Kholoud Hussein 

Saudi Arabia’s startup magnetism is no longer a hypothesis; it’s measurable. In the first half of 2025, Saudi Arabia outperformed the wider MENA venture market, with startup funding up 116% year-on-year and deal activity matching that of the UAE for the first time, according to MAGNiTT’s H1 report. The financing tide is mirrored by regulatory throughput: the Ministry of Investment (MISA) issued 14,321 investment licenses in 2024—up nearly 68% year-on-year—signaling that more companies (including early-stage entrants) are choosing to plant a flag in the Kingdom. 

Perhaps the clearest indicator for founders themselves is the “Entrepreneur License”—a dedicated path for foreign startups. By mid-2025, 550 foreign startups had been licensed under this regime, a 118% jump versus mid-2024, per Monsha’at. That momentum sits alongside other founder-friendly gateways—from 100% foreign ownership in many sectors to the introduction of a Startup Visa category in 2025—lowering the friction of entry and signaling policy continuity. 

Capital as a calling card

Capital formation is a necessary condition for cross-border startup expansion, and Saudi has been deliberate in putting capital on the table. At LEAP 2025, authorities announced $14.9 billion in AI and digital deals and commitments, an umbrella under which global and regional startups can commercialize at speed. One emblematic example: U.S. AI-chip startup Groq secured a $1.5 billion commitment tied to expanding AI inference infrastructure in the Kingdom and scaling delivery from a new Dammam data center. “It’s an honor for Groq to be supporting the Kingdom’s 2030 vision,” CEO Jonathan Ross said of the partnership. 

Saudi Arabia’s broader risk capital picture is improving as well. Across MENA in H1 2025, startups raised about $2.1 billion through 334 deals—a 134% year-on-year rise—with Saudi Arabia leading the region’s funding totals, even when excluding debt. On the private-equity side, the Kingdom captured 45% of MENA’s H1 2025 PE transactions, pointing to late-stage depth that reduces exit anxiety for international founders considering relocation or market entry. 

Policy that travels well

For foreign founders, regulatory clarity matters as much as capital. Saudi’s investment regime has shifted from “if” to “how”—codifying 100% foreign ownership in many activities and streamlining licensing under MISA’s ISIC-based framework. The results show up in the pipeline: MISA’s quarterly updates highlight a brisk cadence of new permits; in Q4 2024 alone, 4,615 licenses were issued, nearly 60% more than the same quarter a year earlier. 

Two adjacent policy levers also matter for founders: premium residency and regional headquarters (RHQ). Applications for Saudi’s premium residency surpassed 40,000 between early 2024 and mid-2025, broadening the talent funnel for executives and technical leaders that foreign startups need to recruit locally. Meanwhile, the RHQ program continues to pull decision-making centers into Riyadh, with 34 additional RHQ licenses granted in Q2 2025—building a critical mass of buyers, partners, and procurement teams inside the Kingdom. 

Wide open sector doors

• AI and data infrastructure. The Groq transaction is not an outlier; it’s a signal. The Kingdom has positioned itself as an AI build-site—from hyperscale data centers to model development capacity—backed by new national champions like HUMAIN and a dense pipeline of digital infrastructure. For international AI startups, the implication is straightforward: Saudi is willing to co-invest in critical plumbing if the commercial payoff is local.

• Industrial and advanced manufacturing. Beyond software, Saudi Arabia keeps issuing industrial permits at a pace—1,346 in 2024 alone, with SR50 billion ($13.3 billion) in fresh investment—creating a market for foreign startups that sell enabling tech (vision systems, robotics, supply-chain AI, maintenance analytics) to local manufacturers. 

• Proptech and urban services. A wave of foreign proptechs is eyeing Saudi Arabia’s fast-digitizing real-estate market. UAE-born Huspy, for instance, has publicly prioritized Saudi in its expansion roadmap, citing regulatory modernization and demand for transaction-speed tools for brokers and agents. “Saudi Arabia is undergoing a major transformation in real estate… Our goal is to partner with local professionals and give them tools that help them close deals faster,” CEO Jad Antoun said, noting the company’s near-term entry plans into Riyadh. 
• Tourism and consumer platforms. With regions like Aseer receiving focused development to diversify beyond the megacity narrative, B2C and B2B2C startups in traveltech, creator-led commerce, and experience marketplaces can find “white space” beyond Tier-1 cities—valuable for foreign firms seeking first-mover brand equity. 

What foreign founders say

The confidence narrative is not just macro headlines; it’s founder-level calculus. Groq’s Ross frames Saudi as a co-builder in the AI stack, not merely a customer, emphasizing alignment with Vision 2030’s production goals rather than transactional procurement. Huspy’s Antoun points to a practical wedge: digitizing an industry that still has offline bottlenecks, using a partnership model with local professionals to localize workflows rather than impose a foreign UX. Venture investors echo this pull; as one regional funder told AGBI, Saudi Arabia is “one of the few countries in the world where you can actually see the growth,” with VC deals on track to cross $1 billion and potentially scale tenfold by 2030.

Friction points that matter

No market is turnkey, and international founders should assess Saudi Arabia’s specifics with the same rigor they would apply to the U.S., India, or the EU.

• Regulatory sequencing: While entry has eased, startups still need the right license stack (commercial registration, sectoral approvals, and—where applicable—sandbox permissions) and must align their activity with MISA’s ISIC classifications. This is navigable, but it requires a sequencing plan and local counsel. 
• Localization beyond language: Winning tends to hinge on product-market fit, not translation alone. Antoun’s comments on local agent workflows in Saudi real estate illustrate the point: foreign startups that embed local process logic (payment rails, KYC norms, fulfillment SLAs) grow faster and face less churn. 
• Talent immigration and leadership depth: New visa channels—including the Startup Visa and premium residency—reduce friction, but founders should still time senior hires around licensing milestones and RHQ decisions to avoid costly lag between strategy and presence. 
• Enterprise sales cycles: In sectors where government or large enterprises are anchor customers (such as health, education, utilities, and petrochemicals), procurement is structured, security review-heavy, and relationship-intensive. The upside is that once inside, retention can be exceptional; the downside is that proof-of-value must be unambiguous. LEAP’s deal flow shows that the door is open, but readiness is on the founder. 

The geography of opportunity

Saudi’s market is not one city: it is a set of distinct demand nodes—Riyadh for headquarters and B2B sales; Eastern Province for energy, data centers, and industrial tech; Jeddah for logistics and commerce; and fast-developing regions like Aseer for tourism, environmental tech, and outdoor economy platforms. The Dammam data center build tied to Groq underscores why East Coast proximity can be strategic for AI infrastructure and industrial IoT startups. 

RHQ policy compounds this geography. As more multinationals and unicorns set up regional headquarters in Riyadh, foreign startups get closer to procurement teams that control multi-country budgets—meaning a Saudi entry can be a GCC springboard, not a single-market detour. 

Signals in the numbers

The velocity of new company formation and licensing is widening the aperture for cross-border startups:

• Licenses: 14,321 total investment licenses in 2024; +67.7% YoY. 
• Foreign startup licenses: 550 by mid-2025; +118% YoY. 
• Industrial base: 1,346 industrial licenses in 2024; SR50B new investment; >44,000 expected new jobs. 
• Venture flow: Saudi H1 2025 startup funding +116% YoY; deal count at record H1 levels. 
• AI anchor deals: $14.9B in AI/digital commitments announced at LEAP 2025; Groq’s $1.5B Saudi commitment. 

These are not vanity metrics; they translate into contract velocity, partner density, and hiring pipelines that a seed-to-Series-B founder can actually use.

How foreign startups are entering

1) Direct incorporation with Entrepreneur License: Best for startups with product clarity and near-term revenue paths. It allows 100% ownership and straightforward compliance if your activity fits the ISIC mapping. 

2) JV or distribution through sector leaders: In sales-heavy verticals (fintech infrastructure, insuretech, defense-grade cyber, industrial AI), foreign startups often partner with a local incumbent to pass procurement gates faster while building their own entity for future scale.

3) RHQ plus operating subsidiary: For scaleups serving GCC-wide customers, anchoring leadership in Riyadh while operating tech teams in multiple cities can shorten enterprise sales cycles and centralize government engagement. The rising number of RHQ licenses signals this pattern is gaining steam.

The founder’s checklist

• Proof of local value: Be explicit about what you enable: faster approvals for banks, lower downtime in factories, shorter closing cycles for agents. Saudi customers buy outcomes, not roadmaps. (Huspy’s focus on broker productivity is illustrative.) 
• Compliance by design: Build KSA-specific workflows into the product (Arabic interfaces, e-invoicing, ZATCA rules, data residency where needed) rather than layering them as post-sale custom work.
• Talent stack: Budget early for a bilingual customer success lead and a regulatory ops specialist; they will pay for themselves by compressing the time from POC to MSA. Startup and premium residency visas expand this hiring universe. 
• Capital partnerships: Treat local funds and corporate venture arms as design partners, not just check-writers. The Groq-Aramco Digital alignment shows how strategic capital can unlock infrastructure and demand simultaneously.  

What success looks like

A sustainable Saudi play for a foreign startup usually has four features: 

(1) local problem definition (not copy-pasted from another geography

(2) embedded compliance and language support

(3) a domestic revenue base that can survive currency or geopolitical shocks elsewhere

(4) partnerships that make a Saudi presence a GCC (and eventually global) revenue engine. 

The policy regime makes this viable; the capital base makes it scalable; the customer appetite makes it repeatable.

The numbers suggest the window is open. MAGNiTT’s H1 2025 data shows Saudi’s venture engine running hotter than regional peers. MISA’s licensing pipeline continues to swell, and specialized channels—entrepreneur licensing, new visa categories, RHQ—shrink the “distance” between a foreign founder and their first Saudi purchase order. On the ground, founders are already speaking a language of execution: Groq’s Jonathan Ross emphasizes co-building, while Huspy’s Jad Antoun talks about fixing specific frictions with local partners. 

Finally, Saudi Arabia has moved from being a promising market to a working market for international startups. For founders who can anchor locally, localize deeply, and partner intelligently, the Kingdom is not just another expansion pin on the map—it’s a growth core.

