Kholoud Hussein 

In recent years, Saudi Arabia has undergone a remarkable transformation in women's empowerment, particularly in the technology sector and entrepreneurship. This shift aligns with the Kingdom's Vision 2030, aiming to diversify the economy and reduce dependence on oil revenues. On this International Women's Day, we celebrate the significant contributions of Saudi women in technology and entrepreneurship, highlighting the Kingdom's efforts to become a global pioneer in enabling women.

Historical Context of Women's Empowerment in Saudi Arabia

Historically, Saudi women faced numerous challenges in accessing education and employment opportunities. However, the past decade has witnessed substantial reforms aimed at enhancing women's rights and participation in various sectors. The lifting of the driving ban in 2018 and the easing of male guardianship laws have been pivotal in granting women greater autonomy and mobility. These changes have paved the way for increased female participation in the workforce, particularly in sectors traditionally dominated by men.

Women's Participation in the Workforce

The Saudi government's initiatives have led to a significant rise in women's employment. As of the second quarter of 2024, women's participation in the labor force reached 35.8%, surpassing the government's target ahead of schedule. This surge is evident in various industries, including manufacturing, where women are now integral to operations. For instance, at Johnson Controls Arabia, an air-conditioning plant, women like Rawan al-Harbi are contributing to roles traditionally held by men, reflecting the shifting dynamics in the workforce.

Saudi Women in the Technology Sector

The technology sector in Saudi Arabia has experienced rapid growth, with women playing a crucial role in its development. Educational reforms have emphasized STEM (Science, Technology, Engineering, and Mathematics) fields, encouraging female students to pursue careers in technology. Universities and institutions offer specialized programs to equip women with the necessary skills to thrive in the tech industry.

Educational Initiatives

Saudi universities have been instrumental in promoting women's education in technology. The establishment of the Princess Nourah bint Abdulrahman University, the largest women's university globally, offers various STEM programs, fostering a new generation of female tech professionals. Additionally, collaborations with international institutions have provided Saudi women with exposure to global best practices and emerging technologies.

Professional Contributions

Saudi women have made significant strides in the tech industry, taking on roles as software developers, data analysts, and IT consultants. Their involvement has been pivotal in driving innovation and contributing to the Kingdom's digital transformation. Companies such as Aramco and STC have reported an increase in female employees in their IT departments, reflecting a broader trend of gender diversity in the sector.

Leadership and Recognition

Prominent Saudi women have emerged as leaders in technology, earning national and international recognition. Figures like Hoda Al-Ghoson, former Executive Director of Human Resources at Aramco, have been instrumental in advocating for women's inclusion in technical fields. Their achievements serve as inspiration for aspiring female tech professionals in the Kingdom.

Women's Role in Entrepreneurship

Entrepreneurship has become a viable avenue for Saudi women to contribute to the economy, with supportive ecosystems fostering their ventures. The number of female entrepreneurs has increased by over 35% in the last decade, indicating a positive trend toward gender parity in business ownership. 

Government Support and Initiatives

The Saudi government has launched several programs to support female entrepreneurs. The General Authority of Small and Medium Enterprises (Monshaat) offers loan guarantee programs and has implemented regulations to reduce administrative burdens on SMEs. Additionally, the Badir Technology Incubators and Accelerators Program provides workshops and training to promote an entrepreneurial culture among women university students. 

Access to Funding

Access to capital has historically been a barrier for female entrepreneurs. However, recent reforms and initiatives have improved funding opportunities. Banks and financial institutions are now offering tailored financial products to support women-led businesses. Moreover, venture capital firms are increasingly recognizing the potential of female entrepreneurs, leading to more investment in women-led startups.

Success Stories

Several Saudi women have established successful businesses, serving as role models for aspiring entrepreneurs. For instance, Alhanoof Alzahrani, co-founder of Scopeer, Saudi Arabia's first crowdfunding company, has expressed optimism about the opportunities available to women in business. She stated, "Amid the economic diversification and push for women's empowerment, opportunities are everywhere. You just must be creative and willing to take risks."

