Kholoud Hussein 

Saudi Arabia is witnessing the rise of a new socioeconomic force reshaping its cities, workplaces, and daily behaviors: the Digital Middle Class. This emerging demographic—defined not purely by income, but by digital fluency, technological consumption, and ability to thrive in a data-driven economy—is rapidly becoming one of the most important engines of national transformation. Powered by Vision 2030, fast-expanding digital infrastructure, and a tech-driven private sector, this group is changing not only how Saudis live, but how they learn, work, build wealth, and participate in the economy.

In earlier eras, entering the middle class required stable employment, home ownership, and rising disposable income. Today, digital fluency has become just as important. Access to cloud services, AI-driven productivity tools, fintech platforms, digital payments, e-commerce participation, and new types of online work are defining what opportunity looks like in Saudi Arabia. As a result, the new digital middle class is not a passive outcome of economic change—it is an active contributor to the Kingdom’s transformation.

“Digital transformation is not just a technological project. It is a social and economic movement,” Minister of Communications and Information Technology Abdullah Al-Swaha said recently. “Our goal is to empower every Saudi citizen with the tools needed to participate in a digital economy, and to lead in it, not just adapt to it.” His words reflect the government’s central thesis: expanding digital participation expands the middle class, and expanding the middle class accelerates the nation’s economic diversification.

A New Definition of Wealth: From Assets to Access and Digital Capability

Digital transformation has redefined what economic mobility looks like. Traditionally, wealth accumulation depended on physical assets—real estate, cars, or retail businesses. But digital-era wealth often grows from intangible assets: data literacy, technological skills, digital entrepreneurship, ability to sell services online, and participation in the digital financial ecosystem.

Saudi Arabia has one of the world’s fastest-growing digital economies, with the ICT sector surpassing $40 billion in market size and maintaining growth rates far above global averages. This economic expansion has created new pathways into the middle class—ones that do not require traditional capital.

Skills such as coding, cloud computing, fintech operations, digital marketing, and AI analysis now open doors to higher-income employment. Remote work, freelancing platforms, and digital marketplaces such as Marsool, Salla, Zid, and Jahez have enabled thousands of Saudis to run businesses with minimal overhead. Even the creative economy has become a serious economic opportunity, with thousands entering fields like game development, digital art, and content production.

For many Saudis entering this new class, the smartphone—not a storefront or an office—has become their first business tool.

How Digital Transformation Expanded the Middle Class

The expansion of digital access has been foundational. Saudi Arabia today ranks among the top nations globally in 5G deployment and internet speed, and more than 98% of the population is connected online. This digital infrastructure has become the gateway to new economic participation.

Government-led platforms such as Absher, Tawakkalna, Nafath, and Musaned have normalized digital trust and online service use, reducing barriers that once required physical presence and long processing times. This shift has empowered citizens to perceive digital services as reliable, safe, and efficient—key ingredients for the rise of the digital middle class.

The digital payments revolution has been equally transformative. The Saudi Central Bank reports that digital payment adoption exceeded 62% in 2023, surpassing Vision 2030’s original target seven years ahead of schedule. This shift has enabled new financial behaviors: online purchases, subscription-based services, e-wallet savings, and investment through digital platforms.

Fintech startups such as Tamara, HyperPay, STC Pay, Tabby, and Raqamyah have introduced financial tools that were previously difficult to access, from installment payments to peer-to-peer financing and micro-investment platforms. As fintech penetration deepened, financial inclusion expanded, allowing more Saudis to build credit histories, access new types of capital, and participate in the digital economy.

The Digital Skills Boom and the Birth of a New Labor Force

One of the most significant shifts is the transformation of the labor force. Saudi Arabia has invested billions into upskilling its population, with programs from SDAIA, MCIT, and Human Capability Development Program (HCDP) targeting emerging fields such as AI, cloud computing, cybersecurity, and software engineering.

The government announced that more than 100,000 Saudis will be trained in AI and advanced technologies by 2030. These investments are not academic exercises; they are building a workforce capable of supporting a trillion-riyal digital economy.

This new labor force is essential for the rise of the digital middle class. Higher-skilled digital roles offer higher salaries, flexible work, and career mobility—traits that rapidly elevate individuals into middle-class stability. Remote work adoption has also increased dramatically, enabling Saudis—especially youth and women—to enter the labor market on new terms.

Female participation in the workforce has surged past 34 percent, a milestone that would not have been possible without digital work environments and technology-enabled jobs. Many of these new participants are entering tech-enabled roles in e-commerce, cloud services, fintech operations, and digital content creation.

Startups as Engines of Digital Mobility

Startups have become one of the most influential forces accelerating the rise of the digital middle class in Saudi Arabia. Already, the Kingdom is the fastest-growing startup market in MENA, attracting more than $1.38 billion in VC investments in 2023 alone.

Startups across sectors—including mobility, logistics, AI, fintech, healthtech, and retail tech—are not only generating economic value but also creating new types of digital employment.

Examples include:

• Jahez, HungerStation, and Mrsool – enabling gig-work and flexible income generation.
• Salla and Zid – empowering thousands of small online merchants to launch digital stores with minimal technical knowledge.
• Lean Technologies and Hakbah – building fintech rails that democratize access to financial services.
• Taffi and Labayh – creating new digital service categories in mental wellness and personal styling.

These startups are directly supporting the expansion of the digital middle class by creating new revenue channels, entrepreneur-friendly tools, and knowledge-based employment. Their models lower entry barriers and expand economic inclusion.

Startups are also filling market gaps—payment infrastructure, logistics optimization, AI-driven services, digital ID systems—that directly enhance citizens’ ability to participate in the digital economy.

The Private Sector’s Expanding Role

As the Kingdom continues its diversification roadmap, the private sector has become a major driver of digital transformation. Telecom companies such as STC, Mobily, and Zain have built world-class digital infrastructure. Banks and fintechs are investing heavily in digital-first strategies. Large retailers are digitizing entire supply chains, onboarding thousands of Saudi employees into tech-enabled roles.

Global tech players, including Google Cloud, Oracle, and Huawei, have opened cloud regions in Saudi Arabia, bringing with them skills development programs and new job opportunities.

These investments create an environment where digital middle-class behaviors—online consumption, digital entrepreneurship, remote employment—become the norm rather than the exception.

Private sector innovation is also accelerating the adoption of new technologies. From AI-driven healthcare platforms to robotics in logistics, technology is reshaping service accessibility and quality. As these services expand, so does demand for digital talent, further strengthening the digital middle class.

Digital Trust: The Foundation of Behavior Change

The shift in Saudi citizens’ confidence in digital services cannot be overstated. According to SDAIA, public trust in government digital platforms exceeds 90 percent, one of the highest levels globally. This trust is the backbone of digital transformation.

When citizens believe that digital platforms are secure, reliable, and efficient, they adopt them with confidence. This adoption reduces transaction costs, increases economic participation, and boosts productivity—key characteristics of a stable middle class.

Startups play a meaningful role here. By offering secure, user-friendly, and transparent services, they reinforce the culture of digital trust. Fintech companies, in particular, invest heavily in compliance, security, and transparency—strengthening users' confidence in managing money online.

The Future: A Digital Middle Class That Builds, Not Just Consumes

As Saudi Arabia evolves into a digital-first economy, the digital middle class is expected to become an even more influential driver of economic growth. By 2030, the Kingdom aims for:

• A digital economy contributing 30 percent of GDP
• Hundreds of thousands of high-skilled digital jobs
• A global leadership position in AI and cloud-driven industries
• A thriving digital entrepreneurship ecosystem

The future digital middle class will not simply consume technology. It will build it—creating intellectual property, launching startups, exporting digital services, and shaping the Kingdom’s place in the global digital economy.

The rise of AI-native startups, deep-tech ventures, and digital-first SMEs demonstrates this shift. As more Saudi citizens gain advanced digital skills, the country transitions from being a user of global technologies to becoming a producer of them.

Finally, the rise of the digital middle class in Saudi Arabia represents far more than the adoption of apps or online platforms. It marks the restructuring of society around new definitions of opportunity, skill, and economic participation.

Saudi Arabia’s transformation is not only digital—it is deeply social, driven by a new generation that sees technology not as a tool, but as a pathway to agency, competitiveness, and global relevance.

As Vision 2030 continues to unfold, the digital middle class will remain one of the central pillars of economic diversification. Strong digital infrastructure, high adoption rates, a flourishing startup ecosystem, and ambitious government programs are transforming the Kingdom into a global model for digital economic development.

By: Michael Cade, Global Field CTO, Veeam Software 

So far, AI adoption has outpaced regulatory frameworks, leaving organizations largely to make up their own rules. But this lack of clarity hasn’t slowed organizations down. In fact, McKinsey’s latest survey found that 88% of organizations already report using AI in at least one business function. Despite this, innovation has slowed, and it’s become clear that organizations have overlooked a key enabler of safe and secure AI - data sovereignty.

Simultaneously, regulation has begun to catch up, and much of it points to the same principles of data sovereignty and AI visibility. Take the EU AI Act, for example, which sets strict, risk-based rules on both AI development and deployment within the EU to improve AI visibility. 