Ghada Ismail

We trust AI more than we realize. It’s in our phones, suggesting what to watch, in our cars helping us navigate, and in our offices automating tasks. Soon, it will be making even bigger decisions; about healthcare, finance, and how entire cities run.

But here’s the catch: can we trust it to always be fair, safe, and responsible? That’s where AI ethics comes in.

What Exactly Is AI Ethics?

At its simplest, AI ethics is about making sure we’re using AI in ways that benefit society without causing harm. Think of it as the rulebook—or at least the compass—that keeps this powerful technology heading in the right direction.

Some of the key ideas include:

• Fairness: Making sure AI doesn’t discriminate or reinforce bias.
• Transparency: Helping people understand how decisions are made, rather than leaving it all to a “black box.”
• Privacy: Protecting personal data so it isn’t misused.
• Accountability: Being clear about who is responsible when things go wrong.
• Safety: Ensuring systems are secure, reliable, and not open to abuse.

Why It Matters Now

AI is spreading fast, and the stakes are high. A poorly designed system can deny someone a loan, overlook a qualified job candidate, or spread misinformation at scale. Without trust, the benefits of AI could be overshadowed by public fear and resistance. Getting ethics right isn’t about slowing down progress, but rather about building AI people can actually rely on.

Why This Matters for Saudi Arabia

Saudi Arabia is aiming to be one of the world’s leading AI hubs, and ethics is a key part of that journey. With the Saudi Data and AI Authority (SDAIA) leading the charge, the Kingdom is working on frameworks that balance innovation with responsibility. As AI becomes embedded in smart cities, healthcare, finance, and beyond, ensuring it is ethical and transparent will be crucial for winning trust, both locally and globally.

What’s Next

This post only scratches the surface of a big conversation. AI ethics isn’t just theory, it’s about the choices we make today that will shape how we live tomorrow. In the next article, “Building Ethical AI in Saudi Arabia: Regulation, Innovation, and Responsibility,” we’ll take a closer look at how the Kingdom is putting these principles into action, the challenges it faces, and why getting it right could define Saudi Arabia’s role in the global AI race.

Kholoud Hussein 

In the crowded and competitive world of startups, survival often depends less on how quickly a company can acquire customers and more on how effectively it can keep them. Investors, founders, and operators alike constantly ask a central question: How much is each customer really worth to the business over time? The answer lies in a single metric that has become one of the cornerstones of modern startup economics: Lifetime Value (LTV).

What is LTV? 

Lifetime Value (LTV) refers to the total revenue a company can reasonably expect from a customer throughout the duration of their relationship. In other words, it measures the economic value of each customer account, taking into consideration not just the first purchase but also repeat purchases, upgrades, cross-sells, and renewals.

The concept is particularly vital for startups, which often operate under pressure to grow quickly while managing limited capital. A strong LTV suggests that customers are sticking around and spending more, making the business more sustainable and attractive to investors.

Why Startups Can’t Afford to Ignore LTV?

For early-stage ventures, every marketing dollar counts. Startups frequently burn cash acquiring users, sometimes at unsustainable rates. Without understanding LTV, it’s easy to mistake vanity metrics (like downloads or sign-ups) for real growth.

Here’s why LTV matters so much for startups:

1. Balancing Growth with Sustainability
A startup with a high customer acquisition cost (CAC) but a low LTV is essentially losing money with every new customer. By calculating LTV, founders can determine if the business model is economically viable and if growth is truly scalable.

2. Attracting Investors
Venture capitalists and angel investors rely heavily on metrics like LTV-to-CAC ratio when evaluating startups. A strong ratio (commonly 3:1 or higher) signals that the business is not only acquiring customers efficiently but also retaining them in a way that creates long-term value.

3. Strategic Decision-Making
LTV informs everything from pricing models and marketing budgets to product development and customer service. For example, if upselling premium features largely drives a startup’s LTV, the company may focus more resources on building and marketing those features rather than chasing one-time sales.

The Role of LTV in Startup Growth Models

1. SaaS and Subscription Startups
For SaaS businesses, LTV is central to evaluating churn rates, pricing tiers, and customer retention strategies. Even a slight improvement in retention can dramatically increase LTV, making these startups significantly more valuable.

2. E-Commerce Startups
In e-commerce, LTV guides marketing spend and customer segmentation. Companies like Amazon have thrived by maximizing customer LTV through repeat purchases, loyalty programs, and personalized recommendations. Startups in this sector can adopt similar tactics on a smaller scale.

3. Fintech and Platform Startups
For fintech or marketplace startups, LTV is not just about the revenue from one customer but often includes network effects. As users stay longer and invite others, their indirect contribution to LTV increases.

Challenges in Measuring LTV

Despite its importance, calculating LTV is not without challenges:

• Unpredictable Customer Behavior: In early stages, startups lack enough historical data to make accurate projections.
• Market Shifts: Changing regulations, competitive landscapes, or consumer preferences can affect LTV forecasts.
• Over-Optimism: Many founders fall into the trap of inflating LTV assumptions when pitching to investors, which can backfire if real numbers fall short.

LTV as a Storytelling Tool

For startups, LTV is not just a metric but a narrative device that explains why the business will survive and thrive. When a founder can confidently demonstrate that their customers stick around, spend more over time, and deliver a strong return on acquisition costs, it signals durability.

In many ways, LTV is a measure of trust: the trust customers place in the startup’s product, and the trust investors place in the startup’s future.

Lifetime Value as a Compass

For startups, Lifetime Value is both a metric and a compass. It helps founders make smarter decisions, attract the right kind of capital, and scale more responsibly. More importantly, it shifts the focus from chasing endless growth at any cost to cultivating long-term relationships with customers.

In today’s hyper-competitive environment, startups that understand and optimize LTV are the ones most likely to make the leap from surviving to thriving. It’s not just about winning customers — it’s about keeping them, nurturing them, and growing with them over the lifetime of the relationship.

Noha Gad 

E-wallets have transformed the way people handle financial transactions as they provide a seamless and safe digital alternative to cash and physical cards. These wallets consolidate various payment methods, such as credit cards, debit cards, and bank accounts, into a single, user-friendly interface, offering users a convenient experience and enabling them to make purchases, transfer money, and manage finances swiftly through their smartphones or any other connected devices. This simplification of payments has significantly boosted consumer adoption worldwide, particularly in urban communities and developing economies where mobile connectivity is widespread.

The rise of e-wallets considerably contributed to reducing dependency on cash and traditional banking infrastructure, ultimately promoting financial inclusion, especially in regions with a large unbanked population. 

There are several types of e-wallets, each catering to different user needs and technological ecosystems. In this blog, we will dive deep into the five main types of e-wallets and how they meet the evolving needs of both businesses and end-users.

Types of e-wallets

Closed wallet

Closed wallets, also known as a power wallet, operate as a preloaded account used for specific products or services within a particular transaction, often linked to the issuer’s payment gateway. Businesses and organizations often issue closed wallets to their customers for making payments exclusively within their ecosystem. Users of a closed wallet can only use the stored funds to make transactions with the wallet’s issuer.

Semi-closed wallet

This type of wallet has a limited coverage area as it is accepted only within a specific network of merchants or service providers. Merchants must agree to partner with the issuer to accept payments from a semi-closed wallet.

The semi-closed wallets allow users to make transactions at various merchant outlets and enable peer-to-peer transfers; however, they cannot be used to withdraw cash or make payments outside the specified network.

Open wallet

Open wallets are offered by banks to be used for any type of transaction. Unlike closed and semi-closed wallets, this versatile digital payment tool allows users to store funds and transact across various merchants and platforms. Both sender and receiver must have the same application installed on their devices.

Open wallets offer convenience and flexibility, enabling users to make payments at any merchant accepting digital payments via that wallet.

Crypto wallet

Crypto wallets facilitate secure transactions using cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. They store public and private keys required for initiating transactions on the blockchain network. The public key serves as an address where others can send cryptocurrency, while the private key is used to securely access and manage the stored funds.

Crypto wallets can be software-based (online or offline by using a USB stick) or hardware wallets that store the keys offline for enhanced security. Hardware wallets, also known as cold wallets, provide an extra layer of security and safety.

Internet of Things (IoT) wallets

The IoT wallets enable transactions between interconnected devices within the IoT ecosystem, allowing devices to exchange value and authenticate transactions seamlessly and securely.

This type is pivotal for various use cases, such as smart meters that facilitate automated utility payments, connected vehicles that enable in-vehicle payments, and supply chain tracking where devices interact to validate and record transactions.

Integration of emerging technologies into e-wallets

In recent years, the integration of emerging technologies, such as virtual reality (VR) and artificial intelligence (AI), has further reshaped the capabilities and user experience of e-wallets. 

AI has played a pivotal role in transforming the capabilities and user experience of e-wallets. Integrating AI tools can enhance e-wallets' security, personalization, and operational efficiency.

AI can contribute to enhancing fraud detection and prevention, providing personalized offerings, and helping users identify saving opportunities by analyzing their expenses. AI agents, virtual assistants, and chatbots are instrumental in elevating customer experience by providing 24/7 support, instantly answering queries, troubleshooting common issues, and guiding users through payment processes.

VR emerged as an innovative trend that enriches the retail and payment experience through an immersive digital environment. These technologies enable users to visualize products in virtual space and make instant purchases through their e-wallets without leaving the experience. 

VR can transform traditional e-wallet interfaces into interactive and visually rich experiences, making money management, bill payments, or fund transfers more engaging and less transactional.

Finally, e-wallets have revolutionized how consumers manage their financial transactions, offering a convenient and secure alternative to traditional cash and cards. By consolidating multiple payment methods into a single digital platform, e-wallets simplify payments and enable seamless money transfers, purchases, and financial management across diverse devices.

The integration of AI and VR into e-wallets can revolutionize social commerce and peer-to-peer payments within virtual worlds and redefine how consumers interact with e-wallets, blending convenience, security, and immersive experiences in the digital economy.

Ghada Ismail

Saudi Arabia, a nation with a historically strong savings culture but a relatively nascent public investing scene, is witnessing an undeniable shift. Propelled by the forces of Vision 2030, an overwhelmingly young and digital-native population, and a post-pandemic surge in financial literacy, automated investment platforms are breaking down the barriers to wealth management. They are offering a new generation of Saudis an accessible, affordable, and Sharia-compliant path to grow their wealth, fundamentally democratizing finance in the world’s largest oil exporter.

