Noha Gad

The freelance market in Saudi Arabia has witnessed rapid growth and transformation in recent years, becoming a dynamic and integral part of the national economy. This evolving sector offers flexible opportunities that empower individuals and foster innovation across various industries, aligning with the Vision 2030 agenda.

Digital platforms have played a key role in facilitating seamless connections between freelancers and businesses. Among these platforms, Hurr (formerly Passioneurs) has established itself as a leader in the freelance market, thanks to its secure, user-friendly platform that supports both entrepreneurs and freelancers. 

Sharikat Mubasher spoke with Muna Balhamar, CEO and Founder of Hurr, to learn more about the platform’s role in transforming the freelance industry in Saudi Arabia and the wider region, as well as its next steps to expand its presence locally and regionally, notably following the launch of its new identity.

First, how does Hurr’s business model support entrepreneurs in Saudi Arabia and the wider GCC region?

Hurr was built around one simple belief: entrepreneurship should be accessible, flexible, and sustainable. Our business model supports entrepreneurs and companies by giving them an easy way to find verified freelancers across more than 100 fields, without the burden of traditional hiring.

We help companies cut their employment-related costs by up to 60% by giving them instant access to qualified freelancers instead of hiring full-time roles they do not actually need. This allows entrepreneurs to stay lean, move faster, and grow without heavy overhead.

At the same time, we give freelancers a structured, trusted platform where they can build a real income, access opportunities across the GCC, and scale their skills into long-term careers.

In short, Hurr creates a win-win ecosystem: lowering costs for businesses while expanding opportunities for freelancers—both essential to the growth of entrepreneurship in the region.

How do you utilize technology to help users reduce operational costs?

Technology is at the core of how we help our users focus on their craft rather than overhead. We provide a robust digital marketplace where freelancers and entrepreneurs can create profiles, showcase their services, receive assignments, and get paid, all within one streamlined system. This reduces the need for them to build and maintain complex systems themselves.

We automate key processes: from client-matching and job allocation to payment processing and service review. That means less time spent on admin, less cost on infrastructure, and fewer mistakes.

We also offer analytics and insights to enable entrepreneurs to understand their utilization, pricing, service delivery, and client feedback, helping them optimize their operations and reduce waste.

We invest in scalable cloud infrastructure, modular design, and shared services, which pass cost savings directly to our users so they do not carry the burden of building expensive tech themselves.

And now, we are taking this a step further with our new AI-powered tools. These include features like AI-generated job descriptions to help clients describe their requirements more clearly, smarter AI matching to connect them with the best candidates instantly, and automated filtering to reduce time spent on reviewing profiles. All of this helps businesses hire faster and more accurately, while significantly cutting operational costs.

In essence, we provide the “platform as a service” layer to help entrepreneurs focus on delivering excellence, not on building technology from scratch.

You recently unveiled a new identity. How will this milestone reinforce your presence in the Saudi market and the broader region?

Unveiling our new identity was more than a visual refresh—it was a strategic step toward strengthening our presence in Saudi Arabia, the GCC, and the wider Arab region.

The new brand reflects who we are today: a mature, confident, region-focused platform that understands local culture, language, and the evolving needs of both freelancers and businesses. It reinforces our commitment to being a truly Arab brand built for Arab talent.

It also boosts our credibility. A strong, modern identity helps us stand out in a competitive market and positions Hurr as a trusted partner for organizations across Saudi Arabia and the region. It creates clearer visibility, a deeper connection with users, and a unified message that supports expansion into GCC markets and the broader Arab world.

Most importantly, the new identity aligns our team, our freelancers, and our partners under one vision, helping us scale faster and build a platform that genuinely represents the future of freelancing in our region.

As a woman founder, what are the key challenges female entrepreneurs face in Saudi Arabia, and how do you see the Kingdom’s efforts to empower them?

To be honest, I do not see the challenges the way they are often portrayed. In Saudi Arabia today, women founders actually have incredible opportunities. The ecosystem is opening doors for us, not closing them. We are building companies, attracting partnerships, and leading teams in our own feminine, unique way, and the market is responding positively to that.

