Building Tomorrow: How PropTech is Shaping Saudi Arabia

Sep 15, 2025

Ghada Ismail

 

Saudi Arabia’s real estate sector is in the midst of a profound transformation, driven by the rapid adoption of Property Technology (PropTech). No longer confined to the fringes of the industry, PropTech has become a game-changer, reshaping property transactions, management, and investment with cutting-edge digital solutions. 

 

The range of PropTech capabilities broadens to include significant instruments starting from AI-powered property matchmaking to blockchain-secured contracts, virtual property tours, or AI-driven property management, rewriting the rules of real estate. With Vision 2030 fueling a national shift toward innovation and sustainability, Saudi Arabia is emerging as a powerhouse in the global PropTech revolution. As investors, startups, and policymakers rally behind this digital shift, the Kingdom is setting a new standard for how real estate is bought, sold, and managed in the 21st century.

 

Understanding the PropTech Ecosystem

PropTech encompasses a wide range of technologies designed to improve real estate processes. These innovations include AI-driven property valuations, blockchain-based transactions, smart building solutions, and IoT-integrated urban planning. The integration of these technologies into Saudi Arabia’s real estate sector is fostering transparency, efficiency, and smarter decision-making across the board. 

 

Speaking the language of numbers, Saudi Arabia’s PropTech sector saw a 35% annual increase in venture capital investments in 2023, reaching $9 million, according to a report issued by the leading startup directory MAGNiTT.

The Kingdom is said to be leading the Middle East, Africa, Pakistan, Turkiye, and Southeast Asia in deal count, closing six PropTech transactions last year. In total funding, Saudi Arabia ranked fifth among these markets, further cementing its position as a growing hub for real estate innovation.

 

Despite a broader global slowdown in PropTech funding, the Saudi market demonstrated resilience, aligning with the country’s Vision 2030 initiatives that promote real estate digitalization and smart technology adoption.

The report also highlighted that key PropTech subsectors, including property marketplaces, co-working spaces, tenancy management, and facility management, continue to attract investor interest in the Kingdom. 

 

Saudi Arabia’s Real Estate Market: A Breeding Ground for PropTech

In October last year, the Real Estate General Authority (REGA) announced the launch of a Saudi PropTech Hub (sph) at the opening of the Global PropTech Summit, with an ambition to serve entities interested in real estate technology, both domestically and internationally.
 

The hub’s main aim is to provide services designed to strengthen stakeholders in the sector, acting as a primary channel for innovation in real estate technologies in the Kingdom with several key initiatives included in sph: the regulatory sandbox, the real estate technology accelerator, the Global PropTech Summit itself, and the PropTech Council.
as a natural result of such comprehensive efforts, the Kingdom planted every possible seed to become a fertile ground for the PropTech revolution with several key factors driving this transformation.

 

What’s Driving PropTech Growth in Saudi Arabia

Saudi Arabia’s Vision 2030 initiative is a key factor in propelling the growth of the PropTech market. The Kingdom is working hard to reduce its reliance on oil and diversify its economy, with real estate being one of the focal points. With large investments flowing into infrastructure, urban development, and smart city projects, the stage is set for PropTech to thrive and reshape the real estate landscape.

 

The country’s real estate market is also booming, fueled by rapid urbanization, a growing population, and a rising demand for both residential and commercial properties. This surge in growth is creating a need for PropTech solutions that can make property management smoother, improve the user experience, and increase efficiency across the board.

 

On top of this, technological advancements play a huge role in the sector’s evolution. The rise of smartphones, internet connectivity, and cloud computing are all creating the perfect environment for PropTech solutions to flourish. Plus, the government is actively supporting the digital transformation of industries, accelerating PropTech adoption in real estate.

 

Finally, the entrepreneurial spirit is alive and well in Saudi Arabia. With a young, tech-savvy population, the Kingdom is seeing a wave of startups bringing fresh, innovative ideas to the PropTech space. These startups are pushing the boundaries of what’s possible, offering solutions that address the changing needs of property owners, investors, and tenants alike.

 

Breaking Down the Saudi PropTech Market

The PropTech market in Saudi Arabia can be divided into several areas, with different solutions and applications catering to diverse needs.

  • Business Intelligence: These tools focus on data analytics, offering insights into market trends, property performance, and investment opportunities.
  • Facility Management: Solutions designed to streamline the management of building operations, maintenance, and services.
  • Portfolio Management: Tools that help manage and optimize property portfolios, including risk management and asset allocation.
  • Real Estate Search: Platforms making it easier to search for residential and commercial properties, with the integration of virtual and 3D touring options.
  • Asset Management: Solutions for handling property assets, from leasing to sales and maintenance.
  • Enterprise Resource Planning (ERP): These systems integrate all aspects of real estate operations, from finances to human resources.
  • Others:  Niche solutions such as legal tech, property financing, and tenant management systems are also making their mark.

