and forward-thinking policy will enable the Kingdom to secure its food future while contributing to a more sustainable and innovative model of agriculture.