What stands out to me is how strongly the Kingdom is supporting and empowering women. From representation to visibility to access, we are seeing genuine encouragement for women to step into leadership and entrepreneurship. The environment now rewards competence, creativity, and commitment, and women in Saudi Arabia are showing all of that and more.

So instead of focusing on obstacles, I see momentum. I see women leading with clarity, compassion, and strength. And I see Saudi Arabia actively creating a space where female entrepreneurs can thrive, scale, and contribute meaningfully to the economy across the GCC and Arab region.

In your opinion, how does the private sector contribute to enhancing the entrepreneurship ecosystem in Saudi Arabia in general, and the freelancing sector in particular?

The private sector in Saudi Arabia today is playing a huge role in pushing the entrepreneurship scene forward. Companies are becoming more open to new models of work, including freelancing, and that shift alone has unlocked a lot of opportunities for talent and for platforms like Hurr.

What I am seeing is that the private sector is no longer waiting for traditional hiring cycles. They want agility, speed, and specialized skills, and freelancers provide exactly that. When big organizations start integrating freelancers into their workforce, it sends a clear message: freelancing is not just a side gig; it is a real, professional career path.

At the same time, companies are collaborating with platforms, creating structured projects, supporting young talent, and giving people a chance to prove themselves. This combination, flexibility and opportunity, is what strengthens the ecosystem. And honestly, it is one of the reasons why the freelancing sector is growing so fast, not only in Saudi Arabia, but across the GCC and the wider Arab region.

Finally, what are Hurr’s plans to strengthen its position in Saudi Arabia and the GCC?

Our focus is very clear: to grow deeper in Saudi Arabia and expand confidently across the GCC. We are doing this by building a truly local, Arab-first experience that reflects the needs of our market.

A few of our next steps include:

● Enhancing the platform with more AI tools that make hiring faster, smarter, and more accurate, from auto job descriptions to intelligent matching and filtering.

● Expanding our freelancer community with more specialization and higher-quality talent that matches the demands of the region.

● Forming strategic partnerships with companies that want reliable, flexible, and cost-efficient hiring solutions.

● Strengthening our presence across the GCC, making it easier for companies to hire across borders and for freelancers to work regionally.

● Building an ecosystem, not just a platform, one that connects talent, companies, and opportunities across the Arab world.

And ultimately, our goal is to position Hurr as the leading platform for freelance solutions in Saudi Arabia, the GCC, and the wider Arab region — the place companies trust and freelancers prefer.

Kholoud Hussein 

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

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

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

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

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

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

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

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

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

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

Policy and Institutional Infrastructure Across Regions

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

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

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

Sectoral Strengths in Regional Hubs

Each emerging hub is developing unique sectoral strengths:

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

Events and Investment Platforms Fueling Local Growth

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

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

Talent, Academia, and Regional Collaboration

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

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

Regional Hubs: Challenges and Diverging Prospects

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

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

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

Looking Ahead: A Network of Real Startup Cities

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

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

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

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

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

Kholoud Hussein

In recent years, Saudi Arabia has witnessed a remarkable increase in the visibility of women-led startups. From tech-driven platforms to homegrown fashion brands, female entrepreneurs are gaining traction in the Kingdom’s evolving business landscape. But as the spotlight intensifies—especially under the broad banner of Vision 2030—a critical question emerges: Are women-led startups in Saudi Arabia a quiet revolution reshaping the economy, or are they part of a carefully curated PR narrative aimed at polishing the Kingdom’s global image?

The answer lies somewhere in between. While genuine structural reforms and individual success stories signal meaningful progress, the overwhelming emphasis on optics and international perception also plays a prominent role.

Legal and Policy Shifts Enabling Women Entrepreneurs

Before the launch of Vision 2030 in 2016, the economic participation of Saudi women faced substantial structural and societal barriers. Business ownership required male guardian approval, mobility was severely restricted, and access to funding and banking services was minimal. Many women operated informally from home, often limited to traditionally “feminine” sectors like tailoring, catering, and private tutoring.

