Ghada Ismail

Lean Technologies has become one of the standout players in MENA’s fintech space, building the infrastructure that helps businesses offer modern financial services. With its latest funding round, the company is entering a new chapter, focused on expanding its reach, deepening partnerships, and shaping the region’s Open Finance future.

In this interview, Mehdi Tazi, Chief Operating Officer at Lean, shares with Sharikat Mubasher what the company’s latest milestone means for its next phase, how it’s supporting everyone from early-stage startups to large enterprises, and why MENA’s fintech landscape is capturing global attention.

1. Lean’s recent $67.5 million Series B is one of the largest fintech raises in the region. What does this milestone represent for the company’s next phase?

It marks a significant step forward in our journey. We’ve spent the last few years building critical infrastructure, earning trust, and laying the groundwork for Open Finance in the region. With this raise, we’re accelerating product development, expanding regional coverage, and helping more businesses embed modern financial services into their platforms. We’re here to lead this next chapter, responsibly and at scale.

When we started Lean 5 years ago, we were struck by the lack of fintech penetration in the Middle East and inspired by the immense potential to create a unified fintech infrastructure platform that can reduce barriers to entry. We aspired to make financial data sharing seamless and accessible, while enabling instant, low-cost payments. Today, we have connected over one million user accounts and processed more than $2 billion in transactions and thanks to the support of forward-thinking regulators in the UAE and KSA, the region is leading the way with open banking standards that unlock amazing new possibilities.

2. What makes fintech in the MENA region an attractive investment opportunity for leading investors like Sequoia and General Catalyst, and what does their involvement say about the region’s venture capital landscape?

Fintech in MENA is evolving quickly and the fundamentals are stronger than ever. In Saudi Arabia, the number of licensed fintechs has grown from 89 in 2022 to over 200 by mid-2024. In the UAE, fintech accounted for nearly 40% of all venture funding in H1 2024, making it the region’s most heavily backed sector. That kind of year-on-year growth reflects a market that’s no longer catching up, it’s building from the ground up.

At the same time, the underlying infrastructure hasn’t kept pace. Demand for modern financial experiences is rising, but legacy systems are still holding many businesses back. That’s where Lean comes in, and why investors like Sequoia, General Catalyst, and Bain Capital are here.

Their involvement isn’t just a vote of confidence in Lean. It signals that global investors see MENA as one of the few regions where foundational fintech infrastructure is still being built, where companies can define the rails, not just build on top of them. That’s the opportunity, and that’s the bet.

3. How does Lean’s API platform reduce barriers to entry for fintech founders across MENA?

Historically, founders in MENA had to navigate months of bank integrations and fragmented infrastructure before launching a product. Lean removes that friction. With one secure API, businesses can access real-time bank payments and financial data without compromising on compliance or user trust.

Careem moved from costly card payments to seamless A2A bank transfers using our infrastructure. DAMAC sped up its payment processing by 24x, reducing wait times from hours to minutes to improve its collections process.

We are not just providing APIs. We are removing technical and regulatory barriers so that fintech teams can build meaningful solutions that help people manage money more efficiently and transparently.

4. How do you adapt your offering for large enterprises versus emerging fintechs?

At Lean, we start with the same powerful platform, but we shape how we deliver it around the needs of each customer.

Emerging fintechs are often looking to move quickly and experiment. They value speed, flexibility and a partner who can help them build fast. Larger enterprises, on the other hand, look for depth. They need systems that are secure, scalable and able to work smoothly within their existing set-up.

What makes the real difference is not just the technology, but the people behind it. We do not hand over a product and step away. Our teams work closely with our customers, helping them integrate the platform, adapt workflows, and get real value from day one. We bring the care and attention you would expect from a trusted partner, not just a provider.

This hands-on approach means our customers never feel left on their own. Whether it is a fintech launching something new or a major enterprise rolling out across regions, we are right there with them, making sure the solution fits, performs and grows with them.

Everything we do is shaped by one belief - when our customers succeed, so do we.

5. You’ve now processed over $2 billion in transactions through your platform. What operational strengths or strategic decisions helped you achieve that scale?

From day one, we focused on building payment infrastructure that solves real business problems; instant settlement, lower fees, and improved reliability, making payments viable at scale. While some businesses accepted bank payments, they faced slow, non-instant payments and spent hours on reconciliation, limiting their ability to scale. Others needed instant payment options but lacked a reliable alternative to costly card payments.

Our first priority was to digitize and streamline this flow, replacing legacy systems with an account-to-account payment experience that is instant, reliable and cost-effective. This was not just about improving efficiency. It was about creating a genuine alternative to legacy payment systems. At the same time, we invested in reliability, compliance and transparency so our clients could scale on a platform built for long-term trust. This focus on practical value and operational resilience is what enabled us to reach more than $2 billion in transaction volume. More importantly, it’s what allows our clients to scale with confidence.

6. With more than a million accounts connected via secure APIs, what does this tell us about user trust and the adoption of financial connectivity in MENA?

It tells us that users are ready, as long as the experience is built the right way.

Connecting a financial account is a high-trust action. We have spent years refining our consent flows, strengthening our infrastructure, and working closely with regulators to make that process as seamless, secure and transparent as possible.

The result is clear. More than one million accounts have been connected through Lean. That shows people are open to trying new financial experiences when the value is obvious and the infrastructure feels trustworthy.

We are also seeing strong engagement with our clients. For example, more than 50% of users on platforms like Sarwa, the all-in-one investment platform, choose to pay via Lean. That level of share of wallet shows not just adoption, but real trust and stickiness.

And it goes beyond convenience. For some of our clients, Lean is helping to drive genuine financial inclusion. Many expats arrive in the region with little or no credit history. Because we can help underwrite them using bank data, they can now access financial services they might have struggled to get before. We have seen this impact within our own team, where access to financial services has transformed individual lives. It is not just meaningful, it is personal, and it matters.

