Ghada Ismail

Across Saudi Arabia, the way people handle money has undergone a quiet revolution. Tapping your phone to pay for coffee, transferring cash through a wallet app, and getting a loan without stepping into a bank, these are now part of everyday life. Over just five years, the Kingdom’s fintech sector has surged forward, reshaping how people save, spend, and invest.

The numbers reflect this momentum. According to the ‘Setup in Saudi’ website, the number of active fintech companies in the country jumped from 89 in 2022 to over 200 fintech firms as of August 2023. Digital-first banking, robo-advisory tools, and BNPL (buy-now-pay-later) platforms are gaining traction not just in Riyadh or Jeddah but across a much broader swath of the population.

But while fintechs have made finance more accessible, they’ve also created new openings for fraudsters.

As fast as platforms evolve, scammers adapt. No longer content with crude spam messages or clumsy impersonation attempts, they’re now deploying far more sophisticated tactics: hijacking OTPs, creating near-perfect fake apps, and launching social engineering scams that are tailored to Arabic-speaking users.

These attacks aren’t random. They’re calculated, localized, and alarmingly effective.

In a country where digital trust underpins an increasingly cashless economy, even a single breach can ripple far beyond the victim. For fintechs, the challenge is not just about securing systems, it’s about preserving confidence.

That’s why a new wave of innovation is taking shape: that’s FraudTech, a growing arsenal of technologies designed to detect and block fraud before it strikes. AI-driven threat detection, biometric verification, and behavioral analytics are becoming essential weapons in the fight against a smarter, faster breed of financial crime.

In today’s Saudi fintech landscape, the real arms race isn’t over who builds the flashiest app—it’s over who can build the safest one.

Inside the Modern Scam: What Fraud Looks Like in 2025

Gone are the days of laughably fake emails and “you’ve won a prize” messages. Today’s scams are sharper, better disguised, and more emotionally manipulative.

Across Saudi Arabia, users are being targeted with Arabic-language phishing messages disguised as official alerts from banks, government portals, or shipping services. Often sent via SMS or WhatsApp, these messages lead to malicious links or request seemingly harmless details, like a One-Time Password (OTP). In reality, that OTP is often the last step before someone’s account is drained.

Fake apps are another growing threat. These replicas of popular fintech platforms are nearly identical to the real thing, right down to the colors, layout, and fonts. Once installed, they harvest credentials and silently pass data back to cybercriminals.

Even more concerning is the rise of AI-enhanced fraud. Deepfake audio and video, cloned voices of bank agents, and personalized spear-phishing campaigns are creeping into the ecosystem. These tools make it increasingly difficult to tell the difference between a genuine call and a scam.

And then there’s social engineering, where the attacker’s strongest weapon is human emotion. A panicked call from someone claiming to be a relative in trouble. A friendly “customer service agent” helping you resolve an urgent issue. The goal isn’t to hack your phone, it’s to hijack your trust.

This new era of fraud is no longer just a tech problem. It’s a human one.

How Saudi Fintechs Are Fighting Back

In response to these rising threats, Saudi fintechs are stepping up with a new mindset: prevention by design.

Artificial Intelligence (AI) is now at the core of many platforms’ fraud strategies. These systems aren’t just flagging unusual logins; they’re learning user behavior in real time. If someone who always transfers SAR 200 suddenly sends SAR 20,000 to a new international account, the AI doesn’t just log it; it can freeze it, verify it, or block it altogether.

Biometric tools like fingerprint scans and facial recognition are becoming standard across many Saudi fintech apps. They provide an added layer of protection that can’t be phished or guessed.

But it doesn’t stop there. Behavioral biometrics—tracking how you hold your phone, how fast you type, or how you swipe—adds another invisible shield. These patterns are unique to each person and difficult for fraudsters to mimic.

Local players like Hala, Tweeq, and stc pay are investing heavily in fraud detection infrastructure. stc pay has publicly launched anti‑fraud initiatives like the “Scam the Scammer” awareness campaign, explicitly stating its ongoing investment in fraud prevention and customer security. Additionally, STC (the parent company) has partnered with telecom‑fraud solutions companies like Mobileum and Subex, deploying AI-driven systems to detect and prevent fraud across its network. Some have partnered with international specialists like Feedzai and BioCatch, which provide advanced, AI-powered fraud monitoring tailored for the financial industry.

What used to be back-end security is now a frontline feature. In a crowded fintech market, platforms that offer visible, transparent protection stand out. For users, safety has become just as important as speed or convenience.

