Crypto in Saudi Arabia: Balancing Caution with Innovation

Sep 15, 2025

Ghada Ismail

 

Cryptocurrencies have evolved from niche tech curiosity to global financial phenomenon in just over a decade. As Bitcoin, Ethereum, and an increasing number of altcoins draw in investors, developers, and policymakers alike, governments are increasingly active in the digital asset ecosystem, not only to regulate it but to join in.

 

From China's digital yuan to Bitcoin as a form of tender in El Salvador, countries are experimenting with blockchain-based currencies in very different forms. In the Gulf, the UAE is already well ahead of the pack as a regional hub for crypto. So, Saudi Arabia?

 

With the Kingdom raising its bet on new tech, financial infrastructure, and digitalization as a component of Vision 2030, the idea of a national cryptocurrency or, at least, a blockchain-based coin with public utility, appears more prescient than ever. Is the time right, though, for Saudi Arabia to print its own crypto coin?

We'll explain what a cryptocurrency is first, and how it contrasts with a CBCC before getting into it.

 

What Really is a Cryptocurrency

A cryptocurrency is a digital or virtual currency that uses blockchain technology to secure and confirm transactions. Most cryptocurrencies, unlike government-issued and controlled fiat currencies, are decentralized; they are not dependent on central powers. Bitcoin, launched in 2009, was the first and remains the most well-known example. Others like Ethereum, Solana, and Ripple have since emerged with specialized use cases, from programmable contracts to super-fast cross-border payments.

What sets cryptocurrencies apart is that they are peer-to-peer: Payments can be sent directly between users without the involvement of intermediaries like banks. They are also typically supply-capped, which makes them attractive to those who see them as an inflation hedge. But they are highly volatile, unregulated in most places, and have been criticized for their use in speculative trading, fraud, and money laundering.

 

CBDCs and Cryptocurrencies: A Major Distinction

Even as both employ blockchain or distributed ledger technologies, central bank digital currencies (CBDCs) and cryptocurrencies are fundamentally different.

• A CBDC is central bank-issued and guaranteed. It is a tender of law, like cash or traditional bank deposits, but digital. CBDCs are intended to be stable, controlled, and part of a country's monetary system. It's intended to mimic and perhaps replace cash's role.

• Whereas a cryptocurrency is typically private, unregulated, and not a legal tender, its value is determined by the market forces rather than by a central authority, and it's more of an asset than a currency.

In essence, CBDCs aim to bring state-controlled money into the digital sphere, whereas cryptocurrencies threaten it. Some governments have embraced crypto cautiously, while others are building CBDCs as an indigenously safe and sovereign alternative to the digital currency revolution.

 

Bitcoin and Ethereum: The Cornerstones of the Crypto Ecosystem

Bitcoin and Ethereum remain the two most recognized and widely adopted cryptocurrencies around the world. 

Bitcoin, often referred to as digital gold, was the first cryptocurrency to gain mainstream attention, valued for its decentralized nature and capped supply of 21 million coins. It’s often seen as a store of value and hedge against inflation, especially in markets where traditional currencies face volatility. Its prominence has helped open the door for greater awareness and interest in digital assets across the region.

Ethereum, on the other hand, has carved out a unique position beyond just being a cryptocurrency. Its blockchain powers a vast ecosystem of decentralized applications (dApps), smart contracts, and innovative financial tools, such as Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs). With its ongoing transition to a more energy-efficient proof-of-stake model, Ethereum continues to attract developers, investors, and regulators alike. 

 

The Global Landscape: Central Banks Go Digital

In order to know where Saudi Arabia stands, one needs to look outward. Over 130 countries, accounting for more than 98% of global GDP, are considering the development of central bank digital currencies (CBDCs), as per the Atlantic Council's CBDC Tracker. China is in the lead, with the e-CNY already being extensively tested. The UAE and India, meanwhile, have initiated their own pilot programs, particularly for cross-border transactions.

Specifically, this is not just a matter of keeping up with innovation. It's about maintaining control over monetary policy, gaining payment infrastructure, and financial inclusion, especially as decentralized digital currencies like Bitcoin and Ethereum continue to grow in popularity and volatility.

