Sustainability in E-commerce: Insights from Seamless KSA 2024

Sep 15, 2025

Kholoud Hussein 

 

As Saudi Arabia pursues its Vision 2030 goals of diversifying the economy and promoting sustainability, the intersection of e-commerce and sustainability is becoming increasingly important. The Seamless KSA 2024 event brings together retailers, e-commerce leaders, fintech innovators, and government officials to discuss the latest trends and innovations in digital commerce, with sustainability emerging as a key theme. This article explores how Saudi Arabia’s e-commerce sector embraces sustainable practices, technology's role in this transformation, and the insights shared at Seamless KSA 2024.

 

Sustainability in E-commerce: A Growing Priority

 

E-commerce has seen explosive growth in Saudi Arabia, particularly in recent years. The sector is expected to reach $30 billion by 2026, according to a 2024 report by Saudi Arabian General Investment Authority (SAGIA). However, with this rapid expansion comes increased pressure on logistics, packaging, and energy consumption, all of which have environmental implications. As a result, sustainability is becoming a priority for the Kingdom’s e-commerce industry, driven by both government initiatives and changing consumer expectations.

 

Minister of Commerce Majid Al-Qasabi emphasized at Seamless KSA 2024, “Sustainability is no longer an option, but a necessity. The future of e-commerce in Saudi Arabia will be shaped by how businesses integrate sustainable practices into their operations, from packaging and delivery to energy consumption and waste management.”

 

In line with Vision 2030, which includes ambitious environmental goals such as reducing the Kingdom’s carbon footprint, the e-commerce sector is under increasing scrutiny to adopt sustainable practices. Seamless KSA 2024 provided valuable insights into how these practices are being implemented and the technologies driving this transformation.

 

1. Sustainable Packaging and Waste Reduction

 

One of the key areas of focus in the sustainability discussion at Seamless KSA 2024 was sustainable packaging. As e-commerce orders continue to rise, so does the use of packaging materials, much of which is plastic or non-recyclable. Saudi Arabia’s e-commerce giants, including Noon and Jarir, are beginning to recognize the environmental impact of excessive packaging and are adopting eco-friendly alternatives.

 

During a panel discussion at Seamless KSA, Noon’s COO, Ali Kothari, remarked, “As we scale our e-commerce operations, the need for sustainable packaging becomes critical. We are actively investing in biodegradable and recyclable materials, reducing our reliance on plastic, and working with suppliers to minimize packaging waste.”

 

Companies are also exploring innovations such as minimalist packaging, which reduces the size and volume of materials used, and reusable packaging solutions, allowing consumers to return packaging for reuse. These efforts are aligned with Saudi Arabia’s broader environmental goals, including the Saudi Green Initiative, which aims to promote circular economy practices and reduce waste.

 

In a 2024 report by McKinsey & Company, it was highlighted that e-commerce businesses can reduce their carbon footprint by up to 15% through sustainable packaging solutions alone. This not only addresses environmental concerns but also meets the growing demand from eco-conscious consumers who are increasingly factoring sustainability into their purchasing decisions.

 

2. Optimizing Logistics and Reducing Emissions

 

Another critical element of sustainability in e-commerce is the optimization of logistics and delivery processes. The rise of same-day delivery and on-demand logistics has led to an increase in the number of delivery vehicles on the road, contributing to carbon emissions and traffic congestion. Seamless KSA 2024 highlighted the role of AI and big data in optimizing delivery routes, reducing fuel consumption, and minimizing the environmental impact of logistics.

 

According to a 2024 study by PwC, optimizing last-mile delivery operations through AI-powered route planning and electric vehicle (EV) adoption could reduce carbon emissions from e-commerce logistics by 25% in the Kingdom. Several e-commerce companies are already experimenting with electric delivery vehicles and alternative energy solutions to power their logistics networks.

STC Pay CEO Ahmed Al-Enizi spoke at the event, stating, “The future of e-commerce logistics is sustainable. By adopting electric delivery vehicles and leveraging AI to optimize delivery routes, we can not only reduce our operational costs but also significantly lower our environmental impact.”

 

Additionally, drone delivery is emerging as a futuristic solution for reducing emissions in last-mile delivery. Though still in the testing phase, drone delivery has the potential to revolutionize logistics in Saudi Arabia by cutting delivery times and emissions. Seamless KSA 2024 showcased several drone technology demonstrations, highlighting the potential of this technology to make e-commerce more environmentally friendly.

 

3. Renewable Energy Integration in E-commerce Operations

 

A major theme at Seamless KSA 2024 was the integration of renewable energy into e-commerce operations. As warehouses and fulfillment centers grow in size and scale, so do their energy consumption needs. To meet the demands of high-volume operations while adhering to Saudi Arabia’s environmental goals, many e-commerce companies are investing in solar power and other renewable energy sources to power their facilities.

