Kholoud Hussein 

As Saudi Arabia seeks to diversify its economy and align with Vision 2030, the intersection of artificial intelligence (AI) and sustainability in the e-commerce sector is gaining significant attention. With e-commerce rapidly expanding, there’s an urgent need for businesses to adopt greener practices that minimize environmental impact. AI offers innovative solutions to help Saudi e-commerce companies achieve sustainability goals while enhancing operational efficiency.

One of the primary ways AI contributes to sustainability is through supply chain optimization. By analyzing vast amounts of data, AI can predict demand more accurately, reducing overproduction and waste. This lowers costs and minimizes excess inventory, which can lead to unsold products ending up in landfills. Companies can leverage AI-driven analytics to streamline logistics, ensuring that products are delivered efficiently and with a smaller carbon footprint.

Another significant aspect is energy management. AI technologies can monitor energy consumption in real time, identifying areas for improvement in warehouses and fulfillment centers. By optimizing energy usage, e-commerce businesses can significantly reduce their operational costs and environmental impact, aligning with the Kingdom’s commitment to sustainability.

Furthermore, AI can enhance customer engagement by promoting eco-friendly products and practices. Through personalized recommendations, e-commerce platforms can encourage consumers to choose sustainable options, such as products made from recycled materials or items with minimal packaging. This shift in consumer behavior not only fosters a culture of sustainability but also helps businesses cater to the growing demand for green products.

In conclusion, integrating AI into Saudi e-commerce operations offers a pathway to sustainability. By optimizing supply chains, managing energy consumption, and promoting eco-friendly products, e-commerce companies can contribute to a greener future while thriving in a competitive market. As Saudi Arabia continues its journey toward sustainability, AI will play a pivotal role in shaping a more responsible e-commerce landscape.

Ghada Ismail

In recent years, Saudi Arabia has emerged as a significant player in the global gaming and e-sports industry, a development driven by a blend of economic diversification strategies, youthful demographics, and robust governmental support. As part of its Vision 2030 initiative, the Kingdom aims to reduce its dependency on oil revenues by fostering sectors like entertainment and technology. The gaming industry, in particular, has become a focal point in this transformative agenda.

Demographics and Market Potential

Saudi Arabia boasts a youthful population, with over 60% of its citizens under the age of 30. This demographic is increasingly tech-savvy and engaged in digital entertainment, providing a fertile ground for the gaming industry to flourish. According to a report by Newzoo, the Middle East and North Africa (MENA) gaming market was valued at approximately $1 billion in 2022, with Saudi Arabia contributing significantly to this growth. The Kingdom is home to about 25 million gamers, which represents one of the highest per capita gaming rates globally.

Government Support and Investment

The Saudi government has recognized the economic potential of the gaming sector and has actively sought to promote its growth. The establishment of the Saudi E-sports Federation (SEF) in 2019 exemplifies this commitment. The SEF aims to cultivate a robust e-sports ecosystem, organizing competitions, and promoting local talent. Furthermore, the Kingdom has invested heavily in various gaming initiatives, including partnerships with leading global game developers and e-sports organizations.

In 2021, the Public Investment Fund (PIF) announced its plan to invest $3.3 billion in gaming companies over the following years. This investment aims to foster local talent and establish Saudi Arabia as a global hub for gaming development and e-sports events. Such strategic investments are set to bolster the industry’s infrastructure, including gaming studios, event venues, and training facilities.

Infrastructure Development

To facilitate the growth of the gaming sector, Saudi Arabia is also focusing on infrastructure development. The NEOM project, a futuristic city being built in the northwestern part of the Kingdom, is envisioned as a tech-driven urban environment that will include dedicated spaces for gaming and digital entertainment. This initiative reflects a broader trend of integrating gaming into lifestyle and culture, making it accessible and appealing to a wide audience.

Additionally, the Kingdom is hosting several gaming expos and conventions, such as the annual Gamers8 festival. This event has rapidly gained prominence, attracting international gamers, developers, and enthusiasts, creating a vibrant community and fostering knowledge exchange before being replaced by the E-sports World Cup.

In October 2023, Saudi Arabia announced the inaugural E-sports World Cup as the successor of Gamers8, the Saudi E-sports Federation's previously existing e-sports festival, set to take place in Riyadh. 

The 2024 E-sports World Cup (EWC) was the first edition of the E-sports World Cup, an annual international e-sports tournament series run by the E-sports World Cup Foundation (funded by Saudi Arabia's Public Investment Fund). The event took place in Riyadh, Saudi Arabia, from July 3 to August 25, 2024, and featured 23 events in 22 different video game titles. It had the largest combined prize pool in e-sports history at over US$60 million, encompassing individual tournament prize pools, rewards for teams that qualify for EWC events, most valuable player awards, and the Club Championship, a cross-game competition that aggregates the individual game results of all participating organizations (known as "clubs" to the EWC) to crown a Club Champion. 

Cultural Acceptance and Community Engagement

Historically, gaming in Saudi Arabia faced cultural scrutiny. However, a significant shift has occurred in recent years, with gaming increasingly being accepted as a legitimate form of entertainment and social engagement. The younger generation is leveraging online gaming platforms to connect with peers, fostering community and collaboration.

The government's focus on digital entertainment is also evident in its efforts to promote a balanced approach to gaming, emphasizing responsible play while encouraging competitive engagement. Initiatives aimed at educating parents and young players about healthy gaming habits are becoming more common, reflecting a broader societal acceptance of gaming as a mainstream activity.

Local Game Development

Beyond consumption, Saudi Arabia is positioning itself as a center for game development. Local companies are emerging, and many are gaining recognition for their innovative titles. For example, studios like Saeed Games and Mikado Games are developing games that resonate with local culture and values while appealing to a global audience. The government is providing support through funding and resources, allowing these companies to flourish and contribute to the Kingdom's economic diversification objectives.

Moreover, in 2023, Saudi Arabia launched its first game development accelerator program, aimed at nurturing budding developers and fostering creativity. This initiative reflects a growing awareness of the importance of local content creation in the gaming ecosystem, enhancing cultural representation and storytelling in games.

E-Sports: Competitive and Commercial Growth

The e-sports sector became a vital component of the gaming industry in Saudi Arabia, characterized by rapid growth in both participation and viewership. Major tournaments are attracting large audiences, both in-person and online, with platforms like Twitch and YouTube gaining traction among local gamers. 

The SEF has been instrumental in organizing high-profile events that draw international attention, such as the Gamers Without Borders charity tournament, which not only showcases local talent but also reinforces Saudi Arabia's commitment to global community engagement.

Moreover, the commercial potential of e-sports is increasingly recognized by brands and sponsors. Companies are leveraging the popularity of e-sports to connect with younger consumers, investing in sponsorship deals, advertising campaigns, and product placements. This trend reflects a broader shift in marketing strategies, as brands seek to engage with the digitally native youth demographic.

Challenges Ahead

Despite the promising landscape, the gaming and e-sports industry in Saudi Arabia faces several challenges. Regulatory hurdles, particularly around online gaming and content creation, remain a concern for developers and players alike. Navigating these regulations while fostering innovation will be crucial for the sector's sustained growth.

Furthermore, competition from established gaming markets, such as North America and Asia, presents a challenge for Saudi Arabia as it strives to carve out its niche. To compete effectively, local developers must prioritize quality, innovation, and user experience, while also building a supportive community for gamers and developers.

Wrapping it up, the gaming and e-sports industry in Saudi Arabia is on an upward trajectory, bolstered by demographic advantages, government support, and a rapidly evolving cultural landscape. As the Kingdom continues to invest in this sector, it is well-positioned to become a regional powerhouse in gaming and a key player on the global stage. The success of this endeavor will not only contribute to economic diversification but will also reshape the entertainment landscape, creating new opportunities for creativity and community engagement. As the gaming industry matures, it will be fascinating to observe how Saudi Arabia balances tradition with innovation in this digital age.

John Keppler

Just how hot will this summer get in the UAE? With record temperatures, like the 50.8°C recorded on 9 July in the small town of Sweihan, Al Ain, the heatwave appears unrelenting as other parts of the country also experience temperatures above 50°C. Temperatures in the UAE are normally higher in August and September than in July. 

As the population seeks shade and air-conditioned safety, spare a moment for farmers across the region, facing inhospitable temperatures with growing regularity.

It is a growing challenge - 2023 was the hottest year ever recorded globally. There were reports of climate-related disasters across the globe, leading to widespread crop failures and reduced yields due to water shortages and heat stress. 

