Ghada Ismail
 

The way we pay is changing. Again! From magnetic stripes to chip cards, mobile wallets, and wearables, each wave has brought more convenience and speed. Now, the next frontier may be something far more innate: the human palm.

Palm recognition technology, once confined to high-security settings, is making its way into everyday finance. With a simple wave of the hand, users can authorize payments, verify their identity, and access services with no phone or card required. Tech giants like Amazon have already introduced palm-scanning systems across retail, entertainment, and even healthcare. Pilots are also appearing across Asia and the Middle East, including rising interest in Saudi Arabia and the GCC.

As digital economies seek faster, safer, and more inclusive payment options, palm biometrics offer a compelling solution. But they also raise valid questions around privacy and surveillance. Is this frictionless future a leap forward—or a little too close for comfort?

Either way, the next era of financial access may be closer than we think—literally in the palm of our hands.

How Palm Recognition Works
Palm recognition systems use near-infrared light to scan the unique vein patterns beneath the skin; an internal signature nearly impossible to forge. The data is encrypted and stored securely, often in cloud-based environments. During authentication, users simply hover their palm over a scanner, and the system matches the scan to their registered biometric template in under a second.

Amazon has been a leading adopter with its “Amazon One” system, which combines palm and vein imagery for high-accuracy authentication. The technology integrates with existing payment networks like Visa and Mastercard, allowing users to link their palm to a digital wallet or bank account.

Fintech Use Cases Around the World

Amazon One in Whole Foods and Beyond

• Retail Rollout: Amazon One is now active in more than 500 Whole Foods Market locations across the U.S., following a nationwide expansion completed in 2023.
• Airports & Venues: The technology is also in use at major airports and sports stadiums, including retail outlets in U.S. terminals and venues like Coors Field.

Healthcare Innovation at NYU Langone Health

• In March 2025, NYU Langone Health began rolling out Amazon One for patient check-in, offering a contactless alternative at its clinics and hospitals.

International Developments

• Singapore: At the 2024 Singapore Fintech Festival, Tencent and Visa jointly piloted palm-based payments. After a one-time registration, customers were able to pay with their palm at participating cafes.
• China: In Beijing, passengers on the Daxing Airport Express Line can use palm recognition via WeChat Pay to enter the metro—no cards or phones required.

These examples show that palm biometrics are no longer experimental. They're entering the mainstream.

Why Fintech Is Embracing the Palm

Palm biometrics offer a mix of advantages that appeal to fintechs and users alike:

• Speed: Authentication is virtually instantaneous, reducing queues and wait times.
• Security: Vein patterns are internal and highly resistant to spoofing, offering stronger protection than fingerprints or facial recognition.
• Hygiene: Fully contactless, palm scanning is ideal for public environments—especially post-pandemic.
• Accessibility: Palm authentication offers a device-free option for people without smartphones or physical cards, improving financial access.

These benefits are especially relevant in emerging markets and among unbanked populations, where biometrics can play a crucial role in digital inclusion.

The Privacy Debate

Despite its promise, palm recognition raises valid privacy concerns. Since vascular patterns are immutable, a breach of biometric data could have long-lasting consequences.

Amazon states that palm data captured by Amazon One is encrypted and stored securely in the AWS Cloud, emphasizing that it is not shared with government agencies or advertisers. While this commitment offers some reassurance, privacy advocates remain cautious. The lack of universal regulation on biometric data storage, retention, and usage leaves room for concern—particularly in countries without strong consumer protection frameworks.

Building public trust will require transparency, user consent mechanisms, and robust oversight.

Regional Innovation: Palm Tech Expands Across the Middle East and Africa
In the Middle East and Africa, palm recognition is gaining traction beyond global tech giants. IDCentriq, a leader in biometric authentication, participated at Seamless Middle East 2025, held from 20–22 May at the Dubai World Trade Centre, where the company unveiled its ePalm palm-vein authentication technology, designed for secure, contactless identity verification in government and financial sectors.

Ali AlMeshal, CEO of PaymentsCo for the GCC, a regional subsidiary of IDCentriq, said: “Adopting technologies like ePalm will be crucial in fostering consumer confidence and driving growth in the digital payments landscape across the GCC.”

Led by Executive Chairman and CEO Muhanad Azzeh, IDCentriq is positioning ePalm as a homegrown solution tailored for the region’s shift toward cashless economies and digitally integrated public services.

