Kholoud Hussein

As Saudi Arabia accelerates its journey toward Vision 2030, fintech innovation has emerged as a critical driver in reshaping access to capital, democratizing investment, and strengthening the Kingdom’s financial sector. With sukuk issuance reaching record levels and digital platforms reducing barriers for both corporates and individual investors, the ecosystem for Islamic finance is undergoing a profound transformation.

Within this evolving landscape, Tarmeez Capital has positioned itself as a frontrunner. Licensed by the Capital Market Authority and founded in 2022, the Saudi fintech is redefining how businesses—from large corporates to SMEs—secure financing. By leveraging technology to issue sukuk faster, more transparently, and in full compliance with Shariah principles, Tarmeez Capital bridges a critical gap in the Kingdom’s corporate debt market.

In this exclusive interview with Sharikat Mubasher, Nasser Al-Saadoun, Founder and CEO of Tarmeez Capital, sheds light on its business model, the impact it is making on companies and investors, and its role in enabling Saudi Arabia’s ambition to become a global hub for Islamic and sustainable finance.

Please can you give us an overview of Tarmeez Capital. What is your business model, and when was it founded? 

We are a Saudi-based fintech company licensed by the Capital Market Authority (CMA), reshaping access to finance in Saudi Arabia through fast, inclusive, and fully Shariah-compliant solutions. We founded Tarmeez Capital in 2022 with a clear purpose: to close the financing gap facing many businesses by connecting growing companies with the capital they need to thrive. We issue sukuk to fund enterprises across the Kingdom and operate a pioneering, people-first digital platform that seamlessly enables purpose-driven investors to participate in these issuances. 

Our technology enables sukuk issuance up to seven times faster than traditional channels, allowing companies to secure funding in as little as 10 days with repayment terms up to 10 years. We have facilitated over SAR 2 billion in lending programs, achieved a 459 percent increase in sukuk issuances over the last 15 months, and built a community of over 180,000 retail and institutional investors.

Which type of companies does Tarmeez Capital provide Islamic financing to? How do you select your portfolio to lend to? 

Tarmeez Capital supports companies across sectors, from established corporates like Red Bull Mobile and Red Sea International to SMEs. Our portfolio selection is guided by rigorous credit screening powered by AI-driven data analytics, our Shariah committee’s oversight, and a focus on businesses that contribute to Vision 2030 goals. We have a zero percent default rate, reflecting our robust due diligence and the quality of our portfolio.

What are the benefits for your users (companies seeking financing & institutional investors)? 

Traditional sukuk issuance often takes months and is limited to large corporations. With Tarmeez Capital, companies of all sizes can receive tailored, fast, and ethical capital - allowing them to seize growth opportunities. This year, Red Sea International, for example, used our sukuk offering to avoid costly project delays with rapid funding that kept engineers and factory teams on schedule. 

Through our digital platform, our investor community can gain access to transparent, Shariah-compliant returns of around 13.5 percent annually, compared to 7.3 percent for real estate and 8.5 percent for stocks. Our real-time digital dashboards and low minimum investments enable anyone to support transformative projects with ethical impact.

How does Tarmeez Capital position itself within Saudi Arabia’s rapidly evolving corporate debt landscape, especially under Vision 2030?

We bridge a critical gap by digitizing sukuk issuance for companies of different sizes. There is a clear demand in the Kingdom for fast, digital, and value-driven funding. Our seamless digital process positions us perfectly amongst Saudi Arabia, tech-savvy population. We focus on advancing funding for sectors such as healthcare, logistics, and education, etc.– all of which are aligned with Vision 2030. Our business model also supports SMEs, which are projected to contribute 35 percent of total GDP by 2030.  

What role do fintechs such as Tarmeez Capital play in broadening access to capital markets and investment opportunities? 

Fintechs like Tarmeez Capital make Shariah-compliant finance accessible to more Saudi businesses and individual investors alike. Our digital investment platform has been built to reduce the cost, complexity, and friction traditionally associated with debt capital markets. Our focus on creating a streamlined, user-friendly experience has contributed to the impressive growth of our investor community to date, a trend that we anticipate continuing.

Our platform empowers investors to invest small amounts into sukuk that back local companies. For example, people can now support projects like RASF’s Deem townhouses or Qudra’s solar rollout. This democratization of capital fuels entrepreneurship, spreads wealth creation, and reinforces Saudi Arabia’s Financial Sector Development goals.

Saudi Arabia is rapidly positioning itself as a global hub for Islamic finance, driven by accelerating sukuk issuance. How do you see this sector expanding in the next 5 – 10 years, and what role will Tarmeez Capital have? 

