Noha Gad

Traditional top-down models often struggle to scale amid economic uncertainties in today’s fast-evolving startup landscape; hence, the shift towards community-driven startups gained significant momentum. This transformative model redefines success by democratizing the creation process, empowering users not just as buyers but as active participants to co-shape products, amplify voices, and propel growth through authentic connections and collective energy.

While traditional startups often launch polished products into a silent vacuum, community-driven ventures build their roadmap out in the open, alongside their first users.

Community-driven startups heavily rely on their user base who actively participate in shaping the product, culture, and growth trajectory, rather than serving as mere end-users. These startups build platforms or services centered on fostering closed networks of enthusiasts who contribute ideas, content, feedback, and even governance. Unlike passive consumer applications, community-driven startups prioritize ongoing collaboration, including think forums for feature requests, user-generated templates, or member-led events that evolve the offering organically. 

Community-driven vs. Traditional startups

Traditional startups follow a top-down blueprint where founders design a product in isolation, launch via paid ads or influencers, and iterate based on metrics such as acquisition cost. Unlike traditional models, where users act as passive consumers reliant on marketing budgets and virality hacks for growth, community-driven approaches make users co-creators and advocates through real-time forums, beta testing, and organic referrals. This model can increase the community engagement rate fivefold as users feel ownership, eventually reducing churn and boosting lifetime value.

How to build a strategy as a community-driven startup

Community-driven startups employ strategic steps to cultivate engaged user bases that propel product evolution and sustainable growth. 

• Clarify the community’s purpose. Identify ideal members through persona research via surveys or outreach on platforms, then choose accessible channels and launch with a small group of 50-100 founding members recruited personally. Hosting weekly events like AMAs (Ask Me Anything), polls, or feedback sessions will help ignite participation and build trust through visible responsiveness.
• Encourage contributions early with low-friction tools, such as dedicated forums for feature ideas, user-generated content templates, or beta testing invites. Recognizing active members via shoutouts, badges, exclusive access, or revenue-sharing perks will foster a sense of ownership and culture.
• Expand tactics via referrals and incentives. Introduce scalable events such as mentorship circles, expert webinars, or hackathons to deepen connections without diluting intimacy. Integrate feedback loops continuously to ensure that growth aligns with community needs rather than vanity metrics.
• Achieve long-term sustainability. Survey members regularly, refine based on data, and foster network effects through peer connections and ambassador programs. This would help startups adapt to changing dynamics and cultivate sub-communities for specialized interests to prevent stagnation.

Key benefits

Community-driven startups deliver remarkable advantages by embedding users as core stakeholders, transforming potential costs into self-reinforcing growth engines. Engaged communities foster deep ownership, yielding up to 5x higher retention rates compared to traditional models. Additionally, crowdsourced feedback loops accelerate innovation and help startups minimize product development cycles, while ensuring relevance and delighting early adopters with tailored features.

Loyal members promote the startup through personal referrals and recommendations, which greatly reduce the cost of gaining new customers. Thus, startups will no longer need to launch expensive advertising campaigns, relying on members who naturally increase reach and create network effects that add value with each new member.

Community-based startups are more likely to handle economic challenges among passionate communities that offer stability through ongoing participation. This promotes users’ loyalty and makes them a strong defense against competitors who rely on short-lived trends.

While traditional models focus on isolated polish and paid reach, community-driven startups unlock a more resilient path: turning users into passionate partners who co-build products and fuel growth. This shift significantly redefines how startups grow by prioritizing purpose over polish and collaboration over campaigns, ultimately enabling founders to cultivate not only a wide user base but also a vested community that innovates, retains, and defends together.

Ghada Ismail

For years, the startup world celebrated unicorns—private companies valued at more than $1 billion—as the ultimate success story. Over time, valuations grew, capital became more available, and expectations shifted. This gave rise to decacorns, companies worth over $10 billion.

Now, a much rarer group sits at the very top: hectocorns.

A hectocorn is a company valued at $100 billion or more. The word comes from “hecto,” meaning one hundred, and it describes businesses that have reached an extraordinary level of size and influence. These companies are not just growing fast; they are powerful enough to shape markets and industries.

How rare are hectocorns?

Hectocorns are extremely rare. While there are hundreds of unicorns around the world, only a small number of companies ever reach a $100 billion valuation.

Most hectocorns are global giants that dominate their sectors. Examples often include Apple, Microsoft, Saudi Aramco, Amazon, and Nvidia. Their valuations are so large that they are sometimes compared to the economies of entire countries.

What makes a hectocorn different?

The difference between a $10 billion company and a $100 billion company is not just an extra zero. Hectocorns usually share a few clear characteristics.

They tend to:

• Operate at a global scale, not just in one market
• Serve hundreds of millions, or even billions, of users
• Offer products or services that people and businesses rely on every day

At this level, competition is no longer only about building a better product. It becomes about managing scale, regulations, supply chains, and long-term strategy.

Are there private hectocorns?

Most hectocorns are public companies, meaning they are listed on stock exchanges. Staying private while reaching a $100 billion valuation is very rare.

To do this, a company would need to:

• Dominate a very large global market
• Earn exceptional trust from investors
• Maintain strong growth without public market support

Companies like ByteDance are often mentioned as rare private firms that come close, depending on market conditions. Still, private hectocorns are the exception, not the rule.

Will we see more hectocorns?

As technology, artificial intelligence, and emerging markets continue to grow, more hectocorns will likely appear, but slowly, as reaching a $100 billion valuation requires:

• Long-term resilience
• Global relevance
• The ability to survive multiple economic cycles

Wrapping Things Up…

In simple terms, hectocorns represent the very top of the global business pyramid. They are not defined by rapid growth alone, but by long-term scale, resilience, and influence. While unicorns capture attention and decacorns signal ambition, hectocorns show what happens when a company becomes deeply embedded in the global economy. For most founders, reaching this level is not the goal, but understanding how hectocorns are built helps clarify where real power, value, and impact ultimately concentrate.

Shaimaa Ibrahim 

Venture capital in the Gulf region, particularly in Saudi Arabia, is experiencing a rapid growth phase driven by the expansion of the digital economy, the rise of innovation ecosystems, and increasing interest in advanced technologies—most notably artificial intelligence and digital infrastructure. As capital flows increase and investment funds multiply, there is a clear shift toward specialized investment models aimed at building companies with global reach, rather than limiting success to local markets.

In this context, Propeller stands out as a distinct player in the venture capital landscape, focusing on early-stage infrastructure software companies and connecting top technical talent from the MENA region directly to global markets, with a particular emphasis on the United States. Its cross-border operating model is designed to empower founders to build globally relevant companies from day one, leveraging the region’s deep engineering talent alongside operational expertise from leading global technology hubs.