Rather than blindly charging ahead, organizations need to pause to develop transparent, traceable, and sovereign-by-design data architectures. Otherwise, they won’t just be unable to unlock the true potential of AI for their businesses; they’ll also fall behind on regulatory compliance. 

Not all data is good data.

As you might expect, both digital sovereignty and AI innovation boil down to data. It’s already well documented that AI needs a lot of data, and we’ve got plenty, with the IDC estimating that the global datasphere reached around 181 zettabytes annually in 2025. But, despite having plenty of data, Generative AI (genAI) pilots continue to fail widely. Some research suggests that as many as 95% of enterprise genAI pilots fail to reach production, or even demonstrate measurable ROI. The reason? Long-standing data hygiene issues. 

Thanks in no small part to AI, data growth has become exponential, but organizations have largely failed to keep up. This influx has far outpaced storage processes, and organizations have somewhat taken their eye off the ball, with ‘junk’ data being stored alongside the ‘useful’ data required for AI usage. And ultimately, AI systems inherit not just the bias but also the quality and structure of the data they are trained on. So, if the training sets are poorly structured and include ‘junk’ data, outputs, and usability suffer. 

There’s also a significant knock-on effect with compliance and regulation. While regulatory bodies are yet to agree on a unified approach to AI regulation, it’s already becoming clear that visibility will be central to future requirements. In Europe alone, the EU AI Act and the NIS2 Directive are already signaling a broader push for stronger governance, transparency, and control over operational and training data. And without strong sovereignty, organizations will remain unable to map and understand their data landscape to adhere to existing and future requirements. 

Sorting the wheat from the chaff 

After the last few years of data growth, the sheer scale of the workloads most businesses now hold can seem daunting. Before organizations can improve their data hygiene, they first need to understand and classify their data. Not just for what it contains, but also according to how sensitive it is. A piece of data may be useful for a genAI pilot, but if it’s too sensitive, it cannot be used. This level of understanding not only avoids mistakenly giving genAI programmes sensitive data, but could also be key to creating genAI that delivers on its potential. Instead of training it on a pile of ‘useful’ data peppered with ‘junk’ data, organizations will be able to feed AI only the information it actually needs. 

Once this is all in place and you know what you’re working with, organizations can begin to define the sovereignty requirements for each data bucket, including both regulatory and locality rules. For some, the knee-jerk reaction is to restrict usage to meet the strongest requirements of data localization laws. Still, the EU’s GDPR, for example, doesn’t mandate localization within a specific EU country, just to the European Economic Area (EEA), although it does place strict restrictions on the transfer of personal data outside the EEA – creating a ‘soft localization’ effect in practice. There’s a lot of nuance within this, which is why many organizations are adopting hybrid or multi-cloud architectures to maintain flexibility over where workloads are processed and stored. With these, organizations can restrict data where needed to meet localization requirements, while still maintaining data portability, which will be essential as regulations continue to change. This flexibility and transparency allow organizations not just to monitor where their data resides, but who can access it - essential knowledge not just for compliance, but for security too. 

Not just a tickbox

Up until now, data sovereignty has been relegated to the bottom of the priority list, seen mostly as a compliance exercise. Organizations have ticked it off, but only as part of a longer list of regulatory requirements, rather than considering it as a vital part of their data strategy. But if fully understood and wielded correctly, aligned with the wider business strategy, it can do much more. 

Not only can it feed into the data governance frameworks that underpin operations, but it can also help inform and establish AI governance. With clean, structured, and classified data, organizations can finally unlock the true potential of their genAI pilots. 

So far, data sovereignty has been underestimated, but with genAI innovation stalling and regulation catching up, organizations can’t afford to do so any longer. 

Ghada Ismail

Positioned at the intersection of conversational AI and enterprise automation, Amira AI Almost Human is a Germany-origin platform delivering AI-powered customer experience and sales solutions across the Middle East and Europe. Headquartered in Dubai and operating under AC Group Middle East, the company enables businesses to automate interactions across voice, chat, email, and messaging platforms in more than 120 languages, offering what it describes as a highly human-like AI interface. 

Designed as an omnichannel automation layer, Amira’s technology integrates with enterprise systems to streamline customer service, qualify sales leads, and manage high volumes of interactions in real time. Its platform is used by over 150 enterprises, spanning industries where responsiveness and customer experience are critical, positioning the company as a key player in the growing adoption of AI-driven customer engagement solutions in the region. 

In this interview, Andreas Willmers, CEO of Amira.ai Almost Human, discusses how the company is addressing long-standing inefficiencies in customer care, the evolving concerns around AI adoption, and the opportunities emerging in Saudi Arabia’s rapidly advancing digital economy.

What problem are you solving today by using different AI tools?
We are solving a wide range of customer care challenges. We position ourselves as one of the world’s leading AI and automation platforms, enabling companies to automate processes across voice, chat, and virtually any communication channel. Our platform connects from anywhere to anywhere, acting as an API layer before, during, and after every conversation.

A key issue we address is waiting time. Traditionally, when customers call an airline or similar service, they may wait up to 45 minutes before being assisted. With AI, we can pick up calls within 10 seconds and resolve up to 80% of inquiries without involving a human agent. In effect, companies gain access to a virtually unlimited workforce that can respond instantly while maintaining a human-like interaction.

Beyond customer care, we also support sales processes by qualifying large volumes of leads. For instance, in real estate, agents often struggle to reach potential clients. Our platform can contact and qualify an unlimited number of leads immediately, improving efficiency and reducing frustration.

Ultimately, customer service becomes faster, more accessible, and available 24/7 across all channels, whether WhatsApp, email, phone, Slack, or Telegram. With full context awareness, we can resolve issues more efficiently, resulting in higher customer satisfaction, improved net promoter scores, increased sales, and reduced operational costs.

What is the top concern your clients raise about AI, and how do you address it?
There are companies that are already highly prepared for AI and understand that it is not perfect and is still evolving. However, the primary concern we encounter is data security, which is especially critical when working with banks and large enterprises such as Vodafone, Volkswagen Group, and L’Oréal.

To address this, we implement strict security measures. Unlike some smaller providers that directly connect AI systems to CRM platforms, we always introduce a security layer in between. This ensures that AI never has direct access to the CRM. Additionally, within workflows, we define precisely what information the AI can request and what it can return. Proper orchestration and security layers are essential to maintaining data integrity and protecting sensitive information.

Are there any collaborations or partnerships your company is considering in the Saudi market?
We already have partnerships in place. Our solution is fully white-labelable, meaning partners can adopt our technology, brand it with their own identity, and offer it under their name. This significantly expands market opportunities.

Our platform covers the full ecosystem, including agentic capabilities, call analysis, agent training, and real-time assistance. In markets like Saudi Arabia, this model enables large IT companies—previously focused on equipping call centers or providing telecom infrastructure—to integrate our solution and offer it to enterprises under their own brand.

We are actively seeking additional white-label partners in Saudi Arabia, as well as large enterprise clients that are ready to transition to AI-driven automation.

In your opinion, which sectors in Saudi Arabia are most ready for AI transformation?
Sectors with high customer interaction are the readiest. This includes hospitality, real estate, banking, airlines, and insurance. These industries handle large volumes of customer inquiries and place significant importance on customer satisfaction. Wherever customer experience is critical, AI adoption becomes both necessary and highly impactful.

How does your company approach responsible and ethical AI deployment?
Since AI is not perfect, it is essential to implement oversight mechanisms. Our approach involves deploying a second AI system to monitor and evaluate the performance of the first. Every interaction is continuously assessed from a technical standpoint to ensure quality and accuracy.

For example, after each call, we analyze how the AI performed, what actions it took, and whether all queries were handled correctly. This constant monitoring ensures that the system maintains high standards and operates responsibly.

How do you envision AI shaping the broader business landscape in Saudi Arabia?
Saudi Arabia is a large and diverse market, and AI will inevitably impact every industry. Those who believe they do not need AI today are similar to those who believed they did not need the internet in the 1990s.

AI will enhance customer service, automate business processes, and enable faster, more efficient operations. Ultimately, it will lead to higher customer satisfaction and increased revenue across sectors.

Kholoud Hussein

When Saudi Arabia speaks today about diversification, innovation, and economic transformation, it increasingly looks upward—toward space. The Kingdom’s renewed focus on aerospace, satellite technology, and advanced data infrastructure has opened the door for a new generation of companies operating at the intersection of engineering, artificial intelligence, and orbital science. Among the most promising of these emerging players are micro-constellation startups, a sector that only a decade ago barely existed in the region. Today, it stands as one of the most strategically significant fields shaping the Kingdom’s long-term vision for sovereignty, technological leadership, and economic competitiveness.

Micro-constellation startups specialize in designing and launching large clusters of small satellites—often no bigger than a shoebox—that fly in formation around Earth. Together, they function as a coordinated network, collecting environmental, commercial, and geospatial data in real time. Unlike traditional satellites, which can cost hundreds of millions of dollars and take years to build, micro-constellation satellites are lighter, cheaper, and faster to deploy. Their rise globally has transformed satellite services from the domain of governments and aviation giants into a competitive new arena where startups can innovate.