Saudi Arabia as a Global Pioneer in Enabling Women

Saudi Arabia's efforts to empower women have positioned the Kingdom as a leader in gender reforms within the region. The World Bank's "Women, Business and the Law 2020" study highlighted Saudi Arabia as the most improved economy for gender equality, with its score rising from 31.8 to 70.6 points. 

Policy Reforms

The Kingdom has implemented several policy changes to promote gender equality. These include allowing women to travel without male guardianship, granting them the right to register births, marriages, and divorces, and providing equal access to employment opportunities. These reforms have significantly enhanced women's autonomy and participation in public life.

International Recognition

Saudi Arabia's progress in women's empowerment has garnered international attention. The Kingdom's efforts align with global initiatives to promote gender equality, such as the United Nations Sustainable Development Goals. By championing women's rights and participation, Saudi Arabia is setting a precedent for other nations in the region to follow.

Challenges and the Road Ahead

Despite Saudi Arabia’s remarkable progress in empowering women, several challenges remain on the path to full gender equality in the workforce, technology sector, and entrepreneurship. Addressing these challenges will be crucial to sustaining the momentum and ensuring that Saudi women continue to thrive in their careers and businesses.

Cultural and Social Barriers

While societal perceptions of women in the workforce have evolved significantly, traditional views on gender roles still pose challenges in some industries. In certain conservative circles, there remains resistance to women holding leadership positions or working in mixed-gender environments. However, government-backed awareness campaigns and the increasing visibility of successful Saudi women in various fields are gradually changing these perceptions.

Access to Funding and Investment for Women Entrepreneurs

Although funding opportunities have improved, women-led startups still face more difficulties in securing venture capital and business loans compared to their male counterparts. According to recent reports, women entrepreneurs in Saudi Arabia receive only a fraction of total VC funding, a challenge seen globally. Initiatives such as Monshaat’s loan guarantee programs and the introduction of women-focused investment funds are promising steps toward bridging this gap.

Balancing Work and Family Responsibilities

A common challenge faced by women worldwide, including Saudi Arabia, is balancing professional aspirations with family responsibilities. While Saudi labor laws now offer more flexibility, including extended maternity leave and remote work options, further advancements such as subsidized childcare facilities and enhanced parental leave policies can further support working women.

Encouraging More Women in STEM and Tech Leadership

Although Saudi Arabia has made great strides in promoting women’s participation in STEM fields, there is still a gap in the number of women reaching senior leadership positions in the technology industry. Tech giants and startups alike must continue to prioritize mentorship programs, networking opportunities, and leadership training to equip women with the skills and confidence to take on executive roles.

Looking Forward: Sustaining the Momentum

Saudi Arabia has positioned itself as a regional leader in women’s empowerment, but continued progress requires ongoing reforms, investment, and cultural shifts. Government policies must evolve alongside economic and societal changes to ensure that women are fully integrated into the Kingdom’s ambitious Vision 2030 goals. By addressing existing challenges, Saudi Arabia can further cement its status as a global model for gender inclusivity and economic transformation.

A Future Driven by Women’s Success

As we celebrate International Women’s Day, Saudi Arabia’s strides in empowering women in technology, entrepreneurship, and the broader economy are undeniable. Women in the Kingdom contribute to economic diversification and shape the future of industries once dominated by men. With strong government support, shifting societal norms, and the growing presence of female role models, the path forward is promising.

However, sustaining this progress requires continued investment in education, funding opportunities, and leadership development to ensure that women are not just participants but key drivers of Saudi Arabia’s economic future. The Kingdom’s journey inspires the region and beyond, proving that when women are empowered, economies thrive.

Ghada Ismail

For most new businesses, the first year is a financial tightrope walk. Even with a great idea and a strong market need, cash flow problems can bring everything crashing down long before the business gets a chance to succeed. In fact, running out of money is one of the top reasons startups fail in year one, not because the product was flawed, but because the money ran out faster than expected.

From overestimating revenue to underestimating expenses, many first-time founders fall into the same financial traps that have sunk countless startups before them. In this episode, we’ll break down the most common money mistakes, the cash flow strategies that can make or break a business, and how to secure funding without falling into dangerous spending habits.