We expect Saudi Arabia’s sukuk market to continue its rapid growth. Global sukuk issuances reached USD 199 billion in 2023 and show no sign of slowing. Tarmeez Capital will play a central role in this transformation by making Shariah-compliant financing faster, more accessible, and more transparent for corporates and investors alike. Our tech-driven scalability and proven track record, including the lowest default rate among comparable private debt platforms in Saudi, position us as a national leader and partner of choice as the sector matures.

More broadly, we see Islamic finance moving firmly into the mainstream. Younger investors are seeking ethical, impact-oriented investments that reflect their values while delivering competitive returns. Islamic finance, built on principles of justice, risk-sharing, transparency, and social responsibility, is perfectly aligned with this shift. Unlike conventional debt, it prohibits interest (Riba) and emphasizes asset-backed, productive investment, making it inherently transparent, value-driven, and sustainable.

Saudi Arabia is set to become a global hub for Islamic and sustainable finance, issuing billions in ESG-linked sukuk and leveraging its Vision 2030 ambitions for inclusive, long-term growth. Platforms like Tarmeez enable everyday citizens to invest ethically, help finance the development of their communities, and support a self-sustaining ecosystem that benefits everyone.

In a region where regulatory dynamics are evolving quickly, especially for technology, how do you assess and manage regulatory risk?

Compliance is incredibly important. Our independent Shariah committee and close partnership with the Capital Market Authority help ensure we always meet the highest standards. Beyond regulation, we also use data and advanced AI to monitor the health of every investment, so that we can detect potential risks early and manage them carefully. This thorough approach allows us to grow sustainably and responsibly.

Many startups struggle to scale beyond the early-growth phase. Are there any patterns you have observed that block Saudi startups from becoming regional or global players?

A recurring challenge is facilitating access to capital that matches the vast ambitions of our most exciting startups. Too often, high-potential companies are held back by the rigidity of traditional lending. However, fintechs such as Tarmeez Capital enable companies to grow with the speed and flexibility they need to succeed regionally and globally.

Looking ahead over the next 3 - 5 years, what role do you see Tarmeez Capital playing in shaping the MENA innovation ecosystem?

We see ourselves becoming a vital catalyst for Shariah-compliant investing and capital raising in the region, and expanding our platform’s reach through smarter infrastructure, new products, and better user experiences. Our ambition is to continue to support founders in securing funding quickly and ethically, unlocking new ventures and supporting economic growth. 

We aim to grow Tarmeez Capital’s investor community, creating a powerful and self-sustaining cycle of growth, opportunity, and shared success. 

Finally, what advice would you give to Saudi companies that are looking for alternative forms of financing? 

Our advice is simple. Explore forms of accessing finance outside of the conventional channels. Innovative, Shariah-compliant solutions like Tarmeez Capital offer speed, flexibility, and alignment with your values. Whether you are rolling out solar power across commercial properties like Qudra Energy or delivering affordable homes like RASF Real Estate, this is your moment to embrace a new path to financing that will help you grow and contribute to the future of the Kingdom. Choosing providers who understand the local market and comply fully with Islamic principles will ensure financing that is both responsible and sustainable, setting businesses on a path to long-term success.

Throughout the discussion, Tarmeez Capital emphasized its mission of making Shariah-compliant financing faster, more inclusive, and more impactful for both businesses and investors. By digitizing sukuk issuance, expanding access to ethical investment opportunities, and ensuring robust compliance, the company is reshaping the role of fintech in Saudi Arabia’s financial sector. As the Kingdom positions itself as a global hub for Islamic finance, Tarmeez Capital aims to serve as both a catalyst and partner—empowering companies to grow responsibly while giving investors the tools to align financial returns with ethical values.

Noha Gad

The rapid growth of e-commerce urged retailers to deliver faster, cheaper, and more reliable services to meet customers’ preferences for same-day or even two-hour deliveries. Traditional fulfillment models, relying on large regional warehouses, often struggle to meet urban delivery expectations due to long transit times and high last-mile costs, which can account for up to 53% of total shipping expenses.  

This shift has driven the adoption of localized fulfillment strategies, with Micro-fulfillment centers (MFCs) emerging as a scalable solution to bridge the gap between supply and demand in high-density markets.

MFCs integrate directly with e-commerce platforms, allowing real-time inventory synchronization and seamless order processing. They play a pivotal role in optimizing e-commerce operations by enabling proximity-based fulfillment. By storing high-turnover inventory in urban micro-hubs, retailers can drastically reduce delivery times, often to less than 24 hours, while improving order accuracy through automation.

