Kholoud Hussein 

The story of Saudi Arabia's digital transformation is often told through the language of infrastructure, artificial intelligence, cloud computing, and smart government services. Yet behind the platforms, applications, and digital ecosystems lies a deeper transformation that may ultimately prove to be one of Vision 2030's most significant achievements: the acceleration of women's participation in economic and social life.

In many countries, increasing female participation in the workforce has been a gradual process unfolding over several decades. In Saudi Arabia, however, the convergence of regulatory reforms, digital technologies, and economic diversification has compressed that timeline dramatically. The result is a generation of Saudi women entering leadership positions, launching startups, building technology companies, and contributing to the Kingdom's digital economy at a pace that few analysts anticipated a decade ago.

The digital transformation of Saudi Arabia did not merely create new tools. It fundamentally altered access to opportunity.

A Digital Economy Opens New Doors

When Vision 2030 was launched in 2016, one of its central objectives was to increase women's participation in the labor market. At the time, female workforce participation stood at approximately 17%. Today, that figure exceeds 36%, more than doubling within less than a decade and surpassing the Kingdom's original Vision 2030 target years ahead of schedule. According to the Ministry of Human Resources and Social Development, female labor force participation reached 36.3% in the first quarter of 2025, while female unemployment fell to a historic low of 10.5%. 

These figures represent far more than a labor market success story. They reflect a structural transformation in how women engage with the economy.

Technology has been one of the most powerful enablers of this shift. Digital platforms have reduced geographical barriers, expanded access to employment opportunities, enabled remote work, facilitated entrepreneurship, and simplified access to financial services. In many cases, technology accomplished something traditional economic reforms alone could not: it made participation easier, faster, and more accessible.

The rise of digital banking, e-commerce, online education, cloud-based business tools, and government platforms has fundamentally changed the mechanics of entering and participating in the economy. Women no longer need to be physically present to establish businesses, access services, or reach customers. The smartphone has effectively become an economic gateway.

From Beneficiaries to Builders

Perhaps the most important shift in the Saudi digital story is that women are no longer merely beneficiaries of transformation; they are increasingly becoming its architects.

Across the Kingdom, women are taking leadership roles in sectors that were once dominated by men, particularly in technology, digital innovation, artificial intelligence, venture capital, and entrepreneurship.

One of the most visible examples is Princess Reema bint Bandar Al Saud, whose leadership in both public policy and economic development has become symbolic of the broader evolution of women's roles in Saudi society. Equally influential is Dr. Esraa Albutairi, Vice Minister at the Ministry of Communications and Information Technology, who has been actively involved in advancing digital talent development and strengthening the Kingdom's innovation ecosystem.

At the institutional level, women are increasingly participating in the leadership of organizations driving the Kingdom's digital transformation agenda, from technology regulators and investment institutions to startup accelerators and innovation hubs.

This rise in leadership reflects a broader reality: digital transformation requires talent, and Saudi Arabia's growth ambitions cannot be achieved without fully integrating women into the innovation economy.

Building a Generation of Digital Entrepreneurs

While workforce participation statistics tell part of the story, entrepreneurship may be where the most profound transformation is occurring.

Saudi women are launching businesses at unprecedented rates. According to Mastercard's 2025 Women Entrepreneurship Research, 78% of Saudi women expressed interest in starting their own businesses, nearly equal to male respondents. The findings highlight a significant shift in entrepreneurial ambition as the Kingdom's startup ecosystem matures. 

Unlike previous generations, today's entrepreneurs operate within a digital-first environment.

Cloud services eliminate the need for expensive infrastructure. Social media provides direct access to customers. E-commerce platforms create national and global distribution channels. Digital payment systems simplify transactions. Artificial intelligence tools increasingly support marketing, operations, and customer service.

This environment has lowered traditional barriers to entry and enabled women entrepreneurs to build scalable businesses with relatively modest initial resources.

The result is the emergence of a new class of technology-enabled female founders whose companies are addressing challenges across fintech, retail technology, education, healthcare, logistics, and software services.

The Startups Leading the Change

Saudi Arabia's startup ecosystem increasingly features women at the helm of some of the Kingdom's most innovative ventures.

Among the most frequently cited examples is Razan Al Mubarak's broader regional influence on sustainability and innovation, alongside a growing generation of Saudi founders building technology-enabled companies across multiple sectors.

One notable example is The Chefz, which counted prominent Saudi women among its leadership and helped redefine food delivery experiences before its acquisition by Jahez. Another example is Marn, co-founded with strong female participation in leadership, which has become one of the Kingdom's leading cloud-based restaurant management platforms.

In the education sector, female entrepreneurs have played critical roles in developing digital learning platforms that gained traction during and after the pandemic. In healthtech, women founders have helped create solutions focused on wellness, preventive care, and patient engagement. In fintech, women are increasingly entering a sector that was once considered one of the most difficult industries for female entrepreneurs to penetrate.

More importantly, these founders are not building "women-focused" businesses alone. They are creating companies that address mainstream economic challenges and serve broad markets.

That distinction marks the transition from inclusion to influence.

How Government and the Private Sector Built the Foundation

The success of Saudi women in the digital economy did not emerge in isolation. It was supported by a deliberate strategy involving regulatory reforms, digital infrastructure investment, workforce development programs, and public-private partnerships.

The Ministry of Human Resources and Social Development reports that more than 800 training programs have delivered over 280,000 certificates, supporting more than 120,000 Saudi women into employment. Additionally, the “Wusul” transportation support initiative has helped more than 307,000 women overcome mobility barriers and maintain employment stability.

Partnerships with more than 46,000 private-sector companies have further expanded opportunities for women, while leadership development initiatives have trained thousands of women for management and executive positions. 

At the same time, the private sector has increasingly recognized that female participation is not simply a social objective but an economic necessity. Companies competing in technology, finance, and innovation-intensive industries require access to the broadest possible talent pool.

As a result, organizations across the Kingdom have expanded leadership pathways, digital training initiatives, and entrepreneurship support programs targeting women.

Women in the Technology Workforce

One of the clearest indicators of progress is the growing presence of women within Saudi Arabia's technology sector itself.

According to the Ministry of Communications and Information Technology, women now account for approximately 35% of the Kingdom's digital workforce, significantly exceeding both global and G20 averages. The sector employs more than 389,000 digital professionals, making Saudi Arabia home to the largest pool of digital talent in the Middle East.

Safa Al-Rashed, Acting Deputy Minister for Future Skills and Capabilities, recently emphasized that investment in national talent remains the foundation of the Kingdom's digital economy. She noted that Saudi Arabia's future competitiveness depends on empowering both young men and women with advanced digital skills capable of supporting innovation-led growth. 

This trend is particularly significant because technology increasingly serves as the infrastructure of every industry. Whether in healthcare, finance, retail, logistics, or education, digital capabilities are becoming essential career assets.

Women entering technology are therefore not only joining a sector; they are positioning themselves within the core engine of future economic growth.

The Next Frontier: AI Leadership and Deep Technology

While Saudi women's progress in entrepreneurship, digital services, and the technology workforce represents a major milestone, the next phase of the Kingdom's transformation will be defined by a far more ambitious challenge: positioning women not only as participants in the digital economy, but as leaders in the technologies that will shape the future global economy.

Artificial intelligence, advanced computing, robotics, cybersecurity, quantum technologies, and data science are rapidly becoming the strategic industries of the 21st century. Countries are increasingly competing not only for capital and infrastructure, but also for the talent capable of developing and managing these technologies. Saudi Arabia's leadership understands this reality well. The Kingdom's investments in AI infrastructure, cloud computing, data centers, and advanced digital capabilities are designed not merely to modernize public services, but to establish Saudi Arabia as a regional and global technology powerhouse.

For women, this transformation presents a historic opportunity.

Unlike many traditional industries where leadership structures were established decades ago, emerging technology sectors are still being built. Artificial intelligence, in particular, offers a relatively open playing field where expertise, innovation, and technical capability can matter more than legacy industry structures. As Saudi Arabia builds its AI ecosystem, women have an opportunity to enter these sectors at a formative stage and influence their development from the outset.

The Kingdom has already begun laying the foundations for this transition. Through initiatives led by the Ministry of Communications and Information Technology, the Saudi Data and Artificial Intelligence Authority (SDAIA), and multiple university partnerships, thousands of women are being trained in coding, machine learning, cybersecurity, and advanced digital skills. Programs such as the National Technology Development Program and digital upskilling initiatives are creating pathways into industries that barely existed in the Kingdom a decade ago.

The importance of this shift extends far beyond employment statistics. Artificial intelligence is expected to contribute hundreds of billions of dollars to the Saudi economy over the coming decades. According to PwC estimates, AI could contribute approximately $135 billion to Saudi Arabia's GDP by 2030, representing one of the largest AI-driven economic opportunities in the Middle East. The question is no longer whether women will participate in this growth, but whether they will occupy leadership positions within it.

The next generation of Saudi female founders is likely to look very different from the previous one. While many of today's successful women-led startups operate in e-commerce, consumer services, education, and health technology, tomorrow's entrepreneurs may be building AI platforms, climate-tech solutions, robotics companies, cybersecurity firms, and advanced software infrastructure businesses.

This evolution could ultimately transform Saudi women from adopters of technology into creators of globally competitive technologies. In doing so, they would help shape not only the future of the Kingdom's digital economy, but also its position within the global innovation landscape.

