Ghada Ismail

When discussions turn to Saudi Arabia’s startup ecosystem, attention usually centers on highly visible consumer platforms, such as food delivery apps, ride-hailing services, digital wallets, and online marketplaces. These are the companies that attract millions of users and quickly become part of everyday life. Their brands dominate headlines, and their apps live on people’s phones.

Yet beneath these familiar platforms lies another layer of the digital economy, one that most consumers rarely notice.

Behind every e-commerce store, fintech app, or digital marketplace is a network of companies providing the technological infrastructure that allows these businesses to function. These firms develop the systems that manage payments, verify identities, deliver notifications, detect fraud, and help merchants run online stores. Without these technologies, many digital platforms would struggle to operate at scale.

While some startups build products designed for the public, others build the invisible systems that allow those products to work. These companies can be described as “invisible startups.” Their customers are businesses rather than individuals, and their technologies operate quietly behind the scenes.

As Saudi Arabia accelerates its digital transformation under Saudi Vision 2030, these startups are becoming a crucial backbone of the Kingdom’s rapidly expanding digital economy.

What Are Invisible Startups? 

Invisible startups are companies that focus on building technological infrastructure rather than consumer-facing products. Instead of launching apps aimed directly at individuals, they develop systems that help other companies operate more efficiently.

Their technology often works in the background. Consumers may interact with the outcomes of these systems—such as receiving a verification code or completing a secure online payment—but they rarely know which company powers the underlying technology.

These startups typically build tools that support essential digital operations. Some develop platforms that allow merchants to create and manage online stores. Others focus on communication infrastructure that enables businesses to send messages and notifications to customers. There are also companies specializing in fraud detection technologies designed to protect digital transactions, as well as firms building logistics systems that help manage deliveries and supply chains.

Because invisible startups operate in the business-to-business space, their growth often comes from enabling thousands of companies to operate digitally. Rather than focusing on user downloads or consumer marketing, they concentrate on building scalable systems that businesses rely on every day.

Why Saudi Arabia Needs Invisible Startups 

Saudi Arabia’s digital economy has been expanding rapidly over the past decade. Government reforms, growing venture capital investment, and rising internet penetration have all contributed to the development of a dynamic startup ecosystem.

At the center of this transformation is Saudi Vision 2030, which prioritizes innovation, digital infrastructure, and technology-driven industries as key pillars of economic diversification.

This transformation is generating strong demand for infrastructure-focused startups. As more businesses move their operations online, the need for reliable technological systems becomes increasingly important. Startups launching digital services require ready-made tools that allow them to operate quickly without having to build complex infrastructure from scratch.

The rapid growth of small and medium-sized enterprises across Saudi Arabia has further accelerated this demand. Many entrepreneurs entering sectors such as e-commerce, fintech, and logistics rely on specialized technology providers that simplify digital operations.

In this context, invisible startups serve as a vital layer within the broader ecosystem. By offering ready-made platforms and services, they reduce the technological barriers facing entrepreneurs and make it easier for new businesses to enter the digital economy.

Startups Supporting Online Businesses 

One of the clearest examples of invisible infrastructure can be found in platforms that enable merchants to launch online stores.

Saudi startups such as Zid and Salla have emerged as key players in this space. Both companies provide technology that allows businesses to create and manage their own digital storefronts without requiring advanced technical expertise.

Through these platforms, merchants can design websites, integrate payment systems, coordinate shipping services, and manage orders through a single dashboard. A traditional retailer that once relied entirely on a physical store can now establish a fully functioning online business within a short period of time.

The impact of these platforms extends far beyond the companies themselves. By enabling thousands of merchants to sell products online, they help expand the entire e-commerce ecosystem in Saudi Arabia.

Consumers browsing online stores may never realize that a specialized platform is operating behind the scenes, yet companies like Zid and Salla have quietly become essential infrastructure for digital commerce across the Kingdom.

Communication Infrastructure 

Another critical layer of invisible technology involves the systems that power digital communication between businesses and their customers.

Modern digital services depend heavily on messaging infrastructure. From verification codes and delivery updates to transaction confirmations and customer service notifications, communication plays a central role in the digital customer experience.

One Saudi company contributing significantly to this infrastructure is Unifonic. The firm provides cloud-based communication solutions that allow businesses to send messages across multiple channels, including SMS, voice, and messaging applications.

When users receive a one-time password while logging into a platform or confirming a transaction, the message may be delivered through systems developed by companies like Unifonic.

Although consumers see the messages appearing on their phones, the technology behind the communication often remains invisible. Yet these systems are essential for maintaining secure transactions, engaging customers, and ensuring smooth digital interactions.

Security and Trust Infrastructure 

As digital services expand, maintaining trust and security becomes increasingly critical. Online transactions, digital banking, and remote identity verification all require sophisticated technological systems to prevent fraud and protect sensitive information.

Saudi Arabia has witnessed the emergence of several companies developing solutions in this area, including Mozn and Elm.

These companies build technologies designed to monitor financial activity, analyze transaction patterns, and detect potential risks. Their systems are widely used by banks, fintech companies, and government institutions seeking to strengthen security and regulatory compliance.

Artificial intelligence plays an important role in many of these solutions. By analyzing large volumes of data in real time, advanced analytics platforms can identify suspicious activities and help prevent fraud before it occurs.

Organizations across both the public and private sectors also rely on digital services developed by Elm to streamline administrative processes and enhance digital identity systems.

Although these technologies rarely appear in consumer-facing applications, they form a crucial layer of trust within the Kingdom’s digital economy.

Why These Startups Matter for the Entire Ecosystem 

Despite their relatively low public profile, invisible startups play an essential role in supporting Saudi Arabia’s technology ecosystem.

Unlike consumer startups that depend on widespread brand recognition, infrastructure companies grow by enabling other businesses to succeed. A single technology provider may serve hundreds or even thousands of clients, creating significant effects across entire industries.

This model allows these startups to develop highly scalable businesses. Once the technological infrastructure is built, it can be deployed across multiple companies and sectors. The result is a powerful multiplier effect within the digital economy.

Infrastructure startups also accelerate innovation. By offering ready-made tools for payments, communication, and fraud detection, they allow entrepreneurs to focus on developing new products and services rather than building complex technological systems.

In many ways, these companies function like the roads and utilities of the digital economy. They may not always attract attention, but they provide the foundation upon which other businesses operate.

The Future of Invisible Startups in Saudi Arabia 

Saudi Arabia’s digital transformation is still unfolding, and the demand for infrastructure startups is expected to grow in the years ahead.

As industries such as fintech, logistics, e-commerce, and artificial intelligence continue expanding, businesses will require increasingly specialized technology solutions. This environment creates significant opportunities for startups building platforms related to digital identity, cybersecurity, financial infrastructure, and data analytics.

Investors within the Kingdom are also beginning to recognize the strategic importance of these companies. While consumer apps often receive the most media coverage, infrastructure startups can generate long-term value by serving entire industries.

Globally, many of the most influential technology companies operate largely behind the scenes, providing the platforms that power other businesses. Saudi Arabia’s startup ecosystem may increasingly follow a similar path.

The most important tech companies of the future may not be the apps that dominate smartphone screens. Instead, they may be the platforms quietly enabling thousands of businesses to operate digitally.

Invisible startups may not seek the spotlight, but their impact on Saudi Arabia’s digital economy is becoming impossible to ignore. As the Kingdom continues its journey toward a diversified and technology-driven future, these companies will remain an essential force powering the ecosystem from behind the scenes.

Noha Gad

In today's fast-paced business world, companies face increasing pressure to innovate and remain competitive, moving beyond traditional top-down management, which can stop creativity and leave large companies struggling to keep up with quick, new startups. This is where intrapreneurship comes in. This dynamic practice empowers employees to act like entrepreneurs within the safety of an established company.

This approach unleashes internal potential, fostering groundbreaking ideas without the personal risks of full-fledged startups. From accidental invention to tech giants' game-changing products, intrapreneurship has proven its power to drive growth and adaptability.

What is intrapreneurship?

