Ghada Ismail

For decades, Saudi Arabia’s global energy identity has been closely tied to oil production. Yet in recent years, the Kingdom has begun positioning itself as a future leader in renewable energy, particularly solar power. With vast deserts, high sunlight exposure, and strong government backing, Saudi Arabia is rapidly building a solar ecosystem that combines large infrastructure projects with innovative startups developing technologies tailored for desert environments.

This shift is not simply environmental. It is deeply economic. As part of Vision 2030, Saudi Arabia aims to diversify its economy and reduce domestic reliance on hydrocarbons for electricity generation. Renewable energy now sits at the center of that transformation.

The Kingdom has set an ambitious target: generating 50% of its electricity from renewable sources by 2030, requiring around 130 gigawatts of renewable energy capacity, most of which will come from solar power. 

To put that in perspective, Saudi Arabia’s renewable energy capacity was almost nonexistent a decade ago. Today, large-scale projects are already producing electricity while dozens more are under development. Solar technology is not only becoming a key energy source—it is emerging as a new sector for innovation and entrepreneurship.

Why Saudi Arabia Is Ideal for Solar Technology

Saudi Arabia possesses some of the strongest solar resources on Earth. Studies by the King Abdullah City for Atomic and Renewable Energy show that solar radiation across much of the Kingdom averages around 5.5 to 6.5 kilowatt-hours per square meter per day, placing it among the most sun-rich regions globally. Research on solar resource mapping conducted by King Abdullah University of Science and Technology indicates that annual solar irradiation levels typically range between 2,100 and 2,400 kWh per square meter, giving the Kingdom a natural advantage: solar panels installed in Saudi Arabia can generate significantly more electricity than similar systems in many other countries.

These environmental conditions make solar energy economically attractive. Renewable energy tenders organized under the Kingdom’s procurement program, managed by the Saudi Power Procurement Company, have produced some of the lowest solar electricity prices ever recorded globally, with winning bids falling below $0.02 per kilowatt-hour in several competitive auction rounds, according to analyses by the World Bank and international solar market reports.

Yet the Saudi environment also presents unique technical challenges. Research from King Abdullah University of Science and Technology highlights how dust accumulation, extreme temperatures, and large-scale desert installations can significantly reduce photovoltaic efficiency. As a result, simply importing conventional solar technology is often not enough, creating demand for desert-adapted solar solutions and new technological innovation.

This is where Saudi energy tech startups and research institutions are stepping in, developing innovations designed specifically for desert climates.

Startups Tackling Solar’s Desert Challenges

One of the most prominent Saudi solar technology startups is NOMADD Desert Solar Solutions, a company originating from research conducted at the King Abdullah University of Science and Technology (KAUST). The acronym NOMADD stands for NO‑water Mechanical Automated Dusting Device — a solution developed in response to the specific challenges of cleaning solar panels in desert environments.

Dust accumulation is a major obstacle for solar farms in desert regions. Sand and fine particles settle on panels and block sunlight, reducing electricity output. According to NOMADD’s founder, daily dust soiling can cut production by around 0.5–1% per day, and after severe sandstorms, efficiency losses can reach as much as 60% if panels are not regularly cleaned.

Traditional cleaning systems often rely on large amounts of water, an impractical solution in water-scarce arid regions. NOMADD addressed this by developing autonomous robotic cleaning systems that remove dust from solar panels without water. These robots traverse solar arrays, gently brushing surfaces to maintain performance while minimizing maintenance costs and water use. 

This technology is particularly relevant as Saudi Arabia deploys massive solar farms across desert landscapes, including those planned for megaprojects such as NEOM, where maintaining high output amid harsh conditions is essential for renewable energy targets. 

Mirai Solar and the Rise of Agrivoltaics

Another emerging Saudi startup pushing solar innovation forward is Mirai Solar, which is developing flexible and transparent solar technologies designed for agriculture and greenhouse applications.

Unlike traditional solar panels that completely block sunlight, Mirai Solar’s photovoltaic modules allow some light to pass through while converting part of it into electricity. This technology enables solar panels to function as shading systems for greenhouses.

In hot climates like Saudi Arabia’s, excessive sunlight can stress crops and increase cooling costs in agricultural environments. By integrating solar shading structures with energy generation, Mirai Solar’s systems simultaneously produce electricity while creating a more controlled environment for agriculture.

This approach belongs to a growing field known as ‘agrivoltaics’, which combines agriculture and solar power generation on the same land. In regions where water and arable land are limited, such hybrid systems could help improve both energy and food sustainability.

Solar Windows and Energy-Producing Buildings

Another innovative Saudi climate tech company working on solar energy solutions is Iyris, a startup developing transparent photovoltaic materials designed for building integration.

The company’s technology focuses on glass coatings that capture infrared light while allowing visible light to pass through. This means windows can generate electricity while still functioning as normal building glass.

Beyond electricity production, this technology can significantly reduce heat entering buildings. In Saudi Arabia, where air-conditioning accounts for a large share of electricity consumption, reducing solar heat gain could dramatically lower energy demand.

If deployed at scale, energy-generating glass could transform urban architecture, allowing buildings to function as distributed power generators rather than passive energy consumers.

Research Institutions Driving Solar Innovation

Many Saudi solar startups originate from academic research institutions rather than traditional venture capital ecosystems.

King Abdullah University of Science and Technology has emerged as one of the region’s most important hubs for renewable energy research. The university hosts dedicated laboratories focused on photovoltaics, energy materials, and solar system engineering.

Through commercialization programs and accelerators such as TAQADAM, research projects can evolve into venture-backed startups capable of scaling globally.

Companies like NOMADD and Iyris demonstrate how academic research can transition into real-world energy technologies that address regional environmental challenges.

The Solar Infrastructure Boom

Alongside startup innovation, Saudi Arabia is investing heavily in utility‑scale solar infrastructure as part of its renewable energy transition under Vision 2030. One of the Kingdom’s flagship projects is the Sudair Solar PV Project, a 1.5‑gigawatt solar installation in Sudair Industrial City,  one of the largest single‑site solar plants in the country and among the largest globally at this scale.

Another massive development is the Al Shuaibah solar project, planned to reach around 2.6 gigawatts of installed capacity, making it one of the region’s largest solar power projects and a major component of the National Renewable Energy Program.

The Kingdom’s solar market is also expanding rapidly in economic terms. According to industry research by IMARC Group, the Saudi solar energy market was valued at about $8.3 billion in 2025 and is forecast to grow to around $145 billion by 2034, driven by continued deployments and growth in solar technologies and infrastructure.

These large‑scale projects provide the infrastructure backbone for the renewable energy transition, while startups and technology companies help build the innovation layer that makes solar systems more efficient, durable, and scalable.

A New Energy Technology Ecosystem

Traditionally, energy industries have been dominated by massive corporations and government-backed utilities. Solar technology is changing that dynamic.

Because solar power involves numerous technological components—from materials science and robotics to software and energy storage—it creates opportunities for smaller companies to develop specialized solutions.

Saudi startups are increasingly focusing on technologies such as solar panel maintenance automation, advanced photovoltaic materials, smart energy monitoring systems, and building-integrated solar technology.

Rather than competing with utility-scale energy companies, these startups operate within the broader energy ecosystem, developing the tools and infrastructure that allow solar energy systems to operate more efficiently.

Challenges for Solar Startups

Despite strong government support, building energy technology companies remains challenging.

Solar hardware development often requires long research cycles and expensive testing environments. Scaling technologies from laboratory prototypes to industrial-scale deployment can take years.

Regulatory requirements for energy infrastructure can also slow commercialization. Solar technologies must comply with grid standards, safety regulations, and large-scale engineering requirements.

Yet Saudi Arabia’s growing investment in renewable energy may gradually reduce these barriers. As solar deployment accelerates, demand for supporting technologies will likely increase.

The Future of Solar Tech in Saudi Arabia

Saudi Arabia’s solar ambitions extend far beyond generating electricity. In the coming decades, solar technologies could power smart cities, enable energy-positive buildings, support sustainable agriculture, and drive green hydrogen production.

The Kingdom’s natural solar resources, combined with strong government backing and emerging startup innovation, create the conditions for a new energy technology sector to emerge.

For a country historically defined by oil, the next chapter of its energy story may be written under the desert sun.

Noha Gad

In today’s fast-paced financial landscape, where markets shift quickly and corporate performance is continually under the microscope, shareholders expect more than just passive monitoring. This is where activist investors emerge as strategic agents who intervene to drive transformation and unlock greater value.

An activist investor is a shareholder who acquires a significant minority stake in a publicly traded company to influence its management and operations. Their goals often span influencing key decisions, replacing underperforming directors, streamlining operations to boost value, or even pushing for a full company sale. While many prioritize maximizing shareholder returns through efficiency gains, others blend in social responsibilities like ESG improvements.

