Ghada Ismail

In the early stages of a startup, sales are rarely handled by a dedicated team. Instead, founders are often the first—and sometimes only—salespeople. This approach, known as founder-led sales, plays a critical role in shaping how a startup understands its market, refines its product, and builds early traction.

Founder-led sales refers to a model where the founder is directly responsible for selling the product or service. This typically includes pitching to customers, running demos, negotiating commercial terms, and closing the company’s first deals. While it may appear informal, founder-led sales is a deliberate and necessary phase for most early-stage startups.

Why founder-led sales is common in early-stage startups

Startups operate under conditions of uncertainty. Products are still evolving, customer segments are not fully defined, and pricing models are often being tested. In this environment, hiring a sales team too early can lead to misalignment and wasted resources.

Founder-led sales allow startups to:

• Leverage the founder’s deep understanding of the problem and solution
• Build trust with early customers who want to engage with decision-makers
• Adjust messaging and positioning quickly based on live feedback
• Validate assumptions before scaling commercial efforts

Early customers are not only buying a product. They are buying into a vision, and founders are best positioned to communicate that vision clearly.

How founder-led sales support product-market fit

One of the most important outcomes of founder-led sales is learning. Direct conversations with customers help founders understand what truly matters to buyers and where the product delivers the most value.

Through founder-led sales, startups can:

• Identify recurring pain points and unmet needs
• Understand why deals are won or lost
• Test pricing, packaging, and positioning
• Use customer feedback to shape the product roadmap

This process accelerates the journey toward product-market fit and reduces the risk of building solutions that lack real demand.

Where founder-led sales works best

Founder-led sales is especially effective in B2B startups, particularly those serving mid-market or enterprise customers. In these segments, purchasing decisions often involve multiple stakeholders and longer sales cycles, making credibility and trust essential.

It is most effective in:

• B2B and enterprise-focused startups
• Products that are new, technical, or complex
• Markets where relationships and long-term commitment matter

In such cases, founder involvement signals accountability and long-term intent.

When founders should transition away from sales

Founder-led sales is not a permanent model. As the startup matures, founders should begin translating their experience into repeatable processes that can be passed on to a dedicated sales team.

A transition becomes viable when:

• The ideal customer profile is clearly defined
• Sales messaging is consistent and repeatable
• Demand follows predictable patterns
• The founder can train others based on proven insights

Wrapping Things Up…

Founder-led sales is not a distraction from building a startup; it is a foundational phase that informs strategy, product development, and future growth. For early-stage startups, particularly in emerging ecosystems, founder-led sales provide the clarity and confidence needed to scale effectively. By staying close to customers early on, founders can build stronger businesses and better sales engines for the long term.

Ghada Ismail 

In the startup world, growth and scaling are often used interchangeably, but they are not the same. Understanding the difference can save founders time, money, and headaches, and help attract investors who care about leverage and efficiency.

Growth: Getting Bigger

Growing means increasing revenue while increasing resources roughly in proportion. More customers require more support. More features require more engineers. Revenue rises, but so do costs, headcount, and operational complexity. Growth is usually linear: a 40% revenue increase often comes with roughly 40% more expenses.

For early-stage startups, growth is necessary. You hire people to build the product, test features, and serve clients. You experiment with pricing, marketing, and distribution. It’s hands-on, manual, and resource-intensive, and that’s fine at this stage.

Scaling: Getting More Efficient

Scaling means increasing revenue significantly without a matching rise in costs. In other words: more output with minimal additional input. While growth is linear, scaling is exponential.

Scaling depends on leverage: repeatable processes, automation, and systems that allow serving more customers without proportionally increasing overhead. This is why tech and digital startups often scale faster: software, platforms, and automated processes can handle volume at near-zero marginal cost.

In short: growth makes your startup bigger; scaling makes it more efficient.

When to Grow vs When to Scale

Most startups should grow first, scale later.

Grow when:

• You’re building the product and learning from early users
• Your processes are manual or experimental
• You’re testing pricing, positioning, or marketing channels

Growth at this stage is about survival, validation, and assembling the machine.

Scale when:

• You have product-market fit and repeatable demand
• Operations can handle more volume without proportional cost
• Customer acquisition or revenue patterns are predictable

Scaling at the right time multiplies results without multiplying costs — unlocking higher margins and sustainable growth.

Risks of Confusing Growth and Scale

Scaling too early can lead to overspending, inefficient hires, and operational collapse before product-market fit.
Growing indefinitely without scaling leads to overstaffed teams, rising expenses, and stagnant margins, a business that can’t expand without proportional resource increases.

Understanding where your startup sits ensures smarter decisions and clearer communication with your team and investors.

Wrapping Things Up…

• Growth is about size; scaling is about efficiency.
• Startups grow first to validate and learn; they scale to multiply output and impact.
• Confusing the two can waste resources, slow progress, and frustrate teams.

The most successful founders don’t just aim to grow; they aim to scale at the right time, turning a validated product into a business that can expand rapidly, sustainably, and profitably.

Noha Gad

The entrepreneurship ecosystem is undergoing a profound transformation today, driven by the fast-evolving technological landscape. Traditionally, startups have been launched by visionary individuals or teams sharing complementary skills and a common goal. However, the rise of artificial intelligence (AI) is revolutionizing the future of business, introducing a new paradigm where AI can serve as a full-fledged co-founder alongside human entrepreneurs.

In 2025, several startups are naming AI tools, like GPT-4, Claude, and open-source large language models (LLMs), as co-founders, not just assistants. In many cases, these AI systems ideate, write code, draft pitch decks, analyze markets, and even engage with customers.

The integration of AI as a co-founder democratizes entrepreneurship by leveling the playing field, especially for solo founders or resource-constrained teams. It empowers innovators to accelerate product development, optimize business strategies, and reduce time-to-market, all while fostering smarter, data-driven growth. 

What is an AI co-founder?

An AI co-founder is not a robot CEO. It is typically an advanced AI system, often based on LLMs or custom-trained agents, that supports or drives major startup functions from day one. Unlike human co-founders, AI systems operate tirelessly without requiring salaries, breaks, or rest. They harness vast data, predictive analytics, and machine learning to offer real-time insights, automate complex tasks, and support critical decision-making. This transformative concept is quickly moving from futuristic speculation to practical reality, fundamentally redefining how startups are conceived, launched, and scaled.