Saudi Arabia’s Palm Vein Scanner Market Gathers Momentum

In Saudi Arabia, the palm vein scanner market is gaining traction as demand grows for secure, contactless biometric authentication across key sectors like healthcare, finance, and government, according to a report issued by 6wresearch in 2023. The technology’s ability to provide precise, tamper-resistant identity verification using subdermal vein patterns makes it particularly appealing in a country prioritizing advanced security infrastructure.

The Covid-19 pandemic accelerated adoption, as institutions sought hygienic, touch-free solutions for access control and identity management. Today, palm vein scanners are increasingly being deployed in high-security environments and customer-facing applications where trust and privacy are paramount.

Still, challenges remain, particularly around ensuring accuracy, public acceptance, and robust data protection. Key players active in the Saudi market include Fujitsu, Hitachi, and M2SYS Technology, all offering solutions tailored to the Kingdom’s growing need for scalable, secure authentication systems.

The Road Ahead

Palm recognition is still novel, but its rapid global rollout suggests it's more than a passing trend. As companies like Amazon expand internationally, and as fintechs across Asia and the Middle East chase frictionless user experiences, palm biometrics are emerging as a serious contender in the future of digital identity.

In Saudi Arabia and beyond, the next big step in financial access may require nothing more than a wave of the hand.

No card. No phone. Just a palm.

Noha Gad

Arabic is one of the world’s most significant languages, with around 491 million speakers globally as of 2025. This makes it the fifth most spoken language worldwide and the fourth most used language on the internet. Being one of the oldest living languages, the Arabic language is spoken in 22 countries, primarily across the Middle East and North Africa (MENA) region, with additional recognition as a co-official language in countries like Chad and Eritrea.

Despite its broad reach, Arabic presents unique linguistic challenges for artificial intelligence (AI) and natural language processing (NLP) as it is characterized by a complex morphology, rich grammar, and a high degree of diglossia. It also has 25 distinct dialects, ranging from Gulf Arabic and Levantine Arabic to Maghreb and Egyptian Arabic, each with its own phonetic and lexical variations.

This diversity makes it hard for AI systems to accurately understand and generate Arabic text and speech, requiring sophisticated models that can navigate both classical and colloquial forms.

The localization of Arabic AI has become a strategic imperative in Saudi Arabia as the Kingdom moves towards its Vision 2030, not only adopting technology, but also leading the creation of it. 

The convergence of Arabic’s linguistic significance, its inherent complexity, and the Kingdom’s push for technological leadership sets the stage for transformative developments in Arabic AI and NLP. These technologies are not only crucial for enhancing digital communication and services but also for enabling local businesses to thrive in an increasingly digital and globalized economy. 

Saudi Arabia’s efforts to lead the creation of Arabic AI

Recognizing these challenges and the strategic importance of Arabic AI, Saudi Arabia has positioned itself as a regional leader in driving advancements in Arabic language technology. National strategies, such as the National Strategy for Data and AI (NSDAI), play a pivotal role in placing the Kingdom among the world’s top AI economies by 2030. Launched by the Saudi Data and AI Authority (SDAIA) in 2020, NSDAI aims to capitalize on data and AI for the Kingdom economically and socially through national combined efforts by all stakeholders. 

Through this initiative, the Kingdom aspires to build the foundation for competitive advantage in key niche domains in 2025, and compete on the international scene as a leading economy, utilizing and exporting data and AI by 2030.

Key objectives of NSDAI also include attracting investment worth SAR 75 billion in data and AI, and transforming the Saudi workforce with a steady local supply of more than 20,000 data and AI specialists and experts.

SDAIA also collaborated with NVIDIA to launch ALLaM, Saudi Arabia’s first-of-its-kind chat application that chats and responds to users' inquiries in Arabic. The application offers reliable information in all fields and provides updated summaries and suggestions on various topics. Furthermore, the authority partnered with global tech giants, such as IBM and Microsoft, to enhance the deployment of ALLaM.

King Salman Global Academy for Arabic Language (KSGAAL) is another key player in advancing Arabic AI in the Kingdom. In 2024, it launched the Arabic AI Center, the first specialized AI center for automated Arabic language processing. The center is dedicated to enhancing Arabic content in the fields of data and AI, and making it more competitive globally while driving research, applications, and capabilities in AI and the Arabic language.