 

How Saudi Arabia Is Navigating the Crypto Space

Saudi Arabia has thus far addressed cryptocurrencies with a cautious and measured approach. Neither the Saudi Central Bank (SAMA) nor the country's currency has legalized cryptocurrencies as a form of payment, and crypto trading is not officially regulated. Saudi citizens and residents do use international crypto markets, albeit often through foreign websites. SAMA has neither banned crypto nor done so for its currency, though it has cautioned citizens about unauthorized use. Despite that, social media views suggest growing local interest, particularly among young Saudis.

As of May 2022, roughly 3 million Saudis, or 14% of the country's population aged 18-60, were actively engaged in the cryptocurrency market either by owning cryptocurrencies or trading them, according to a survey conducted by the KuCoin exchange.

 

The report also found a growing wave of interest among the general population. A further 17% of the survey respondents were defined as "crypto-curious," which demonstrated a high likelihood of investing in cryptocurrencies over the next six months. The findings reflect a growing trend of crypto adoption across Saudi Arabia, among young, technology-literate users interested in decentralized finance and alternative investments.

 

Rather than rushing to adopt or ban cryptocurrencies outright, Saudi regulators are moving slowly to understand the space and see how things go. In 2022, SAMA recruited a head of CBDC development, suggesting growing institutional focus on digital currency design. The Kingdom began to meet with FinTech founders and blockchain startups through regulatory sandboxes, testing digital financial products in a sandboxed environment.

The Capital Market Authority (CMA) also has an interest in asset tokenization, and it appears that blockchain technology could find a niche in Saudi Arabia's financial future, even though there is no plan to switch away from cryptocurrencies for the time being.

 

Project Aber 

Beyond private sector momentum, government-backed initiatives are also shaping the region’s digital finance landscape. One notable example is Project Aber, a joint initiative launched in 2019 by the Saudi Central Bank (SAMA) and the Central Bank of the United Arab Emirates (CBUAE) to explore the feasibility of a central bank digital currency (CBDC) for cross-border payments. The project aimed to assess the potential of distributed ledger technology (DLT) in enhancing the efficiency and security of interbank transactions between the two countries.

 

Over the course of a year, Project Aber involved six commercial banks—three from each country—in testing a dual-issued, wholesale CBDC used exclusively for settlements between participating banks. The initiative successfully demonstrated that a DLT-based solution could streamline cross-border payments by reducing transfer times and costs, while maintaining compliance with regulatory standards. The findings, documented in the Project Aber Final Report, have contributed to the global discourse on CBDCs and have informed subsequent initiatives, such as Saudi Arabia's participation in Project mBridge, which seeks to further develop cross-border CBDC applications.

 

Why It Might Make Sense for Saudi Arabia to Begin Thinking About a Crypto Coin?

1. Facilitates Vision 2030 Objectives

The Kingdom is taking aggressive steps to diversify the economy and embrace digitalization. A Saudi crypto coin would place the country at the forefront of the international Web3 economy and portend welcome openness to innovation from next-generation fintech.

2. Financial Inclusion

An officially approved crypto coin, or one made accessible by a mobile phone, might draw more of its citizens, and in particular the unbanked and underbanked, into the formal financial system. This would have particular potential among youth and rural women.

3. Enabling Cross-Border Trade

Since intra-GCC trade and remittances are significant in the region, a Saudi digital coin would facilitate easy cross-border payments, reduce costs, and promote economic integration, especially if complemented by neighboring digital currencies.

4. Reporting Global Investment

A Saudi crypto initiative - properly regulated, transparent, and Shariah-compliant - can attract global crypto firms and investors, solidifying the Kingdom's status as a regional fintech hub.

5. Aligning With a Young, Tech-Savvy Population

Over half of Saudi Arabia's population is less than 30 years old, and digitally native generations are more likely to explore alternative assets such as crypto. Addressing this increasing demand with a domestically created coin might serve to capture and direct local interest.

