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Aug 14, 2025

AI-as-a-Service: Making Artificial Intelligence Accessible for Every Startup

Kholoud Hussein 

 

For much of its history, artificial intelligence was an elite technology — the preserve of deep-pocketed corporations and advanced research labs. Building an AI model from the ground up required vast datasets, specialized hardware, and teams of highly skilled engineers and data scientists. For a startup working with tight budgets and even tighter timelines, AI was often an unattainable dream.

 

That landscape is changing fast. AI-as-a-Service (AIaaS) is rewriting the rules, allowing companies to rent advanced AI capabilities from cloud-based platforms, much as they would subscribe to software through Software-as-a-Service (SaaS). Instead of spending months — or years — developing proprietary systems, startups can plug directly into pre-trained models, scale them on demand, and pay only for the computing power and services they use.

 

This shift is democratizing access to one of the most transformative technologies of our time — and giving young companies a fighting chance to compete with established industry giants.

 

What is AI-as-a-Service?

At its core, AIaaS is the delivery of artificial intelligence functions via the cloud, on a subscription or pay-per-use basis. The services can include:

 

  • Machine Learning Platforms for training predictive models.
  • Computer Vision APIs for object detection, image recognition, and video analytics.
  • Natural Language Processing (NLP) for chatbots, sentiment analysis, and language translation.
  • Generative AI Tools that produce text, images, audio, or code based on user prompts.

These capabilities are offered by major cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud, as well as by specialized AI companies targeting niche needs.

 

For startups, the appeal is clear: instead of investing heavily in infrastructure and talent, they can integrate AI through a few lines of code and focus their limited resources on innovation, customer acquisition, and scaling.

 

Why AIaaS Matters for Startups

Startups thrive on speed, adaptability, and the ability to outperform their competitors. AIaaS directly supports these priorities in several ways:

 

1. Lower Barriers to Entry
Traditional AI development demands substantial capital, technical expertise, and time. AIaaS reduces these barriers by providing ready-made solutions that even non-technical teams can integrate into their products.

2. Faster Time-to-Market
A startup building a voice recognition feature or a fraud detection system can implement AIaaS in weeks rather than months or years, enabling them to launch features rapidly and iterate based on user feedback.

3. Scalability
AIaaS operates on flexible, cloud-based infrastructure. As a startup grows, it can scale AI usage up or down depending on demand, without worrying about costly hardware upgrades.

4. Continuous Improvement
Providers regularly update their AI models with the latest advancements, giving startups access to cutting-edge capabilities without ongoing research and development costs.

 

Strategic Considerations

While AIaaS offers clear advantages, startups need to approach it strategically:

 

  • Data Privacy: Sensitive customer data must be handled in compliance with regulations, especially when processed through third-party services.
  • Vendor Lock-In: Building products heavily dependent on a single provider’s ecosystem can make future transitions expensive and risky.
  • Customization Limits: Off-the-shelf AI solutions may not fully address highly specific or complex problems.

Balancing the convenience of AIaaS with the need for long-term flexibility is essential to avoid costly pivots later.

 

The Bigger Picture

AIaaS is part of a broader trend toward the “as-a-service” economy, where complex capabilities are delivered via subscription rather than ownership. Just as SaaS made enterprise-grade software accessible to startups, AIaaS is making advanced AI tools available to companies at any stage of growth.

 

For early-stage ventures, this levels the playing field, enabling them to innovate at the same technological pace as far larger competitors. For more mature startups, it can accelerate entry into new markets and support rapid product diversification.

 

The underlying truth is simple: AI is becoming as essential to modern business as the internet was two decades ago. With AIaaS, the question is no longer whether a startup can afford to use artificial intelligence — but whether it can afford not to.

 

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Jul 23, 2025

FraudTech in Saudi Arabia: The Battle Against Evolving Financial Scams

Ghada Ismail

 

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

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

 

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

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

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

 

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

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

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

 

Inside the Modern Scam: What Fraud Looks Like in 2025

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

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

 

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

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

 

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

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

 

How Saudi Fintechs Are Fighting Back

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

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

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

 

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

 

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

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

 

Regulators Join the Fight

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

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

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

 

A. SAMA’s Cybersecurity Framework

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

B. National Cybersecurity Authority (NCA) Initiatives

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

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

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

 

Users: The First Line of Defense

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

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

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

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

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

 

Educating and Protecting the User

A. How Fintechs Are Raising Awareness

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

B. What Users Must Do

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

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

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

 

Smarter Threats, Smarter Defenses

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

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

 

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

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

 

Conclusion: A Secure Digital Future for Saudi Arabia

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

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

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

 

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Jul 22, 2025

Last-mile delivery innovations: Key innovations for modern e-commerce

Noha Gad

 

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

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

 

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

 

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

 

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

 

The evolution in last-mile delivery

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

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

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

 

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

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

 

Key innovations in last-mile delivery

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

 

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

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Jul 10, 2025

Arabic AI and NLP: How Saudi Arabia is leading innovation in the Arabic language

Noha Gad

 

Arabic is one of the world’s most significant languages, with around 491 million speakers globally as of 2025. This makes it the fifth most spoken language worldwide and the fourth most used language on the internet. Being one of the oldest living languages, the Arabic language is spoken in 22 countries, primarily across the Middle East and North Africa (MENA) region, with additional recognition as a co-official language in countries like Chad and Eritrea.

Despite its broad reach, Arabic presents unique linguistic challenges for artificial intelligence (AI) and natural language processing (NLP) as it is characterized by a complex morphology, rich grammar, and a high degree of diglossia. It also has 25 distinct dialects, ranging from Gulf Arabic and Levantine Arabic to Maghreb and Egyptian Arabic, each with its own phonetic and lexical variations.

This diversity makes it hard for AI systems to accurately understand and generate Arabic text and speech, requiring sophisticated models that can navigate both classical and colloquial forms.

The localization of Arabic AI has become a strategic imperative in Saudi Arabia as the Kingdom moves towards its Vision 2030, not only adopting technology, but also leading the creation of it. 

The convergence of Arabic’s linguistic significance, its inherent complexity, and the Kingdom’s push for technological leadership sets the stage for transformative developments in Arabic AI and NLP. These technologies are not only crucial for enhancing digital communication and services but also for enabling local businesses to thrive in an increasingly digital and globalized economy. 

 

Saudi Arabia’s efforts to lead the creation of Arabic AI

Recognizing these challenges and the strategic importance of Arabic AI, Saudi Arabia has positioned itself as a regional leader in driving advancements in Arabic language technology. National strategies, such as the National Strategy for Data and AI (NSDAI), play a pivotal role in placing the Kingdom among the world’s top AI economies by 2030. Launched by the Saudi Data and AI Authority (SDAIA) in 2020, NSDAI aims to capitalize on data and AI for the Kingdom economically and socially through national combined efforts by all stakeholders. 

Through this initiative, the Kingdom aspires to build the foundation for competitive advantage in key niche domains in 2025, and compete on the international scene as a leading economy, utilizing and exporting data and AI by 2030.

Key objectives of NSDAI also include attracting investment worth SAR 75 billion in data and AI, and transforming the Saudi workforce with a steady local supply of more than 20,000 data and AI specialists and experts.

SDAIA also collaborated with NVIDIA to launch ALLaM, Saudi Arabia’s first-of-its-kind chat application that chats and responds to users' inquiries in Arabic. The application offers reliable information in all fields and provides updated summaries and suggestions on various topics. Furthermore, the authority partnered with global tech giants, such as IBM and Microsoft, to enhance the deployment of ALLaM.

King Salman Global Academy for Arabic Language (KSGAAL) is another key player in advancing Arabic AI in the Kingdom. In 2024, it launched the Arabic AI Center, the first specialized AI center for automated Arabic language processing. The center is dedicated to enhancing Arabic content in the fields of data and AI, and making it more competitive globally while driving research, applications, and capabilities in AI and the Arabic language.