 

Key Players and Emerging Startups

Saudi Arabia’s PropTech landscape is home to a mix of established players, disruptive startups, and government-backed initiatives. Here are some of the most influential entities reshaping the sector:

Leading Startups Driving PropTech Innovation

  • Sakan: Sakan property technology platform is a leading full-stack real estate marketplace, founded to provide a unique and integrated property experience for various stakeholders in the real estate sector. Sakan comes with a mission to offer innovative and creative PropTech solutions in the MENA region and digitize various aspects of the property journey. Sakan sets its key objective to facilitate and enhance real estate transactions and effectively cater to the growing demand by real estate agents, property management companies, landlords, and tenants. A cutting-edge PropTech platform, Sakan offers AI-driven property matching and digital rental agreements.
  • Musanada : Specializing in smart property management solutions that leverage automation for maintenance, tenant interactions, and real-time analytics, Musanda is an award-winning facilities service in Saudi Arabia offering a full range of integrated facilities management solutions tailored to meet client needs.
  • Bayut and Dubizzle (Emerging in Saudi Market):  Dubai-based listings sites expanding their presence in Saudi Arabia to introduce a comprehensive property search and transaction platform.

Institutional and Government-Backed Initiatives

  • Public Investment Fund (PIF): Spearheading investments in real estate tech startups as part of its broader economic diversification strategy.
  • Saudi Venture Capital Company (SVC): Supporting early-stage PropTech startups through funding, mentorship, and growth acceleration programs.
  • Ejar System: A government-backed digital rental platform that aims to regulate and streamline the leasing process across the Kingdom. Ejar is a comprehensive rental service e-network established with the aim of regulating the real estate rental sector in Saudi Arabia and preserving the rights of all parties involved in the leasing process —tenant, lessor, and broker. To foster growth in the real estate rental sector and promote its reliability, Ejar offers a large set of e-solutions. Real estate investment is also encouraged by the Program.

The Challenges Facing Saudi Arabia’s PropTech Boom

Despite its rapid ascent, the PropTech sector in Saudi Arabia faces several challenges that could slow its momentum:

  • Regulatory Complexity: Navigating the evolving legal landscape for digital property transactions can be daunting for startups and investors alike.
  • Data Security and Privacy Concerns: As PropTech platforms digitize sensitive real estate data, cybersecurity threats become a major concern.
  • Adoption Resistance from Traditional Players: Many established real estate firms remain hesitant to embrace new technology, slowing down sector-wide transformation.
  • Infrastructure and Connectivity Issues: Although Saudi Arabia is rapidly expanding its digital infrastructure, certain regions still face challenges in seamless PropTech adoption.

How Startups Are Overcoming These Barriers

Forward-thinking PropTech startups are addressing these obstacles through strategic initiatives:

  • Collaboration with Regulators: Companies are working closely with the Saudi government to shape policies that encourage digital transformation while ensuring compliance.
  • Embracing Blockchain and AI for Transparency: Technologies like smart contracts and AI-powered risk assessments are being deployed to enhance trust and security in property transactions.
  • Developing Market Education Strategies: Through partnerships with real estate developers and consumer awareness campaigns, PropTech firms are fostering greater acceptance of digital solutions.

Future Trends: Where is Saudi PropTech Headed?

Saudi Arabia’s PropTech scene is poised for further disruption, with several emerging trends set to shape its future:

  • Smart City Expansion: As giga-projects like NEOM continue to evolve, PropTech solutions will play a critical role in enabling AI-driven urban planning and sustainable living.
  • AI-Enhanced Marketplaces: Property platforms will increasingly leverage AI and big data to offer predictive insights, personalized recommendations, and automated pricing models.
  • Blockchain-Powered Real Estate Transactions: Expect to see wider adoption of decentralized ledgers to facilitate transparent and secure real estate dealings.
  • FinTech-PropTech Convergence: The integration of digital mortgage platforms, tokenized property investments, and AI-driven lending solutions will redefine real estate financing.
  • Sustainability and Green PropTech: With a growing emphasis on sustainability, real estate developers are incorporating energy-efficient smart buildings, IoT-powered utility management, and AI-driven carbon footprint tracking.

 

Conclusion: The Future is Digital

Saudi Arabia's PropTech sector is no longer just emerging, it’s leading a quiet revolution in how the Kingdom builds, buys, and interacts with real estate. By seamlessly integrating cutting-edge technologies with the nation’s ambitious urban visions, PropTech startups are playing a key role in shaping smarter, more sustainable communities.

 

The momentum is undeniable. As the kingdom steps further towards advanced proptech practices varying from digitized property transactions to AI-powered analytics and eco-friendly construction innovations.  The sector’s potential stretches far beyond convenience, it rather promises to redefine the very fabric of real estate in Saudi Arabia.

 

As the country balances rapid growth with long-term sustainability goals, PropTech stands at the crossroads of opportunity and transformation. For anyone watching closely, this is more than an industry shift—it’s a glimpse into the future of urban living, where innovation becomes a cornerstone of progress.

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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.