 

Amazon Saudi Arabia, for example, announced at Seamless KSA 2024 that it plans to power its new fulfillment centers in Riyadh entirely with solar energy by 2026. Ronaldo Mouchawar, Vice President of Amazon MENA, said, “Sustainability is central to our operations. By integrating renewable energy into our facilities, we are not only reducing our carbon footprint but also supporting Saudi Arabia’s commitment to increasing renewable energy adoption.”

 

The Saudi Green Initiative, launched as part of Vision 2030, aims to increase the share of renewable energy in the Kingdom’s energy mix to 50% by 2030. E-commerce companies are aligning with this target by incorporating solar panels, energy-efficient lighting, and smart building technologies in their logistics centers, warehouses, and office spaces. These energy-efficient solutions not only reduce the environmental impact of e-commerce but also offer cost savings in the long run.

 

4. Promoting Circular Economy and Sustainable Consumer Behavior

 

Beyond operational changes, Seamless KSA 2024 also addressed the role of circular economy principles and promoting sustainable consumer behavior in the e-commerce space. A growing number of companies are introducing recycling programs, product refurbishment, and second-hand marketplaces to extend the life cycle of products and reduce waste.

 

For example, Mumzworld, a leading e-commerce platform for mothers and children, launched a recycling initiative that allows customers to return used baby products such as strollers and toys, which are then refurbished and resold at a discount. This not only reduces waste but also encourages consumers to participate in sustainable practices.

 

Hala Al-Tuwaijri, CEO of the Center for Sustainability and Waste Management, emphasized at the event, “E-commerce businesses have a responsibility to promote sustainable consumption. By adopting circular economy models and engaging consumers in recycling and reuse initiatives, we can reduce the environmental footprint of online shopping.”

 

Seamless KSA 2024 also highlighted the importance of educating consumers about the environmental impact of their purchasing decisions. Many companies now offer carbon-neutral or carbon-offset options at checkout, allowing customers to compensate for the carbon emissions generated by their purchases. This growing trend aligns with consumer demand for greater transparency and accountability from businesses regarding their sustainability efforts.

 

5. The Role of Government and Policy in Driving Sustainability

 

The Saudi government’s active role in promoting sustainability was a key topic at Seamless KSA 2024. Through various initiatives and regulatory frameworks, the government is encouraging e-commerce businesses to adopt sustainable practices. The Saudi Central Bank (SAMA), for instance, is working closely with fintech companies to integrate sustainable finance solutions that support environmentally conscious business practices.

 

In his opening remarks at Seamless KSA 2024, Mohammed Al-Jadaan, Minister of Finance, said, “The government is committed to creating a regulatory environment that encourages sustainability across all sectors, including e-commerce. By incentivizing companies to adopt green technologies and sustainable practices, we are ensuring that economic growth goes hand in hand with environmental stewardship.”

 

The National Renewable Energy Program (NREP), launched as part of Vision 2030, also plays a key role in the e-commerce sector’s transition to sustainability. The program encourages private companies to invest in renewable energy solutions and provides financial incentives for businesses that adopt sustainable energy practices.

 

Looking Ahead: The Future of Sustainability in Saudi E-commerce

 

The discussions and innovations showcased at Seamless KSA 2024 indicate that sustainability is no longer a peripheral concern for Saudi Arabia’s e-commerce sector. It is becoming a core component of business strategy, driven by both government initiatives and consumer demand. As Saudi Arabia continues to lead the MENA region in e-commerce growth, the integration of sustainable practices will be essential in ensuring the long-term success and resilience of the industry.

 

Technology as a Catalyst for Sustainable E-commerce

 

The role of technology, particularly AI, IoT, and blockchain, will be critical in accelerating the transition to sustainable e-commerce. These technologies are already being used to optimize supply chains, reduce emissions, and provide greater transparency in product sourcing and delivery. As these technologies continue to evolve, they will offer even more opportunities for e-commerce businesses to reduce their environmental impact and improve efficiency.

 

Consumer Demand for Sustainability

 

As eco-conscious consumers become a larger share of the market, businesses will need to meet their expectations by offering sustainable products, transparent supply chains, and environmentally friendly options. Companies that fail to address sustainability may face increasing pressure from both consumers and regulators, making it

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Powering the Future: How Saudi Arabia’s PIF Is Driving Green Energy Growth and Tech Innovation

Kholoud Hussein 

 

In the sands of the Arabian Peninsula, a quiet but consequential transformation is underway. For decades, Saudi Arabia’s economic identity was anchored almost entirely to oil. Today, that identity is being deliberately reshaped. At the center of this shift is the Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund, which has become a primary engine for renewable energy expansion and technology-driven innovation.