Intrapreneurship is a way of working that lets employees act like entrepreneurs, but from inside their own company. People who take on this role are self-motivated, proactive, and action-oriented individuals who take the initiative to develop innovative products or services. Unlike entrepreneurs, they operate within a company's safety net, which absorbs any failures or losses. 

The main difference between an entrepreneur and an intrapreneur is the level of risk. Entrepreneurs build a business from the ground up and carry all the risk themselves. Intrapreneurs, on the other hand, have the safety net of their company behind them. This support gives people the freedom to try new things and take smart risks without the fear of losing everything.

By creating this entrepreneurial environment, intrapreneurship helps both the company and its people. Employees get the space to test ideas, grow their skills, and build a career within the organization, while the company benefits from fresh thinking and new solutions. 

Intrapreneurship Vs. traditional entrepreneurship

Intrapreneurship differs from traditional entrepreneurship in key ways, starting with resources. In intrapreneurship, employees rely on company funding and tools, such as budgets, labs, or software provided by the organization. This gives them a strong base without needing personal investment. On the other hand, entrepreneurship relies on self-funding or personal networks, where founders often seek loans and contacts on their own.

On risks level, intrapreneurs share risks with their employer, as failures impact the company but not their personal finances or job security. Entrepreneurs face high personal risks, including debt, lost savings, or business failure, that can affect their livelihood directly.

Intrapreneurship begins internally with pilots or tests within the company, allowing ideas to grow safely before wider rollout. Meanwhile, entrepreneurship jumps straight to direct market entry, requiring immediate customer validation and full exposure from the beginning.

To tackle specific challenges, such as increasing productivity and cutting costs, Intrapreneurs must have a high level of skills, including leadership and innovative thinking, to take risks and drive innovation within the business. Successful intrapreneurs must also be comfortable with uncertainty, persistently testing their ideas until they achieve the desired results.

Benefits of intrapreneurship 

• Employee engagement. Intrapreneurship boosts employee engagement by giving workers ownership of projects. They feel valued when leaders support their ideas, which cuts turnover and raises job satisfaction. 
• Driving innovation. Employees spot needs and test solutions fast, using company resources. This leads to new products, ultimately driving fresh innovation inside companies. 
• Business growth. Intrapreneurship helps enter new markets without big startup costs. It also improves customer loyalty through better offerings.
• Talent retention. Companies keep top talent by offering challenge and growth. Workers stay when they can build, not just follow tasks. This could eventually save hiring costs and build skills.

Finally, intrapreneurship bridges the gap between employee potential and company success by sparking innovation from within. It turns everyday workers into drivers of change, delivering engagement, growth, and fresh ideas without the uncertainties of external ventures.

Looking ahead, intrapreneurship will only grow in importance as markets evolve and talent demands more than routine tasks. Companies that adopt it early gain a clear edge, turning their workforce into a powerhouse of ideas and execution.

Mohamed Ramzy

The telecommunications and digital communication sector in Egypt is undergoing rapid transformation, driven by robust growth in e-commerce, the expansion of digital government services, and the organizations’ growing adoption of omnichannel messaging solutions to manage customer relations.

With the growing penetration of smartphones and messaging applications, companies are increasingly seeking more intelligent tools that not only facilitate message delivery but also analyze consumer behavior and enable real-time engagement.

In this context, technology companies are integrating artificial intelligence into the core of communication ecosystems, shifting customer service from a traditional response-based model to a proactive framework centered on automation and real-time data analytics.

On the sidelines of the AI Everything MEA 2026, Sharikat Mubasher interviewed Akram Elaashry, Head of Technology at Broadnet Technologies, to explore the company’s vision to transition from a provider of SMS solutions to a comprehensive developer of intelligent, AI-powered communication platforms. 

First, can you tell us more about Broadnet Technologies and its presence in regional and global markets?

Broadnet Technologies was founded in Lebanon in 2003 and has since expanded into an international organization with over 23 branches worldwide, including offices in Egypt, the UAE, Saudi Arabia, Qatar, India, and the United States.

Starting with SMS aggregation services, the company has grown to serve over 80,000 clients and partner with nearly 10,000 global telecom operators.

What are the key sectors that Broadnet Technologies targets?

We serve a wide range of organizations and companies, not just a single sector. Our portfolio in Egypt and the region includes prominent clients such as Banque Misr, global retail companies like LC Waikiki, ministries of Health, Planning, and Irrigation, securities trading firms, and every entity seeking reliable communication channels with its target clients.

Broadnet Technologies recently participated in the AI Everything MEA 2026 summit and unveiled its omnichannel solutions. What does this technology add to the communication ecosystem?

Omnichannel technology enables companies to send bulk campaigns via key channels, including SMS, WhatsApp, email, and Telegram. It also empowers companies to deliver interactive campaigns via WhatsApp, incorporating links that direct customers straight to websites, significantly boosting conversion rates and marketing efficiency compared to traditional methods.

Speaking of AI, what is the "AI Chatbot" project you are currently working on?

This project represents our primary focus. We are preparing to launch a comprehensive AI agent that integrates with messaging systems and omnichannel platforms. It will operate as an intelligent assistant, handling customer inquiries and resolving technical issues with exceptional accuracy and speed.

The agent will go beyond traditional automated responses: it will detect technical malfunctions, troubleshoot daily operational issues, and reduce reliance on human intervention for routine tasks, ultimately boosting operational efficiency.

How do you assess the current state of AI in Egypt, and what does the Egyptian market need to foster growth in this sector?

Egyptian AI sector is experiencing rapid growth, yet it remains in its early stages compared to more advanced global markets. Despite rising awareness of the importance of technology and intelligent robotics, we noticed that most companies and organizations have yet to fully realize how to integrate these technologies into their daily operations effectively and practically.

One of the most prominent needs for the Egyptian market to grow is investment and financial support. Developing AI solutions requires significant investments, whether in creating advanced software solutions or in testing new technologies and adapting them to meet customers’ needs. Startups and small-sized enterprises need incentives and funding to continue delivering leading-edge solutions without being hindered by financial hurdles.

Secondly, spreading awareness and technical knowledge is critical. Many organizations do not realize that their operational and marketing issues can be solved using AI, from enhancing customers’ experience to automating internal operations. This is where leading technology companies, such as Broadnet Technologies, play a pivotal role in delivering customized solutions and guidance on the most effective ways to deploy these technologies, thereby improving operational efficiency and increasing returns.

Thirdly, the market needs a robust technological infrastructure, including reliable communication networks, access to high-quality data, and advanced security frameworks to ensure AI solutions operate seamlessly and reliably while protecting customers’ information and privacy.

SMEs are a key pillar of the Egyptian economy. Does Broadnet Technologies offer services that are tailored to their capabilities?

Certainly. We support startups with flexible packages that start with 10,000 messages at affordable prices. Our goal is to back these companies in their early stages, enabling them to reach their target audience using advanced technologies, such as AI chatbots, at a reasonable cost.

The Saudi market is undergoing a profound transformation in the technology and AI fields. How would you describe your current footprint in the region, and what is your vision for future growth there?

We have a strong and long-standing presence in the Saudi market. Through our office there, we serve banking, public, and private sectors, in collaboration with major operators such as STC, Zain, and e&.

Today, the Saudi market is a highly attractive environment for investment. We currently operate advanced technology projects such as HLR and i-Messages, and we are planning to expand our presence by opening new offices and strengthening our partnerships with government entities to support the Kingdom’s digital vision.

What are Broadnet Technologies’ top priorities for growth and expansion over the next five years?

Our ambition is limitless. We work daily to develop our applications to keep pace with the latest global developments. We also strive to become the world's premier choice for communication and messaging solutions and to lead the innovation trajectory in the Middle East by integrating AI into the core of our operations.

At Broadnet Technologies, we aim to become one of the four largest companies in the world soon by enhancing services and expanding our operational procedures.

Finally, Broadnet Technologies aims to keep pace with the technological advancements in the field of AI, evolving from a provider of SMS services into a developer of AI solutions and intelligent conversational agents. This strategic transformation solidifies the company’s position among the companies driving the development of customer experience in the region. 