7. Lean supports over 300 companies across sectors, from ride-hailing to e-commerce and real estate. How are you tailoring your offering to serve such a broad client base?

We take a customer-first approach. Our strength lies in understanding the pain points and building infrastructure that solves them. Whether it is a digital wallet, a ride-hailing app or a property developer, we begin by focusing on the core problems rather than promoting product features.

Let's take Tabby as an example. They needed a better way to approve users with limited credit history. Credit bureau data wasn’t cutting it, and manual uploads were too slow. With Lean, they connected directly to customers’ bank data, improving approval rates by 8.9%, unlocking 50% more high-risk users, and reducing default risk by 4x.

e& money was dealing with high card fees and poor payment conversion. We helped them move to instant A2A payments, eliminating the card layer, saving $800,000 a year, and doubling customer return rates.

Tawuniya’s pain was operational. Claims were delayed due to manual verification and misrouted disbursements. We automated the process end-to-end, cut disbursement time by 50%, and helped them reach a 94.8% transaction success rate.

These outcomes are the result of targeted infrastructure solving real business problems in a scalable, measurable way.

8. What advice would you offer to startup teams building products in heavily regulated spaces like financial infrastructure?

Regulation is not an obstacle. It is part of the product. In a space like ours, trust and compliance are fundamental. My advice is to build for scale from day one. That means getting the right controls in place early, staying close to regulators, and understanding the operational implications of every decision you make. Moving fast is important, but moving responsibly is what keeps you in the game long-term.

9. What strategic priorities will define Lean’s next phase of growth?

We’re focused on three things: expanding our payments and data infrastructure, deepening adoption across key sectors, and supporting the market as Open Finance comes into shape.

The opportunity is significant. In MENA alone, the Arab Monetary Fund projects Open Finance to grow from $1.65 billion in 2022 to nearly $12 billion by 2027. As countries like the UAE and KSA move from policy to implementation, businesses are looking for partners who can help them adapt and build.

We’ve spent the past five years doing exactly that: building trusted infrastructure, integrating with banks, and working closely with regulators. Today, we’re helping over 300 enterprise clients like Careem, DAMAC, and e& money go live with real-time payments, account verification, and secure data access.

With the growing momentum, we’re well positioned to lead this next phase and scale impact across the region.

Kholoud Hussein 

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

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

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

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

Renewables & Green Tech: Saving Costs, Creating Markets

Saudi Arabia has taken global lead steps:

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

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

Startups at the Vanguard of Climate Action

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

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

Sectoral Breadth and Technological Depth

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

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

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

A Culture of Mission-Driven Entrepreneurship

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

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

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

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

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

From National Challenge to Global Export Potential

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

For example:

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

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

Enablers: Policy Frameworks & Ecosystem Support

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

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

Challenges Ahead

Despite momentum, barriers remain:

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

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

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

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

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

The Road Ahead: Scaling the Climate-Tech Frontier

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

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

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

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

Ghada Ismail

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

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

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

What Is Burn Rate, Really?

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

There are two versions you should know:

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

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

Why Burn Rate Matters More Than You Think

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

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

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

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

How to Calculate Your Runway

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

Here’s a quick example:

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

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

How to Tell If Your Burn Rate Is Too High

Here are a few warning signs:

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

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

How to Keep Burn Rate Under Control

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

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

What This Means for Startups in Saudi Arabia

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

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

Wrapping things up…

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

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

Gary Ng, CEO of viAct

“A 14-Second Warning That Changed Everything”  

It was a regular day at a high-rise construction project in Abu Dhabi when one of our AI-enabled video analytics systems triggered an alert. A worker had unknowingly stepped into an active lifting zone, while a tower crane was mid-operation.

From the moment of unauthorized entry to the moment the AI-generated alert reached the site supervisor’s device, exactly 14 seconds had passed. 

That was just enough time for the supervisor to intervene and redirect the worker. No injuries occurred, no operations were halted. But this situation could’ve gone drastically wrong.

That near-miss incident stayed with me. Not because the system worked, but because it showed me what was truly at stake: human lives, reputational trust, and operational continuity. 

In that moment, I realized something essential. What we’re building at viAct is not just about AI that sees — it’s about AI that listens.

Understanding Before Automating

The construction world today requires safety systems that can move beyond the hassles of manual inspections, paper logs, and delayed incident reporting. While many industries have leapt toward automation, the human dynamics of construction make it impossible to fully automate decision-making.

This is where I believe AI has a different role to play in construction safety, not in replacing oversight, but in improving understanding. AI doesn’t simply monitor for violations — it learns context over time. 

For instance, a site in Hong Kong received repeated alerts from a certain scaffold section. On investigation using video analytics, it turned out workers were stepping into the zone frequently due to poor tool placement. 

At another AI-enabled monitoring site in Singapore, over 92% of PPE non-compliance cases were accurately detected and automatically tagged in the centralised dashboard, reducing manual inspection time by nearly 40%. 

Humanizing the Tech That Protects Frontline Workers

We often talk about “data-driven” environments, but for workplace safety to evolve in construction, we need “people-driven” tech. Our team has always believed that contextual intelligence is what sets safety AI apart . 

“It is the ability to understand the why, not just report the what.”

For example, during a highway bridge construction project in Malaysia, a video analytics system identified heat-induced fatigue patterns by observing workers’ posture slouching and time spent in high-temperature zones. This insight led the contractor to reschedule their shifts during peak afternoon hours, reducing incidents of heat stress by over 65% in just two weeks.

These repeated instances across global sites are reminders that technology performs best when it pays attention to real-world workflows, fatigue patterns, environmental risks, and frontline feedback.

And that’s exactly what we’ve done at viAct. We’ve utilised mechanisms to listen to workers’ concerns, integrate feedback loops from EHS teams, and fine-tune the 100+ AI modules in response to ground-level realities. 

Rethinking Oversight: From Surveillance to Collaboration

In a traditional model for workplace safety, effective management often meant periodic walkthroughs, post-incident audits, or checklist-based compliance. But these protocols, while necessary, often fall short of the agility required on fast-paced construction sites.

