Noha Gad

The transformative agenda of the Saudi Vision 2030 placed increasing real estate ownership at the core of its economic diversification and social development goals. It targets raising the homeownership rate among Saudis to more than 70% by 2030. Beyond domestic ownership, this ambitious initiative introduced pioneering reforms to open the real estate market to foreign investors, notably the Real Estate Owner Residency, which allows foreigners to own or usufruct residential real estate assets with a minimum of SAR 4 million within the Kingdom.

The Saudi cabinet recently approved the foreign property ownership law, permitting non-Saudis to own property in Riyadh and Jeddah, while ownership in Mecca and Medina will be subject to additional regulatory conditions due to their religious status. The Real Estate General Authority (REGA) is expected to define the geographical boundaries and publish the implementing regulations within 180 days.

Scheduled to enter into effect early 2026, the new law is expected to pave the way for new investment opportunities and anticipated deals within the real estate and property technology (proptech) sectors.

According to the Minister of Municipal and Rural Affairs, Majed Al-Hogail, the new law is designed to enhance the real estate sector and attract foreign direct investments (FDI) to bolster housing supply across the Kingdom.

Aligned perfectly with the Premium Residency Program (Iqama) and the existing regulations governing real estate ownership by GCC citizens, the new law is anticipated to create a coherent and integrated framework for foreign investment in the Saudi real estate sector, facilitating cross-border property ownership and residency benefits.

Experts predict the new law to allow non-resident foreigners to purchase property outright with lower investment thresholds and without the need for local sponsors, ultimately attracting different investors and buyer segments to the market and stimulating demand in the residential sector.

Alaa Aljarousha, Senior Manager for Research in Saudi Arabia at CBRE MENA, the world’s leading full-service real estate services and investment organization, stated in an interview with Alarabiya Business that the new law will contribute to increasing FDIs and enhancing supply in the real estate market in general.

She affirmed that enabling foreign residents and non-residents to own property in major cities like Jeddah and Riyadh will lead to an upward growth in property value.

Implications of the new foreign real estate ownership law on key sectors  

This new law is projected to have significant implications on key Saudi sectors, including tourism, proptech, construction and urban development, financial services, and investment, as well as legal and professional services.

Allowing foreigners to own property in major Saudi cities will attract global developers and investors to build hotels, resorts, and mixed-use development projects, thereby enhancing the tourism infrastructure in the Kingdom. Also, the clear ownership rights for foreigners can increase confidence among global tourists and investors, encouraging longer stays and investment in tourism-related real estate.

The new law is also anticipated to drive adoption of proptech solutions such as blockchain-based title registries, digital platforms for property listings, and virtual tours. According to the National Technology Development Program (NTDP), leveraging advanced tech solutions in the building and construction sector could reduce mistakes by 35%, eliminate travel costs by up to 75%, and increase data transparency and accuracy by 80%. For instance, Saudi proptech platforms, such as WakeCap, WhiteHelmet, and Rize, play an instrumental role in bolstering the real estate and construction sectors in Saudi Arabia by offering smart construction site management technologies. 

Additionally, the construction and urban development sector is expected to witness a surge in demand for new residential, commercial, and mixed-use projects in Riyadh and Jeddah, driving growth in construction activity and infrastructure development to support expanding urban areas.

The new foreign real estate ownership law is also expected to contribute to maximizing FDIs and stimulating banking, mortgage financing, insurance, and investment management sectors.

Overall, the new foreign real estate ownership law is not an isolated change but a key component of a comprehensive policy framework. It harmonizes with existing residency regulations and GCC ownership initiatives to promote foreign investment, improve market accessibility, and advance Saudi Arabia’s economic diversification and urban growth goals. This coordinated approach ensures regulatory consistency, amplifying the law’s effectiveness in drawing a broad range of foreign investors while protecting the nation’s interests. 

Kholoud Hussein

In recent years, Saudi Arabia has witnessed a remarkable increase in the visibility of women-led startups. From tech-driven platforms to homegrown fashion brands, female entrepreneurs are gaining traction in the Kingdom’s evolving business landscape. But as the spotlight intensifies—especially under the broad banner of Vision 2030—a critical question emerges: Are women-led startups in Saudi Arabia a quiet revolution reshaping the economy, or are they part of a carefully curated PR narrative aimed at polishing the Kingdom’s global image?

The answer lies somewhere in between. While genuine structural reforms and individual success stories signal meaningful progress, the overwhelming emphasis on optics and international perception also plays a prominent role.

Legal and Policy Shifts Enabling Women Entrepreneurs

Before the launch of Vision 2030 in 2016, the economic participation of Saudi women faced substantial structural and societal barriers. Business ownership required male guardian approval, mobility was severely restricted, and access to funding and banking services was minimal. Many women operated informally from home, often limited to traditionally “feminine” sectors like tailoring, catering, and private tutoring.

The narrative began shifting dramatically with Crown Prince Mohammed bin Salman’s ambitious reform agenda. Vision 2030 placed women’s economic empowerment at the center of national transformation, not just for gender parity but as an economic imperative. Reforms rolled out in rapid succession: women could start businesses without guardian approval, freely open bank accounts, and participate in major economic sectors previously off-limits.

The regulatory overhaul included streamlined company registration through platforms like Meras, flexible work arrangements, and enhanced maternity protections. Institutions like Monsha’at, the General Authority for Small and Medium Enterprises, began offering targeted support, including training programs and access to incubation hubs. Public-private partnerships, such as Flat6Labs, Wadi Makkah, and Badir, have incorporated specific tracks to support female founders.