These investors are typically hedge funds, wealthy individuals, or institutions like pension funds that expertly spot undervalued companies ripe for turnaround. Hedge funds pool capital for high-conviction bets, while wealthy individuals deploy personal fortunes for nimble, opportunistic plays. Institutions like pension funds bring institutional heft, leveraging long-term horizons to advocate for sustainable value unlocks in blue-chip firms overlooked by markets.

These investors rally support from fellow shareholders via public letters, media campaigns, and private dialogues. If persuasion falls short, they escalate to proxy fights, nominating rival board candidates to seize control of strategic direction. 

Passive investors vs. activist investors

Passive investors prioritize broad market exposure over individual stock picking. They buy and hold diversified portfolios and rarely intervene, content with market-driven returns over time. On the other hand, Activist investors are hands-on disruptors who concentrate capital on select undervalued targets. They demand immediate fixes: slashing overhead, spinning off divisions, hiking dividends, or ousting CEOs, often backed by forensic financial analysis and peer comparisons.

The role of activist investors

Activist investors play pivotal roles as catalysts for corporate change, wielding influence through ownership stakes to drive strategic and operational shifts. They act as change agents, acquiring minority stakes to pressure management on key issues like cost efficiencies, capital allocation, or leadership refresh. 

They initiate public campaigns, then escalate to proxy contests for board seats, almost winning the battles to install aligned directors. Their toolkit includes forensic analysis of financials to spotlight underperformance, coalition-building with institutional holders, and media amplification to sway sentiment.

Pros and cons

While activist investors catalyze corporate evolution, their influence divides opinions on balancing immediate returns with enduring growth. It offers several advantages, including:

• Rapid value unlocking: activist investors identify underperforming assets, pushing for buybacks, spin-offs, or cost cuts.
• Governance renewal: By winning board seats in most proxy fights, investors replace entrenched directors, enforcing accountability and merit-based leadership that ripples to peer firms.
• Strategic agility: Activists force pivots like divestitures or M&A, realigning operations with competitive edges and injecting fresh ideas into stagnant giants.

Disadvantages 

• Operational disruption: Proxy wars spark internal chaos, talent flight, legal fees, and diverted focus, costing firms millions during heated battles.
• Heightened volatility: Short 1–3-year horizons amplify market swings, especially in turbulent periods, eroding stability for all stakeholders. 
• Narrow vision: tactics overlook holistic strategies like ESG or patient growth, potentially devaluing sustainable models in favor of financial engineering.

Mohamed Ramzy

The information technology sector in Egypt and the broader region is experiencing an accelerating digital transformation, making cloud computing, managed services, and cybersecurity key pillars to support digital transformation in the government and private sectors. This momentum helped create significant growth opportunities for companies specializing in digital infrastructure, particularly those with deep expertise in Egypt and the broader region.

Link Datacenter (LDC) stands out as a leading provider of cloud computing, managed services, and cybersecurity solutions in the region. Therefore, Sharikat Mubasher conducted an interview with Gamal Selim, CEO of Link Datacenter, to discuss the company’s vision, its role in supporting digital transformation, and its future growth plans.

First, we would like to know more about Link Datacenter and the key milestones in its development since its establishment.

Link Datacenter was founded in 1996 as the data center arm of LINKdotNET, at a time when internet services in Egypt were still in their infancy. This enabled the company to be an integral part of the early digital infrastructure in the market. 

With the expansion of internet usage in the early 2000s, the company has witnessed significant growth driven by rising demand for hosting services and digital infrastructure, establishing itself as a technology partner to several major platforms in Egypt and the region.

The company also went through key milestones, most notably the wave of M&A in the sector, especially after Mobinil (later acquired by Orange) acquired LINKdotNET. This acquisition enabled the company to access more advanced technologies and reach a broader customer base.

In 2009, the data center and cloud computing activities were consolidated into an independent entity, marking a turning point in offering a comprehensive suite of managed services, including cloud computing, cybersecurity, and digital infrastructure, while helping customers adopt artificial intelligence (AI) technologies.

Today, the company delivers its services through its data centers, via strategic partnerships with global entities such as Microsoft, or directly within the customer’s environment, based on the needs of each sector.

What is the volume of your current customer base? And how does the company classify them according to services?

The company has a diverse customer base that spans various sectors. It serves thousands of clients, delivering ‘business essentials’ which include domain registration and email hosting.

We also provide services to around 500 large enterprises and SMEs that rely on cutting-edge services, including cloud computing, cybersecurity, and advanced hosting.

Customers are classified according to their needs: startups rely on basic services, while larger enterprises rely on integrated solutions and more sophisticated infrastructure to ensure operational efficiency and security.

What is Link Datacenter’s growth strategy over the coming years? And does the company target expanding customers base?

Link Datacenter’s strategy is centered on growing business volume overall, not just increasing the number of customers, as the genuine value lies in maximizing the benefit for existing customers from the services provided.

The company targets an annual growth rate of 30% to 40% in both revenues and operations, by expanding existing customers’ adoption of its services, developing new solutions that meet their evolving needs, and attracting new customers in promising sectors.

However, priority remains on value and operational quality for each customer, as the targeted growth can be achieved by deepening existing partnerships without relying solely on increasing customer numbers.

What are the company’s investment and expansion plans amid accelerating digital transformation and AI adoption in Egypt?

We are constantly working to enhance our portfolio to meet market needs, particularly in digital transformation and AI fields. We help our customers host and run Large Language Models (LLMs), ensuring they have maximum value based on the nature of each business.

We also have a fully specialized cybersecurity department, including the Security Operations Center as a Service (SOC as a Service), which targets mission-critical business applications. These services are supported by qualified teams and advanced technologies that keep pace with the growing demands of digital businesses. 

How do you see the Saudi market amid the accelerating digital transformation under Vision 2030? And do you plan to expand there?

The Saudi market is one of the fastest-growing markets in digital infrastructure and cloud computing, driven by Vision 2030’s objectives, which place digital transformation at the forefront of its priorities.

We see significant opportunities in the Kingdom, notably in cloud computing, managed services, and cybersecurity fields. We continuously explore expansion and partnership opportunities in the Saudi market, whether through delivering our services directly or through local partnerships, in line with the market needs and regulatory requirements.

With over 25 years of experience in the Egyptian and regional market, what sets Link Datacenter apart from other competitors?

Link Datacenter has deep experience in providing hosting and managed services across the Middle East and Africa (MEA), supported by strong strategic partnerships with global companies, such as Microsoft and others.

This, combined with our extensive customer base, which includes government organizations, large enterprises, and SMEs, and our highly experienced team, positions us among the leading professional service providers.

We always strive to deliver customized solutions that precisely meet each customer’s needs, with a strong focus on security and continuous innovation.

Translation: Noha Gad

Kholoud Hussein

A new category of startups has started dominating global tech conversations: AI-native startups. Unlike traditional companies that add artificial intelligence as a feature, these startups are built entirely around AI from day one—their core product, business model, and operations all depend on machine intelligence. They don’t use AI as an enhancement; they use it as their foundation.

As the world moves deeper into the era of automation and generative models, AI-native startups are becoming one of the fastest-growing segments in the innovation economy. Their rise mirrors the early days of cloud-native companies, which emerged a decade ago and quickly redefined software development. But AI-native startups represent an even more disruptive shift—one that touches every sector, from finance and logistics to healthcare and digital media.

This new model raises important questions: How exactly do AI-native companies operate? Are they profitable? How quickly are users adopting them? And what does their presence look like in the MENA region?

What Makes a Startup “AI-Native”?

An AI-native startup integrates artificial intelligence into the very fabric of its value proposition. AI is not a tool—it is the product’s engine.

Instead of building software that performs a set of fixed tasks, these companies build systems that learn, adapt, and improve with every interaction. Their technology stacks are centered around large language models (LLMs), predictive algorithms, or autonomous decision-making engines.

An AI-native product might write code, diagnose a disease, optimize supply chains, generate marketing campaigns, detect fraud, or run an entire business workflow without human intervention. The more data it processes, the smarter and more efficient it becomes.

This architecture allows AI-native startups to scale quickly. They don’t need large teams or massive infrastructure. Their main assets are data, algorithms, and computational power.

How These Companies Operate in the Market

AI-native startups break the traditional build-test-iterate cycle. Instead of hard-coding features, they train and refine models. Their speed of execution is measured not by product releases but by how fast the system learns.

Internally, these startups operate with leaner teams. A product that once required 50 engineers might now be developed by 6 people supported by an AI-powered development pipeline. Sales teams use AI agents. Customer service is automated. Even marketing strategies are generated and tested through intelligent systems.

Their business models tend to follow patterns such as:

• Usage-based pricing – charging customers per output, like generations or transactions
• Subscription to an intelligent assistant – offering AI copilots for specialized industries
• API-first platforms – enabling other companies to plug into their intelligence layer
• Workflow automation – charging for processes the AI takes over

As a result, AI-native startups often have higher margins, lower operational costs, and faster product cycles than traditional software companies.