The Arabic AI Center targets empowering researchers and developers to harness advanced technologies for processing the Arabic language through five advanced labs: Linguistic and AI Modeling Lab, Data Preparation and Linguistic Resources Lab, Virtual and Augmented Reality Lab, Audio and Visual Processing Lab, and Researcher Workspace Lab.

 

How Arabic AI and NLP empower local businesses?

 

Industry Applications

The applications of Arabic AI and NLP span various fields. For instance, AI-powered chatbots and virtual assistants can enhance customer services by providing personalized and dialect-aware support, improving user satisfaction and accessibility. In retail and e-commerce sectors, sentiment analysis and feedback mining help businesses understand customer needs and trends.

Finance companies, such as Mozn, harness Arabic NLP engines to advance fraud detection, compliance, and risk management. Additionally, Arabic AI and NLP can promote e-government in Saudi Arabia by enhancing communication and faster, clearer interactions for citizens navigating government portals.

 

Economic and Social Impact

  • Boosting local content. Advancing Arabic AI and NLP tools can increase the availability and quality of Arabic digital content across various sectors.
  • Inclusivity and digital literacy. Arabic-first AI tools ensure broader access and participation in the digital economy. 
  • Entrepreneurship and innovation. Local developers and startups leverage Arabic AI to build hyper-localized solutions, fostering a vibrant tech ecosystem.

Arabic AI and NLP are projected to deliver substantial economic benefits to the Kingdom over the coming decade. According to PwC, AI could contribute 12.4% of GDP (around $235 billion) by 2030, underscoring the transformative potential of AI across multiple sectors of the Saudi economy. Additionally, the Saudi Ministry of Communications and Information Technology (MCIT) suggested that with a 20% annual growth in the AI market, Saudi Arabia’s GDP is projects to see an uplift of 0.6% above baseline growth by 2030.

On the employment front, AI’s impact is nuanced but promising. While simulations indicate that about 20.5% of current jobs could be automated, the potential for new job creation exceeds this at 23%, leading to a net employment increase of roughly 2.5% by 2030. Saudi Arabia currently focuses on training and certifying thousands of AI specialists to keep pace with this trend, aiming to build a workforce capable of sustaining and expanding the AI ecosystem. Additionally, Arabic AI and NLP are driving significant social transformation by enhancing accessibility, inclusivity, and cultural relevance in digital interactions. 

 

Key Challenges

  • Linguistic diversity and complexity. The complex morphology and rich grammar of the Arabic language pose significant hurdles for AI development. The language features dozens of dialects, requiring AI models to be dialect-aware for authentic communication. Also, Large Language Models (LLMs) must be trained to think in Arabic, not just translate from English or other languages, to capture cultural and linguistic nuances effectively.
  • Data scarcity and quality. Although Arabic is the fourth most spoken language in the world, it accounts for less than 1% of internet content. Many existing Arabic LLMs rely heavily on English data, which reduces their efficacy in handling complex Arabic reasoning and dialects. Saudi initiatives, such as ALLaM, play a pivotal role in building large, culturally relevant Arabic datasets to overcome this scarcity.
  • Strategic sovereignty and ethical considerations. Building sovereign Arabic AI models is instrumental to ensure that AI systems reflect regional values, cultural norms, and legal frameworks. The Saudi Vision 2030 emphasizes AI sovereignty, promoting models trained on local data governed by regional laws to maintain trust and autonomy.

Saudi Arabia is rapidly advancing toward becoming a global leader in Arabic AI and NLP, driven by its ambitious Vision 2030 and substantial investments in AI infrastructure and talent development. The Kingdom accelerates its efforts to expand generative AI capabilities specifically tailored for Arabic content, including dialectal and classical forms.

The development of sovereign Arabic LLMs like ALLaM, integrated into global technology platforms and supported by advanced data centers powered by the Kingdom’s unique energy resources, positions Saudi Arabia as a regional powerhouse and a significant player on the global AI stage. 

 

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Jul 7, 2025

Why Listening First Is the Key to Smarter, Safer Construction

Gary Ng, CEO of viAct

 

“A 14-Second Warning That Changed Everything”  

 

It was a regular day at a high-rise construction project in Abu Dhabi when one of our AI-enabled video analytics systems triggered an alert. A worker had unknowingly stepped into an active lifting zone, while a tower crane was mid-operation.

 

From the moment of unauthorized entry to the moment the AI-generated alert reached the site supervisor’s device, exactly 14 seconds had passed. 

 

That was just enough time for the supervisor to intervene and redirect the worker. No injuries occurred, no operations were halted. But this situation could’ve gone drastically wrong.

 

That near-miss incident stayed with me. Not because the system worked, but because it showed me what was truly at stake: human lives, reputational trust, and operational continuity. 

 

In that moment, I realized something essential. What we’re building at viAct is not just about AI that sees — it’s about AI that listens.

 

Understanding Before Automating

The construction world today requires safety systems that can move beyond the hassles of manual inspections, paper logs, and delayed incident reporting. While many industries have leapt toward automation, the human dynamics of construction make it impossible to fully automate decision-making.

 

This is where I believe AI has a different role to play in construction safety, not in replacing oversight, but in improving understanding. AI doesn’t simply monitor for violations — it learns context over time. 

 

For instance, a site in Hong Kong received repeated alerts from a certain scaffold section. On investigation using video analytics, it turned out workers were stepping into the zone frequently due to poor tool placement. 

 

At another AI-enabled monitoring site in Singapore, over 92% of PPE non-compliance cases were accurately detected and automatically tagged in the centralised dashboard, reducing manual inspection time by nearly 40%. 

 

Humanizing the Tech That Protects Frontline Workers

We often talk about “data-driven” environments, but for workplace safety to evolve in construction, we need “people-driven” tech. Our team has always believed that contextual intelligence is what sets safety AI apart . 

 

“It is the ability to understand the why, not just report the what.”

 

For example, during a highway bridge construction project in Malaysia, a video analytics system identified heat-induced fatigue patterns by observing workers’ posture slouching and time spent in high-temperature zones. This insight led the contractor to reschedule their shifts during peak afternoon hours, reducing incidents of heat stress by over 65% in just two weeks.

 

These repeated instances across global sites are reminders that technology performs best when it pays attention to real-world workflows, fatigue patterns, environmental risks, and frontline feedback.

 

And that’s exactly what we’ve done at viAct. We’ve utilised mechanisms to listen to workers’ concerns, integrate feedback loops from EHS teams, and fine-tune the 100+ AI modules in response to ground-level realities. 

 

Rethinking Oversight: From Surveillance to Collaboration

In a traditional model for workplace safety, effective management often meant periodic walkthroughs, post-incident audits, or checklist-based compliance. But these protocols, while necessary, often fall short of the agility required on fast-paced construction sites.

 

What we offer instead is a system that interprets behavior in real time, not just capturing violations but identifying risk patterns before they escalate. At a large metro tunnel site in Singapore, for instance, AI video analytics flagged recurring unsafe access near a confined work chamber. 

 

The AI’s interpretation wasn’t just visual — it recognized a repeat behavior and suggested re-zoning. Following the alert, the EHS team made sure to redefine the access protocols and recorded a 70% drop in zone violations within three weeks.

 

This is how contextual intelligence works. It’s not surveillance. It’s collaborative safety, where AI supports, not supervises.

 

The Way Forward in 2025

Construction is evolving. And so is its way of managing workplace safety. The push for smarter, safer, and more efficient job sites is no longer optional — it’s essential. Yet the transformation doesn’t lie in abandoning human oversight, but in enhancing it with AI-driven technology.

The question isn’t “How can we control every risk?”


It’s “How can we understand risks better before they escalate?” At viAct, we believe that the answer starts with listening.

 

And we’re here to keep listening — to workers, to safety officers, to supervisors, and to every voice that keeps the foundation strong.