Beyond Employment: A Shift in Social Expectations

The impact of digital transformation on Saudi women cannot be measured solely through workforce participation rates, startup funding figures, or leadership appointments. Its most profound effect may be cultural.

Technology has altered the way opportunity is perceived.

For previous generations, professional pathways for women were often concentrated in a limited number of sectors. Today, a young Saudi woman can envision herself as a software engineer, startup founder, venture capitalist, artificial intelligence specialist, fintech executive, cybersecurity expert, or technology investor. These possibilities are no longer theoretical. They are increasingly visible in everyday life.

This visibility matters because economic transformation is often preceded by a transformation in expectations.

As Saudi women become more present in technology conferences, startup competitions, boardrooms, investment committees, and executive leadership teams, they are reshaping perceptions about who can lead innovation. Every successful female entrepreneur creates a reference point for the next generation. Every woman appointed to a senior technology position expands the boundaries of what young professionals believe is achievable.

Digital platforms have accelerated this process. Social media, professional networking platforms, online education, and digital communities have created new channels for mentorship, knowledge-sharing, and collaboration. Young women entering the workforce today have access to role models and professional networks that were previously difficult to reach.

The shift is particularly evident within entrepreneurship. A decade ago, female startup founders were often viewed as exceptions within the broader ecosystem. Today, they are increasingly becoming part of the mainstream narrative of Saudi innovation. Investors, accelerators, and venture capital firms are paying greater attention to female-led businesses, while government-backed initiatives continue to encourage women's participation in entrepreneurship and innovation.

There is also a deeper societal implication. The digital economy has changed the relationship between work and location. Remote work, digital businesses, online consulting, and cloud-based operations have expanded professional flexibility across multiple sectors. This has enabled many women to participate in economic activity in ways that were previously more difficult or less accessible.

Perhaps most importantly, digital transformation has helped shift the conversation from inclusion to contribution.

The debate is no longer centered solely on increasing women's participation. It is increasingly focused on the value women create as entrepreneurs, innovators, investors, engineers, and executives. Their role is no longer measured by presence alone, but by impact.

That distinction marks a critical stage in the maturation of Saudi Arabia's economic transformation. It signals that women are becoming integral contributors to the Kingdom's innovation economy rather than beneficiaries of reform initiatives.

Looking Ahead

As Saudi Arabia advances toward the next phase of Vision 2030, the role of women in shaping the Kingdom's digital future is expected to become even more significant.

The country's ambitions extend far beyond digital government services or technology adoption. Saudi Arabia is positioning itself as a global hub for artificial intelligence, cloud computing, advanced manufacturing, smart cities, fintech, and innovation-driven industries. Achieving these ambitions will require a continuous expansion of the national talent pool, making women's participation not simply desirable but economically essential.

The coming decade is likely to witness the rise of a new generation of Saudi female leaders operating at the intersection of technology, investment, and innovation. Some will build startups capable of expanding beyond regional markets. Others will lead venture capital funds, manage major technology projects, or oversee national digital initiatives. Many will help define the industries that emerge from Saudi Arabia's growing innovation ecosystem.

At the same time, challenges remain. Increasing representation in advanced technology fields, expanding access to growth-stage funding for female founders, strengthening mentorship networks, and ensuring greater participation in investment decision-making will all be important priorities. The next stage of progress will depend not only on access to opportunities but also on the ability to scale influence.

Encouragingly, the foundations already exist. Saudi Arabia now possesses one of the Middle East's largest digital economies, one of the region's most active startup ecosystems, and one of the world's most ambitious AI strategies. Women are entering these ecosystems at a moment when industries are being built rather than merely maintained.

This timing could prove decisive.

Just as the Kingdom's digital transformation reshaped the relationship between citizens and government, it is also reshaping the relationship between women and economic opportunity. The convergence of technology, policy reform, entrepreneurship, and investment is creating conditions that would have been difficult to imagine only a decade ago.

The story of Saudi women's digital leap is therefore not merely a story about employment or entrepreneurship. It is a story about agency, influence, and leadership in a rapidly evolving economy.

And as Saudi Arabia continues its transformation into a knowledge-based and innovation-driven nation, the success of its digital future may increasingly depend on the women helping to build it.

Noha Gad

Saudi Arabia has proven that technology and telecommunications are cornerstones of the modern Hajj experience. The record success of Hajj 2026 was powered by AI-driven crowd management, multilingual robots, the Nusuk platform, and a robust 5G network with over 5,230 towers delivering 99.9% availability. Yet the backbone of any mass gathering lies in the physical well-being and movement of millions. Healthcare and transport represent the most critical and most demanding pillars of the Hajj economy in Saudi Arabia.

The physical well-being of over 1.7 million pilgrims, many elderly or with pre-existing conditions, in a climate where temperatures can exceed 45 degrees Celsius, presents a medical challenge of epic proportions. Heatstroke, exhaustion, infectious diseases, and cardiac emergencies are constant threats that demand an instantaneous, highly coordinated medical response. Simultaneously, moving this massive population across the sacred sites requires transport networks of extraordinary capacity and precision. 

According to official figures by the Ministry of Health (MoH), the Saudi healthcare ecosystem delivered around 2.5 million medical services during Hajj 2026, while over one million calls were handled through the ministry's "937" health hotline. More than 52,000 health workers and 7,700 paramedics were deployed during the pilgrimage, supported by over 20,000 hospital beds, including 3,800 dedicated to the holy sites. Additionally, field epidemiology teams, rapid-response units, and advanced laboratory networks remained on standby throughout the pilgrimage, while multilingual public awareness campaigns focused on heat stress and disease prevention.

This success was also supported by the Kingdom’s efforts to increase hospital capacity significantly and provide new healthcare services. This included remote consultations through the Virtual Health Hospital, systems enabling the exchange of medical information with pilgrims’ home countries, and the deployment of a Mobile Stroke Unit to serve visitors in and around the Holy Mosque. According to the Vision 2030 Annual Report 2025, around 10,000 individuals benefited from the Virtual Health Hospital. This milestone reaffirms that virtual care has become a core component of the healthcare system in the Kingdom.

The integration of groundbreaking technologies to advance healthcare services

The Kingdom achieved a fundamental transformation in the healthcare systems during Hajj 2026 by integrating AI-powered surveillance, virtual clinics, and smart wearables. These innovations enabled authorities to manage crowds safely, provide real-time multilingual medical guidance, and protect millions of pilgrims from extreme heat and health risks.

• Intelligent healthcare systems

The National Platform for Health and Insurance Exchange Services (NPHIES platform) gave medical practitioners instant access to patient data, while telemedicine services provided remote consultations. The platform functioned as a centralized health information exchange (HIE) system that connected doctors, clinics, and emergency responders in the sacred sites to streamline several key healthcare processes. Additionally, the Raqeem enhanced medical records management and documentation efficiency, alongside the Raqeeb platform for monitoring and managing controlled medications, and the Ayenati system, which digitally connects laboratories and test results to accelerate access to health information.

To further enhance healthcare services during Hajj 2026, the Kingdom launched the Symptom Checker, an AI-powered tool that analyzes symptoms and medical history to provide preliminary assessments and instant health guidance. This solution contributed to reducing waiting times, improving medical triage efficiency, and providing around-the-clock medical support.

• Medical robotics

Medical robotics played a pivotal role in facilitating and streamlining healthcare services for pilgrims. These robots helped medical workers provide effective and accurate treatments and enhance patient outcomes. Hospital logistics, medicine distribution, and patient care services were also supported by robotic technologies. This innovation decreased response time and aided healthcare teams in coping with a surge in demand as a result of millions of visitors.

• Drones

Saudi authorities introduced drone deliveries for medicine and medical supplies during Hajj 2026, operating across the holy sites of Makkah. This innovation contributed to speeding up the delivery of medical logistics and improving response times during the Day of Arafat.

• Electronic E-Bracelets and Smart Cards

Pilgrims were equipped with digital e-bracelets or cards that store vital personal and medical information, allowing first responders and medical tents to access medical history instantly.

Moving millions: Transport network behind Hajj 2026

Transport played a central role in managing the movement of millions of pilgrims across cities and holy sites within a limited timeframe. In recent years, a more connected network has made it easier to move between arrival points, Makkah, Madinah, and the sacred sites. This network brings together air, rail, and ground transport. For instance, pilgrims who arrive through Jeddah or Madinah can travel via the Haramain High-Speed Railway between major cities and rely on other transportation, such as the Mashaer Train and Makkah buses, to move within and around the holy sites. 

The Haramain High-Speed Railway is one of the fastest trains in the world, which links Makkah and Madinah through a 453-kilometer route passing through Jeddah, King Abdulaziz International Airport, and King Abdullah Economic City (KAEC), with an operating speed of up to 300 kilometers per hour. Its network operates through a fleet of 35 trains, each with a capacity of up to 417 seats. In Hajj 2026, the Haramain High-Speed Railway recorded outstanding performance, achieving an on-time performance rate exceeding 98%. It transported more than 1.16 million passengers through 5,569 trips linking Makkah and Madinah. 