The narrative began shifting dramatically with Crown Prince Mohammed bin Salman’s ambitious reform agenda. Vision 2030 placed women’s economic empowerment at the center of national transformation, not just for gender parity but as an economic imperative. Reforms rolled out in rapid succession: women could start businesses without guardian approval, freely open bank accounts, and participate in major economic sectors previously off-limits.

The regulatory overhaul included streamlined company registration through platforms like Meras, flexible work arrangements, and enhanced maternity protections. Institutions like Monsha’at, the General Authority for Small and Medium Enterprises, began offering targeted support, including training programs and access to incubation hubs. Public-private partnerships, such as Flat6Labs, Wadi Makkah, and Badir, have incorporated specific tracks to support female founders.

Indicators of Growth and Participation

The numbers paint a compelling—if still partial—picture of progress. According to the Saudi Ministry of Commerce, the number of women-owned businesses rose by over 60% between 2016 and 2023. Women now own more than 25% of registered SMEs, with a strong presence in sectors such as e-commerce, fashion, beauty tech, wellness, edtech, and food delivery.

The country also saw female labor force participation grow from 17% in 2016 to over 36% by the end of 2023, suggesting that female entrepreneurship is riding on the back of broader economic integration.

Still, the funding picture remains uneven. While women-led startups have secured high-profile funding rounds—especially in health tech and e-commerce—they receive less than 7% of total venture capital deployed in the Kingdom, according to a 2024 report by MAGNiTT. Most of this funding is clustered in early-stage rounds, with a significant drop-off when it comes to scale-ups.

Inside the Experience: Success, Exposure, and Gaps

Behind the aggregate numbers are real women who reflect both the promise and pitfalls of Saudi Arabia’s startup revolution.

Take the case of Sara Al-Rashed, founder of a Saudi edtech platform offering gamified Arabic learning tools for children. Her company received support from a local accelerator and won recognition at regional innovation forums. Yet, when it came time to scale, she struggled to attract Series A funding. Several investors voiced concern about her ability to lead a high-growth tech company as a solo female founder—a subtle but telling form of gender bias.

In contrast, Reem Al-Jaber, who launched a high-end wellness and beauty brand targeting GCC markets, not only received angel investment but also inked distribution partnerships with two major Saudi retailers. Her success was featured in multiple government-sponsored media outlets and at international trade events. Yet, critics note that her brand, while highly visible, has yet to break even—a reminder that not all media coverage reflects business fundamentals.

These examples reveal a complex truth: some women are building resilient, scalable startups, while others gain media traction without matching financial success. The disparity highlights the need to distinguish between authentic progress and symbolic representation.

Public Narratives and the Power of Visibility

Saudi Arabia’s image overhaul is a cornerstone of Vision 2030, and women entrepreneurs are a critical part of that strategy. High-profile forums like LEAP, FII, and the Global Entrepreneurship Congress regularly spotlight female founders as proof of the Kingdom’s modernization. International media coverage often portrays these women as pioneers, shattering stereotypes in a conservative society.

While these stories are real and inspirational, the heavy emphasis on a few selected figures risks reducing systemic progress to PR optics. Corporate sponsors, banks, and government agencies often feature women entrepreneurs in ESG reports and ad campaigns, aligning their brand with the Kingdom’s progressive image. The Saudi Public Investment Fund (PIF) and the Ministry of Investment frequently emphasize female participation as part of their global investor pitch decks.

This strategic branding is not inherently negative—visibility matters. But without consistent support, mentorship, and equitable access to capital, these stories risk becoming superficial showcases rather than sustainable models of empowerment.

Challenges Below the Surface

Despite reforms, significant barriers persist for women-led startups. Access to funding remains a top hurdle. Investor networks are still predominantly male, and many women lack the informal connections or technical backgrounds that VCs typically favor.

Scaling a startup often requires partnership with logistics firms, government contractors, or large-scale suppliers—areas where women still face subtle discrimination. Moreover, societal expectations continue to weigh heavily. Many female entrepreneurs juggle business leadership with family obligations, in a culture that still views caregiving as a woman’s primary role.

These challenges are particularly acute outside urban centers like Riyadh and Jeddah, where conservative norms remain deeply entrenched. Even within cities, progress often relies on the backing of liberal-minded family members or sponsors.