 

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Jul 2, 2025

OmniOps Powers Saudi Arabia’s AI Future: From Sovereign Infrastructure to Global Expansion

Kholoud Hussein 

 

In a rapidly digitizing world, the demand for powerful, secure, and sustainable AI infrastructure is no longer optional—it’s essential. OmniOps, founded in 2024, has quickly emerged as a national pioneer in this space, becoming Saudi Arabia’s first dedicated AI infrastructure technologies provider. The company has recently secured SAR 30 million in funding to accelerate the deployment of sovereign AI inference clusters and strengthen its R&D capabilities. Positioned at the intersection of innovation, compliance, and sustainability, OmniOps is tackling some of the most pressing challenges faced by enterprises and government institutions in their AI transformation journeys.

 

What sets OmniOps apart is its commitment to building local, production-grade infrastructure tailored to the Kingdom’s regulatory and operational needs. With a client base already including Saudia Airlines and CNTXT, and strategic partnerships with global tech giants like NVIDIA and Google Cloud, OmniOps is well on its way to becoming a cornerstone of Saudi Arabia’s Vision 2030 and its National Strategy for Data and AI. In an exclusive interview with Sharikat Mubasher, Mohammed Altassan, CEO of OmniOps, shares how the company is balancing high performance with sustainability, navigating regulatory frameworks, addressing talent gaps, and charting a course for regional and international growth.

 

OmniOps recently closed a funding round of SAR 30 million. What are the core goals behind this raise, and how do you plan to allocate the investment to scale your operations?

 

This funding round is focused on accelerating the deployment of our sovereign AI inference clusters across the Kingdom and investing in our next-generation AI inference software layer. The capital will be allocated toward expanding our infrastructure footprint, enhancing our R&D capabilities, particularly around sustainable AI Infrastructure architecture, and scaling our engineering team to support growing demand across sectors such as aviation, finance, and government. 

 

We're also investing in client enablement and partnerships to ensure our customers can unlock real-world value from our infrastructure.

 

Founded in 2024 as Saudi Arabia’s first AI infrastructure technologies provider, what market gap did you identify that led to the creation of OmniOps?

 

We identified a critical gap in sovereign AI infrastructure. While demand for AI solutions is rising across Saudi Arabia, enterprises lacked access to high-performance, locally hosted infrastructure that complied with data residency requirements. Most available options were either international clouds with limited regional presence or generic infrastructure not optimized for AI workloads. To add to that, public and private institutions are adopting artificial intelligence at a phenomenal rate which is creating a heavy load on their infrastructure and resources. 

 

OmniOps was created to address this, offering Saudi-built, production-grade infrastructure optimized for AI inference and compliant with local regulations.

 

Your focus on building sustainable AI infrastructure is a key differentiator. How do your solutions balance energy efficiency with computing power at scale?

 

We’ve developed proprietary GPU overbooking methods that enable us to achieve a 50% reduction in power consumption while boosting inference efficiency by up to 14 times. This means we can offer clients the computational performance they need for AI workloads, without the environmental and operational costs traditionally associated with AI Infrastructure. Our clusters are designed to be both high-performance and energy-conscious, enabling sustainable AI development at scale.

 

One of your strategic pillars is developing sovereign AI inference clusters that meet local compliance standards. How do you ensure regulatory alignment without compromising on technical performance?

 

Compliance is integrated into our infrastructure by design from day one. We help clients store their data on-premises (on-prem), in the cloud, or in a hybrid cloud set up as is needed for compliance and best performance. At the same time, we’ve built a software and hardware stack that delivers enterprise-grade performance, with no trade-off on speed or scalability. Our regulatory alignment is not a limitation—it’s a strength that allows us to serve sectors with high compliance demands, such as healthcare, finance, and aviation.

 

You’ve partnered with global tech leaders such as NVIDIA, Google Cloud, and IBM. How do these partnerships enhance your technical capabilities and support your long-term product vision?

 

These companies provide the critical infrastructure that powers most essential sectors globally. OmniOps builds upon and collaborates with their foundational technologies to create our specialized solutions. This integration allows us to optimize our platform for the latest advancements, ensuring our Inference Optimizer delivers maximum performance gains. By working closely with these technology leaders, we enhance Saudi organizations' access to world-class AI infrastructure while maintaining compatibility with global standards.

 

With clients like Saudia Airlines and CNTXT already on board, which additional industries are you targeting? How do you tailor your infrastructure solutions to meet the specific demands of different sectors?

 

Our approach begins with understanding each sector's unique challenges, regulatory requirements, and AI maturity. For example, in education, we are designing an infrastructure that supports personalized learning environments that can handle the increasing adoption of AI, while ensuring student data privacy and security. This sector-specific approach allows Saudi organizations to implement AI that directly addresses their unique operational needs while maximizing return on infrastructure investments.

 

How does OmniOps’ strategy align with Saudi Arabia’s Vision 2030 and the National Strategy for Data and AI, particularly regarding digital sovereignty and local content development?

 

OmniOps is directly aligned with Vision 2030’s goals of building a digital economy rooted in local innovation. Our sovereign AI infrastructure advances the Kingdom’s digital sovereignty by ensuring that critical data and models remain within national borders. We also contribute to local content development by hiring and training Saudi talent, partnering with local universities, and investing in R&D initiatives that position the Kingdom as a leader in AI infrastructure.

 

What are the main challenges you face in building AI infrastructure in the Kingdom, and how are you addressing those hurdles—whether technical, regulatory, or talent-related?

 

One of the main challenges is the availability of specialized AI infrastructure talent, which is why we invest heavily in training and upskilling. We also navigate evolving regulatory frameworks by working closely with relevant authorities to ensure full compliance while advocating for innovation-friendly policies. On the technical side, the biggest hurdle is delivering global-level performance locally, and our R&D focus ensures we meet and exceed those standards.

 

Are there plans for regional or global expansion? If so, which markets are you prioritizing, and what’s your approach to entering them?

OmniOps is actively forming strategic partnerships with leading players in the AI infrastructure space. Several of these partners are exploring Saudi Arabia as a key market and view OmniOps as their conduit for entry and expansion in the region. In parallel, these relationships are creating reciprocal opportunities for OmniOps to establish a presence in the U.S. market through their networks and infrastructure.

 

We are also targeting the European market, with a strategic entry point through our Moroccan office. Our approach focuses on identifying and aligning with the right partners to accelerate market access and regional growth across the continent. 

 

Finally, what is your long-term vision for OmniOps? How do you plan to maintain leadership in the evolving landscape of AI infrastructure across Saudi Arabia and beyond?

 

Our vision is to become the foundational layer of AI infrastructure across the region—empowering enterprises and governments to build and scale intelligent applications securely and sustainably. We’ll maintain leadership by continuing to innovate in energy-efficient AI infrastructure, expanding our AI inferencing, and growing a strong ecosystem of local talent and strategic partners. Ultimately, we aim to help shape a future where Saudi Arabia is not just a consumer of AI but a global contributor to its development.

 

In conclusion, OmniOps isn’t just building AI infrastructure—it’s laying the groundwork for Saudi Arabia’s digital sovereignty, global competitiveness, and future leadership in artificial intelligence. By marrying technical performance with regulatory compliance, and innovation with sustainability, the company is aligning itself perfectly with the core tenets of Vision 2030. Its sector-specific solutions, talent development initiatives, and plans for global expansion demonstrate a comprehensive strategy to not only support but also shape the AI landscape in the Kingdom and beyond.

 

As OmniOps looks ahead, its long-term vision is bold yet grounded: to become the foundational layer of intelligent systems across the region. In doing so, the company is helping reposition Saudi Arabia not merely as a consumer of cutting-edge AI technologies, but as a global contributor and innovator in this critical domain.

 

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Jun 19, 2025

Building tomorrow today: technology and vision drive Saudi Arabia’s construction revolution

Noha Gad 

 

The construction sector in Saudi Arabia is undergoing a remarkable transformation, driven by ambitious government initiatives and a strategic vision to diversify the economy beyond oil dependence. This promising industry is projected to see a robust growth as of 2025, with an expected expansion rate of around 4.4% to 6.2%, according to a recent report by Global Data. This growth will be driven by massive investments in infrastructure, housing, commercial, and industrial projects.