What distinguishes Saudi Arabia’s transition is not only its scale, but its speed and coordination. Renewable energy, once peripheral to national planning, is now a strategic pillar under Vision 2030, the Kingdom’s long-term economic diversification program. PIF’s role has evolved accordingly, from a financial steward of national wealth to an active architect of future industries.

 

A Strategic Push Toward Renewables

Saudi Arabia has set an ambitious target: 50 percent of its electricity generation to come from renewable sources by 2030. This goal reflects both environmental necessity and economic pragmatism. The Kingdom’s vast solar and wind potential offers a natural advantage, while rising global demand for clean energy positions renewables as a growth sector rather than a concession.

Progress is already visible. Through the National Renewable Energy Program (NREP), Saudi Arabia has awarded contracts for more than 4.5 gigawatts of solar and wind capacity, representing investments totaling more than 9 billion Saudi riyals. Utility-scale solar parks and wind farms are being developed across multiple regions, laying the foundation for a diversified energy mix.

PIF has been instrumental in this rollout. Through its stake in ACWA Power and partnerships with international developers, the fund is helping deliver large-scale renewable projects while also driving local value creation. Recent joint ventures backed by PIF aim to localize the manufacturing of solar panels, wind turbine components, and related equipment, reducing dependence on imports and strengthening domestic supply chains.

Beyond power generation, Saudi Arabia is placing a major bet on green hydrogen. The PIF-backed NEOM Green Hydrogen Company is developing what is expected to be the world’s largest green hydrogen facility, powered entirely by renewable energy. The project positions the Kingdom as a future exporter of clean fuels, extending its energy leadership beyond oil and gas.

 

Financing the Energy Transition

Delivering projects of this scale requires not only ambition, but financial innovation. PIF has established a Green Finance Framework aligned with international sustainability standards, enabling it to raise capital specifically for environmentally responsible investments.

Since entering the green bond market, PIF has issued debt instruments whose proceeds are earmarked for renewable energy, clean transportation, and sustainable infrastructure. These issuances serve a dual purpose. They attract global investors seeking climate-aligned assets while embedding environmental criteria into the Kingdom’s broader financial strategy.

This approach reflects a shift in Saudi Arabia's view of capital markets. Sustainability is no longer treated as a reputational exercise, but as a mechanism for long-term value creation and economic resilience.

 

Technology as a Force Multiplier

Renewable energy capacity alone does not guarantee efficiency or reliability. Technology is what turns infrastructure into a functioning system, capable of balancing supply and demand, managing intermittency, and delivering power at scale.

Here, Saudi Arabia’s broader push into digital transformation intersects directly with its energy ambitions. PIF has emphasized the integration of artificial intelligence, automation, and data analytics across its portfolio companies. In its latest reporting, the fund highlighted dozens of digital initiatives launched to improve operational performance and decision-making.

These efforts create demand for specialized technologies, from grid optimization software to predictive maintenance systems. As renewable capacity expands, the complexity of managing power flows increases, opening the door for innovation well beyond traditional energy engineering.

 

The Startup Layer

While PIF-backed megaprojects dominate public attention, much of the system-level innovation is emerging from startups. These companies are not competing with large utilities or developers. Instead, they operate at the operational edge of the energy transition, supplying tools and services that enable efficiency, transparency, and scalability.

Energy efficiency and sustainability software is one such area. Startups like NOMADD are developing digital platforms that help organizations monitor energy use, identify inefficiencies, and improve performance. As Saudi companies face increasing pressure to meet ESG standards and disclose emissions data, demand for such solutions is growing rapidly.

Water and energy management represent another critical intersection. In a country where water scarcity is a structural challenge, startups such as H2O Innovation Arabia are delivering smart water treatment and management solutions that reduce energy consumption across industrial and municipal systems. This capability becomes even more important as hydrogen production and large-scale cooling systems expand.

Distributed solar is also gaining momentum. Companies like Green Watt focus on designing, installing, and monitoring solar systems for commercial and industrial clients. These solutions complement utility-scale projects by allowing businesses to reduce energy costs, lower emissions, and improve resilience without waiting for grid-level changes.

Climate-tech startups are emerging to address compliance and measurement. CarbonSifr, for example, provides carbon accounting and emissions management tools that help organizations quantify and reduce their environmental footprint. As Saudi Arabia advances toward net-zero goals, such platforms are becoming essential for energy-intensive sectors navigating regulatory and investor scrutiny.