Indicators of Growth and Participation

The numbers paint a compelling—if still partial—picture of progress. According to the Saudi Ministry of Commerce, the number of women-owned businesses rose by over 60% between 2016 and 2023. Women now own more than 25% of registered SMEs, with a strong presence in sectors such as e-commerce, fashion, beauty tech, wellness, edtech, and food delivery.

The country also saw female labor force participation grow from 17% in 2016 to over 36% by the end of 2023, suggesting that female entrepreneurship is riding on the back of broader economic integration.

Still, the funding picture remains uneven. While women-led startups have secured high-profile funding rounds—especially in health tech and e-commerce—they receive less than 7% of total venture capital deployed in the Kingdom, according to a 2024 report by MAGNiTT. Most of this funding is clustered in early-stage rounds, with a significant drop-off when it comes to scale-ups.

Inside the Experience: Success, Exposure, and Gaps

Behind the aggregate numbers are real women who reflect both the promise and pitfalls of Saudi Arabia’s startup revolution.

Take the case of Sara Al-Rashed, founder of a Saudi edtech platform offering gamified Arabic learning tools for children. Her company received support from a local accelerator and won recognition at regional innovation forums. Yet, when it came time to scale, she struggled to attract Series A funding. Several investors voiced concern about her ability to lead a high-growth tech company as a solo female founder—a subtle but telling form of gender bias.

In contrast, Reem Al-Jaber, who launched a high-end wellness and beauty brand targeting GCC markets, not only received angel investment but also inked distribution partnerships with two major Saudi retailers. Her success was featured in multiple government-sponsored media outlets and at international trade events. Yet, critics note that her brand, while highly visible, has yet to break even—a reminder that not all media coverage reflects business fundamentals.

These examples reveal a complex truth: some women are building resilient, scalable startups, while others gain media traction without matching financial success. The disparity highlights the need to distinguish between authentic progress and symbolic representation.

Public Narratives and the Power of Visibility

Saudi Arabia’s image overhaul is a cornerstone of Vision 2030, and women entrepreneurs are a critical part of that strategy. High-profile forums like LEAP, FII, and the Global Entrepreneurship Congress regularly spotlight female founders as proof of the Kingdom’s modernization. International media coverage often portrays these women as pioneers, shattering stereotypes in a conservative society.

While these stories are real and inspirational, the heavy emphasis on a few selected figures risks reducing systemic progress to PR optics. Corporate sponsors, banks, and government agencies often feature women entrepreneurs in ESG reports and ad campaigns, aligning their brand with the Kingdom’s progressive image. The Saudi Public Investment Fund (PIF) and the Ministry of Investment frequently emphasize female participation as part of their global investor pitch decks.

This strategic branding is not inherently negative—visibility matters. But without consistent support, mentorship, and equitable access to capital, these stories risk becoming superficial showcases rather than sustainable models of empowerment.

Challenges Below the Surface

Despite reforms, significant barriers persist for women-led startups. Access to funding remains a top hurdle. Investor networks are still predominantly male, and many women lack the informal connections or technical backgrounds that VCs typically favor.

Scaling a startup often requires partnership with logistics firms, government contractors, or large-scale suppliers—areas where women still face subtle discrimination. Moreover, societal expectations continue to weigh heavily. Many female entrepreneurs juggle business leadership with family obligations, in a culture that still views caregiving as a woman’s primary role.

These challenges are particularly acute outside urban centers like Riyadh and Jeddah, where conservative norms remain deeply entrenched. Even within cities, progress often relies on the backing of liberal-minded family members or sponsors.

Broader Influence and Long-Term Potential

Despite these headwinds, women-led startups are beginning to transform Saudi Arabia’s business ecosystem. Many female founders actively hire women, mentor younger entrepreneurs, and cultivate inclusive work cultures. This creates a multiplier effect that extends far beyond individual success.

For example, one fintech founder in the Eastern Province reportedly structured her team to include 70% women, offering flexible work-from-home options and onsite childcare. Her model—though still rare—is helping redefine what leadership looks like in a new Saudi economy.

Furthermore, these entrepreneurs are becoming role models for the next generation. As young Saudi girls see women launching companies, raising capital, and speaking at global summits, their expectations—and those of their families—begin to shift.

From Visibility to Viability

The rapid rise of women-led startups reflects real, measurable progress driven by sweeping legal reforms, cultural evolution, and individual ambition. But at the same time, the prominence of these founders in media campaigns and international forums points to a deliberate effort to shape perception, both inside and outside the Kingdom.

To ensure that this movement evolves from trend to transformation, more must be done. The government must deepen institutional support, investors must diversify funding pipelines, and the ecosystem must go beyond visibility to sustainability.

Only then will Saudi Arabia’s women-led startup surge prove to be not just a compelling narrative, but a lasting economic force.

Noha Gad

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

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

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

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

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

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

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

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

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

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

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

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

How Arabic AI and NLP empower local businesses?