Against this backdrop, Sharikat Mubasher sat down with Zaid Farekh, founder of Propeller, to discuss his vision for the future of venture capital, his experience supporting technical founders, and his assessment of AI and infrastructure opportunities in Saudi Arabia and the broader region.

What is Propeller’s strategic vision, and how does it stand out from other venture capital firms in the region?

Propeller’s strategic vision is to become the leading early-stage platform for infrastructure software founders emerging from MENA by providing them with direct, early access to global—particularly U.S.—markets.

Propeller focuses exclusively on pre-seed and seed-stage infrastructure software, backing highly technical founders and helping them validate, sell, and iterate with real U.S. customers—especially in Silicon Valley—much earlier than would otherwise be possible.

What differentiates Propeller is its deliberate focus and cross-border operating model. Rather than being a generalist regional fund, Propeller concentrates on a narrow, technically demanding category and actively bridges two ecosystems: MENA’s deep engineering talent and the world’s most advanced infrastructure buyers and partners in the United States. This approach allows founders to shorten the path to product–market fit, build globally relevant companies from day one, and access follow-on capital more effectively.

How would you describe the current venture capital landscape in the GCC, and what is required to elevate the region’s entrepreneurial ecosystem to a global standard?

We’ve been excited to see the venture landscape maturing in the GCC over the past few years, but we still believe there’s a long way to go. We ultimately believe that the best way to elevate the region’s entrepreneurial ecosystem is to bring its best founders to the global stage so they can learn from and compete with a high density of other founders of a similar calibre. We see this trend happening across the world, not just the Middle East. Great founders from Europe, South America and elsewhere spend time in Silicon Valley or New York, but invariably end up having a huge impact on their local, ‘home’ ecosystems as well, whether by returning themselves to continue to build their startup, by hiring local talent remotely or building an in-region office, by angel investing in the home market’s newest founders, or simply by inspiring a new generation of founders. 

What criteria are most important when evaluating startups, and how does Propeller help founders overcome funding and growth challenges?

Propeller focuses on pre-seed and seed-stage infrastructure software startups, investing checks between $500,000 and $3M. It prioritizes founders building for global gaps (not only regional needs) and sees opportunity across multiple layers of the AI stack, from hardware-adjacent enablement to infrastructure, platforms, and applications with defensible infrastructure moats.

Can you provide an overview of Propeller’s current funds, including their strategic focus and sector priorities?

Fund I was a test vehicle of approximately $2M launched in 2017. Fund II was approximately $13M launched in 2021. Fund III is a $50M fund focused on pre-seed and seed-stage infrastructure software startups, with emphasis on AI infrastructure and AI-native software across MENA and the U.S.

What motivated the launch of Propeller’s $50 million third fund, and why focus specifically on horizontal AI infrastructure?

The adoption of artificial intelligence will be the single largest driver of enterprise and economic value over the next decade. Startups are being launched today and in the coming years to meet the enormous infrastructure demands this adoption will create, quickly propelling the best ones into large, category-defining companies

We believe infrastructure is the ultimate multiplier of value in AI. Strong infrastructure enables vertical applications and horizontal platforms to scale faster, cheaper, and more securely.

At the same time, the most enduring applications and platforms will be those that sit on top of proprietary or defensible infrastructure, creating moats that go beyond user interfaces or data wrappers.

To date, how many startups has Propeller invested in, across which regions, and what tangible impact have these investments had on the regional innovation ecosystem?

Propeller has backed 30+ startups across its first two funds and has 6 active investments in Fund III. Propeller is present across MENA and the U.S., specifically in Riyadh, Amman, Boston, and Silicon Valley.

How do you assess venture capital opportunities in Saudi Arabia, particularly in the AI sector?

We assess opportunities in Saudi the same way we assess opportunities everywhere - does the founder have a severe conviction in a unique version of the future? Are they building infrastructure & apps because they love building? And are they thinking Global from day one?

We assess venture opportunities in Saudi Arabia through a fundamentals-first lens, with additional scrutiny specific to the AI sector.

In AI specifically, we look beyond model novelty and focus on structural advantages, such as access to proprietary data, deep integration into workflows, or infrastructure-level positioning that is difficult to replicate. We are cautious around pure “wrapper” businesses and place greater emphasis on companies that own a critical layer of the stack or have defensible deployment advantages.

We have long-standing experience building and selling technology in Saudi Arabia and view it as a strong, sophisticated market for AI adoption. At the same time, we do not see Saudi Arabia as the only market. We assess whether companies can win locally on commercial merit and then expand beyond the Kingdom over time, rather than being structurally dependent on a single geography or policy tailwinds.

Finally, we evaluate alignment with Saudi Arabia’s long-term priorities, such as digital infrastructure and AI enablement without relying on policy tailwinds alone. Our goal is to back companies that can succeed on commercial merit, with or without local incentives, and scale globally over time.

What are Propeller’s plans for expansion, and are there initiatives to establish new regional or international partnerships?

Our team members are already present in Silicon Valley, Boston, Amman, and Riyadh and we have close relationships with follow-on investors and experienced operators in those markets

In your view, which sectors or types of companies are best positioned for significant growth in the coming years, especially in AI and technology infrastructure?

We believe exciting new companies will be built at all layers of the software stack:

1. Application Layer – Vertical AI applications that win with infrastructure moats, not just data wrappers.
2. Platform Layer – Horizontal AI platforms that standardize workflows across industries.
3. Infrastructure Layer – Tools that abstract complexity and make AI usable, secure, and scalable.
4. Hardware-Software Convergence – Silicon-adjacent software bridging models and metal, optimizing performance and efficiency. 

More than companies, we invest in people. We believe that the founders who will build these companies will:

1. Have a severe conviction in a unique version of the future
2. Build infrastructure & apps because they love building 
3. Think global from day one
4. Attract and inspire early employees and supporters.
5. Have the persistence to run through walls, the flexibility to change course, and the judgement to know when to do each.
6. Lead from the front by building, not just directing.
7. Build with responsibility, aware of the scale and impact of the infrastructure they create.
8. Nurture a community around their vision. Creating movements not just companies.

Noha Gad

The world is in a race to master quantum computing — a technology based on the principles of quantum physics with the potential to reshape industries, security, and science. Unlike current computers, which rely on simple binary bits, quantum computers use quantum bits, or qubits, that can exist in multiple states simultaneously and can be profoundly interconnected. This potential enables them to tackle complex challenges in areas such as medicine, materials science, and logistics at speeds higher than today's most advanced supercomputers.

By harnessing the principles of quantum mechanics, this emerging field offers time- and energy-efficient computational power, secure communication, and precise sensing capabilities. The quantum economy is poised to generate immense value through the application of quantum technologies across various sectors. 

Saudi Arabia acknowledges the revolutionary impact of quantum technology and is strategically positioning itself to become a global leader in this domain. This emerging field is not a distant concept but a strategic priority aligned with Vision 2030. The Kingdom is actively building its own quantum landscape, transforming ambition into structured national action. This move is a clear step to diversify its technological capabilities and cultivate homegrown scientific talent for the post-oil era. 