On the technical front, startups such as Amiralab Energy Solutions are applying AI-driven analytics to power generation and grid performance. Predictive maintenance and asset optimization tools help operators manage the variability of renewable energy while reducing downtime and operating costs.

Together, these startups form a connective layer between national strategy and on-the-ground execution. They bring speed, specialization, and experimentation into an ecosystem otherwise dominated by large-scale infrastructure.

 

Policy Intent and Official Signals

Saudi officials have been explicit about the strategic intent behind this approach. The goal is not only to deploy renewable energy, but to build an integrated ecosystem that supports technology transfer, localization, and private-sector growth.

“These agreements are part of PIF’s efforts to adopt the latest technologies in renewable energy and increase local content in energy projects,” said Yazeed Al-Hamid, Vice Governor and Head of MENA Investments at PIF, in a recent statement. “They contribute to making the Kingdom a global center for renewable energy technology.”

Such messaging sends a clear signal to startups and investors alike. Participation in Saudi Arabia’s energy transition is not limited to large international players. There is room — and intent — to cultivate local innovation.

 

Market Potential and Growth Outlook

The commercial opportunity is substantial. Independent market research projects Saudi Arabia’s renewable energy market — including generation, storage, and supporting technologies — to grow from under $1 billion today to more than $12 billion by the early 2030s, representing one of the fastest growth rates globally.

Battery storage is a particularly dynamic segment. Saudi Arabia installed nearly 3 gigawatts of grid-scale battery capacity in a single year, reflecting the growing need to balance solar and wind output. This expansion creates opportunities for startups focused on storage optimization, energy management software, and modular systems for industrial users.

Beyond energy, the transition is expected to generate hundreds of thousands of jobs across construction, manufacturing, technology, and services. For a country with a young population, this alignment between sustainability and employment is politically and economically significant.

 

Challenges on the Road Ahead

Despite the momentum, challenges remain. Renewable penetration, while growing, still lags behind global leaders. Startups entering the sector must navigate regulatory complexity, long procurement cycles, and competition from established multinationals.

There is also the broader question of execution. Delivering projects on time, integrating new technologies, and maintaining cost discipline will determine whether ambition translates into lasting impact.

Yet the direction of travel is clear. By anchoring its energy transition in both capital and innovation, Saudi Arabia is attempting something few countries have done at this scale: reengineering an energy economy while building entirely new industries alongside it.

 

A New Energy Narrative

Saudi Arabia’s renewable energy push is not about replacing oil overnight. It is about expanding the country’s economic base and future-proofing its role in a changing global energy system.

Through PIF, the Kingdom is deploying capital, shaping markets, and creating space for startups to grow. The result is an ecosystem where megaprojects and small innovators coexist, each reinforcing the other.

In that sense, Saudi Arabia’s energy transition is not just a shift in power generation. It is a redefinition of how a resource-rich nation prepares for a low-carbon future — and who gets to help build it.

 

‘Defensibility’ Explained: How Startups Protect Their Long-Term Value

Ghada Ismail

 

Every startup commences its journey with an idea. Some ideas are clever. Some are perfectly timed. A few even feel like they could change an industry. But here’s the reality most founders discover pretty quickly: having a good idea isn’t the hard part anymore.

The hard part is keeping that idea yours.

In today’s crowded startup world, once you build something valuable, others will notice. Competitors copy. Bigger players move faster. Well-funded companies enter your space. That’s when one uncomfortable question shows up:

What stops someone else from doing this better?

That question is all about ‘Defensibility’.

 

What Defensibility Actually Means

Defensibility is your startup’s ability to hold its ground over time. It’s not about being first to market. And it’s definitely not about having the flashiest product.

It’s about being hard to replace.

A defensible startup gets stronger as it grows. More customers make the product better. More usage creates smarter systems. Deeper integrations make it painful to switch away. Over time, competitors don’t just have to match your product; they have to overcome everything you’ve already built.

 

The Defensibility Traps Founders Fall Into

Many founders believe their startup is defensible because they have:

  • A great product
  • Strong execution
  • Early traction
  • A compelling brand story

All of these help. None of them are enough on their own.

Great products get copied. Execution advantages don’t last forever. Early traction attracts competition. Brand takes years—and serious money—to truly protect you. These things help you get started, but they don’t guarantee survival.

Real defensibility usually sits below the surface.

 

Where Real Defensibility Comes From

One of the strongest forms of defensibility is network effects. When your product becomes more valuable as more people use it, new competitors face a tough uphill climb. Marketplaces, payment platforms, and collaboration tools often benefit from this.