Saudi Arabia, recognizing the strategic importance of this shift, is now moving aggressively to cultivate its own micro-constellation ecosystem. Through policy, funding, infrastructure, and investment incentives, the Kingdom is working to ensure it becomes a regional leader—and eventually, a global contributor—in the new space economy.

A Strategic Bet Aligned With Vision 2030

The push toward micro-constellation technology is not a standalone effort; it is embedded deeply within the national transformation agenda. The Kingdom’s Vision 2030 identifies aerospace and space technology as critical components of its future industrial base. For policymakers, satellites are not merely scientific tools. They are engines of economic intelligence, national security, climate strategy, and digital transformation.

Saudi officials acknowledge this openly. In comments made during the Saudi Space Agency’s 2024 annual forum, a senior representative stated that “space data will be a foundation of the Kingdom’s digital economy.” He emphasized that the small satellite model—flexible, affordable, and scalable—offers a unique opportunity for Saudi entrepreneurs and engineers to compete globally without the prohibitive capital costs that once hindered regional participation in the sector.

Investment figures reflect this seriousness. Over the past four years, Saudi Arabia has invested more than SAR 8 billion ($2.1 billion) in space-related initiatives across the Agency’s program portfolio. These investments include satellite manufacturing facilities, research partnerships with global aerospace companies, university programs dedicated to aerospace engineering, and the creation of local talent pipelines. The goal is clear: micro-constellation startups are not meant to be fringe experiments. They are intended to become anchors in the Kingdom’s broader technological landscape.

How Micro-Constellation Startups Operate—and Why They Matter

Micro-constellation startups operate with a fundamentally different model than traditional satellite companies. Instead of building a single, extremely expensive satellite designed to last fifteen years, they develop fleets of small satellites in low-earth orbit, each designed for specific functions. By working in synchronized clusters, they can generate continuous streams of high-frequency imagery, climate readings, maritime activity, agricultural data, and IoT connectivity.

This shift has reshaped industries worldwide. For example, farmers can now optimize irrigation using images captured multiple times per day; shipping companies can track fleets with unprecedented precision; and governments can monitor environmental degradation in real time. What once required billion-dollar budgets can now be done for a fraction of the cost.

In Saudi Arabia, this capability is particularly powerful. The Kingdom’s geography—one of the world’s largest deserts combined with maritime zones, vast construction sites, and rapidly expanding urban landscapes—demands continuous monitoring. Micro-constellations offer exactly that. They allow policymakers, developers, and private companies to build accurate models of everything from water scarcity to population expansion.

The rise of mega-projects has only intensified this need. NEOM, Qiddiya, the Red Sea Project, Diriyah Gate, and other developments rely heavily on satellite intelligence for construction mapping, environmental monitoring, autonomous vehicle coordination, and logistical planning. An official from NEOM’s technology division recently noted that “no mega-project of this scale can function without satellite data,” a statement that underscored how micro-constellations have become indispensable infrastructure for the Kingdom’s most ambitious endeavors.

The Saudi Startup Scene: Who Is Operating in This Space?

While the sector is still in its early stages, several startups and early-stage companies are beginning to carve out territories within Saudi Arabia’s growing micro-constellation landscape. Some are focused on satellite manufacturing; others specialize in Earth observation analytics; still others focus on IoT connectivity for industrial operations.

One emerging company, often cited by industry analysts, is developing a fleet of small satellites dedicated to environmental monitoring, especially desertification and climate-change impacts on the Arabian Peninsula. Their models allow local governments to track vegetation patterns, water resources, and dune shifts—crucial data as Saudi Arabia pushes large-scale initiatives in food security and land restoration.

Another startup, representing a different slice of the ecosystem, does not build satellites at all. Instead, it purchases raw satellite imagery from global providers and uses AI to extract insights for Saudi clients. This includes mapping real-estate activity, monitoring progress on giga-projects, and aiding regulatory agencies in land-use enforcement. Their approach reflects an important truth: the micro-constellation economy is not only about building satellites; it is about building businesses around satellite data.

A Riyadh-based company has also begun developing IoT services through leased satellite networks, allowing remote mining sites, offshore platforms, and logistics operators to remain connected even when traditional signals fail. This expansion is particularly relevant as Saudi Arabia rapidly grows its mining sector—an industry that requires continuous monitoring in remote and rugged terrain.

Though the names of many of these startups remain under the radar as they finalize funding rounds, the ecosystem is expanding at a pace that mirrors global trends.

An Industry Poised for Foreign Investment

One of the most compelling aspects of the Kingdom’s micro-constellation push is its attractiveness to foreign investors and technology partners. Global aerospace companies—from Europe to East Asia—are closely monitoring Saudi Arabia’s market because it offers something few other regions can: scale, capital, and immediate demand.

Riyadh’s giga-projects alone create a multibillion-riyal market for Earth observation and geospatial analytics. The demand is not theoretical; it is active, measurable, and backed by sovereign funding. This makes Saudi Arabia a rare environment where satellite startups can find early commercial traction.

In late 2025, a European aerospace executive who visited the Kingdom remarked that “Saudi Arabia is the most commercially viable market in the Middle East for satellite manufacturing and space-data applications.” He pointed out that the Kingdom’s combination of funding, regulatory reforms, and tech-forward urban development makes it “the region’s first truly scalable space economy.”

Several foreign companies are now exploring joint ventures in satellite assembly, data centers for geospatial analysis, and partnerships with Saudi universities to generate local engineers. The Kingdom’s 100% foreign ownership policies for technology and R&D companies further amplify this momentum, making it far easier for global players to establish operations.

What Gaps Are Being Filled—and What Gaps Still Remain

The rise of micro-constellations fills several longstanding gaps in Saudi Arabia’s computational and strategic capabilities. First, it enhances data sovereignty, reducing dependence on foreign satellite networks for sensitive intelligence and economic information. In an era where data is increasingly tied to national security, this is a transformative advantage.

Second, it strengthens the Kingdom’s climate response. Saudi Arabia is undertaking massive initiatives to combat desertification, monitor carbon emissions, and improve water resource management. Continuous satellite monitoring is essential for all these activities, especially as the Kingdom pursues its ambitious commitment to plant tens of millions of trees under the Saudi Green Initiative.

Third, the industry supports the broader trend of industrial digitization. Sectors such as mining, logistics, energy, and construction all require real-time data, and satellite networks are providing the accuracy needed to modernize their operations.

However, gaps remain. Saudi Arabia is still building its local supply chain for satellite components, launch logistics, and ground infrastructure. While talent is emerging quickly, the Kingdom must continue to expand engineering programs and offer hands-on experience for young Saudi scientists. Funding, although increasingly available, will need to grow to support the capital-intensive nature of space-tech companies. Yet these gaps are precisely what startups—supported by government initiatives—are now working to fill.

The Road Ahead: Will Saudi Arabia Become a Space-Tech Hub?

The momentum behind micro-constellation startups suggests that Saudi Arabia is positioning itself as the Middle East’s leading space-technology hub by the early 2030s. Several indicators support this trajectory: a rapidly expanding startup ecosystem, rising venture investment, international partnerships, and a government that sees space as a strategic frontier rather than an experimental niche.

If current projections materialize, the Kingdom could see the launch of dozens of Saudi-built satellites, the rise of a domestic geospatial analytics sector generating hundreds of millions of dollars annually, and an increase in foreign aerospace companies establishing operations in Riyadh, Jeddah, and NEOM.

A senior official at the Saudi Space Agency recently summarized the Kingdom’s long-term outlook succinctly: “Saudi Arabia does not want to be a customer in the global space economy. It wants to be a contributor—and eventually, a leader.”

Micro-constellation startups, though still in their infancy, may well be the sector that propels that ambition into orbit.

Ghada Ismail

For years, the global digital economy has been built on a simple promise: move everything to the cloud. Data from phones, sensors, machines, and platforms would travel to centralized servers, be processed, and return with insights. That model worked well when speed was not critical, and data volumes were manageable.

Today, data is being generated everywhere, in factories, vehicles, hospitals, retail stores, and entire cities. And much of it needs to be processed instantly, not after a round trip to a distant data center. This is where Edge Computing comes in.

Edge computing is the practice of processing data closer to where it is created rather than sending it to centralized cloud infrastructure. Instead of relying on faraway servers, computation happens at or near the source, whether that is a sensor, a machine, a mobile device, or a local data node.

In Saudi Arabia, this shift is becoming especially important. As the Kingdom accelerates its digital transformation under Vision 2030, the demand for real-time intelligence across industries is rising fast. From smart cities to autonomous systems, edge computing is emerging as the invisible layer that makes this transformation possible.

The Shift from Cloud to Edge

Cloud computing is not disappearing. In fact, it remains the backbone of global digital infrastructure. But it has clear limitations when speed, scale, and immediacy are required.

One of the biggest challenges is latency. When data must travel to a centralized cloud region and back, even a few milliseconds of delay can matter. In applications like autonomous vehicles, industrial automation, or remote healthcare, that delay is not acceptable.