Regulators Join the Fight

The battle against fraud isn’t being fought by fintechs alone.

The Saudi Central Bank (SAMA) has taken a proactive stance in fraud prevention by issuing a comprehensive Counter‑Fraud Framework and Fundamental Requirements, compelling banks and fintechs to implement real‑time monitoring, conduct frequent control maturity assessments, and submit roadmaps for compliance by June 2023. These requirements include board oversight and ongoing reporting obligations.

The National Cybersecurity Authority (NCA) stands alongside SAMA in safeguarding Saudi Arabia’s digital infrastructure and coordinating cyber threat response across sectors. Working together, these regulators deliver unified frameworks—such as SAMA’s Cybersecurity Framework and NCA’s Essential Cybersecurity Controls—that reinforce collaboration across finance, telecom, and critical infrastructure providers.

A. SAMA’s Cybersecurity Framework

• Strong Customer Authentication (SCA): Mandates two-factor authentication (2FA) for all digital payments.
• Fraud risk assessments required for fintech licensing.
• Real-time transaction monitoring enforced for all payment providers.

B. National Cybersecurity Authority (NCA) Initiatives

• "Kafalah" program: Aims to protect consumers from fraud via awareness campaigns.
• Fraud reporting portals allow victims to report scams quickly.

This approach signals a shift: beating fraud isn’t about acting alone; it’s about acting together.

Public awareness campaigns have also ramped up, with simple, clear messages targeting everyday users. Whether it's an ad reminding you to never share your OTP or a video warning against fake apps, education is becoming part of the strategy.

Users: The First Line of Defense

Despite all the tech defense systems, one uncomfortable truth remains: people are still the easiest target.

Fraudsters don’t need to break into your system if they can simply trick you into opening the door. A well-timed scam call or convincing SMS is all it takes for many users to unknowingly give away critical information.

Recognizing this, fintechs are redesigning how they interact with users.

Some apps now display real-time warnings when a user tries to transfer money to a flagged account. Others introduce delays for unusually large transactions, buying time for users to reflect or cancel. Educational nudges, trust scores, and interactive security tips are also being embedded into user journeys.

In parallel, many fintechs are taking to social media, posting bite-sized Arabic videos that explain new fraud techniques, scams to watch for, and tips for safer banking.

Educating and Protecting the User

A. How Fintechs Are Raising Awareness

• In-app scam warnings pop up during risky transactions.
• Interactive tutorials teach users how to spot phishing attempts.
• Gamification: Some apps reward users for completing security training.

B. What Users Must Do

• Never share OTPs or passwords, even with "bank agents."
• Verify app legitimacy before downloading (check developer names, reviews).
• Enable biometric logins for added security.
•  

The goal is simple: build habits, not just awareness.

Because in the fight against fraud, an informed user isn’t just a customer; they’re a partner.

Smarter Threats, Smarter Defenses

The fraud landscape isn’t standing still, and neither should Saudi Arabia’s fintech sector.

With generative AI, scammers can now create realistic fake identities, impersonate company executives, and automate social engineering campaigns at scale. We’re entering a time when a video of your CFO asking for a wire transfer might not be real, and you may not know until it’s too late.

To stay ahead, fintechs must treat security as a product, not a feature. That means real-time monitoring, regular penetration testing, strong collaboration across sectors, and above all, user-centric design that keeps protection seamless but effective.

In a future shaped by mobile-first banking, open APIs, and digital identity, Saudi fintechs won’t just be judged by how fast they grow, but by how securely they scale.

Conclusion: A Secure Digital Future for Saudi Arabia

Saudi Arabia’s fintech revolution is unstoppable, but so is financial fraud. The Kingdom is fighting back with strong regulations, AI-powered FraudTech, and consumer awareness.

The next phase will require even smarter defenses as criminals leverage AI. Yet, with SAMA, NCA, and fintech innovators working together, Saudi Arabia is well-positioned to become a global leader in secure digital finance.

The message is clear: Fraud is evolving, but so are the tools to stop it.

Mohamed Ramzy

Amid Egypt’s rapid digital transformation in recent years, Swypex has emerged as a key player in the fintech sector, offering innovative solutions that empower businesses to manage their spending with greater efficiency and transparency.

Since its founding in 2022, Swypex has filled the gap in the Egyptian fintech market, capitalizing on robust partnerships that fueled the company’s growth and propelled its business model toward ongoing evolution and success.

Sharikat Mubasher had an interview with the Co-founder and CEO, Ahmad Mokhtar, to learn more about Swypex’s journey and future strategy.

