Key Recommendations from the 24 Fintech: Shaping the Future of Saudi Arabia’s FinTech Landscape

Sep 10, 2024

Kholoud Hussein 

 

The 24 Fintech Conference, held in Riyadh from September 3 to 5, marked a pivotal moment for Saudi Arabia's rapidly growing FinTech ecosystem. Gathering a wide array of stakeholders, including regulatory bodies, policymakers, investors, technology experts, and industry leaders from around the globe, the event underscored the nation's ambition to become a leader in the FinTech space.

 

Saudi Arabia’s Vision 2030, which seeks to diversify the economy away from oil dependence, has placed significant emphasis on digital transformation, and the FinTech sector is seen as a critical driver of that vision. The conference covered various topics, including FinTech regulation and governance, the integration of artificial intelligence (AI) and machine learning in financial operations, financial inclusion, and digital payment solutions. By the conclusion of the conference, several key recommendations emerged, which are set to shape the future of the FinTech industry in Saudi Arabia and beyond.

 

 

1. Enhancing FinTech Regulation and Governance: Building a Balanced Regulatory Framework

One of the core topics at the 24 Fintech Conference was the importance of a balanced regulatory framework to support FinTech innovation while ensuring consumer protection and financial stability. Regulatory bodies like the Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA) have already established a regulatory sandbox that allows startups to test their products in a controlled environment. However, the conference emphasized the need to further streamline regulations to keep pace with rapidly evolving financial technologies.

 

Key recommendations included:

  • Creating flexible regulatory frameworks that can adapt to new technological advancements such as blockchain, AI, and machine learning without stifling innovation.
  • Harmonizing regulations across the GCC region, allowing for seamless cross-border financial transactions and fostering a regional FinTech ecosystem.
  • Promoting collaboration between regulators and industry players to ensure that rules are practical, forward-looking, and conducive to innovation.
  • Strengthening cybersecurity standards to protect financial data, a critical aspect as digital financial services continue to expand.

A recurring theme was the necessity for regulatory clarity to encourage foreign investment. Investors and FinTech companies need assurance that they can operate within a predictable regulatory environment, which will also attract international partnerships and help Saudi Arabia position itself as a global FinTech hub.

 

2. Artificial Intelligence and Machine Learning in Financial Operations: The Future of Efficiency

AI and machine learning (ML) were central to many discussions, as these technologies are poised to transform financial operations. AI and ML have already started to play a significant role in areas like fraud detection, risk management, customer service (via chatbots), and personalized financial services.

 

Key recommendations on AI and ML integration included:

  • Investment in AI talent development: Saudi Arabia needs to nurture a workforce skilled in AI and ML. This requires educational initiatives and partnerships between academic institutions and industry players to equip professionals with the skills needed for future financial services.
  • Encouraging the use of AI in compliance: RegTech, or regulatory technology, powered by AI can help companies automate compliance procedures, reducing operational costs and ensuring adherence to regulations.
  • Utilizing AI for financial inclusion: AI-driven platforms can analyze large datasets to offer personalized services to individuals who may have been excluded from traditional banking systems. This includes offering microloans, savings tools, and financial education to underserved communities.
  • Maintaining a balance between automation and human oversight: While AI can enhance operational efficiency, it is critical to retain human oversight, particularly in decision-making processes involving high-risk financial transactions.

Policymakers were urged to support innovation in AI and ML by providing a regulatory environment that fosters experimentation while mitigating risks, especially concerning data privacy and security.

 

3. Financial Inclusion: Making Financial Services Accessible for All

Financial inclusion was a major theme throughout the 24 Fintech Conference, reflecting Saudi Arabia's commitment to expanding access to financial services for underbanked and unbanked populations. With over 70% of the Kingdom’s population having access to the internet, the potential for digital financial services is enormous. However, gaps remain in reaching marginalized communities and small businesses.

 

Key recommendations for financial inclusion included:

  • Leveraging mobile banking and digital wallets: As smartphones become ubiquitous, mobile banking solutions and digital wallets are critical tools for bringing financial services to previously underserved populations. Expanding these services will require partnerships with telecommunications companies and financial institutions.
  • Promoting microfinance solutions: Startups and financial institutions should develop more microfinance products to support small businesses and individual entrepreneurs, particularly women and rural populations. These solutions could help promote economic development in areas that traditional banking services have not reached.
  • Enhancing financial literacy: Providing educational resources and tools to help individuals and small businesses better understand financial products and services will be essential. FinTech companies should collaborate with government agencies to deliver financial education programs through digital platforms.
  • Encouraging Islamic FinTech solutions: Given the importance of Sharia-compliant financial products in the region, FinTech startups should develop innovative Islamic finance solutions that adhere to Sharia principles while leveraging modern technology.