Additionally, the construction sector in Saudi Arabia is anticipated to reach $174.3 billion by 2030, from $104.7 billion in 2024, with a compound annual growth rate (CAGR) of 8.7%, as stated in a recent report by Research and Markets, one of the world’s largest research market stores. 

At the core of this surge are Saudi Arabia’s giga-projects, such as NEOM, Qiddiya, and the Red Sea Project, which aim to establish the Kingdom as a global hub for innovation, tourism, and entertainment. These projects, alongside urban development in major cities like Riyadh and Jeddah, are reshaping the economic landscape and creating vast opportunities for construction companies and suppliers

Technology is playing an increasingly pivotal role in this promising sector. The adoption of advanced construction technologies, such as Building Information Modeling (BIM), modular construction, 3D printing, and smart infrastructure systems, is accelerating efficiency, reducing costs, and improving project management. 

Bisrat Degefa, Co-founder and CEO of TruBuild, a leading Saudi construction tech company, affirmed that the adoption of technology in the construction sector “has moved from experimental pilots to core strategy.” He highlighted that less than 10% of top developers in the region used digital procurement tools in 2019, while in 2025, over 60% are running live programs.

Another key player in the Saudi construction technology sector is WakeCap, a Riyadh-based company that integrates smart technology in the construction industry, focusing on enhancing safety, productivity, and efficiency. According to CEO Hassan Albalawi, mandating technology on major projects plays a pivotal role in promoting transparency, ensuring better compliance rates, and transforming safety protocols and practices in the construction industry and beyond. 

 

Construction technologies vs. traditional methods

Although traditional construction methods in Saudi Arabia emphasize cultural preservation and adaptation to local climates, advanced technologies are transforming the sector by enhancing efficiency, sustainability, and scalability, ultimately accelerating the Kingdom’s broader economic diversification and urban development ambitions.

The integration of technology is essential in overcoming regulatory complexities and administrative challenges, streamlining project approvals, and enhancing risk management. For instance, traditional tender evaluations often take 4–6 weeks and involve multiple full-time reviewers; however, they provide inconsistent and subjective results. Meanwhile, leveraging a rules-based scoring system, enhanced by machine-learning insights, helps companies complete evaluations in 5-7 days with just two reviewers, saving up to 85% of costs, 70% of cycle times, and significantly fewer downstream variations.

This technological evolution not only supports the rapid pace of construction but also positions Saudi Arabia’s construction sector as a model for modernization and economic diversification in the region.

 

Key technologies that reshape the Saudi construction sector:

Advanced construction technologies are significantly improving both speed and sustainability in the Saudi construction sector in alignment with Vision 2030. Key technological advancements reshaping the industry include:

  • 3D Printing: This technology accelerates construction timelines by enabling the rapid, cost-effective fabrication of complex building components from materials like concrete and polymers.
  • Modular and prefabricated construction: Pre-assembled building sections are increasingly used in major giga-projects. This method enhances speed, quality, and cost control, crucial for meeting ambitious infrastructure deadlines.
  • Building Information Modeling (BIM): BIM provides detailed digital 3D models that improve collaboration among architects, engineers, and contractors. Its growing use in projects contributes to reducing errors, streamlining workflows, and cutting costs.
  • Artificial intelligence (AI) and machine learning: AI automates routine tasks, optimizes labor allocation, predicts project risks, and improves safety on construction sites, offering real-time insights that help avoid delays and cost overruns.
  • Internet of Things (IoT) and Automation: IoT devices enable real-time monitoring of equipment, materials, and site conditions, enhancing resource management and safety. Meanwhile, automation reduces manual labor and repetitive tasks, allowing teams to focus on strategic aspects of projects.
  • Green building technologies: Saudi Arabia is integrating solar panels, energy-efficient HVAC systems, and advanced insulation to reduce the environmental footprint of construction. These practices align with global standards and the Kingdom’s commitment to reducing carbon emissions.

 

To fully adopt innovative construction technologies in Saudi Arabia, several key regulatory changes are needed to create a flexible, supportive, and secure environment that fosters innovation while addressing emerging risks, including:

  • Aligning regulations with technology development.
  • Promoting flexibility and risk management.
  • Enhancing collaboration among stakeholdersز
  • Developing clear AI and data governance.
  • Streamlining permitting and compliance processes.

The future of construction technology in Saudi Arabia

The future of construction technology in Saudi Arabia is set to be transformative, driven by ambitious national goals under Vision 2030 and massive investments exceeding $3 trillion aimed at economic diversification and urban modernization.

Degfa expected a widespread adoption of AI-assisted workflows, contracts linked to digital twins, live ESG and schedule tracking, blockchain-enabled supplier payments, and automated compliance checks for codes and Saudization. “With its combination of scale, urgency, and regulatory support, Saudi Arabia is on track to become a global leader in AI-powered construction,” he said.

Despite challenges related to regulatory complexity and administrative hurdles, the integration of advanced technologies is expected to redefine the Saudi construction sector by 2030, making it a global leader in innovative, sustainable, and efficient building practices. This technological revolution supports Saudi Arabia’s broader goals of economic diversification, job creation, and environmental stewardship, positioning construction as a cornerstone of the Kingdom’s future development.

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Jun 18, 2025

From Social First to Self-Owned: How AI and Microtools Empower the Next Generation of Entrepreneurs

Selina Bieber, Vice President for International Markets at GoDaddy

 

Digitalisation has transformed entrepreneurship, especially at its inception. An increasing number of small businesses are launching via platforms like Instagram, TikTok, or WhatsApp, bypassing traditional websites. These social-first entrepreneurs meet customers where they already are, turning social media from a mere communication tool into a business.


According to the GoDaddy 2025 Global Entrepreneurship Survey, over one in five (22%) of small business owners in MENA primarily run their business on social media. This shift underscores the growing significance of social commerce, particularly for solo entrepreneurs and part-time founders.


However, building a business solely on social platforms has its limitations. While visibility is high, ownership and control are minimal. Algorithm changes or platform policies can disrupt a business’s presence and income overnight. Moreover, consumers often seek additional verification before making a purchase. 

 

In Germany, where trust is paramount, having a professional website can significantly enhance a business’s credibility. The State of Digital Commerce in MENA 2024 Report by Checkout highlighted that 73% of online shoppers in MENA are confident in making purchases from businesses with professional websites, rather than relying solely on social media. 


Microtools Bridge the Gap
The market responded with lightweight tools tailored for social-first founders. Solutions like GoDaddy’s Show In Bio enable entrepreneurs to build branded micro-sites, digital product catalogs, and smart links that centralize their business presence without requiring advanced technical skills. These tools integrate seamlessly with social platforms while granting founders greater control.


AI Fuels Smarter, Faster Entrepreneurship
Artificial intelligence empowers founders to transition from idea to execution swiftly, helping craft product descriptions, develop pricing models, and automate customer interactions. GoDaddy data indicates that AI-supported tools can save entrepreneurs up to 10 hours per week—a substantial benefit for time-constrained small business owners. Beyond time savings, AI democratizes access, enabling anyone to present a professional front, experiment with new ideas, and scale efficiently.


And while social platforms are powerful launchpads for connecting with customers, true staying power comes from owning your presence online. Having a dedicated website paired with smart, social-integrated tools like Show in Bio not only reinforces credibility but also provides a layer of trust and permanence that social channels alone can’t deliver. In an environment where impersonations and questionable accounts are not uncommon, especially on social media, customers often verify whether a business has a legitimate website before making a purchase decision.


Social-First, but Not Platform-Dependent
The new generation of entrepreneurs is pragmatic, digitally native, and driven by a desire for independence. They initiate their ventures where their audiences are—on social media—but increasingly seek tools that provide control, flexibility, and a distinct identity beyond the scroll. Combining social-first strategies with a professional website not only enhances credibility but also ensures long-term viability. With the right mix of AI and accessible microtools, transitioning from a side hustle to a sustainable business is more attainable than ever. Social-first may be the entry point, but ownership and your own digital presence are the future.