Industry Applications

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

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

Economic and Social Impact

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

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

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

Key Challenges

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

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

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

Kholoud Hussein 

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

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

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

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

Renewables & Green Tech: Saving Costs, Creating Markets

Saudi Arabia has taken global lead steps:

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

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

Startups at the Vanguard of Climate Action

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

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

Sectoral Breadth and Technological Depth

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

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

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

A Culture of Mission-Driven Entrepreneurship

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

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

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

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

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

From National Challenge to Global Export Potential

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

For example:

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

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

Enablers: Policy Frameworks & Ecosystem Support

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

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

Challenges Ahead

Despite momentum, barriers remain:

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

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

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

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

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

The Road Ahead: Scaling the Climate-Tech Frontier

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

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

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

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

Ghada Ismail

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

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

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

What Is Burn Rate, Really?

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

There are two versions you should know:

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

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

Why Burn Rate Matters More Than You Think

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

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

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

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

How to Calculate Your Runway

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

Here’s a quick example:

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

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

How to Tell If Your Burn Rate Is Too High

Here are a few warning signs:

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

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

How to Keep Burn Rate Under Control

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

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

What This Means for Startups in Saudi Arabia

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

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

Wrapping things up…

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

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

Kholoud Hussein 

In the world of venture capital and startup financing, the term “down round” often signals a red flag. It represents more than just a lower valuation—it reflects shifts in market sentiment, growth expectations, and investor confidence. For founders, employees, and investors alike, a down round can carry significant economic, operational, and psychological consequences.

But what exactly does a down round mean, why does it happen, and what are its implications?

Defining a Down Round

A down round occurs when a startup raises capital at a valuation lower than that of its previous funding round. For example, if a company raised Series A at a $100 million valuation but then raises Series B at a $70 million valuation, the Series B round is considered a down round.

This means that the new investors are buying equity at a lower price than previous investors did. It also implies that the company’s perceived value has declined since its last funding, even if revenue or user growth has continued.

Why Do Down Rounds Happen?

A disconnect between expectations and outcomes typically triggers down rounds. Several common causes include:

1. Missed Growth Targets

If the company failed to meet revenue or user growth milestones projected during earlier funding rounds, investors may reassess its valuation downward.

2. Market Conditions

External economic conditions—such as a downturn in the tech sector, rising interest rates, or investor risk aversion—can reduce appetite for high-valuation deals.

3. Overvaluation in Previous Rounds

Startups sometimes raise capital at inflated valuations due to hype, competition among VCs, or overly optimistic projections. These valuations may not be sustainable.

4. Cash Flow or Profitability Concerns

If the company has a high burn rate and limited runway, it may have little bargaining power, forcing it to accept less favorable terms.

What Are the Impacts of a Down Round?

While down rounds are sometimes necessary to secure continued funding, they come with serious consequences:

• Equity Dilution: Existing shareholders, including founders and employees with stock options, may see their ownership percentages shrink. New investors often demand anti-dilution protections, further complicating equity structures.
• Valuation Signal: A down round sends a negative signal to the market. It suggests that the company’s growth trajectory or profitability potential is in doubt, which may impact future fundraising efforts.
• Employee Morale: Stock options lose value in a down round, which can damage employee motivation, especially in startups where equity is a key component of compensation.
• Governance Shifts: New investors may negotiate stricter governance rights, board seats, or liquidation preferences that can limit founder control.

Can a Company Recover From a Down Round?

Absolutely. While a down round reflects short-term valuation pressure, it does not necessarily indicate failure. Some of the most successful companies—including Facebook, Airbnb, and Slack—experienced funding challenges or valuation resets at various stages.

Recovery depends on how the company responds:

• Refocus on unit economics and core business fundamentals
• Reduce cash burn and extend runway
• Strengthen product-market fit
• Realign with investors through transparent communication

Some companies use a down round as a strategic reset, shedding unrealistic expectations and recalibrating for sustainable growth.

Conclusion: A Tough Pill, Not a Death Sentence

A down round is a clear signal of recalibration in a startup’s valuation journey. While it carries economic and reputational risks, it’s not the end of the road. For founders, the key is to understand the reasons behind the valuation cut, maintain stakeholder confidence, and execute a path back to growth.

In a volatile funding environment—especially in post-2022 markets marked by investor caution and tighter capital—down rounds have become more common, and less stigmatized. Transparency, discipline, and adaptability remain the entrepreneur’s best tools for weathering the storm.

Noha Gad

Saudi Arabia’s startup ecosystem has witnessed a remarkable transformation in recent years, driven largely by the Vision 2030 initiative aimed at diversifying the national economy and reducing oil dependency. This ambitious strategy stimulated a dynamic entrepreneurial environment by fostering innovation, supporting new business ventures, and encouraging private sector growth. The Saudi government launched various programs, funding initiatives, and regulatory reforms to establish a fertile ground for startups to thrive across different sectors, notably fintech, digital health, technology, and more.

The Small and Medium Enterprises General Authority (Monsha’at) plays a pivotal role in fostering startups within and beyond Saudi Arabia by providing critical upskilling, training, funding-related, and franchising services. In its latest quarterly report, Monsha’at highlighted that over 9,800 businesses benefited from Monsha’at Support Centers during the first quarter (Q1) of 2025, while more than 9,400 trainees availed themselves of Monsha’at e-Academy. Through its Support centers across the Kingdom, Monsha’at aspires to assist startups in preparing for international expansion.

Along with upskilling businesses, the authority launched the Tomoh Funding Program to empower the next generation of Saudi startups through robust financial enablement packages. In Q1-25, the market cap of Tomoh-backed on Nomu recorded $6.6 billion, accounting for 41.8% of the total Nomu market cap.