4. Digital Payments and Cashless Economy: Reducing Cash Dependency

Another significant topic at the conference was the development of a cashless economy, an essential element of Saudi Arabia’s Vision 2030. With the rise of digital payments, both through mobile apps and contactless cards, the Kingdom is gradually moving toward a more digitized financial system.

 

Key recommendations to accelerate this transition included:

  • Promoting the use of digital payments in everyday transactions: From public transport to government services, increasing the use of digital payments can further reduce reliance on cash. This will require incentives for consumers and businesses alike to adopt digital payment platforms.
  • Supporting FinTech innovations in payments: Startups that specialize in payment solutions, such as peer-to-peer payments, cross-border transfers, and blockchain-based payment systems, should receive support in the form of funding, mentorship, and access to regulatory sandboxes.
  • Boosting trust in digital platforms: Public awareness campaigns to ensure consumers feel confident in using digital financial services will be critical. This includes addressing concerns about data privacy and fraud, which can deter people from adopting digital payment methods.
  • Expanding infrastructure for digital payments in rural areas: Ensuring that even the most remote areas of Saudi Arabia have access to reliable internet and mobile payment platforms will be key to achieving nationwide adoption of digital payments.

5. Fostering Innovation through Collaboration: Startups, Investors, and Corporations

The 24 Fintech Conference highlighted the importance of collaboration in driving innovation. Whether through partnerships between startups and established financial institutions, or between investors and regulators, cooperation is crucial for fostering an environment conducive to FinTech growth.

 

Key recommendations on fostering collaboration included:

  • Creating public-private partnerships: Governments should actively partner with the private sector to promote FinTech innovation, provide infrastructure support, and ensure that regulations keep pace with technological advancements.
  • Building innovation hubs and accelerators: Establishing FinTech hubs across the MENA region will enable startups to access resources, mentorship, and networking opportunities. These hubs should provide access to investors and regulatory sandboxes to help startups scale more quickly.
  • Attracting international investors: By showcasing the potential of Saudi Arabia’s FinTech sector, the country can attract foreign direct investment (FDI). This will require creating favorable investment conditions, such as tax incentives, intellectual property protections, and clear exit strategies for investors.
  • Encouraging cross-border collaborations: Given the regional nature of many financial challenges, fostering cross-border collaborations between startups and corporations in the GCC and broader MENA region is crucial. Harmonized regulations across borders would facilitate smoother operations for businesses looking to expand beyond Saudi Arabia.

6. Sustainability and Green Finance: The Future of Ethical Investment

In line with global trends, the conference also explored the role of sustainable finance and green FinTech solutions in Saudi Arabia’s future. As environmental, social, and governance (ESG) criteria become increasingly important to investors, the FinTech sector has a unique opportunity to create green financial products.

 

Key recommendations included:

  • Promoting green financial products: FinTech startups should develop innovative solutions such as green bonds, carbon credit trading platforms, and sustainability-linked loans that align with Saudi Arabia’s growing interest in ESG investments.
  • Encouraging sustainable investment platforms: By offering digital platforms that allow retail and institutional investors to invest in sustainable projects, FinTech companies can drive the growth of green finance.
  • Incorporating ESG data into financial decision-making: AI and machine learning can help financial institutions better analyze ESG data and make more informed investment decisions based on sustainability metrics.

In conclusion, the 24 Fintech Conference provided invaluable insights into the future of FinTech in Saudi Arabia, highlighting the importance of regulation, technology, and collaboration. As Saudi Arabia continues to pursue its Vision 2030 goals, these recommendations will play a crucial role in shaping the Kingdom’s FinTech landscape. From enhancing regulation and fostering AI innovation to promoting financial inclusion and sustainability, the path forward is clear: Saudi Arabia is positioning itself as a leader in financial technology in the Middle East and beyond.

 

By implementing these recommendations, the country can unlock new opportunities for growth, attract foreign investment, and ensure that its FinTech ecosystem remains competitive on the global stage.

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Al-Abbasi: EdVentures Eyes Saudi Expansion to Empower Regional EdTech Startups

 Shaimaa Ibrahim

 

The education ecosystem in the Arab world is witnessing rapid transformations that are pushing EdTech startups to play a central role in creating solutions capable of bridging skills gaps and improving learning opportunities. At the same time, governments are increasingly adopting broad digital strategies, creating a rising need for entities capable of aligning these ambitions with modern market demands. Within this context, specialized investment firms have become essential contributors to reshaping the learning landscape and supporting the region’s innovation ecosystem.

 

EdVentures, the investment arm of Nahdet Misr Group, is among the most prominent entities that, since its establishment in 2017, has pursued a clear vision to empower EdTech startups. Its efforts have gone beyond supporting digital solutions—it has worked to build an integrated ecosystem encompassing incubation, investment, and mentorship, with the aim of achieving sustainable social impact in the sector.