According to a report released by the Centre for the Fourth Industrial Revolution in Saudi Arabia (C4IR Saudi Arabia), quantum technology can drive innovation across multiple sectors, creating new industries and economic growth. In the healthcare industry, quantum sensors could revolutionize medical sectors, leading to more accurate and less invasive diagnostic tools. Additionally, very high precision in material characterization leads to the development of new materials and improves quality control in industry and manufacturing sectors. This technology can also revolutionize financial services and enhance risk management by improving the accuracy and speed of risk analysis. This could transform areas like portfolio optimization, fraud detection, and pricing of complex financial instruments.

When deployed in the logistics sector, quantum computing can improve route optimization for logistics companies, ultimately reducing fuel consumption, delivery times, and costs.

On the other side, these technologies have vast and multifaceted societal impacts, encompassing ethical, legal, economic, educational, and cultural dimensions. They are expected to transform how societies operate, how economies function, and how individuals interact with technology and each other.

Potentials and challenges

Saudi Arabia has significant opportunities to establish itself as a key player in the quantum technology race and become a regional quantum hub that attracts talent and investment and fosters collaboration. 

Various stakeholders play a crucial role in advancing quantum technology in the Kingdom and enhancing short-term educational initiatives aimed at rapidly building and strengthening the quantum talent pool. For instance, King Abdullah University of Science and Technology (KAUST) and King Abdulaziz City for Science and Technology (KACST) established dedicated research centers and designed undergraduate and graduate curricula focused on quantum technology. They also contribute through specialized programs, professional training courses, and collaborations with industry and government entities. 

Prominent organizations such as the National Information Technology Academy (NITA) and the Saudi Federation for Cyber Security and Programming, through TUWAIQ Academy, actively contribute to workforce development through internships, specialized training, and skill transition programs. King Fahd University for Petroleum and Minerals (KFUPM), in collaboration with Aramco, has established a Quantum Chair Professor program to foster research, education, and innovation in Quantum technologies. 

Partnerships with local and international partners also play a fundamental role in advancing the quantum computing industry and creating innovation hubs in the Kingdom. These collaborations bring expertise, technology, and resources to the Kingdom, accelerating the development and commercialization of quantum technologies. 

Aramco recently deployed the first quantum computer in Saudi Arabia, and the region’s first quantum computer dedicated to industrial applications, in partnership with Pasqal, a global leader in neutral-atom quantum computing. Deployed at Aramco’s data center in Dammam and powered by neutral-atom technology, this quantum computing is expected to significantly build regional expertise and accelerate the development of quantum applications across the energy, materials, and industrial sectors in the Kingdom and the broader Middle East. Pasqal’s system can control 200 qubits arranged in programmable two-dimensional arrays, offering a platform suitable for exploring advanced quantum algorithms and real-world use cases relevant to industrial operations.

The Saudi Telecom Company (stc), one of the leading enablers of digital transformation, recently expanded its collaboration with IBM to establish a quantum-safe framework designed to proactively identify and mitigate cryptographic risks, ensuring readiness for a time when large-scale quantum computing could challenge existing encryption systems safeguarding sensitive data. 

Although Saudi Arabia has various potentials to lead the quantum computing industry regionally and globally, it faces several challenges in this domain, notably a talent shortage. The limited number of quantum scientists and engineers compared to global leaders creates a substantial obstacle to rapid advancement, compounded by a scarcity of specialized quantum laboratories, hindering crucial research and development efforts. The quantum industry in the Kingdom is still in its infancy, with few commercial applications, making it difficult to attract investment and create a thriving ecosystem.

In conclusion, Saudi Arabia has laid an impressive and strategic foundation for its quantum future, moving decisively from ambition to action and aligning national vision with institutional power, industrial need, and educational reform. Its unique advantage lies in applying quantum computing to its own industrial sectors, creating a tangible testbed for innovation. However, the Kingdom’s success will ultimately be measured by its ability to transition from foundational projects and protected pilot cases to a vibrant, open, and innovative ecosystem that attracts global talent, fosters indigenous entrepreneurship, and produces groundbreaking intellectual property. By navigating the challenges of talent cultivation, ecosystem diversification, and sustained investment, Saudi Arabia will be positioned not only to adopt quantum technology but to actively shape its development and secure an influential role in the coming quantum-powered era.

Noha Gad

In an era where technological disruption accelerates at remarkable speeds, businesses worldwide are at a crossroads: adapt or fail. Artificial intelligence (AI) emerged as a transformative force reshaping the future of industries, economies, and daily operations.

AI-first business models redefine the way companies operate, compete, and scale by embedding AI at the core of their DNA rather than as a helping tool. These models treat AI as the foundational engine driving innovation, decision-making, and customer value in key sectors such as fintech and startups. Traditional businesses often integrate AI into outdated processes, yielding marginal gains, while AI-first pioneers redesign everything around intelligent systems for exponential advantages. This shift enables hyper-personalization, predictive analytics, and autonomous operations that thrive on data abundance.

How do AI-first business models work?

AI-first business models embed AI as the core engine for operations, decision-making, and growth, enabling radical automation, hyper-personalization, real-time insights, and scalable efficiency through autonomous agents and data-driven feedback loops, fundamentally redesigning organizational structures and workflows around intelligent systems rather than just adding AI as a feature. 

Unlike traditional AI-enhanced approaches, these models reimagine processes from the ground up, prioritizing data flows, automation, and machine learning as core infrastructure to ensure seamless scalability and adaptability in fast-evolving markets. 

Compared to AI-augmented models, AI-first models make intelligence proactive and pervasive, influencing every layer from product development to customer engagement. These approaches treat data as the primary asset for real-time analytics and predictive capabilities, fostering continuous learning loops without heavy human intervention.

Main features 

AI-first business models are defined by characteristics that prioritize intelligence as the central pillar, enabling unprecedented efficiency, adaptability, and value creation across operations. Key features include:

• Automation. AI handles end-to-end workflows autonomously, from transaction processing to compliance checks, reducing human involvement in major processes. For instance, in wealth management, AI-first platforms dynamically rebalance portfolios based on real-time market data and user life events.
• Data-based decisions. Real-time analytics from vast datasets power predictive insights, replacing intuition with probability-based forecasting for agile market responses.
• Hyper-personalization. AI-first models can help companies and startups provide tailored experiences by analyzing individual behaviors, preferences, and contexts to anticipate needs proactively. For example, banking applications deploy conversational AI agents to answer queries and execute actions, such as freezing cards or updating addresses via biometrics, enhancing user trust and retention.
• Scalable infrastructure: Cloud-native AI supports rapid growth and continuous model refinement.