Another is data, but only the right kind. Startups that collect unique, hard-to-replicate data can improve their product in ways others can’t. This matters a lot in AI-driven businesses, but only if the data truly improves outcomes and isn’t easily available elsewhere.

Switching costs also matter. If your product becomes deeply embedded in how customers work—through workflows, integrations, or processes—leaving becomes expensive and risky. This is common in B2B software, fintech platforms, and enterprise tools.

In regulated industries, compliance and licensing can become a strong shield. Fintech, healthtech, and infrastructure startups often spend years navigating approvals. That effort alone can discourage competitors from entering the space.

Finally, scale can protect you. If growing larger significantly lowers your costs or improves your margins, latecomers struggle to compete without burning cash.

 

Defensibility Is Built Over Time

A common myth is that startups must be defensible from day one. That’s rarely true.

Early on, speed matters more than protection. Learning fast, serving customers, and refining the product should come first. Defensibility grows as you accumulate trust, users, data, partnerships, and credibility.

 

Your Market Choice Matters More Than You Think

Some markets make defensibility easier. Others fight you every step of the way.

If you’re operating in a space with low switching costs, no network effects, and endless substitutes, you’ll need near-perfect execution just to survive. On the other hand, markets tied to infrastructure, regulation, or ecosystems give you more room to build long-term advantages.

While a good market won’t guarantee success, a bad one can make defensibility almost impossible.

 

Defensibility Is a Founder Mindset

Defensibility isn’t just about technology. It’s about how founders think.

Strong founders constantly ask:
What gets stronger as we grow?
What becomes harder for competitors over time?
Where does our leverage come from?
What would a well-funded rival struggle to copy?

These questions shape everything, starting from product decisions to pricing, partnerships, and hiring.

 

To Wrap Things Up…

Defensibility doesn’t mean being unbeatable. It means being harder to beat every year.

In a world where money moves fast and ideas spread even faster, the startups that last aren’t always the first or the loudest. They’re the ones quietly building advantages that stack over time.

So here’s the question every founder should sit with:

If your startup disappeared tomorrow, how easy would it be for someone else to replace it?

If that question makes you uneasy, that’s a good thing. It means you know where the real work needs to begin.

Hostile takeover: unwanted acquisition, corporate defense, and real-world consequences

Noha Gad

 

Companies in the world of business grow through careful planning and friendly agreements. Leaders talk about partnership, shared goals, and future success. Yet there exists a more aggressive path to growth, where such collaboration is not welcome, and the fight for control is direct and fierce. This path is defined by a direct and forceful attempt to seize control against the clear wishes of the existing leadership.

This action is known as a hostile takeover. It happens when a company tries to buy another company against the wishes of its leaders, unlike friendly takeovers, where both companies agree. The buyer ignores the management and appeals directly to the company's owners and shareholders. It is a high-stakes contest that can change companies, industries, and careers.

 

What is a hostile takeover?

A hostile takeover happens when an entity takes control of a company against the wishes of the company's management. The company being acquired in a hostile takeover is called the target company, while the one executing the takeover is called the acquirer. 

This strategy requires the entity to acquire and control more than 50% of the company’s voting shares, allowing the new majority shareholders to control the acquired business. Key parties of a hostile takeover are: the buyer, the company or group that wants control; the target company, the firm being bought, whose leaders resist with plans and lawsuits; the shareholders; the owners who hold shares; and the regulators, government bodies that check for fair play and market rules.

 

How does it work?

A hostile takeover follows set steps in which the buyer acts with care and speed. These steps are:

       * Selecting and reviewing the target. The buyer chooses a company, then checks the share price, debt, and profits. The worth of the target company must be more than its market value.

       * Buying shares. The buyer starts with small purchases, using brokers to stay hidden.

       * Making a public offer. In this step, the buyer goes public, files with the regulations, and offers cash for shares.

       * Raising funds. The buyer can raise money through multiple options, including its own cash reserves, issuing new shares, securing loans, or partnering with banks and investors.

       * Proxy fight (if needed). If the offer does not succeed, the buyer launches a proxy fight by seeking shareholder votes to elect new board members, which allows changes to company rules that favor the takeover.

       * Securing approvals. In this step, regulators review and approve the deal to ensure compliance with antitrust laws and market protections.

       * Taking control. By securing over 50% of shares, the buyer can assume control, appoint new leadership, and complete the acquisition.

 

Defense strategies against hostile takeovers

Companies can follow different strategies to prevent unwanted hostile takeovers. These strategies are:

       -Differential Voting Rights (DVRs). Through this strategy, the company can establish stock with differential voting rights (DVRs), where some shares carry greater voting power than others. This makes it more difficult to generate the votes needed for a hostile takeover if management owns a large portion of shares.

