Noha Gad 

The construction sector in Saudi Arabia is undergoing a remarkable transformation, driven by ambitious government initiatives and a strategic vision to diversify the economy beyond oil dependence. This promising industry is projected to see a robust growth as of 2025, with an expected expansion rate of around 4.4% to 6.2%, according to a recent report by Global Data. This growth will be driven by massive investments in infrastructure, housing, commercial, and industrial projects.

Additionally, the construction sector in Saudi Arabia is anticipated to reach $174.3 billion by 2030, from $104.7 billion in 2024, with a compound annual growth rate (CAGR) of 8.7%, as stated in a recent report by Research and Markets, one of the world’s largest research market stores. 

At the core of this surge are Saudi Arabia’s giga-projects, such as NEOM, Qiddiya, and the Red Sea Project, which aim to establish the Kingdom as a global hub for innovation, tourism, and entertainment. These projects, alongside urban development in major cities like Riyadh and Jeddah, are reshaping the economic landscape and creating vast opportunities for construction companies and suppliers

Technology is playing an increasingly pivotal role in this promising sector. The adoption of advanced construction technologies, such as Building Information Modeling (BIM), modular construction, 3D printing, and smart infrastructure systems, is accelerating efficiency, reducing costs, and improving project management. 

Bisrat Degefa, Co-founder and CEO of TruBuild, a leading Saudi construction tech company, affirmed that the adoption of technology in the construction sector “has moved from experimental pilots to core strategy.” He highlighted that less than 10% of top developers in the region used digital procurement tools in 2019, while in 2025, over 60% are running live programs.

Another key player in the Saudi construction technology sector is WakeCap, a Riyadh-based company that integrates smart technology in the construction industry, focusing on enhancing safety, productivity, and efficiency. According to CEO Hassan Albalawi, mandating technology on major projects plays a pivotal role in promoting transparency, ensuring better compliance rates, and transforming safety protocols and practices in the construction industry and beyond. 

Construction technologies vs. traditional methods

Although traditional construction methods in Saudi Arabia emphasize cultural preservation and adaptation to local climates, advanced technologies are transforming the sector by enhancing efficiency, sustainability, and scalability, ultimately accelerating the Kingdom’s broader economic diversification and urban development ambitions.

The integration of technology is essential in overcoming regulatory complexities and administrative challenges, streamlining project approvals, and enhancing risk management. For instance, traditional tender evaluations often take 4–6 weeks and involve multiple full-time reviewers; however, they provide inconsistent and subjective results. Meanwhile, leveraging a rules-based scoring system, enhanced by machine-learning insights, helps companies complete evaluations in 5-7 days with just two reviewers, saving up to 85% of costs, 70% of cycle times, and significantly fewer downstream variations.

This technological evolution not only supports the rapid pace of construction but also positions Saudi Arabia’s construction sector as a model for modernization and economic diversification in the region.

Key technologies that reshape the Saudi construction sector:

Advanced construction technologies are significantly improving both speed and sustainability in the Saudi construction sector in alignment with Vision 2030. Key technological advancements reshaping the industry include:

• 3D Printing: This technology accelerates construction timelines by enabling the rapid, cost-effective fabrication of complex building components from materials like concrete and polymers.
• Modular and prefabricated construction: Pre-assembled building sections are increasingly used in major giga-projects. This method enhances speed, quality, and cost control, crucial for meeting ambitious infrastructure deadlines.
• Building Information Modeling (BIM): BIM provides detailed digital 3D models that improve collaboration among architects, engineers, and contractors. Its growing use in projects contributes to reducing errors, streamlining workflows, and cutting costs.
• Artificial intelligence (AI) and machine learning: AI automates routine tasks, optimizes labor allocation, predicts project risks, and improves safety on construction sites, offering real-time insights that help avoid delays and cost overruns.
• Internet of Things (IoT) and Automation: IoT devices enable real-time monitoring of equipment, materials, and site conditions, enhancing resource management and safety. Meanwhile, automation reduces manual labor and repetitive tasks, allowing teams to focus on strategic aspects of projects.
• Green building technologies: Saudi Arabia is integrating solar panels, energy-efficient HVAC systems, and advanced insulation to reduce the environmental footprint of construction. These practices align with global standards and the Kingdom’s commitment to reducing carbon emissions.

To fully adopt innovative construction technologies in Saudi Arabia, several key regulatory changes are needed to create a flexible, supportive, and secure environment that fosters innovation while addressing emerging risks, including:

• Aligning regulations with technology development.
• Promoting flexibility and risk management.
• Enhancing collaboration among stakeholdersز
• Developing clear AI and data governance.
• Streamlining permitting and compliance processes.

The future of construction technology in Saudi Arabia

The future of construction technology in Saudi Arabia is set to be transformative, driven by ambitious national goals under Vision 2030 and massive investments exceeding $3 trillion aimed at economic diversification and urban modernization.

Degfa expected a widespread adoption of AI-assisted workflows, contracts linked to digital twins, live ESG and schedule tracking, blockchain-enabled supplier payments, and automated compliance checks for codes and Saudization. “With its combination of scale, urgency, and regulatory support, Saudi Arabia is on track to become a global leader in AI-powered construction,” he said.

Despite challenges related to regulatory complexity and administrative hurdles, the integration of advanced technologies is expected to redefine the Saudi construction sector by 2030, making it a global leader in innovative, sustainable, and efficient building practices. This technological revolution supports Saudi Arabia’s broader goals of economic diversification, job creation, and environmental stewardship, positioning construction as a cornerstone of the Kingdom’s future development.

Selina Bieber, Vice President for International Markets at GoDaddy

Digitalisation has transformed entrepreneurship, especially at its inception. An increasing number of small businesses are launching via platforms like Instagram, TikTok, or WhatsApp, bypassing traditional websites. These social-first entrepreneurs meet customers where they already are, turning social media from a mere communication tool into a business.

According to the GoDaddy 2025 Global Entrepreneurship Survey, over one in five (22%) of small business owners in MENA primarily run their business on social media. This shift underscores the growing significance of social commerce, particularly for solo entrepreneurs and part-time founders.

However, building a business solely on social platforms has its limitations. While visibility is high, ownership and control are minimal. Algorithm changes or platform policies can disrupt a business’s presence and income overnight. Moreover, consumers often seek additional verification before making a purchase. 

In Germany, where trust is paramount, having a professional website can significantly enhance a business’s credibility. The State of Digital Commerce in MENA 2024 Report by Checkout highlighted that 73% of online shoppers in MENA are confident in making purchases from businesses with professional websites, rather than relying solely on social media. 

Microtools Bridge the Gap
The market responded with lightweight tools tailored for social-first founders. Solutions like GoDaddy’s Show In Bio enable entrepreneurs to build branded micro-sites, digital product catalogs, and smart links that centralize their business presence without requiring advanced technical skills. These tools integrate seamlessly with social platforms while granting founders greater control.

AI Fuels Smarter, Faster Entrepreneurship
Artificial intelligence empowers founders to transition from idea to execution swiftly, helping craft product descriptions, develop pricing models, and automate customer interactions. GoDaddy data indicates that AI-supported tools can save entrepreneurs up to 10 hours per week—a substantial benefit for time-constrained small business owners. Beyond time savings, AI democratizes access, enabling anyone to present a professional front, experiment with new ideas, and scale efficiently.

And while social platforms are powerful launchpads for connecting with customers, true staying power comes from owning your presence online. Having a dedicated website paired with smart, social-integrated tools like Show in Bio not only reinforces credibility but also provides a layer of trust and permanence that social channels alone can’t deliver. In an environment where impersonations and questionable accounts are not uncommon, especially on social media, customers often verify whether a business has a legitimate website before making a purchase decision.

Social-First, but Not Platform-Dependent
The new generation of entrepreneurs is pragmatic, digitally native, and driven by a desire for independence. They initiate their ventures where their audiences are—on social media—but increasingly seek tools that provide control, flexibility, and a distinct identity beyond the scroll. Combining social-first strategies with a professional website not only enhances credibility but also ensures long-term viability. With the right mix of AI and accessible microtools, transitioning from a side hustle to a sustainable business is more attainable than ever. Social-first may be the entry point, but ownership and your own digital presence are the future.

Kholoud Hussein 

The global space economy reached $464 billion in 2022 and is forecast to grow to $738 billion by 2030, according to the Space Foundation. Saudi Arabia, under its ambitious Vision 2030, is now positioning itself as a new powerhouse in this domain.

“Space is no longer just the domain of superpowers. Saudi Arabia sees it as a platform to localize high-value industries, inspire innovation, and create a new economy,” says Mohammed Al-Tamimi, CEO of the Saudi Space Agency (SSA).

The Kingdom’s strategy is clear: nurture a domestic space ecosystem, attract foreign investors, and become a regional hub for research, satellite tech, and even space tourism.

Institutional Foundations: Strategic Architecture Behind the Lift-off

The establishment of the Saudi Space Commission in 2018 (now the Saudi Space Agency) marked a pivotal moment. Its leadership under Minister Abdullah Alswaha and Al-Tamimi signaled a top-down national commitment.

In July 2023, Saudi Arabia signed a cooperation agreement with NASA, further reinforcing its international positioning. Minister Alswaha described it as “a step forward in building strategic partnerships that accelerate our national innovation capabilities and diversify the Kingdom’s global collaborations.”

Supporting the SSA’s efforts is the Communications, Space and Technology Commission (CST), which sets regulatory frameworks and promotes commercial activity in space. CST has launched multiple market intelligence reports identifying five opportunity clusters: satellite manufacturing, launch services, ground infrastructure, satellite communications, and earth observation.

Private Sector & Startup Surge: The Commercial Engine of Saudi Space

• Accelerators, Startups, and R&D

Saudi Arabia is not building a space sector from scratch — it is nurturing one through accelerators, R&D hubs, and university-led innovation.

In 2023, the SSA partnered with Techstars to run a 10-week accelerator. Frank Salzgeber, former head of innovation at the European Space Agency and advisor to the program, said: “There was never a better time and place to join the space industry than Saudi Arabia. By 2030, the Kingdom will be a major hub for commercial space activity.”

Meanwhile, Neo Space Group (NSG), launched by the Public Investment Fund (PIF) in 2024, focuses on satellite communications, remote sensing, and IoT — all areas ripe for private-sector development.

Other rising players include SARsatX, backed by Flat6Labs, which is building earth observation services using micro-satellites, and Orbit Arabia, a startup in early-stage development focused on space-based logistics.

Huda AlMansoori, co-founder of a Riyadh-based space tech incubator, notes: “The talent is there — our challenge is channeling it into deep-tech ventures, and that’s where university and government partnerships are crucial.”

• University Partnerships

Saudi universities like KAUST, KACST, and King Saud University are driving innovation. A joint nanosatellite launched with Spire Global and KAUST in 2023 via SpaceX marked a breakthrough for local research.

These institutions serve as feeders to the startup ecosystem and provide technical backstopping for early-stage ventures.

Investment Landscape & Economic Potential

Saudi Arabia’s space sector is rapidly emerging as an investment frontier, backed by a convergence of national policy, global market trends, and the rising appetite for high-tech infrastructure. While still in early formation, the Kingdom’s space investment landscape is evolving from state-led vision to private sector opportunity, one with the potential to generate multi-billion-riyal returns, catalyze regional leadership, and embed the country in the global space economy.

1. Public Capital as a Strategic Engine

The Kingdom’s space push is being powered initially by substantial government investment, driven primarily through the Public Investment Fund (PIF), the Saudi Space Agency (SSA), and affiliated tech and industrial funds. These entities have committed billions of riyals to:

• Build and launch domestic satellites
• Fund advanced research and local manufacturing
• Develop a regulatory framework that supports commercial activity

For instance, the PIF-backed Neo Space Group, launched in 2024, is tasked with developing satellite communications networks, earth observation platforms, and data analytics systems to support sectors from agriculture to oil and gas.

This top-down model mirrors the early phases of national development in other strategic sectors like renewable energy and advanced manufacturing. The goal is to de-risk early-stage infrastructure, create sovereign capabilities, and set the foundation for a thriving commercial market.

“We’re not just financing projects. We’re building a full ecosystem that can compete globally,” said Alswaha, Minister of Communications and Information Technology.

2. Growing Private Sector Momentum

While still nascent, the private sector is beginning to show signs of traction. Many early-stage Saudi startups are entering the space value chain, particularly in:

• CubeSat design and nano-satellite systems
• Downstream applications such as geospatial analytics, weather monitoring, and remote sensing
• Internet of Things (IoT) connectivity from low Earth orbit (LEO)

Notable players include:

• LeoTech Space, working on CubeSat hardware and educational payloads
• OrbitX, developing data processing tools for environmental monitoring
• SkyNode, a startup using satellite imagery for infrastructure and utility mapping

Although these companies remain in the seed and Series A stage, some have begun attracting capital from local VCs like Khwarizmi Ventures, Riyadh Valley Company, and Seedford Partners, as well as from international players scouting the region’s underexploited potential.