What makes AI co-founders different from traditional AI tools is their ability to handle up to 80% of early-stage R&D work that usually takes a lot of time and resources from founders. They keep learning and adapting to a startup's specific needs, becoming more efficient and customized over time. Several factors set AI co-founders apart from regular AI assistants. These include:

• Strategic input: AI co-founders are not just implementing tasks; they propose product directions or market pivots.
• Continuous learning: they adapt to the startup’s data, goals, and team behavior.
• High Autonomy: AI co-founders operate without constant human oversight, having access to APIs, CRMs, design suites, code repositories, and more.

The impact of AI co-founders on the entrepreneurship ecosystem

AI co-founders play a pivotal role in transforming the startup landscape into a more inclusive, efficient environment where human creativity pairs with relentless computational power to drive sustainable growth and broader economic innovation. They significantly contribute to:

     -Democratizing access to entrepreneurship. They lower barriers for solo founders and underrepresented groups, providing expert-level support without the need for large teams or significant funding.

     -Accelerating innovation cycles. AI co-founders enable rapid execution of market research, product roadmaps, and strategy development, reducing weeks of work into minutes and accelerating innovation cycles across industries.

     -Enhancing cost efficiency. These founders foster cost efficiency and lean operations, as they automate repetitive tasks, allowing startups to iterate faster, manage risks through data-driven insights, and achieve quicker time-to-market.

Will AI replace human founders?

AI co-founders do not replace human creativity and leadership; instead, they complement them by automating repetitive and resource-intensive tasks. This partnership enables founders to focus on innovation, strategy, and cultivating the company’s culture. Additionally, AI co-founders complement human strengths through:

    -Automating administrative tasks, data analysis, and routine operations, allowing human founders to prioritize high-level strategy, creativity, and vision.

    -Handling operations without burnout, enabling humans to provide empathy, relationship-building, and ethical judgment, ultimately creating a symbiotic dynamic that enhances innovation and decision-making.

    -Enabling solo founders to achieve what once required full teams, but leadership and cultural nuance remain distinctly human.

    -Shifting hiring toward specialized roles by filling skill gaps, with human-AI collaboration yielding higher-quality solutions.

Finally, blending human ingenuity with machine intelligence can create more accessible, efficient, and innovative ecosystems. From democratizing startup formation and accelerating market entry to fostering symbiotic human-AI teams, these virtual partners empower founders to compete globally without traditional barriers. Entrepreneurs who embrace this collaboration will lead sustainable growth, navigating challenges like regulation and ethics to unlock unprecedented economic value.

Noha Gad

The dynamic process of establishing a new business venture involves a blend of creativity, risk-taking, and vision to create value and drive economic growth. Entrepreneurs often seek to disrupt existing markets by introducing brand-new solutions, and their efforts can lead to significant social and technological advancements. This mindset involves identifying opportunities, leading change, and managing risks to build sustainable enterprises that can scale and influence industries over time.

The growing interest in solo business ventures and startups is reshaping the entrepreneurial landscape as more individuals choose to launch businesses on their own, triggered by the desire for autonomy, flexibility, and direct control over their work and income. This surge reflects an ideal shift where people prefer manageable, passion-driven enterprises that they can operate independently rather than large, complex organizations. Hence, the solopreneur model emerged as an emphasis on self-reliance, direct responsibility, and often a lifestyle-oriented approach to business.

What is a solopreneur?

A solopreneur is an individual who owns, manages, and runs their business independently without the support of co-founders, partners, or full-time employees. They typically start their ventures with personal funds and maintain tight control over every aspect of operations, favoring stability and manageable growth.

Key characteristics of a solopreneur include versatility, as they perform multiple roles themselves; high accountability, as they are responsible for all decisions and outcomes; and resourcefulness, often working with limited resources and finding cost-effective solutions to sustain their business.

Unlike traditional business owners who build teams, solopreneurs typically operate on a smaller scale, focusing on manageable business models that align with their skills and lifestyle preferences.

Solopreneur vs. Entrepreneurs

Key differences between solopreneurs and entrepreneurs include their approach to business structure, growth goals, risk, and control.

*Business structure

Solopreneurs: act as both the founder and the employee who handles every aspect of the business. 

Entrepreneurs: focus on building and managing teams. They delegate responsibilities, hire specialists, and create systems that allow the business to operate independently.

*Growth goals

Solopreneurs: seek sustainable, manageable businesses that support their lifestyle and financial independence. They prioritize steady income and control over rapid growth

Entrepreneurs: aim for scale and long-term expansion, targeting market dominance, multiple revenue streams, and sometimes preparing for acquisitions or an eventual exit.

*Funding

Solopreneurs: They typically self-fund their ventures, bearing lower financial risk as their operations are smaller and less complex.

Entrepreneurs: They require substantial capital investment to cover payroll, infrastructure, and growth initiatives.

*Control

Solopreneurs: maintain complete control over every business decision

Entrepreneurs: share control with partners, investors, and employees by delegating authority to manage complex business functions.

*Business focus

Solopreneurs: focus on a single product or niche, maintaining simplicity and direct client relationships.

Entrepreneurs: handle multiple projects, markets, or product lines.

Pros and cons of being a solopreneur

Being a solopreneur comes with several notable advantages and disadvantages. Understanding these can help individuals decide if this path aligns with their personal goals, skills, and lifestyle preferences.

Pros:

• Full creative control over business vision, brand, and decision.
• Flexibility to set schedules and work from anywhere, supporting better work-life balance.
• Low overhead costs as the is no need to pay salaries or office rent.
• Ability to adapt rapidly to market changes and make quick decisions.
• Retain all profits.

Cons:

• High workload as they handle every aspect of the business. 
• Limited expertise outside core skills.
• Risk of isolation and loneliness due to lack of team interaction and collaboration.
• Bearing full financial and operational risks.

There are many factors that individuals must consider to decide which bath is right. This includes: personal goals and ambitions, risk tolerance, desire for control versus collaboration, and lifestyle preferences. Individuals who seek complete autonomy and manageable, lifestyle-friendly businesses may prefer solopreneurship, while those driven by growth, innovation, and building sizable enterprises with multiple stakeholders may find entrepreneurship more suitable. 