Additionally, Monahsa’at launched the Promising Innovative Enterprises/Ventures program to foster Saudi startups seeking global expansion. This program aims to facilitate the entry of local enterprises to global markets by enabling the participation of 18 Saudi startups in international exhibitions and accelerators to enhance their investment opportunities through regional and international expansion.

Monsha’at co-hosted and participated actively in the Global Entrepreneurship Congress (GEC) and the Entrepreneurship World Cup (EWC) as part of its commitment to linking Saudi startups with the global entrepreneurial ecosystem, providing exposure, mentorship, and collaboration opportunities to accelerate their growth and international reach.

Further, the authority initiated BIBAN, the global platform that bridges between local startups and global investors, ultimately fostering the global expansion of Saudi SMEs.

Key challenges facing Saudi startups in navigating global markets

Although the Saudi government exerts many efforts to back emerging enterprises to get off the ground and expand, these startups face several obstacles in navigating global markets. These challenges are:

• Understanding cultural nuances. Middle Eastern markets are deeply rooted in traditions and values that influence consumer behavior. Understanding cultural nuances and consumer behavior directly impacts startups’ ability to gain trust and connect with customers and succeed in diverse environments. This step helps startups seeking expansion in global markets to build trust and relationships, align business practices, and enhance cross-cultural teamwork.
• Regulatory Hurdles. Saudi startups must navigate and understand the regulatory complexities in global markets to ensure smooth operations, legal compliance, and sustainable growth. This step will enable startups to avoid operational delays, ensure compliance with legal laws, build credibility, and adapt to ethical and cultural norms. 
• Funding and investment barriers. Saudi startups may find it hard to access sufficient and appropriate funding, especially those lacking local ties. They can overcome this obstacle through a combination of government-backed programs, venture capital initiatives, and strategic partnerships.
• Building local talent. Talent acquisition and retention are critical factors to have the right skilled workforce. Startups must understand the aspirations and expectations of a workforce that values career growth and meaningful contributions. They can also focus on training programs to upskill employees and integrate their expertise with local market insights.
•  Logistics and infrastructure constraints directly impact startups’ ability to compete, scale, and deliver value internationally. By overcoming them, startups can easily gain access to the market and enhance global competitiveness, boost cost efficiency and scalability, and attract investments. To do so, startups must adopt technology and utilize AI-powered tools to optimize operations.
• Market competition and fragmentation. Entering new global markets often means competing with established local players who have deep market knowledge and brand loyalty. Saudi startups must differentiate themselves and offer unique value to gain traction. 

To overcome these challenges, startups must adopt the “Act local, think global” approach, which targets adapting products and marketing to local markets while maintaining global standards. They must also invest heavily in digital transformation and innovation to stay competitive internationally, while leveraging government programs, accelerators, and global exhibitions to gain exposure.

Startups further need to forge strategic partnerships with local entities and stakeholders in target countries, in addition to building robust legal and regulatory expertise or local advisory to navigate complexities.

Finally, Saudi startups are increasingly recognized as promising players in the global entrepreneurial landscape, demonstrating remarkable resilience and innovation despite facing significant challenges in their international expansion efforts. They can navigate complex hurdles, such as funding limitations, regulatory intricacies, and talent acquisition, supported by robust government initiatives and a dynamic ecosystem. Their ability to leverage strategic programs, such as Monsha’at’s international expansion projects and participation in global platforms like the EWC, underscores their growing ambition and capability to compete on the world stage.

A key element in the success of the Saudi startups abroad is their commitment to cultural adaptation. Respecting and understanding local customs, consumer behaviors, and business etiquette are essential to building trust and establishing meaningful connections in diverse markets. This cultural intelligence exceeds language translation; it includes tailoring products, marketing strategies, and customer experiences to resonate authentically with target audiences.

Kholoud Hussein

As Saudi Arabia and its Gulf neighbors embrace digital transformation, a new breed of tech entrepreneurship is quietly gaining ground: micro—SaaS startups. These are small, often solo-run software businesses that solve very specific problems, generate steady revenue, and require minimal capital or infrastructure. While the spotlight in the region often shines on mega startups and billion-dollar funds, micro-SaaS is carving out its own niche, offering independence, profitability, and scalability on the founder’s own terms.

But what exactly are micro-SaaS startups, and why are they so relevant to Saudi and Gulf entrepreneurs right now?

Micro-SaaS in a Nutshell

Micro-SaaS stands for “Micro Software as a Service.” It refers to cloud-based software products that target a focused, niche audience, and are built and maintained by a single person or small team. Unlike traditional SaaS startups that aim to disrupt entire sectors, micro-SaaS solutions are designed to solve specific problems for specific users.

Why Now? Why in Saudi Arabia and the GCC?

1. Digital Maturity Is Accelerating

Saudi Arabia's Vision 2030 and the UAE’s Digital Economy Strategy have laid the groundwork for massive digitization — not only in government and enterprise, but also among SMEs, freelancers, and individual service providers. This creates a fertile ground for software tools that meet localized, underserved needs.

2. Low-Code and No-Code Accessibility

With tools like Bubble, FlutterFlow, and Tilda, even non-technical founders in Riyadh, Jeddah, or Manama can now build and launch micro-SaaS platforms without needing a full development team. This democratizes innovation.

3. Cultural Shift Toward Freelancing & Remote Work

The rise of the freelance visa in the UAE, the growth of self-employment platforms in KSA (such as Freelance.sa), and the increasing interest of youth in passive income are driving founders to explore side projects, and micro-SaaS fits perfectly into this new work culture.