Common financial mistakes in the first year
Many founders underestimate how much capital they need to reach profitability, while overestimating how quickly they’ll generate revenue. The result? A dangerous gap between income and expenses that drains cash reserves faster than expected.

Spending too much too soon is another frequent mistake. From fancy office spaces to costly marketing campaigns, early-stage businesses often spend like established companies without the revenue to match. On the other side, some founders underinvest in critical areas—like marketing, product development, or customer acquisition—leaving the business unable to grow fast enough to survive.

Cash flow management strategies
Surviving year one requires tight financial discipline. Startups need realistic budgets that account for slow sales cycles, unexpected expenses, and a longer-than-expected path to profitability. Smart founders track their burn rate weekly, understanding exactly how long their cash will last at current spending levels, but what is a burn rate?

In business, burn rate refers to the speed at which a company spends its available cash before it starts generating positive cash flow (profit). It’s basically a measure of how fast a startup is "burning through" its funds.

There are two main types of burn rate:

1. Gross Burn Rate – This is the total amount of money a business spends each month to cover operating expenses like salaries, rent, marketing, and product development.
2. Net Burn Rate – This is the actual monthly cash loss, meaning how much money the business is losing after factoring in any revenue. It’s calculated like this: 

Net Burn Rate=Monthly Expenses−Monthly Revenue

Setting up clear financial controls, like approving all major expenses, separating personal and business finances, and avoiding unnecessary debt, helps avoid reckless spending. Cash flow forecasting should be part of the regular business routine, helping founders anticipate shortfalls well before they become emergencies.

How to secure funding and make sure you don’t run out of money too soon
Securing funding is only part of the equation as managing that capital wisely is what keeps businesses afloat. Whether funding comes from personal savings, friends and family, angel investors, or VCs, startups need to manage their cash like it’s their last riyal!

Founders should also diversify revenue streams whenever possible, so the business isn’t overly dependent on a single customer or product line. Building an emergency fund—a few months’ worth of operating expenses—can make all the difference when unexpected costs hit or revenue growth slows.

For founders seeking external funding, the key is raising the right amount at the right time. Raising too little leaves the business vulnerable to cash flow crises. Raising too much, especially at inflated valuations, creates pressure to spend aggressively, often before the business model is fully validated.

In the end, cash flow is king in year one. Even the best ideas fail if they run out of money before they find their footing.

Wrapping things up..

At its core, startup survival depends on financial discipline. Founders who track their burn rate, control expenses, and plan for funding gaps give their businesses a real chance at making it past year one. Those who ignore these basics? They risk becoming another statistic in the long list of startups that ran out of money before finding success.

But cash alone won’t save a failing business. Even startups with healthy funding collapse if their business model is weak or unsustainable.

In our next episode, we’ll dive into another key reason startups don’t survive year one, so stay tuned!

Kholoud Hussein 

Artificial Intelligence (AI) is rapidly transforming global economies, and Saudi Arabia is no exception. As part of its Vision 2030 initiative, the Kingdom aims to diversify its economy and reduce dependence on oil revenues by embracing advanced technologies like AI. This article delves into the estimated economic impacts of AI in Saudi Arabia, supported by recent data, reports, and insights from officials and business leaders.

The Strategic Importance of AI in Saudi Arabia

Saudi Arabia's commitment to AI is evident through substantial investments and strategic initiatives. The Saudi Data and Artificial Intelligence Authority (SDAIA), established in 2019, leads the nation's AI agenda, aiming to position the Kingdom among the top AI adopters globally. The National Strategy for Data and AI (NSDAI) outlines ambitious goals, including training 20,000 AI and data specialists and attracting $20 billion in AI investments by 2030.

Abdullah bin Sharaf Alghamdi, President of SDAIA, emphasizes the transformative potential of AI: "Artificial Intelligence is at the core of our vision to diversify the economy and enhance the quality of life for our citizens. By harnessing AI, we aim to create new industries, job opportunities, and elevate Saudi Arabia's position on the global stage."