Bandwidth is another constraint. As billions of devices come online under the Internet of Things, continuously sending raw data to the cloud becomes inefficient and expensive. Not every piece of data needs to travel that far.

Edge computing solves these problems by complementing the cloud rather than replacing it. The cloud still handles heavy analytics, long-term storage, and training of large AI models. Edge systems handle immediate decision-making, filtering, and local processing.

This shift is tightly connected to three major technological trends shaping Saudi Arabia’s digital future.

First is artificial intelligence. AI systems increasingly require real-time inference at the point of action. Second is IoT growth, where sensors and connected devices generate constant streams of data. Third is real-time decision-making, which is becoming essential in sectors ranging from logistics to energy.

Together, these forces are pushing computing closer to the edge.

Why Saudi Arabia Is Positioned for Edge Computing

Saudi Arabia is not just adopting digital infrastructure; it is building it on a national scale.

Under Vision 2030, the Kingdom is investing heavily in becoming a global technology and innovation hub. This includes everything from smart infrastructure and digital government services to giga-projects designed around data-driven ecosystems.

Projects such as NEOM, the Red Sea development, and other smart city initiatives are designed from the ground up to rely on real-time data flows. These environments cannot function efficiently if every sensor, camera, or autonomous system must depend on distant cloud servers. They require distributed intelligence, which is exactly what edge computing provides.

Another key factor is data sovereignty. As digital systems become more critical to national infrastructure, there is a growing emphasis on keeping sensitive data within local borders. Edge computing enables localized processing, reducing reliance on external data centers while improving security and regulatory control.

In parallel, Saudi Arabia’s expanding cloud infrastructure, supported by global players and local providers, creates a strong foundation for edge-cloud hybrid systems. Rather than choosing between the cloud and the edge, the Kingdom is increasingly building an integrated ecosystem that uses both.

Key Use Cases Across Industries

The real impact of edge computing becomes clear when looking at how it is being applied across industries in Saudi Arabia. In the energy sector, particularly in large-scale oil and gas operations, vast volumes of operational data are generated across upstream and downstream systems. Edge computing architectures can enable faster monitoring of equipment, predictive maintenance, and real-time anomaly detection by processing data closer to the source rather than relying solely on centralized systems. This approach helps improve operational efficiency and reduce downtime across critical energy infrastructure.

In smart cities and giga-projects such as NEOM and the Red Sea developments, edge computing plays a foundational role. Autonomous transport systems, smart grids, surveillance networks, and environmental sensors all rely on instant data processing. Without edge infrastructure, the responsiveness required for these environments would not be achievable.

Healthcare is another area seeing rapid transformation. Real-time diagnostics, connected medical devices, and remote patient monitoring systems require instant data interpretation. Edge computing allows hospitals and healthcare providers to process patient data locally, reducing delays that could affect critical decisions.

In logistics and retail, edge computing supports automation in warehouses, real-time inventory tracking, and smarter supply chain management. Delivery fleets, for example, can benefit from instant route optimization based on live traffic and operational data.

The gaming and entertainment industry is also becoming a major beneficiary. Cloud gaming, augmented reality, and immersive digital experiences require ultra-low latency. Edge nodes placed closer to users significantly improve performance, enabling smoother gameplay and more responsive digital environments.

The Emerging Edge Ecosystem in Saudi Arabia

As demand grows, a new ecosystem of infrastructure and technology providers is beginning to take shape in Saudi Arabia and the wider region, supporting the shift toward distributed and edge-enabled computing.

Local players are laying much of the groundwork. Edarat Group is one example, offering data center engineering, cloud services, and edge AI capabilities, while also partnering with global firms to deploy modular infrastructure closer to where data is generated. This positions it as part of the emerging layer, enabling more distributed computing models.

Another company contributing to this foundation is Ezditek, which is investing in large-scale data center capacity and digital infrastructure, including projects linked to NEOM. While not exclusively focused on edge computing, such investments are essential in building the physical backbone that edge architectures depend on.

On the global side, specialized technology firms are also entering the Saudi market. EdgeCortix, for instance, is expanding into the Kingdom through the National Semiconductor Hub, bringing energy-efficient AI accelerator technologies designed specifically for edge environments. This reflects a broader industry shift toward embedding AI processing directly into devices and localized nodes, rather than relying solely on centralized cloud infrastructure.

Together, these companies represent an early-stage but rapidly evolving ecosystem that combines infrastructure providers, AI hardware innovators, and distributed computing platforms.

Challenges Slowing Adoption

Despite strong momentum, edge computing adoption in Saudi Arabia still faces several challenges.

One of the most significant is infrastructure cost. Deploying distributed edge nodes across a large geography requires substantial investment in hardware, connectivity, and maintenance. Unlike centralized cloud models, edge systems are physically dispersed, making them more complex to scale.

Another challenge is talent. Edge computing sits at the intersection of cloud engineering, networking, cybersecurity, and artificial intelligence. The demand for professionals with cross-disciplinary expertise is growing faster than supply, creating a skills gap that needs to be addressed through education and training.

Integration is also a technical hurdle. Most enterprises in Saudi Arabia are already operating on cloud platforms. Integrating edge systems with existing cloud architectures requires careful design to ensure consistency, security, and data synchronization.

Finally, the market is still in its early stages. While interest is high, large-scale deployments are still emerging, meaning that best practices, standards, and regulatory frameworks are still evolving.

The Future ahead

The next phase of edge computing in Saudi Arabia will likely be defined by convergence.

Edge and artificial intelligence are becoming deeply interconnected. Instead of sending data to the cloud for AI processing, models are increasingly being deployed directly at the edge. This allows systems to make decisions in real time, from autonomous machines to smart infrastructure.

At the same time, the Kingdom is expected to see a rise in localized data infrastructure. More edge data centers, micro data centers, and distributed computing nodes will emerge closer to population centers and industrial zones.

This evolution positions Saudi Arabia as a potential regional edge computing hub, not just a consumer of global technology but a producer and exporter of advanced digital infrastructure capabilities.

Investor interest is also expected to increase as the ecosystem matures. As edge use cases become more visible and commercially viable, startups and venture capital activity in this space will likely accelerate.

Conclusion: Edge as Invisible Infrastructure

Edge computing will not be something most people see or interact with directly. It will not be a visible platform or a consumer-facing application. Instead, it will function as invisible infrastructure, powering the systems that define modern life.

From smart cities that respond instantly to environmental changes, to autonomous systems that make split-second decisions, to digital services that operate without delay, edge computing will sit quietly beneath it all.

In Saudi Arabia, this shift is particularly significant. As the Kingdom builds one of the world’s most ambitious digital transformation agendas, edge computing is becoming one of its most essential enabling layers.

It is not replacing the cloud. It is completing it.

Shaimaa Ibrahim 

In a rapidly evolving hospitality landscape, extended-stay accommodation is emerging as one of the region’s most dynamic yet underserved segments. As workforce mobility rises and demand increases for flexible, long-term living solutions, traditional hospitality models are reaching their limits. Persistent pricing inefficiencies, fragmented supply, and the absence of enterprise-grade infrastructure continue to define a market that is still in the early stages of digital transformation.

In this exclusive interview, Osama Shawky, Founder and CEO of estaie, shares insights into how the company is redefining the extended-stay category through AI-driven pricing, platform-based infrastructure, and strategic supply aggregation. He discusses the key structural gaps in the market, the transformative role of AI in hospitality technology, and estaie’s ambition to position itself as a foundational infrastructure layer for extended stays across the region. Shawky also outlines the company’s growth strategy following its recent funding round, its expansion priorities in Saudi Arabia, and the regulatory and operational challenges shaping its path forward.

What key gaps exist in the Extended-Stay market, and how is estaie addressing them differently from traditional platforms?

The extended-stay market is fundamentally underserved. Monthly stays are treated as a secondary use case, pricing is static, and enterprise workflows are missing. estaie addresses these challenges by building a dedicated platform for stays ranging from 30 to 365 nights, combining AI-driven pricing, enterprise infrastructure, and aggregated supply. The most complex gap is pricing, which we are addressing through proprietary, patent-pending intelligence.

How is AI transforming hospitality tech, and which applications have the greatest impact on customer experience and operational efficiency?
AI is shifting hospitality from static distribution to real-time optimization. The biggest impact comes from dynamic pricing, demand forecasting, and the automation of booking and billing processes. In extended stays, AI is critical because it optimizes duration, pricing, and operations simultaneously.

How mature is the hospitality tech sector in the region, and where does estaie aim to position itself in this digital transformation?

The hospitality tech sector in the region is still in its early stages, especially in the extended-stay segment, where there is a heavy reliance on manual processes. This creates a clear opportunity. Our ambition is to position estaie as the infrastructure layer for extended stays across the region.

How are startups driving innovation in hospitality tech, and how can they redefine traditional business models?
Startups are shifting the model from asset-heavy to platform-driven. However, real innovation goes beyond user experience—it involves solving challenges around pricing, supply standardization, and enterprise integration. That’s where we are focused.

After your recent funding round, what are your top priorities for deploying capital, particularly in tech infrastructure and strategic partnerships?