With a fleet of 17 trains and an operational capacity of 72,000 passengers per hour, the Mashaer Train extends for 18 kilometers and connects the holy sites of Mina, Muzdalifah, and Arafat, helping reduce travel time, ease traffic congestion, and improve crowd-management efficiency during peak periods. Official figures showed that the Mashaer Train transported more than 961,000 pilgrims in Hajj 2026. Around 290,000 pilgrims were transported from Arafat to Muzdalifah during one operational phase, while another 357,000 pilgrims were later moved from Muzdalifah back to Mina.

Beyond passenger capacity, the Mashaer Train delivered significant environmental benefits as its operation helped replace approximately 50,000 bus trips during the season, easing traffic congestion and enhancing environmental sustainability through reliance on electric energy with zero carbon emissions.

The Kingdom’s plans to facilitate transport during Hajj 2026 included the deployment of 33,000 buses and 5,000 taxis to boost safe, efficient transport and smooth pilgrim movement across the holy sites. More than 2,500 buses were operating round the clock to transport pilgrims, while 24 parking areas with space for 20,000 buses had been prepared to reduce congestion and improve movement efficiency. Additionally, the Royal Commission for Makkah City and Holy Sites deployed 24,000 buses through a central automated control system, including 2,500 for arrivals and 400 buses operating within Makkah on 14 routes.

The numbers from Hajj 2026 paint a remarkable picture of logistical and humanitarian achievement. It underscored Saudi Arabia’s successful efforts to transform the Hajj from a spiritual journey burdened by logistical chaos into a masterclass in human-centered coordination. The integration of AI-powered diagnostic tools, telemedicine platforms, robotic logistics, and drone deliveries redefined what is possible in mass gathering healthcare.

The true success of Hajj 2026 is a testament to the Kingdom’s commitment to better serving pilgrims and Umrah performers under the ambitious Vision 2030. From the digital ecosystems, including AI crowd management, 5G connectivity, and the Nusuk platform, to the healthcare and transport pillars, the Kingdom has demonstrated that technology and human compassion are not opposing forces but complementary tools.

Ghada Ismail

In Part One of this series, we explored two of the most common forms of business funding: initial capital, which helps entrepreneurs launch their ventures, and debt capital, which allows businesses to borrow money for growth and operations. But once a business moves beyond the startup stage, its financial needs become more complex.

Companies need funding to purchase inventory, cover operational expenses, enter new markets, and support expansion plans. This is where commercial capital and equity capital come into play.

Although both provide businesses with access to financial resources, they work in very different ways. Understanding the distinction can help founders choose the funding model that best supports their growth ambitions.

What Is Commercial Capital?

Commercial capital refers to funds used to support a company's commercial activities and day-to-day operations. It is commonly utilized by startups and small and medium-sized enterprises (SMEs) to finance ongoing business needs and maintain operational momentum.

Commercial capital is often used for:

• Purchasing inventory or raw materials
• Covering operating expenses
• Managing fixed costs
• Supporting trading and commercial activities
• Improving cash flow flexibility

Unlike initial capital, which is typically used to get a business off the ground, commercial capital is usually deployed once a company is already operating and looking to sustain or expand its activities.

Because this form of capital is closely tied to business performance and market activity, it is generally considered higher risk. However, that risk can also create opportunities for stronger returns, making commercial capital an important tool for businesses seeking growth.

What Is Equity Capital?

Equity capital takes a different approach. Instead of funding business activities directly, it involves raising money by selling a portion of the company to investors.

Sources of equity capital may include:

• Angel investors
• Venture capital firms
• Private equity funds
• Strategic corporate investors
• Friends and family

In exchange for their investment, shareholders receive an ownership stake in the business and benefit if the company's value increases over time.

Unlike debt financing, equity capital does not need to be repaid. However, founders must be willing to share ownership, future profits, and often some influence over major business decisions.

For startups pursuing aggressive growth, equity capital can provide access to larger amounts of funding than traditional financing options.

The Key Difference: Ownership

The most significant difference between commercial capital and equity capital is ownership.

Commercial capital is designed to support business operations. While providers of capital expect returns from the activities they finance, founders generally retain full ownership and control of the company.

Equity capital, on the other hand, requires entrepreneurs to exchange a portion of their business for funding. Investors become stakeholders whose success is tied directly to the company's future performance.

For founders, the trade-off is straightforward: commercial capital helps finance business activities, while equity capital helps finance growth by bringing new owners into the company.

Which Option Is Right for Your Business?

The answer depends largely on the company's stage of development and funding needs.

Commercial capital may be a better fit if a business:

• Needs funding for inventory or operational expenses
• Wants to maintain ownership and control
• Has established revenue streams
• Requires short- to medium-term growth support

Equity capital may make more sense if a business:

• Is in its startup or early-growth stage
• Needs substantial funding to scale quickly
• Wants access to investor expertise and networks
• Is willing to share ownership in exchange for growth capital

Many successful companies use both forms of capital at different stages of their journey. A startup may initially raise equity capital to build its product and enter the market, then use commercial capital later to support expansion and day-to-day operations.

To Wrap Things Up…

As we've seen throughout this series, different types of capital serve different business objectives. Initial capital helps launch a company, debt capital provides borrowed funds, commercial capital supports ongoing operations, and equity capital brings investors into the ownership structure.

Neither commercial capital nor equity capital is inherently better. The right choice depends on a company's goals, financial position, and growth strategy.

For entrepreneurs, understanding the strengths and trade-offs of each type of capital is essential to building a sustainable business and making smarter funding decisions as the company evolves.

Noha Gad

In the evolving world of finance, access to investment opportunities has traditionally favored those with substantial capital, as high minimum investment requirements often create barriers for retail investors, limiting their ability to diversify portfolios and participate in fixed-income markets. Yet, financial innovation continues to reshape this landscape, introducing instruments designed to democratize access and empower everyday investors.

One of these instruments is baby bonds, fixed-income securities specifically structured to lower the entry threshold for individual investors. Unlike conventional bonds, which typically require a minimum investment of $1,000 or more, baby bonds are issued with par values under $1,000, often ranging between $25 and $500. This accessibility makes them particularly appealing to retail investors seeking to build stable, income-generating portfolios without committing large sums of capital upfront.

How do baby bonds work?

These instruments function like other fixed-income securities as they have a specific maturity date and follow a schedule of interest payments. At maturity, the issuer repays the principal amount to the bondholder. However, many baby bonds are issued as zero-coupon bonds, meaning they are sold at a deep discount to their face value and do not pay periodic interest. The maturity periods for baby bonds are various. Some issuers offer short-term bonds with 5 to 15-year maturities, while others extend to decades, sometimes up to 50 years, particularly when issued for long-term infrastructure projects.

Baby bonds offer several compelling benefits for retail investors, notably:

• Accessibility: Low investment minimum makes fixed income accessible to investors with limited capital.
• Portfolio diversification: baby bonds enable small investors to add fixed-income exposure to otherwise equity-heavy portfolios.
• Fixed income stability: These bonds provide predictable returns with defined maturity dates.

Additionally, baby bonds represent a practical way for investors in emerging markets or those building their first investment portfolio to enter the bond market without committing substantial capital. They are especially useful for gradual portfolio building, allowing investors to purchase multiple bonds over time.

Some risks to consider before investing in baby bonds

Despite their advantages, baby bonds carry important risks that investors must understand:

• Risks stay the same.  A lower investment minimum does not mean lower risk. Baby bonds carry the same credit risk, interest rate risk, and inflation risk as traditional bonds.
• Zero-coupon limitations: Many baby bonds are zero-coupon, meaning no interim income is paid. Investors must wait until maturity to realize gains, which may not suit those seeking regular income.
• Liquidity concerns: Some baby bonds may have limited secondary market activity, making them harder to sell before maturity compared to widely traded bonds or bond ETFs.
• Opportunity cost: For investors with capital available, the low returns on baby bonds may offer lower returns compared to equities or other investment vehicles over the same period.

To sum up, baby bonds represent a meaningful step toward democratizing access to fixed-income investing. By lowering the entry threshold, they remove a longstanding barrier that has historically excluded retail investors from the bond market. For investors in emerging markets, those building their first portfolio, or anyone seeking to diversify with limited capital, baby bonds offer a practical pathway to participate in stable, income-generating assets. However, investors must recognize that baby bonds carry the same credit, interest rate, and inflation risks as traditional bonds, and factors such as zero-coupon structures and limited liquidity require careful consideration. This is why baby bonds are best suited for investors who prioritize gradual portfolio building, fixed-income stability, and diversification over aggressive returns. 

Ghada Ismail

Every business needs funding, but not all funding serves the same purpose. The money that helps launch a company is often very different from the money that fuels its growth later on. For entrepreneurs, understanding the distinction is crucial, as the type of capital they choose can affect ownership, financial flexibility, and long-term sustainability.

Two of the most common funding sources are initial capital and debt capital. While both provide businesses with the resources they need to operate and grow, they play different roles at different stages of a company's journey.

What Is Initial Capital?

Initial capital is the money used to start a business. It covers early expenses such as product development, licensing, equipment, office space, marketing, and initial hiring.

This funding often comes from founders' personal savings, family and friends, angel investors, or seed-stage investors. Its primary purpose is to give a business enough runway to launch, attract customers, and begin generating revenue.

Without sufficient initial capital, even strong business ideas can struggle to move beyond the planning phase.

What Is Debt Capital?