Projected Economic Contributions of AI

Several studies have projected the substantial economic contributions of AI to Saudi Arabia's GDP:

• PwC Report: AI is expected to contribute over $135.2 billion to Saudi Arabia's economy by 2030, accounting for 12.4% of the GDP. 
• Atlantic Council: The AI sector is projected to contribute $235.2 billion to the national GDP by 2030, reinforcing its pivotal role in economic diversification. 
• Oliver Wyman Analysis: Generative AI could add between SAR 60 billion to SAR 90 billion to the GDP by 2030, highlighting the technology's potential in various sectors. 

These projections underscore AI's significance in shaping the Kingdom's economic future.

Sector-Specific Impacts

AI's influence extends across multiple sectors in Saudi Arabia:

Oil and Gas

Saudi Aramco, the world's largest oil company, has integrated AI to enhance exploration and production. The adoption of DeepSeek's AI technology has significantly improved operational efficiency. Amin Nasser, CEO of Saudi Aramco, remarked: "DeepSeek's AI solutions have made a big difference in our operations, optimizing resource management and maximizing the value of our existing infrastructure." 

Healthcare

AI is revolutionizing healthcare through improved diagnostics, personalized treatment plans, and efficient patient management systems. The integration of AI tools is expected to enhance patient outcomes and reduce healthcare costs.

Education

AI-powered educational platforms offer personalized learning experiences, catering to individual student needs and promoting better educational outcomes. These technologies support educators in curriculum development and student assessment.

Retail and E-commerce

The retail and e-commerce landscape in Saudi Arabia is undergoing a significant transformation, propelled by the integration of Artificial Intelligence (AI). This technological advancement is not only enhancing operational efficiencies but also redefining customer experiences.

As of 2023, the AI in retail and e-commerce market in Saudi Arabia was valued at approximately USD 245 million and is projected to grow at a compound annual growth rate (CAGR) of 35.4% through 2029. 

This rapid growth underscores the increasing adoption of AI technologies by retailers and e-commerce platforms aiming to streamline operations and offer personalized customer experiences.

AI-driven algorithms analyze consumer behavior, preferences, and purchase histories to provide tailored recommendations. E-commerce platforms like Noon and Jarir are leveraging AI to create more engaging and personalized shopping experiences, leading to increased conversion rates and customer satisfaction. 

Beyond personalization, AI is enhancing operational efficiency in the retail sector. Retailers are investing in AI-enabled real-time inventory management and automation to meet evolving consumer demands. This approach not only reduces operational costs but also ensures that retailers can respond swiftly to market changes. 

Saudi retailers are leading the way in adopting and deploying AI across their operations, investing in research and development, developing tailored solutions, and prioritizing the attraction, retention, and empowerment of skilled talent. 

The Saudi government is actively fostering AI research and development, providing financial support for local businesses, and creating a conducive environment for AI-driven retail innovations. This aligns with the broader Vision 2030 initiative to diversify the economy and promote technological advancement.

Finance

The financial sector in Saudi Arabia is experiencing a paradigm shift with the integration of Artificial Intelligence (AI), leading to more efficient operations, enhanced customer experiences, and improved risk management.

Saudi Arabia leads in AI adoption within the financial services sector. A global survey by Finastra revealed that 91% of financial institutions in the Kingdom have integrated AI into their operations, closely followed by the UAE. 

This widespread adoption is expected to contribute significantly to the economy, with AI projected to add between SAR 60 billion to SAR 90 billion to Saudi Arabia's GDP by 2030. 

AI is transforming risk management and compliance in the financial sector. Banks are rapidly integrating AI for predictive analytics, automated compliance, and fraud detection. This integration enables real-time, data-driven insights, transforming how banks assess risk, manage assets, and engage with customers. 

AI-powered platforms are enhancing customer experience by offering personalized financial products and services. For instance, AI-driven chatbots provide instant customer support, while machine learning algorithms analyze customer data to offer tailored financial advice, thereby increasing customer satisfaction and loyalty.