Agriculture accounts for over a quarter of global greenhouse gas emissions and 70% of the drain on freshwater resources. In the context of agriculture, the climate crisis is a ticking time bomb.

The Middle East’s harsh arid climate only exacerbates the situation, increasing the region’s drain on freshwater resources in agricultural operations to 85%-90%. Current forecasts suggest the world will need to produce 50% more food by 2050 to feed a soaring population, much of it in arid countries. 

The challenge of regional food security is mounting. Around 85% of MENA’s fresh produce is imported - dependence on other regions to feed nations is clearly of concern in this region. The UAE alone imports $24 billion worth of food and agricultural products annually - nearly half the GCC’s total. With additional ‘food miles’ and environmental harm from transport and distribution - the incremental climate impact is significant.

Strengthening food security in the region is already a priority, driven by concerns over international conflicts, crop supply chain reliability, and climate change.  Extremely high temperatures in the UAE and the wider GCC continue to crystallize the region’s focus on the problem and identifying solutions to support farmers for whom the water and energy needed to produce the food their consumers need is an increasing financial burden..

Breaking the food-water-energy nexus is crucial. The region needs to make changes - for which innovative, sustainable technologies can be key.  Changing agricultural processes - some of which have been in place for decades, or even centuries - is also not a practical solution. 70% of farmers globally operate in low and middle-level technology sites. A typically low-margin business, this critical farming bloc rarely has the financial resources to invest in industrial-scale solutions and processes. Indoor and vertical farming, touted as options, are capital-intensive and require farmers to learn new techniques.

Farmers need workable options to mitigate risk and improve their economic and ecological sustainability without investing significant time and money. Farming is a sufficiently challenging profession. Access to drop-in, affordable, and cost-effective technology is a potential panacea the region desperately needs - when facing the climate and food security challenge.

The good news is that the region’s harsh desert climates are a perfect testing ground for innovative technologies. Withstanding the heat of the Arabian Desert is the perfect challenge for solutions with the potential to improve food security in the Gulf. As temperatures increase, this could extend to other global hot spots - a club growing larger every year.

In the AgTech industry, new solutions offering holistic approaches to climate adaptation, from greenhouse roof materials to newly cultivated rootstocks thriving in hot and salty environments, are on the increase.

One such solution, SecondSky by iyris, is showcased in its R&D Facility in Al Ain. SecondSky, offers a range of transparent, near-infra-red heat radiation-blocking agricultural covers. Winner of the 2023 Davidson Prize, SecondSky covers incorporate a nanoparticle additive that blocks the harmful effects of heat radiation. This innovative technology reduces energy usage by over 40% and water consumption by 30%, significantly minimizing environmental impact, improving crop yields, and extending the growing season for farmers.

A long road ahead remains for the agricultural industry. The rapidly warming planet has turned a MENA region challenge into an opportunity to solve a problem at the world’s front door. 

For the AgTech industry, smart combinations of scientific knowledge and innovation that begin with improving the Gulf’s food security - can be a driver to feed the world sustainably. 

John Keppler is the Executive Chair of iyris – a world-leading, sustainable AgriTech company

Kholoud Hussein 

As Saudi Arabia pivots toward a more sustainable future under Vision 2030, green tech startups are emerging as key players in the country’s economic and environmental transformation. These startups are addressing critical issues such as renewable energy, sustainable agriculture, and waste management, all while positioning Saudi Arabia as a hub for green innovation.

Here are some of the most promising green tech startups to watch:

1. Desert Technologies: Desert Technologies is pioneering solar energy solutions tailored to the region’s harsh desert climate. Specializing in the manufacturing and deployment of solar panels, they’re helping Saudi Arabia achieve its goal of generating 50% of its energy from renewable sources by 2030. Their projects extend across the Middle East and Africa, making them a key player in the region’s green energy shift.

2. Naqaa Solutions: Naqaa Solutions is revolutionizing waste management in Saudi Arabia by offering sustainable recycling and waste disposal services. Their innovative solutions focus on turning waste into energy and other byproducts, helping to reduce the Kingdom’s carbon footprint while promoting eco-friendly business practices.

3. SecondSky: Developed by iyris, SecondSky uses nanotechnology to create agricultural covers that block heat radiation, reducing farm energy and water consumption. This technology improves crop yields while extending growing seasons, making it essential for tackling food security challenges in the region’s extreme climate.

4. Greenzie: As electric vehicles (EVs) become more popular, Greenzie is developing the infrastructure needed to support EV adoption in Saudi Arabia. Their focus on EV charging stations and green mobility solutions aligns with the Kingdom’s efforts to reduce transportation emissions.

These startups are crucial to the success of Vision 2030, Saudi Arabia's long-term strategic plan to diversify the economy and reduce reliance on oil by investing in sustainable technologies. By developing renewable energy solutions, promoting waste management, and enhancing agricultural sustainability, these companies directly contribute to the Kingdom's ambitious goals of reducing carbon emissions and increasing environmental resilience. Their innovations not only address local challenges but also create scalable solutions that can be applied across the region, aligning with Saudi Arabia’s goal of becoming a leader in green technology.

The potential for other companies to enter the green tech space is significant. Saudi Arabia’s commitment to sustainability and the growing demand for eco-friendly solutions provide fertile ground for new entrants. Sectors like water conservation, energy efficiency, and sustainable construction are still emerging, offering opportunities for both local entrepreneurs and international companies to collaborate. As government support continues through initiatives like the Saudi Green Initiative and the expansion of venture capital for sustainability-focused startups, the stage is set for more innovative companies to join the scene and further accelerate the Kingdom’s green transformation.

Noha Gad

The process of launching a new startup is energized by ambition, creativity, and passion, however, these alone are not enough to achieve long-term success. In an increasingly competitive and volatile economic landscape, market research is crucial to building a robust foundation for your startup. It’s not just a step in the process, it’s the cornerstone upon which every strategic decision should be based. 

Market research is the process of examining customer behavior and trends in the economy to help a startup develop and fine-tune its business idea and strategy. It evaluates the viability of a new service or product through research conducted directly with potential customers.

You have to conduct in-depth market research before launching your startup or introducing new products to determine their appeal to potential customers. 

Extensive market research helps you:

•   Understand market demand. Detailed market research provides critical data to confirm whether there is sufficient demand for your product or service. Understanding this demand helps prevent the common mistake of overestimating the market size, which can lead to overproduction, excess inventory, and wasted resources.
• Identify and learn from competitors. Market research enables startups to identify competitors and understand their strengths, weaknesses, pricing strategies, and market positioning. This could help you differentiate your product and determine your unique value proposition.
•  Determine target audience: By determining your target demographic, you ensure that your product resonates with the right audience. Knowing the demographic specifics of your potential customers, such as age, income level, location, and buying habits, allows you to design your messaging and marketing efforts for maximum impact.
• Mitigate risks. Effective market research can significantly mitigate the risks of launching your startup by providing actionable insights, identifying economic downturns, and understanding regulatory hurdles. Market research empowers startups to avoid or minimize losses by anticipating market shifts and consumer behavior.
• Maximize revenues. Carrying out pricing research, whether through surveys, focus groups, or competitor analysis, helps startups establish a price that meets both customer expectations and business profitability goals.
• Gain investors' confidence. Startups with a clear understanding of their market always attract investors. Market research demonstrates that you have a data-driven approach, and reduces perceived risk for potential investors. Market research provides evidence that there is a demand for your product, that you’ve identified your target audience, and that you have a competitive edge.
• Adapt to market changes. Startups that continue to invest in market research are better equipped to adapt, pivot, or scale when necessary. Consumer preferences shift, new competitors emerge, and technological advances can change the landscape overnight. Thus, ongoing market research is necessary to stay agile in a dynamic market.

Finally, market research is an essential component of strategic decision-making as it allows startups to allocate resources efficiently, minimize risks, and maximize revenues. Investing in market research before launching your startup helps you hit the ground running with a clear sense of purpose, direction, and competitive advantage.

Ghada Ismail

The 24 Fintech recently concluded, the new annual event hosted by the Financial Sector Development Programme (FSDP), Saudi Central Bank (SAMA), Capital Market Authority (CMA), Insurance Authority (IA), and co-organized by Fintech Saudi and Tahaluf.

Ran from 3-5 September, the brand new event aims to become a world-class annual occasion that will elevate Riyadh’s global financial technology ambitions and demonstrate the Kingdom’s commitment to shaping the future of finance.

The inaugural edition of 24 Fintech featured four stages hosting three days of programming including keynotes, panel discussions, and industry announcements, with dedicated areas for investment and startups, technology, and academia. Across the various stages, experts probed a host of themes including governance, regulations, interoperability, investment, and reimagining the financial services landscape.

