Noha Gad

In an era where consumers demand faster deliveries, greater convenience, and seamless shopping experiences, a logistical transformation is occurring behind the scenes: the silent rise of dark stores. These unmarked, tech-driven fulfillment centers are quietly revolutionizing retail infrastructure, emerging as the critical link between digital storefronts and instant delivery expectations in our era of hyper-speed e-commerce and q-commerce.

Recent research showed that the global dark store market is expected to hit $32.91 billion in 2025, with a CAGR of 41%. Meanwhile, the dark store market in the Middle East and North Africa (MENA) is projected to reach $12.1 billion by 2030, growing at a CAGR of 36.1%.

What exactly are dark stores?

Unlike traditional retail stores designed for customer foot traffic, dark stores are optimized exclusively for online order fulfillment. They function as micro-warehouses, strategically located in urban centers to enable hyperlocal deliveries, sometimes in as little as 10 to 30 minutes.

These highly automated spaces eliminate all traditional retail elements: no storefronts, shoppers, or checkout lines. Instead, they feature AI-driven inventory systems, robotic pickers, and smart sorting technology operating around the clock. 

By focusing exclusively on high-demand products and leveraging predictive analytics, dark stores simultaneously achieve remarkable speed, reduced waste, and optimal space utilization, making them the perfect fulfillment solution for today's instant gratification economy.

Why dark stores are gaining traction in Saudi Arabia

Dark stores are gaining traction in the Kingdom thanks to several key factors aligned with the country’s economic, technological, and consumer trends:

• Rapid growth of e-commerce. Consumers increasingly prefer quick, convenient online shopping, especially for groceries and everyday essentials. 
• Demand for super-fast delivery. Dark stores enable 10-to-30-minute deliveries, meeting rising expectations for speed. Applications like Nana, Ninja, and Haseel leverage dark stores to offer instant grocery delivery.
• Urbanization and high population density. Cities like Riyadh, Jeddah, and Dammam have dense populations, making dark stores cost-effective for covering large demand areas.
• Investment in technology and startups. Saudi venture capital firms, such as STV and Jahez, fund quick-commerce startups adopting the dark store model.

How dark stores benefit the supply chain in Saudi Arabia 

Dark stores are transforming supply chain efficiency in Saudi Arabia by optimizing logistics, reducing costs, and improving delivery performance. They provide:

• Faster and more efficient order fulfillment.
• Lower operational costs.
• Enhanced inventory management.
• Scalability for Q-commerce.
• Reduced delivery costs and carbon footprint
• Better supplier and retailer collaboration.

Dark stores vs. traditional warehouses vs. micro-fulfillment centers

Unlike large warehouses, which are typically located on the outskirts of cities and designed for bulk storage, dark stores are compact, urban-based facilities optimized for speed. They act as hidden retail hubs—stocking high-demand groceries and essentials—and enable platforms like Nana and Jahez to deliver orders in under 30 minutes.

Their proximity to consumers and tech-driven picking systems makes them ideal for Saudis' on-demand culture, though their smaller size limits inventory capacity compared to sprawling traditional warehouses.

Meanwhile, traditional warehouses are the backbone of bulk logistics, serving big retailers and manufacturers. While they lack the agility of dark stores, they support large-scale e-commerce operations with lower per-unit storage costs. However, their distance from urban centers slows last-mile delivery.

The automated, high-density micro-fulfillment centers (MFCs), often embedded in existing supermarkets or standalone sites, use robotics and AI to fulfill online orders quickly. 

Dark stores are poised to play an even bigger role in Saudi Arabia’s retail and logistics landscape, driven by several key trends, notably hyperlocal and on-demand dominance, automation and robotics integration, sustainability and cost optimization, and regulatory and investment support.

Finally, dark stores are more than a passing trend in Saudi Arabia, they’re a strategic evolution in retail and supply chain efficiency. By combining speed, cost savings, and scalability, they address the Kingdom’s unique challenges: urbanization, high digital adoption, and demand for instant gratification.

Ghada Ismail

In recent years, Saudi Arabia has thrown open its doors to foreign entrepreneurs, promising 100% ownership, faster business licensing, and easier visa pathways. Backed by Vision 2030, these reforms aim to position the Kingdom as a startup magnet, especially as regional rivals compete for global talent and capital. While homegrown entrepreneurship is thriving, a growing number of foreign entrepreneurs are also seeing Saudi Arabia as a promising destination to launch startups. As traditional barriers fade and incentives increase, expats are stepping forward not just as contributors to the Saudi economy but as builders of entirely new ventures. But what exactly makes Saudi Arabia appealing to expatriate entrepreneurs, and what roadblocks still stand in their way?

Is It Easy for Expats to Start a Business in Saudi Arabia?

Starting a business as an expat in Saudi Arabia is more possible than ever, but it isn’t without challenges. On the upside, the government has rolled out a suite of reforms and incentives aimed at making the Kingdom an attractive launchpad for startups of all kinds. Startups led by foreign nationals can now apply for investment licenses without needing a Saudi partner, thanks to changes rolled out by the Ministry of Investment (MISA). The business visa process has also been simplified, with multi-entry options for founders and employees.

Entrepreneurial residency programs, such as the Special Talent and Premium Residency visas, offer an alternative to traditional work sponsorships. These permits provide greater mobility, the right to own property, and fewer employment restrictions—key incentives for global entrepreneurs considering Saudi Arabia as a base.

Opening the Door for Expat Founders: Premium Residency Options

Saudi Arabia’s evolving residency landscape is playing a crucial role in attracting global entrepreneurial talent. One standout initiative is the Premium Residency Program, which offers foreign professionals, investors, and startup founders the opportunity to live and work in the Kingdom with greater flexibility and fewer restrictions.

According to Monsha’at, the Premium Residency holders enjoy several key benefits, including the ability to own real estate, conduct business, invite family members, and move freely in and out of the country without a visa. Notably, they are exempt from expat fees and can transfer between employers without penalties—a significant shift from the older sponsorship-based system.

There are multiple tailored tracks under the program that cater to the needs of foreign entrepreneurs and investors:

Entrepreneur Residency is specifically designed for startup founders aiming to build and scale in Saudi Arabia. It allows entrepreneurs to nominate two team members for residency under the Special Talent category and exempts them from the Saudization quota (Nitaqat) for the first three years. Those who create 10 jobs in the first year and another 10 in the second can directly qualify for conditional permanent residency.

Investor Residency targets those looking to tap into the Kingdom’s booming economy and offers a streamlined path to long-term residency.

Other tracks like Special Talent, Gifted, and Real Estate Owner Residency further expand the program’s appeal, catering to scientists, artists, athletes, and property owners.

With both limited and unlimited duration options, the Premium Residency program is helping redefine what it means to be a foreign entrepreneur in Saudi Arabia, offering not just access but long-term stability and inclusion in the Kingdom’s ambitious development journey. 

On the policy side, recent changes have made it easier for non-Saudis to own 100% of their companies without the need for a local sponsor. Licensing procedures have been streamlined through platforms like “Meras” and “Monsha’at,” while the Ministry of Investment offers dedicated support for foreign investors looking to navigate regulations.

In the same context, foreign entrepreneurs can choose from several business structures based on their goals and industry, including:

Limited Liability Company (LLC)

Subsidiary of a Foreign Company

Joint Stock Company (JSC)

Regional Headquarters (RHQ)

Technical and Scientific Services Office (TSSO)

According to the Setup in Saudi website - a comprehensive digital platform designed to assist foreign entrepreneurs and businesses in establishing and growing their ventures within Saudi Arabia - each structure offers distinct benefits depending on the founder’s vision and operational needs, and consulting with a qualified business advisor or local incubator is highly recommended to navigate the legal and regulatory landscape smoothly.

Further, the Saudi Arabian General Investment Authority (SAGIA), now part of the Ministry of Investment (MISA), has made it possible for foreigners to obtain investment licenses within days, streamlining what used to be a more complicated process.

The Drawbacks:
However, barriers remain. Bureaucracy, though improving, can still be complex and time-consuming. Some expats face difficulties understanding regulatory updates, especially if they’re unfamiliar with Arabic or the local legal system. Moreover, competition in certain sectors—like food tech or logistics—has intensified, particularly from well-funded Saudi firms.

Cultural nuances also pose hurdles. Building trust with local partners or clients often requires deeper integration into Saudi business etiquette, which can be unfamiliar to newcomers. For many expats, establishing credibility and a reliable local network takes time—and often, patience.