Finally, both solopreneurs and entrepreneurs play pivotal roles in the business ecosystem, and understanding their differences empowers you to forge a fulfilling and impactful journey in the world of business.

Noha Gad

The retail sector in Saudi Arabia is undergoing robust growth, driven by a digitally savvy young population, increasing consumer confidence, and shifting spending habits. According to a report published by the IMARC Group, the size of the e-commerce market in Saudi Arabia is projected to grow to $708.7 billion in 2033, showing a compound annual growth rate (CAGR) of 12.8% from 2025 to 2033. Additionally, experts anticipate that 75% of retail spending will come from Saudi youth by 2035. They also expected the Saudi e-commerce sector to grow significantly, with one in four retail transactions happening online.

The adoption of retail technology (retail tech) stands at the heart of this revolution. Saudi retailers rapidly embrace artificial intelligence (AI) for personalized marketing and demand forecasting, Internet of Things (IoT) solutions for smart inventory management, biometric authentication, mobile wallets, and other seamless payment options.

The retail tech market in Saudi Arabia is expected to achieve revenue of $7.2 billion by 2033, with a CAGR of 32.8% from 2025 to 2033, according to recent figures by the Grand View Horizon.

Digital transformation in the Saudi retail sector

Saudi Arabia is one of the most connected markets in the region, which fuels widespread adoption of digital retail technologies, driven by government initiative under Vision 2030 and evolving consumer expectations. Emerging technologies play a crucial role in revolutionizing the retail industry in Saudi Arabia. Most of the retail tech companies in Saudi Arabia harness AI for predictive analytics, personalized marketing, automated customer service through chatbots, and demand forecasting, ultimately enhancing operational efficiency and creating tailored shopping experiences. Also, IoT technologies are becoming integral, with smart shelves, digital signage, and interactive displays improving real-time inventory management and product visibility. 

Software-as-a-service (SaaS) solutions could support digital sales growth by enabling small and medium enterprises (SMEs) to digitize their operations, manage logistics, and accept online payments. Additionally, the rollout of 5G networks significantly enabled seamless integration of online and offline retail experiences, supporting omnichannel strategies that blend physical and digital interactions for consumers.

Together, these developments are transforming the retail industry in Saudi Arabia into a digitally empowered, consumer-centric ecosystem. 

The rise of B2B marketplaces

Business-to-Business (B2B) marketplaces in Saudi Arabia are rapidly emerging as vital platforms that transform traditional wholesale and procurement ecosystems. This transformation was driven by several factors, notably the integration of credit-scoring and invoice financing modules, the adoption of compliance tools, and the high penetration of mobile wallets.

The Saudi market encompasses key B2B marketplaces, such as Sary, one of the largest online B2B marketplaces for wholesale purchases; Ordo, a pioneering B2B platform focusing on the FMCG market; Lawazem, a one-stop shop for businesses to procure products directly from a network of suppliers; Farmi, a B2B online platform that connects Saudi farmers and SMEs to source and sell local farm products; Retailo, the leading B2B digital distribution company; and BRKZ, the pioneering B2B marketplace for building materials.

The ongoing rise of B2B marketplaces plays a pivotal role in transforming wholesale trade in the Kingdom, fostering increased efficiency, access to broader supplier networks, and enabling a more modern, digitally connected retail supply chain ecosystem.

Successful B2B marketplaces share several features that drive procurement efficiency, enhance buyer-supplier interactions, and support business growth. This includes:

• Leveraging AI and cloud-based technologies to automate sourcing, ordering, invoicing, and fulfillment processes, thereby reducing manual errors and improving order accuracy.
• Integrating with ERP and inventory management systems to enable real-time product availability, dynamic pricing, and personalized catalogues tailored to meet buyers’ needs.
• Embedding credit scoring algorithms to assess buyer creditworthiness instantly.
• Adhering to Saudi data protection and commercial regulations to secure document vaults and digital contract management features.
• Adopting mobile wallets and biometric authentication to enhance payment security and convenience. 

The rise of B2B marketplaces is pivotal to reducing supply chain fragmentation and procurement complexities in the Kingdom, as they streamline fragmented traditional supply chain networks by centralizing their interactions and automating procurement processes.

By enhancing transparency through verified supplier networks, B2B marketplaces mitigate risks associated with dealing with unknown vendors, ensuring product quality and contractual adherence, in addition to boosting confidence among buyers and sellers.

Additionally, B2B platforms incorporate ESG standards by promoting suppliers who follow sustainable practices and prioritize eco-friendly products; meanwhile, digital tools enable assessment of carbon footprints and resource efficiencies within supply chains.

Despite all these benefits, the B2B retail sector in Saudi Arabia still faces fragmented supplier bases characterized by inconsistent service levels and regional disparities. Compliance with evolving regulatory standards, such as data privacy laws and commercial auditing requirements, adds complexity for both platforms and users.

Ongoing investments are essential to sustain growth and scalability. Investments are crucial to upgrading digital infrastructure, including cloud computing, AI, and cybersecurity, ultimately enhancing platform capabilities to support advanced analytics and omnichannel integration. This will improve operational efficiency, reduce downtime, and increase adaptability to future market disruptions.

The future of B2B marketplaces in Saudi Arabia is promising, propelled by accelerating e-commerce growth and supportive government initiatives. This transformation will be triggered by key trends: the continued expansion of B2B marketplaces that convert fragmented wholesale supply chains into streamlined, automated ecosystems; the increasing importance of embedded financial services; enhanced digital payment integration; supply chain and logistics innovations; and the integration of ESG standards and sustainable procurement practices.

Eventually, the Saudi retail sector is at the forefront of a transformative journey fueled by rapid digital adoption and innovative B2B marketplaces. Sophisticated retail tech solutions are reshaping the traditional retail landscape into a dynamic, digitally native ecosystem. By addressing long-standing challenges such as supply chain fragmentation, compliance, and payment inefficiencies, digital transformation and modern B2B platforms are enhancing transparency, trust, and operational agility. 

