Ghada Ismail

Mining is no longer a background industry in Saudi Arabia’s economic story. As the Kingdom works to reduce its dependence on oil, mining has moved to the forefront of its diversification agenda. Under Vision 2030, the sector is being positioned as the third pillar of Saudi Arabia’s industrial economy, standing alongside oil and petrochemicals. According to the Ministry of Industry and Mineral Resources, the Kingdom’s untapped mineral wealth is valued at more than SAR 9.3 trillion, including gold, copper, phosphate, bauxite, rare earth elements, and other critical minerals that are increasingly essential to the global energy transition and advanced manufacturing.

This push comes at a moment when global demand for minerals is accelerating, driven by renewable energy technologies, electric vehicles, and the digital infrastructure powering modern economies. Saudi Arabia sees an opportunity to establish itself as a major global mining hub. But turning geological potential into long-term value is not straightforward. Mining in harsh desert environments, often far from major population centers, is capital-intensive and operationally complex. Staying competitive requires smarter, safer, and more sustainable ways of working.

This is where artificial intelligence is beginning to change the game.

Across the mining value chain, AI is emerging as a powerful enabler, spanning early-stage exploration to daily operations, safety management, and environmental monitoring. By embedding AI into mining processes, Saudi companies are improving productivity, cutting costs, and making faster, better-informed decisions. At the same time, this shift is opening the door to a broader innovation ecosystem, drawing in startups, research institutions, and technology providers eager to help shape the future of mining in the Kingdom.

AI in Exploration and Operations

Mineral exploration has always been a high-risk, high-cost endeavor. Traditional methods rely on years of geological surveys, drilling campaigns, and lab analysis, often with no guarantee of a viable discovery. AI is helping tilt the odds.

Machine learning models can now process vast volumes of data—satellite images, geophysical surveys, and decades of historical records—to identify patterns that would be nearly impossible for humans to detect. These systems can flag promising areas for exploration with greater accuracy, allowing companies to focus their investments where the likelihood of success is highest and avoid unnecessary drilling.

Saudi Arabian Mining Company (Ma’aden), the Kingdom’s flagship mining firm, has been actively exploring AI-driven tools to enhance exploration and resource modeling. By integrating advanced analytics into its workflows, Ma’aden has improved its ability to assess ore quality, estimate reserves, and shorten exploration timelines, making investment decisions more efficient and data-driven.

Once a mine is operational, AI continues to deliver value. Autonomous equipment and robotics are increasingly taking on tasks that were once labor-intensive and dangerous. Self-driving haul trucks, AI-assisted drilling systems, and automated processing plants are enabling more consistent, around-the-clock operations with reduced human exposure to risk.

Downtime is another costly challenge in mining. AI-powered predictive maintenance systems help address this by continuously monitoring equipment performance through sensors and real-time data feeds. Instead of reacting to breakdowns after they happen, operators can anticipate failures, schedule maintenance in advance, and extend the life of critical machinery. The result is lower operating costs and more reliable production.

Back in 2023, a notable initiative in this context is Ma’aden’s partnership with OffWorld, which develops AI-driven swarm robotic systems for autonomous mining tasks. These robots can perform repetitive or hazardous operations with minimal human intervention, enhancing safety and operational precision while enabling fully automated mining workflows in the Kingdom.

AI is also transforming ore processing and refining. Intelligent systems can adjust processing parameters on the fly based on the composition of incoming ore, improving recovery rates while reducing waste. For Saudi Arabia, where maximizing the value of each extracted resource is central to long-term sustainability, these efficiencies are particularly important.

AI in Safety and Sustainability

Mining will always carry inherent risks, but AI is helping make worksites safer and more controlled. Advanced monitoring systems now allow operators to oversee conditions across vast and often remote mining sites in real time.

AI-powered cameras, drones, and computer vision tools can detect structural weaknesses, monitor equipment behavior, and flag unsafe practices before they escalate into serious incidents. Video analytics, for example, can identify whether workers are complying with safety protocols, helping reduce accidents without relying solely on manual supervision.

Automation also plays a role in safety. Remote-controlled and autonomous machinery reduces the need for workers to operate in high-risk environments such as deep underground tunnels or extreme heat zones. This not only lowers accident rates but also improves precision and operational consistency.

Environmental sustainability is another area where AI is making a tangible impact. Mining can place heavy demands on water, energy, and land resources, especially in arid regions like Saudi Arabia. AI-driven systems help companies monitor and manage these impacts more effectively.

Water optimization tools analyze usage patterns in processing plants and recommend ways to reduce consumption without compromising output. Energy management systems adjust power usage in response to operational needs, cutting waste and lowering emissions. Satellite imagery and drone-based monitoring enable companies to track land rehabilitation efforts, detect pollution risks early, and ensure compliance with environmental regulations.

These capabilities align closely with Saudi Arabia’s broader sustainability ambitions and its goal of setting higher standards for responsible mining.

Industry Ecosystem and Opportunities

The rise of AI in Saudi mining is not just benefiting large corporations. It is also creating space for startups, technology firms, and research institutions to play a meaningful role.

Lithium Infinity (Lihytech), for example, a Saudi mining tech company, is developing advanced lithium extraction solutions, targeting minerals essential for batteries and the global energy transition. While AI is not yet native to their operations, these technologies are highly compatible with AI-driven optimization and automation.

Incubated by King Abdullah University of Science and Technology (KAUST), Lihytech represents a growing ecosystem where innovation meets industrial needs. With government programs supporting AI adoption and workforce development, startups like Lihytech have a chance to bridge technology gaps and accelerate the Kingdom’s journey toward smart mining.

Opportunities are emerging in areas such as geological data analytics, drone-based surveying, autonomous systems, and digital twins—virtual replicas of mining operations that allow companies to simulate scenarios, test improvements, and optimize workflows without disrupting live operations.

Challenges Are Still Ahead

At the same time, where the field is rich in opportunities, challenges remain. One of the biggest is data fragmentation, with geological and operational information often spread across disconnected systems. Startups specializing in data integration and AI compatibility could play a key role in bridging these gaps.

Workforce readiness is another hurdle. As mining becomes more data-driven, demand is growing for skills in AI, automation, and digital systems. Training platforms, simulation tools, and AI-enabled upskilling solutions will be essential to preparing the next generation of mining professionals.