The Arabic AI Center targets empowering researchers and developers to harness advanced technologies for processing the Arabic language through five advanced labs: Linguistic and AI Modeling Lab, Data Preparation and Linguistic Resources Lab, Virtual and Augmented Reality Lab, Audio and Visual Processing Lab, and Researcher Workspace Lab.

How Arabic AI and NLP empower local businesses?

Industry Applications

The applications of Arabic AI and NLP span various fields. For instance, AI-powered chatbots and virtual assistants can enhance customer services by providing personalized and dialect-aware support, improving user satisfaction and accessibility. In retail and e-commerce sectors, sentiment analysis and feedback mining help businesses understand customer needs and trends.

Finance companies, such as Mozn, harness Arabic NLP engines to advance fraud detection, compliance, and risk management. Additionally, Arabic AI and NLP can promote e-government in Saudi Arabia by enhancing communication and faster, clearer interactions for citizens navigating government portals.

Economic and Social Impact

• Boosting local content. Advancing Arabic AI and NLP tools can increase the availability and quality of Arabic digital content across various sectors.
• Inclusivity and digital literacy. Arabic-first AI tools ensure broader access and participation in the digital economy. 
• Entrepreneurship and innovation. Local developers and startups leverage Arabic AI to build hyper-localized solutions, fostering a vibrant tech ecosystem.

Arabic AI and NLP are projected to deliver substantial economic benefits to the Kingdom over the coming decade. According to PwC, AI could contribute 12.4% of GDP (around $235 billion) by 2030, underscoring the transformative potential of AI across multiple sectors of the Saudi economy. Additionally, the Saudi Ministry of Communications and Information Technology (MCIT) suggested that with a 20% annual growth in the AI market, Saudi Arabia’s GDP is projects to see an uplift of 0.6% above baseline growth by 2030.

On the employment front, AI’s impact is nuanced but promising. While simulations indicate that about 20.5% of current jobs could be automated, the potential for new job creation exceeds this at 23%, leading to a net employment increase of roughly 2.5% by 2030. Saudi Arabia currently focuses on training and certifying thousands of AI specialists to keep pace with this trend, aiming to build a workforce capable of sustaining and expanding the AI ecosystem. Additionally, Arabic AI and NLP are driving significant social transformation by enhancing accessibility, inclusivity, and cultural relevance in digital interactions. 

Key Challenges

• Linguistic diversity and complexity. The complex morphology and rich grammar of the Arabic language pose significant hurdles for AI development. The language features dozens of dialects, requiring AI models to be dialect-aware for authentic communication. Also, Large Language Models (LLMs) must be trained to think in Arabic, not just translate from English or other languages, to capture cultural and linguistic nuances effectively.
• Data scarcity and quality. Although Arabic is the fourth most spoken language in the world, it accounts for less than 1% of internet content. Many existing Arabic LLMs rely heavily on English data, which reduces their efficacy in handling complex Arabic reasoning and dialects. Saudi initiatives, such as ALLaM, play a pivotal role in building large, culturally relevant Arabic datasets to overcome this scarcity.
• Strategic sovereignty and ethical considerations. Building sovereign Arabic AI models is instrumental to ensure that AI systems reflect regional values, cultural norms, and legal frameworks. The Saudi Vision 2030 emphasizes AI sovereignty, promoting models trained on local data governed by regional laws to maintain trust and autonomy.

Saudi Arabia is rapidly advancing toward becoming a global leader in Arabic AI and NLP, driven by its ambitious Vision 2030 and substantial investments in AI infrastructure and talent development. The Kingdom accelerates its efforts to expand generative AI capabilities specifically tailored for Arabic content, including dialectal and classical forms.

The development of sovereign Arabic LLMs like ALLaM, integrated into global technology platforms and supported by advanced data centers powered by the Kingdom’s unique energy resources, positions Saudi Arabia as a regional powerhouse and a significant player on the global AI stage. 

Ghada Ismail

Lean Technologies has become one of the standout players in MENA’s fintech space, building the infrastructure that helps businesses offer modern financial services. With its latest funding round, the company is entering a new chapter, focused on expanding its reach, deepening partnerships, and shaping the region’s Open Finance future.