First, what inspired you to found Swypex, and how has the company’s vision developed since day one?

We founded Swypex in 2022 to meet the growing needs of businesses in Egypt. Over the past years, Egypt has witnessed a significant push towards digitizing financial services, driven by the government’s support marked by the rollout of ‘InstaPay’ for consumers, widespread adoption of point-of-sale (PoS) terminals, and implementation of the e-invoice system, in addition to mandating government entities to accept digital payments. 

Yet, despite this progress, businesses remained without genuine solutions to digitize their internal spending while maintaining robust governance and control levels. Here came Swypex to offer an innovative, safe solution that enables businesses to track expenses efficiently and transparently. 

What are the key services or flagship products that Swypex offers in the fintech field?

We offer a wide spectrum of technology services, notably smart corporate cards that allow each employee or team to operate under flexible, personalized spending policies. These cards can be activated within minutes and delivered in only 24 hours.

Swypex also features a comprehensive platform to manage expenses and approvals, offering live tracking and direct integration with e-invoice systems, real-time financial reporting, and smart analytics to help teams make informed decisions. Additionally, the platform integrates directly with the Enterprise Resource Planning (ERP) systems to streamline accounting processes.   

What sets Swypex apart from its competitors in this dynamic market?

At Swypex, we deliver several financial solutions tailored to meet the specific needs of businesses, empowering them to digitize expenses while ensuring higher levels of transparency and control.

We also develop programs that align with actual operations and procedures that companies follow today, delivered through a seamless, easy-to-use digital platform that helps finance and management teams streamline spending management efficiently and in a more organized manner.

What are the biggest challenges you face in delivering innovative financial solutions, and how do you address them?

The biggest challenge we face is the long-standing lack of innovative financial solutions, which has forced companies to create their own complex internal processes to manage spending.

To address this, we work closely with finance teams to deeply understand their workflows and develop software that helps them solve problems automatically without requiring complicated training or drastic changes to their daily operations. Our goal is to ensure that technology acts as an enabler, simplifying workflows rather than creating additional challenges.

How does Swypex align itself with security and compliance standards?

Swypex adheres to the highest global standards for data and transaction security and implements top-level protections in compliance with Payment Card Industry Data Security Standard (PCI DSS). We also work closely with local banks to ensure full compliance with banking laws and regulations set by the Central Bank of Egypt (CBE). 

What are the company’s expansion plans in terms of exploring new markets and developing products?

We are developing additional features for our clients, such as broadening subscription packages to cater to medium and large businesses by offering flexible services, spending analysis tools, ERP system integration solutions, and tailored short-term financing services for corporates. All of this aligns with Swypex’s mission to establish an inclusive financial ecosystem that covers every aspect of corporate expense management.  

What are the key partnerships that Swypex forged in Egypt and the broader region?

We formed multiple partnerships in Egypt, including a strategic collaboration with Visa to offer smart, secure corporate cards and another partnership with Mashreq Bank. Additionally, we partnered with MDP to develop banking and technical infrastructure.

These partnerships enable us to deliver services that give companies greater control, transparency, and operational efficiency in managing their financial processes.

What is the current size and reach of Swypex’s business activities?

Swypex officially launched its operations in 2024, rapidly accelerating its business growth. Today, we partner with several key players in pivotal sectors, such as logistics, contracting, manufacturing, retail, technology, tourism, and more. These partnerships significantly contribute to the steady monthly increase in the volume of transactions processed through SwipeX.

What role does customer experience play in Swypex’s strategy, and how do you enhance it? 

Customer experience is at the core of our work. We design every product and service based on genuine feedback from customers. Our dedicated team works continuously to enhance the user experience by regularly measuring customer satisfaction and engaging directly with their feedback.  

Swypex’s goal is to provide a flexible, fast, and hassle-free financial experience.

Finally, Swypex has contributed to shaping the fintech landscape in Egypt since its launch in 2022 by providing innovative financial solutions to help startups manage their spending efficiently. During this short period, the company has forged strategic partnerships with leading entities and financial institutions in Egypt.

Translation: Noha Gad

Noha Gad

The substantial growth in the e-commerce sector over the past few years has revolutionized the retail landscape, powered by a surge in global online shoppers and evolving consumer expectations. In 2025, the number of online shoppers across the world is expected to reach around 2.77 billion, representing almost one-third of the global population, according to recent data released by SellersCommerce, a leading global B2B platform transforming the e-commerce landscape. 

This rapid expansion is triggered by increasing internet penetration, mobile commerce adoption, and the convenience offered by digital platforms. Consumers now demand faster, more flexible, and reliable delivery options, raising the bar for companies to optimize their last-mile delivery processes.