4. Investor Fatigue with Scale-at-All-Costs Startups

As the venture capital market cools globally, micro-SaaS presents a sustainable alternative, requiring no VC capital, growing through user feedback, and often reaching profitability within months.

Localized Micro-SaaS Ideas That Work

Here are a few regionally relevant micro-SaaS concepts:

• Prayer Schedule Widgets for mosques and Islamic centers, with donation integrations.
• Invoice Generators for freelance graphic designers or translators with bilingual templates.
• Real Estate CRM Tools for brokers operating in smaller cities or new developments.
• Custom Fleet Maintenance Dashboards for SMEs running logistics vehicles in remote areas.
• Social Media Caption Generators for Arabic-speaking influencers and brands.
• Online Training Portals for family businesses training their staff in customer service.

Real Barriers 

Despite the appeal, micro-SaaS startups face distinct challenges in the region:

• Payment gateways: Stripe isn’t fully supported in all GCC countries. Alternatives like PayTabs, HyperPay, and Tamara offer solutions but require integration effort.
• Language & UX gaps: English-only platforms don’t always resonate in Tier 2 or 3 Saudi cities. Arabic-first UI/UX is often the key to market fit.
• Regulatory clarity: Unlike bigger startups, micro-SaaS founders often lack access to legal help. Government support via Monsha’at or Bahrain’s Startup Bahrain initiative can help with licensing, taxation, and compliance.

From Local Niche to Global Reach

The beauty of micro-SaaS is location independence. A founder in Tabuk or Sharjah can sell to clients in Canada or Malaysia. The product may start as a tool for a GCC-specific need, but scale globally with small adjustments.

Platforms like Product Hunt, Gumroad, and AppSumo allow micro-SaaS founders from the region to promote, validate, and monetize internationally, without needing to relocate or raise funds.

Micro-SaaS as a Path to Freedom

For many aspiring founders across the Gulf, success isn’t about unicorn status — it’s about freedom. Freedom to build a business that pays the bills, scales modestly, and creates real value for real people.

Micro-SaaS offers just that — a way to own your time, your product, and your future. In a region where ambition meets rapid digital change, this movement may quietly become the next wave of meaningful, sustainable tech entrepreneurship.

Noha Gad

Saudi Arabia’s sports sector is undergoing a remarkable transformation fueled by ambitious investments and strategic initiatives aligned with Vision 2030. The value of this rapidly expanding market is expected to triple by 2030, driven by major infrastructure projects, hosting global events like the FIFA World Cup 2034, and the growing emphasis on grassroots development and professional leagues. 

Sports technology platforms, such as Grintafy, play a pivotal role in advancing this evolving sector. By leveraging innovative tools like AI analytics, blockchain, and fintech solutions, Grintafy empowers amateur players, clubs, and scouts with data-driven insights and seamless connectivity.

Guided by a clear mission to democratize talent discovery and build Saudi Arabia’s future football stars, Grintafy envisions the Kingdom as a global beacon of sports excellence. Its vision is realized through strategic collaborations with key stakeholders, including clubs, federations, and cutting-edge Web3 innovators, enabling the platform’s expansion across the MENA region and beyond.

Sharikat Mubasher held an interview with Founder and CEO, Majdi Allulu, to discover more about Grintafy’s business model, regional and global expansions, as well as its strategy to position Saudi Arabia as a global sports hub. 

What was the driving force behind launching Grintafy, and what is its core mission in Saudi Arabia?

Grintafy was founded and driven by the ambition to “level the playing field” for amateur footballers by enabling them to build their football CVs, rate performances, organize games, and connect with scouts and clubs. 

The core mission in Saudi Arabia is to democratize talent discovery, support Vision 2030’s goals, and serve as a launchpad for the national team’s next generation.

How does Grintafy set itself apart from other talent-scouting platforms regionally and globally?

• Scale: With nearly 2.5 million registered users across the Middle East, Grintafy stands as the region’s largest talent discovery platform. 
• Comprehensive features: It offers a full ecosystem—organizing games, performance ratings, CV building (“Grinta Card”), messaging, live streaming, and fintech payments like in-app “G-coins” 
• Web3 capabilities: Strategic investment by Chiliz and Adaverse positions Grintafy at the forefront of using blockchain for transparent player ratings, performance certification, and engagement.

How do you utilize emerging technologies like AI or data analytics to enhance talent discovery?

The platform already harnesses AI and machine learning to support live-streaming features and performance analysis. We have the plans to use AI-driven analytics to elevate scouting accuracy, refine player rankings, and extract deeper insights from performance data.

With Saudi Arabia set to host the FIFA World Cup 2034, how will Grintafy contribute to preparing local talent for this global stage?

Grintafy aims to be instrumental in preparing Saudi talent for the global stage by:

• Continuously identifying emerging local players through its platform and scouting network.
• Aligning with Vision 2030, with investors like Wa’ed emphasizing the goal of discovering the “future Saudi National Team” on Grintafy.
• Expanding development initiatives, grassroots tryouts, and performance tracking programs designed to elevate player readiness by 2034.

How will your recent partnership with Resal empower Saudi sports talents? And are there other strategic partnerships in the pipeline to further Grintafy’s mission? 

The recent Resal partnership integrates loyalty rewards with Grintafy: athletes earn digital incentives through performance and engagement, driving motivation and sustained development.