 

Sharikat Mubasher conducted an interview with Amr El Abassy, General Manager of EdVentures, on the sidelines of his participation in the fourth edition of the HERizon 2025 Summit, organized by Carerha, a leading platform for empowering women and preparing them for the job market in Egypt and the Middle East. The conversation covered EdVentures’ vision, its support programs, its criteria for selecting startups, as well as its strategic outlook on expansion into the Saudi market and the role of technology and artificial intelligence in shaping the future of education in the Gulf and the wider Middle East.

 

To begin, what is the vision on which EdVentures was founded? How do you view your mission in developing the EdTech sector in Egypt and the region?

EdVentures was launched as the investment arm of Nahdet Misr Group—the largest publishing house and educational content provider in the Arab world and Africa—driven by a clear understanding of the absence of startups that could position themselves as meaningful players in the EdTech sector, at a time when fintech solutions dominated the scene.

The company’s vision is centered on empowering startups in the education sector and creating real social impact through knowledge. This is achieved by incubating entrepreneurs, educating them on the nature of the sector, raising awareness about investment opportunities, and helping them build strong, scalable, and sustainable business models.

The journey began with the launch of a business incubator aimed at encouraging new ideas and raising awareness of the importance of investing in educational technology. Later, EdVentures moved toward direct investment in startups to demonstrate the presence of promising opportunities in this sector and to pave the way for further innovation and growth.

 

What is the total number of startups you have supported and invested in? And what is the current combined valuation of these companies?

EdVentures was among the earliest investors supporting a number of EdTech startups in Egypt and the region. It has invested in companies such as ‘eYouth’, which offers mentoring and guidance services in entrepreneurship and has offices in Saudi Arabia and the UAE; ‘Entreprenelle’, which focuses on empowering women in entrepreneurship; ‘OTO’, which specializes in English-language courses and other training; and ‘iSchool’, which provides programming and artificial intelligence education for children aged 6 to 17.

This early investment gave these companies strong credibility in the market and directly helped them attract further funding. It also enabled them to expand into new regional and international markets, strengthening their position and accelerating their growth significantly.

Today, the EdVentures portfolio comprises around 28 startups, with a combined valuation exceeding $200 million. Many of these companies now operate in more than 20 countries, including eYouth, iSchool, and Sprints.

EdVentures has also played an active role in redefining traditional education by offering a comprehensive educational ecosystem that includes professional skills training, employment programs, programming education, artificial intelligence technologies, and specialized medical education.

 

How do you select the startups you support and invest in? What are the main criteria you look for when evaluating a project idea? And do you offer programs specifically supporting women entrepreneurs?

EdVentures focuses solely on a single sector: education. For that reason, we carefully seek out companies capable of understanding real market problems and presenting practical solutions that address the needs of all stakeholders, while also aligning with governmental policies and national education strategies.

Among the most important criteria for founders is having a clear vision for the future of the company and the ability to create both direct and indirect impact through their projects. We also evaluate whether the business idea has the potential to scale, expand, and remain sustainable. We target companies capable of building strategic partnerships with various stakeholders, particularly in B2B and B2G business models.

Regarding women entrepreneurs, about 45% of the companies in the EdVentures portfolio are led by women. Additionally, the company has supported more than 150 startups in the education sector, benefiting more than 6 million learners, nearly half of whom are women—reflecting the company’s strong commitment to empowering women and educational communities across the region.

 

What are EdVentures’ key programs and initiatives for supporting EdTech startups?

The company has launched an integrated suite of programs and initiatives designed to support entrepreneurs and startups in the education sector, in collaboration with local and global partners. EdVentures began with a series of incubation programs in Egypt, most notably a business incubator in partnership with the Academy of Scientific Research, which provides training, mentorship, and expertise to help startups build sustainable business models.

In terms of accelerators, EdVentures offers a program in collaboration with the Mastercard Foundation, launched last year and renewed annually. Each cycle hosts 12 startups at various stages, with special focus on Seed and Pre-Seed companies. The initiative provides a comprehensive six-month support program, during which each startup receives up to $60,000 in funding. The program allows companies to exchange expertise, enhancing their ability to grow and prepare for future investment rounds.

The initiatives also include a joint program with the Challenge Fund for Youth Employment, combining elements of a venture studio and a venture builder to create job opportunities and support startup expansion in Egypt and regional markets.

Finally, EdVentures plans to launch its own ‘Venture Studio’ in 2026 to offer educational content production and podcast services, providing innovative tools to help startups grow and expand their educational and commercial impact across the region.

 

What are EdVentures’ plans for expanding into the Saudi market? What makes the Kingdom a strategic opportunity, and how do you envision your role in supporting its entrepreneurship ecosystem?

The Saudi market is one of the most promising in the region, thanks to its size and the abundance of opportunities that align with Saudi Vision 2030, which focuses primarily on developing student and graduate skills and directly linking them to labor-market needs.