What we offer instead is a system that interprets behavior in real time, not just capturing violations but identifying risk patterns before they escalate. At a large metro tunnel site in Singapore, for instance, AI video analytics flagged recurring unsafe access near a confined work chamber. 

The AI’s interpretation wasn’t just visual — it recognized a repeat behavior and suggested re-zoning. Following the alert, the EHS team made sure to redefine the access protocols and recorded a 70% drop in zone violations within three weeks.

This is how contextual intelligence works. It’s not surveillance. It’s collaborative safety, where AI supports, not supervises.

The Way Forward in 2025

Construction is evolving. And so is its way of managing workplace safety. The push for smarter, safer, and more efficient job sites is no longer optional — it’s essential. Yet the transformation doesn’t lie in abandoning human oversight, but in enhancing it with AI-driven technology.

The question isn’t “How can we control every risk?”

It’s “How can we understand risks better before they escalate?” At viAct, we believe that the answer starts with listening.

And we’re here to keep listening — to workers, to safety officers, to supervisors, and to every voice that keeps the foundation strong.

Kholoud Hussein 

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

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

Defining a Down Round

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

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

Why Do Down Rounds Happen?

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

1. Missed Growth Targets

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

2. Market Conditions

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

3. Overvaluation in Previous Rounds

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

4. Cash Flow or Profitability Concerns

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

What Are the Impacts of a Down Round?

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

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

Can a Company Recover From a Down Round?

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

Recovery depends on how the company responds:

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

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

Conclusion: A Tough Pill, Not a Death Sentence

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

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

Noha Gad

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

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

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

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

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

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

Key challenges facing Saudi startups in navigating global markets

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

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

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

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

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

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

Kholoud Hussein 

In a rapidly digitizing world, the demand for powerful, secure, and sustainable AI infrastructure is no longer optional—it’s essential. OmniOps, founded in 2024, has quickly emerged as a national pioneer in this space, becoming Saudi Arabia’s first dedicated AI infrastructure technologies provider. The company has recently secured SAR 30 million in funding to accelerate the deployment of sovereign AI inference clusters and strengthen its R&D capabilities. Positioned at the intersection of innovation, compliance, and sustainability, OmniOps is tackling some of the most pressing challenges faced by enterprises and government institutions in their AI transformation journeys.

What sets OmniOps apart is its commitment to building local, production-grade infrastructure tailored to the Kingdom’s regulatory and operational needs. With a client base already including Saudia Airlines and CNTXT, and strategic partnerships with global tech giants like NVIDIA and Google Cloud, OmniOps is well on its way to becoming a cornerstone of Saudi Arabia’s Vision 2030 and its National Strategy for Data and AI. In an exclusive interview with Sharikat Mubasher, Mohammed Altassan, CEO of OmniOps, shares how the company is balancing high performance with sustainability, navigating regulatory frameworks, addressing talent gaps, and charting a course for regional and international growth.

OmniOps recently closed a funding round of SAR 30 million. What are the core goals behind this raise, and how do you plan to allocate the investment to scale your operations?

This funding round is focused on accelerating the deployment of our sovereign AI inference clusters across the Kingdom and investing in our next-generation AI inference software layer. The capital will be allocated toward expanding our infrastructure footprint, enhancing our R&D capabilities, particularly around sustainable AI Infrastructure architecture, and scaling our engineering team to support growing demand across sectors such as aviation, finance, and government. 

We're also investing in client enablement and partnerships to ensure our customers can unlock real-world value from our infrastructure.

Founded in 2024 as Saudi Arabia’s first AI infrastructure technologies provider, what market gap did you identify that led to the creation of OmniOps?

We identified a critical gap in sovereign AI infrastructure. While demand for AI solutions is rising across Saudi Arabia, enterprises lacked access to high-performance, locally hosted infrastructure that complied with data residency requirements. Most available options were either international clouds with limited regional presence or generic infrastructure not optimized for AI workloads. To add to that, public and private institutions are adopting artificial intelligence at a phenomenal rate which is creating a heavy load on their infrastructure and resources. 

OmniOps was created to address this, offering Saudi-built, production-grade infrastructure optimized for AI inference and compliant with local regulations.

Your focus on building sustainable AI infrastructure is a key differentiator. How do your solutions balance energy efficiency with computing power at scale?

We’ve developed proprietary GPU overbooking methods that enable us to achieve a 50% reduction in power consumption while boosting inference efficiency by up to 14 times. This means we can offer clients the computational performance they need for AI workloads, without the environmental and operational costs traditionally associated with AI Infrastructure. Our clusters are designed to be both high-performance and energy-conscious, enabling sustainable AI development at scale.

One of your strategic pillars is developing sovereign AI inference clusters that meet local compliance standards. How do you ensure regulatory alignment without compromising on technical performance?

Compliance is integrated into our infrastructure by design from day one. We help clients store their data on-premises (on-prem), in the cloud, or in a hybrid cloud set up as is needed for compliance and best performance. At the same time, we’ve built a software and hardware stack that delivers enterprise-grade performance, with no trade-off on speed or scalability. Our regulatory alignment is not a limitation—it’s a strength that allows us to serve sectors with high compliance demands, such as healthcare, finance, and aviation.

You’ve partnered with global tech leaders such as NVIDIA, Google Cloud, and IBM. How do these partnerships enhance your technical capabilities and support your long-term product vision?

These companies provide the critical infrastructure that powers most essential sectors globally. OmniOps builds upon and collaborates with their foundational technologies to create our specialized solutions. This integration allows us to optimize our platform for the latest advancements, ensuring our Inference Optimizer delivers maximum performance gains. By working closely with these technology leaders, we enhance Saudi organizations' access to world-class AI infrastructure while maintaining compatibility with global standards.

With clients like Saudia Airlines and CNTXT already on board, which additional industries are you targeting? How do you tailor your infrastructure solutions to meet the specific demands of different sectors?