How AI-first models could support startups’ businesses

Along with enhancing decision-making processes and providing hyper-personalized products, AI-first models help startups enhance operational efficiency and reduce costs by automating repetitive tasks, such as customer support via chatbots or inventory optimization. AI-first startups command investor attention due to their proven scalability, data moats, and rapid revenue trajectories. This advantage arises from AI's ability to demonstrate measurable revenue on investment (ROI) quickly, such as predictive models forecasting user acquisition costs.

For product innovation, accelerated prototyping via AI tools eliminates time-to-market from months to weeks and allows startups to test minimum viable products (MVPs) with real user data. AI-first models can also contribute to talent and team optimization since AI handles hiring screening, skill matching, and performance analytics.

AI-first startups can improve their risk mitigation strategies by utilizing AI to forecast market risks, regulatory hurdles, or supply disruptions early.

In summary, the rise of AI-first business models represents a fundamental architectural shift, not a mere technological upgrade. It transforms AI from a tool that supports business into the foundational engine that defines it. For startups and established companies alike, this approach unlocks exponential advantages through radical automation, hyper-personalization, and predictive, data-driven decision-making. 

Ghada Ismail

Saudi Arabia’s venture capital market is no longer finding its footing. It has found its pace. What began as an ecosystem driven by experimentation and policy-led pilots has evolved into a more mature, institutionalized market that now attracts regional and international attention. According to data compiled by MAGNiTT and the Saudi Venture Capital Company (SVC), Saudi Arabia has ranked among the most active venture capital markets in the MENA region over the past three years, both in terms of capital deployed and the number of deals completed.

This momentum is often cited as proof that the Kingdom’s startup ecosystem is working. Funding volumes are rising. New funds are being launched. More founders are building locally. Yet as the market grows, a more serious discussion has started to surface. Scale alone is no longer enough. Increasingly, investors, founders, and policymakers are asking how capital is being distributed across sectors, and whether that distribution reflects the broader economic ambitions Saudi Arabia has set for itself.

At the center of this conversation sits fintech.

According to MAGNiTT’s Saudi Arabia Venture Capital Reports, fintech startups consistently attract one of the largest shares of venture investment activity in the Kingdom, particularly when measured by deal count rather than absolute capital raised. Payments platforms, digital lenders, BNPL providers, wallets, and financial infrastructure startups appear again and again in funding announcements, accelerator cohorts, and portfolio disclosures.

This raises a structural question rather than a critical one. Has Saudi venture capital become overly concentrated around fintech, and if so, what does that mean for the long-term health and resilience of the startup ecosystem.

Fintech by the Numbers: A Clear Leader in Deal Activity

Look across multiple datasets, and the pattern is hard to miss. Fintech dominates venture deal flow in Saudi Arabia.

According to MAGNiTT’s 2024 Saudi Arabia Venture Capital Report, fintech ranked among the top sectors by number of transactions completed during the year. In several quarters, it led outright. While total capital raised shifted depending on the presence of large late-stage rounds in other sectors, fintech maintained steady activity across seed, Series A, and growth stages.

SVC’s FY2024 venture capital analysis reinforces this conclusion. The report showed that fintech accounted for a significant portion of all VC deals closed in the Kingdom, even during periods when sectors such as e-commerce surpassed fintech in total disclosed funding value due to one or two large transactions.

This distinction matters.

• Fintech frequently leads in deal volume, reflecting repeated investor willingness to back early- and mid-stage startups
• Capital rankings can be distorted by isolated mega-rounds in other sectors
• Fintech activity remains consistent across market cycles

According to Fintech Saudi’s 2024 Annual Report, more than 260 fintech companies were operating in the Kingdom by the end of the reporting period. The report also noted that cumulative investment into Saudi fintechs had reached several billion riyals, surpassing earlier ecosystem targets set under the national fintech strategy.

Together, these figures position fintech not just as a successful sector, but as a defining pillar of Saudi Arabia’s venture story.

Why Fintech Attracts Venture Capital So Readily

Investor appetite for fintech is not driven by hype. It is driven by structure.

According to Fintech Saudi and regional banking studies, Saudi Arabia has one of the highest digital payments adoption rates in the Middle East. Consumers are comfortable transacting digitally. Merchants are rapidly onboarding payment solutions. Banks are increasingly open to collaboration rather than competition. Regulators have moved early to create sandboxes, licensing pathways, and open banking frameworks.

This combination has created fertile ground for fintech startups to test, launch, and scale.

MAGNiTT’s sector analyses consistently highlight fintech as a category that offers:

• Clear monetization models
• Faster visibility into revenue generation
• Defined regulatory pathways
• More predictable exit scenarios

From a venture capital perspective, this reduces uncertainty. Payment platforms can scale merchant adoption quickly. Consumer finance products grow through mobile-first distribution. Enterprise fintech solutions integrate directly with banks and large corporates, embedding themselves into core systems.

Fintech also aligns closely with national policy priorities. According to official government strategies and Fintech Saudi publications, financial inclusion, SME financing, and payment digitization remain key economic objectives. Venture capital flowing into fintech, therefore, delivers both commercial returns and measurable policy outcomes.

That dual alignment helps explain why fintech consistently outperforms other sectors when it comes to deal activity.

The Cost of Concentration

Concentration, however, is not without consequences.

According to ecosystem observers and VC market analyses, when one sector absorbs a disproportionate share of capital, talent tends to follow. Engineers, compliance specialists, data scientists, and senior product leaders are naturally drawn to startups with clearer funding pipelines and higher valuation benchmarks. In Saudi Arabia, that often means fintech.

This dynamic creates several knock-on effects.

First, talent clustering. Founders building outside fintech face a tougher challenge when assembling experienced teams, particularly in technically demanding sectors such as healthtech, climate technology, or industrial software.

Second, idea shaping. Market analysts note that founders increasingly design startups around perceived investor appetite. When fintech appears more fundable, entrepreneurs may reshape ideas toward financial use cases, even when the underlying problem sits more naturally in healthcare, sustainability, or logistics.

Third, portfolio exposure. When most venture capital goes to just a few sectors, the whole ecosystem becomes more vulnerable to changes in rules or the economy. For example, if consumer credit, payment margins, or financial regulations take a hit, it wouldn’t just affect one company; it could impact many startups at once. These are risks for the system as a whole, not failures of individual businesses.

Sector Concentration and Portfolio Exposure

Saudi Arabia’s VC ecosystem demonstrates capital clustering, which carries both advantages and risks. In 2024, e-commerce and retail startups led total disclosed funding, largely due to a few mega rounds, while logistics, mobility, and enterprise software received steady but smaller investments. Meanwhile, healthtech, climate and sustainability solutions, advanced manufacturing, and deep technology (including applied AI) captured only a minor share of VC funding, despite their strategic importance. 