Debt capital is money borrowed by a business and repaid over time, usually with interest. Common sources include bank loans, credit facilities, government-backed financing programs, and private lenders.

Unlike equity-based funding, debt capital allows business owners to raise money without giving up ownership. Companies often use it to expand operations, purchase equipment, increase inventory, or strengthen cash flow.

The trade-off is that debt creates a financial obligation that requires repayment regardless of business performance.

Key Differences

The biggest difference between the two is timing. Initial capital is typically used during the launch stage, while debt capital is often accessed once a business has established operations and can demonstrate its ability to repay lenders.

Ownership is another major distinction. Initial capital may come from investors who receive equity in return for their funding. Debt capital does not dilute ownership because lenders are entitled to repayment, not a stake in the company.

Risk is also distributed differently. Investors who provide initial capital share in both the potential upside and downside of the business. Lenders, however, expect repayment regardless of whether the company succeeds or struggles.

Why Initial Capital is important?

Initial capital gives entrepreneurs the resources needed to build a foundation. It allows them to develop products, test business models, and attract customers before revenue becomes consistent.

It also provides greater flexibility during the early stages, when uncertainty is highest and businesses may need time to refine their strategy. A strong initial funding base can further improve credibility with future investors, lenders, and partners.

The Benefits of Debt Capital

For established businesses, debt capital can be an effective growth tool. Its biggest advantage is that founders retain full ownership and control of their company.

Debt financing can also provide access to larger amounts of funding without diluting equity. For businesses with predictable cash flow, borrowing can accelerate expansion and help seize opportunities that might otherwise take years to finance internally.

Which One Is Right for Your Business?

The answer depends largely on the company's stage of development.

Startups typically rely on initial capital because they need funding before generating reliable revenue. Taking on significant debt too early can create unnecessary pressure and financial risk.

More mature businesses, on the other hand, are often better positioned to benefit from debt capital. With established revenue streams, they can use borrowed funds to expand while maintaining ownership control.

In reality, many successful companies use both. Initial capital helps them get off the ground, while debt capital supports growth once the business is stable.

To Wrap Things Up…

Initial capital and debt capital serve different purposes, but both are essential tools in the financing journey of a business. Initial capital provides the foundation needed to launch, while debt capital can help scale operations and unlock new opportunities. Understanding when to use each can help entrepreneurs make smarter financial decisions and build businesses that are positioned for long-term success.

Noha Gad

Each year, millions of Muslims from around the world converge on Saudi Arabia for the Hajj, supported by a meticulously orchestrated logistics, housing, and transportation operation. This annual event has evolved far beyond its spiritual roots into one of the world’s most remarkable seasonal economic phenomena. For the Kingdom, Hajj is more than a religious obligation; it is a national priority, tightly tied to Vision 2030, the country’s long-term roadmap for economic transformation. Yet managing this massive influx within a confined geography and time window presents relentless challenges: infrastructure strain, crowd management, pricing regulation, and environmental sustainability. As Saudi Arabia opens its doors to increasing numbers of visitors, the Hajj economy stands as both a model of large-scale event logistics and a high-stakes test of the Kingdom’s economic transformation.

In Hajj 2026, the Kingdom welcomed over 1.7 million pilgrims from 165 nationalities, including 1.5 million external pilgrims and 160,646 internal pilgrims, marking the second-largest number following the 1.86 million pilgrims in 2019. According to recent statistics released by the General Statistics Authority (GASTAT), male pilgrims reached 893,396, representing 52.3% of the total number, while female pilgrims reached 813,905, accounting for 47.7% of the total number. These figures underscore Saudi Arabia’s continued efforts to serve pilgrims and visitors of the Holy Mosque in Makkah, the sacred sites, and the Prophet’s Mosque in Madinah, with a focus on care, organization, and hospitality. 

From vision to app: Digitizing the pilgrim journey

The Pilgrim Experience Program (PEP) is one of the programs designed to achieve Saudi Vision 2030. Launched in 2019 to enable the largest number of Muslims possible to perform Hajj and Umrah in the best manner, the program aims to facilitate hosting a larger number of Hajj and Umrah performers and streamlining access to the Haramain (the Two Holy Mosques in Makkah and Al-Madinah); providing high-quality services to pilgrims for a comprehensive and smooth experience; and enriching the religious and cultural experience of pilgrims by allowing them to visit Islamic historical and cultural sites.

The program is a model of agility, strategic excellence, and infrastructure, acting quickly to ensure a successful pilgrimage by safeguarding against threats and maintaining highly skilled personnel on hand. 

To further facilitate the pilgrims’ experience, the Kingdom launched the Nusuk platform and the Makkah Route initiative, reflecting a broader change: services are being adopted at scale, supporting a growing number of pilgrims with greater consistency and ease

With over 54 million users and more than 4 billion user interactions, Nusuk offers over 130 services and serves as a unified gateway for Muslims worldwide to plan their journeys in advance, access services, and manage their experience end-to-end. According to the Vision 20230 Annual Report 2025, the Makkah Route initiative enabled over 1.2 million pilgrims in 2025 to complete key procedures before departure, reducing waiting times and simplifying entry into the Kingdom, compared to 1,600 pilgrims in 2017.

Harnessing technology to enhance the Hajj experience

The success of the Hajj 2026 season underscored Saudi Arabia’s heavy investment in utilizing technology, artificial intelligence (AI), robotics, and smart services to improve crowd management and enhance operational efficiency. Through Saudi Vision 2030, the Kingdom installed high-end digitalization, medical technologies, and even AI-driven crowd control technologies to make the pilgrimage safer and smoother. The Saudi AI and Data Authority (SDAIA) led these efforts by operating several integrated AI-powered platforms and digital services throughout the pilgrimage journey.

AI-powered crowd management

One of the main areas of focus in the Hajj 2026 season is crowd management around the Grand Mosque in Mecca and the holy sites of Mina, Arafat, and Muzdalifah. According to SDAIA, platforms such as Baseer and Sawaher, developed in partnership with the Ministry of Interior, use computer vision, thermal imaging, and AI-driven analytics to monitor crowd density and movement patterns in real time and regulate pedestrian and vehicle flows in high-density areas around holy sites. These systems analyze live video feeds and surveillance data to identify congestion points, predict crowd surges, and support faster decision-making by authorities. Along with crowd management, Saudi authorities leveraged AI for enhanced transportation coordination, better resource allocation, and more effective emergency response.

Multilingual robots

The Kingdom deployed multi-service AI-powered robots designed to provide religious guidance and real-time translation in several languages as part of a wider digital ecosystem aimed at enriching visitors’ spiritual and intellectual experience. The robot offers interactive religious and educational content through an easy-to-use interface, including information on locations and services inside the two holy mosques, answers to religious inquiries, and instant translation services to help visitors from different nationalities and cultures communicate more easily.

Smart support services

In addition to surveillance systems, Saudi Arabia offered several smart support services to help pilgrims during their trip. For instance, drones were deployed to quickly inspect and assess the situation with crowds, providing authorities with useful real-time data regarding areas that would have been hard to capture otherwise. Additionally, digital advisory systems, multilingual communication support, and mobile applications assisted pilgrims with their routes, access to services, and valuable updates.

Saudi authorities also provided a range of digital solutions to help pilgrims find transportation, accommodation, healthcare, and religious support data, using mobile apps to send real-time alerts and assistance in various languages.

Connectivity that serves faith: how telecoms power the Hajj

The telecommunications sector was instrumental in the success of Hajj 2026, with the Kingdom’s advanced digital infrastructure playing a pivotal role. The core of this success was a massive physical infrastructure deployment that included over 5,230 communication towers across Makkah, Madinah, and the holy sites, complemented by more than 31,000 kilometers of fiber-optic cables to ensure comprehensive 4G and 5G coverage.

Operators like stc Group employed AI-powered systems for real-time crowd analysis and predictive traffic steering, with AI systems managing more than 99.9% of automated analytics and network decisions during peak hours, while service quality-related tickets fell 13%.

The group also has over 450 network expansion operations to include more than 3,000 new coverage points and 1,100 outdoor sites. These expansions increased the total data traffic by 42% during the Day of Arafah, with 5G accounting for more than 51% of total usage and 5G adoption growing 16% year-on-year. Average download speeds increased 13% while latency was reduced by 50%. The network achieved a call completion success rate of 99.83%, with VoLTE success up 11% and overall operational availability reaching 99.9% throughout the day. 

Additionally, stc Group provided integrated digital services at the Makkah Route’s lounges across 17 entry points in 10 countries to facilitate Hajj pilgrims’ procedures.

Zain KSA also developed an integrated ecosystem to enhance connectivity quality and digital services for pilgrims. It achieved a 99.9% network availability in Makkah and the sacred sites, and witnessed a 99% rise in call quality compared to the previous year and an 18% rise in high-quality data traffic.

The operator launched the Smart Hajj Platform, an AI-powered platform for end-to-end network management across the Hajj zone, to enhance performance efficiency and improve connectivity during the Hajj season. The platform enabled real-time detection and analysis of challenges and autonomous fixes requiring zero human intervention, allowing network challenges to be addressed faster than traditional manual monitoring methods.

These figures reaffirm that Saudi Arabia is no longer simply hosting pilgrims; it is engineering an end-to-end digital pilgrimage ecosystem where technology anticipates needs, bridges languages, and safeguards lives. The Hajj 2026 season demonstrated that the Kingdom has successfully transformed religious observance into a seamlessly orchestrated, data-driven operation without diminishing its spiritual essence.

