The AI Revolution in Saudi Arabia: How Generative AI is Reshaping Key Industries

Mar 25, 2025

Kholoud Hussein 

 

Generative Artificial Intelligence (GenAI) is rapidly transforming industries worldwide, and Saudi Arabia is embracing this technological revolution with strategic vigor. Aligned with the Kingdom's Vision 2030 initiative to diversify its economy beyond oil dependence, GenAI is making significant inroads into various sectors, particularly within the private domain and the burgeoning startup ecosystem. This article explores the sectors most impacted by GenAI in Saudi Arabia, supported by recent data and insights from industry leaders, and discusses potential sectors poised for future transformation.

 

The Rise of GenAI in Saudi Arabia

Under the ambitious leadership of Crown Prince Mohammed bin Salman, Saudi Arabia is positioning itself as a global hub for artificial intelligence. The Kingdom's strategic initiatives, such as "Project Transcendence," aim to attract substantial investments from global tech companies to bolster domestic AI infrastructure, including data centers and startups. This aligns with the broader Vision 2030 plan to diversify the economy and reduce dependence on oil. 

 

The Public Investment Fund (PIF) has announced plans to launch a $40 billion fund to invest in AI, potentially partnering with venture capital firms like Andreessen Horowitz. This initiative underscores the Kingdom's commitment to establishing a robust AI ecosystem, fostering innovation, and attracting global tech leaders to its domestic market. 

 

Sectors Most Affected by GenAI

1. Technology Sector

The technology sector stands at the forefront of GenAI adoption in Saudi Arabia. According to research by Strategy& Middle East, the sector could see an increase in operating profit by up to SAR 15 billion by 2028 through the development and commercialization of new GenAI use cases and the growing demand for advanced hardware and infrastructure. Additionally, Saudi tech firms could streamline their research and development (R&D) capabilities, enhance solution design, and automate internal processes, potentially reducing costs by up to 30%. 

 

2. Media and Entertainment

The media and entertainment sector is poised to benefit significantly from GenAI. The same Strategy& report indicates that this sector could experience an increase in operating profit of up to SAR 6 billion by 2028. GenAI enables firms to develop more original Arabic content, personalize customer experiences, and improve operational capabilities. This advancement aligns with the Kingdom's national agenda to establish itself as a media and entertainment hub. 

 

3. Telecommunications

Telecommunications companies in Saudi Arabia are leveraging GenAI to enhance customer insights and infrastructure utilization. The adoption of GenAI could lead to an increase in operating profit of up to SAR 11 billion by 2028. By analyzing customer behavior, telecom operators can personalize campaigns and enhance cross-selling opportunities, particularly within the small and medium-sized enterprises (SME) market, projected to reach SAR 10 billion by 2028. 

 

4. Healthcare

The healthcare sector in Saudi Arabia is also experiencing the transformative effects of GenAI. Globally, AI is being utilized for predictive diagnostics, personalized treatment plans, and efficient patient management. In Saudi Arabia, integrating GenAI could enhance healthcare delivery, optimize resource allocation, and improve patient outcomes, aligning with the Kingdom's goals to modernize its healthcare infrastructure.

 

5. Finance and Banking

The finance and banking sector is transforming with the integration of GenAI. AI-driven algorithms are enhancing fraud detection, risk assessment, and customer service through chatbots and personalized financial advice. Saudi banks and financial institutions are investing in AI technologies to streamline operations, reduce costs, and offer innovative services to customers.

 

Impact on Startups and the Private Sector

The startup ecosystem in Saudi Arabia is rapidly evolving, with a significant focus on deep tech innovations. A report by the Ministry of Communications and Information Technology, in collaboration with King Abdullah University of Science and Technology, reveals that up to 50% of deep tech startups in the Kingdom are working on artificial intelligence and the Internet of Things (IoT). These startups have collectively secured more than $987 million in funding, reflecting a robust commitment to technological advancement.

 

The number of active startup investors in Saudi Arabia reached 104 in 2023, marking a 41% increase from 2018. Public funds heavily support this expansion, as the government is committed to nurturing tech startups and scale-ups. Furthermore, the number of researchers in the country has risen by 75% since 2015, with plans to expand the research infrastructure to accommodate 140,000 researchers by 2030, up from the current 20,000.

 

Insights from Saudi Officials and Business Leaders

Saudi officials and business leaders are vocal about the transformative potential of GenAI. Richard Attias, CEO of the Future Investment Initiative (FII) Institute, emphasizes the importance of AI in addressing global challenges and fostering inclusive investments. He highlights the role of AI in driving innovation and efficiency across various sectors, aligning with the Kingdom's vision for economic diversification. 