“We see space tech in Saudi as where fintech was 10 years ago — high risk, but massive upside,” said a partner at a Jeddah-based venture fund. “With the right exits, this could be one of the region’s most valuable verticals.”

3. FDI and Global Partnerships on the Rise

Saudi Arabia is also positioning itself as an attractive destination for foreign direct investment (FDI) in space, thanks to regulatory reforms, tax incentives, and a clear roadmap outlined by the National Space Strategy.

In 2024 alone, the Kingdom signed over 15 MoUs and joint ventures with international space agencies, aerospace manufacturers, and satellite operators. These include:

• A strategic agreement with Thales Alenia Space for satellite development
• Collaboration with OneWeb and Eutelsat to extend broadband coverage
• Technology transfer partnerships with Chinese and Indian satellite firms

Foreign players are drawn to Saudi Arabia’s commitment to localization, its strong capital markets, and the possibility of using the Kingdom as a launchpad into broader MENA and African markets.

The Saudi Investment Promotion Authority has identified space technology as a “Tier-1 opportunity” for inbound FDI and is working with the Ministry of Investment (MISA) to develop customized incentives for international aerospace companies.

4. Dual-Use Applications Multiply ROI Potential

Space in Saudi Arabia is not just about launches and satellites — it’s about the data and services they enable. The real economic value will come from commercializing applications that serve other Vision 2030 sectors, including:

• Agritech: Monitoring crop health, soil conditions, and water usage from space
• Mining & Energy: Using satellite imagery to detect geological anomalies or monitor pipeline infrastructure
• Urban Planning: Assisting in NEOM and smart city development with geospatial planning tools
• Disaster Management: Supporting emergency response and early-warning systems for floods or heatwaves

This interconnectivity creates layered economic value and opens doors for cross-sector investment. A single satellite platform can serve dozens of public and private sector clients — from Aramco to the Ministry of Environment — dramatically improving ROI.

5. Unlocking Future Value Through Industrial Localization

Long-term, the Kingdom aims to localize critical parts of the aerospace supply chain, including satellite assembly, sensor manufacturing, launch support services, and space-grade materials. This would reduce reliance on imports, strengthen national security, and create thousands of high-skilled jobs.

Several initiatives are underway:

• Establishing a Space Industry Cluster in Riyadh and Taif
• Incentivizing aerospace manufacturing under Made in Saudi branding
• Training local engineers and technicians through public-private partnerships

These efforts reflect the broader Vision 2030 priority of building an innovation-driven, export-oriented industrial base, with space positioned as a high-impact sector.

Saudi Arabia’s space investment landscape is evolving rapidly — from public infrastructure and basic services to an increasingly diversified portfolio of startups, foreign partners, and commercial applications. While risks remain, the economic upside is undeniable: access to a trillion-dollar industry, increased strategic autonomy, and the development of deep-tech capabilities that can ripple across the economy.

As capital flows in and capabilities mature, Saudi Arabia is poised to shift from a buyer of space technology to a builder — and eventually, to a global exporter of space-enabled solutions.

Foreign Investment & International Partnerships

Saudi Arabia is actively courting foreign players. In 2024, Halo Space announced it would begin stratospheric balloon tourism flights from Saudi Arabia. The company estimates $600 million in revenue by 2030, with 400 flights annually priced at around $100,000 to $164,000 per ticket.

Carlos Mira, CEO of Halo Space, explained: “We chose Saudi Arabia because of the regulatory clarity, stable investment climate, and access to funding. Vision 2030 gives us confidence that the country is serious about space tourism.”

Major partnerships include:

• NASA: civil cooperation on exploration and R&D.
• Axiom Space: supported the Kingdom’s first astronaut mission in 2023.
• LeoLabs and NorthStar: helping monitor orbital debris and enhance satellite safety.
• SES and OneWeb JV: building LEO ground infrastructure in Tabuk.

NEOM, the $500 billion smart city project, is also hosting testbeds for space-tech experiments — including earth observation and atmospheric studies — in partnership with international space firms.

Strategic Fit with Vision 2030

Saudi Arabia’s foray into space is not an isolated ambition—it is a direct extension of Vision 2030, the Kingdom’s comprehensive roadmap to diversify its economy, reduce its reliance on oil, and position itself as a hub of innovation and global leadership. The development of the space sector serves as a strategic enabler across multiple Vision 2030 pillars, from economic diversification and digital transformation to education, defense, and global positioning.

1. Economic Diversification Beyond Oil

One of the central tenets of Vision 2030 is to shift Saudi Arabia's GDP composition away from hydrocarbons and toward high-tech industries and services. The global space economy, expected to surpass $1.8 trillion by 2035 according to McKinsey, offers a compelling opportunity for Saudi Arabia to tap into new revenue streams through:

• Satellite manufacturing
• Space-based data analytics
• Remote sensing for agriculture and infrastructure
• Telecommunications and broadband delivery in underserved regions

By investing in space infrastructure and commercial capabilities, the Kingdom is effectively planting the seeds of a post-oil innovation economy.

“Space is not just science—it’s strategy,” said Alswaha. “It drives solutions for water, food, security, and economic resilience. This is the heart of Vision 2030.”

2. A Catalyst for Innovation and Deep Tech

The space sector is inherently interdisciplinary, requiring advances in robotics, AI, cybersecurity, materials science, and energy systems. It therefore acts as a powerful catalyst for the Kingdom’s emerging deep tech ecosystem, sparking local innovation and forging partnerships between universities, research centers, and startups.

Institutions such as KAUST, KACST, and King Fahd University of Petroleum and Minerals (KFUPM) are already aligning their research agendas to support aerospace and space sciences. Programs under the Saudi Space Agency aim to connect academic R&D with real-world applications, ranging from satellite payload development to climate analytics powered by geospatial data.

The space sector also encourages technology transfer and local IP creation, crucial to the Kingdom’s long-term ambition of becoming a producer—not just a consumer—of advanced technologies.

3. Human Capital Development and Youth Empowerment

Vision 2030 places a strong emphasis on unlocking the potential of Saudi youth, and the space economy offers a new and inspiring domain for engagement. From astronaut programs and aerospace engineering scholarships to STEM bootcamps and space hackathons, there is a national push to nurture the next generation of space scientists, engineers, and entrepreneurs.

The recent participation of Saudi astronauts—Rayyanah Barnawi and Ali AlQarni—on international space missions has ignited public interest and served as powerful symbols of national capability and aspiration.

“Our children need to see that science is a path to the stars—not just something in books,” said Badr Al-Aiban, Advisor at the Royal Court. “Space inspires curiosity, and curiosity builds capability.”

By 2030, Saudi Arabia aims to have trained thousands of specialists in aerospace and satellite sciences, and introduce space-focused curricula across major universities and vocational programs.

4. Enhancing National Security and Sovereignty

Space plays a growing role in geopolitical competitiveness and strategic autonomy, especially in areas like secure communications, border surveillance, and cyber defense. Vision 2030 underscores the need for Saudi Arabia to reduce dependency on foreign systems and develop sovereign technological capabilities.

With the development of localized satellite infrastructure, encrypted data networks, and dual-use payloads, the space sector strengthens national resilience and empowers local decision-making in crisis management, environmental monitoring, and defense logistics.

The National Space Strategy, approved by the Council of Ministers, outlines specific goals to enhance security-related capabilities through indigenous satellite constellations and enhanced partnerships with friendly powers.

5. Global Branding and Soft Power

Participation in the space economy elevates Saudi Arabia’s image as a modern, forward-thinking nation committed to scientific advancement, global cooperation, and peaceful space exploration. This aligns with Vision 2030’s ambition to position the Kingdom as a thought leader on the international stage—not only economically, but scientifically and diplomatically.

Through strategic cooperation with agencies such as NASA, Roscosmos, the European Space Agency, and the Chinese National Space Administration, as well as through its contributions to global forums like the UN Committee on the Peaceful Uses of Outer Space (COPUOS), Saudi Arabia is cultivating a new dimension of foreign policy and soft power.

These initiatives also help attract foreign direct investment (FDI), joint ventures, and technology partnerships—all critical to the success of Vision 2030.

In essence, space is not a detour from Saudi Arabia’s development priorities—it is a powerful multiplier. It fuses the knowledge economy with security interests, the tech sector with youth empowerment, and the national identity with global influence.

As Vision 2030 progresses into its critical execution phase, the integration of space into the Kingdom’s economic DNA is no longer speculative—it’s strategic. And if successful, it will mark a historic leap not only for Saudi Arabia, but for the entire region’s place in the space economy.

VII. Talent Development: The Human Capital Frontier

A sustainable space economy requires skilled engineers, astrophysicists, designers, and entrepreneurs.

In 2023, Serco Middle East launched its first space graduate program in Riyadh. Amar Vora, Serco’s director of space strategy, explained: “To address Saudi Arabia’s ambitions, the need for space skills and talent is going to be absolutely critical.”

Initiatives like SSA’s Ajyal program and KAUST’s satellite fellowships are designed to build a national talent pipeline. The participation of Rayyanah Barnawi — the first Saudi female astronaut — in a 2023 Axiom mission has inspired a surge of interest in STEM education.

Challenges on the Launchpad

Despite its ambitious trajectory and strong top-down support, Saudi Arabia’s space sector faces a number of structural, operational, and strategic challenges that could slow its momentum if not addressed holistically.

1. Talent Gaps: Bridging the Skills Deficit

One of the most critical bottlenecks is the shortage of specialized talent. While Saudi Arabia has made progress in encouraging STEM education and developing astronaut programs like Ajyal, the domestic workforce still lacks mid- to senior-level experts in critical areas such as orbital mechanics, propulsion systems, satellite software, and deep-space mission design.

This issue is compounded by global competition for space professionals, especially with countries like the UAE, India, and the US scaling their space ambitions. According to a 2023 report by the OECD on space workforce development, countries that lead in space tech invest heavily in long-term STEM capacity building and have well-established university-to-lab-to-startup pipelines — a model still in its early stages in Saudi Arabia.

“There’s a perception gap,” said a senior space researcher at KAUST. “We have many science graduates, but few with actual mission experience or specialized postdocs in astrodynamics or payload engineering.”

Without a broad base of engineers, scientists, and commercial space strategists, Saudi Arabia may struggle to build an autonomous space industry capable of scaling or sustaining high-tech operations without foreign support.

2. Overreliance on Government Funding

While state-led investment has been essential in kickstarting the ecosystem, Saudi Arabia’s space sector remains disproportionately dependent on public capital, especially from the Public Investment Fund (PIF) and other state-affiliated vehicles. This limits the diversity of innovation, slows down market responsiveness, and creates fragility if government priorities shift.

As of mid-2024, more than 80% of all major space-related funding in Saudi Arabia was sourced from public entities. Venture capital participation remains limited and risk-averse, with few dedicated space investment funds (Seedford Partners being a notable exception).

Unlike the U.S., where NASA’s role is largely to enable and regulate while commercial players like SpaceX, Planet Labs, and Rocket Lab compete for contracts, Saudi Arabia’s current structure is still heavily top-down.

“We need to shift from a government-sponsored vision to a market-driven one,” noted a Riyadh-based space entrepreneur. “Otherwise, we risk building a showcase sector rather than a competitive one.”

3. Regulatory Maturity and Commercial Readiness

Although the Communications, Space & Technology Commission (CST) has made strides in launching licensing frameworks, spectrum management policies, and space debris protocols, Saudi Arabia’s regulatory environment is still evolving and not yet at par with global commercial benchmarks.

Startups report lengthy timelines to secure launch permissions, spectrum allocations, or import/export licenses for satellite components. Additionally, the lack of local manufacturing standards and IP enforcement mechanisms poses risks for high-tech investors.

In a region with growing geopolitical complexity, export control laws, dual-use technology regulations, and data sovereignty policies must be carefully developed to attract long-term partners and comply with global norms such as those set by the ITU and UN COPUOS.

“The legal infrastructure is being built, but it must be faster and clearer,” said an executive from a European satellite firm working in the Kingdom. “Foreign investors need certainty, especially in a high-stakes field like space.”

4. Long Time Horizons and Uncertain Commercial Returns

Space, by nature, is a long-game sector. Building a sustainable business case often requires years of R&D, launch testing, and orbit validation, followed by more time before profitability is achieved. For most early-stage investors, this presents an unattractive risk profile.

In the Saudi context, where startup ecosystems are still maturing and exits are limited, the lack of near-term commercial wins may disincentivize private capital unless accompanied by patient co-investment structures or government-backed guarantees.

Moreover, venture capitalists often lack the technical due diligence capabilities to evaluate space startups — a gap that could be addressed through education, advisory boards, or specialist fund-of-fund mechanisms.

5. Regional & Global Competition

Saudi Arabia is not alone in its ambitions. The UAE, Israel, Turkey, and Egypt are all investing in space technology and are further along in areas such as satellite imaging, data services, or launch capabilities. These countries have also built strong bilateral ties with key partners like NASA, the European Space Agency, and private launch companies.