We’re prioritizing defensibility. This includes investing in AI-driven pricing infrastructure, building enterprise integrations, and expanding supply through strategic partnerships. The objective is to create strong network effects early.

Why is the Saudi market a priority for expansion, and what opportunities are you targeting in Riyadh?
Saudi Arabia represents one of the largest pools of unmet demand globally for extended stays. Riyadh is becoming a hub for corporate relocation and project-based work, but the supply remains fragmented. We are targeting this demand-supply imbalance early.

What regulatory and operational challenges do you anticipate in Saudi Arabia, and how are you preparing to address them?

The main challenges revolve around classification, compliance, and billing structures. We are addressing them through local partnerships, regulatory alignment, and product localization. These complexities ultimately become barriers to entry.

What factors drive your strong monthly growth, and how did you quickly build a partner network of hundreds of hotels?

Our growth is driven by solving a high-value problem for both corporates and supply partners. We deliver better pricing, higher occupancy, and a seamless experience. This alignment, combined with fast execution and low onboarding friction, has enabled rapid network expansion.

What is your strategic forecast for the future of the extended-stay market in the region?

We see extended stays becoming a distinct, technology-driven category within the hospitality sector, driven by workforce mobility and flexible living. The core challenge—pricing and standardization at scale—remains unsolved, and that’s where we are building our advantage.

Ghada Ismail

As artificial intelligence reshapes the cybersecurity landscape, organizations are facing a new generation of digital threats, many of which are powered by the same technologies designed to improve business operations. In response, cybersecurity providers are increasingly embedding AI into their defense systems while also developing tools to secure AI itself.

TrendAI is positioning itself at the center of this shift. Headquartered in Tokyo and operating globally, the company leverages artificial intelligence and decades of cybersecurity expertise to help enterprises, governments, and organizations secure their digital environments across cloud, networks, endpoints, and emerging AI systems.

In this interview, Mahmoud Safwat, Country Manager for Egypt at TrendAI, discusses how AI is transforming cybersecurity operations, why securing AI systems is becoming just as critical as using them, and how organizations can balance innovation with responsible and regulated AI deployment. He also shares his perspective on whether AI is a passing trend or a long-term technological shift that will redefine how businesses operate.

How is AI transforming your core business operations, products, or services?
As you can see, our company is called Trend AI now. Trend AI has been working in cybersecurity—we are a cybersecurity leader globally. We have been in the market for over 35 years now as a Japanese company.

As AI is transforming everything in our industry, it is essential for our business. In our solutions, we focus on the evolution of technologies driven by AI. Basically, we have two main things: AI for security and security for AI.

AI for security means we integrate AI into our cybersecurity solutions to enhance our ability to detect cyber threats, attacks, and the many new types of threats emerging today. Especially because attackers are using AI too—they are innovative in how they execute malicious attacks—so we must be prepared. We need intelligence and adaptability, and AI helps us integrate these capabilities across all layers: endpoints, user machines, networks, data centers, and the cloud. Every layer of the customer’s environment is secured, and AI is at the core of it.

On the other side, we ensure our solutions fit customer needs when they want to integrate AI in their business. When clients deploy AI to enhance operations, we secure it so they can use AI safely and smoothly. They don’t have to worry about the consequences of reckless AI usage. We adapt our solutions to protect their AI infrastructure and enable businesses to leverage AI confidently.

How does your company approach responsible and ethical AI deployment?
Cybersecurity is our bread and butter. That’s our first priority. We integrate AI in our security solutions and secure AI itself to ensure its ethical usage. For example, if a user in a company is using an AI tool, we make sure no confidential data leaks. We prevent malicious use and regulate AI so that all data remains safe.

All AI tools within a company are regulated. Users operate within safe limits, protecting both the business and its data. This ensures AI is used ethically and responsibly, aligning with company policies.

What problem are you solving today by using AI technologies in your company? What client pain points are you addressing?
Our main focus is securing customer data. The biggest pain point for clients today is the evolution of attacks, especially as attackers also use AI to innovate. We help clients feel secure and cope with this evolving threat landscape.

Our AI-integrated products detect, respond, remediate, and even protect against attacks. They include proactive security features—we don’t wait for an attack. We predict potential threats, assess asset vulnerabilities, identify attack paths, and act before attacks happen.

We aim to stay ahead of threats, regularly assess the current security posture, and provide recommendations to close any gaps. If an attack occurs, we are ready to handle it fully, using AI at the core of our solutions.

Is regulation slowing AI innovation or making it stronger?
I totally believe regulation makes it stronger. Using AI without guidance leads to consequences. Regulation sets boundaries, defines what’s right, and allows us to build solid foundations.

I like to compare it to driving a car: brakes may slow you down, but they make you safe. You can go faster when you’re confident in your brakes. Similarly, regulation helps us use AI safely and ultimately advance faster, avoiding potential obstacles and setbacks.

Do you think AI is just a hype that will cool down over time?
I don’t think so. AI is still in its early stages. Yes, it’s booming and growing fast, but we’ve seen similar trends with the internet and other transformative technologies—they became essential and remain so.

Do you believe AI is a replacement for human talent or an enhancement tool for productivity?

AI will continue enhancing businesses, operations, and daily life—personally and professionally. Will it replace humans? No. Humans must supervise AI. Talents are critical. People need to maintain knowledge and learn how to leverage AI to work smarter, not replace their jobs. AI will make work easier, smoother, and more efficient, but humans remain central. AI is here to enhance, not replace, human work. It’s a tool that makes life better, helps businesses thrive, and ensures we can respond to a fast-changing cybersecurity landscape safely.

Kholoud Hussein 

Saudi Arabia’s automation revolution is no longer a distant future scenario—it is happening now, quietly and rapidly, across warehouses, factories, hospitals, and retail floors. Robotics and automation startups are emerging as some of the most strategically important actors in the Kingdom’s transition to a highly productive, digitally enabled economy. Their ascent aligns directly with the ambitions of Vision 2030, which places productivity, economic diversification, and advanced manufacturing at the center of national development.

Over the past five years, Saudi Arabia has witnessed a surge in investments, pilot programs, and digital infrastructure that has opened space for entrepreneurs to build automation solutions tailored to the Kingdom’s industrial needs. As global supply chains transform and AI-driven robots become more affordable and adaptive, Saudi startups are stepping into a market previously dominated by global tech players—and increasingly, they are building systems from the ground up for local conditions.

The robotics and automation sector in Saudi Arabia is on a trajectory toward exponential growth. Analysts estimate that the Kingdom’s automation market will surpass $2.5 billion by 2030, driven by government-backed industrial investments, gigaproject construction timelines, and rising labor productivity targets. Yet the real story lies in the startups leading this transformation—young companies using software, hardware, and AI to solve operational bottlenecks and build new economic capabilities inside the Kingdom.

A Market at the Crossroads of Demand, Technology, and National Strategy

Saudi Arabia’s economic structure makes it uniquely positioned for robotics adoption. The country has one of the largest construction pipelines in the world, including NEOM, The Line, Diriyah Gate, and dozens of industrial cities under the Ministry of Industry and Mineral Resources. These projects demand large-scale automation in logistics, maintenance, manufacturing, and infrastructure operations.

The Kingdom also faces a demographic transformation. With a young population entering the workforce and national goals to increase productivity across sectors, robotics is becoming a strategic tool—not to replace jobs, but to build more efficient, higher-skilled employment structures. Officials from the Ministry of Economy have repeatedly emphasized that automation is essential for building globally competitive industries. As one senior government advisor put it recently: “Saudi Arabia will not meet its productivity ambitions without embedding robotics deeply into the industrial and services sectors. Automation is not just an option—it is an economic necessity.”

This national recognition is reflected in major policy programs such as the National Industrial Strategy, which calls for expanding automation to increase non-oil manufacturing output, and the Saudi Data and AI Authority’s (SDAIA) AI roadmap, which encourages AI-based automation across government and private enterprises.

Startups at the Center of the Kingdom’s Automation Momentum

Although global providers such as ABB and Siemens maintain a presence in the country, the most transformative developments are emerging from local startups designing automation solutions tailored to Saudi Arabia’s operational environments. Their models reflect the specific bottlenecks faced in Saudi logistics networks, retail, food services, manufacturing plants, and healthcare facilities.

One of the standout players is Exa Robotics, a Saudi startup specializing in autonomous logistics robots now being deployed in warehouses and retail backrooms. The company’s units are designed to operate in high-temperature environments and navigate complex layouts, a challenge global robots rarely optimize for. Exa Robotics has grown rapidly, supported by local investors who view logistics automation as essential to supporting the Kingdom’s booming e-commerce economy.

Another rising startup is Red Sea Robotics, which focuses on industrial and inspection robots designed for oil, gas, and petrochemical plants. The startup builds autonomous systems that inspect pipelines, monitor heat levels, and navigate hazardous areas—reducing operational downtime and lowering safety risks in one of the Kingdom’s most critical industries. Global energy operators have shown interest in the product line, and the company has secured pilot programs with major industrial operators in the Eastern Province.