 

The Kingdom's strategic collaborations, such as the partnership between Aramco and Groq to build the world's largest AI inference data center, underscore the commitment to establishing a robust AI infrastructure. These initiatives are part of a broader strategy to position Saudi Arabia as a leader in AI investment, complementing the country's oil wealth and ensuring relevance in the post-oil era. 

 

Potential Sectors for Future GenAI Impact

Beyond the sectors currently experiencing significant GenAI integration, several other industries in Saudi Arabia are poised for transformation in the near future. As the Kingdom continues its AI-driven economic diversification, the following sectors are expected to see increasing disruption and opportunities for growth.

 

1. Automotive Industry

Saudi Arabia’s ambitious plans to establish a homegrown automotive industry, with initiatives such as Ceer Motors, will likely benefit from GenAI. Generative AI can revolutionize vehicle design, predictive maintenance, and supply chain optimization.

  • Generative Design: AI can optimize vehicle components for strength, weight, and fuel efficiency, improving performance and reducing material waste.
  • Smart Manufacturing: AI-powered automation in assembly lines can enhance precision and efficiency while lowering production costs.
  • Autonomous Vehicles: As part of the Kingdom’s Vision 2030 Smart City initiatives (such as NEOM and The Line), GenAI will play a key role in self-driving technology, traffic management, and mobility solutions.

With the Saudi government investing billions into electric and autonomous vehicles, this sector is primed for AI-driven innovation.

 

2. Education and E-Learning

Saudi Arabia has been actively integrating AI into education, with a strong push toward personalized learning experiences and AI-powered content generation.

  • Adaptive Learning Platforms: AI can tailor lessons to individual student needs, ensuring better retention and engagement.
  • Automated Content Generation: GenAI tools can develop course materials, summarize lectures, and even generate interactive quizzes.
  • AI-powered tutoring: Chatbots and AI tutors can provide 24/7 academic support to students across various disciplines.

With the Kingdom investing heavily in digital education platforms, GenAI could redefine the way students and professionals learn in Saudi Arabia.

 

3. Real Estate and Urban Development

The Saudi real estate sector is undergoing rapid expansion, driven by mega-projects like NEOM, Qiddiya, and the Red Sea Project. AI is expected to streamline construction planning, optimize resource allocation, and enhance property management.

  • AI-Generated Architectural Designs: Generative AI can automate building designs, improving efficiency and reducing project timelines.
  • Smart Cities: AI-driven traffic control, energy management, and security systems will play a crucial role in urban development.
  • Property Valuation and Market Predictions: AI-powered analytics can provide accurate real estate forecasts, assisting investors and developers in making informed decisions.

As Saudi Arabia aims to create futuristic, AI-driven urban environments, GenAI will be integral to shaping the Kingdom’s real estate landscape.

 

4. Retail and E-Commerce

Saudi Arabia’s booming e-commerce market, projected to reach $20 billion by 2025, is already leveraging AI for customer experience enhancement and supply chain optimization.

  • Hyper-Personalized Shopping: AI can analyze customer behavior and generate real-time personalized recommendations.
  • AI-powered chatbots: Virtual assistants can handle customer inquiries, recommend products, and process transactions, improving efficiency.
  • Inventory and Logistics Optimization: AI models can predict demand trends, automate restocking, and reduce waste, making supply chains more efficient.

With Saudi startups and enterprises investing heavily in AI-driven retail solutions, the sector is poised for even greater transformation in the near future.

 

5. Energy and Sustainability

As Saudi Arabia transitions toward renewable energy and sustainability goals, GenAI will play a pivotal role in optimizing energy management and reducing carbon footprints.

  • AI-Optimized Power Grids: Machine learning algorithms can predict energy demand, allowing for efficient power distribution.
  • Predictive Maintenance for Renewable Energy: AI can monitor and predict failures in solar farms, wind turbines, and smart grids, reducing downtime and maintenance costs.
  • Sustainable Resource Allocation: AI-driven simulations can optimize water and energy usage across industrial and residential sectors.

Saudi Arabia’s commitment to green energy through projects like the $5 billion NEOM Green Hydrogen plant highlights GenAI's crucial role in the energy sector.

 

Finally, Generative AI is fundamentally reshaping industries across Saudi Arabia, accelerating economic diversification and boosting productivity. While sectors like technology, media, telecommunications, healthcare, and finance have already witnessed significant AI integration, emerging fields like automotive, education, real estate, retail, and energy are set to experience profound transformations.

 

With the Saudi government investing in AI research, local startups, and global partnerships, the Kingdom is on track to become a global AI hub. However, challenges remain in terms of regulation, talent development, and infrastructure, which must be addressed to fully capitalize on GenAI’s potential.

