Ghada Ismail

As the financial landscape evolves at a crazy pace, Saudi Arabia is embracing digital transformations in its banking sector. A key development is the rise of neobanks, which offer services exclusively online without physical branches, challenging the dominance of traditional banks. This article comprehensively explores the differences between neobanking and traditional banking in Saudi Arabia, examining their benefits, limitations, and impact on consumers.

What Are Neobanks and Traditional Banks?

Neobanks are financial institutions that operate entirely online. They provide services such as checking and savings accounts, loans, and payment services through mobile apps and websites. In Saudi Arabia, neobanks aim to provide a seamless user experience with minimal fees, leveraging technology for personalized services. Examples of neobanks in Saudi Arabia include STC Pay and Samba Digital.

Traditional Banks, on the other hand, have physical branches and a long-standing presence in the market. They offer a wide range of financial services, from basic banking to complex investment products. Key players in the Saudi Arabian market include Saudi National Bank, Riyad Bank, and Al Rajhi Bank.

Key Differences between Neobanks and Traditional Banks

1. Accessibility and Convenience

Neobanks: Operate fully online, which allows users to access their accounts and manage finances anytime and anywhere through mobile apps or web interfaces. This accessibility aligns with the increasing digital-savvy population in Saudi Arabia, particularly among the youth who prefer online services.

Traditional Banks: Require customers to visit physical branches for certain services, which can be inconvenient. However, many traditional banks in Saudi Arabia have also embraced digital transformation, offering mobile banking apps and online services.

2. Cost Structure

Neobanks: Typically have lower operational costs due to the absence of physical branches. As a result, they often offer lower fees or even fee-free banking. In Saudi Arabia, some neobanks offer no-fee accounts, competitive exchange rates, and reduced international transaction fees.

Traditional Banks: While they offer comprehensive services, traditional banks generally have higher fees to cover branch operations and maintenance costs. For example, fees for international transfers, ATM withdrawals, and account maintenance can be higher than those charged by neobanks.

3. Range of Services

Neobanks: Initially focused on core banking services, neobanks in Saudi Arabia are expanding their offerings to include personal loans, credit facilities, and investment products. However, their range of services is still limited compared to traditional banks.

Traditional Banks: Provide a more comprehensive suite of services, including mortgages, corporate banking, and wealth management. Saudi Arabian banks also have established relationships with government entities, which can be beneficial for customers who need government-related financial services.

4. Customer Experience and Technology

Neobanks: Leverage advanced technology to provide a streamlined, user-friendly experience. They offer features such as instant notifications, spending analysis, and budgeting tools, which appeal to tech-savvy customers.

Traditional Banks: Although they are investing in digital services, traditional banks in Saudi Arabia are often perceived as slower to adopt cutting-edge technologies. However, their emphasis on customer service through personal interaction and relationship management remains a significant advantage.

5. Security and Trust

Neobanks: Since they are relatively new, neobanks may face trust issues among older or less tech-oriented customers. However, in Saudi Arabia, neobanks are regulated by the Saudi Central Bank (SAMA), which ensures compliance with stringent security and privacy standards.

Traditional Banks: Enjoy a high level of trust due to their long-standing presence and adherence to local regulations. In Saudi Arabia, traditional banks are perceived as more secure, especially by those who prefer in-person services.

Advantages of Neobanking in Saudi Arabia

Digital Focus: With Saudi Arabia's Vision 2030 initiative emphasizing digital transformation, neobanks align with the Kingdom’s goals by promoting cashless transactions and enhancing financial inclusion.

Cost Savings: Neobanks often eliminate common banking fees, appealing to younger and cost-conscious consumers.

Quick and Easy Account Opening: Customers can open accounts online within minutes, which is particularly attractive to the youth demographic.

Advantages of Traditional Banking in Saudi Arabia

Comprehensive Services: Traditional banks provide a wide array of services, which is beneficial for customers who need access to complex financial products.

Established Trust: Many customers prefer traditional banks due to their established reputation, branch networks, and face-to-face interaction options.

Strong Government Ties: Traditional banks in Saudi Arabia often have close relationships with governmental bodies, which can be advantageous for customers requiring government-related financial services.

Challenges and Future Outlook

For Neobanks, a key challenge is gaining consumer trust. Many customers in Saudi Arabia still value the in-person support offered by traditional banks. Additionally, while neobanks are regulated by SAMA, they must continue to strengthen cybersecurity measures to protect against digital threats.

For Traditional Banks, staying competitive will require further investment in digital transformation to meet the growing demand for online services. Traditional banks must also find ways to streamline operations and reduce costs to compete with the low-fee structure of neobanks.

As Vision 2030 drives technological innovation in the financial sector, the Saudi Arabian market is likely to see increased collaboration between traditional banks and neobanks. For example, partnerships where traditional banks offer white-labeled neobanking services could become a trend, providing customers with the best of both worlds.

Neobanks and traditional banks each offer unique advantages and face distinct challenges in Saudi Arabia. The choice between the two will largely depend on individual preferences, financial needs, and comfort with digital services. As the Saudi market evolves, the coexistence of neobanks and traditional banks will likely foster a more diverse and customer-centric financial ecosystem.

Noha Gad

One of the key objectives of the Saudi Vision 2030 is to reduce the reliance on cash and promote a cashless society, transforming the way individuals manage their money and make transactions. Driven by this objective, e-wallets emerged as a revolutionary financial tool in Saudi Arabia that brought significant changes to consumer behavior.

E-wallets are rapidly becoming the preferred payment method as they offer users a seamless way to store funds, pay for goods and services, and transfer money, all through their smartphones.

Digital wallets, such as STC Pay, Mada Pay, Apple Pay, and Sadad Wallet, drive the Kingdom’s shift towards a cashless society thanks to their convenience, security, and flexibility.

The rapid increase in smartphone usage and internet penetration has been a key factor in accelerating the shift toward digital payments and e-wallets in Saudi Arabia. Additionally, the adoption of digital financial services surged as more citizens gained access to mobile devices and high-speed internet.

Impacts of e-wallet on consumer behavior in Saudi Arabia

The shift towards digital payments is not just a matter of convenience; it is fundamentally changing purchasing habits, financial management, and preferences for payment methods. 

E-wallets play a crucial role in increasing spending, driving the shift to online shopping, fueling the adoption of contactless payments, raising financial awareness and control, reducing cash dependency, and enhancing financial inclusion in Saudi Arabia.

Many e-wallet providers in Saudi Arabia offer loyalty programs, cashback, and rewards for using their services. This incentivized consumers to choose e-wallets over other payment methods, further embedding these digital tools in their daily routines.

Finally, e-wallets also impact consumer behavior by providing financial services to the unbanked or underbanked populations, contributing to achieving the Kingdom’s financial inclusion goals by enabling individuals who previously lacked access to traditional banking to participate in the digital economy, expand their financial capabilities, and improve their quality of life.

Kholoud Hussein 

Saudi Arabia is at the forefront of a digital banking revolution, driven by the rapid adoption of mobile wallets and an ambitious push toward a cashless economy. As part of Vision 2030, the Kingdom is accelerating its transition to digital payments, with mobile wallets playing a pivotal role in reshaping the financial ecosystem. With mobile wallets offering seamless payment solutions, enhanced convenience, and greater financial inclusion, Saudi Arabia is moving closer to its goal of becoming a cashless society by 2025. This article explores the rise of mobile wallets, their impact on the digital banking sector, and their future in transforming the financial landscape of Saudi Arabia.

Saudi Arabia’s Cashless Vision: The Role of Mobile Wallets

In recent years, Saudi Arabia has made significant strides in moving towards a cashless economy, a key pillar of the Vision 2030 strategy aimed at diversifying the Kingdom’s economy. The government, in partnership with financial institutions and fintech companies, has launched several initiatives to reduce reliance on cash and encourage the use of digital payment methods. One of the most significant developments in this journey has been the rise of mobile wallets, which offer consumers a convenient, secure, and efficient payment method.

According to the Saudi Central Bank (SAMA), the percentage of non-cash transactions reached 57% in 2024, up from 36% in 2019. The rapid growth of mobile wallets is a key driver behind this increase. Speaking at the 2024 Financial Sector Conference, SAMA Governor Ayman Al-Sayari highlighted the role of digital wallets, stating, “The adoption of mobile wallets is accelerating our journey towards a cashless economy, providing consumers with seamless access to financial services while enhancing financial inclusion.”

The success of mobile wallets in Saudi Arabia is also evident in the rising number of transactions made through digital platforms. A 2024 report by PwC noted that mobile wallet transactions in the Kingdom increased by 45% year-on-year, with more consumers opting for cashless solutions in their daily financial activities.

Top Mobile Wallets in Saudi Arabia: Leading the Digital Banking Revolution

Several mobile wallet apps spearhead Saudi Arabia’s transition to digital banking, offering a range of services catering to consumers and businesses. Here’s a closer look at some of the top mobile wallets in Saudi Arabia and how they are reshaping the financial landscape:

1. STC Pay: The mobile wallet app launched by Saudi Telecom Company (STC), is one of the most prominent players in Saudi Arabia’s digital banking ecosystem. Since its launch, STC Pay has grown rapidly, becoming the first Saudi fintech unicorn with over 8 million users as of 2024. The platform offers a wide range of services, including peer-to-peer transfers, bill payments, and online shopping, making it a comprehensive solution for digital payments.

