Kholoud Hussein

Saudi Arabia’s startup ecosystem is undergoing a seismic shift—and at the center of this transformation are family offices, once risk-averse entities that are now actively funding innovation. In a region traditionally dominated by oil wealth and conservative asset allocations, family-owned conglomerates are beginning to see the long-term strategic value of investing in startups. As the Kingdom aggressively pursues economic diversification under Vision 2030, family offices are stepping up with capital, networks, and strategic support—playing a growing role in nurturing local innovation and technology.

In 2023 alone, startups in Saudi Arabia raised over $1.38 billion across 144 deals, according to MAGNiTT. While government-backed initiatives like the Public Investment Fund (PIF) and institutions such as the Saudi Venture Capital Company (SVC) have played a critical role, an increasing share of early- and growth-stage funding is now coming from wealthy family offices with deep roots in the Kingdom’s industrial and trading history.

These families—who once dominated sectors like construction, hospitality, and retail—are now investing in fintech, healthtech, e-commerce, and clean energy startups. Their participation is reshaping how capital flows in the region, breaking away from reliance on state-backed entities and fostering a more dynamic, private sector–led innovation economy.

As Abdulrahman Tarabzouni, CEO of STV (Saudi Technology Ventures), put it: “We’re seeing a historic shift. Family offices that once waited for proven opportunities are now joining in early—building the ecosystem from within rather than watching from the sidelines.”

A New Investment Paradigm

Historically, Saudi family offices have favored stable asset classes such as real estate and fixed income. However, a recent report indicates that 58% of MENA family groups are now active in venture capital, with 50% engaging in early-stage investments like angel and seed funding, and another 50% participating in growth-stage opportunities. 

This transition is largely attributed to the younger generation of family office leaders who are more tech-savvy and open to innovation. Paula Tavangar, Chief Investment Officer at Injaz Capital, notes, “Younger family members are more tech-savvy and comfortable investing in emerging technologies.” 

Strategic and Sector-Specific Investments

The Saudi family office model is rapidly evolving. For decades, these offices primarily focused on wealth preservation, allocating capital into predictable, lower-risk investments such as real estate, public equities, and fixed-income instruments. But in recent years, especially post-pandemic, a confluence of generational change, macroeconomic pressure, and government incentives has pushed many of them toward venture capital.

A 2024 report by Strategy& Middle East (PwC) found that 58% of family offices across the Gulf are now active in startup investments, with nearly half of those involved in early-stage funding. In Saudi Arabia specifically, these investments are no longer seen as speculative side projects—they are becoming central to long-term strategic planning.

Part of the shift is generational. Younger members of Saudi business dynasties, often educated abroad and exposed to global tech trends, are influencing investment priorities. These new decision-makers are more comfortable with higher-risk, higher-reward asset classes. They’re also keen to support local entrepreneurship and position their families as drivers of economic transformation.

“We’re no longer just buying land or stock portfolios,” said Lina AlMaeena, a board member of one of Saudi’s prominent family businesses and a vocal advocate for tech innovation. “We’re building the next generation of Saudi industry—from fintech to agritech.”

Another factor is alignment with Vision 2030, the Kingdom’s national transformation plan. Family offices are increasingly directing capital into sectors prioritized by the government, such as health, renewable energy, education, logistics, and tourism—leveraging both their capital and their business networks to help these sectors grow. Some are even partnering with government accelerators and sovereign funds to co-invest in Saudi-born startups.

One standout example is Rassanah Capital, a family office that has co-invested in logistics startup Barq EV, a last-mile electric delivery vehicle company, and Chefz, a food delivery app acquired by Jahez. Their investments aren’t just financial—they bring operational support, market access, and even board-level guidance.

Furthermore, the investment structures themselves are changing. While traditional venture capital often relies on fund vehicles with defined horizons and return targets, Saudi family offices prefer more flexible, direct investments. This gives them control, agility, and often better alignment with founders over the long term.

“These aren’t VC tourists,” said Paula Tavangar, Chief Investment Officer at Injaz Capital. “They’re building conviction in specific sectors and doubling down. They care less about ten-year IRRs and more about legacy, influence, and national impact.”

Strategic and Sector-Specific Investments: Aligning with Vision 2030

Saudi family offices are increasingly channeling investments into sectors that align with the Kingdom's Vision 2030 objectives, focusing on areas such as fintech, artificial intelligence (AI), enterprise software, and small-to-medium enterprises (SMEs). This strategic alignment not only supports national economic diversification goals but also leverages the unique strengths and interests of these family-run entities. 

In the fintech sector, Saudi Arabia has emerged as a regional leader, capturing 58% of all fintech venture capital in the Middle East and North Africa in 2023. The Kingdom's robust national strategy aims to establish 525 fintech companies by 2030, positioning it as a hub for financial innovation. Tushar Singhvi, Deputy CEO of Crescent Enterprises, emphasized this trajectory: “Saudi Arabia’s fintech sector is set for sustained growth, driven by a clear national strategy to have 525 fintech companies by 2030.” 

Family offices are also making significant inroads into the AI sector. The Public Investment Fund (PIF) announced plans to create a $40 billion fund focused on AI, signaling a commitment to becoming a global leader in this domain. Yasir Al-Rumayyan, Governor of PIF, stated: “Our goal is to position Saudi Arabia at the forefront of technological innovation. By investing in AI and other emerging technologies, we are not only diversifying our economy but also creating opportunities for future generations.” 

Enterprise software is another area attracting attention. As Saudi companies scale up and strive for global competitiveness, there is a growing demand for enterprise systems to support digital transformation efforts. Khaled Talhouni, Managing Partner at Nuwa Capital, observed: “We are seeing more and more SaaS (Software as a Service) companies emerge from the region and the Kingdom.” 

The SME sector has also experienced impressive growth, largely driven by government support and Vision 2030 initiatives. As of the fourth quarter of 2023, the number of SMEs in the country reached 1.31 million, reflecting a 3% quarter-on-quarter increase. Ibrahim AbdelRahim, Managing Partner at Moonbase Capital, highlighted this trend: “This marks a staggering 179% increase in SME numbers over the last eight years. While most of these SMEs are micro-sized, they are well-positioned for further growth.” 

Family offices are recognizing the potential of these sectors, not only for financial returns but also for contributing to the Kingdom's broader economic transformation.

Direct Investments and Co-Investment Models

Unlike traditional venture capital funds, many Saudi family offices prefer direct investments or co-investment models. Achal Aroura, Head of Multi-Family Office EMEA at Klay Capital Limited, explains, “These investments are not seen as traditional venture capital investments, but rather strategic investments made by these families and their existing businesses.” 

This approach allows family offices to maintain control and align investments closely with their business operations. It also facilitates quicker decision-making and the ability to provide more than just capital, such as strategic guidance and industry connections.

Impact on the Startup Ecosystem

The influx of family office capital is having a profound impact on Saudi Arabia’s startup ecosystem. Startups benefit from not only the financial investment but also the strategic support and industry expertise that family offices bring. This support is crucial for startups aiming to scale and navigate the complexities of their respective industries.

Moreover, the involvement of family offices is encouraging a more robust and diversified venture capital environment in the Kingdom. Their participation is attracting international investors and signaling confidence in Saudi Arabia’s commitment to fostering innovation and entrepreneurship.

Challenges and Considerations

Despite the positive trends, challenges remain. Family offices often lack the infrastructure to efficiently evaluate and structure deals, which can hinder their ability to capitalize on investment opportunities. Additionally, the preference for control and long-term investment horizons may conflict with the typical venture capital focus on short-term returns and exits.

To address these challenges, some family offices are collaborating with specialized venture capital firms and incubators to gain access to curated deal flows and institutional expertise. This hybrid approach allows them to balance control with the benefits of professional venture capital management.

Future Outlook: Sustaining Momentum and Navigating Challenges

The trajectory of family office investments in Saudi Arabia's startup ecosystem is poised for continued growth, underpinned by supportive government policies, a burgeoning entrepreneurial culture, and the strategic realignment of family-owned capital.

Looking ahead, several factors are expected to influence this landscape:

1. Enhanced Regulatory Frameworks: The Saudi Capital Market Authority (CMA) is focusing on developing the sukuk and debt instruments market by creating regulatory frameworks for green, social, and sustainable debt instruments. This aligns with the global push toward environmental, social, and governance criteria, potentially attracting more family offices interested in sustainable investments. 
2. Increased Institutional Collaboration: Family offices are anticipated to deepen collaborations with institutional investors, venture capital firms, and government-backed entities. Such partnerships can provide access to curated deal flows, shared due diligence resources, and co-investment opportunities, enhancing the overall investment ecosystem.
3. Focus on Impact Investing: There is a growing interest among family offices in impact investing, aligning financial returns with social and environmental outcomes. This trend is expected to gain momentum, particularly in sectors like education, healthcare, and renewable energy, which are central to Vision 2030.
4. Talent Development and Succession Planning: As younger generations take the helm of family offices, there is an increased emphasis on professionalizing operations, implementing robust governance structures, and investing in talent development to ensure sustainable growth and effective succession planning.