These compact, automated centers, typically ranging from 3,000 to 10,000 square feet, revolutionize modern logistics as they bring inventory closer to urban consumers and enable faster deliveries and more efficient supply chains. MFCs were developed to meet rising consumer demand for same-day or next-day delivery, utilizing automation and real-time inventory systems to process orders with speed and precision, making them a cornerstone of agile e-commerce fulfillment.

How MFCs work

The primary objective of an MFC is to optimize last-mile delivery, the most expensive and time-sensitive segment of the supply chain, by reducing the distance between inventory and end customers. 

Micro-fulfillment centers integrate three essential components: advanced management software, automated physical infrastructure, and streamlined packing operations. The software layer processes incoming online orders in real time, synchronizing with e-commerce platforms and inventory systems to ensure accuracy and speed. Meanwhile, the physical infrastructure leverages robotics, automated storage and retrieval systems (AS/RS), and conveyor networks to retrieve items with minimal human intervention, significantly reducing labor costs and error rates. Once ready, items are transferred to packing stations where staff or automated systems prepare them for dispatch, often within hours of order placement.

These centers can operate as standalone facilities or be embedded within existing retail stores, enabling omnichannel fulfillment strategies such as ship-from-store, buy-online-pickup-in-store (BOPIS), and curbside pickup.

Types of micro-fulfillment centers 

There are three primary types of MFCs: standalone, store-integrated, and dark stores. Standalone MFCs are independent, compact logistics facilities typically ranging from 3,000 to 10,000 square feet. These centers focus exclusively on processing online orders for rapid last-mile delivery. They are often built in repurposed industrial spaces, basements, or standalone urban lots and can be deployed within months due to minimal construction requirements. They are effective for e-commerce businesses seeking to scale delivery speed without relying on existing retail footprints.

Store-integrated micro-fulfillment centers are embedded within active retail or grocery stores, typically in backrooms, basements, or underutilized floor space, allowing simultaneous in-store shopping and online order fulfillment. This type leverages the store’s proximity to customers to reduce shipping costs and accelerate delivery times, often enabling curbside pickup, BOPIS, and local delivery within hours. This model also improves inventory turnover by dynamically allocating stock between in-store sales and online fulfillment, reducing overstock and shrinkage.

Additionally, dark stores are retail locations that have been converted into fully automated, customer-inaccessible fulfillment centers dedicated exclusively to processing online orders. Unlike store-integrated MFCs, dark stores do not serve walk-in customers; they serve fulfillment staff or robots that pick items from shelves and pack them for home delivery or pickup. 

Dark stores are particularly prevalent in grocery and fast-moving consumer goods (FMCG) sectors, where demand for rapid delivery is high.

How MFCs boost the e-commerce industry

Retailers of all sizes leverage micro-fulfillment centers to stay competitive as they offer a wide range of benefits, including: 

-Faster delivery times.

-Improved customer satisfaction.

-Lower delivery and inventory costs.

-Space optimization.

-Omnichannel integration.

The future of MFCs is shaped by rapid urbanization and the growing need for hyper-local fulfilment solutions, fueled by advancements in robotics, AI-driven inventory management, and automation technologies. Thus, these centers are no longer a futuristic concept but a strategic necessity in the evolving landscape of e-commerce and urban logistics. 

MFCs offer a scalable, efficient solution to meet consumers’ demand for same-day and even same-hour delivery by bringing inventory closer to end customers through compact, automated hubs located in or near cities.

Finally, MFCs represent a transformative shift in how goods are stored, picked, and delivered. As technology advances and urban density increases, MFCs will become an operational imperative for businesses aiming to meet rising customer expectations for speed, convenience, and sustainability in the digital age.

Ghada Ismail

For years, the startup scene has been obsessed with unicorns; those rare, billion-dollar companies that symbolize hypergrowth, massive funding rounds, and meteoric success. But as markets mature and the realities of sustainable business sink in, many in the global startup ecosystem are beginning to ask: Do we really need more unicorns, or something entirely different?

Across the Middle East, and particularly in Saudi Arabia, the answer increasingly leans toward a new breed of companies: camels and zebras. These startups may not dazzle with billion-dollar valuations, but they embody traits that could prove far more valuable in the long run: resilience, sustainability, and social purpose.

From Unicorns to Camels and Zebras

The “unicorn” was once the ultimate prize: a company valued at over $1 billion, fueled by venture capital, and celebrated for its speed of growth. But this obsession often came at a cost. Many unicorns prioritized expansion over profitability, and when market conditions shifted, they found themselves struggling to stay afloat.