Government support is helping accelerate this transition. The Ministry of Industry and Mineral Resources has been actively promoting digital transformation across the sector, while programs under Vision 2030 aim to localize mining technologies and encourage collaboration between miners and tech providers. Initiatives such as the Saudi Geological Survey’s National Geological Database are improving access to critical mining and geological data, enabling researchers, investors, and industry players to make more informed decisions. The National Industrial Development and Logistics Program (NIDLP) is supporting the sector by fostering innovation, local technology adoption, and integration across industrial value chains. Meanwhile, the Kingdom’s National Strategy for Data and AI, led by SDAIA, provides a strong framework for adopting AI technologies across industrial sectors, including mining, helping drive digital transformation and long-term competitiveness under Vision 2030.

Recent Industry Milestone
The sector’s momentum was highlighted at the fifth Future Minerals Forum, held in Riyadh in January 2026, which drew over 21,500 participants from governments, investors, and technical experts worldwide. The forum, themed “Dawn of a Global Cause,” showcased Saudi Arabia’s growing role as a hub for responsible mineral development and innovation. Over the course of the event, participants signed 132 agreements and memoranda of understanding worth approximately USD 26.6 billion, covering exploration, financing, R&D, innovation, and sustainability initiatives. Key recommendations emphasized accelerating the adoption of advanced technologies, strengthening regulatory frameworks, expanding investment incentives, and fostering global collaboration to secure resilient and sustainable mineral supply chains. The forum’s outcomes underline the Kingdom’s commitment to both technological innovation and long-term sustainability in mining.

Conclusion

Artificial intelligence is rapidly reshaping Saudi Arabia’s mining sector, changing how minerals are discovered, extracted, and processed. By improving exploration accuracy, streamlining operations, enhancing safety, and strengthening environmental stewardship, AI is helping the industry overcome long-standing challenges.

Beyond operational gains, AI is also catalyzing a broader innovation ecosystem, creating new opportunities for startups, technology providers, and research institutions to contribute to the Kingdom’s mining ambitions. Backed by government support and growing private sector investment, Saudi Arabia is steadily building a smarter, more resilient mining industry.

As global competition for critical minerals intensifies, the Kingdom’s AI-driven approach offers a compelling model for sustainable and technology-led resource development. By combining vast mineral resources with advanced digital capabilities, Saudi Arabia is not just diversifying its economy but also redefining what modern mining can look like in the decades ahead.

Noha Gad

Saudi Arabia’s agricultural sector contributed $31.5 billion to the Kingdom's gross domestic product (GDP) in 2024, triggered by rising production and initiatives that strengthened food self-sufficiency. According to recent official data from the Ministry of Environment, Water, and Agriculture, total agricultural and food production exceeded 16 million tons in 2024, reflecting progress toward building resilient, sustainable food systems.

Despite almost 90% of the country being desert, Saudi Arabia is undergoing a remarkable transformation, actively expanding domestic crop production and reducing reliance on imports, cultivating a future where fresh, locally-grown produce is a cornerstone of its economy and food security. This shift is central to the ambitious goals of Saudi Vision 2030, which prioritizes self-sufficiency and economic diversification.

Historically dependent on imports to meet its population's needs, the Kingdom now views its fresh produce sector as a strategic priority. According to figures published by the General Authority for Statistics (GASTAT), total imports of crops in the Kingdom reached 18.7 million in 2024, an increase of 10.8% compared to 2023. Additionally, the cultivated area of open-field vegetables reached 89,700 hectares, with a production volume of 2.7 million tons in 2024, marking an increase of 8.4% compared to 2023. 

Evolving landscape of Saudi fresh produce

The structure of Saudi Arabia's fresh produce market is experiencing a fundamental change, transitioning from a model of heavy import reliance to one of strategic local empowerment. For many years, the majority of fruits and vegetables consumed within the Kingdom were imported from global sources. Guided by the objectives of the National Agriculture Strategy, this sector is shifting as substantial public and private investments target a significant increase in domestic production capacity.

Saudi Arabia is emerging as a surprising leader in advanced agricultural technologies, moving decisively beyond water-intensive practices toward a model defined by precision, control, and data-driven intelligence. From vast, climate-controlled greenhouses to sophisticated vertical farms, the nation is redefining what is possible in desert agriculture. At the heart of this agricultural revolution is the strategic adoption of cutting-edge technologies. Innovations in controlled environments, automation, and water conservation are building a resilient foundation for growth. Crucially, Artificial Intelligence (AI) is now being deployed as the central nervous system of this modern sector, optimizing every aspect from seed to harvest.

Key technologies bolstering the industry

Today, the Saudi fresh produce sector is enabled by various advanced technologies that contribute to creating optimal growing conditions while conserving water resources. These technologies include:

• Controlled Environment Agriculture (CEA). Structures such as high-tech greenhouses and indoor vertical farms use automated systems to precisely manage temperature, humidity, light, and carbon dioxide levels. Within them, advanced irrigation and fertigation systems, such as automated drip networks, deliver water and nutrients directly to plant roots. This method eliminates waste and provides crops with an ideal, consistent climate year-round, independent of the harsh external desert conditions.
• Smart water management. Systems employing sophisticated sensor networks can monitor real-time soil and plant moisture data. Also, advanced wastewater treatment and recycling technologies are becoming standard, ensuring that every drop is used multiple times within a closed-loop system to maximize conservation.
• Automation and Robotics. They play a pivotal role in increasing the scale and precision of farming operations. From automated seeding and planting robots to autonomous drones that scout fields for pests, technology is handling repetitive and labor-intensive tasks. Additionally, post-harvest, automated optical sorters and packing lines use sensors to grade produce by size, color, and quality at high speed.

Main applications of AI in the fresh produce industry

Along with the previously mentioned technologies, AI emerged as the central intelligence that optimizes them all. By processing vast amounts of data from sensors, drones, and satellites, AI algorithms generate actionable insights, moving the sector from reactive management to proactive decision-making. Key applications of AI include:

• Predictive analytics and precision farming. AI models analyze historical climate data, real-time sensor readings, and plant physiology to forecast optimal growing conditions. AI-powered computer vision by drones and cameras captures detailed imagery, which AI software scans to detect early signs of disease, pest infestation, or nutrient deficiencies.
• Smart automation and resource optimization. Machine learning algorithms dynamically adjust irrigation schedules and nutrient delivery in real-time based on plant needs and evaporative demand, achieving unprecedented water and fertilizer efficiency. 
• Supply chain and post-harvest processes. AI can predict market demand fluctuations, helping to align harvest schedules with pricing trends and reduce waste. In packing facilities, AI-powered vision systems perform consistent, high-speed grading and sorting, ensuring only produce meeting strict quality standards proceeds.