In conclusion, the rise of family office capital in Saudi Arabia's startup ecosystem marks a transformative shift in the Kingdom's investment landscape. By embracing strategic, sector-focused investments and adopting flexible investment models, family offices are playing a pivotal role in shaping the future of innovation and entrepreneurship in Saudi Arabia.

Noha Gad

The startup world is witnessing a quiet revolution. While venture capital and bootstrapping dominate headlines, a lesser-known model, search funds, has been delivering outsized results for founders and investors alike. 

Unlike traditional venture capital, search funds empower founders to acquire and scale existing companies with investor-backed capital and mentorship, significantly de-risking the entrepreneurial journey. But why are search funds gaining traction, and how can they transform your startup’s future? 

What are search funds?

Search funds are an innovative investment model where aspiring entrepreneurs (called "searchers") raise capital from investors to systematically acquire and operate an existing small-to-midsize business. 

The process comprises two phases: first, the searcher raises an initial "search fund" (typically ranging between $500,000 to $1 million) to cover 12–24 months of operational costs while identifying and evaluating potential acquisition targets. They analyze hundreds of businesses, leveraging investor networks and industry expertise to find undervalued companies with strong growth potential.

Once a searcher identifies and acquires a target business, the operational transformation phase begins. In this phase, the searcher steps in as CEO, using additional investor capital and mentorship to scale the business.

This stage plays a critical role in de-risking entrepreneurship as it helps searchers avoid the 90% failure rate of early-stage startups by building on a proven foundation. Additionally, it increases the investor's return on investment (ROI) by 4.5 times.

Why do search funds matter?

Unlike traditional venture capital, search funds focus on proven businesses, offering a unique blend of entrepreneurial opportunity and reduced risk. Investors, often high-net-worth individuals or institutional players, provide not just capital but hands-on guidance, forming a partnership with the searcher. 

This symbiotic approach has made search funds particularly attractive for founders seeking a "middle path", avoiding the grind of starting from scratch while sidestepping the equity dilution common in VC-backed startups.

Why are search funds critical for startups?

Search funds offer various benefits for startups, such as:

• Access to capital without extreme dilution. Search funds enable searchers to raise acquisition capital without giving up ownership upfront.
• Built-in traction and market validation. Search funds target already revenue-generating companies with existing customers, eliminating guesswork.
• Accelerated growth with expert backing. Unlike passive VC investors, search fund backers often provide industry-specific mentorship.
• Risk mitigation in volatile markets. Search funds usually target recession-proof sectors, such as B2B services, healthcare, and IT.

How to leverage search funds?

Search funds provide a unique opportunity for ambitious operators to acquire and scale established businesses while mitigating startup risks. Entrepreneurs should focus on securing investors with industry expertise, targeting stable companies in recession-resistant sectors, and executing post-acquisition growth through operational improvements and strategic add-ons. 

On the other hand, investors must focus on sector expertise and aligning incentives to capitalize on search funds’ unique advantages: lower risk than traditional VC, higher involvement than PE, and typical returns upon exit.

Finally, search funds represent a transformative model that provides entrepreneurs a proven path to leadership without the volatility of starting from scratch. Meanwhile, these funds offer investors a hands-on, high-reward asset class grounded in real businesses. By merging operational expertise with strategic capital, this model transforms undervalued companies into growth engines while producing exceptional returns. 

Kholoud Hussein 

In recent years, Saudi Arabia has emerged as a burgeoning hub for technology and innovation, aligning with its Vision 2030 initiative to diversify the economy beyond oil dependency. Central to this transformation is the proliferation of startup expos and tech forums, which have become instrumental in fostering entrepreneurship, attracting foreign investment, and stimulating economic growth. Events such as LEAP, the Saudi Startup Expo, and the Smart Riyadh Forum have not only showcased the Kingdom's commitment to technological advancement but have also played a pivotal role in shaping its economic landscape.

The Emergence of Tech Forums in Saudi Arabia

The Kingdom's strategic focus on technology and innovation has led to the establishment of numerous platforms aimed at nurturing startups and facilitating knowledge exchange. These forums serve as convergence points for entrepreneurs, investors, policymakers, and industry leaders, fostering an ecosystem conducive to innovation and economic diversification.

LEAP: A Catalyst for Technological Advancement

Launched in 2022, LEAP has rapidly ascended to become one of the Middle East's premier technology conferences. The inaugural event attracted over 100,000 attendees and more than 400 speakers, underscoring its significance in the global tech arena. LEAP serves as a platform for unveiling cutting-edge technologies, forging strategic partnerships, and announcing substantial investments. For instance, during LEAP 2025, the Saudi government announced investments exceeding $6.4 billion in the digital economy, emphasizing sectors such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT).

Abdullah Alswaha, Minister of Communications and Information Technology, highlighted the government's ambition: "Our ambition is to increase the contribution of the technology sector to Saudi Arabia’s GDP from a modest 1% to an ambitious 5% by 2030."

Saudi Startup Expo: Nurturing Entrepreneurial Spirit

The Saudi Startup Expo stands as a testament to the Kingdom's dedication to fostering entrepreneurship. The 2024 edition is set to host over 200 startups, 100 investors, and 50 speakers, providing a comprehensive platform for networking, knowledge sharing, and investment opportunities. In 2023, Saudi Arabia's venture capital market witnessed a 33% year-over-year increase, reaching $1.38 billion, the highest in the MENA region.

Smart Riyadh Forum: Pioneering Urban Innovation

The Smart Riyadh Forum 2024 aims to transform Riyadh into one of the world's most intelligent cities. This forum will bring together global leaders, tech innovators, and investors to discuss and implement cutting-edge technologies in urban planning, sustainability, and digital infrastructure. Such initiatives are integral to the Kingdom's broader objective of hosting the Riyadh Expo 2030, showcasing its advancements on a global stage.

Economic Implications of Tech Forums

The proliferation of tech forums and startup expos has had a profound impact on Saudi Arabia's economy, contributing to GDP growth, job creation, and increased foreign direct investment (FDI).

Boosting GDP and Diversifying the Economy

The Communications, Space and Technology Commission (CST) reported that the IT and emerging technology market in Saudi Arabia reached SAR 81 billion in 2022 and is projected to grow to SAR 103 billion by 2025. This growth is indicative of the successful implementation of initiatives aimed at diversifying the economy and reducing reliance on oil revenues.

Attracting Foreign Investment

Saudi Arabia's commitment to technological advancement has attracted significant foreign investment. In 2022, the Kingdom secured $2.5 billion in FDI within the tech sector, with expectations for continued growth. Strategic partnerships with global tech giants, such as Microsoft's investment in AI research and Amazon Web Services' expansion of cloud computing capabilities, underscore the Kingdom's appeal as a tech investment destination.

Job Creation and Skill Development

The expansion of the tech sector has led to the creation of numerous job opportunities. Projections suggest that over 1 million new tech jobs could emerge within the next decade. Furthermore, initiatives like LEAP have facilitated the upskilling of more than 20,000 professionals in various tech domains over the past two years, ensuring that the local workforce is equipped to meet future demands.

Government Support and Regulatory Reforms

The Saudi government's proactive approach has been instrumental in fostering a conducive environment for startups and technological innovation.

Monsha’at and the Kafalah Program

Monsha’at, the General Authority for Small and Medium Enterprises, has been pivotal in supporting startups through financing programs like the Kafalah Program, which addresses financing gaps for SMEs. Additionally, events such as the Biban Forum connect entrepreneurs with investors and global stakeholders, fostering collaboration and growth.

Regulatory Advancements

Regulatory reforms, including the introduction of the Saudi Companies Law in January 2023, have simplified business operations and encouraged foreign investment. Platforms like Meras streamline business registration, significantly reducing barriers for startups.

Future Outlook: Paving the Way for a Tech-Driven Economy

Saudi Arabia’s long-term vision for its technology and startup ecosystem goes far beyond hosting events—it is about building an integrated, globally competitive knowledge economy. The momentum generated by startup expos and tech forums is expected to accelerate, with a multi-faceted approach focused on expanding participation, deepening specialization, and creating global linkages.

1. Deepening Specialization Across Sectors

Future tech forums are expected to evolve from broad innovation showcases into more specialized, sector-focused summits. The Ministry of Communications and Information Technology (MCIT) has indicated upcoming support for niche verticals such as:

• Healthtech and Biotech expos aligned with Saudi Arabia’s healthcare transformation goals.
• Greentech and Clean Energy forums supporting Saudi Green Initiative and renewable investments.
• Agritech conferences enhancing food security via AI, drones, and precision farming.

This shift toward thematic events aims to generate targeted discussions, attract sector-specific investors, and accelerate pilot projects within giga-project zones like NEOM, where testbeds for future tech are already underway.

2. Internationalization of Saudi Tech Platforms

Saudi Arabia aims to make flagship forums such as LEAP and Biban as globally recognized as CES in Las Vegas or Web Summit in Lisbon. With strategic participation from over 180 countries at LEAP 2024, the Kingdom is actively creating a soft power channel through tech diplomacy.