       -Employee Stock Ownership Program (ESOP). The ESOP involves using a tax-qualified plan in which employees own a substantial interest in the company. Employees can be more likely to vote with management.

       -Crown Jewel. In this defense strategy, a provision of the company’s bylaws requires the sale of the most valuable assets if there is a hostile takeover, thereby making it less attractive as a takeover opportunity.

       - Poison Pill (officially known as a shareholder rights plan). This tactic allows existing shareholders to buy newly-issued stock at a discount if one shareholder has bought more than a stipulated percentage of the stock, resulting in a dilution of the ownership interest of the acquiring company. There are two types of poison pill defenses: the flip-in and flip-over. A flip-in allows existing shareholders to buy new stock at a discount if someone accumulates a specified number of shares of the target company, while the flip-over strategy allows the target company's shareholders to purchase the acquiring company's stock at a deeply discounted price if the takeover goes through.

 

Hostile takeovers produce both positive effects and serious issues for companies, shareholders, and markets, often sparking debate about their overall value. They unlock higher value for shareholders by offering premiums on shares that reflect the company's true worth, while driving better operations through new leadership that cuts waste and boosts efficiency in areas like fintech innovation. On the other side, they carry risks such as job losses when the buyer reduces staff to lower costs and a focus on short-term gains that ignores long-term growth plans. Some view hostile takeovers as healthy competition that rewards strong owners, whereas others see them as predatory actions that harm workers and stable businesses.

Finally, the path of the hostile takeover presents a different and more confrontational alternative. This process, defined by the direct acquisition of a target company against the expressed wishes of its leadership, unfolds as a high-stakes contest for control, fundamentally reshaping organizations and markets. These takeovers can serve as a powerful instrument of market discipline; however, they carry significant negative consequences.

Ultimately, hostile takeovers embody the tension between the aggressive pursuit of opportunity and the principles of corporate autonomy and strategic continuity. While it can act as a catalyst for positive change and value creation, it also represents a potentially disruptive and predatory force.

Why So Many Startups Die Young and How to Survive the Death Valley Curve

Kholoud Hussein 

 

In the world of startups, few concepts are as feared or as misunderstood as the “Death Valley Curve.” The term sounds dramatic, but it describes a very real and common phase in a young company’s life. Many promising startups do not fail because their ideas are bad. They fail because they cannot survive this critical stretch between early promise and sustainable growth.

The Death Valley Curve refers to the period when a startup’s expenses consistently exceed its revenues, often for longer than expected. On a financial graph, cash flow dips deep into negative territory before it has a chance to recover. If the company runs out of cash before reaching profitability or securing new funding, the journey ends there.

This phase usually appears after initial product development and early market entry. Founders may have validated an idea, built a minimum viable product, and even signed their first customers. But revenues remain modest, while costs rise sharply. Salaries, marketing spend, infrastructure, compliance, and customer acquisition all add pressure. At the same time, investor enthusiasm may cool if growth is slower than projected.

The danger of the Death Valley Curve lies in its timing. Startups often enter it with confidence, assuming revenue growth will accelerate quickly. In reality, sales cycles are longer, customer acquisition costs are higher, and operational complexity increases faster than planned. The result is a widening gap between cash coming in and cash going out.

Avoiding the Death Valley Curve entirely is rare. Managing it successfully is the real goal.

One of the most effective ways startups can reduce risk is by maintaining disciplined cash management from day one. This means knowing exactly how long the company’s runway is and regularly updating that forecast. Founders should be able to answer a simple question at any time: how many months can we operate if no new revenue or funding arrives? Startups that track this closely can make early adjustments rather than react in crisis mode.

Another critical strategy is pacing growth deliberately. Many startups fail not because they grow too slowly, but because they grow too fast. Hiring aggressively, expanding into multiple markets, or building features before demand is proven can push costs higher without increasing revenue. Smart startups focus on the few activities that directly support customer acquisition and retention, and delay everything else.

Customer validation also plays a central role in surviving this phase. Startups that listen closely to users and adapt quickly are more likely to reach product-market fit before cash runs out. This often means saying no to custom requests that do not scale, refining pricing models early, and ensuring the product solves a real, recurring problem. Revenue quality matters as much as revenue volume.

Access to capital is another factor, but it should not be the only safety net. Relying on future funding rounds without demonstrating progress is risky, especially during tighter market conditions. Investors increasingly look for evidence of traction, efficient use of capital, and a clear path to sustainability. Startups that can show improving unit economics are in a much stronger position to raise funds in the Valley.