 Investment advice is now landing in the pockets of everyday citizens, delivered not by suited advisers, but by algorithms running on smartphones. What was once a fringe experiment in global finance has begun to carve out a place in the Kingdom’s financial landscape, marrying cutting-edge technology with a youthful, digitally fluent population. Robo-advisory is changing how Saudis imagine their financial futures: more automated, more accessible, and more aligned with local values.

What is a Robo-Advisor?

A robo-advisor is, at its core, an automated platform that provides algorithm-driven financial planning and investment management with minimal human supervision. A user answers a series of questions about their financial goals, risk tolerance, and time horizon. The algorithm then constructs and manages a diversified portfolio of exchange-traded funds (ETFs) tailored to that individual.

However, in Saudi Arabia, the algorithm must do more. It must be confined to Sharia.

The demand for Sharia-compliant investing is not a niche preference; it is a foundational requirement for the vast majority of local investors. This means the algorithms powering Saudi robo-advisors are intricately coded with specific filters. They automatically screen out companies involved in prohibited (haram) activities, such as alcohol, gambling, and conventional banking (interest-based), among others. Furthermore, they perform rigorous financial ratio analysis to ensure companies do not hold excessive debt or derive significant income from interest.

A Market Built in the Lab: Where Regulation Meets Innovation

This shift didn’t happen by accident. At the center of it is the Capital Market Authority’s FinTech Lab, a regulatory sandbox where new ideas are allowed to grow under careful watch. Here, start-ups and banks alike are testing automated portfolio-management tools with time-limited permits. The goal? To make sure investors are protected, risks are mapped, and systems are transparent before a permanent license is granted.

The approach has worked. Today, companies that once operated under experimental conditions have graduated into fully licensed capital-market institutions, cleared to advise, manage, arrange, and even hold assets. By releasing regular bulletins and tracking everything from assets under management to user demographics, the CMA ensures this growth is not just fast, but also safe.

Open Banking & Digital Adoption: Fueling the Engine

Robo-advisory thrives on data: income flows, spending habits, savings goals. Saudi Arabia’s embrace of Open Banking—first through account information sharing, then payment initiation—has created the perfect rails for these platforms to operate. With APIs powering seamless onboarding and automatic contributions, investing has become as effortless as setting up a direct debit.

This is layered on top of a society already primed for digital adoption. Mobile banking, e-wallets, and instant payments are part of everyday life. Smartphone penetration is near-universal. For a young population that already lives online, a robo-advisor isn’t a foreign tool, but a natural extension of their digital routines.

Who’s Leading the Charge?

Behind the buzz, a few names stand out as the architects of Saudi, regional, and global robo-advisory:

• Malaa Technologies: Founded in 2021, Malaa Technologies is a Saudi robo-advisory platform licensed by SAMA. It offers Sharia-compliant portfolios built from ETFs covering U.S. stocks, Saudi stocks, gold, and bonds, with investment entry starting at SAR 1,000. The platform uses algorithms to match portfolios to each investor’s risk profile, charges low fees of 0.35% only upon withdrawal, and even handles Zakat calculations. Beyond investments, Malaa also provides expense-tracking tools and plans to expand into financing services.
• SNB Capital, part of Saudi National Bank, which has built goal-based advisory services directly into customer accounts, allowing wealth to grow almost on autopilot. Back in 2023, SNB took a leading step in digital wealth management with the launch of its Idikhari robo-advisory program, designed to make investment more accessible to everyday users. The platform uses automated financial planning tools to create personalized portfolios based on an individual’s risk profile, goals, and time horizon, while keeping the process simple and Shariah-compliant. By integrating advanced algorithms with SNB’s banking ecosystem, Idikhari not only lowers barriers to entry for first-time investors but also supports the Kingdom’s Vision 2030 agenda of boosting financial literacy and expanding participation in capital markets.
• Derayah Financial, a homegrown pioneer, whose “Derayah Smart” platform offers Shariah-compliant portfolios with transparent fees and low entry barriers. Derayah Smart is one of the Kingdom’s earliest homegrown robo-advisory platforms, aimed at simplifying investment for both beginners and experienced investors. The service provides automated portfolio management by assessing clients’ financial goals and risk appetite, then allocating assets across global markets through diversified exchange-traded funds (ETFs). With a fully digital onboarding process and low entry requirements, Derayah Smart has helped broaden access to investment opportunities in Saudi Arabia, positioning itself as a key player in the country’s growing fintech-driven wealth management space.
• Founded in 2021, Drahim is a Saudi robo-advisor licensed by both SAMA and the CMA. It offers ten Sharia-compliant portfolios spanning sukuk, real estate, and Saudi and global stocks, with a minimum investment of SAR 1,000. Fees start at 0.25% annually, and investors can track all accounts and assets through the app, which also provides detailed financial reports.
• Abyan Capital is a Saudi robo-advisor also founded in 2021 and licensed by the CMA with a focus on long-term savings and retirement planning. It quickly grew to manage over SAR 500 million in its first year and offers three Sharia-compliant portfolios across stocks, real estate, and sukuk, primarily via ETFs. Investors can start with SAR 1,000, with a 1% annual management fee, and enjoy flexible deposits and withdrawals.
• Sarwa, the UAE-born fintech operating under a CMA permit, targets millennials with low-cost, diversified portfolios. Sarwa, which officially launched its robo-advisory platform in February 2018 under the Dubai Financial Services Authority’s Innovation Testing License, presented itself as the region’s first regulated automated investment advisor. The platform combines automated investing with human financial advice, offering diversified portfolios built with low-cost ETFs and tailored to individual risk profiles. With features such as zero-commission trading, fractional shares, and Shariah-compliant investment options, Sarwa has positioned itself as both accessible and innovative, attracting thousands of young professionals seeking simple, affordable ways to grow their wealth. Its cross-border presence also makes it a benchmark for how robo-advisory can scale across the wider MENA region.
• Tamra Capital, licensed by the Capital Market Authority, is a leading UAE-based robo-advisory firm by assets under management. Its platform offers Sharia-compliant ETFs and simplifies access to local and international funds, publishing AUM and subscriber data quarterly through the CMA.
• Vault Wealth, the UAE’s first digital private wealth app for high-net-worth individuals, blends robo-advisory with human expertise. It offers global portfolios of equities, bonds, and private markets, alongside a high-yield cash solution. Partnered with Interactive Brokers for custody, Vault also provides Sharia-compliant portfolios of equities and sukuk for ethical investors.
• Wahed Invest, a global halal robo-advisor already familiar to Muslim investors worldwide, is bringing faith-aligned investing into Saudi homes. The platform, widely recognized as the world’s first Shariah-compliant robo-advisor, has steadily grown its presence across key markets. Founded in 2015 and launching its service in the U.S. in 2017, Wahed secured a pivotal US$25 million funding round in June 2020—led by Saudi Aramco Entrepreneurship Ventures (Wa’ed)—to support its global expansion and establish a dedicated subsidiary in Saudi Arabia following regulatory approval from the CMA

Demand Side Momentum: Culture, Demographics, and Behavior

Several cultural and demographic forces are driving robo-advisory into the mainstream.

The fintech explosion is one. By 2023, Saudi Arabia had nine active robo-advisory platforms, and their growth has been breathtaking. Assets under management leapt 354% in a single year, from SAR 308 million to SAR 1.4 billion. Investors flocked in, nearly half a million of them by 2023, pushing regular, automated investments up by an astonishing 568%.

The youth factor is another. More than three-quarters of robo users fall between the ages of 20 and 40, with Riyadh, Makkah, and the Eastern Province leading adoption. This is a generation that’s digitally native, comfortable with risk, and eager for transparent, low-friction ways to build wealth.

Finally, the numbers suggest this is no passing fad. Statista projects Saudi robo-advisory assets to top US $4.29 billion by 2025, rising to over US $5 billion by 2029. Ken Research even forecasts a compound annual growth rate of nearly 48%, underlining the sheer velocity of adoption.

The Saudi Take on Robo-Advisory: Faith-Aligned, Goal-Oriented, and Hyper-Local

Saudi robo-advisors are not carbon copies of their Western counterparts. Two features set them apart.

First is Shariah compliance. Every portfolio is rigorously screened to exclude prohibited instruments or non-interest-bearing products, no non-compliant equities. Many platforms even publish endorsements from Shariah boards, ensuring investor trust.

Second is a goal-based approach. Rather than focusing on abstract benchmarks, platforms guide users through tangible milestones: saving for a wedding, buying a home, funding a child’s education, or planning retirement. Dashboards, auto-funding schedules, and risk alerts help keep users anchored to real-life aspirations.

Innovation on the Horizon

Looking ahead, Saudi robo-advisory is expected to branch into new directions. Artificial intelligence will drive personalization, tailoring portfolios to behavior and life stage. Hybrid models will blend algorithms with human advisors, catering to more complex needs such as estate planning. ESG and sustainability-focused portfolios are also on the horizon, meeting a growing demand for values-based investing. And with embedded finance, robo-advisors may soon be integrated into banking apps, e-wallets, or even telecom platforms like STC Pay, broadening reach even further.

Balancing Innovation with Investor Protection

Yet the path is not without hurdles. Regulators are pressing for more transparency around how algorithms work, how fees are charged, and how risks are communicated. Investor education campaigns are being rolled out to ensure that first-time users understand what they are signing up for.

Risks remain. Algorithms can be opaque, leaving users confused during market swings. Poorly designed questionnaires can misclassify risk tolerance, producing portfolios that don’t match real-life temperament. And because automation is so convenient, some investors disengage altogether, missing out on adjustments that require human judgment.

Competition adds another layer. With low switching costs, platforms must continuously innovate or risk losing clients to rivals.

Looking Toward 2030

By the end of this decade, success for Saudi robo-advisory will be measured not just in numbers, but in trust and resilience. It will be about how deeply retail investors are engaged, how well returns are delivered net of fees, and how faithfully Shariah compliance and transparency are upheld. Most of all, it will be about whether Saudi citizens continue to see these platforms not as novelties, but as reliable partners in building their financial futures.