The integration of AI in financial operations has led to increased efficiency by automating routine tasks, reducing human errors, and enabling employees to focus on more strategic activities. This automation not only reduces operational costs but also accelerates transaction processes, benefiting both the institutions and their customers.

Saudi Arabia's strategic investments in AI, including the Public Investment Fund's (PIF) plans to create a $40 billion fund for investing in AI, position the Kingdom as a potential AI hub outside the US. This aligns with the broader goal of diversifying the economy and reducing dependence on oil revenues. 

In this return, the Saudi government has implemented several initiatives to foster AI development:

• National Strategy for Data and AI (NSDAI): A comprehensive plan to transform the Kingdom into a leader in AI by investing in infrastructure, education, and regulatory frameworks.
• Global AI Summit: Hosted annually to bring together global AI experts, fostering collaboration and showcasing Saudi Arabia's commitment to AI advancement.
• Regulatory Sandboxes: Established to allow companies to test AI innovations in a controlled environment, promoting innovation while ensuring compliance with ethical standards.

Challenges and Considerations

Despite the promising outlook, several challenges must be addressed:

• Talent Development: There is a need to cultivate a skilled workforce capable of developing and managing AI technologies.
• Ethical and Legal Frameworks: Establishing guidelines to ensure AI is used responsibly and does not infringe on individual rights is crucial.
• Infrastructure: Developing the necessary digital infrastructure to support widespread AI adoption requires significant investment.
• Public Acceptance: Educating the public about AI's benefits and addressing concerns about job displacement and privacy is essential for smooth integration.

Conclusion

Artificial Intelligence holds transformative potential for Saudi Arabia's economy, aligning with the Vision 2030 objectives of diversification and modernization. With strategic investments, supportive policies, and a focus on education and infrastructure, AI is poised to contribute significantly to the Kingdom's GDP, enhance various sectors, and improve the quality of life for its citizens. Addressing the accompanying challenges will be crucial to realize AI's benefits and ensure sustainable economic growth fully.

Kholoud Hussein 

In the dynamic economic landscape of the Gulf Cooperation Council (GCC) and particularly the Kingdom of Saudi Arabia (KSA), financial technology (fintech) has emerged as a transformative force. By offering innovative solutions that streamline operations, enhance customer experiences, and democratize financial access, fintech is empowering startups to compete and thrive in competitive markets. This article explores the transformative impact of fintech on startups within the GCC and KSA, supported by recent data and insights from industry leaders.

The Rise of Fintech in the GCC and KSA: A Catalyst for Startup Growth

Fintech encompasses a broad spectrum of technological innovations aimed at enhancing and automating financial services. From digital payments and crowdfunding platforms to blockchain and artificial intelligence-driven analytics, fintech solutions are reshaping traditional financial paradigms. For startups in the GCC and KSA, these advancements translate into more accessible funding options, efficient financial management, and the ability to offer customers seamless digital experiences.

According to Marmore MENA Intelligence, the fintech market size in the GCC region rose to $169.92 billion in 2023, with a year-on-year growth rate of 27.8%. In Saudi Arabia, the number of fintech firms increased from 10 in 2018 to 224 by the end of Q2 2024, surpassing the Financial Sector Development Program's (FSDP) target of 168 companies for the same period. This exponential growth reflects the sector's dynamism and its critical role in modernizing financial services within the region.

Fintech Solutions Empowering Startups in the GCC and KSA

Fintech innovations offer startups in the GCC and KSA a suite of tools and services that address traditional financial challenges:

1. Alternative Financing Options

Traditional bank loans often entail stringent requirements and lengthy approval processes, posing significant hurdles for startups. Fintech platforms have democratized access to capital through crowdfunding, peer-to-peer lending, and revenue-based financing models. These alternatives provide startups with more flexible and accessible funding options, enabling them to secure necessary capital without the constraints of traditional financial institutions.

2. Enhanced Payment Solutions

Efficient payment processing is vital for startups aiming to deliver seamless customer experiences. Fintech innovations in digital wallets, mobile payments, and real-time transaction processing have enabled startups to offer secure and convenient payment options, thereby enhancing customer satisfaction and loyalty.