Saudi Arabia is characterized by a strong readiness among institutions and stakeholders to build strategic partnerships with startups, an important incentive that supports the companies in EdVentures’ portfolio and enables them to expand in this dynamic market.

EdVentures’ approach goes beyond offering venture investments; it also provides integrated operational and strategic support to help startups enter new markets and expand their businesses effectively. This combination of funding and strategic guidance—one of EdVentures’ core strengths—enhances its ability to create tangible and sustainable impact for startups in the Saudi market.

 

How does technology contribute to enhancing the growth of startups, and what are your expectations for the future of EdTech in the Gulf and the Middle East?

Technology plays an essential role in enabling startups to scale more efficiently than traditional models, especially after the COVID-19 pandemic, which accelerated the acceptance of digital learning and the adoption of tech-enabled solutions across all learning stages. This shift created major opportunities for startups to offer innovative educational products and reach broader audiences more quickly and effectively.

Rapid advancements in artificial intelligence have also created powerful tools that help startups build stronger, more sustainable business models through performance analytics, personalized content, digital curriculum design, and intelligent assessment tools that accurately measure student progress and provide tailored learning recommendations.

The success of any startup depends on the entrepreneur’s understanding of how to employ technology correctly, ensuring that digital tools and AI are not merely supplementary but strategic assets that support the company’s goals, drive sustainable growth, and create real impact on education quality and learner experience.

 

What are the most effective ways to enhance cooperation among governments, startups, and the private sector to support the EdTech industry in the region?

In recent years, governments have clearly shifted toward integrating entrepreneurship into educational systems, adopting national strategies that increasingly focus on leveraging technology to enhance educational outcomes and align learning with labor-market needs.

Saudi Arabia stands as a prime example of this direction through Vision 2030, which aims to develop youth skills and expand employment opportunities, offering startups the chance to introduce innovative EdTech solutions that directly support these goals.

In addition, ministries of education and communication across the region have launched a continuous stream of initiatives, creating fertile ground for collaboration among different stakeholders. However, the success of these initiatives depends on the ability of startups and the private sector to take the initiative and provide practical, implementable solutions.

Governments possess the necessary resources and infrastructure, while the private sector contributes innovation and execution speed. When these strengths are combined, the EdTech industry can achieve genuine, sustainable growth that serves future generations and amplifies the impact of education across the region.

 

Translated by: Ghada Ismail

From scarcity to security: how nanotechnology startups cultivate Saudi Arabia’s future

Noha Gad

 

Saudi Arabia faces one of the most severe water scarcity challenges globally due to its extremely arid climate, limited freshwater resources, and a rapidly growing population that is projected to surpass 47 million by 2025, according to figures by the World Health Organization (WHO). According to recent figures by the General Authority for Statistics (GASTAT), the water sector in the Kingdom witnessed significant shifts in 2023, with a 31% rise in desalinated seawater production, now comprising 50% of the Kingdom’s distributed water supply.

With groundwater resources depleting and the per capita household water consumption declining from 112.8 liters per day in 2022 to 102.1 liters in 2023, the Kingdom’s investments in desalination and reuse technologies underscore its commitment to long-term water security. 

These conditions have positioned water security and sustainable agriculture as critical priorities aligned with Saudi Vision 2030's sustainability goals. Thus, nanotechnology startups emerged as pivotal players in addressing water and agricultural challenges in Saudi Arabia. They leverage advanced nanomaterials and nanoscale innovations to transform water treatment, wastewater recycling, desalination efficiency, and precision agriculture techniques. 

By offering promising solutions to optimize water use, improve crop yields, and reduce environmental impact, these startups help Saudi Arabia move toward a water-secure and food-secure future amid harsh natural conditions and growing demand. 

Overall, the nanotechnology market in Saudi Arabia is projected to hit $1.1 billion by 2033, showing a compound annual growth rate (CAGR) of 27.30% between 2025 and 2033, according to recent analytics by the IMARC Group.

 

Nanotechnology in water management

Nanotechnology companies and startups in Saudi Arabia develop cutting-edge nano-enabled filtration and purification technologies that significantly enhance efficiency and sustainability. Such technologies employ nanomaterials and nanostructured membranes designed at the molecular level to capture contaminants more effectively than conventional systems.

The nano-enabled systems minimize energy consumption, up to 80% less compared to traditional treatment plants, and drastically reduce operational footprints by 90%. They also eliminate odors and chemical residues, making treated water safe for reuse in agriculture, industry, and municipal applications. 

For instance, the Ras Al-Khair Power and Desalination Plant stands as the world’s largest hybrid desalination facility, producing both electricity and desalinated water. By integrating nanotechnology in its desalination process, the plant became a model for sustainable water management. Advances in graphene oxide-based nanomembranes are expected to increase the plant's efficiency, reducing energy consumption while improving the purity of the desalinated water.