Conclusion: A Saudi-Engineered Wealth Revolution

Robo-advisory in Saudi Arabia is more than a fintech trend; it is a deliberate instrument of national transformation. It brings together youthful demographics, Islamic investment values, regulatory foresight, and digital infrastructure into a uniquely Saudi model of wealth automation. What began as experimentation in a regulatory sandbox now stands ready to redefine how an entire nation saves, invests, and grows. The future of investing in the Kingdom is not just digital. It is algorithmic, values-driven, and unmistakably Saudi.

Shaimaa Ibrahim 

The global real estate industry is undergoing a profound digital transformation, redefining traditional methods of buying and selling property. This evolution has paved the way for property technology (PropTech) companies to become key catalysts for change—delivering innovative solutions that enhance user experience and streamline real estate transactions.

Among the standout players leading this shift is Huspy, a UAE-born company with a bold vision to revolutionize the home-buying journey through seamless, technology-driven experiences. Since its inception, Huspy has emerged as a prominent force in the Gulf region’s real estate innovation landscape, helping reshape the way people engage with the property market.

In this interview, we spoke with Jad Antoun, CEO and Co-founder of Huspy, to explore the company’s origins, its mission to digitize real estate, and the technology powering its growth. We also delve into Huspy’s expansion strategy—particularly its focus on the Saudi market—as well as its perspective on the future of PropTech in the region and the growing influence of artificial intelligence in shaping the next era of real estate.

How did Huspy’s journey in proptech begin in the UAE, and what are the company’s main markets today?

Huspy started in the UAE with a simple idea, to fix the inefficiencies in real estate transactions by building better infrastructure for mortgage brokers and real estate agents. In doing so, we also wanted to build a global technology brand from the region for the rest of the world.

Our early focus was on mortgages, helping brokers get approvals faster and serve their clients better. We then expanded into real estate to support agents and agencies. Today, our main markets are the UAE and Spain, with Saudi Arabia now becoming a major priority. We’re aim to be in over 10 cities by the end of the year and are working toward making Huspy the technology backbone of real estate professionals in all of our markets.

What are Huspy’s flagship tech solutions, and how do they differ from traditional offerings in the real estate industry?

We’ve built tools that give mortgage brokers and real estate agents a competitive edge and the ability to serve their clients better. On the mortgage side, brokers use Huspy’s platform to manage clients, access best-in-market interest rates, submit applications, and get fast approvals. On the real estate side, agents use our app to manage showings, negotiate offers, and coordinate with mortgage offers, all in one place. Traditionally, these processes are disconnected and manual. What makes Huspy different is that everything is integrated, built for professionals, and designed to help them close transactions faster, and earn industry-leading commissions.

What sets the real estate chatbot you recently launched apart from traditional advisory services, and what challenges did you encounter in its development and deployment?

Most chatbots in real estate have primarily been built to capture home buyer contact details. Ours is built to act more like a digital partner and accessible via WhatsApp, making it easy for customers to use. Huspy.Ai pulls from real-time market data and offering tailored answers based on user queries. We also made sure that the AI powered platform could handle the complexity of regulations and offer accurate responses in multiple languages, based on the latest information. 

What is Huspy’s current operational scale, what is the total value of real estate transactions it manages, and what are the company’s plans through the end of 2025?

Huspy currently facilitates over 7 billion dollars in real estate transactions annually. In the UAE, we’ve captured around 25 percent of the mortgage market, and 30 percent in Dubai alone. We’re live in multiple cities in Spain and entering Saudi Arabia very soon. By the end of 2025, we aim to operate in over 10 cities across Europe and the Middle East, while deepening our ecosystem of services for professionals.

Having recently raised 59 million dollars, how will this investment be utilized to support your expansion plans in European and Middle Eastern markets, particularly in Saudi Arabia?

The investment will help us scale both our product and our reach. In Europe, we’re focused on Spain and will expand into other high-volume real estate markets across the continent. In the Middle East, Saudi Arabia is a top priority. The funds will go toward hiring local teams, building country-specific features, and forming partnerships with local brokers and agencies. We’re also investing in our core technology to make our tools even more powerful for agents and brokers.

Saudi Arabia has been long on our horizon. We now believe that we are in a strong position to enter the market and succeed. The government’s recent updates on real estate rules is a positive sign, and we are excited to come to Riyadh very soon. 

Given the company’s plans to enter the Saudi market, how do you perceive the digitization of the Saudi real estate sector? What are your expansion plans in this market over the coming years?

Saudi Arabia is undergoing a major transformation in real estate. The government is supporting digitization, but many agents and brokers still rely on offline processes. That’s where we see opportunity to fix the fragmentation. Our goal is to partner with local professionals and give them tools that help them close deals faster and serve clients better. Over the next few years, we plan to onboard leading agencies, localize our tech stack, and establish Huspy as the preferred partner for real estate professionals in the Kingdom.

In your opinion, what are the most significant technological trends that will impact the future of real estate in Saudi Arabia, the UAE, and the Gulf region?

The biggest shift is happening in professional enablement. Instead of replacing agents or brokers, technology is giving them new capabilities. We’re seeing trends like automated mortgage approvals, smart agent workflows, and fully digital closing processes. There’s also growing interest in data-driven pricing tools and AI-powered property search. Markets like Saudi Arabia and the UAE are moving fast, and we believe the winners will be platforms that help professionals work more efficiently, not just faster.

How do you foresee the role of AI in reshaping the real estate markets in the UAE and Saudi Arabia in the coming years?

Real estate is the world’s largest asset class and the high-value nature of transactions means that humans will remain a crucial part of transactions. AI will become a behind-the-scenes engine for real estate professionals. It won’t replace the agent or broker, but it will support them in decision-making, personalization, and lead qualification. In markets like the UAE and Saudi Arabia, where customer expectations are rising and deal cycles can be complex, AI can help streamline everything from property recommendations to document verification. At Huspy, we’re using AI to improve agent workflows and make customer interactions smarter without losing the human connection.

What are the most prominent opportunities for entrepreneurs in the proptech sector?

The biggest opportunities lie in solving pain points for real estate professionals. That could be building tools for pricing, analytics, financing, or transaction management. There’s also room to innovate in underserved segments like rentals, cross-border deals, and agent training. Additionally, entrepreneurs need to think beyond real estate, and look at related areas such as property maintenance, interior design, rentals, etc. In fast-growing markets like the GCC, founders who can combine deep local knowledge with scalable tech have a real chance to build category-defining companies. 

Kholoud Hussein

Saudi Arabia is attempting something few countries have tried at national scale: using law as a market-design tool to attract sovereign-grade data, compute, and corporate R&D while giving startups a safer, faster path to build with sensitive datasets. In April 2025, policymakers published for consultation the draft “Global AI Hub Law,” a framework that proposes special legal, technical, and governance regimes for AI “hubs” physically in the Kingdom but flexible enough to interoperate with foreign rules and hyperscaler standards. If enacted close to the draft, it could change where mission-critical AI gets trained, where high-value data sits, and where founders choose to launch. 

At its core, the draft law imagines a ladder of AI hubs, with different protection levels depending on the sensitivity of hosted data and workloads. This isn’t just about attracting cloud capacity. It’s a diplomatic and commercial instrument that enables foreign governments and multinationals to process data in Saudi Arabia under tailored arrangements while maintaining Saudi oversight.

Several legal analyses note the “beyond-borders” data sovereignty concept and the ambition to create a neutral legal environment for cross-border digital commerce and dispute resolution. In other words, Riyadh is trying to become a neutral ground for global AI compute and data flows.

Critically, the policy is not emerging in a vacuum. Over the last five years the Kingdom created supervisory institutions (notably SDAIA) and a national AI strategy; PwC estimates AI could add about $135 billion—roughly 12–12.4% of Saudi GDP—by 2030. The government has even articulated an explicit 12% GDP target for AI’s contribution. The draft Global AI Hub Law looks like the legal scaffolding to capture that upside at home rather than offshoring it. 

What the Law Proposes & Why Startups Should Care

The consultation text outlines a regime to license and govern AI hubs that can host “sovereign” or “semi-sovereign” data centers with contractual carve-outs for foreign states or firms. The point is continuity of service, clearer allocation of liability, and predictable compliance pathways for AI training and inference at scale. For startups, three implications stand out: access, trust, and time. 

• Access to premium datasets and compute: If foreign incumbents and public-sector owners are willing to warehouse sensitive data in Saudi-licensed hubs, curated data-sharing arrangements become more plausible. Startups that clear onboarding and compliance may win rights-restricted, auditable access to de-identified or synthetic derivatives of those datasets—unlocking model performance otherwise unattainable. The law’s emphasis on interoperability with external regimes could help founders sell into regulated verticals (health, finance, mobility) without re-architecting for each jurisdiction.
• Trust by design: The proposal bakes in governance, auditability, and security expectations that many enterprise buyers demand before piloting with young companies. For venture-backed founders, that reduces sales-cycle friction. It also lowers the “compliance tax” by aligning security baselines with large buyers’ requirements, potentially letting startups piggyback on the hub’s certifications rather than building redundant controls alone. 
• Time to market: If licensing and dispute-resolution are centralized and fast, contracting cycles shrink. Commentary around the draft law explicitly frames Saudi Arabia as a legal venue for AI-related disputes—signal to global players that enforcement will be practical. For founders, predictable dispute processes and choice-of-law clarity de-risk big-ticket partnerships.

The Capital and Infrastructure Backdrop: Why Timing Matters

The legal initiative dovetails with an investment super-cycle in Saudi AI infrastructure and venture capital. In 2025 the Kingdom launched HUMAIN—a state-backed AI enterprise and funder aiming to process ~7% of global AI workloads by 2030, underpinned by multi-billion-dollar compute and chip procurement plans from U.S. giants. 

This is not abstract: public reporting points to tens of billions in contracts and a roadmap for gigawatt-scale data centers. If that buildout proceeds, the country’s bottleneck won’t be GPUs so much as the rules and governance necessary to attract workloads that matter. That’s exactly the gap the Global AI Hub Law tries to fill.