 

What Could Hold It Back

1. Regulatory Uncertainty

While progress has been made, Saudi Arabia's crypto regulations are still in their infancy. The CMA and SAMA issued warnings against trading unlicensed cryptocurrency assets. A state-issued coin would need to have a holistic legal and financial setup to prevent confusion.

2. Price Volatility and Monetary Policy Risks

Most cryptocurrencies are inherently volatile. Would the Saudi coin be pegged to the riyal? Would it be a stablecoin? Such design choices would have deep implications for monetary policy and public trust.

3. Finance and Misuse Risks

Crypto coins, if not monitored well, can be misused for money laundering, tax evasion, and capital flight. It would be crucial to be AML/KYC compliant and aligned globally.

4. Infrastructure Readiness

Blockchain networks require cyber resilience and technical infrastructure. The success of the coin would depend on robust platforms, secure wallets, user awareness, and reliable internet connectivity across the country.

5. Cultural and Religious Considerations

Similar to all financial innovations in the Kingdom, any cryptocurrency would have to be Islamic finance-friendly. Interest, speculation, and asset backing issues would have to be addressed carefully.

 

Conclusion

Implementing a national cryptocurrency is a bold endeavor, and Saudi Arabia has the resources to make it work. It has the funds, the ambition, the cyber infrastructure, and an increasingly technologically savvy citizenry. A Saudi cryptocurrency would have the potential to increase financial access, propel cross-border innovation, and solidify the Kingdom's leadership in the digital economy.

 

But it must be a strategic, safe, and vision-driven step. If not regulated, openly schooled, and in harmony with national values, the detriments may outweigh the benefits.

Whether by way of a digital riyal, expanded build-out of Project Aber, or wider regulation of crypto, Saudi Arabia can take the lead in Islamic-compliant, digitally driven finance. The question is not whether the Kingdom will digitalize. It's when and how.

 

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Latest Experts Thoughts

The Middle East's next brand revolution will be heard

Roudny Nahed, Partnership Manager at MusicGrid 

 

Across the Middle East, a new generation of brands is emerging, driven by ambitious national visions, digital innovation, and a growing focus on customer experience. As the region continues to redefine its position on the global stage, sound is becoming an increasingly valuable way for businesses to express their identity, connect with audiences, and build lasting recognition. 

The Middle East is undergoing a transformation that extends beyond infrastructure, technology, and economic diversification. It is changing how brands are created, experienced, and remembered. 

Across the GCC, new industries are emerging, established organizations are reinventing their customer experiences, and homegrown brands are increasingly expanding their ambitions beyond regional markets. 

This transformation raises an important question: as the way people interact with brands evolves, shouldn't the way brands express their identities evolve as well? 

Sound has an increasingly important role to play in answering that question. 

 

The Experience Economy Is Changing the Role of Sound 

Saudi Arabia offers a compelling example of this evolution. 

The Kingdom's tourism strategy targets 150 million visits by 2030, while its financial sector development ambitions include expanding the fintech ecosystem to 525 companies by the same year. 

These ambitions represent more than economic growth. They signal an expanding landscape of customer interactions across aviation, hospitality, financial services, entertainment, and digital platforms. 

An airline's identity is experienced throughout the passenger journey. A bank's relationship with customers increasingly develops through its mobile application. A hospitality brand communicates its personality through the atmosphere it creates. 

In each case, sound can reinforce recognition, communicate emotion, and connect different moments into a consistent brand experience. 

As the region invests in more sophisticated customer journeys, sonic branding has an opportunity to evolve from a creative element into part of a brand's infrastructure. 

 

From Musical Identity to Brand Infrastructure 

One of the most important shifts in sonic branding is the move from creating individual audio assets to developing connected sonic ecosystems. 

A sonic logo may be the most recognizable element, but its strategic value grows when integrated across advertising, digital interfaces, customer service, and physical environments. 

In 2020, Mastercard and Network International announced an initiative in the UAE to integrate Mastercard's sonic identity into payment terminals, allowing customers to hear a recognizable confirmation sound when completing transactions. 

This demonstrates how sound can serve both a functional purpose and a branding objective. 