User Adoption Is Growing at Unprecedented Speed

Consumers and enterprises are adopting AI-native products faster than any technology wave since smartphones. The shift is driven by three main forces:

1. AI solves real, costly problems

From logistics failures to expensive medical diagnostics, AI systems remove inefficiencies that humans alone struggle to fix.

2. AI feels intuitive to use

Natural-language interfaces have lowered the barrier. You don’t need technical skills to interact with an AI assistant—you just talk to it.

3. Productivity gains are immediate

Companies experience measurable improvements within weeks. Costs fall, processing becomes faster, and output quality improves.

According to global surveys, over 70% of enterprises worldwide plan to increase their AI spending in 2026, with a significant share specifically targeting AI-native solutions rather than traditional AI tools.

Are AI-Native Startups Profitable?

AI-native companies benefit from a cost structure that grows more efficiently as they scale. Unlike conventional SaaS platforms that face rising customer support and development costs, AI models actually perform better with volume.

However, profitability depends on two factors:

• How efficiently the startup manages compute costs

Running large models can be expensive, especially at early stages. Well-built AI-native startups avoid unnecessary model training, compress their models, or specialize in niche use cases to reduce GPU dependency.

• How strong their data advantage becomes

Data is the defensible moat. AI-native startups that secure unique, domain-specific data sets become exponentially more valuable and harder to replicate.

When these two conditions align, AI-native startups often reach profitability far earlier than traditional tech companies. Several global AI-native players hit break-even within 12–18 months—something unheard of in the SaaS world.

The Future of AI-Native Companies

The next wave of AI-native startups will not simply automate tasks—they will automate entire business functions. Finance departments, HR operations, customer support centers, and logistics planning may eventually be run by autonomous, AI-orchestrated systems with minimal human intervention.

Industry analysts expect that by 2030, over 30% of new global startups will be AI-native by default, a trend driven by the falling cost of computing and the rise of developer-friendly AI infrastructure.

These companies will not replace humans; they will redefine roles. Employees will shift from operational tasks to oversight, strategy, and creative problem-solving.

AI-Native Startups in the MENA Region

The MENA region—especially the UAE and Saudi Arabia—is emerging as one of the most promising markets for AI-native companies. Major national strategies are fueling investment, including:

• Saudi Arabia’s National Strategy for Data and AI (NSDAI)
• The UAE’s National Artificial Intelligence Strategy 2031
• Expanding sovereign wealth fund participation in AI ventures

Dozens of emerging players are already gaining traction in fintech, logistics, retail, cybersecurity, and enterprise AI.

Saudi Arabia, in particular, is positioning itself to become a global AI hub by 2030. The Kingdom’s young and tech-savvy population, paired with massive public and private investment, makes it an ideal ground for AI-native models to scale quickly. Demand for intelligent enterprise solutions in sectors such as government services, healthcare, and e-commerce is rising sharply.

Regional adoption of AI-native platforms is growing fast, especially among SMEs seeking to automate operations without hiring large teams.

Finally, AI-native startups represent a fundamental shift in how companies are built, how products evolve, and how markets operate. Their agility, efficiency, and rapid learning cycles make them uniquely positioned to reshape industries at a speed traditional companies cannot match.

In the MENA region, the coming years will likely see an explosion of AI-native innovation as governments, investors, and enterprises push toward a more automated and data-driven economy.

These companies are not simply part of the future—they are the future.

Ghada Ismail

As artificial intelligence rapidly reshapes business operations across industries, companies are increasingly exploring how AI agents, enterprise solutions, and localized language models can transform decision-making and efficiency.

In this interview, Anas Elkhatib, Co-Founder and CTO of THAKAA AI Decision Support System, discusses how AI is redefining enterprise operations, the rise of agentic AI, and why Saudi Arabia is positioning itself as a key hub for artificial intelligence innovation.

How is AI transforming your core business operations, products, or services?

AI is truly the revolution of this era. One of the clearest ways we see its impact is in how it improves efficiency and return on investment across business operations.

For example, processes such as generating reports used to take weeks. Companies would need to gather data from multiple sources, organize it, and analyze it before producing meaningful insights. With AI solutions like the ones we provide at THAKAA AI Decision Support System, this entire process can now be completed in seconds.

Instead of manually compiling information, a user can interact directly with an AI agent. You can even have a phone call or a video call with the AI. During the interaction, the AI can present dashboards, answer questions in real time, and provide insights or recommendations.

It can also extract market data and compare a company’s performance with broader industry benchmarks within seconds. In practical terms, AI allows organizations to transform decision-making cycles from weeks into seconds while saving significant time and effort.

What recent AI innovations are you most excited about?

The speed of innovation in AI is remarkable—every day, there seems to be something new. Chatbots were the earliest and simplest stage of AI interaction, but today, the most exciting development is the concept of Agentic AI.

Agentic AI involves multiple AI agents with specialized knowledge communicating with one another. It works almost like a virtual team.

For instance, in our demonstrations we present what we call a virtual CXO team. Under each executive role—such as a virtual CFO—you can have supporting functions like financial planning and analysis or cost control. These AI agents communicate with each other. If one agent receives a question it cannot answer, it can consult another agent, such as a CHRO or CFO agent, to provide the necessary information.

In this way, AI agents collaborate internally to deliver more comprehensive responses and insights.

Does that mean AI will eventually replace human workers?

AI may replace certain roles, but it is important to emphasize the concept of human-in-the-loop.

Every recommendation produced by AI should be supervised by humans. In our systems, we do not allow AI to act independently. Instead, we control issues such as hallucination through enterprise-level solutions that ensure the AI only responds using trusted data.

Rather than relying on public information, the generative AI model is trained on the organization’s own internal data. This makes the system more reliable and secure.

At the same time, it is realistic to say that some jobs may change as AI becomes more widespread. However, new opportunities will also emerge. AI can increase productivity and create new economic activity, which ultimately leads to new roles and industries.

The key for individuals is to continue developing their skills and adapting to new technologies.

Are there any collaborations or partnerships your company is building in Saudi Arabia?

Yes, and we actually consider all of our customers in Saudi Arabia to be partners.

At THAKAA AI Decision Support System, we work with several public-sector entities, including the Ministry of Agriculture, the Ministry of Finance, and the Saudi Data and AI Authority. On the commercial side, we collaborate with organizations such as Jabal Omar in Makkah and other private-sector clients.

Our approach is based on knowledge exchange. When we implement our solutions, we share our technical expertise and lessons learned from previous projects. In return, our customers share their knowledge about their own industries and operational needs.

Because of this exchange of expertise, every client becomes a strategic partner that contributes to improving the overall solution.

Which sectors in Saudi Arabia are most ready for AI transformation?

Saudi Arabia is generally a very dynamic and rapidly developing market for AI adoption. However, if we look at industries that are particularly ready for large-scale implementation, I would highlight oil and gas and banking.

Enterprise AI solutions can require significant investment. Industries with strong financial resources are therefore often the earliest adopters. Oil and gas companies and financial institutions have the capacity to absorb these costs and implement AI at scale.

As technology becomes more accessible, we expect adoption to expand across many other sectors as well.

How does THAKAA approach responsible and ethical AI deployment?

Responsible AI is a key priority for us. From the beginning, our solutions have been designed with strong privacy and security frameworks.

Our platform is built as an enterprise solution rather than a consumer AI tool. This means that protecting company data is central to the system architecture.

For example, we apply several techniques to control AI hallucination, including advanced prompting and retrieval-augmented generation methods. We also implement strict security protocols when dealing with personally identifiable information (PII).

Sensitive information—such as employee names or contact details—is encrypted and masked to ensure it cannot be leaked or misused.

Additionally, we comply with regulatory frameworks issued by authorities such as the Saudi Data and AI Authority (SDAIA) and the National Cybersecurity Authority. In some cases, the system is deployed on-premises to ensure that all sensitive data remains fully secure within the organization.

Do your AI solutions support Arabic, including Saudi dialects?

Yes, and that is one of the key differentiators of our platform.

THAKAA was developed with Arabic language capabilities from the beginning. The system can communicate naturally in Arabic, including the Saudi dialect.

For example, we use the technology in call center environments. In many cases, people speaking with the AI cannot easily distinguish whether they are interacting with a human agent or an AI system.

The interaction feels very natural, which demonstrates how far conversational AI technology has evolved.

How do you see AI shaping the broader business landscape in Saudi Arabia?

AI is already becoming a central part of Saudi Arabia’s long-term economic vision.

The Kingdom is forming strategic partnerships with global technology companies to build advanced data centers and GPU infrastructure. These investments will support the development and deployment of large language models.

If LLMs are hosted locally in Saudi Arabia, government institutions, banks, and other organizations will be able to adopt AI technologies more easily and securely.