We have several regional and global partnerships in the final stages of completion. This includes international clubs and leagues. 

What are Grintafy’s strategies to expand within and beyond Saudi Arabia? 

• Regional expansion: Active in Egypt since 2021—with partnerships with West Ham United, the Egyptian Ministry of Youth & Sports, Cádiz CF—and planning to expand further across MENA.
• International push: Supported by investors like Chiliz and Adaverse, aiming to connect Saudi talent with European and South American football ecosystems.

How do you assess the current state of Saudi Arabia’s sports ecosystem? And how did government initiatives support the sector?

The Saudi sports ecosystem is rapidly evolving, heavily fueled by Vision 2030 initiatives focused on national sports development, infrastructure, and private sector engagement. Government support is substantial—from funding early-stage sportstech ventures (like Wa’ed backing Grintafy), to incentivizing Web3 innovation and international talent initiatives, strongly supportive of platforms like Grintafy.

What is Grintafy’s long-term vision for shaping Saudi Arabia as a global sports hub?

Grintafy envisions Saudi Arabia emerging as a globally competitive sport—and especially football—hub by:

• Empowering grassroots development and bridging amateur players to professional opportunities.
• Integrating advanced Web3 and AI tools to set global standards for talent discovery.
• Fostering global partnerships that ensure Saudi players are scouted and play internationally.
• Feeding homegrown talent into national teams, championships, and global leagues, thereby reinforcing the Kingdom as a center of sports excellence.

In preparation for the 2034 FIFA World Cup, Grintafy focuses on identifying and developing local talent through performance tracking, trials, and organized matches, aiming to build a strong generation of Saudi players ready to compete internationally.

The platform utilizes advanced technologies such as AI analytics, live streaming, fintech payments, and blockchain credentials to enhance talent discovery and ensure transparent, secure player data management.

Finally, innovations in sports tech and infrastructure are backed by Vision 2030 and the government's support to accelerate technology adoption, empowering platforms like Grintafy to elevate Saudi Arabia as a global sports hub.

Kholoud Hussein 

1. Introduction: The Surge of Gig Work in the Kingdom

Over the past decade, Saudi Arabia’s labor market has undergone a rapid transformation. Traditional job structures are increasingly giving way to gig-based employment, facilitated by ride-hailing services, delivery platforms, freelancing networks, and on-demand services. Platforms like Mrsool, Jahez, HungerStation, Careem, Fetchr, and numerous freelancing portals are catalysts for this shift. According to the 2024 Ministry of Human Resources & Social Development, approximately 15.7% of the Saudi workforce now engages in some form of gig or informal work, up from just 8% in 2018.

This trend reflects global labor market shifts, but it has unique implications in Saudi Arabia, where Vision 2030 aims to diversify the economy, increase female labor participation, and formalize economic opportunities. The rise of gig work has become a key engine of startup growth and private-sector innovation across delivery, logistics, professional services, and more.

2. Gig Work as an Opportunity for Startups

2.1. A Flexible, Scalable Labor Model

Startups in KSA are leveraging gig labor to build agile, low-capital models that scale quickly:

• Jahez operates with a dispersed delivery workforce, reducing fixed costs while handling up to 1.5 million daily deliveries.
• Mrsool, a peer-to-peer courier platform, enables users to onboard informal couriers (“mushers”) via simple ID verification, costing fractions of conventional logistics.
• Professional-service startups (marketing, design, tech freelancing) use gig platforms to match entrepreneurs with over 200,000 gig workers in creative fields.

Fahad Al-Mansour, CEO of a Riyadh-based logistics startup, notes: “We could never create dispatch hubs or fleets at this scale without gig couriers. They give us the speed and reach that a traditional model simply can’t match.”

This flexibility allows startups to tackle localized demand spikes—Ramadan services, sporting events, or tourism surges—without major overhead. It brings cost-efficiency and responsiveness rarely seen in earlier business models.

2.2. Enabling Innovation with Lower Risk

By reducing fixed expenses, startups channel resources into product development, UX, marketing, and expansion. For example:

• Fetchr, offering same-day delivery via gig drivers, has expanded into the UAE, Kuwait, and Bahrain since 2022, capitalizing on its asset-light labor model.
• Health and eldercare startups use gig nurses and therapists to scale with public consent and limited operational costs.

Haya Al-Fahad, co-founder of a telehealth startup, explains: “Gig professionals have allowed us to pilot home-based elderly care without committing to physical clinics or full-time staff. We can test, adapt, and grow faster.”

Startups appreciate that gig work helps them launch with minimal risk and pivot quickly based on data-driven insights.

3. Challenges of Informal Gig Work for Workers and Startups

3.1. For Workers: Lack of Protections and Predictability

Gig workers often experience unstable incomes, lack of social insurance, and absence of benefits:

• Income volatility: Many couriers can earn between SR 2,000–3,500 per month, but with high variance in demand cycles.
• Lack of coverage: No access to retirement pensions, health insurance, or unemployment benefits.
• Legal ambiguity: Contracts are often limited to platform terms, leaving workers without employee rights.

A delivery driver shares: “One week I make SR 4,000, the next SR 1,800. I have no idea how much I’ll make next month… there’s no safety net.”

Such instability creates financial stress and vulnerability, undermining the socio-economic goals of Vision 2030.