 

As Saudi Arabia continues its digital revolution, AI-powered industries will drive innovation, economic growth, and long-term sustainability, positioning the Kingdom as a leader in the global AI economy.

 

 

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Ground Up Growth: How Greenfield FDI and Startups Are Re-Engineering Saudi Arabia’s Economy

Kholoud Hussein 

 

Greenfield foreign direct investment (FDI) is no longer episodic, it’s compounding. In the first half of 2025 alone, investors announced 203 greenfield projects worth $9.34 billion, a 30% year-on-year jump in project count that underscores Saudi Arabia’s evolving appeal as a platform for new capacity, plants, data centers, and service hubs rather than mere capital transfers or acquisitions. Riyadh leads by a wide margin—100 projects and $2.3 billion—with Dammam (21 projects; $1.28 billion) and Jeddah (13 projects; $1.22 billion) emerging as secondary magnets in a multi-city investment map that policy planners have sought to build since Vision 2030’s launch. 

 

Why greenfield—and why now?

Three policy levers have altered investor behavior. First, regulatory reforms—commercial courts, a modernized civil transactions law, and faster company formation—are gradually reducing transaction friction and legal uncertainty. The Regional Headquarters (RHQ) program adds a powerful demand-side nudge: multinationals that want to win government business now need a Saudi RHQ, helping seed executive talent, procurement, and shared services in the Kingdom. As Investment Minister Khalid Al-Falih noted earlier this year, nearly 600 global firms have committed to an RHQ in Saudi Arabia, well ahead of the original 2030 target. 

 

Second, the Premium Residency framework—expanded in 2024–2025—simplifies long-term settlement for skilled professionals, investors, and founders, including dedicated tracks for entrepreneurs and investors. That matters in greenfield projects where expatriate leadership and specialist technicians must relocate to design, commission, and operate new assets. Applications crossed 40,000 between January 2024 and July 2025, a leading indicator of human-capital inflows tied to investment. 

 

Third, sectoral strategy has become more “bankable.” Industrial policy in advanced manufacturing, logistics, clean energy, and digital infrastructure is translating into investible pipelines. The Ministry of Industry and Mineral Resources reports 1,346 new industrial licenses in 2024, channeling SR50 billion ($13.3bn) of fresh commitments and bringing private investment in industrial cities to SR1.9 trillion—a base that foreign manufacturers can plug into for suppliers, utilities, and land. 

 

The city map: Riyadh ascendant, co-anchors emerge

Riyadh’s dominance in greenfield projects is not accidental. The capital now bundles market access, procurement proximity, and talent density. The once-quiet King Abdullah Financial District (KAFD) is filling with global names—HSBC, Accenture, Goldman Sachs, Morgan Stanley—turning the skyline into substance and giving CFOs and general counsels a neighborhood to recruit from. As one recent analysis put it, regulatory reforms have improved the legal framework even as investors continue to ask for greater clarity across agencies. 

 

But the geography is widening. Dammam channels industrial and energy logistics through the Eastern Province’s ports and suppliers, while Jeddah—with its Red Sea connectivity—pulls in logistics, tourism, and consumer projects. The distribution of project counts and capital across these cities—Riyadh 100; Dammam 21; Jeddah 13—confirms a multi-node investment story rather than a single-city bet. 

 

Greenfield meets startups

The most important complement to greenfield FDI is the startup engine that services, localizes, and extends foreign projects. Saudi venture activity rebounded sharply in 2025: by mid-year, the Kingdom posted a 116% YoY jump in capital deployed and a 31% rise in deal count, matching the UAE for the first time in H1 deal volume. This matters because international manufacturers and digital operators increasingly source innovation from local SaaS vendors, AI integrators, and robotics startups orbiting their plants and offices. 

 

Policy alignment is visible in the Entrepreneur License and the RHQ rules. The entrepreneur track allows qualified foreign founders to set up 100% foreign-owned startups—often as service providers to greenfield entrants—while the RHQ push draws corporate venture arms and innovation budgets into Riyadh. By mid-2025, 550 foreign startups had been licensed under the entrepreneur scheme—up 118% year-on-year—with 364 incubators and accelerators licensed nationwide to help scale them. A founder of a European industrial-AI firm now opening in Dammam put it succinctly at a private investor roundtable: “Our Saudi entity exists because our customers’ Saudi plants now exist”—a network effect where greenfield begets startup formation and vice versa. 

 

Where the projects are going

The sector distribution of H1-2025 greenfield announcements tracks three structural themes:

 

1) Advanced industry and clean tech. With new industrial licenses and utility corridors in place, manufacturers are building for the GCC and wider MENAT region. Chinese-Saudi ties have deepened beyond crude: from 2021 to Oct-2024, China became the top source of greenfield FDI into Saudi Arabia—$21.6 billion—mostly in clean technologies. Expect more battery materials, solar components, and grid-adjacent electronics as localization ratios rise. 