In 2024, STC Pay announced a major expansion of its services, introducing international remittances in partnership with Western Union, allowing users to send money abroad seamlessly. Speaking about the company’s vision, Ahmed Al-Enizi, CEO of STC Pay, remarked, “We aim to provide a one-stop solution for all financial needs, from local payments to cross-border transfers. Our goal is to continue expanding our services and reach, making financial services more accessible to everyone.”

STC Pay’s success reflects the broader trend of consumers shifting towards mobile-first banking, where financial transactions can be completed with just a few taps on a smartphone. As more features are integrated into the platform, such as loyalty programs and savings tools, STC Pay is positioned to play a significant role in the future of digital banking in Saudi Arabia.

2. Apple Pay: The wallet has quickly become a popular payment method in Saudi Arabia, offering a secure and easy-to-use platform for making purchases. With its integration into Mada, Saudi Arabia’s national payment network, Apple Pay has gained widespread acceptance at retail outlets, restaurants, and online platforms across the Kingdom.

Apple Pay’s emphasis on security through its use of biometric authentication (Face ID and Touch ID) and tokenization has made it a trusted choice for consumers. A 2024 survey by YouGov revealed that 76% of Saudi users consider Apple Pay one of the most secure mobile payment options available. The ability to store multiple cards and use Apple Pay across various devices—iPhones, Apple Watches, and iPads—has contributed to its popularity.

In terms of expansion, Apple Pay is expected to introduce additional features such as Apple Card, a digital credit card service that could provide users with cashback incentives and better financial management tools. By offering a seamless user experience and integrating additional services, Apple Pay will likely continue to capture a significant share of the mobile wallet market in Saudi Arabia.

3. Mada Pay: The wallet, operated by Saudi Payments, is a homegrown mobile wallet solution that allows users to make contactless payments directly from their smartphones. It is fully integrated with Mada, the Kingdom’s domestic payment network, and supports payments across millions of point-of-sale (POS) terminals in Saudi Arabia.

Since its launch, Mada Pay has become an essential tool for small and medium-sized enterprises (SMEs) and retailers, facilitating quick and secure transactions without the need for physical cards. Fahad Al-Abdulkarim, CEO of Saudi Payments, spoke at Seamless KSA 2024, stating, “Mada Pay’s growth reflects the increasing demand for local, secure, and efficient payment solutions. We are committed to enhancing the platform’s functionality to support more advanced services like micro-loans and SME financing.”

Mada Pay is set to expand its services in the coming years, with plans to integrate financial management tools and budgeting features. This will allow users to track their spending, receive insights into their financial habits, and set savings goals—all within the app. By offering a comprehensive financial solution, Mada Pay aims to become a cornerstone of Saudi Arabia’s digital banking ecosystem.

4. Al Rajhi Wallet: It is one of the largest Islamic banks in the world, and has also made significant strides in digital banking through its Al Rajhi Wallet. The mobile app allows users to conduct a wide range of banking activities, including bill payments, peer-to-peer transfers, and e-commerce transactions.

In 2024, Al Rajhi Wallet introduced new features such as contactless payments through QR codes and e-vouchers, allowing customers to make payments with greater convenience. The wallet also supports Zakat and Sadaqah payments, enabling users to fulfill religious obligations seamlessly. Waleed Al-Mogbel, CEO of Al Rajhi Bank, noted, “Our focus is on providing customers with a comprehensive, Shariah-compliant digital banking experience that meets their financial needs and promotes financial inclusion.”

Looking ahead, Al Rajhi Wallet is expected to expand its offerings to include investment services and personal finance management tools, allowing users to manage their wealth directly from the app.

5. Tamara: While primarily known as a Buy Now, Pay Later (BNPL) platform, Tamara is evolving into a broader digital payments solution for e-commerce transactions. Launched in 2020, Tamara has quickly gained popularity by offering consumers the ability to split payments into interest-free installments, with over 4 million users as of 2024.

At Seamless KSA 2024, Tamara will announce its plans to integrate mobile wallet functionality into its platform, allowing users to store funds, make direct payments, and manage their finances more effectively. Abdulmajeed Alsukhan, CEO of Tamara, emphasized the company’s vision, stating, “We are committed to providing consumers with flexible and innovative payment solutions. Expanding into digital banking services will allow us to offer even greater value to our users, enhancing their shopping and financial experience.”

The Future of Mobile Wallets in Saudi Arabia

The future of mobile wallets in Saudi Arabia looks promising, with these platforms set to expand their offerings and play an even greater role in the Kingdom’s financial ecosystem. As mobile wallets continue to evolve, several trends are expected to shape their development:

1. Integration of Financial Services: Mobile wallets are expected to integrate a wider range of financial services, from loans and credit products to investment options and insurance. This will transform mobile wallets from simple payment tools into comprehensive financial management platforms, allowing users to handle all aspects of their financial lives in one place.

For instance, STC Pay has already begun offering micro-loans to users, and other platforms are expected to follow suit by introducing similar products. By providing access to credit, savings, and investment tools, mobile wallets will empower consumers with greater financial flexibility and security.

2. Expansion of Cross-Border Payments: As Saudi Arabia’s economy becomes more interconnected with the global market, mobile wallets are likely to expand their cross-border payment capabilities. Platforms like STC Pay and Tamara are already offering international remittance services, but the scope of cross-border payments is expected to grow further, providing users with faster, cheaper, and more secure ways to send money abroad.

3. Enhanced Security and Blockchain Integration: With cybersecurity being a growing concern, mobile wallet providers are expected to invest heavily in advanced security features such as blockchain technology, biometric authentication, and AI-driven fraud detection. These measures will enhance the trust and safety of mobile wallets, encouraging more users to adopt digital payment solutions.

Finally, the rise of mobile wallets in Saudi Arabia is not just transforming how people pay for goods and services; it is fundamentally reshaping the country’s entire financial ecosystem. As mobile wallets continue to expand their services, integrating financial products and offering seamless cross-border transactions, they will play an even more significant role in the digital banking landscape. With Vision 2030 as a guiding force, Saudi Arabia’s journey towards becoming a cashless society is well underway, and mobile wallets are at the heart of this transformation.

Kholoud Hussein 

Seamless KSA 2024 is at the forefront of showcasing retail tech startups that are revolutionizing the industry through AI, IoT, and blockchain technologies. As Saudi Arabia rapidly embraces Vision 2030’s economic diversification and digital transformation goals, retail tech startups are playing a critical role in reshaping how businesses engage with consumers and manage their operations. These emerging startups drive innovation across the retail ecosystem, enhance customer experiences, optimize supply chains, and improve overall efficiency.

At Seamless KSA 2024, several Saudi retail tech startups are leading the charge with AI-powered solutions that personalize the shopping experience. Startups like Sary are utilizing AI algorithms to provide smart product recommendations and predictive analytics, allowing retailers to understand consumer preferences better and anticipate demand. These solutions enable businesses to optimize inventory management and improve sales by offering tailored recommendations, ultimately boosting customer satisfaction.

Additionally, IoT is becoming an integral part of the retail landscape, as showcased by startups like Tamara. By leveraging IoT technology, Tamara is transforming how retailers track inventory, monitor supply chains, and automate warehouse operations. Real-time data from IoT sensors helps businesses reduce waste, streamline logistics, and ensure products are always available, enhancing the operational efficiency of retail businesses in Saudi Arabia.

Moreover, blockchain technology is gaining traction among retail tech startups for its ability to enhance transparency and security in transactions. Platforms like Ajar are using blockchain to build trust in digital payments and ensure the authenticity of transactions. By integrating blockchain, startups are also improving supply chain transparency, enabling consumers to trace the journey of products from source to shelf.

Seamless KSA 2024 is not only highlighting these innovative technologies but also fostering an ecosystem that encourages collaboration between startups, investors, and established retailers. By supporting the next generation of retail tech startups, the event is helping to reshape the future of retail in Saudi Arabia, driving growth, and ensuring that businesses can thrive in an increasingly digital and connected world.

Ghada Ismail

Imagine managing your finances entirely from your smartphone, with instant access to banking services at your fingertips. This is the promise of neobanking, a fresh wave of digital-only banks that are reshaping the traditional banking experience. In a world increasingly driven by technology, neobanks leverage cutting-edge innovations to offer streamlined services that prioritize convenience and accessibility.

 As Saudi Arabia embraces its Vision 2030 initiative, the Kingdom is witnessing a financial metamorphosis, with neobanks emerging as key players in this digital revolution. By blending technology with finance, these banks are not just changing how people bank—they are redefining what banking means in a rapidly evolving landscape.

While many people can easily mix up between neobanks and digital banks, there’s actually a difference between the two things. Neobanks operate entirely online without physical branches, focusing on mobile-first experiences and innovative features, while digital banks may offer online services but can also have physical branches.