In this interview, Mehdi Tazi, Chief Operating Officer at Lean, shares with Sharikat Mubasher what the company’s latest milestone means for its next phase, how it’s supporting everyone from early-stage startups to large enterprises, and why MENA’s fintech landscape is capturing global attention.

1. Lean’s recent $67.5 million Series B is one of the largest fintech raises in the region. What does this milestone represent for the company’s next phase?

It marks a significant step forward in our journey. We’ve spent the last few years building critical infrastructure, earning trust, and laying the groundwork for Open Finance in the region. With this raise, we’re accelerating product development, expanding regional coverage, and helping more businesses embed modern financial services into their platforms. We’re here to lead this next chapter, responsibly and at scale.

When we started Lean 5 years ago, we were struck by the lack of fintech penetration in the Middle East and inspired by the immense potential to create a unified fintech infrastructure platform that can reduce barriers to entry. We aspired to make financial data sharing seamless and accessible, while enabling instant, low-cost payments. Today, we have connected over one million user accounts and processed more than $2 billion in transactions and thanks to the support of forward-thinking regulators in the UAE and KSA, the region is leading the way with open banking standards that unlock amazing new possibilities.

2. What makes fintech in the MENA region an attractive investment opportunity for leading investors like Sequoia and General Catalyst, and what does their involvement say about the region’s venture capital landscape?

Fintech in MENA is evolving quickly and the fundamentals are stronger than ever. In Saudi Arabia, the number of licensed fintechs has grown from 89 in 2022 to over 200 by mid-2024. In the UAE, fintech accounted for nearly 40% of all venture funding in H1 2024, making it the region’s most heavily backed sector. That kind of year-on-year growth reflects a market that’s no longer catching up, it’s building from the ground up.

At the same time, the underlying infrastructure hasn’t kept pace. Demand for modern financial experiences is rising, but legacy systems are still holding many businesses back. That’s where Lean comes in, and why investors like Sequoia, General Catalyst, and Bain Capital are here.

Their involvement isn’t just a vote of confidence in Lean. It signals that global investors see MENA as one of the few regions where foundational fintech infrastructure is still being built, where companies can define the rails, not just build on top of them. That’s the opportunity, and that’s the bet.

3. How does Lean’s API platform reduce barriers to entry for fintech founders across MENA?

Historically, founders in MENA had to navigate months of bank integrations and fragmented infrastructure before launching a product. Lean removes that friction. With one secure API, businesses can access real-time bank payments and financial data without compromising on compliance or user trust.

Careem moved from costly card payments to seamless A2A bank transfers using our infrastructure. DAMAC sped up its payment processing by 24x, reducing wait times from hours to minutes to improve its collections process.

We are not just providing APIs. We are removing technical and regulatory barriers so that fintech teams can build meaningful solutions that help people manage money more efficiently and transparently.

4. How do you adapt your offering for large enterprises versus emerging fintechs?

At Lean, we start with the same powerful platform, but we shape how we deliver it around the needs of each customer.

Emerging fintechs are often looking to move quickly and experiment. They value speed, flexibility and a partner who can help them build fast. Larger enterprises, on the other hand, look for depth. They need systems that are secure, scalable and able to work smoothly within their existing set-up.

What makes the real difference is not just the technology, but the people behind it. We do not hand over a product and step away. Our teams work closely with our customers, helping them integrate the platform, adapt workflows, and get real value from day one. We bring the care and attention you would expect from a trusted partner, not just a provider.

This hands-on approach means our customers never feel left on their own. Whether it is a fintech launching something new or a major enterprise rolling out across regions, we are right there with them, making sure the solution fits, performs and grows with them.

Everything we do is shaped by one belief - when our customers succeed, so do we.

5. You’ve now processed over $2 billion in transactions through your platform. What operational strengths or strategic decisions helped you achieve that scale?

From day one, we focused on building payment infrastructure that solves real business problems; instant settlement, lower fees, and improved reliability, making payments viable at scale. While some businesses accepted bank payments, they faced slow, non-instant payments and spent hours on reconciliation, limiting their ability to scale. Others needed instant payment options but lacked a reliable alternative to costly card payments.