The global downturn in tech valuations and the funding scene exposed over time how fragile many of these high-growth models were. Meanwhile, startups that operated with leaner models, focused on cash flow, and adapted to uncertainty—the so-called camels—proved more resilient.

The term “camel startup,” first popularized in the Middle East and North Africa, captures a distinctly regional mindset. Just as camels survive harsh desert conditions, these startups are designed to withstand economic volatility. They grow steadily, conserve cash, and adapt intelligently to changing markets.

Zebras, on the other hand, represent a different kind of strength. Coined by a group of women entrepreneurs in Silicon Valley, “zebra startups” pursue profit and purpose simultaneously. They are black and white, symbolizing balance. In emerging economies like Saudi Arabia, this philosophy is resonating strongly, particularly among founders tackling social, environmental, or inclusion-driven challenges.

The Saudi Context: Vision 2030 and the Shift in Startup Mindset

Saudi Arabia’s startup ecosystem is evolving rapidly. Over the past few years, the Kingdom has transformed into one of the MENA region’s fastest-growing entrepreneurship hubs, with total venture funding reaching new highs annually. Yet as the market matures, there’s a visible shift in what founders, investors, and policymakers value.

Under Vision 2030, the Kingdom’s economic diversification plan, sustainability, innovation, and resilience are central pillars. This aligns closely with the camel and zebra mindset. Saudi startups are no longer just chasing valuations; instead, they’re building business models that can endure challenges, create jobs, and contribute to national priorities such as fintech innovation, food security, clean energy, and women’s empowerment.

Venture capital firms, too, are evolving. While early-stage funding remains strong, there’s greater scrutiny over unit economics, profitability, and long-term impact. Investors are asking tougher questions, not only about how fast startups can grow, but how well they can sustain that growth.

Camels in the Desert: Startups That Endure

In Saudi Arabia and the wider Gulf, the camel metaphor feels especially apt. Startups like Jahez, Tamara, and Foodics exemplify the camel mindset. Each grew deliberately, balancing rapid market capture with clear revenue models.

Jahez, for instance, built a profitable food-delivery platform long before its IPO, expanding carefully across the Kingdom instead of burning cash on regional domination. Tamara, one of Saudi’s leading buy-now-pay-later players, achieved remarkable growth but stayed focused on regulatory compliance and operational sustainability—traits that make it more of a camel than a traditional unicorn.

Similarly, Foodics navigated funding rounds and expansion by maintaining profitability as a core discipline. These companies may still reach unicorn valuations, but their success rests on fundamentals rather than hype.

This approach is especially relevant in Saudi Arabia’s macroeconomic environment. While government support and investor interest remain strong, startups that can survive without constant external funding are better positioned for long-term success.

The Rise of Zebras: Purpose Meets Profit

The zebra philosophy—building companies that are both profitable and purposeful—is also taking root in the Kingdom. A growing number of Saudi startups are tackling societal challenges, from financial inclusion to healthcare access, while maintaining sound business models.

Take Nana, which has expanded access to online grocery delivery not just in major cities but in smaller regions, improving supply chain efficiency and consumer convenience. Another example is Labayh. Founded in 2018, Labayh provides mental health and therapy services in Arabic, offering one-on-one therapy sessions, webinars, support groups, and self-assessment tools. It also acquired the UAE meditation app Nafas, adding over 300 audio clips for meditation and stress relief, to expand its wellbeing portfolio. 

These companies demonstrate that profitability and social impact can go hand in hand. They are building trust with customers, generating real economic value, and aligning with national goals such as improving the quality of life and fostering digital innovation.

Why the World Needs More Camels and Zebras

Globally, the call for more sustainable startup models is growing louder. As capital markets tighten, founders can no longer rely solely on fundraising cycles to survive. The camel and zebra frameworks encourage startups to focus on cash discipline, real impact, and steady growth; values that are not only good for business but for economies at large.

In emerging markets like Saudi Arabia, these models carry even more importance. Economies in transformation need startups that can withstand uncertainty, employ locals, and create solutions tailored to regional challenges. Unicorns might bring attention, but camels and zebras bring stability.

Moreover, these models align perfectly with Saudi Arabia’s evolving venture ecosystem. Initiatives by entities such as Monsha’at, SDAIA, RAED Ventures, and STV are increasingly supporting startups that solve real problems rather than chase inflated valuations.

The Investor Perspective: Quality Over Hype

Investors across MENA are beginning to recalibrate their expectations. The new question isn’t “Who will be the next unicorn?” but “Who will survive the next downturn?”