Fintech fits into this concentration pattern differently. While not always the top sector in total capital, it leads in deal count, with repeated investor backing in early- and mid-stage startups. Its dominance demonstrates the ecosystem’s strength but also its vulnerability: heavy focus on one or a few sectors means that regulatory shifts, macroeconomic downturns, or changes in financial policy could ripple across the startup ecosystem, affecting many companies simultaneously. These are systemic risks, not failures of individual startups.

A Market in Transition

Early-stage concentration is not unique to Saudi Arabia. According to global venture capital studies, emerging ecosystems often gather around one or two scalable sectors before diversifying more broadly.

Saudi Arabia appears to be following a similar trajectory.

Recent signals suggest growing awareness of the need to broaden sector exposure. According to public announcements and fund mandates, several Saudi-backed investment vehicles and accelerators have launched programs specifically targeting health innovation, climate solutions, and industrial technology.

Corporate venture arms are also beginning to look beyond fintech. Increasingly, they are seeking strategic technologies that align with operational needs, supply chains, and productivity gains rather than purely financial returns.

These shifts suggest fintech dominance may represent a phase rather than a permanent imbalance.

Investors and the Role of Incentives

Venture capital firms shape the startup ecosystem by deciding where to put their money. Many investment funds in Saudi Arabia were created when financial technology was growing quickly. Their teams, networks, and investment strategies were built around that sector.

Industry observers say that moving into new areas of investment requires important changes:

• Spending more time and effort understanding the technology behind startups
• Being willing to invest for a longer period before seeing returns
• Adjusting expectations about when and how investments will succeed

Investors who provide the capital for these funds, such as large institutions and government-backed organizations, play a key role. They can support longer-term projects that may take years to pay off but can have a lasting impact on the economy.

What the Data Means for Founders

For founders operating outside fintech, the fundraising environment is more selective, but it is not closed. Non-fintech startups are expected to demonstrate credibility earlier in the fundraising process. That often includes:

• Clear regulatory progress
• Pilot deployments with credible partners
• Revenue-linked traction
• Well-defined scalability pathways

Saudi Arabia offers structural advantages here. Government procurement programs, large corporate buyers, and centralized decision-making can dramatically shorten adoption cycles if accessed effectively.

In this environment, execution matters more than narrative. Strong fundamentals can still unlock capital, even in less appealing sectors.

Conclusion: Fintech as a Foundation, Not a Ceiling

According to every major dataset tracking Saudi Arabia’s venture capital market, fintech has earned its place as a leading sector. Regulatory reform, market readiness, and investor confidence have aligned to create one of the region’s most active fintech ecosystems.

At the same time, the same data highlights concentration. Deal flow, talent, and capital remain heavily going after fintech, while other strategically important sectors continue to lag behind.

The challenge ahead is one of balance. Not replacing fintech, but building alongside it.

Noha Gad

The tourism sector in Saudi Arabia is witnessing a historic and transformative change, reinforcing the Kingdom’s position as a global tourism powerhouse. This strategic shift is a cornerstone of Vision 2030, which targets increasing tourism’s contribution to the national gross domestic product (GDP) from 3% to 10% by 2030, and aims to attract 150 million visitors annually by the end of the decade.

During the first half (H1) of 2025, the total number of inbound tourists in Saudi Arabia reached 14.3 million tourists, with inbound tourism spending estimated at SAR 90.5billion, according to recent figures released by the Ministry of Tourism. Additionally, the tourism hospitality facilities in the Kingdom recorded an overall occupancy rate of over 51% during the third quarter (Q3) of 2025, with Revenue Per Available Room (RevPAR) standing at SAR  154 in the same quarter. 

Driving this ambition is a dual commitment to sustainability and technological innovation. The Kingdom is not merely expanding its tourism offerings, which span from the pristine Red Sea coast and the ancient Nabatean tombs of AlUla to futuristic megaprojects like NEOM, but is doing so with a foundational pledge to environmental stewardship. 

Also, the Kingdom is at the forefront of integrating cutting-edge technologies, such as Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR), to revolutionize the visitor experience and operational efficiency. From AI-powered personalized itineraries and smart city management to immersive VR previews of heritage sites and AR-enhanced cultural exhibitions, technology is becoming the invisible backbone of Saudi tourism.

Green tourism in Saudi Arabia 

Saudi Arabia is putting sustainability at the core of its tourism strategies, particularly through eco-tourism integrated into its latest destination concepts that protect and preserve natural habitats and local wildlife. A range of nature reserves have already been established, including the Harrat al-Harrah Reserve, King Salman Bin Abdulaziz Royal Reserve, and Prince Mohammed bin Salman Royal Reserve. The National Center for Wildlife works to protect, develop, and resettle ecosystems and biodiversity, in addition to treating risks related to wildlife.

The Kingdom’s national initiatives, like the Saudi Green Initiative (SGI) and the National Tourism Strategy (NTS), mandate that growth must be sustainable, regenerative, and aligned with ambitious conservation targets. For instance, the SGI aims to reduce carbon emissions by 278 million tons annually by 2030 and increase the percentage of protected land and marine areas to 30% of the Kingdom's total area. Therefore, all tourism giga-projects are required to align with these goals. The 30% protection target is particularly crucial, as many projects, like the Red Sea Project, are located within or adjacent to protected zones, mandating a regenerative approach that enhances the environment.

The NTS targets implementing guidelines for energy, water, and waste management across new and existing destinations, acting as the operational link between the SGI's high-level goals and on-the-ground tourism development.

Giga projects, such as the Red Sea project, NEOM, and Al Ula, are large-scale experiments and benchmarks for building tourism from the ground up on green principles. The Red Sea project, spanning an archipelago of 90 islands scattered along the western coast of Saudi Arabia, targets developing luxury resorts using 100% clean energy, aiming for 100% carbon neutrality. Al Ula region, Saudi Arabia’s historical open-air museum, is expected to be on the global tourist radar, combining heritage with modern sustainable worldviews. This project is expected to contribute to carbon neutrality in the long term. 

All mega- and gig-projects underscore the Saudi government’s efforts to forge a future where tradition, innovation, and sustainability go hand-in-hand. According to the World Tourism Barometer, published by UN Tourism in January 2025, Saudi Arabia was one of the best-performing destinations in the world for 2024, seeing a tourism uplift of over 69% for the full 12-month period compared to 2019.

Digital tools driving Saudi Arabia's sustainable tourism

Smart tourism in Saudi Arabia refers to the integration of advanced technologies, such as artificial intelligence, virtual and augmented reality, and smart city infrastructure, into the travel and tourism experience. It aims to enhance convenience, personalization, and sustainability for both domestic and international visitors.

Building upon its sustainable foundation, Saudi Arabia is strategically deploying advanced technologies to create seamless, personalized, and immersive visitor experiences. These technologies are integral to managing tourism growth efficiently while elevating engagement to world-class standards.