As Vision 2030 approaches its final stretch, the Hajj economy offers a replicable blueprint for other mega-events worldwide. However, the true measure of success remains deeply human: shorter waiting times, clearer guidance, safer crowds, and the quiet dignity of worshipers who can focus entirely on their devotion. The next article will focus on two equally vital pillars of the Hajj economy: healthcare resilience in mass gatherings and the transportation logistics that move millions across sacred sites with precision and safety.

Ghada Ismail

Many founders start with the same belief: build a great product, solve a real problem, and the market will eventually take notice. While that sounds logical, startups rarely succeed on product quality alone. In today's crowded business landscape, visibility matters almost as much as innovation.

Customers need to know you exist. Investors need to understand your vision. Potential employees need a reason to join your journey. Without visibility, even promising startups can struggle to gain momentum.

This is where public relations comes in. Effective PR is not simply about securing media coverage. It is about building credibility, shaping perception, and ensuring that a company's story reaches the people who matter most.

The question for founders is not whether PR is valuable, but when the timing is right.

When Your Startup Has Found Its Voice

Not every startup is ready for PR from day one.

If a company is still refining its business model, experimenting with different customer segments, or constantly changing direction, communications efforts can feel premature. Before investing in PR, founders should have a clear understanding of what problem they solve, who they serve, and what makes them different.

Once that foundation is in place, PR becomes much more effective. A communications team can help transform a startup's mission, milestones, and expertise into stories that resonate with customers, investors, and the media.

Simply put, PR works best when there is already a story worth telling.

When Fundraising Is Around the Corner

Fundraising often marks a turning point in a startup's communications strategy.

Investors make decisions based on business fundamentals, but visibility can strengthen credibility. Consistent media presence can help a startup build familiarity before fundraising conversations even begin.

Beyond funding rounds themselves, PR can amplify major announcements such as partnerships, product launches, customer wins, and expansion plans. These milestones help demonstrate traction and momentum—two qualities investors are always looking for.

For startups entering a competitive fundraising environment, a strong public profile can become an important supporting asset.

When Competitors Are Dominating the Conversation

In sectors such as fintech, AI, healthtech, and e-commerce, competition extends far beyond products and services. Companies are also competing for attention.

When rival startups are regularly featured in industry publications, speaking at conferences, publishing insights, and engaging with the broader ecosystem, they naturally become more visible to customers, investors, and potential partners.

Remaining silent carries its own risk. It can create the impression that a company is less active or influential than its competitors, even when the opposite is true.

A strategic PR program helps ensure that a startup's achievements, expertise, and perspectives become part of the industry's ongoing conversation rather than remaining behind the scenes.

When Entering New Markets

Growth often means introducing the business to entirely new audiences.

Whether a startup is expanding into another city, another country, or a completely new customer segment, one challenge remains constant: building trust from scratch.

New markets bring unfamiliar stakeholders, different customer expectations, and fresh competition. PR can help accelerate awareness, establish credibility, and create opportunities for engagement before a startup has built a substantial local presence.

For companies pursuing regional or international expansion, communications can play a critical role in shortening the path to market acceptance.

When Founders Are Spending Too Much Time on Communications

In the early stages, founders tend to multitask.

They oversee product development, fundraising, hiring, operations, sales, and often communications as well. Writing press releases, responding to journalists, arranging interviews, and managing company announcements can initially seem manageable.

As the company grows, however, communications demands become more frequent and more complex.

At some point, founders need to decide where their time creates the greatest value. Delegating PR responsibilities to specialists allows leadership teams to focus on scaling the business while ensuring the company's messaging remains clear, professional, and consistent.

When Reputation Becomes a Competitive Advantage

A startup's reputation becomes increasingly valuable as it matures.

Customers are more likely to trust brands they recognize. Investors often place significant weight on the credibility of leadership teams. Talented professionals are naturally drawn toward companies that appear established, respected, and ambitious.

Reputation is built over years rather than months, but PR can help shape that journey. Through consistent storytelling, thought leadership, and strategic media engagement, startups can strengthen trust and reinforce their position within the market.

Over time, that reputation can become a meaningful competitive advantage.

To Wrap Things Up…

There is no universal milestone that signals it is time to hire a PR team. Some startups benefit from communications support shortly after finding product-market fit, while others wait until fundraising or expansion becomes a priority.

The more useful question is whether greater visibility could help accelerate the company's next phase of growth.

If a startup has meaningful progress to share, a clear market position, and ambitions that extend beyond its current audience, PR can evolve from a nice-to-have function into a strategic business tool.

Because in the startup world, success is not determined solely by what a company builds. It is also shaped by how effectively it communicates why its work matters.

Ghada Ismail

For years, compliance sat quietly in the background of business operations. It was something companies had to deal with to satisfy regulators, avoid fines, and keep the paperwork in order. Few founders saw it as a competitive advantage, and even fewer viewed it as a startup opportunity.

Today, that is changing.

As Saudi Arabia's digital economy expands, compliance is emerging as a business category in its own right. A growing number of startups are building software designed to help businesses meet regulatory requirements more efficiently, turning what was once a back-office function into a scalable technology product.

The timing is no coincidence. As fintech, insurtech, digital assets, e-commerce, and AI-powered businesses continue to grow across the Kingdom, regulators are paying closer attention to issues such as anti-money laundering (AML), customer verification, fraud prevention, and data protection.

For businesses, these obligations can quickly become expensive and complex. For a new generation of startups, they represent a market opportunity.

Their solution is straightforward: automate compliance through software. Instead of relying heavily on manual reviews, spreadsheets, and large compliance teams, companies can use technology to verify customers, monitor transactions, screen for risks, and generate reports in real time.

In the process, compliance is evolving from a regulatory requirement into a product category of its own.

Why Compliance Is Becoming Big Business

Saudi Arabia's startup ecosystem has grown rapidly over the past decade, supported by digital transformation initiatives, rising investment activity, and an increasingly tech-savvy population. But growth brings responsibility, and regulators are keeping pace with the speed of innovation.

Companies operating in financial services, insurance, payments, e-commerce, and other digital sectors now face stricter expectations around customer onboarding, risk management, transaction monitoring, and data governance.

For many startups, compliance becomes significantly more challenging as they scale. A company serving a few hundred users can often manage verification processes manually. A business onboarding hundreds of thousands of customers cannot.

The larger the customer base, the greater the compliance burden. Manual checks become slower, more expensive, and harder to maintain. At the same time, businesses face growing pressure to strengthen AML controls, Know Your Customer (KYC) procedures, sanctions screening, fraud detection, and data protection practices.

Failing to meet these requirements can lead to financial penalties, reputational damage, and restrictions on business activities.

As a result, many companies are looking for technology rather than manpower to solve the problem.

Instead of building large compliance departments from scratch or relying entirely on consultants, businesses increasingly want software that can automate verification, monitoring, screening, and reporting. That demand is creating space for a new generation of startups focused on simplifying compliance.

In many ways, regulation itself is helping create an entirely new sector within Saudi Arabia's technology ecosystem.

Turning Compliance Into a Product

The idea behind Compliance-as-a-Product is simple: make compliance accessible through software.

Traditionally, businesses relied on legal advisors, consultants, and internal compliance teams to manage regulatory obligations. While these functions remain important, they often require significant resources and manual effort.

RegTech companies are approaching the challenge differently.

Rather than simply advising companies on how to comply, they build technology that performs much of the work automatically. Businesses can subscribe to a platform, integrate it into their systems, and immediately gain access to compliance tools that would otherwise require extensive internal investment.

A fintech company, for example, can connect a compliance platform directly to its onboarding process. Instead of employees manually reviewing identity documents, checking sanctions lists, and assessing risk profiles, the software can perform these tasks in seconds.

The same approach can be applied to transaction monitoring, fraud detection, politically exposed person (PEP) screening, adverse media checks, and suspicious activity reporting.

For startups and mid-sized businesses, the appeal is obvious. They gain access to sophisticated compliance capabilities without having to build large teams dedicated solely to regulatory oversight.

Compliance, in effect, becomes something businesses can plug into their operations and scale alongside their growth.

Meet Saudi Arabia's Emerging RegTech Players

Among the most prominent is Mozn, one of the Kingdom's leading enterprise AI companies. Through its FOCAL platform, the company provides financial institutions with tools for AML compliance, fraud prevention, customer verification, transaction monitoring, and risk intelligence. The platform has been adopted by banks and fintech firms across the region, reflecting growing demand for locally developed compliance solutions that address the needs of highly regulated industries.

Another emerging player is Tathabbat, which focuses on identity verification, KYC, and AML solutions tailored to Saudi regulatory requirements. By concentrating on local market needs, the company aims to help businesses streamline compliance while reducing friction during customer onboarding.

Dal is also gaining attention through its Ayn platform, which offers AML screening, sanctions monitoring, and politically exposed person screening services. As financial institutions seek to balance strong risk controls with smooth customer experiences, these capabilities are becoming increasingly important.

Meanwhile, Esnad Tech's Sanad360 platform represents one of the Kingdom's earlier moves into the RegTech space. The platform provides tools for KYC verification, due diligence, AML compliance, and broader compliance workflow management. Its goal is to help organizations centralize processes that have traditionally been scattered across multiple departments.