 

2) Digital infrastructure and AI services. RHQ mandates bring CIOs and CTOs closer to Saudi demand centers, driving data center builds, cloud points of presence, and AI integration work. The transition of KAFD from a real-estate project to a functioning financial and advisory hub puts more dealmakers and systems integrators within walking distance—important for multi-year transformation programs.

 

3) Logistics and tourism. Red Sea assets and the Kingdom’s burgeoning visitor economy are catalyzing warehousing, freight forwarding, and destination infrastructure. Greenfield FDI is attractive in these sub-sectors because global operators can standardize formats and import operating playbooks while training local teams to scale.

 

Interactions with executives reveal a pattern. One European mobility CEO whose firm is commissioning a Riyadh assembly facility noted privately that the “RHQ rule changed our cost-benefit analysis—being here is now the default”, adding that proximity to large government buyers reduced bid risk. That sentiment echoes broader coverage that the RHQ rule has become a decisive factor in competitive positioning for contracts. 

 

A US manufacturing executive added that talent visas and premium residency eased the relocation of commissioning engineers—“We used to rotate teams; now we can plant them”—crediting the expanded residency categories for compressing timelines. The sustained influx of premium residency applicants in 2024–2025 supports that operational angle. 

 

Startups as force multipliers

For foreign investors, the Saudi startup scene is a force multiplier, not a sideshow. Corporate innovation managers are now writing local checks to automate back-office functions, deploy industrial IoT, and stand up Arabic-first AI copilots. The rebound in Saudi venture funding in H1 2025 (+116% YoY) provides foreign companies with a denser supplier ecosystem for software and services, reducing vendor concentration risk and enabling pilots to scale faster. 

 

Policy has synchronized on the supply side too. The Entrepreneur License enables 100% foreign-owned tech startups with incubator endorsements or IP/patent credentials—critical for specialist vendors that prefer full control over code and export rights. As that cohort scales—550 foreign startups licensed by mid-2025—large greenfield investors can source more of their localization roadmaps domestically. 

 

Headwinds

Investors are not naïve about risks. Execution complexity on giga-projects, uneven agency coordination, and cost inflation remain top of mind. Reporting in late 2024 and 2025 highlighted delays and scope resets at mega-developments, prompting some boardrooms to stage capital in tranches tied to off-take, permitting, or infrastructure milestones. Officials have framed signature projects like NEOM as “generational investments,” signaling tolerance for long runways while trying to avoid over-promising short-term outcomes. 

 

At the same time, ministers have emphasized macro resilience and non-oil momentum to reassure investors during bouts of geopolitical noise or commodity volatility. In late-2024 remarks, the investment minister argued that non-oil activity has maintained a 4–5% trend since 2017, even as the IMF adjusted near-term growth forecasts due to oil market management. That narrative—stability plus reform—is part of why greenfield decisions are continuing rather than pausing. 

 

What to expect next 

Deal flow broadens beyond Riyadh. Riyadh will remain the anchor, but Dammam and Jeddah should capture rising shares in energy-adjacent manufacturing and logistics/tourism, respectively. The H1-2025 distribution offers a baseline for the next two years as supply chains are rerouted closer to demand and ports. 

 

Premium Residency and RHQ continue to clip friction. With tens of thousands of residency applications and ~600 RHQs already committed, the soft infrastructure for talent mobility and corporate governance is maturing. Each additional RHQ is effectively a funnel for supplier mandates and local procurement that greenfield operators can tap. 

 

Startups become embedded vendors. The 118% annual jump in licensed foreign startups and the 116% YoY leap in H1-2025 venture funding are not cosmetic. They are the early signs of a procurement market where Saudi-based SaaS, AI, and Industry 4.0 firms are preferred partners for localization and Arabic-first adaptation. Expect corporate venture capital and joint labs to proliferate inside KAFD and nearby innovation districts. 

 

Greenfield spreads into services. Not all greenfield is smokestacks. Banks, insurers, and professional services are standing up operating centers and shared-services hubs to serve the GCC, anchored by RHQ mandates and deepening local client rosters. The visible “re-tenanting” of KAFD is one barometer of that pivot. 

 

A founder’s lens

For founders—Saudi and foreign—the opportunity is unusually bidirectional. Greenfield projects create demand-side certainty for B2B startups: quality assurance, maintenance, workflow automation, Arabic NLP, ESG reporting, and workforce upskilling. The entrepreneur pathway enables foreign technologists to establish Saudi-based entities directly; accelerators and incubators—364 licensed as of mid-2025—can mitigate the risks associated with the first year by providing customer introductions and guidance on product-market fit. In turn, startups make foreign factories and service hubs more competitive regionally, helping parent companies justify additional waves of capex. 