Our approach begins with understanding each sector's unique challenges, regulatory requirements, and AI maturity. For example, in education, we are designing an infrastructure that supports personalized learning environments that can handle the increasing adoption of AI, while ensuring student data privacy and security. This sector-specific approach allows Saudi organizations to implement AI that directly addresses their unique operational needs while maximizing return on infrastructure investments.

How does OmniOps’ strategy align with Saudi Arabia’s Vision 2030 and the National Strategy for Data and AI, particularly regarding digital sovereignty and local content development?

OmniOps is directly aligned with Vision 2030’s goals of building a digital economy rooted in local innovation. Our sovereign AI infrastructure advances the Kingdom’s digital sovereignty by ensuring that critical data and models remain within national borders. We also contribute to local content development by hiring and training Saudi talent, partnering with local universities, and investing in R&D initiatives that position the Kingdom as a leader in AI infrastructure.

What are the main challenges you face in building AI infrastructure in the Kingdom, and how are you addressing those hurdles—whether technical, regulatory, or talent-related?

One of the main challenges is the availability of specialized AI infrastructure talent, which is why we invest heavily in training and upskilling. We also navigate evolving regulatory frameworks by working closely with relevant authorities to ensure full compliance while advocating for innovation-friendly policies. On the technical side, the biggest hurdle is delivering global-level performance locally, and our R&D focus ensures we meet and exceed those standards.

Are there plans for regional or global expansion? If so, which markets are you prioritizing, and what’s your approach to entering them?

OmniOps is actively forming strategic partnerships with leading players in the AI infrastructure space. Several of these partners are exploring Saudi Arabia as a key market and view OmniOps as their conduit for entry and expansion in the region. In parallel, these relationships are creating reciprocal opportunities for OmniOps to establish a presence in the U.S. market through their networks and infrastructure.

We are also targeting the European market, with a strategic entry point through our Moroccan office. Our approach focuses on identifying and aligning with the right partners to accelerate market access and regional growth across the continent. 

Finally, what is your long-term vision for OmniOps? How do you plan to maintain leadership in the evolving landscape of AI infrastructure across Saudi Arabia and beyond?

Our vision is to become the foundational layer of AI infrastructure across the region—empowering enterprises and governments to build and scale intelligent applications securely and sustainably. We’ll maintain leadership by continuing to innovate in energy-efficient AI infrastructure, expanding our AI inferencing, and growing a strong ecosystem of local talent and strategic partners. Ultimately, we aim to help shape a future where Saudi Arabia is not just a consumer of AI but a global contributor to its development.

In conclusion, OmniOps isn’t just building AI infrastructure—it’s laying the groundwork for Saudi Arabia’s digital sovereignty, global competitiveness, and future leadership in artificial intelligence. By marrying technical performance with regulatory compliance, and innovation with sustainability, the company is aligning itself perfectly with the core tenets of Vision 2030. Its sector-specific solutions, talent development initiatives, and plans for global expansion demonstrate a comprehensive strategy to not only support but also shape the AI landscape in the Kingdom and beyond.

As OmniOps looks ahead, its long-term vision is bold yet grounded: to become the foundational layer of intelligent systems across the region. In doing so, the company is helping reposition Saudi Arabia not merely as a consumer of cutting-edge AI technologies, but as a global contributor and innovator in this critical domain.

Kholoud Hussein 

In a world racing toward decarbonization and sustainable development, Saudi Arabia is turning to a rarely explored, yet abundantly promising, source of prosperity: its seas. The term "blue economy" refers to the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs, while preserving the health of ocean ecosystems. It includes industries such as coastal tourism, fisheries, maritime transport, renewable ocean energy, and marine biotechnology—all of which hold significant potential for coastal nations like Saudi Arabia. 

Stretching over 1,800 kilometers of Red Sea and Arabian Gulf coastlines, and encompassing 186,000 square kilometers of coastal ecosystems, the Kingdom is now making the "blue economy" a centerpiece of its Vision 2030 strategy. This sector, encompassing everything from fisheries and tourism to marine biotechnology and renewable energy, is seen not only as a path to diversify the economy, but also as a way to balance growth with environmental stewardship.

Saudi Arabia 2030 Vision

On April 28, 2024, Mohammed bin Salman launched Saudi Arabia’s national strategy for the blue economy, with a clear mandate: "Through this strategy, the Kingdom positions the blue economy as a fundamental pillar of its diversified economy, aiming to increase its contribution to GDP, create thousands of job opportunities, and preserve marine ecosystems."

This vision builds upon Saudi Arabia’s existing environmental and economic transformation plans. It calls for a tenfold increase in marine protected areas (from 3% to 30%), a 50% share of renewable energy, and the creation of over 210,000 new jobs in coastal and maritime sectors by 2030. The government expects this initiative to contribute more than SAR 85 billion to the national economy within the same timeframe.

By the Numbers: Coastal Wealth

• 1,800+ km of Red Sea and Arabian Gulf coastline.
• 186,000 km² of coastal and marine territory.
• Fourth-largest coral reef system in the world.
• Over 6,300 tons of fish from Jazan Province annually (20% of national production).
• Target: SAR 85 billion GDP contribution by 2030.
• Projected: 210,000 jobs created in maritime industries.

These numbers only scratch the surface of Saudi Arabia’s marine potential. The government has also emphasized port infrastructure upgrades, desalination investments, and marine innovation hubs along both coasts. In 2023, the Saudi Ports Authority (Mawani) announced over SAR 17 billion (USD 4.5 billion) in planned investments to expand and modernize key maritime hubs such as Jeddah Islamic Port and King Abdulaziz Port. Jeddah Islamic Port alone handled more than 5 million TEUs (twenty-foot equivalent units) that year, securing its rank among the world’s busiest ports. On the desalination front, Saudi Arabia produces nearly 20% of the world’s total desalinated water, with the Ras Al-Khair plant alone delivering over 1 million cubic meters daily. Innovative projects by ENOWA in NEOM are pioneering zero-brine discharge systems to turn waste into usable industrial materials.