From my perspective, the AI ecosystem can be divided into three categories. The first includes companies that focus on hardware infrastructure. The second includes companies developing large language models. The third includes companies building practical AI applications and solutions—like what we do at THAKAA.

Saudi Arabia is supporting all three layers of this ecosystem. The country is investing in infrastructure, supporting LLM development, and encouraging the growth of AI startups.

Startups are particularly important because they form the backbone of any AI economy. When governments create supportive regulations and provide resources for startups, the long-term economic impact can be significant.

Kholoud Hussein 

Saudi Arabia’s retail sector is undergoing a profound structural transformation, one that extends far beyond the shift from physical stores to online shopping. What is emerging instead is an entirely new retail ecosystem—one driven by data, intelligent automation, frictionless payments, and a generation of startups building tools that are quietly redefining the consumer journey. This evolution represents more than digital modernization. It signals a deeper economic recalibration that positions retail as a pillar of the Kingdom’s diversification strategy under Saudi Vision 2030.

As one senior official at the Ministry of Commerce recently put it: “Saudi retail is not simply expanding. It is industrializing—becoming smarter, faster, and more integrated than at any time in the Kingdom’s history.”
This framing captures the shift underway. Retail is no longer a passive consumer-driven sector. It is a strategic domain where technology, logistics, and financial innovation converge to create new economic value.

A Market Entering Its Most Transformational Phase

Saudi Arabia’s retail market is expected to surpass SAR 600 billion by 2030, making it one of the largest consumer markets in the Middle East. Several factors fuel this expansion: rapid population growth, a young demographic with high digital literacy, and rising household incomes supported by economic diversification initiatives.

But the real inflection point comes from behavioral change. Saudi consumers have embraced digital lifestyles with extraordinary speed. Data from the Communications, Space & Technology Commission shows e-commerce transactions rising by more than 32% year over year, a figure that outpaces most global markets. The Kingdom’s consumers are shifting from traditional browsing to algorithm-assisted product discovery, from in-store purchasing to omnichannel shopping, and from cash-based transactions to embedded digital payments.

This accelerating adoption matters because it forces retailers—large and small—to transition into digital enterprises. They must now manage integrated supply chains, unify inventory across channels, deploy advanced analytics, and deliver personalized experiences at scale. Many legacy retailers are not equipped to do this alone. This is where Saudi startups emerge as catalysts, introducing the tools that allow the sector to leapfrog traditional retail development stages.

Technology Is Redefining the DNA of Saudi Retail

Across the Kingdom, technology is reshaping the retail value chain end-to-end. What once depended on human coordination is increasingly managed by data-driven systems and AI-powered automation. Retailers now operate with real-time visibility across stock levels, customer preferences, supply bottlenecks, and demand patterns—all of which feed into strategic decisions that were previously based on intuition.

E-Commerce Becomes the Engine of Retail Growth

E-commerce is no longer a secondary channel for Saudi retailers—it has become the command center of the retail business model. For many enterprises, the digital storefront is now the primary point of engagement with customers. This shift is particularly visible in sectors such as fashion, beauty, electronics, and groceries, where online purchase frequency has multiplied since the pandemic.

Retailers are responding by investing heavily in backend architecture—cloud-based inventory systems, API integrations, AI recommendation engines, and automated fulfillment networks. A senior official at the Ministry of Commerce explained:
“Digital retail is no longer optional. Customers expect a high level of integration and immediate responsiveness across all channels.”

This pressure has given rise to a new generation of retail-tech startups. Companies like Zid and Salla provide ready-made e-commerce infrastructure that enables thousands of small retailers to enter the digital marketplace with minimal technical expertise. Their platforms have become essential to the Kingdom’s retail digitalization curve.

Payments Become Seamless, Instant, and Intelligent

Few changes illustrate the pace of Saudi retail transformation as clearly as the rapid rise of digital payments. According to the Saudi Central Bank, more than 70% of all retail transactions in the Kingdom are now cashless, surpassing the Vision 2030 target well ahead of schedule.

This transition is not merely about convenience. Digital payments have become a strategic enabler of retail data intelligence. Every digital transaction generates insights—frequency, average order value, preferred channels, peak purchase times—that retailers use to optimize pricing, inventory, and promotional strategies.

BNPL platforms such as Tamara have reshaped consumer behavior by offering flexibility and increasing purchasing power, especially among younger consumers. Digital wallets like STC Pay and Apple Pay have made mobile payments ubiquitous, even in traditional stores. The rollout of open banking is set to deepen this transformation, enabling retailers to integrate financial services directly into the shopping experience.

Logistics Becomes a Competitive Weapon

Saudi Arabia’s geographic scale and the rise of same-day delivery expectations have made logistics technology one of the most critical components of retail competitiveness. The growth of e-commerce has driven retailers to rethink fulfillment from the ground up, investing in automation, hyperlocal warehouses, and multi-node distribution networks.

Local startups have led this evolution. Platforms such as Mrsool and Saee have introduced flexible delivery models that connect thousands of drivers with retailers, expanding delivery capacity on demand. Meanwhile, specialized logistics startups have developed AI-powered route optimization, predictive inventory planning, and real-time tracking systems that reduce operational inefficiencies.

Logistics is no longer a back-office function. It is core to the customer experience—and retail brands are realizing that speed, transparency, and reliability are as important as the product itself.

Physical Stores Are Becoming Data-Driven

While digital commerce surges, physical retail is far from fading. Instead, stores across Riyadh, Jeddah, and Dammam are being reinvented as experiential and data-rich environments. Smart shelves, RFID tagging, in-store analytics, and self-checkout kiosks are increasingly common.

Retailers now analyze heat maps of customer movement, track dwell time at product displays, and personalize in-store promotions through digital signage. This convergence of digital and physical is creating what industry analysts call “phygital retail”—a blended environment where the store becomes as measurable and adaptive as a website.

As one official from the retail modernization program summarized:
“Retail in Saudi Arabia is no longer about aisles and shelves. It is about data, sensors, and experience.”

Startups Are the Hidden Architects Behind the Sector’s Transformation

Saudi startups are not simply contributing to retail digitalization—they are shaping the operating model of the sector. Their role can be understood through three core contributions: digital infrastructure, vertical innovation, and omnichannel integration.

Digital Infrastructure for the Entire Retail Economy

Companies like Foodics have built foundational systems—such as cloud POS—that allow thousands of cafes, restaurants, and retailers to digitize operations. Their tools manage everything from sales and inventory to staff scheduling and customer engagement.

These platforms are particularly crucial for SMEs, which make up more than 1 million retail businesses in Saudi Arabia. By giving these companies access to enterprise-grade tools, startups are lifting the technological baseline of the entire sector.

New Retail Verticals Driven by Startups

Startups are also introducing entirely new retail categories—online pharmacies, direct-to-consumer beauty brands, pet marketplaces, and subscription-based grocery models. These categories were either underserved or nonexistent before the digital economy took hold.

Their growth demonstrates how technology unlocks consumer segments that traditional retailers overlooked.

Enabling True Omnichannel Retail

Perhaps the most significant impact of startups is their role in building omnichannel retail—integrating online and offline experiences into a single ecosystem.

Startups now provide unified dashboards that merge inventory, payments, loyalty programs, customer data, and marketing campaigns across all channels. This ensures that retailers can deliver consistent service whether the consumer is shopping online, on mobile, or in-store.

Government Support as a Strategic Accelerator

Saudi Arabia’s retail transformation is heavily supported by national policy. Under Vision 2030, the government views retail modernization as an economic multiplier that stimulates SME growth, boosts local content, and expands the digital economy.

Programs from Monsha’at offer financing, grants, and business development services to retail SMEs. The Ministry of Commerce enforces digital invoicing, consumer protection regulations, and fair competition laws that strengthen the sector's integrity. Meanwhile, the government’s aggressive push toward cashless payments has dramatically accelerated digital commerce adoption.

A senior policymaker recently noted:
“Retail is the biggest employer in the Kingdom. Modernizing this sector means modernizing the entire economy.”

Saudi Retail Over the Next Five Years

Looking ahead, the Saudi retail sector is set to become one of the most technologically advanced consumer markets in the region. Several forces will define this trajectory:

AI will become embedded in every part of retail—from demand forecasting and customer service automation to product recommendation models and dynamic pricing engines. Retail media networks will emerge, turning retailers into advertising platforms that monetize their digital touchpoints. Physical stores will increasingly integrate Internet-of-Things sensors, computer vision, and predictive analytics, transforming them into intelligent spaces. Logistics will enter a new phase of automation with robotics and drone-supported delivery. Lastly, sustainability will become integral, with energy-efficient stores, optimized cooling, and smart waste management becoming sector norms.