Despite significant technological progress, the growth of Saudi Arabia's high-tech fresh produce sector faces different challenges. The initial capital investment required for advanced greenhouses, AI systems, and automation remains substantial, potentially limiting access for smaller-scale farmers. Additionally, the energy demands of controlled environment agriculture, particularly for cooling and lighting, present an ongoing operational cost and sustainability consideration. Success also depends on developing a skilled local workforce with expertise in data science, agronomy, and tech maintenance, requiring continued investment in specialized education and training programs.

Finally, Saudi Arabia’s fresh produce sector reflects a broader national transformation under Vision 2030. By strategically deploying controlled-environment agriculture, precision water management, and intelligent automation, the Kingdom has turned its agricultural challenges into a catalyst for innovation. Harnessing cutting-edge technology and forward-thinking policy will enable the Kingdom to secure its food future while contributing to a more sustainable and innovative model of agriculture.

Ghada Ismail

In the first article, we explored the API Economy as a global shift, but understanding the concept is only the beginning. The real story emerges when we look at how the API Economy takes shape on the ground, inside actual markets.

When a user taps “pay,” links a bank account, or signs into a digital wallet, the experience looks simple. But behind every smooth tap lies a hidden world: API gateways, microservices, integration layers, open-banking rails, and banking-as-a-service components working in perfect coordination. While global conversations highlight Stripe, PayPal, and social media APIs, Saudi Arabia’s reality is driven by a growing network of local firms quietly building the financial infrastructure of the future.

This article maps the local ecosystem, the players powering it, how the architecture works, and why Saudi Arabia’s API economy is becoming a strategic backbone for the region.

Why the API Economy Is Accelerating in Saudi Arabia

The foundations of Saudi Arabia’s API ecosystem are being shaped by three intersecting forces:

1. Regulatory clarity and open banking readiness.
Saudi regulators and banks have laid down frameworks that encourage standardized APIs, account-data access, and safe third-party integrations. This clarity reduces friction for both fintechs and API providers.

2. Rapid consumer adoption of digital payments.
With mobile wallets, tap-to-pay, and online banking becoming mainstream, demand for stable, scalable backend infrastructure has never been higher.

3. The need for speed, cost efficiency, and modular development.
Instead of reinventing infrastructure, fintechs can now assemble it — using APIs for payments, identity, compliance, or card issuance. This modularity is what allows Saudi fintechs to launch fast and scale without massive upfront investment.

Together, these factors have created the conditions for a strong local market of API builders, integrators, and specialized fintech-infrastructure companies.

Who Is Building Saudi Arabia’s API Infrastructure?

Saudi’s API ecosystem isn’t driven by one type of company — it’s a layered network of infrastructure specialists. Below are the key categories and the local firms shaping each layer.

1. Microservices, Cloud & Integration Firms: SkyTech Digital, AusafTech, Tech Polaris

These companies form the technical backbone that many fintechs rely on:

SkyTech Digital

• Designs microservices architectures and cloud-native applications.
• Helps businesses migrate from legacy or monolithic systems to modular, API-driven backends.
• For fintechs, this means faster performance, better scalability, and easier maintenance.

AusafTech

• Specializes in full-stack API integration — from advisory to testing to long-term maintenance.
• Connects systems to payment gateways, CRMs, cloud platforms, and messaging services.
• Plays a crucial role when fintechs need multiple integrations handled reliably.

Tech Polaris

• Offers API development and integration support for businesses building modular services.
• Represents the growing demand for API-first engineering firms in the Kingdom.

These firms make fintech architecture possible: without microservices, cloud-native environments, or integration scaffolding, fintech products simply wouldn’t scale.

2. Fintech-Facing API Platforms: Open Banking, Payments, Cards & Payouts

Beyond general integration, Saudi fintechs rely on API-first firms that offer ready-made financial infrastructure.

Open banking aggregators (e.g., Lean Technologies, SingleView)

• Provide account-data APIs, payment initiation, and bank connectivity.
• Let fintechs fetch transaction data, verify accounts, or build budgeting tools without separate bank integrations.

Banking-as-a-Service & card-issuing platforms (e.g., NymCard)

• Enable virtual cards, user payouts, financing modules, and program management — all via APIs.
• Allow fintechs to launch financial services without building rails from scratch.

Payment service providers and merchant platforms (e.g., Geidea)

• Offer robust payment APIs, checkout solutions, and payment links.
• Let marketplaces, apps, and online merchants embed payments instantly.

When assembled together, these API components create a “plug-and-play fintech stack” — one that allows startups to focus on the product rather than the plumbing.

How These Layers Work Together: A Realistic Saudi Fintech Stack

To understand how this ecosystem behaves in practice, imagine a Saudi fintech launching a digital wallet, BNPL service, or SME-payments tool:

• Backend architecture: A firm like SkyTech builds the cloud-native, microservices-based foundation.
• Payment processing: The fintech integrates Geidea’s payment APIs.
• Cards and payouts: They plug into NymCard’s card-issuing or payout APIs.
• Bank-account connectivity: Lean Technologies or SingleView enables account linking and open-banking flows.
• Additional integrations: AusafTech manages CRM, SMS, cloud services, and other connections.

The result?
A fully operational fintech product built in months — not years — thanks to a layered ecosystem of specialized API providers.

This is the API Economy made real.

Why Local Firms Matter More Than Ever

While global API giants dominate headlines, Saudi fintechs increasingly depend on regional infrastructure firms — for reasons that are both practical and strategic:

• Regulatory alignment: Local providers are built for SAMA compliance and Saudi banking rules.
• Localization: They understand cultural norms, payment behaviors, and Arabic-language user journeys.
• Speed of integration: Proximity enables faster iteration and customization.
• Resilience: Relying only on global providers increases risk; a diverse regional stack is more stable.

These companies are not outsourced vendors; they are ecosystem enablers building national infrastructure.

Implications for Founders, Investors, and Policymakers

For startups and founders:

• APIs significantly reduce time-to-market.
• Modular infrastructure lets teams focus on UX and differentiation.
• Choosing the right integration partners becomes a strategic decision.

For investors:

• API providers are long-term infrastructure bets.
• Their value compounds as the fintech market expands.

For regulators:

• Clear API standards and sandboxes accelerate innovation.
• Supporting local API firms strengthens national digital sovereignty.

Conclusion: Saudi Arabia’s API Economy Has Entered Its Infrastructure Phase

If the first article explained what the API Economy is, this article explains how it is being built in Saudi Arabia — and by whom.

The Kingdom’s fintech growth is not powered solely by consumer-facing apps, but by the invisible architecture behind them: APIs, microservices, integration frameworks, open-banking rails, card-issuing platforms, and PSP gateways. Companies like SkyTech Digital, AusafTech, Tech Polaris, Geidea, NymCard, Lean Technologies, and SingleView are quietly building the rails that make everything possible.