AI serves as the central nervous system of this new tourism ecosystem. Beyond powering personalized recommendations on platforms like the official Visit Saudi portal, AI is crucial for operational sustainability and management. It is used for predictive analytics to optimize energy and water use in large resorts, manage visitor flows to prevent overcrowding at sensitive heritage sites, and provide real-time, multilingual assistance through AI-powered chatbots and virtual concierges. 

For immersion and accessibility, Virtual Reality (VR) and Augmented Reality (AR) are transforming how visitors explore Saudi heritage and future destinations. Before travel, VR enables potential tourists to take digital journeys through destinations like the ancient tombs of Hegra in AlUla or the futuristic models of NEOM. Platforms like the Metaverse let visitors explore Saudi landmarks from anywhere, offering a glimpse into the Kingdom’s rich heritage, no matter where they are in the world.

On-site, AR applications enrich the physical experience; for instance, at historical locations, visitors can use their smartphones or AR glasses to see historical recreations superimposed on ruins, receive interactive guided narrations, or access instant translation of inscriptions, bringing millennia of history to life in an engaging, educational format. Interactive museums, such as the International Fair and Museum of the Prophet’s Biography and Islamic Civilization, turn history into an experience through screens, sound, and smart displays. Historic and cultural sites like AlUla, Diriyah, and Jeddah’s Al-Balad offer AR experiences that let visitors interact with stories from the past.

Key smart tourism platforms in Saudi Arabia

The smart tourism ecosystem in Saudi Arabia is supported by several key digital platforms, ranging from official government portals to giga-project-specific applications. These platforms leverage AI, data analytics, and integrated services to enhance the visitor journey from planning to post-trip.

• ‘Visit Saudi’ portal and application is the official national tourism platform that serves as the primary digital gateway for all international and domestic tourists. It offers AI-driven personalized itinerary planning, destination discovery, event bookings, and integrated visa application links. 
• Nusuk is the official unified digital platform for pilgrims performing Hajj and Umrah, managed by the Ministry of Hajj and Umrah. It offers end-to-end journey management, including eVisa, electronic permit issuance, accommodation booking, flight packages, and health services. The platform uses data analytics for crowd management and a seamless spiritual experience.
• Tawakkalna app. Thanks to its robust identity verification infrastructure, this application is integrated into the tourism and events sector. It provides a secure digital identity, via Absher integration, for fast-track entry at major events, festivals, and tourist attractions, reducing queues and enhancing security.

As Vision 2030 continues to unfold, Saudi Arabia’s model offers a forward-looking blueprint for how destinations can grow responsibly. It demonstrates that with clear vision, supportive policy, and strategic investment, tourism can be a force for economic vitality, cultural celebration, and environmental preservation. This transformation in the Saudi tourism sector represents a purposeful integration of environmental stewardship and technological innovation. By establishing a firm green foundation through national initiatives and advancing a sophisticated smart toolbox with artificial intelligence, immersive tech, and data-driven platforms, the Kingdom is not merely expanding its tourism sector; it is redefining its future. 

Noha Gad

In today’s fast-growing startup landscape, founders face several challenges, most notably securing capital to fuel growth without sacrificing equity or facing rigid repayment schedules. Traditional options like venture capital dilute ownership, while bank loans demand collateral that many early-stage businesses lack. Hence, revenue-based financing (RBF) emerged as a flexible, performance-aligned model that reshapes the way entrepreneurs fund their ventures. 

What is revenue-based financing (RBF)?

Revenue-based financing, or royalty-based financing, allows businesses to raise capital by giving investors a share of their ongoing gross revenues. This model provides founders with fast, non-dilutive capital that aligns with their actual revenue, offering valuable insights beyond just funding to fuel their sustainable growth.

Unlike debt and equity financing, RBF enables investors to receive a regular share of the business's income until a certain amount is paid. This amount is typically three to five times the original investment.

RBF is particularly popular in small to mid-sized companies or Software-as-a-Service (Saas) sectors as it provides an alternative for companies that are unable to secure traditional financing. It is an ideal option for growing online businesses, especially those with predictable, recurring revenue, that need capital for inventory, marketing, or other operational expenses.

How does RBF work?

A company that raises capital through revenue-based financing will be required to make regular payments to pay down an investor's principal. It is distinct from debt financing for several reasons: interest is not paid on an outstanding balance, and there are no fixed payments.

Payments to investors depend on the company’s performance because they vary based on the level of the business's income. For instance, if sales fall off in one month, investors will see their royalty payment reduced. Likewise, if sales in the following month increase, payments to the investors for that month will also increase.  

RBF also differs from equity financing because investors do not have ownership in the business. This is why revenue-based financing is often considered a hybrid between debt financing and equity financing.

Benefits and drawbacks

When considering revenue-based financing as a funding option, it is important to weigh its advantages alongside its limitations. This approach offers a set of benefits that appeal to many growing businesses, but it also has potential drawbacks that may impact suitability depending on the company’s specific circumstances. 

Benefits

• Non-dilutive capital: It allows entrepreneurs to raise funds without giving up ownership or control, which is crucial for founders keen to retain strategic decision-making power.
• Flexible repayments: Payments fluctuate with revenue, reducing financial pressure during slow periods. This eventually helps maintain healthier cash flow compared to fixed loan installments.
• Fast and accessible: Approval processes emphasize actual revenue performance rather than projections or credit scores.

 Drawbacks

• Higher Cost: RBF can be costlier than traditional debt, with repayment caps often ranging from 1.3x to 2.5x the initial amount.
• Revenue dependence: Companies with fluctuating or unpredictable revenue may face extended repayment terms, which can strain long-term financial planning.​
• Not for early-stage startups: RBF generally requires a reliable revenue stream. This makes it less suitable for pre-revenue or high-risk ventures.​

RBF vs. traditional funding options

Revenue-based financing stands out in a crowded funding landscape by offering a middle path between equity-heavy venture capital and rigid traditional debt. Evaluating it against alternatives like VC, bank loans, and venture debt reveals key trade-offs in ownership, repayment flexibility, and accessibility. RBF preserves full ownership without equity dilution, unlike VC, which requires giving up shares and often board seats. Additionally, RBF does not require collateral or personal guarantees, compared to bank loans, which have fixed payments and asset requirements.

RBF avoids interest rates and equity warrants typical in venture debt, offering purely revenue-based terms without fixed schedules, though both target growth-stage firms.

Finally, Revenue-based financing offers a compelling alternative for founders seeking flexible, non-dilutive capital aligned with their business performance. Although it may carry higher costs than traditional debt and requires steady revenue, its scalable repayment and quick access make it an attractive option for growing companies. As startups navigate funding choices, understanding RBF's unique workings can empower smarter decisions for sustainable growth. 

Noha Gad

Saudi Arabia faces one of the most severe water scarcity challenges globally due to its extremely arid climate, limited freshwater resources, and a rapidly growing population that is projected to surpass 47 million by 2025, according to figures by the World Health Organization (WHO). According to recent figures by the General Authority for Statistics (GASTAT), the water sector in the Kingdom witnessed significant shifts in 2023, with a 31% rise in desalinated seawater production, now comprising 50% of the Kingdom’s distributed water supply.