To conclude, Saudi Arabia’s retail transformation is not an incremental shift—it is a structural rewrite of how the sector operates. Technology has moved from being a support function to being the organizing principle of retail strategy. Startups sit at the center of this shift, providing the tools, platforms, and innovations that allow the sector to evolve faster than traditional players could manage alone.

The Kingdom’s consumer economy is being reborn—more digital, more data-driven, more efficient, and more aligned with global trends. As Saudi Arabia pushes toward its 2030 goals, the retail sector is emerging as one of the clearest examples of how technology and entrepreneurship can reshape an entire economic landscape.

Ghada Ismail

Imagine running a growing business with strong sales and promising prospects, only to realize you don’t have enough cash to pay suppliers or salaries next month. This situation, where money becomes suddenly tight despite an otherwise healthy business, is known as a ‘Liquidity Crunch’.

For entrepreneurs, investors, and managers, understanding liquidity crunches is essential. Even companies that appear healthy on the surface can suddenly find themselves struggling if cash flow dries up.

Understanding Liquidity

Before diving into what a liquidity crunch is, it helps to understand the idea of liquidity itself.

Liquidity simply refers to how easily a business can access cash to cover its short-term expenses. These expenses include things like paying employees, settling supplier invoices, covering rent, or servicing debt.

Cash is the most liquid asset a company can have. But businesses may also hold other assets that can be quickly turned into cash, such as short-term investments or marketable securities.

A company might look profitable on paper but still face liquidity problems. This often happens when money is tied up in inventory, unpaid customer invoices, or long-term investments that cannot be quickly converted into cash.

So, What Is a Liquidity Crunch?

A liquidity crunch occurs when a company—or even an entire financial system—suddenly finds itself short on cash or easily accessible funds.

In simple terms, it means a business doesn’t have enough readily available money to cover its immediate obligations.

There are many reasons this situation can arise. Customers may delay payments. Costs might rise unexpectedly. Access to credit could tighten. Investors might pull back on funding. Sometimes broader economic shocks or market downturns can also trigger a liquidity squeeze.

When this happens, companies may be forced to make difficult decisions. They might cut costs, sell assets, raise emergency funding, or delay certain payments just to keep operations running.

Why Startups Are Especially Vulnerable

Startups are particularly exposed to liquidity crunches. Unlike mature companies with stable revenue streams, startups often rely heavily on external funding from venture capital investors. If a planned funding round gets delayed or investors suddenly become cautious, a startup can quickly find itself struggling to pay salaries or cover operational costs.

This became especially visible during periods when global venture capital slowed down. Many startups were forced to cut spending, freeze hiring, or lay off employees simply to extend their financial runway.

For startups, managing liquidity is often a matter of survival.

Liquidity Crunches in the Wider Economy

Liquidity crunches don’t just affect individual businesses. Entire financial systems can experience them as well.

A well-known example occurred during the Global Financial Crisis of 2007–2009. As uncertainty spread across financial markets, banks became increasingly reluctant to lend to one another in the interbank market due to fears about counterparty solvency. This loss of trust caused institutions to hoard cash, dramatically slowing the flow of credit and creating severe liquidity shortages. In response, central banks such as the Federal Reserve and the European Central Bank intervened with emergency lending programs and large-scale liquidity injections to stabilize markets and restore confidence.

Early Warning Signs

Liquidity crunches rarely appear overnight. Businesses often see warning signs beforehand.

One of the clearest signals is shrinking cash reserves. Another is a growing gap between the money coming in and the money going out.

Other red flags may include increasing reliance on short-term loans, delays in paying suppliers, or difficulty securing new financing.

Companies that closely monitor their cash flow are usually better positioned to spot these problems early.

How Companies Protect Themselves

While no business is completely immune to liquidity problems, there are ways to reduce the risk.

Maintaining healthy cash reserves is one of the most effective safeguards. Businesses can also diversify their funding sources, negotiate flexible payment terms with suppliers, and regularly review their cash flow forecasts.

Having access to credit lines or emergency financing can also provide a critical safety net during periods when cash becomes tight.

To Wrap Things Up…

A liquidity crunch may sound like a technical financial term, but in reality, it can become a defining moment for a company.

Even businesses with strong growth and solid revenue can run into trouble if they cannot access cash when they need it.

For entrepreneurs and executives, the lesson is simple: profitability is important, but cash flow is even more critical. Companies that carefully manage their liquidity are far better prepared to navigate economic shocks and periods of uncertainty.

Mohamed Ramzy

The Middle East is undergoing a rapid digital transformation that has positioned artificial intelligence and data science as key drivers across the public and private sectors.

From enhancing decision-making and combating financial crimes to boosting efficiency in banking, insurance, healthcare, and digital government, AI solutions empower organizations to analyze big data and convert it into actionable, measurable decisions.

This dynamic created significant growth opportunities for specialized companies, especially those targeting regional markets such as Egypt, Saudi Arabia, and the UAE. In this context, DataScience Middle East emerged as a key player, delivering integrated AI and data science solutions.

Sharikat Mubasher held an interview with Sherif Elkhouly, Founder and CEO of DataScience Middle East, to discuss the company’s vision, its role in supporting digital transformation in Egypt and Saudi Arabia, and its ambitions to become one of the region's top AI solutions providers.

First, we would like to learn more about DataScience, and what distinguishes its services in AI and data science? 

DataScience was founded in 2014 with a headquarters in Dubai, and then expanded its footprint by opening a branch in Egypt in 2015 and another in Saudi Arabia in 2023.

The company delivers advanced solutions in AI, enterprise data management, cloud analytics, automation, and business intelligence. Additionally, it serves public and private enterprises, with a focus on banking and finance, alongside telecommunications, insurance, healthcare, and digital government.

This leading position made DataScience the trusted partner for over 100 large companies in the region, powering more than 200 successful projects across 12 countries, with a core emphasis on the Middle East and North Africa (MENA).

Egypt and Saudi Arabia are among the region's most vital markets. How do you assess digital transformation in both countries, and what are the common and different factors between the two markets?

Both markets are experiencing significant digital transformation, supported by different government entities in each country. In Egypt, for instance, there is tremendous momentum toward digital transformation, fueled by national mega projects such as the New Administrative Capital, which incorporates vast cloud spaces to accelerate innovation and transformation.

The private sector plays a pivotal role in Egypt, and strategic partnerships with global companies such as e&, Alibaba, and Huawei strengthen the country’s vision for transformation.

On the other hand, Saudi Arabia follows a clear strategy bolstered by huge investments in data centers and cloud environments, alongside unparalleled government support. We believe that the main common factor is the strong emphasis on AI and digital infrastructure. 

How do you see startups’ role in adopting AI, especially in Egypt?

Egypt is a pioneer in supporting small and medium-sized enterprises (SMEs) through the Social Fund for Development and the Micro, Small, and Medium Enterprises Development Agency (MSMEDA). Today, AI is used to maximize the impact of these programs, alongside a significant surge in entrepreneurship.

Recently, several conferences and events have been launched, bringing together thousands of startups and highlighting the immense growth in digital transformation across its various fields and objectives. In Egypt, nearly everything is now done through applications.

With the growing number of startups and entrepreneurial projects in Egypt and the flourishing of fintech and digital government services, I expect Egypt to become a hub for unicorn companies. We may see five to ten unicorns in the next five years, particularly in fintech and AI.

What is your vision for regional expansion, and what role does Saudi Arabia play in your strategic plan?

Our biggest ambition is to become a central hub for AI solutions in the Middle East, ranking among the top 10 companies specialized in this field.

We have a clear strategy in place through 2030 to expand our customer base, broaden our presence across the Arab world, and build large engineering teams by leveraging Egypt's strong competencies.

In Saudi Arabia, the company is keen to explore new opportunities given the government’s substantial support for digital transformation. We aim to implement our strategy there by attracting and training local Saudi talent. Once our 2030 strategy is completed, we will have further options for expansion and growth, including entering into partnerships with national or global entities within the Kingdom.

Could we witness the development of local Arab AI technologies as alternatives to global solutions?

Technologies are no longer confined to any single entity. The adoption of open-source models enabled the development of cutting-edge solutions and software anywhere in the world, including the Arab region.

Anyone, anywhere, can now develop technology and technical codes independently. Egyptian and Arab applications are gaining significant traction, and we are able to build tailored local solutions from the ground up. Relying on open-source technology enables us to innovate without the dominance of any country, which strengthens the region's potential to develop its own technology.

How do you address ethical and regulatory challenges related to deploying AI solutions, particularly in banking and government sectors?

At DataScience, we adhere to the highest security standards and strictly comply with local regulations in every country where we operate. We deliver flexible solutions that seamlessly adapt to government and regulatory frameworks, with a strong emphasis on data protection and transparency.

We continuously emphasize that the responsible use of AI is a cornerstone of our strategy, especially in critical areas such as financial crime prevention and risk management.

How do you see the impact of AI on Egyptian and Saudi economies in the coming years? 