 

One Riyadh-based industrial AI founder described the flywheel candidly: “We built for a single multinational plant; six months later we were in four facilities across two cities.” That is what Greenfield looks like when it works: physical assets anchoring software demand, and software compressing time-to-productivity for physical assets.

 

Finally, Saudi Arabia’s greenfield story is not simply about large checks; it is about institution-building that converts checks into capacity, jobs, and exportable know-how. The 203 projects in H1-2025 document momentum; the RHQ numbers document commitment; the startup licensing and venture rebound document optionality. Together, they form the scaffolding of a non-oil economy that investors and founders can model around.

 

Challenges remain—predictability, inter-agency clarity, and global macro headwinds—but the direction of travel is unmistakable. As one policymaker put it on stage in Riyadh late last year, the Kingdom is “resilient and investable” even as it manages near-term oil and fiscal variables. For greenfield investors and the startups that orbit them, the actionable question is no longer if Saudi Arabia fits the strategy. It’s where—Riyadh, Dammam, Jeddah—and how fast.

 

 

Building Bulletproof Startups: Why Crisis Management Is a Founder’s Most Underrated Skill

Ghada Ismail

 

Every founder dreams big. Maybe you want to build the next unicorn, shake up an entire industry, or just prove the doubters wrong. We spend endless hours chasing product-market fit, pitching investors, and running growth experiments. But here’s the uncomfortable truth: none of it matters if your startup can’t survive its first real storm.

And storms will come. That’s where crisis management—an unglamorous but vital skill—quietly decides whether a startup folds or fights through.

 

The Crisis You Don’t See Coming

Startups rarely die from the challenges we expect. It’s the curveballs that sting. A regulator rolls out new rules that wreck your business model. An investor pulls out right before payroll. Your product crashes just as your first big wave of users arrives. Veteran founders know this. They don’t waste energy pretending crises won’t happen. Instead, they prepare, because preparation beats panic every time.

 

Why Founders Don’t Talk About It

Let’s be honest: talking about crisis planning doesn’t sound positive. It feels like admitting weakness. Founders prefer to pitch bold visions, not “what if everything breaks?” scenarios. But the thing is, investors and teams don’t expect perfection; they expect adaptability. A founder who says, “Here’s what could go wrong, and here’s how we’ll handle it,” isn’t sowing doubt. They’re building trust.

 

Building Your Startup’s “Crisis Muscle”

You don’t have to wait for chaos to test you, but you can train for it in the following ways:

  1. Scenario mapping. Write down your top “nightmare” risks. For each, note warning signs, who acts first, and what immediate moves you’d make. That’s your crisis textbook.
  2. Cash contingencies. Know your minimum runway. Keep an emergency cash reserve that you can fall back on when things go wrong, like a sudden drop in sales, a lawsuit, or a supply chain problem. This safety net gives your startup breathing room to survive a crisis and plan the next move. Founders who survive downturns usually made financial discipline a habit long before.
  3. Communication protocols. Don’t wing it when bad news hits. Decide now how you’ll brief your team, investors, and customers. One clear, honest message beats a dozen scattered ones.
  4. Be Ready to Pivot. A crisis can reveal weaknesses in your business model. Use it as a chance to adapt, whether that means adjusting your pricing, changing suppliers, or targeting a new customer group.
  5. Prepare your employees for the worst. Run “what if” rehearsals with your team and prepare them for different scenarios. What if the platform goes down for 48 hours? What if your biggest client walks? This protocol can save your company later.

 

Crises Can Spark Breakthroughs

Crises are tough, but they can also open new doors. In Saudi Arabia, startups like HungerStation and Jahez used the disruption of COVID-19 to adapt fast and secure their lead in the market.

The bottom line: a crisis might show you what’s broken, but it can also point you to opportunities you wouldn’t have noticed otherwise.

 

To Wrap Things Up…

Vision gets people excited to join your journey. Resilience keeps them there when the dream feels shaky. You don’t need to obsess over every disaster scenario, but you do need a framework for how you’ll respond when—not if—the storm comes.

Think of crisis management as founder insurance. Not the glamorous part of the job, but the part that keeps your dream alive. That’s how you build a startup that doesn’t just grow fast, but rather lasts.

 

Your voice, your wallet: The power of voice in seamless financial transactions

Noha Gad 

 

The e-payments have become the backbone of modern commerce as they enable everything from online shopping and bill payments to peer-to-peer money transfers and business-to-business transactions. The adoption of e-payments has surged in recent years thanks to their convenience, speed, and security features, such as tokenization and biometric authentication. Both businesses and consumers benefit from the ability to make instant or near-instant payments anytime and anywhere with minimal friction, setting the foundation for a cashless economy. 