On the venture side, Saudi Arabia led MENA VC in H1-2025, with roughly $860 million across 100+ deals—more than the Kingdom deployed in all of 2024—signaling both domestic and foreign appetite for Saudi tech exposure. While VC is cyclical, a legal framework that clarifies data rights, liability, and cross-border compliance could convert that financing momentum into durable product velocity for AI startups.

How Officials and Founders Are Framing the Moment

During LEAP 2025, Minister of Communications and Information Technology Abdullah Al-Swaha touted a pipeline of generative and autonomous AI applications and name-checked local companies—arguing that the Kingdom intends to be a “hub for generative AI, GenTech, and autonomous AI, powered by talent and technology.” The minister’s remarks underscore a policy mix that pairs capital with an open-for-business regulatory posture; the draft law is an institutional manifestation of that posture. 

Private-sector voices are leaning in. Intelmatix’s leadership, for example, has publicly connected recognition on the global stage with the company’s push to “push the frontiers of enterprise AI.” Founders in talent-tech and event-tech told local media in 2025 that Saudi’s ecosystem is creating unusual access to investors and customers; several described accelerated dealmaking and piloting cycles tied to the national tech agenda. Although these quotes aren’t about the law per se, they reflect a buyer’s market for startup solutions that a clear hub regime could amplify. 

From Vision 2030 to Sovereign AI

The Global AI Hub Law aligns with two strategic narratives. First, Vision 2030’s diversification thesis: national productivity gains and non-oil exports derived from data-intensive services. PwC’s long-running estimate—$135 billion in incremental GDP from AI by 2030—remains the headline figure used by both policymakers and investors to justify the spend. 

Second, the global “sovereign AI” trend: countries seeking domestic control over compute, data, and critical models. If Saudi Arabia can offer a legally neutral, operationally excellent venue for allies to compute on their data—while maintaining domestic oversight—then Riyadh becomes a node in allied AI supply chains, not just a buyer of chips. 

What Founders Should Do Now

• Design for the hub: Startups should map draft compliance requirements to their current controls: data lineage and provenance; model documentation; bias and safety testing; and incident response. The more a product can “snap into” a hub’s governance, the faster enterprise procurement will go once the regime is live. Legal analyses suggest hubs will differentiate by data sensitivity tiers; products that support tier-appropriate controls (e.g., confidential computing; KMS segregation; privacy-preserving learning) will be advantaged. 
• Target regulated verticals early: If the law lands close to the consultation version, AI work in fintech, health, logistics, and government services should be first to benefit. For example, remarks at LEAP referenced healthcare robotics and decision-intelligence deployments; hub licensing that clarifies cross-border data access could multiply such proofs of concept across providers and agencies. Founders building to these buyers should invest in audit-readiness and model cards now.
• Leverage capital-infrastructure synchronicity: HUMAIN, hyperscaler partnerships, and giga-watt build-outs create new buyer surfaces: data-center operators, sovereign cloud platforms, and national-scale integrators. Those actors will need privacy tech, tooling for model evaluation, and MLOps hardened for regulated contexts. A startup that slots into these buyers’ roadmaps can ride procurement waves—especially if it can demonstrate hub-aligned compliance artifacts. 
• Tell a compliance story investors can underwrite: VC sentiment tracks risk clarity. The MENA venture data from H1-2025 shows a return of later-stage checks; pairing product metrics with a credible plan to navigate hub rules could convert more term sheets. Investors know regulatory moats can be real moats. 

Risks, Unknowns, and the Path to Impact

This is still a draft. Key uncertainties include how “foreign legal regime” carve-outs will be validated and supervised; how liability is apportioned among hub operators, tenants, and application developers; and the duration and scope of any safe harbors for experimentation. There’s also the geopolitics of data localization: how will the regime interoperate with EU GDPR, U.S. sectoral rules, or Asian data-transfer constraints? Early commentary suggests the drafters anticipate these issues, but the proof will be in secondary regulations and intergovernmental MOUs. 

Another risk is over-reliance on physical scale—chips, megawatts, and square meters—without the human capital to operate within higher-tier hubs. Here, the government’s messaging emphasizes talent pipelines and women’s participation gains in tech (from 7% in 2018 to 35% in 2024), which, if sustained, would improve the labor supply for hub tenants and their startup suppliers. But talent competition is global, and retaining senior ML engineers is a challenge everywhere. 

Ultimately, capital cycles can shift, and oil revenue volatility can challenge public investment promises. Yet the Kingdom’s recent AI investment announcements and the creation of HUMAIN indicate a long-term, strategic posture. If the law can import external demand (sovereign datasets and foreign R&D) alongside domestic investment, revenue diversification improves the regime’s resilience. 

A Realistic Startup-Sector Outlook

If enacted with clear implementing rules and transparent licensing, the Global AI Hub Law would likely have three near-term effects on the Saudi startup landscape:

1. Bigger, earlier enterprise pilots. Ministries, SOEs, and multinationals operating in Saudi Arabia would gain a home jurisdiction to try higher-stakes models and data combinations. That shortens pilots and expands purchase orders for local startups that can meet hub standards. Founders at 2025 events already described unusual access to investors and customers—a dynamic the hub regime should amplify. 
2. Stronger founder narratives for export. A startup that survives procurement and compliance in a high-tier Saudi hub can market that pedigree abroad. For enterprise buyers, compliance is a proxy for reliability. Legal analysts observing the draft have underscored its novelty in reconciling sovereignty with interoperability—a positioning foreign buyers may find compelling. 
3. Thicker middle-layer tooling markets. Expect demand for audit, evals, red-teaming, and privacy-preserving compute to surge. These aren’t sideshows; they’re the glue that makes regulated AI stackable. Local founders who specialize here can become acquisition targets for hyperscalers and sovereign cloud providers active in the Kingdom. 

Meanwhile, venture funding momentum and marquee infrastructure commitments should keep top-of-funnel opportunities flowing. Reports through mid-2025 show the Kingdom leading regional VC by dollars and deals, while the LEAP platform is still announcing multi-billion-dollar AI commitments. If the law tightens the link between that capital and compliant, data-rich workloads, the flywheel for Saudi startups could spin faster. 

Finally, the Global AI Hub Law is not just another digital policy. It’s an operating manual for a new kind of economic zone—one organized around data sovereignty, compute intensity, and cross-border legal interoperability. For founders, it promises clearer rules, faster enterprise access, and a shot at privileged datasets—provided they build for governance from day one. 

For the Kingdom, it’s the missing legal layer that could connect ambitious infrastructure plans and generous capital with the kind of high-value AI activity that actually moves GDP. If Saudi Arabia can deliver credible licensing, transparent oversight, and trusted dispute resolution, it will not merely host the AI economy—it will help define its rules. 

Ghada Ismail

In the startup scene, raising money is rarely a straight line. Founders often find themselves between major funding milestones, needing extra capital to keep moving forward. This is where two financing tools come in: the bridge round and the extension round. While they sound similar, each serves a distinct purpose and is applied differently depending on the company’s stage and needs.

What is a Bridge Round?

A bridge round is exactly what it sounds like: a bridge. It’s temporary funding that helps a startup “cross over” to its next big milestone. For example, a startup might raise a bridge round to extend its runway until it can close a larger Series A or Series B.

These rounds often come from existing investors, who already believe in the company and want to protect their earlier investment. Sometimes, bridge rounds are structured as convertible notes or SAFE agreements, which postpone the valuation discussion until the next major funding event.

In the MENA region, several startups have turned to bridge rounds. A notable example is Kashat, the Cairo-based fintech offering nano-loans to Egypt’s unbanked population. In 2021, the startup raised $1.75 million in bridge financing, providing the short-term capital it needed to further develop its platform and expand operations before securing larger rounds. This illustrates how bridge funding can give startups in emerging markets the breathing space to strengthen their fundamentals while preparing for the next stage of growth.

What is an Extension Round?

An extension round, by contrast, is not about survival; it’s rather about momentum. In this case, a company has already raised a round, say a Series A, but wants to bring in more capital under the same terms. Instead of rushing into a higher-priced Series B, the startup simply extends its existing round, allowing new or existing investors to participate without changing the valuation.

Extensions are particularly useful when the company is performing well and sees fresh opportunities, but the timing isn’t right for a new fundraising milestone. 

For example, UAE-based cloud kitchen giant Kitopi reportedly tapped into extension rounds in its growth phase, bringing in extra firepower from new investors while keeping its valuation steady until it was ready for a much larger jump. In mid-2021, Kitopi closed a $415 million Series C funding round, led by SoftBank Vision Fund 2 with participation from other investors. Later that year—or into early 2022—the company raised an additional $300 million as a Series C extension, bringing the total size of the funding round to approximately $715 million and lifting its valuation to about $1.55 billion.

How Founders Decide Between the Two

So how does a founder know which path makes more sense—bridge or extension? It often comes down to intent.

• If the company is under pressure—perhaps revenue growth slowed, or the market turned tough—a bridge round provides short-term relief until conditions improve.
• If the company is doing well but wants to capitalize on opportunities before the next major raise, an extension round allows for flexibility without the burden of a new valuation.

Both tools have risks. A bridge round can signal distress if not managed carefully, while an extension round could dilute founders more than they’d like. Yet, when used strategically, both can be powerful instruments to keep momentum alive.

Why It Matters in MENA

The startup ecosystem in the Middle East and North Africa is still maturing. Many companies operate in fast-changing regulatory environments and fragmented markets. That means fundraising is not always as predictable as in Silicon Valley.

Bridge and extension rounds offer founders flexibility in navigating this landscape. They buy time, bring in the right investors, and allow companies to align growth with the realities of local markets. As more MENA startups scale beyond their home countries, we’re likely to see these tools used more frequently.

Wrapping Things Up…

For founders in Saudi Arabia and the broader region, the lesson is clear: not every funding story has to fit neatly into the Seed–Series A–Series B path. Sometimes, it’s about building the right bridge or extending what’s already working.

Investors, too, are becoming more open to these structures as they realize the unique challenges startups face in this region. Whether it’s a Saudi fintech waiting on central bank licensing or an Egyptian logistics startup expanding to Africa, bridge and extension rounds are proving to be valuable stopgaps that help startups stay on track.