AI will become a key driver of growth, enhancing efficiency, creating new job opportunities, and fostering innovation. In Egypt, given the momentum in startups and fintech, we expect tremendous growth. As for Saudi Arabia, with its massive investments, it is set to become a regional model. 

The region is witnessing accelerated growth in AI technologies, strengthening its potential to build a regional ecosystem capable of competing on a global scale.

DataScience is committed to supporting this transformation through advanced technology solutions that meet the needs of the Egyptian and Saudi markets.

Translation: Noha Gad

Kholoud Hussein 

Saudi Arabia is racing to position itself as a global hub for data centers—an ambition driven by its accelerating digital transformation, expanding cloud adoption, and the rapid deployment of artificial intelligence. As demand for data processing intensifies, a new challenge is emerging at the core of this growth: ensuring the stability and sustainability of the energy supply that powers these massive facilities.

In a country with some of the world’s highest solar irradiation levels, policymakers and industry leaders are shifting focus from generating solar power to storing it at scale. The consensus is growing stronger: the long-term future of Saudi Arabia’s data centers will depend on industrial-strength solar energy storage. Without it, the Kingdom’s data ambitions could outpace its ability to power them.

This feature explores why storage is becoming indispensable, how large-scale projects and national entities are responding, and the emerging role of startups in building a sustainable digital ecosystem.

Data Centers as the Backbone of Saudi Arabia’s Digital Economy

Data centers are central to the Kingdom’s digital transformation. According to the Ministry of Communications and Information Technology, the ICT sector contributed more than $40 billion to the Saudi economy in 2023, fueled by cloud computing, digital payments, e-government services, and widespread integration of AI technologies.

Global cloud providers have taken notice. Companies such as Oracle Cloud and Google Cloud are expanding their operations within the Kingdom, a move that reflects confidence in Saudi Arabia as a regional hub for digital infrastructure. Officials estimate that data center capacity will need to exceed 1,300 megawatts by 2030, nearly triple today’s levels.

As one senior government official put it, “We cannot build a digital economy without building energy-efficient, sustainable digital infrastructure. Data centers are at the heart of this evolution.” Achieving this vision, however, requires confronting the enormous energy demands of these facilities.

Why Solar Power Is Emerging as a Strategic Energy Source

Data centers consume electricity around the clock, making them among the most energy-intensive components of national infrastructure. Saudi Arabia’s push toward renewable energy—particularly solar—offers a natural solution. With a national target of generating 50% of electricity from renewables by 2030, solar power has become a pillar of the country’s energy transition.

Saudi Arabia enjoys some of the world’s most favorable solar conditions, with strong and consistent sunlight, a vast supply of land suitable for solar installations, and rapidly declining technology costs. Combined with government-backed initiatives and financing frameworks, the Kingdom has built a strong foundation for renewable energy deployment.

Even so, solar generation alone is not enough. While production surges during the day, data centers operate continuously. The mismatch between supply and demand creates a reliability gap—one that only large-scale, long-duration energy storage systems can bridge. As a Ministry of Energy official recently noted, “Renewables will power our digital future, but storage will stabilize it. Without storage, solar cannot meet the reliability standards required by data center operators.”

Energy Storage: The Missing Link in Saudi Arabia’s Digital Ambitions

Saudi Arabia’s solar infrastructure is expanding rapidly, but the industrial-scale battery systems required to deliver stable, uninterrupted power are still in early development. Energy storage plays a critical stabilizing role, ensuring that intermittent solar generation translates into reliable, continuous electricity—precisely what data centers require.

Storage systems ensure power reliability by covering hours when sunlight is unavailable or production dips unexpectedly, preventing costly interruptions. They also support grid stability as the energy mix becomes increasingly renewable, smoothing fluctuations and reducing stress on transmission infrastructure. Furthermore, stored solar energy lowers long-term operational costs by reducing reliance on peak-hour grid electricity and insulating data centers from market volatility. Sustainability targets are also easier to meet when facilities can rely on stored solar rather than fossil-based backup systems, a key requirement for global cloud operators.

Mega-Projects Setting the Standard for Renewable-Powered Data Centers

Saudi Arabia’s giga-projects—particularly NEOM and The Red Sea Project—are emerging as models for integrating solar power and energy storage at a scale capable of supporting data-intensive operations.

At NEOM, planners are building a fully renewable electricity network supported by advanced energy storage solutions. This design ensures that data centers within the mega-city operate around the clock using clean energy. A NEOM spokesperson explained that “our data centers will be powered 100% by renewable energy, supported by world-class storage solutions. This is the model we believe will scale across the Kingdom.”

The Red Sea Project offers another example. Although its focus is hospitality, it operates entirely on off-grid solar power supported by one of the world’s largest battery storage installations. This demonstrates that large-scale, mission-critical operations—whether resorts or data centers—can rely on stored solar energy without compromise.

Electricity Demand Is Surging: A Look at the Data

The Kingdom’s data consumption is rising sharply. Internet traffic is projected to triple by 2030 as cloud adoption grows, IoT applications multiply, and AI-driven solutions expand across public and private sectors. Globally, AI workloads are expected to increase data center electricity consumption by 400–600% over the next decade, and Saudi Arabia’s trajectory mirrors this trend.

As cloud providers establish local regions and as the country develops national AI models, electricity demand tied to data centers is strengthening. This makes renewable-powered data infrastructure not only a sustainability commitment but also a strategic economic requirement.

The Economics Behind Solar Power and Stored Energy

Energy already represents a substantial share of data center operating expenses—between 30% and 50% in most global markets. With Saudi Arabia vying to attract hyperscalers and global cloud operators, competitive and predictable electricity pricing is essential.

Solar power offers one of the world’s lowest-cost electricity sources, but energy storage significantly amplifies its economic value. Storage allows operators to arbitrage electricity consumption away from expensive peak hours, balance loads more efficiently, and reduce dependence on fossil-based generation. By enabling predictable, low-cost renewable power, storage strengthens Saudi Arabia’s appeal as a global data center destination.

A Riyadh-based financial analyst noted, “The economics of data centers will increasingly revolve around energy economics. Operators who tap into stored solar energy will have a strategic edge over those relying on traditional power.”

Government Policy and Long-Term Commitment

Saudi Arabia’s regulatory framework strongly supports renewable adoption and energy storage deployment. The Kingdom has rolled out ambitious solar projects through REPDO, encouraged private-sector participation in renewable generation, introduced green taxonomy and ESG guidelines, and established incentives that directly support battery storage implementation.

At the same time, cloud and ICT regulation has matured significantly, creating the level of certainty global operators need. Officials at the Ministry of Communications and Information Technology have been clear: data centers must prepare for a future where long-duration energy storage becomes a foundational requirement, not an optional enhancement.

Startups: An Emerging Force in Energy Optimization

Behind the large-scale infrastructure projects, Saudi startups are quietly playing a transformative role in energy innovation. A new wave of energy-tech companies is developing solutions that enhance the performance of solar systems, optimize storage, and reduce power consumption within data centers.

Saudi startups are building AI-powered battery management software, predictive energy consumption models, advanced cooling solutions tailored to the region’s climate, and platforms that optimize solar generation and storage capacity. These companies offer localized solutions that address the specific challenges of operating in extreme heat, high-demand cycles, and fluctuating load patterns—conditions common across Saudi data centers.

Venture capital interest in climate tech and energy innovation is rising, and startups in this sector are expected to attract increasing levels of investment over the next five years. As one technology advisor in Riyadh explained, “The next big wave of Saudi startups will be in energy optimization and storage. Data centers are a natural customer base for these companies.”

Addressing the Cooling Challenge

Another major energy challenge facing Saudi data centers is cooling. Cooling can account for nearly 40% of total energy consumption, and the Kingdom’s climate exacerbates the pressure on traditional cooling technologies. The growing need for efficient thermal management—especially as AI workloads increase—makes renewable-powered cooling systems more important than ever.

Innovators across Saudi Arabia are working on liquid cooling systems, immersion cooling, and AI-based thermal management tools. Others are designing solar-driven chiller technologies that leverage stored energy to maintain stable temperatures even during peak heat periods. These advancements will become essential as the size and complexity of data centers grow.

What the Next Five Years Will Look Like

Saudi Arabia’s data center sector is on the cusp of a dramatic transformation. Over the next five years, energy storage is set to become a standard component of data center infrastructure rather than a premium feature. New facilities will likely be co-developed with dedicated solar farms and integrated battery systems.

Meanwhile, startups offering energy-efficiency tools will gain prominence as operators seek localized, cost-effective technologies. Government policy will continue encouraging renewable-first designs, reinforcing investor confidence and accelerating foreign cloud investments. As AI adoption accelerates nationwide, demand for clean, reliable power will increase further, cementing the need for large-scale storage solutions.