Meanwhile, institutions like KAUST’s Red Sea Research Center are spearheading marine biodiversity studies, coral health monitoring, and ocean energy pilot programs. The Kingdom has earmarked SAR 1 billion to advance marine research and blue economy innovation, laying the foundation for a thriving, future-ready maritime ecosystem. Major expansion plans are already underway at key ports such as Jeddah Islamic Port and King Abdulaziz Port, with billions in investments aimed at enhancing maritime logistics and boosting trade efficiency. At the same time, advancements in desalination technology are helping meet rising water demands sustainably, especially in arid coastal areas. 

Innovation hubs like the King Abdullah University of Science and Technology (KAUST) are working on blue economy R&D, including marine biotech, sustainable aquaculture, and ocean energy applications, intending to position the Kingdom as a global leader in marine sciences. These infrastructure- and research-driven initiatives form the backbone of an ecosystem designed to support long-term growth in the blue economy.

Red Sea Projects: Sustainability Meets Luxury

One of the flagship initiatives under the blue economy umbrella is the Red Sea Global (RSG) project, which integrates eco-tourism with conservation science. RSG CEO John Pagano remarked: "At full capacity, we’re going to contribute SR33 billion annually to the Saudi economy and create 120,000 jobs. That’s not just tourism—it’s infrastructure, services, and long-term skills development."

The RSG project includes the world’s largest coral propagation facility, a coastal reef protection program, and the planting of over 50 million mangrove trees by 2030 to combat erosion and support marine biodiversity.

Tech, Conservation, and Commerce

Saudi Arabia’s blue economy strategy is unique in its blending of marine conservation with high-tech industry. Raed Al-Basseet, Chief Environment and Sustainability Officer at RSG, said, "Enhancing the environment isn’t a cost; it leads to real return on investment." The Kingdom is using AI to monitor coral bleaching, deploying drones for marine enforcement, and testing floating solar panel systems that could help power coastal towns and marine infrastructure.

The integration of technology is also being explored in marine biotechnology, underwater robotics, and aquaculture innovation zones. These developments not only bring investment, but create knowledge-based jobs that support a modern, resilient economy.

Untapped Markets: Fisheries, Aquaculture, Logistics

Beyond tourism and conservation, sectors like fisheries and maritime logistics offer huge potential. Jazan, for instance, is being transformed into a Special Economic Zone with a focus on marine industries. The area currently produces 6,300 tons of fish annually—a figure that could double with enhanced infrastructure and cold-chain logistics.

Private entrepreneurs are beginning to notice. Ahmed Al-Binali, founder of a seafood export startup in Dammam, noted, "With new regulations, funding, and international demand, we’re finally seeing real momentum. Our exports have grown 40% in two years."

Additionally, NEOM’s Oxagon project aims to be the world’s largest floating industrial hub, merging shipping, marine data centers, and green hydrogen production, placing Saudi Arabia at the center of blue-tech innovation.

Investment Gaps and Opportunities

Despite the promise, private investment in the blue economy remains limited. Marine R&D, deep-sea exploration, and sustainable aquaculture are still underfunded. Policymakers and business leaders are urging more venture capital and institutional investors to support the emerging sector.

In the words of Fahd Al-Rasheed, advisor at the Royal Commission for Riyadh City: "The Red Sea and Gulf aren’t just tourist assets—they’re economic accelerators. But we need to scale innovation faster, especially in aquatech, logistics, and ocean clean energy."

Public-private partnerships and blended finance are seen as keys to unlocking this capital. Government incentives are being tailored to attract entrepreneurs and corporates into eco-marine projects, especially in desalination efficiency, underwater robotics, and clean shipping.

The private sector in Saudi Arabia is beginning to show signs of engagement, with marine-focused startups gaining traction. As of 2024, over 40 startups in sectors like aquatech, maritime logistics, and marine AI monitoring have emerged under Monsha’at’s innovation programs. Initiatives such as the Saudi Blue Investment Fund are working to offer seed capital and technical support to founders focused on sustainable marine solutions. However, there is still a wide funding gap, especially at Series A and B stages, where investors remain cautious due to regulatory uncertainties and limited exit opportunities.

Additionally, venture-building platforms and incubators such as KAUST’s Innovation Center and King Abdulaziz City for Science and Technology (KACST) are playing a crucial role in nurturing marine-focused enterprises. These institutions have helped commercialize over 25 marine-related technologies in the past five years, yet experts argue that a more coordinated policy and funding pipeline is essential to scale these innovations regionally and globally. With more targeted investment from sovereign wealth vehicles like the Public Investment Fund (PIF), the Kingdom can unlock significant value while leading the MENA region in blue economy entrepreneurship.

Regional and Global Collaboration

To fully harness the blue economy, Saudi Arabia is also looking outward. Collaboration with Egypt, Jordan, Oman, and the UAE on coral reef protection, pollution monitoring, and sustainable shipping corridors is underway. These efforts are critical, as the Red Sea remains one of the world’s most biodiverse and geopolitically significant marine zones.

Moreover, Saudi Arabia recently signed memoranda with France and Norway to share expertise on offshore aquaculture, marine research, and green port management.

Challenges Ahead

Despite ambitious goals, challenges remain:

• Climate Risk: Coral bleaching, overfishing, and water pollution pose ongoing threats.
• Governance Complexity: Balancing development and environmental regulation across agencies and jurisdictions is no small task.
• Skills Gap: The maritime sector needs specialized engineers, marine biologists, and blue economy strategists—fields that remain underdeveloped in Saudi educational institutions.

However, with rapid policy reform, an open investment climate, and a generation of tech-savvy entrepreneurs, these challenges are surmountable.

