Ghada Ismail
In the Kingdom of Saudi Arabia, the startup narrative continues to gain momentum under Vision 2030’s banner of innovation and economic diversification. Yet beneath the high-profile headlines of unicorns and mega‑funding rounds lies a quieter, but equally vital story: that of entrepreneurs whose first venture did not succeed and how they regroup, recalibrate, and launch again. For many Saudi entrepreneurs, failure is not a dead‑end but a stepping stone. So what drives these second-time founders? Where do they go after their first setback? And what does their journey reveal about the evolution of the Saudi startup ecosystem?
The first failure: stepping stones, not detours
Failure remains a common part of the startup lifecycle. Research globally suggests the majority of new ventures struggle to survive. For Saudi founders, the hardships may be slightly tougher given local cultural expectations, but shifting attitudes and ecosystem maturity are changing the narrative.
Take the story of Abdullah Alsaadi, co-founder and CEO of Taker.io. He launched his first idea, a cryptocurrency app, and after building nearly 30,000 lines of code, realized he had built something cool, but there was simply no market for it. His second attempt, a Salesforce‑platform app, failed because the Middle East infrastructure and market readiness were not aligned. Only after several more attempts did the business model click.
Similarly, Hatem Kameli (founder of Resal) started his first online business early in his career, closing down more than one venture due to a lack of venture capital.
Since launching his first company at just 19, Hatem Kameli has been a driving force in Saudi Arabia’s startup scene. Today, the digital entrepreneur is preparing for his boldest move yet as he takes his company, Resal, public.
When a young Hatem founded his first internet startup two decades ago, right after the dotcom crash, family and friends urged him to focus on university and pursue a stable government job instead. But he was determined to chart his own path.
Two decades and several ventures later, Hatem stands as one of Saudi Arabia’s most recognized entrepreneurs. As Co-Founder and CEO of Resal, the Middle East’s largest digital gifting platform, he continues to push boundaries.
“In all my companies, I have always tried to use new technologies in ways that make a real difference to the economy and have a positive impact on people’s lives,” he says. “Whatever I do, I want to add value to the community.”
The journey was far from smooth. Hatem shuttered two early online ventures because of the scarcity of venture capital at the time. After selling one of his more successful startups, he decided to gain corporate experience by working on digital strategy projects for major banks and airlines, while also completing an MBA.
That experience proved invaluable. By the time Saudi Arabia unveiled Vision 2030, Hatem was perfectly positioned to ride the wave of transformation reshaping the Kingdom’s economy.
“Everything changed with Vision 2030,” he says. “We now have incubators and accelerators for startups, plentiful venture capital, and multiple financing programs. The ecosystem is incredible.”
“I’m grateful to work in a regional hub for technology, fintech, e-commerce, and digital entertainment.”
Hatem did not just benefit from this ecosystem. He helped build it. He contributed to one of Saudi Arabia’s first technology incubators, creating bridges between investors and startups. Alongside leading a digital marketing agency and launching a social media analytics platform, he pursued executive education at top international institutions and authored two books on social media marketing.
That same energy and passion for connecting people culminated in Resal, an award-winning platform that enables users and corporations to send and manage digital gift cards across hundreds of partner brands.
What emerges is a pattern: founders who don’t succeed the first time often gain resilience, domain familiarity, and networks, which prime them for a second act. From this, we realize that failure isn’t a detour; it becomes part of the journey.
What drives the comeback?
- Experience and resilience: Founders who have been through a rough first ride often have a thicker skin and better perspective. Alsaadi remarked that the six years of “failure after failure” taught him far more than success ever could.
- Ecosystem backing: The Saudi startup ecosystem has grown substantially. Incubators, accelerators, government-backed funds, and regulatory reform now offer greater support than in earlier years of many founders’ first ventures.
- Refined idea selection: Having seen what does not work, second-time founders are often more deliberate about product–market fit, monetization, and business model viability.
- Network and credibility: Although prior failure carries a reputational risk, it also signals experience; founders who persevered have built networks, seen terrain, and can often draw on those assets for the next venture.
Paths taken after failure: Saudi second-time founder routes
In the Saudi context, second-time founders tend to follow one of a few broad routes:
a) Pivot and rebuild in the same or adjacent domain
Some entrepreneurs double down in their field, applying the lessons learned. Hatem Kameli’s pathway illustrates this: after early web‑ventures and business roles, he launched Resal in the digital gift‑cards sector when the timing and ecosystem were more favourable. This route allows the reuse of domain knowledge and contacts built during the first run.
b) Shift to a different sector or business model
Others take a hard pivot: they may leave a B2C model or consumer‑play and move into B2B, SaaS, enterprise, or niche segments where unit economics and market clarity improve. Alsaadi’s evolution is instructive: after his first few failed attempts, he focused on a SaaS platform (Taker.io) targeting restaurant ordering for a tighter set of customers, a clearer value‑proposition, and more achievable scale in Saudi.
c) Serial entrepreneurship/portfolio approach
There is a growing mindset among Saudi founders: treat ventures as cycles. One venture may fail, but it becomes input into the next. Rather than view failure as ending the journey, they see it as calibration. In this sense, the second act is not “re-trying the same idea” but “applying accumulated experience to a better‑aligned idea”.
Lessons brought into the second act
From founder interviews and credible commentary, several recurring lessons appear:
- Test product–market fit early & deeply: Alsaadi admitted that his first app failed not because of technology, but because there was no market.
- Own your destiny from day one: Second-time founders often emphasize controlling core components — hiring, metrics, cashflow — rather than relying purely on hype or external validation.
- Accept failure and iterate quickly: failure is not taboo, but rather a stage of the journey.
- Adapt to the Saudi market context: Founders who succeed the second time have tailored their solution to local culture, regulatory environment, and consumer behavior rather than importing templates blindly.
Conclusion
The story of second-time founders in Saudi Arabia illustrates the evolution of the Kingdom’s startup ecosystem. Founders such as Abdullah Alsaadi and Hatem Kameli show that failure is not the end of the road; it can be the launchpad for a more aligned, disciplined, and timed second act. As the ecosystem matures, more Saudi entrepreneurs are using their first setback not as a stigma but as preparation.
Yet, success is not automatic. It demands realism, discipline, adaptation to the Saudi market, and courage to iterate. The key takeaway? For Saudi founders, the second attempt often matters more than the first. Failure is no longer taboo; it’s rather a credential. And in the Kingdom’s dynamic startup world, the founder who didn’t give up may be exactly the one who succeeds.