Broader Influence and Long-Term Potential

Despite these headwinds, women-led startups are beginning to transform Saudi Arabia’s business ecosystem. Many female founders actively hire women, mentor younger entrepreneurs, and cultivate inclusive work cultures. This creates a multiplier effect that extends far beyond individual success.

For example, one fintech founder in the Eastern Province reportedly structured her team to include 70% women, offering flexible work-from-home options and onsite childcare. Her model—though still rare—is helping redefine what leadership looks like in a new Saudi economy.

Furthermore, these entrepreneurs are becoming role models for the next generation. As young Saudi girls see women launching companies, raising capital, and speaking at global summits, their expectations—and those of their families—begin to shift.

From Visibility to Viability

The rapid rise of women-led startups reflects real, measurable progress driven by sweeping legal reforms, cultural evolution, and individual ambition. But at the same time, the prominence of these founders in media campaigns and international forums points to a deliberate effort to shape perception, both inside and outside the Kingdom.

To ensure that this movement evolves from trend to transformation, more must be done. The government must deepen institutional support, investors must diversify funding pipelines, and the ecosystem must go beyond visibility to sustainability.

Only then will Saudi Arabia’s women-led startup surge prove to be not just a compelling narrative, but a lasting economic force.

Kholoud Hussein 

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

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

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

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

Renewables & Green Tech: Saving Costs, Creating Markets

Saudi Arabia has taken global lead steps:

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

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

Startups at the Vanguard of Climate Action

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

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

Sectoral Breadth and Technological Depth

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

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

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

A Culture of Mission-Driven Entrepreneurship

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

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

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

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

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

From National Challenge to Global Export Potential

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

For example:

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

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

Enablers: Policy Frameworks & Ecosystem Support

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

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

Challenges Ahead

Despite momentum, barriers remain:

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

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

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

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

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

The Road Ahead: Scaling the Climate-Tech Frontier

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

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

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

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

Kholoud Hussein

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

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

Micro-SaaS in a Nutshell

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

Why Now? Why in Saudi Arabia and the GCC?

1. Digital Maturity Is Accelerating

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

2. Low-Code and No-Code Accessibility

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

3. Cultural Shift Toward Freelancing & Remote Work

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

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

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

Localized Micro-SaaS Ideas That Work

Here are a few regionally relevant micro-SaaS concepts:

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

Real Barriers 

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

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

From Local Niche to Global Reach

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

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

Micro-SaaS as a Path to Freedom

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

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

Kholoud Hussein 

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

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

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

2. Gig Work as an Opportunity for Startups

2.1. A Flexible, Scalable Labor Model

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

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

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

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

2.2. Enabling Innovation with Lower Risk

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

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

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

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

3. Challenges of Informal Gig Work for Workers and Startups

3.1. For Workers: Lack of Protections and Predictability

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

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

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

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

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

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

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

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

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

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

4.1. Platforms Moving Up the Value Chain

Saudi gig platforms are evolving into holistic ecosystems:

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

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

4.2. FinTech and Financial Services for Gig Labor

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

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

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

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

5. Moving Toward a Formalized Gig Economy

5.1. Regulatory Progress

Saudi Arabia has begun formalizing gig work through:

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

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

5.2. Startup Initiatives in Workforce Protection

Some startups proactively offer standards for gig workers:

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

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

6. Towards a Balanced Saudi Gig Ecosystem

6.1. Strategic Coordination

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

6.2. Future Outlook and Recommendations

Key next steps for a thriving Saudi gig ecosystem:

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

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

From Informality to Strategic Asset

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

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

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

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.

Kholoud Hussein 

In the dynamic economic landscape of the Gulf Cooperation Council (GCC) and particularly the Kingdom of Saudi Arabia (KSA), financial technology (fintech) has emerged as a transformative force. By offering innovative solutions that streamline operations, enhance customer experiences, and democratize financial access, fintech is empowering startups to compete and thrive in competitive markets. This article explores the transformative impact of fintech on startups within the GCC and KSA, supported by recent data and insights from industry leaders.