Finally, as the world seeks new economic models rooted in sustainability, Saudi Arabia’s blue economy strategy offers a compelling blueprint. It aligns economic growth with ecological preservation, empowers youth with new types of jobs, and opens the Kingdom’s shores to global collaboration and innovation.

By turning its coasts into catalysts for economic transformation, Saudi Arabia is not just diversifying its economy—it’s pioneering a new frontier where prosperity flows with the tide.

Ghada Ismail

When you're in the initial stages of launching a startup—raising money, acquiring users, building product-market fit—thinking about an exit seems too early. But experienced founders know that from the very start, you build not just for expansion, but for a potential finish line.

An exit strategy is your strategy for how you and your investors will ultimately cash out of the business. It determines how stakeholders will harvest the value they've helped create, either by selling the firm, merging with another company, going public, or even closing down.

Let's break down what an exit strategy is, why it's important, and what alternatives startups usually consider.

Why Startups Require Exit Strategies

An exit strategy is not quitting; it's preparing for the transition that is needed. No business is ever a startup forever. Whether your company succeeds, pivots, or tanks, every business trajectory will eventually reach a fork in the road.

what comes next is why it is so essential to have an exit strategy:

•Investor Expectations: Venture capitalists invest with an expectation of return, usually through exits like acquisitions or IPOs.

• Strategic Planning: Having a potential endpoint in mind informs your business decisions along the way.

• Founder Goals: Some founders envision a legacy company, whereas others plan for exit after 5-7 years. Both are doable but necessitate different strategies.

• Risk Management: Exit planning prepares for market downturns or challenges internally before they get out of hand.

Common Types of Startup Exit Strategies

1. Acquisition

An acquisition happens when a larger company buys your startup, either for your product, your team, or your users, or all three.

An acquisition provides liquidity and can be quicker than an IPO. Ex: Facebook buying Instagram.

It is best for startups with differentiated tech, strong growth, or strategic value to larger players.

2. Initial Public Offering (IPO)

Going public via an exchange listing is considered the "final" exit. It has the added benefits of raising funds, increasing visibility, and providing liquidity for investors.

IPOs are rare because they are expensive, heavily regulated, and suitable only for established startups with strong financials.

IPOs are best for high-growth startups in large markets, especially ones with global ambitions.

3. Merger

A merger combines your startup with a different company, typically to share resources, grow faster, or be able to compete more effectively.

It may allow startups to exist in challenging markets or expand better. It works best for startups that desire to benefit from a different firm's capabilities.

4. Management Buyout (MBO)

In an MBO, your firm is purchased by internal parties, generally high-level employees or current executives.

It keeps the company's culture intact and compensates the core team from within.

MBOs are ideal for startups with devoted leadership teams and no external investors anticipating enormous returns.

5. Shutting Down 

Not all exits are glamorous. Sometimes the wisest thing to do is an orderly shut-down; returning outstanding capital, paying off obligations, and closing neatly.

Why it's important: Dying startups can also exit in style, preserving founder reputations and investor relationships.

They work best for startups that can't scale or pivot successfully.

How to Select the Best Exit Strategy?

There is no one-size-fits-all path. The ideal exit strategy will depend on your intentions, your investors' timelines, your market, and your business model.

Below are some questions to guide you:

• Are you creating to sell or to remain?

• What degree of control do you desire over your company long-term?

• How long do you want to remain involved after exit?

• Are your investors requiring a timeline or a specific type of return?

Talking about it upfront—both internally and to investors—can get everyone aligned and eliminate conflict down the road.

When Should You Start Thinking About Exits?

Ideally, before you raise your first Riyal. Exit planning should be on your to-do list from the day you start raising capital or even conceiving your growth strategy.

Even though you don't have an established deadline or guaranteed result, having a direction where you're heading keeps decisions regarding hiring, product development, and investor relations aligned.

The earlier you begin contemplating your exit, the more on your terms you'll be in control of it.

Wrapping things up…

An exit strategy does not mean you're going to exit, but planning in advance. If your desire is to be acquired, merge with a strategic business partner, or develop a sustainable business that can continue without you, knowing how your journey may shift impacts how you build today.

Startups are volatile. But having clarity around your long-term vision gives you and your stakeholders the direction you need to make better decisions, grow on purpose, and exit on your terms.

Noha Gad

The COVID-19 pandemic disrupted the global economy and transformed the way businesses operate. Companies, especially startups, seized the shift to adopting remote work to cut costs, access global talent, and establish agile and location-independent businesses. Before 2020, remote work was a niche concept for many industries, but lockdowns and social distancing measures proved that teams could remain productive outside traditional offices. This realization, combined with advancements in digital tools, accelerated the rise of remote startups.

A recent report by Robert Half, the global human resource consulting firm, revealed that fully remote jobs have increased from 10% in early 2023 to 15% by the end of 2024. Other studies showed that remote workers are 13-35% more productive than their in-office counterparts.

In 2025, remote startups are no longer an exception; they are becoming the norm. Remote work democratized entrepreneurship and enabled talent from around the world to collaborate and innovate without the constraints of geography. As a result, the entrepreneurship landscape witnessed a significant surge in remote startups that are leaner, more diverse, and often more resilient than their traditional counterparts. 

What are remote startups?

A remote startup is a company that operates entirely or primarily without a physical office. All team members, including founders, engineers, designers, marketers, and support staff, work from different locations, often across time zones. This type of startup relies on digital tools to collaborate, communicate, and build its products or services. 

There are three types of remote startups: fully remote, partially remote, and distributed startups. In fully remote startups, the entire company operates from home, without any physical office space. Meanwhile, partially remote startups require some team members to be based in a physical office while other members work remotely. 

The distributed startup is a company that is physically based in one location, but employees are working remotely from all over the world.