Neobanking refers to the emergence of digital-only banks that operate without traditional physical branches. These banks leverage technology to offer a wide range of financial services, including account management, payments, lending, and investment options, all through mobile apps or websites. Unlike conventional banks, neobanks focus on providing streamlined, user-friendly experiences, often with lower fees and enhanced accessibility. They cater to tech-savvy consumers who prefer managing their finances online, reflecting a broader shift towards digitalization in the financial sector.

The Rise of Neobanking in Saudi Arabia

In recent years, Saudi Arabia has witnessed a significant shift in its banking landscape, driven by rapid technological advancements and a growing preference for digital financial solutions. The government’s Vision 2030 initiative aims to diversify the economy and foster innovation, creating a favorable environment for neobanks to flourish. As part of this vision, the Saudi Arabian Monetary Authority (SAMA) has introduced regulatory frameworks to support the establishment of digital banks, encouraging competition and enhancing consumer choice.

Key Players in the neobanking & digital banking space

Several neobanks and digital banks have emerged in Saudi Arabia since then, aiming to disrupt traditional banking models. Notable players include:

STC Pay: Originally a digital wallet, STC Pay has evolved into a comprehensive digital banking platform, offering users a range of services such as money transfers, payments, and investment options.

Alinma Bank: While primarily a traditional bank, Alinma has launched a digital-only platform to cater to tech-savvy customers, providing services that are quick, convenient, and accessible.

Saudi Digital Bank: This new entrant focuses solely on digital banking services, emphasizing user-friendly interfaces and innovative features tailored to the needs of a younger demographic.

Riyad Bank's Digital Services: Riyad Bank offers a range of digital banking services that cater to modern banking needs, enhancing customer experience. The bank targets a diverse customer base looking for a blend of traditional and modern banking services.

Benefits of Neobanking

Neobanks in Saudi Arabia are gaining traction for several reasons:

• Cost Efficiency: With lower operational costs than traditional banks, neobanks can offer competitive pricing, including lower fees and higher interest rates on deposits.
• Accessibility: Neobanks provide services that are easily accessible via smartphones, enabling users to manage their finances anytime, anywhere.
• Innovative Features: Many neobanks incorporate advanced technologies such as AI and data analytics to provide personalized financial insights, budgeting tools, and smart spending alerts.

Challenges Ahead

Despite the promising growth of neobanking in Saudi Arabia, several challenges remain. Regulatory compliance is a significant hurdle, as neobanks must navigate evolving regulations set by SAMA. Additionally, establishing trust among consumers accustomed to traditional banking methods is crucial. Building brand recognition and demonstrating reliability will be key factors in attracting a loyal customer base.

The Future of Neobanking in Saudi Arabia

The future of neobanking in Saudi Arabia looks promising, with continued investment in technology and innovation. As the country’s young population embraces digital solutions, neobanks are well-positioned to capitalize on this trend. Collaboration between neobanks and fintech companies can also drive further innovation, creating a dynamic ecosystem that enhances financial services.

As Saudi Arabia stands on the brink of a financial transformation, neobanks are not just a passing trend but a key force in shaping the future of banking in the Kingdom. With their focus on technology, user experience, and innovation, these digital-only institutions are meeting the demands of a modern, tech-savvy population. 

By fostering competition and enhancing consumer choice, neobanks are paving the way for a more inclusive financial ecosystem. As the landscape continues to evolve, embracing these changes will be essential for both consumers and traditional banks alike. The journey towards a fully digital banking experience is just beginning, and Saudi Arabia is poised to lead the charge into this exciting new era.

Kholoud Hussein 

As Saudi Arabia pursues its Vision 2030 goals of diversifying the economy and promoting sustainability, the intersection of e-commerce and sustainability is becoming increasingly important. The Seamless KSA 2024 event brings together retailers, e-commerce leaders, fintech innovators, and government officials to discuss the latest trends and innovations in digital commerce, with sustainability emerging as a key theme. This article explores how Saudi Arabia’s e-commerce sector embraces sustainable practices, technology's role in this transformation, and the insights shared at Seamless KSA 2024.

Sustainability in E-commerce: A Growing Priority

E-commerce has seen explosive growth in Saudi Arabia, particularly in recent years. The sector is expected to reach $30 billion by 2026, according to a 2024 report by Saudi Arabian General Investment Authority (SAGIA). However, with this rapid expansion comes increased pressure on logistics, packaging, and energy consumption, all of which have environmental implications. As a result, sustainability is becoming a priority for the Kingdom’s e-commerce industry, driven by both government initiatives and changing consumer expectations.

Minister of Commerce Majid Al-Qasabi emphasized at Seamless KSA 2024, “Sustainability is no longer an option, but a necessity. The future of e-commerce in Saudi Arabia will be shaped by how businesses integrate sustainable practices into their operations, from packaging and delivery to energy consumption and waste management.”

In line with Vision 2030, which includes ambitious environmental goals such as reducing the Kingdom’s carbon footprint, the e-commerce sector is under increasing scrutiny to adopt sustainable practices. Seamless KSA 2024 provided valuable insights into how these practices are being implemented and the technologies driving this transformation.

1. Sustainable Packaging and Waste Reduction

One of the key areas of focus in the sustainability discussion at Seamless KSA 2024 was sustainable packaging. As e-commerce orders continue to rise, so does the use of packaging materials, much of which is plastic or non-recyclable. Saudi Arabia’s e-commerce giants, including Noon and Jarir, are beginning to recognize the environmental impact of excessive packaging and are adopting eco-friendly alternatives.

During a panel discussion at Seamless KSA, Noon’s COO, Ali Kothari, remarked, “As we scale our e-commerce operations, the need for sustainable packaging becomes critical. We are actively investing in biodegradable and recyclable materials, reducing our reliance on plastic, and working with suppliers to minimize packaging waste.”

Companies are also exploring innovations such as minimalist packaging, which reduces the size and volume of materials used, and reusable packaging solutions, allowing consumers to return packaging for reuse. These efforts are aligned with Saudi Arabia’s broader environmental goals, including the Saudi Green Initiative, which aims to promote circular economy practices and reduce waste.

In a 2024 report by McKinsey & Company, it was highlighted that e-commerce businesses can reduce their carbon footprint by up to 15% through sustainable packaging solutions alone. This not only addresses environmental concerns but also meets the growing demand from eco-conscious consumers who are increasingly factoring sustainability into their purchasing decisions.

2. Optimizing Logistics and Reducing Emissions

Another critical element of sustainability in e-commerce is the optimization of logistics and delivery processes. The rise of same-day delivery and on-demand logistics has led to an increase in the number of delivery vehicles on the road, contributing to carbon emissions and traffic congestion. Seamless KSA 2024 highlighted the role of AI and big data in optimizing delivery routes, reducing fuel consumption, and minimizing the environmental impact of logistics.

According to a 2024 study by PwC, optimizing last-mile delivery operations through AI-powered route planning and electric vehicle (EV) adoption could reduce carbon emissions from e-commerce logistics by 25% in the Kingdom. Several e-commerce companies are already experimenting with electric delivery vehicles and alternative energy solutions to power their logistics networks.

STC Pay CEO Ahmed Al-Enizi spoke at the event, stating, “The future of e-commerce logistics is sustainable. By adopting electric delivery vehicles and leveraging AI to optimize delivery routes, we can not only reduce our operational costs but also significantly lower our environmental impact.”

Additionally, drone delivery is emerging as a futuristic solution for reducing emissions in last-mile delivery. Though still in the testing phase, drone delivery has the potential to revolutionize logistics in Saudi Arabia by cutting delivery times and emissions. Seamless KSA 2024 showcased several drone technology demonstrations, highlighting the potential of this technology to make e-commerce more environmentally friendly.

3. Renewable Energy Integration in E-commerce Operations

A major theme at Seamless KSA 2024 was the integration of renewable energy into e-commerce operations. As warehouses and fulfillment centers grow in size and scale, so do their energy consumption needs. To meet the demands of high-volume operations while adhering to Saudi Arabia’s environmental goals, many e-commerce companies are investing in solar power and other renewable energy sources to power their facilities.

Amazon Saudi Arabia, for example, announced at Seamless KSA 2024 that it plans to power its new fulfillment centers in Riyadh entirely with solar energy by 2026. Ronaldo Mouchawar, Vice President of Amazon MENA, said, “Sustainability is central to our operations. By integrating renewable energy into our facilities, we are not only reducing our carbon footprint but also supporting Saudi Arabia’s commitment to increasing renewable energy adoption.”

The Saudi Green Initiative, launched as part of Vision 2030, aims to increase the share of renewable energy in the Kingdom’s energy mix to 50% by 2030. E-commerce companies are aligning with this target by incorporating solar panels, energy-efficient lighting, and smart building technologies in their logistics centers, warehouses, and office spaces. These energy-efficient solutions not only reduce the environmental impact of e-commerce but also offer cost savings in the long run.