Vision 2030 Impact:
Vision 2030, the Kingdom’s landmark transformation plan, explicitly encourages foreign participation in building a diversified, knowledge-based economy. The plan supports SMEs and startups through funding bodies like the Saudi Venture Capital Company (SVC), the Social Development Bank, and the Public Investment Fund (PIF).

Moreover, the Monsha’at SME Authority provides training, mentoring, and subsidized tools to early-stage founders—services which are increasingly accessible to expat entrepreneurs. Free zones and innovation hubs such as King Abdullah Economic City (KAEC), Neom’s Oxagon, and the Riyadh Techno Valley also offer regulatory and operational advantages to foreign-led ventures.

Real-Life Stories: Finding the Right Fit in Saudi Arabia

One compelling example of foreign expansion into Saudi Arabia comes from Waagner Biro Steel and Glass, an Austrian firm with over 165 years of engineering expertise, whose success story was narrated by the Setup in Saudi website. 

Known for high-profile projects across the Middle East, including the Floating Bridge and Al Noor Island Development in the UAE, the company recognized Saudi Arabia as the next logical step, both strategically and economically.

“We saw a market that’s simply too big to ignore,” said Jason Wilson, General Manager of Waagner Biro Steel and Glass. “The upcoming global events—like the 2029 Asian Winter Games and Expo 2030—are more than milestones. They are catalysts driving accelerated urban development.”

Motivated by the ambitions of Vision 2030 and the scale of infrastructure transformation underway, the firm partnered with expansion platform AstroLabs to navigate entry into the Saudi market. With local guidance, they were able to efficiently meet entry requirements, build the right relationships, and set up operations aligned with their long-term vision.

Wilson emphasizes that local engagement is key. “It takes face-to-face interaction. Don’t spend too much time developing remote strategies. Get on the ground. Meet suppliers. Assess capacities. The earlier you’re in, the sooner you adapt.”

Waagner Biro’s story underscores how established foreign companies, when supported by local networks and aligned with national priorities, can thrive in Saudi Arabia’s evolving economic landscape.

Challenges to Watch Out For

Despite the promising developments, launching a startup in Saudi Arabia as an expat is not without its friction points.

Legal and Licensing Complexities:
Even with streamlined procedures, licensing can still be nuanced depending on the sector. Certain activities require approvals from multiple agencies, and rules around foreign ownership can vary for industries deemed strategic or sensitive. Navigating these nuances often requires legal counsel or local advisors, adding to the cost and complexity.

Access to Capital:
While the venture capital scene is growing rapidly, access to funding for expat-led startups is still somewhat limited compared to those with Saudi founders or partnerships. Many local VCs prefer to back teams with a strong Saudi presence or deep local understanding. Establishing investor confidence as an outsider can be difficult unless paired with a compelling Saudi-market value proposition or a local co-founder.

Hiring and Retention:
Saudi Arabia’s labor laws and Saudization requirements—while not always applicable to early-stage ventures—can still affect long-term hiring plans. Many expat founders report challenges in finding the right mix of local and international talent, especially in niche tech or design roles.

Cultural and Consumer Fit:
Creating a product that resonates with Saudi consumers often requires an insider’s perspective. Foreign founders must take time to understand social norms, spending habits, and consumer expectations. What works in Western or Asian markets may not translate directly in the Kingdom.

Navigating the Ecosystem:
While support programs are abundant, knowing which doors to knock on isn’t always easy. Some expats report difficulty navigating the overlapping mandates of multiple government agencies or gaining visibility within local investor networks.

Conclusion & Future Outlook

Saudi Arabia is emerging as a serious contender on the global startup map, not just for Saudis, but increasingly for the world’s entrepreneurs. Its fast-growing market, government-backed funding, and ambitious economic diversification goals make it a fertile ground for innovation.

For expat founders, the opportunity is clear: access to a young and growing population, government support, and a hunger for new ideas. But success requires more than just a visa and a business plan. It takes cultural adaptability, regulatory know-how, and the ability to forge strong local partnerships.

As the Kingdom continues to open its doors to global talent, the next wave of startups will likely be built by teams that blend international experience with local insight. And for those willing to learn, adapt, and build with intention, Saudi Arabia may well be one of the most promising frontiers for entrepreneurship today.

Advice for Aspiring Expats:

• Do your homework. Understand the legal and market landscape before making the leap.
• Build local connections early. Having a Saudi partner, mentor, or advisor can be invaluable.
• Be patient but proactive. Things move quickly, but building trust takes time.
• Leverage the ecosystem. From incubators to grants, take full advantage of what’s available.

With the right mix of preparation and adaptability, expat founders can thrive and help shape the future of Saudi innovation.

Noha Gad

The loyalty program market in Saudi Arabia is poised for steady growth in the coming years, fueled by innovative product launches and businesses increasingly leveraging loyalty strategies to boost sales and revenue.

According to a recent report published on Research and Markets, one of the world’s largest research market stores, the Saudi loyalty market is projected to grow by 15.4% annually, reaching $842.5 million in 2025, with a CAGR of 13% from 2025–2029, propelling the market to $1.37 billion by 2029.

This growth reflects a transformative shift in the Kingdom’s loyalty landscape, driven by technological advancements, evolving consumer demands, and Vision 2030-aligned policies that incentivize digital innovation.

At the forefront of this evolution is Resal, a pioneer in redefining loyalty and rewards solutions. By offering cutting-edge digital platforms, Resal bridges merchants, businesses, and consumers through an expansive, seamless network.

To explore Resal’s role in shaping the future of the loyalty and rewards landscape in Saudi Arabia, Sharikat Mubasher held an interview with CEO Hatem Kameli to discuss industry trends, growth drivers, and the company’s vision for revolutionizing the sector.

How does Resal contribute to the growth of digital payments in Saudi Arabia, and what makes your services unique?

Resal plays a pivotal role in advancing digital payments in Saudi Arabia by offering innovative solutions in digital cards, rewards, and loyalty programs. Our platform empowers individuals, businesses, and merchants to maximize the benefits of digital value through seamless and exceptional experiences. 

What sets Resal apart is our commitment to providing effortless rewards, seamless payouts, and smarter loyalty solutions. By integrating cutting-edge technology, we ensure that our services are not only efficient but also tailored to meet the evolving needs of our users. 

What are the biggest challenges facing loyalty programs in the Kingdom, and how do you address them?

The current loyalty and rewards landscape is fragmented, causing inefficiencies for consumers, businesses, and merchants. Consumers struggle to manage and redeem scattered loyalty points; businesses lack efficient tools for rewards and payouts; and merchants face challenges in digitizing and monetizing programs.

Resal addresses these issues by offering a unified digital platform that:

● Empowers consumers to aggregate and use loyalty points across a broad network.

● Enables businesses to manage and distribute rewards and incentives seamlessly.

● Helps merchants issue and manage digital prepaid cards and loyalty programs, enhancing customer engagement.

With 1.5 million users, how does Resal plan to scale its alternative digital payment solutions?

Resal has successfully secured $9 million in Series A funding to expand our digital rewards in Saudi Arabia. This investment will be utilized to enhance our technological infrastructure, develop new products, and expand our services to a broader audience.

Our growth strategy includes targeting new sectors, launching various technological products for alternative payment solutions, and strengthening our partnerships to reach more users and businesses across the Kingdom.

How does Resal plan to maintain its lead in digital rewards and loyalty programs, both regionally and globally?

To maintain our leadership position, Resal focuses on continuous innovation and strategic partnerships. We are committed to developing scalable products and services that cater to the evolving needs of our users with different use cases.

Our vision includes expanding our presence in the Middle East and North Africa region, offering alternative payment solutions, and enhancing our loyalty programs to provide more value to our users.

How will Resal’s partnership with Grintafy revolutionize Saudi Arabia’s sports sector?

Resal's strategic partnership with Grintafy aims to empower players and the sports community by offering digital rewards and creating an interactive user experience that encourages continuous skill development. 

By integrating our digital rewards solutions with Grintafy's platform, we provide athletes with incentives that motivate them to improve their performance and engage more deeply with the sports community. This collaboration is set to transform the way athletes and sports enthusiasts interact with digital platforms in Saudi Arabia.

Beyond sports, what other sectors does Resal target for expansion?

Beyond sports, Resal is strategically expanding its presence across several high-growth sectors, notably entertainment and lifestyle. These industries are integral to everyday consumer engagement, and our solutions aim to elevate how users interact with brands through seamless digital rewards and gifting experiences.