In a statement at LEAP 2024, Minister Abdullah Alswaha noted: “We’re not just importing innovation—we’re building an exportable model for emerging economies looking to leapfrog into the digital era.”

In 2025, LEAP is set to expand to other cities such as Jeddah and Dammam to decentralize innovation exposure and engage wider entrepreneurial bases.

3. Giga-Projects as Anchors for Startups

As giga-projects like NEOM, Qiddiya, and The Red Sea Global move into operational phases, they are expected to act as living laboratories for startups to deploy scalable solutions. NEOM, in particular, has committed to allocating $500 million in startup partnerships through its investment arm NEOM Investment Fund (NIF), targeting sectors like mobility, robotics, and digital infrastructure.

This opens unprecedented opportunities for Saudi-based startups and international ventures to co-develop solutions within these futuristic cities. Future forums are anticipated to include demo zones and venture accelerators tied directly to giga-projects.

4. More Integration Between Academia, Industry, and Startups

To fuel a sustainable pipeline of innovation, forums are increasingly integrating Saudi universities and research institutions. Initiatives such as the National Research and Development Strategy (NRDS) seek to link forums with academic outcomes, fostering spin-offs from R&D labs into viable tech businesses.

The King Abdullah University of Science and Technology (KAUST) and King Saud University are already key participants in national events, aiming to incubate research-born ventures with commercialization potential.

5. Investment Ecosystem Maturity

With the establishment of the Saudi Venture Capital Company (SVC) and increased capital deployment by PIF-backed funds, Saudi Arabia is no longer just attracting attention—it is backing ideas with robust funding. As of Q1 2024:

• Saudi VCs deployed over SAR 5.2 billion into early- and growth-stage startups.
• Over 22% of funding during LEAP 2024 went into AI-focused ventures.

Future expos are expected to feature integrated investor match-making platforms, private deal rooms, and sovereign-backed co-investment opportunities to create long-term commitment from both domestic and global capital providers.

6. Digital Regulations and Startup-Friendly Policies

To ensure forums result in real traction, Saudi regulators have aligned with the pace of innovation. The Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) continue to launch sandbox regulations for fintech startups. The government has also committed to streamlining licensing procedures, data residency compliance, and IP protection for participating firms.

According to the Ministry of Investment, new incentives for startups exhibiting at national expos will include:

• One-year tax credits for pilot projects under Vision 2030 aligned categories.
• Fast-track residency and visa services for founders and investors.
• Grants and subsidies for participation in global competitions and exhibitions.

7. Expanding Inclusion Beyond Riyadh

Future forums will likely emphasize geographic inclusiveness. The government’s strategy includes hosting regional innovation forums in AlUla, Madinah, and Eastern Province to foster talent and startup activity in non-capital regions. This aligns with Vision 2030’s goal of balanced national development.

“Innovation must touch every city, not just Riyadh. We’re building tech corridors in regions traditionally outside the spotlight,” said Saleh Al Jasser, Minister of Transport and Logistics Services.

8. Measuring Economic Impact

To sustain government and private sector confidence in these initiatives, Saudi Arabia is also investing in robust performance tracking. Future expos will integrate KPI-based dashboards measuring:

• Startup survival rates post-expo.
• Number of partnerships or MoUs signed.
• Jobs and economic output generated per event cycle.

This level of transparency aims to transform expos into measurable economic levers, not just marketing platforms.

In conclusion, the rise of startup expos and tech forums in Saudi Arabia reflects a broader commitment to innovation, economic diversification, and global competitiveness. Through strategic investments, regulatory reforms, and a focus on human capital development, the Kingdom is fostering an environment where technology and entrepreneurship can thrive. As these initiatives continue to evolve, they will undoubtedly play a crucial role in shaping the future of Saudi Arabia's economy and its position on the global stage.

Kholoud Hussein 

In the dynamic world of startups, securing investment is often seen as a significant milestone. However, the journey doesn't end there. Investors may, at times, decide to withdraw their support, leaving entrepreneurs grappling with the aftermath. Understanding the reasons behind such decisions is crucial for founders aiming to build resilient businesses.

1. Market Volatility and Economic Uncertainty

Investors are acutely sensitive to market dynamics. Economic downturns, geopolitical tensions, or shifts in industry trends can prompt investors to reassess their portfolios. For instance, recent market instabilities have led to a cautious approach among venture capitalists, with some pulling back from previously committed investments to mitigate potential losses.

2. Liquidity Constraints

An investor's financial situation can change, affecting their ability to fulfill funding commitments. Unexpected personal financial needs or broader economic pressures can lead to liquidity issues, compelling investors to withdraw from investments, even if the startup's performance remains strong.

3. Misalignment of Vision and Expectations

A harmonious relationship between founders and investors is built on shared goals and mutual understanding. If discrepancies arise regarding the company's direction, growth strategies, or operational decisions, investors may choose to exit. Such misalignments can stem from differing risk appetites, timelines for returns, or strategic priorities.

4. Concerns Over Management and Team Dynamics

Investors invest in people as much as in ideas. A strong, cohesive, and competent team inspires confidence. Conversely, signs of internal conflict, high turnover, or leadership challenges can raise red flags. Investors may perceive such issues as threats to the startup's stability and long-term success, prompting them to reconsider their involvement.

5. Lack of Traction and Performance Metrics

Startups are expected to demonstrate progress through key performance indicators (KPIs) such as user growth, revenue milestones, or market penetration. Failure to meet agreed-upon benchmarks or a consistent decline in performance can erode investor confidence. Without tangible evidence of growth and potential for scalability, investors might opt to withdraw their support.

6. Overvaluation and Financial Discrepancies

An inflated valuation can be a double-edged sword. While it might attract initial attention, it sets high expectations for performance and returns. If a startup fails to justify its valuation through corresponding growth and profitability, investors may question the financial viability and choose to exit.

7. Absence of a Clear Exit Strategy

Investors seek investment returns, typically through exits like acquisitions or public offerings. A startup lacking a well-defined exit plan can appear directionless, making it challenging for investors to envision a profitable conclusion to their involvement. This uncertainty can lead to withdrawal.

8. Regulatory and Legal Challenges

Navigating the regulatory landscape is critical for startups, especially those in highly regulated industries. Legal disputes, compliance issues, or potential regulatory changes can introduce risks that deter investors. The prospect of legal entanglements or fines can cause investors to pull out.

9. Negative Publicity and Reputation Risks

In the age of information, public perception matters. Scandals, negative press, or social media backlash can tarnish a startup's image, affecting customer trust and, by extension, investor confidence. To protect their own reputations, investors may distance themselves from startups embroiled in controversy.

10. Personal Circumstances and Strategic Reprioritization

Sometimes, the reasons are personal. Investors might face changes in their personal lives, health issues, or shifts in their investment strategies that lead them to withdraw from certain ventures. While not reflective of the startup's performance, these factors can still impact funding continuity.

Finally, investor withdrawal can be a daunting experience for any startup. However, by understanding the multifaceted reasons behind such decisions, entrepreneurs can proactively address potential concerns, foster transparent communication, and build more resilient relationships with their investors. Anticipating challenges and aligning expectations are key steps toward securing sustained investment and achieving long-term success.

Ghada Ismail

Imagine a world where your investments aren’t tied to traditional stocks, bonds, or even real estate. Instead, you can invest in digital assets that exist entirely in the virtual realm: cryptocurrencies, tokenized real estate, and even virtual art. Sounds futuristic? For many around the globe, it’s already a reality.

As the world embraces this digital revolution, Saudi Arabia is taking bold strides to shape its own future in the space. With Vision 2030 guiding the country’s transformation, digital assets have emerged as a promising, albeit risky, investment avenue.

Are you curious about how this new frontier in finance could reshape investment strategies in Saudi Arabia? Whether you're an investor eager to explore new opportunities or someone still hesitant about diving into the digital realm, understanding the potential of digital assets is more important than ever. Let’s take a closer look at how these emerging technologies are poised to change the investment landscape in the Kingdom, the challenges that come with them, and the opportunities that could define the future of Saudi investment.

So, are digital assets a passing trend, or will they become a cornerstone of the Kingdom's economic future? Let’s find out in this article.

Understanding Digital Assets

Digital assets are essentially assets that exist in digital form and are secured by blockchain technology. They can take various forms, including cryptocurrencies like Bitcoin and Ethereum, stablecoins, security tokens, and NFTs.

• Cryptocurrencies: These are decentralized digital currencies that operate independently of central banks. Bitcoin and Ethereum are the most well-known examples.
• Stablecoins: These are digital assets pegged to a stable asset, such as the US dollar, and are designed to reduce volatility in the market.
• Security Tokens: These are digital representations of ownership in traditional assets, like real estate or stocks.
• NFTs (Non-Fungible Tokens): Unique digital items that can represent anything from digital art to virtual land.

The underlying technology for all of these assets is blockchain, a distributed ledger technology that ensures transparency and security in transactions.

While these digital assets offer exciting potential for investors, it's important to distinguish between those that are speculative (e.g., cryptocurrencies) and those with utility value (e.g., tokenized assets). Understanding this distinction is crucial for building a diversified portfolio.