4. Promoting Circular Economy and Sustainable Consumer Behavior

Beyond operational changes, Seamless KSA 2024 also addressed the role of circular economy principles and promoting sustainable consumer behavior in the e-commerce space. A growing number of companies are introducing recycling programs, product refurbishment, and second-hand marketplaces to extend the life cycle of products and reduce waste.

For example, Mumzworld, a leading e-commerce platform for mothers and children, launched a recycling initiative that allows customers to return used baby products such as strollers and toys, which are then refurbished and resold at a discount. This not only reduces waste but also encourages consumers to participate in sustainable practices.

Hala Al-Tuwaijri, CEO of the Center for Sustainability and Waste Management, emphasized at the event, “E-commerce businesses have a responsibility to promote sustainable consumption. By adopting circular economy models and engaging consumers in recycling and reuse initiatives, we can reduce the environmental footprint of online shopping.”

Seamless KSA 2024 also highlighted the importance of educating consumers about the environmental impact of their purchasing decisions. Many companies now offer carbon-neutral or carbon-offset options at checkout, allowing customers to compensate for the carbon emissions generated by their purchases. This growing trend aligns with consumer demand for greater transparency and accountability from businesses regarding their sustainability efforts.

5. The Role of Government and Policy in Driving Sustainability

The Saudi government’s active role in promoting sustainability was a key topic at Seamless KSA 2024. Through various initiatives and regulatory frameworks, the government is encouraging e-commerce businesses to adopt sustainable practices. The Saudi Central Bank (SAMA), for instance, is working closely with fintech companies to integrate sustainable finance solutions that support environmentally conscious business practices.

In his opening remarks at Seamless KSA 2024, Mohammed Al-Jadaan, Minister of Finance, said, “The government is committed to creating a regulatory environment that encourages sustainability across all sectors, including e-commerce. By incentivizing companies to adopt green technologies and sustainable practices, we are ensuring that economic growth goes hand in hand with environmental stewardship.”

The National Renewable Energy Program (NREP), launched as part of Vision 2030, also plays a key role in the e-commerce sector’s transition to sustainability. The program encourages private companies to invest in renewable energy solutions and provides financial incentives for businesses that adopt sustainable energy practices.

Looking Ahead: The Future of Sustainability in Saudi E-commerce

The discussions and innovations showcased at Seamless KSA 2024 indicate that sustainability is no longer a peripheral concern for Saudi Arabia’s e-commerce sector. It is becoming a core component of business strategy, driven by both government initiatives and consumer demand. As Saudi Arabia continues to lead the MENA region in e-commerce growth, the integration of sustainable practices will be essential in ensuring the long-term success and resilience of the industry.

Technology as a Catalyst for Sustainable E-commerce

The role of technology, particularly AI, IoT, and blockchain, will be critical in accelerating the transition to sustainable e-commerce. These technologies are already being used to optimize supply chains, reduce emissions, and provide greater transparency in product sourcing and delivery. As these technologies continue to evolve, they will offer even more opportunities for e-commerce businesses to reduce their environmental impact and improve efficiency.

Consumer Demand for Sustainability

As eco-conscious consumers become a larger share of the market, businesses will need to meet their expectations by offering sustainable products, transparent supply chains, and environmentally friendly options. Companies that fail to address sustainability may face increasing pressure from both consumers and regulators, making it

Noha Gad

Saudi Arabia has emerged as a burgeoning hub for financial technology (fintech) in the Middle East in recent years, driven by Vision 2030's ambitious goals of diversifying the national economy and modernizing the financial sector. With a rapidly growing digital infrastructure and a youthful population eager to embrace digital solutions, the Kingdom positioned itself as a leader in fintech innovation. 

At the forefront of this transformation is UmrahCash, a pioneering fintech company specializing in streamlining financial services for pilgrims, notably those coming from emerging markets, and businesses in the Umrah sector.

Sharikat Mubasher held an interview with Founder William Phelps to discuss how UmrahCash streamlines and eases the spiritual journeys of Hajj and Umrah for travelers from developing countries, and know more about the company’s future plans and the challenges it faces to grow and expand into new markets.

What are the services that UmrahCash provides to enhance pilgrims' experience in the Kingdom?

For many pilgrims, particularly those from emerging markets, it is extremely difficult to access foreign currency. Local capital controls, FX scarcity, and infrastructural issues in their home countries make it almost impossible for them to raise money and pay for their trips to Saudi Arabia. UmrahCash addresses this issue by providing direct and easy access to Saudi Riyals for pilgrims upon arrival to the Kingdom. We collect local currency abroad, credit their virtual wallets on the UmrahCash app, and allow them to cash out their balance in Riyals with our agents in Mecca, Medina, and Jeddah. This process is transparent, cost-effective, and secure. There is no risk of middlemen, volatile currency rates, or transporting large volumes of physical cash; the entire exchange process is handled within the UmrahCash platform. This way, we allow travelers to focus on the spiritual obligations of their pilgrimage, rather than worrying about how they will pay for it.

What are UmrahCash’s plans to expand its presence in the region? And how the recently secured $500,000 investment could fuel these plans?

Given the complexity and sensitivity surrounding Hajj and Umrah, we are expanding slowly and purposefully. A large part of our implementation surrounds financial infrastructure to ensure we’re well-placed to serve pilgrims at every level of society in ways that are comfortable and consistent with their levels of technological and financial exposure. As a result, we’re dedicating a significant portion of our recent investment to accruing licensing, technology, and infrastructure in a number of key markets. Whether mobile money, bank accounts, or virtual wallets, our vision is to consolidate a comprehensive range of solutions in one centralized platform for as many Muslims as possible.

Who are the customers that UmrahCash targets? 

Our main aim is to reduce the financial barriers associated with pilgrimage. Hence, our target market is pilgrims from emerging markets specifically those countries with capital controls, FX scarcity, and infrastructural issues preventing easy access to currency abroad. We are beginning with West Africa as our key region of focus, but view South and South East Asia as markets for expansion in the future. Ultimately, UmrahCash is designed for travelers with all levels of capital, financial, and technological knowledge; it is inclusive and welcomes all whose journeys are made easier by its infrastructure. 

Do you plan to raise more funds within the upcoming period?

Our recent investment positions us well to grow and scale over the next 6 months. As a cash flow-driven business with a lean operational structure, we can remain dynamic as we grow. With this in mind, we are looking to open a new round towards the end of the year and are keen to connect with interested investors as early as possible.

How could UmrahCash contribute to realizing Saudi Arabia’s goal of welcoming 30 million Umrah visitors annually by 2030?

In recent years, Saudi Arabia has done an excellent job of making pilgrimage as accessible as possible to Muslims around the world. Whether through direct engagement with national Hajj bodies or more general solutions such as the Nusuk app, the efforts of the Ministry of Hajj and Umrah are highly commendable. However, issues outside of the Kingdom continue to present barriers to pilgrims, namely local economic conditions and infrastructural problems. UmrahCash bridges this gap, building on the work of Saudi authorities at home whilst cutting through those local issues abroad. In doing so, we are directly making pilgrimage more accessible, allowing more Muslims to realize their ambition of visiting Mecca and Medina with fewer restrictions. 

What are the key challenges facing UmrahCash to grow in the Saudi market?

We are hopeful that we will be able to engage with and work alongside the Saudi government as our platform continues to grow. Regulation is fundamental in a business such as ours, whether viewed from the perspective of Hajj and Umrah or simply finance. It is extremely important we are able to develop alongside and under the purview of the authorities. In this respect we are hopeful, Saudi Arabia has taken great strides in clarifying large parts of its regulatory framework in a number of sectors. 

We expect finance and fintech to continue in this trend, particularly with respect to opportunities for non-residents to access financial technology. This lies at the heart of UmrahCash’s mission, and it is as much a challenge as it is an exciting opportunity.

Kholoud Hussein 

FinTech is playing a transformative role in revolutionizing SME banking in Saudi Arabia, providing small and medium enterprises (SMEs) with innovative solutions that enhance their access to capital, streamline banking services, and promote financial inclusivity. 

As the Kingdom pushes forward with its Vision 2030 initiative to diversify the economy and reduce dependency on oil, fintech innovations are enabling SMEs to grow faster and access financial resources that were once difficult to obtain.

A report by Fintech Saudi in 2024 noted that SMEs account for over 99% of all businesses in Saudi Arabia and contribute significantly to employment and economic growth. However, many SMEs have historically faced challenges in accessing traditional banking services, such as loans and credit. Fintech companies are bridging this gap by providing digital financial solutions that cater specifically to the unique needs of SMEs.

One primary way fintech is transforming SME banking is through digital lending platforms. These platforms utilize AI and big data to assess creditworthiness, enabling SMEs to secure loans with minimal paperwork and faster approval times than traditional banks. Companies like Lendo and Funding Souq are leading the charge in offering invoice financing and peer-to-peer lending, making it easier for businesses to obtain the capital they need to grow.

In addition, payment gateways and digital wallets simplify SMEs' financial transactions. Platforms like STC Pay and HyperPay provide secure and efficient payment solutions, allowing businesses to accept digital payments seamlessly. This is especially important as Saudi Arabia moves closer to becoming a cashless society.