Voice payments emerged as one of the latest innovations in the broader e-payments ecosystem. They allow users to perform financial transactions simply by speaking commands to voice-enabled devices like smartphones, smart speakers, or virtual assistants such as Amazon Alexa, Google Assistant, and Apple Siri. 

Voice payments leverage artificial intelligence (AI), natural language processing (NLP), and voice recognition to interpret spoken instructions, authenticate users, and process payments seamlessly without the need for physical interaction with devices. By saying commands, users can enjoy a faster, more convenient, and hands-free transaction experience.

This type of payment integrates with payment gateways and banks behind the scenes to complete these transactions securely, often using voice biometrics and multi-factor authentication to ensure safety.

 

How do voice payments work?

To conduct financial transactions via voice, users must follow few steps:

       *Activation: users activate their voice assistant by saying a wake word or opening a voice payment app and tapping the microphone button.  

       *Instruction: the user clearly states their payment command, specifying the action, the recipient, and the amount to be paid or transferred.

       *Voice recognition and processing: The voice assistant captures the spoken command and converts it into text using voice recognition technology. NLP algorithms then interpret the intent and details of the transaction.

       *Authorization: The assistant securely communicates with the user’s linked financial accounts to authorize the transaction. 

       *Authentication: Security steps, such as voice biometrics, passcodes, or multi-factor authentication, may be required.

       *Transaction processing: Once authorized, the payment instructions are transmitted to the payment service provider, which verifies the details and transfers the funds between accounts.

       *Confirmation: The user receives confirmation via voice feedback or on-screen notification.

 

Although voice payments offer great convenience and innovation in the digital payment space, they also come with several significant challenges and concerns that must be addressed for widespread adoption and trust. This includes:

       *Security risks. The risk of unauthorized transactions grows, as voice commands can be accidentally or maliciously triggered on voice-enabled devices.

       *Privacy. Voice payment systems collect sensitive data, including voice recordings and biometric profiles. Thus, protecting user privacy through secure storage, encryption, and adherence to data protection regulations is critical.

       *Accuracy. Voice recognition still faces challenges regarding accuracy, especially in noisy environments or with diverse linguistic accents and speech patterns.

       *Integration and standardization. The lack of universal standards makes it difficult to integrate voice payments across different devices and platforms. 

 

Future outlook

The future of voice payments is promising, driven by the rapid growth and transformative innovations that are expected to reshape the way consumers and businesses make financial transactions.  The voice payments market is expected to grow significantly, driven by key trends, including advanced biometric authentication, AI-powered personalization, and the integration of blockchain technology.

With the rising popularity of voice assistants and smart devices, along with consumers’ increasing comfort with voice commands, voice payments are expected to become an integral part of daily financial activities. This shift reflects a broader trend toward more natural, seamless, and user-friendly interactions in digital commerce. 

As voice payment technology matures, it will offer unprecedented convenience, enabling users to conduct transactions with simple spoken commands anytime and anywhere. Businesses and financial institutions are poised to leverage these technologies to streamline payment processes, reduce friction, and engage consumers more effectively.

Finally, voice payments are set to become a mainstream, trusted method of payment, fundamentally changing the way society conducts financial exchanges in the upcoming years.

AI-First Startups: The New Blueprint for Innovation

Kholoud Hussein 

 

In the evolving landscape of global entrepreneurship, a new breed of companies is taking center stage: AI-first startups. Unlike traditional businesses that adopt artificial intelligence as an enhancement or add-on, AI-first startups are built on the premise that artificial intelligence is not just a tool but the very foundation of their business models. These startups are not simply using AI to optimize; they are reimagining entire industries by placing algorithms, data, and machine learning at the core of their value proposition.

 

What Makes a Startup “AI-First”?

The distinction between AI-enabled and AI-first is subtle yet transformative. An AI-enabled company might apply machine learning to streamline existing processes, such as automating customer service or improving logistics. An AI-first company, however, is designed with AI as its primary engine of value creation. Its products and services would not exist without AI capabilities—whether it’s predictive healthcare platforms that detect diseases before symptoms emerge, or financial tools that automate lending decisions in real time.

 

This orientation requires more than just technology adoption; it demands a mindset shift. Founders of AI-first startups begin by asking, “What problem can AI solve that humans alone cannot?” From there, the business model, operational structure, and customer interactions are built around the unique strengths of artificial intelligence.

 

The Competitive Edge of AI-First Models

Placing AI at the center offers several advantages. First, AI-first startups benefit from exponential scalability. Algorithms learn, improve, and adapt at a speed no human team can match, making it possible to handle vast data volumes and complex decisions with minimal incremental costs.