In the consumer and service sector, companies such as Smartr, which produces AI-driven service robots for retail and hospitality, are capitalizing on the Kingdom’s growing experience economy. Their robots greet customers, provide product information, deliver orders, and analyze foot traffic. During the 2023 Riyadh Season, Smartr’s robots were deployed across entertainment zones, demonstrating the potential for automation in customer-facing environments.

Saudi Arabia’s food and beverage sector is also witnessing robotics adoption led by startups like Botit, Nana Automation, and several emerging players working on robotic baristas, automated food preparation systems, and self-service culinary units. As the restaurant and café industry grows—especially in regions like Riyadh, Khobar, and Jeddah—operators are seeking to reduce operational costs while maintaining consistent service quality.

All these examples reflect a broader trend: automation is no longer limited to heavy industry. It is becoming a cross-sector force accelerating productivity across the Saudi economy.

The Investment Momentum Behind Saudi Robotics

Although robotics remains a capital-intensive sector, investment appetite in Saudi Arabia is growing steadily. Venture capital firms, corporate investors, and government-backed funds increasingly view automation as a core pillar of the Kingdom’s next industrial wave.

According to regional investment reports, robotics and automation startups in Saudi Arabia raised over SAR 400 million ($106 million) in disclosed funding over the past three years. Actual numbers are likely higher when undisclosed rounds and government grants are included. Investors are attracted to the sector because it aligns directly with national priorities. Funds such as STV, Raed Ventures, Impact46, and SVC have signaled strong interest in deep tech, supply chain technologies, and AI-powered industrial solutions.

One investor familiar with the space noted: “We’re seeing robotics move from pilot stages into full commercial deployment in Saudi Arabia faster than in many global markets. Vision 2030 has created clear demand, and startups that can demonstrate reliability have enormous growth potential.”

Foreign investors are also entering the market. Asian robotics manufacturers are exploring joint ventures in the Kingdom, encouraged by government incentives that support local manufacturing. European startups in industrial robotics are seeking partnerships with Saudi distributors, especially for warehouse automation and construction robotics. In 2024, two U.S.-based automation startups announced plans to establish Saudi subsidiaries after securing contracts with megaprojects.

With Saudi Arabia committing more than SAR 350 billion ($93 billion) to industrial expansion under the National Industry Strategy, robotics startups are well positioned to capture a share of this capital over the coming decade.

The Gaps Saudi Robotics Startups Are Filling

Saudi automation startups are emerging precisely where the market faces operational inefficiencies. Several gaps define the landscape:

The first is localization. Many global robotics systems are not optimized for Saudi climates, industrial conditions, or operational rhythms. Startups are addressing this mismatch by building robots capable of functioning in heat-intensive environments, wide warehouse layouts, and unpredictable retail foot traffic.

Another gap is integration. Many Saudi companies operate with fragmented digital and physical systems. Startups are offering plug-and-play automation platforms that integrate with ERP systems, inventory software, and AI analytics, enabling companies to automate without rebuilding entire infrastructures.

There is also a significant gap in mid-market automation. Large enterprises can afford global robotics solutions. SMEs cannot. Saudi startups are building affordable, modular robots designed for smaller retailers, mid-size warehouses, logistics hubs, and clinics.

Finally, startups are filling the workforce capability gap by creating easy-to-deploy robots requiring minimal technical training. As one manufacturing executive in Riyadh observed: “The most impressive thing about Saudi robotics startups is not the hardware—it’s the accessibility. They design systems that our teams can learn in days, not months.”

The Gaps That Still Need to Be Filled

Despite notable progress, several structural gaps remain in the Saudi robotics ecosystem.

One is localized hardware manufacturing. While software and AI development are growing rapidly, physical robot production still depends heavily on imports. Building local hardware capacity would reduce costs, shorten supply chains, and accelerate deployment.

Another gap is specialized robotics talent. Although universities are expanding AI programs, the Kingdom needs more engineers trained specifically in robotics hardware, embedded systems, and advanced mechatronics. Startups often rely on international recruitment, slowing down development cycles.

There is also room for sector-specific robotics, particularly in agriculture, construction, and healthcare—three areas where automation potential is high but still underdeveloped.

Finally, testing and regulatory pathways need to evolve. Robotics companies often face long approval processes for deploying autonomous units in public spaces or industrial zones. A streamlined regulatory framework, similar to those in South Korea or Singapore, could accelerate innovation dramatically.

How Robotics Startups Support Vision 2030

Robotics sits at the intersection of nearly every Vision 2030 pillar: productivity, technology, manufacturing, and human capital development. Automation plays a direct role in:

• increasing non-oil GDP through advanced manufacturing
• improving operational efficiency across logistics, energy, and construction
• enabling megaprojects that require high-speed, high-precision execution
• creating new high-skilled jobs for Saudi youth
• positioning the Kingdom as a regional hub for deep tech

As a senior SDAIA official recently stated: “Robotics will be one of the most important contributors to Saudi Arabia’s future economic competitiveness. Every major sector will rely on intelligent automation.”

Robotics also strengthens the Kingdom’s ability to attract global investors and manufacturers. As more industries adopt automation, the operational environment becomes more predictable, efficient, and globally competitive—qualities international firms seek when choosing manufacturing locations.

Foreign Investments and International Partnerships

Saudi Arabia has become a magnet for foreign robotics companies seeking regional expansion. Asian robotics providers are exploring local assembly facilities, encouraged by Saudi incentives tied to local content. European automation companies, particularly in warehouse and industrial robotics, are forming partnerships with Saudi retailers and manufacturing groups.

Several U.S. and Canadian AI-robotics startups have established Riyadh offices in 2024 after securing contracts with giga-projects, which require high-precision automation in energy, mobility, and urban infrastructure.

These patterns suggest that Saudi Arabia is positioning itself not only as a consumer of robotics technology, but as a regional production and development hub.

Finally, robotics and automation startups in Saudi Arabia are not simply following global trends. They are building solutions tailored to the Kingdom’s industrial realities, workforce needs, and economic ambitions. In doing so, they are playing a crucial role in transforming Saudi Arabia into a high-productivity, advanced-technology economy.

Over the next decade, the Kingdom’s robotics sector will expand far beyond warehouses and manufacturing floors. Autonomous systems will become embedded in healthcare, hospitality, retail, agriculture, and national giga-projects. With strong government backing, rising investor interest, and a growing base of homegrown innovators, Saudi Arabia is on track to become one of the Middle East’s most dynamic automation markets.

The coming years will determine the pace of this transformation. But the direction is clear: robots and automation startups will shape the next chapter of Saudi Arabia’s economic story—and they will do so at a scale the region has never seen before.

Mohamed Ramzy

The information technology sector in Egypt and the broader region is experiencing an accelerating digital transformation, making cloud computing, managed services, and cybersecurity key pillars to support digital transformation in the government and private sectors. This momentum helped create significant growth opportunities for companies specializing in digital infrastructure, particularly those with deep expertise in Egypt and the broader region.

Link Datacenter (LDC) stands out as a leading provider of cloud computing, managed services, and cybersecurity solutions in the region. Therefore, Sharikat Mubasher conducted an interview with Gamal Selim, CEO of Link Datacenter, to discuss the company’s vision, its role in supporting digital transformation, and its future growth plans.

First, we would like to know more about Link Datacenter and the key milestones in its development since its establishment.

Link Datacenter was founded in 1996 as the data center arm of LINKdotNET, at a time when internet services in Egypt were still in their infancy. This enabled the company to be an integral part of the early digital infrastructure in the market. 

With the expansion of internet usage in the early 2000s, the company has witnessed significant growth driven by rising demand for hosting services and digital infrastructure, establishing itself as a technology partner to several major platforms in Egypt and the region.

The company also went through key milestones, most notably the wave of M&A in the sector, especially after Mobinil (later acquired by Orange) acquired LINKdotNET. This acquisition enabled the company to access more advanced technologies and reach a broader customer base.

In 2009, the data center and cloud computing activities were consolidated into an independent entity, marking a turning point in offering a comprehensive suite of managed services, including cloud computing, cybersecurity, and digital infrastructure, while helping customers adopt artificial intelligence (AI) technologies.

Today, the company delivers its services through its data centers, via strategic partnerships with global entities such as Microsoft, or directly within the customer’s environment, based on the needs of each sector.

What is the volume of your current customer base? And how does the company classify them according to services?

The company has a diverse customer base that spans various sectors. It serves thousands of clients, delivering ‘business essentials’ which include domain registration and email hosting.

We also provide services to around 500 large enterprises and SMEs that rely on cutting-edge services, including cloud computing, cybersecurity, and advanced hosting.

Customers are classified according to their needs: startups rely on basic services, while larger enterprises rely on integrated solutions and more sophisticated infrastructure to ensure operational efficiency and security.

What is Link Datacenter’s growth strategy over the coming years? And does the company target expanding customers base?

Link Datacenter’s strategy is centered on growing business volume overall, not just increasing the number of customers, as the genuine value lies in maximizing the benefit for existing customers from the services provided.

The company targets an annual growth rate of 30% to 40% in both revenues and operations, by expanding existing customers’ adoption of its services, developing new solutions that meet their evolving needs, and attracting new customers in promising sectors.