Our goal is to become a leading platform in innovative payment and spend management across diverse lifestyle sectors, enriching how people connect with brands and services through intelligent, easy-to-use digital tools.

What trends do you see shaping the future of loyalty programs in Saudi Arabia?

The future of loyalty programs in Saudi Arabia is being shaped by several key trends:

● AI-Powered Personalization through Data Analytics: Leveraging artificial intelligence to deliver personalized rewards and experiences is becoming increasingly important in meeting consumer expectations.

● Rise of Coalition Loyalty Programs: There is an increasing trend towards coalition loyalty programs, where multiple brands collaborate to offer shared rewards. This approach provides customers with more versatile and valuable benefits, enhancing the overall appeal of loyalty programs.

● Experiential Rewards: Saudi consumers are increasingly valuing unique experiences over mere discounts. Loyalty programs are evolving to offer curated lifestyle experiences such as exclusive dining events, travel packages, and entertainment options, fostering deeper emotional connections with brands.

Resal is at the forefront of these trends, continuously innovating to provide loyalty solutions that align with the evolving preferences and values of consumers in Saudi Arabia.

Kholoud Hussein 

In the evolving dynamics of global entrepreneurship, the flow of capital, talent, and innovation is increasingly bridging emerging economies across continents. One of the most significant developments in this regard is Saudi Arabia’s strategic repositioning as the primary MENA gateway for African tech startups—a trend driven not by rhetoric, but by capital allocations, institutional reform, and regional opportunity alignment.

This transformation reflects the Kingdom’s broader shift under Vision 2030, which is steering the economy away from hydrocarbon dependency and toward a diversified, knowledge-driven model. In this model, the cross-pollination between African tech ecosystems and Saudi institutional frameworks presents unique, untapped upside.

Capital Flows: Saudi Arabia as the MENA VC Anchor

According to the 2024 annual report by MAGNiTT, Saudi Arabia captured over 40% of total MENA venture capital deployment, with approximately $750 million invested across 178 deals. This capital momentum is not only domestic—it is regionally magnetic. African tech startups are increasingly looking to Riyadh not just for financing, but for access to structured scale-up ecosystems.

In particular, startups from Nigeria, Kenya, Egypt, and South Africa—Africa’s “big four” in venture activity—are actively building bridges with Saudi VCs, accelerators, and sovereign funds.

Nabeel Koshak, CEO of the Saudi Venture Capital Company, noted: “Saudi Arabia’s emergence as a regional VC leader is not accidental. It is the result of well-orchestrated Vision 2030 policies that positioned the Kingdom as a scale-up launchpad for emerging market innovators.”

The increasing presence of Saudi investors in African seed and Series A rounds further confirms this trend. According to Partech Partners, African startups raised $2.9 billion in 2023, and Saudi entities participated in at least 18% of MENA-to-Africa cross-border deals—an uptick from just 6% two years earlier.

Infrastructure and Institutional Capacity: Building a Launchpad for Scale

Saudi Arabia is not merely offering capital—it is building the structural backbone for scale. The creation of tech-centric free zones, R&D parks, and advanced data centers under the purview of SDAIA (Saudi Data and AI Authority) underscores the government’s commitment to digital infrastructure as a comparative advantage.

Events like LEAP, the Kingdom’s flagship global tech conference, have become essential touchpoints for African startups seeking visibility, capital, and market access. In 2023, more than 16 Nigerian and Ghanaian startups exhibited at LEAP, while delegations from Egyptian incubators signed MOUs with Saudi accelerators such as Misk and Flat6Labs Riyadh.

These engagements are not symbolic. They are backed by a growing web of incentives: expedited business registration for foreign tech firms, streamlined visa processes for startup founders, and co-investment opportunities through sovereign programs like Jada and PIF’s Sanabil Investments.

Geographic and Strategic Alignment: Logistics Meets Market Proximity

Saudi Arabia’s emergence as a regional launchpad for African tech startups is not solely a function of capital or policy—it is deeply rooted in its geographic positioning and the strategic vision that leverages it.

Situated at the intersection of Africa, Asia, and Europe, the Kingdom occupies a location of immense logistical value. Major cities like Riyadh, Jeddah, and Dammam offer direct air and sea connectivity to over 40 countries within a 4–6 hour range, encompassing key markets such as Egypt, Kenya, the UAE, India, and Turkey. African tech founders are increasingly viewing this geographic centrality as a force multiplier, especially those operating in mobility, trade-tech, agri-supply chains, and cross-border fintech.

In practical terms, this translates into tangible operational and commercial advantages. For example, a Nigerian health logistics startup seeking to scale its diagnostic supply chain into the GCC can use Jeddah Islamic Port or King Abdullah Port as logistical hubs, reducing customs latency and last-mile costs in other Gulf states. Similarly, Kenya-based agritech companies looking to access northern Africa and the Levant can now tap into Saudi Free Economic Zones, which offer bonded warehousing and tariff incentives.

Saudi Arabia has capitalized on this advantage by investing heavily in logistics infrastructure. The National Transport and Logistics Strategy (NTLS), launched in 2021 and now in mid-implementation, aims to position the Kingdom among the top 10 global logistics hubs by 2030. To date, more than SAR 40 billion ($10.6 billion) has been allocated to the development of smart ports, rail connectivity, and logistics cities, such as the Logistics Zone at King Salman Energy Park (SPARK).

This is not just policy ambition—it’s being translated into practice. According to the General Authority for Ports (Mawani), container throughput in Saudi ports increased by 13% in 2024, largely due to demand from emerging regional trade routes that now include Sub-Saharan exporters.

“African startups, especially in trade, food security, and industrial tech, increasingly see Saudi Arabia as a bridge, not a wall, between fragmented markets,” said Mazen Al-Dawood, a logistics investor and board advisor to a regional agri-export group.

Al-Dawood added: “Our ports and supply corridors are not just serving domestic needs—they’re enabling intercontinental commerce.”

Further bolstering this position is the Kingdom’s growing investment in digital logistics platforms, many of which are open to African integrations. Local startups such as BARQ and Odiggo, operating in smart delivery and mobility logistics, have already begun forming commercial alliances with African peers, opening pathways for API-based services, AI-optimized routes, and payment settlement interoperability.

This strategic convergence of geography, infrastructure, and digital integration makes Saudi Arabia not just a node on the map, but an active facilitator of South-South trade flows and innovation pipelines. In this context, the Kingdom is evolving beyond a mere market destination to become a supply chain orchestrator for African ventures scaling into the Middle East and South Asia.

For founders and investors alike, the implications are clear: location is no longer passive—it is an economic enabler. And Saudi Arabia is now using its geography as a deliberate, monetizable asset to attract the next wave of globally scalable startups from Africa.

IV. Policy-Led Enablement: From Vision to Execution

Saudi Arabia’s transformation into a regional startup and innovation hub is underpinned not only by capital inflows and infrastructure, but more fundamentally by a deliberate, policy-driven framework designed to attract and retain high-growth ventures. The country’s ability to operationalize Vision 2030 through institutional reform and policy synchronization is what differentiates it from other regional players.

At the core of this policy architecture is the Ministry of Investment (MISA), which has reengineered foreign investment protocols to make market entry for non-Saudi tech companies significantly more seamless. Through fast-track licensing, streamlined regulatory pathways, and sector-specific incentives, the Ministry has become a single-window interface for global and regional startups—including those from Africa—looking to establish a footprint in the Kingdom.

Complementing this is the General Authority for Small and Medium Enterprises (Monsha’at), which plays a catalytic role in enabling international startups to access local capital, talent, and partnerships. Monsha’at has launched initiatives such as the Soft Landing Program, which provides African startups with subsidized access to office space, legal services, and mentorship during their entry phase.

Further, the implementation of the National Strategy for Data and Artificial Intelligence (NSDAI)—a multi-year framework developed by the Saudi Data and AI Authority (SDAIA)—has created one of the most forward-looking data governance ecosystems in the region. This is a key draw for African startups operating in healthtech, fintech, agritech, and AI-driven logistics, where data protection, interoperability, and compliance are critical.

As Esam Alwagait, Director of SDAIA, stated during the Future Investment Initiative, “We are building a data-first economy. Regulatory clarity and security are not negotiables—they are national imperatives. This is what responsible tech innovators are looking for.”