Investor Interest and Market Activity: The Rising Demand

In Saudi Arabia, digital assets are attracting growing interest, especially among younger generations. Millennials and Gen Z, who are more tech-savvy and open to new financial products, are increasingly turning to digital assets as part of their investment strategies. Recent surveys have indicated a surge in crypto wallet ownership and usage in the region, as more people look for opportunities beyond traditional stocks and bonds.

The rise of local exchanges such as Rain and BitOasis, which cater to the MENA region, is making it easier for Saudi investors to access digital assets securely. These platforms allow users to buy, sell, and trade cryptocurrencies and other digital assets, helping to foster a more mature digital economy in the Kingdom.

Global platforms like Binance and Coinbase are also popular among Saudi investors, contributing to a regional growth in crypto asset ownership. As the digital asset market matures, Saudi Arabia’s burgeoning fintech ecosystem is expected to play a critical role in shaping the future of digital investment.

Opportunities for Saudi Investors

Portfolio Diversification: Digital assets offer Saudi investors a unique way to diversify their portfolios, particularly during periods of high inflation. Cryptocurrencies, in particular, have been considered a hedge against inflation by some investors due to their limited supply and decentralized nature.

Exposure to Emerging Technologies: With the growth of Web3, Decentralized Finance (DeFi), and the metaverse, digital assets present an opportunity to invest in emerging technologies that could define the future of the internet and finance. These sectors, still in their infancy, hold enormous potential for growth, and early investors could reap significant rewards.

Tokenization of Real-World Assets: Digital assets enable the tokenization of traditional assets such as real estate, art, and commodities. In Saudi Arabia, where real estate remains a popular investment, tokenization could open up new avenues for fractional ownership, making it easier for smaller investors to participate in high-value markets.

Risks and Challenges: A Complex Digital Landscape

Investing in digital assets can be enticing, but it requires an understanding of the unique challenges they present. Here are some critical risk factors investors should consider before diving into this relatively new space:

Lack of Standardization and Fragmented Ecosystem: Unlike traditional financial markets that are governed by established standards, the digital asset ecosystem remains fragmented. The industry has no universal framework for measuring value, asset quality, or risk exposure. Digital currencies, NFTs, and tokenized assets all operate in different spaces, and as such, their regulatory treatment, market acceptance, and liquidity can vary dramatically. This lack of standardization can make it difficult for investors to assess the viability of digital assets as part of a balanced portfolio.

Legal and Jurisdictional Barriers: The decentralized nature of digital assets presents unique legal challenges. In Saudi Arabia, digital assets are still largely unregulated, and the legal frameworks for things like token ownership, cross-border asset transfers, and enforcement of contracts are not fully established. As more global investors enter the market, cross-jurisdictional issues will arise. For example, how do investors protect their holdings when they are subject to laws in multiple countries that may not recognize digital asset ownership? Legal uncertainty makes navigating the global digital asset market a complex task for both local and international investors.

Technological Risks and Dependence on Infrastructure: The rapid pace of technological development in blockchain and digital asset platforms brings both opportunity and risk. Many digital asset exchanges and platforms are still relatively new, and some lack the robustness and scalability of traditional financial institutions. System outages, security vulnerabilities, and the risk of technological failure are tangible threats that could undermine investor confidence. 

Market Manipulation and Lack of Transparency: Due to the decentralized nature of digital assets, there are fewer checks and balances to prevent market manipulation. While the financial markets have regulatory bodies that oversee trading practices, the crypto market has seen numerous instances of "whale" investors—those with large holdings—using their power to influence prices. Additionally, many platforms lack full transparency about their operations, trading volumes, or algorithms, which can lead to mistrust and uncertainty. This lack of oversight increases the risk of market volatility driven by manipulated or opaque practices.

Cultural Resistance and Lack of Education: Despite the growing interest in digital assets, there is still a significant gap in education and understanding, particularly in regions like Saudi Arabia. The lack of widespread literacy around blockchain, digital currencies, and decentralized finance (DeFi) presents a barrier to adoption. Furthermore, there is cultural resistance to new technologies in many parts of the world, where traditional investments like real estate, gold, and equities dominate. This resistance could slow the pace at which digital assets become mainstream investment vehicles in the Kingdom.

Long-Term Viability and Asset Longevity: With the digital asset market evolving rapidly, there are concerns about which assets will stand the test of time. While some cryptocurrencies have gained considerable traction, others may struggle with adoption or technological obsolescence. Similarly, tokens tied to NFTs or certain digital commodities might lose their appeal or utility over time. Investors face the challenge of predicting which digital assets will maintain value or even exist a few years down the road, given the pace of technological and market shifts.

Vision 2030 and Digital Assets: A Strategic Fit for Saudi Arabia’s Future

Digital assets align well with Saudi Arabia’s broader Vision 2030 agenda, which seeks to diversify the Kingdom’s economy and reduce its reliance on oil. Blockchain technology, in particular, has the potential to revolutionize key sectors like logistics, real estate, and green energy. The Saudi government’s ongoing commitment to fostering innovation in fintech could allow digital assets to play a pivotal role in driving forward the Kingdom's economic diversification efforts.

Tokenization could also disrupt industries traditionally dominated by large players, enabling smaller businesses to access capital through asset-backed tokens, thereby democratizing investment opportunities. In this sense, the rise of digital assets might empower a new wave of Saudi entrepreneurs and investors.

Expert Voices: Insights on the Future of Digital Assets in Saudi Arabia

In an interview with Arab News, Ola Doudin, CEO and co-founder of UAE-based digital asset exchange BitOasis, emphasized the region’s accelerating regulatory progress. “From a regulatory perspective, we have reached escape velocity,” she said, noting the growing momentum among policymakers. She added that there's now a clear competitive dynamic pushing regulators across the region to introduce robust frameworks for Virtual Asset Service Providers (VASPs), which is crucial for enabling long-term sector growth. 

Doudin also underscored the critical role emerging markets play in shaping the future of digital assets. “Nineteen out of twenty top crypto-markets (by weighted crypto activity) are in the emerging or developing economies,” she explained. “So, it’s not surprising that when a territory announces it has introduced a regulatory framework — as we are seeing across the UAE right now — there is naturally a surge of interest and investment.”

Conclusion: A Frontier Full of Potential

As Saudi Arabia continues its push for economic diversification, digital assets stand out as an exciting, though risky, investment frontier. While they present remarkable opportunities for growth and portfolio diversification, they also come with considerable risks. The Kingdom’s cautious regulatory approach ensures that innovation can take place without sacrificing financial stability, but investors must tread carefully.

For Saudi investors, understanding the complexities of digital assets—and staying informed on regulatory developments—is key to navigating this emerging space. With the right education and strategic planning, digital assets could become a powerful tool for wealth-building in the years to come.

Tamer El Bahay, serial entrepreneur and Managing Partner- Moonbase 

Egyptians have long been active investors in international real estate markets, particularly those earning in foreign currencies like exporters. My family, involved in food exports, has followed this path for decades, investing in properties across Europe and the U.S. to preserve wealth and enable global mobility. 

However, as the investment landscape evolves, I’ve come to realize that while real estate remains valuable, it’s not the only option. Search funds - an innovative and increasingly popular asset class - are a compelling alternative for Egyptian investors seeking to diversify their portfolios.

What Are Search Funds?

Search funds are private equity vehicles created by entrepreneurs to acquire and manage small-to-medium-sized businesses. Simply put: investors provide capital for the search phase, where entrepreneurs identify businesses - typically valued between $5 million and $30 million - in stable industries like healthcare, education, and light manufacturing. After acquisition, these businesses generate active cash flow and experience growth under the entrepreneur's management. 

Search funds have delivered impressive returns, with an average internal rate of return (IRR) of 35.1% and a return on investment (ROI) of 4.5x as of 2024.

Why Search Funds Are a Smart Alternative for Egyptian Investors

For Egyptian investors accustomed to foreign real estate markets, search funds offer several advantages:

1. Comparable Investment Size, Higher Returns

A typical search fund investment is around $500,000, similar to the amount needed for a Golden Visa property in Europe or a high-end apartment in Dubai. However, search funds have the potential for significantly higher returns. While real estate provides stable, but modest, appreciation and rental income, search funds historically offer an average IRR of 35% and a 4.5x ROI, according to Stanford University’s Search Fund Study. These returns make search funds an attractive alternative for investors seeking higher growth.

2. Active Cash Flow vs. Passive Income

Real estate investments can often generate inconsistent or passive rental income, with properties sitting idle or needing maintenance. In contrast, businesses acquired through search funds generate active cash flow almost immediately. These companies have established revenue streams, providing regular distributions alongside equity growth. For exporters used to steady income from trade, this active cash flow is an appealing feature that aligns well with their financial expectations.

3. Aligned Time Horizons

Real estate investments typically have a medium- to long-term horizon of 5-10 years before realizing substantial gains. Similarly, search funds operate on a timeline that aligns with this expectation: 1-2 years to identify and acquire a business, followed by 3-7 years with an average of 5 years for operational growth before an exit. This timing matches the investment strategy of Egyptian investors familiar with waiting for long-term returns.