To stay competitive, Saudi Arabia must continue to differentiate itself — either by becoming the regional logistics and satellite ground hub, by localizing component manufacturing, or by offering globally competitive R&D incentives and workforce development programs.

Outlook to 2030: Orbiting Toward Opportunity

As Saudi Arabia accelerates its space ambitions, the road to 2030 presents not just symbolic milestones, but a tangible opportunity to transform its economic and technological trajectory. The Kingdom is no longer approaching the space economy as a prestige project—it is positioning it as a strategic growth engine embedded within national priorities.

1. Projected Market Size and Economic Contribution

According to a 2023 study by Euroconsult, the Middle East’s space economy could exceed $10 billion by 2030, with Saudi Arabia expected to claim 20–30% of that share if its current investment pace continues. This translates to a domestic space market of roughly $2–3.5 billion by the end of the decade, spanning satellite communications, imaging, data services, and emerging verticals like space-based IoT.

A 2024 white paper from the Saudi Space Agency (SSA) projects that space technologies could contribute 0.5% to the Kingdom’s GDP by 2030, alongside creating over 8,000 direct jobs and potentially 25,000 indirect jobs across supply chains and downstream services.

“We don’t see space as an isolated sector—it will empower other industries like agriculture, energy, logistics, and climate,” said Al-Tamimi, SSA’s CEO.

2. National Security & Sovereignty

By 2030, Saudi Arabia aims to achieve partial independence in satellite manufacturing, launch access, and data infrastructure. This autonomy is crucial not only for communications and earth observation, but also for national security, emergency response, and cyber resilience.

Efforts are already underway. The PIF’s Neo Space Group is building satellite ground stations and planning for a dedicated constellation to serve both civilian and strategic needs. Experts anticipate the development of dual-use satellite capabilities for border control, maritime monitoring, and disaster prediction.

As regional tensions and cybersecurity risks grow, space sovereignty will become a core tenet of national resilience—a perspective increasingly echoed by policymakers in Riyadh.

3. Becoming a Regional & Global Player

Saudi Arabia’s location gives it geopolitical and geographical advantages. Positioned between Europe, Africa, and Asia, it is ideally suited for:

• Hosting ground station infrastructure
• Supporting launch logistics in emerging spaceports (especially in Tabuk and Taif)
• Serving as a regulatory and financing hub for the regional space economy

By 2030, the Kingdom could play a similar role in the Middle East that Luxembourg or Singapore plays in Europe and Southeast Asia: a niche space economy leader, enabling international startups and established players to base operations, raise capital, and test innovations in a stable, business-friendly environment.

4. Tourism, Education, and Public Engagement

Space is also being used as a tool for soft power, inspiration, and tourism. With commercial stratospheric flights set to begin via Halo Space by 2026, Saudi Arabia could become the first country in the Middle East to offer space-adjacent tourism to the public, attracting high-net-worth visitors and scientific missions alike.

Educational institutions are expected to expand their aerospace engineering programs, and Saudi youth—especially women—are being actively encouraged to pursue STEM paths. The success of Rayyanah Barnawi, the first Saudi female astronaut, has already sparked significant interest in space among young Saudis.

“When children see someone from their own country go to space, they begin to imagine careers that once felt unreachable,” said Huda AlMansoori, co-founder of a Riyadh-based STEM nonprofit.

5. Long-Term Vision: Moonshots and Beyond

While most of the current investment is focused on near-Earth technologies—LEO satellites, data platforms, and earth observation—Saudi Arabia is not ruling out deep space collaboration. The SSA has publicly discussed interest in:

• Contributing to the moon and Mars missions via international partnerships
• Establishing a Saudi payload program aboard commercial or governmental spacecraft
• Participating in space mining dialogues, especially with countries like the U.S., Japan, and Luxembourg

By 2030, the Kingdom could feasibly become a co-sponsor of exploratory missions or a host for moon analog testing environments, leveraging its vast deserts and stable climate.

A Decade of Acceleration

Saudi Arabia’s space strategy is multi-layered and cross-sectoral. It intertwines national security, education, private sector development, and global influence. But the success of this strategy will hinge on a few key metrics:

• Successful commercial satellite deployment from locally-led entities
• A robust private investment ecosystem beyond state capital
• Clear regulatory pathways for international partnerships
• And a long-term talent development pipeline that ensures sustainability beyond 2030

“We are not in a race to the stars,” said Minister Abdullah Alswaha in a 2024 press statement. “We are building a platform that connects people, protects resources, and powers progress. Space is simply our next domain of growth.”

As the Kingdom enters the second half of Vision 2030, its space ambitions are no longer theoretical. They are grounded in infrastructure, capital, policy, and purpose, with clear momentum toward making Saudi Arabia not just a participant in the global space economy, but a leader in shaping its future.

To conclude, Saudi Arabia’s foray into space is more than a prestige play—it’s a strategic lever for economic diversification, tech independence, and global engagement. By 2030, the Kingdom aims to nurture a vibrant, sustainable space sector encompassing manufacturing, research, services, tourism, and data-driven industries.

The journey is ambitious. Critical will be continued investment, further private-sector development, scaled talent production, regulatory evolution, and guardrails for geopolitics. If the stars align, Saudi Arabia may well become the Arab world’s premier space economy, reshaping its global role and cementing the human capital and technological foundations of its post-oil future.

Noha Gad

In the high-stakes world of startups, where 90% of new ventures fail within the first few years, financial forecasting is not just a best practice; it is a lifeline. It is crucial for startups as it provides a clear roadmap for future growth by predicting revenues, expenses, and cash flows based on market trends and realistic assumptions.

Financial forecasting enables entrepreneurs to make informed decisions, allocate resources effectively, and manage cash flow, which is vital for survival in the early stages. Additionally, a well-prepared financial forecast builds investor confidence by demonstrating the startup’s potential for profitability and helps secure necessary funding.

Key components of startup financial forecasting

A well-prepared financial forecast typically includes the following elements: 

• Sales/revenue forecast.
• Expenses forecast.
• Cash flow projection.
• Profit and loss statement projection.
• Breakeven analysis.
• Balance sheet forecast.
• Market and pipeline analysis.

Why financial forecasting matters for startups

Financial forecasting is not about predicting the future perfectly; it is about creating a roadmap that helps startups navigate uncertainty, attract funding, and avoid fatal cash flow mistakes. Financial forecasting can help startups in:

• Investor confidence and fundraising. Investors and lenders demand data-driven clarity before committing capital. A well-structured forecast demonstrates market understanding, operational discipline, and scalability.
•  Cash flow survival. Startups fail because they run out of cash, not because they are unprofitable. Forecasting helps startups predict cash crunch periods, plan for contingencies, and align spending with milestones.
• Strategic decision-making. Financial forecasting enables startups in the pricing, hiring, and product development processes.
• Risk mitigation. Scenario planning, such as best-case or worst-case forecasts, prepares startups for economic downturns, supply chain disruptions, and competitive threats.

Consequences of poor financial forecasting

Poor financial forecasting in startups can have severe and wide-ranging consequences that threaten their survival and growth:

• Cash flow disruptions: Inaccurate forecasts can cause unexpected liquidity shortages or excess cash, forcing emergency borrowing at high interest rates or missed growth opportunities.
• Misallocation of resources: Startups may hire too many or too few employees, over-invest in equipment, or inefficiently allocate marketing budgets, leading to inflated costs and operational inefficiencies.
• Delayed strategic decisions: Lack of reliable forecasts causes hesitation in launching new products or entering markets.
• Regulatory and compliance risks: Inaccurate projections can lead to missed tax payments, non-compliance with debt covenants, fines, legal problems, and reputational damage.
• Over-optimistic revenue projections: Overestimating revenue growth creates false security, leading to overspending and negative cash flow, often resulting in financial distress.
• Lack of data and unrealistic assumptions: Startups frequently encounter difficulties in forecasting due to inadequate historical data, oversimplified growth assumptions, or a disregard for market realities, resulting in unreliable financial plans.
• Risk of running out of capital: Many startups fail within the first two years primarily due to poor financial management and running out of cash.

In conclusion, financial forecasting is an indispensable tool for startups navigating the precarious early stages of their journey. By providing a structured and realistic roadmap of revenues, expenses, and cash flows, it empowers entrepreneurs to make informed decisions, optimize resource allocation, and maintain vital cash flow. Beyond operational benefits, a well-crafted forecast builds investor confidence and enhances fundraising prospects, which are critical for startup survival and growth. On the other hand, poor financial forecasting can lead to cash shortages, misallocated resources, delayed strategic moves, and ultimately, business failure. For startups aiming to defy the odds, investing time and effort into accurate, data-driven financial forecasting is not optional; it is essential.

Ghada Ismail

Whether you're pitching to investors, testing a new idea, or planning your next big move, you’ve likely heard the terms TAM, SAM, and SOM thrown around. But what do they actually mean, and why do they matter?

In the startup world, these three acronyms help define market sizing, a critical part of understanding how big your opportunity really is. They show the difference between the total universe of potential customers… and the actual portion of the market you can realistically capture.

Still, many founders blur the lines between them, or worse, overestimate them entirely. That’s when problems start.

This article is your simple guide to what each term means, how to calculate them, and why getting them right can make or break your pitch.

Here’s a quick breakdown before we dive deeper:

• TAM (Total Addressable Market): The big picture. If everyone in the world who could possibly use your product actually did.
• SAM (Serviceable Available Market): The slice of that market you can realistically reach, given your current geography, business model, and product focus.
• SOM (Serviceable Obtainable Market): The smallest circle—this is your actual short-term target. Who can you win over now, with the team, resources, and time you currently have?

Understanding TAM/SAM/SOM helps you set realistic goals, speak the language of investors, and avoid the common trap of “wishful thinking” market sizing.

How to Calculate TAM, SAM, and SOM?

Let’s say you’re launching a food delivery app in Saudi Arabia that targets busy professionals in major cities. Here’s how you’d approach TAM, SAM, and SOM in simple terms:

1. TAM: Total Addressable Market

This is the maximum demand for your product if absolutely everyone who could use it did use it.

Example:
Imagine everyone in Saudi Arabia who orders food online is using your app. That’s your TAM. It’s the big-picture number that shows how massive the opportunity could be in a perfect world.

2. SAM: Serviceable Available Market

Now bring it down to what’s actually reachable based on your target cities, tech limitations, and business model.

Example:
You’re not launching nationwide—you’re starting in Riyadh and Jeddah. Plus, your app is only for smartphone users who pay digitally. So your SAM is just a portion of the TAM, filtered to reflect your true focus.

3. SOM: Serviceable Obtainable Market

This is where reality kicks in. Of all the people in your SAM, how many can you realistically reach in your first year, given your current team, budget, and marketing plan?

Example:
Let’s say you believe you can reach a few thousand loyal users and onboard a handful of restaurants in your launch cities. That small slice? That’s your SOM. It’s your starting point.

Think of it like this:

• TAM = Everyone who could ever use your product
• SAM = People you can realistically target
• SOM = People you’re likely to win over first

This breakdown keeps your expectations grounded and helps you grow with purpose, not just with ambition.

Conclusion: Know Your Market, Know Your Game

Understanding TAM, SAM, and SOM isn’t just for impressing investors; it’s for grounding your business in reality. These numbers help you think strategically about where to start, how to grow, and what your true potential looks like.

Think of it like this:

• TAM tells you how big the dream is.
• SAM tells you where to aim first.
• SOM tells you what you can realistically achieve right now.

For Saudi startups navigating a fast-evolving market, clarity is everything. Knowing your numbers gives you the edge, not just in fundraising, but in decision-making, prioritization, and focus.

So you’d better take the time to define your market the smart way, because in the world of startups, vague ambition never beats clear execution.

Ghada Ismail

PARAGON is rethinking what workspaces can be. With smart design, built-in services, and a strong focus on community, its developments go beyond real estate; they support how people actually work and grow. At the center of this vision is WORK IN, a ready-to-operate workspace model built for startups and SMEs in Egypt’s New Administrative Capital.

“We’re not just imagining that future—we’re building it,” says Ahmed Shaarawy, VP of Commercial Affairs at Paragon Developments. In this interview, he shares how PARAGON is creating smarter, more sustainable workspaces and why the model is ready to scale beyond Egypt.

What workspace features do startups value most today, and how does WORK IN deliver on them?

Today’s startups and SMEs prioritize flexibility, scalability, operational efficiency, and access to value-added services—and WORK IN at PARAGON.3 was purposefully designed to meet these needs. Located in a prime spot in the heart of the New Administrative Capital’s Financial District—directly facing the Presidential Palace—WORK IN delivers more than just office space; it offers a fully integrated, future-ready regenerative space that embodies PARAGON’s core pillars: Design, Community, Innovation, and Sustainability. 