The Kingdom of Saudi Arabia set a list of objectives within its Vision of 2030, and one of them is to establish the Kingdom as a tech-driven global financial powerhouse, and Riyadh as an international fintech hub, led by confidence in the enormous potential of this sector to attract gigantic investments into the Kingdom from all over the globe.

Saudi Government’s contribution to developing the Fintech scene

In the past five years, the Kingdom of Saudi Arabia has already taken significant strides in developing fintech into a flourishing industry marked by rapid growth, integrating it as a key factor with an increasing contribution to Saudi’s national economy. 

In a report by the global consulting firm, Arthur D. Little (ADL), the author took us into a journey unfolding how the fintech scene elaborated in Saudi Arabia, it seems to be started with an initiative launched in April 2018 by the Saudi Arabian Monetary Authority (SAMA), in collaboration with the Saudi Capital Markets Authority (CMA), launching Fintech Saudi, an initiative aimed at strengthening KSA’s position as the leading fintech hub in the MENA (Middle East and North Africa) region. 

Since then, Fintech Saudi played a prominent role in boosting, providing support, and representing the fintech industry in the kingdom through initiatives such as its Accelerator program, Career Fair, Fintech Tour, and the Summer Sessions. 

From this time on, there has been an obvious increase in the number of fintechs operating in the kingdom. Over SAR 4 billion ($1 billion) has been pumped as investments into fintech companies in the Kingdom, and over 100,000 people have shown great interest in fintech-related events, training courses, and internships organized by the Fintech Saudi platform.

The kingdom's strategy to achieve its fintech vision

In May 2022, Saudi Arabia’s Vision 2030 approved its national fintech strategy marking the next stage of fintech development for Saudi Arabia, which was based on six main pillars: 

(1) developing KSA as the fintech hub for the Middle East, 

(2) creating a regulatory environment supportive of growth and innovation,

(3) funding for start-ups, 

(4) training and skill enhancement,

(5) accelerating support infrastructure, 

(6) driving local and international collaboration. 

This strategy set four objectives to achieve, as part of high hopes of becoming a global fintech leader in the MENA Region. Those four objectives are as follows:

Establish at least 525 fintech companies (versus 200 in 2023). 

Open 18,000 fintech job opportunities (versus around 5,400 in 2023). 

Account for SAR $13.3 billion in direct GDP (versus around $1 billion in 2023). 

Achieve SAR $12.2 billion in direct venture capital (VC) contributions (versus $1.4 billion in 2023).

The output then undeniably showed a range of areas, resulting in more convenient and accessible payment systems for consumers, new alternative financing platforms with services like debt crowdfunding, and service integration through aggregation platforms, providing a better user experience for the consumer. The number of fintech companies in KSA more than doubled in one year, from 89 in 2022 to ~200 in 2023.

In the digital payments realm, Saudi Arabia achieved a cutting-edge growth through establishing regulatory frameworks not only to regulate but also to nurture the licensing of payment companies and their service activities. Vision 2030 set an ambitious aim to beef up figures of non-cash transactions to 80% by 2030, from an 18% baseline in 2016. In fact, by 2021, non-cash payments were already 62% of all transactions, well ahead of the plan. Besides, multiple developments took place in parallel, including the emergence of digital wallets, local transfers, QR code payments, and SADAD system bill payments. 

As for the alternative financing sector, particularly “buy now, pay later” (BNPL) and debt crowdfunding, has emerged as the second-largest fintech subsector in Saudi Arabia, one thing that reflects a shift in consumer and business financing preferences, increasingly opting for flexible and accessible options instead of traditional banking models.

In a report issued by SAMA, the investor base in the KSA crowdfunding market has witnessed a significant surge, rising from 302 in 2019 to over 92,000 in 2022. These investors have collectively issued over 1,800 loans worth more than SAR 1.1 billion since 2019, with about SAR 770 million in loans disbursed in 2022 alone. Interest rates in this market have escalated from 10% in 2019 to over 16% in 2022, and approval rates experienced mixed performance, dropping to 48% in 2021 before recovering to 66% in 2022.

24 Fintech conference recommendations to improve the Fintech scene

Adding to the nation’s continuous efforts to embrace digital innovation, the 24 Fintech Conference underscored the importance of fostering partnerships between industry leaders, startups, and regulators to drive sustainable growth. The event not only showcased the dynamism of the fintech ecosystem but also reinforced Saudi Arabia's commitment to becoming a global fintech hub. 

the recommendations from Saudi Arabia's 24 Fintech Conference centered around several key themes aimed at advancing the fintech landscape in the region:

• Regulatory Support: Encourage the development of a more adaptive regulatory framework that supports innovation while ensuring consumer protection and financial stability. 
• Collaboration: Foster partnerships between fintech startups, traditional financial institutions, and government entities to drive innovation and share resources. 
• Investment in Talent: Promote educational initiatives and training programs to equip the workforce with the skills needed to thrive in the fintech sector. 
• Focus on Cybersecurity: Prioritize the implementation of robust cybersecurity measures to protect sensitive financial data and build consumer trust. 
• Financial Inclusion: Develop strategies that enhance access to financial services for underserved populations, leveraging technology to bridge gaps. 
• Sustainability Initiatives: Encourage fintech solutions that align with sustainability goals, promoting eco-friendly practices within the financial sector. 
• Innovation Hubs: Establish innovation labs and incubators to nurture emerging startups and facilitate knowledge exchange. 
• Global Engagement: Strengthen international collaborations to share best practices and attract foreign investment into the local fintech ecosystem.

In conclusion, the evolution of Saudi Arabia's fintech ecosystem represents a remarkable journey of innovation, ambition, and transformation. Over the past few years, the Kingdom has emerged as a key player in the global financial technology landscape, fueled by a combination of visionary leadership, significant investment, and a commitment to digital transformation. The government’s strategic initiatives, such as Vision 2030, have laid a solid foundation for fostering a vibrant fintech environment, attracting both local and international talent.

The rise of innovative startups and the collaboration between traditional financial institutions and tech firms have led to the development of diverse financial solutions that cater to the needs of a rapidly evolving consumer base. From digital payments and blockchain technology to robo-advisors and lending platforms, Saudi fintech is pushing boundaries and redefining the financial services sector.

However, as the ecosystem continues to grow, challenges remain, including regulatory hurdles, cybersecurity threats, and the need for greater financial literacy among consumers. Addressing these challenges will be crucial for sustaining momentum and ensuring that the benefits of fintech reach all segments of society.

Looking ahead, the potential for Saudi Arabia’s fintech sector is immense. By embracing innovation, fostering collaboration, and prioritizing inclusivity, the Kingdom can solidify its position as a leading fintech hub in the region. As we witness this dynamic evolution unfold, it is clear that the future of finance in Saudi Arabia is not only promising but also integral to the broader vision of economic diversification and modernization. With continued commitment and strategic action, the Saudi fintech ecosystem is poised to thrive, creating new opportunities for growth and empowerment in the years to come.

shaimaa Ibrahim

With a target to attract 150 million tourists annually by 2030, Saudi Arabia sets ambitious tourism goals under its Vision 2030 plan. These goals encourage investors to pump more investments into the tourism sector. As a result, there are good opportunities for local companies to provide quality experiences with high standards to enhance visitor experiences. One of these companies is Baheej Tourism Development Company.

Baheej stands at the forefront of innovative companies aiming to develop numerous destinations across the Kingdom of Saudi Arabia with a focus on sustainable development.

Baheej collaborates with major cities and developers in Saudi Arabia to create eco-friendly communities and improve destinations in the Kingdom through an integrated approach to destination management.

Baheej is the result of a cooperative relationship between ASFAR, the Saudi Tourism Investment Company, a fully owned subsidiary of the Public Investment Fund, and the Tamimi-AWN Alliance. Baheej seeks to leverage the flexibility and ambition of the private sector and support ASFAR in achieving its goals to develop exceptional destinations.

In this regard, Sharikat Mubasher met with Abdulrahman Al Bassam, Board Director of Baheej Tourism Development Company, to talk about the company’s services and goals to enhance the local tourism sector in line with the Kingdom’s Vision 2030, in addition to its future plans and investments. 

Al Bassam also discussed the role of new technologies in supporting digital tourism in the Kingdom to boost its leadership in the region and highlighted how startups can benefit from the astonishing growth that the Kingdom is witnessing in the number of tourists to provide innovative solutions and services.

Can you please share more about the investment agreements that were recently signed with the Royal Commission in Yanbu?