Finally, leadership mindset matters. Founders who acknowledge the Death Valley Curve as a normal phase are better prepared to handle it. This includes transparent communication with teams, realistic goal setting, and the willingness to make hard decisions early. Cutting costs or pivoting strategy is far easier when done proactively rather than under pressure.

The Death Valley Curve is not a sign of failure. It is a test. Startups that survive it do so by combining financial discipline, focused execution, and constant learning. Those that emerge on the other side are often stronger, more resilient, and better equipped for long-term success.

 

How AI Is Reshaping Saudi Arabia’s Mining Sector

Ghada Ismail

 

Mining is no longer a background industry in Saudi Arabia’s economic story. As the Kingdom works to reduce its dependence on oil, mining has moved to the forefront of its diversification agenda. Under Vision 2030, the sector is being positioned as the third pillar of Saudi Arabia’s industrial economy, standing alongside oil and petrochemicals. According to the Ministry of Industry and Mineral Resources, the Kingdom’s untapped mineral wealth is valued at more than SAR 9.3 trillion, including gold, copper, phosphate, bauxite, rare earth elements, and other critical minerals that are increasingly essential to the global energy transition and advanced manufacturing.

 

This push comes at a moment when global demand for minerals is accelerating, driven by renewable energy technologies, electric vehicles, and the digital infrastructure powering modern economies. Saudi Arabia sees an opportunity to establish itself as a major global mining hub. But turning geological potential into long-term value is not straightforward. Mining in harsh desert environments, often far from major population centers, is capital-intensive and operationally complex. Staying competitive requires smarter, safer, and more sustainable ways of working.

 

This is where artificial intelligence is beginning to change the game.

Across the mining value chain, AI is emerging as a powerful enabler, spanning early-stage exploration to daily operations, safety management, and environmental monitoring. By embedding AI into mining processes, Saudi companies are improving productivity, cutting costs, and making faster, better-informed decisions. At the same time, this shift is opening the door to a broader innovation ecosystem, drawing in startups, research institutions, and technology providers eager to help shape the future of mining in the Kingdom.

 

AI in Exploration and Operations

Mineral exploration has always been a high-risk, high-cost endeavor. Traditional methods rely on years of geological surveys, drilling campaigns, and lab analysis, often with no guarantee of a viable discovery. AI is helping tilt the odds.

Machine learning models can now process vast volumes of data—satellite images, geophysical surveys, and decades of historical records—to identify patterns that would be nearly impossible for humans to detect. These systems can flag promising areas for exploration with greater accuracy, allowing companies to focus their investments where the likelihood of success is highest and avoid unnecessary drilling.

 

Saudi Arabian Mining Company (Ma’aden), the Kingdom’s flagship mining firm, has been actively exploring AI-driven tools to enhance exploration and resource modeling. By integrating advanced analytics into its workflows, Ma’aden has improved its ability to assess ore quality, estimate reserves, and shorten exploration timelines, making investment decisions more efficient and data-driven.

Once a mine is operational, AI continues to deliver value. Autonomous equipment and robotics are increasingly taking on tasks that were once labor-intensive and dangerous. Self-driving haul trucks, AI-assisted drilling systems, and automated processing plants are enabling more consistent, around-the-clock operations with reduced human exposure to risk.

Downtime is another costly challenge in mining. AI-powered predictive maintenance systems help address this by continuously monitoring equipment performance through sensors and real-time data feeds. Instead of reacting to breakdowns after they happen, operators can anticipate failures, schedule maintenance in advance, and extend the life of critical machinery. The result is lower operating costs and more reliable production.

 

Back in 2023, a notable initiative in this context is Ma’aden’s partnership with OffWorld, which develops AI-driven swarm robotic systems for autonomous mining tasks. These robots can perform repetitive or hazardous operations with minimal human intervention, enhancing safety and operational precision while enabling fully automated mining workflows in the Kingdom.

AI is also transforming ore processing and refining. Intelligent systems can adjust processing parameters on the fly based on the composition of incoming ore, improving recovery rates while reducing waste. For Saudi Arabia, where maximizing the value of each extracted resource is central to long-term sustainability, these efficiencies are particularly important.

 

AI in Safety and Sustainability

Mining will always carry inherent risks, but AI is helping make worksites safer and more controlled. Advanced monitoring systems now allow operators to oversee conditions across vast and often remote mining sites in real time.

AI-powered cameras, drones, and computer vision tools can detect structural weaknesses, monitor equipment behavior, and flag unsafe practices before they escalate into serious incidents. Video analytics, for example, can identify whether workers are complying with safety protocols, helping reduce accidents without relying solely on manual supervision.