Paragon adopts a ready-to-operate model that eliminates barriers

Understanding the challenges startups face—such as limited resources, setup delays, and operational complexities—we created a ready-to-operate model that eliminates these barriers. WORK IN offers a range of smart, fully serviced office spaces between 15 and 50 square meters, allowing businesses to scale seamlessly as they grow. Each unit is supported by high-speed internet, reception services, printing facilities, relaxation lounges, and concierge assistance, all within a professional and adaptable setting.

What truly sets WORK IN apart is the comprehensive ecosystem built around it. Clients gain access to marketing, legal, and accounting services, giving them a competitive edge and allowing them to focus solely on growth. In addition, of course, to PARAGON HUB, which offers dynamic spaces for meetups, events, and endless networking opportunities.—empowering them to focus on growth while we handle the rest.

By integrating smart design, operational support, and community-building features, WORK IN is not only redefining modern workspaces—it’s shaping the future of professional environments in Egypt, fostering innovation, collaboration, and long-term business success.

What operational challenges did you overcome in launching a smart & sustainable workspace model? 

Launching a smart workspace model like WORK IN required overcoming a range of operational challenges, particularly within Egypt’s regulatory and infrastructure landscape. Implementing an intelligent, tech-integrated environment meant aligning multiple systems—from IoT-enabled sensors and centralized Building Management Systems (BMS) to user-facing mobile applications that enhance accessibility and control. Ensuring these technologies worked seamlessly required close collaboration with tech partners, construction teams, and regulatory bodies, all while maintaining our high standards of functionality, comfort, and sustainability.

At PARAGON, we turned these challenges into opportunities to innovate. By embedding sustainability and smart systems into every stage of development, we’ve created regenerative workspaces that not only meet global efficiency standards but are also tailored to the Egyptian context. Our strategic partnership with Schneider Electric has enabled us to deploy advanced energy-saving technologies that support occupant well-being while significantly reducing environmental impact. Today, all PARAGON buildings are LEED-accredited, and PARAGON 1 proudly holds a SmartScore Certificate, making it one of Egypt’s first truly smart and sustainable office buildings.

How does PARAGON HUB go beyond the workspace to create real growth opportunities for startups and SMEs?

PARAGON HUB goes far beyond the traditional workspace by serving as a growth platform and dynamic ecosystem for startups and SMEs. At its very core is the PARAGON Hub Physical Facility—a vibrant social space that brings people together beyond their office walls. It redefines the modern mixed-use workspace by creating a community-centered environment where collaboration, networking, and innovation intersect seamlessly across all PARAGON buildings.

More than just infrastructure, PARAGON HUB fosters a culture of connection and growth. Through curated events, mentorship opportunities, and knowledge-sharing sessions, it empowers members to build meaningful relationships and gain real insights that drive success. By blending physical space with business enablement, PARAGON HUB becomes not just where work happens, but where growth is made possible.

Do you see potential for a WORK IN-style model in Saudi Arabia’s growing startup hubs like Riyadh or NEOM? 

Saudi Arabia’s rapidly evolving urban landscape—particularly in innovation-driven hubs like Riyadh and NEOM—presents a strong opportunity for exporting the WORK IN model. These cities are fostering a new generation of entrepreneurs who require agile, tech-enabled, and fully serviced workspaces that support rapid growth. That’s exactly what WORK IN delivers.

Our core values align well with KSA’s national focus on digital transformation, sustainability, and economic diversification. With its emphasis on flexibility, smart infrastructure, and integrated support services, the model is well-suited to meet the needs of fast-scaling startups in the Kingdom. Saudi Arabia’s national focus on digital transformation, sustainability, and economic diversification aligns closely with PARAGON’s core values: Design, Community, Innovation, and Sustainability.

We see strong potential to replicate and tailor WORK IN to the Saudi market—leveraging its scalable framework to contribute meaningfully to the Kingdom’s startup ecosystem while supporting its broader vision for future-ready, smart urban development.

With Paragon’s strong global sales, is Saudi Arabia part of your regional expansion plans?

Our expansion into Saudi Arabia and other Arab markets is a strategic step in PARAGON’s journey to become a regional leader in smart, sustainable development. These markets offer tremendous opportunities, especially in Saudi Arabia, where Vision 2030 is accelerating demand for innovative and integrated real estate solutions. There’s a growing appetite for high-performance, community-centered spaces that support economic growth and diversification.

We aim to complete 360,000 sqm of integrated mixed-use developments in Saudi Arabia

Looking ahead, Paragon is preparing to expand its footprint in Saudi Arabia by targeting the development and management of 200,000 sqm of office space by 2027, to reach 500,000 sqm by 2030 across key cities like Riyadh and Jeddah.

By 2030, we aim to complete six development projects totaling 360,000 sqm of BUA, encompassing a diverse mix of medium-rise standalone offices and integrated mixed-use developments that blend workspace with retail and hospitality components. On the property management front, we plan to oversee 140,000 sqm across six projects, focusing on operational excellence, tenant satisfaction, and long-term asset value, offering flexible rental models tailored to market needs. While we target six projects per category, our development approach remains agile, adapting the number of projects as needed to meet BUA targets and optimize investment returns.

Paragon has integrated EV charging into its developments. How does this support Egypt’s clean mobility goals and broader sustainability strategy?

Paragon’s integration of electric vehicle (EV) charging infrastructure directly supports Egypt’s clean mobility goals as outlined in the National Climate Change Strategy 2050. This national strategy aims to reduce greenhouse gas emissions across sectors, including transportation, and promote the shift toward more sustainable, energy-efficient mobility solutions.

By embedding smart, accessible EV charging stations within its developments, Paragon is helping to lay the groundwork for an electric mobility ecosystem in Egypt. These efforts not only encourage EV adoption among residents and businesses but also demonstrate how private sector leadership can complement national sustainability initiatives.

Paragon’s approach aligns with the country’s long-term vision of reducing fuel dependency, minimizing environmental impact, and modernizing infrastructure through innovative, technology-driven solutions—positioning its projects as forward-thinking models for Egypt’s low-carbon future.

How do you envision the ideal workplace of the future in cities like Cairo?

The ideal workplace of the future in cities like Cairo is one that seamlessly blends technology, sustainability, and human-centric design to meet the evolving needs of a modern workforce. In a fast-paced, urban environment, professionals increasingly seek more than just a desk—they want dynamic spaces that enhance productivity, support well-being, and foster collaboration and innovation.

Our partnerships with global leaders like Schneider Electric, Signify, and Planon allow us to deliver intelligent ecosystems that support cognitive performance.

At PARAGON, this vision is already being realized. We believe the future of work lies in environments that prioritize people over physical structures. That’s why our developments are intentionally designed to deliver more than functionality—they’re built to empower users, stimulate creativity, and promote sustainable growth.

By integrating smart technologies such as IoT-enabled systems, advanced climate control, intelligent lighting, and user-customizable workstations, PARAGON creates interactive, responsive environments that adapt to how people actually work. Our partnerships with global leaders like Schneider Electric, Signify, and Planon allow us to deliver intelligent ecosystems that optimize energy use, improve air quality, enhance comfort, and actively support cognitive performance.

Sustainability is also a core component of the workplace of the future. PARAGON buildings are designed with eco-conscious infrastructure and certified green standards, including LEED and SmartScore certifications, ensuring long-term environmental responsibility and operational efficiency. Through features like biophilic design, better acoustics, and natural lighting, we improve both the mental and physical health of our occupants.

Ultimately, the workplace of the future must be adaptable, sustainable, and centered around the user experience. At PARAGON, we’re not just imagining that future—we’re building it. Our developments offer a blueprint for what smart, human-centric workplaces should look like in Egypt’s cities as they continue to grow and modernize.

Finally, what one piece of advice would you offer to real estate developers aiming to support entrepreneurship in Egypt?

My advice would be to design spaces that go far beyond physical infrastructure. In Egypt’s dynamic and fast-evolving entrepreneurial landscape, developers have a unique opportunity to create environments that actively support innovation and business growth. It’s not just about offering a desk or an office—it’s about building a community where entrepreneurs can connect, collaborate, and thrive.

Startups flourish in ecosystems where ideas are shared, partnerships are formed, and support systems are in place. By offering flexible, scalable, and tech-enabled workspaces that adapt to different stages of business growth, developers can empower startups to focus on what really matters: building and scaling their ideas. At the same time, integrating sustainability into these developments helps future-proof their operations and aligns with broader environmental goals.

The WORK IN model at PARAGON can truly drive impact in Egypt’s startup ecosystem

But equally important are the intangible resources—access to mentorship, business development services, and meaningful networking opportunities. These elements are critical in helping entrepreneurs navigate challenges and accelerate their journey to success. This holistic, human-centric approach is what we’ve built into the WORK IN model at PARAGON, and it’s a framework that can truly drive impact in Egypt’s startup ecosystem.

Kholoud Hussein 

Launched in April 2016 under Crown Prince Mohammed bin Salman and King Salman, Vision 2030 has reshaped Saudi Arabia’s economy, society, and international positioning. As of early 2025, the Kingdom has already surpassed many of its key targets:

• 93% of its nearly 400 third-level KPIs have been fully or partially met. 
• Over 85% of its 1,500+ strategic initiatives have been completed or are on track.

The non-oil economy now contributes around 45–50% of GDP, tourism visitor numbers have already exceeded 100 million annually, and female labour-force participation has reached ~33%—beating the 30% goal.

However, with 2030 deadlines looming, attention is turning to the next chapter: What lies beyond Vision 2030?

1. Why Saudi Arabia Must Look Beyond 2030

A. Surpassing the Finish Line, Not Crossing It

With high-level projects nearing completion (NEOM, the Red Sea resorts, Diriyah Gate) and many social reforms embedded in the system, Saudi Arabia now faces the question: How to sustain and build on this progress?

A recent Stratfor analysis addresses this: “As the finish line for Vision 2030 approaches... Saudi Arabia is paring back its ambitious megacity NEOM… focusing on successful reforms that have strengthened its diversification away from oil.”

This isn't abandonment, but rather a strategic reorientation: embed gains and recalibrate the most significant initiatives to ensure their viability.

B. Global Shocks and Domestic Realities

Geopolitical tensions and fluctuating oil prices still shape the economic environment. Although non-oil growth has been robust (with real GDP growth projections of 4–4.6% in 2024–25), continued resilience requires adaptive economic and social frameworks beyond 2030.

2. Emerging Pillars of the Post-2030 Strategy

A. Institutionalizing Sustainability & Governance

Saudi authorities have prioritized sustainability and transparency—not merely through grand visions, but via process. The Saudi Green Initiative (massive afforestation, emissions cuts) is poised to continue as an ongoing environmental policy beyond 2030. Likewise, improvements in e-governance, fiscal discipline, and public-sector accountability (pillars of “Ambitious Nation”) are now being entrenched in long-term reforms.

B. Deepening Economic Diversification

• Manufacturing & Industry: Efforts to localize oil sector value-added (from 40% to 75%) signal broader industrial policy that must continue beyond 2030.
• Finance & Capital Markets: The Financial Sector Development Program, launched under Vision 2030, aims to reinforce Saudi Arabia as a global financial hub—a task set to continue in the next decade.
• Renewable Energy & Green Tech: From Sakaka solar and Dumat al Jandal wind farms, the next step involves scaling hydrogen, green ammonia, carbon capture, and R&D tied to the Supreme Committee on RDI.

C. Human Capital & Innovation

Efforts to elevate Saudis in STEM, entrepreneurship, and global competitiveness reflect a shift from infrastructure-focused investment to talent-driven transformation. The Kingdom aims to channel 2.5% of GDP into research by 2040. Saudi universities and incubators (e.g., KAUST, SDAIA) are already positioned as keystones for this ambition.

3. Voices from the Kingdom

Busra Karacadag, OBG’s Country Director, framed the broader narrative: “This report captures Saudi Arabia’s bold strides in diversification, sustainability and global collaboration. Vision 2030 is a testament to the Kingdom’s resilience and capacity to lead on the international stage.” 

While Oliver Cornock, OBG’s Editor-in-Chief, conveyed: “Saudi Arabia’s focus on innovation and long‑term economic planning is helping to create a dynamic, future‑ready economy.” 

Both underscore that the real test will be maintaining this momentum after the headline-making projects conclude.

Similarly, Ahmed Al-Khateeb, Minister of Tourism, and Fahad bin Abdurrahman Al-Jalajel, Minister of Health, emphasize infrastructure-led sustainability. Their stewardship is shaping a post-2030 environment grounded in healthcare resiliency, affordable housing, and tourism capacity, not just new investments.

4. Post-2030 Scenarios: What Could Come Next?

A. Transitioning to Vision 2040 or Vision 2050?

Given the success and nearing sunset of Vision 2030, it’s likely the Kingdom will launch a successor strategic framework—tentatively called Vision 2040 or Vision 2050—aimed at embedding earlier gains and tackling residual structural vulnerabilities.

