From Gaming to Tourism: How Web3, Blockchain Are Shaping Saudi Arabia’s Future

Apr 9, 2025

Ghada Ismail

 

Saudi Arabia is racing toward a tech-driven future, with technologies like Web3 and blockchain leading the way. As the Kingdom reshapes its economy under Vision 2030, blockchain's promise of openness and security is gaining attention, with industries poised for change.

 

To explore this further, Sharikat Mubasher spoke with Dan Dimitriu, a seasoned consultant who has advised governments and major companies. Dan works with countries and business leaders worldwide at the forefront of innovation. He shares how the Metaverse could boost Saudi tourism and how Web3 can improve gaming, retail, and education. The discussion also covers new investment opportunities, the need for clear rules, and how Saudi startups are teaming up with global players to grow the Web3 scene.

 

1. What first sparked your interest in Web3 and blockchain technologies?

My fascination with Web3 and blockchain began with their potential to revolutionize traditional industries through decentralization and transparency. As a consultant to governments and FTSE 500 companies, I've witnessed firsthand how blockchain can streamline operations and enhance trust across various sectors. My background in music also instilled in me the value of creativity and innovation, which aligns perfectly with the disruptive nature of Web3.

 

2. Could you explain what the Metaverse is and how Saudi Arabia could leverage it across key sectors?

The Metaverse is a decentralized, immersive digital environment that enables new forms of interaction and engagement. In Saudi Arabia, I can see the Metaverse transforming tourism by creating virtual experiences of historical sites. With the tourism market projected to reach USD 110.1 billion by 2033, growing at a CAGR of 8.4%, the Metaverse can increase interest and drive physical visits through virtual tours of Al-Ula or the Red Sea resorts. This aligns with Saudi Arabia's Vision 2030 goals of economic diversification and technological advancement. Additionally, the Metaverse can enhance retail and education by providing immersive customer experiences and educational outcomes.

 

3. How do you see Web3 fitting into Saudi Arabia's rapidly advancing digital transformation?

Web3 is integral to Saudi Arabia's digital transformation, as evidenced - amongst other things - by the recent launch of the Web3 Alliance of Saudi Arabia, which aims to accelerate blockchain innovation in line with Vision 2030.

I strongly believe that Web3 can significantly impact industries like gaming, a strong industry in Saudi, which is projected to grow at a CAGR of 30% from 2024 to 2030, reaching USD 28.86 billion by 2030. Web3 can also enhance finance, education, and healthcare by providing decentralized solutions that increase transparency and efficiency.

 

4. How can policymakers create a balanced regulatory framework for blockchain innovation?

Creating a balanced regulatory framework for blockchain in Saudi Arabia requires policymakers to be tech-savvy pioneers, navigating innovation while safeguarding public interest. The Terra Luna collapse underscored the need for a global regulatory shift, whereby policymakers understand technology deeply and engage with industry stakeholders to develop clear guidelines that ensure investor protection and market stability whilst not stifling innovation. This includes setting AML and KYC standards and establishing regulatory sandboxes. By embracing innovation, Saudi Arabia can lead in blockchain regulation, similar to the UAE's approach.

 

5. What role could blockchain play in boosting trust, payments, or product authenticity in Saudi Arabia's e-commerce sector?

Blockchain is a powerful, yet still misunderstood technology in many circles. As a technology it can significantly enhance trust in e-commerce by providing transparent and secure transactions, ensuring product authenticity through immutable records, and streamlining payments with cryptocurrencies. This leads to faster, more reliable transactions, crucial for Saudi Arabia's growing e-commerce market.

 

6. Where do you see the strongest investment opportunities for Web3 startups in the Saudi market?

I would say the strongest investment opportunities lie in gaming, fintech, and e-commerce, where there is a growing demand for decentralized solutions. Additionally, foundational infrastructure and protocol startups present significant opportunities for entrepreneurs and investors.

 

7. How can Saudi startups collaborate with global Web3 innovators to accelerate adoption locally?

As with every ecosystem, it's a classic chicken and egg scenario: to attract more global investors, you need more startups, but startups require funding to grow. Despite this challenge, I've witnessed the Saudi Web3 ecosystem make steady progress, thanks to a diverse range of players. Global event brands like Outeredge are bringing their conferences to the market, while local startups like Takadao and investors like Adaverse are spearheading community-building efforts through meetups. Additionally, initiatives like the launch of WASA by The Sandbox, Animoca Brands, and Outlier Ventures are further boosting the ecosystem. It's a gradual but promising journey, and raising awareness about these developments is key to accelerating its growth.