4. Global Diversification Without the Hassles of Property Management

Managing properties abroad comes with challenges, including maintenance, tenant management, and local regulations. Search funds eliminate these operational headaches by focusing on well-managed SMEs across various industries and geographies. Investors gain global diversification without the complexities associated with property ownership, making it a convenient way to expand one’s portfolio internationally.

A Call for Strategic Diversification

As Egypt’s export sector continues to grow, driven by government incentives and rising global demand, exporters have more opportunities than ever to leverage their foreign currency earnings into high-yield investments. While real estate remains a reliable option, by allocating part of your portfolio to search funds, you can achieve higher returns, enjoy active cash flow, and benefit from global diversification without the burdens of property management.

Kholoud Hussein 

In recent years, Saudi Arabia has witnessed a significant transformation in its labor market, marked by the rapid growth of the freelance economy. This shift aligns seamlessly with the Kingdom's Vision 2030, aiming to diversify the economy, empower individuals, and foster innovation. As of September 2024, over 2.25 million individuals have registered on the national freelance platform, reflecting the increasing demand for flexible work options and the government's commitment to modernizing the workforce. 

The Current Landscape of Freelancing in Saudi Arabia

Demographics and Sectoral Distribution

The freelance sector in Saudi Arabia is diverse and dynamic. Trade and retail dominate with 38% of freelancers, followed by industry (13%) and business services (11%). Educationally, 62% of freelancers hold bachelor's degrees, 31% have high school qualifications or less, and 7% possess higher degrees. Geographically, Riyadh leads with 27% of freelancers, followed by Makkah (22%) and the Eastern Region (14%). The 25-34 age group is the most active, indicating a strong youth presence in the freelance market. 

Economic Contribution 

The freelance economy’s impact on Saudi Arabia’s GDP is already notable, contributing SAR 72.5 billion (approximately $19.3 billion) in 2023, which equates to around 2% of the Kingdom's total GDP. This contribution is expected to increase substantially as freelance work becomes more formalized and integrated into the national labor strategy. According to a report by the Saudi Ministry of Human Resources and Social Development, the number of freelance licenses issued is growing at an annual rate of 22%, indicating a strong upward trajectory.

Experts forecast that by 2030, freelancers could contribute up to 5% of Saudi Arabia's GDP if current trends continue, particularly as new sectors such as digital marketing, software development, AI services, and content creation continue to flourish. Furthermore, the flexibility inherent in freelance work supports other critical areas of Vision 2030 — notably by reducing unemployment, especially among youth and women, and fostering innovation across industries.

From a socio-economic perspective, the freelance model also plays a role in regional development. With more freelancers able to work remotely from secondary cities like Al Khobar, Abha, and Tabuk, economic activities are becoming less concentrated in Riyadh and Jeddah, promoting more balanced national development.

Startups and Digital Platforms Supporting Freelancers 

Saudi startups and digital platforms are emerging as critical enablers of the freelance economy, and their role will only intensify in the coming years.

Platforms like Marn and Ureed are not merely matching freelancers with projects — they are building ecosystems. Marn recently announced a plan to integrate AI-driven skill assessment tools, helping freelancers validate and showcase their competencies, thereby increasing trust between freelancers and hiring businesses. Ureed, similarly, has expanded its platform capabilities to offer managed services where teams of freelancers can collaborate on complex projects, providing end-to-end solutions for SMEs and large enterprises.

In addition, new SaaS (Software-as-a-Service) startups in Saudi Arabia are developing tools specifically for freelancers, including smart invoicing apps, legal contract templates, and tax management services, in anticipation of more formal freelance taxation systems in the Kingdom. Startups like Freelance Yard and Shift are already piloting freelance marketplaces that include embedded banking services, allowing users to manage payments, savings, and even retirement plans directly through their platforms.

Looking ahead, startups are expected to play an even bigger role by:

• Expanding access to international markets: Saudi freelancers could soon tap into global freelance opportunities via local platforms offering cross-border payments and multilingual interfaces.
• Specialization of platforms: Future freelance platforms may be sector-specific (e.g., legal freelancing, healthcare consulting, tech development), catering to niche professional segments with tailored tools.
• Building communities and upskilling hubs: Startups will likely invest in building online communities offering networking events, professional development workshops, and certifications that enhance freelancers’ career growth.
• Integrating AI and Blockchain: AI will optimize matching algorithms, while blockchain could be used to create secure, transparent work contracts and payment records, ensuring better protection for freelancers.

According to a study by PwC Middle East, nearly 68% of Saudi startups are looking to integrate freelance-based services into their operational models by 2026 — highlighting that the freelance economy will not just be an employment channel, but a core business model.

Government Initiatives and Vision 2030 Alignment

The Saudi government has implemented several initiatives to bolster the freelance economy:

• Future Work Company: Established in 2019 by the Ministry of Human Resources and Social Development to promote modern work styles, including freelancing. 
• Freelance License Program: Simplifies the process for individuals to obtain official freelance licenses, granting them access to government services and financial products.
• Support Programs: Initiatives like the Reef program, the Social Development Bank, and the Human Resources Development Fund provide financial and training support to freelancers. 

These efforts are integral to Vision 2030's objectives of increasing employment, especially among youth and women, and fostering a diversified, knowledge-based economy.

Challenges and Opportunities

Challenges

Despite the growth, the freelance sector faces several challenges:

• Legal Framework: The need for standardized contracts and dispute resolution mechanisms to protect freelancers and clients.
• Social Protection: Limited access to health insurance, retirement plans, and other benefits typically associated with traditional employment.
• Skill Development: Continuous upskilling is necessary to meet the evolving demands of the global market.

Opportunities

The freelance economy presents numerous opportunities:

• Women's Participation: With 3.2 million women expressing interest in freelancing, there's potential for increased female workforce participation. 
• Youth Engagement: The dominance of the 25-34 age group indicates a trend towards embracing flexible work models among the youth. 
• Technological Integration: Leveraging digital platforms can enhance efficiency and expand market reach for freelancers.

The Freelance Economy in Saudi Arabia Toward 2030 and Beyond

As Saudi Arabia continues its march toward achieving the ambitious targets of Vision 2030, the freelance economy is expected to shift from being a complementary part of the labor market to a central pillar of economic growth and innovation.

Experts project that by 2030, freelancers could account for as much as 10% of the active workforce in Saudi Arabia if current reforms and technological trends continue. According to a Deloitte Middle East forecast, flexible work arrangements, including freelance and remote work, will dominate nearly 35% of total employment contracts in the private sector by the end of the decade.

Several factors will fuel this future growth:

• Continuous Regulatory Enhancements: The Saudi government is expected to introduce more robust legal protections for freelancers, including standardized digital contracts, enhanced social insurance schemes, and retirement plans tailored to independent workers.
• Educational Institutions Embracing Freelancing: Universities and vocational training centers are increasingly incorporating freelance skills — such as project management, digital marketing, coding, and creative writing — into their curriculums to prepare students for the freelance economy.
• Cross-Sector Expansion: Freelancing will no longer be confined to technology or creative sectors. Growth is anticipated in healthcare consultancy, legal services, educational tutoring, environmental consulting, and even industrial design.
• Integration with Mega Projects: Saudi Arabia’s "giga projects" such as NEOM, The Red Sea Project, and Qiddiya will provide extensive opportunities for freelancers in areas like tech development, media production, architecture, environmental research, and tourism management.

Startups will remain vital players in facilitating this growth:

• They will build decentralized talent platforms connecting freelancers directly to global projects.
• They will integrate AI-driven skill certifications and instant payment systems to make freelancing more seamless and attractive.
• They will develop freelance-focused co-working hubs in major cities, blending digital and physical support spaces for independent workers.

Saudi officials are optimistic about the trajectory. In a recent statement, Ahmed Al-Rajhi, Minister of Human Resources and Social Development, said: "Freelancers are the future of a vibrant and diversified Saudi economy. We aim to empower them through smart policies, advanced platforms, and global integration."

Similarly, business owners in the freelance ecosystem, like Fahad Al-Dossary, founder of a Riyadh-based tech consultancy, affirm: "The freelance revolution has democratized opportunity. Today, Saudi talent can compete and collaborate globally without leaving their homes."

As Saudi Arabia embraces digitalization, entrepreneurship, and labor market flexibility, the freelance economy is no longer a secondary trend — it is becoming a strategic engine for growth, innovation, and national pride.

To conclude, the freelance economy in Saudi Arabia is rapidly evolving, contributing significantly to the nation's GDP and aligning with the strategic goals of Vision 2030. With continued support from the government, startups, and digital platforms, the sector is poised for sustained growth, offering flexible employment opportunities and fostering economic diversification.

Kholoud Hussein 

In the dynamic world of startups, one of the most critical decisions founders face is choosing between bootstrapping and seeking venture capital (VC) funding. Each path offers distinct advantages and challenges, and the optimal choice often depends on the startup's goals, industry, and growth strategy. This article delves into the current landscape, providing insights and data to help entrepreneurs make informed decisions.