Key areas:

1. Industrial Upgradation: Shift from manufacturing assembly to high-value, tech‑enabled production; e.g., smart vehicles, biotech, pharmaceuticals.
2. Energy Transition: From solar/wind to hydrogen-exporting, carbon-negative energy ecosystems.
3. Financial Ecosystem: Expansion through FinTech innovation, Islamic finance, and integration with global capital flows.
4. Human Sciences and Culture: Zoom in on R&D capacity, cultural exports, tourism beyond mega-sites.

B. Governance as Strategy

Saudi Arabia’s leap from wholesale reform to institutional maturity implies post‑2030 governance models with decentralized accountability, data-driven policymaking, community engagement, and digital transparency—all sustained through refreshed bureaucratic capabilities.

C. Global Engagement and Soft Power

Already during its G20 presidency and sporting diplomacy, Saudi Arabia has used culture and commerce to amplify its global voice. Post-2030 plans will likely expand on educational exchanges, cultural IP exports, Saudi-backed global universities, and multilateral peace/sustainability agendas.

5. Risks and Challenges Ahead

Despite its achievements, the Kingdom faces real challenges:

• Megaproject Sustainability: Scaling back NEOM or similar projects could disappoint investors, thus requiring recalibrated expectations and management frameworks.
• Oil Dependency Residuals: While non-oil GDP has grown, oil exports still finance public services and deficits. External shocks remain a key vulnerability.
• Youth Expectations and Social Balance: A young, digitally-native population demands further widening liberties, robust social contracts, and inclusive civic platforms.

The next strategic blueprint must squarely address these through economic resilience, a balanced social compact, and long-tail institutional endurance.

6. Blueprint for a Post-2030 Saudi Arabia

Here is a thematic breakdown of what Vision 2040 (tentative) might entail:

From Vision to Legacy

Vision 2030 has already reshaped Saudi Arabia’s economic structure, societal values, global posture, and timeline. As 2030 approaches, the Kingdom's challenge shifts from execution to sustainability, adaptation, and continuous renewal. A successor strategy—Vision 2040 or Vision 2050—will likely carry forward this spirit, reinforcing resilience, institutional maturity, and global soft power.

The next Saudi decade must reconcile grand transformation with durable governance. Will its institutions mature enough to absorb this change? Will its citizens sustain this reform?

In the following years, Riyadh must answer these fundamental questions. The success of Vision 2030 opens this critical chapter, and the real test now lies after the finish line.

Noha Gad

The construction tech sector in Saudi Arabia is witnessing a transformative phase, driven by Vision 2030’s ambitious infrastructure projects and a growing focus on innovation. From smart cities to large-scale renewable energy initiatives, cutting-edge technologies such as AI, Building Information Modeling (BIM), and modular construction are reshaping the industry.

TruBuild, a leading Saudi construction tech company, is at the forefront of this evolution, delivering innovative solutions to enhance efficiency, sustainability, and digital transformation across the Kingdom.

Known for its advanced project management tools, automation, and data-driven insights, TruBuild has become a trusted partner for major developers and government entities, supporting Saudi Arabia’s mission to modernize its infrastructure with smarter, faster, and more cost-effective methodologies. 

Sharikat Mubasher held an interview with TruBuild’s Co-founder and CEO, Bisrat Degefa, to delve deeper into the trends, challenges, and future of construction tech in the Kingdom and the broader region.

TruBuild uses AI to streamline procurement and project management. How does the platform uniquely address delays and cost overruns compared to traditional methods?

Traditional tender evaluations often take 4–6 weeks, involve multiple full-time reviewers, and still produce inconsistent, subjective results. TruBuild transforms this process by ingesting thousands of pages of technical, commercial, and contractual data in minutes. It applies a transparent, rules-based scoring system enhanced by machine-learning insights and generates a fully auditable trail for every action. The result: evaluations are completed in 5–7 days by just two reviewers, with up to 85% cost savings, 70% faster cycle times, and significantly fewer downstream variations—thanks to early risk identification.

How do you see construction tech adoption today in Saudi Arabia and the wider region?

Adoption has moved from experimental pilots to core strategy. In 2019, fewer than 10% of top developers in the region used digital procurement tools; by 2025, over 60% are running live programs. Cloud-based PMIS adoption has grown from 20% to more than half. Saudi Arabia leads the charge, supported by mandates around BIM, e-tendering, and local data residency. What was once seen as optional is now essential to meet the region’s ambitious delivery timelines and scale.

What key challenges does TruBuild face in modernizing construction tech in Saudi Arabia and the GCC, and how have you tackled them?
Change aversion is a major hurdle—many teams still believe Excel is “good enough.” So, we built TruBuild to feel familiar: spreadsheet-style, no-code, and easy to learn in a single-day onboarding session. Data sovereignty concerns are resolved with fully Saudi-hosted deployments, compliant with ISO 27001 and NCA-ECC standards. To address fragmented procurement practices, we offer out-of-the-box templates for NEC, FIDIC, and local regulations. And we tackle skill gaps through embedded guidance and CPD-certified training delivered in collaboration with regional industry bodies.

You recently secured a $1 million seed round. How will this capital accelerate TruBuild’s growth?
 The funding enables us to scale our engineering, domain, and commercial teams. We’re launching a commercial evaluation module in Q3 2025 with an Arabic NLP interface and expanding go-to-market partnerships with leading project management consultancies to accelerate adoption across the region.

What are the company’s expansion plans in Saudi Arabia and the broader region?
 In Saudi Arabia, we are deepening our engagements with PIF subsidiaries and giga-projects. Regionally, we plan to enter the UAE and Qatar in 2025 through local system integrators, followed by targeted expansion into the UK and US markets, where we see strong demand for AI-driven construction tools.

How does TruBuild align with Vision 2030’s goals to digitize construction and localize technology?
 Vision 2030 calls for 70% local content, improved productivity, and greater transparency. TruBuild is designed and led from Saudi Arabia, and our clients are already seeing over 50% savings in procurement resource hours. The Vision’s delivery pace simply cannot be supported by legacy workflows. TruBuild shifts procurement from reactive to proactive, enabling faster, more accurate, and fully auditable decisions. Every riyal is tracked and justified, ensuring critical projects are delivered on time, on budget, and to the highest standards.

How do you expect construction tech to evolve in Saudi Arabia over the next five years?
We expect widespread adoption of AI-assisted workflows, contracts linked to digital twins, live ESG and schedule tracking, blockchain-enabled supplier payments, and automated compliance checks for codes and Saudization. With its combination of scale, urgency, and regulatory support, Saudi Arabia is on track to become a global leader in AI-powered construction, and TruBuild aims to be at the forefront of that evolution.

Kholoud Hussein 

Saudi Arabia is witnessing a significant transformation in its investment landscape, with Corporate Venture Capital (CVC) emerging as a pivotal mechanism through which large corporations are fostering innovation and contributing to the Kingdom's economic diversification goals outlined in Vision 2030.

The Emergence of CVC in Saudi Arabia

The rise of CVC in Saudi Arabia represents a structural evolution in how capital is deployed, risk is managed, and innovation is commercialized. Unlike traditional venture capital, which typically originates from financial institutions or specialized funds focused on returns, CVC in the Kingdom is increasingly driven by large corporations seeking to future-proof their businesses while aligning with national economic transformation goals.

This dual motive—strategic relevance and national alignment—has accelerated the institutionalization of CVC as a mainstream investment model across sectors ranging from energy and telecom to banking and retail.

From Passive Investment to Strategic Innovation Vehicle

Historically, corporate investment in startups within the region was opportunistic and reactive—often limited to sponsorships or minority passive stakes. Today, Saudi conglomerates and listed entities are adopting a more structured and proactive CVC architecture, complete with dedicated funds, governance models, and internal innovation mandates.

According to a 2024 report by MAGNiTT, CVCs accounted for 30% of all unique investors in Saudi Arabia’s venture market, a proportion higher than any other country in the MENA region. This surge reflects not only increased appetite from corporate boards but also regulatory encouragement and ecosystem readiness.

Additionally, between 2020 and Q3 2024, corporate investors in the broader MENA region deployed over $380 million across 1,361 tracked investment deals, with Saudi-based corporates contributing a significant share of those transactions. More importantly, CVCs in the Kingdom have moved beyond seed-stage activity, participating in later-stage rounds (Series A and B), signaling growing confidence in the scalability of regional startups.

Institutional Players Driving the Shift

Several corporate entities in Saudi Arabia have institutionalized venture activity, establishing internal venture arms with clear mandates:

• Aramco Ventures, the $7 billion investment vehicle of the national energy giant, focuses on decarbonization, digital industrial solutions, and downstream innovation—sectors vital to both corporate sustainability and national competitiveness.
• stc’s Tali Ventures has adopted a platform approach, investing across fintech, cybersecurity, AI, and content to support the Kingdom’s rapidly expanding digital economy.
• Financial institutions like Riyad Bank, SNB Capital, and SABB Ventures are actively deploying capital into fintech and regtech startups, both to modernize their own operations and to stay ahead in a region undergoing digital financial transformation.

These initiatives are not isolated experiments. They are now embedded within broader corporate innovation agendas, often reported at the board level and evaluated against both strategic KPIs and ESG metrics, signaling a maturation of the CVC model.

Macroeconomic Drivers Behind the Shift

Several macroeconomic and policy trends have catalyzed the rise of CVC in Saudi Arabia:

1. Diversification pressure: With Vision 2030 emphasizing the contribution of non-oil GDP, large corporations are incentivized to hedge against sectoral stagnation by investing in adjacent or emerging industries.
2. Technological leapfrogging: By partnering with agile, innovation-first startups, corporations accelerate access to disruptive technologies, especially in areas like AI, green energy, and e-commerce.
3. Government encouragement: Programs like Monsha’at’s CVC initiatives, co-investment funds from SVC, and innovation zones like King Salman Park are actively drawing corporates into the venture ecosystem as anchor participants.
4. Global positioning: As Saudi companies expand internationally, CVC provides a strategic foothold in foreign innovation markets, while simultaneously drawing foreign startups into the Saudi market under joint ventures or strategic partnerships.

Strategic Alignment with Vision 2030

Saudi Arabia’s growing CVC activity is not happening in a vacuum—it is deeply synchronized with the Kingdom’s long-term strategic transformation under Vision 2030. As the country transitions from an oil-reliant economy to a diversified, innovation-led model, CVC is emerging as both a market instrument and a policy mechanism to accelerate this shift.

Where traditional economic reforms focus on infrastructure, education, and regulation, CVC functions as a fast-track channel for technological absorption, SME empowerment, and sectoral diversification—all cornerstones of Vision 2030.

Catalyzing Non-Oil Sector Growth

A central pillar of Vision 2030 is to increase the private sector’s contribution to GDP, particularly through high-growth industries such as fintech, healthtech, clean energy, and digital logistics. CVCs play a catalytic role here by identifying and nurturing startups in these sectors, thereby unlocking new value chains and expanding sector-specific ecosystems.

For example:

• Aramco Ventures has strategically deployed capital into carbon capture, hydrogen technologies, and industrial AI startups. These align not only with Aramco’s net-zero commitments but also with Saudi Green Initiative targets.
• stc’s Tali Ventures is channeling funding toward AI-powered analytics, cloud-native infrastructure, and digital content platforms—sectors critical to achieving the National Digital Transformation Strategy.

This alignment is intentional. Corporate venture arms are increasingly evaluated not just by ROI but by their contribution to national innovation metrics, including IP generation, employment in tech sectors, and localization of frontier technologies.

Driving Knowledge Transfer and Localization

Vision 2030 places emphasis on developing local capabilities—not only in terms of employment, but in innovation sovereignty. CVC-backed startups often act as conduits for technology transfer, bringing global models into the local context and adapting them to Saudi-specific challenges.

For example, healthtech startups backed by corporate investors in the Kingdom are localizing AI diagnostic tools and digital health records systems in Arabic, with full compliance to national data governance frameworks (under SDAIA). This wouldn't be feasible without the scaling infrastructure and compliance frameworks that large corporations provide.

This localization effort directly feeds into Human Capability Development, one of the Vision Realization Programs (VRPs), by giving Saudi technologists, engineers, and operators a platform to lead innovation on home ground.

Institutional Coordination and Policy Integration

Crucially, CVC activity in Saudi Arabia does not operate independently of the state. It is interwoven with broader institutional frameworks that include:

• Monsha’at, which supports SME development and regularly co-hosts demo days with CVCs.
• Saudi Venture Capital Company (SVC), which co-invests alongside corporate arms to amplify startup financing.
• Ministry of Investment (MISA), which works to facilitate smoother cross-border entry for foreign startups backed by Saudi corporates.

These synergies ensure that CVC activity is not just corporate strategy—it is part of a national innovation strategy. As a result, startups receiving corporate backing are more likely to be aligned with priority sectors identified in Vision 2030, from tourism tech and smart cities to energy optimization and AI governance.

A Policy Lever for Private Sector Empowerment

Vision 2030 explicitly calls for deepening the role of the private sector. CVC embodies this vision in action. It allows the private sector not only to participate in, but to shape, the Kingdom’s innovation trajectory. By positioning large corporations as venture backers, Saudi Arabia is bridging the traditional disconnect between startups and industrial giants.