For businesses across the Middle East, the opportunity is to design sonic branding into the customer journey rather than introduce it as an afterthought. 

 

Cultural Intelligence: The Region's Creative Advantage 

The Middle East possesses another significant advantage: its rich and diverse musical heritage. 

From distinctive rhythmic structures to melodic traditions and regional instrumentation, sound carries cultural associations shaped by history and collective experience. 

However, creating an authentic regional sonic identity requires more than incorporating traditional instruments. 

A contemporary Saudi financial institution, for example, does not necessarily need traditional melodies to express its cultural roots. Authenticity can emerge through rhythmic character, melodic movement, and emotional associations that reflect the brand's personality. 

This is where ethnomusicology, cultural understanding, and brand strategy intersect. 

For Middle Eastern brands with international ambitions, the ability to balance cultural authenticity with contemporary creativity can become a meaningful competitive advantage. 

 

Recognition Must Be Built, Not Assumed 

The business value of sonic branding extends beyond creating memorable music. 

Research from Ipsos highlights the effectiveness of distinctive brand assets, including sonic cues, in strengthening advertising recognition and performance. 

However, recognition does not develop through composition alone. It requires consistent exposure, meaningful associations, and disciplined implementation. 

A sonic identity used only during a launch campaign has limited opportunities to build long-term familiarity. 

Organizations must therefore consider where sound appears, how it adapts across different markets, and how consistently its recognizable elements are maintained. 

The objective is not simply to create a sound people enjoy, but to develop an identity they can recognize and associate with the brand over time. 

 

The Opportunity for Regional Leadership 

The Middle East is experiencing a powerful convergence of economic diversification, digital transformation, cultural investment, and creative ambition. 

Together, these developments are creating an environment where sonic branding can play an increasingly strategic role. 

The opportunity is not simply to adopt international practices, but to develop regional expertise in creating culturally intelligent, technologically integrated, and globally recognizable sonic identities. 

 

The Middle East is building a new generation of brands. The next opportunity is to give those brands a distinctive sound that the world can recognize. 

Saudi Arabia’s event management sector: growth, technology, and new opportunities

Noha Gad

 

Saudi Arabia’s event management industry is experiencing a period of remarkable growth, driven by Vision 2030’s agenda and its ambition to transform the Kingdom into a leading global destination for business, culture, entertainment, and sport. Analysts believe the growth in the event management market is largely attributed to substantial investments in venues and groundbreaking infrastructure.

According to a recent report released by Research and Markets, the event management market in Saudi Arabia is expected to grow from $2.59 billion in 2025 to reach $3.92 billion by 2031, making a compound annual growth rate (CAGR) of 7.14%. In addition, the IMARC Group estimated the market to reach $21.1 billion by 2034, exhibiting a CAGR of 8.08% between 2026 and 2034. This growth, the group said, is driven by rising tourism, government initiatives, increased corporate spending, and growing demand for entertainment and cultural experiences, as well as developments in event technology and social media integration.

The growing role of technology in shaping the Saudi event management industry encouraged organizers and emerging companies to use digital tools to improve planning, communication, guest management, and post-event analysis, thereby delivering larger, safer, and more personalized experiences.

Artificial intelligence (AI) is a key tool organizers and event management companies use to understand attendee preferences, recommend relevant sessions or exhibitors, answer guest questions through chatbots, and translate content for international audiences.

Data analytics is another driver behind the transformation that the event management market is witnessing. It helps organizers and event-tech companies to benefit from digital registration systems, mobile applications, and smart badges to collect information about attendance, movement, engagement, and feedback. Analyzing these data responsibly could help organizers measure the success of an event more accurately and improve future editions. Sponsors and exhibitors can also understand audience behavior, generate qualified leads, and demonstrate return on investment.

Automation is another tool that simplifies many routine tasks that previously required significant manual work, such as sending invitations, registration confirmations, reminders, check-in processes, surveys, and post-event reports. This will reduce administrative burdens, lower the risk of human error, and allow event managers to focus more on creativity, guest experience, and strategic planning.