The term ‘last-mile delivery’ refers to the final stage in the supply chain where goods travel from a warehouse or local distribution center to the end customer’s doorstep, business, or a parcel locker. Although last-mile delivery is the shortest leg of a product’s journey, it is the most complex and expensive part of the logistics process, accounting for over half of total shipping costs. This phase directly links brands to consumers, serving as the ultimate touchpoint in fulfilling customer orders.

The rise in e-commerce and on-demand services highlighted the importance of last-mile delivery in meeting customers’ expectations to receive their packages safely with remarkable speed and flexibility. Same-day and next-day delivery options have become standard expectations, pushing businesses to innovate and optimize this phase of logistics. Thus, last-mile delivery is no longer just about moving parcels but about delivering superior customer experience and satisfaction.

Last-mile delivery requires careful route optimization, multiple stops, and flexible scheduling to meet strict delivery deadlines, especially in crowded urban environments. With growing expectations for transparency, customers now demand real-time tracking and prompt notifications, adding pressure on carriers and logistics providers. Successfully navigating these operational complexities can set companies apart in a competitive landscape and build lasting customer loyalty.

The evolution in last-mile delivery

The last-mile delivery landscape saw a remarkable evolution, driven by the shift from simple, manual processes to highly sophisticated, technology-driven operations. In the past, deliveries were largely managed through routine routes and fixed schedules, but today, last-mile delivery has transformed into a dynamic, customer-focused process that leverages data analytics, automation, and smart logistics solutions to optimize every step of the journey.

Emerging technologies played a pivotal role in enabling this shift. Real-time tracking systems, route optimization software, and mobile applications empowered delivery teams with the tools to plan more efficient routes, reduce fuel consumption, and proactively communicate with customers. Additionally, data analytics provides crucial insights into delivery patterns, resource allocation, and customer preferences, allowing companies to enhance their operations for maximum efficiency. 

These technological developments raised customers' expectations for last-mile delivery as shoppers prioritize speed and convenience, with same-day and even one-hour deliveries becoming standard in many markets. 

Outsourcing last-mile delivery became a strategic priority for many businesses aiming to meet the rising demands of today’s fast-paced and competitive market. By outsourcing last-mile delivery, companies mainly rely on specialized third-party logistics (3PL) providers to handle the critical final stage of the supply chain, instead of managing their own fleets and delivery personnel.

This shift enables businesses to scale operations efficiently without incurring the heavy costs of fleet ownership and management. It also enhances customer experience by providing more localized and flexible delivery options.

Key innovations in last-mile delivery

• Electric and autonomous delivery vehicles. This innovation is ideal in urban locations with frequent stops and short distances. It contributes to reducing carbon emissions, noise pollution, and operational costs. Leveraging AI, GPS, and sensors, autonomous delivery vehicles can navigate complex environments and operate 24/7. Despite these promising benefits, challenges remain in regulatory approval, cybersecurity, and infrastructure adaptation.
• Drone Delivery. This solution rapidly emerged as a transformative power in last-mile logistics as it offers unparalleled speed and flexibility in reaching customers, especially in congested urban centers and remote areas. This ability makes drones ideal for urgent deliveries such as medical supplies, food, and small parcels, where speed is critical. Electric-powered drones produce zero emissions and reduce road congestion, enabling direct deliveries to homes or designated drone ports, supporting sustainable urban logistics. One of the key challenges that delivery drones face is payload and flight range limitations that restrict package size and delivery distance.

Overall, last-mile delivery acts as a critical bridge in the logistics chain, connecting the complex global supply network to individual consumer experiences. Its evolving role requires continuous innovation to meet customer expectations for fast, reliable, and sustainable delivery. Mastering last-mile delivery is not just about moving parcels faster; it’s about crafting exceptional delivery experiences that build trust, loyalty, and a greener future in an ever-connected digital marketplace.

Kholoud Hussein 

Under Vision 2030, Saudi Arabia has embarked on a sweeping economic transformation drive. Since 2017, the kingdom’s non‑oil economy has grown consistently at 4–5% annually, a testament to accelerating diversification. The Public Investment Fund (PIF), valued at $950 billion, is now directing a significant slice—approximately $251 billion by end‑2023—toward domestic startups across sectors such as healthcare, logistics, technology, and public services.

PIF executives emphasize that supporting growing local ventures—aka “local bets”—is central to achieving economic resilience and job creation goals. As one leader noted: “The tailwinds are much stronger than the headwinds” when it comes to diversifying beyond oil.