In parallel, the Saudi Central Bank (SAMA) has modernized its fintech licensing and sandbox frameworks, providing international startups—especially those in payments, neobanking, and insuretech—with a pathway to operate, test, and scale within a regulated environment. This is particularly beneficial for African fintechs aiming to export their solutions to the Gulf, where regulatory harmonization remains a key barrier.

These reforms are not purely administrative—they represent a philosophical shift in how Saudi Arabia views its private sector. By fostering a startup-first regulatory mindset, the Kingdom is moving from a gatekeeper model to an enabler model. The success of this shift is reflected in a marked increase in foreign-founded startups receiving funding from local VCs and accelerators.

According to a 2025 report from the Saudi Investment Promotion Center, 28% of startups that received early-stage funding in the Kingdom last year had at least one non-Saudi founder—a record figure and a signal of growing ecosystem openness.

The Road Ahead: Strategic Interdependence or Opportunistic Trend?

The question remains: will Saudi Arabia’s growing role as a MENA base for African startups develop into long-term economic interdependence, or is it a temporary capital arbitrage opportunity?

The answer likely lies in execution. If Saudi Arabia continues to blend financial liquidity, regulatory foresight, and infrastructural depth with regional engagement, the Kingdom could evolve into what Singapore is to Southeast Asia: a trusted, scale-efficient launchpad for cross-border innovation.

A Strategic Convergence, Not a Coincidence

Saudi Arabia is not accidentally becoming the gateway for African tech startups in MENA—it is designing itself to be. With a clear alignment of national vision, institutional capital, geographic leverage, and regional partnership strategies, the Kingdom is poised to become a launchpad for African innovation into larger markets.

In doing so, it is not just rewriting the rules of regional venture expansion—it is actively redrawing the map.

Ghada Ismail

In the fast-evolving world of fintech and Web3, new technologies are reshaping how we build, invest, and exchange value. Among the most talked-about innovations is tokenization, a powerful tool that’s opening up new revenue models, improving asset liquidity, and redefining ownership as we know it.

For startups exploring new ways to scale or tap into previously illiquid markets, tokenization offers more than just technical appeal, it represents a shift toward more inclusive, programmable finance. But what does it actually mean, and how does it work? Let’s break it down.

Tokenization is the process of digitally representing ownership rights to real-world or digital assets using blockchain technology. At its core, it involves creating cryptographic tokens that correspond to a specific asset, such as real estate, securities, commodities, or intellectual property, allowing these tokens to be securely transferred and traded on a decentralized network.

Unlike traditional records of ownership maintained by centralized institutions, tokenized assets are managed through smart contracts and distributed ledgers, ensuring transparency, immutability, and programmability. Tokenization enables assets to be fractionalized, making them more liquid and accessible to a broader range of participants.

How It Works

The tokenization process typically involves three main components:

1. The underlying asset – a tangible or intangible item with economic value.
2. A blockchain protocol – a decentralized network that records and verifies transactions.
3. The token – a digital unit that represents ownership rights or claims to the underlying asset.

For instance, a commercial property valued at $10 million can be tokenized into 100,000 tokens, with each token representing a 0.001% ownership stake. These tokens can then be issued, held in digital wallets, and traded on compliant secondary markets.

Smart contracts govern the rules of issuance, transferability, dividend distribution (if applicable), and compliance checks, removing the need for traditional intermediaries and manual processes.

Types of Tokens

Tokenized assets are commonly issued in one of two forms:

• Security Tokens – representing regulated financial instruments such as equity, debt, or funds. These are subject to securities laws and compliance protocols.
• Utility Tokens – granting access to a specific platform, service, or product, though not representing ownership in a legal sense.

The key distinction lies in their legal treatment and functional use. Tokenization platforms must ensure proper classification and adherence to jurisdictional regulations.

Benefits of Tokenization

Tokenization offers several significant advantages across industries:

• Improved liquidity: Fractional ownership enables smaller investments and increases the marketability of traditionally illiquid assets.
• Enhanced transparency: Blockchain provides an immutable audit trail for all transactions.
• Operational efficiency: Smart contracts reduce reliance on intermediaries and streamline settlement processes.
• 24/7 market access: Unlike traditional exchanges, tokenized assets can be traded around the clock.

These benefits are especially impactful in sectors like real estate, private equity, art investment, and structured finance, where asset transfers are often slow, opaque, and costly.

The Road Ahead

Tokenization is poised to play a foundational role in the future of finance. As legal frameworks, interoperability standards, and institutional adoption continue to evolve, tokenized markets are expected to unlock new forms of capital formation, cross-border trade, and financial inclusion.

In essence, tokenization is not just a technological advancement; it’s rather a re-architecture of ownership, with the potential to make global markets more efficient, accessible, and secure.

Kholoud Hussein 

In the landscape of modern entrepreneurship, scalability is not merely a byproduct of innovation—it is a strategic prerequisite. Investors, particularly those in venture capital, no longer assess startups solely on the basis of product-market fit or founding team credentials. Increasingly, they seek to evaluate a startup’s ability to scale efficiently and exponentially. This is where the Venture Scalability Quotient (VSQ) emerges as a critical framework.

What Is the Venture Scalability Quotient (VSQ)?

The Venture Scalability Quotient, or VSQ, is a composite metric designed to measure how inherently scalable a venture is. It assesses the structural capacity of a business model to grow rapidly with minimal increases in marginal cost. In essence, it quantifies a startup's potential to transition from a small, agile operation to a large-scale enterprise without proportionally increasing its resource inputs.

Unlike traditional growth metrics such as revenue run rate or user acquisition cost, VSQ focuses on the scalability mechanics embedded within the business model itself. It blends economic analysis, operational readiness, and market responsiveness into a single evaluative lens.

Components of VSQ: An Economic Perspective

From a professional economic standpoint, the VSQ can be broken down into several core variables:

1. Marginal Cost Dynamics
   A scalable venture typically exhibits declining marginal costs as output increases. The lower the cost to serve each additional customer, the higher the VSQ. This is especially relevant in SaaS, digital platforms, and AI-powered services.
2. Revenue Elasticity to Scale
   Ventures with strong pricing power or highly elastic revenue models (where income grows disproportionately relative to inputs) receive higher VSQ scores. For example, platform-based models such as marketplaces or APIs benefit from this elasticity.
3. Operational Leverage
   The degree to which fixed assets or automation can generate increasing returns. A startup with automated logistics or AI-enhanced customer service systems, for example, can grow with minimal added human capital.
4. Market Absorptive Capacity
   A venture’s ability to penetrate and scale within an addressable market. High VSQ ventures often operate in fragmented or underserved markets with low saturation and high growth potential.
5. Infrastructure Independence
   The extent to which a business can scale without requiring commensurate investments in physical infrastructure or regulatory clearance.

Why VSQ Matters in 2025 and Beyond

In today’s macroeconomic environment—defined by capital efficiency, rising interest rates, and investor caution—the VSQ is becoming more important than ever. Venture capital is no longer flowing freely. Investors are scrutinizing startups for scalability economics, not just vision.

Startups with high VSQ are viewed as lower-risk, high-upside bets. They require less capital to grow, demonstrate faster break-even trajectories, and often dominate their categories through operational superiority rather than just speed.

As Mohamed Alabbar, founder of Emaar and Noon, noted at a recent tech forum: “It is not just about growth anymore, it is about the efficiency of growth. That’s where the winners will separate themselves.”

How to Improve Your VSQ?

For startup founders and economic strategists, understanding and enhancing the Venture Scalability Quotient is no longer optional. Here are key approaches:

• Automate early: Invest in processes that reduce human dependency.
• Outsource non-core functions: Focus internal resources on differentiation.
• Use cloud-native architecture: Build flexible, low-cost infrastructure.
• Refine pricing models: Transition from fixed pricing to value-based pricing.
• Conduct market elasticity analysis: Test responsiveness to scaled offerings.

To conclude, the VSQ is not just a buzzword, it is a valuable metric that encapsulates the economic readiness of a venture to scale. In a capital-constrained environment where investors demand more with less, VSQ offers a structured, data-driven way to assess the feasibility of hypergrowth.

Founders who optimize for VSQ are not only more likely to attract investment, but also more likely to build enduring companies that scale sustainably and strategically.

Noha Gad 

In today's rapidly evolving financial landscape, around 4 billion people worldwide remain unprotected by traditional insurance systems. These individuals, including smallholder farmers, gig economy workers, low-income families, and micro-entrepreneurs, face daily vulnerabilities to health crises, climate disasters, and economic shocks with no safety net.