Automation also plays a role in safety. Remote-controlled and autonomous machinery reduces the need for workers to operate in high-risk environments such as deep underground tunnels or extreme heat zones. This not only lowers accident rates but also improves precision and operational consistency.

Environmental sustainability is another area where AI is making a tangible impact. Mining can place heavy demands on water, energy, and land resources, especially in arid regions like Saudi Arabia. AI-driven systems help companies monitor and manage these impacts more effectively.

Water optimization tools analyze usage patterns in processing plants and recommend ways to reduce consumption without compromising output. Energy management systems adjust power usage in response to operational needs, cutting waste and lowering emissions. Satellite imagery and drone-based monitoring enable companies to track land rehabilitation efforts, detect pollution risks early, and ensure compliance with environmental regulations.

These capabilities align closely with Saudi Arabia’s broader sustainability ambitions and its goal of setting higher standards for responsible mining.

 

Industry Ecosystem and Opportunities

The rise of AI in Saudi mining is not just benefiting large corporations. It is also creating space for startups, technology firms, and research institutions to play a meaningful role.

Lithium Infinity (Lihytech), for example, a Saudi mining tech company, is developing advanced lithium extraction solutions, targeting minerals essential for batteries and the global energy transition. While AI is not yet native to their operations, these technologies are highly compatible with AI-driven optimization and automation.

Incubated by King Abdullah University of Science and Technology (KAUST), Lihytech represents a growing ecosystem where innovation meets industrial needs. With government programs supporting AI adoption and workforce development, startups like Lihytech have a chance to bridge technology gaps and accelerate the Kingdom’s journey toward smart mining.

Opportunities are emerging in areas such as geological data analytics, drone-based surveying, autonomous systems, and digital twins—virtual replicas of mining operations that allow companies to simulate scenarios, test improvements, and optimize workflows without disrupting live operations.

 

Challenges Are Still Ahead

At the same time, where the field is rich in opportunities, challenges remain. One of the biggest is data fragmentation, with geological and operational information often spread across disconnected systems. Startups specializing in data integration and AI compatibility could play a key role in bridging these gaps.

Workforce readiness is another hurdle. As mining becomes more data-driven, demand is growing for skills in AI, automation, and digital systems. Training platforms, simulation tools, and AI-enabled upskilling solutions will be essential to preparing the next generation of mining professionals.

Government support is helping accelerate this transition. The Ministry of Industry and Mineral Resources has been actively promoting digital transformation across the sector, while programs under Vision 2030 aim to localize mining technologies and encourage collaboration between miners and tech providers. Initiatives such as the Saudi Geological Survey’s National Geological Database are improving access to critical mining and geological data, enabling researchers, investors, and industry players to make more informed decisions. The National Industrial Development and Logistics Program (NIDLP) is supporting the sector by fostering innovation, local technology adoption, and integration across industrial value chains. Meanwhile, the Kingdom’s National Strategy for Data and AI, led by SDAIA, provides a strong framework for adopting AI technologies across industrial sectors, including mining, helping drive digital transformation and long-term competitiveness under Vision 2030.

 

Recent Industry Milestone
The sector’s momentum was highlighted at the fifth Future Minerals Forum, held in Riyadh in January 2026, which drew over 21,500 participants from governments, investors, and technical experts worldwide. The forum, themed “Dawn of a Global Cause,” showcased Saudi Arabia’s growing role as a hub for responsible mineral development and innovation. Over the course of the event, participants signed 132 agreements and memoranda of understanding worth approximately USD 26.6 billion, covering exploration, financing, R&D, innovation, and sustainability initiatives. Key recommendations emphasized accelerating the adoption of advanced technologies, strengthening regulatory frameworks, expanding investment incentives, and fostering global collaboration to secure resilient and sustainable mineral supply chains. The forum’s outcomes underline the Kingdom’s commitment to both technological innovation and long-term sustainability in mining.

 

Conclusion

Artificial intelligence is rapidly reshaping Saudi Arabia’s mining sector, changing how minerals are discovered, extracted, and processed. By improving exploration accuracy, streamlining operations, enhancing safety, and strengthening environmental stewardship, AI is helping the industry overcome long-standing challenges.

Beyond operational gains, AI is also catalyzing a broader innovation ecosystem, creating new opportunities for startups, technology providers, and research institutions to contribute to the Kingdom’s mining ambitions. Backed by government support and growing private sector investment, Saudi Arabia is steadily building a smarter, more resilient mining industry.

As global competition for critical minerals intensifies, the Kingdom’s AI-driven approach offers a compelling model for sustainable and technology-led resource development. By combining vast mineral resources with advanced digital capabilities, Saudi Arabia is not just diversifying its economy but also redefining what modern mining can look like in the decades ahead.