3.2. For Startups: Quality, Reliability, and Workforce Loyalty

While gig labor offers flexibility, it introduces challenges for startups:

• Inconsistent service: Reliance on part-time workers affects delivery speed and quality.
• High churn: Gig workers may switch between multiple apps for better pay or perks.
• Lack of brand ownership: Customers develop affinity with platforms, not individual couriers or service providers.

A logistics startup founder notes: “We spend major effort training gig staff for efficient routes or customer communication, only for them to have low retention and performance inconsistency.”

These issues affect reputation, repeat business, and customer satisfaction, hindering long-term growth.

4. Digital Platforms and the Private Sector: From Matching to Enablement

4.1. Platforms Moving Up the Value Chain

Saudi gig platforms are evolving into holistic ecosystems:

• HungerStation, originally a food delivery app, now offers logistics services to restaurants, analytics dashboards, and training for kitchen staff.
• Mrsool has added onboarding, ID verification, and digital wallet solutions with partners like STC Pay.
• Freight startups such as Fetchr and Trukky provide professional training, insurance, and job scheduling tools to gig drivers.

These platforms transition from mere mediators to platforms delivering workforce support—closing operational, regulatory, and operational gaps faced by gig workers.

4.2. FinTech and Financial Services for Gig Labor

A key innovation: embedding financial services into gig ecosystems. FinTechs like Tamara, HalalaH, and sap payment offer:

• Instant pay solutions—linking with gig apps so workers get paid daily rather than monthly.
• Microloans and credit based on earnings history, enabling vehicle or equipment purchases.
• Integrated insurance bundles—offered with every job.

Khalid Al-Ghamdi, CEO of a Saudi FinTech serving gig workers, underscores the impact: “Providing a seamless payroll and microcredit system has empowered thousands of gig workers to access financial tools usually reserved for full-time employees.”

This approach benefits both workers (income stability, credit access) and platforms (higher loyalty, service quality).

5. Moving Toward a Formalized Gig Economy

5.1. Regulatory Progress

Saudi Arabia has begun formalizing gig work through:

• “Freelance Residency” visas launched in 2022, allowing gig professionals legal status and tax registration.
• Labor regulations enabling self-employment licensing and freelance contracts via online government portals.
• Upcoming minimum income protections and social coverage discussed by HRSD officials in 2024.

Human Resources Minister Ahmed Al-Rajhi commented: “We are determined to integrate gig workers into the formal economy, ensuring they receive basic protections while promoting a flexible labor environment.”

5.2. Startup Initiatives in Workforce Protection

Some startups proactively offer standards for gig workers:

• RideNow provides ID verification, safety training, and third-party insurance.
• HealthX, a health staffing app, offers gig professionals online training and certification, paired with indemnity insurance for home visits.
• SkillX, an on-demand training platform, enables gig workers to gain micro-credentials linked to job apps—improving quality and pay.

These efforts reflect a growing entrepreneurial emphasis on responsible gig models with social safeguards.

6. Towards a Balanced Saudi Gig Ecosystem

6.1. Strategic Coordination

Building a sustainable gig economy requires a three-way alignment:

6.2. Future Outlook and Recommendations

Key next steps for a thriving Saudi gig ecosystem:

1. Legislate fair minimum earnings and social coverage (e.g., pension contributions, health insurance for gig workers).
2. Standardise onboarding and accreditation processes via platforms and technical authorities.
3. Accelerate tech-enabled solutions (instant pay, microloans, skill certification).
4. Promote data sharing partnerships to analyze gig labor trends, inform policy, and improve platform accountability.
5. Foster research collaborations between universities and startups on gig-work impacts, quality, and mental health.

Delivering these will solidify gig work as a reliable, growth-supporting component of Saudi’s economy.

From Informality to Strategic Asset

The gig economy is not just a stopgap labor source—it can be a cornerstone of Saudi Arabia’s diversified, innovation-driven economy. Startups are already leveraging gig work to scale efficiently, pilot new services, and enhance service delivery. However, thriving requires elevating this into a sustainable, equitable model that benefits workers, platforms, and the national agenda.

By integrating regulatory frameworks, startup-led enablers, FinTech solutions, and worker empowerment, Saudi Arabia can transform gig work into a formalized, quality-assured, and socially responsible sector by 2030.

As the Saudi labor market continues to evolve, the challenge—and opportunity—is clear: turn flexibility into sustainability. In doing so, Saudi Arabia can inspire the region and set a standards-based model for gig economies globally.

Ghada Ismail

If you're launching a startup or thinking about raising funding, one term you’ll quickly come across is the cap table—short for capitalization table. While it may sound technical, it’s actually a straightforward but critical tool that every founder, investor, and early employee should understand.

In Simple Terms

A cap table is a spreadsheet or digital dashboard that shows who owns what in a company. It details the equity ownership, types of shares, and how that ownership changes over time, especially after funding rounds, stock option grants, or exits.

Think of it as the official scorecard of ownership in your startup.

What Does a Cap Table Include?

At its core, a cap table typically shows:

• Founders’ ownership
• Investor equity stakes
• Employee stock options
• Total shares outstanding and fully diluted

The more a company grows and raises capital, the more complex the cap table becomes, especially after multiple funding rounds and equity-based compensation.

Why It Matters

A cap table isn’t just for compliance; it’s essential for decision-making. It helps you:

• Negotiate with investors by clearly showing who’s getting diluted
• Issue stock options to employees with transparency
• Plan exits or acquisitions with a clear view of payouts
• Stay ready for due diligence during fundraising or M&A

Messy or outdated cap tables can delay deals or, worse, it can cost you trust with investors.