Also, augmented reality (AR), virtual reality (VR), interactive screens, and holographic displays can make exhibitions, brand activations, and entertainment events more engaging.

Together, these advanced technologies are not replacing event managers; they are redefining their role. The most successful companies in Saudi Arabia’s event management market will be those combining strong local knowledge and operational expertise with digital tools that create smarter, safer, and more memorable experiences.

The event-management sector is no longer dominated solely by traditional agencies and venue operators. A layered ecosystem has emerged, spanning full-service event agencies, specialized production and AV companies, venue-management companies, ticketing platforms, and a growing cohort of event-tech startups. 

Companies such as SYNC, one of the leading event solutions providers, position themselves as end-to-end event solutions providers, handling everything from Saudi Conventions and Exhibitions General Authority (SCEGA) licensing and venue coordination to AV production and on-site execution. Serving government entities, corporate clients, and conference organizers, the competitive advantage of these companies lies in regulatory familiarity, supplier networks, and in-house production capability rather than software innovation.

In the AV and staging area, Al-Khalediya for Theatres and Cinema is one of the key players that has executed more than 1,000 projects across Saudi Arabia and the GCC, specializing in theatre design, acoustic systems, seating, and cinema fit-outs.

Hybrid-event and event-tech providers, such as INVE, do not execute events themselves, but provide software that organizers use to manage invitations, registration, guest data, and entry.

INVE is one of the Saudi-based startups that leverage technology to transform the event management industry in the Kingdom by offering digital invitations, RSVP tracking, guest profiles, registration, check-in, and follow-up communication in one platform. Serving both corporates and individuals, INVE reflects the industry’s move toward relationship-based and technology-enabled event management, seeking to turn a single event into a long-term guest-relationship asset.

Venttat is a leading Saudi event management company, offering expert services for organizers and exhibitors. It serves as a one-stop shop for corporate events, meetups, conferences, and global event technology services, exhibitor infrastructure, and digital logistics.

The growing event management market in Saudi Arabia is providing significant opportunities for investors, startups, and established companies, as the Kingdom hosts more international conferences, entertainment events, sporting competitions, and cultural festivals. This increases demand not only for event managers and organizers but also for the technology, services, and infrastructure that support them.

Startups and event planning companies will need to tailor AI-powered solutions and products for attendance forecasting, personalized recommendations, attendee matchmaking, chatbots, feedback analysis, and automated content creation. Smart venue technology presents significant opportunities as startups can focus on developing digital access control, crowd monitoring, security systems, digital signage, and real-time venue-management dashboards.

Despite its strong growth potential, the event management industry in Saudi Arabia faces several challenges that could affect its long-term development. One of these challenges is the scarcity of specialized talent, particularly in areas such as event production, technical operations, digital marketing, data analysis, and multilingual guest services. 

The growing number of event agencies, venues, and technology providers is increasing pressure on companies, which will need to differentiate themselves through quality, creativity, reliability, and strong client relationships rather than competing solely on cost.

Quality and consistency are another challenge, especially as Saudi Arabia seeks to host world-class events. Thus, organizers must meet high expectations for safety, logistics, guest experience, and operational precision. 

To sum up, Saudi Arabia’s event management industry is entering a new phase of development, driven by Vision 2030, major technological advancements, and the Kingdom’s growing position as a regional hub for business, culture, and entertainment.

Technology will be central to this growth, helping event organizers and managers change how they plan, deliver, and measure events, ultimately enabling them to focus on creativity, guest experience, safety, and strategic decision-making. Companies that can combine operational expertise with digital innovation will be best placed to meet the rising expectations of corporate clients, government entities, sponsors, and attendees.

The micromanager: When control replaces leadership

Noha Gad

 

Have you ever dealt with the manager who asks you to Cc them on every email? The one who rewrites your work not because it is wrong, but because it is not exactly how they would have done it. They think they are protecting quality, meeting deadlines, and ensuring good results by focusing on minor details, demanding approval for small decisions, and leaving employees with little freedom to make their own choices.