Ghada Ismail

In startups, the original idea is rarely the winning one. Markets shift, customer needs evolve, and sometimes the product simply doesn’t click. The difference between failure and breakthrough often comes down to one thing: the ability to pivot.

A pivot isn’t about giving up. It’s about adjusting course to find what truly works. For founders, especially in fast-growing ecosystems like Saudi Arabia, knowing when and how to pivot can turn setbacks into opportunities and keep a startup alive long enough to thrive.

What Is a Pivot?

A pivot is not about tearing everything down and starting from scratch. It’s about keeping the vision intact while changing the route to get there. Think of it as a course correction rather than a restart.

Instagram is a classic example. Before becoming the photo-sharing giant we know today, it was a clunky app called Burbn that let users check into locations. The team noticed that people loved the photo feature more than anything else and decided to pivot around it. The rest is history.

When Should Startups Pivot?

The decision to pivot isn’t easy. Founders often wrestle with sunk costs and pride. But the market doesn’t lie. Common signals that it might be time include:

• No traction despite strong execution: The product works, but users aren’t sticking around.
• Customer behavior doesn’t match expectations: Feedback points to a different problem or need than originally targeted.
• High acquisition costs with low retention: You’re paying heavily to bring people in, but they don’t stay.
• Competitors gaining ground: A rival is growing faster with a different approach, forcing you to reconsider your model.

Listening carefully to customers and tracking metrics honestly will often reveal whether you’re on the wrong track.

Different Types of Pivots

Not all pivots look the same. Some involve small tweaks, others a major shift. A few common ones are:

• Product pivot: Focusing on one feature that resonates and dropping the rest.
• Market pivot: Targeting a new customer segment or geography.
• Revenue model pivot: Changing how you monetize—say, from subscriptions to transaction fees.
• Channel pivot: Finding new ways to reach customers, such as moving from offline distribution to digital-first.

Each requires discipline and clear communication with stakeholders, especially investors and employees.

How to Pivot Without Losing Focus

A pivot can feel like a setback if not framed well. But handled correctly, it can re-energize a startup. A few principles help:

• Protect the vision: Stay clear on the “why,” even if the “how” changes.
• Test before leaping: Run small experiments to validate the new direction before committing fully.
• Be transparent: Keep investors, team members, and early customers informed. Trust is easier to maintain when you bring people along for the ride.
• Maintain morale: Remind your team that adaptability is strength, not weakness.

Wrapping Things Up…

Startups don’t succeed by sticking rigidly to their first idea. They succeed by learning, adapting, and sometimes changing direction altogether. Pivoting isn’t a mark of failure—it’s often the very thing that unlocks growth.

For founders, the key is to treat pivoting not as a last resort but as part of the entrepreneurial journey. Because in the end, the startup that survives is the 

Noha Gad 

E-wallets have transformed the way people handle financial transactions as they provide a seamless and safe digital alternative to cash and physical cards. These wallets consolidate various payment methods, such as credit cards, debit cards, and bank accounts, into a single, user-friendly interface, offering users a convenient experience and enabling them to make purchases, transfer money, and manage finances swiftly through their smartphones or any other connected devices. This simplification of payments has significantly boosted consumer adoption worldwide, particularly in urban communities and developing economies where mobile connectivity is widespread.

The rise of e-wallets considerably contributed to reducing dependency on cash and traditional banking infrastructure, ultimately promoting financial inclusion, especially in regions with a large unbanked population. 

There are several types of e-wallets, each catering to different user needs and technological ecosystems. In this blog, we will dive deep into the five main types of e-wallets and how they meet the evolving needs of both businesses and end-users.

Types of e-wallets

Closed wallet

Closed wallets, also known as a power wallet, operate as a preloaded account used for specific products or services within a particular transaction, often linked to the issuer’s payment gateway. Businesses and organizations often issue closed wallets to their customers for making payments exclusively within their ecosystem. Users of a closed wallet can only use the stored funds to make transactions with the wallet’s issuer.

Semi-closed wallet

This type of wallet has a limited coverage area as it is accepted only within a specific network of merchants or service providers. Merchants must agree to partner with the issuer to accept payments from a semi-closed wallet.

The semi-closed wallets allow users to make transactions at various merchant outlets and enable peer-to-peer transfers; however, they cannot be used to withdraw cash or make payments outside the specified network.

Open wallet

Open wallets are offered by banks to be used for any type of transaction. Unlike closed and semi-closed wallets, this versatile digital payment tool allows users to store funds and transact across various merchants and platforms. Both sender and receiver must have the same application installed on their devices.

Open wallets offer convenience and flexibility, enabling users to make payments at any merchant accepting digital payments via that wallet.

Crypto wallet

Crypto wallets facilitate secure transactions using cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. They store public and private keys required for initiating transactions on the blockchain network. The public key serves as an address where others can send cryptocurrency, while the private key is used to securely access and manage the stored funds.

Crypto wallets can be software-based (online or offline by using a USB stick) or hardware wallets that store the keys offline for enhanced security. Hardware wallets, also known as cold wallets, provide an extra layer of security and safety.

Internet of Things (IoT) wallets

The IoT wallets enable transactions between interconnected devices within the IoT ecosystem, allowing devices to exchange value and authenticate transactions seamlessly and securely.

This type is pivotal for various use cases, such as smart meters that facilitate automated utility payments, connected vehicles that enable in-vehicle payments, and supply chain tracking where devices interact to validate and record transactions.

Integration of emerging technologies into e-wallets

In recent years, the integration of emerging technologies, such as virtual reality (VR) and artificial intelligence (AI), has further reshaped the capabilities and user experience of e-wallets. 

AI has played a pivotal role in transforming the capabilities and user experience of e-wallets. Integrating AI tools can enhance e-wallets' security, personalization, and operational efficiency.

AI can contribute to enhancing fraud detection and prevention, providing personalized offerings, and helping users identify saving opportunities by analyzing their expenses. AI agents, virtual assistants, and chatbots are instrumental in elevating customer experience by providing 24/7 support, instantly answering queries, troubleshooting common issues, and guiding users through payment processes.

VR emerged as an innovative trend that enriches the retail and payment experience through an immersive digital environment. These technologies enable users to visualize products in virtual space and make instant purchases through their e-wallets without leaving the experience. 