Microinsurance startups that leverage cutting-edge technology and innovative business models play a pivotal role in dismantling barriers to insurance access and making protection accessible and affordable for the underserved. By combining mobile platforms with bite-sized premiums, parametric triggers with instant payouts, and community-based models with AI-powered risk assessment, microinsurance startups are solving what was once considered “uninsurable.” 

The rise of microinsurance startups

The microinsurance revolution has gained unprecedented momentum over the past decade, fueled by a convergence of technological advancements, regulatory support, and glaring gaps in traditional insurance coverage.

The global informal economy, comprising 2 billion workers, represents the core market for microinsurance startups. Traditional insurers have long overlooked these populations due to perceived high risks and low profitability, leaving them vulnerable to financial shocks from medical emergencies, natural disasters, or equipment loss. Hence, microinsurance startups stepped into this void by designing products tailored to irregular incomes and localized risks. They leveraged mobile penetration to reach the unbanked, deploying alternative data for risk assessment and designing hyper-localized products.

Innovative models and technologies that reshape microinsurance

Microinsurance providers are revolutionizing distribution by meeting customers where they are. Mobile-based platforms allow policies to be purchased and managed via simple SMS or USSD codes, eliminating the need for physical branches and reducing administrative overhead.

Partnerships with non-financial entities, such as agricultural cooperatives, ride-hailing platforms, and mobile money operators, enable insurance to be seamlessly embedded into everyday transactions. Community-based agent networks further extend reach into rural areas, where trusted local representatives educate customers and facilitate sign-ups. These approaches collectively reduce customer acquisition costs by over 60%, making it viable to serve low-income populations.

Additionally, cutting-edge technologies are solving the cost barriers that once made microinsurance impractical. Artificial intelligence streamlines underwriting and claims processing, using alternative data to assess risk without traditional paperwork. IoT devices, from weather sensors to health monitors, provide real-time data to automate triggers and adjust coverage dynamically. Blockchain also introduces transparency, with smart contracts enabling instant, fraud-resistant payouts.

Key challenges facing microinsurance startups

• Low customer awareness and trust. Many low-income customers have never used insurance before and may distrust formal financial systems. Startups must invest heavily in financial literacy campaigns and transparent communication to explain policy benefits, terms, and claims processes.
• High operational costs. While technology helps reduce expenses, serving low-income markets still involves significant costs. Startups must strike a delicate balance between affordability for customers and sustainable unit economics.
• Regulatory and infrastructure barriers. Many insurance regulations were designed for traditional providers, making compliance difficult for innovative microinsurance models. Also, collecting premiums and disbursing claims efficiently represents another obstacle in regions with weak mobile banking infrastructure.
• Climate and economic volatility. Microinsurance often covers vulnerable populations facing heightened risks from climate change, economic instability, or health crises. Startups must carefully manage risk exposure, often relying on reinsurance or government partnerships to mitigate large-scale shocks.

The future of microinsurance startups 

In 2030, microinsurance is projected to protect over 1 billion previously excluded people, transforming risk management into a tool for empowerment rather than exclusion. Deeper technology integration, strategic partnerships, and evolving customer needs are expected to drive the next wave of microinsurance innovation. As smartphone penetration and digital payment systems expand globally, startups will increasingly leverage AI and big data to create hyper-personalized, dynamic policies, adjusting coverage and pricing in real time based on usage, health metrics, or environmental risks.

Finally, microinsurance startups are proving that financial protection is not just for the wealthy; it can be a lifeline for the underserved. By leveraging technology, creative distribution models, and customer-centric design, these innovators are turning insurance from a privilege into a universal safety net. While challenges remain in scaling sustainably, the sector’s potential is transformative: it empowers informal workers, smallholder farmers, and low-income communities to weather shocks, invest in their futures, and break cycles of poverty.

Noha Gad

The GCC region is undergoing a historic economic transformation, driven by visionary diversification strategies, technological adoption, and unprecedented cross-border collaboration. In this dynamic investment landscape, global investors seek both opportunities and expert guidance, the kind that comes from seasoned regional players.

Among these, Freedom International Group (FIG) positioned itself strategically in terms of building a system for managing many businesses and growing unicorns, with a proven track record of identifying and capitalizing on regional growth sectors, from infrastructure and renewable energy to venture capital and digital transformation.

In this regard, Sharikat Mubasher held an Interview with Chairman and CEO Narek Sirakanyan to know more about FIG's approach and how it contributes to the region's economic ambitions, as well as its regional expansion strategy.

What is FIG’s core investment philosophy, and how does it align with the economic visions of GCC countries?

At Freedom International Group (FIG), we identify high-growth opportunities in sectors that are critical to the future development of the GCC region. We particularly focus on healthcare, technology, and hospitality, as these areas align closely with the economic diversification strategies outlined in the Vision 2030 plans of countries like Saudi Arabia and the UAE. We believe in supporting transformative industries that contribute to long-term economic growth, innovation, and social impact. Our investments are guided by a commitment to sustainability and scalability, ensuring that we back ventures that can make a meaningful contribution to both regional economies and global markets. Our commitment is more than just financial; we are also bringing our expertise from France for our nutraceuticals, from Italy for our coffee, from the US for our IT, etc. We are coming with resources and real experts who will be developing and educating locals and passing on their core competencies. 

The group mentions 'growing unicorns' as a core focus. What specific metrics do you use to identify potential unicorns early?

To identify potential unicorns, we focus on a range of factors, including but not limited to market size, scalability, and innovation. The key criterium is that a unicorn must contribute to our existing ecosystem and help other mini unicorns to grow to a full-scale unicorn. The second criterium is to what extent we can disrupt the market we are entering through that acquisition or with a new product line with our innovative IT expertise to find a more efficient way to attract new customers.

For us, it's important to grow more than 25% per year on a stable, consistent basis. And we are analyzing if our existing customer base will be interested in the new company.

Project V, for instance, is an umbrella brand for health and beauty products produced in France and Switzerland. We offer over 40 products from the popular Classic Hit, Direct Hit, Junior Hit, and Beauty Hit lines. Project V creates innovative products that help people take care of their health and beauty, live a full life, and improve its quality. Project V is a great way for everyone to extend active longevity and become happy. We plan a 150 million Euros turnover in 2025, covering 25 countries, and these figures will double by 2030. Our products will grow in the same period from 100 to 150.

You recently opened a new office in the UAE. How do you plan to differentiate yourself against dominant local players in the region?

Our presence in the UAE is part of our broader strategy to strengthen our regional footprint. While there are many established players in the market, we differentiate ourselves by focusing on sectors that have the potential for high-value transformation, such as next-gen healthcare solutions and AI-driven technology. We are also committed to leveraging our international expertise to foster cross-border collaborations and bring global best practices to the local market. By focusing on these emerging sectors and delivering tailored solutions, we aim to carve out a unique position in the UAE market.

FIG has a presence in 19 countries, but not yet in Saudi Arabia. Is entering the Saudi market part of your growth strategy?

Yes, Saudi Arabia is certainly on our radar. The Kingdom is undergoing a major transformation under Vision 2030, and the opportunities in healthcare, technology, and tourism are vast. While we currently don’t have a physical presence in the market, we are actively monitoring investment opportunities and partnerships that align with our core areas of expertise. As the Kingdom continues its diversification efforts, we are exploring the right time and the best way to enter the market, ensuring that we contribute meaningfully to its ambitious goals. Some of our projects can perfectly suit the giga-projects that the MBS is building, and we will successfully integrate our nutraceuticals into those projects, with the Firstline to their giga malls, hotels and hospitality, etc. Firstline is a digital space where each business competes for existing and potential clients. For users, Firstline is a mobile app that makes it convenient to truly find the best spots in their town, to purchase at great prices, and to earn extra revenue, including on the purchases of their friends. The total investment in the project has already exceeded $7 million. The plan is, over the next 3 years, to scale the project in all 17 countries where the Freedom International Group investment holding is represented. We plan to reach 17 countries by 2026 with a turnover of 50 million dollars, and 45 countries in 2030 with an annual turnover of 200 million dollars. We will rapidly achieve 100,000 users and 5,000 businesses, and later evolve towards neuro-personalization with tailor-made content for each user.

How do you assess the GCC's overall competitiveness compared to other emerging markets you operate in?