A micromanager excessively supervises employees, focusing on controlling every task detail. Although this management style might yield short-term results, it often undermines morale and hampers team productivity in the long run. Instead of directing employees on how and when tasks can be accomplished, micromanagers watch employees’ actions closely, providing frequent criticism.

Key features of micromanagers

Micromanagers share several common behaviors. Although every situation is different, these signs usually appear:

  • Lack of trust and delegation. These managers refuse to delegate tasks or take over work because they believe no one else can accomplish it right.
  • Continuous supervision. Micromanagers demand frequent status updates, require approval for minor decisions, and track every step of a project.
  • Excessive focus on minor details: They obsess over formatting, wording, or trivial errors instead of looking at overall progress. They may criticize a report because of its font or structure, even when the content is strong and the client is satisfied.
  • CC'ing on everything: They insist on being copied on all emails and sitting in on routine communications. This makes employees feel unable to act without asking permission first.

 

Negative impact on the workplace

Micromanagement may seem like a way to maintain control and quality, but it often creates serious problems for employees and the wider business, such as: 

  • Reducing employee morale. When employees feel constantly observed and corrected, they start losing enthusiasm for their work. They may feel that their manager does not trust their skills or respect their judgment.
  • Increasing stress. Frequent check-ins, repeated revisions, and constant approval requirements can make employees feel pressured and insecure. They may worry about making mistakes or being criticized for small details.
  • Lowering confidence. When a manager rewrites employees’ work, questions their choices, or takes over tasks, they may begin to doubt their own abilities.
  • Discouraging creativity and new ideas. Micromanagers often prefer their own method, leaving little room for different approaches. This makes employees less likely to share ideas when they believe every suggestion will be rejected or changed. 
  • Slowing down the work cycle. When every small decision needs approval, projects take longer to be done, as employees may spend more time waiting for feedback than doing actual work.
  • Reducing productivity.  Although micromanagers often believe they are improving performance, their behavior can have the opposite effect. Employees may lose motivation to work efficiently because they know their manager will likely change the work anyway.

Micromanagers can take concrete steps to change their management. First, they should establish a few key metrics that define success for any project, ignoring every other detail that falls outside those parameters. They should delegate specific needs to be done, not control the way team members do it. An open-door policy should be in place so team members can seek coaching or further guidance whenever they feel they need it. Finally, managers should set a deadline for each stage of an assigned project.

To sum up, micromanagement may seem to be a commitment to quality, but it often creates stress, lowers morale, and reduces productivity. When employees feel constantly monitored and are given little freedom to make decisions, they may lose confidence, avoid sharing ideas, and become less engaged in their work. Successful leaders focus on clear goals, trust their teams, delegate responsibility, and provide guidance when needed.

AILA Seeks to Bridge Learning Gaps Through Personalized Education

Ghada Ismail

 

As artificial intelligence continues to reshape education, edtech startups are exploring new ways to personalize learning, improve student performance, and support teachers with data-driven insights. AILA is among the companies working to transform the learning experience through AI-powered solutions tailored to students’ individual needs and the Saudi education system. In this interview with Sharikat Mubasher, AILA discusses its approach to personalized learning, the challenges of developing effective AI-driven educational tools, and the opportunities for edtech startups as Saudi Arabia advances its education and digital transformation goals.

 

AILA has recently secured a $3 million funding round. What does this investment enable the company to do that it could not do before?

Our earlier funding helped us build the product and reach product-market fit. We now have schools using AILA every day and results we can stand behind. This round is about scaling what already works. 

First, it lets us go deeper on our adaptive engine and our research. We want to keep proving, with rigorous evidence, that AILA improves how students learn, building on the work we have done with King Fahd University of Petroleum & Minerals. 

Second, it lets us scale our commercial and customer success teams so we can serve many more schools across the Kingdom, and support each one properly after launch. 

Third, it lets us expand beyond the Saudi curriculum. Today we are strongest around Qudurat, Tahsili and NAFES. By adding other curricula, we can take the same engine to new markets and serve many more students. 

 

Do you expect this round to take AILA to profitability, or is the priority still aggressive growth and market expansion? 