3. Streamlined Financial Management

Managing finances effectively is crucial for startup sustainability. Fintech solutions that automate accounting, invoicing, and expense tracking allow startups to maintain accurate financial records with minimal manual intervention. This automation not only reduces operational costs but also minimizes the risk of human error.

4. Data-Driven Decision Making

Access to real-time financial analytics empowers startups to make informed decisions. Fintech platforms equipped with artificial intelligence and machine learning capabilities analyze financial data to provide actionable insights, helping startups optimize operations, identify growth opportunities, and mitigate risks.

Case Studies: Fintech Empowering Startups in the GCC and KSA

STC Pay: Revolutionizing Digital Payments in Saudi Arabia

STC Pay, a subsidiary of Saudi Telecom Company, has emerged as a leading digital wallet service in Saudi Arabia. Launched in 2018, STC Pay offers a range of services, including peer-to-peer transfers, bill payments, and online purchases. By 2024, the platform had amassed over 7 million users, reflecting the growing demand for digital payment solutions in the Kingdom. STC Pay's success underscores the potential of fintech in transforming traditional financial services and promoting financial inclusion.

Nasser Al Nasser, former CEO of STC Group, highlighted the company's vision: "Our goal is to drive digital transformation in the financial sector, aligning with Vision 2030's objectives to create a cashless society and enhance financial inclusion."

Tabby: Innovating Buy Now, Pay Later Solutions in the UAE and Saudi Arabia

Tabby, a fintech startup operating in the UAE and Saudi Arabia, offers buy now, pay later (BNPL) services, allowing consumers to make purchases and pay for them in installments without interest. Since its launch in 2019, Tabby has partnered with over 2,000 merchants and has seen significant user adoption. The company's innovative approach addresses the evolving consumer preferences for flexible payment options, thereby supporting retail startups in boosting sales and customer retention.

Hosam Arab, CEO and co-founder of Tabby, emphasized the impact of their services: "By providing consumers with flexible payment options, we're not only enhancing their shopping experience but also enabling retailers to grow their businesses by reaching a broader customer base."

Fintech's Role in Financial Inclusion in the GCC and KSA

Beyond enhancing operational efficiency, fintech plays a pivotal role in promoting financial inclusion within the GCC and KSA. Innovative lending practices by fintech startups are providing underserved communities with access to capital, thereby supporting small businesses and fostering economic growth.

For instance, digital payment solutions have significantly reduced the reliance on cash transactions in Saudi Arabia. The country achieved 70% non-cash transaction rate two years ahead of the 2025 target, underscoring the effectiveness of initiatives like FinTech Saudi in driving economic growth.

Such initiatives demonstrate fintech's potential to bridge financial gaps and empower entrepreneurs in regions with limited traditional banking services.

Industry Perspectives

Industry leaders recognize fintech's transformative impact on startups and the broader financial ecosystem within the GCC and KSA. Philip Bahoshy, CEO of MAGNiTT, observed: "What we have seen as a key trend in the fintech ecosystem is that many companies in Saudi Arabia are looking to integrate fintech solutions into their proposition to capture more users and have better user retention rates." 

This perspective underscores the collaborative potential between fintech innovators and established financial institutions to create a more inclusive, efficient, and technology-driven financial ecosystem. By integrating fintech solutions into traditional banking frameworks, financial institutions can enhance customer experiences, improve operational efficiency, and expand access to financial services for underserved markets. This synergy is particularly crucial in regions like the GCC and Saudi Arabia, where digital transformation is a key pillar of economic diversification under Vision 2030. As fintech startups continue to push the boundaries of innovation, partnerships with established banks and regulators will play a pivotal role in shaping the future of financial services, ensuring sustainable growth and regulatory compliance.

To conclude, the fintech revolution in the GCC and Saudi Arabia is crucial in empowering startups with smart financial solutions. By streamlining payments, enhancing access to capital, automating financial management, and fostering financial inclusion, fintech has become a fundamental pillar of startup success. The rapid adoption of digital payment platforms, alternative lending models, and AI-driven analytics is reshaping the business landscape, ensuring that startups can scale efficiently, reduce costs, and improve customer experiences.