Funds like IMPACT46 and Wa’ed Ventures have emphasized the importance of sustainable scaling and solid governance. International investors entering Saudi Arabia are also adjusting their lenses, preferring startups with clear profitability paths, diversified customer bases, and mission-driven growth.

This shift in mindset could redefine how success is measured in the Saudi startup scene. Valuation alone is no longer enough; longevity, local relevance, and measurable impact are becoming the new metrics of excellence.

A Cultural Shift in Entrepreneurship

The rise of camels and zebras also reflects a deeper cultural transformation among Saudi entrepreneurs. A new generation of founders, many educated abroad but rooted locally, is questioning the “growth at all costs” narrative.

They are more aware of the risks associated with overfunding, more focused on building sustainable ecosystems, and more open to collaboration rather than competition. Many are exploring hybrid funding models—mixing venture capital with grants, government programs, and non-dilutive financing—to maintain control and flexibility.

This mindset aligns with broader societal changes under Vision 2030, which emphasizes entrepreneurship as a driver of economic and social progress, not merely personal wealth.

Toward a More Balanced Future

The world may always celebrate unicorns as they capture imagination and headlines. But in Saudi Arabia’s context, the future likely belongs to the camels and zebras: startups that combine endurance with empathy, profitability with purpose.

As global markets grow more volatile and sustainability becomes a non-negotiable standard, these models will define the next era of entrepreneurship in the Kingdom and beyond.

Saudi Arabia’s journey from an oil-driven economy to a diversified, innovation-powered one will depend not on a few billion-dollar valuations, but on thousands of resilient, responsible, and adaptive startups.

And that’s where the real magic lies, not in chasing mythical creatures, but in nurturing the ones that thrive in the real world.

Noha Gad 

Loyalty and reward programs in the Europe, the Middle East, and Africa (EMEA) region are evolving rapidly, triggered by shifting consumer expectations for hyper-personalized, seamless, and engaging experiences. As businesses seek to deepen customer relationships amid increasing digitalization and competitive markets, loyalty platforms go beyond simple points systems to deliver meaningful value that resonates with today’s diverse consumers.

Dsquares transforms the loyalty sector by offering an end-to-end B2B loyalty and rewards solutions that cover the entire program lifecycle. This comprehensive approach, combined with deep regional expertise, enables Dsquares to create truly personalized, impactful loyalty programs that drive business growth and customer retention.

In this regard, Sharikat Mubasher interviewed with CEO Marwan Kenawy to dive deep into Dsquares’ innovative approach and diverse offerings, and to discover key trends and challenges in the loyalty and rewards realm across the region. 

First, can you tell us more about Dsquares’ offerings and how it differentiates itself from other loyalty and rewards companies in the region?

Dsquares is an end-to-end B2B loyalty and rewards solutions provider established in 2012 and serving clients in over 16 countries. We are trusted by Fortune 500, multinationals, and global giants as we offer end-to-end tailored loyalty solutions to drive business growth.

By end-to-end, we mean that we do not just offer software; rather, we manage the entire lifecycle of a loyalty program, giving our clients the flexibility and peace of mind to focus on their business and leave the customer acquisition and retention to us. Our offerings include: 

• Strategic commercial planning: from strategy building and market analysis to program design and performance.
• Technology and solutions: our modular technology covering traditional loyalty mechanics, customer engagement solutions, short and long-term loyalty campaigns, rewarding solutions, and advanced data and analytics solutions. All running on Dsquares AI engine.
• Field operations: from on-ground execution and program setup and management to anomaly detection and quality control.
• Merchant management: with an extensive network of over 25,000 merchants and brands across the MENA region, we manage the end-to-end relationship for our clients, from onboarding to enablement, to legal, to payments.
• Customer success management: where we have dedicated account managers working with our clients to ensure program optimization, providing timely analysis on enhancements to ensure our clients get the best program.

What makes us different is our end-to-end capabilities. We provide a fully managed service and own deep regional expertise and presence, with a team of certified experts. This is crucial for designing effective programs leveraging our unmatched understanding of local markets, consumer behavior, and business cultures, in addition to our extensive and diverse merchant network, which is the biggest in the region. There is a saying that “a loyalty program is only as good as its redemption options”. Well, we make it simple, effective, and diverse, catering to every persona and making sure our clients’ customers get rewarded from the brands they love. 

How does Dsquares harness AI and data analytics capabilities to transform the loyalty and rewards industry?

At Dsquares, we leverage AI and data analytics as the core engine of our technology for all our solutions. We use it to transform loyalty programs from simple transactions to smart systems that foster and grow customer relationships by personalizing their experience and journey, proving ROI, all while ethically acquiring zero-party data. 