As Majid Al-Qasabi, Minister of Commerce, stated in a 2024 forum: “The role of major companies is evolving. Today, they are not just employers or operators—they are incubators of national innovation capacity.”

In this context, Corporate Venture Capital in Saudi Arabia is not merely a business trend—it is a strategic policy instrument embedded in the country’s long-term economic vision. It reinforces the Kingdom’s ambition to become not only a regional hub for investment, but a global engine for innovation rooted in sovereign capability and entrepreneurial dynamism.

Impact on the Startup Ecosystem

Corporate Venture Capital (CVC) in Saudi Arabia is reshaping the startup ecosystem not only by injecting financial capital, but by fundamentally altering the structure, maturity, and scalability of emerging ventures. Unlike traditional venture capital firms that primarily seek high-return exits, CVCs in the Kingdom are driven by both financial objectives and strategic imperatives, creating a layered value proposition for startups.

Strategic Capital vs. Passive Investment

Startups backed by corporate venture arms often benefit from more than just funding—they gain access to the strategic infrastructure and commercial networks of the parent corporation. This includes distribution channels, procurement pipelines, regulatory facilitation, and, critically, early enterprise clients. For early-stage companies, such access can compress market entry timelines by years.

Take, for instance, fintechs backed by SNB Capital or stc’s Tali Ventures. These startups are not just experimenting in isolation—they are being integrated into live environments, piloting products directly within national banks or telecom platforms. This symbiotic approach allows startups to iterate rapidly and scale with less friction.

Sectoral Depth and Regulatory Advantage

In regulated industries such as finance, energy, health, and logistics, where bureaucratic complexity often inhibits innovation, CVC involvement provides a regulatory shield and operational runway. Startups working under the umbrella of corporates like Aramco Ventures or Riyadh Bank Ventures often report faster compliance onboarding, shared risk frameworks, and access to insider policy insights.

This is particularly important in sectors where time-to-market is constrained by licensing, certification, or policy alignment. As Nabeel Koshak, CEO of Saudi Venture Capital Company, stated: “Strategic capital is now a form of national capacity building. It allows startups to operate at the frontier of innovation while being tethered to institutional strength.”

Talent Development and Knowledge Transfer

Corporate-backed startups also become indirect beneficiaries of knowledge transfer. Through mentorship from corporate leadership, shared R&D facilities, and access to seasoned professionals, these ventures develop internal capabilities that exceed typical startup benchmarks. This can lead to higher retention, better governance, and stronger product-market fit over time.

Moreover, some corporates are now embedding startup staff into internal innovation teams—a reverse mentorship model that enhances agility on both ends.

Creating a Hybrid Funding Model

Another key development is the rise of co-investment models involving both CVCs and traditional VCs. According to MAGNiTT, nearly 87% of CVC-backed deals in Saudi Arabia during 2022–2023 included participation from institutional or regional venture capital funds. This hybrid approach diversifies the risk profile and expands the strategic bandwidth of the startup.

Startups that operate under this dual-investor structure often find themselves better positioned to attract international investors during later stages, particularly Series B and beyond, due to the credibility and operational grounding provided by corporate stakeholders.

Toward a Sustainable Innovation Ecosystem

Ultimately, the growth of CVC in Saudi Arabia is helping to mature the startup ecosystem in a way that is structurally sustainable. It is bridging the gap between experimental tech and industrial adoption. And in doing so, it is laying the groundwork for long-term ecosystem resilience—where innovation is not only celebrated, but continuously deployed, scaled, and institutionalized.

In short, CVCs in Saudi Arabia are not merely supporting startups—they are scaffolding a future where startups become part of the national economic architecture.

As Saudi Arabia continues to implement Vision 2030, the role of CVC is expected to expand further. Corporations are likely to increase their investments in startups, fostering innovation and contributing to the Kingdom's economic transformation. The synergy between corporate objectives and national goals positions CVC as a powerful tool for driving sustainable growth and positioning Saudi Arabia as a hub for innovation in the region.

Ghada Ismail

An MVP is not a prototype or a half-baked concept. It’s a functional product just stripped down to its core. It includes the most essential features that solve your customers' main problem. Think of it as the shortest path between your idea and real user feedback.

Instead of spending months building the “perfect” app or platform, you build something usable and release it early. This way, you avoid wasting time and money on features nobody wants.

Why MVPs Matter in the Startup Journey

1. Validation Before Scaling
   Your MVP helps you test the market before committing heavy resources. You’ll find out if there’s actual demand — and learn what users really care about.
2. Faster Time to Market
   Building an MVP helps you launch quickly. And in the startup world, speed often beats size.
3. Smarter Use of Resources
   Startups usually work with tight budgets. An MVP helps you focus only on what matters, reducing risk and avoiding feature bloat.
4. Informed Product Decisions
   By releasing early, you gather real-world data. That feedback becomes your compass for what to build next.

What an MVP Is Not

• It’s not a buggy or unpolished product. It should still be functional and user-friendly.
• It’s not a test run with your friends and family. Real users provide real feedback.
• It’s not the final version. It’s the beginning of a learning process.

Examples of MVPs in Action

• Instagram started as a photo-sharing app with just a few filters, no stories, no messaging.
• Dropbox first launched with a video explaining how the product would work, even before it was fully built.
• Uber began as a simple app connecting black car drivers with iPhone users in San Francisco.

These MVPs were not flashy. They were focused.

Tips for Building Your MVP

• Identify the core problem you’re solving.
• List the must-have features and ditch the rest.
• Choose the right tools for speed and simplicity.
• Build, release, and listen to your users.
• Iterate based on actual usage and feedback.

Final Thoughts: MVP Is a Mindset

Building an MVP isn’t just a tactic,  it’s rather a mindset. It encourages startups to learn, adapt, and grow in the most efficient way possible. In the fast-paced world of entrepreneurship, launching smart can be just as important as launching fast.

So if you’re at the early stage of your startup journey, don’t wait for perfect. Start with an MVP and let your users shape what comes next.

Kholoud Hussein 

In the rapidly evolving landscape of artificial intelligence (AI), a new breed of startups is emerging in Saudi Arabia and the broader Middle East and North Africa (MENA) region. These are generative AI-first startups—companies that are not merely incorporating AI into their operations but are fundamentally built around generative AI technologies. This strategic focus positions them at the forefront of innovation, offering scalable solutions across various sectors.

Defining Generative AI-First Startups

A generative AI-first startup is characterized by its foundational reliance on generative AI models. Unlike traditional companies that may adopt AI tools to enhance existing processes, these startups are conceived with AI at their core, leveraging technologies such as large language models (LLMs), generative adversarial networks (GANs), and other advanced algorithms to create novel content, solutions, or services.

Beyond Tools: Generative AI as the Core Business Model

In these startups, generative AI is not an auxiliary tool but the central component of their value proposition. This paradigm shift enables the creation of products and services that were previously unattainable, allowing for unprecedented levels of personalization, efficiency, and scalability. For instance, in the healthcare sector, generative AI can analyze vast datasets to generate personalized treatment plans, while in education, it can create customized learning materials tailored to individual student needs.

This approach also facilitates rapid prototyping and deployment, as AI models can be trained and fine-tuned to adapt to specific market demands swiftly. Consequently, generative AI-first startups can achieve significant market penetration with relatively lean operational structures, often requiring fewer human resources compared to traditional enterprises.

Prominent Generative AI-First Startups in Saudi Arabia and MENA

Several startups in Saudi Arabia and the MENA region exemplify the generative AI-first model:

• Mozn (Saudi Arabia): Specializes in enterprise AI solutions, including OSOS, a generative Arabic AI model designed for natural language understanding and generation. 
• Lucidya (Saudi Arabia): Offers a customer experience management platform powered by AI, providing real-time insights and interactions, with a particular focus on Arabic language analysis. 
• Kinetik (Saudi Arabia): Utilizes generative AI to personalize patient care, analyzing health data to provide tailored health plans and recommendations. 
• DXwand (Egypt & UAE): Develops AI-powered chatbots and voice assistants, focusing on Arabic and English language support to automate customer service and extract insights from unstructured data. 
• Seez (UAE): Provides AI-driven solutions for the automotive industry, including an AI-powered virtual assistant that enhances customer support with chatbot functionality and real-time insights. 

Strategic Implications for the Region

The rise of generative AI-first startups aligns with Saudi Arabia's Vision 2030, which emphasizes technological innovation and economic diversification. By fostering an ecosystem conducive to AI development, the region is positioning itself as a hub for cutting-edge technologies. Investments in AI infrastructure, talent development, and regulatory frameworks are critical to sustaining this growth trajectory.

Moreover, the success of these startups demonstrates the region's potential to make a significant contribution to the global AI landscape, offering solutions that address both local and international challenges. As generative AI continues to evolve, the MENA region's proactive engagement with this technology will be instrumental in shaping its economic and technological future.

In conclusion, generative AI-first startups represent a transformative force within Saudi Arabia and the MENA region, redefining traditional business models and unlocking new avenues for innovation. Their emergence underscores the importance of embracing advanced technologies to drive sustainable economic growth and competitiveness on the global stage.

Noha Gad

In an era where consumers demand faster deliveries, greater convenience, and seamless shopping experiences, a logistical transformation is occurring behind the scenes: the silent rise of dark stores. These unmarked, tech-driven fulfillment centers are quietly revolutionizing retail infrastructure, emerging as the critical link between digital storefronts and instant delivery expectations in our era of hyper-speed e-commerce and q-commerce.

Recent research showed that the global dark store market is expected to hit $32.91 billion in 2025, with a CAGR of 41%. Meanwhile, the dark store market in the Middle East and North Africa (MENA) is projected to reach $12.1 billion by 2030, growing at a CAGR of 36.1%.

What exactly are dark stores?

Unlike traditional retail stores designed for customer foot traffic, dark stores are optimized exclusively for online order fulfillment. They function as micro-warehouses, strategically located in urban centers to enable hyperlocal deliveries, sometimes in as little as 10 to 30 minutes.

These highly automated spaces eliminate all traditional retail elements: no storefronts, shoppers, or checkout lines. Instead, they feature AI-driven inventory systems, robotic pickers, and smart sorting technology operating around the clock. 

By focusing exclusively on high-demand products and leveraging predictive analytics, dark stores simultaneously achieve remarkable speed, reduced waste, and optimal space utilization, making them the perfect fulfillment solution for today's instant gratification economy.

Why dark stores are gaining traction in Saudi Arabia

Dark stores are gaining traction in the Kingdom thanks to several key factors aligned with the country’s economic, technological, and consumer trends:

• Rapid growth of e-commerce. Consumers increasingly prefer quick, convenient online shopping, especially for groceries and everyday essentials. 
• Demand for super-fast delivery. Dark stores enable 10-to-30-minute deliveries, meeting rising expectations for speed. Applications like Nana, Ninja, and Haseel leverage dark stores to offer instant grocery delivery.
• Urbanization and high population density. Cities like Riyadh, Jeddah, and Dammam have dense populations, making dark stores cost-effective for covering large demand areas.
• Investment in technology and startups. Saudi venture capital firms, such as STV and Jahez, fund quick-commerce startups adopting the dark store model.

How dark stores benefit the supply chain in Saudi Arabia 

Dark stores are transforming supply chain efficiency in Saudi Arabia by optimizing logistics, reducing costs, and improving delivery performance. They provide:

• Faster and more efficient order fulfillment.
• Lower operational costs.
• Enhanced inventory management.
• Scalability for Q-commerce.
• Reduced delivery costs and carbon footprint
• Better supplier and retailer collaboration.

Dark stores vs. traditional warehouses vs. micro-fulfillment centers

Unlike large warehouses, which are typically located on the outskirts of cities and designed for bulk storage, dark stores are compact, urban-based facilities optimized for speed. They act as hidden retail hubs—stocking high-demand groceries and essentials—and enable platforms like Nana and Jahez to deliver orders in under 30 minutes.

Their proximity to consumers and tech-driven picking systems makes them ideal for Saudis' on-demand culture, though their smaller size limits inventory capacity compared to sprawling traditional warehouses.

Meanwhile, traditional warehouses are the backbone of bulk logistics, serving big retailers and manufacturers. While they lack the agility of dark stores, they support large-scale e-commerce operations with lower per-unit storage costs. However, their distance from urban centers slows last-mile delivery.

The automated, high-density micro-fulfillment centers (MFCs), often embedded in existing supermarkets or standalone sites, use robotics and AI to fulfill online orders quickly. 

Dark stores are poised to play an even bigger role in Saudi Arabia’s retail and logistics landscape, driven by several key trends, notably hyperlocal and on-demand dominance, automation and robotics integration, sustainability and cost optimization, and regulatory and investment support.