Finally, Saudi Arabia’s aspiration to become a global data center hub is clear and achievable. But that ambition depends heavily on one factor: the Kingdom’s ability to build and scale solar energy storage systems that can support the continuous, power-hungry operations of modern data centers.

Solar energy is abundant. Technology demand is rising. The future hinges on the infrastructure that unites the two.

In the words of a senior policymaker, “Our data economy will grow as fast as our renewable infrastructure allows. Storage is the bridge between ambition and reality.”

Ghada Ismail

As artificial intelligence becomes a core layer of enterprise technology, attention is increasingly shifting to the infrastructure that powers it. Much of today’s AI innovation depends not just on algorithms, but on flexible platforms that can run applications seamlessly across data centers, cloud environments, and the edge. This is where companies like Red Hat play a pivotal role in building open-source, hybrid cloud technologies that provide a consistent foundation for modern IT.

With a portfolio that spans cloud platforms, automation tools, and application development solutions, Red Hat has positioned itself as a key enabler of enterprise transformation, helping organizations scale complex digital operations while maintaining flexibility and avoiding vendor lock-in.

In this interview, Mohamed Youssef, Head of Marketing for Central and Eastern Europe, the Middle East, and Africa at Red Hat, discusses how open-source innovation is accelerating AI adoption, the company’s growing focus on Saudi Arabia, and the sectors driving the Kingdom’s next wave of digital transformation.

To start, how is artificial intelligence transforming your company’s products and the solutions you deliver to customers?
Red Hat is a leading open-source software organization, and we provide multiple solutions that support infrastructure software for our customers.

When it comes to AI, the focus is on helping customers transform their core operations and become more efficient. One of the key solutions we provide is Red Hat OpenShift, which allows organizations to operate across multiple clouds with AI-enabled capabilities.

Through OpenShift, customers can build applications and AI solutions on top of our platform in a way that allows them to scale and operate much more efficiently. For example, they can manage workloads across multiple cloud environments, reduce errors, and create more flexible development environments before going live. In short, we help them operate faster and more efficiently.

What recent developments in AI are you most excited about?
We are working on several things, but one of the most important areas is helping customers build applications that are more stable and capable of scaling up depending on their needs.

With AI, organizations can scale their applications much faster and reach the market more quickly. This also helps them save resources and optimize costs. Ultimately, AI enables companies to accelerate development cycles while becoming more efficient in how they operate.

Many organizations today are investing in chatbots and conversational AI. How does Red Hat approach this space?
We do not compete directly in the chatbot space. What we provide instead is the foundation—the software infrastructure that chatbot solutions can run on.

In other words, developers and companies can build chatbot solutions on top of our platforms. We provide the underlying infrastructure that enables those applications to function effectively.

Saudi Arabia has become a key technology hub in the region. How important is the Saudi market for Red Hat?
Saudi Arabia is a strategic market for us. We have been operating in the Kingdom for many years, and we continue to increase our investments and resources there and across the wider region.

We work with most of the distributors and partners in Saudi Arabia and already have partnership agreements in place with them. It is definitely a core market for us, and we are investing heavily there. In fact, we moved to a larger office in the financial district in Riyadh two years ago in order to support our growing operations there.

In your view, which sectors in Saudi Arabia are currently the most prepared to benefit from AI transformation?
If we look at the Kingdom’s broader national agenda—particularly Saudi Vision 2030—it is clear that Saudi Arabia is accelerating investments in artificial intelligence across a wide range of sectors.

Rather than being concentrated in a single industry, AI adoption is happening at scale across the economy. The public sector and government entities are leading this shift, with significant investments in AI-driven initiatives, including projects linked to the Public Investment Fund’s HUMAIN.

The banking sector is also highly active, with financial institutions advancing AI-powered solutions through strategic partnerships with us. In the energy sector, Saudi Aramco is not only driving large-scale AI deployments but also stands as one of our key clients in the Saudi market.

We are also seeing strong momentum in aviation, particularly with Riyadh Air, which is among our clients, alongside growing adoption across entertainment, sports, and telecommunications. In telecom, stc is another example of a key client we work with to scale AI capabilities.

Overall, AI investment in Saudi Arabia is broad-based, with multiple sectors advancing in parallel—and notably, many of the leading players across these industries are part of our client ecosystem in the Kingdom.

Looking ahead, how do you expect AI to reshape the broader business landscape in Saudi Arabia?

AI is already transforming the way we work today, and the pace of development is extremely fast globally.

We are seeing this momentum in Saudi Arabia and across other markets in the Middle East. In Saudi Arabia specifically, there is a strong ambition to be ahead of the curve by building companies that are Saudi-developed and Saudi-originated.

There is significant investment supporting this effort. As a result, we will likely see rapid changes in the working environment and major improvements in efficiency as AI continues to transform how organizations operate and deliver services.

Kholoud Hussein 

Saudi Arabia’s venture capital landscape has undergone a profound transformation over the past five years. Once considered an emerging ecosystem, the Kingdom is now one of the most active startup investment markets in the Middle East and North Africa. Backed by structural reforms, sovereign capital, and an expanding pool of entrepreneurs, venture capital in Saudi Arabia is no longer defined by experimentation—it is increasingly shaped by strategic direction.

As the country advances its economic diversification agenda under Saudi Vision 2030, the question facing investors is not whether capital will continue to flow, but where it will be deployed next. The answer lies at the intersection of national priorities, technological transformation, and market demand.

A Market Moving from Volume to Strategy

Saudi Arabia recorded over $1.3 billion in venture capital funding in 2023, maintaining its position as the largest VC market in the MENA region. While deal volume remains strong, a noticeable shift is underway. Investors are becoming more selective, moving away from broad-based funding toward sector-focused, thesis-driven investments.

This transition reflects a maturing ecosystem. Early-stage enthusiasm—once concentrated in e-commerce and general fintech—is now giving way to more specialized sectors aligned with national transformation goals. Government-backed entities such as Public Investment Fund and initiatives like Fintech Saudi have played a central role in shaping this direction.

According to a senior official at the Ministry of Investment, “The next phase of venture capital in Saudi Arabia is not about increasing the number of startups—it is about building companies that can scale globally while solving real economic challenges.”

Artificial Intelligence: The Center of Gravity

Artificial intelligence is rapidly becoming the focal point of venture capital allocation in Saudi Arabia. The Kingdom’s ambition to become a global AI hub is reflected in both policy and funding priorities.

Estimates from Saudi Data and Artificial Intelligence Authority suggest AI could contribute $135 billion to the national economy by 2030, making it one of the most economically significant sectors in the country’s future.

Investment Momentum & Startup Activity

Saudi-based startups such as Mozn have already demonstrated the commercial viability of AI-driven solutions, particularly in fintech and risk analytics. Similarly, Quant Data & Analytics has expanded its footprint by providing advanced data solutions to both public and private sectors.

Over the next five years, venture capital is expected to increasingly target:

• Enterprise AI solutions
• Government technology (GovTech) platforms
• Arabic-language AI models
• Predictive analytics for industrial sectors

A senior executive at SDAIA noted: “Artificial intelligence will underpin every major sector in the Kingdom—from healthcare to logistics—creating a multi-layered investment opportunity.”

Fintech: From Expansion to Specialization

Fintech has been one of the most heavily funded sectors in Saudi Arabia, with the number of fintech companies exceeding 230 firms by 2024, compared to fewer than 50 just a few years earlier.

However, the sector is entering a new phase. Instead of horizontal growth, where multiple startups compete in payments and wallets, investors are now focusing on vertical specialization.

Next-Phase Investment Areas

• Wealth management platforms
• SME financing solutions
• Embedded finance
• Regulatory technology (RegTech)

Startups like Tamara and Tabby have already scaled regionally, demonstrating that Saudi-born fintech companies can achieve cross-border growth.

Officials at the Saudi Central Bank have emphasized that “the Kingdom is entering a phase where fintech innovation must go beyond payments and contribute to financial inclusion and economic productivity.”

Climate Tech and Energy Transition: A Rising Investment Theme

Saudi Arabia’s commitment to achieving net-zero emissions by 2060 is reshaping investment priorities. The energy transition is not only a policy objective but also a growing venture capital theme.

The Kingdom plans to invest tens of billions of dollars in renewable energy, including large-scale solar and wind projects, as well as green hydrogen production.

Opportunities for Startups

• Energy efficiency technologies
• Carbon tracking and ESG platforms
• Smart grid solutions
• Battery storage innovation

Projects under NEOM are expected to serve as testing grounds for many of these technologies, creating demand for startups that can provide scalable, tech-driven solutions.

An official from the Ministry of Energy stated: “The private sector, particularly startups, will play a crucial role in developing the technologies needed for the energy transition.”

Logistics and Mobility: Building a Regional Hub

Saudi Arabia’s ambition to become a global logistics hub is driving investment into mobility and supply chain technologies. The National Transport and Logistics Strategy aims to position the Kingdom as a central node connecting Asia, Europe, and Africa.