Government-backed initiatives, such as the Saudi Central Bank's (SAMA) Regulatory Sandbox, are also helping fintech companies develop innovative SME banking solutions in a controlled environment. 

In conclusion, fintech is empowering SMEs in Saudi Arabia by offering accessible, tech-driven financial services, positioning them as a key driver of the country’s economic diversification efforts under Vision 2030.

Kholoud Hussein 

Seamless KSA 2024 is poised to be a groundbreaking event that will shape the future of digital payments in Saudi Arabia, marking a critical point in the Kingdom’s journey toward a cashless economy. Aligned with Vision 2030, the event will bring together global leaders in payments, fintech, banking, and e-commerce, offering insights into the digital transformation that is revolutionizing the financial landscape. 

This article explores how Seamless KSA 2024 will catalyze Saudi Arabia’s cashless ambitions, showcasing the latest in fintech innovation, regulatory advancements, and technological breakthroughs.

Saudi Arabia’s Cashless Vision: An Overview

Saudi Arabia’s Vision 2030 is a bold initiative to transform the Kingdom into a digitally driven economy. A significant component of this transformation is the move towards a cashless society, intending to have 70% of all transactions in the Kingdom conducted via digital platforms by 2025. The government’s focus on digital payments is part of a broader strategy to foster financial inclusion, enhance convenience, and modernize financial infrastructure.

At the Financial Sector Conference 2023, Saudi Central Bank (SAMA) Governor Ayman Al-Sayari emphasized the role of digital payments in achieving economic diversification, stating, “The future of finance is digital, and our push towards a cashless society is not only about convenience but about driving innovation and ensuring that the Kingdom stays competitive in the global economy.” According to a recent report by Saudi Payments, the adoption of digital transactions increased by 40% in 2023 alone, driven by the rise of mobile wallets, contactless payments, and fintech innovations.

The Role of Seamless KSA 2024 in Shaping the Payment Ecosystem

Seamless KSA 2024 will serve as a vital platform for discussions on the future of digital payments in Saudi Arabia. The event will bring together key players from across the ecosystem, including fintech startups, global payment providers, banks, and government regulators to explore the latest trends and opportunities in digital finance.

Key Themes at Seamless KSA 2024

• Mobile Wallets and Contactless Payments: Seamless KSA 2024 will showcase the rapid growth of mobile wallets like Mada Pay, STC Pay, and Apple Pay, which have become central to the digital payment ecosystem in Saudi Arabia. According to a 2024 report by Mada, over 57% of all retail transactions in Saudi Arabia are now conducted through contactless payments, reflecting the country’s shift away from cash. Ammar Al Sulaiman, CEO of Saudi Payments, stated: “Mobile wallets have transformed the way consumers and businesses interact. Seamless payment options are now the standard, and this trend will only grow as we further integrate AI and fintech into our systems.”

• Buy Now, Pay Later (BNPL): The BNPL model has seen rapid adoption in Saudi Arabia, with platforms like Tamara and Tabby leading the charge. At Seamless KSA 2024, industry leaders will discuss how BNPL is changing consumer behavior, offering more flexibility and boosting e-commerce sales. A 2024 report by Fitch Solutions revealed that the BNPL market in Saudi Arabia grew by 67% in 2023, highlighting the increasing demand for alternative payment methods among younger, tech-savvy consumers.

• AI and Blockchain in Payment Systems: Artificial intelligence (AI) and blockchain technologies are at the forefront of payment system innovation, with Saudi fintech companies using these technologies to enhance security, speed, and transparency. Seamless KSA 2024 will delve into how AI improves fraud detection and personalized banking, while blockchain streamlines cross-border payments. At a fintech summit in early 2024, Minister of Finance Mohammed Al-Jadaan stated, “Blockchain and AI are not just buzzwords; they are reshaping the very fabric of our financial systems, offering more efficient, secure, and cost-effective ways of transacting.”

• Cross-border Payments and Financial Inclusion: With Saudi Arabia serving as a hub for international business, cross-border payments are a critical aspect of the country’s cashless vision. Seamless KSA 2024 will highlight innovations in cross-border fintech solutions, particularly those focused on reducing transaction costs and improving payment speeds. A recent report by PwC indicated that cross-border payments in Saudi Arabia increased by 30% in 2023, with fintech startups playing a key role in this growth.

Government Initiatives Driving the Cashless Vision

Saudi Arabia’s shift to a cashless society has been strongly supported by various government initiatives and regulatory frameworks. Saudi Payments, a subsidiary of SAMA, has been instrumental in rolling out digital payment systems and promoting the use of Mada, the Kingdom’s domestic payment network. As of 2024, Mada processes over 3.7 billion transactions annually, a 50% increase from the previous year.

1. The Growth of Mada and Saudi Payments

The Mada network is at the heart of Saudi Arabia’s cashless vision. With the adoption of Mada Pay and the integration of Mada with Apple Pay and Samsung Pay, the network has expanded its reach, making digital payments accessible across all retail sectors. Osama Bedaiwi, CEO of Saudi Payments, highlighted the network’s impact at a press conference in March 2024, stating, “The scalability of Mada is central to our goal of achieving 70% non-cash transactions by 2025. Our infrastructure is designed to handle the future of payments, from mobile wallets to blockchain-powered solutions.”

2. Regulatory Sandbox and Fintech Saudi

To encourage innovation, SAMA introduced the Regulatory Sandbox, allowing fintech startups to test their solutions in a controlled environment. This initiative has accelerated the growth of fintechs, particularly in the payments space, with over 30 startups participating as of 2024. Fintech Saudi, a government-backed initiative, has been instrumental in fostering a collaborative ecosystem between startups, investors, and financial institutions. Nezar Alhaidar, Managing Director of Fintech Saudi, noted, “Our goal is to create a vibrant fintech ecosystem where innovation thrives and where digital payments are the norm, not the exception.”

The Future of Saudi Arabia’s Cashless Vision

Looking ahead, Saudi Arabia is well on its way to becoming a leading hub for digital payments in the MENA region. Seamless KSA 2024 will be a pivotal event in this journey, as it brings together global and regional experts to explore the next frontier of payment technology.

Expanding Digital Infrastructure

One of the key focuses for the Kingdom is expanding its digital infrastructure to ensure that digital payments are accessible to all segments of the population, including rural areas and underserved communities. A 2024 study by McKinsey revealed that the widespread adoption of digital payments could add $15 billion to Saudi Arabia’s GDP over the next decade by increasing financial inclusion and reducing the cost of handling cash.

AI & IoT Integration

As Saudi Arabia continues to develop smart cities such as NEOM and The Red Sea Project, the integration of AI and IoT into payment systems will play a crucial role. These technologies will enable seamless payments through connected devices, further reducing the need for cash in everyday transactions.

Finally, Seamless KSA 2024 will be a defining moment for Saudi Arabia’s cashless vision, bringing together the most influential players in the digital payments and fintech ecosystems. As the Kingdom moves closer to its goal of becoming a cashless society, innovations in mobile payments, blockchain, and AI will continue to reshape the financial landscape. 

Supported by robust government initiatives and a forward-thinking regulatory framework, Saudi Arabia is poised to lead the region in digital payments and create a more inclusive, efficient, and technology-driven economy.

Kholoud Hussein 

The Seamless KSA 2024 event is set to showcase some of the most significant trends shaping the future of e-commerce in Saudi Arabia. With the Kingdom's e-commerce market projected to reach $30 billion by 2026, the event will highlight how innovative technologies and evolving consumer behavior fuel this rapid growth. Here are three key trends driving the expansion of the e-commerce sector in Saudi Arabia.

1. AI-Powered Personalization

One of the most prominent trends in Saudi e-commerce is the growing use of artificial intelligence (AI) to offer highly personalized shopping experiences. By analyzing consumer behavior and preferences, AI algorithms enable businesses to deliver tailored product recommendations and marketing strategies. Platforms like Noon and Jarir are already leveraging AI to enhance user engagement and boost conversion rates, setting the stage for even more advanced personalization in the future.

2. Seamless Digital Payments

With Saudi Arabia pushing toward a cashless economy, integrating seamless digital payment solutions is crucial to the continued growth of e-commerce. Buy Now, Pay Later (BNPL) options, mobile wallets, and contactless payments are gaining traction, offering consumers greater flexibility and convenience. These payment solutions are expected to become even more sophisticated as fintech innovations showcased at Seamless KSA 2024 take center stage.

3. Last-Mile Delivery Innovations

E-commerce success relies heavily on efficient delivery services, and last-mile delivery is a key area of focus. From drone-based deliveries to AI-powered route optimization, the industry is witnessing rapid advancements in logistics. Saudi companies are embracing these technologies to reduce delivery times and enhance customer satisfaction, providing a competitive edge in the increasingly crowded market.

As Seamless KSA 2024 highlights these trends, Saudi Arabia’s e-commerce sector is poised to grow faster, offering businesses new opportunities to innovate and meet evolving consumer demands.

Ghada Ismail

In the ever-evolving world of startups, success is often less about having a groundbreaking idea and more about the connections that pave the way for that idea to flourish. Like the roots of a tree that nourish and stabilize it, networking forms the foundation upon which entrepreneurs can build their dreams. This vital practice not only opens doors to resources and opportunities but also plays a crucial role in driving economic growth.