The real story of Saudi fintech is not just about innovation on the surface.
It’s about the infrastructure underneath — reliable, compliant, modular, and fast-evolving.

And as Saudi Arabia accelerates toward a fully digital economy, those who understand and invest in this infrastructure will be shaping not just apps, but the future of finance across the region.

Noha Gad

Modern commerce is witnessing a significant transformation triggered by rapid developments in technology. The traditional retail landscape, which was centered on physical stores and direct customer interactions, is evolving into a digitally interconnected ecosystem. This change was driven by emerging technologies that enhance how products are sold and redefine the overall customer experience and operational efficiency. 

Technologies such as artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) emerged as key enablers that revolutionize each aspect of modern commerce. Businesses increasingly utilize cutting-edge tools to understand and anticipate customer needs, tailor offerings, and create more engaging shopping environments. AI-driven analytics allow retailers to handle vast amounts of data, providing insights that help optimize product assortments, pricing strategies, and personalized marketing.

On the other side, VR and AR fill the gap between digital and physical worlds, offering immersive and interactive experiences for customers, ultimately enhancing logistical operations by improving warehouse management, staff training, and real-time problem-solving.

As modern commerce continues to evolve, organizations embracing these technologies are well-positioned to meet rising consumer expectations and adapt to the fast-changing market landscape effectively. Thus, understanding the importance of this technological evolution is essential for businesses to remain competitive

How AI transforms modern commerce

AI has become a cornerstone of innovation in modern commerce, driving significant improvements across customer engagement, inventory management, and operational efficiency.

-Personalization and customer insights. AI uses machine learning algorithms to analyze customer data, such as browsing behavior, purchase history, and preferences. This enables businesses to deliver personalized product recommendations and marketing messages in real time, enhancing customer satisfaction and boosting conversion rates.

-Inventory management and forecasting demand. AI models can optimize inventory levels by processing large datasets on sales trends, seasonality, and external market factors. This reduces risks of overstock or stockouts, cutting costs related to excess inventory and lost sales opportunities

-Customer experience enhancement.  AI-powered chatbots and virtual assistants provide 24/7 customer support by handling routine inquiries, guiding shoppers through product selections, and resolving common issues quickly. This ultimately contributes to enhancing customer experience and reducing response time, thereby enabling human agents to focus on more complex problems. 

-Fraud detection. AI models detect unusual patterns and potential fraud in real time by analyzing transaction data and user behavior. This capability enhances the security of digital payments and protects both merchants and customers from cyber threats.   

Using VR and AR to enhance the shopping experience 

VR and AR are transforming the shopping experience as they create immersive environments that engage customers in ways traditional retail cannot. For instance, virtual stores and showrooms allow shoppers to explore products in a fully digital space without leaving their homes. Both innovations enable virtual product try-ons and demonstrations, especially valuable in sectors like fashion, furniture, and automotive.

Additionally, VR and AR are used for remote product training and retail staff education. Retailers can simulate real-world scenarios to train employees on product knowledge, customer interaction, and store layout without disrupting physical store operations. This method improves staff preparedness and service quality, directly benefiting the shopping experience.

These innovative technologies also fill the gap between physical and online retail, making shopping more interactive, engaging, and convenient in the modern commerce landscape. They enable interactive marketing campaigns and promotions that engage customers in innovative ways.

The integration of AI, VR, and AR technologies in modern commerce has a significant impact on supply chains and logistics as they can optimize inventory and deliveries, enhance warehouse and fulfilment efficiency, promote logistics planning, and improve risk management. 

Finally, these emerging technologies are fundamentally reshaping the landscape of modern commerce, creating opportunities for businesses to innovate and deliver exceptional customer experiences. 

Beyond customer interaction, they revolutionize the operational backbone of commerce by optimizing supply chains and logistics. AI-driven analytics improve forecasting and inventory control, AR guides warehouse staff to operate more efficiently, and VR simulations help plan resilient delivery routes and workflows. Together, these innovations not only reduce costs but also enhance speed, accuracy, and flexibility in meeting consumers’ growing demands.

Looking ahead, the continued convergence of AI, VR, and AR is expected to unlock more transformative possibilities that will redefine how people discover, interact with, and purchase products.

Noha Gad

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We are pursuing growth in three main ways: 

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

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

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

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

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

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

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

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

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

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

Noha Gad 

The e-commerce sector in Saudi Arabia has witnessed rapid and transformative growth over the past years, backed by government policies and reforms, rising internet penetration, and the increasing demand for online shopping and electronic payments. According to recent figures by the Small and Medium Enterprises General Authority (Monsha’at), the total number of active e-commerce registrations recorded 41,322 by the end of the first quarter (Q1) of 2025, marking a 6% year-on-year (YoY) increase.

The e-commerce sector emerged as a key pillar of the Saudi Vision 2030’s goals of enhancing the national economy and reinforcing the Kingdom’s position among the world’s top 10 countries leading e-commerce growth. The total number of existing e-commerce registrations surpassed 39,300 in Q2-15, according to the latest report released by the Ministry of Commerce.

The e-commerce market in Saudi Arabia is projected to reach $24.1 billion in 2029, with a compound annual growth rate (CAGR) of 9.91% during the period from 2025 to 2029, according to Statista, the global data and business intelligence platform. Another report published on the Research and Markets platform, the world’s largest market research store, expected this promising sector to hit $689 billion by the end of 2033, with a CAGR of 12.1% from 2025-2033.

As consumers are shifting towards online shopping due to convenience and competitive pricing, dropshipping has emerged as a cost-effective and scalable business model that enables businesses, notably small and medium-sized enterprises (SMEs), to enter the market.

What is dropshipping?

Dropshipping, or direct shipping, is a fulfillment model that allows entrepreneurs and e-commerce businesses to outsource the processes of procuring, storing, and shipping products to a third party, typically a supplier. This fulfillment model commonly appeals to entrepreneurs seeking efficiency and low overhead. It enables the retailer to forward the order details to a third-party supplier, such as a manufacturer, wholesaler, or distributor, who then handles the packaging and ships the product directly to the customer. This means that the retailer acts as a middleman, selling products without ever physically handling them.

Traditionally, retailers need to buy products in bulk, store them, and take care of shipping logistics, which requires significant capital and operational resources. Dropshipping removes these barriers by allowing online sellers to focus primarily on marketing and customer service while the supplier manages fulfillment.

How to start your dropshipping business in Saudi Arabia?

The very first step to start your dropshipping business is to choose the products you want to sell in your online store. You can select products from a supplier or a manufacturer, based on your niche and target audience.