In the next episode of "Building Blocks of Startup Success: The Industries Powering Innovation," we will explore "The Impact of Legal and Compliance Services on Startups"—delving into the regulatory challenges startups face, the importance of legal frameworks in securing funding, and how compliance can be a competitive advantage in today's evolving business world. Stay tuned!

Mohammed Ramzy

As Egypt’s fintech sector undergoes rapid transformation, several companies are racing to establish themselves as key players in this evolving landscape. Among them is XPay, a prominent fintech company making significant strides in digital payments and financial technology.

Industry forecasts indicate that Egypt’s fintech market is expected to grow at a compound annual rate of 37% until 2029. Against this backdrop, XPay, founded in 2018 by Mohamed Abelmottaleb, focuses on developing digital transformation solutions with a strong emphasis on financial inclusion. Its suite of services covers credit and debit card payment processing, transactions via Meeza cards, smart wallet payments, mobile payments, QR code payments, and Buy Now, Pay Later (BNPL) services.

In an exclusive interview with Sharikat Mubasher, Mohamed Abelmottaleb, Founder and Managing Partner of XPay, shared the company’s expansion plans, growth ambitions for 2025, and his vision for fostering innovation in Egypt’s fintech space.

How has XPay managed to compete in Egypt’s fintech scene?

XPay is a leading fintech company that started in 2018, right at the onset of the digital transformation era in Egypt, alongside industry giants like Fawry. I firmly believe that technology could reshape Egypt’s financial landscape. With this conviction, we launched XPay to provide payment services for businesses, vendors, and individuals through our own unique approach. We believe that financial technology is a fundamental right for every individual, regardless of their needs or background.

When did XPay officially launch operations?

The first phase focused on market research and analysis, followed by testing different financial service models to determine the best fit based on our extended 20-year expertise in the field. In 2021, XPay obtained its first license from the Central Bank of Egypt and officially began offering services to individuals and businesses. Today, XPay is considered one of the most prominent fintech companies in Egypt.

What has XPay achieved so far?

XPay has achieved significant success in Egypt’s digital payments sector, recording a 75% increase in the number of merchants by the end of 2024. This led to a 250% growth in total payment volume and a 340% rise in processed transactions, with a success rate of 83%.

What are your targets for 2025?

In 2025, we are aiming to process EGP 1 billion in digital payments, while maintaining what we call “cautious growth” carefully expanding our merchant and client base in a controlled and sustainable manner.

What do you mean by "cautious growth"?

This has been a core principle at XPay since Day One. It means every step of our expansion is thoroughly studied and carefully executed, minimizing risks for both the company and the market, especially given the sensitive nature of the sector we’re operating within.

What are XPay’s funding plans? Are you seeking new investment?

The company still relies primarily on investment from existing partners, but we plan to launch a new funding round next year to support our ambitious growth and expansion goals.

Are there any upcoming partnerships? What’s their purpose?

We are planning several partnerships with various entities this year to enhance the integration of our digital solutions and boost financial inclusion in Egypt. Currently, about 30% of Egyptians remain outside the formal financial system according to recent statistics, which is a significant gap given the population size. We need to develop more innovative services and solutions, and the best way to do this is by forming strategic partnerships with key players.

How do you see the future of fintech in Egypt?

Egypt is steadily moving toward becoming a cashless society — that’s inevitable. To achieve this, Egypt will need massive investments in digital infrastructure over the coming years. Alongside that, continuous development of technology platforms and systems will be essential. This creates a huge demand for new startups focused on innovation and advanced technology, particularly in AI-powered financial solutions. With the sector expected to grow by 37% annually until 2029, the future looks bright for fintech in Egypt.

Are there plans to expand to other markets?

Egypt remains our primary focus, and we are concentrating on expanding our services domestically. However, we definitely have plans to expand into regional markets, with Saudi Arabia being a top priority. We see tremendous potential in Saudi Arabia’s fintech landscape, and it fits well with our regional growth strategy.

Translated by: Ghada Ismail