The Rise of Fintech in the GCC and KSA: A Catalyst for Startup Growth

Fintech encompasses a broad spectrum of technological innovations aimed at enhancing and automating financial services. From digital payments and crowdfunding platforms to blockchain and artificial intelligence-driven analytics, fintech solutions are reshaping traditional financial paradigms. For startups in the GCC and KSA, these advancements translate into more accessible funding options, efficient financial management, and the ability to offer customers seamless digital experiences.

According to Marmore MENA Intelligence, the fintech market size in the GCC region rose to $169.92 billion in 2023, with a year-on-year growth rate of 27.8%. In Saudi Arabia, the number of fintech firms increased from 10 in 2018 to 224 by the end of Q2 2024, surpassing the Financial Sector Development Program's (FSDP) target of 168 companies for the same period. This exponential growth reflects the sector's dynamism and its critical role in modernizing financial services within the region.

Fintech Solutions Empowering Startups in the GCC and KSA

Fintech innovations offer startups in the GCC and KSA a suite of tools and services that address traditional financial challenges:

1. Alternative Financing Options

Traditional bank loans often entail stringent requirements and lengthy approval processes, posing significant hurdles for startups. Fintech platforms have democratized access to capital through crowdfunding, peer-to-peer lending, and revenue-based financing models. These alternatives provide startups with more flexible and accessible funding options, enabling them to secure necessary capital without the constraints of traditional financial institutions.

2. Enhanced Payment Solutions

Efficient payment processing is vital for startups aiming to deliver seamless customer experiences. Fintech innovations in digital wallets, mobile payments, and real-time transaction processing have enabled startups to offer secure and convenient payment options, thereby enhancing customer satisfaction and loyalty.

3. Streamlined Financial Management

Managing finances effectively is crucial for startup sustainability. Fintech solutions that automate accounting, invoicing, and expense tracking allow startups to maintain accurate financial records with minimal manual intervention. This automation not only reduces operational costs but also minimizes the risk of human error.

4. Data-Driven Decision Making

Access to real-time financial analytics empowers startups to make informed decisions. Fintech platforms equipped with artificial intelligence and machine learning capabilities analyze financial data to provide actionable insights, helping startups optimize operations, identify growth opportunities, and mitigate risks.

Case Studies: Fintech Empowering Startups in the GCC and KSA

STC Pay: Revolutionizing Digital Payments in Saudi Arabia

STC Pay, a subsidiary of Saudi Telecom Company, has emerged as a leading digital wallet service in Saudi Arabia. Launched in 2018, STC Pay offers a range of services, including peer-to-peer transfers, bill payments, and online purchases. By 2024, the platform had amassed over 7 million users, reflecting the growing demand for digital payment solutions in the Kingdom. STC Pay's success underscores the potential of fintech in transforming traditional financial services and promoting financial inclusion.

Nasser Al Nasser, former CEO of STC Group, highlighted the company's vision: "Our goal is to drive digital transformation in the financial sector, aligning with Vision 2030's objectives to create a cashless society and enhance financial inclusion."

Tabby: Innovating Buy Now, Pay Later Solutions in the UAE and Saudi Arabia

Tabby, a fintech startup operating in the UAE and Saudi Arabia, offers buy now, pay later (BNPL) services, allowing consumers to make purchases and pay for them in installments without interest. Since its launch in 2019, Tabby has partnered with over 2,000 merchants and has seen significant user adoption. The company's innovative approach addresses the evolving consumer preferences for flexible payment options, thereby supporting retail startups in boosting sales and customer retention.

Hosam Arab, CEO and co-founder of Tabby, emphasized the impact of their services: "By providing consumers with flexible payment options, we're not only enhancing their shopping experience but also enabling retailers to grow their businesses by reaching a broader customer base."

Fintech's Role in Financial Inclusion in the GCC and KSA

Beyond enhancing operational efficiency, fintech plays a pivotal role in promoting financial inclusion within the GCC and KSA. Innovative lending practices by fintech startups are providing underserved communities with access to capital, thereby supporting small businesses and fostering economic growth.