With its carefully planned expansion into strategic markets such as Saudi Arabia and Egypt, Broadnet Technologies stands as a model for companies investing in innovation to serve comprehensive digital development across the region. 

Translation: Noha Gad

Kholoud Hussein 

As Saudi Arabia enters the second half of its transformation under Saudi Vision 2030, the structure of its economy looks significantly different from just five years ago. Growth is no longer concentrated in traditional sectors. Instead, it spans technology, energy, logistics, healthcare, tourism, and digital infrastructure.

With the national economy surpassing 4 trillion SAR in 2023, driven by a 5.6% expansion in non-oil activities, the environment for entrepreneurship is arguably stronger than at any point in the Kingdom’s modern economic history. For founders, the question is no longer whether opportunities exist, but rather: which sector offers the best mix of demand, capital availability, and scalability?

This analysis uses economic indicators, government data, market behavior, and venture capital trends to identify the most attractive sectors for launching a new company in Saudi Arabia in 2026.

1. Artificial Intelligence: From Opportunity to National Imperative

According to projections from the Saudi Data and Artificial Intelligence Authority, artificial intelligence could contribute $135 billion to the Saudi economy by 2030. This represents more than 12% of the anticipated GDP and positions AI not as an optional technology, but as a structural pillar of the future economy.

Why AI Is the Most Attractive Sector in 2026

1. Massive Institutional Demand
   Giga-projects such as NEOM, along with major developments spearheaded by national developers like Red Sea Global and Qiddiya Investment Company, rely heavily on AI for urban planning, operations, energy systems, and visitor management.
2. Large-Scale Government Spending
   Saudi Arabia is investing more than 50 billion SAR in cloud infrastructure, national datasets, and AI regulatory frameworks—laying the foundation for local companies to enter the sector.
3. Growing Share of Venture Capital
   Nearly 22% of all Saudi VC deals in 2024 were directed toward AI startups, a clear indicator of investor appetite.

Realistic Startup Opportunities

• Sector-specific AI (healthcare, logistics, retail, education)
• Arabic-language natural language processing
• Predictive analytics for industry and supply chains
• AI training datasets and model development

AI is no longer emerging—it is becoming core economic infrastructure. Entering in 2026 means tapping into a sector with long-term national demand and global scalability.

2. Renewable Energy & Green Hydrogen: A Sector Growing Faster Than Forecasts

Saudi Arabia plans to produce half of its electricity from renewables by 2030, with some of the world’s largest solar and wind projects underway. The Kingdom is also building one of the world’s largest green hydrogen plants within NEOM.

Key Indicators Supporting Sector Attractiveness

• Over 58 GW of renewable energy capacity under development
• Green hydrogen investments exceeding $25 billion
• Global hydrogen demand is rising around 28% annually

Startup-Relevant Opportunities

While the mega infrastructure will be built by large corporations, startups have opportunities in:

• Battery and energy storage systems
• AI tools for renewable asset management
• Energy efficiency solutions for industrial clients
• Emission tracking and reporting platforms

Demand for technical services within the renewable energy ecosystem is growing faster than supply, creating an attractive entry point for specialized startups.

3. Logistics & E-Commerce Infrastructure: A Sector Expanding Beyond Current Capacity

Saudi Arabia’s National Transport and Logistics Strategy aims to grow the sector’s contribution to 10% of GDP while positioning the Kingdom as a global logistics hub.

Relevant Market Data

• E-commerce is growing at 34% annually
• 59 new logistics zones launched by 2024
• Air cargo volumes rising 17% year-on-year

Opportunities for New Entrants

• AI-powered warehouse management
• Robotics for sorting and fulfillment
• Electric vehicle logistics solutions
• Cloud commerce systems and integrated POS-warehouse connectivity

The sector favors technology-forward startups rather than traditional operators. The market is open for companies that solve operational inefficiencies.

4. Digital Healthcare: The Largest Surge in Government Spending

Saudi Arabia allocated 189 billion SAR to healthcare in 2024, with digital health positioned as a strategic priority.

High-Potential Areas

• Predictive analytics for chronic disease management
• Smart hospital management systems
• AI-assisted diagnostics
• Pharmacy automation and digital therapeutics

The Minister of Health has emphasized that “digital health is not an auxiliary service, but a core component of the national healthcare infrastructure.”

Digital health is expanding at a projected 20%+ CAGR, with insufficient local solutions to meet demand—making it one of the most promising sectors for founders.

5. Cybersecurity: A Persistent Supply–Demand Gap

Saudi Arabia’s rapid digitization has created shortages in specialized cybersecurity providers. Spending on cybersecurity is increasing at 18% annually, driven by both public and private sector requirements.

Why Cybersecurity Is a High-Potential Sector

• Rising frequency of global cyberattacks (up 38%)
• Mandatory compliance requirements for companies
• Limited number of specialized local providers

High demand and limited supply make this one of the safest and most profitable sectors for new startups.

6. Tourism & Entertainment: A Sector Being Rebuilt From Scratch

Saudi Arabia welcomed 100 million visitors in 2023, exceeding expectations and positioning tourism as a pillar of future economic diversification. The target is 150 million visitors by 2030.

Opportunities

• Augmented and virtual reality tourism experiences
• Platforms dedicated to domestic travel
• Smart destination management tools
• Technical services for large-scale events

The sector is evolving rapidly and needs technology providers capable of supporting the growth of attractions, activities, and visitor management solutions.

Final Analysis: Which Sector Should You Choose in 2026?

After reviewing economic indicators, funding trends, and structural demand, the most attractive sectors for launching a new company in Saudi Arabia in 2026 are:

Top-Tier Sectors (Highest Attractiveness)

1. Artificial Intelligence
2. Digital Healthcare
3. Renewable Energy & Green Hydrogen
4. Cybersecurity
5. Smart Logistics & E-Commerce Infrastructure

Medium Attractiveness

• Specialized fintech
• EdTech
• Tourism tech and entertainment solutions

Decision Framework for Founders

Your decision should ultimately rely on three strategic factors:

1. Market Demand:
   Is the sector experiencing structural growth backed by national initiatives?
2. Scalability:
   Can the product expand regionally after initial traction in Saudi Arabia?
3. Competitive Advantage:
   Can your company offer a meaningful, defensible value proposition?

Finally, launching a company in Saudi Arabia in 2026 means entering one of the world’s most dynamic and investment-rich markets. The most compelling opportunities lie in sectors aligned with national transformation priorities, supported by strong public investment, and characterized by clear market gaps.

If you're building for 2026, the strongest bets—economically and strategically—are AI, digital health, cybersecurity, renewable energy, and smart logistics. These sectors will define the Kingdom’s next decade of growth, and the startups entering them today will form the backbone of tomorrow’s innovation economy.

Ghada Ismail

Not every startup success story follows the familiar “raise fast, scale fast, exit fast” formula. In reality, many transformative companies grow slowly at first through several stages, including testing markets, refining technologies, and building strong foundations, before they truly take off.

However, this slower path often clashes with the expectations of traditional venture capital, where investors typically seek rapid growth and relatively quick exits.

To bridge that gap, a different type of investment has gained attention in recent years: Patient Capital. Unlike conventional funding models that focus on fast returns, patient capital allows investors to support companies over longer time horizons, prioritizing sustainable growth and long-term impact.

What Is Patient Capital?

Patient capital refers to long-term investment funding that accepts slower financial returns in exchange for sustainable growth. Unlike traditional venture capital, which often pressures startups to scale rapidly or pursue quick exits, patient investors give businesses the time they need to refine products, understand markets, and build resilient models.

The concept gained wider recognition through organizations such as Acumen (Acumen), a nonprofit founded in 2001 by Jacqueline Novogratz that provides long-term, socially focused capital to businesses addressing global challenges such as poverty, healthcare, education, and clean energy. Acumen popularized the term “patient capital” to describe investments that combine financial discipline with a long-term commitment to creating measurable social impact, demonstrating that investors can pursue both sustainable growth and societal benefit.