Networking is the unseen thread that actually connects entrepreneurs to resources, knowledge, and opportunities, making it an essential ingredient for achieving the desired impact among a crowd of competitors in multiple aspects that is going to unfold as you keep reading: 

Accessing Capital: A Key Economic Driver

Capital acquisition remains one of the key challenges for startups. According to the National Venture Capital Association, external funding is vital for nearly all new ventures. This is where networking can play a crucial role, as personal connections often lead to generating investment opportunities. Warm introductions to investors can significantly enhance a startup's ability to secure funding, transforming potential ideas into operational realities.

The economic implications are substantial. When startups successfully attract investment through networking, they create a multiplier effect within the economy. Each investment not only supports the startup but also generates employment, drives innovation, and stimulates economic activity across various sectors. This interconnectedness underscores the importance of networking as a mechanism for achieving your desired growth.

Knowledge Exchange: Fostering Innovation

Networking serves as a critical conduit for knowledge transfer among entrepreneurs. By engaging in dialogue and collaboration, startups can exchange ideas and best practices, leading to the development of new products and services. Research by the Kauffman Foundation indicates that startups actively engaged in networking are significantly more likely to introduce innovative solutions to the market.

This collaborative environment fosters a culture of continuous improvement, enhancing overall productivity and competitiveness within industries. As knowledge circulates through these networks, it not only benefits individual startups but also contributes to a more vibrant and adaptable economy.

Strategic Partnerships: Enhancing Market Position

Networking is instrumental in forming strategic partnerships that can amplify a startup's market presence. Collaborations between startups and established firms can provide access to distribution channels, technological resources, and operational efficiencies. For instance, a tech startup might partner with a larger company to leverage its established market reach, while a manufacturing venture may collaborate with research institutions to innovate new processes.

From an economic perspective, these partnerships enhance the resilience and dynamism of the business ecosystem. By facilitating cooperation and competition, networking enables startups to drive sectoral growth and adapt to shifting market demands, thus fostering a more robust economic environment.

Talent Acquisition: Building Human Capital

In addition to facilitating access to capital and knowledge, networking plays a critical role in talent acquisition. Startups often rely on personal connections to identify and recruit skilled individuals who can drive innovation and growth. By engaging with potential hires through industry events and professional platforms, startups can build a workforce that is diverse, agile, and equipped to navigate the complexities of the modern economy.

The resulting job creation not only benefits individual startups but also enhances local labor markets. As startups grow and expand, they contribute to economic stability and resilience in their communities, underscoring the importance of networking in fostering a healthy employment landscape.

Community Development: Local Economic Impact

The effects of networking extend beyond individual startups to the broader community. Engaging in networking activities often leads entrepreneurs to participate in local incubators, accelerators, and co-working spaces, which play a pivotal role in nurturing entrepreneurial ecosystems. These initiatives not only provide resources but also create a collaborative environment conducive to innovation and growth.

Local governments and economic development agencies increasingly recognize the value of networking in fostering a vibrant entrepreneurial culture. By supporting networking initiatives, they can enhance job creation, stimulate economic diversification, and promote regional economic resilience.

In an economy where startups are pivotal to innovation and growth, networking emerges as a strategic necessity. By facilitating access to capital, enabling knowledge exchange, fostering strategic partnerships, enhancing talent acquisition, and promoting community development, networking acts as a fundamental driver of growth.

For entrepreneurs, prioritizing networking is not merely a best practice; it is an essential component of a successful growth strategy. As they forge connections and cultivate relationships, startups not only enhance their own trajectories but also contribute significantly to the broader economic landscape. In this interconnected ecosystem, the maxim holds true: in addition to what one knows, who one knows is crucial for navigating the complexities of the entrepreneurial journey.

Kholoud Hussein

The proptech sector in Egypt and the GCC is experiencing rapid growth, fueled by the increasing demand for smart cities and sustainable real estate solutions. Egypt, in particular, has emerged as a hub for real estate technology, driven by government initiatives like the New Administrative Capital and urban development projects across the country.

In the GCC, countries like the UAE and Saudi Arabia invest heavily in smart city projects such as NEOM and Masdar City, accelerating the adoption of proptech to enhance planning, construction, and property management. According to a recent report, the MENA proptech market is projected to grow at a compound annual growth rate (CAGR) of 12% through 2032, indicating immense potential for startups to innovate and expand. This surge in demand provides fertile ground for programs like PROPTEX, which aim to position Egypt and the broader region as leaders in the global proptech landscape.

In an exclusive interview with Sharikat Mubasher, Bedeir Rizk, CEO of Paragon Real Estate Development, Managing Partner at ABEC (Al-Bedeir Engineering and Construction), and the visionary behind PROPTEX, delves into the groundbreaking efforts of his PropTech initiative. PROPTEX is making waves in the real estate technology landscape, not only in Egypt but also across the MENA region. As the real estate market shifts towards smart cities and sustainable technologies, PROPTEX is at the forefront, supporting startups that are driving innovation in planning, development, and property management.

Rizk discusses how PROPTEX is providing strategic investments, mentorship, and networking opportunities to proptech startups. These services enable businesses to overcome the challenges of entering an emerging and technologically driven real estate market. With global demand for proptech solutions expected to reach $89.93 billion by 2032, PROPTEX is positioning itself to support the evolution of the MENA real estate sector through cutting-edge technologies and collaborations with major players in the industry. The interview offers a comprehensive look at the program’s vision for transforming traditional real estate systems and the immense opportunities available for proptech innovation.

Can you provide an overview of the services that PROPTEX offers to startups in the PropTech space in Egypt? How do these services help accelerate their growth?

PROPTEX's comprehensive acceleration program focuses on supporting and accelerating startups working in the field of smart and sustainable cities by providing necessary strategic investments, offering networking opportunities with major real estate developers, and providing guidance and mentorship throughout various stages and over several years. 

This support contributes to building smart and sustainable cities and enhances Egypt’s position as a regional hub for innovation in proptech. These facts align with the growing global expectations for the real estate technology market, with a study by Fortune Business Insights indicating that the global market is expected to witness a compound annual growth rate of nearly 12% from 2024 to 2032, reaching approximately USD 89.93 billion by 2032. These projections offer significant opportunities for proptech companies and other businesses operating in this sector.

Mentorship is a critical part of your offering. Could you elaborate on the kind of mentorship PROPTEX provides to startups and how it enhances their business development and innovation strategies?

PROPTEX supports startups in various ways according to their needs, notably by providing assistance and guidance in developing products and services to meet market demands. The support is structured in 5 distinct phases, each lasting 3 months, with an additional 3 months recently added for the pilot launch of projects. A total of $5 million in financial support will be allocated across these five programs, with funds distributed to selected startups within each program.

Currently, the program has completed the educational phase and has moved on to the next phase, which focuses on training companies on how to engage with the market. This is part of an effort to accelerate the growth of proptech startups and expand their activities both locally and internationally.

How does PROPTEX facilitate access to investment opportunities for PropTech startups? What type of investors are you connected with, and what has been the success rate in terms of funding?

The PROPTEX program facilitates investment opportunities by connecting startups with major real estate investors both in Egypt and abroad. The program also encourages large real estate companies to support startups and provide necessary assistance in all forms. Many leading real estate firms have already expressed their willingness to invest in these startups for a stake of less than 15%. The program relies on an initial investment fund of $5 million, distributed over 5 phases. The amount of funding and the percentage of partnership are determined based on an assessment of each project's needs to ensure its success.

Given the unique challenges in the real estate and technology sectors, what specific resources or support does PROPTEX offer to help startups overcome regulatory, technical, or market-entry barriers in the MENA region?

The PROPTEX program aims to overcome the challenges it faces as a startup support program, including low awareness of the proptech sector, the absence of specialized internal departments within companies to adopt the required technological changes, the need for project continuity guarantees, and the lack of supportive work environments and limited market for sustainable projects, among other challenges facing emerging sectors like proptech.

To address these challenges, PROPTEX encourages private sector companies to collaborate and form an alliance to support startups to become the driving force of the sector. This collaboration helps reduce market entry barriers, promotes investment, and enhances the mentorship support needed by companies during their development stages. The program also directly requests the New Administrative Capital Development Company to provide a controlled environment for startups to test their technological capabilities on a limited scale, paving the way for broader trials across the country. Additionally, the program urges them to provide necessary information to support these companies.

With PropTech growing rapidly in the MENA and GCC markets, what are your plans for expanding PROPTEX’s reach and services in these regions? Are there any specific countries or areas you’re focusing on?

As part of PROPTEX's development and expansion efforts, the program aims to support and encourage startups to expand both locally and internationally, taking advantage of opportunities in the real estate tech sector, which allows them to export their services to global markets over the next fifteen years. The program is currently studying expansion opportunities in the MENA region due to its promising potential. The program emphasizes its commitment to enabling startups to serve the entire region rather than focusing solely on the Egyptian market.