Our first priority was to digitize and streamline this flow, replacing legacy systems with an account-to-account payment experience that is instant, reliable and cost-effective. This was not just about improving efficiency. It was about creating a genuine alternative to legacy payment systems. At the same time, we invested in reliability, compliance and transparency so our clients could scale on a platform built for long-term trust. This focus on practical value and operational resilience is what enabled us to reach more than $2 billion in transaction volume. More importantly, it’s what allows our clients to scale with confidence.

6. With more than a million accounts connected via secure APIs, what does this tell us about user trust and the adoption of financial connectivity in MENA?

It tells us that users are ready, as long as the experience is built the right way.

Connecting a financial account is a high-trust action. We have spent years refining our consent flows, strengthening our infrastructure, and working closely with regulators to make that process as seamless, secure and transparent as possible.

The result is clear. More than one million accounts have been connected through Lean. That shows people are open to trying new financial experiences when the value is obvious and the infrastructure feels trustworthy.

We are also seeing strong engagement with our clients. For example, more than 50% of users on platforms like Sarwa, the all-in-one investment platform, choose to pay via Lean. That level of share of wallet shows not just adoption, but real trust and stickiness.

And it goes beyond convenience. For some of our clients, Lean is helping to drive genuine financial inclusion. Many expats arrive in the region with little or no credit history. Because we can help underwrite them using bank data, they can now access financial services they might have struggled to get before. We have seen this impact within our own team, where access to financial services has transformed individual lives. It is not just meaningful, it is personal, and it matters.

7. Lean supports over 300 companies across sectors, from ride-hailing to e-commerce and real estate. How are you tailoring your offering to serve such a broad client base?

We take a customer-first approach. Our strength lies in understanding the pain points and building infrastructure that solves them. Whether it is a digital wallet, a ride-hailing app or a property developer, we begin by focusing on the core problems rather than promoting product features.

Let's take Tabby as an example. They needed a better way to approve users with limited credit history. Credit bureau data wasn’t cutting it, and manual uploads were too slow. With Lean, they connected directly to customers’ bank data, improving approval rates by 8.9%, unlocking 50% more high-risk users, and reducing default risk by 4x.

e& money was dealing with high card fees and poor payment conversion. We helped them move to instant A2A payments, eliminating the card layer, saving $800,000 a year, and doubling customer return rates.

Tawuniya’s pain was operational. Claims were delayed due to manual verification and misrouted disbursements. We automated the process end-to-end, cut disbursement time by 50%, and helped them reach a 94.8% transaction success rate.

These outcomes are the result of targeted infrastructure solving real business problems in a scalable, measurable way.

8. What advice would you offer to startup teams building products in heavily regulated spaces like financial infrastructure?

Regulation is not an obstacle. It is part of the product. In a space like ours, trust and compliance are fundamental. My advice is to build for scale from day one. That means getting the right controls in place early, staying close to regulators, and understanding the operational implications of every decision you make. Moving fast is important, but moving responsibly is what keeps you in the game long-term.

9. What strategic priorities will define Lean’s next phase of growth?

We’re focused on three things: expanding our payments and data infrastructure, deepening adoption across key sectors, and supporting the market as Open Finance comes into shape.

The opportunity is significant. In MENA alone, the Arab Monetary Fund projects Open Finance to grow from $1.65 billion in 2022 to nearly $12 billion by 2027. As countries like the UAE and KSA move from policy to implementation, businesses are looking for partners who can help them adapt and build.

We’ve spent the past five years doing exactly that: building trusted infrastructure, integrating with banks, and working closely with regulators. Today, we’re helping over 300 enterprise clients like Careem, DAMAC, and e& money go live with real-time payments, account verification, and secure data access.

With the growing momentum, we’re well positioned to lead this next phase and scale impact across the region.

Kholoud Hussein 

As climate change accelerates, its economic ramifications are becoming impossible to ignore—even for oil-rich economies like Saudi Arabia. Rising temperatures, declining water reserves, desertification, and coastal vulnerabilities are no longer abstract forecasts but present-day threats that affect food security, industrial productivity, public health, and long-term fiscal stability.

According to estimates by the World Bank and the Arab Forum for Environment and Development, climate-related damages could reduce MENA’s GDP by up to 14% by 2050 if left unaddressed. For Saudi Arabia, which is heavily reliant on energy exports and vulnerable to extreme heat, the stakes are particularly high. The economic cost of inaction could be measured not only in terms of direct environmental damage but also in lost investment, hindered diversification, and rising mitigation costs in the future.