 

Second, these companies often create high barriers to entry. Proprietary data sets, refined models, and constant feedback loops mean that competitors without the same AI infrastructure face difficulty catching up. Consider the healthcare AI startup that trains on millions of patient records; its predictive accuracy becomes more robust over time, creating defensible value.

 

Third, AI-first startups are positioned to unlock entirely new markets. In sectors like education, AI tutors can scale personalized learning experiences to millions of students simultaneously. In agriculture, machine-learning models enable precision farming that boosts yields while conserving resources. In finance, algorithm-driven startups are redefining credit scoring, wealth management, and fraud detection.

 

Challenges on the AI-First Journey

Yet the AI-first path is far from frictionless. Building such companies demands heavy upfront investment in data infrastructure, talent, and computational resources. Unlike conventional startups that can bootstrap with minimal technology, AI-first ventures often require specialized machine learning engineers and access to high-quality datasets—both of which are scarce and costly.

 

Moreover, questions around trust and transparency loom large. Customers, regulators, and investors increasingly demand explainable AI. Startups that fail to demonstrate ethical standards risk reputational damage and regulatory pushback. Data privacy and security are also paramount, as breaches or misuse can dismantle consumer confidence overnight.

 

Another challenge lies in the talent war. Skilled AI professionals are among the most sought-after globally, and early-stage companies must compete with tech giants that can offer far greater compensation. Startups that succeed often do so by creating mission-driven cultures that attract talent motivated by the impact they can make, rather than salary alone.

 

Why Investors Are Paying Attention

Despite challenges, investors are flocking to AI-first startups. The global surge of funding into generative AI is a testament to the belief that these companies will shape the next decade of innovation. For venture capitalists, the appeal lies in the asymmetry of outcomes: the potential to back companies that can dominate entirely new categories.

 

A McKinsey report estimates that AI could contribute up to $4.4 trillion annually to the global economy. Startups that position themselves at the frontier of this transformation stand not only to capture market share but also to dictate the rules of new industries.

 

The Future Belongs to the AI-First

As industries across the world digitize, the difference between surviving and thriving may come down to how deeply companies embed artificial intelligence into their DNA. AI-first startups are not waiting for incumbents to lead the way; they are rewriting the script entirely.

 

For founders, this represents both an opportunity and a responsibility: to leverage AI in ways that solve real-world problems, create equitable growth, and maintain trust. For investors and policymakers, the rise of AI-first startups signals a paradigm shift—one where the most valuable companies of the future may not just use AI but will exist because of it.

 

Salasa.. A Saudi fulfillment platform revolutionizing e-commerce and logistics in GCC

Noha Gad

 

In the heart of the Middle East, Saudi Arabia is positioning itself as a global logistics hub, supported by strong government backing, extensive infrastructure development, and ongoing reforms in laws and regulations. The National Industrial Development and Logistics Program (NIDLP) aims to enhance the performance of logistics hubs and improve local, regional, and international connectivity across trade and transport networks, leveraging the Kingdom’s strategic location as the crossroad of three continents.

Tech-powered platforms like Salasa are revolutionizing traditional logistics by integrating advanced digital tools with deep market expertise, redefining speed, transparency, and operational efficiency.

As one of the leading e-commerce fulfillment platforms in Saudi Arabia, Salasa connects businesses to a sophisticated fulfillment network, turning complex logistics into seamless customer experiences.

 

To explore this transformation, Sharikat Mubasher interviewed Salasa’s founders, Hasan Alhazmi and Abdulmajeed Alyemni, to learn more about the platform’s business model, innovative offerings, and its role in transforming the logistics industry in Saudi Arabia.

Alhazmi, who also serves as Salasa’s CBO, shared insights into the platform’s evolution from a 3PL delivery provider to the logistics partner of choice for over 1,000 merchants, having fulfilled and shipped more than 50 million products domestically and internationally since inception.

 

First, what motivated you to establish Salasa? And what are the key logistics challenges that the platform addresses? 

Salasa began as a simple 3PL company delivering e-commerce orders by car and motorcycle. When one of our clients faced challenges with picking and packing, we stepped in to handle it. That light bulb moment revealed a clear opportunity: fulfillment could be offered as a dedicated service. My partner and I left our jobs at the time to build that model from the ground up.

From those first few shipments, we have grown into a network that has fulfilled over 50 million products, built on the belief that merchants should be able to scale without being weighed down by operational complexity. Today, our high-speed dark stores and mega fulfillment centers solve the exact pain points we saw in those early days: slow delivery times, fragmented courier options, and the cost burden of running in-house logistics. We combine that infrastructure with smart technology to give merchants what they need most: speed, reliability, and the ability to grow without limits.