This economic backdrop sets the stage for what analysts call the “Founder’s Economy”: startups founded to solve persistent public problems in Saudi Arabia—inefficiencies in waste management, transportation, healthcare access, climate resilience, and more—with bold, tech‑driven solutions.

Climate & Environment: Innovating Sustainability

Saudi Arabia accounted for 94% of climate‑tech funding in the GCC between 2018 and 2023—roughly $439 million, according to PwC Middle East. Startups are now tackling environmental issues head‑on:

• Mirai Solar: Offers modular, deployable photovoltaic shading systems to reduce energy waste and support agriculture and logistics efficiency. These solutions help lower carbon intensity in urban environments.
• Plastus: Converts agricultural waste into biodegradable plastics, advancing circular economy goals in food and logistics packaging.
• Sadeem: Built IoT‑powered flood monitoring systems in Riyadh and Jeddah, enabling municipalities to act preemptively—mitigating public safety risks and reducing infrastructure damage.

These ventures reflect a deeper shift: climate-intent embedded in business models, rather than sustainability as an add-on, often rooted in technical talent incubated by KAUST, KAPSARC, or global exposure.

Public Logistics & Urban Services

Saudi cities face chronic mobility and infrastructure needs—areas now being addressed by private innovation:

• Mrsool: Originally a peer-to-peer delivery app, now serves urban logistics and courier needs in Riyadh, Jeddah, and other cities. With over 10 million registered users and 200,000 couriers, it has transformed last-mile logistics and supported initiatives like Ramadan food deliveries for the underprivileged.
• Reachware: An Automation and systems integration startup, founded in 2021, helps government and hospitality platforms connect scheduling and payment systems. It raised $3 million in 2024, earned awards for being the best iPaaS provider in Saudi Arabia and the region, and plays a growing role in urban digitization.
• Smart waste management for Makkah: A research-backed system—TUHR—uses ultrasonic sensors and AI to monitor container levels during Hajj and Umrah, triggering real-time collection and reducing public health risks and fuel consumption.

These innovations illustrate how start-ups are building infrastructure that historically would be delivered by public or municipal authorities.

Fintech & SME Financing

One persistent public-sector challenge in Saudi Arabia is SME financing. SMEs account for only ~9% of total bank lending in 2024—short of the Vision 2030 goal of 20%. Startups are stepping into that void:

• Erad: A Shariah-compliant SME finance platform raised $16 million in early 2024, offering loans in as little as 48 hours. Sixty percent of its clients are first-time borrowers, and it has processed over SR 100 million in funding requests and SR 2 billion in applications.

On the payments and commerce side:

• Lean Technologies: Powers fintech innovation by offering secure bank data APIs to integrate payments, investments, and budgeting across the region. With over $33 million raised, Lean is foundational to modernizing financial services.
• Moyasar: A payment gateway co-founded in 2015, which raised $20.8 million in 2024, simplifies digital transactions for SMEs and e-commerce, thereby boosting the uptake of electronic payments nationwide. 
• Tamara: Buy‑now‑pay‑later fintech is popular across the Kingdom, managing high demand for digital credit services. Its model reduces friction in purchasing and supports consumer financing needs. 

These fintech ventures are helping solve access and inclusion issues that traditional banking systems struggle to meet, particularly for underserved small businesses.

Health, Edtech & Social Inclusion

Saudi startups are increasingly focusing on healthcare access, social inclusion, and human capital development.

• NoorDx: Founded within KAUST’s innovation cluster in late 2021, this medtech venture offers genetic testing locally—addressing that 90% of Saudi genetic tests were processed abroad before NoorDx launched. Its mission: “By Saudis, in Saudi, for Saudi”.
• BrightSign smart glove: Enables real-time translation of sign language into text or speech—empowering communication for the deaf or speech-impaired, especially in public institutions such as hospitals and schools. Developed with joint university partnerships, the glove exemplifies mission-driven inclusion tech.
• iStoria: An edtech startup that secured $1.3 million in seed funding, focuses on English language learning to widen educational access and upskill youth—backed by Flat6Labs, Classera, and Nama Ventures. 

Collectively, these ventures tackle public goods: healthcare decentralization, disability inclusion, and skills development.

Deep Tech, Space & Infrastructure

Saudi Arabia is not just solving old problems—it’s building future capacity.