Company formation and commercial registrations. In this step, you have to obtain your commercial registration (CR) and select the correct legal structure, whether it is a sole proprietorship, LLC, or an establishment. You must also register your business with the Zakat, Tax, and Customs Authority (ZATCA) for VAT compliance. 

To set up your online store or platform, you have to conduct a comprehensive feasibility study and market research to assess demand trends for your product niches in the Saudi market, competition benchmarks and pricing analysis, customer segmentation and social media targeting, fulfillment timelines, and supplier reliability, in addition to profitability projections under different growth scenarios.

After obtaining all required documents and finishing the market research, you have to find a reliable supplier to get quality products at competitive prices. Now, you can list products on your online store, using product descriptions and images provided by the supplier to create product listings. You will need to integrate local payment gateways, such as SDAD, Mada, and other popular payment solutions in Saudi Arabia, into your platform 

Pros and Cons of a dropshipping business

The dropshipping business model offers various benefits for entrepreneurs, notably:

• Overhead costs: You do not need a huge capital to start. Dropshipping has the potential to lower overhead costs, including maintaining a storage facility or sending products to customers. 
• Starting costs: Entrepreneurs looking to start a business with minimal investment choose dropshipping as they do not need to invest in facilities or resources to process orders.
• Reduced risks: dropshipping offers less risk of losing money due to lost merchandise or over-ordering products since the stock is kept at the suppliers’ warehouse.
• Operating location: You can fulfill orders regardless of your operating location, opening up a possibility to work from anywhere.
• Product variety: Dropshipping enables you to sell a broad range of items and increase your earning potential.
• Flexibility and scalability: this business model allows you to test different goods to see what sells best, without worrying about losing your investment. It also enables you to accept more orders without increasing the inventory you store, package, and ship.

Although the dropshipping model provides various benefits, it comes with several disadvantages, including:

• Limited control over product quality, which may lead to poor customer satisfaction.
• High competition and market saturation make it difficult to maintain profit margins.
• Heavy reliance on suppliers for inventory availability, fulfillment, and accuracy.
• Challenges in managing returns and refunds, especially with multiple or international suppliers

With key players such as Salla, Zid, and Dukakeen, the dropshipping business model can boost the e-commerce industry in Saudi Arabia through multiple mechanisms. This includes reducing entry barriers for entrepreneurs, increasing product variety, and supporting scalability, capitalizing on the Kingdom’s massive investment in digital infrastructure and entrepreneurship.

Finally, the emergence of the dropshipping model further highlights the flexibility and inclusiveness of the Saudi e-commerce sector. By enabling businesses of all sizes to reach customers efficiently, it helps diversify product offerings and accelerates market entry, reinforcing the Kingdom’s role as a leader in e-commerce transformation. Although this model presents operational challenges, its capacity to foster entrepreneurship and lower barriers makes it integral to Saudi Arabia’s ambitious plans for development and digital progress.

Looking ahead, continued advancement in payment infrastructure, logistics, and technology will only serve to strengthen the Kingdom’s competitive edge in global e-commerce.

Ghada Ismail

If you’ve ever clicked that “return item” button after buying something online, you’ve already taken part in reverse logistics, even if you didn’t know the term existed.
For startups in Saudi Arabia and across the MENA region, this behind-the-scenes process isn’t just a technical detail. It’s quietly shaping customer loyalty, cutting costs, and even opening up fresh revenue streams.

So, What Exactly Is Reverse Logistics?

Think of it as the product’s journey home.
It’s what happens when goods travel from the customer back to you, for a refund, a repair, recycling, or proper disposal. Forward logistics moves products toward customers; reverse logistics does the opposite.

And in Saudi Arabia’s booming e-commerce scene — forecast to exceed SAR 50 billion by 2025 — returns are on the rise. Globally, between 15%–30% of online purchases get sent back. Our region is no different. For a young business, ignoring reverse logistics is like running a store with no door for customers to walk back in.

Why Startups Should Care

1. Winning Repeat Customers
Shoppers here expect convenience. If returning a product is quick and painless, they’ll come back. In a market where it costs a lot to win a customer, it makes sense to keep them.

2. Avoiding Operational Chaos
Without a plan, returns can become a nightmare between rushed pickups, lost items, and confused inventory systems. The earlier you set up a clear process, the fewer headaches later.

3. Saving Money and Going Green
Not every return is a loss. Many items can be refurbished, resold, or recycled. With Saudi Arabia’s Vision 2030 pushing sustainability, turning returns into a green initiative can pay off in more ways than one.

4. Learning from Every Return
Returns tell you a story: maybe a size runs small, maybe the packaging is weak, maybe delivery was too slow. Each one is a clue for improving your product and your service.

Making Reverse Logistics Work for You

• Team up with third-party logistics (3PL) providers: like Aramex, SMSA, or regional fulfillment startups offering returns as part of their package.
• Use tech:  apps like Fetchr or Quiqup make it easy to track returns, print labels, and keep customers updated.
• Be transparent: a clear, friendly returns policy on your website builds trust instantly.

A Saudi Success Story

One local example is Cartlow, a Riyadh-based re-commerce platform. Cartlow specializes in returned, overstock, and refurbished products, turning what could be waste into a profitable business.
By building reverse logistics into their model from day one, they’ve managed to partner with major retailers, process high volumes of returns efficiently, and resell items at discounted rates. Not only does this reduce landfill waste, but it also taps into a growing market of value-conscious shoppers. 

Wrapping things up…

Reverse logistics isn’t just an operational chore; it’s rather a powerful growth strategy. For startups in Saudi Arabia and the MENA region, nailing it early means happier customers, lower costs, and a stronger brand.
Because in business, just like in life, sometimes the way back is just as important as the way forward.

Noha Gad 

The food and beverage (F&B) sector represents a key pillar in Saudi Arabia’s journey towards economic diversification and sustainable growth. This promising industry has witnessed a significant expansion with technology being a catalyst for seismic changes in the sector amid shifting market dynamics and evolving consumer demands.

A recent report by AstroLabs, the leading business expansion platform in MENA, revealed that the market value of the Saudi F&B industry reached $45 billion in 2024, presenting lucrative business opportunities across its segments and subsegments. The same report anticipated consumer spending on food services to rise by 6% annually over the next five years, while the food delivery market is projected to surge to $14.9 billion by 2028.

Technology has profoundly transformed every stage of the food value chain, from using advanced agricultural technologies that enhance farming and enable controlled environment agriculture, to shaping how food is accessed, prepared, and enjoyed. Integrating IoT and blockchain also enhanced supply chain transparency, food safety, and traceability, building greater consumer trust and reducing inefficiencies throughout the sector.