The GCC is a highly competitive and dynamic region, with significant advantages in terms of infrastructure, access to capital, and strategic location. Compared to other emerging markets, the GCC benefits from stable governance, progressive regulatory frameworks, and a commitment to diversifying its economies. These factors make the region an attractive destination for investors and entrepreneurs. While other emerging markets also offer compelling opportunities, the GCC stands out due to its progressive approach to innovation and economic development. Personally, I found it easy to meet anyone; everyone is open and ready to listen to new ideas and projects, and is open and excited to take risks. This is something we believe differentiates the region. 

Dubai has long been the regional business hub. Do you see other GCC cities catching up in terms of investable infrastructure?

While Dubai remains a key business hub, we are seeing other GCC cities like Riyadh and Muscat making significant strides in terms of infrastructure and investment opportunities. For instance, Riyadh’s push to become a global tech and innovation center is gaining momentum, while Muscat is positioning itself as an emerging hub for tourism and hospitality. We see tremendous potential in these cities, and as FIG continues to expand, we are actively considering opportunities in these locations, which offer unique advantages for businesses and investors alike.

Saudi Arabia represents almost 50% of the GCC’s GDP. Does the pace of the Kingdom’s economic diversification align with global investors’ expectations?

The pace of Saudi Arabia’s economic diversification is impressive and aligns with the expectations of many global investors. The Kingdom’s ambitious Vision 2030 is reshaping the economy, focusing on key sectors such as renewable energy, technology, healthcare, and entertainment. This transformation is creating a wealth of new investment opportunities, and we are seeing increased interest from both regional and international investors. While challenges remain, particularly around implementation, the Kingdom’s commitment to opening up new markets and fostering innovation positions it well for future growth. As a global investor, we are confident that Saudi Arabia will continue to be a key player in the regional and global economy.

Ghada Ismail

Ever felt like investing is only for people in suits talking about markets over coffee in high-rise offices? Think again. Today, all it takes is a few riyals, a smartphone, and a bit of curiosity. Welcome to the world of micro-investing, where even SAR 5 can be the start of something big.

From students saving for future travels to young professionals building a financial cushion, Saudi youth are embracing a fresh way to grow their money. It’s smart, simple, and fits in your pocket (literally).

In an age where a few clicks can summon a ride, order a meal, or stream a movie, why shouldn't building wealth be just as effortless, especially for the next generation? For today’s youth, the concept of investing is no longer confined to Wall Street veterans or finance majors. With the rise of micro-investing platforms, even a teenager with a smartphone and a few spare riyals can begin planting the seeds of financial independence. As traditional barriers to entry crumble—high capital requirements, complex jargon, intimidating brokers—a new wave of digital tools is making investing accessible, educational, and even fun. In Saudi Arabia and beyond, young people are not just spending money; they're learning to grow it, one micro-investment at a time.

What’s Micro-Investing, Anyway?

Micro-investing is a financial strategy that allows individuals to invest small amounts of money, often as little as a few riyals or dollars, into stocks, Exchange-Traded Funds (ETFs), or other assets, typically through mobile apps. Unlike traditional investing, which often requires large sums and expert knowledge, micro-investing breaks down these barriers by enabling users to round up spare change from everyday purchases or make small, recurring contributions. Micro-investing lets users invest tiny amounts—think the spare change from your daily gahwa—into diversified portfolios. It's designed to be beginner-friendly, turning investing from something intimidating into a daily habit.

The goal isn’t to get rich overnight, but to build wealth gradually, develop smart financial habits, and make investing part of everyday life. For young people, it’s an easy entry point into the world of finance; low risk, low cost, and high potential for long-term learning and growth.

Who’s Leading the Way in Saudi Arabia?

The Kingdom’s fintech scene is buzzing with innovation, and micro-investing is quickly catching on. Here are a few players making it happen:

• Wahed Invest: A Shariah-compliant robo-advisor offering low minimum investments, perfect for beginners who want halal options.
• meem Digital Banking by Gulf International Bank: Digital banking meets investment access with an app tailored for the tech-savvy.
• Mal: A homegrown, SAMA-licensed platform designed to simplify investment for everyday Saudis. With a strong focus on Shariah compliance and financial education, it’s an ideal entry point for young users wanting to invest in line with their values.
• Raqamyah: While technically a peer-to-peer lending platform, Raqamyah opens the door for youth to invest in SMEs starting from SAR 1,000. It’s a more hands-on model, perfect for those eager to support local entrepreneurship while earning steady returns.
• Thndr (coming soon to KSA) – Already popular in Egypt for its zero-minimum investing and Gen Z-friendly interface, Thndr is eyeing Saudi expansion. Its accessible design and emphasis on financial literacy could make it a major player once it lands.

These platforms are bringing investing closer to the youth—on their terms, in their language, and through the devices they use daily.

Why the Buzz Among Youth?

• It’s Easy: Download an app, answer a few questions, and you’re in. No suits, no jargon.
• It’s Affordable: Start with pocket change instead of waiting to “have enough.”
• It Feels Good: Watching your money grow—even slowly—is addictive in the best way.
• It’s in Arabic: More platforms are catering to local culture and language, making the experience feel less foreign.

And let’s not forget the rise of Saudi financial influencers who are turning investing into snackable, relatable content on TikTok and Instagram.

But It's Not All Glamorous

Sure, it’s fun—but it’s not magic. Some misconceptions to clear up:

• Returns aren’t instant—this isn’t a shortcut to being rich.
• Risk still exists—even SAR 5 can go down in value.
• More Arabic-first tools are needed—some platforms still favor global interfaces and products.

However, awareness is growing, and regulators like SAMA and the CMA are moving fast to encourage innovation while protecting users.

Riyal by Riyal, You're Building a Habit

So, the next time you think investing is too complicated or too expensive, remember: your future portfolio might just start with that loose change sitting in your wallet. In a country driven by bold vision and youthful energy, micro-investing is your chance to turn small steps into big wins.

It’s not about becoming a millionaire overnight; it’s about becoming smarter with your money every day.
Why wait for “someday” when you can start with SAR 5 today?

Kholoud Hussein 

In the not-so-distant past, launching a billion-dollar startup required teams of engineers, layers of management, and years of grueling development cycles. But artificial intelligence is rewriting that playbook—and perhaps the entire logic of scale in tech entrepreneurship. Today, a single founder armed with advanced AI coding tools can realistically build and scale a company to unicorn status.

From Code to Company: What’s Changed?

AI-assisted development tools like GitHub Copilot, Replit Ghostwriter, and open-source models such as Code Llama and StarCoder have reduced the time and expertise needed to ship high-quality software. Tasks that once required entire departments—UI design, code debugging, documentation, even marketing content—can now be streamlined or automated using AI.

As a result, the cost of iteration has plummeted. A solo founder no longer needs a CTO, product manager, or even a full-stack engineer to test an idea, launch an MVP, or scale a product. The barrier to building has shifted from technical capability to imagination and execution.

Why It Matters for the Startup Ecosystem

This paradigm shift opens the door to a new kind of lean startup—hyper-efficient, AI-augmented, and capable of exponential growth without the traditional burn rate. Investors are taking note: seed rounds are increasingly funding one-person teams with bold visions and AI-native toolsets.

We're witnessing the early signs of what could be a profound restructuring of startup dynamics. The concept of "unicorns with skeleton crews" is no longer theoretical. AI not only democratizes access to tech development, but it also questions how many people are truly needed to build world-changing products.

Real-World Signals

In 2024, multiple startups reached multimillion-dollar valuations with teams of fewer than five people. One standout example is a solo founder in Europe who used open-source AI models and no-code platforms to build a SaaS company that now serves over 100,000 users, without a single hire.

Tech giants are also embracing this trend. Google and Meta are investing in AI agents and developer tools that could soon enable even more automation in software lifecycles, further pushing the limits of what a solo entrepreneur can achieve.

The Challenges Ahead

Of course, there are caveats. Scaling beyond product-market fit still requires human capital—customer service, sales, operations, and compliance. And with AI-generated code comes new risks: security vulnerabilities, ethical blind spots, and IP ambiguity.

But the trajectory is clear: AI is turning individuals into teams, and teams into outliers. What this means for employment in tech, organizational design, and investment strategies is yet to be fully understood, but the disruption is underway.

Finally, the one-person unicorn may not yet be mainstream, but it's fast becoming a symbol of what’s possible in the AI economy. As tools evolve and adoption accelerates, we’re entering an era where the limits of company building are no longer defined by headcount, but by vision, speed, and strategic use of artificial intelligence.