By offering time and flexibility, patient capital allows entrepreneurs to focus on building durable businesses rather than chasing short-term profits, making it especially valuable for sectors with long development cycles or high societal impact, from healthcare and clean technology to deep tech and infrastructure.

How Patient Capital Differs from Venture Capital

Traditional venture capital typically operates within relatively short timelines. Most venture funds aim to generate strong returns within about a decade, which often pressures startups to grow aggressively and pursue fast exits through acquisitions or public listings.

Patient capital works differently. Investors adopting this approach are comfortable holding investments for longer periods, sometimes well beyond ten years. Rather than focusing purely on rapid financial returns, they emphasize long-term value creation and sustainable growth.

This mindset often changes the relationship between founders and investors. Instead of pushing companies toward rapid scaling, patient investors tend to support steady development, helping founders navigate complex challenges while building durable businesses.

Why Some Startups Need Patient Capital

Many industries simply cannot move at the pace expected by traditional venture funding. Sectors such as healthcare technology, deep tech, climate innovation, and financial infrastructure often require years of development, testing, and regulatory approvals before meaningful revenues appear.

Startups in these areas may struggle to meet the fast timelines of conventional investors. Patient capital allows founders to focus on developing the right solution rather than rushing products to market prematurely.

This approach also helps companies avoid the trap of “growth at all costs,” which has led many startups to expand too quickly without strong foundations.

The Link Between Patient Capital and Impact Investing

Patient capital is closely tied to impact investing, where investors seek both financial returns and measurable social or environmental outcomes.

Organizations like Acumen have invested in ventures tackling issues such as healthcare access, education, and financial inclusion. Similarly, institutions like the Bill & Melinda Gates Foundation have supported long-term investment strategies aimed at solving complex global challenges.

These investors recognize that meaningful change often requires years of experimentation and gradual market development.

Why It Matters in Emerging Startup Ecosystems

Patient capital is particularly valuable in emerging startup ecosystems where businesses face additional hurdles such as regulatory complexity, limited infrastructure, or developing markets.

In these environments, startups often need more time to build sustainable models. Long-term investors can play a critical role in supporting founders through the early stages while allowing companies to scale gradually.

As regions like the Middle East, Africa, and Southeast Asia continue to develop vibrant startup ecosystems, patient capital could become an increasingly important driver of innovation.

The Challenges of Patient Capital

Despite its advantages, patient capital is not without risks. Investors must be willing to commit funds for longer periods, which can reduce liquidity and increase uncertainty.

There is also a balance between patience and accountability. Even with longer timelines, startups still require clear milestones, disciplined management, and strong governance to ensure progress.

A Different Investment Mindset

As startup ecosystems evolve, the definition of success is also changing. Rapid growth and quick exits will always play a role in venture capital, but they are not the only path to building meaningful companies.

Some of the most impactful innovations—especially those addressing complex technological or societal challenges—take years to mature.

Patient capital recognizes this reality. By giving founders the time and flexibility to build sustainable businesses, it offers an alternative investment model; one that values long-term thinking over short-term gains.

In an industry often driven by speed, patient capital reminds investors that sometimes the most powerful advantage is simply the willingness to wait.

Kholoud Hussein 

In the venture capital world, funding rounds often serve as shorthand for a startup’s trajectory. A company that raises capital at a higher valuation than its previous round is said to have achieved an “up round,” a signal of growth and investor confidence. A “down round,” by contrast, occurs when the valuation falls, often reflecting operational challenges or deteriorating market conditions.

Between these two scenarios lies a third, less discussed but increasingly common outcome: the flat round.

A flat round occurs when a startup raises new capital at roughly the same valuation as its previous funding round. In simple terms, the company secures fresh investment, but its valuation does not increase. While this may appear neutral at first glance, flat rounds carry nuanced implications for founders, investors, and the broader startup ecosystem.

Understanding the Mechanics of a Flat Round

In a typical venture funding cycle, startups aim to demonstrate progress between rounds. This progress may come in the form of revenue growth, product development milestones, market expansion, or user acquisition. These achievements justify a higher valuation in the next round.

A flat round suggests that while the company has not lost value, it has not increased it significantly either. Investors are willing to provide additional capital to support continued operations, but they do not see sufficient traction to justify a higher valuation.

For founders, the outcome can be both reassuring and sobering. On one hand, a flat round avoids the dilution and reputational damage often associated with a down round. On the other hand, it signals that the company has entered a phase of slower perceived momentum.

Why Flat Rounds Have Become More Common

Flat rounds tend to emerge during periods of market recalibration. When venture capital markets tighten or economic uncertainty rises, investors often become more cautious about aggressive valuations. Startups that might previously have commanded higher valuations may instead raise capital at the same level as their previous round.

This dynamic has been particularly visible in recent global venture cycles, where high-growth companies raised funding during periods of exuberant valuations. As capital markets normalized, many of those startups faced pressure to align valuations with more conservative benchmarks.

In such conditions, flat rounds function as a compromise between founders and investors. Investors avoid overpaying for equity, while founders maintain valuation stability and buy time to demonstrate stronger performance.

The Strategic Value of a Flat Round

Despite the lack of valuation growth, flat rounds can play a constructive role in a startup’s development.

First, they extend the company’s financial runway. Startups often require additional capital to refine their product, expand into new markets, or reach profitability. A flat round provides the resources needed to pursue those objectives without forcing a dramatic valuation reset.

Second, flat rounds can stabilize the cap table. Down rounds frequently trigger anti-dilution clauses that shift ownership toward existing investors, potentially complicating future fundraising. By maintaining the same valuation, a flat round avoids these structural disruptions.

Third, a flat round can reset expectations. Rather than chasing aggressive growth metrics to justify escalating valuations, founders can focus on operational efficiency, customer retention, and sustainable revenue models.

For investors, flat rounds represent an opportunity to reinforce portfolio companies with long-term potential. By supporting the startup through a transitional phase, investors position themselves to benefit if the company regains momentum in future rounds.

Risks and Perception Challenges

While flat rounds are not inherently negative, they can influence market perception. Venture capital is a narrative-driven ecosystem, and valuation trends often shape how a company is viewed by future investors.

A flat round may raise questions about growth velocity or market traction. Potential investors in subsequent rounds may scrutinize performance metrics more closely to determine whether the company has regained upward momentum.

There is also the risk of “valuation stagnation.” If a startup raises multiple flat rounds without demonstrating measurable progress, confidence can erode among both investors and employees. Equity incentives may lose motivational power if employees perceive limited upside potential.

When Flat Rounds Make Strategic Sense

Flat rounds tend to be most effective when they are part of a deliberate strategic reset rather than a reactive measure. Companies entering new markets, pivoting their business model, or investing heavily in research and development may temporarily prioritize capability building over short-term growth metrics.

In these situations, maintaining valuation stability while securing additional capital allows leadership teams to focus on long-term competitiveness.

Moreover, in sectors where innovation cycles are longer—such as deep technology, climate tech, or advanced manufacturing—flat rounds may simply reflect the time required for technologies to mature before commercial breakthroughs occur.

A Signal of Maturing Venture Markets

As startup ecosystems evolve, funding patterns tend to diversify. Early-stage ecosystems often emphasize rapid valuation growth and headline-making investment rounds. More mature ecosystems develop a wider range of financing outcomes, including flat rounds and structured extensions.

In this sense, the increasing visibility of flat rounds reflects a broader maturation of venture capital markets. Investors are becoming more disciplined, founders more pragmatic, and valuations more closely aligned with underlying business fundamentals.

To conclude, a flat round occupies the middle ground in startup finance. It signals stability without acceleration, caution without retreat. For founders, it offers breathing room to refine strategy and strengthen fundamentals. For investors, it represents a calculated vote of confidence in a company’s long-term potential.

In a venture landscape where valuations can fluctuate dramatically, flat rounds remind stakeholders that growth is rarely linear. Sometimes, maintaining the same valuation is not a setback, but a strategic pause before the next phase of expansion.