Additionally, the Saudi Water Authority recently registered a patent for increasing magnesium levels in drinking water using nanotechnology, a pioneering step that strengthens innovation leadership and promotes sustainability. This achievement is expected to enhance the circular economy, promote resource sustainability, and reduce costs. 

Germany’s GI Aqua Tech is one of the leading providers of innovative wastewater treatment solutions in Saudi Arabia. It operates on an innovative pay-per-cubic-meter business model through its subsidiary GI Water as a Service (GI WaaS), enabling accessible and cost-efficient on-site treatment solutions without the need for costly infrastructure. This model supports the circular economy and sustainability goals under Saudi Vision 2030 by maximizing water resource efficiency and combating desertification. Getting its patented G-Nano technology certified by the Saudi authorities, GI Aqua Tech became a pioneer in sustainable wastewater management. This technology reduces energy consumption by 80%, cuts operational footprint by 90%, and eliminates odors, making it highly efficient and eco-friendly.

Another key player is Separation Membranes Innovation (SMI), a Saudi startup specializing in developing and manufacturing high-quality water treatment membranes locally. It utilizes the latest advancements in materials nano-science for superior membrane performance. 

Founded by Saudi researchers and entrepreneurs with deep knowledge of water treatment technologies, SMI provides innovative, high-quality, locally manufactured water treatment membranes and pioneering solutions to address water scarcity challenges across the Middle East and beyond, while establishing Saudi Arabia as a hub for water treatment innovation.

By incorporating real-time monitoring and automation, these companies enable scalable plug-and-play solutions that can be tailored to different sectors, from oil and gas to urban wastewater.

 

Desert Farming

Recent reports by GASTAT revealed that agriculture remained the largest consumer of water, using 12,298 million cubic meters. However, non-renewable groundwater consumption by the agricultural sector dropped by 7% to 9,356 million cubic meters, compared to 10,044 million cubic meters in 2022. 

Saudi nanotechnology companies and startups utilize precision agriculture tools and smart solutions to optimize resource use and improve crop productivity. These companies embedded nano sensors in the soil and plants, enabling real-time monitoring of soil nutrients, moisture levels, and plant health with unprecedented accuracy. The sensors act as an intelligent nervous system for farms, allowing precise, data-driven irrigation and fertilization that reduces water waste and enhances crop yields in the arid Saudi environment. Other innovations, such as nano-enabled fertilizers and pesticides, were designed to release nutrients slowly and target crops more effectively, minimizing chemical runoff and environmental impact. 

For desert farming, some startups integrate nanotechnology with IoT and renewable energy, supporting controlled environments like solar-powered greenhouses that cultivate salt-tolerant, water-efficient crops compatible with Saudi Arabia’s challenging soil and climate. Key players in this field include iyris, Saudi Desert Control, Arable, Saudi Arabian Hydroponic Company (Zarei), and GreenMast. Research institutions like King Abdullah University of Science and Technology (KAUST) also contribute to achieving sustainable agriculture and food security by developing nanotech solutions and improving plant growth and resilience adapted to desert conditions.

 

The role of nanotechnology startups in promoting sustainability and economic growth

By focusing on nano-enabled water treatment and agriculture technologies, these startups help reduce water consumption and pollution, directly supporting Saudi Vision 2030’s environmental and sustainability goals. 

In water treatment, nano-enabled technologies substantially reduce chemical usage, energy consumption, and waste generation. For instance, nano metal oxides act as powerful catalysts and adsorbents that degrade pollutants efficiently in wastewater, enabling cleaner water recycling with minimal environmental impact. Meanwhile, advanced nano-membranes extend membrane lifespans and performance in seawater desalination plants, curbing energy-intensive operations and lowering carbon emissions.

In agriculture, nano-enabled technologies increase overall agricultural productivity, support food security, and reduce import dependence, which benefits the economy.

Economic impacts arise from building a high-tech ecosystem where startups, research institutions, and government initiatives join hands to develop and commercialize nanotech solutions, ultimately accelerating job creation, enhancing local expertise, and boosting exports of advanced materials and sustainable technologies.

Nanotechnology in Saudi agriculture and water sectors faces several challenges despite its promising potential. Technologically, the development and deployment of nanosensors, nano-fertilizers, and nano-enabled water treatment solutions require deep interdisciplinary collaboration across synthetic biology, materials science, agronomy, and data engineering. On the side, fragmented regulations governing nanomaterial use and safety slow down the approval and scale-up of innovative solutions.

Finally, the future for nanotechnology startups in Saudi Arabia’s water and agriculture sectors is promising, although challenges remain. With continuous developments and supportive ecosystem growth, nanotechnology is expected to play a transformative role in securing water resources, enhancing agricultural productivity, and fostering sustainable economic diversification in line with Vision 2030.