In response, Saudi Arabia has positioned itself at the center of the region’s green transition. From the ambitious Saudi Green Initiative to national investments in renewables, hydrogen, and sustainable infrastructure, the Kingdom has launched a series of strategic programs aimed at decarbonizing key sectors while preparing for a post-oil global economy. However, achieving these goals requires more than state-led projects—it demands entrepreneurial innovation, technological agility, and scalable private-sector solutions.

Startups are emerging as a key force in this transformation. No longer confined to consumer apps or fintech, Saudi entrepreneurs are building businesses that tackle water scarcity, energy inefficiency, waste management, and climate monitoring. In doing so, they’re not just filling policy gaps—they are redefining what economic growth looks like in an era of climate disruption.

Renewables & Green Tech: Saving Costs, Creating Markets

Saudi Arabia has taken global lead steps:

• The cost of solar/wind-generated power now ranges as low as 2 cents per kWh, with 17 utility-scale projects already operating and renewable capacity expected to power two-thirds of the population’s needs by end‑2024. 
• The Sudair Solar PV Project (1.5 GW) has created ~1,200 construction jobs, plus 120 operational roles, and delivers power to about 185,000 homes while offsetting 2.9 million tonnes of CO₂ annually. 
• ACWA Power’s Red Sea Project combines solar, battery storage, and desalination infrastructure, supported by a $1.33 bn debt package, integrating climate resilience into tourism development.

These macro-projects mitigate climate costs and open USD 50 bn+ of investment potential for renewables, hydrogen, carbon capture, and blue economy initiatives—tightly aligned with Vision 2030 and net-zero by 2060 targets. 

Startups at the Vanguard of Climate Action

In the broader economic equation of climate adaptation and sustainability, Saudi startups are not simply participants—they are becoming primary catalysts for innovation, risk-taking, and impact delivery. While mega-projects and policy frameworks lay the foundational infrastructure for decarbonization, it is the startup ecosystem that is driving agility, experimentation, and localized solutions tailored to the Kingdom’s unique climate challenges.

According to a recent report by PwC Middle East, Saudi Arabia accounted for nearly 94% of climate-tech startup funding in the GCC between 2018 and 2023, with over $439 million in disclosed investments. This dominance is not incidental—it reflects a deliberate alignment between national policy goals and entrepreneurial activity, reinforced by venture capital flows, public-sector backing, and growing consumer demand for sustainable solutions.

Sectoral Breadth and Technological Depth

Saudi climate-tech startups are increasingly branching out from traditional solar energy ventures into complex, cross-sectoral solutions spanning:

• Energy Efficiency & Decentralized Power:
  Companies like Mirai Solar are developing lightweight, deployable photovoltaic solutions designed for mobility, modularity, and dual use—generating clean energy while acting as shading systems for agriculture, real estate, and logistics sectors. Such innovations directly reduce grid reliance and carbon intensity per square meter.
• Sustainable Materials & Waste Valorization:
  Plastus has gained attention for its ability to convert agricultural and organic waste into biodegradable plastic alternatives—a critical advancement in reducing single-use plastic pollution, especially in food and logistics packaging.
• Water & Urban Resilience Tech:
  Sadeem, a homegrown Saudi company founded out of KAUST, has created solar-powered IoT flood monitoring systems deployed in Riyadh and Jeddah. These systems not only reduce damage costs from flash flooding events but also cut emissions by enabling predictive, rather than reactive, municipal response.
• Geothermal & Carbon Sequestration:
  Startups like Eden GeoPower, although still in their pilot stages, are experimenting with geothermal energy systems adapted for arid-zone geology. These technologies could offer long-term, dispatchable renewable energy—complementing intermittent solar and wind.

Such ventures, though small in market cap, deliver disproportionate environmental returns by addressing direct pain points—from reducing energy waste and urban flooding to improving resource circularity and grid efficiency.

A Culture of Mission-Driven Entrepreneurship

What sets this generation of Saudi startups apart is their explicit climate intent. Unlike earlier cohorts that viewed sustainability as a peripheral value-add, today’s founders—many trained at KAUST, KAPSARC, or abroad—are building business models with climate outcomes at their core.