Finally, dark stores are more than a passing trend in Saudi Arabia, they’re a strategic evolution in retail and supply chain efficiency. By combining speed, cost savings, and scalability, they address the Kingdom’s unique challenges: urbanization, high digital adoption, and demand for instant gratification.

Ghada Ismail

In recent years, Saudi Arabia has thrown open its doors to foreign entrepreneurs, promising 100% ownership, faster business licensing, and easier visa pathways. Backed by Vision 2030, these reforms aim to position the Kingdom as a startup magnet, especially as regional rivals compete for global talent and capital. While homegrown entrepreneurship is thriving, a growing number of foreign entrepreneurs are also seeing Saudi Arabia as a promising destination to launch startups. As traditional barriers fade and incentives increase, expats are stepping forward not just as contributors to the Saudi economy but as builders of entirely new ventures. But what exactly makes Saudi Arabia appealing to expatriate entrepreneurs, and what roadblocks still stand in their way?

Is It Easy for Expats to Start a Business in Saudi Arabia?

Starting a business as an expat in Saudi Arabia is more possible than ever, but it isn’t without challenges. On the upside, the government has rolled out a suite of reforms and incentives aimed at making the Kingdom an attractive launchpad for startups of all kinds. Startups led by foreign nationals can now apply for investment licenses without needing a Saudi partner, thanks to changes rolled out by the Ministry of Investment (MISA). The business visa process has also been simplified, with multi-entry options for founders and employees.

Entrepreneurial residency programs, such as the Special Talent and Premium Residency visas, offer an alternative to traditional work sponsorships. These permits provide greater mobility, the right to own property, and fewer employment restrictions—key incentives for global entrepreneurs considering Saudi Arabia as a base.

Opening the Door for Expat Founders: Premium Residency Options

Saudi Arabia’s evolving residency landscape is playing a crucial role in attracting global entrepreneurial talent. One standout initiative is the Premium Residency Program, which offers foreign professionals, investors, and startup founders the opportunity to live and work in the Kingdom with greater flexibility and fewer restrictions.

According to Monsha’at, the Premium Residency holders enjoy several key benefits, including the ability to own real estate, conduct business, invite family members, and move freely in and out of the country without a visa. Notably, they are exempt from expat fees and can transfer between employers without penalties—a significant shift from the older sponsorship-based system.

There are multiple tailored tracks under the program that cater to the needs of foreign entrepreneurs and investors:

Entrepreneur Residency is specifically designed for startup founders aiming to build and scale in Saudi Arabia. It allows entrepreneurs to nominate two team members for residency under the Special Talent category and exempts them from the Saudization quota (Nitaqat) for the first three years. Those who create 10 jobs in the first year and another 10 in the second can directly qualify for conditional permanent residency.

Investor Residency targets those looking to tap into the Kingdom’s booming economy and offers a streamlined path to long-term residency.

Other tracks like Special Talent, Gifted, and Real Estate Owner Residency further expand the program’s appeal, catering to scientists, artists, athletes, and property owners.

With both limited and unlimited duration options, the Premium Residency program is helping redefine what it means to be a foreign entrepreneur in Saudi Arabia, offering not just access but long-term stability and inclusion in the Kingdom’s ambitious development journey. 

On the policy side, recent changes have made it easier for non-Saudis to own 100% of their companies without the need for a local sponsor. Licensing procedures have been streamlined through platforms like “Meras” and “Monsha’at,” while the Ministry of Investment offers dedicated support for foreign investors looking to navigate regulations.

In the same context, foreign entrepreneurs can choose from several business structures based on their goals and industry, including:

Limited Liability Company (LLC)

Subsidiary of a Foreign Company

Joint Stock Company (JSC)

Regional Headquarters (RHQ)

Technical and Scientific Services Office (TSSO)

According to the Setup in Saudi website - a comprehensive digital platform designed to assist foreign entrepreneurs and businesses in establishing and growing their ventures within Saudi Arabia - each structure offers distinct benefits depending on the founder’s vision and operational needs, and consulting with a qualified business advisor or local incubator is highly recommended to navigate the legal and regulatory landscape smoothly.

Further, the Saudi Arabian General Investment Authority (SAGIA), now part of the Ministry of Investment (MISA), has made it possible for foreigners to obtain investment licenses within days, streamlining what used to be a more complicated process.

The Drawbacks:
However, barriers remain. Bureaucracy, though improving, can still be complex and time-consuming. Some expats face difficulties understanding regulatory updates, especially if they’re unfamiliar with Arabic or the local legal system. Moreover, competition in certain sectors—like food tech or logistics—has intensified, particularly from well-funded Saudi firms.

Cultural nuances also pose hurdles. Building trust with local partners or clients often requires deeper integration into Saudi business etiquette, which can be unfamiliar to newcomers. For many expats, establishing credibility and a reliable local network takes time—and often, patience.

Vision 2030 Impact:
Vision 2030, the Kingdom’s landmark transformation plan, explicitly encourages foreign participation in building a diversified, knowledge-based economy. The plan supports SMEs and startups through funding bodies like the Saudi Venture Capital Company (SVC), the Social Development Bank, and the Public Investment Fund (PIF).

Moreover, the Monsha’at SME Authority provides training, mentoring, and subsidized tools to early-stage founders—services which are increasingly accessible to expat entrepreneurs. Free zones and innovation hubs such as King Abdullah Economic City (KAEC), Neom’s Oxagon, and the Riyadh Techno Valley also offer regulatory and operational advantages to foreign-led ventures.

Real-Life Stories: Finding the Right Fit in Saudi Arabia

One compelling example of foreign expansion into Saudi Arabia comes from Waagner Biro Steel and Glass, an Austrian firm with over 165 years of engineering expertise, whose success story was narrated by the Setup in Saudi website. 

Known for high-profile projects across the Middle East, including the Floating Bridge and Al Noor Island Development in the UAE, the company recognized Saudi Arabia as the next logical step, both strategically and economically.

“We saw a market that’s simply too big to ignore,” said Jason Wilson, General Manager of Waagner Biro Steel and Glass. “The upcoming global events—like the 2029 Asian Winter Games and Expo 2030—are more than milestones. They are catalysts driving accelerated urban development.”

Motivated by the ambitions of Vision 2030 and the scale of infrastructure transformation underway, the firm partnered with expansion platform AstroLabs to navigate entry into the Saudi market. With local guidance, they were able to efficiently meet entry requirements, build the right relationships, and set up operations aligned with their long-term vision.

Wilson emphasizes that local engagement is key. “It takes face-to-face interaction. Don’t spend too much time developing remote strategies. Get on the ground. Meet suppliers. Assess capacities. The earlier you’re in, the sooner you adapt.”

Waagner Biro’s story underscores how established foreign companies, when supported by local networks and aligned with national priorities, can thrive in Saudi Arabia’s evolving economic landscape.

Challenges to Watch Out For

Despite the promising developments, launching a startup in Saudi Arabia as an expat is not without its friction points.

Legal and Licensing Complexities:
Even with streamlined procedures, licensing can still be nuanced depending on the sector. Certain activities require approvals from multiple agencies, and rules around foreign ownership can vary for industries deemed strategic or sensitive. Navigating these nuances often requires legal counsel or local advisors, adding to the cost and complexity.

Access to Capital:
While the venture capital scene is growing rapidly, access to funding for expat-led startups is still somewhat limited compared to those with Saudi founders or partnerships. Many local VCs prefer to back teams with a strong Saudi presence or deep local understanding. Establishing investor confidence as an outsider can be difficult unless paired with a compelling Saudi-market value proposition or a local co-founder.

Hiring and Retention:
Saudi Arabia’s labor laws and Saudization requirements—while not always applicable to early-stage ventures—can still affect long-term hiring plans. Many expat founders report challenges in finding the right mix of local and international talent, especially in niche tech or design roles.

Cultural and Consumer Fit:
Creating a product that resonates with Saudi consumers often requires an insider’s perspective. Foreign founders must take time to understand social norms, spending habits, and consumer expectations. What works in Western or Asian markets may not translate directly in the Kingdom.

Navigating the Ecosystem:
While support programs are abundant, knowing which doors to knock on isn’t always easy. Some expats report difficulty navigating the overlapping mandates of multiple government agencies or gaining visibility within local investor networks.

Conclusion & Future Outlook

Saudi Arabia is emerging as a serious contender on the global startup map, not just for Saudis, but increasingly for the world’s entrepreneurs. Its fast-growing market, government-backed funding, and ambitious economic diversification goals make it a fertile ground for innovation.

For expat founders, the opportunity is clear: access to a young and growing population, government support, and a hunger for new ideas. But success requires more than just a visa and a business plan. It takes cultural adaptability, regulatory know-how, and the ability to forge strong local partnerships.

As the Kingdom continues to open its doors to global talent, the next wave of startups will likely be built by teams that blend international experience with local insight. And for those willing to learn, adapt, and build with intention, Saudi Arabia may well be one of the most promising frontiers for entrepreneurship today.

Advice for Aspiring Expats:

• Do your homework. Understand the legal and market landscape before making the leap.
• Build local connections early. Having a Saudi partner, mentor, or advisor can be invaluable.
• Be patient but proactive. Things move quickly, but building trust takes time.
• Leverage the ecosystem. From incubators to grants, take full advantage of what’s available.

With the right mix of preparation and adaptability, expat founders can thrive and help shape the future of Saudi innovation.

Noha Gad

The loyalty program market in Saudi Arabia is poised for steady growth in the coming years, fueled by innovative product launches and businesses increasingly leveraging loyalty strategies to boost sales and revenue.

According to a recent report published on Research and Markets, one of the world’s largest research market stores, the Saudi loyalty market is projected to grow by 15.4% annually, reaching $842.5 million in 2025, with a CAGR of 13% from 2025–2029, propelling the market to $1.37 billion by 2029.

This growth reflects a transformative shift in the Kingdom’s loyalty landscape, driven by technological advancements, evolving consumer demands, and Vision 2030-aligned policies that incentivize digital innovation.

At the forefront of this evolution is Resal, a pioneer in redefining loyalty and rewards solutions. By offering cutting-edge digital platforms, Resal bridges merchants, businesses, and consumers through an expansive, seamless network.

To explore Resal’s role in shaping the future of the loyalty and rewards landscape in Saudi Arabia, Sharikat Mubasher held an interview with CEO Hatem Kameli to discuss industry trends, growth drivers, and the company’s vision for revolutionizing the sector.

How does Resal contribute to the growth of digital payments in Saudi Arabia, and what makes your services unique?

Resal plays a pivotal role in advancing digital payments in Saudi Arabia by offering innovative solutions in digital cards, rewards, and loyalty programs. Our platform empowers individuals, businesses, and merchants to maximize the benefits of digital value through seamless and exceptional experiences. 

What sets Resal apart is our commitment to providing effortless rewards, seamless payouts, and smarter loyalty solutions. By integrating cutting-edge technology, we ensure that our services are not only efficient but also tailored to meet the evolving needs of our users. 

What are the biggest challenges facing loyalty programs in the Kingdom, and how do you address them?

The current loyalty and rewards landscape is fragmented, causing inefficiencies for consumers, businesses, and merchants. Consumers struggle to manage and redeem scattered loyalty points; businesses lack efficient tools for rewards and payouts; and merchants face challenges in digitizing and monetizing programs.

Resal addresses these issues by offering a unified digital platform that:

● Empowers consumers to aggregate and use loyalty points across a broad network.

● Enables businesses to manage and distribute rewards and incentives seamlessly.

● Helps merchants issue and manage digital prepaid cards and loyalty programs, enhancing customer engagement.

With 1.5 million users, how does Resal plan to scale its alternative digital payment solutions?

Resal has successfully secured $9 million in Series A funding to expand our digital rewards in Saudi Arabia. This investment will be utilized to enhance our technological infrastructure, develop new products, and expand our services to a broader audience.

Our growth strategy includes targeting new sectors, launching various technological products for alternative payment solutions, and strengthening our partnerships to reach more users and businesses across the Kingdom.

How does Resal plan to maintain its lead in digital rewards and loyalty programs, both regionally and globally?

To maintain our leadership position, Resal focuses on continuous innovation and strategic partnerships. We are committed to developing scalable products and services that cater to the evolving needs of our users with different use cases.

Our vision includes expanding our presence in the Middle East and North Africa region, offering alternative payment solutions, and enhancing our loyalty programs to provide more value to our users.

How will Resal’s partnership with Grintafy revolutionize Saudi Arabia’s sports sector?

Resal's strategic partnership with Grintafy aims to empower players and the sports community by offering digital rewards and creating an interactive user experience that encourages continuous skill development. 

By integrating our digital rewards solutions with Grintafy's platform, we provide athletes with incentives that motivate them to improve their performance and engage more deeply with the sports community. This collaboration is set to transform the way athletes and sports enthusiasts interact with digital platforms in Saudi Arabia.

Beyond sports, what other sectors does Resal target for expansion?

Beyond sports, Resal is strategically expanding its presence across several high-growth sectors, notably entertainment and lifestyle. These industries are integral to everyday consumer engagement, and our solutions aim to elevate how users interact with brands through seamless digital rewards and gifting experiences.