 

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Jun 17, 2025

Launching Ambitions: How Saudi Arabia’s Space Sector Is Attracting Capital, Startups & Global Partners Toward Vision 2030

Kholoud Hussein 

 

The global space economy reached $464 billion in 2022 and is forecast to grow to $738 billion by 2030, according to the Space Foundation. Saudi Arabia, under its ambitious Vision 2030, is now positioning itself as a new powerhouse in this domain.

 

“Space is no longer just the domain of superpowers. Saudi Arabia sees it as a platform to localize high-value industries, inspire innovation, and create a new economy,” says Mohammed Al-Tamimi, CEO of the Saudi Space Agency (SSA).

 

The Kingdom’s strategy is clear: nurture a domestic space ecosystem, attract foreign investors, and become a regional hub for research, satellite tech, and even space tourism.

 

Institutional Foundations: Strategic Architecture Behind the Lift-off

The establishment of the Saudi Space Commission in 2018 (now the Saudi Space Agency) marked a pivotal moment. Its leadership under Minister Abdullah Alswaha and Al-Tamimi signaled a top-down national commitment.

 

In July 2023, Saudi Arabia signed a cooperation agreement with NASA, further reinforcing its international positioning. Minister Alswaha described it as “a step forward in building strategic partnerships that accelerate our national innovation capabilities and diversify the Kingdom’s global collaborations.”

 

Supporting the SSA’s efforts is the Communications, Space and Technology Commission (CST), which sets regulatory frameworks and promotes commercial activity in space. CST has launched multiple market intelligence reports identifying five opportunity clusters: satellite manufacturing, launch services, ground infrastructure, satellite communications, and earth observation.

 

Private Sector & Startup Surge: The Commercial Engine of Saudi Space

 

  • Accelerators, Startups, and R&D

Saudi Arabia is not building a space sector from scratch — it is nurturing one through accelerators, R&D hubs, and university-led innovation.

In 2023, the SSA partnered with Techstars to run a 10-week accelerator. Frank Salzgeber, former head of innovation at the European Space Agency and advisor to the program, said: “There was never a better time and place to join the space industry than Saudi Arabia. By 2030, the Kingdom will be a major hub for commercial space activity.”

 

Meanwhile, Neo Space Group (NSG), launched by the Public Investment Fund (PIF) in 2024, focuses on satellite communications, remote sensing, and IoT — all areas ripe for private-sector development.

 

Other rising players include SARsatX, backed by Flat6Labs, which is building earth observation services using micro-satellites, and Orbit Arabia, a startup in early-stage development focused on space-based logistics.

 

Huda AlMansoori, co-founder of a Riyadh-based space tech incubator, notes: “The talent is there — our challenge is channeling it into deep-tech ventures, and that’s where university and government partnerships are crucial.”

 

  • University Partnerships

Saudi universities like KAUST, KACST, and King Saud University are driving innovation. A joint nanosatellite launched with Spire Global and KAUST in 2023 via SpaceX marked a breakthrough for local research.

These institutions serve as feeders to the startup ecosystem and provide technical backstopping for early-stage ventures.

 

Investment Landscape & Economic Potential

Saudi Arabia’s space sector is rapidly emerging as an investment frontier, backed by a convergence of national policy, global market trends, and the rising appetite for high-tech infrastructure. While still in early formation, the Kingdom’s space investment landscape is evolving from state-led vision to private sector opportunity, one with the potential to generate multi-billion-riyal returns, catalyze regional leadership, and embed the country in the global space economy.

 

1. Public Capital as a Strategic Engine

The Kingdom’s space push is being powered initially by substantial government investment, driven primarily through the Public Investment Fund (PIF), the Saudi Space Agency (SSA), and affiliated tech and industrial funds. These entities have committed billions of riyals to:

  • Build and launch domestic satellites
  • Fund advanced research and local manufacturing
  • Develop a regulatory framework that supports commercial activity

For instance, the PIF-backed Neo Space Group, launched in 2024, is tasked with developing satellite communications networks, earth observation platforms, and data analytics systems to support sectors from agriculture to oil and gas.

 

This top-down model mirrors the early phases of national development in other strategic sectors like renewable energy and advanced manufacturing. The goal is to de-risk early-stage infrastructure, create sovereign capabilities, and set the foundation for a thriving commercial market.

 

“We’re not just financing projects. We’re building a full ecosystem that can compete globally,” said Alswaha, Minister of Communications and Information Technology.

 

2. Growing Private Sector Momentum

While still nascent, the private sector is beginning to show signs of traction. Many early-stage Saudi startups are entering the space value chain, particularly in:

  • CubeSat design and nano-satellite systems
  • Downstream applications such as geospatial analytics, weather monitoring, and remote sensing
  • Internet of Things (IoT) connectivity from low Earth orbit (LEO)

Notable players include:

  • LeoTech Space, working on CubeSat hardware and educational payloads
  • OrbitX, developing data processing tools for environmental monitoring
  • SkyNode, a startup using satellite imagery for infrastructure and utility mapping

Although these companies remain in the seed and Series A stage, some have begun attracting capital from local VCs like Khwarizmi Ventures, Riyadh Valley Company, and Seedford Partners, as well as from international players scouting the region’s underexploited potential.

 

“We see space tech in Saudi as where fintech was 10 years ago — high risk, but massive upside,” said a partner at a Jeddah-based venture fund. “With the right exits, this could be one of the region’s most valuable verticals.”

 

3. FDI and Global Partnerships on the Rise

Saudi Arabia is also positioning itself as an attractive destination for foreign direct investment (FDI) in space, thanks to regulatory reforms, tax incentives, and a clear roadmap outlined by the National Space Strategy.

 

In 2024 alone, the Kingdom signed over 15 MoUs and joint ventures with international space agencies, aerospace manufacturers, and satellite operators. These include:

  • A strategic agreement with Thales Alenia Space for satellite development
  • Collaboration with OneWeb and Eutelsat to extend broadband coverage
  • Technology transfer partnerships with Chinese and Indian satellite firms

Foreign players are drawn to Saudi Arabia’s commitment to localization, its strong capital markets, and the possibility of using the Kingdom as a launchpad into broader MENA and African markets.

 

The Saudi Investment Promotion Authority has identified space technology as a “Tier-1 opportunity” for inbound FDI and is working with the Ministry of Investment (MISA) to develop customized incentives for international aerospace companies.

 

4. Dual-Use Applications Multiply ROI Potential

Space in Saudi Arabia is not just about launches and satellites — it’s about the data and services they enable. The real economic value will come from commercializing applications that serve other Vision 2030 sectors, including:

  • Agritech: Monitoring crop health, soil conditions, and water usage from space
  • Mining & Energy: Using satellite imagery to detect geological anomalies or monitor pipeline infrastructure
  • Urban Planning: Assisting in NEOM and smart city development with geospatial planning tools
  • Disaster Management: Supporting emergency response and early-warning systems for floods or heatwaves

This interconnectivity creates layered economic value and opens doors for cross-sector investment. A single satellite platform can serve dozens of public and private sector clients — from Aramco to the Ministry of Environment — dramatically improving ROI.

 

5. Unlocking Future Value Through Industrial Localization

Long-term, the Kingdom aims to localize critical parts of the aerospace supply chain, including satellite assembly, sensor manufacturing, launch support services, and space-grade materials. This would reduce reliance on imports, strengthen national security, and create thousands of high-skilled jobs.

 

Several initiatives are underway:

  • Establishing a Space Industry Cluster in Riyadh and Taif
  • Incentivizing aerospace manufacturing under Made in Saudi branding
  • Training local engineers and technicians through public-private partnerships

These efforts reflect the broader Vision 2030 priority of building an innovation-driven, export-oriented industrial base, with space positioned as a high-impact sector.