Benefits of remote work

Remote work mode offers multiple advantages for both startups and employees. For startups, remote work provides several benefits, such as:

• Access to a global talent pool. Startups can hire specialists from around the world without worrying about geographic boundaries. This diversity fuels creativity and provides insights into international markets.
• Cost saving. Remote work allows startups to reduce expenses related to office space, utilities, commuting, and relocation, and redirect them to R&D, marketing, or scaling operations.
• Flexibility and enhanced productivity. Flexible schedules let employees work during their peak hours, whether they’re night owls or early risers. 
• Enhanced employee satisfaction. Remote work improves work-life balance, reducing burnout and turnover.

Remote work helps employees increase productivity and stay focused on their tasks. Flexible work hours can also contribute to reducing absenteeism, enabling employees to organize their days as they see fit. With less time spent commuting, employees have more time for themselves and can improve the quality of life by optimizing time for exercise, cooking, or simply resting.

Challenges facing remote startups 

Although remote work offers incredible flexibility and global opportunities, it also comes with unique challenges that can make or break a startup. Maintaining company culture is one of the biggest hurdles facing startups as they find difficulty in fostering team cohesion and shared values without physical interaction. Communication challenges, such as misaligned time zones and reliance on written communication, can lead to misunderstandings. Thus, startups must invest in tools and protocols to bridge these gaps.

Another key challenge is managing performance. Startups may find difficulties in monitoring and evaluating remote employee productivity. To address this challenge, they need to set clear KPIs, feedback mechanisms, and project management systems.

Moreover, remote teams increase exposure to security risks and cyber threats. A single unsecured Wi-Fi network could compromise sensitive data, making robust cybersecurity protocols non-negotiable. 

Finally, the rise of remote startups marks a fundamental shift in how businesses are built and operated. As they become the new norm, remote startups are reshaping the entrepreneurial landscape, making it more inclusive, agile, and resilient for the future. This type of startup unlocks global talent, reduces costs, and fosters greater flexibility and productivity, while breaking down geographic barriers.

Kholoud Hussein

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

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

Micro-SaaS in a Nutshell

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

Why Now? Why in Saudi Arabia and the GCC?

1. Digital Maturity Is Accelerating

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

2. Low-Code and No-Code Accessibility

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

3. Cultural Shift Toward Freelancing & Remote Work

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

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

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

Localized Micro-SaaS Ideas That Work

Here are a few regionally relevant micro-SaaS concepts:

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

Real Barriers 

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

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

From Local Niche to Global Reach

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

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

Micro-SaaS as a Path to Freedom

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

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

Noha Gad

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ghada Ismail

What if you could read a customer’s mind before they even said a word? Not long ago, startups had to rely on slow focus groups and basic surveys to guess what customers liked. Today, they can track eye movements, monitor reactions through smartwatches and other tools to quickly see what grabs attention, whether it’s a webpage, a TikTok video, or a price tag. This instant insight into customer behavior is powering a growing market called the ‘Neuromarketing’ that is now worth $1.56 billion and expected to more than double by 2034. The most successful new companies are using neuroscience-based strategies to trigger automatic customer responses. By understanding how brains make decisions, you can design marketing that converts at much higher rates.

This article reveals how to ethically apply neuromarketing principles and FOMO (Fear of Missing Out) to accelerate your startup's growth.

The Neuroscience Behind Impulse Marketing

If neuromarketing provides the brain scan, fear of missing out supplies the adrenaline. Around six in ten consumers admit they have made a “reactive” purchase within 24 hours of feeling FOMO, and the share spikes to 69 percent among millennials. Psychologists trace the phenomenon to the brain’s reward network: when we think other people are seizing an opportunity we might lose, dopamine surges, nudging us toward instant action. Social platforms have weaponized that impulse with endless highlight reels; savvy startups are learning to hard-wire it into product design, price promotions, and even push notifications.

From lab coats to laptops: the new neuromarketing stack

The classic toolkit pairs methods that read the body with AI that predicts behavior. Functional MRI offers millimeter-level maps of activity deep inside the brain, while EEG headsets (EEG headsets are wearable devices that measure electrical activity in the brain using a technology called electroencephalography) translate surface waves into real-time attention scores. Eye-tracking cameras pinpoint the exact pixel that attracts or repels a viewer; galvanic-skin sensors detect a micro-bead of sweat signaling arousal. What once required a research hospital now runs in a browser or on a fitness band, putting neuroscience within reach of a five-person SaaS team. 

Where neuromarketing meets FOMO

The power comes when these tools are used to calibrate scarcity messages, social-proof counters, and countdown timers with scientific precision. Imagine an e-commerce startup testing two product pages. In version A, the headline reads “Only 3 left in stock”; in version B, it says “In stock”. An AI model trained on thousands of eye-tracking records predicts that the first phrasing holds gaze 1.8 seconds longer.  The founders push version A live and watch conversions climb. They have literally measured FOMO in the brain.

FOMO in Action: How Fear of Missing Out Drives Spending Habits
Fear of missing out isn’t just a feeling; it’s reshaping consumer behavior, especially among younger generations. From impulse buys to overspending on experiences, FOMO is a strong psychological trigger that’s influencing the way people make financial decisions. Here are some key statistics that highlight just how widespread and powerful its impact has become:

• 60% of consumers say they’ve made a purchase because of FOMO, often within 24 hours.
• A OnePoll study found that 69% of Americans have experienced FOMO, with social media as a major driver.
• According to the American Psychological Association, 56% of U.S. adults felt FOMO during the COVID-19 pandemic—again, fueled by social media.
• An Experian report showed that 69% of millennials overspend to keep up with peers and avoid FOMO.
• A TD Ameritrade survey revealed that 73% of millennials had spent money they didn’t have on experiences to avoid feeling left out.