We are very excited about our first destination on the West Coast in partnership with the Royal Commission of Yanbu, we strongly believe in Yanbu as a tourism destination, and we want to bring this hidden gem to notoriety.

The hotel will be a 113 keys Lifestyle property operated by Cloud 7, it will feature an oversized rooftop pool club, a specialty restaurant and its design will be inspired by the different styles of Yanbu architecture, the Beach escape will be operated by Kaynuna, we launched this brand as a New groundbreaking beach club leisure offering born in Saudi, for Saudis, on the Red sea riviera.

The Tourism activation center will be phased out and it will open with a 5-star PADI diving center complete with the latest facilities for recreation and professional diving.

A fourth component will be announced in Q1 2025, stay tuned.

As a platinum sponsor of the “Future Hospitality Summit 2024” (FHS), what is the importance of such events in supporting the sector in the Kingdom?

Baheej recognizes the critical importance of such events in supporting the tourism sector in the Kingdom to display its commitment to the Kingdom’s Vision 2030 and sustainable tourism development. 

Such events not only provide a forum that allows us to highlight our strategic investments, and our innovative partnerships with entities like the RCY and Kerten Hospitality, but also serve as platforms for decision-makers, industry leaders, and stakeholders to converge and discuss opportunities, trends, and pressing issues within the hospitality and tourism sectors. 

Moreover, these summits act as networking and collaboration hubs with potential partners and sponsors. The exchange of knowledge, ideas, and practices during such events contribute immensely to the fostering of innovation and driving sustainable growth in the hospitality and tourism landscape.

Lastly, engaging in similar events, Baheej not only demonstrates leadership and expertise but also contributes to shaping the future of tourism in Saudi Arabia. These platforms play a crucial role in aligning industry efforts with Vision 2030’s objectives of promoting economic diversification, job creation, and cultural enrichment while ensuring environmentally sustainable practices and community engagement. 

How does the private sector support the Kingdom’s ambitious plan to achieve sustainable development in the tourism sector in line with Vision 2030?

By adhering to Green Building Standards, implementing eco-conscious practices, and promoting responsible tourism, we will ensure that our projects not only enhance visitor experiences but also safeguard the Kingdom's natural beauty and resources for generations to come.

Key initiatives will include coral reef conservation, marine life hatcheries, beach and dive site cleanups, public education, and a team of staff-members certified by the Green Fins program, with expertise in minimizing environmental impact while diving and snorkelling. These efforts highlight Baheej’s dedication to protecting marine ecosystems and promoting sustainable tourism. 

In your opinion, how will digital tourism contribute to improving travel experiences in the Kingdom?

Digital tourism will improve travel experiences in the Kingdom by seamlessly implementing tools such as AI (Artificial Intelligence) and data analytics to better predict travel trends and adjust prices. For example, AI can analyze social media platforms to spot new travel preferences and help optimize offerings accordingly. 

For Baheej, this means we can utilize AI to offer more personalized services. By tailoring travel itineraries and providing customized recommendations, we can provide our guests with unique and enjoyable experiences. Certain platforms already use AI to offer real-time help and suggestions, which makes travel smoother and more enjoyable.

AI also helps deal with routine tasks and provides support, allowing us to maintain service standards. This technology supports Saudi Arabia’s Vision 2030 by boosting economic growth and making the Kingdom a top tourist destination. 

As a subsidiary of ASFAR, what are the company’s future plans? And what are the expected investments?

Baheej, being the result of a joint venture between ASFAR and the Tamimi-AWN alliance, is mutually benefiting from ASFAR’s growing list of successful partnerships with government entities, highlighting the company’s commitment to mutually beneficial and strategic alliances with the private sector to enhance and promote the tourism industry within promising cities across Saudi Arabia to transform them into attractive destinations. ASFAR is committed to the continuous launch and implementation of new tourism projects, support services, and entertainment attractions. 

Baheej aims to tackle development of tourism destinations for the mid to upscale sector across the kingdom and we are actively working on securing additional projects. 

What are the promising opportunities for startups in the Saudi tourism sector?

According to the World Tourism Barometer report released in January 2024, the Kingdom topped the UN tourism’s ranking for the growth of international tourist arrivals in 2023 compared to 2019 among large destinations, achieving a 56 percent increase in international tourist arrivals. This remarkable recovery rate of 156 percent positions Saudi Arabia as a leader in tourism growth within the Middle East.

This creates fertile ground for startups to introduce innovative solutions and services. Startups can seize opportunities by offering unique experiences and hosting guests in distinctive accommodation models, catering to the evolving preferences of travelers. It is important for these offerings to cater to the mid to upscale market and have accessible price points. 

Furthermore, there is a demand for family-owned local businesses, such as B&B, agritourism, and small tour operators, to contribute to the growth of the tourism sector. By integrating sustainable practices and promoting responsible tourism.

Tourism spending in the Kingdom also set a record, topping SAR 100 billion for the first three quarters of 2023. This underscores the potential and the growing market that startups can tap into. 

Ghada Ismail

Saudi Arabia, long recognized for its oil-based economy, is undergoing a significant transformation process, looking up to diversifying its economic landscape with green and non-oil resources. A critical element to this change is the burgeoning sector of digital commerce, driven by both domestic innovation and global technological trends, in addition to the adoption of the soaring fintech solutions, which paved the way smoother for e-commerce platforms to widespread and freely operate across the Kingdom.

The Kingdom has witnessed a rapid increase in digital commerce over the past decade, as being a key contribution to the country’s broader Vision 2030 initiative, which aims to diversify the economy and reduce its dependence on oil revenues. Consequently, the Saudi government has pumped huge investments in developing the required digital infrastructure and technology to facilitate the expansion of e-commerce.

This was driven by the excessive adoption of smartphones and the internet among the Saudi population of almost all ages. According to recent reports, Saudi Arabia has one of the highest internet penetration rates in the region, with over 90% of the population having access to the internet. This high connectivity has naturally pushed consumers to engage in online shopping, transforming traditional retail habits.

Additionally, the rise of social media platforms as marketing tools has played a crucial role in the expansion of digital commerce. Platforms like Instagram, Snapchat, and Twitter have become powerful tools for businesses to reach consumers and for influencers to drive product sales leading a new wave of digital marketing and advertising strategies tailored to the Saudi market. The e-commerce market that once included businesses operating solely online, now extended to contain those that have a physical presence but also sell products or services online thanks to the means of digital marketing.

Opportunities in Digital Commerce

The expansion of digital commerce in Saudi Arabia offers multiple opportunities for businesses and young entrepreneurs for these reasons:

• The digital revolution taking the world by storm: the digital market offers a vast and relatively untapped consumer base, with a young and tech-savvy population, there is significant potential for growth in various e-commerce sectors, including fashion, electronics, and groceries.
• Saudi Arabia’s unique geography: The Kingdom’s strategic location acts as a gateway to other markets in the Middle East and North Africa (MENA) region, setting Saudi Arabia as a central hub for regional e-commerce, attracting international companies seeking to enter the MENA market.
• Supportive Government: The Saudi government has shown impressive commitment to supporting digital innovation, which also creates a favorable environment for startups and tech companies to be a part of the game. Initiatives such as the Saudi Arabian General Investment Authority (SAGIA) and various incubators and accelerators provide resources and support for new ventures, fostering a thriving entrepreneurial ecosystem.

Challenges Facing Digital Commerce

Despite the promising outlook, there are several challenges hindering the growth of digital commerce in Saudi Arabia that still need much effort to overcome:

• Regulatory environment: While the government has made impressive strides in creating a more favorable business climate, navigating the regulatory landscape can still be complex. Issues related to data protection, online payment security, and e-commerce regulations constantly need to be addressed to ensure a secure and efficient digital marketplace.
• Disparity between urban and rural areas: While major cities like Riyadh and Jeddah are seeing significant growth in digital commerce, rural areas may lag behind due to limited internet access and digital literacy. Bridging this gap is crucial for ensuring that the benefits of digital commerce are equitably distributed.
• Lack of trust in digital payment solutions: Despite the increasing digital engagement, some segments of the population remain cautious about online transactions. Building trust and promoting awareness about the safety and benefits of e-commerce is essential for encouraging broader adoption among doubters. 

It’s safe to say that despite these challenges, the Saudi e-commerce ecosystem is believed to continue to grow in the coming years. The government is supportive of the e-commerce sector and is taking steps to address some of the challenges, either by investing in logistics infrastructure or developing regulations that are more supportive of e-commerce businesses, leading to the elevation of the investment environment, making it healthier and more attractive, welcoming more players into the scene. 