Noha Gad

The startup journey is a thrilling race against time, talent, and competition. Founders pour everything into solving big problems, racing to turn ideas into products that change industries. In this hyper-connected era, where ideas spread faster than wildfire, stealth mode became a go-to tactic for founders who want to build without the spotlight. 

Stealth mode is not just about secrecy; it is a deliberate strategy. It means operating a startup quietly, keeping details about the product, technology, or even the company's full mission under wraps while you focus on execution. This is why many startups choose stealth mode. In today's hyper-competitive landscape, especially in fast-moving fields like AI, fintech, and deep tech, one leaked demo or viral tweet can invite rivals to race you to market. 

Why do startups operate in a stealth mode?

A stealth mode startup is a fledgling business working to bring a new product or service to market under a temporary state of secrecy. This strategy is designed to protect intellectual property — for sensitive inventions, algorithms, or biotech discoveries— limit outside scrutiny, and preserve a competitive advantage until launch. Startups also choose stealth mode to create space for focused building and to protect their edge before launch. 

Other reasons include:

• Controlling market timing andnarrative. Stealth enables founders to decide when to reveal their product and craft the story so launch day creates maximum impact.
• Fundraising and hiring strategy. For some investors, exclusivity can be a powerful tool. A stealth pitch can generate the urgency needed to close a deal. This approach is equally effective for attracting early talent who want to be part of something distinctive.
• Reducing distraction. By avoiding the spotlight, founders can keep the team focused on execution instead of chasing perception or fighting early criticism.
• Product readiness and iteration. Founders can refine a minimum viable product (MVP), test pricing and messaging, or explore design changes without the pressure of public scrutiny. Many stealth teams work with a small set of early customers or partners under confidentiality to gather targeted feedback.
• Control of public relations. When the startup is ready to launch, it can start with a strategic campaign, manage its public image, and build its reputation from scratch without a negative trail of public failures from the early stages of the project affecting it.

Types of stealth mode

Startups use different levels of stealth; each fits different needs. At the most basic level, there are two types of stealth mode:

• Total stealth. In this type, the company tries to keep all of its actions as secret as possible. To that end, the company may mislead the public about its true goals. It may maintain a website that does not disclose its personnel or location. It may even operate under a temporary name that doesn’t disclose its field of business. This mode is ideal for deep-tech, cybersecurity, AI, biotech, and patent-heavy startups.
• Partial stealth is lighter. The company shares some basics, such as product, funding, and clients, but keeps key details secret. This mode enables the startup to recruit talent publicly, while maintaining operational secrecy. It perfectly fits software-as-a-service (SaaS), fintech, and consumer startups that need brand presence but want to protect specific aspects.

The other types include:

•  In-company stealth. This mode involves an established company developing a new idea or product in secret. In such cases, the organization may either keep the project completely confidential or unveil it internally, ensuring it remains hidden from the public and the media.
• Time-based stealth. Startups often adopt this type in their earliest stages to develop and test concepts out of the public eye. Once the product is ready, the company launches it but then enters a quiet period, focusing on refining the offering based on feedback from its initial users.
• Brand stealth: It involves testing products quietly with customers while deliberately avoiding public brand-building. This approach is particularly well-suited to B2B tools and services.

Why stealth mode can hold startups back

Although stealth mode helps protect ideas, it can slow the startup down. Here are the main risks.

• Limited customer feedback. Gathering feedback in the early stages makes it easier to decide what works and what does not. That is why stealth mode startups often rely on input and consultations with experts, stakeholders, investors, or innovative testing methods.
• Challenges attracting funding. The secrecy of stealth mode startups makes finding and attracting investors challenging. For startups, it is harder to approach and convince investors without client feedback or publicity.
• Attracting attention. While stealth mode provides the benefit of being able to manage public image more easily, it also means that before the official launch and becoming more public, the company did not attract much organic attention. Thus, the launch campaigns and the activities after the official launch require more resources and effort from the marketing and PR teams compared to those startups that gain attention and become known while still developing their products. 

Finally, stealth mode is a strategic choice, not a permanent state. While it offers vital protection for ideas and focus during fragile early stages, founders must recognize when it is time to lift the veil. The ultimate goal is not secrecy; it is building something worth revealing. Used wisely, stealth provides the runway to refine, protect, and prepare. Used too long, it can starve a startup of the feedback, talent, and momentum it needs to truly take off.

Ghada Ismail

As governments and municipalities worldwide accelerate their digital transformation, artificial intelligence is becoming a cornerstone of modern urban management. From improving public safety and optimizing infrastructure to enabling faster, data-driven decision-making, AI technologies are reshaping how cities operate and respond to the needs of their citizens. This shift toward smarter governance has created new opportunities for technology companies developing integrated platforms that help authorities transform vast amounts of urban data into actionable intelligence.

Integra City, headquartered in Dubai, specializes in transforming how cities and governments manage infrastructure, security, and public services through integrated digital platforms. Sharikat Mubasher interviewed Ilya Belyakov, Chief Technical Officer at Integra City, who shared insights about the company and its mission. In this interview, Belyakov discusses how artificial intelligence is reshaping Integra City’s core offerings, the development of AI‑enabled solutions for city and government leaders, and the company’s vision for expansion, including its exploration of opportunities in the Saudi market.

How is AI transforming your core business operations, products, or services?
AI has become an incredibly powerful tool across every aspect of our work. I remember a few years ago, when I was defending my PhD in Canada, we were only starting to explore the first versions of AI. Back then, professors were skeptical, warning that students were relying too much on AI and that it would never work effectively. Look at today—AI has evolved dramatically. New versions of models like Gemini and ChatGPT provide deep insights and efficiency gains that were unimaginable just a few years ago.

At Integra City, AI is enhancing not just our software and hardware development but also our research and operational processes. Even though many AI tools aren’t yet fully secure for sensitive work, we find creative ways to integrate them to accelerate development and innovation. Some people say AI is a bubble, but I think technology always progresses. AI isn’t just a trend—it’s becoming foundational to how we operate.

What recent AI innovations excite you most at Integra City?
Initially, our work focused heavily on computer vision. We developed our own cameras and smart imaging systems, collaborating with various hardware manufacturers to create tools that analyze and interpret visual data.

But now, with the rise of large language models (LLMs), we see new opportunities to enhance city and government management. These models can process vast amounts of data and provide actionable insights. For example, they can help decision-makers understand complex patterns in city operations, anticipate problems, and prioritize interventions more effectively.

At Integra City, we’re exploring AI tools that can inform not only city planning but also regional and national governance. It’s about giving leaders the intelligence to act proactively rather than reactively.

How do Integra City’s AI chatbots support officials in making proactive, data-driven decisions?
We designed our chatbots specifically for management teams within cities, not for public use. For example, imagine a police chief responsible for a district with high crime rates. Our chatbot can analyze data from surveillance systems, emergency response logs, officer performance, and technology deployments. Based on that, it provides actionable recommendations—maybe increasing patrols in certain areas, hiring additional staff, upgrading technology, or optimizing workflows.

This is all part of our flagship product, InCore. InCore integrates all aspects of smart and safe city operations into one ecosystem, allowing different departments and ministries to collaborate efficiently. It’s not just about collecting data—it’s about turning information into insights that decision-makers can use immediately to improve citizen safety, resource allocation, and overall city management.

Are you considering collaborations or partnerships in the Saudi market?
Saudi Arabia is a new market for us, so we’re currently exploring opportunities. While we haven’t operated there yet, we have extensive experience in dozens of countries, primarily in Eastern and Southern Africa, East Asia, and some Middle Eastern markets, with our headquarters in Dubai.

We hope to enter the Saudi market soon. Participation in industry events like GITEX would be a strategic way to introduce our solutions. Tentatively, we’re looking at the first quarter of next year—January through March—to start engaging with local partners and stakeholders for our entry into the Saudi Market.

Which sectors in Saudi Arabia do you think are most ready for AI transformation?
In most markets, we start with safety, and Saudi Arabia is no different. Safety is broad—it includes citizen safety, tourist safety, and data protection. It’s also connected to smart city initiatives, sustainable urban development, and improving the quality of life. AI can enhance public safety, optimize city operations, and even contribute to sustainable urban planning by analyzing traffic, energy consumption, and public services.