The billion-dollar startup of tomorrow might be built not by a hundred engineers, but by one founder and a constellation of AI copilots.

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.

Ghada Ismail

Imagine a world where your child can earn, save, and spend money digitally, without needing cash. What if they could manage their allowance, set savings goals, and even learn the basics of budgeting and investing, all while having fun? This is not a future vision but an emerging reality with fintech for kids. 

The fusion of financial technology and education is transforming the way children learn about money, and Saudi Arabia is at the forefront of this revolution. Through innovative digital platforms, kids in the Kingdom are becoming more financially aware at an early age, preparing them for a future that’s as digital as it is financially complex.

What is Fintech for Kids?

Fintech for kids refers to digital tools, apps, and platforms that allow children to engage with money management in a safe, controlled, and fun environment. These tools enable kids to:

• Manage virtual accounts.
• Track their spending.
• Set savings goals.
• Learn financial responsibility in a digital space.

Verity: Leading the Regional Movement

While Saudi startups are still exploring their entry into kid-focused fintech, regional pioneers like Verity are setting the tone.

Headquartered in the UAE, Verity is the first family banking and financial literacy app in the MENA region. It’s designed for children aged 8 to 18 and offers a fully integrated digital money experience under parental supervision.

Using the app, parents can set chores, send allowances, and monitor spending in real time. Kids get to track savings goals, manage their own budgets, and make purchases using a personalized prepaid Visa card.

Built in partnership with NymCard and Visa, Verity offers a unique combination of real financial access and gamified education, a concept that could thrive in the Saudi market, especially if localized with cultural and regulatory nuances in mind.

STC Pay – Family Cards (Bahrain)

STC Pay offers a "Family Cards" feature in Bahrain, allowing account holders to issue prepaid cards for family members, including children aged 8 to 17. These cards enable parents to transfer allowances, set spending limits, and track usage. While this feature is currently available in Bahrain, it is not yet offered in Saudi Arabia.

Egypt: A Regional Case Study in Youth Fintech

Neighboring Egypt has become an unlikely pioneer in kid-focused fintech, offering lessons and inspiration for Saudi innovators.

Masroofi
Egypt’s first e-wallet for children aged 5 to 15, Masroofi lets parents manage digital allowances and oversee spending through a secure app paired with a prepaid card. It’s a fully cashless system built for school-age children and their families.

Ingiz
A gamified money management platform, Ingiz collaborates with Mastercard to deliver smart spending tools and financial education to teenagers. The app includes missions and reward systems, encouraging kids to develop strong financial habits.

Mini Money
Created by AUC students, Mini Money uses interactive challenges to teach financial basics like budgeting and saving. It appeals to younger children and integrates with educational initiatives.

FinYology
An initiative by the Central Bank of Egypt and the Egyptian Banking Institute, FinYology introduces fintech and digital literacy at the school and university level, seeding the ecosystem from the ground up.

Together, these examples show how strategic support—whether from startups, banks, or regulators—can create real impact at scale.

Key Saudi Players in Fintech for Kids

1. Cashee – A Digital Banking App for Teens

Cashee is a mobile banking app tailored for kids and teens aged 6 to 18. It offers a free mobile app and a prepaid Visa card issued by Arab National Bank (ANB). The app allows parents to transfer money to their children, reward them for challenges, and set flexible spending controls. Cashee aims to empower youth to create better money habits through its platform.

2. ZakiPay – Kids Debit Card

ZakiPay provides a free kids debit card in Saudi Arabia, enabling children to make decisions about spending, saving, or donating money. This initiative encourages financial independence and responsibility from a young age.

The Benefits of Fintech for Kids in Saudi Arabia

Here’s how fintech for kids is benefiting the younger generation in the Kingdom:

• Early Financial Education:
  • Kids in Saudi Arabia are learning about budgeting, saving, and investing using interactive tools.
  • Platforms like Cashee and ZakiPay integrate learning with practical money management experience.
• Parental Control and Guidance:
  • Parents can monitor and set limits on their children’s spending and savings, ensuring financial education is guided and secure.
  • This fosters a sense of responsibility while maintaining a safe financial environment.
• Learning Through Digital Experiences:
  • Gamified features on kids' fintechs make financial learning fun and engaging.
  • Kids unlock rewards by achieving savings goals or completing financial challenges.
• Preparing for a Cashless Future:
  • As Saudi Arabia moves towards a cashless economy, fintech tools prepare kids for digital wallets and online payments.
  • These platforms offer practical experience with digital money, laying the foundation for a future where cash transactions are rare.

Challenges to Consider

While fintech for kids offers great potential, there are a few challenges that must be considered:

• Data Privacy and Security:
  • Protecting children’s personal and financial data is paramount. It’s essential that fintech companies comply with strict privacy regulations to ensure children’s information is safe.
• Supplementing Digital Education with Real-World Conversations:
  • While fintech tools provide valuable hands-on experience, they should not replace meaningful discussions about money at home.
  • Parents need to continue reinforcing the broader principles of financial responsibility alongside digital tools.

Conclusion: The Smartest Investment Starts Young

The future of money is digital, and it’s arriving faster than ever. But the real innovation lies in preparing the next generation to handle it.

Kid-focused fintech isn’t just a trend; it’s a long-term investment in economic literacy, family empowerment, and national progress. As Saudi Arabia nurtures a thriving fintech ecosystem, one thing is clear: raising financially smart kids today could be the Kingdom’s most valuable asset tomorrow.

Because in a world where money moves with a tap, teaching children how to manage it might just be the smartest move of all.

Kholoud Hussein 

In today’s fast-evolving digital landscape, change isn’t just inevitable — it’s accelerating. From artificial intelligence to blockchain, emerging technologies are disrupting entire industries, creating both opportunities and existential threats for businesses of all sizes. In Saudi Arabia, where Vision 2030 places innovation at the heart of economic transformation, the ability of businesses, particularly SMEs and startups, to adapt to technological change is a matter of survival and competitiveness.

So, how can business leaders ensure their projects are future-proof and resilient in the face of rapid technological shifts?

1. Adopt a “Digital-First” Mindset

The first step to future-readiness is cultural. Organizations must shift from viewing technology as an add-on to embracing it as a core strategic asset. This includes fostering a culture that encourages experimentation, agility, and digital fluency at all levels.

In Saudi Arabia, programs like Misk Innovation and Monsha’at are working to instill this mindset among startups and entrepreneurs. Businesses that proactively invest in upskilling their teams and integrating digital tools across operations are more likely to pivot effectively as technologies evolve.

2. Build Modular and Scalable Systems

Technological agility starts with infrastructure. Traditional legacy systems are costly to update and difficult to integrate with new technologies. Instead, companies should invest in modular, cloud-based solutions that can scale or pivot with minimal disruption.

For example, many SMEs in the Kingdom are migrating to SaaS (Software-as-a-Service) platforms for functions like HR, CRM, and inventory management. These systems are not only cost-effective but also allow seamless updates and integration with emerging technologies such as AI-powered analytics and automation tools.

3. Monitor Global and Local Tech Trends

One of the most effective ways to stay ahead of disruption is to actively monitor what’s coming. This means keeping an eye on global tech trends and tracking regulatory developments, such as Saudi Arabia’s National Strategy for Data and AI.

Conferences like LEAP and FII (Future Investment Initiative) provide vital exposure to emerging innovations and their potential implications across industries. Attending such forums — or following their outputs — is key to understanding where the market is heading and what adjustments your business might need.

4. Collaborate with Tech Ecosystems and Startups

Rather than building everything in-house, companies should consider partnerships with tech startups and R&D institutions. In Saudi Arabia, initiatives like KAUST Innovation Hub and STC’s InspireU accelerator are enabling businesses to co-develop or adopt cutting-edge solutions.

These collaborations not only speed up digital adoption but also provide early exposure to game-changing technologies, whether in logistics, fintech, healthtech, or cybersecurity.

5. Create a Continuous Innovation Loop

Being tech-ready isn’t about making one big investment but building systems that allow for ongoing iteration. This could mean allocating annual budgets for pilot projects, testing new tools in specific departments, or launching internal innovation labs.

Firms like Aramco and SABIC have institutionalized innovation through dedicated digital transformation offices. SMEs can replicate this by establishing cross-functional teams tasked with technology scouting and implementation.