In the end, the key is transparency. Founders should communicate clearly why they’re raising a bridge or extension, what the money will achieve, and how it sets the stage for the next big leap. Done right, these rounds are not a detour; they’re part of the journey.

Noha Gad 

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

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

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

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

What is dropshipping?

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

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

How to start your dropshipping business in Saudi Arabia?

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

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

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

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

Pros and Cons of a dropshipping business

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

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

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

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

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

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

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

Kholoud Hussein 

Not so long ago, businesses operated as mostly self-contained entities. Their systems, data, and processes existed in silos, rarely shared with outsiders. In today’s digital-first economy, that model looks increasingly outdated. The companies thriving today are those that not only build great products but also connect seamlessly with others through APIs.

Welcome to the API Economy — a new business paradigm where application programming interfaces (APIs) are not just technical tools but economic enablers, opening new revenue streams, fueling innovation, and reshaping entire industries.

Much like how Software-as-a-Service (SaaS) revolutionized how businesses consume software, the API Economy is transforming how companies interact, partner, and scale in the digital marketplace.

What is the API Economy?

At its simplest, an API is a digital bridge: a standardized way for two applications to communicate and exchange data. The API Economy refers to the commercial ecosystem that emerges when businesses expose or consume APIs to create value.

Think of APIs as building blocks. They allow companies to integrate payment systems, logistics services, weather data, social media feeds, or even AI models into their platforms without reinventing the wheel.

For example:

• A travel startup can integrate flight data and hotel booking APIs.
• A fintech app can connect instantly to payment gateways or identity verification services.
• An e-commerce platform can plug into logistics and delivery APIs to streamline operations.

These connections are not just technical conveniences; they’re now core to competitive strategy.

Why the API Economy Matters for Startups

For startups, APIs represent both an opportunity and a survival strategy.

1. Faster Innovation
Instead of building everything in-house, startups can use APIs to stitch together best-in-class services. This accelerates time-to-market and lets them focus on what truly differentiates their product.

2. Lower Costs
APIs eliminate the need for expensive infrastructure or proprietary solutions. A small team can launch a global app by tapping into APIs for payments, messaging, and analytics.

3. Ecosystem Leverage
Startups can integrate directly into the ecosystems of larger players. For instance, by connecting to Stripe or PayPal APIs, a startup immediately plugs into global payment networks.

4. New Revenue Streams
It’s not just about using APIs — startups can also offer APIs. By opening up their own services to third-party developers, startups can create entire ecosystems around their platforms, generating revenue and adoption simultaneously.

Examples of API-Led Transformation

• Fintech: APIs enable real-time banking, mobile wallets, and open banking models.
• E-commerce: APIs power recommendation engines, shipping integrations, and inventory syncing.
• Healthtech: Secure APIs allow hospitals and apps to exchange patient data in compliance with regulations.
• Social Media: Entire businesses are built on APIs that allow integration with Facebook, Instagram, or TikTok.

In each case, the API is not just a technical connector — it’s the business enabler that makes new models possible.

Challenges in the API Economy

Like any new paradigm, the API Economy brings risks and trade-offs:

• Security Risks: Poorly secured APIs can expose businesses to cyberattacks and data leaks.
• Dependency: Overreliance on third-party APIs can create vulnerabilities if providers change pricing, terms, or shut down services.
• Quality & Reliability: The success of a product may hinge on the stability of APIs outside the startup’s control.

Startups need clear strategies for API selection, vendor diversification, and data governance to mitigate these risks.

The Bigger Picture

The API Economy is more than a technical trend; it’s becoming the infrastructure of digital business. Just as electricity grids powered the industrial economy, APIs now power the digital one — invisible, essential, and everywhere.

For startups, the lesson is straightforward: agility and growth increasingly depend on how well you can connect, integrate, and collaborate through APIs. Those who master the API Economy are not just faster to market — they are better positioned to scale globally, innovate continuously, and embed themselves into the networks of the future.

In short, APIs are currency in the digital economy.

Kholoud Hussein 

For much of its history, artificial intelligence was an elite technology — the preserve of deep-pocketed corporations and advanced research labs. Building an AI model from the ground up required vast datasets, specialized hardware, and teams of highly skilled engineers and data scientists. For a startup working with tight budgets and even tighter timelines, AI was often an unattainable dream.

That landscape is changing fast. AI-as-a-Service (AIaaS) is rewriting the rules, allowing companies to rent advanced AI capabilities from cloud-based platforms, much as they would subscribe to software through Software-as-a-Service (SaaS). Instead of spending months — or years — developing proprietary systems, startups can plug directly into pre-trained models, scale them on demand, and pay only for the computing power and services they use.

This shift is democratizing access to one of the most transformative technologies of our time — and giving young companies a fighting chance to compete with established industry giants.

What is AI-as-a-Service?

At its core, AIaaS is the delivery of artificial intelligence functions via the cloud, on a subscription or pay-per-use basis. The services can include:

• Machine Learning Platforms for training predictive models.
• Computer Vision APIs for object detection, image recognition, and video analytics.
• Natural Language Processing (NLP) for chatbots, sentiment analysis, and language translation.
• Generative AI Tools that produce text, images, audio, or code based on user prompts.

These capabilities are offered by major cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud, as well as by specialized AI companies targeting niche needs.

For startups, the appeal is clear: instead of investing heavily in infrastructure and talent, they can integrate AI through a few lines of code and focus their limited resources on innovation, customer acquisition, and scaling.

Why AIaaS Matters for Startups

Startups thrive on speed, adaptability, and the ability to outperform their competitors. AIaaS directly supports these priorities in several ways:

1. Lower Barriers to Entry
Traditional AI development demands substantial capital, technical expertise, and time. AIaaS reduces these barriers by providing ready-made solutions that even non-technical teams can integrate into their products.

2. Faster Time-to-Market
A startup building a voice recognition feature or a fraud detection system can implement AIaaS in weeks rather than months or years, enabling them to launch features rapidly and iterate based on user feedback.

3. Scalability
AIaaS operates on flexible, cloud-based infrastructure. As a startup grows, it can scale AI usage up or down depending on demand, without worrying about costly hardware upgrades.

4. Continuous Improvement
Providers regularly update their AI models with the latest advancements, giving startups access to cutting-edge capabilities without ongoing research and development costs.

Strategic Considerations

While AIaaS offers clear advantages, startups need to approach it strategically:

• Data Privacy: Sensitive customer data must be handled in compliance with regulations, especially when processed through third-party services.
• Vendor Lock-In: Building products heavily dependent on a single provider’s ecosystem can make future transitions expensive and risky.
• Customization Limits: Off-the-shelf AI solutions may not fully address highly specific or complex problems.

Balancing the convenience of AIaaS with the need for long-term flexibility is essential to avoid costly pivots later.

The Bigger Picture

AIaaS is part of a broader trend toward the “as-a-service” economy, where complex capabilities are delivered via subscription rather than ownership. Just as SaaS made enterprise-grade software accessible to startups, AIaaS is making advanced AI tools available to companies at any stage of growth.

For early-stage ventures, this levels the playing field, enabling them to innovate at the same technological pace as far larger competitors. For more mature startups, it can accelerate entry into new markets and support rapid product diversification.

The underlying truth is simple: AI is becoming as essential to modern business as the internet was two decades ago. With AIaaS, the question is no longer whether a startup can afford to use artificial intelligence — but whether it can afford not to.

Mohammed Ramzi

The traditional savings scheme known in Egypt as the ‘Gameya’ is one of the oldest and most widely practiced saving methods among Egyptians. In this arrangement, a group of individuals each contributes a fixed sum of money on a monthly basis, with participants taking turns to receive the pooled total. Internationally, this model is referred to as a Rotating Savings and Credit Association (ROSCA).

Amid the rapid evolution of Egypt’s financial technology sector, several startups have emerged to digitize this long-standing practice, with digital platforms playing a central role in the collection and periodic disbursement of funds.

Among these innovators, Money Fellows has distinguished itself as Egypt’s first startup dedicated to the digital transformation of the ‘Gameya’ model. Since its establishment in 2017, the company has modernized this traditional system, contributing significantly to the promotion of a digital savings culture across the country.

Following the successful closure of a recent $13 million funding round, Money Fellows intends to expand into new North African markets—beginning with Morocco—while also enhancing its operational infrastructure and attracting high-caliber talent to strengthen its team capabilities.

Sharikat Mubasher spoke with Ahmed Wadi, Founder and Chief Executive Officer of Money Fellows, to discuss the company’s expansion strategy and reflect on its milestones to date.

Money Fellows was among the first companies to digitize the traditional ‘Gameya’ model in Egypt. What market need inspired the creation of this platform? Was it based on prior research or experience?

The decision to launch Money Fellows stemmed from a genuine and widespread need within Egyptian society. Millions of people participate in ‘Gameya’ as a means of saving, yet such a practice has historically been informal and lacked protective safeguards.

Our objective was to digitize this social mechanism by creating a legal, secure, and transparent platform for ‘Gameya’ management. We provided every participant with a credit score, clear contractual agreements through a user-friendly mobile application, all operating under the supervision of the Central Bank of Egypt.

The founding journey of any startup is often challenging. What was the most difficult stage in your early days, and how did you address the issues of limited trust and funding?

Securing our first funding round was among the most challenging stages, particularly given that we were introducing a novel concept with no precedent in the local market.

We invested significant effort in persuading investors of our business model’s viability. In parallel, obtaining the necessary regulatory approvals posed another major hurdle. Establishing a well-defined legal framework was essential to ensuring maximum credibility and reassurance for our users. Ultimately, we succeeded in building a solid foundation for growth.

After several years in operation, what is Money Fellows’ primary ambition for the next five years? Do you plan to evolve into a full-service financial platform?

Certainly. While we began as a platform focused exclusively on ‘Gameyas’, our vision is now to become a comprehensive financial partner for all our users. Our user base has grown from approximately 4.5 million at the end of 2022 to over 8.5 million at present.

We are committed to broadening our service offerings and enhancing the value we provide. Earlier this year, in January, we introduced a prepaid card, representing another step toward delivering an integrated suite of financial services tailored to our users’ needs and aspirations.

What is your current base of active users, and what is your annual transaction volume?