Some of the use cases where we stand out are:

• Prescriptive analytics: leveraging C-cubed, our campaign management system, we are able to analyze customers’ behavior and predict what they might do, while recommending the actions to take. For example, detecting that a high-value customer has a high percentage of churning, our solution flags this and prescribes the right actions to take, which could be an offer from their favorite brand, a trigger of a challenge, or a surprise experience. 
• Dynamic loyalty: where every message, reward, offer, or challenge is customized per individual, not per segment. Making it a truly hyper-personalized experience for all customers, directly addressing the modern consumer’s expectation to be recognized as an individual. An example here is the work we have done with ExxonMobil for their traders program. Leveraging Dynamic loyalty, we combined tiered rewards, KPI-based challenges, and gamification tied to purchasing specific products (SKUs), driving targeted growth and a 2x increase in monthly engagement. 

We are using AI to ethically acquire zero-party data. We do this by using analytics to design engagement strategies that customers willingly opt into, solving the data privacy challenge. 

An example here is a short-term loyalty campaign we ran for Pepsi in Saudi Arabia. They are the official sponsor for the Saudi League, and they wanted to push sales and gather data about their customer. Only, they had to earn the privilege to get this data. So, we built a gamification strategy to engage Saudi league fans and reward them instantly by completing personalized challenges upon buying Pepsi cans. Fans eagerly shared their data to make use of the surprises they were getting.

What are the key challenges businesses face when implementing loyalty programs, and how does Dsquares tackle them?

Based on our experience, businesses often encounter these four major challenges. Our entire business model is designed to overcome these challenges as an expert partner.

     -Complexity of End-to-end management
Many companies underestimate the effort required to run a loyalty program. It is not just an app or a points system; it involves strategy, technology, merchant acquisition, operations, and continuous optimization. 
As mentioned before, this is our core differentiator. We provide a fully managed, end-to-end model, allowing our clients to focus on their core business while we manage the entire loyalty journey on their behalf.

     -Creating real value and personalized experiences for customers
One of the most common challenges we have seen is programs that offer little to no value for their customers or those that are similar or redundant to their competitors. Customers are expecting brands they love to offer them programs that recognize them as individuals and give them hyper-personalized, relevant experiences.
Our engagement solutions, including AI-powered personalization and Dynamic loyalty, gamification, and experiential rewards, as well as our extensive merchant network and our smart campaign engine, help us build value for our customers. By understanding their preferences and behavior, we can predict their needs, offer personalized recommendations, incorporate engaging connections, and offer rewards based on their individual interests. This helps build emotional connections with the brand.

     -Data Silos and Proving ROI
To date, many businesses see loyalty as a “nice to have”. However, when implemented correctly, loyalty solutions can play a significant role in every business strategy. Businesses also have their customer data locked in separate systems. Without a unified view, it is impossible to truly understand the customer or prove the financial impact of the loyalty program. 
With our Dsquares AI engine at the core of all our solutions, we built an analysis platform that builds a 360-degree view of the client, integrating data from every touchpoint, from acquisition, retention, engagement, and supports the integration with key data sources. This breaks down the silos, which is not only essential for effective personalization but also helps create value for brands.
In addition, we have the live reporting tools to estimate, measure, and report on the program's financial performance. This directly links loyalty activities to business outcomes like increased customer lifetime value (CLV), reduced acquisition costs, and protected revenue, satisfying CFOs and proving clear ROI.

     -Acquiring zero-party data and building trust
The increase in data privacy regulations, the rise of Web 3.0, and the different law requirements per country are all challenges facing any business, and without data, it is hard to grow a business. Brands need their customers to willingly share their data and preferences in order to grow. And this is where Dsquares can help through value exchange and loyalty. As mentioned before, building the right strategy that delivers unique value to customers makes them want to share their data. We help clients design programs and campaigns that offer personalization and valuable experiences that customers are incentivized to share their data, making loyalty programs a strategic asset for building direct, trusted customer relationships.

What are the biggest opportunities and key trends that could reshape the loyalty and rewards market in Saudi Arabia and the wider GCC region?

The loyalty landscape in the region is being fundamentally reshaped by a shift in buyer behavior, placing customer-centricity at the core of all key trends. 

     -The rise of zero-party data as a strategic asset
Brands need reliable, consented customer data to make informed decisions and personalize their customers’ experiences. The new data privacy rules are making it a challenge. 
Opportunity: positioning loyalty programs as the primary value-exchange mechanism for acquiring zero-party data. Customers will be more willing to share their preferences, interests, and behaviors in exchange for a more personalized and rewarding brand experience.