We see Saudi Arabia as a region ready to embrace AI in both governance and infrastructure, creating opportunities to deploy innovative, data-driven solutions at scale.

How does Integra City approach responsible and ethical AI deployment?
Responsible AI is critical, especially when working with governments. We strictly adhere to local regulations in every market we operate in. You can’t bring your own rules and expect a ministry or government body to adopt them.

Our solutions are adaptable. We design them to integrate seamlessly into existing government workflows and regulations. Governments are large, complex systems, and imposing a new framework without understanding local procedures can break the mechanism. So, we focus on fitting our tools into existing structures while maximizing efficiency and impact. Ethical deployment is about respecting local laws, procedures, and the operational realities of each city or country.

How do you envision AI shaping the broader business landscape in Saudi Arabia?
It’s a challenging question since Saudi Arabia is a new market for us. But looking at the broader Middle East, the region is becoming an AI hub, attracting talent, companies, and innovation. AI adoption is growing across sectors, from government services to infrastructure, and Saudi Arabia, as one of the largest and most influential countries in the region, is following this trajectory.

We expect AI to drive efficiency, innovation, and smarter decision-making across businesses and government institutions. In the near future, cities will be safer, operations more transparent, and public services more responsive—all powered by AI technologies. Saudi Arabia has the potential to become a leading example of AI-driven transformation in the region.

Noha Gad

Transforming Saudi Arabia into a global sports powerhouse is one of the key objectives of Vision 2030. The Kingdom is moving steadily towards this goal by investing heavily in leagues, mega-events, and infrastructure, such as smart stadiums, all supercharged by leading-edge artificial intelligence (AI). Between 2020 and the first quarter (Q1) of 2025, Saudi entities injected investments worth SAR $7 billion across global and local sports assets, according to the ‘Saudi Arabia Sports Business & Tech Report 2025.’ In 2024, the Saudi sports market was valued at $8.4 billion, the report showed, anticipating the market to hit $22.5 billion by 2030. 

Regarding infrastructure development, the Kingdom is establishing smart stadiums, prioritizing renovations, smart features, and sustainable designs. Smart or digital stadiums in Saudi Arabia are advanced, technology-driven sports venues designed to create sustainable, high-performance, and immersive entertainment spaces for key sports events, notably the FIFA World Cup 2034.

These stadiums are not just structures for sports but integrated digital ecosystems featuring AI-powered operations, IoT sensors, high-speed 5G connectivity, and sustainable, energy-efficient designs.

The Kingdom’s innovative, robust, and state-of-the-art stadium strategy aims to offer fans a world-class match day experience. It comprises 15 proposed stadiums across five diverse host cities, including NEOM Stadium, the 46,000-seat arena set to be built 350 meters above ground inside "The Line" in NEOM; King Salman International Stadium, Saudi Arabia’s largest stadium with a capacity of 92,000 fans; Aramco Stadium, the 800,000 square meters facility that will catalyze health and wellness programs, featuring cutting-edge technology and an integrated cooling system; and Qiddiya Coast Stadium, the multi-purpose entertainment complex planned to be completed in 2032.

A significant milestone in advancing the Saudi sports sector is HUMAIN’s recent acquisition of ai.io, a London-headquartered artificial intelligence and sports technology company, to launch HUMAIN Sport to expand access to sport and improve outcomes at every level, from grassroots participation to elite performance. Combining the capabilities of HUMAIN and ai.io, the new joint venture will deliver integrated AI platforms designed to support the Saudi sports ecosystem. These solutions will enable broader participation in sport, data-driven athlete development, enhanced performance analysis, intelligent facilities, and new forms of digital and fan engagement.

Through this acquisition, HUMAIN will leverage ai.io’s existing products, technical expertise, and global sports relationships to accelerate international expansion, while ai.io will benefit from HUMAIN’s AI infrastructure, platforms, strategic partnerships, and commercial scale to support the delivery of AI-powered sports solutions.

This transaction marks a game-changer, enabling everything from grassroots athlete discovery, where aiScout has already generated over 750 professional trials, to elite performance analytics that track movements from any smartphone video. 

Key features and technologies in smart facilities

The integration of emerging technologies promises not just smarter training and fan experiences but a blueprint for AI-driven sports excellence that could redefine global competitions. For instance, AI and data analytics can be used for predictive maintenance, optimizing crowd management, and personalizing fan experience. Meanwhile, IoT sensors are deployed to monitor everything in the facility, from seat occupancy and parking to environmental conditions, ultimately improving overall operational efficiency.

For fan engagement, advanced applications, in-seat ordering, interactive displays, and 5G connectivity are standard in smart facilities, providing a 360-degree experience. Additionally, integrated command and control centers harness AI, facial recognition, and anti-drone technologies to enhance safety.

Moreover, smart sports facilities are designed for high energy efficiency, featuring smart HVAC systems, LED lighting that adjusts to crowd density, and water-efficient systems.

Revolutionizing talent scouting 

At the heart of HUMAIN Sport's transformative potential lies aiScout, ai.io's flagship mobile application that is revolutionizing talent identification from a labor-intensive, geographically limited process to a scalable, inclusive revolution accessible to anyone with a smartphone. By enabling aspiring athletes to record and upload simple drills, such as sprints, agility tests, or sport-specific skills, the application employs advanced computer vision and machine learning algorithms to deliver instant, objective performance metrics comparable to professional-grade assessments. 

This technology eliminates the need for costly equipment or on-site scouts, generating over 750 professional trials worldwide to date and proving its efficacy in talent discovery. Beyond discovery, aiScout's data-driven insights provide coaches with predictive analytics, ranking prospects not just on raw athleticism but on trainable traits like decision-making under fatigue, customizable to Saudi sports priorities. 

HUMAIN's integration amplifies this through Arabic-language interfaces powered by ALLaM large language models, ensuring cultural relevance and reducing barriers for non-English speakers. Eventually, the platform is democratizing opportunities, increasing participation of underrepresented regions, and positioning Saudi Arabia as a blueprint for equitable, AI-fueled sports development on the global stage.

Other applications

HUMAIN Sport embeds AI across the entire sports ecosystem to enhance coaching, strategy, emerging formats like esports, and athlete wellness in ways tailored to Vision 2030 goals. In coaching and tactical preparation, ai.io's aiLab platform integrates with HUMAIN's infrastructure to simulate match scenarios, analyze opponent patterns, and refine VAR decisions with predictive accuracy.

The venture pioneers AI in esports and digital leagues, leveraging real-time AI moderation, skill-matching algorithms, and AR overlays to increase participation. Meanwhile, health and wellness applications leverage wearables and AI chatbots to deliver personalized nutrition plans, monitor mental health, and support recovery protocols.

By integrating ai.io's motion tech with HUMAIN's scale, Saudi Arabia is not just adopting AI; it is exporting a holistic model that amplifies performance, engagement, and sustainability, setting a global standard for sports evolution.

While AI innovations promise unprecedented advancements, they also introduce critical challenges that demand robust ethical frameworks to ensure equitable and sustainable integration into Saudi Arabia's sports landscape. Foremost among these is data privacy, governed by the Kingdom's Personal Data Protection Law (PDPL). AI bias poses another hurdle, as algorithms trained on historical data may inadvertently favor urban, male athletes over rural or female talents. Over-reliance on AI threatens the human essence of sports, from coaches' intuition to the thrill of unscripted plays, prompting federations to adopt hybrid models in which tech informs but does not make decisions.

Transforming Saudi Arabia into a global sports powerhouse stands as a cornerstone of Vision 2030, with the Kingdom advancing through massive investments in leagues, mega-events, and cutting-edge infrastructure.

These developments signal a broader AI revolution in sports, from talent discovery and performance analytics to immersive fan experiences and sustainable operations, positioning Saudi Arabia to lead this transformation. Smart stadiums exemplify this shift, evolving into AI-powered digital ecosystems with IoT sensors, 5G connectivity, and energy-efficient designs that redefine match-day immersion.