Moreover, many of these startups operate under constrained conditions: fragmented supply chains, nascent climate regulations, limited liquidity in Series A/B rounds. Yet they persist, driven by a shared recognition that climate change is not only an existential risk but an economic opportunity valued in the trillions globally.

This emerging culture is aided by a growing infrastructure of green innovation enablers, including:

• University-anchored incubators (e.g., KAUST Innovation Fund)
• Public climate sandboxes launched by Monsha’at and the Ministry of Investment
• Climate-focused VC mandates from SVC, STV, and regional family offices
• Sector accelerators targeting agritech, aquatech, hydrogen, and e-mobility

Such support helps de-risk innovation and accelerate the go-to-market timelines for startups tackling challenges like desertification, marine degradation, and extreme weather volatility.

From National Challenge to Global Export Potential

Beyond their domestic impact, Saudi climate-tech startups are increasingly positioning themselves as export-ready innovators capable of scaling across the GCC, Africa, and Southeast Asia—regions that face similar environmental conditions.

For example:

• Sadeem’s urban flood tech is now being piloted in Oman and Bahrain.
• Plastus has begun licensing discussions with packaging firms in North Africa.
• Mirai Solar is participating in solar mobility tenders in Southeast Asia.

This evolution from “local solution provider” to “global climate-tech contender” is a strategic imperative—not just for financial returns, but for Saudi Arabia’s soft power and green industrial policy goals under Vision 2030 and the Net-Zero 2060 pledge.

Enablers: Policy Frameworks & Ecosystem Support

Startup growth in climate-tech is buoyed by a supportive ecosystem:

• Saudi government incentives: Monsha’at, CODE and Saudi Venture Capital Co. and PIF-backed funds have injected SAR 9.75 bn (~USD 2.6 bn) since 2018 into the startup market—many focused on sustainability.
• Institutional seed funding: KAUST’s $200 m fund, part of a broader push to translate R&D into commercial solutions, aligns with NEOM reef restoration and Red Sea Projects.
• Global R&D partnerships: Collaboration hubs at KACST, KAPSARC, and KAUST tie startups to national decarbonization strategy and COP frameworks.
• Renewables procurement: Public tenders for solar, hydrogen, and hydrogen transport technologies generate demand for innovative startups.

Challenges Ahead

Despite momentum, barriers remain:

• Regulatory complexity: Early-stage firms often struggle with unclear licensing, IP challenges, and sector-specific standards, particularly in marine and carbon-intensive sectors.
• Financing gaps: Series A/B investment remains sparse, especially in blue-tech and hard-tech startups.
• Talent shortage: Hiring advanced technical skills—marine scientists, geothermal engineers, IoT specialists—lags behind demand.
• ROI expectations: 74% of regional business leaders avoid climate investments due to perceived low returns, underscoring the need for balanced incentives. 

Commenting on this, Mazeen Fakeeh, president of Fakeeh Care Group—a public entity that installed rooftop solar—reported savings of SR 170,000 (USD 45,000) on energy bills in 2024 and emphasized, “It’s a long‑term investment…to see the full return you need two or three decades.”

In the same vein, Faris al‑Sulayman, co-founder of Haala Energy, noted that commercial clients now actively pursue solar due to subsidy cuts and new tariff structures, reinforcing the business case for renewables. 

Vito Intini, UNDP’s MENA Chief Economist, praised Saudi startups for tackling land degradation: “By fostering an entrepreneurial ecosystem and investing in green innovation, the Kingdom can accelerate its sustainability agenda.”

Also, Fahd Al‑Rasheed of the Royal Commission highlighted the economic and environmental importance of marine tech: “We need to scale innovation faster, especially in aquatech, logistics, and ocean clean energy.” 

The Road Ahead: Scaling the Climate-Tech Frontier

Saudi Arabia’s climate agenda and entrepreneurial ecosystem are aligned, but scaling impact requires:

1. Closing funding gaps: Develop more later-stage climate-tech funds and blended finance vehicles.
2. Streamlining regulation: Simplify VC, IP, and licensing processes, particularly in the marine and carbon sectors.
3. Building human capital: Scale technical training and attract global climate-tech talent.
4. Boosting demand creation: Use public procurement to anchor startup solutions in national decarbonization pipelines.
5. Catalyzing global partnerships: Embrace alliances through Green Hydrogen and Blue Economy strategies, involving China, EU, and US green-tech investments.