VR can transform traditional e-wallet interfaces into interactive and visually rich experiences, making money management, bill payments, or fund transfers more engaging and less transactional.

Finally, e-wallets have revolutionized how consumers manage their financial transactions, offering a convenient and secure alternative to traditional cash and cards. By consolidating multiple payment methods into a single digital platform, e-wallets simplify payments and enable seamless money transfers, purchases, and financial management across diverse devices.

The integration of AI and VR into e-wallets can revolutionize social commerce and peer-to-peer payments within virtual worlds and redefine how consumers interact with e-wallets, blending convenience, security, and immersive experiences in the digital economy.

Ghada Ismail

Saudi Arabia, a nation with a historically strong savings culture but a relatively nascent public investing scene, is witnessing an undeniable shift. Propelled by the forces of Vision 2030, an overwhelmingly young and digital-native population, and a post-pandemic surge in financial literacy, automated investment platforms are breaking down the barriers to wealth management. They are offering a new generation of Saudis an accessible, affordable, and Sharia-compliant path to grow their wealth, fundamentally democratizing finance in the world’s largest oil exporter.

 Investment advice is now landing in the pockets of everyday citizens, delivered not by suited advisers, but by algorithms running on smartphones. What was once a fringe experiment in global finance has begun to carve out a place in the Kingdom’s financial landscape, marrying cutting-edge technology with a youthful, digitally fluent population. Robo-advisory is changing how Saudis imagine their financial futures: more automated, more accessible, and more aligned with local values.

What is a Robo-Advisor?

A robo-advisor is, at its core, an automated platform that provides algorithm-driven financial planning and investment management with minimal human supervision. A user answers a series of questions about their financial goals, risk tolerance, and time horizon. The algorithm then constructs and manages a diversified portfolio of exchange-traded funds (ETFs) tailored to that individual.

However, in Saudi Arabia, the algorithm must do more. It must be confined to Sharia.

The demand for Sharia-compliant investing is not a niche preference; it is a foundational requirement for the vast majority of local investors. This means the algorithms powering Saudi robo-advisors are intricately coded with specific filters. They automatically screen out companies involved in prohibited (haram) activities, such as alcohol, gambling, and conventional banking (interest-based), among others. Furthermore, they perform rigorous financial ratio analysis to ensure companies do not hold excessive debt or derive significant income from interest.

A Market Built in the Lab: Where Regulation Meets Innovation

This shift didn’t happen by accident. At the center of it is the Capital Market Authority’s FinTech Lab, a regulatory sandbox where new ideas are allowed to grow under careful watch. Here, start-ups and banks alike are testing automated portfolio-management tools with time-limited permits. The goal? To make sure investors are protected, risks are mapped, and systems are transparent before a permanent license is granted.

The approach has worked. Today, companies that once operated under experimental conditions have graduated into fully licensed capital-market institutions, cleared to advise, manage, arrange, and even hold assets. By releasing regular bulletins and tracking everything from assets under management to user demographics, the CMA ensures this growth is not just fast, but also safe.

Open Banking & Digital Adoption: Fueling the Engine

Robo-advisory thrives on data: income flows, spending habits, savings goals. Saudi Arabia’s embrace of Open Banking—first through account information sharing, then payment initiation—has created the perfect rails for these platforms to operate. With APIs powering seamless onboarding and automatic contributions, investing has become as effortless as setting up a direct debit.

This is layered on top of a society already primed for digital adoption. Mobile banking, e-wallets, and instant payments are part of everyday life. Smartphone penetration is near-universal. For a young population that already lives online, a robo-advisor isn’t a foreign tool, but a natural extension of their digital routines.

Who’s Leading the Charge?

Behind the buzz, a few names stand out as the architects of Saudi, regional, and global robo-advisory:

• Malaa Technologies: Founded in 2021, Malaa Technologies is a Saudi robo-advisory platform licensed by SAMA. It offers Sharia-compliant portfolios built from ETFs covering U.S. stocks, Saudi stocks, gold, and bonds, with investment entry starting at SAR 1,000. The platform uses algorithms to match portfolios to each investor’s risk profile, charges low fees of 0.35% only upon withdrawal, and even handles Zakat calculations. Beyond investments, Malaa also provides expense-tracking tools and plans to expand into financing services.
• SNB Capital, part of Saudi National Bank, which has built goal-based advisory services directly into customer accounts, allowing wealth to grow almost on autopilot. Back in 2023, SNB took a leading step in digital wealth management with the launch of its Idikhari robo-advisory program, designed to make investment more accessible to everyday users. The platform uses automated financial planning tools to create personalized portfolios based on an individual’s risk profile, goals, and time horizon, while keeping the process simple and Shariah-compliant. By integrating advanced algorithms with SNB’s banking ecosystem, Idikhari not only lowers barriers to entry for first-time investors but also supports the Kingdom’s Vision 2030 agenda of boosting financial literacy and expanding participation in capital markets.
• Derayah Financial, a homegrown pioneer, whose “Derayah Smart” platform offers Shariah-compliant portfolios with transparent fees and low entry barriers. Derayah Smart is one of the Kingdom’s earliest homegrown robo-advisory platforms, aimed at simplifying investment for both beginners and experienced investors. The service provides automated portfolio management by assessing clients’ financial goals and risk appetite, then allocating assets across global markets through diversified exchange-traded funds (ETFs). With a fully digital onboarding process and low entry requirements, Derayah Smart has helped broaden access to investment opportunities in Saudi Arabia, positioning itself as a key player in the country’s growing fintech-driven wealth management space.
• Founded in 2021, Drahim is a Saudi robo-advisor licensed by both SAMA and the CMA. It offers ten Sharia-compliant portfolios spanning sukuk, real estate, and Saudi and global stocks, with a minimum investment of SAR 1,000. Fees start at 0.25% annually, and investors can track all accounts and assets through the app, which also provides detailed financial reports.
• Abyan Capital is a Saudi robo-advisor also founded in 2021 and licensed by the CMA with a focus on long-term savings and retirement planning. It quickly grew to manage over SAR 500 million in its first year and offers three Sharia-compliant portfolios across stocks, real estate, and sukuk, primarily via ETFs. Investors can start with SAR 1,000, with a 1% annual management fee, and enjoy flexible deposits and withdrawals.
• Sarwa, the UAE-born fintech operating under a CMA permit, targets millennials with low-cost, diversified portfolios. Sarwa, which officially launched its robo-advisory platform in February 2018 under the Dubai Financial Services Authority’s Innovation Testing License, presented itself as the region’s first regulated automated investment advisor. The platform combines automated investing with human financial advice, offering diversified portfolios built with low-cost ETFs and tailored to individual risk profiles. With features such as zero-commission trading, fractional shares, and Shariah-compliant investment options, Sarwa has positioned itself as both accessible and innovative, attracting thousands of young professionals seeking simple, affordable ways to grow their wealth. Its cross-border presence also makes it a benchmark for how robo-advisory can scale across the wider MENA region.
• Tamra Capital, licensed by the Capital Market Authority, is a leading UAE-based robo-advisory firm by assets under management. Its platform offers Sharia-compliant ETFs and simplifies access to local and international funds, publishing AUM and subscriber data quarterly through the CMA.
• Vault Wealth, the UAE’s first digital private wealth app for high-net-worth individuals, blends robo-advisory with human expertise. It offers global portfolios of equities, bonds, and private markets, alongside a high-yield cash solution. Partnered with Interactive Brokers for custody, Vault also provides Sharia-compliant portfolios of equities and sukuk for ethical investors.
• Wahed Invest, a global halal robo-advisor already familiar to Muslim investors worldwide, is bringing faith-aligned investing into Saudi homes. The platform, widely recognized as the world’s first Shariah-compliant robo-advisor, has steadily grown its presence across key markets. Founded in 2015 and launching its service in the U.S. in 2017, Wahed secured a pivotal US$25 million funding round in June 2020—led by Saudi Aramco Entrepreneurship Ventures (Wa’ed)—to support its global expansion and establish a dedicated subsidiary in Saudi Arabia following regulatory approval from the CMA