Passion vs Market: Should You Follow Your Heart or the Data?

Ghada Ismail

 

Few dilemmas shape an entrepreneur’s journey; one of them is deciding whether to build what they love or what the market demands. The truth is: Passion pushes founders to begin, while markets determine whether they survive. And survival is not guaranteed, as global analyses of startup failures consistently show “no market need” as the leading cause, while multi-year business survival data reveals that nearly 20% of companies close within their first year.

These numbers accentuate again this truth that passion is necessary, but insufficient. To build a durable business, founders must understand how passion influences decision-making, why markets punish unvalidated ideas, and where both forces can work together rather than against each other.

 

Why Passion Alone Isn’t Enough..But Still Matters

Passion is a cognitive and emotional resource. Research shows that passionate founders communicate more persuasively, attract stronger early teams, and demonstrate resilience during unpredictable phases of growth. It also fuels creativity, an asset in industries where differentiation is limited.

But passion has blind spots:

  • It distorts risk perception, making founders underestimate threats or overestimate early traction.
  • It can lead to confirmation bias, where only data that supports a founder’s beliefs is acknowledged.
  • It encourages identity attachment for the idea becomes part of the founder’s self-image, making pivots emotionally painful.

Still, passion has a strategic role: it motivates founders to explore ideas others would ignore. Many breakthrough businesses began as passionate obsessions that were later shaped by market reality. 

 

Why Markets Matter More Than Most Founders Think

Markets do not respond to excitement. They respond to value and relevance.

A business survives only if it consistently creates value for a segment willing to pay for it. That is where evidence becomes vital. Market validation is not about killing creativity; it is about reducing uncertainty around three core risks:

  1. Problem–Solution Fit:
    Does the problem exist at scale, and is the solution meaningfully better than alternatives?
  2. Willingness to Pay:
    Do customers value the solution enough to convert it into revenue?
  3. Repeatability:
    Can the solution be delivered consistently, profitably, and without constant reinvention?

Data helps founders understand not just if demand exists, but why, when, and in what form demand becomes monetizable. This fine line separates market-driven businesses from passion-led projects.

 

Where Founders Miscalculate

Early-stage founders often fall into predictable analytical traps:

  • Mistaking enthusiasm from early adopters as proof of broad-market demand
  • Building complex features before validating core value
  • Relying on primal insights rather than behavioral data
  • Misreading small sample sizes
  • Assuming the market will “catch up” to their vision

These misjudgments aren’t failures of intelligence; they are failures of method. Founders are often told to “trust their gut” without being taught how to integrate intuition with empirical validation.

 

The Hybrid Model: Passion Informed by Evidence

The most successful founders treat passion as a hypothesis engine and market data as the filtering mechanism.

1. Start with Passion to Generate Hypotheses

Your passion tells you which problems feel worth solving. Let it direct your curiosity, not your product.

2. Stress-Test Your Idea Through Market Experiments

Use structured methods such as:

  • Problem interviews
  • Pre-order experiments
  • Targeted micro-campaigns
  • Pricing sensitivity tests

These reveal the magnitude of demand and the shape of the opportunity.

3. Apply Analytical Discipline

Evaluate experiments using metrics that matter:

  • Retention curves
  • Churn reasons
  • Willingness-to-pay thresholds
  • Customer acquisition costs versus lifetime value

These metrics force clarity; they reveal whether the business can scale or whether the idea must evolve.

4. Pivot Without Ego

When data conflicts with passion, revisit the problem rather than abandoning the mission. Founders seeking impact often discover that their “why” can be served through a different product with stronger commercial viability.

 

Wrapping Things Up…

The startup world often frames passion and market data as opposing forces. In reality, they form a dynamic partnership. Passion gives founders the courage to explore ideas without guaranteed outcomes. Data ensures they pursue those ideas with discipline, adaptability, and strategic realism.

The formula is simple but demanding:
Use passion to begin. Use evidence to continue. Use both to build something that lasts.

Beyond the VC bubble: How anti-VC founders build businesses that last

Noha Gad

 

Startup funding models are becoming increasingly diverse, underscoring a shift towards sustainable, flexible, and non-traditional approaches. The landscape emphasizes a mix of traditional equity funding, alternative financing, and innovative investor relations, triggered by advancements in technology, data-driven decision-making, and a desire for founders to maintain control and focus on long-term growth. 

Startups usually rely on venture capital (VC), angel investors, and bank loans to accelerate their growth. However, the pressure to deliver quick returns and meet aggressive growth targets has also contributed to high failure rates and significant stress for many founders. This shift encouraged entrepreneurs to explore alternative paths that prioritize sustainability, control, and long-term success.

 

What are anti-VC startups?