Our priority is growth, but disciplined growth. We have built a business with strong fundamentals, and our product runs at a gross margin of around 67%, which gives us a lot of room to grow efficiently. 

Reaching profitability is a clear goal for this round. We want to scale to more schools and new markets while becoming profitable, so that we go into our Series A from a position of strength. We are not buying growth at any cost. Every school we sign needs to make sense on its own. 

 

AILA describes its approach as personalized, AI-powered learning. What makes your personalization technology different from the growing number of AI tutoring and edtech platforms entering the market? 

Many new AI platforms are essentially content generators: you ask a question, you get an answer. That is useful, but it is not the same as teaching. AILA is built around diagnosis. We work out exactly where each student is, what they have mastered and what is holding them back, and then we guide them on the shortest path to improvement. 

Three things set us apart. First, we are built for the Saudi context, mapped to national learning outcomes and assessments such as Qudurat, Tahsili and NAFES, and available in both Arabic and English. Second, we work inside schools, so the insight does not stay with the student. Teachers, administrators and principals see the same picture and can act on it. Third, we measure results. Our benchmark shows students learning about 2.3 times more efficiently, and our pilot results have been validated through a research partnership with King Fahd University of Petroleum & Minerals. 

 

How does AILA use student data and learning behavior to determine what a student should learn next? 

Every interaction on the platform tells us something: whether the answer was right, how long it took, how many attempts were needed, and what kind of mistake was made. We map all of that to a structure of skills and learning outcomes, so we can estimate each student's level of mastery skill by skill. 

From there, the engine decides what comes next. It looks at the gaps that matter most, the prerequisite skills that need to be secured first, and how heavily each skill counts in the assessment the student is preparing for. It also brings back earlier material at the right moment, so learning sticks rather than fading. 

The same data flows to teachers and school leaders as clear, actionable reports, so they know which students need help and on what. 

 

What are the biggest technical challenges in building AI systems that can genuinely improve learning outcomes rather than simply generate educational content? 

The hardest part is measuring learning rather than activity. It is easy to build something students click on a lot. It is much harder to prove they actually know more afterwards. That is why we invest in validation and research, not just in features. 

The second challenge is quality and alignment. Content must be accurate, pedagogically sound and aligned with the Saudi curriculum, in both Arabic and English. Generative AI can produce a lot very quickly, but in education a confident wrong answer does real damage, so we keep strong quality control around everything the system shows a student. 

The third is getting the recommendation right from limited data, especially when a student is new to the platform, and keeping it right as they progress. 

And finally, the system has to fit how schools actually work. AI does not replace the teacher. It has to give teachers and school leaders insight they can act on in the time they have. 

 

What gaps in the Saudi education system did you identify when you first built AILA, and how have those needs evolved since the company launched? 

When we started, the biggest gap was that one classroom holds students at very different levels, yet they are largely taught the same way at the same pace. Teachers knew some students were falling behind, but they did not have the time or the granular data to know exactly why. At the same time, national assessments carry high stakes for students, and much of the targeted preparation was happening outside school. 

We built AILA to bring that personalized, data-driven support inside the school, where every student can access it. 

At the same time, AI itself has advanced enormously since we launched. Models today understand language, reasoning and student errors far better than they did a few years ago, in Arabic as well as English. That has let us do much more than we originally planned: sharper diagnosis, richer and more personal feedback, and a far better experience for students and teachers. Our offering today is stronger than what we could have built at the start. 

The need has also matured. Schools are no longer only asking how to prepare students for an exam. They want continuous visibility on learning outcomes across the year, aligned with national standards, so leaders can make decisions based on evidence. That shift, driven by Vision 2030 and the Human Capability Development Program, has shaped how our platform has grown. 

 

Saudi Arabia is investing heavily in education technology as part of its broader digital transformation. Where do you see the biggest untapped opportunities for Saudi edtech startups? 

I see three big opportunities. The first is assessment and learning analytics. The Kingdom has clear national learning outcomes, and there is huge value in tools that show schools, in real time, where students stand against them. 

The second is scale in the public sector. Private schools have moved fast, but the largest impact will come from solutions that work reliably across government schools, at national scale. 