Demand Side Momentum: Culture, Demographics, and Behavior

Several cultural and demographic forces are driving robo-advisory into the mainstream.

The fintech explosion is one. By 2023, Saudi Arabia had nine active robo-advisory platforms, and their growth has been breathtaking. Assets under management leapt 354% in a single year, from SAR 308 million to SAR 1.4 billion. Investors flocked in, nearly half a million of them by 2023, pushing regular, automated investments up by an astonishing 568%.

The youth factor is another. More than three-quarters of robo users fall between the ages of 20 and 40, with Riyadh, Makkah, and the Eastern Province leading adoption. This is a generation that’s digitally native, comfortable with risk, and eager for transparent, low-friction ways to build wealth.

Finally, the numbers suggest this is no passing fad. Statista projects Saudi robo-advisory assets to top US $4.29 billion by 2025, rising to over US $5 billion by 2029. Ken Research even forecasts a compound annual growth rate of nearly 48%, underlining the sheer velocity of adoption.

The Saudi Take on Robo-Advisory: Faith-Aligned, Goal-Oriented, and Hyper-Local

Saudi robo-advisors are not carbon copies of their Western counterparts. Two features set them apart.

First is Shariah compliance. Every portfolio is rigorously screened to exclude prohibited instruments or non-interest-bearing products, no non-compliant equities. Many platforms even publish endorsements from Shariah boards, ensuring investor trust.

Second is a goal-based approach. Rather than focusing on abstract benchmarks, platforms guide users through tangible milestones: saving for a wedding, buying a home, funding a child’s education, or planning retirement. Dashboards, auto-funding schedules, and risk alerts help keep users anchored to real-life aspirations.

Innovation on the Horizon

Looking ahead, Saudi robo-advisory is expected to branch into new directions. Artificial intelligence will drive personalization, tailoring portfolios to behavior and life stage. Hybrid models will blend algorithms with human advisors, catering to more complex needs such as estate planning. ESG and sustainability-focused portfolios are also on the horizon, meeting a growing demand for values-based investing. And with embedded finance, robo-advisors may soon be integrated into banking apps, e-wallets, or even telecom platforms like STC Pay, broadening reach even further.

Balancing Innovation with Investor Protection

Yet the path is not without hurdles. Regulators are pressing for more transparency around how algorithms work, how fees are charged, and how risks are communicated. Investor education campaigns are being rolled out to ensure that first-time users understand what they are signing up for.

Risks remain. Algorithms can be opaque, leaving users confused during market swings. Poorly designed questionnaires can misclassify risk tolerance, producing portfolios that don’t match real-life temperament. And because automation is so convenient, some investors disengage altogether, missing out on adjustments that require human judgment.

Competition adds another layer. With low switching costs, platforms must continuously innovate or risk losing clients to rivals.

Looking Toward 2030

By the end of this decade, success for Saudi robo-advisory will be measured not just in numbers, but in trust and resilience. It will be about how deeply retail investors are engaged, how well returns are delivered net of fees, and how faithfully Shariah compliance and transparency are upheld. Most of all, it will be about whether Saudi citizens continue to see these platforms not as novelties, but as reliable partners in building their financial futures.

Conclusion: A Saudi-Engineered Wealth Revolution

Robo-advisory in Saudi Arabia is more than a fintech trend; it is a deliberate instrument of national transformation. It brings together youthful demographics, Islamic investment values, regulatory foresight, and digital infrastructure into a uniquely Saudi model of wealth automation. What began as experimentation in a regulatory sandbox now stands ready to redefine how an entire nation saves, invests, and grows. The future of investing in the Kingdom is not just digital. It is algorithmic, values-driven, and unmistakably Saudi.

Noha Gad 

The e-commerce sector in Saudi Arabia has witnessed rapid and transformative growth over the past years, backed by government policies and reforms, rising internet penetration, and the increasing demand for online shopping and electronic payments. According to recent figures by the Small and Medium Enterprises General Authority (Monsha’at), the total number of active e-commerce registrations recorded 41,322 by the end of the first quarter (Q1) of 2025, marking a 6% year-on-year (YoY) increase.