Finally, Saudi Arabia is emerging not only as a national leader in climate mitigation but as a fertile ground for startups to shape the green economy. By integrating massive renewable infrastructure, supportive policy frameworks, and venture capital into its Vision 2030 matrix, the Kingdom is positioning itself to absorb the economic costs of climate change rather than succumb to them.

However, the future depends on scaling innovation, maturing its startup ecosystem, and institutionalizing climate-tech as a growth and export pillar. If Saudi Arabia succeeds, it will offer not just resilience, but a global blueprint for economic transformation powered by climate-conscious entrepreneurship.

Ghada Ismail

When you’re building a startup, it’s easy to get caught up in the exciting stuff: user growth, building your product, closing deals. But behind the scenes, there’s one number quietly counting down your time: burn rate.

Burn rate is simply how fast you’re spending money every month. It tells you how long your cash will last before you need to bring in more, whether from investors or revenue.

Think of your startup like a plane on a runway. The longer the runway (your cash), the more time you have to take off (hit traction or raise your next round). But the faster you burn through cash, the shorter your runway gets. And if you don’t take off in time, you crash.

What Is Burn Rate, Really?

In simple terms, burn rate shows how much money your startup spends every month just to keep running.

There are two versions you should know:

• Gross Burn Rate: This is your total monthly spending on salaries, rent, tools, marketing, etc.
• Net Burn Rate: This is what really matters. It’s how much you’re losing each month after subtracting any revenue.

Example: If your startup spends SAR 400,000 per month and earns SAR 100,000 in revenue, your net burn rate is SAR 300,000. That’s the amount disappearing from your bank account every month.

Why Burn Rate Matters More Than You Think

Your burn rate isn’t just an accounting number; it’s your survival clock.

Let’s say you raised SAR 3 million. If your net burn rate is SAR 300,000 per month, you have 10 months of runway. That’s 10 months to hit a major milestone, raise another round, or start turning a profit.

If you don’t? You run out of cash. And when the money’s gone, your options shrink fast.

That’s why investors ask about your burn rate early in any conversation. It tells them how you manage money and how soon you’ll need more.

How to Calculate Your Runway

The formula is simple:
Runway = Cash in the Bank ÷ Net Burn Rate

Here’s a quick example:

• Cash: SAR 1,200,000
• Net burn: SAR 150,000/month
• Runway: 8 months

Knowing this helps you plan ahead, whether that means starting fundraising early or making some cost cuts to buy more time.

How to Tell If Your Burn Rate Is Too High

Here are a few warning signs:

• You’re hiring a big team before proving product-market fit
• Your marketing spend is high, but customer retention is low
• You’re scaling too soon, before demand is steady
• You’re counting on future funding that hasn’t landed yet

If any of these sound familiar, it might be time to recheck your numbers and adjust your spending.

How to Keep Burn Rate Under Control

Managing your burn rate doesn’t mean cutting everything to the bone. It means spending wisely and keeping room to adapt. Here’s how:

1. Track it regularly
   Make burn rate part of your monthly reviews. Don’t wait until the bank balance gets drastically low.
2. Spend where it matters most
   Focus on things that push the business forward, like improving the product or acquiring users in smart, cost-effective ways.
3. Plan for delays
   Fundraising almost always takes longer than expected. If you think you have 9 months of runway, act like it’s only 6.
4. Adjust as things change
   As your revenue grows or expenses shift, update your burn rate and runway.
5. Avoid fixed costs early on
   Use freelancers, co-working spaces, and flexible tools until you really need to commit.

What This Means for Startups in Saudi Arabia

As Saudi Arabia’s startup scene grows, so does investor attention to burn rate. With more funding opportunities—from VCs to government programs like Monsha’at and Saudi Venture Capital—founders have access to capital, but also more pressure to use it wisely.

Today, local investors expect founders to show not just ambition, but capital discipline. Managing your burn rate smartly sends the message: “We’re building something valuable and we’re doing it responsibly.”

Wrapping things up…

Burn rate might sound like a dry finance term, but it’s one of the most important numbers for any founder to understand. It keeps you grounded. It helps you plan. And most importantly, it helps you stay in control of your startup’s future.

Because no matter how great your idea is or how big your market could be, if you run out of money, you run out of time.