For instance, digital payment solutions have significantly reduced the reliance on cash transactions in Saudi Arabia. The country achieved 70% non-cash transaction rate two years ahead of the 2025 target, underscoring the effectiveness of initiatives like FinTech Saudi in driving economic growth.

Such initiatives demonstrate fintech's potential to bridge financial gaps and empower entrepreneurs in regions with limited traditional banking services.

Industry Perspectives

Industry leaders recognize fintech's transformative impact on startups and the broader financial ecosystem within the GCC and KSA. Philip Bahoshy, CEO of MAGNiTT, observed: "What we have seen as a key trend in the fintech ecosystem is that many companies in Saudi Arabia are looking to integrate fintech solutions into their proposition to capture more users and have better user retention rates." 

This perspective underscores the collaborative potential between fintech innovators and established financial institutions to create a more inclusive, efficient, and technology-driven financial ecosystem. By integrating fintech solutions into traditional banking frameworks, financial institutions can enhance customer experiences, improve operational efficiency, and expand access to financial services for underserved markets. This synergy is particularly crucial in regions like the GCC and Saudi Arabia, where digital transformation is a key pillar of economic diversification under Vision 2030. As fintech startups continue to push the boundaries of innovation, partnerships with established banks and regulators will play a pivotal role in shaping the future of financial services, ensuring sustainable growth and regulatory compliance.

To conclude, the fintech revolution in the GCC and Saudi Arabia is crucial in empowering startups with smart financial solutions. By streamlining payments, enhancing access to capital, automating financial management, and fostering financial inclusion, fintech has become a fundamental pillar of startup success. The rapid adoption of digital payment platforms, alternative lending models, and AI-driven analytics is reshaping the business landscape, ensuring that startups can scale efficiently, reduce costs, and improve customer experiences.

In the next episode of "Building Blocks of Startup Success: The Industries Powering Innovation," we will explore "The Impact of Legal and Compliance Services on Startups"—delving into the regulatory challenges startups face, the importance of legal frameworks in securing funding, and how compliance can be a competitive advantage in today's evolving business world. Stay tuned!

Kholoud Hussein 

Saudi Arabia's Public Investment Fund (PIF) has been at the forefront of the Kingdom's economic transformation, aligning with Vision 2030 to reduce dependence on oil revenues and foster a diversified, sustainable economy. In 2024, PIF has undertaken significant initiatives to propel this agenda forward, focusing on domestic investments, strategic partnerships, and sectoral development.

Strategic Shift Towards Domestic Investments

In 2024, PIF announced a strategic pivot to concentrate more on domestic projects, aiming to reduce the proportion of its international investments from approximately 30% to 18-20%. This shift underscores the Kingdom's commitment to developing local industries and infrastructure, thereby stimulating economic growth and job creation within Saudi Arabia. Yasir Al-Rumayyan, Governor of PIF, emphasized this focus during the Future Investment Initiative conference in Riyadh, stating that the fund's strategy is prioritizing domestic investments that align with Vision 2030 objectives. 

Major Domestic Initiatives and Projects

PIF's domestic investment strategy encompasses several high-profile projects aimed at transforming Saudi Arabia's economic landscape:

- Neom: A futuristic city envisioned as a hub for innovation, technology, and sustainable living. Neom represents a cornerstone of Saudi Arabia's diversification efforts, attracting global attention and investment. 

- Adeera: In December 2024, PIF launched Adeera, a hotel management company dedicated to developing distinct Saudi hospitality brands. This initiative aims to enhance the Kingdom's tourism sector, aligning with Vision 2030's goal to increase tourism's contribution to the GDP. 

- Private Sector Forum 2024: PIF hosted its second Private Sector Forum in February 2024, bringing together local and international investors to explore opportunities within Saudi Arabia. The forum showcased PIF's commitment to engaging the private sector in the Kingdom's economic transformation. 

International Collaborations and Agreements

While focusing on domestic growth, PIF continues to engage in strategic international partnerships to bolster its investment portfolio and bring global expertise to Saudi Arabia:

- Memorandums of Understanding (MoUs) with Japanese Banks: In October 2024, PIF signed MoUs worth up to $51 billion with Japanese financial institutions, including Mizuho Bank, Sumitomo Mitsui Financial Group, and MUFG Bank. These agreements aim to enhance capital flows and support PIF's investment activities. 