The e-commerce sector emerged as a key pillar of the Saudi Vision 2030’s goals of enhancing the national economy and reinforcing the Kingdom’s position among the world’s top 10 countries leading e-commerce growth. The total number of existing e-commerce registrations surpassed 39,300 in Q2-15, according to the latest report released by the Ministry of Commerce.

The e-commerce market in Saudi Arabia is projected to reach $24.1 billion in 2029, with a compound annual growth rate (CAGR) of 9.91% during the period from 2025 to 2029, according to Statista, the global data and business intelligence platform. Another report published on the Research and Markets platform, the world’s largest market research store, expected this promising sector to hit $689 billion by the end of 2033, with a CAGR of 12.1% from 2025-2033.

As consumers are shifting towards online shopping due to convenience and competitive pricing, dropshipping has emerged as a cost-effective and scalable business model that enables businesses, notably small and medium-sized enterprises (SMEs), to enter the market.

What is dropshipping?

Dropshipping, or direct shipping, is a fulfillment model that allows entrepreneurs and e-commerce businesses to outsource the processes of procuring, storing, and shipping products to a third party, typically a supplier. This fulfillment model commonly appeals to entrepreneurs seeking efficiency and low overhead. It enables the retailer to forward the order details to a third-party supplier, such as a manufacturer, wholesaler, or distributor, who then handles the packaging and ships the product directly to the customer. This means that the retailer acts as a middleman, selling products without ever physically handling them.

Traditionally, retailers need to buy products in bulk, store them, and take care of shipping logistics, which requires significant capital and operational resources. Dropshipping removes these barriers by allowing online sellers to focus primarily on marketing and customer service while the supplier manages fulfillment.

How to start your dropshipping business in Saudi Arabia?

The very first step to start your dropshipping business is to choose the products you want to sell in your online store. You can select products from a supplier or a manufacturer, based on your niche and target audience.

Company formation and commercial registrations. In this step, you have to obtain your commercial registration (CR) and select the correct legal structure, whether it is a sole proprietorship, LLC, or an establishment. You must also register your business with the Zakat, Tax, and Customs Authority (ZATCA) for VAT compliance. 

To set up your online store or platform, you have to conduct a comprehensive feasibility study and market research to assess demand trends for your product niches in the Saudi market, competition benchmarks and pricing analysis, customer segmentation and social media targeting, fulfillment timelines, and supplier reliability, in addition to profitability projections under different growth scenarios.

After obtaining all required documents and finishing the market research, you have to find a reliable supplier to get quality products at competitive prices. Now, you can list products on your online store, using product descriptions and images provided by the supplier to create product listings. You will need to integrate local payment gateways, such as SDAD, Mada, and other popular payment solutions in Saudi Arabia, into your platform 

Pros and Cons of a dropshipping business

The dropshipping business model offers various benefits for entrepreneurs, notably:

• Overhead costs: You do not need a huge capital to start. Dropshipping has the potential to lower overhead costs, including maintaining a storage facility or sending products to customers. 
• Starting costs: Entrepreneurs looking to start a business with minimal investment choose dropshipping as they do not need to invest in facilities or resources to process orders.
• Reduced risks: dropshipping offers less risk of losing money due to lost merchandise or over-ordering products since the stock is kept at the suppliers’ warehouse.
• Operating location: You can fulfill orders regardless of your operating location, opening up a possibility to work from anywhere.
• Product variety: Dropshipping enables you to sell a broad range of items and increase your earning potential.
• Flexibility and scalability: this business model allows you to test different goods to see what sells best, without worrying about losing your investment. It also enables you to accept more orders without increasing the inventory you store, package, and ship.

Although the dropshipping model provides various benefits, it comes with several disadvantages, including:

• Limited control over product quality, which may lead to poor customer satisfaction.
• High competition and market saturation make it difficult to maintain profit margins.
• Heavy reliance on suppliers for inventory availability, fulfillment, and accuracy.
• Challenges in managing returns and refunds, especially with multiple or international suppliers

With key players such as Salla, Zid, and Dukakeen, the dropshipping business model can boost the e-commerce industry in Saudi Arabia through multiple mechanisms. This includes reducing entry barriers for entrepreneurs, increasing product variety, and supporting scalability, capitalizing on the Kingdom’s massive investment in digital infrastructure and entrepreneurship.

Finally, the emergence of the dropshipping model further highlights the flexibility and inclusiveness of the Saudi e-commerce sector. By enabling businesses of all sizes to reach customers efficiently, it helps diversify product offerings and accelerates market entry, reinforcing the Kingdom’s role as a leader in e-commerce transformation. Although this model presents operational challenges, its capacity to foster entrepreneurship and lower barriers makes it integral to Saudi Arabia’s ambitious plans for development and digital progress.

Looking ahead, continued advancement in payment infrastructure, logistics, and technology will only serve to strengthen the Kingdom’s competitive edge in global e-commerce.

Ghada Ismail

If you’re building a startup, you’re probably focused on growth. Watching your user numbers tick up, getting excited about new downloads, seeing traffic rise—it feels good. But here’s the thing most founders overlook: growth doesn’t matter if people don’t stick around.

You spend time and money getting people to try your product. But what if they quietly disappear after a week or two? No complaints. No goodbye. Just... gone. That silent exit? That’s called churn.

For early-stage startups—especially those with subscription models or digital platforms—retention matters as much as acquisition, maybe even more. But too many teams fall into the trap of chasing new users without realizing their existing ones are slipping away.

This is why understanding your churn rate is so important. It’s not just something your growth lead or investor should care about. It’s a core signal about whether your product is delivering real, lasting value.

Let’s break down what churn rate actually means, how to calculate it, and what you can do to improve it.

What Is Churn Rate?

Churn rate is the percentage of users or customers who stop using your product over a certain time period.

Here’s a simple way to calculate it:

Churn Rate = (Customers Who Left ÷ Customers You Had at the Start) × 100

Example:

Let’s say you started the month with 100 customers. By the end of the month, 8 of them stopped using your product.

Churn Rate: (8÷100)×100=8%

That’s your monthly churn rate: 8%.

Why Churn Rate Matters for Startups

1. Acquiring Users Is Expensive

You’ve spent money on ads, time on outreach, maybe even given away discounts. When a customer leaves quickly, you’re losing all that effort. And it adds up fast.