Change-Readiness is a Competitive Advantage

In a region moving as rapidly as Saudi Arabia, where government policy, investment, and infrastructure are aligned toward digital transformation, businesses must prepare for change, not just react to it.

Future-ready businesses aren’t necessarily the largest or most well-funded; they are the most adaptable, informed, and willing to innovate. By investing in agility, strategic partnerships, and a digital-first mindset today, your business can be among those that thrive tomorrow, no matter how the tech landscape evolves.

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. 

Ghada Ismail

Imagine this: You walk into a café in Riyadh, place your order, and confirm payment with just a glance. Across Saudi Arabia, this once-futuristic scenario is rapidly becoming a reality as biometric authentication takes center stage in the fintech landscape. As security concerns rise and users demand faster, frictionless experiences, biometric solutions are proving to be the answer.

Saudi Arabia’s drive for secure and seamless digital experiences has made biometric authentication more than just a technological trend; it's now a national imperative. In an age of growing digital financial activity, especially among younger, mobile-first users, fintech companies are racing to integrate facial recognition, fingerprint scanning, and behavioral biometrics into their platforms to enhance user trust and meet evolving regulatory standards.

Types of Biometric Authentication Powering Saudi Fintech

As Saudi Arabia’s fintech sector accelerates its digital transformation, various biometric technologies are being deployed to secure transactions and enhance user experience. Here's a closer look at the most prominent types of biometric authentication shaping the future of digital identity in the Kingdom:

• Facial Recognition: Widely used in mobile banking apps and national ID verification platforms like ‘Nafath’, facial recognition analyzes unique facial features to confirm a user’s identity with just a glance.
• Hand Geometry: Less common in fintech, hand geometry systems measure the shape and size of a user’s hand, often used in physical access control in high-security financial institutions.
• Voice Recognition: Increasingly popular, especially in customer service applications, voice biometrics allow for voice-based logins and verification, offering a smoother, hands-free authentication process.
• Signature Recognition: Used in both digital and physical banking, signature recognition authenticates users based on the unique shape and pressure pattern of their signature, often applied for fraud detection and e-signature validation.
• Iris Recognition: Capturing unique patterns in a person’s iris, iris recognition is primarily used in government and border control but is being explored in high-security financial applications.
• AFIS (Automated Fingerprint Identification Systems): AFIS compares fingerprints against large-scale databases, commonly used by national ID systems and banks for quick, secure identity verification.
• Non-AFIS: These systems are used for one-to-one fingerprint verification, common in personal devices and point-of-sale terminals for consumer transactions.
• Other Emerging Methods: Behavioral biometrics (e.g., keystroke dynamics, mouse movement patterns), palm vein scanning, and heartbeat recognition are being explored as supplementary layers to enhance fintech security frameworks.

Key Statistics on Biometric Authentication in Saudi Fintech

• Biometrics Market Growth: Saudi Arabia's biometrics market was valued at USD 394 million in 2024 and is projected to reach USD 1.35 billion by 2033, growing at a CAGR of 14.7%. This growth is driven by the widespread use of smartphones and the integration of biometric authentication methods such as fingerprint recognition, facial recognition, and iris scanning into mobile platforms.
• Voice Biometrics Expansion: The voice biometrics market in Saudi Arabia reached USD 50 million in 2024 and is expected to grow to USD 220 million by 2033, with a CAGR of 18.9%. This expansion is fueled by government-led digital transformation initiatives, rising cybersecurity threats, and increasing mobile banking adoption.
• Biometric Payment Cards Adoption: The biometric payment cards market in Saudi Arabia generated USD 1.4 million in 2023 and is expected to reach USD 55.5 million by 2030, growing at a CAGR of 69.5% from 2024 to 2030. Credit cards were the largest revenue-generating card type in 2023 and are projected to remain the most lucrative segment during this forecast period.
• Passwordless Authentication Market: The passwordless authentication market in Saudi Arabia was valued at USD 278.7 million in 2024 and is projected to reach USD 828.9 million by 2030, growing at a CAGR of 19.4% from 2025 to 2030, reflecting rising demand for secure and user-friendly authentication solutions in the digital landscape.
• Unified National Access (Nafath): Saudi Arabia’s Unified National Access system, ‘Nafath’, has executed over 3 billion verification operations as of November 2024. This national digital identity system allows citizens and residents to access over 530 government and private platforms and applications with a single sign-on identity provider service.

Saudi Players Leading the Charge

• Al Rajhi Bank: One of the largest Islamic banks globally, Al Rajhi has integrated facial recognition into mobile banking for secure logins and transaction confirmations. The bank is also piloting voice recognition for customer service interactions, significantly reducing verification times.
• STC Pay: Saudi Arabia’s leading digital wallet has implemented biometric KYC (Know Your Customer) systems to streamline user onboarding and comply with Saudi Central Bank (SAMA) regulations. Facial and fingerprint recognition is used for faster account setup and secure access.
• Mozn: This Riyadh-based AI and data analytics startup, known for its digital identity and anti-fraud technologies, is exploring biometric authentication as part of its advanced fraud prevention solutions for fintech clients.

Beyond Banking: Everyday Applications

In Saudi Arabia’s expanding fintech ecosystem, biometric tools are being integrated beyond traditional banking services:

• Buy Now, Pay Later (BNPL) platforms like Tabby and Tamara are experimenting with biometric ID for credit risk assessment.
• Digital mortgage providers are considering retina and fingerprint scans for document validation and secure sign-offs.
• Mobile-first insurance apps are introducing biometric login for policy management and claims submissions.

Regulation & Privacy: Striking the Balance

As biometric authentication becomes increasingly embedded in Saudi Arabia’s fintech infrastructure, regulatory compliance and data privacy are of paramount importance. Central to this landscape is the Personal Data Protection Law (PDPL), enacted to safeguard personal information and ensure responsible data practices across all sectors, including fintech.

Under the PDPL, biometric data is classified as sensitive personal data, meaning it is subject to strict controls. Fintech companies must obtain explicit consent from users before collecting or processing biometric information, such as facial recognition, iris scans, or fingerprint data. The law mandates that this data be securely stored using encryption and can only be used for clearly defined, lawful purposes.

This regulatory framework is especially critical for fintech platforms that intersect with sensitive sectors like digital health, insurance, and government-linked financial services. Biometric features often double as identity verification mechanisms, and any misuse, data breach, or lack of transparency could undermine consumer trust and result in penalties.

To navigate this, local startups and financial institutions are investing in compliance frameworks, privacy-by-design systems, and data governance protocols that align with PDPL requirements while fostering innovation. The challenge lies in balancing privacy with innovation to support the growth of next-generation fintech solutions.

Pros and Cons of Biometric Authentication

As biometric authentication gains traction in Saudi Arabia’s fintech sector, it's important to consider both the benefits and the limitations.

Advantages:

• Enhanced Security: Biometric traits are unique and difficult to replicate, making them more secure than traditional passwords or PINs.
• User Convenience: Customers can access services quickly using facial recognition or fingerprint scans—no need to remember complex credentials.
• Fraud Reduction: Biometric systems reduce the risk of identity theft and unauthorized access by tying identity verification to biological features.
• Scalability: As mobile and digital banking rise, biometric systems can be seamlessly integrated across platforms, improving the overall customer experience.

Disadvantages:

• Privacy Concerns: Storing and processing sensitive biometric data raises privacy issues if not properly secured.
• False Positives/Negatives: No system is flawless; errors in recognition can lead to service denial or security breaches.
• Cost of Implementation: Deploying biometric systems requires advanced hardware, software, and infrastructure, which may be costly for smaller institutions.
• Data Breach Risk: Unlike passwords, biometric data cannot be changed if compromised, making data breaches particularly risky.

As the fintech sector matures, addressing these challenges through robust encryption, anonymization, and clear regulation will be crucial to building public trust and accelerating adoption.

Conclusion: Shaping the Future of Fintech with Biometric Authentication

Biometric authentication is poised to be a cornerstone of Saudi Arabia’s digital transformation, offering enhanced security and user convenience. As the fintech sector grows, balancing innovation with privacy and regulatory compliance will be essential.

For innovators, the challenge is to integrate cutting-edge technologies while respecting user rights. For regulators, it’s about evolving frameworks that keep pace with change. And for consumers, it’s about demanding transparency and control over personal data.

The future of fintech in Saudi Arabia will be defined by how we navigate these complexities—now is the time to lead with responsibility, security, and trust.

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.