Kholoud Hussein 

Saudi Arabia’s startup ecosystem has witnessed remarkable growth in recent years, driven by a combination of Vision 2030 initiatives, government-backed funding programs, and private sector enthusiasm. As the Kingdom shifts away from its reliance on oil and embraces economic diversification, foreign investment has emerged as a critical driver of this transformation. Foreign direct investment (FDI) is playing a pivotal role in fostering innovation, scaling startups, and integrating Saudi Arabia into the global technology and business landscape. However, with opportunities come challenges, as foreign investment brings with it both potential rewards and complexities that need to be navigated carefully.

The Role of Vision 2030 in Attracting Foreign Investment

At the heart of Saudi Arabia’s drive for innovation and entrepreneurship is Vision 2030, a comprehensive reform plan aimed at diversifying the country’s economy. Launched by Crown Prince Mohammed bin Salman, the plan seeks to turn Saudi Arabia into a global hub for investment, technology, and innovation. The Vision outlines a strong emphasis on foreign direct investment as a means of supporting economic growth, fostering innovation, and creating employment opportunities for Saudi citizens.

The Saudi Arabian General Investment Authority (SAGIA) has been actively promoting foreign investment, offering streamlined processes and incentives for international investors. Speaking at a conference in 2021, Ibrahim Al-Omar, Governor of SAGIA, emphasized the Kingdom’s commitment to creating a conducive environment for foreign investment: “We are making it easier for foreign investors to participate in the Saudi market. By simplifying regulations and offering incentives, we are creating a favorable environment for global companies to invest in sectors like technology, healthcare, and logistics.”

Foreign investment is seen as critical to scaling startups, providing them with the capital they need to grow, expand regionally, and compete on a global stage. According to a report by MAGNiTT, Saudi Arabia’s startup ecosystem attracted $580 million in venture capital funding in 2021, a 270% increase from the previous year, with a significant portion of that funding coming from international investors.

Opportunities Created by Foreign Investment

1. Access to Capital and Scaling Potential

One of the primary benefits of foreign investment is access to the capital needed to scale operations. Startups often require significant funding to develop new technologies, hire talent, and expand into new markets. Foreign investors, particularly venture capital firms and private equity funds, offer substantial capital that many Saudi startups cannot access domestically.

Jada Fund of Funds, a Saudi government initiative to support venture capital and private equity investment, has highlighted the importance of FDI in providing capital. Ibrahim Al-Suwayel, Jada’s Deputy Governor for Investment Development, stated: “Foreign investment provides startups with the financial resources necessary to scale rapidly and enter international markets. These investments also bring knowledge transfer, giving Saudi startups access to global expertise and best practices.”

The presence of foreign capital has already helped several Saudi startups achieve significant milestones. Jahez, a leading food delivery startup in Saudi Arabia, became one of the first Saudi tech startups to go public, with backing from local and international investors. Similarly, STC Pay, a digital payment platform, secured a $200 million investment from Western Union, marking a landmark deal that demonstrated the appetite for investing in Saudi tech startups.

1. Knowledge Transfer and Global Expertise

Foreign investors bring more than just capital; they bring global expertise, which is invaluable for Saudi startups seeking to improve their operations, adopt best practices, and innovate. Many foreign investors come with years of experience in managing and scaling startups in different regions, offering insights that can accelerate the growth of local businesses.

When Western Union invested in STC Pay, it not only provided funding but also facilitated the transfer of knowledge in digital financial services, helping the company improve its operations and scale effectively. In a statement following the deal, Western Union CEO Hikmet Ersek emphasized the importance of collaboration: “Our investment in STC Pay is part of a strategic partnership that goes beyond capital. We are committed to helping STC Pay leverage our expertise in digital financial services, enabling them to expand their offering and reach a broader audience.”

1. Integration into Global Supply Chains

Foreign investment also opens doors for Saudi startups to become part of global supply chains. As international companies invest in local startups, they often incorporate them into their broader operations, helping these businesses connect with new markets and gain international exposure.

For instance, startups in sectors like FinTech, e-commerce, and healthcare technology can benefit from foreign investors’ international networks, gaining access to suppliers, distributors, and customers across the globe. This can lead to partnerships with global corporations and provide a foundation for international expansion.

1. Improving Market Competitiveness

Foreign investment also has the potential to raise the overall competitiveness of the Saudi startup ecosystem. When foreign investors fund startups, they bring with them rigorous standards, high expectations, and industry benchmarks. This can push Saudi startups to enhance their competitiveness, both locally and globally. Moreover, foreign investors often push startups to adopt cutting-edge technology, modern management practices, and innovative business models, which can give them an edge in the market.

Challenges Associated with Foreign Investment

Despite the many opportunities, foreign investment in Saudi startups comes with several challenges. These include issues related to regulation, market competition, and the delicate balance between foreign and domestic interests.

1. Regulatory and Legal Barriers

While the Saudi government has taken significant steps to create a more investor-friendly environment, foreign investors still face regulatory challenges when entering the Saudi market. Complex bureaucracy, licensing issues, and sector-specific regulations can create hurdles for investors looking to establish partnerships with Saudi startups.

In a report by The World Bank, Saudi Arabia was ranked 62nd globally in the Ease of Doing Business 2020 index, a strong improvement from previous years. However, the report also highlighted areas where the regulatory environment could be streamlined, particularly in terms of contract enforcement, property registration, and cross-border trading.

1. Cultural and Market Differences

Foreign investors often encounter challenges related to cultural differences and the unique market dynamics of Saudi Arabia. For startups, these differences can sometimes lead to conflicting expectations or operational misalignments. Investors accustomed to Western markets may find it difficult to navigate the complexities of Saudi Arabia’s business culture, customer preferences, and regulatory environment.

For example, FinTech startups in Saudi Arabia need to navigate Sharia-compliant regulations, which may be unfamiliar to many foreign investors. Understanding the local market’s needs, particularly in terms of consumer behavior and compliance requirements, is essential for ensuring that foreign investment is both effective and sustainable.

1. Dilution of Local Ownership and Influence

Another concern often raised about foreign investment is the dilution of local ownership and the potential for foreign investors to dominate the strategic direction of Saudi startups. While international capital and expertise are valuable, some stakeholders worry that an over-reliance on foreign investment could reduce the influence of local entrepreneurs and diminish the Saudi identity of startups.

Saudi policymakers are keen to strike a balance between encouraging foreign investment and preserving local ownership. The government’s Saudization program and local content requirements are designed to ensure that Saudi citizens remain central to the country’s economic development. However, startups must navigate these policies carefully to maintain access to foreign investment while preserving local control.

1. Fierce Competition for Limited Resources

As foreign investors pour capital into Saudi startups, there is a growing concern that local companies may face increased competition for limited resources, including talent, real estate, and infrastructure. Foreign-backed startups often have more financial leverage, giving them the ability to outbid smaller, locally funded competitors for these critical resources.

This competition could widen the gap between well-funded, foreign-backed startups and smaller, local companies struggling to keep pace. Policymakers need to ensure that domestic startups, especially those in the early stages, are not left behind as foreign investment accelerates.

Striking a Balance: The Way Forward

The influx of foreign investment into Saudi Arabia’s startup ecosystem presents both significant opportunities and notable challenges. As the Kingdom continues to reform its business environment, it is essential to strike a balance between attracting international capital and protecting local interests.

Policymakers must ensure that regulatory frameworks remain flexible enough to encourage foreign investment while preserving Saudi culture and values in the business landscape. Additionally, promoting collaboration between foreign investors and local entrepreneurs can help maximize the benefits of FDI, leading to a more dynamic and globally competitive startup ecosystem.

In conclusion, foreign investment is key to unlocking the full potential of Saudi Arabia’s startup scene. By providing capital, expertise, and access to global markets, foreign investors can help Saudi startups scale and innovate on a global stage. However, as Saudi Arabia continues to grow its startup ecosystem, it must navigate the challenges associated with foreign investment to ensure that this growth is sustainable and inclusive, benefiting both local and international stakeholders.

Kholoud Hussein 

Saudi Arabia’s tech startup scene is experiencing rapid growth, driven by ambitious government initiatives, increasing venture capital investment, and a supportive entrepreneurial ecosystem. The Vision 2030 initiative, which seeks to diversify the Kingdom’s economy away from oil, has been a key catalyst in this transformation, positioning Saudi Arabia as a hub for artificial intelligence (AI), blockchain, and other cutting-edge technologies.