- Collaboration with Brookfield: PIF entered into a memorandum of understanding with Brookfield to act as a strategic anchor investor for Brookfield Middle East Partners, a new private fund targeting significant investments in Saudi Arabia. This collaboration is expected to attract foreign direct investment and expertise into the Kingdom. 

Sectoral Focus and Economic Diversification

PIF's investment strategy is characterized by a focus on key sectors that are pivotal to Saudi Arabia's economic diversification:

- Technology and Innovation: PIF has demonstrated a strong commitment to the technology sector, including plans to create a $40 billion fund focused on artificial intelligence (AI). This initiative positions Saudi Arabia as a significant player in the global AI landscape, fostering innovation and technological advancement within the Kingdom. 

- Sustainable Energy: Aligning with global sustainability trends, PIF has invested in renewable energy projects to support the Kingdom's transition to a sustainable energy future. These investments are integral to reducing carbon emissions and promoting environmental stewardship.

- Sports and Entertainment: PIF's investments in the sports sector, including ownership stakes in international sports clubs and hosting major sporting events, aim to position Saudi Arabia as a global sports hub, enhancing tourism and international recognition.

Financial Performance and Economic Impact

PIF's strategic investments have significantly contributed to Saudi Arabia's economic growth:

- Asset Growth: As of March 2024, PIF's total consolidated assets amounted to SAR 1,308 billion, reflecting substantial growth and financial stability. 

- Credit Rating: In November 2024, Fitch Ratings affirmed PIF's credit rating at 'A+' with a stable outlook, indicating strong financial health and confidence in the fund's investment strategy. 

In 2024, PIF has demonstrated a robust commitment to driving Saudi Arabia's diversification agenda through strategic investments and partnerships. By focusing on domestic projects and key sectors, PIF is laying the foundation for a resilient and diversified economy, aligning with the Kingdom's Vision 2030 objectives. 

John Keppler

Just how hot will this summer get in the UAE? With record temperatures, like the 50.8°C recorded on 9 July in the small town of Sweihan, Al Ain, the heatwave appears unrelenting as other parts of the country also experience temperatures above 50°C. Temperatures in the UAE are normally higher in August and September than in July. 

As the population seeks shade and air-conditioned safety, spare a moment for farmers across the region, facing inhospitable temperatures with growing regularity.

It is a growing challenge - 2023 was the hottest year ever recorded globally. There were reports of climate-related disasters across the globe, leading to widespread crop failures and reduced yields due to water shortages and heat stress. 

Agriculture accounts for over a quarter of global greenhouse gas emissions and 70% of the drain on freshwater resources. In the context of agriculture, the climate crisis is a ticking time bomb.

The Middle East’s harsh arid climate only exacerbates the situation, increasing the region’s drain on freshwater resources in agricultural operations to 85%-90%. Current forecasts suggest the world will need to produce 50% more food by 2050 to feed a soaring population, much of it in arid countries. 

The challenge of regional food security is mounting. Around 85% of MENA’s fresh produce is imported - dependence on other regions to feed nations is clearly of concern in this region. The UAE alone imports $24 billion worth of food and agricultural products annually - nearly half the GCC’s total. With additional ‘food miles’ and environmental harm from transport and distribution - the incremental climate impact is significant.

Strengthening food security in the region is already a priority, driven by concerns over international conflicts, crop supply chain reliability, and climate change.  Extremely high temperatures in the UAE and the wider GCC continue to crystallize the region’s focus on the problem and identifying solutions to support farmers for whom the water and energy needed to produce the food their consumers need is an increasing financial burden..

Breaking the food-water-energy nexus is crucial. The region needs to make changes - for which innovative, sustainable technologies can be key.  Changing agricultural processes - some of which have been in place for decades, or even centuries - is also not a practical solution. 70% of farmers globally operate in low and middle-level technology sites. A typically low-margin business, this critical farming bloc rarely has the financial resources to invest in industrial-scale solutions and processes. Indoor and vertical farming, touted as options, are capital-intensive and require farmers to learn new techniques.