Together, these companies highlight a broader shift taking place within Saudi Arabia's startup ecosystem. Rather than focusing solely on consumer apps or traditional software categories, entrepreneurs are tackling highly specialized challenges that sit at the intersection of technology and regulation.

Why Investors and Enterprises Are Paying Attention

Compliance technology offers several characteristics that make it particularly attractive as a business.

One of its biggest strengths is customer retention. Unlike many software products that can be swapped out relatively easily, compliance platforms often become deeply embedded within a company's operations. Once integrated into onboarding systems, transaction monitoring frameworks, and risk management processes, switching providers can be costly and disruptive.

That creates long-term customer relationships and recurring revenue opportunities.

Demand is also expanding well beyond traditional banking.

While banks remain major buyers of compliance solutions, fintech startups, insurers, investment firms, payment providers, and large enterprises are increasingly investing in compliance technology. As more services move online, businesses need automated tools that can verify customers, detect risks, and satisfy regulators without slowing growth.

The opportunity extends beyond Saudi Arabia as well.

Many GCC countries are introducing similar rules around AML, digital identity, open finance, and data protection. Because the regulatory direction is broadly aligned across the region, Saudi startups can often adapt their products for neighboring markets without rebuilding them from the ground up.

That creates a clear path for regional expansion.

Could Compliance Become the Next Infrastructure Layer?

Looking ahead, compliance technology may become one of the foundational layers of Saudi Arabia's digital economy.

Artificial intelligence is expected to play an increasingly important role in this evolution. Future compliance platforms are likely to move beyond rule-based screening and become far more predictive. AI can help identify unusual behavior, uncover fraud patterns, assess risk levels, and even assist with investigations before problems escalate.

At the same time, new regulations are creating new opportunities.

Emerging frameworks around AI governance, digital identity, open finance, cybersecurity, and data protection will introduce additional compliance obligations for businesses. Every new rule creates demand for tools that can simplify implementation and reduce operational complexity.

Saudi Arabia's digital transformation agenda, combined with the continued growth of its financial services sector, provides fertile ground for this type of innovation.

Just as fintech infrastructure companies emerged to simplify payments, banking integrations, and financial services, compliance infrastructure providers could become equally important to businesses operating in regulated industries.

In many ways, these startups are selling something more valuable than software.

They are selling trust.

Their platforms help businesses prove who their customers are, identify risks before they become problems, detect suspicious activity, and demonstrate compliance with evolving regulations. In a digital-first economy, those capabilities are becoming increasingly valuable.

Wrapping Things Up…

Compliance is no longer just a regulatory obligation hidden in the back office.

In Saudi Arabia, it is becoming a technology category with its own business models, growth opportunities, and startup success stories.

Driven by digital transformation, tighter regulations, and growing demand for automation, a new generation of companies is turning compliance into scalable software products. Players such as Mozn, Tathabbat, Dal, and EsnadTech are showing how technology can simplify complex regulatory processes while creating sustainable businesses in the process.

As the Kingdom's digital economy continues to mature, Compliance-as-a-Product could emerge as one of the most important segments of the broader technology landscape.

Kholoud Hussein 

Before long, fitness was viewed primarily as a lifestyle choice across much of the Middle East. Today, it has become a fast-growing economic sector attracting investment, driving entrepreneurship, and reshaping consumer spending habits. Across the GCC, rising health awareness, supportive government policies, and the expansion of modern fitness facilities have transformed wellness from a niche market into a mainstream industry. In Saudi Arabia particularly, Vision 2030 has accelerated this shift, helping create one of the region's fastest-growing fitness markets while encouraging greater participation across all demographics, especially women.

As the sector matures, attention is increasingly turning toward the technology infrastructure that powers gyms, personal trainers, and fitness operators. Beyond opening new fitness centers, the industry is entering a phase where operational efficiency, data analytics, artificial intelligence, and scalable digital platforms are becoming key drivers of growth and profitability. This evolution is creating significant opportunities for companies capable of bridging the gap between fitness services and technology.

Among the companies leading this transformation is Enhance, a Middle East-born fitness platform that has evolved from a regional service provider into a global technology player. Operating across the UAE, Saudi Arabia, Qatar, Bahrain, and the United States, the company now supports more than 15,000 personal trainers and facilitates over half a million training sessions every month. Through its Enterprise SaaS and AI-powered platform, Enhance Tech, the company is helping gym operators improve trainer performance, increase profitability, and better manage one of the industry's most valuable yet historically underutilized revenue streams: personal training.

As Enhance expands its footprint beyond the GCC and deepens its presence in the United States, the company is positioning itself at the intersection of fitness, artificial intelligence, and enterprise software. Its journey reflects broader trends reshaping the global wellness economy, where technology is increasingly becoming the foundation for scalable growth and long-term value creation.

In this exclusive interview with Sharikat Mubasher, Tarek Mounir, Founder and CEO of Enhance, discusses the company's evolution from a Dubai-based startup into a global fitness technology platform, the growing demand for personal training across Saudi Arabia and the GCC, the role of AI in transforming gym operations, the company's expansion strategy in the US and beyond, and how Enhance aims to become the global operating standard for personal training in the years ahead.

Enhance has scaled rapidly across the UAE, Saudi Arabia, and Qatar, while also expanding into the United States. How would you describe the company's current operating model, and what has been the key driver behind this cross-market growth?

Enhance is the operating system for personal training (PT). We help large gym chains turn PT from an afterthought into a predictable, profitable revenue stream — which in the high-volume, low-price (HVLP) segment is something almost nobody has cracked.

 We started in Dubai in 2018 as a service business. Eight years later, we cover 700+ contracted gym locations globally — UAE, Saudi Arabia, Qatar, Bahrain, and now the US — supporting 15,000 trainers and over 500,000 booked sessions a month. Revenue has compounded at 65% CAGR since 2019.

 The more important shift is the shape of the business. We went from a regional service layer into a SaaS platform that any multi-site gym operator can deploy. That super-sized our addressable market; from Gulf gym chains up into a $1.8 billion global PT management software category; with the US and UK alone worth $800 million. The GCC gave us the operational history and the proven unit economics. The US is where we're deploying them at scale.

With more than 15,000 personal trainers on the platform and over half a million monthly sessions booked, what does this level of activity reveal about demand trends in the fitness economy across the GCC?

The numbers reflect a structural shift in how GCC consumers approach health. A PT client in Dubai, in 2018, typically came in asking for weight loss before a wedding or a summer holiday. The same client today asks about strength, recovery, energy, and long-term healthspan. That vocabulary shift happened in under a decade.

 Saudi Arabia is the most significant data point. Vision 2030 opened the fitness category, and the pace of adoption — particularly among women — has been dramatic. We're seeing more first-time formal fitness participants in KSA right now than in any other market we operate in. Consumer demand there is outpacing the supply of qualified trainers, which tells you the ceiling is still far above where the market is today.

 Session volumes reflect PT’s transition from a premium add-on to a mainstream service. Over 500,000 booked sessions a month is not a niche conversation — it's a category.

Your Enterprise SaaS and AI-powered product, Enhance Tech, is gaining traction in the US market. What gap in the global gym industry are you addressing, and why do you believe this solution has not been built at scale before?

PT is a $42 billion global market, and most gym operators still lose money on it. The industry runs on whiteboards, spreadsheets and gut feel. Trainer churn sits around 70% a year. Fewer than 15% of free trial sessions convert into paying clients. Operators have almost no visibility into what is actually happening on the gym floor.

No one has solved this at scale because it requires two things that are genuinely hard to combine: deep operational experience running PT inside gyms, and the engineering capability to abstract that into software. Most software companies don't understand the gym floor. Most gym operators don't build software. We have spent eight years doing both, simultaneously.

The AI layer works because the dataset works first. We process over 500,000 PT sessions a month across 700+ gyms. Every session is a data point on what makes trainers successful, why members stay or leave, and where revenue leaks out. A new entrant would need almost a decade of operational history to rebuild that. That's not something you shortcut with capital.

The performance metrics you've shared — 20% more sessions per trainer, a 17% increase in operating margins, and over 40% improvement in trainer retention — are significant. From an investor's perspective, how do these metrics translate into long-term value creation for gym operators?

Each metric hits a different line on the P&L, so they compound in a meaningful way for operators and investors.

 The 20% increase in sessions per trainer is a revenue multiplier — the same headcount produces materially more output. The 17-percentage-point improvement in operating margin at mature sites makes PT much more of a profit engine for gyms. The retention number is the one investors tend to underweight the impact of: when trainer churn drops from the 70% industry norm to under 30%, operators are spared having to absorb constant rehiring and retraining costs, and clients stop churning with their trainer.

Put together, the model creates a gym that earns more from PT, spends less running it, and retains the people who deliver it. At mature sites we see PT revenue around $85,000 per club per month. That's the long-term value case — and it's why operators stay on the platform once they're on it.

Can you walk us through Enhance's funding journey to date? What type of investors have backed the company, and how are you positioning the business for future funding rounds or strategic partnerships?

We bootstrapped the early years deliberately. Taking outside capital before the unit economics were proven would have meant scaling the wrong thing faster. Once the model worked, we raised.