• Neo Space Group: Launched in 2024 by PIF, it focuses on satellite communications, remote sensing, IoT, and data infrastructure. Projects like SARsatX and Orbit Arabia support agriculture, urban monitoring, and geopolitical data services. 
• Lucidya: Saudi’s leading AI-powered customer analytics and social listening platform—impacting public sector channels, emergency response, and brand‑government communication. Raised $6 million Series A in 2022, pioneered Arabic NLP, and introduced a four‑day workweek in 2024. 
• Alat: A PIF‑founded hardware‑tech conglomerate launched in early 2024, planning operations across seven sectors—semiconductors, smart health, infrastructure, and smart cities. Alat aims to generate $9.3 billion GDP impact and create 39,000 jobs by 2030.

These ventures operate at the intersection of national infrastructure goals and entrepreneurial execution.

Scale, Investment & Broader Ecosystem

The true measure of a startup ecosystem lies not in the number of companies launched but in how many survive, scale, and influence their sectors at large. In Saudi Arabia, the shift from quantity to quality is beginning to take root. The focus is no longer solely on cultivating entrepreneurial activity, but rather on nurturing ventures with the potential to become national or even regional champions. Scaling, however, is not a simple next step—it’s a complex leap that requires mature capital markets, strategic infrastructure, sophisticated talent, and policy alignment.

Over the past few years, Saudi Arabia has seen a surge in investment activity. According to Magnitt’s 2024 Mid-Year Saudi Arabia Venture Investment Report, the Kingdom attracted the highest VC funding in the MENA region, securing nearly 42% of the region’s total disclosed deals in the first half of the year. This momentum is a testament to strong government support mechanisms, such as the Public Investment Fund’s (PIF) backing of venture platforms like Sanabil Investments and Jada Fund of Funds. However, much of this investment is still concentrated in early-stage rounds. As startups transition to scale, the capital landscape becomes thinner. The need for growth-stage funds—particularly those that can write larger Series B or Series C checks—is growing critical.

Investors themselves often highlight a key tension: the mismatch between startup ambitions and investor risk appetite. While many founders are thinking regionally or globally, institutional investors still lean conservative, seeking traction and profitability before participating in later rounds. This has pushed some high-potential startups to seek international funding, which can dilute local influence and, in some cases, lead to headquarters being relocated abroad. To counter this, Saudi Arabia must work on incentivizing both domestic and foreign institutional investors to participate more actively in growth rounds. This could involve co-investment models, sovereign-backed risk guarantees, or the establishment of sector-specific megafunds—particularly in areas of national importance like: healthtech, agritech, and climate innovation.

Infrastructure is also a critical enabler of scale, and here Saudi Arabia is making strategic bets. Initiatives like NEOM’s Oxagon and King Salman Energy Park (SPARK) are not just megaprojects—they are designed to function as innovation zones with built-in startup ecosystems. These hubs offer integrated logistics, regulatory flexibility, and proximity to both public and private customers. However, they remain in early stages, and their success in supporting startup scale will depend on how well they connect with the broader entrepreneurial landscape, particularly in cities like Riyadh, Jeddah, and Dammam, where most startups are currently concentrated.

Corporate engagement is an emerging force that could transform the scaling landscape. Increasingly, large Saudi companies are partnering with startups through open innovation models, procurement programs, and Corporate Venture Capital (CVC) arms. Companies like STC, Aramco, and SABIC are beginning to see startups not as vendors but as innovation partners. Aramco’s Wa’ed Ventures, for instance, has become a critical backer of industrial and deep-tech startups with national relevance. However, this engagement needs to go deeper and wider, especially in sectors like construction tech, water sustainability, and education, where legacy systems are ripe for disruption.

Ultimately, scale requires an enabling culture as much as it does capital or partnerships. Many Saudi founders face a psychological and operational ceiling once they reach product-market fit. Moving beyond that point—into new markets, larger teams, and global customer bases—requires more than ambition. It demands access to experienced leadership, second-time founders, strategic advisors, and export support mechanisms. Programs that connect Saudi startups with global mentors, or that embed them in international tech hubs for 3 to 6 months, could provide the bridge from domestic success to regional or global scale.

In this broader context, Saudi Arabia’s startup ecosystem is at a crossroads. It has succeeded in inspiring a generation of builders, many of whom are creating tangible solutions to long-standing national challenges. The next chapter is about anchoring those successes into sustainable, high-impact businesses that can scale without losing their public relevance or local identity. With focused investment in growth-stage capital, integrated innovation zones, corporate collaboration, and global exposure, the Kingdom can transform its startups from promising experiments into enduring engines of economic diversification and national resilience.