One of these emerging trends is the rise of anti-VC startups. These companies consciously choose to avoid traditional venture capital funding, focusing on building sustainable, profitable businesses without the typical pressures that come from external investors.

Anti-VC founders prioritize steady growth, profitability, and independence instead of seeking billion-dollar valuations and massive market disruptions. The anti-VC model offers founders autonomy and control over their startups, enabling them to retain full ownership and decision-making power, and to shape their company culture and strategy without external pressures. 

Through this model, startups focus more on achieving steady revenue, profitability, and long-term viability rather than pursuing rapid scale and investor-driven growth targets. This will eventually relieve founders from the constant fundraising cycle and high-stakes performance expectations. Founders can also stay aligned with their mission and vision without compromising due to investor demands for quick exits or pivots.

Further, the anti-VC model helps startups typically maintain healthier balance sheets and cash flows by focusing on revenue and avoiding excessive dilution.

 

Although the anti-VC model provides various benefits for founders, it comes with multiple disadvantages, notably:

  • limited capital: Without VC funding, access to large amounts of growth capital is restricted, potentially slowing expansion and market penetration. Limited funding can also challenge hiring, marketing, R&D, and product development efforts.
  • Networking gaps: VC companies usually provide valuable business advice, connections, and strategic support not readily available without their involvement.
  • Market perceptions: Lack of VC backing may sometimes be perceived negatively by customers, partners, or later-stage investors.

 

Tips to build a startup without chasing VC investment

Here are key tips you have to follow to establish an anti-VC startup:

  • Build your company based on the life and work balance you desire, rather than chasing aggressive growth for investor returns.
  • Focus first on creating an audience, community, or market awareness. Share industry challenges, learning journeys, and solutions before expecting sales.
  • Prioritize profitability over sheer growth, ensuring that each decision, hire, or product feature contributes to profitability rather than just scaling user numbers. 
  • Automate operations to handle repetitive tasks like payment processing or customer onboarding, while keeping strategic decisions in your hands.
  • Maintain operational control to protect the company’s mission and culture from dilution by outside investors.
  • Engage hands-on in business growth with a focus on operational excellence and value creation, rather than relying on passive investment or high-risk bets.

 

The startup ecosystem is expected to witness significant transformation, thanks to the shift in funding models and broader market dynamics, notably the rise of hybrid and alternative funding models that combine founder-friendly values with flexible capital sources like revenue-based financing, syndicates, and equity crowdfunding.

The future suggests that founder-centric, alternative funding approaches will become more viable and respected, empowering entrepreneurs to create resilient businesses that can thrive long-term without losing sight of their core mission.

To sum up, choosing to build an anti-VC startup means embracing a different vision of success, which is grounded in sustainable growth, founder control, and profitability over hype. So, if you are a founder who prioritizes autonomy, balance, and enduring value creation, the anti-VC model is your perfect choice. It challenges conventional startup wisdom and opens new possibilities beyond chasing unicorns, proving that you can achieve meaningful success on your own terms.

Balhamar: Hurr cuts employment-related costs by up to 60%

Noha Gad

 

The freelance market in Saudi Arabia has witnessed rapid growth and transformation in recent years, becoming a dynamic and integral part of the national economy. This evolving sector offers flexible opportunities that empower individuals and foster innovation across various industries, aligning with the Vision 2030 agenda.

Digital platforms have played a key role in facilitating seamless connections between freelancers and businesses. Among these platforms, Hurr (formerly Passioneurs) has established itself as a leader in the freelance market, thanks to its secure, user-friendly platform that supports both entrepreneurs and freelancers. 

Sharikat Mubasher spoke with Muna Balhamar, CEO and Founder of Hurr, to learn more about the platform’s role in transforming the freelance industry in Saudi Arabia and the wider region, as well as its next steps to expand its presence locally and regionally, notably following the launch of its new identity.

 

First, how does Hurr’s business model support entrepreneurs in Saudi Arabia and the wider GCC region?

Hurr was built around one simple belief: entrepreneurship should be accessible, flexible, and sustainable. Our business model supports entrepreneurs and companies by giving them an easy way to find verified freelancers across more than 100 fields, without the burden of traditional hiring.

We help companies cut their employment-related costs by up to 60% by giving them instant access to qualified freelancers instead of hiring full-time roles they do not actually need. This allows entrepreneurs to stay lean, move faster, and grow without heavy overhead.

At the same time, we give freelancers a structured, trusted platform where they can build a real income, access opportunities across the GCC, and scale their skills into long-term careers.

In short, Hurr creates a win-win ecosystem: lowering costs for businesses while expanding opportunities for freelancers—both essential to the growth of entrepreneurship in the region.

 

How do you utilize technology to help users reduce operational costs?

Technology is at the core of how we help our users focus on their craft rather than overhead. We provide a robust digital marketplace where freelancers and entrepreneurs can create profiles, showcase their services, receive assignments, and get paid, all within one streamlined system. This reduces the need for them to build and maintain complex systems themselves.