We now serve more than 350,000 monthly active users, with monthly transaction volumes reaching several billion Egyptian pounds. This represents significant growth compared to the past two years, driven by increased user confidence, continuous improvements to the user experience, and the introduction of value-added services such as the prepaid card.

In the coming phase, will your focus be on acquiring new users or deepening engagement with existing customers?

Both objectives are equally important. We are committed to enhancing the customer experience by actively incorporating user feedback and expanding loyalty programs. Our goal is to increase Customer Lifetime Value (CLV)—the long-term revenue or profit generated per customer—which will help us maintain strong relationships with our existing user base.

Having recently raised $13 million, how do you plan to allocate this capital? Is regional expansion a priority?

Our investment plan is anchored in three main pillars:

1. Enhancing the user experience: Developing a more intelligent, faster, and intuitive mobile application.
2. Regional expansion: Morocco will serve as our first expansion market. We are currently collaborating with local regulatory authorities with the aim of launching officially before the end of the year. This will be followed by entry into additional markets in North Africa, Sub-Saharan Africa, and South Asia.
3. Strengthening infrastructure and human capital: Recruiting top-tier talent to support technical operations, regulatory compliance, and strategic partnerships.

How do you assess the competitive landscape in Egypt? What differentiates Money Fellows from competitors such as MNT-Halan and Kashat?

Egypt’s fintech sector has matured and diversified considerably. Money Fellows’ key differentiator is our focus on collective savings as a highly effective gateway to financial inclusion, supported by our strong adherence to transparency, regulatory compliance, and legal security.

We do not issue direct loans. Instead, we foster a culture of digital group saving that builds trust among participants. Our business model is based on the circulation of funds between users themselves. The ROSCA system is founded on social capital rather than dependence on the cost of capital, allowing us to offer lump-sum disbursements at highly competitive rates compared to conventional consumer finance models.

How do you view Egypt’s investment climate? What challenges persist despite increased government support?

The funding environment has improved markedly. Between January and May 2025, Egyptian startups secured $228 million in investment, an increase of 130% over the same period in 2024.

Egypt now ranks as the fourth-largest recipient of startup funding in Africa, and has risen from 81st to 11th place globally in terms of entrepreneurship ecosystem development.

Nevertheless, significant macroeconomic challenges remain, including inflation, currency depreciation, and elevated interest rates. These factors place additional strain on startups and make sustained, stable growth more difficult to achieve.

To conclude, by transforming the traditional ‘Gameya’ saving model through technology, Money Fellows has redefined the culture of collective saving in Egypt. With the confidence of its investors—underscored by its recent $13 million funding round—the company is poised to enter a new chapter of regional expansion, beginning with Morocco, and to deliver more technology-driven financial solutions across Africa and beyond.

Translation by: Ghada Ismail

Kholoud Hussein

In the high-velocity world of startups, where ideas can fade as quickly as they emerge, the early choices founders make often determine their long-term trajectory. In Saudi Arabia, those decisions now carry even greater weight. The Kingdom’s startup scene is no longer in its infancy; it is a carefully constructed ecosystem, shaped by deliberate policy, abundant early-stage capital, and an increasingly competitive talent pool.

At the heart of that ecosystem lies a question that has become pivotal for founders: Should you build your company within the slower, methodical environment of an incubator, or the intense, sprint-driven atmosphere of an accelerator?

This is not merely a matter of preference — it’s a matter of strategic fit, one that could mean the difference between scaling into a regional leader or stalling after the first funding round.

A Market in Motion

Venture capital activity in Saudi Arabia has been climbing at an unprecedented pace. The Kingdom led the MENA region in funding during the first half of 2025, securing roughly $860 million, a staggering 116% jump from the previous year. This surge has been driven by both sovereign wealth–backed initiatives and a more robust private investment landscape.

Behind the scenes, institutions like Monsha’at, the Small and Medium Enterprises General Authority, have been building the scaffolding to support this growth. Their accelerator programs, alongside other state-led initiatives, are designed to connect founders not only to funding but also to the mentorship and regulatory guidance that can make or break an early-stage venture.

As one senior official at Monsha’at said: “We are not just funding startups; we are trying to engineer a complete landscape where ventures can overcome early barriers and scale sustainably.”

Two Models, Two Mindsets

The choice between an incubator and an accelerator is not arbitrary — it’s rooted in the very DNA of how a startup plans to grow.

Incubators are the long game. They provide the time and resources to refine an idea, test a prototype, and navigate complex challenges like intellectual property filings or sector-specific regulations. For deep-tech founders in areas like AI, clean energy, or medtech, where timelines are measured in years rather than months, this slower burn can be the only viable path. The incubators linked to KAUST, for example, have been instrumental in transforming research projects into investable companies.

Accelerators, in contrast, thrive on urgency. They are built for startups that already have a minimum viable product (MVP) and are ready to push aggressively into the market. These programs compress months of networking, customer acquisition, and fundraising into an intense 3–6 month sprint. The Misk Accelerator, which has helped more than 200 startups, exemplifies this approach. Founders emerge not only with sharper business models but also with investor introductions that could take years to cultivate on their own.

One fintech founder described the experience, stating: “The mentor network and direct introductions to regulators were worth more than the seed funding itself.”

The Reality of Performance

If you look purely at early-stage momentum, accelerators seem to have the edge. MAGNiTT’s data shows a high conversion rate from accelerator graduation to seed funding in Saudi Arabia, especially in sectors like fintech and SaaS. Demo days, with their packed rooms of angel investors and VC representatives, offer unmatched visibility.

But incubators deliver a different kind of value — one that can be harder to measure in the short term. They may not produce as many pitch-ready companies in a single year, but the ones they do graduate often have stronger intellectual property, deeper product differentiation, and more strategic corporate partnerships.

Still, both models face the same systemic challenge: a scarcity of growth-stage capital. Founders often talk about the “Series B gap” — a chasm between the seed and early Series A rounds, which accelerators help secure, and the multi-million-dollar checks needed to truly scale. As one accelerator alumnus put it: “We had every investor’s attention at demo day. Twelve months later, when we needed $10 million to expand, the room was empty.”

Sector-Specific Choices

Not every industry benefits equally from each model.

In fintech and consumer applications, accelerators often provide the fastest route to market, offering regulatory coaching — especially with SAMA’s sandbox programs — and direct connections to potential enterprise clients. One fintech founder credited their accelerator with “fast-tracking conversations with two major banks,” which would have been nearly impossible without a warm introduction.

For AI, clean technology, and advanced manufacturing, incubation is often the smarter bet. These sectors require lab access, patient capital, and technical validation before commercial scaling is even possible. Healthtech startups, for example, may need years to secure regulatory approvals, making a short accelerator sprint premature.

Building the Missing Link

The truth is, the most effective ecosystems don’t force a binary choice between incubation and acceleration — they create a seamless pipeline from one to the other.

Saudi Arabia has made progress here. Monsha’at’s national programs aim to link incubation, acceleration, and funding into one continuous journey. Private programs like Flat6Labs are experimenting with follow-on funds to keep supporting graduates beyond their initial sprint.

Yet, the gap in Series B and growth-stage funding remains a pressing concern. Without institutional investors willing to write larger checks, promising startups risk plateauing just as they hit their stride. This is where policy incentives — co-investment schemes, risk guarantees, and targeted sector funds — could be game changers.

Guidance for Founders and Policymakers

For founders, the rule is simple: match the program to your stage and sector, not to its brand name. If you’re still iterating on your product, consider joining an incubator that can provide you with the time and technical expertise you need. If you’re ready to enter the market, choose an accelerator with the right network and investor connections. And always check the post-program pipeline — a strong alumni network and follow-on funding support can be just as important as the initial experience.

For policymakers, the priority should be integration. That means ensuring that incubators feed accelerators, accelerators feed growth funds, and that all of it aligns with the Kingdom’s broader industrial strategy. As one ecosystem leader put it: “A startup’s journey is not a series of disconnected steps; it’s a continuous build-up. If we break that chain, we waste both capital and talent.”

The Road Ahead

Saudi Arabia has the rare advantage of building its startup ecosystem in an era when the playbooks from Silicon Valley, Singapore, and Dubai are already written. It can borrow the best ideas and avoid the pitfalls.

The incubator–accelerator debate isn’t about which model will “win.” It’s about how each can be deployed strategically to create a balanced, high-output pipeline. Accelerators will continue to drive early visibility and investor access; incubators will remain critical for deep, defensible innovation.

If these two models are aligned — and backed by a stronger growth capital market — the Kingdom could see not just more startups, but more scale-ups that can hold their own on the global stage. 

Ghada Ismail

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

So, What Exactly Is Reverse Logistics?

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

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

Why Startups Should Care

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

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

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

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

Making Reverse Logistics Work for You

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

A Saudi Success Story

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

Wrapping things up…

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

Ghada Ismail

Delayed insurance reimbursements remain one of the most pressing financial challenges for healthcare providers across the MENA region. Klaim, a healthtech and fintech hybrid, is addressing this issue by offering AI-powered solutions that accelerate claims processing and improve cash flow predictability for clinics and hospitals. Backed by a recent $26 million funding round, the company is now scaling its presence in key markets—particularly Saudi Arabia—where it aims to support the Kingdom’s ambitious healthcare transformation goals. This interview digs deeper into the company’s strategic priorities, the role of AI in healthcare finance, regulatory considerations, and the partnerships that are shaping its expansion.

You’ve just secured $26 million in funding. What are the top priorities Klaim will focus on as you scale across the MENA region?

Our top priority is to empower small and medium-sized healthcare providers by accelerating their claim payments with insurers, the Ministry of Health, and other government payers. We’re also building an AI-powered TPA solution tailored to the KSA market, enabling faster and more predictable payments between providers and insurers.

What inspired you to focus on solving payment delays in healthcare?

We saw a real problem: healthcare providers working tirelessly to care for patients while struggling with slow and unpredictable payments. Insurers and reinsurers often take months to settle claims, putting providers under intense cash flow pressure just as their operating costs are rising. We wanted to fix that.

Klaim uses AI to forecast insurance payment behavior. Can you walk us through how this works and what makes your system more effective than traditional claim processing methods?