Founder Voices & Cultural Impact

Many of the startup founders speak of a broader mission:

• A climate-tech founder emphasized the venture’s explicit commitment to environmental outcomes, not just profit.
• A Reachware executive noted partnerships with platforms like PayMob and Wadak reflect how governance tech can elevate public services.
• Mrsool’s leadership emphasizes the company’s role in supporting charitable logistics for Ramadan, connecting delivery infrastructure to civic outcomes. 

Challenges & Future Outlook

Despite the rapid growth of Saudi Arabia’s startup ecosystem and its visible impact on public problem-solving, a number of structural challenges remain that could slow or limit its full potential. These obstacles are not just operational hiccups; they touch on regulation, access to capital, talent, and the broader cultural mindset around entrepreneurship. Addressing these challenges will be essential as the Kingdom moves from a startup-friendly environment to a truly startup-powered economy.

One of the most pressing issues faced by many startups—particularly those working in specialized or regulated sectors—is regulatory fragmentation. Although recent reforms and platforms like MISA and the SAMA regulatory sandbox have made market entry easier, sector-specific ventures still struggle with overlapping authorities and inconsistent licensing procedures. A healthtech startup, for example, may need to navigate approvals from the Ministry of Health, the Saudi Food and Drug Authority, and local municipalities—each with its own requirements and timelines. Similarly, smart mobility or infrastructure startups often find themselves stalled by siloed bureaucracies, where innovation is welcomed in principle but delayed in practice. As one Riyadh-based founder noted, “Getting an experimental license is one thing, but scaling across multiple cities still depends on siloed approvals. We need more unified, national regulatory sandboxes—not just one-offs.”

Access to capital is another persistent hurdle, particularly in the growth and late stages. While early-stage funding has seen impressive momentum—over $400 million in VC deals were closed in the first half of 2024 alone—most of this capital is concentrated in seed and Series A rounds. When startups are ready to scale, especially those in capital-intensive sectors like climate tech, deep tech, and advanced manufacturing, they often hit what founders describe as the "Series B ceiling." Larger investment rounds require global investor networks and specialist funds that are still underdeveloped in the Saudi ecosystem. This funding gap is especially stark for female founders, who often report disproportionately lower access to later-stage capital despite solid traction. A recent study by Agnes AI in 2024 found that nearly 78% of female founders in Saudi Arabia believe they are underfunded compared to their male counterparts, particularly in science, health, and AI-driven ventures.

The issue of talent is also central to the Kingdom’s startup evolution. 

While universities are producing more STEM graduates and the government is investing in tech education, many startups still face difficulty in hiring experienced software engineers, data scientists, and senior executives who can take ventures from early product-market fit to full-scale commercialization. Startups often rely on imported talent, which can be expensive and administratively complex due to visa restrictions and integration issues. Even when local talent is available, retaining it is increasingly competitive as global tech companies open regional offices and attract top Saudi professionals with higher salaries and global exposure. There is a clear need to build sector-specific talent pipelines and stronger bridges between universities, technical institutes, and the private sector. Incentivizing members of the Saudi diaspora to return and contribute to local innovation could also be part of a long-term solution.

Another underappreciated challenge lies in geographic concentration. Riyadh has become the epicenter of startup activity, with Jeddah and Dhahran following behind. However, many of the public problems these startups are trying to solve—such as gaps in healthcare access, education, or transportation—are most severe in rural or underserved regions. Expanding to these areas is more difficult due to infrastructure gaps, lower digital literacy, and fragmented local governance. Founders looking to grow beyond the urban core face both logistical and financial hurdles. Without public co-investment or incentives for regional expansion, many startups may be forced to remain city-centric—limiting their national impact and contributing to uneven development.

Cultural attitudes also continue to evolve. While the entrepreneurship culture in Saudi Arabia has matured significantly in recent years, especially among youth, the transition from stable public-sector employment to startup risk-taking is still ongoing. For many Saudis, founding or joining a startup is not yet viewed as a long-term career path but rather as a stepping stone. Encouraging a deeper, more sustained founder mindset will require more than just government programs; it demands success stories, mentorship, and visible proof that startups can deliver security, purpose, and growth—not just risk. Entrepreneurship must become a first-choice path, not a last resort or temporary ambition.

Looking ahead, Saudi Arabia’s startup ecosystem must evolve from an early-stage success story into a scalable, resilient engine of national development. This will involve regulatory harmonization, broader capital diversity—including more late-stage and impact-driven funds—and robust local talent strategies. Infrastructure must also be developed to support scaling beyond major cities, ensuring that innovation reaches all corners of the Kingdom. Public-private collaboration will be key, treating startups not merely as business ventures but as strategic partners in solving complex societal issues.