Understanding Bootstrapping and Venture Capital

Bootstrapping involves building a company using personal finances or operating revenues. This approach allows founders to maintain full control over their business but may limit the speed and scale of growth due to resource constraints.

Venture Capital, on the other hand, entails raising funds from investors in exchange for equity. This influx of capital can accelerate growth and provide access to valuable networks, but often comes with expectations of rapid scaling and potential dilution of ownership.

The Current Funding Landscape

In 2024, global venture capital funding experienced a modest increase, reaching approximately $83 billion, up from $75 billion in 2023. However, this figure remains below the peak levels seen in 2021, indicating a more cautious investment environment.

Notably, the AI sector dominated VC investments, securing nearly $100 billion globally—a significant 80% increase from the previous year. This trend underscores the importance of aligning with investor interests when seeking VC funding.

Conversely, bootstrapping has gained traction among startups. In 2024, over 38% of startups globally began without external funding, up from 26% in 2019. This shift reflects a growing desire among entrepreneurs to retain control and build sustainable businesses without external pressures.

Success Rates and Considerations

Startup success rates remain a critical factor in funding decisions. First-time founders have an 18% success rate, while those with prior experience see a 30% success rate. These statistics highlight the challenges startups face, regardless of the funding approach

.

Bootstrapping Pros:

• Control: Founders retain full ownership and decision-making authority.
• Sustainability: Focus on profitability and sustainable growth.
• Flexibility: Ability to pivot without external approval.

Bootstrapping Cons:

• Limited Resources: Slower growth due to funding constraints.
• Risk: Personal financial exposure.
• Scalability: Challenges in scaling operations quickly.

Venture Capital Pros:

• Capital: Access to significant funding for rapid growth.
• Expertise: Guidance and mentorship from experienced investors.
• Networking: Connections to potential partners, customers, and talent.

Venture Capital Cons:

• Dilution: Loss of ownership and control.
• Pressure: Expectations for rapid growth and returns.
• Alignment: Potential conflicts between founder vision and investor goals.

Industry-Specific Insights

Certain industries may favor one funding approach over the other. For instance, SaaS companies often benefit from bootstrapping due to lower initial capital requirements and recurring revenue models. However, sectors like biotechnology or hardware, which require substantial upfront investment, may necessitate VC funding.

In 2024, bootstrapped SaaS businesses experienced a decline in growth rates, with median growth dropping 27 percentage points in less than a year. This trend suggests that while bootstrapping offers control, it may limit scalability in certain contexts.

Making the Right Choice

When deciding between bootstrapping and VC funding, consider the following:

• Business Model: Does your model require significant upfront investment?
• Growth Objectives: Are you aiming for rapid expansion or steady, sustainable growth?
• Risk Tolerance: Are you comfortable with personal financial risk, or do you prefer shared risk with investors?
• Control: How important is maintaining full control over your company?
• Market Conditions: Is the current investment climate favorable for your industry?

Finally, both bootstrapping and venture capital offer viable paths for startups, each with unique advantages and challenges. Bootstrapping provides control and sustainability but may limit growth potential. Venture capital offers resources and acceleration but comes with expectations and potential loss of control.

Ultimately, the choice depends on your business model, goals, and personal preferences. By carefully evaluating these factors and staying informed about market trends, you can make a decision that aligns with your vision and sets your startup on the path to success.

Shaimaa Ibrahim

Amid the rapid transformations reshaping the global food industry, food technology has emerged as a key driver in revolutionizing how food is produced, distributed, and consumed. In Saudi Arabia, this sector is gaining strong momentum, fueled by Vision 2030’s focus on innovation and sustainability as essential pillars to strengthen food security and create new opportunities for entrepreneurs to deliver cutting-edge solutions tailored to both local and regional markets.

Therefore, Sharikat Mubasher sat down with Mohammed AlQurashi, CEO & Founder of Saudi FoodTech, a company aiming to harness technology to transform the food supply chain. In this exclusive interview, AlQurashi sheds light on the key challenges facing entrepreneurs in the food tech space, shares his vision for the sector’s future in Saudi Arabia, and highlights the critical role that startups can play in achieving self-sufficiency and boosting the Kingdom’s competitiveness in the global food landscape.

How was Saudi FoodTech founded, and what is its vision and mission for the food technology sector? 

 Saudi FoodTech was established to catalyze the Kingdom's transformation into a global hub for food and agri-techinnovation. Recognizing the critical need to enhance food security and sustainability, our mission is to foster an ecosystem in KSA for the world that accelerates innovation, investment, and collaboration in this sector. By connecting global and local startups, investors, corporates, and policymakers, we aim to drive the development of sustainable, tech-driven solutions in food and agriculture, in alignment with Saudi Arabia's Vision 2030. 

What services does Saudi FoodTech offer to support entrepreneurs and startups within the food technology industry?

We provide a comprehensive suite of services designed to support startups at various stages of their development. This includes facilitating connections with corporates and investors, organizing year-round industry events across Saudi cities to enhance visibility and partnership opportunities, and launching innovation challenges like the upcoming 2025 edition of the Saudi Agri-FoodTech Challenge which we will announce soon. Additionally, we offer support with commercialization and integration into corporate value chains, aiming to enable practical, high-impact engagement that accelerates innovation within the ecosystem. 

Can you share insights into the three editions of Saudi FoodTech, including the number of entrepreneurs and investors involved, as well as key partnerships formed?

Over the course of three editions, Saudi FoodTech has engaged more than 1,000 stakeholders, including startups, investors, corporates, and government entities. Our events and programs have led to meaningful investment outcomes, with several startups securing funding or advancing co-investment discussions. We'vealso facilitated strategic visits for startups from MEWA’s accelerator program to Saudi’s industry leaders like NADEC, AlTanmiah, and Jahez, creating direct pathways between early-stage innovators and key corporate players. We are currently focused on engaging global VCs who invest in the food and agri sectors, to bring them and their portfolios to the Kingdom. 

Could you provide more details about the companies that have recently joined Saudi FoodTech?

 We collaborate with a growing network of companies across the food and agriculture sectors. Recent initiatives include partnerships to facilitategreenhouse-based Taif rose production and early efforts to connect rose farmers with AgriTech startups. These projects reflect our broader goal of integrating innovation into heritage-based sectors with untapped commercial potential. We believe there is a massive opportunity for Saudi agri and food businesses to embed technology and go global. 

Is there an increasing interest among startups in developing sustainable solutions within the food technology sector? What are the most notable innovations that Saudi FoodTech is focusing on?

 Yes, there's a notable increase in interest among startups in developing sustainable solutions. Key areas of focus include controlled environment agriculture, smart irrigation and water-efficient systems, supply chain digitization and traceability, and localized, high-value ingredient development. Saudi FoodTech is committed to supporting startups that address deeply local challenges while contributing to broader food security and environmental goals. 

What are the primary challenges facing food technology startups in Saudi Arabia, and what strategies can be implemented to overcome them?

Key challenges include access to early-stage capital, limited commercialization and piloting infrastructure, and building relationships with industry partners and decision-makers. Our strategy focuses on closing these gaps through matchmaking between startups, corporates, and investors, structured investment readiness programs, and innovation challenges to validate solutions and open upmarket access. From our conversations, and by building awareness of Saudi Arabia’s food and agri sector, we have seen investor interest increase. 

 We believe that enabling structured engagement across the ecosystem is key to accelerating growth. 

How do you envision the future of smart agriculture and food technology in the Kingdom, especially with growing government support? What role do startups play in driving innovation in this field? 

The future of food and agriculture in Saudi Arabia is smart, sustainable, and tech-enabled. With strong policy support under Vision 2030, the sector is rapidly transforming, and startups are playing a vital role in that shift. From precision agriculture and alternative proteins to climate-smart farming, startups bring the agility and innovation required to tackle local challenges at scale. Saudi FoodTech’s role is to support and scale those efforts through strategic connections and ecosystem-building. 

What are thefuture plansand goals for Saudi FoodTech moving forward?

 In 2025, our focus is on launching the Saudi Agri-FoodTech Challenge, expanding our year-round event calendar across multiple Saudi cities, publishing ecosystem insights, and elevating thought leadership. We also aim to build long-term partnerships to support commercialization, policy dialogue, and investment opportunities. Our broader goal is to make Saudi FoodTech a globally recognized platform that drives innovation, investment, and sustainable growth across the Kingdom’s food and agriculture sectors

Noha Gad

Have you ever wondered why some entrepreneurs build thriving, resilient businesses while others with great ideas still struggle? The difference often is not IQ, experience, or luck, it is emotional intelligence (EI). Studies show that 90% of top-performing leaders excel in EI, mastering skills like self-awareness, empathy, and adaptability. In this blog, we will explore why EI is a non-negotiable superpower for entrepreneurs and how you can develop it to future-proof your success.

What is emotional intelligence?

Emotional Intelligence (EI) is the ability to recognize, understand, and manage your own emotions while effectively navigating the emotions of others. Unlike IQ, which measures cognitive ability, EI focuses on the interpersonal and intrapersonal skills that drive meaningful relationships and sound decision-making. 