We've taken around $21 million to date. Our cap table includes Global Ventures — MENA's leading venture firm — alongside other institutional backers who understand the regional market and the global ambition. 

We are in conversations with investors who recognize now as particularly ideal timing, as we accelerate our US rollout, deepen the product, and move from a proven regional operator into the default PT infrastructure for large gym chains globally. 

The thesis is straightforward — PT is a $42 billion market with no system of record or operating standard. We're building it. The strategic partnerships we're pursuing in the US reflect the same logic: enterprise gym groups looking for an operator they can trust to run PT end-to-end, not just provide software.

Saudi Arabia is undergoing rapid transformation in its fitness and wellness sector under Vision 2030. How central is the Kingdom to your growth strategy, and what specific expansion plans do you have in this market?

Saudi Arabia is our highest-growth market and one of the most important in the world for this category. Vision 2030 did not just open a new segment — it catalysed a generational shift in how Saudi consumers relate to health and fitness. Current participation rates, particularly among women, would have been unimaginable a decade ago.

For Enhance, the KSA opportunity is both a consumer-side and enterprise-side story. For consumers, demand for qualified personal training is expanding faster than supply — the market constraint is the talent gap, not regulation or the willingness to pay. That creates a strong case for a platform that helps gym operators find, train, and retain good trainers at scale.

On the enterprise side, the large gym groups expanding aggressively across the Kingdom need infrastructure to run PT profitably — and the franchise model driving much of that expansion is exactly where our platform performs best. We're working with operators who are building for a ten-year horizon, and so are we.

Beyond the GCC and the US, which markets are you prioritising next, and what factors determine your market-entry strategy — regulation, consumer behaviour, or enterprise demand?

Enterprise demand drives the sequence, and then we assess the other factors. We follow large gym chains — if a group we already work with is expanding into a new market, that's a faster path to traction than building from scratch against an unfamiliar operator landscape.

As for what's next: the UK is a natural priority. It's the largest gym market in Europe, has strong HVLP penetration, and there is a significant shared-language advantage in how we build and sell the product. Beyond that, Southeast Asia and markets like Australia are interesting over a 24–36 month horizon — high gym penetration, growing PT adoption, and early-stage software infrastructure in the gym sector.

Regulation matters less than it might initially appear. Personal training is not a heavily regulated category in most markets. Consumer behaviour matters more — specifically, whether PT has reached the inflection point from premium to mainstream in a given market. Our GCC experience tells us that once that shift starts, it moves quickly.

As you continue to scale both your consumer platform and enterprise SaaS offering, how do you see Enhance evolving over the next three to five years — particularly in terms of AI integration, product development, and global market positioning?

The three-to-five year vision is to be the system of record and operating standard for personal training globally — the platform gym operators default to, the way hotel groups default to property management software or restaurants default to reservation systems. That category doesn't exist yet. We're building it.

On AI specifically: the tools already live include at-risk client detection that flags members before they churn, and a trainer coaching layer benchmarking every trainer, so managers know exactly who to develop. An AI sales agent and a daily AI management brief follow later this year — with ranked morning instructions for each gym manager, rather than a dashboard requiring interpretation.

The advantage is not the models themselves. Every platform will have access to good models. The advantage is the eight years of operational history behind ours — over 500,000 sessions a month across 700+ gyms, compounding daily. That data set gets harder to replicate every quarter.

On global positioning: the US establishes us as a credible global operator, not just a GCC success story. That matters for enterprise deals, for the fundraising narrative, and for the category we're defining. The ambition, simply stated, is to be the company that built the global infrastructure for PT — and to have done it from the UAE.

Ghada Ismail

When most people think about borrowing money, financing a business, or securing an investment, they think of banks. Yet an increasing share of financial activity today takes place outside the traditional banking system.

Private credit funds, fintech lenders, money market funds, and other non-bank institutions are playing a growing role in moving capital across the economy. Together, these players make up what is known as the shadow banking system.

The term may sound mysterious, but shadow banking is neither hidden nor necessarily risky by nature. It simply refers to financial institutions that perform many of the functions of banks without operating as licensed commercial banks.

What Is Shadow Banking?

In simple terms, shadow banking describes organizations that provide financing and credit without accepting customer deposits like traditional banks.

These institutions help businesses and individuals access capital through a variety of channels. Common examples include:

• Private credit funds
• Money market funds
• Hedge funds
• Finance companies
• Fintech lending platforms
• Peer-to-peer lending networks

While their structures differ, they all serve a similar purpose: connecting capital with those who need it.

Why Is Shadow Banking Growing?

The expansion of shadow banking is being driven by a combination of market demand, regulatory dynamics, and technological innovation.

Today, businesses are seeking faster and more flexible financing options, while investors continue to look for returns beyond those offered by traditional savings and investment products. At the same time, digital platforms and fintech solutions have made it easier to connect borrowers with alternative sources of capital.

Several factors continue to support the growth of non-bank finance:

• Businesses need more diverse funding channels. 
• Investors are searching for higher-yield opportunities. 
• Fintech platforms are streamlining access to credit and investment products. 

Startups and SMEs often require financing solutions that fall outside conventional lending models. 

Institutional investors are allocating more capital to private credit and alternative assets. 

As these trends continue, shadow banking is becoming an increasingly important source of funding and liquidity within the broader financial ecosystem.

The Advantages of Shadow Banking

Supporters argue that shadow banking makes financial markets more flexible and efficient.

For businesses, especially startups and growing companies, alternative lenders can often provide faster access to capital than traditional banks. In some cases, they are also willing to finance businesses that may not fit a bank's standard risk profile.

Some of the key benefits include:

• Greater access to funding
• Faster financing decisions
• More competition in financial services
• Increased support for innovation and entrepreneurship

In many markets, shadow banking complements traditional banking rather than replacing it.

Risks and Regulatory Concerns

While shadow banking expands access to capital and financial services, it also presents a unique set of risks.

Because many non-bank financial institutions operate under different regulatory frameworks than traditional banks, their risk profiles can vary significantly. In some segments, oversight may be lighter, while certain business models may be more exposed to market fluctuations or funding pressures.

Key concerns associated with shadow banking include:

• Liquidity pressures during periods of market uncertainty 
• Greater sensitivity to asset price and market volatility 
• Regulatory gaps across different jurisdictions and sectors 
• Interconnected financial relationships that can amplify risks across markets 

As the sector continues to grow, regulators and market participants are increasingly focused on improving transparency, risk management, and oversight to ensure that innovation and financial stability develop in parallel.

The Fintech Factor

The rise of fintech has added a new chapter to the shadow banking story.

Digital lenders, Buy Now Pay Later providers, and alternative financing platforms are transforming how people access credit. While many operate within regulatory frameworks, they also highlight a broader trend: financial services are no longer the exclusive domain of traditional banks.

As technology continues to reshape finance, the line between banks and non-bank institutions is becoming increasingly blurred.

Wrapping Things Up…

Shadow banking has become a major force in modern finance, helping businesses raise capital, supporting investment activity, and expanding access to funding.

Its growth reflects a broader shift in how money moves through the economy. While regulators continue to monitor the risks, shadow banking is likely to remain an important source of financing in the years ahead.

For entrepreneurs, investors, and anyone following the future of finance, understanding shadow banking is no longer optional; it's now essential.

Ghada Ismail

In the startup world, raising money is often treated as the ultimate sign of success. Big funding rounds generate headlines, attract attention, and create momentum around companies. But experienced founders know something many first-time entrepreneurs eventually learn the hard way: not all money behaves the same way.

Some investors stay committed when growth slows down or markets become uncertain. Others disappear the moment conditions become difficult.

That difference is what people in the investment world call “sticky capital.”

What Is Sticky Capital?

Sticky capital refers to long-term investment that stays committed to a company or market despite temporary setbacks, economic uncertainty, or market volatility.

Unlike speculative funding that chases trends and quick returns, sticky capital focuses on sustainable growth. Investors providing this type of funding understand that building successful businesses takes time and that difficult periods are part of the process.

In simple terms, sticky capital is often described as “loyal money.”

Sticky capital usually involves:

• Investors staying during downturns instead of exiting quickly 
• Long-term commitment over short-term gains 
• Patience with slower growth periods 
• Strategic guidance alongside financial support 
• Focus on fundamentals rather than hype 

For founders, this kind of stability can be incredibly valuable. It creates room to experiment, solve problems, and improve the business without constantly worrying about investors suddenly pulling back.

Not All Money Behaves the Same Way

In the startup ecosystem, founders often celebrate funding rounds as signs of success. But experienced entrepreneurs know that where the money comes from matters just as much as how much is raised.

Some investors aggressively enter trending sectors during boom periods, chasing hype and fast returns. But when markets cool down, they pull back just as quickly.

This is often called “tourist capital.”

Tourist capital follows momentum. Sticky capital follows conviction.

The difference is simple:

Tourist Capital

• Chases trends and hype 
• Focused on quick returns 
• Pulls back quickly during downturns 

Sticky Capital

• Thinks long term 
• Supports sustainable growth 
• Remains committed during uncertainty 

That difference can completely shape a startup’s future.

Why is Sticky Capital important?

Startups operate in uncertain environments by nature. Markets shift, customer behavior changes, competition evolves, and economic slowdowns can happen unexpectedly.

During those moments, stable investors become extremely important.