Kholoud Hussein 

When a UAE-born startup secures an eight-figure, all-cash acquisition from a San Francisco investor backed by one of America’s wealthiest business dynasties, it signals more than commercial success. It signals maturity in the region’s technology ecosystem.

That is precisely the case with AlgoDriven, the automotive AI data platform acquired by Emergence, whose backer, The Pritzker Organization, manages the business interests of the Pritzker family, known globally for building the Hyatt Hotels Corporation brand.

Operating in the $1.6 trillion global used car market, AlgoDriven analyzes over $25 billion worth of vehicles annually across 1,000 dealerships in 10 countries. It is also the market leader in Australia, where one in three used cars sold is processed through its technology. But the next phase of growth may be even more significant — particularly in Saudi Arabia.

As the Kingdom accelerates automotive sector digitization under Vision 2030, and as dealership groups consolidate and modernize operations, demand for transparent, AI-powered pricing infrastructure is rising sharply. For investors, the question is no longer whether the Gulf can produce scalable tech exits. It is whether companies like AlgoDriven can turn regional dominance into global category leadership — with Saudi Arabia as a strategic growth engine.

In an exclusive interview with Sharikat Mubasher, CEO Glenn Harwood discusses valuation drivers, GCC capital deployment, expansion plans in the Kingdom, and how the company plans to leverage new ownership to deepen its AI capabilities and geographic footprint.

AlgoDriven has been acquired in an eight-figure, all-cash deal by Emergence. From an investor perspective, what were the primary value drivers behind the transaction — revenue growth, recurring contracts, proprietary datasets, or market dominance?

As a starting spot, financial metrics drove value, such as revenue, revenue growth, and profitability.  Of course, there is nuance to all these metrics, and that is where things like recurring contracts, churn, team, proprietary data sets, and product quality all factor in.

Revenue has increased fivefold since your 2021 Series A. How sustainable is that growth trajectory, and what does your forward revenue visibility look like across the GCC?

Demand is still strong for our products, and as we continue to roll out more AI-driven offerings, we see that continuing.  On top of that, many of the GCC markets are growing – population is increasing, GDP growth is strong, and people continue to buy more and more cars.  While that remains the case, we expect strong revenue growth to continue.

How strategically important is Saudi Arabia within your GCC footprint, and what proportion of your future regional investment will be directed toward KSA?

KSA is very important within both our existing footprint and our growth plans.  We’ve seen significant changes in the new and used car markets in the Kingdom over the past few years, and we expect this to continue in the coming years.  We’re continuing to customise and adapt our product to suit that market, and as well as having more on the ground support for our customers their too.

What concrete expansion plans do you have for Saudi Arabia over the next 24–36 months, in terms of headcount, partnerships with major dealership groups, or product localization?

We already have a strong footprint in KSA and a solid sales pipeline of dealership groups looking to adopt our products.  We’re rolling out new features around vehicle pricing specific to the KSA market, as well as more integrations to have a deeper understanding of vehicle history in the Kingdom.  We expect our presence there to continue to grow.

Saudi Arabia is undergoing a rapid automotive sector transformation under Vision 2030. How large do you estimate the addressable market for AI-powered used car analytics in the Kingdom?

The numbers we’ve seen suggest the car sales market in the Kingdom could grow by up to another 50% by 2030 for where it is now. On top of that, the official dealers are becoming increasingly focused on the used car sector.  Based on these two factors, we anticipate exponential growth in demand for our AI products to help drive this adoption.

You analyze more than $25 billion worth of used vehicles annually. How does deeper penetration in the Saudi market enhance your data advantage and strengthen barriers to entry?

There is a real network effect from using our product. The more cars we value, the more data we accumulate, and the more accurate our valuations become.  Car dealers can also share and auction cars between them on our platform – the more dealers who adopt our solution in Saudi makes the more valuable the platform becomes for all of them.

Your early investors, including Global Ventures, Oman Technology Fund, and Oraseya Capital, have now achieved a full cash exit. What signal does this send about liquidity and exit maturity in the GCC startup ecosystem?

I think it is great to see more exits in the region, particularly from US private equity firms.  For many startups, private equity is a great opportunity to exit and provide liquidity to early investors.   I believe this is an important trend for US PE firms to look internationally for targets, especially in the region.

Under the backing of The Pritzker Organization, how do you see AlgoDriven evolving — remaining a pure data platform, or expanding into broader automotive fintech infrastructure across Saudi Arabia and the wider region?

The focus over the next few years is on doing more of what we’re already great at – doubling down on our software offerings for car dealers. Additionally, we intend to leverage their existing network to continue to grow internationally.

Kholoud Hussein 

In startup boardrooms, few numbers are quoted as frequently as run rate. It appears in investor decks, funding announcements, and growth projections. It can signal momentum or mask volatility. Yet despite its popularity, the run rate is often misunderstood.

At its core, run rate is a projection. It takes a company’s current revenue performance over a short period — typically a month or a quarter — and extrapolates it over a full year. If a startup generates $500,000 in revenue in one month, its annual run rate would be $6 million. The assumption is simple: if performance continues at the current pace, that is the revenue the company would generate over 12 months.

The appeal lies in its clarity. Run rate offers a fast snapshot of scale. For high-growth startups, particularly those in SaaS, fintech, or marketplace models, it provides a forward-looking signal that annual historical revenue cannot yet show.

But run rate is not the same as annual revenue. It is a forecast based on present conditions. And those conditions can change quickly.

Why Run Rate Became a Startup Staple

In early-stage companies, historical financial data is limited. A startup may have been generating meaningful revenue for only a few months. Investors evaluating growth potential need a metric that reflects the current trajectory rather than incomplete annual statements.

Run rate fills that gap.

For subscription-based businesses, especially SaaS startups with recurring revenue models, run rate can be particularly meaningful. Monthly Recurring Revenue (MRR) multiplied by 12 creates an Annual Recurring Revenue (ARR) run rate, offering investors a clean benchmark to compare companies at similar stages.

This comparability is one reason the run rate has become embedded in venture capital conversations. It creates a common language.

The Strategic Value of Run Rate for Startups

Beyond investor communication, run rate has operational value.

First, it forces discipline around revenue tracking. Startups that monitor run rate monthly develop a sharper understanding of sales velocity, churn, and pricing impact. If MRR increases steadily, leadership gains confidence in scaling marketing spend or expanding headcount. If it stagnates, corrective action can be taken quickly.

Second, run rate influences valuation. Many venture-backed startups are valued as a multiple of revenue, particularly ARR. A company with a $10 million run rate may command a significantly higher valuation than one at $5 million, even if both are unprofitable. In growth markets, revenue scale often outweighs short-term earnings.

Third, run rate helps in financial planning. Forecasting hiring, product development, and geographic expansion depends on predictable revenue streams. While not a guarantee, a stable run rate provides a framework for modeling cash flow scenarios.

The Risk of Misinterpretation

Despite its usefulness, run rate can be misleading when used without context.

A strong single month can inflate projections. A seasonal spike may not repeat. A one-time enterprise deal can distort averages. For startups in volatile sectors, the run rate may exaggerate stability.

This is why experienced investors look beyond the headline number. They examine revenue consistency, customer retention rates, and growth sustainability. A $12 million run rate built on stable subscriptions carries more weight than the same figure driven by sporadic transactions.

Run rate also does not account for costs. A company can show impressive revenue momentum while burning cash at an unsustainable rate. For startups, growth without efficiency can shorten the runway rather than extend it.

When Run Rate Is Most Meaningful

Run rate is most reliable when revenue is recurring, and churn is low. SaaS companies, subscription platforms, and fintech service providers benefit most from this metric. In these models, predictable cash flow strengthens the accuracy of annualized projections.

Marketplace startups can also use run rate effectively, particularly when transaction volumes show consistent upward trends. However, in cyclical industries, caution is warranted.

A Tool, Not a Guarantee

For founders, run rate should be treated as a strategic tool rather than a marketing headline.