Currently, PROPTEX supports 11 startups in the proptech sector, both locally and internationally. Notable among them is "Amtaar," which offers its target audience the option to purchase office space by the square meter rather than the entire unit, addressing recent issues related to purchasing power.

What role does PROPTEX play in shaping the future of real estate technology in the MENA region? How do you see the adoption of PropTech transforming the real estate market in the coming years?

Proptech is a powerful tool for enhancing the real estate sector by aiming to revolutionize traditional systems through the development of five key areas:

• Planning and Development: Improving planning processes and real estate project development.
• Building Design and Construction: Introducing modern technologies for designing and constructing buildings.
• Financial Transactions Management: Simplifying financial procedures associated with buying, selling, and leasing properties, including solutions for fractional ownership and co-ownership.
• Property Management and Operations: Enhancing methods for managing and operating properties to ensure higher efficiency.
• End-User Experience Management: Improving the end-user experience and how they interact with the property.

In this context, PROPTEX seeks to advance these areas by supporting and developing proptech startups. By providing resources, mentorship, and investment opportunities, the program helps these companies make a positive impact in each of these areas, ultimately improving the efficiency and effectiveness of the real estate sector as a whole.

In terms of business development, how does PROPTEX help startups forge partnerships with established real estate companies, government bodies, or technology firms in the region?

PROPTEX is committed to setting precise criteria for selecting startups eligible for support, ensuring they are well-prepared for graduation. The primary criterion is having a working and validated Minimum Viable Product (MVP), rather than just initial ideas. Priority will be given to startups that have progressed beyond the MVP and seed stages.

Additional criteria include having initial customer traction and generating monthly recurring revenue (MRR) and securing initial investment sources. Furthermore, the startups must operate in sustainability fields and focus on smart buildings or contribute to the smart cities development, impacting the real estate market in Egypt and the MENA region.

PROPTEX emphasizes encouraging startups to expand in this field and build lasting partnerships by highlighting their work, providing comprehensive support, and inviting them to events that connect them with established real estate companies, construction firms, engineering consultants, government entities, and other potential partners. Prominent among these events is the Cityscape competition, which PROPTEX is organizing this September. This competition provides startups with the opportunity to present their project ideas in front of leading figures in Egypt's real estate sector.

Looking ahead, what are PROPTEX’s strategic goals for growth and innovation within the next five years? How do you plan to position yourself as a leader in the PropTech ecosystem across the MENA and GCC markets?

In its future plans, PROPTEX aims to incubate 50 startups over the next five years, with a target of 10 new companies annually. The program seeks to help these startups obtain external funding from venture capitalists, establish partnerships with real estate corporations, and achieve mergers and acquisitions in both local and international markets.

Kholoud Hussein 

Artificial Intelligence (AI) is playing a pivotal role in revolutionizing e-commerce in Saudi Arabia, reshaping the way businesses operate and interact with consumers. As the Kingdom’s e-commerce market rapidly expands, projected to reach $30 billion by 2026, AI is becoming a key driver of innovation, optimizing everything from customer experiences to logistics.

One of the most visible impacts of AI is in personalization. AI-driven algorithms analyze consumer behavior, preferences, and purchase histories to provide tailored recommendations. E-commerce platforms like Noon and Jarir are leveraging AI to create more engaging and personalized shopping experiences, which has been shown to increase conversion rates and customer satisfaction. Machine learning models help e-commerce businesses predict what products a customer is likely to purchase, creating a seamless and intuitive shopping experience.

AI is also enhancing customer support through the use of chatbots and virtual assistants. These tools provide instant, 24/7 customer service, handling inquiries, solving problems, and guiding shoppers through their purchasing journey. As Saudi consumers demand faster, more responsive service, AI-driven customer support systems are helping businesses meet these expectations efficiently.

Another critical application of AI in Saudi Arabia’s e-commerce sector is in supply chain optimization. AI-powered analytics predict demand, manage inventory, and optimize delivery routes, reducing costs and ensuring faster deliveries. According to a 2024 report by PwC, companies that have integrated AI into their supply chains have seen a 15% improvement in delivery efficiency and a 20% reduction in operational costs.

As Saudi Arabia continues to embrace Vision 2030 and the digital economy, AI’s role in e-commerce will only grow. By streamlining operations and enhancing customer engagement, AI is helping Saudi e-commerce businesses remain competitive in a rapidly evolving market.

Kholoud Hussein 

As the world increasingly focuses on sustainability, the concept of a circular economy—a system where resources are reused, recycled, and repurposed to minimize waste—has gained prominence. Through its ambitious Vision 2030, Saudi Arabia is actively pursuing sustainable economic growth by integrating cutting-edge technologies into its business ecosystem. In this effort, artificial intelligence (AI) is emerging as a powerful tool in supporting circular economy models. Saudi startups are at the forefront of leveraging AI to drive innovations that support resource efficiency, waste reduction, and environmental sustainability.

The Importance of the Circular Economy in Saudi Arabia

The circular economy contrasts with the traditional linear economy, which follows a "take-make-dispose" model that leads to significant waste and environmental degradation. By contrast, the circular economy emphasizes keeping resources in use for as long as possible, extracting maximum value, and regenerating products at the end of their life cycle. This model is essential for Saudi Arabia as it seeks to reduce its reliance on oil and shift towards a more diversified and sustainable economy.

Saudi Arabia is undergoing an unprecedented transformation, with NEOM, The Red Sea Project, and other mega-projects setting ambitious sustainability goals. These initiatives are pushing the Kingdom to explore innovative solutions to achieve zero waste and carbon neutrality targets. According to the World Bank’s 2024 report on sustainability in the MENA region, Saudi Arabia's transition to a circular economy could save the country billions in resource extraction costs and significantly reduce its environmental footprint.

AI: A Key Enabler of the Circular Economy

Artificial intelligence is playing a critical role in advancing circular economy models in Saudi Arabia. By automating processes, improving resource efficiency, and enabling smarter decision-making, AI technologies are helping businesses optimize their use of materials, reduce waste, and minimize environmental impact. AI-driven systems can analyze data on a large scale, helping companies identify inefficiencies in their supply chains, predict future resource needs, and create innovative solutions for reusing materials.

Hala Al-Tuwaijri, the CEO of the Saudi Green Initiative, recently remarked in an interview with Saudi Gazette, "AI will be an indispensable tool in driving sustainability efforts across the Kingdom. Whether it's optimizing energy use, managing waste more effectively, or creating new recycling technologies, AI enables us to make smarter, greener decisions."

Saudi Startups Leading the Circular Economy Revolution with AI

Several Saudi startups are making significant strides in integrating AI into circular economy solutions, offering innovative technologies that support the sustainability goals of Vision 2030.

Sadeem, a Riyadh-based environmental tech startup, is using AI-powered sensors to optimize water and waste management systems. Founded in 2017, Sadeem developed a platform that monitors wastewater systems in real-time, helping cities and businesses reduce water wastage. The platform collects and analyzes data to predict potential failures in water systems, allowing for proactive maintenance and preventing leaks that lead to massive water loss.

By utilizing machine learning algorithms, Sadeem is also able to identify patterns in water usage and waste generation, enabling cities to optimize resource allocation. As Dr. Ahmed Al-Kahtani, CTO of Sadeem, noted in a recent interview, "Our AI solutions are not only making water management more efficient but are also contributing to broader sustainability goals by reducing waste and conserving precious natural resources."

Another innovative startup is the Plastic Bank Saudi Arabia that is driving circular economy solutions is Plastic Bank Saudi Arabia, which uses AI to track plastic waste across the Kingdom. Plastic Bank operates a blockchain-based marketplace where waste collectors can trade recyclable plastics for digital tokens. These tokens are then exchanged for essential goods, creating an incentive for waste collection and recycling.

Plastic Bank employs AI algorithms to track plastic waste collection data, identify recycling bottlenecks, and optimize waste management routes. This AI-driven approach has led to a 25% increase in plastic recycling rates in areas where the startup operates. According to 2024 statistics from the Saudi Ministry of Environment, Water, and Agriculture, the Kingdom produces over 3 million tons of plastic waste annually, much of which could be recycled if more efficient systems like Plastic Bank's were implemented.

David Katz, founder of Plastic Bank, stated during an interview at the World Economic Forum in 2024, "By combining AI with blockchain, we are creating a transparent, scalable model for managing plastic waste. Our goal is to turn plastic into a currency that benefits local communities and helps build a circular economy."

Naqaa Solutions, a Jeddah-based startup, focuses on sustainable waste management by leveraging AI-powered robotics for sorting waste materials more efficiently. The company has developed an automated system that uses computer vision and AI algorithms to sort recyclable materials from general waste, significantly reducing the amount of waste that ends up in landfills. This solution is particularly valuable for Saudi Arabia, where urbanization is leading to increasing waste production.

According to Naqaa's CEO, Fahad Al-Mutairi, "Our AI-driven sorting systems have increased recycling efficiency by 40%. We believe that smart waste management is essential for achieving the goals of Vision 2030, especially as the Kingdom moves towards building sustainable cities."