 

We automate key processes: from client-matching and job allocation to payment processing and service review. That means less time spent on admin, less cost on infrastructure, and fewer mistakes.

 

We also offer analytics and insights to enable entrepreneurs to understand their utilization, pricing, service delivery, and client feedback, helping them optimize their operations and reduce waste.

 

We invest in scalable cloud infrastructure, modular design, and shared services, which pass cost savings directly to our users so they do not carry the burden of building expensive tech themselves.

 

And now, we are taking this a step further with our new AI-powered tools. These include features like AI-generated job descriptions to help clients describe their requirements more clearly, smarter AI matching to connect them with the best candidates instantly, and automated filtering to reduce time spent on reviewing profiles. All of this helps businesses hire faster and more accurately, while significantly cutting operational costs.

 

In essence, we provide the “platform as a service” layer to help entrepreneurs focus on delivering excellence, not on building technology from scratch.

 

You recently unveiled a new identity. How will this milestone reinforce your presence in the Saudi market and the broader region?

Unveiling our new identity was more than a visual refresh—it was a strategic step toward strengthening our presence in Saudi Arabia, the GCC, and the wider Arab region.

 

The new brand reflects who we are today: a mature, confident, region-focused platform that understands local culture, language, and the evolving needs of both freelancers and businesses. It reinforces our commitment to being a truly Arab brand built for Arab talent.

 

It also boosts our credibility. A strong, modern identity helps us stand out in a competitive market and positions Hurr as a trusted partner for organizations across Saudi Arabia and the region. It creates clearer visibility, a deeper connection with users, and a unified message that supports expansion into GCC markets and the broader Arab world.

 

Most importantly, the new identity aligns our team, our freelancers, and our partners under one vision, helping us scale faster and build a platform that genuinely represents the future of freelancing in our region.

 

As a woman founder, what are the key challenges female entrepreneurs face in Saudi Arabia, and how do you see the Kingdom’s efforts to empower them?

To be honest, I do not see the challenges the way they are often portrayed. In Saudi Arabia today, women founders actually have incredible opportunities. The ecosystem is opening doors for us, not closing them. We are building companies, attracting partnerships, and leading teams in our own feminine, unique way, and the market is responding positively to that.

 

What stands out to me is how strongly the Kingdom is supporting and empowering women. From representation to visibility to access, we are seeing genuine encouragement for women to step into leadership and entrepreneurship. The environment now rewards competence, creativity, and commitment, and women in Saudi Arabia are showing all of that and more.

 

So instead of focusing on obstacles, I see momentum. I see women leading with clarity, compassion, and strength. And I see Saudi Arabia actively creating a space where female entrepreneurs can thrive, scale, and contribute meaningfully to the economy across the GCC and Arab region.

 

In your opinion, how does the private sector contribute to enhancing the entrepreneurship ecosystem in Saudi Arabia in general, and the freelancing sector in particular?

The private sector in Saudi Arabia today is playing a huge role in pushing the entrepreneurship scene forward. Companies are becoming more open to new models of work, including freelancing, and that shift alone has unlocked a lot of opportunities for talent and for platforms like Hurr.

 

What I am seeing is that the private sector is no longer waiting for traditional hiring cycles. They want agility, speed, and specialized skills, and freelancers provide exactly that. When big organizations start integrating freelancers into their workforce, it sends a clear message: freelancing is not just a side gig; it is a real, professional career path.

 

At the same time, companies are collaborating with platforms, creating structured projects, supporting young talent, and giving people a chance to prove themselves. This combination, flexibility and opportunity, is what strengthens the ecosystem. And honestly, it is one of the reasons why the freelancing sector is growing so fast, not only in Saudi Arabia, but across the GCC and the wider Arab region.

 

Finally, what are Hurr’s plans to strengthen its position in Saudi Arabia and the GCC?

Our focus is very clear: to grow deeper in Saudi Arabia and expand confidently across the GCC. We are doing this by building a truly local, Arab-first experience that reflects the needs of our market.

A few of our next steps include:

● Enhancing the platform with more AI tools that make hiring faster, smarter, and more accurate, from auto job descriptions to intelligent matching and filtering.

● Expanding our freelancer community with more specialization and higher-quality talent that matches the demands of the region.

● Forming strategic partnerships with companies that want reliable, flexible, and cost-efficient hiring solutions.

● Strengthening our presence across the GCC, making it easier for companies to hire across borders and for freelancers to work regionally.

● Building an ecosystem, not just a platform, one that connects talent, companies, and opportunities across the Arab world.

And ultimately, our goal is to position Hurr as the leading platform for freelance solutions in Saudi Arabia, the GCC, and the wider Arab region — the place companies trust and freelancers prefer.