Farmers need workable options to mitigate risk and improve their economic and ecological sustainability without investing significant time and money. Farming is a sufficiently challenging profession. Access to drop-in, affordable, and cost-effective technology is a potential panacea the region desperately needs - when facing the climate and food security challenge.

The good news is that the region’s harsh desert climates are a perfect testing ground for innovative technologies. Withstanding the heat of the Arabian Desert is the perfect challenge for solutions with the potential to improve food security in the Gulf. As temperatures increase, this could extend to other global hot spots - a club growing larger every year.

In the AgTech industry, new solutions offering holistic approaches to climate adaptation, from greenhouse roof materials to newly cultivated rootstocks thriving in hot and salty environments, are on the increase.

One such solution, SecondSky by iyris, is showcased in its R&D Facility in Al Ain. SecondSky, offers a range of transparent, near-infra-red heat radiation-blocking agricultural covers. Winner of the 2023 Davidson Prize, SecondSky covers incorporate a nanoparticle additive that blocks the harmful effects of heat radiation. This innovative technology reduces energy usage by over 40% and water consumption by 30%, significantly minimizing environmental impact, improving crop yields, and extending the growing season for farmers.

A long road ahead remains for the agricultural industry. The rapidly warming planet has turned a MENA region challenge into an opportunity to solve a problem at the world’s front door. 

For the AgTech industry, smart combinations of scientific knowledge and innovation that begin with improving the Gulf’s food security - can be a driver to feed the world sustainably. 

John Keppler is the Executive Chair of iyris – a world-leading, sustainable AgriTech company

Kholoud Hussein 

As Saudi Arabia pivots toward a more sustainable future under Vision 2030, green tech startups are emerging as key players in the country’s economic and environmental transformation. These startups are addressing critical issues such as renewable energy, sustainable agriculture, and waste management, all while positioning Saudi Arabia as a hub for green innovation.

Here are some of the most promising green tech startups to watch:

1. Desert Technologies: Desert Technologies is pioneering solar energy solutions tailored to the region’s harsh desert climate. Specializing in the manufacturing and deployment of solar panels, they’re helping Saudi Arabia achieve its goal of generating 50% of its energy from renewable sources by 2030. Their projects extend across the Middle East and Africa, making them a key player in the region’s green energy shift.

2. Naqaa Solutions: Naqaa Solutions is revolutionizing waste management in Saudi Arabia by offering sustainable recycling and waste disposal services. Their innovative solutions focus on turning waste into energy and other byproducts, helping to reduce the Kingdom’s carbon footprint while promoting eco-friendly business practices.

3. SecondSky: Developed by iyris, SecondSky uses nanotechnology to create agricultural covers that block heat radiation, reducing farm energy and water consumption. This technology improves crop yields while extending growing seasons, making it essential for tackling food security challenges in the region’s extreme climate.

4. Greenzie: As electric vehicles (EVs) become more popular, Greenzie is developing the infrastructure needed to support EV adoption in Saudi Arabia. Their focus on EV charging stations and green mobility solutions aligns with the Kingdom’s efforts to reduce transportation emissions.

These startups are crucial to the success of Vision 2030, Saudi Arabia's long-term strategic plan to diversify the economy and reduce reliance on oil by investing in sustainable technologies. By developing renewable energy solutions, promoting waste management, and enhancing agricultural sustainability, these companies directly contribute to the Kingdom's ambitious goals of reducing carbon emissions and increasing environmental resilience. Their innovations not only address local challenges but also create scalable solutions that can be applied across the region, aligning with Saudi Arabia’s goal of becoming a leader in green technology.

The potential for other companies to enter the green tech space is significant. Saudi Arabia’s commitment to sustainability and the growing demand for eco-friendly solutions provide fertile ground for new entrants. Sectors like water conservation, energy efficiency, and sustainable construction are still emerging, offering opportunities for both local entrepreneurs and international companies to collaborate. As government support continues through initiatives like the Saudi Green Initiative and the expansion of venture capital for sustainability-focused startups, the stage is set for more innovative companies to join the scene and further accelerate the Kingdom’s green transformation.