Psychologist Daniel Goleman’s widely accepted framework breaks EI into five core competencies: self-awareness, self-regulation, motivation, empathy, and social skills. For entrepreneurs, mastering these components is not just about being ‘likable’, it is a strategic advantage that fuels leadership, negotiation, and resilience in high-stakes environments.

How EI triggers entrepreneurs’ success and growth

Entrepreneurs with high emotional intelligence do not just build businesses, they build loyal teams, devoted customers, and resilient organizations. Those who master EI make sharper decisions under pressure because they recognize how stress biases judgment. 

Additionally, leaders with high self-awareness create environments where talent thrives, reducing turnover by half, compared to visionary founders who prioritize ideas over people.

Perhaps most crucially, EI builds the resilienceto endure entrepreneurial lows. Research showed that founders with strong emotional skills are three times more likely to survive past five years.

In an era of artificial intelligence (AI) and automation, emotional intelligence remains the ultimate competitive edge. While technology handles tasks, entrepreneurs who excel in empathy, self-regulation, and social awareness will always own the human advantage: the ability to turn transactions into loyalty and ideas into lasting impact.

Low EI signs and their impact on entrepreneurs’ performance

Entrepreneurs who lack emotional intelligence often unknowingly create their biggest obstacles. Here are some low EI signs that can negatively affect entrepreneurs’ performance:

• Conflict mismanagement: founders who dismiss team concerns as a default to aggressive responses frequently face toxic workplace cultures and high turnover.
• Impulsive decision-making: Entrepreneurs who cannot regulate their emotions often chase shiny objects, suddenly pivoting strategies after one setback or overcommitting resources to emotionally charged projects.
• Burnout contagion: Founders who ignore their own stress signals typically fail to recognize team exhaustion until it is too late.
• Empathy blind spots in customer relations: Entrepreneurs who cannot step outside their own perspective often launch tone-deaf initiatives. These missteps do not just waste marketing dollars, but they erode brand trust that can take years to rebuild.

How to Develop EI as an Entrepreneur

Developing emotional intelligence is not about personality overhaul, it is targeted skill-building. Here are key practical strategies entrepreneurs can adopt to develop their EI:

• Self-awareness audits. Block 15 minutes weekly to journal emotional triggers during high-stakes meetings or decisions. Tools like mood-tracking applications or 360-degree feedback surveys reveal blind spots.
• self-regulation. Adopt the "10-second rule" before responding to provocations, then ask, "Will this reaction serve my long-term goals?" 
• Empathy development. This requires active practice. You can replace solution-oriented listening with validation.

Finally, emotional intelligence emerges as the last unconquerable advantage in an era where AI handles analytics and capital flows freely. Along with brilliant ideas, entrepreneurs need to forge unshakable team loyalty, navigate crises with grace, and instinctively understand unmet human needs to thrive.

Ghada Ismail

Cryptocurrencies have evolved from niche tech curiosity to global financial phenomenon in just over a decade. As Bitcoin, Ethereum, and an increasing number of altcoins draw in investors, developers, and policymakers alike, governments are increasingly active in the digital asset ecosystem, not only to regulate it but to join in.

From China's digital yuan to Bitcoin as a form of tender in El Salvador, countries are experimenting with blockchain-based currencies in very different forms. In the Gulf, the UAE is already well ahead of the pack as a regional hub for crypto. So, Saudi Arabia?

With the Kingdom raising its bet on new tech, financial infrastructure, and digitalization as a component of Vision 2030, the idea of a national cryptocurrency or, at least, a blockchain-based coin with public utility, appears more prescient than ever. Is the time right, though, for Saudi Arabia to print its own crypto coin?

We'll explain what a cryptocurrency is first, and how it contrasts with a CBCC before getting into it.

What Really is a Cryptocurrency

A cryptocurrency is a digital or virtual currency that uses blockchain technology to secure and confirm transactions. Most cryptocurrencies, unlike government-issued and controlled fiat currencies, are decentralized; they are not dependent on central powers. Bitcoin, launched in 2009, was the first and remains the most well-known example. Others like Ethereum, Solana, and Ripple have since emerged with specialized use cases, from programmable contracts to super-fast cross-border payments.

What sets cryptocurrencies apart is that they are peer-to-peer: Payments can be sent directly between users without the involvement of intermediaries like banks. They are also typically supply-capped, which makes them attractive to those who see them as an inflation hedge. But they are highly volatile, unregulated in most places, and have been criticized for their use in speculative trading, fraud, and money laundering.

CBDCs and Cryptocurrencies: A Major Distinction

Even as both employ blockchain or distributed ledger technologies, central bank digital currencies (CBDCs) and cryptocurrencies are fundamentally different.

• A CBDC is central bank-issued and guaranteed. It is a tender of law, like cash or traditional bank deposits, but digital. CBDCs are intended to be stable, controlled, and part of a country's monetary system. It's intended to mimic and perhaps replace cash's role.

• Whereas a cryptocurrency is typically private, unregulated, and not a legal tender, its value is determined by the market forces rather than by a central authority, and it's more of an asset than a currency.

In essence, CBDCs aim to bring state-controlled money into the digital sphere, whereas cryptocurrencies threaten it. Some governments have embraced crypto cautiously, while others are building CBDCs as an indigenously safe and sovereign alternative to the digital currency revolution.

Bitcoin and Ethereum: The Cornerstones of the Crypto Ecosystem

Bitcoin and Ethereum remain the two most recognized and widely adopted cryptocurrencies around the world. 

Bitcoin, often referred to as digital gold, was the first cryptocurrency to gain mainstream attention, valued for its decentralized nature and capped supply of 21 million coins. It’s often seen as a store of value and hedge against inflation, especially in markets where traditional currencies face volatility. Its prominence has helped open the door for greater awareness and interest in digital assets across the region.

Ethereum, on the other hand, has carved out a unique position beyond just being a cryptocurrency. Its blockchain powers a vast ecosystem of decentralized applications (dApps), smart contracts, and innovative financial tools, such as Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs). With its ongoing transition to a more energy-efficient proof-of-stake model, Ethereum continues to attract developers, investors, and regulators alike. 

The Global Landscape: Central Banks Go Digital

In order to know where Saudi Arabia stands, one needs to look outward. Over 130 countries, accounting for more than 98% of global GDP, are considering the development of central bank digital currencies (CBDCs), as per the Atlantic Council's CBDC Tracker. China is in the lead, with the e-CNY already being extensively tested. The UAE and India, meanwhile, have initiated their own pilot programs, particularly for cross-border transactions.

Specifically, this is not just a matter of keeping up with innovation. It's about maintaining control over monetary policy, gaining payment infrastructure, and financial inclusion, especially as decentralized digital currencies like Bitcoin and Ethereum continue to grow in popularity and volatility.

How Saudi Arabia Is Navigating the Crypto Space

Saudi Arabia has thus far addressed cryptocurrencies with a cautious and measured approach. Neither the Saudi Central Bank (SAMA) nor the country's currency has legalized cryptocurrencies as a form of payment, and crypto trading is not officially regulated. Saudi citizens and residents do use international crypto markets, albeit often through foreign websites. SAMA has neither banned crypto nor done so for its currency, though it has cautioned citizens about unauthorized use. Despite that, social media views suggest growing local interest, particularly among young Saudis.

As of May 2022, roughly 3 million Saudis, or 14% of the country's population aged 18-60, were actively engaged in the cryptocurrency market either by owning cryptocurrencies or trading them, according to a survey conducted by the KuCoin exchange.

The report also found a growing wave of interest among the general population. A further 17% of the survey respondents were defined as "crypto-curious," which demonstrated a high likelihood of investing in cryptocurrencies over the next six months. The findings reflect a growing trend of crypto adoption across Saudi Arabia, among young, technology-literate users interested in decentralized finance and alternative investments.

Rather than rushing to adopt or ban cryptocurrencies outright, Saudi regulators are moving slowly to understand the space and see how things go. In 2022, SAMA recruited a head of CBDC development, suggesting growing institutional focus on digital currency design. The Kingdom began to meet with FinTech founders and blockchain startups through regulatory sandboxes, testing digital financial products in a sandboxed environment.

The Capital Market Authority (CMA) also has an interest in asset tokenization, and it appears that blockchain technology could find a niche in Saudi Arabia's financial future, even though there is no plan to switch away from cryptocurrencies for the time being.

Project Aber 

Beyond private sector momentum, government-backed initiatives are also shaping the region’s digital finance landscape. One notable example is Project Aber, a joint initiative launched in 2019 by the Saudi Central Bank (SAMA) and the Central Bank of the United Arab Emirates (CBUAE) to explore the feasibility of a central bank digital currency (CBDC) for cross-border payments. The project aimed to assess the potential of distributed ledger technology (DLT) in enhancing the efficiency and security of interbank transactions between the two countries.