AI: Transforming Industries

AI is one of the most promising sectors within Saudi Arabia's tech startup ecosystem. With applications ranging from healthcare and financial services to retail and transportation, AI is revolutionizing how businesses operate and serve customers.

The Saudi Data and Artificial Intelligence Authority (SDAIA) was established to promote the development of AI in the Kingdom. This has led to increased government and private sector investment in AI startups, with a particular focus on machine learning, data analytics, and robotics. One standout is Mozn, a Saudi startup leveraging AI to provide data-driven solutions for sectors such as banking and cybersecurity. Mozn’s AI-powered tools help organizations automate decision-making processes, enhance efficiency, and reduce risk.

With AI increasingly integrated into both the public and private sectors, Saudi Arabia aims to be a global leader in AI by 2030. This commitment is reflected in the Global AI Summit held in Riyadh, which attracts international AI experts and investors, further solidifying Saudi Arabia’s growing influence in the AI space.

Blockchain: Enhancing Trust and Transparency

Blockchain technology is another area where Saudi startups are making strides. The Saudi Arabian Monetary Authority (SAMA) has been experimenting with blockchain for financial transactions, and several Saudi startups are exploring blockchain applications beyond finance, including supply chain management, real estate, and digital identity verification.

One notable startup in this space is Elevatus, which uses blockchain to secure digital credentials and facilitate talent recruitment. Blockchain’s inherent transparency and immutability are particularly useful for industries requiring high levels of trust and accuracy, and Saudi startups are tapping into this potential to create innovative solutions that can be scaled globally.

The Kingdom’s interest in blockchain is also evident in the National Blockchain Strategy, which aims to position Saudi Arabia as a leader in blockchain research, development, and deployment across various sectors.

Beyond: The Next Frontier for Saudi Startups

While AI and blockchain are leading the charge, other emerging technologies are also gaining traction in the Saudi startup ecosystem. FinTech, cloud computing, cybersecurity, and Internet of Things (IoT) are experiencing significant growth, with startups exploring innovative ways to address challenges in these areas.

Government-backed initiatives such as STC Pay and Tamara have set the stage for the rapid expansion of FinTech startups in the Kingdom. Meanwhile, cybersecurity is a critical concern as the nation digitizes its economy, and startups offering advanced security solutions are seeing increased demand.

In conclusion, Saudi Arabia’s tech startup scene is evolving rapidly, with AI, blockchain, and other advanced technologies at the forefront. Supported by government initiatives, increasing venture capital, and a growing pool of tech talent, Saudi startups are well-positioned to lead the region in innovation. As the Kingdom continues its journey toward economic diversification, its thriving tech ecosystem will play a pivotal role in shaping the future of the digital economy in the Middle East and beyond.

Kholoud Hussein 

Starting a business in Saudi Arabia offers vast opportunities, especially with the country’s rapid economic transformation under Vision 2030. As part of this plan, the Kingdom has made significant strides to encourage entrepreneurship, making it easier for startups to launch and grow. However, navigating the regulatory environment can still be challenging for startups, especially for those unfamiliar with local business practices and legal frameworks. Here’s what startups need to know about regulations in Saudi Arabia.

Business Registration and Legal Structures

The first step in launching a startup in Saudi Arabia is choosing the right legal structure. Options include a limited liability company (LLC), joint stock company (JSC), or a branch of a foreign company. LLCs are the most popular among startups, offering flexibility and limited liability to the shareholders.

The Ministry of Commerce and Investment (MCI) handles the registration process, and startups must ensure compliance with Saudi Arabia's Foreign Investment Law if they are foreign-owned. The Saudi Arabian General Investment Authority (SAGIA) oversees foreign investment and offers guidance to international startups on obtaining the necessary licenses and approvals.

Intellectual Property Protection

For startups focused on technology and innovation, intellectual property (IP) protection is crucial. Saudi Arabia has modernized its IP laws in recent years, and startups can register patents, trademarks, and copyrights with the Saudi Authority for Intellectual Property (SAIP). Having clear IP rights helps startups safeguard their innovations and avoid disputes.

Labor Laws and Saudization

Hiring employees in Saudi Arabia requires an understanding of local labor laws and regulations. The Kingdom has implemented the Nitaqat program, which mandates that companies employ a certain percentage of Saudi nationals, depending on the size and industry of the company. Compliance with Saudization is essential for startups to avoid penalties and remain eligible for certain government incentives.

Startups must also comply with Saudi Arabia’s Labor Law, which governs employee contracts, working hours, and benefits, ensuring that employees are treated fairly and their rights are protected.

Taxation and Zakat

Saudi Arabia has no personal income tax, but businesses, including startups, must pay corporate tax or Zakat, depending on ownership. Saudi-owned businesses are subject to Zakat, which is 2.5% of their assessable income. Foreign-owned businesses are subject to corporate income tax, which is set at 20%. Startups also need to account for Value Added Tax (VAT), currently set at 15%, applicable on most goods and services.

Compliance with Regulatory Authorities

Startups in sectors such as FinTech, e-commerce, or healthcare need to ensure they meet the specific requirements of their respective regulatory bodies. For instance, FinTech startups must comply with the Saudi Arabian Monetary Authority (SAMA) regulations, while e-commerce businesses need to follow E-commerce Law guidelines. It's important for startups to work closely with these regulatory bodies to stay compliant.

Finally, navigating Saudi Arabia’s regulatory environment may seem complex, but the Kingdom has made significant efforts to simplify business regulations and encourage entrepreneurship. By understanding the local legal structures, compliance requirements, and sector-specific regulations, startups can effectively launch and scale in one of the Middle East’s most promising markets. Whether you are a local entrepreneur or an international startup entering Saudi Arabia, staying informed about the regulatory environment is key to long-term success.

Kholoud Hussein 

Saudi Arabia, long known for its oil wealth, is undergoing a profound transformation, with sustainability at the core of its economic diversification efforts. As part of Vision 2030, the Kingdom aims to reduce its reliance on fossil fuels and invest in renewable energy and green technologies. A growing number of Saudi startups are emerging as leaders in the Green Tech revolution, driving innovation in sustainability, renewable energy, and eco-friendly solutions.

Government Support for Green Tech

The Saudi government has played a pivotal role in fostering this shift. Through Vision 2030, the Kingdom has committed to environmental sustainability, clean energy projects, and carbon reduction. Government initiatives such as the Saudi Green Initiative and the Middle East Green Initiative are setting ambitious goals to reduce carbon emissions and increase renewable energy production.

Startups are seizing this opportunity by innovating in areas like solar energy, waste management, sustainable agriculture, and electric mobility. These ventures are not only helping Saudi Arabia transition to a greener economy but are also contributing to the global fight against climate change.

Key Green Tech Startups in Saudi Arabia

Among the standout startups is Desert Technologies, a solar energy firm that is pioneering clean energy solutions across the Middle East and Africa. The company specializes in manufacturing and deploying solar panels, creating energy solutions that are tailored to the region’s harsh desert climate. Desert Technologies is helping Saudi Arabia reach its goal of producing 50% of its energy from renewable sources by 2030.

Another prominent player is Naqaa Solutions, a startup focused on waste management and recycling. By offering eco-friendly waste disposal and recycling services, Naqaa is helping businesses and municipalities reduce their environmental impact. Their innovative approach includes converting waste into energy and other useful byproducts, making waste management more efficient and sustainable.

Greenzie, another Saudi startup, is focusing on electric mobility solutions. With the growing emphasis on reducing emissions from transportation, Greenzie develops electric vehicle (EV) charging stations and works to promote the adoption of electric vehicles in the Kingdom. This aligns with Saudi Arabia’s plan to promote green transportation and reduce reliance on fossil fuels.

The Future of Green Tech in Saudi Arabia

Saudi startups are increasingly positioning themselves at the forefront of the Green Tech revolution, not just within the Kingdom, but on the global stage. With strong government backing, investor interest, and a growing demand for sustainable solutions, Saudi Arabia’s Green Tech sector is set for substantial growth in the coming years.

These startups are more than just pioneers of technology—they are catalysts for change in the Kingdom’s energy landscape. As Saudi Arabia transitions toward a greener future, these innovative companies are demonstrating how the country can balance economic growth with environmental responsibility, leading the way for the Green Tech revolution across the Middle East.

Kholoud Hussein 

The 24 Fintech Conference, held in Riyadh from September 3 to 5, marked a pivotal moment for Saudi Arabia's rapidly growing FinTech ecosystem. Gathering a wide array of stakeholders, including regulatory bodies, policymakers, investors, technology experts, and industry leaders from around the globe, the event underscored the nation's ambition to become a leader in the FinTech space.