 

Saudi Arabia’s space investment landscape is evolving rapidly — from public infrastructure and basic services to an increasingly diversified portfolio of startups, foreign partners, and commercial applications. While risks remain, the economic upside is undeniable: access to a trillion-dollar industry, increased strategic autonomy, and the development of deep-tech capabilities that can ripple across the economy.

 

As capital flows in and capabilities mature, Saudi Arabia is poised to shift from a buyer of space technology to a builder — and eventually, to a global exporter of space-enabled solutions.

 

Foreign Investment & International Partnerships

Saudi Arabia is actively courting foreign players. In 2024, Halo Space announced it would begin stratospheric balloon tourism flights from Saudi Arabia. The company estimates $600 million in revenue by 2030, with 400 flights annually priced at around $100,000 to $164,000 per ticket.

Carlos Mira, CEO of Halo Space, explained: “We chose Saudi Arabia because of the regulatory clarity, stable investment climate, and access to funding. Vision 2030 gives us confidence that the country is serious about space tourism.”

 

Major partnerships include:

  • NASA: civil cooperation on exploration and R&D.
  • Axiom Space: supported the Kingdom’s first astronaut mission in 2023.
  • LeoLabs and NorthStar: helping monitor orbital debris and enhance satellite safety.
  • SES and OneWeb JV: building LEO ground infrastructure in Tabuk.

NEOM, the $500 billion smart city project, is also hosting testbeds for space-tech experiments — including earth observation and atmospheric studies — in partnership with international space firms.

 

Strategic Fit with Vision 2030

Saudi Arabia’s foray into space is not an isolated ambition—it is a direct extension of Vision 2030, the Kingdom’s comprehensive roadmap to diversify its economy, reduce its reliance on oil, and position itself as a hub of innovation and global leadership. The development of the space sector serves as a strategic enabler across multiple Vision 2030 pillars, from economic diversification and digital transformation to education, defense, and global positioning.

 

1. Economic Diversification Beyond Oil

One of the central tenets of Vision 2030 is to shift Saudi Arabia's GDP composition away from hydrocarbons and toward high-tech industries and services. The global space economy, expected to surpass $1.8 trillion by 2035 according to McKinsey, offers a compelling opportunity for Saudi Arabia to tap into new revenue streams through:

  • Satellite manufacturing
  • Space-based data analytics
  • Remote sensing for agriculture and infrastructure
  • Telecommunications and broadband delivery in underserved regions

By investing in space infrastructure and commercial capabilities, the Kingdom is effectively planting the seeds of a post-oil innovation economy.

 

“Space is not just science—it’s strategy,” said Alswaha. “It drives solutions for water, food, security, and economic resilience. This is the heart of Vision 2030.”

 

2. A Catalyst for Innovation and Deep Tech

The space sector is inherently interdisciplinary, requiring advances in robotics, AI, cybersecurity, materials science, and energy systems. It therefore acts as a powerful catalyst for the Kingdom’s emerging deep tech ecosystem, sparking local innovation and forging partnerships between universities, research centers, and startups.

 

Institutions such as KAUST, KACST, and King Fahd University of Petroleum and Minerals (KFUPM) are already aligning their research agendas to support aerospace and space sciences. Programs under the Saudi Space Agency aim to connect academic R&D with real-world applications, ranging from satellite payload development to climate analytics powered by geospatial data.

 

The space sector also encourages technology transfer and local IP creation, crucial to the Kingdom’s long-term ambition of becoming a producer—not just a consumer—of advanced technologies.

 

3. Human Capital Development and Youth Empowerment

Vision 2030 places a strong emphasis on unlocking the potential of Saudi youth, and the space economy offers a new and inspiring domain for engagement. From astronaut programs and aerospace engineering scholarships to STEM bootcamps and space hackathons, there is a national push to nurture the next generation of space scientists, engineers, and entrepreneurs.

 

The recent participation of Saudi astronauts—Rayyanah Barnawi and Ali AlQarni—on international space missions has ignited public interest and served as powerful symbols of national capability and aspiration.

 

“Our children need to see that science is a path to the stars—not just something in books,” said Badr Al-Aiban, Advisor at the Royal Court. “Space inspires curiosity, and curiosity builds capability.”

 

By 2030, Saudi Arabia aims to have trained thousands of specialists in aerospace and satellite sciences, and introduce space-focused curricula across major universities and vocational programs.

 

4. Enhancing National Security and Sovereignty

Space plays a growing role in geopolitical competitiveness and strategic autonomy, especially in areas like secure communications, border surveillance, and cyber defense. Vision 2030 underscores the need for Saudi Arabia to reduce dependency on foreign systems and develop sovereign technological capabilities.

 

With the development of localized satellite infrastructure, encrypted data networks, and dual-use payloads, the space sector strengthens national resilience and empowers local decision-making in crisis management, environmental monitoring, and defense logistics.

The National Space Strategy, approved by the Council of Ministers, outlines specific goals to enhance security-related capabilities through indigenous satellite constellations and enhanced partnerships with friendly powers.

5. Global Branding and Soft Power

Participation in the space economy elevates Saudi Arabia’s image as a modern, forward-thinking nation committed to scientific advancement, global cooperation, and peaceful space exploration. This aligns with Vision 2030’s ambition to position the Kingdom as a thought leader on the international stage—not only economically, but scientifically and diplomatically.

 

Through strategic cooperation with agencies such as NASA, Roscosmos, the European Space Agency, and the Chinese National Space Administration, as well as through its contributions to global forums like the UN Committee on the Peaceful Uses of Outer Space (COPUOS), Saudi Arabia is cultivating a new dimension of foreign policy and soft power.

 

These initiatives also help attract foreign direct investment (FDI), joint ventures, and technology partnerships—all critical to the success of Vision 2030.

 

In essence, space is not a detour from Saudi Arabia’s development priorities—it is a powerful multiplier. It fuses the knowledge economy with security interests, the tech sector with youth empowerment, and the national identity with global influence.

 

As Vision 2030 progresses into its critical execution phase, the integration of space into the Kingdom’s economic DNA is no longer speculative—it’s strategic. And if successful, it will mark a historic leap not only for Saudi Arabia, but for the entire region’s place in the space economy.

 

VII. Talent Development: The Human Capital Frontier

A sustainable space economy requires skilled engineers, astrophysicists, designers, and entrepreneurs.

 

In 2023, Serco Middle East launched its first space graduate program in Riyadh. Amar Vora, Serco’s director of space strategy, explained: “To address Saudi Arabia’s ambitions, the need for space skills and talent is going to be absolutely critical.”

 

Initiatives like SSA’s Ajyal program and KAUST’s satellite fellowships are designed to build a national talent pipeline. The participation of Rayyanah Barnawi — the first Saudi female astronaut — in a 2023 Axiom mission has inspired a surge of interest in STEM education.

 

Challenges on the Launchpad

Despite its ambitious trajectory and strong top-down support, Saudi Arabia’s space sector faces a number of structural, operational, and strategic challenges that could slow its momentum if not addressed holistically.

 

1. Talent Gaps: Bridging the Skills Deficit

One of the most critical bottlenecks is the shortage of specialized talent. While Saudi Arabia has made progress in encouraging STEM education and developing astronaut programs like Ajyal, the domestic workforce still lacks mid- to senior-level experts in critical areas such as orbital mechanics, propulsion systems, satellite software, and deep-space mission design.

 

This issue is compounded by global competition for space professionals, especially with countries like the UAE, India, and the US scaling their space ambitions. According to a 2023 report by the OECD on space workforce development, countries that lead in space tech invest heavily in long-term STEM capacity building and have well-established university-to-lab-to-startup pipelines — a model still in its early stages in Saudi Arabia.

 

“There’s a perception gap,” said a senior space researcher at KAUST. “We have many science graduates, but few with actual mission experience or specialized postdocs in astrodynamics or payload engineering.”

 

Without a broad base of engineers, scientists, and commercial space strategists, Saudi Arabia may struggle to build an autonomous space industry capable of scaling or sustaining high-tech operations without foreign support.