The third is high-quality AI built for our own context. Global tools are not designed around Saudi curricula, assessments, and classroom realities. Startups that build for this market from the ground up, in both Arabic and English, have a real advantage. 

More broadly, anything that connects learning in school to what comes next, university and the job market, is still underserved. 

 

Looking three years ahead, what would success look like for AILA in terms of users, markets, and impact? 

Today we work with around 100 schools and roughly 65,000 students. In three years, success means having a proven adaptive engine, backed by published research, used by 300,000 students. 

On markets, Saudi Arabia will remain our home and our largest market, and we plan to extend across the GCC and the wider MENA region, supported by the new curricula we are adding. 

But the number that matters most is impact. We want to show, with independent evidence, that students on AILA achieve measurably better learning outcomes, and that schools using AILA make better decisions because of the data we give them. If we can prove that at scale, the growth will follow. 

What Is Deal Sourcing? Proprietary vs. Intermediated Deal Sourcing

Ghada Ismail

 

Finding the right investment opportunity is a crucial step toward achieving strong returns. Before investors evaluate valuations, conduct due diligence, or negotiate terms, they must identify businesses and assets that fit their objectives. This process, known as deal sourcing, plays a central role in private equity, venture capital, and mergers and acquisitions (M&A).

 

What Is Deal Sourcing?

Deal sourcing is the process of identifying and establishing contact with potential investment opportunities. These may include startups seeking funding, established businesses looking for investors, or companies available for acquisition.

Investors use market research, professional networks, referrals, direct outreach, and financial intermediaries to build a pipeline of potential deals. Effective sourcing focuses not only on finding opportunities but also on identifying businesses that match an investor’s sector preferences, budget, risk tolerance, and expected returns.

Two common approaches are proprietary and intermediated deal sourcing.

 

What Is Proprietary Deal Sourcing?

Proprietary deal sourcing involves identifying opportunities through an investor’s own research, relationships, and direct outreach rather than relying primarily on formal intermediaries or widely marketed transactions.

For example, a private equity firm may approach a business owner directly to explore an acquisition before the company is formally put up for sale. Investors can develop such opportunities through industry events, founder networks, referrals, and targeted research.

The main advantage is the potential for less competition, giving investors more time to build relationships and negotiate terms. Early engagement can also help investors understand a business before a formal transaction begins.

However, proprietary sourcing requires considerable time, research, and relationship-building. It does not guarantee exclusivity, lower valuations, or a successful transaction.

 

What Is Intermediated Deal Sourcing?

Intermediated deal sourcing involves accessing investment opportunities through third parties, such as investment banks, M&A advisers, business brokers, and other professional networks.

For example, a company planning to sell may appoint an investment bank to identify potential buyers and coordinate the bidding process. Interested investors receive information about the business and can assess whether it fits their investment strategy.

This approach can provide access to a broader range of opportunities and streamline the initial screening process. However, competitive bidding may push valuations higher, while intermediary fees can increase transaction costs. Investors may also face tighter timelines when evaluating deals.

 

Proprietary vs. Intermediated Deal Sourcing

The key difference lies in how investors access opportunities and the level of competition involved.

Proprietary sourcing emphasizes direct relationships and targeted outreach. It may provide earlier access and less competition but requires sustained effort to build a reliable pipeline.

Intermediated sourcing uses established professional channels to connect investors with potential transactions. It can improve access to available deals and simplify the sourcing process, although competition and fees may be higher.

Neither approach guarantees better investment outcomes. Success ultimately depends on the quality of the opportunity, due diligence, valuation, and negotiated terms.

 

Which Strategy Is Better?

For many investors, combining both approaches offers the greatest flexibility. Proprietary sourcing helps uncover opportunities and establish long-term relationships, while intermediated sourcing provides access to businesses already seeking investment or considering a sale.

The right balance depends on the investor’s objectives, resources, target market, and investment stage. Ultimately, successful deal sourcing is not about finding the most opportunities, but about identifying the right investments and building relationships that lead to sustainable value creation.