Our AI-driven RCM module analyzes each provider’s specific payers and their historical behavior. Our system evaluates, predicts, and automates approvals on monthly transactions. This predictive intelligence gives providers visibility on when to expect payments and unlocks cash flow with accuracy that traditional processing simply can’t match.

Healthcare payments are notoriously complex. What were the biggest technical or regulatory challenges you faced building a fintech solution in this space?

One major challenge is the lack of compliance from some payers regarding regulated claims settlement timelines. Payment behaviors change frequently, making it hard for providers to plan. Our solution had to account for this complexity while staying fully compliant with healthcare and financial regulations in each market.

Saudi Arabia has been a big focus for you lately. Why is the Kingdom such an attractive market for Klaim’s growth, and how are you adapting your model to fit its healthcare ecosystem?

Saudi Arabia accounts for nearly 70% of the GCC healthcare market, with over 5,000 accredited providers dealing with insurers. To succeed there, we’ve tailored Klaim’s platform to comply 100% with local regulations while addressing providers’ growing operational needs. This ensures their revenue cycle becomes faster, smoother, and future-ready.

How are you ensuring compliance with evolving AI regulations, especially with Saudi Arabia’s digital health sandbox initiatives?

Klaim is certified by the Saudi CHI for RCM services and fully integrated with NPHIES across eligibility, pre-authorization, claims, and payments. We prioritize compliance to ensure providers can trust us to accelerate their payments without risking regulatory setbacks.

How important are local partnerships like Tharawat Tuwaiq to your business model in Saudi Arabia, and are you pursuing other collaborations in the Kingdom?

Tharawat Tuwaiq is a crucial partner, providing financial support and credibility as we scale. That said, our long-term vision is to build a fully independent operation to process payments even faster and strengthen market trust in our brand.

With growing investor interest in health tech, what’s your message to VCs looking to understand the true ROI potential of healthcare fintech solutions like Klaim?

The ROI is clear: providers urgently need solutions that ease financial stress from delayed insurer payments. By combining our AI-driven approach with strong messaging and targeted marketing, Klaim delivers real value – freeing providers to focus on care while improving their financial health.

Is Klaim considering working with public-sector entities in Saudi Arabia to support Vision 2030 health goals, or will you remain focused on private healthcare providers?

For now, our focus is on building a strong base with private providers. Public sector collaborations may come later, selectively, and ideally with regulator recommendation to ensure strategic alignment.

What’s next on your roadmap?

We’re focused on deepening partnerships with the CHI and Saudi regulators to streamline payments, integrate seamlessly with NPHIES Pay, and continue expanding our platform to support the Kingdom’s healthcare transformation goals.

Kholoud Hussein 

Saudi Arabia is undergoing a profound transformation in the startup ecosystem. No longer is innovation confined to Riyadh—the Kingdom’s startup landscape is branching out into a multi‑center network that includes Jeddah, Dammam, Medina, and Giga-project locales like NEOM. Supported by Vision 2030 policies, billions in venture capital, and mega‑projects serving as innovation anchors, these regional hubs are becoming dynamic launchpads for home‑grown and global entrepreneurs.

The Capital at the Core: Riyadh’s Rise as a Global Ecosystem

Riyadh has cemented itself as Saudi Arabia’s dominant startup city, climbing 60 places in just three years to rank 23rd globally in the 2025 Global Startup Ecosystem Report by Startup Genome—making it third in the MENA region. Since 2018, over $2.6 billion in VC capital has flowed into Riyadh startups, backed by government‑linked funds like SVC, Jada, and PIF. Khaled Sharbatly, Chair of the National Entrepreneurship Committee, emphasized: “We are committed to positioning Saudi Arabia as a global hub for entrepreneurship and innovation.” The capital’s infrastructure—including KAFD (King Abdullah Financial District) and Digital City—provides state-of-the-art office spaces, regulatory support, and direct access to institutional anchors like Tadawul and major corporates.

Diversification Beyond the Capital: Jeddah, Dammam, Medina in Focus

While Riyadh leads, other cities are gaining traction. According to the 2025 StartupBlink index, Jeddah entered the top 10 in the Middle East, and Dammam rose to 12th. Medina debuted in the global top‑1000 ecosystems, signalling the real spread of entrepreneurial activity.

In Jeddah, proximity to the Red Sea and ease of trade are vital assets. Startups in logistic tech, tourism, and digital health benefit from the city’s port access and cosmopolitan energy. Likewise, Dammam and the Eastern Province tie into industrial clusters in Sudair and Khobar, anchoring innovation around energy tech, cleantech, and industrial IoT.

Medina’s Knowledge Economic City (KEC), a project launched in 2006, is being repositioned as a knowledge hub supporting startups. Its partnerships with Cisco and CompTIA aim to create a tech-savvy workforce in the city. This shift illustrates how economic cities are rejuvenating local entrepreneurship beyond metropolitan centers.

Giga-projects as Startup Magnets: NEOM, Qiddiya, The Line

Perhaps the most distinctive phenomenon in Saudi’s startup geography is the role of giga-projects as living innovation labs. NEOM has pledged $500 million in partnerships through its NEOM Investment Fund to invite startups in mobility, robotics, AI, and smart infrastructure. Sultan Alasmi, CEO of the e-commerce enabler Zid, said: “Saudi Arabia’s giga-projects, especially NEOM, offer a once-in-a-lifetime opportunity for startups to develop solutions that integrate with smart city frameworks.”

The upcoming The Line, a 170‑km car-free smart city, will mandate sustainable infrastructure, autonomous transport, and AI‑driven governance—offering fertile ground for startups working in urban tech, clean energy, and IoT. Entrepreneurs in sustainable hospitality, immersive tourism, and blockchain-based booking systems are already positioning to serve these hubs.

Policy and Institutional Infrastructure Across Regions

Saudi Arabia’s national policies underpin the rise of regional startup hubs. Agencies like Monsha’at, SVC, and Jada are building an inclusive ecosystem across cities. Monsha’at’s Deputy Governor for Entrepreneurship, Saud Al‑Sabhan, noted: “The public sector’s role in creating a highly supportive business environment … is developing a landscape where the initial hardships of starting a business can be overcome.” 

Simultaneously, venture capital companies such as SVC have deployed SAR 5.2 billion into early and growth-stage startups by Q1 2024, with over 22% going to AI‑focused ventures.

Cities like Jazan are being equipped with Special Economic Zones that aim to attract $2.93 billion in foreign investments by 2040, positioning yet another hub for innovation along the Red Sea port corridor.

Sectoral Strengths in Regional Hubs

Each emerging hub is developing unique sectoral strengths:

• Riyadh dominates in fintech, cybersecurity, smart cities, digital health, and AI, hosting over 200 fintech firms.
• Jeddah thrives in e‑commerce and logistics, thanks to companies like Sary, Jahez, and Noon—each significant Riyadh success stories that have roots in the Red Sea corridor.
• Eastern Province / Dammam is aligning startup activity with industrial tech and energy transition, while Jazan SEZ targets agro, logistics, and port-enabled tech.
• Medina’s KEC is focusing on edtech and IT workforce development—intending to convert academic research into commercial ventures.

Events and Investment Platforms Fueling Local Growth

Annual flagship forums like LEAP Tech have expanded beyond Riyadh to engage startup founders citywide. LEAP 2024 hosted over 215,000 visitors, 600+ startups, and 1,600 investors, announcing up to $11.9–13.4 billion in investment commitments. Moreover, LEAP is set to expand to cities like Jeddah and Dammam, highlighting the push for geographic inclusion.

These events amplify the visibility of regional innovators and connect founders directly with capital, enterprise buyers, and tech partners.

Talent, Academia, and Regional Collaboration

Regional cities benefit increasingly from integration with academia. For example, KAUST and King Saud University are bridging R&D to market through spin-offs and incubators. Medina's KEC is doing the same via ICT partnerships with Cisco and CompTIA.

Moreover, the spread of entrepreneurship into suburban and rural areas is enhancing talent diffusion. Former corporate professionals in secondary cities are increasingly founding startups, bringing experience, maturity, and local relevance.

Regional Hubs: Challenges and Diverging Prospects

Despite the progress, regional hubs face challenges. Riyadh remains the dominant center, with access to capital, foreign investors, and customer pipelines. Cities like Jeddah or Dammam still capture smaller shares of VC flows. Diversifying regional funding and creating city-specific startup funds may be a necessary next step.

Talent gaps persist—regional universities struggle to match the output of major institutions, and specialized AI or IoT talent tends to centralize in Riyadh. Regulatory alignment across provinces is uneven, requiring coordination to make multi-city scaling smoother.

However, venture leaders see opportunity: “Startups must move fast, network aggressively, and seek partnerships with giga-project stakeholders. Neom and Qiddiya won’t wait for entrepreneurs who aren’t ready to scale.”

Looking Ahead: A Network of Real Startup Cities

Saudi Arabia is transforming from a single‑city startup ecosystem into a network of startup cities, each with its own strategic identity:

• Riyadh: Finance, AI, digital infrastructure.
• Jeddah: Port-driven logistics, tourism tech, e‑commerce.
• Dammam / Eastern Province: Industrial tech, energy, smart manufacturing.
• Medina (KEC): Edtech, ICT skill incubation, academic spin-offs.
• Giga-project zones: NEOM, The Line, Qiddiya as controlled innovation zones with global reach.
• Jazan SEZ: Export-oriented logistics and agricultural technology.

Supported by $3.8 billion in venture capital in 2024, with major support from Monsha’at, SVC, PIF, and other agencies, the ecosystem is maturing rapidly.

What was once a centralized ecosystem in Riyadh is now blossoming into a multi-node innovation engine across Saudi Arabia. As Riyadh solidifies its global ecosystem ranking, other cities like Jeddah, Dammam, Medina, and giga-project hubs are emerging as specialized innovation clusters—each offering distinct resources, sector focus, and institutional support. This distributed model not only promotes economic diversification but also aligns with Vision 2030’s ambition of a technology-driven, knowledge-based economy.

As government policies evolve, capital becomes more widespread, and startups increasingly operate beyond city borders, Saudi Arabia is crafting a future where every region is a startup city with its own narrative, potential, and global competitiveness.