 

8. What emerging trend in Web3 excites you most, and how could Saudi Arabia embrace it early?

One of the most exciting trends in Web3 is the rise of decentralized social media and community-driven platforms. Given Saudi Arabia’s strong cultural emphasis on privacy, this trend aligns well with local values by offering users greater control over their data and digital identities. Given the strong consumer appetite for new solutions, I believe Saudi startups have a unique opportunity to develop local decentralized social media solutions tailored to the region’s needs.

 

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Proudly Made in Saudi: A Nation Building with Its Own Hands

Ghada Ismail

 

Have you noticed more Saudi-made products on your shelves lately? From food and beverages to packaging and industrial goods, a quiet revolution is underway, and it’s proudly stamped ‘Made in Saudi’. 

 

This national initiative is no longer just about branding; it’s about building a future where local manufacturing leads the way.

That momentum was on full display at the Saudi Food Manufacturing Expo 2025 in Riyadh, where hundreds of local and regional companies showcased innovations that signal a bold shift in Saudi Arabia’s industrial landscape. It’s a transformation driven by vision, backed by policy, and powered by ambition.

 

More Than a Label: A Strategic Vision for Industry

Launched in 2021 by the Saudi Export Development Authority under the umbrella of Vision 2030, the ‘Made in Saudi’ program is more than a marketing label. It serves as a national badge of quality and a strategic lever for economic diversification. 

In August 2021, the Saudi Export Development Authority said more than 900 Saudi companies with over 2,000 locally manufactured products had registered with the Kingdom’s “Made in Saudi” program, in an initiative that aims to boost the competitiveness of Saudi products at home and abroad.

This initiative is a cornerstone in the Kingdom’s broader efforts to reduce its reliance on imports and enhance the global competitiveness of its industrial base.

 

A Spotlight on Local Innovation at the Food Expo 2025

At the 2025 edition of the Saudi Food Manufacturing Expo, the largest and most specialized event of its kind in the Kingdom, the strength of Saudi Arabia’s manufacturing sector was unmistakable. The event hosted over 550 exhibitors from more than 70 countries and drew nearly 15,000 visitors, featuring everything from advanced food processing systems and sustainable packaging to smart factory solutions. But what stood out most was the strong presence of Saudi companies, many of them carrying the ‘Made in Saudi’ badge with confidence and pride.

 

From Catch-Up to Leadership: Saudi Firms Step Up

What once felt like a catch-up game is now a race Saudi Arabia is leading. Local firms unveiled cutting-edge product lines, introduced automation to their production processes, and struck new international distribution deals. Saudi snack manufacturers, dairy producers, and processed food brands are now competing not only within the Kingdom but also across regional and global markets.

Several participating companies also announced strategic export expansions, proof that Saudi-made products are not only meeting domestic demand but are also gaining traction abroad.

 

Fueling Growth: Government Backing and Logistics Reforms

The growth of the manufacturing sector hasn't happened by chance. It’s been supported by a suite of initiatives from the Ministry of Industry and Mineral Resources, including export financing, factory development incentives, and regulatory easing. The Saudi Industrial Development Fund (SIDF) and Saudi Export-Import Bank (Saudi EXIM) have also played key roles in funding growth.

On the logistics side, major national infrastructure projects like the Saudi Land Bridge and ongoing port expansions are streamlining transportation, reducing lead times, and strengthening the supply chain backbone for local producers.

 

Looking Ahead: A Stronger Industrial Future

The Kingdom has set a clear target: to raise the industrial sector’s GDP contribution from around 12% to 20% by 2030. As of 2023, manufacturing alone accounted for 14.79% of Saudi Arabia’s GDP.

With ‘Made in Saudi’ gaining momentum and local manufacturing evolving into a pillar of the economy, these goals are becoming increasingly attainable. Beyond economic impact, the initiative also drives job creation, local innovation, and national pride.

 

Manufacturing Pride on Display

The Saudi Food Manufacturing Expo 2025 wasn’t just another trade show; it was a snapshot of how far Saudi industry has come and how much further it’s ready to go. Walking through the exhibition halls, it was hard to miss the confidence of local manufacturers and the quality of their output. That ‘Made in Saudi’ label? It’s no longer just a symbol of origin, it’s rather becoming a mark of trust, capability, and future potential.

As Saudi Arabia continues to invest in local production, infrastructure, and innovation, one thing is clear: the Kingdom isn’t just preparing to compete—it’s preparing to lead. And the next time you pick up a locally made product, you might just feel a little prouder knowing it’s part of something much bigger.

 

Investor Exodus: Unpacking the Reasons Behind Sudden Withdrawals from Startups

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.

 

Digital Assets in Saudi Arabia: A New Frontier for Investment?

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.

Egyptians Investing in Real Estate Abroad Should Consider Search Funds for Portfolio Diversification

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.

 

Empowering the Future: The Rise of Saudi Arabia's Freelance Economy and Its Alignment with Vision 2030

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.