 

How did Salasa enhance its products and services to transform the e-commerce logistics industry in Saudi Arabia? 

We are focused on building an infrastructure and technology ecosystem that work seamlessly together. 

On the physical side, we expanded to 15 dark stores and three mega fulfillment centers, ensuring we can reach the majority of customers in Saudi Arabia within hours, not days. 

On the technology side, we are rolling out solutions that automate courier selection, further optimize delivery routes, detect upcoming merchant campaigns, and predict inventory needs based on demand trends.

These tools will give merchants more control and visibility. No more guesswork. Merchants can track their orders in real time, anticipate stock needs, and respond to demand spikes with confidence. Over time, this combination of speed, transparency, and flexibility will raise the bar for what merchants expect from a logistics partner in the region.

 

How does Salasa uphold exceptional customer experience and operational excellence as it scales? 

Operational excellence at Salasa is embedded in every process we design. Our systems are built to minimize errors, cut delivery times, and ensure clear communication at every stage, with tools like voice AI proactively confirming pickups and deliveries for seamless coordination. 

As we scale, we avoid the common drop in service quality by investing heavily in technology and monitoring, staying close to the market, and listening to our customers. By identifying gaps, addressing bottlenecks, and acting quickly on feedback, we maintain the reliability merchants depend on and the on-time delivery customers expect, every single time.

 

For his part, Co-founder and CEO Alyemni shared more about the company’s growth strategy and his thoughts about the future of the logistics and e-commerce landscape in Saudi Arabia and the wider region. 

 

You successfully raised a $30 million Series B round. What motivated investors to invest in Salasa? And how will this fresh capital support your expansion plans?

Investors were drawn to Salasa because we have proven the model at scale. Salasa is not a gamble; it is a winning bet. We have built one of the fastest fulfillment networks in the region, backed by a proprietary tech stack that is actively redefining how e-commerce logistics operates. We have shown consistent growth, high merchant retention, and an ability to expand without compromising service quality.

 

This new capital allows us to move faster on three fronts:

*Infrastructure – expanding our network to handle higher volumes and cover more geographies.

*Technology – accelerating the development of our tech stack, from smart courier routing to predictive inventory positioning and automated merchant workflows.

*Talent – bringing in specialized expertise to strengthen our capabilities in operations, technology, and market expansion.

 

The goal is simple: to scale without losing the precision and quality that define Salasa today.

 

What are the new markets or segments that Salasa targets as part of its growth strategy? 

We are pursuing growth in three main ways: 

 

First, by deepening our presence in Saudi Arabia, reaching merchants in every major city, and scaling infrastructure to handle growing order volumes.

 

Second, by expanding into select GCC markets where there is clear demand for tech-enabled fulfillment.

 

Third, by enabling cross-border trade (inbound and outbound), which allows local sellers to seamlessly reach customers in new international markets, while also enabling global brands to enter Saudi Arabia with faster, more cost-effective delivery.

 

Beyond geography, we are also broadening our service offering, monetizing our proprietary Order Management System (OMS), and introducing adjacent solutions like omni-channel inventory management, AI-powered product content optimization, and campaign recommendations. These expansions position Salasa to serve merchants end-to-end, whether their customers are across the city or across borders.

 

How do you see the logistics and e-commerce fulfillment landscape in Saudi Arabia and the broader GCC region? 

Logistics in the region is moving away from fragmented, courier-led models to integrated fulfillment. Strong economic growth and major infrastructure investments are accelerating that shift. With E-commerce trade surging, Saudi Arabia alone sees over 250 million shipments a year, and higher incomes and connectivity will push that number higher.

Merchants are also changing how they operate, focusing on building their brands and products, while leaving logistics to specialized, tech-driven partners like Salasa. This shift is raising the bar for speed, reliability, and visibility, turning logistics from a challenge into a competitive advantage.

 

In your opinion, what are the key trends and innovations that shape the Saudi logistics sector? And how can cloud-powered and data-driven technology transform this promising sector? 

There are three major trends shaping the sector right now. First is the rise of instant delivery. Same-day and even two-hour windows are becoming more common in urban centers. Second is the growth of cross-border e-commerce, which brings both opportunities and operational complexity. Third is the deeper integration of AI and automation into every logistics function.

Cloud-powered and data-driven systems are the enablers here. They let us unify operations that were once fragmented, including warehousing, courier management, and inventory positioning, and run them as a single, intelligent network. When you layer in AI, you can anticipate demand, route orders in the most cost- and time-efficient way, and even optimize how merchants present their products online. This is how logistics moves from being a cost center to being a driver of growth.