Startups backed by sticky capital are often better positioned to survive difficult cycles because they are not forced into panic-driven decisions. Instead of abandoning long-term goals outright, they can focus on improving products, refining operations, and adapting strategically.

Sticky capital also allows founders to think beyond short-term optics. When entrepreneurs know their investors believe in the bigger vision, they are more likely to invest in talent, infrastructure, and long-term product development instead of obsessing over the next funding round.

In many cases, companies built with patient capital become healthier businesses because they are focused on fundamentals rather than hype.

To Wrap Things Up…

Every startup ecosystem wants investment flowing into the market. But sustainable growth depends on attracting the right type of investment.

Sticky capital encourages healthier founder-investor relationships, supports long-term thinking, and helps startups survive difficult cycles without losing focus.

Most importantly, it creates businesses built on resilience rather than hype.

Ghada Ismail

A few years ago, launching a startup in Saudi Arabia usually followed a familiar path. Founders would enter an accelerator, pitch investors, secure early funding, and then try to figure everything else out along the way. Today, a different model is beginning to take shape across the Kingdom, one that is less about simply financing ideas and more about building companies from the ground up.

Welcome to the era of venture studios.

Across Saudi Arabia, a growing number of venture builders are quietly changing how startups are created. Instead of waiting for entrepreneurs to arrive with fully formed businesses, these studios help shape the idea itself, validate the market, recruit talent, build products, and guide operations from day one. In many cases, they act less like investors and more like co-founders.

The rise of players such as VMS, Sanabil Studio, and Lean Node Venture Studios reflects a broader shift happening inside Saudi Arabia’s startup ecosystem. The conversation is no longer just about funding entrepreneurs. It is increasingly about building startups systematically, repeatedly, and at scale.

Moving Beyond the Accelerator Boom

For years, Saudi Arabia has focused heavily on laying the groundwork for entrepreneurship. Government initiatives, accelerator programs, startup competitions, and venture capital funds helped create momentum in the ecosystem. As investment activity accelerated, the Kingdom quickly became one of the Middle East’s largest startup funding markets.

But money alone could not solve every challenge.

Many startups still struggle with execution. Some founders had strong technical skills but limited experience building scalable businesses. Others found it difficult to navigate regulations, recruit the right talent, localize products, or acquire customers efficiently.

That gap created space for venture studios to emerge.

Unlike traditional venture capital firms that invest after a startup already exists, venture studios often start much earlier. They identify opportunities internally, test market demand, help shape business models, and sometimes build entire companies alongside entrepreneurs from the earliest stages.

Globally, the model has already produced major companies within various sectors. Saudi Arabia is now adapting the concept to fit its own market dynamics and economic ambitions.

Why the Model Makes Sense in Saudi Arabia

The venture studio approach fits naturally with where Saudi Arabia’s ecosystem stands today.

Under Vision 2030, the Kingdom is trying to diversify its economy, accelerate innovation, create private-sector jobs, attract global talent, and localize emerging industries, all at the same time.

Venture studios actually offer a structure that supports many of those goals simultaneously.

Unlike short-term accelerator programs, studios stay involved throughout the startup journey. They provide operational support, legal guidance, hiring assistance, technical development, fundraising strategy, and business connections under one roof.

For first-time founders, that reduces risk considerably.

For investors, it creates a more controlled environment where ideas are validated before large amounts of capital are deployed.

And for Saudi Arabia, venture studios provide a way to systematically produce startups in strategic sectors such as fintech, AI, logistics, tourism, enterprise software, and digital commerce.

That is why many Saudi venture studios no longer describe themselves simply as investment firms. They position themselves as company builders.

VMS and Saudi Arabia’s Soft-Landing Opportunity

Among the more visible players in this space is Value Makers Studio (VMS), which positions itself as both a venture studio and a platform helping regional and international startups enter the Saudi market.

Based in Riyadh, VMS provides support that goes beyond capital, including technology development, legal assistance, marketing support, financial guidance, and access to Saudi business networks. The company also operates initiatives such as the ‘VMS Bridge Program,’ which focuses on connecting startups from emerging markets with Saudi Arabia’s innovation ecosystem.

That ‘soft-landing’ approach is becoming increasingly relevant as more foreign founders and international startups look toward Saudi Arabia as a regional expansion market.

VMS also reflects a broader trend emerging across the Kingdom’s startup ecosystem, where venture studios are evolving into ecosystem connectors alongside their company-building role. In practice, this often means helping startups navigate relationships with investors, corporations, regulators, and local business networks, presenting an advantage that can significantly influence how quickly companies scale in Saudi Arabia.

Sanabil Studio and Institutional Startup Creation

A stronger example of institutional venture building can be seen in Sanabil Studio, which was established by Sanabil Investments, a wholly owned subsidiary of the Public Investment Fund. 

The studio focuses on building startups from the earliest stages, working closely with founders across ideation, prototyping, MVP development, product design, engineering, hiring, finance, and growth support. According to the studio’s website, it combines capital, market insight, and hands-on operational support to help founders launch and scale ventures in Saudi Arabia. 

What makes Sanabil Studio particularly notable is its combination of sovereign-backed capital with hands-on company creation. Unlike traditional venture capital firms that typically invest after startups are already established, venture studios such as Sanabil Studio participate much earlier in the company-building process, often helping shape ventures from ideation through early execution. 

Lean Node and the “Startup Factory” Approach

Another important player is Lean Node, which focuses on building ventures internally while supporting entrepreneurs through structured startup-building programs.

According to the company, it has helped launch more than 18 startups since 2017 using a repeatable venture-building framework designed to reduce common startup risks.

Lean Node highlights one of the biggest advantages of the venture studio model: operational centralization.

Instead of every startup building separate HR systems, legal structures, financial operations, and development teams from scratch, studios create shared infrastructure that multiple ventures can use simultaneously.

This lowers costs, speeds up execution, and allows studios to test ideas more rapidly across different sectors.

In many ways, the model resembles a startup factory more than a conventional investment firm.

Lean Node and the “Startup Factory” Approach

Another important player in Saudi Arabia’s venture studio ecosystem is Lean Node, which focuses on building ventures internally while supporting entrepreneurs through structured startup-building programs.

According to the company’s website, Lean Node has helped build more than 18 startups since 2017 through a venture-building model focused on developing scalable businesses across the MENA region. The studio describes itself as “an engine that builds disruptive products” using a “tested and streamlined process” designed to maximize success while lowering risk. 

The company’s structure reflects one of the core characteristics of the venture studio model: centralized operational support. Rather than every startup independently building teams and systems from scratch, venture studios typically provide shared access to areas such as product development, operational guidance, technical expertise, and business support. This approach can reduce early-stage costs and accelerate execution across multiple ventures simultaneously. 

Lean Node has also expanded into specialized venture-building initiatives, including fintech-focused startup creation through partnerships such as Lean Fintech, launched with Mjalis Investment during LEAP 2023. 

In practice, the model operates more like a startup production platform than a conventional investment firm, with venture studios playing an active role in company creation rather than acting solely as financial backers. 

Closing the Founder Experience Gap

One reason venture studios are gaining traction in Saudi Arabia is that they directly address one of the ecosystem’s biggest challenges: experience.

The Kingdom has no shortage of ambitious entrepreneurs or available capital. What remains relatively limited, however, is the number of experienced startup operators who have repeatedly built and scaled companies.

Founders across the ecosystem frequently talk about the difficulties of navigating fundraising, finding product-market fit, hiring effectively, and scaling operations.

Venture studios attempt to shorten that learning curve.

Instead of forcing founders to figure everything out alone, studios embed experienced operators, engineers, marketers, product designers, and venture builders directly into the process from the beginning.

The Challenges Behind the Hype

Still, venture studios are not a perfect solution.

Some entrepreneurs argue that studio models can dilute founder ownership too aggressively. Others question whether startups created inside structured environments develop the same resilience as companies built independently.

There are also operational risks.

Running multiple startups simultaneously requires significant capital, talent, and management discipline. Internationally, several venture studios have struggled to maintain strong long-term performance across large portfolios.

Another open question is whether venture studios can consistently produce truly disruptive innovation rather than safer, optimized versions of existing business models.

Saudi Arabia’s ecosystem is still young enough that many of these questions remain unanswered.

Even so, supporters of the model believe the Kingdom’s current market conditions make venture studios especially relevant. In an ecosystem that is still building institutional startup knowledge, structured company creation may offer advantages that traditional founder-led approaches cannot always provide on their own.

The Future Ahead

The next phase of Saudi Arabia’s venture studio ecosystem will likely become far more specialized.

Future studios may focus entirely on sectors such as AI, cybersecurity, climate tech, gaming, logistics, biotech, fintech, or deep tech. Some early signs of that trend are already emerging through initiatives tied to advanced technologies and national innovation priorities.

AI-native venture studios could also become increasingly common as generative AI dramatically reduces development timelines and startup operating costs.

At the same time, international venture builders are expected to form more partnerships inside the Kingdom as Saudi Arabia continues positioning itself as one of the region’s largest startup markets.

What is already becoming clear, however, is that Saudi Arabia’s ecosystem is entering a new stage of maturity. The early era of startup hype is gradually giving way to something more structured, operational, and institutionalized. And venture studios may end up playing a central role in that transition, not simply by funding the next generation of Saudi startups, but by helping build them from scratch.