It can help align teams around growth targets. It can signal readiness for funding rounds. It can support expansion planning. But it should always be paired with deeper metrics: gross margins, customer acquisition cost, lifetime value, and churn.

In disciplined startups, run rate becomes part of a broader financial narrative. It shows trajectory, not destiny.

To conclude, run rate endures because it answers a fundamental startup question: if we continue at this pace, how big can we become?

It offers clarity in early growth stages when historical data is thin. It translates monthly momentum into an annual scale. And in capital markets that reward speed and traction, that translation matters.

Yet the smartest founders understand its limits. Run rate reflects today’s performance extrapolated into tomorrow. It assumes continuity in a business environment defined by uncertainty.

Used wisely, run rate is a signal of momentum. Used carelessly, it becomes a projection detached from operational reality.

For startups navigating growth, the difference between those two outcomes can be decisive.

Ghada Ismail

Saudi Arabia is quietly entering a new demographic chapter. While the Kingdom remains widely known for its youthful majority—with more than 70 % of citizens under the age of 35—another segment of the population is steadily expanding: older adults. According to the General Authority for Statistics (GASTAT), about 1.7 million people aged 60 and above now live in the Kingdom, representing roughly 4.8 % of the total population in 2025. 

This shift is subtle compared with global aging trends but significant enough to influence how healthcare, social services, and digital technologies are designed and delivered. The World Health Organization and Saudi health authorities define the elderly as individuals aged 60 years or above, a demographic that is expected to grow in the decades ahead amid rising life expectancy and improvements in healthcare access. 

Across homes, clinics, and digital platforms, artificial intelligence (AI) is beginning to play a meaningful role in enhancing seniors’ quality of life, helping them remain independent, connected, safe, and engaged in ways that align with Saudi cultural values and Vision 2030 priorities.

Aging and Its Challenges

Aging often brings layered challenges. Chronic disease management, reduced mobility, memory changes, and social isolation can gradually erode independence. Traditional care systems, heavily reliant on family or institutional support, are increasingly stretched amid smaller household sizes and urban lifestyle shifts. In Saudi Arabia, these concerns are compounded by a healthcare environment preparing for the future dynamics of a longevity economy.

Yet many older Saudis are actively engaged both socially and digitally. GASTAT’s 2025 Elderly Statistics Bulletin shows that over 60 % of elderly Saudis participate actively in social events, with 63.4 % of men and 57.3 % of women reporting regular activity. Additionally, high rates of digital engagement—where about 87 % of elderly men and 78 % of elderly women use smartphones or computers—reflect a population already comfortable with basic technology. 

Wearables: Personalized, Continuous Support

One of the most visible intersections of AI and elder care is through wearables, smart devices capable of continuous monitoring and predictive analysis. These devices use machine learning to track vital signs such as heart rate, movement, sleep patterns, and irregular activity. The real value lies in algorithms that can detect deviations from personal norms and alert caregivers or family members before small issues become emergencies.

A notable Saudi startup leading innovation in this space is Me’kaaz, which has developed AI-enabled wearable solutions tailored to senior care. Rather than serving merely as emergency alerts, Me’kaaz’s technology focuses on early detection and prevention. It captures subtle changes in activity or routines that may signal emerging health problems—whether related to mobility, cardiovascular health, or daily function—helping families and clinicians intervene proactively.

Importantly, these technologies are linguistically and culturally localized for Saudi users. AI interfaces support the Arabic language and sensory cues that feel natural and respectful, ensuring seniors can interact comfortably with devices. This cultural resonance is crucial in a society that emphasizes family involvement and dignity in elder care.

AI Companions and Social Connectivity

Physical health is part of the picture, but emotional well-being is equally important. Loneliness and social isolation have been linked globally to depression and cognitive decline, particularly among seniors living alone or with limited mobility.

AI-powered digital companions are entering this space as well. These systems combine conversational capability with reminders, mental exercises, and engagement tools designed to keep elderly users mentally stimulated and socially connected. Me’kaaz and other innovators are exploring how these companions can deliver culturally relevant content, including religious and community-oriented interactions, enriching everyday life for seniors who may spend long hours alone.

Such AI companions are not a replacement for human interaction, but a supplemental presence, especially valuable for those whose families live at a distance or have demanding work schedules.

Training for an AI-Enabled Life

Technology adoption does not begin with advanced gadgets; it begins with confidence. Recognizing this, national and private initiatives in Saudi Arabia are increasingly focusing on digital literacy for older adults.

A notable example is the collaboration between Huawei Technologies and stc Group, which launched a senior-focused training program under Huawei’s global “Education for All” initiative. The program’s SmartTruck serves as a mobile digital classroom, traveling across regions of the Kingdom to deliver free, hands-on training for people aged 50 and above.

These workshops cover practical digital skills: using smartphones, accessing online services, understanding digital safety and fraud protection, and navigating AI-enabled tools. In its early phase, the initiative trained more than 2,000 seniors through over 150 workshops, underscoring strong enthusiasm among older adults for digital skill-building when instruction is accessible and age-appropriate.

While these sessions don’t teach deep AI theory, they build foundational confidence. For seniors, learning to interact safely with digital systems reduces anxiety, increases participation, and lays the groundwork for more sophisticated AI engagement, whether through telemedicine, smart wearables, or digital communities.

AI in Healthcare Systems

AI’s role is expanding beyond the home into broader healthcare delivery. Hospitals and clinics across the Kingdom are using AI tools for diagnostics, predictive analytics, and remote monitoring—beneficial for senior patients managing chronic conditions.

AI can help clinicians identify high-risk patients sooner, personalize treatment plans, and reduce unnecessary hospital visits. For seniors, this means more tailored care with less physical strain, particularly for those managing conditions like diabetes, hypertension, or cardiovascular issues.

Government entities such as the Saudi Data and Artificial Intelligence Authority are central in shaping ethical AI deployment across sectors, including healthcare. Professional bodies like the Saudi Association for AI and Healthcare are also contributing research and education frameworks to align AI adoption with clinical standards and ethical guidelines.

Cultural and Ethical Dimensions

Despite the promise, challenges persist. Not all seniors have equal access to smartphones, high-speed internet, or ongoing support, particularly in rural areas. Digital inequality remains a real barrier to the full potential of AI adoption.

Privacy concerns also loom large. AI elder-care systems rely on sensitive personal data—from biometric readings to behavior patterns—making data protection and transparency essential. Ensuring that seniors understand how their data is used and protected is particularly important in a society where privacy and family reputation are highly valued.

Cultural compatibility remains key as well. AI systems must respect Saudi social norms, language nuances, and religious practices. Solutions that feel foreign or disconnected from daily life are unlikely to gain traction, regardless of their technical sophistication.

Looking Ahead

Saudi Arabia’s broader AI ecosystem—strengthened by national strategic investments, research institutes, and innovation incentives—provides fertile ground for senior-focused technologies. Future developments are likely to include more advanced predictive care models, AI-assisted cognitive health tools, and deeper integration between home-based systems and national healthcare platforms.

Demographic data indicate that the proportion of older adults in Saudi Arabia is modest but growing. According to GASTAT’s 2025 Elderly Statistics Bulletin, people aged 60 and above currently represent about 4.8 % of the population, with men slightly outnumbering women in this age group. While still a small share, demographic trends suggest this segment will expand in the coming decades as life expectancy rises and fertility rates decline, reflecting broader global aging patterns. This gradual increase highlights the need for proactive planning, innovative care models, and policies that embrace technology while maintaining human dignity and social inclusion.

Embracing Aging with Intelligence

AI for senior citizens in Saudi Arabia is no longer a theoretical concept; it is taking shape now through wearable devices, digital engagement programs, and healthcare innovations that respect cultural values. These technologies complement family care, empower seniors to stay connected, and enhance their ability to live independent, fulfilled lives longer.

By investing in localized tech solutions, digital literacy training, and ethical AI frameworks, Saudi Arabia is fostering an environment where aging with intelligence and intention is possible. For the Kingdom’s older adults, this means accessing tools that enrich daily life—while retaining the autonomy, dignity, and social bonds that define Saudi culture.