When to Set It Up

Early. Ideally, the moment your startup incorporates and issues shares to founders. As you bring on co-founders, advisors, or early team members, keeping your cap table clean and updated avoids painful headaches down the line.

There are plenty of tools today—like Carta, Pulley, or Eqvista—that help automate and manage your cap table securely and accurately.

Popular Cap Table Tools

Managing a cap table manually in Excel might work for the first few months, but it gets messy fast. That’s where dedicated tools come in. Here are three leading platforms startups use to simplify and professionalize equity management:

1. Carta

One of the most widely used platforms globally, Carta offers cap table management, scenario modeling, and investor reporting. It’s trusted by many VC-backed startups and is especially helpful for companies scaling fast or preparing for funding rounds.

2. Pulley

Pulley is built with early-stage startups in mind. It’s clean, intuitive, and affordable, making it great for first-time founders who want clarity on dilution and equity planning. It also offers support for SAFEs, options, and pro-forma modeling.

3. Eqvista

Eqvista is a robust yet cost-effective alternative, offering full-featured cap table tools, company valuations, and compliance support. It’s especially popular among startups outside the U.S. and provides personalized support for smaller teams.

Wrapping things up…

Your cap table tells the story of your startup’s ownership, and over time, that story evolves. Whether you’re raising your first round or preparing for a major exit, a clean and well-maintained cap table is more than a spreadsheet—it’s a strategic asset.

Kholoud Hussein 

In recent years, the world of startup financing has seen tremendous innovation, not just in what is being funded, but in how capital flows. One of the more intriguing trends gaining traction among investors and founders alike is "liquid venture capital" — a model that promises to bring flexibility, speed, and secondary market liquidity into a traditionally illiquid asset class.

But what exactly is liquid venture capital, and why is it becoming a hot topic in the venture and startup ecosystem?

The Traditional VC Model: Illiquid by Design

To understand what liquid VC is, it helps to contrast it with the traditional venture capital model. In a typical VC deal:

• Investors fund early-stage companies with equity.
• The capital is locked in for 5–10 years, often with no early exit.
• VCs get their returns through IPOs, acquisitions, or secondary buyouts.

While this model has created giants like Uber, Airbnb, and Stripe, it is inherently illiquid. Investors must wait years before seeing any return, and startups, especially in developing ecosystems, often struggle with limited access to follow-on capital or secondaries.

This is where liquid venture capital emerges as a disruptive alternative.

What Is Liquid Venture Capital?

Liquid venture capital refers to venture investment structures that allow earlier and more flexible exits for investors, typically through tokenized equity, publicly tradable assets, or secondary markets that create liquidity well before a company goes public or is acquired.

In simpler terms, liquid VC gives investors the ability to buy or sell startup stakes more easily, without waiting years for a traditional exit.

How Does It Work?

There are several models under the liquid VC umbrella:

1. Tokenization of Equity:
   Startups issue tokenized shares on blockchain platforms, which can be traded on secondary markets. This opens up early liquidity options and attracts global micro-investors.
2. Secondary Share Markets:
   Platforms like Forge or CartaX allow early investors and employees to sell shares before an IPO. VCs can enter or exit positions faster, diversifying risk.
3. Publicly Listed Startup Funds:
   Some funds invest in startups but offer publicly traded shares of the fund itself. Investors get exposure to venture portfolios with the ability to cash out anytime.
4. Hybrid Structures:
   Some VC funds now include liquidity windows or dynamic capital calls that enable limited partners to exit earlier than usual.

Why Liquid VC Is Gaining Attention?

1. Faster Access to Capital for Startups

Startups benefit from a more active investor base. With liquidity available, funds may be more willing to invest earlier or with less hesitation.

2. More Flexible Risk Management for Investors

VCs and angel investors can manage their portfolios more like public equities — rebalancing, reducing exposure, or locking in gains before an exit event.

3. Democratizing Venture Investing

By tokenizing shares or listing venture funds, liquid VC models allow retail investors to participate in startup growth — a space traditionally reserved for high-net-worth individuals and institutions.

 4. Fuels Secondary Markets

The rise of secondaries means employees, founders, and early-stage investors aren’t forced to wait a decade for liquidity, reducing pressure and creating healthier growth dynamics.

Challenges and Risks

While liquid VC is promising, it comes with caveats:

• Regulatory hurdles: Tokenized securities must comply with securities laws, which vary by country.
• Valuation transparency: Trading startup shares publicly or in secondaries can expose valuation volatility.
• Speculation risk: Increased liquidity can attract speculative trading, distracting from long-term business fundamentals.

Moreover, startups need to decide how much liquidity is healthy — too much can dilute focus, while too little can stifle growth.

The Future of Venture Capital?

Liquid venture capital doesn’t aim to replace traditional VC — rather, it’s evolving the model to better suit the fast-paced innovation economy. In ecosystems like Saudi Arabia, where the government is pushing for deeper capital markets, startup exits, and digital finance, liquid VC can act as a bridge between private innovation and public markets.

As more infrastructure develops — including regulated platforms, legal frameworks, and institutional participation — we are likely to see liquid VC play a growing role in early-stage finance globally.

In summary, liquid venture capital is a step toward a more agile, inclusive, and scalable investment environment — one where startups and investors can both win on their own timelines.