This synergy between tradition and modernity not only preserves Saudi Arabia’s culinary heritage but also ensures that technology remains at the heart of future growth, delivering resilient, sustainable, and world-class food systems for generations to come.

Another report by the global business consulting firm, Grand View Research, unveiled that the food technology (foodtech) market in Saudi Arabia is expected to reach $10.2 million by 2030, marking a compound annual growth rate (CAGR) of 10.5%.

Additionally, the latest report by the Saudi Central Bank (SAMA) highlighted that the point-of-sale (PoS) sales in the F&B sector surpassed SAR 165.7 billion during the second quarter (Q2) of 2025, backed by a humble increase in the number of transactions, which reached over 2.7 billion.

Critical things to consider for establishing a strong presence in the Saudi F&B sector

• Testing the market first and prioritizing omnichannel retail. Companies that aspire to expand into Saudi Arabia must test their products in the market before making large investments. Also, omnichannel retail involving online and offline sales has become an important mainstay in the Saudi retail sector, while the growth of younger consumers has resulted in a shift from traditional trade to modern trade. 
• Obtaining Halal certifications and forging partnerships with local players. Halal certification is necessary for food brands to gain a foothold in this market. They need to ensure compliance with Saudi Food and Drug Authority (SFDA) regulations.
• Utilizing logistics and temperature-controlled delivery hubs to ensure products remain fresh.

The Saudi foodtech landscape is bustling with innovations and investment, with several startups leading the charge, notably Nana, the dark store grocery delivery startup and a key player in the digital shopping solutions sector; Foodics, the leading cloud-based technology and payments platform for restaurants; iyris, the innovative agriclimate tech company specializing in advancing commercial farming; Mr. Mandoob, a state-of-the-art delivery platform that connects consumers with various dark stores, and more. 

Key innovations that transform the F&B sector in Saudi Arabia 

Cloud Kitchens 

The cloud kitchen business is transforming the food service industry in Saudi Arabia, providing a unique blend of convenience and innovation to meet the evolving demands of consumers. Cloud kitchens, or virtual kitchens, operate exclusively for delivery orders without dine-in options, offering a cost-effective alternative to traditional restaurants. This model allows food entrepreneurs and established restaurant chains to launch multiple brands from a single kitchen space.

The boom in the cloud kitchen industry was driven by high demand for delivery services, notably during the COVID-19 pandemic, lower operational costs, flexible operations, and the emergence of e-commerce and delivery platforms, such as Jahez, HungerStation, and Talabat.

According to a survey conducted by Qoot, a subsidiary of management consulting firm Mukatafa, 44% of respondents believe that cloud kitchen businesses have lower operational costs than a normal restaurant. However, 56% said they saw fewer sales than a normal restaurant business, with only 17% reporting more sales.

The cloud kitchen market in Saudi Arabia is expected to hit $335.7 million by 2030, growing at a CAGR of 7.7% from 2021 to 2030, as stated by Al Taasis, a leading business incorporation and on-the-ground corporate solutions specialist.

Over the next five years, Saudi Arabia is anticipated to become one of the leading markets for cloud kitchens in the region, backed by urbanization, government support for entrepreneurship, and a growing appetite for digital services.

Establishing a cloud kitchen business offers various advantages, including the flexibility in menu changes, reduced financial burden, operational efficiency, and direct access to customer insights.

Subscription Meal Services

The subscription meal services industry in Saudi Arabia is gaining momentum as consumers increasingly seek convenient, healthy, and personalized dining options. This service offers customers the ability to subscribe to meal plans that deliver ready-to-eat or easy-to-prepare meals regularly, catering to varying dietary needs and preferences. 

The rising awareness of nutrition and wellness, urban lifestyles that limit time for cooking, and the integration of digital platforms that enhance user experience have accelerated the growth of subscription meal services in the Kingdom.

The ‘KSA Subscription-based Meals Market Research’ report, published by MarkNtel, stated that the subscription-based meals market in Saudi Arabia reached $254 million in 2024, and is expected to hit $383.5 million by 2030, with a CAGR of around 7.11% during 2025-2030.

Figures released by the global data and business intelligence platform, Statista, revealed that revenue in the Saudi meal delivery market is projected to surpass $10 billion in 2025 to reach $11.7 billion by 2030.

Calo is one of the key players that revolutionizes personalized meal subscriptions in Saudi Arabia. In 2024, it delivered 10 million meals across the GCC, reinforcing growing demand for data-driven, personalized nutrition.  

Other Saudi subscription meals platforms, such as Freshhouse, Right Bite, and Dailymealz, allow users to update their meal plans, pause or skip deliveries, and provide feedback, creating a highly user-centric experience. They provide consumers flexibility in meal selections, customizable menus, and streamlined delivery schedules, making it easier for them to maintain consistent healthy eating habits.  

AI-Powered Food Applications

Technology is a game-changer in the online food delivery market in Saudi Arabia. Platforms invest heavily in new tools that make things easier for users and run their operations better. They also utilize artificial intelligence (AI) and data to tailor their services, predict consumer preferences, and find the best routes for delivery. A recent report published by IMARC Group stated that the online food delivery market in Saudi Arabia is expected to record $5.71 billion by 2033, marking a CAGR of 13.6 during 2025-2033.

The AI-powered food applications in Saudi Arabia operate within a rapidly growing multi-billion-dollar online food delivery market, backed by high-tech infrastructure, a high internet penetration rate (99%), a large base of digital consumers, and heavy use of AI for personalization, logistics, and operational efficiency

Finally, the emergence of a digital food landscape has created opportunities for new delivery systems. The ongoing digitization of the food delivery space reflects a dynamic scene with potential shifts and increased business activities, contributing to the development of the Saudi tech sector and the realization of Vision 2030’s objective of localizing 85% of its food industry by 2030. 

Noha Gad

The substantial growth in the e-commerce sector over the past few years has revolutionized the retail landscape, powered by a surge in global online shoppers and evolving consumer expectations. In 2025, the number of online shoppers across the world is expected to reach around 2.77 billion, representing almost one-third of the global population, according to recent data released by SellersCommerce, a leading global B2B platform transforming the e-commerce landscape. 

This rapid expansion is triggered by increasing internet penetration, mobile commerce adoption, and the convenience offered by digital platforms. Consumers now demand faster, more flexible, and reliable delivery options, raising the bar for companies to optimize their last-mile delivery processes.

The term ‘last-mile delivery’ refers to the final stage in the supply chain where goods travel from a warehouse or local distribution center to the end customer’s doorstep, business, or a parcel locker. Although last-mile delivery is the shortest leg of a product’s journey, it is the most complex and expensive part of the logistics process, accounting for over half of total shipping costs. This phase directly links brands to consumers, serving as the ultimate touchpoint in fulfilling customer orders.