However, priority remains on value and operational quality for each customer, as the targeted growth can be achieved by deepening existing partnerships without relying solely on increasing customer numbers.

What are the company’s investment and expansion plans amid accelerating digital transformation and AI adoption in Egypt?

We are constantly working to enhance our portfolio to meet market needs, particularly in digital transformation and AI fields. We help our customers host and run Large Language Models (LLMs), ensuring they have maximum value based on the nature of each business.

We also have a fully specialized cybersecurity department, including the Security Operations Center as a Service (SOC as a Service), which targets mission-critical business applications. These services are supported by qualified teams and advanced technologies that keep pace with the growing demands of digital businesses. 

How do you see the Saudi market amid the accelerating digital transformation under Vision 2030? And do you plan to expand there?

The Saudi market is one of the fastest-growing markets in digital infrastructure and cloud computing, driven by Vision 2030’s objectives, which place digital transformation at the forefront of its priorities.

We see significant opportunities in the Kingdom, notably in cloud computing, managed services, and cybersecurity fields. We continuously explore expansion and partnership opportunities in the Saudi market, whether through delivering our services directly or through local partnerships, in line with the market needs and regulatory requirements.

With over 25 years of experience in the Egyptian and regional market, what sets Link Datacenter apart from other competitors?

Link Datacenter has deep experience in providing hosting and managed services across the Middle East and Africa (MEA), supported by strong strategic partnerships with global companies, such as Microsoft and others.

This, combined with our extensive customer base, which includes government organizations, large enterprises, and SMEs, and our highly experienced team, positions us among the leading professional service providers.

We always strive to deliver customized solutions that precisely meet each customer’s needs, with a strong focus on security and continuous innovation.

Translation: Noha Gad

Kholoud Hussein

A new category of startups has started dominating global tech conversations: AI-native startups. Unlike traditional companies that add artificial intelligence as a feature, these startups are built entirely around AI from day one—their core product, business model, and operations all depend on machine intelligence. They don’t use AI as an enhancement; they use it as their foundation.

As the world moves deeper into the era of automation and generative models, AI-native startups are becoming one of the fastest-growing segments in the innovation economy. Their rise mirrors the early days of cloud-native companies, which emerged a decade ago and quickly redefined software development. But AI-native startups represent an even more disruptive shift—one that touches every sector, from finance and logistics to healthcare and digital media.

This new model raises important questions: How exactly do AI-native companies operate? Are they profitable? How quickly are users adopting them? And what does their presence look like in the MENA region?

What Makes a Startup “AI-Native”?

An AI-native startup integrates artificial intelligence into the very fabric of its value proposition. AI is not a tool—it is the product’s engine.

Instead of building software that performs a set of fixed tasks, these companies build systems that learn, adapt, and improve with every interaction. Their technology stacks are centered around large language models (LLMs), predictive algorithms, or autonomous decision-making engines.

An AI-native product might write code, diagnose a disease, optimize supply chains, generate marketing campaigns, detect fraud, or run an entire business workflow without human intervention. The more data it processes, the smarter and more efficient it becomes.

This architecture allows AI-native startups to scale quickly. They don’t need large teams or massive infrastructure. Their main assets are data, algorithms, and computational power.

How These Companies Operate in the Market

AI-native startups break the traditional build-test-iterate cycle. Instead of hard-coding features, they train and refine models. Their speed of execution is measured not by product releases but by how fast the system learns.

Internally, these startups operate with leaner teams. A product that once required 50 engineers might now be developed by 6 people supported by an AI-powered development pipeline. Sales teams use AI agents. Customer service is automated. Even marketing strategies are generated and tested through intelligent systems.

Their business models tend to follow patterns such as:

• Usage-based pricing – charging customers per output, like generations or transactions
• Subscription to an intelligent assistant – offering AI copilots for specialized industries
• API-first platforms – enabling other companies to plug into their intelligence layer
• Workflow automation – charging for processes the AI takes over

As a result, AI-native startups often have higher margins, lower operational costs, and faster product cycles than traditional software companies.

User Adoption Is Growing at Unprecedented Speed

Consumers and enterprises are adopting AI-native products faster than any technology wave since smartphones. The shift is driven by three main forces:

1. AI solves real, costly problems

From logistics failures to expensive medical diagnostics, AI systems remove inefficiencies that humans alone struggle to fix.

2. AI feels intuitive to use

Natural-language interfaces have lowered the barrier. You don’t need technical skills to interact with an AI assistant—you just talk to it.

3. Productivity gains are immediate

Companies experience measurable improvements within weeks. Costs fall, processing becomes faster, and output quality improves.

According to global surveys, over 70% of enterprises worldwide plan to increase their AI spending in 2026, with a significant share specifically targeting AI-native solutions rather than traditional AI tools.

Are AI-Native Startups Profitable?

AI-native companies benefit from a cost structure that grows more efficiently as they scale. Unlike conventional SaaS platforms that face rising customer support and development costs, AI models actually perform better with volume.

However, profitability depends on two factors:

• How efficiently the startup manages compute costs

Running large models can be expensive, especially at early stages. Well-built AI-native startups avoid unnecessary model training, compress their models, or specialize in niche use cases to reduce GPU dependency.

• How strong their data advantage becomes

Data is the defensible moat. AI-native startups that secure unique, domain-specific data sets become exponentially more valuable and harder to replicate.

When these two conditions align, AI-native startups often reach profitability far earlier than traditional tech companies. Several global AI-native players hit break-even within 12–18 months—something unheard of in the SaaS world.

The Future of AI-Native Companies

The next wave of AI-native startups will not simply automate tasks—they will automate entire business functions. Finance departments, HR operations, customer support centers, and logistics planning may eventually be run by autonomous, AI-orchestrated systems with minimal human intervention.

Industry analysts expect that by 2030, over 30% of new global startups will be AI-native by default, a trend driven by the falling cost of computing and the rise of developer-friendly AI infrastructure.

These companies will not replace humans; they will redefine roles. Employees will shift from operational tasks to oversight, strategy, and creative problem-solving.

AI-Native Startups in the MENA Region

The MENA region—especially the UAE and Saudi Arabia—is emerging as one of the most promising markets for AI-native companies. Major national strategies are fueling investment, including:

• Saudi Arabia’s National Strategy for Data and AI (NSDAI)
• The UAE’s National Artificial Intelligence Strategy 2031
• Expanding sovereign wealth fund participation in AI ventures

Dozens of emerging players are already gaining traction in fintech, logistics, retail, cybersecurity, and enterprise AI.

Saudi Arabia, in particular, is positioning itself to become a global AI hub by 2030. The Kingdom’s young and tech-savvy population, paired with massive public and private investment, makes it an ideal ground for AI-native models to scale quickly. Demand for intelligent enterprise solutions in sectors such as government services, healthcare, and e-commerce is rising sharply.

Regional adoption of AI-native platforms is growing fast, especially among SMEs seeking to automate operations without hiring large teams.

Finally, AI-native startups represent a fundamental shift in how companies are built, how products evolve, and how markets operate. Their agility, efficiency, and rapid learning cycles make them uniquely positioned to reshape industries at a speed traditional companies cannot match.

In the MENA region, the coming years will likely see an explosion of AI-native innovation as governments, investors, and enterprises push toward a more automated and data-driven economy.

These companies are not simply part of the future—they are the future.

Ghada Ismail

As artificial intelligence rapidly reshapes business operations across industries, companies are increasingly exploring how AI agents, enterprise solutions, and localized language models can transform decision-making and efficiency.

In this interview, Anas Elkhatib, Co-Founder and CTO of THAKAA AI Decision Support System, discusses how AI is redefining enterprise operations, the rise of agentic AI, and why Saudi Arabia is positioning itself as a key hub for artificial intelligence innovation.

How is AI transforming your core business operations, products, or services?

AI is truly the revolution of this era. One of the clearest ways we see its impact is in how it improves efficiency and return on investment across business operations.

For example, processes such as generating reports used to take weeks. Companies would need to gather data from multiple sources, organize it, and analyze it before producing meaningful insights. With AI solutions like the ones we provide at THAKAA AI Decision Support System, this entire process can now be completed in seconds.

Instead of manually compiling information, a user can interact directly with an AI agent. You can even have a phone call or a video call with the AI. During the interaction, the AI can present dashboards, answer questions in real time, and provide insights or recommendations.

It can also extract market data and compare a company’s performance with broader industry benchmarks within seconds. In practical terms, AI allows organizations to transform decision-making cycles from weeks into seconds while saving significant time and effort.

What recent AI innovations are you most excited about?

The speed of innovation in AI is remarkable—every day, there seems to be something new. Chatbots were the earliest and simplest stage of AI interaction, but today, the most exciting development is the concept of Agentic AI.

Agentic AI involves multiple AI agents with specialized knowledge communicating with one another. It works almost like a virtual team.

For instance, in our demonstrations we present what we call a virtual CXO team. Under each executive role—such as a virtual CFO—you can have supporting functions like financial planning and analysis or cost control. These AI agents communicate with each other. If one agent receives a question it cannot answer, it can consult another agent, such as a CHRO or CFO agent, to provide the necessary information.