Our goal is to become a leading platform in innovative payment and spend management across diverse lifestyle sectors, enriching how people connect with brands and services through intelligent, easy-to-use digital tools.

What trends do you see shaping the future of loyalty programs in Saudi Arabia?

The future of loyalty programs in Saudi Arabia is being shaped by several key trends:

● AI-Powered Personalization through Data Analytics: Leveraging artificial intelligence to deliver personalized rewards and experiences is becoming increasingly important in meeting consumer expectations.

● Rise of Coalition Loyalty Programs: There is an increasing trend towards coalition loyalty programs, where multiple brands collaborate to offer shared rewards. This approach provides customers with more versatile and valuable benefits, enhancing the overall appeal of loyalty programs.

● Experiential Rewards: Saudi consumers are increasingly valuing unique experiences over mere discounts. Loyalty programs are evolving to offer curated lifestyle experiences such as exclusive dining events, travel packages, and entertainment options, fostering deeper emotional connections with brands.

Resal is at the forefront of these trends, continuously innovating to provide loyalty solutions that align with the evolving preferences and values of consumers in Saudi Arabia.

Kholoud Hussein 

In the evolving dynamics of global entrepreneurship, the flow of capital, talent, and innovation is increasingly bridging emerging economies across continents. One of the most significant developments in this regard is Saudi Arabia’s strategic repositioning as the primary MENA gateway for African tech startups—a trend driven not by rhetoric, but by capital allocations, institutional reform, and regional opportunity alignment.

This transformation reflects the Kingdom’s broader shift under Vision 2030, which is steering the economy away from hydrocarbon dependency and toward a diversified, knowledge-driven model. In this model, the cross-pollination between African tech ecosystems and Saudi institutional frameworks presents unique, untapped upside.

Capital Flows: Saudi Arabia as the MENA VC Anchor

According to the 2024 annual report by MAGNiTT, Saudi Arabia captured over 40% of total MENA venture capital deployment, with approximately $750 million invested across 178 deals. This capital momentum is not only domestic—it is regionally magnetic. African tech startups are increasingly looking to Riyadh not just for financing, but for access to structured scale-up ecosystems.

In particular, startups from Nigeria, Kenya, Egypt, and South Africa—Africa’s “big four” in venture activity—are actively building bridges with Saudi VCs, accelerators, and sovereign funds.

Nabeel Koshak, CEO of the Saudi Venture Capital Company, noted: “Saudi Arabia’s emergence as a regional VC leader is not accidental. It is the result of well-orchestrated Vision 2030 policies that positioned the Kingdom as a scale-up launchpad for emerging market innovators.”

The increasing presence of Saudi investors in African seed and Series A rounds further confirms this trend. According to Partech Partners, African startups raised $2.9 billion in 2023, and Saudi entities participated in at least 18% of MENA-to-Africa cross-border deals—an uptick from just 6% two years earlier.

Infrastructure and Institutional Capacity: Building a Launchpad for Scale

Saudi Arabia is not merely offering capital—it is building the structural backbone for scale. The creation of tech-centric free zones, R&D parks, and advanced data centers under the purview of SDAIA (Saudi Data and AI Authority) underscores the government’s commitment to digital infrastructure as a comparative advantage.

Events like LEAP, the Kingdom’s flagship global tech conference, have become essential touchpoints for African startups seeking visibility, capital, and market access. In 2023, more than 16 Nigerian and Ghanaian startups exhibited at LEAP, while delegations from Egyptian incubators signed MOUs with Saudi accelerators such as Misk and Flat6Labs Riyadh.

These engagements are not symbolic. They are backed by a growing web of incentives: expedited business registration for foreign tech firms, streamlined visa processes for startup founders, and co-investment opportunities through sovereign programs like Jada and PIF’s Sanabil Investments.

Geographic and Strategic Alignment: Logistics Meets Market Proximity

Saudi Arabia’s emergence as a regional launchpad for African tech startups is not solely a function of capital or policy—it is deeply rooted in its geographic positioning and the strategic vision that leverages it.

Situated at the intersection of Africa, Asia, and Europe, the Kingdom occupies a location of immense logistical value. Major cities like Riyadh, Jeddah, and Dammam offer direct air and sea connectivity to over 40 countries within a 4–6 hour range, encompassing key markets such as Egypt, Kenya, the UAE, India, and Turkey. African tech founders are increasingly viewing this geographic centrality as a force multiplier, especially those operating in mobility, trade-tech, agri-supply chains, and cross-border fintech.

In practical terms, this translates into tangible operational and commercial advantages. For example, a Nigerian health logistics startup seeking to scale its diagnostic supply chain into the GCC can use Jeddah Islamic Port or King Abdullah Port as logistical hubs, reducing customs latency and last-mile costs in other Gulf states. Similarly, Kenya-based agritech companies looking to access northern Africa and the Levant can now tap into Saudi Free Economic Zones, which offer bonded warehousing and tariff incentives.

Saudi Arabia has capitalized on this advantage by investing heavily in logistics infrastructure. The National Transport and Logistics Strategy (NTLS), launched in 2021 and now in mid-implementation, aims to position the Kingdom among the top 10 global logistics hubs by 2030. To date, more than SAR 40 billion ($10.6 billion) has been allocated to the development of smart ports, rail connectivity, and logistics cities, such as the Logistics Zone at King Salman Energy Park (SPARK).

This is not just policy ambition—it’s being translated into practice. According to the General Authority for Ports (Mawani), container throughput in Saudi ports increased by 13% in 2024, largely due to demand from emerging regional trade routes that now include Sub-Saharan exporters.

“African startups, especially in trade, food security, and industrial tech, increasingly see Saudi Arabia as a bridge, not a wall, between fragmented markets,” said Mazen Al-Dawood, a logistics investor and board advisor to a regional agri-export group.

Al-Dawood added: “Our ports and supply corridors are not just serving domestic needs—they’re enabling intercontinental commerce.”

Further bolstering this position is the Kingdom’s growing investment in digital logistics platforms, many of which are open to African integrations. Local startups such as BARQ and Odiggo, operating in smart delivery and mobility logistics, have already begun forming commercial alliances with African peers, opening pathways for API-based services, AI-optimized routes, and payment settlement interoperability.

This strategic convergence of geography, infrastructure, and digital integration makes Saudi Arabia not just a node on the map, but an active facilitator of South-South trade flows and innovation pipelines. In this context, the Kingdom is evolving beyond a mere market destination to become a supply chain orchestrator for African ventures scaling into the Middle East and South Asia.

For founders and investors alike, the implications are clear: location is no longer passive—it is an economic enabler. And Saudi Arabia is now using its geography as a deliberate, monetizable asset to attract the next wave of globally scalable startups from Africa.

IV. Policy-Led Enablement: From Vision to Execution

Saudi Arabia’s transformation into a regional startup and innovation hub is underpinned not only by capital inflows and infrastructure, but more fundamentally by a deliberate, policy-driven framework designed to attract and retain high-growth ventures. The country’s ability to operationalize Vision 2030 through institutional reform and policy synchronization is what differentiates it from other regional players.

At the core of this policy architecture is the Ministry of Investment (MISA), which has reengineered foreign investment protocols to make market entry for non-Saudi tech companies significantly more seamless. Through fast-track licensing, streamlined regulatory pathways, and sector-specific incentives, the Ministry has become a single-window interface for global and regional startups—including those from Africa—looking to establish a footprint in the Kingdom.

Complementing this is the General Authority for Small and Medium Enterprises (Monsha’at), which plays a catalytic role in enabling international startups to access local capital, talent, and partnerships. Monsha’at has launched initiatives such as the Soft Landing Program, which provides African startups with subsidized access to office space, legal services, and mentorship during their entry phase.

Further, the implementation of the National Strategy for Data and Artificial Intelligence (NSDAI)—a multi-year framework developed by the Saudi Data and AI Authority (SDAIA)—has created one of the most forward-looking data governance ecosystems in the region. This is a key draw for African startups operating in healthtech, fintech, agritech, and AI-driven logistics, where data protection, interoperability, and compliance are critical.

As Esam Alwagait, Director of SDAIA, stated during the Future Investment Initiative, “We are building a data-first economy. Regulatory clarity and security are not negotiables—they are national imperatives. This is what responsible tech innovators are looking for.”

In parallel, the Saudi Central Bank (SAMA) has modernized its fintech licensing and sandbox frameworks, providing international startups—especially those in payments, neobanking, and insuretech—with a pathway to operate, test, and scale within a regulated environment. This is particularly beneficial for African fintechs aiming to export their solutions to the Gulf, where regulatory harmonization remains a key barrier.

These reforms are not purely administrative—they represent a philosophical shift in how Saudi Arabia views its private sector. By fostering a startup-first regulatory mindset, the Kingdom is moving from a gatekeeper model to an enabler model. The success of this shift is reflected in a marked increase in foreign-founded startups receiving funding from local VCs and accelerators.

According to a 2025 report from the Saudi Investment Promotion Center, 28% of startups that received early-stage funding in the Kingdom last year had at least one non-Saudi founder—a record figure and a signal of growing ecosystem openness.

The Road Ahead: Strategic Interdependence or Opportunistic Trend?

The question remains: will Saudi Arabia’s growing role as a MENA base for African startups develop into long-term economic interdependence, or is it a temporary capital arbitrage opportunity?

The answer likely lies in execution. If Saudi Arabia continues to blend financial liquidity, regulatory foresight, and infrastructural depth with regional engagement, the Kingdom could evolve into what Singapore is to Southeast Asia: a trusted, scale-efficient launchpad for cross-border innovation.

A Strategic Convergence, Not a Coincidence

Saudi Arabia is not accidentally becoming the gateway for African tech startups in MENA—it is designing itself to be. With a clear alignment of national vision, institutional capital, geographic leverage, and regional partnership strategies, the Kingdom is poised to become a launchpad for African innovation into larger markets.

In doing so, it is not just rewriting the rules of regional venture expansion—it is actively redrawing the map.

Ghada Ismail

In the fast-evolving world of fintech and Web3, new technologies are reshaping how we build, invest, and exchange value. Among the most talked-about innovations is tokenization, a powerful tool that’s opening up new revenue models, improving asset liquidity, and redefining ownership as we know it.

For startups exploring new ways to scale or tap into previously illiquid markets, tokenization offers more than just technical appeal, it represents a shift toward more inclusive, programmable finance. But what does it actually mean, and how does it work? Let’s break it down.

Tokenization is the process of digitally representing ownership rights to real-world or digital assets using blockchain technology. At its core, it involves creating cryptographic tokens that correspond to a specific asset, such as real estate, securities, commodities, or intellectual property, allowing these tokens to be securely transferred and traded on a decentralized network.

Unlike traditional records of ownership maintained by centralized institutions, tokenized assets are managed through smart contracts and distributed ledgers, ensuring transparency, immutability, and programmability. Tokenization enables assets to be fractionalized, making them more liquid and accessible to a broader range of participants.

How It Works

The tokenization process typically involves three main components:

1. The underlying asset – a tangible or intangible item with economic value.
2. A blockchain protocol – a decentralized network that records and verifies transactions.
3. The token – a digital unit that represents ownership rights or claims to the underlying asset.

For instance, a commercial property valued at $10 million can be tokenized into 100,000 tokens, with each token representing a 0.001% ownership stake. These tokens can then be issued, held in digital wallets, and traded on compliant secondary markets.

Smart contracts govern the rules of issuance, transferability, dividend distribution (if applicable), and compliance checks, removing the need for traditional intermediaries and manual processes.

Types of Tokens

Tokenized assets are commonly issued in one of two forms:

• Security Tokens – representing regulated financial instruments such as equity, debt, or funds. These are subject to securities laws and compliance protocols.
• Utility Tokens – granting access to a specific platform, service, or product, though not representing ownership in a legal sense.

The key distinction lies in their legal treatment and functional use. Tokenization platforms must ensure proper classification and adherence to jurisdictional regulations.

Benefits of Tokenization

Tokenization offers several significant advantages across industries:

• Improved liquidity: Fractional ownership enables smaller investments and increases the marketability of traditionally illiquid assets.
• Enhanced transparency: Blockchain provides an immutable audit trail for all transactions.
• Operational efficiency: Smart contracts reduce reliance on intermediaries and streamline settlement processes.
• 24/7 market access: Unlike traditional exchanges, tokenized assets can be traded around the clock.

These benefits are especially impactful in sectors like real estate, private equity, art investment, and structured finance, where asset transfers are often slow, opaque, and costly.

The Road Ahead

Tokenization is poised to play a foundational role in the future of finance. As legal frameworks, interoperability standards, and institutional adoption continue to evolve, tokenized markets are expected to unlock new forms of capital formation, cross-border trade, and financial inclusion.

In essence, tokenization is not just a technological advancement; it’s rather a re-architecture of ownership, with the potential to make global markets more efficient, accessible, and secure.