The rise in e-commerce and on-demand services highlighted the importance of last-mile delivery in meeting customers’ expectations to receive their packages safely with remarkable speed and flexibility. Same-day and next-day delivery options have become standard expectations, pushing businesses to innovate and optimize this phase of logistics. Thus, last-mile delivery is no longer just about moving parcels but about delivering superior customer experience and satisfaction.

Last-mile delivery requires careful route optimization, multiple stops, and flexible scheduling to meet strict delivery deadlines, especially in crowded urban environments. With growing expectations for transparency, customers now demand real-time tracking and prompt notifications, adding pressure on carriers and logistics providers. Successfully navigating these operational complexities can set companies apart in a competitive landscape and build lasting customer loyalty.

The evolution in last-mile delivery

The last-mile delivery landscape saw a remarkable evolution, driven by the shift from simple, manual processes to highly sophisticated, technology-driven operations. In the past, deliveries were largely managed through routine routes and fixed schedules, but today, last-mile delivery has transformed into a dynamic, customer-focused process that leverages data analytics, automation, and smart logistics solutions to optimize every step of the journey.

Emerging technologies played a pivotal role in enabling this shift. Real-time tracking systems, route optimization software, and mobile applications empowered delivery teams with the tools to plan more efficient routes, reduce fuel consumption, and proactively communicate with customers. Additionally, data analytics provides crucial insights into delivery patterns, resource allocation, and customer preferences, allowing companies to enhance their operations for maximum efficiency. 

These technological developments raised customers' expectations for last-mile delivery as shoppers prioritize speed and convenience, with same-day and even one-hour deliveries becoming standard in many markets. 

Outsourcing last-mile delivery became a strategic priority for many businesses aiming to meet the rising demands of today’s fast-paced and competitive market. By outsourcing last-mile delivery, companies mainly rely on specialized third-party logistics (3PL) providers to handle the critical final stage of the supply chain, instead of managing their own fleets and delivery personnel.

This shift enables businesses to scale operations efficiently without incurring the heavy costs of fleet ownership and management. It also enhances customer experience by providing more localized and flexible delivery options.

Key innovations in last-mile delivery

• Electric and autonomous delivery vehicles. This innovation is ideal in urban locations with frequent stops and short distances. It contributes to reducing carbon emissions, noise pollution, and operational costs. Leveraging AI, GPS, and sensors, autonomous delivery vehicles can navigate complex environments and operate 24/7. Despite these promising benefits, challenges remain in regulatory approval, cybersecurity, and infrastructure adaptation.
• Drone Delivery. This solution rapidly emerged as a transformative power in last-mile logistics as it offers unparalleled speed and flexibility in reaching customers, especially in congested urban centers and remote areas. This ability makes drones ideal for urgent deliveries such as medical supplies, food, and small parcels, where speed is critical. Electric-powered drones produce zero emissions and reduce road congestion, enabling direct deliveries to homes or designated drone ports, supporting sustainable urban logistics. One of the key challenges that delivery drones face is payload and flight range limitations that restrict package size and delivery distance.

Overall, last-mile delivery acts as a critical bridge in the logistics chain, connecting the complex global supply network to individual consumer experiences. Its evolving role requires continuous innovation to meet customer expectations for fast, reliable, and sustainable delivery. Mastering last-mile delivery is not just about moving parcels faster; it’s about crafting exceptional delivery experiences that build trust, loyalty, and a greener future in an ever-connected digital marketplace.

Kholoud Hussein 

In the rapidly evolving landscape of online retail, two models have emerged as dominant forces: traditional e-commerce and the newer, faster q-commerce. While both operate within the digital marketplace, they cater to different consumer needs and expectations. Understanding the distinctions between these models is crucial for businesses aiming to optimize their strategies and for consumers seeking the most suitable shopping experiences.

Understanding E-Commerce

E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. This model has revolutionized retail by offering consumers the convenience of shopping from anywhere at any time. E-commerce platforms typically provide a vast selection of products, ranging from electronics and clothing to home goods and more. Delivery times can vary, often taking several days, depending on factors like location and shipping options.

Introducing Q-Commerce

Q-commerce, or quick commerce, represents a subset of e-commerce that focuses on ultra-fast delivery, often within minutes to a few hours. This model has gained traction with the rise of mobile technology and the increasing demand for immediate gratification. Q-commerce is particularly prevalent in urban areas, where dense populations and infrastructure support rapid delivery services. Products commonly offered include groceries, personal care items, and other daily essentials.

Key Differences Between E-Commerce and Q-Commerce

1. Delivery Speed: The most significant distinction lies in delivery times. E-commerce typically involves standard shipping durations, ranging from a few days to a week. In contrast, q-commerce emphasizes speed, aiming to fulfill orders within an hour or less, catering to consumers' desire for instant access to products.
2. Product Range: E-commerce platforms often boast extensive product catalogs, offering a wide array of items across various categories. Q-commerce, however, focuses on a curated selection of high-demand, essential products that can be delivered quickly, such as groceries and household necessities.
3. Operational Infrastructure: E-commerce relies on large warehouses and a broad logistics network to manage inventory and fulfill orders. Q-commerce utilizes smaller, strategically located fulfillment centers, often called "dark stores," to facilitate rapid delivery within specific geographic areas.
4. Consumer Behavior: Shopping patterns differ between the two models. E-commerce purchases are often planned, with consumers taking time to compare products and prices. Q-commerce caters to impulse buying and urgent needs, providing a solution for last-minute purchases.
5. Technology Utilization: Both models leverage technology, but q-commerce heavily depends on real-time data, GPS tracking, and mobile applications to coordinate swift deliveries and manage inventory efficiently.

Market Trends and Statistics

The q-commerce sector has experienced significant growth, driven by changing consumer behaviors and technological advancements. For instance, the global q-commerce market was valued at $25 billion in 2021 and is projected to reach $72 billion by 2025, reflecting a compound annual growth rate (CAGR) of 29%. This surge is attributed to the increasing demand for convenience and the proliferation of smartphones and internet connectivity.

Business Implications

For businesses, choosing between e-commerce and q-commerce models depends on various factors, including target audience, product type, and operational capabilities. E-commerce is suitable for companies offering a broad range of products and targeting a wide geographic area. Q-commerce is ideal for businesses focusing on essential goods and serving densely populated urban centers where rapid delivery is feasible.

Finally, both e-commerce and q-commerce have transformed the retail landscape, each offering unique advantages tailored to different consumer needs. E-commerce provides variety and accessibility, while q-commerce delivers speed and convenience. As consumer expectations continue to evolve, businesses must adapt by integrating elements of both models to remain competitive and meet the diverse demands of the modern shopper.