With groundwater resources depleting and the per capita household water consumption declining from 112.8 liters per day in 2022 to 102.1 liters in 2023, the Kingdom’s investments in desalination and reuse technologies underscore its commitment to long-term water security. 

These conditions have positioned water security and sustainable agriculture as critical priorities aligned with Saudi Vision 2030's sustainability goals. Thus, nanotechnology startups emerged as pivotal players in addressing water and agricultural challenges in Saudi Arabia. They leverage advanced nanomaterials and nanoscale innovations to transform water treatment, wastewater recycling, desalination efficiency, and precision agriculture techniques. 

By offering promising solutions to optimize water use, improve crop yields, and reduce environmental impact, these startups help Saudi Arabia move toward a water-secure and food-secure future amid harsh natural conditions and growing demand. 

Overall, the nanotechnology market in Saudi Arabia is projected to hit $1.1 billion by 2033, showing a compound annual growth rate (CAGR) of 27.30% between 2025 and 2033, according to recent analytics by the IMARC Group.

Nanotechnology in water management

Nanotechnology companies and startups in Saudi Arabia develop cutting-edge nano-enabled filtration and purification technologies that significantly enhance efficiency and sustainability. Such technologies employ nanomaterials and nanostructured membranes designed at the molecular level to capture contaminants more effectively than conventional systems.

The nano-enabled systems minimize energy consumption, up to 80% less compared to traditional treatment plants, and drastically reduce operational footprints by 90%. They also eliminate odors and chemical residues, making treated water safe for reuse in agriculture, industry, and municipal applications. 

For instance, the Ras Al-Khair Power and Desalination Plant stands as the world’s largest hybrid desalination facility, producing both electricity and desalinated water. By integrating nanotechnology in its desalination process, the plant became a model for sustainable water management. Advances in graphene oxide-based nanomembranes are expected to increase the plant's efficiency, reducing energy consumption while improving the purity of the desalinated water.

Additionally, the Saudi Water Authority recently registered a patent for increasing magnesium levels in drinking water using nanotechnology, a pioneering step that strengthens innovation leadership and promotes sustainability. This achievement is expected to enhance the circular economy, promote resource sustainability, and reduce costs. 

Germany’s GI Aqua Tech is one of the leading providers of innovative wastewater treatment solutions in Saudi Arabia. It operates on an innovative pay-per-cubic-meter business model through its subsidiary GI Water as a Service (GI WaaS), enabling accessible and cost-efficient on-site treatment solutions without the need for costly infrastructure. This model supports the circular economy and sustainability goals under Saudi Vision 2030 by maximizing water resource efficiency and combating desertification. Getting its patented G-Nano technology certified by the Saudi authorities, GI Aqua Tech became a pioneer in sustainable wastewater management. This technology reduces energy consumption by 80%, cuts operational footprint by 90%, and eliminates odors, making it highly efficient and eco-friendly.

Another key player is Separation Membranes Innovation (SMI), a Saudi startup specializing in developing and manufacturing high-quality water treatment membranes locally. It utilizes the latest advancements in materials nano-science for superior membrane performance. 

Founded by Saudi researchers and entrepreneurs with deep knowledge of water treatment technologies, SMI provides innovative, high-quality, locally manufactured water treatment membranes and pioneering solutions to address water scarcity challenges across the Middle East and beyond, while establishing Saudi Arabia as a hub for water treatment innovation.

By incorporating real-time monitoring and automation, these companies enable scalable plug-and-play solutions that can be tailored to different sectors, from oil and gas to urban wastewater.

Desert Farming

Recent reports by GASTAT revealed that agriculture remained the largest consumer of water, using 12,298 million cubic meters. However, non-renewable groundwater consumption by the agricultural sector dropped by 7% to 9,356 million cubic meters, compared to 10,044 million cubic meters in 2022. 

Saudi nanotechnology companies and startups utilize precision agriculture tools and smart solutions to optimize resource use and improve crop productivity. These companies embedded nano sensors in the soil and plants, enabling real-time monitoring of soil nutrients, moisture levels, and plant health with unprecedented accuracy. The sensors act as an intelligent nervous system for farms, allowing precise, data-driven irrigation and fertilization that reduces water waste and enhances crop yields in the arid Saudi environment. Other innovations, such as nano-enabled fertilizers and pesticides, were designed to release nutrients slowly and target crops more effectively, minimizing chemical runoff and environmental impact. 

For desert farming, some startups integrate nanotechnology with IoT and renewable energy, supporting controlled environments like solar-powered greenhouses that cultivate salt-tolerant, water-efficient crops compatible with Saudi Arabia’s challenging soil and climate. Key players in this field include iyris, Saudi Desert Control, Arable, Saudi Arabian Hydroponic Company (Zarei), and GreenMast. Research institutions like King Abdullah University of Science and Technology (KAUST) also contribute to achieving sustainable agriculture and food security by developing nanotech solutions and improving plant growth and resilience adapted to desert conditions.

The role of nanotechnology startups in promoting sustainability and economic growth

By focusing on nano-enabled water treatment and agriculture technologies, these startups help reduce water consumption and pollution, directly supporting Saudi Vision 2030’s environmental and sustainability goals. 

In water treatment, nano-enabled technologies substantially reduce chemical usage, energy consumption, and waste generation. For instance, nano metal oxides act as powerful catalysts and adsorbents that degrade pollutants efficiently in wastewater, enabling cleaner water recycling with minimal environmental impact. Meanwhile, advanced nano-membranes extend membrane lifespans and performance in seawater desalination plants, curbing energy-intensive operations and lowering carbon emissions.

In agriculture, nano-enabled technologies increase overall agricultural productivity, support food security, and reduce import dependence, which benefits the economy.

Economic impacts arise from building a high-tech ecosystem where startups, research institutions, and government initiatives join hands to develop and commercialize nanotech solutions, ultimately accelerating job creation, enhancing local expertise, and boosting exports of advanced materials and sustainable technologies.

Nanotechnology in Saudi agriculture and water sectors faces several challenges despite its promising potential. Technologically, the development and deployment of nanosensors, nano-fertilizers, and nano-enabled water treatment solutions require deep interdisciplinary collaboration across synthetic biology, materials science, agronomy, and data engineering. On the side, fragmented regulations governing nanomaterial use and safety slow down the approval and scale-up of innovative solutions.

Finally, the future for nanotechnology startups in Saudi Arabia’s water and agriculture sectors is promising, although challenges remain. With continuous developments and supportive ecosystem growth, nanotechnology is expected to play a transformative role in securing water resources, enhancing agricultural productivity, and fostering sustainable economic diversification in line with Vision 2030.