Saudi Arabia’s Vision 2030, which seeks to diversify the economy away from oil dependence, has placed significant emphasis on digital transformation, and the FinTech sector is seen as a critical driver of that vision. The conference covered various topics, including FinTech regulation and governance, the integration of artificial intelligence (AI) and machine learning in financial operations, financial inclusion, and digital payment solutions. By the conclusion of the conference, several key recommendations emerged, which are set to shape the future of the FinTech industry in Saudi Arabia and beyond.

1. Enhancing FinTech Regulation and Governance: Building a Balanced Regulatory Framework

One of the core topics at the 24 Fintech Conference was the importance of a balanced regulatory framework to support FinTech innovation while ensuring consumer protection and financial stability. Regulatory bodies like the Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA) have already established a regulatory sandbox that allows startups to test their products in a controlled environment. However, the conference emphasized the need to further streamline regulations to keep pace with rapidly evolving financial technologies.

Key recommendations included:

• Creating flexible regulatory frameworks that can adapt to new technological advancements such as blockchain, AI, and machine learning without stifling innovation.
• Harmonizing regulations across the GCC region, allowing for seamless cross-border financial transactions and fostering a regional FinTech ecosystem.
• Promoting collaboration between regulators and industry players to ensure that rules are practical, forward-looking, and conducive to innovation.
• Strengthening cybersecurity standards to protect financial data, a critical aspect as digital financial services continue to expand.

A recurring theme was the necessity for regulatory clarity to encourage foreign investment. Investors and FinTech companies need assurance that they can operate within a predictable regulatory environment, which will also attract international partnerships and help Saudi Arabia position itself as a global FinTech hub.

2. Artificial Intelligence and Machine Learning in Financial Operations: The Future of Efficiency

AI and machine learning (ML) were central to many discussions, as these technologies are poised to transform financial operations. AI and ML have already started to play a significant role in areas like fraud detection, risk management, customer service (via chatbots), and personalized financial services.

Key recommendations on AI and ML integration included:

• Investment in AI talent development: Saudi Arabia needs to nurture a workforce skilled in AI and ML. This requires educational initiatives and partnerships between academic institutions and industry players to equip professionals with the skills needed for future financial services.
• Encouraging the use of AI in compliance: RegTech, or regulatory technology, powered by AI can help companies automate compliance procedures, reducing operational costs and ensuring adherence to regulations.
• Utilizing AI for financial inclusion: AI-driven platforms can analyze large datasets to offer personalized services to individuals who may have been excluded from traditional banking systems. This includes offering microloans, savings tools, and financial education to underserved communities.
• Maintaining a balance between automation and human oversight: While AI can enhance operational efficiency, it is critical to retain human oversight, particularly in decision-making processes involving high-risk financial transactions.

Policymakers were urged to support innovation in AI and ML by providing a regulatory environment that fosters experimentation while mitigating risks, especially concerning data privacy and security.

3. Financial Inclusion: Making Financial Services Accessible for All

Financial inclusion was a major theme throughout the 24 Fintech Conference, reflecting Saudi Arabia's commitment to expanding access to financial services for underbanked and unbanked populations. With over 70% of the Kingdom’s population having access to the internet, the potential for digital financial services is enormous. However, gaps remain in reaching marginalized communities and small businesses.

Key recommendations for financial inclusion included:

• Leveraging mobile banking and digital wallets: As smartphones become ubiquitous, mobile banking solutions and digital wallets are critical tools for bringing financial services to previously underserved populations. Expanding these services will require partnerships with telecommunications companies and financial institutions.
• Promoting microfinance solutions: Startups and financial institutions should develop more microfinance products to support small businesses and individual entrepreneurs, particularly women and rural populations. These solutions could help promote economic development in areas that traditional banking services have not reached.
• Enhancing financial literacy: Providing educational resources and tools to help individuals and small businesses better understand financial products and services will be essential. FinTech companies should collaborate with government agencies to deliver financial education programs through digital platforms.
• Encouraging Islamic FinTech solutions: Given the importance of Sharia-compliant financial products in the region, FinTech startups should develop innovative Islamic finance solutions that adhere to Sharia principles while leveraging modern technology.

4. Digital Payments and Cashless Economy: Reducing Cash Dependency

Another significant topic at the conference was the development of a cashless economy, an essential element of Saudi Arabia’s Vision 2030. With the rise of digital payments, both through mobile apps and contactless cards, the Kingdom is gradually moving toward a more digitized financial system.

Key recommendations to accelerate this transition included:

• Promoting the use of digital payments in everyday transactions: From public transport to government services, increasing the use of digital payments can further reduce reliance on cash. This will require incentives for consumers and businesses alike to adopt digital payment platforms.
• Supporting FinTech innovations in payments: Startups that specialize in payment solutions, such as peer-to-peer payments, cross-border transfers, and blockchain-based payment systems, should receive support in the form of funding, mentorship, and access to regulatory sandboxes.
• Boosting trust in digital platforms: Public awareness campaigns to ensure consumers feel confident in using digital financial services will be critical. This includes addressing concerns about data privacy and fraud, which can deter people from adopting digital payment methods.
• Expanding infrastructure for digital payments in rural areas: Ensuring that even the most remote areas of Saudi Arabia have access to reliable internet and mobile payment platforms will be key to achieving nationwide adoption of digital payments.

5. Fostering Innovation through Collaboration: Startups, Investors, and Corporations

The 24 Fintech Conference highlighted the importance of collaboration in driving innovation. Whether through partnerships between startups and established financial institutions, or between investors and regulators, cooperation is crucial for fostering an environment conducive to FinTech growth.

Key recommendations on fostering collaboration included:

• Creating public-private partnerships: Governments should actively partner with the private sector to promote FinTech innovation, provide infrastructure support, and ensure that regulations keep pace with technological advancements.
• Building innovation hubs and accelerators: Establishing FinTech hubs across the MENA region will enable startups to access resources, mentorship, and networking opportunities. These hubs should provide access to investors and regulatory sandboxes to help startups scale more quickly.
• Attracting international investors: By showcasing the potential of Saudi Arabia’s FinTech sector, the country can attract foreign direct investment (FDI). This will require creating favorable investment conditions, such as tax incentives, intellectual property protections, and clear exit strategies for investors.
• Encouraging cross-border collaborations: Given the regional nature of many financial challenges, fostering cross-border collaborations between startups and corporations in the GCC and broader MENA region is crucial. Harmonized regulations across borders would facilitate smoother operations for businesses looking to expand beyond Saudi Arabia.

6. Sustainability and Green Finance: The Future of Ethical Investment

In line with global trends, the conference also explored the role of sustainable finance and green FinTech solutions in Saudi Arabia’s future. As environmental, social, and governance (ESG) criteria become increasingly important to investors, the FinTech sector has a unique opportunity to create green financial products.

Key recommendations included:

• Promoting green financial products: FinTech startups should develop innovative solutions such as green bonds, carbon credit trading platforms, and sustainability-linked loans that align with Saudi Arabia’s growing interest in ESG investments.
• Encouraging sustainable investment platforms: By offering digital platforms that allow retail and institutional investors to invest in sustainable projects, FinTech companies can drive the growth of green finance.
• Incorporating ESG data into financial decision-making: AI and machine learning can help financial institutions better analyze ESG data and make more informed investment decisions based on sustainability metrics.

In conclusion, the 24 Fintech Conference provided invaluable insights into the future of FinTech in Saudi Arabia, highlighting the importance of regulation, technology, and collaboration. As Saudi Arabia continues to pursue its Vision 2030 goals, these recommendations will play a crucial role in shaping the Kingdom’s FinTech landscape. From enhancing regulation and fostering AI innovation to promoting financial inclusion and sustainability, the path forward is clear: Saudi Arabia is positioning itself as a leader in financial technology in the Middle East and beyond.

By implementing these recommendations, the country can unlock new opportunities for growth, attract foreign investment, and ensure that its FinTech ecosystem remains competitive on the global stage.

Kholoud Hussein 

As Saudi Arabia continues its march toward becoming a global hub for financial innovation, education and upskilling in the FinTech sector have emerged as critical areas of focus. Events like 24 Fintech, a premier gathering of industry leaders, innovators, and policymakers, provide a platform not just for showcasing the latest advancements in technology, but also for bridging the knowledge gap within the sector.

24 Fintech took place in Riyadh from 3 to 5 September and gathered regulatory bodies, policymakers, investors, technology experts, and industry leaders from around the world to discuss several topics, including, fintech regulation and governance, artificial intelligence and machine learning in financial operations, financial inclusion, and more.