Naqaa has already partnered with local municipalities and large-scale industrial players to deploy its AI-driven sorting technology, contributing to the development of zero-waste cities in Saudi Arabia.

AI and Sustainable Supply Chains: A Perfect Match for the Circular Economy

One of the most significant ways AI is advancing the circular economy is through the optimization of supply chains. In traditional linear supply chains, materials are used once and then discarded. However, in a circular economy, materials must be continuously reused, recycled, or repurposed. AI can help by improving resource tracking, predicting demand more accurately, and identifying opportunities to reuse materials.

Predictive Maintenance and Resource Efficiency

AI's ability to monitor systems in real time and predict failures before they happen is transforming industries that rely heavily on machinery and equipment. For instance, AI-based predictive maintenance tools can analyze the performance of industrial equipment, allowing businesses to reduce downtime and extend the life of machinery. This reduces the need for new materials and resources, making the entire production process more sustainable.

Aramco, Saudi Arabia's oil giant, has already begun integrating AI for predictive maintenance in its supply chains, reducing resource consumption and minimizing waste. By applying similar technologies to the manufacturing sector, Saudi startups can extend the life of products and create more sustainable supply chains that align with circular economy principles.

Circular Economy Opportunities in Saudi Arabia’s Mega Projects

Mega projects such as NEOM, The Red Sea Project, and the Green Riyadh Initiative are setting high standards for sustainability. These projects are incorporating circular economy principles from the planning stages, and AI is playing a key role in ensuring these ambitions are met.

For example, NEOM has set a target of generating 100% renewable energy and zero-waste cities. AI systems are being deployed to manage energy consumption, optimize construction materials, and monitor environmental impact. The Red Sea Project is also integrating AI into its waste management systems to ensure all waste is recycled or repurposed, contributing to the project's carbon neutrality goals.

Mansour Al-Maimani, head of sustainability at the Red Sea Development Company, recently highlighted the importance of AI: "The circular economy cannot exist without innovation, and AI is the backbone of that innovation. In projects like The Red Sea, AI enables us to make real-time decisions that reduce waste, optimize energy, and create long-term sustainability."

Overcoming Challenges: The Role of AI in Regulatory and Market Integration

While AI holds great promise for supporting the circular economy, challenges remain. The integration of AI technologies requires significant data infrastructure, a highly skilled workforce, and clear regulatory frameworks. Many startups face challenges in accessing the data needed to develop effective AI models and in navigating the complexities of Saudi Arabia’s regulatory environment.

However, the Saudi government is taking steps to address these challenges. In 2024, the Saudi Data and AI Authority (SDAIA) launched new initiatives to support startups by providing access to government data and offering grants to develop AI solutions in the sustainability sector. Additionally, SDAIA is working on establishing ethical guidelines for the use of AI in industries like waste management and resource efficiency, ensuring that AI technologies are deployed responsibly.

AI as a Catalyst for the Circular Economy

As Saudi Arabia moves towards achieving its Vision 2030 sustainability goals, AI-powered startups are playing a crucial role in driving the transition to a circular economy. From waste management and recycling to resource efficiency and predictive maintenance, AI is enabling businesses to rethink how they use materials and optimize processes for a greener future.

With continued support from the government, investment in data infrastructure, and the innovation-driven efforts of Saudi startups, AI will be a key catalyst in building a sustainable, circular economy that not only benefits the Kingdom but serves as a model for the broader region.

William Phelps

In 2023, Saudi Arabia welcomed a record-breaking 13.5 million pilgrims for both Umrah and Hajj. This was the best attended year of pilgrimage to date, reflecting the Kingdom’s ambitious Vision 2030 goals of expanding the capacity of Hajj and Umrah whilst enhancing the experience of religious visitors. 

Despite the Government’s inspiring work in this regard, however, there still remain significant financial challenges for many pilgrims from emerging markets. These issues threaten the very essence of Hajj and Umrah – spiritual equality. 

Providing swift and streamlined solutions is a fantastic opportunity to add and support the modernization of pilgrimage. As I appreciate both the significance of and the challenges associated with the journey to Mecca. The financial barriers associated with emerging markets are not limited to their business and trade with Europe and North America: they are also acutely felt in Hajj and Umrah. Pilgrims from emerging markets often encounter financial obstacles that pilgrims from wealthier nations rarely face.

In 2024, almost 100,000 Nigerian pilgrims participated in Hajj, joining millions of Muslims worldwide in the sacred observance of Arafah Day. However, Nigerian pilgrims must navigate a complicated web of currency exchange issues. Due to limited access to foreign currency in Nigeria, most pilgrims resort to buying U.S. dollars in cash before travelling, only to sell them again upon arrival in Saudi Arabia at a significant loss. This process is not only stressful and cumbersome but also introduces security risks, not to mention the financial burden. Carrying large sums of cash while abroad detracts from what should be a peaceful, spiritual experience. 

Further, digital banking platforms like Revolut, Wise, or Monzo - widely used in Europe and the U.S. - are not accessible in many emerging markets. This further exacerbates the financial divide, forcing pilgrims to navigate their journey with additional stress; their focus should be entirely on their faith.

In my experience working with Nigerian pilgrims, I have seen the frustration this financial exclusion causes. For those fortunate enough to save and plan for a core tenet of their faith, it is a tragedy to think of it as marred by financial challenges and stress.

Pilgrims from countries like Pakistan, Bangladesh, and other emerging markets face similar challenges. This isn’t just an inconvenience - it risks creating a two-tiered pilgrimage experience, where the quality of a pilgrim’s journey is dictated by their financial means and country of origin.

Establishing “UmrahCash” to Bridge the Financial Divide

These challenges inspired me to launch UmrahCash, based between Jeddah and Kano in northern Nigeria. Our mission is to ensure that every pilgrim, regardless of their financial background, has access to the capital they need in a safe, secure, and seamless way. UmrahCash is not just another fintech app; it is designed to address the unique needs of pilgrims from emerging markets. Our platform caters to individuals with varying levels of financial and technological literacy, ensuring that both the banked and unbanked can participate in pilgrimage without financial stress.

With UmrahCash, we’ve simplified currency exchange, allowing pilgrims to convert their home currency directly to Saudi Riyals, eliminating the need to carry large amounts of cash. Starting in northern Nigeria, we’ve built a vetted network of agents who offer local language support and personalized assistance. Most importantly, we’ve created a platform that fosters trust and transparency, removing the risks associated with existing currency exchange methods.

Our goal is to empower pilgrims from emerging markets with the financial tools they need to focus on their spiritual journey, free from the worries of financial management. As such, we leveraged cutting-edge technology on the backend to streamline currency exchange and ensure that all financial transactions are secure, and efficient. We paired this with an easy-to-use front-end app that is accessible to users of all technical skill levels and backgrounds. 

A Path Forward for All Pilgrims

The significant growth in international Umrah pilgrims - 26.9 million in total in 2023, with the majority hailing from emerging markets - underscores the urgent need for inclusive financial solutions. Saudi Arabia’s Vision 2030 has laid the groundwork for innovation, with over $1.3 billion invested in developing infrastructure at the holy sites. But while infrastructure development is crucial, it’s only part of the solution. We must also address the financial barriers that prevent many pilgrims from fully engaging in their spiritual journey.

At UmrahCash, we believe that Umrah should be a unifying experience for all Muslims and are committed to bridging this financial divide, ensuring that all pilgrims, no matter their country of origin or economic status, can participate in the sacred journey to Mecca with peace of mind and spiritual fulfillment.

William Phelps is the founder of the “UmrahCash” application. 

Kholoud Hussein 

Artificial Intelligence (AI) is pivotal in transforming Saudi Arabia’s fintech sector, helping startups emerge as leaders in the region’s financial revolution. With the Kingdom’s ambitious Vision 2030 initiative aiming to diversify the economy and enhance digital transformation, fintech startups are leveraging AI to drive innovation in digital payments, financial inclusion, and customer experience.

One of the most impactful applications of AI in fintech is its ability to provide personalized financial services. By analyzing vast amounts of customer data, AI allows startups to offer tailored products and services that meet individual needs. From customized banking solutions to real-time financial advice, these technologies enhance customer engagement and satisfaction. Saudi fintech startups like STC Pay are already integrating AI to create seamless digital wallets, facilitating fast and secure payments across the Kingdom.

AI is also making significant strides in improving fraud detection and cybersecurity. With the rise of digital transactions, the need for robust security systems has become paramount. AI-powered algorithms can detect suspicious activities in real time, significantly reducing the risk of fraud. This helps fintech startups build trust with customers and regulators, a critical factor in driving growth in the sector.

Moreover, AI is democratizing access to financial services, particularly for underbanked communities. By using AI to analyze alternative data sources, such as mobile transactions and utility payments, fintech startups are offering microloans and credit scoring services to individuals who lack traditional credit histories.

As Saudi fintech startups continue to harness AI’s capabilities, they are positioned to lead the fintech revolution, not only in Saudi Arabia but across the MENA region. With government support, investment, and cutting-edge technology, AI is unlocking new opportunities for growth, inclusion, and innovation in the Kingdom’s financial sector.