Kholoud Hussein 

In the rapidly evolving digital marketplace, e-commerce startups are emerging as formidable players, reshaping consumer habits and retail landscapes. Central to their success is the intricate web of logistics and supply chain management, which ensures that products move seamlessly from manufacturers to consumers' doorsteps. This blog delves into the pivotal role that efficient logistics and supply chain operations play in empowering e-commerce startups, bolstered by industry statistics and insights from business leaders.

The Backbone of E-Commerce: Logistics and Supply Chain

Logistics and supply chain management encompass the end-to-end coordination of goods, from production to delivery. For e-commerce startups, this involves warehousing, inventory management, order processing, and last-mile delivery. An optimized supply chain reduces operational costs and enhances customer satisfaction—a critical factor in the competitive online retail space.

As Frederick W. Smith, Founder and CEO of FedEx, aptly stated: "Logistics is the art of making sure the right thing is in the right place at the right time." 

Market Growth and Economic Impact

The e-commerce logistics sector has witnessed exponential growth in recent years. In 2022, the global e-commerce logistics market was valued at approximately $315.82 billion and is projected to reach $1,526.42 billion by 2030, growing at a compound annual growth rate (CAGR) of 22.3%. 

This surge is driven by increasing online shopping trends, technological advancements, and the expansion of e-commerce platforms into new markets. For startups, this presents both opportunities and challenges: the potential for rapid growth exists alongside the necessity for robust logistics solutions to meet escalating consumer demands.

Challenges Faced by E-Commerce Startups

Despite the promising landscape, e-commerce startups encounter several logistics and supply chain challenges:

1. Last-Mile Delivery: The final leg of delivery is often the most complex and costly, accounting for nearly 90% of total order fulfillment costs. 
2. Inventory Management: Balancing stock levels to meet demand without overburdening storage facilities requires precise forecasting and real-time tracking.
3. International Shipping: Navigating customs regulations, tariffs, and longer transit times can complicate cross-border e-commerce.
4. Technological Integration: Implementing advanced systems for tracking, automation, and data analytics demands significant investment and expertise.

Jeff Bezos, Founder of Amazon, highlighted the importance of innovation in overcoming constraints: "I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out." 

Strategies for Optimizing Logistics and Supply Chain

To navigate these challenges, e-commerce startups can adopt several strategies:

1. Leveraging Technology

Embracing technological solutions such as Artificial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT) devices can enhance supply chain visibility and efficiency. These tools enable predictive analytics for demand forecasting, automated inventory management, and real-time tracking of shipments.

As Dave Waters, a supply chain expert, noted:

"Artificial Intelligence will be rampant in the digital supply chain.

2. Building Strategic Partnerships

Collaborating with third-party logistics providers (3PLs) allows startups to scale operations without the overhead of managing warehousing and transportation in-house. These partnerships can offer flexible solutions tailored to the startup's growth stage and market demands.

3. Focusing on Sustainability

Consumers are increasingly prioritizing environmentally friendly practices. Implementing green logistics—such as optimizing delivery routes to reduce carbon emissions and adopting eco-friendly packaging—can enhance a brand's reputation and foster customer loyalty.

4. Enhancing Last-Mile Delivery

Innovations such as drone deliveries, local distribution centers, and crowd-sourced delivery models can help mitigate the complexities of last-mile logistics, ensuring faster and more cost-effective deliveries.

To conclude, in the dynamic realm of e-commerce, startups must recognize that efficient logistics and supply chain management are not mere operational components but foundational pillars of success. By leveraging technology, forming strategic partnerships, prioritizing sustainability, and innovating in last-mile delivery, e-commerce startups can navigate the complexities of the digital marketplace.

As the e-commerce logistics market continues its upward trajectory, startups equipped with agile and robust supply chain strategies will be poised to thrive, delivering value to consumers and carving out significant market share in the process.

Ghada Ismail

We know by heart how a business trip can feel like piecing together a complex puzzle. With flights to book, accommodations to arrange, meetings to schedule, and budgets to manage, it’s easy to get overwhelmed. Luckily, the digital age offers an arsenal of tools to simplify the process and keep you focused on your objectives. As the final episode in our series on how business travel fuels SME success, we’ve compiled a list of the most effective apps to help you plan, organize, and execute your trips seamlessly.

a. Booking and Accommodation Apps

• Hopper: This app predicts flight and hotel prices with impressive accuracy, helping you book at the best time to save money.
• Airbnb for Work: With options tailored to business travelers, this app offers unique accommodations that feel like home while providing workspace essentials.
• HotelTonight: Ideal for last-minute trips, this app finds discounted rates on same-day hotel bookings.

b. Travel Itinerary Management

• TripIt: Automatically consolidates all your travel details in one place—flights, hotels, car rentals, and more. It’s your go-to travel assistant.
• Google Travel: Syncs with your email to organize itineraries and offers recommendations for your destination.

c. Expense Tracking and Budgeting

• Expensify: Snap photos of receipts, track expenses, and generate detailed reports for reimbursement or record-keeping.
• Splitwise: Perfect for team travel, this app simplifies expense sharing and ensures everyone’s on the same page.

d. Communication and Productivity

• Zoom: Essential for virtual meetings if you need to connect with your team or clients while on the go.
• Slack: Stay in touch with your team, share files, and collaborate seamlessly, no matter where you are.
• Google Workspace: From Docs to Sheets, this suite ensures you can access and edit your work anytime.

e. Local Navigation and Transportation

• Google Maps: Offers reliable navigation, live traffic updates, and public transport options.
• Citymapper: A must-have for urban travel, this app provides detailed transit information and alternative routes.
• Uber: Dependable for rides in most major cities worldwide.

f. Language and Culture Assistance

• Duolingo: Brush up on essential phrases before arriving at your destination.
• Google Translate: Break language barriers by translating text, speech, and even images in real-time.
• Culture Trip: Get insights into local customs, attractions, and dining recommendations.

g. Health and Safety

• MySOS: A health app that helps you locate medical services quickly.
• Sitata: Provides travel safety alerts, identifies health risks, and offers tips to stay safe abroad.

One last word..

As we close this series, it’s clear that the right apps can turn business travel from a source of stress into an opportunity to excel. With tools that help you book flights, manage expenses, and navigate new destinations, you’re equipped to make the most of every trip. This final episode is a reminder that preparation and smart choices are key to success on the road.

As you gear up for your next trip, try incorporating some of these apps into your routine. They’ll not only make your travel experience smoother but also help you stay one step ahead, no matter where your business journey takes you.