     -Hyper-personalized experiences 
This is about delivering a unique, relevant experience to every single customer in real time. 
Opportunity: Loyalty engagement solutions can act as the central hub, unifying touchpoints, treating customers as individuals, not segments, providing seamless omnichannel experiences, and recommending the actions to take next. This ensures a consistent loyalty experience whether a customer shops online, in-store, or through an app. This 360-degree customer view is invaluable for brands.

     -Rise of partnerships and coalition loyalty
This is a key trend, and we have seen brands creating ecosystems of value through strategic partnerships. These partnerships can add value for both the brand and the customer, and this is a trend that will continue to grow over the coming years. In the GCC, the market has been shifting to a mindset where businesses collaborate in loyalty to compete more effectively in a crowded market.
Opportunity: Partnerships help address modern consumers who have diverse loyalties and do not want to be locked into one brand silo. They also increase the value of the program and combat the digital clutter, which is a rising challenge for marketers globally. It also opens more value for zero-party data, enabling all partners to build richer, more holistic views of their shared customers.

     -Shift from transactional to experiential loyalty
GCC consumers are increasingly looking for value beyond discounts. They are looking for brands that understand their lifestyle and create memorable experiences, whether by unique recognition, status, exclusive access to events, or even meeting their favorite celebrity. 
Opportunity: offering experiential and emotional loyalty, through tiered programs with VIP status offering exclusive benefits, gamification to create engaging challenges and rewards, unique experiences like meet and greets, event tickets, limited edition products, or private shopping.

     -Alignment with national economic visions
Most of the GCC countries have their national agendas, such as the Saudi Vision 2030, with the focus on diversifying the economy, increasing digital transformation, and boosting tourism.
Opportunity: loyalty programs are actually the perfect tool to support these goals by:

1. Driving financial inclusion by incentivizing digital payments. An example is a project we had with Egypt Post, where citizens were rewarded for digitizing their payment experience. The more you spend digitally, the less you withdraw, the more you get rewarded. This helped in banking adoption, specifically in the rural areas.
2. Boosting tourism and entertainment through creating destination-based loyalty solutions and campaigns that reward tourists for spending across hotels, excursions, and retail, and drive people to visit the country through value-based campaigns.

How does Dsquares plan to scale its technology infrastructure to support future growth?

When it comes to scaling our technology, we are building on our Modular, Intelligent, Automated, API-First architecture, driven by our AI-powered engine. 

Our modular approach helps us to scale by easily adding features, services, or entire modules without disrupting the entire system. This enables us to quickly adapt to markets and new market demands.

Our API-driven approach makes it easy to integrate with a vast array of partner systems, scaling our solutions to fit every client’s needs. We give the flexibility to our clients to have their technology hosted online, on premises, or as a hybrid model. 

We are deeply investing in AI and automation. This helps us manage complexity intelligently. Also, we automate our core functions from automated personalization, anomaly and fraud detection, and operational efficiency, which thereby allow us to protect the ecosystem as it grows, leverage AI to prescribe the right triggers making campaigns efficient at scale, and reduce operational overhead.

Dsquares relies on building a robust data infrastructure that integrates data from countless sources and becomes more valuable with scale, in addition to providing deeper insights while helping to train our AI models, ultimately making their predictive and prescriptive analytics even more accurate. 

We are investing in next-generation tools such as advanced gamification and real-time campaign management to ensure the platform can support the future of engagement, which we see will be more immersive and data-driven.

Additionally, we plan to maintain quality, performance, and security, and obtain the required enterprise-grade certifications.

How do loyalty and rewards contribute to enhancing the digital economy in countries where Dsquares operates?

First, they contribute to driving financial inclusion and digital payment adoption. In many of Dsquares' markets, a significant portion of the population is unbanked or underbanked. Loyalty programs act as a powerful incentive to bring these users into the formal digital economy. For instance, programs linked to financial and banking services, like Egypt Post, reward citizens for any digital transaction they perform with rewards from merchants that link to their lifestyle. Similarly, programs linked to telecom services, like Vodafone, enable users to earn points for using a mobile wallet, paying a bill online, or sending money digitally, making these behaviors habitual. As a result, loyalty and reward programs contribute to reducing reliance on cash, moving them to use digital wallets, credit cards, and applications, in addition to increasing the volume of formal digital transactions. They also help central banks and governments achieve their financial inclusion targets. 