The momentum is real. Saudi startups are already helping transform how the country tackles healthcare, logistics, environmental sustainability, and financial inclusion. But to fully realize the vision of the “Founder’s Economy,” the Kingdom must continue building the systems, culture, and capital flows that empower its most daring innovators to thrive—not just in Riyadh, but nationwide, and not just at launch, but at scale.

Finally, the Saudi Founder’s Economy is doing more than launching unicorns—it’s solving public-sector problems through private innovation. From flood‑detecting sensors to logistics networks, from SME financing to climate-smart infrastructure, Saudi startups are delivering tangible public value.

Supported by government reforms, PIF investment, and institutional backing, these ventures reflect a transition in public problem-solving: from central planning to founder-led agility and accountability.

As Vision 2030 enters its final phase, the ability of startups to tackle education, health, environment, transport, and infrastructure will shape both public outcomes and the Kingdom’s economic trajectory. In short, entrepreneurs are now as central to public service delivery as they are to private sector growth—and that is the real meaning of the Founder’s Economy.

Ghada Ismail

Before you raise millions, rent a fancy office in Riyadh Boulevard, or post a selfie with your new accelerator badge, there’s one thing your startup absolutely needs to figure out: Product-Market Fit.

It’s the one milestone that separates startups that grow steadily from those that burn out after the hype fades, so let’s talk about what Product-Market Fit (PMF) really is, why it’s especially critical in Saudi Arabia and the wider MENA region, and how you can tell whether you’ve found it or if you’re just hoping you did.

What Exactly Is Product-Market Fit?

Product-Market Fit happens when your product doesn’t just work..it clicks! People don’t just use it, they rely on it. They tell their friends about it. They’d be genuinely upset if it disappeared tomorrow.

Marc Andreessen, the investor who coined the term, summed it up perfectly:

“Product-market fit means being in a good market with a product that can satisfy that market.”

In the Saudi and MENA ecosystem, PMF is often misunderstood. We see plenty of startups get early attention—thanks to grants, accelerator programs, or investor buzz—but haven’t yet proven that they’re solving a real pain point.

But the truth is: if your product isn’t delivering real value, you don’t have PMF. And without it, the rest doesn’t matter.

How to Know If You’ve Hit PMF 

In this region, it’s easy to mistake early buzz for true traction. You might have app downloads, a press feature, or even an MoU with a big-name entity. But none of those things mean PMF.

Here’s what real PMF looks like in the Saudi or MENA context:

• People use your product regularly, even when there’s no discount.
• You start growing in second-tier cities, not just Riyadh or Dubai.
• Users refer their friends, or even offer to invest.
• Retention is solid. People aren’t just signing up, they’re staying.
• You get messages like: “Where have you been all this time?” or “Please launch this in Khobar!”

How to Actually Measure PMF

PMF isn’t just a feeling, it shows up in your numbers and your users’ behavior.

Here’s what to look for:

1. User Retention
Do people come back without you reminding them?

2. Organic Growth
Are users telling their friends? Are you seeing signups you didn’t pay for?

3. Revenue Consistency
Is your revenue growing from actual usage, not casual promotions?

4. Product Engagement
Are users using core features deeply, or just logging in once and ghosting?

5. Feedback That Hurts (In a Good Way)
When people complain, demand features, or get upset when something breaks, it means they care.

PMF ≠ MVP (Please Stop Mixing Them Up)

In this ecosystem, it’s common to confuse Minimum Viable Product (MVP) with Product-Market Fit. But they’re not the same.

Your MVP is your early prototype; it’s there to test if the idea makes sense.

PMF is when the market tells you it wants what you’re building and wants more of it. It’s when the demand becomes real, not just theoretical.

You don’t get PMF just because you have an MVP. You get PMF when users come back to it again and again, even if the design isn’t perfect or you’re still operating from your living room.

To Wrap Things Up…

Product Market Fit is not just a milestone; it’s the foundation of everything that follows. Without it, your startup is just a project with potential. With it, you have a business that can grow, attract investment, and stand out in an increasingly competitive market. In Saudi Arabia and the broader MENA region, where ecosystems are rapidly evolving, achieving true Product Market Fit means you’re solving a real problem in a way that users care about. It shows in their behavior, their loyalty, and their willingness to spread the word. Before you scale, pitch, or celebrate, make sure you’ve built something people can’t imagine living without. That’s when you’re ready to move forward with confidence.