In this way, AI agents collaborate internally to deliver more comprehensive responses and insights.

Does that mean AI will eventually replace human workers?

AI may replace certain roles, but it is important to emphasize the concept of human-in-the-loop.

Every recommendation produced by AI should be supervised by humans. In our systems, we do not allow AI to act independently. Instead, we control issues such as hallucination through enterprise-level solutions that ensure the AI only responds using trusted data.

Rather than relying on public information, the generative AI model is trained on the organization’s own internal data. This makes the system more reliable and secure.

At the same time, it is realistic to say that some jobs may change as AI becomes more widespread. However, new opportunities will also emerge. AI can increase productivity and create new economic activity, which ultimately leads to new roles and industries.

The key for individuals is to continue developing their skills and adapting to new technologies.

Are there any collaborations or partnerships your company is building in Saudi Arabia?

Yes, and we actually consider all of our customers in Saudi Arabia to be partners.

At THAKAA AI Decision Support System, we work with several public-sector entities, including the Ministry of Agriculture, the Ministry of Finance, and the Saudi Data and AI Authority. On the commercial side, we collaborate with organizations such as Jabal Omar in Makkah and other private-sector clients.

Our approach is based on knowledge exchange. When we implement our solutions, we share our technical expertise and lessons learned from previous projects. In return, our customers share their knowledge about their own industries and operational needs.

Because of this exchange of expertise, every client becomes a strategic partner that contributes to improving the overall solution.

Which sectors in Saudi Arabia are most ready for AI transformation?

Saudi Arabia is generally a very dynamic and rapidly developing market for AI adoption. However, if we look at industries that are particularly ready for large-scale implementation, I would highlight oil and gas and banking.

Enterprise AI solutions can require significant investment. Industries with strong financial resources are therefore often the earliest adopters. Oil and gas companies and financial institutions have the capacity to absorb these costs and implement AI at scale.

As technology becomes more accessible, we expect adoption to expand across many other sectors as well.

How does THAKAA approach responsible and ethical AI deployment?

Responsible AI is a key priority for us. From the beginning, our solutions have been designed with strong privacy and security frameworks.

Our platform is built as an enterprise solution rather than a consumer AI tool. This means that protecting company data is central to the system architecture.

For example, we apply several techniques to control AI hallucination, including advanced prompting and retrieval-augmented generation methods. We also implement strict security protocols when dealing with personally identifiable information (PII).

Sensitive information—such as employee names or contact details—is encrypted and masked to ensure it cannot be leaked or misused.

Additionally, we comply with regulatory frameworks issued by authorities such as the Saudi Data and AI Authority (SDAIA) and the National Cybersecurity Authority. In some cases, the system is deployed on-premises to ensure that all sensitive data remains fully secure within the organization.

Do your AI solutions support Arabic, including Saudi dialects?

Yes, and that is one of the key differentiators of our platform.

THAKAA was developed with Arabic language capabilities from the beginning. The system can communicate naturally in Arabic, including the Saudi dialect.

For example, we use the technology in call center environments. In many cases, people speaking with the AI cannot easily distinguish whether they are interacting with a human agent or an AI system.

The interaction feels very natural, which demonstrates how far conversational AI technology has evolved.

How do you see AI shaping the broader business landscape in Saudi Arabia?

AI is already becoming a central part of Saudi Arabia’s long-term economic vision.

The Kingdom is forming strategic partnerships with global technology companies to build advanced data centers and GPU infrastructure. These investments will support the development and deployment of large language models.

If LLMs are hosted locally in Saudi Arabia, government institutions, banks, and other organizations will be able to adopt AI technologies more easily and securely.

From my perspective, the AI ecosystem can be divided into three categories. The first includes companies that focus on hardware infrastructure. The second includes companies developing large language models. The third includes companies building practical AI applications and solutions—like what we do at THAKAA.

Saudi Arabia is supporting all three layers of this ecosystem. The country is investing in infrastructure, supporting LLM development, and encouraging the growth of AI startups.

Startups are particularly important because they form the backbone of any AI economy. When governments create supportive regulations and provide resources for startups, the long-term economic impact can be significant.

Mohamed Ramzy

The Middle East is undergoing a rapid digital transformation that has positioned artificial intelligence and data science as key drivers across the public and private sectors.

From enhancing decision-making and combating financial crimes to boosting efficiency in banking, insurance, healthcare, and digital government, AI solutions empower organizations to analyze big data and convert it into actionable, measurable decisions.

This dynamic created significant growth opportunities for specialized companies, especially those targeting regional markets such as Egypt, Saudi Arabia, and the UAE. In this context, DataScience Middle East emerged as a key player, delivering integrated AI and data science solutions.

Sharikat Mubasher held an interview with Sherif Elkhouly, Founder and CEO of DataScience Middle East, to discuss the company’s vision, its role in supporting digital transformation in Egypt and Saudi Arabia, and its ambitions to become one of the region's top AI solutions providers.

First, we would like to learn more about DataScience, and what distinguishes its services in AI and data science? 

DataScience was founded in 2014 with a headquarters in Dubai, and then expanded its footprint by opening a branch in Egypt in 2015 and another in Saudi Arabia in 2023.

The company delivers advanced solutions in AI, enterprise data management, cloud analytics, automation, and business intelligence. Additionally, it serves public and private enterprises, with a focus on banking and finance, alongside telecommunications, insurance, healthcare, and digital government.

This leading position made DataScience the trusted partner for over 100 large companies in the region, powering more than 200 successful projects across 12 countries, with a core emphasis on the Middle East and North Africa (MENA).

Egypt and Saudi Arabia are among the region's most vital markets. How do you assess digital transformation in both countries, and what are the common and different factors between the two markets?

Both markets are experiencing significant digital transformation, supported by different government entities in each country. In Egypt, for instance, there is tremendous momentum toward digital transformation, fueled by national mega projects such as the New Administrative Capital, which incorporates vast cloud spaces to accelerate innovation and transformation.

The private sector plays a pivotal role in Egypt, and strategic partnerships with global companies such as e&, Alibaba, and Huawei strengthen the country’s vision for transformation.

On the other hand, Saudi Arabia follows a clear strategy bolstered by huge investments in data centers and cloud environments, alongside unparalleled government support. We believe that the main common factor is the strong emphasis on AI and digital infrastructure. 

How do you see startups’ role in adopting AI, especially in Egypt?

Egypt is a pioneer in supporting small and medium-sized enterprises (SMEs) through the Social Fund for Development and the Micro, Small, and Medium Enterprises Development Agency (MSMEDA). Today, AI is used to maximize the impact of these programs, alongside a significant surge in entrepreneurship.

Recently, several conferences and events have been launched, bringing together thousands of startups and highlighting the immense growth in digital transformation across its various fields and objectives. In Egypt, nearly everything is now done through applications.

With the growing number of startups and entrepreneurial projects in Egypt and the flourishing of fintech and digital government services, I expect Egypt to become a hub for unicorn companies. We may see five to ten unicorns in the next five years, particularly in fintech and AI.

What is your vision for regional expansion, and what role does Saudi Arabia play in your strategic plan?

Our biggest ambition is to become a central hub for AI solutions in the Middle East, ranking among the top 10 companies specialized in this field.

We have a clear strategy in place through 2030 to expand our customer base, broaden our presence across the Arab world, and build large engineering teams by leveraging Egypt's strong competencies.

In Saudi Arabia, the company is keen to explore new opportunities given the government’s substantial support for digital transformation. We aim to implement our strategy there by attracting and training local Saudi talent. Once our 2030 strategy is completed, we will have further options for expansion and growth, including entering into partnerships with national or global entities within the Kingdom.

Could we witness the development of local Arab AI technologies as alternatives to global solutions?

Technologies are no longer confined to any single entity. The adoption of open-source models enabled the development of cutting-edge solutions and software anywhere in the world, including the Arab region.

Anyone, anywhere, can now develop technology and technical codes independently. Egyptian and Arab applications are gaining significant traction, and we are able to build tailored local solutions from the ground up. Relying on open-source technology enables us to innovate without the dominance of any country, which strengthens the region's potential to develop its own technology.

How do you address ethical and regulatory challenges related to deploying AI solutions, particularly in banking and government sectors?

At DataScience, we adhere to the highest security standards and strictly comply with local regulations in every country where we operate. We deliver flexible solutions that seamlessly adapt to government and regulatory frameworks, with a strong emphasis on data protection and transparency.

We continuously emphasize that the responsible use of AI is a cornerstone of our strategy, especially in critical areas such as financial crime prevention and risk management.

How do you see the impact of AI on Egyptian and Saudi economies in the coming years? 

AI will become a key driver of growth, enhancing efficiency, creating new job opportunities, and fostering innovation. In Egypt, given the momentum in startups and fintech, we expect tremendous growth. As for Saudi Arabia, with its massive investments, it is set to become a regional model. 

The region is witnessing accelerated growth in AI technologies, strengthening its potential to build a regional ecosystem capable of competing on a global scale.

DataScience is committed to supporting this transformation through advanced technology solutions that meet the needs of the Egyptian and Saudi markets.

Translation: Noha Gad