At the heart of the discussions at 24 Fintech is the recognition that education and talent development are essential to sustaining the rapid growth of Saudi Arabia’s FinTech industry. With increasing demand for professionals skilled in areas such as blockchain, digital payments, and artificial intelligence (AI), the need for specialized training and educational initiatives is more urgent than ever.

The Growing Demand for FinTech Talent

The rise of FinTech in Saudi Arabia has been largely driven by government initiatives, regulatory reforms, and increasing consumer adoption of digital financial services. However, this growth has also exposed a significant talent shortage in the sector. Many companies are finding it difficult to hire professionals with the requisite knowledge in technology and finance. This talent gap has the potential to slow down innovation and impede the sector’s full potential.

24 Fintech addresses this challenge by emphasizing the importance of knowledge-sharing, education, and professional development. Through workshops, panel discussions, and keynote speeches, the event provides a platform for learning and collaboration. Industry leaders and academic experts discuss the latest trends and the skills needed to thrive in the evolving FinTech landscape, offering valuable insights for professionals, startups, and students alike.

Key Educational Takeaways from 24 Fintech

One of the most prominent themes from 24 Fintech was the need for continuous learning. With the rapid pace of technological advancement, professionals in the FinTech sector must continually update their skills to remain competitive. This includes understanding emerging technologies like blockchain, artificial intelligence, and machine learning, which are becoming increasingly integral to financial services.

The event featured workshops designed to equip participants with hands-on experience in these technologies, providing a practical understanding of how they can be applied to solve real-world financial challenges. These educational sessions are instrumental in bridging the gap between academic knowledge and industry requirements, ensuring that Saudi Arabia's workforce is well-prepared to meet the demands of a digital economy.

Additionally, collaborations between universities and the private sector were highlighted as a crucial step in building a strong educational foundation for the FinTech industry. Universities in Saudi Arabia are now offering specialized FinTech courses and degrees to address the growing need for qualified professionals. Partnerships between academia and industry ensure that the curriculum remains relevant, with input from businesses that understand the skills required for future success.

Government Initiatives Supporting FinTech Education

Saudi Arabia’s government has been proactive in fostering education and innovation within the FinTech sector. The launch of the Saudi FinTech Initiative, part of Vision 2030, focuses on providing a comprehensive framework for developing local talent and promoting innovation. This initiative includes collaborations with educational institutions to integrate FinTech into their curriculums, as well as incubator programs designed to support FinTech startups through mentorship, training, and funding.

Furthermore, the Saudi Arabian Monetary Authority (SAMA) has played a significant role in supporting FinTech education. Through its regulatory sandbox, SAMA provides startups with a platform to experiment and develop their products in a controlled environment, offering both learning opportunities and practical experience for young professionals entering the sector.

Closing the Knowledge Gap: Opportunities and Challenges

While significant progress has been made, closing the knowledge gap in Saudi Arabia’s FinTech sector remains a challenge. The rapid evolution of financial technologies requires an agile and adaptable workforce that is not only well-versed in technical skills but also understands the regulatory landscape and financial systems.

Events like 24 Fintech are crucial in addressing these challenges. By bringing together stakeholders from across the FinTech ecosystem—entrepreneurs, regulators, educators, and investors—such gatherings create opportunities for knowledge exchange and skill-building. The focus on continuous learning and professional development ensures that Saudi Arabia remains competitive in the global FinTech market.

However, to fully bridge the knowledge gap, a multi-faceted approach is needed. This includes investing in education at all levels, from primary education that encourages digital literacy to advanced degrees in financial technology. Additionally, industry leaders must continue to collaborate with educational institutions to ensure that the workforce is equipped with the skills necessary for future growth.

Finally, 24 Fintech has shown that education and professional development are key pillars of the FinTech sector's success in Saudi Arabia. By fostering a culture of continuous learning, promoting collaboration between academia and industry, and supporting government initiatives aimed at talent development, Saudi Arabia is well on its way to bridging the knowledge gap. As the demand for FinTech talent continues to grow, these efforts will be instrumental in positioning the Kingdom as a leader in financial innovation within the region and beyond.

Kholoud Hussein 

Saudi Arabia is witnessing a rapid transformation of its financial landscape, largely driven by the government’s commitment to nurturing the FinTech sector. In line with its Vision 2030 agenda, Saudi Arabia has launched several initiatives aimed at accelerating FinTech growth, promoting innovation, and creating a robust, competitive financial ecosystem.

Vision 2030 and the FinTech Strategy

At the heart of this transformation is Saudi Arabia’s Vision 2030, which aims to diversify the economy and reduce dependence on oil revenues. One of its key pillars is the development of the financial sector, where FinTech plays a pivotal role. The government recognizes the potential of FinTech to enhance financial inclusion, improve efficiency, and foster innovation across various sectors.

The Financial Sector Development Program (FSDP), launched under Vision 2030, aims to create an enabling environment for FinTech innovation. This includes modernizing regulations, facilitating partnerships between traditional financial institutions and startups, and supporting the digitalization of financial services. The goal is to increase the share of cashless transactions to 70% by 2030, a move that will be largely powered by FinTech.

Regulatory Sandboxes and SAMA’s Role

One of the most significant government initiatives is the creation of regulatory sandboxes. Launched by the Saudi Arabian Monetary Authority (SAMA) in 2018, the sandbox allows FinTech startups to test their products and services in a controlled environment, without the full burden of regulatory compliance. This initiative has been crucial in fostering innovation by providing a space for startups to experiment and refine their offerings.

SAMA, in collaboration with the Capital Market Authority (CMA), has also introduced new frameworks to regulate crowdfunding, digital payments, and peer-to-peer lending, ensuring that the regulatory environment keeps pace with technological advancements. These efforts not only provide a clear regulatory path for FinTech firms but also build trust with investors and consumers.

Supporting Financial Inclusion and Entrepreneurship

Another key aspect of Saudi Arabia’s FinTech growth is the government’s focus on financial inclusion. The introduction of digital payment platforms, mobile wallets, and microfinance solutions has brought financial services to underserved populations, particularly in rural areas. Initiatives such as the Saudi FinTech Initiative further support the sector by providing mentorship, funding, and infrastructure to early-stage startups.

In conclusion, through strategic initiatives, Saudi Arabia’s government is laying the groundwork for a thriving FinTech ecosystem. By fostering innovation, enhancing financial inclusion, and creating a forward-thinking regulatory framework, the government is accelerating the growth of FinTech, positioning the country as a leading financial hub in the Middle East.

Kholoud Hussein 

In recent years, mobile payments have surged in popularity in Saudi Arabia, transforming consumer behavior and reshaping the financial landscape. This shift, fueled by technological advancements and changing consumer preferences, reflects a broader trend toward digitalization in the Kingdom's economy. Here’s a brief look at how mobile payments are influencing consumer behavior in Saudi Arabia.

1. Enhanced Convenience and Speed

One of the most significant impacts of mobile payments is the convenience they offer. Consumers in Saudi Arabia are increasingly embracing mobile payment apps for their ease of use and speed. With just a few taps on their smartphones, users can complete transactions instantly, bypassing the need for cash or physical credit cards. This seamless experience is driving higher adoption rates and changing the way people conduct everyday transactions.

2. Increased Digital Engagement

The rise of mobile payments has also led to increased digital engagement among consumers. As mobile payment apps often come integrated with loyalty programs, discounts, and promotional offers, users are more likely to engage with brands through these platforms. This digital engagement not only enhances the consumer experience but also provides businesses with valuable data to tailor their marketing strategies.

3. Shift Toward Cashless Transactions

Mobile payments are contributing to a gradual shift away from cash transactions. Saudi consumers are increasingly using their smartphones for a range of activities, from purchasing groceries to paying for services. This trend aligns with the Saudi Vision 2030 initiative to reduce reliance on cash and promote a cashless economy. As more merchants accept mobile payments, the trend toward cashless transactions is expected to continue.

4. Boost to E-Commerce

The growth of mobile payments is closely linked to the expansion of e-commerce in Saudi Arabia. With the convenience of mobile payments, consumers are more inclined to shop online, driving growth in the digital retail sector. Mobile payment solutions streamline the checkout process, reducing cart abandonment rates and encouraging more frequent online purchases.

5. Enhanced Financial Inclusion

Mobile payments are playing a crucial role in enhancing financial inclusion in Saudi Arabia. By providing an accessible and user-friendly alternative to traditional banking, mobile payment solutions are reaching underserved populations and individuals without access to conventional financial services. This inclusivity supports broader economic participation and financial