Neuromarketing: Your Secret Weapon for Higher Conversions

Neuromarketing gives you an unfair advantage by revealing what actually drives decisions . Here's how to use it:

1. Emotion Beats Reason Every Time

• People justify purchases with logic but buy based on feelings
• Use language that triggers excitement, nostalgia or belonging
• Example: "Join thousands of happy customers" works better than "Our product has these features"

2. The Magic of Storytelling

• Our brains are wired to remember stories 22x better than facts
• Frame your product as solving a dramatic problem
• Show transformation rather than listing benefits

3. Visuals That Work Subconsciously

• Red = urgency (perfect for "Buy Now" buttons)
• Blue = trust (ideal for pricing pages)
• Faces looking at your Call to Action (CTA) button increase clicks by 10-15%

4. Simplify Choices to Boost Sales

• Too many options paralyze decision-making
• Offer 3 versions max (good/better/best)
• Highlight one recommended option

FOMO: The Growth Hack Every Startup Should Use

FOMO taps into our deep fear of social exclusion. When used ethically, it can dramatically improve conversion rates.

Proven FOMO Tactics That Work:

Limited Availability

• "Only 3 spots left in our program"
• "First 100 customers get lifetime discount"

 Social Proof Triggers

• "Join 2,500+ founders using our tool"
• Live counters showing recent signups

 Exclusive Access

• "Invite-only early access"
• "VIP members get 24-hour head start"

 Urgency Without Being Pushy

• "Early bird pricing ends Friday"
• “Registration closes in 48 hours”

Combining Neuromarketing + FOMO for Maximum Impact

The most effective startups layer these techniques:

1. The Story + Scarcity Combo

• Tell an emotional brand story
• Add "Limited edition" or "Only available this week"

2. Social Proof + Urgency

• "500+ customers joined this week"
• "Next price increase in 3 days"

3. Gamification + Exclusivity

• Progress bars showing signup milestones
• "Top 50 users get premium features free"

The Playbook for Founders

Start by figuring out where people are dropping off. Are visitors leaving before scrolling? Upload a screenshot of your page into an AI tool like Predict AI to spot areas that people tend to ignore.

Next, create real urgency—but keep it honest. Limited-edition offers, time-based pricing, or exclusive waitlists can trigger FOMO, but fake countdown timers will only hurt your credibility.

Then, test quickly and often. Because brain-based feedback can come in fast, your growth team could test ten headline versions before lunchtime.

Finally, close the loop with social proof. Show how many people have signed up or made a purchase recently—when users see others taking action, they’re more likely to follow through.

Staying Ethical: Where Neuromarketing Meets Regulation

Tracking eye movements or physical responses isn’t exactly mind-reading, but neuromarketing comes close and that raises important ethical questions. In places like Europe, the General Data Protection Regulation (GDPR) treats biometric data (like facial expressions or heart rate) as highly sensitive. That means companies must get clear, informed consent and use the data only for a specific, stated purpose. California’s Consumer Privacy Rights Act (CPRA) has similar rules.

But legal compliance is just the starting point. Founders also need to think about ethics: When does smart marketing cross the line into manipulation? For example, pretending a countdown timer is real when it’s not may boost short-term sales, but it damages trust. On the other hand, being honest and offering features like an easy “undo” option after an impulse purchase builds long-term loyalty and customer lifetime value. In short, transparency and respect aren't just good ethics—they're smart business.

Implementation Guide for Startups

Step 1: Audit Your Current Marketing

• Where can you add more emotional triggers?
• Do you show social proof effectively?
• Is your pricing structure simple?

Step 2: Run FOMO Experiments

• Test limited-time offers vs evergreen pricing
• Try different urgency messages
• See which message leads to more clicks, sign-ups, or sales

Step 3: Refine Based on Data

• Track which emotional triggers work best
• Optimize your most effective FOMO tactics
• Scale what works, kill what doesn't

The bottom line

Great products always solve a problem. Neuromarketing simply lets founders prove—rather than guess—whether their solution hits the brain’s sweet spot. Pair brain-based validation with FOMO, and you’ve got a growth engine that turns curiosity into clicks and clicks into conversions. The opportunity is enormous, but so is the responsibility. Startups that wield these tools with empathy and transparency will gain more than mere clicks; they will earn trust in a market where attention is scarce and FOMO is everywhere.

Your move: Will you keep using old marketing playbooks, or start leveraging how brains actually work?

Kholoud Hussein 

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

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

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

2. Gig Work as an Opportunity for Startups

2.1. A Flexible, Scalable Labor Model

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

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

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

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

2.2. Enabling Innovation with Lower Risk

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

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

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

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

3. Challenges of Informal Gig Work for Workers and Startups

3.1. For Workers: Lack of Protections and Predictability

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

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

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

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

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

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

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

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

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

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

4.1. Platforms Moving Up the Value Chain

Saudi gig platforms are evolving into holistic ecosystems:

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

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

4.2. FinTech and Financial Services for Gig Labor

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

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

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

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

5. Moving Toward a Formalized Gig Economy

5.1. Regulatory Progress

Saudi Arabia has begun formalizing gig work through:

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

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

5.2. Startup Initiatives in Workforce Protection

Some startups proactively offer standards for gig workers:

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

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

6. Towards a Balanced Saudi Gig Ecosystem

6.1. Strategic Coordination

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

6.2. Future Outlook and Recommendations

Key next steps for a thriving Saudi gig ecosystem:

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

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

From Informality to Strategic Asset

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

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

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

Ghada Ismail

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

In Simple Terms

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

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

What Does a Cap Table Include?

At its core, a cap table typically shows:

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

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

Why It Matters

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

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

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

When to Set It Up

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

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

Popular Cap Table Tools

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

1. Carta

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

2. Pulley

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

3. Eqvista

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

Wrapping things up…

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

Kholoud Hussein 

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

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

The Traditional VC Model: Illiquid by Design

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

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

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

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

What Is Liquid Venture Capital?

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

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

How Does It Work?

There are several models under the liquid VC umbrella:

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

Why Liquid VC Is Gaining Attention?

1. Faster Access to Capital for Startups

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

2. More Flexible Risk Management for Investors

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

3. Democratizing Venture Investing

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

 4. Fuels Secondary Markets

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

Challenges and Risks

While liquid VC is promising, it comes with caveats:

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

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

The Future of Venture Capital?

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

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

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