 

2. Overreliance on Government Funding

While state-led investment has been essential in kickstarting the ecosystem, Saudi Arabia’s space sector remains disproportionately dependent on public capital, especially from the Public Investment Fund (PIF) and other state-affiliated vehicles. This limits the diversity of innovation, slows down market responsiveness, and creates fragility if government priorities shift.

 

As of mid-2024, more than 80% of all major space-related funding in Saudi Arabia was sourced from public entities. Venture capital participation remains limited and risk-averse, with few dedicated space investment funds (Seedford Partners being a notable exception).

 

Unlike the U.S., where NASA’s role is largely to enable and regulate while commercial players like SpaceX, Planet Labs, and Rocket Lab compete for contracts, Saudi Arabia’s current structure is still heavily top-down.

 

“We need to shift from a government-sponsored vision to a market-driven one,” noted a Riyadh-based space entrepreneur. “Otherwise, we risk building a showcase sector rather than a competitive one.”

 

3. Regulatory Maturity and Commercial Readiness

Although the Communications, Space & Technology Commission (CST) has made strides in launching licensing frameworks, spectrum management policies, and space debris protocols, Saudi Arabia’s regulatory environment is still evolving and not yet at par with global commercial benchmarks.

 

Startups report lengthy timelines to secure launch permissions, spectrum allocations, or import/export licenses for satellite components. Additionally, the lack of local manufacturing standards and IP enforcement mechanisms poses risks for high-tech investors.

 

In a region with growing geopolitical complexity, export control laws, dual-use technology regulations, and data sovereignty policies must be carefully developed to attract long-term partners and comply with global norms such as those set by the ITU and UN COPUOS.

 

“The legal infrastructure is being built, but it must be faster and clearer,” said an executive from a European satellite firm working in the Kingdom. “Foreign investors need certainty, especially in a high-stakes field like space.”

 

4. Long Time Horizons and Uncertain Commercial Returns

Space, by nature, is a long-game sector. Building a sustainable business case often requires years of R&D, launch testing, and orbit validation, followed by more time before profitability is achieved. For most early-stage investors, this presents an unattractive risk profile.

 

In the Saudi context, where startup ecosystems are still maturing and exits are limited, the lack of near-term commercial wins may disincentivize private capital unless accompanied by patient co-investment structures or government-backed guarantees.

 

Moreover, venture capitalists often lack the technical due diligence capabilities to evaluate space startups — a gap that could be addressed through education, advisory boards, or specialist fund-of-fund mechanisms.

 

5. Regional & Global Competition

Saudi Arabia is not alone in its ambitions. The UAE, Israel, Turkey, and Egypt are all investing in space technology and are further along in areas such as satellite imaging, data services, or launch capabilities. These countries have also built strong bilateral ties with key partners like NASA, the European Space Agency, and private launch companies.

 

To stay competitive, Saudi Arabia must continue to differentiate itself — either by becoming the regional logistics and satellite ground hub, by localizing component manufacturing, or by offering globally competitive R&D incentives and workforce development programs.

 

Outlook to 2030: Orbiting Toward Opportunity

As Saudi Arabia accelerates its space ambitions, the road to 2030 presents not just symbolic milestones, but a tangible opportunity to transform its economic and technological trajectory. The Kingdom is no longer approaching the space economy as a prestige project—it is positioning it as a strategic growth engine embedded within national priorities.

 

1. Projected Market Size and Economic Contribution

According to a 2023 study by Euroconsult, the Middle East’s space economy could exceed $10 billion by 2030, with Saudi Arabia expected to claim 20–30% of that share if its current investment pace continues. This translates to a domestic space market of roughly $2–3.5 billion by the end of the decade, spanning satellite communications, imaging, data services, and emerging verticals like space-based IoT.

 

A 2024 white paper from the Saudi Space Agency (SSA) projects that space technologies could contribute 0.5% to the Kingdom’s GDP by 2030, alongside creating over 8,000 direct jobs and potentially 25,000 indirect jobs across supply chains and downstream services.

 

“We don’t see space as an isolated sector—it will empower other industries like agriculture, energy, logistics, and climate,” said Al-Tamimi, SSA’s CEO.

 

2. National Security & Sovereignty

By 2030, Saudi Arabia aims to achieve partial independence in satellite manufacturing, launch access, and data infrastructure. This autonomy is crucial not only for communications and earth observation, but also for national security, emergency response, and cyber resilience.

 

Efforts are already underway. The PIF’s Neo Space Group is building satellite ground stations and planning for a dedicated constellation to serve both civilian and strategic needs. Experts anticipate the development of dual-use satellite capabilities for border control, maritime monitoring, and disaster prediction.

 

As regional tensions and cybersecurity risks grow, space sovereignty will become a core tenet of national resilience—a perspective increasingly echoed by policymakers in Riyadh.

 

3. Becoming a Regional & Global Player

Saudi Arabia’s location gives it geopolitical and geographical advantages. Positioned between Europe, Africa, and Asia, it is ideally suited for:

  • Hosting ground station infrastructure
  • Supporting launch logistics in emerging spaceports (especially in Tabuk and Taif)
  • Serving as a regulatory and financing hub for the regional space economy

By 2030, the Kingdom could play a similar role in the Middle East that Luxembourg or Singapore plays in Europe and Southeast Asia: a niche space economy leader, enabling international startups and established players to base operations, raise capital, and test innovations in a stable, business-friendly environment.

 

4. Tourism, Education, and Public Engagement

Space is also being used as a tool for soft power, inspiration, and tourism. With commercial stratospheric flights set to begin via Halo Space by 2026, Saudi Arabia could become the first country in the Middle East to offer space-adjacent tourism to the public, attracting high-net-worth visitors and scientific missions alike.

 

Educational institutions are expected to expand their aerospace engineering programs, and Saudi youth—especially women—are being actively encouraged to pursue STEM paths. The success of Rayyanah Barnawi, the first Saudi female astronaut, has already sparked significant interest in space among young Saudis.

 

“When children see someone from their own country go to space, they begin to imagine careers that once felt unreachable,” said Huda AlMansoori, co-founder of a Riyadh-based STEM nonprofit.

 

5. Long-Term Vision: Moonshots and Beyond

While most of the current investment is focused on near-Earth technologies—LEO satellites, data platforms, and earth observation—Saudi Arabia is not ruling out deep space collaboration. The SSA has publicly discussed interest in:

  • Contributing to the moon and Mars missions via international partnerships
  • Establishing a Saudi payload program aboard commercial or governmental spacecraft
  • Participating in space mining dialogues, especially with countries like the U.S., Japan, and Luxembourg

By 2030, the Kingdom could feasibly become a co-sponsor of exploratory missions or a host for moon analog testing environments, leveraging its vast deserts and stable climate.

 

A Decade of Acceleration

Saudi Arabia’s space strategy is multi-layered and cross-sectoral. It intertwines national security, education, private sector development, and global influence. But the success of this strategy will hinge on a few key metrics:

  • Successful commercial satellite deployment from locally-led entities
  • A robust private investment ecosystem beyond state capital
  • Clear regulatory pathways for international partnerships
  • And a long-term talent development pipeline that ensures sustainability beyond 2030

“We are not in a race to the stars,” said Minister Abdullah Alswaha in a 2024 press statement. “We are building a platform that connects people, protects resources, and powers progress. Space is simply our next domain of growth.”

 

As the Kingdom enters the second half of Vision 2030, its space ambitions are no longer theoretical. They are grounded in infrastructure, capital, policy, and purpose, with clear momentum toward making Saudi Arabia not just a participant in the global space economy, but a leader in shaping its future.

 

To conclude, Saudi Arabia’s foray into space is more than a prestige play—it’s a strategic lever for economic diversification, tech independence, and global engagement. By 2030, the Kingdom aims to nurture a vibrant, sustainable space sector encompassing manufacturing, research, services, tourism, and data-driven industries.

 

The journey is ambitious. Critical will be continued investment, further private-sector development, scaled talent production, regulatory evolution, and guardrails for geopolitics. If the stars align, Saudi Arabia may well become the Arab world’s premier space economy, reshaping its global role and cementing the human capital and technological foundations of its post-oil future.