Over the course of a year, Project Aber involved six commercial banks—three from each country—in testing a dual-issued, wholesale CBDC used exclusively for settlements between participating banks. The initiative successfully demonstrated that a DLT-based solution could streamline cross-border payments by reducing transfer times and costs, while maintaining compliance with regulatory standards. The findings, documented in the Project Aber Final Report, have contributed to the global discourse on CBDCs and have informed subsequent initiatives, such as Saudi Arabia's participation in Project mBridge, which seeks to further develop cross-border CBDC applications.

Why It Might Make Sense for Saudi Arabia to Begin Thinking About a Crypto Coin?

1. Facilitates Vision 2030 Objectives

The Kingdom is taking aggressive steps to diversify the economy and embrace digitalization. A Saudi crypto coin would place the country at the forefront of the international Web3 economy and portend welcome openness to innovation from next-generation fintech.

2. Financial Inclusion

An officially approved crypto coin, or one made accessible by a mobile phone, might draw more of its citizens, and in particular the unbanked and underbanked, into the formal financial system. This would have particular potential among youth and rural women.

3. Enabling Cross-Border Trade

Since intra-GCC trade and remittances are significant in the region, a Saudi digital coin would facilitate easy cross-border payments, reduce costs, and promote economic integration, especially if complemented by neighboring digital currencies.

4. Reporting Global Investment

A Saudi crypto initiative - properly regulated, transparent, and Shariah-compliant - can attract global crypto firms and investors, solidifying the Kingdom's status as a regional fintech hub.

5. Aligning With a Young, Tech-Savvy Population

Over half of Saudi Arabia's population is less than 30 years old, and digitally native generations are more likely to explore alternative assets such as crypto. Addressing this increasing demand with a domestically created coin might serve to capture and direct local interest.

What Could Hold It Back

1. Regulatory Uncertainty

While progress has been made, Saudi Arabia's crypto regulations are still in their infancy. The CMA and SAMA issued warnings against trading unlicensed cryptocurrency assets. A state-issued coin would need to have a holistic legal and financial setup to prevent confusion.

2. Price Volatility and Monetary Policy Risks

Most cryptocurrencies are inherently volatile. Would the Saudi coin be pegged to the riyal? Would it be a stablecoin? Such design choices would have deep implications for monetary policy and public trust.

3. Finance and Misuse Risks

Crypto coins, if not monitored well, can be misused for money laundering, tax evasion, and capital flight. It would be crucial to be AML/KYC compliant and aligned globally.

4. Infrastructure Readiness

Blockchain networks require cyber resilience and technical infrastructure. The success of the coin would depend on robust platforms, secure wallets, user awareness, and reliable internet connectivity across the country.

5. Cultural and Religious Considerations

Similar to all financial innovations in the Kingdom, any cryptocurrency would have to be Islamic finance-friendly. Interest, speculation, and asset backing issues would have to be addressed carefully.

Conclusion

Implementing a national cryptocurrency is a bold endeavor, and Saudi Arabia has the resources to make it work. It has the funds, the ambition, the cyber infrastructure, and an increasingly technologically savvy citizenry. A Saudi cryptocurrency would have the potential to increase financial access, propel cross-border innovation, and solidify the Kingdom's leadership in the digital economy.

But it must be a strategic, safe, and vision-driven step. If not regulated, openly schooled, and in harmony with national values, the detriments may outweigh the benefits.

Whether by way of a digital riyal, expanded build-out of Project Aber, or wider regulation of crypto, Saudi Arabia can take the lead in Islamic-compliant, digitally driven finance. The question is not whether the Kingdom will digitalize. It's when and how.

Sabine El Najjar, Chief Commercial Officer and KSA Managing Director - Silkhaus 

Saudi Arabia is currently experiencing a transformative shift in its tourism and real estate sectors, driven by the ambitious Vision 2030. As the Kingdom positions itself as a global tourism and business hub, the short-term rental market is emerging as a key enabler for growth in the hospitality industry.  

At the heart of Saudi Arabia’s short-term rental growth is Vision 2030, the country’s long-term economic diversification strategy. With the goal of attracting 150 million annual visitors by 2030, the government is heavily investing in infrastructure, hospitality, and tourism experiences. Mega projects such as NEOM, The Red Sea Project, Qiddiya, and Diriyah Gate are creating new destinations, increasing the need for expansive accommodation options beyond traditional hotels. A number of major trends in the market are indicative of the demand from guests.  

Rising Demand from Business Travelers 

The Saudi government is recognising the importance of short-term rentals in meeting this demand and has been working on regulatory frameworks that ensure a structured and professional rental market while encouraging investment. By facilitating licensing processes, improving property management standards, and supporting professional operators, the government is making it easier for both local and international players to enter and thrive in this space. 

Saudi Arabia’s rapidly expanding business hubs, particularly in Riyadh, Jeddah, and NEOM, are fueling a surge in demand for accommodations from corporate travelers. Riyadh, the capital and financial center, is home to multinational corporations, government institutions, and major industry events. Meanwhile, NEOM is attracting global talent, with business executives, project managers, and expatriates needing flexible, high-quality accommodation. 

Unlike traditional hotels, short-term rental properties offer business travelers more space, privacy, and home-like amenities, making them a preferred choice for extended stays. 

Regulatory Evolution & Licensing Compliance 

As the offer for short-term rental options matures, the Saudi government is taking steps to ensure that operators comply with hospitality standards, taxation policies, and safety regulations. In the past, short-term rentals were dominated by individual hosts, but now, new regulations are favoring structured property management companies that can provide a professional and consistent experience. 

Authorities are implementing clearer licensing requirements, which will help establish trust and reliability in the sector. These regulations will likely set minimum quality standards, pricing guidelines, and guest verification procedures, ensuring that short-term rentals align with Saudi Arabia’s vision for a high-quality tourism and business environment. 

Those who align with regulations early on will gain a competitive advantage, ensuring for themselves a stable position in a market set to grow relentlessly in the next few years. 

Growth of Branded & Serviced Apartments Create Trust with Guests 

One of the most noticeable trends in Saudi Arabia’s short-term rental market is the growing preference for branded and serviced apartments. Unlike traditional vacation rentals, serviced apartments offer hotel-like services such as housekeeping, concierge support, and premium amenities, making them particularly attractive to high-net-worth individuals, corporate travelers, and families. 

This trend is especially evident among Saudi families traveling for major events, such as Riyadh Season and Jeddah Season. These large-scale cultural and entertainment festivals attract millions of visitors, creating demand for luxurious, spacious, and well-managed accommodations. Instead of booking hotel rooms, families prefer short-term rental apartments that offer more flexibility and privacy, particularly when traveling in groups. 

Religious tourism in Makkah and Madinah is further driving demand for short-term rentals. Pilgrims visiting these cities for Hajj and Umrah often seek accommodation that combines comfort, convenience, and affordability, making professionally managed rental properties a desirable alternative to hotels. 

Increase in Market Players & Investment Opportunities 

With demand on the rise, both local and international operators are expanding their footprint in Saudi Arabia. Since 2020-2021, local players have been actively scaling their businesses across multiple cities, capitalizing on the surge in demand. At the same time, global short-term rental companies like Silkhaus have entered the market, recognizing Saudi Arabia’s potential as a major hospitality hub. 

This influx of experienced operators, technology-driven platforms, and professional management firms is reshaping the industry: guests can expect standardized service, seamless booking experiences, and premium quality—factors that were previously inconsistent in the Saudi short-term rental market. 

For investors, Saudi Arabia presents a lucrative opportunity in short-term rentals. The combination of rising tourism, strong government backing, and increasing professionalization of the sector makes it an attractive space for real estate developers, hospitality brands, and property owners looking to maximize returns. 

Looking Ahead: What’s Next for Saudi’s Short-Term Rental Market? 

Saudi Arabia’s short-term rental market is entering a pivotal phase, driven by the country’s ambitious event calendar of the next few years and increasing global visibility. Major international events like the FIFA World Cup and Expo are on the horizon, and demand for high-quality, well-located accommodations will surge. Operators, to keep pace, must scale rapidly: portfolio expansion, distribution channels optimization, and technology leverage for higher guest volumes are the next must-have. These years will also push the industry toward greater standardization, as travellers expect seamless, hotel-like experiences. 

At the same time, we expect the competitive landscape to shift. As the market matures and regulatory frameworks stabilize, we can expect a wave of consolidation. Larger players will likely absorb smaller operators who struggle to meet evolving guest expectations and compliance requirements. Institutional investors, hotel brands, and real estate funds may also enter the space, bringing greater professionalism and capital to accelerate growth. The industry will transition from fragmented growth to a more structured and competitive ecosystem, where scale, operational efficiency, and brand reputation will define long-term success. 

Saudi Arabia’s short-term rental market is definitely entering an exciting phase of growth and transformation. With strong government backing, evolving regulations, and increasing demand from business and leisure travelers, the sector is rapidly becoming a key pillar of the Kingdom’s tourism strategy. 

As local and international players continue to scale operations, and improve service quality, Saudi Arabia is well-positioned to become a leading market for short-term rentals in the Middle East. For investors, property owners, and hospitality operators, the time to enter this dynamic market is now.