2. It Kills Growth

It’s hard to grow if your users keep leaving. You might feel like you're getting traction, but if your churn is high, you’re just running in place.

3. It Reveals Product Problems

Churn is often a signal that your product isn’t solving the user’s problem—or isn’t doing it well enough. If users leave, they’re voting with their feet.

4. Investors Pay Close Attention

If you’re raising funds, expect VCs to ask about your churn rate. It’s one of the quickest ways to assess whether your business has real staying power.

How Can You Reduce Churn?

Here are a few ways to plug the hole in your bucket:

• Nail your onboarding.
  Make it ridiculously easy for new users to get started and see value right away.
• Talk to churned users.
  Ask them why they left. You'll be surprised how many are willing to tell you.
• Build “stickiness” into the product.
  What brings users back? Reminders? New content? Useful alerts? Find it—and double down.
• Support matters.
  Quick, helpful responses build trust and can often prevent a user from leaving.
• Win them back.
  Re-engagement emails or offers can remind users why they signed up in the first place.
• Track usage signals.
  If someone hasn’t logged in for a week, don’t wait until they’re gone—check in early.

Wrapping things up…

Churn rate isn’t just another dashboard metric; it’s your product’s reality check. It tells you if people are finding enough value to stick around. And for any startup trying to grow in a noisy, competitive world, that’s everything.

Before you pour more budget into customer acquisition, take a closer look at the people already using your product. Are they happy? Are they staying? If not, it’s time to dig deeper, fix what’s broken, and build something worth coming back to.

Kholoud Hussein 

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

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

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

Climate & Environment: Innovating Sustainability

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

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

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

Public Logistics & Urban Services

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

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

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

Fintech & SME Financing

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

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

On the payments and commerce side:

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

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

Health, Edtech & Social Inclusion

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

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

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

Deep Tech, Space & Infrastructure

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

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

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

Scale, Investment & Broader Ecosystem

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

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

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

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

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

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

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

Founder Voices & Cultural Impact

Many of the startup founders speak of a broader mission:

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

Challenges & Future Outlook

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

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

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

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

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

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

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

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

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

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

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

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

Kholoud Hussein 

In the evolving landscape of global business, the terms traditional commerce and entrepreneurship are often used interchangeably. While both involve the exchange of goods or services for profit, the differences between them run deeper, encompassing mindset, risk appetite, innovation, scalability, and value creation. Understanding these differences is critical for anyone looking to navigate today’s complex economic environment or start a business in a rapidly changing market.

1. Definition and Core Philosophy

Traditional commerce refers to the established methods of buying and selling goods and services, typically conducted through physical stores, franchises, or wholesale/retail distribution systems. These businesses often follow proven models with predictable processes and known markets. Examples include a local grocery store, a clothing shop, or a hardware store—operations where the focus is on efficiency, stability, and consistent customer service.

Entrepreneurship, on the other hand, is the process of identifying gaps in the market and creating innovative solutions to meet those needs. It often involves building something from scratch—whether a product, service, or business model. Entrepreneurs tend to challenge the status quo, driven by a vision of change, disruption, or progress. Think of startups creating AI-driven platforms, ride-sharing apps, or clean energy solutions—ventures that did not exist a decade ago but are now reshaping industries.

2. Risk and Uncertainty

Traditional commerce is relatively lower-risk. It typically relies on established supply chains, customer behaviors, and product lines. Business owners in this space often invest in a known outcome—selling a popular product in a familiar location to a predictable customer base.

Entrepreneurship is inherently riskier. Entrepreneurs venture into uncharted territories, often with no guarantee of success. Startups may fail due to a lack of market demand, funding issues, or execution challenges. However, the potential rewards—both financial and societal—are significantly higher if the venture succeeds. This high-risk, high-reward nature defines the entrepreneurial spirit.

3. Innovation and Scalability

Innovation is the lifeblood of entrepreneurship. Entrepreneurs are problem solvers, constantly looking for ways to do things better, faster, or cheaper. They leverage new technologies, business models, or social trends to create value. A startup founder might disrupt traditional retail by launching an AI-driven personal shopping assistant or use blockchain to improve supply chain transparency.

In contrast, traditional commerce often relies on tried-and-tested models with minimal innovation. The primary goal is to improve efficiency and reduce costs. While some traditional businesses adopt new technologies, they usually do so gradually and reactively, rather than as a central tenet of their business strategy.

When it comes to scalability, traditional businesses grow linearly—more stores mean more revenue, but also more costs. Entrepreneurial ventures, especially those in the digital or tech sectors, can scale exponentially. A software startup can acquire millions of users worldwide with minimal incremental cost, creating opportunities for massive returns and global impact.

4. Funding and Financial Strategy

Traditional businesses are often self-funded or financed through bank loans. They generate revenue through daily transactions and focus on long-term stability and profitability.

Entrepreneurs frequently seek venture capital, angel investors, or crowdfunding. Their financial strategy is centered around rapid growth, market capture, and future valuation. Many startups operate at a loss in their early years, focusing instead on building a user base or technological edge before turning a profit.

5. Mindset and Motivation

The mindset of a traditional business owner is typically conservative. Success is defined by steady income, loyal customers, and local reputation. These businesses form the backbone of local economies, offering employment and stability.

Entrepreneurs, however, are driven by vision, ambition, and often a desire to change the world. They embrace uncertainty and are willing to take bold steps to realize their ideas. Their motivation often goes beyond profit—it includes solving meaningful problems, achieving scale, and sometimes even leaving a legacy.

Finally, while traditional commerce and entrepreneurship differ significantly, they are not mutually exclusive. They often complement each other in the broader economic ecosystem. Entrepreneurs create new markets and drive innovation, while traditional businesses provide the stability, infrastructure, and workforce that sustain daily financial life.

As economies around the world, including those in the Gulf and MENA regions, push for diversification and innovation, the line between the two is increasingly blurred. Many traditional businesses are adopting entrepreneurial thinking—digital transformation, e-commerce, and agile models—while entrepreneurs are learning the value of operational discipline and sustainable growth from their traditional counterparts.

Understanding these differences and synergies is vital for policymakers, investors, and aspiring business leaders who aim to foster a resilient and dynamic economy in the 21st century.