 

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Jun 4, 2025

Degefa: TruBuild to expand into UAE and Qatar in 2025

Noha Gad

 

The construction tech sector in Saudi Arabia is witnessing a transformative phase, driven by Vision 2030’s ambitious infrastructure projects and a growing focus on innovation. From smart cities to large-scale renewable energy initiatives, cutting-edge technologies such as AI, Building Information Modeling (BIM), and modular construction are reshaping the industry.

 

TruBuild, a leading Saudi construction tech company, is at the forefront of this evolution, delivering innovative solutions to enhance efficiency, sustainability, and digital transformation across the Kingdom.

Known for its advanced project management tools, automation, and data-driven insights, TruBuild has become a trusted partner for major developers and government entities, supporting Saudi Arabia’s mission to modernize its infrastructure with smarter, faster, and more cost-effective methodologies. 

 

Sharikat Mubasher held an interview with TruBuild’s Co-founder and CEO, Bisrat Degefa, to delve deeper into the trends, challenges, and future of construction tech in the Kingdom and the broader region.

 

TruBuild uses AI to streamline procurement and project management. How does the platform uniquely address delays and cost overruns compared to traditional methods?

Traditional tender evaluations often take 4–6 weeks, involve multiple full-time reviewers, and still produce inconsistent, subjective results. TruBuild transforms this process by ingesting thousands of pages of technical, commercial, and contractual data in minutes. It applies a transparent, rules-based scoring system enhanced by machine-learning insights and generates a fully auditable trail for every action. The result: evaluations are completed in 5–7 days by just two reviewers, with up to 85% cost savings, 70% faster cycle times, and significantly fewer downstream variations—thanks to early risk identification.

 

How do you see construction tech adoption today in Saudi Arabia and the wider region?

Adoption has moved from experimental pilots to core strategy. In 2019, fewer than 10% of top developers in the region used digital procurement tools; by 2025, over 60% are running live programs. Cloud-based PMIS adoption has grown from 20% to more than half. Saudi Arabia leads the charge, supported by mandates around BIM, e-tendering, and local data residency. What was once seen as optional is now essential to meet the region’s ambitious delivery timelines and scale.

 

What key challenges does TruBuild face in modernizing construction tech in Saudi Arabia and the GCC, and how have you tackled them?
Change aversion is a major hurdle—many teams still believe Excel is “good enough.” So, we built TruBuild to feel familiar: spreadsheet-style, no-code, and easy to learn in a single-day onboarding session. Data sovereignty concerns are resolved with fully Saudi-hosted deployments, compliant with ISO 27001 and NCA-ECC standards. To address fragmented procurement practices, we offer out-of-the-box templates for NEC, FIDIC, and local regulations. And we tackle skill gaps through embedded guidance and CPD-certified training delivered in collaboration with regional industry bodies.

 

You recently secured a $1 million seed round. How will this capital accelerate TruBuild’s growth?
 The funding enables us to scale our engineering, domain, and commercial teams. We’re launching a commercial evaluation module in Q3 2025 with an Arabic NLP interface and expanding go-to-market partnerships with leading project management consultancies to accelerate adoption across the region.

 

What are the company’s expansion plans in Saudi Arabia and the broader region?
 In Saudi Arabia, we are deepening our engagements with PIF subsidiaries and giga-projects. Regionally, we plan to enter the UAE and Qatar in 2025 through local system integrators, followed by targeted expansion into the UK and US markets, where we see strong demand for AI-driven construction tools.

 

How does TruBuild align with Vision 2030’s goals to digitize construction and localize technology?
 Vision 2030 calls for 70% local content, improved productivity, and greater transparency. TruBuild is designed and led from Saudi Arabia, and our clients are already seeing over 50% savings in procurement resource hours. The Vision’s delivery pace simply cannot be supported by legacy workflows. TruBuild shifts procurement from reactive to proactive, enabling faster, more accurate, and fully auditable decisions. Every riyal is tracked and justified, ensuring critical projects are delivered on time, on budget, and to the highest standards.

 

How do you expect construction tech to evolve in Saudi Arabia over the next five years?
We expect widespread adoption of AI-assisted workflows, contracts linked to digital twins, live ESG and schedule tracking, blockchain-enabled supplier payments, and automated compliance checks for codes and Saudization. With its combination of scale, urgency, and regulatory support, Saudi Arabia is on track to become a global leader in AI-powered construction, and TruBuild aims to be at the forefront of that evolution.

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Jun 1, 2025

AI at the Core: The Rise of Generative-First Startups in the Middle East

Kholoud Hussein 

 

In the rapidly evolving landscape of artificial intelligence (AI), a new breed of startups is emerging in Saudi Arabia and the broader Middle East and North Africa (MENA) region. These are generative AI-first startups—companies that are not merely incorporating AI into their operations but are fundamentally built around generative AI technologies. This strategic focus positions them at the forefront of innovation, offering scalable solutions across various sectors.

 

Defining Generative AI-First Startups

 

A generative AI-first startup is characterized by its foundational reliance on generative AI models. Unlike traditional companies that may adopt AI tools to enhance existing processes, these startups are conceived with AI at their core, leveraging technologies such as large language models (LLMs), generative adversarial networks (GANs), and other advanced algorithms to create novel content, solutions, or services.

 

Beyond Tools: Generative AI as the Core Business Model

 

In these startups, generative AI is not an auxiliary tool but the central component of their value proposition. This paradigm shift enables the creation of products and services that were previously unattainable, allowing for unprecedented levels of personalization, efficiency, and scalability. For instance, in the healthcare sector, generative AI can analyze vast datasets to generate personalized treatment plans, while in education, it can create customized learning materials tailored to individual student needs.

 

This approach also facilitates rapid prototyping and deployment, as AI models can be trained and fine-tuned to adapt to specific market demands swiftly. Consequently, generative AI-first startups can achieve significant market penetration with relatively lean operational structures, often requiring fewer human resources compared to traditional enterprises.

 

Prominent Generative AI-First Startups in Saudi Arabia and MENA

 

Several startups in Saudi Arabia and the MENA region exemplify the generative AI-first model:

  • Mozn (Saudi Arabia): Specializes in enterprise AI solutions, including OSOS, a generative Arabic AI model designed for natural language understanding and generation. 
  • Lucidya (Saudi Arabia): Offers a customer experience management platform powered by AI, providing real-time insights and interactions, with a particular focus on Arabic language analysis. 
  • Kinetik (Saudi Arabia): Utilizes generative AI to personalize patient care, analyzing health data to provide tailored health plans and recommendations. 
  • DXwand (Egypt & UAE): Develops AI-powered chatbots and voice assistants, focusing on Arabic and English language support to automate customer service and extract insights from unstructured data. 
  • Seez (UAE): Provides AI-driven solutions for the automotive industry, including an AI-powered virtual assistant that enhances customer support with chatbot functionality and real-time insights. 

 

Strategic Implications for the Region

 

The rise of generative AI-first startups aligns with Saudi Arabia's Vision 2030, which emphasizes technological innovation and economic diversification. By fostering an ecosystem conducive to AI development, the region is positioning itself as a hub for cutting-edge technologies. Investments in AI infrastructure, talent development, and regulatory frameworks are critical to sustaining this growth trajectory.

 

Moreover, the success of these startups demonstrates the region's potential to make a significant contribution to the global AI landscape, offering solutions that address both local and international challenges. As generative AI continues to evolve, the MENA region's proactive engagement with this technology will be instrumental in shaping its economic and technological future.

 

In conclusion, generative AI-first startups represent a transformative force within Saudi Arabia and the MENA region, redefining traditional business models and unlocking new avenues for innovation. Their emergence underscores the importance of embracing advanced technologies to drive sustainable economic growth and competitiveness on the global stage.

 

 

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May 29, 2025

Beyond speed: why dark stores are the next big thing in supply chain revolution

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.

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