Noha Gad

Startup funding models are becoming increasingly diverse, underscoring a shift towards sustainable, flexible, and non-traditional approaches. The landscape emphasizes a mix of traditional equity funding, alternative financing, and innovative investor relations, triggered by advancements in technology, data-driven decision-making, and a desire for founders to maintain control and focus on long-term growth. 

Startups usually rely on venture capital (VC), angel investors, and bank loans to accelerate their growth. However, the pressure to deliver quick returns and meet aggressive growth targets has also contributed to high failure rates and significant stress for many founders. This shift encouraged entrepreneurs to explore alternative paths that prioritize sustainability, control, and long-term success.

What are anti-VC startups?

One of these emerging trends is the rise of anti-VC startups. These companies consciously choose to avoid traditional venture capital funding, focusing on building sustainable, profitable businesses without the typical pressures that come from external investors.

Anti-VC founders prioritize steady growth, profitability, and independence instead of seeking billion-dollar valuations and massive market disruptions. The anti-VC model offers founders autonomy and control over their startups, enabling them to retain full ownership and decision-making power, and to shape their company culture and strategy without external pressures. 

Through this model, startups focus more on achieving steady revenue, profitability, and long-term viability rather than pursuing rapid scale and investor-driven growth targets. This will eventually relieve founders from the constant fundraising cycle and high-stakes performance expectations. Founders can also stay aligned with their mission and vision without compromising due to investor demands for quick exits or pivots.

Further, the anti-VC model helps startups typically maintain healthier balance sheets and cash flows by focusing on revenue and avoiding excessive dilution.

Although the anti-VC model provides various benefits for founders, it comes with multiple disadvantages, notably:

• limited capital: Without VC funding, access to large amounts of growth capital is restricted, potentially slowing expansion and market penetration. Limited funding can also challenge hiring, marketing, R&D, and product development efforts.
• Networking gaps: VC companies usually provide valuable business advice, connections, and strategic support not readily available without their involvement.
• Market perceptions: Lack of VC backing may sometimes be perceived negatively by customers, partners, or later-stage investors.

Tips to build a startup without chasing VC investment

Here are key tips you have to follow to establish an anti-VC startup:

• Build your company based on the life and work balance you desire, rather than chasing aggressive growth for investor returns.
• Focus first on creating an audience, community, or market awareness. Share industry challenges, learning journeys, and solutions before expecting sales.
• Prioritize profitability over sheer growth, ensuring that each decision, hire, or product feature contributes to profitability rather than just scaling user numbers. 
• Automate operations to handle repetitive tasks like payment processing or customer onboarding, while keeping strategic decisions in your hands.
• Maintain operational control to protect the company’s mission and culture from dilution by outside investors.
• Engage hands-on in business growth with a focus on operational excellence and value creation, rather than relying on passive investment or high-risk bets.

The startup ecosystem is expected to witness significant transformation, thanks to the shift in funding models and broader market dynamics, notably the rise of hybrid and alternative funding models that combine founder-friendly values with flexible capital sources like revenue-based financing, syndicates, and equity crowdfunding.

The future suggests that founder-centric, alternative funding approaches will become more viable and respected, empowering entrepreneurs to create resilient businesses that can thrive long-term without losing sight of their core mission.

To sum up, choosing to build an anti-VC startup means embracing a different vision of success, which is grounded in sustainable growth, founder control, and profitability over hype. So, if you are a founder who prioritizes autonomy, balance, and enduring value creation, the anti-VC model is your perfect choice. It challenges conventional startup wisdom and opens new possibilities beyond chasing unicorns, proving that you can achieve meaningful success on your own terms.

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.

Noha Gad

Starting a business can be the most entertaining experience entrepreneurs ever undertake. The ability to be the master of their own destiny has a huge draw; however, they should be aware that the odds are stacked against them.

Recent statistics by Get Indemnity showed that nearly 60% of startups fail within five years, and 20% will close within just 12 months. There is a wide range of reasons why startups fail; however, cash flow is commonly identified as the largest cause of concern for the majority of SMEs. Other reasons include the lack of market fit, operational inefficiencies, legal complications, and cybersecurity threats.

In light of these challenges, failure insurance represents a valuable tool for startups to mitigate the financial and operational impacts of risk events. It encompasses various policies designed to transfer risk away from the startup to an insurer, offering crucial protection against costly setbacks.

Incorporating failure insurance into a startup’s risk management strategy is more than just a safety net; it is a vital component of building investor confidence and long-term resilience. This protection not only safeguards the startup’s resources but also helps maintain business continuity in times of crisis, enabling startups to focus on growth rather than the specter of catastrophic loss.

Why startups need failure insurance?

Failure insurance helps startups navigate the uncertainties inherent in early-stage ventures, empowering founders to pursue innovation with a buffer against unpredictable failures.

Events such as fires, theft, lawsuits, or cyberattacks can lead to severe financial losses that most startups cannot afford to cover out of pocket. Failure insurance transfers these risks to an insurer, providing a vital safety net that can help startups recover and continue operating despite setbacks. 

Failure insurance could also help startups maintain business continuity in the face of disruptions. Business interruption coverage, which is often part of failure insurance packages, supports startups by compensating for lost income during periods when normal operations are halted. 

Additionally, having failure insurance in place signals professionalism and prudence to stakeholders, making startups appear more credible and trustworthy. Insurance coverage, such as general liability, professional liability, and directors and officers (D&O) insurance, reaffirms that the startup is protected against a variety of legal and operational risks. 

Startups face several risks that threaten their survival and success, notably:

• Lack of product-market fit: Most startups fail when the product or service does not meet market needs or attract customers.
• Cash flow problems: Running out of cash or insufficient financing to cover operational costs is a major risk.
• Team-related issues: Poor team dynamics, lack of skills, conflicts, or inappropriate team composition.
• Lack of clear business model or plan: No structured revenue model or strategic planning.
• Operational inefficiencies: Management failures, poor decisions, and organizational issues.
• Cybersecurity and tech risks: Data breaches, outdated technology, or system failures.

Choosing the right insurance

Selecting the right failure insurance involves a strategic and dynamic approach tailored to each startup’s unique circumstances. Founders can build a comprehensive insurance strategy that protects their startups and supports sustainable growth by following these steps:

• Conducting a comprehensive risk assessment.
• Understanding legal and contractual requirements.
• Evaluating coverage types and policy details.
• Considering the startup stage and growth plans.
• Consulting experienced insurance advisors.
• Updating insurance regularly in alignment with business changes.

Finally, failure insurance is an essential component of a comprehensive risk management strategy for startups as it helps protect founders’ investments, preserve business continuity, and mitigate the potentially devastating impacts of unforeseen events. Securing appropriate failure insurance allows startups to operate with greater confidence and resilience in today’s competitive and uncertain market. Thus, founders should view failure insurance as an indispensable part of their business toolkit to safeguard their vision and hard work.