Second, these programs play a pivotal role in supporting and digitizing Small and Medium Enterprises (SMEs) through strategic partnerships. Acquiring customers and competing with larger brands are key challenges for SMEs. So, being part of a large loyalty merchant network or a coalition loyalty program managed by a company like Dsquares gives them instant access to a vast customer base. For example, local restaurants or boutiques can become a redemption partner in major loyalty programs of banks and other industries. This can help in driving foot traffic and sales from high-value customers they would not normally reach, and encourage cooperation rather than competition between local and large brands. 

Third, loyalty and reward programs help SMEs digitize their operations by using points as a currency, enabling them to grow in alignment with the economic diversification goals in many countries. Such programs can also increase flexibility for consumers and foster engagement across different sectors, where SMEs are collaborating with major brands, banks, telcos, oil and gas companies, and more. 

Finally, coalition loyalty programs can heavily promote tourism in GCC countries by attracting and rewarding tourists. Tourists can earn a unified loyalty currency for spending on flights, hotels, attractions, and retail within the country. This will eventually encourage longer stays and higher spending, and boost the digital tourism economy by creating a seamless, rewarding digital experience for visitors.

Ghada Ismail

Every founder faces a defining question early on: how to fund growth without losing control. Should you give investors a stake, or rely on grants and incentives to stay independent? In Saudi Arabia’s fast-growing startup scene, understanding the difference between non-dilutive funding and equity financing can shape your company’s future from day one.

What Is Non-Dilutive Funding?

Non-dilutive funding refers to capital that doesn’t require you to give up any shares or ownership in your company. Instead, you receive financial support, grants, or incentives that help your business grow while you retain full control.

In Saudi Arabia, this form of support has expanded rapidly under Vision 2030, with programs designed to empower entrepreneurs and stimulate innovation.

Examples include:

• Monsha’at programs, such as financing initiatives and startup competitions.
• The Human Resources Development Fund (Hadaf), which offers wage support and training grants.
• The Saudi Venture Capital Company (SVC)’s indirect funding initiatives through funds and accelerators.
• Government grants and R&D programs in partnership with KAUST, KACST, or the Ministry of Communications and Information Technology.
• Loans and guarantees offered by Kafalah and Saudi EXIM Bank for export-oriented startups.

Pros of Non-Dilutive Funding

• You stay in control: No need to give up shares or decision-making power.
• Ideal for early stages: Helps test and validate ideas before raising equity.
• Government-backed stability: Programs often align with national priorities, providing reliable support.
• Encourages innovation: Especially useful in sectors like HealthTech, AgriTech, and renewable energy.

Cons of Non-Dilutive Funding

• Highly competitive: Programs have limited slots and strict eligibility criteria.
• Lengthy approval cycles: Applying and securing funds can take time.
• Restricted spending: Funds may need to be used for specific projects or milestones.
• No investor mentorship: You miss the strategic support that comes with equity investors.

What Is Equity Financing?

Equity financing means selling a portion of your company’s ownership in exchange for capital. In Saudi Arabia, this is becoming more common as venture capital activity grows and global investors turn their eyes toward the Kingdom.

Examples include:

• Angel investors and family offices
• Venture capital firms like RAED Ventures, Impact46, and Wa’ed Ventures
• Corporate investors such as STC Ventures and Aramco Ventures
• Government-backed funds through SVC, and Jada Fund of Funds’ partnerships

Pros of Equity Financing

• Large growth capital: Fuels rapid scaling, hiring, and market expansion.
• Mentorship and connections: Investors often open doors to networks, talent, and markets.
• Shared risk: You’re not repaying loans if the business struggles.
• Market validation: Attracting investors signals credibility to customers and partners.

Cons of Equity Financing

• Ownership dilution: You give up part of your company.
• Reduced control: Investors may request board seats or decision rights.
• Exit expectations: Most investors look for returns within a few years.
• Possible vision misalignment: Strategic differences can arise between founders and investors.

Which One Should You Choose?

There’s no one-size-fits-all answer; it depends on your startup stage, goals, and risk appetite.

• If you’re developing a prototype, conducting research, or still validating your market, non-dilutive funding helps you stay independent while building traction.
• If you’re ready to scale, expand internationally, or grow fast, equity financing offers not just money, but expertise and networks.

Many Saudi startups, from biotech innovators to logistics platforms, combine both approaches using grants and government programs early on, then raising venture capital once they’re ready to expand.

Wrapping Things Up…

Choosing between non-dilutive funding and equity financing isn’t about which is better; it’s about what your startup needs right now. Non-dilutive funding helps you grow without giving up ownership, while equity financing brings in not just money but mentorship and networks. The smartest founders in Saudi Arabia often blend both, using grants or accelerator funds early on, then turning to investors once their model proves itself.