Investment Focus Areas

• Last-mile delivery optimization
• Autonomous mobility
• Fleet management platforms
• Smart warehousing systems

Startups such as Jeeny highlight the potential of mobility platforms to scale within the region, while new entrants are focusing on logistics efficiency and automation.

Over the next five years, venture capital is expected to increasingly back startups that can integrate AI into logistics operations, improving efficiency and reducing costs.

Digital Health: Scaling With Government Backing

Healthcare is another sector attracting increasing venture capital attention. With healthcare spending exceeding 189 billion SAR, digital health solutions are becoming a national priority.

Emerging Investment Areas

• Telemedicine platforms
• AI diagnostics
• Health data management systems
• Personalized medicine

The Ministry of Health has emphasized that “digital transformation in healthcare is essential to improving access, efficiency, and outcomes.”

The opportunity lies not just in building standalone applications, but in integrating digital health solutions into the broader healthcare infrastructure.

Tourism and Experience Economy: Technology Meets Culture

Saudi Arabia’s tourism sector is expanding rapidly, with the Kingdom surpassing 100 million visitors in 2023. As tourism becomes a key pillar of the economy, venture capital is increasingly directed toward startups that enhance the visitor experience.

Key Areas of Investment

• Travel-tech platforms
• Experience marketplaces
• AR/VR tourism solutions
• Event technology

Developments led by Red Sea Global and Qiddiya Investment Company are creating new demand for innovative digital solutions.

The Role of Sovereign and Institutional Capital

A defining feature of Saudi Arabia’s venture capital ecosystem is the role of sovereign and institutional investors. The Public Investment Fund continues to act as a catalyst, both directly and through its subsidiaries and partnerships.

In addition, government-backed funds such as Jada Fund of Funds have helped deepen the VC ecosystem by supporting local fund managers.

This institutional backing provides stability and long-term vision, allowing venture capital to align with national development goals rather than short-term market cycles.

Five-Year Outlook: Where Capital Will Flow Next

Looking ahead to the next five years, several trends are likely to define venture capital allocation in Saudi Arabia:

1. Sector Concentration

Capital will increasingly concentrate in fewer, high-impact sectors such as AI, climate tech, and digital health.

2. Larger Ticket Sizes

As startups mature, average deal sizes will increase, particularly in Series B and beyond.

3. Regional Expansion

Saudi startups will expand more aggressively into GCC and international markets, supported by stronger balance sheets.

4. Exit Maturity

The ecosystem will see more acquisitions and IPOs, signaling a maturing investment cycle.

5. Rise of Deep Tech

Investment will shift toward technically complex startups with defensible intellectual property.

Finally, Saudi Arabia’s venture capital ecosystem is no longer defined by early-stage experimentation. It is entering a phase of strategic deployment, where capital is directed toward sectors that align with long-term economic transformation.

For investors, the opportunity lies in identifying startups that operate at the intersection of technology and national priorities. For founders, success will depend on building solutions that address real market needs while maintaining the scalability required to compete globally.

As one senior policymaker put it: “The future of venture capital in Saudi Arabia is not just about funding innovation—it is about shaping the industries that will define the Kingdom’s economic future.”

In that sense, the next wave of venture capital in Saudi Arabia will not simply follow trends—it will help create them.

Noha Gad

The emergence of social media has transformed global connectivity and information sharing, subsequently driving a major shift in consumer behavior and marketing tactics. In this new landscape, audiences value authenticity above all else when deciding what to buy. This has created fertile ground for influencer marketing, which enables brands to bypass traditional advertising and build trust by collaborating with content creators who have already established loyal, engaged followers.

In Saudi Arabia, the number of people having social media accounts reached 35.33 million as of 2024. A report released by the social media management platform Sprinklr Social indicated that platforms such as X, TikTok, and Snapchat dominate daily life in the Kingdom, with 94.03% of internet users actively engaging with them, which has shaped opinions, trends, and purchasing decisions.

With nearly 95.3% of Saudi Arabia’s population using at least one social media platform, the marketing and advertising market size in the Kingdom reached $3.02 billion in 2025 and is estimated to grow from $3.19 billion in 2026 to reach $4.13 billion by 2031, at a compound annual growth rate (CAGR) of 5.3% between 2026 and 2031, according to recent figures released by Modor Intelligence.

The rise of influencer marketing in Saudi Arabia

In a rapidly changing world, consumer behavior and marketing strategies have evolved as consumers increasingly prioritize authenticity in purchase decisions. This growing demand for authentic and relatable content has facilitated influencer marketing. Around 70% of consumers in Saudi Arabia place more trust in influencers’ recommendations than in traditional advertising. According to Statista, ad spending in Saudi Arabia's influencer advertising market is projected to reach $95.69 million by 2025, with a CAGR of 9.82%, resulting in a market volume of $139.20 million by 2029. These figures underscore the growth of influencer marketing in Saudi Arabia, as brands implement influencers as the primary marketing channel to promote their products and services.

Short-form video content is also increasingly popular on social media platforms in the Kingdom, engaging audiences with concise storytelling, building emotional connections, and enhancing brand recall. Ad spending on short-form videos is anticipated to reach $127.2 million by 2028. 

Regulating influencers economy

Saudi Arabia has implemented a comprehensive, multi-faceted strategy to regulate its influencer economy, moving to formalize the sector, enforce cultural standards, and protect consumer rights. These efforts are led primarily by the General Authority of Media Regulation and are designed to bring transparency and accountability to digital content creation.

In 2022, the authority introduced the Mawthooq license to regulate the status of individuals who provide advertising content on social media platforms. This initiative mandates influencers and creators to register for a license to provide advertisements on social media platforms.

To obtain the Mawthooq license, influencers must comply with the terms and controls set by the General Authority of Media Regulation. This includes adherence to content-related controls, advertisements, classifications (including age ratings), and instructions issued by the authority. These controls apply to citizens, residents, and foreign investors who advertise through social media platforms about a brand, product, service, event, or commercial activity offered or located within the Kingdom. 

Beyond formal licensing, the Kingdom introduced detailed content guidelines that determine what influencers can and cannot post, aiming to align online content with the Kingdom's cultural and religious values. These rules include adhering to modest closing guidelines, protecting privacy and dignity, and ensuring social harmony.

Additionally, the Personal Data Protection Law (PDPL) governs how personal data is collected, processed, and stored. This means that influencers and businesses must obtain explicit consent from individuals before collecting their data through methods like cookies or direct marketing activities. They are also obligated to inform users about the purpose of data collection and their rights regarding it.

The rise of specialized infrastructure players

While social media platforms provide the stage, specialized companies like KLIQ are building the critical back-end infrastructure. KLIQ is Saudi Arabia’s go-to platform connecting brands with the right content creators smartly and seamlessly. This AI-powered platform tackles all common industry frustrations, providing creators with guaranteed payments, clear timelines, and vetted brand opportunities that match their niche. It also solves the problems of delayed payments and difficulty finding quality collaborations. For brands, it offers an intelligent dashboard for data-driven creator discovery and real-time campaign tracking.

Beyond the companies directly involved in campaigns, major international and local advertising agencies are increasingly relying on influencer marketing as a core strategy for their clients. This integration into mainstream marketing budgets provides a steady stream of professional opportunities for creators and validates influencer marketing as a serious and effective channel.

The competitive landscape of the influencers' economy in Saudi Arabia is expected to continue booming, driven by two key trends: AI integration and localized content demand. Companies are betting big on AI to improve creator-brand matching and measure campaign performance, transforming the industry from guesswork to data-driven decisions. AI tools like generative video editors and personalized analytics will dominate, enabling creators to produce hyper-localized Arabic content at scale. Additionally, the growing appetite for localized content reflects a clear preference among audiences for material that resonates with their own experiences, culture, and language, moving away from a one-size-fits-all, globally-focused model.

In summary, Saudi Arabia's creator economy has rapidly evolved from a niche trend into a powerhouse of digital innovation and commerce, aligning perfectly with Vision 2030's ambitious goals. With 35.33 million users in 2024, representing 94% of internet users actively engaging on social media platforms, influencers have become the trusted voice for the majority of consumers, excelling traditional advertising.

Robust regulations coupled with the Personal Data Protection Law (PDPL) have provided the guardrails needed for sustainable expansion. By mandating licensing for commercial promotions, enforcing cultural and modesty standards, and ensuring data privacy through explicit consent, these measures transform influencers from casual posters into professional micro-entrepreneurs, fostering accountability and consumer trust.

Looking ahead, AI-driven tools and the growing demand for culturally attuned content position this ecosystem for explosive growth, reaching $139 million by 2029. Investors, startups, and brands should seize this opportunity to collaborate in a regulated, data-smart landscape where authenticity fuels commerce and innovation thrives.