Empowering the Future: The Rise of Saudi Arabia's Freelance Economy and Its Alignment with Vision 2030

Apr 29, 2025

Kholoud Hussein 

 

In recent years, Saudi Arabia has witnessed a significant transformation in its labor market, marked by the rapid growth of the freelance economy. This shift aligns seamlessly with the Kingdom's Vision 2030, aiming to diversify the economy, empower individuals, and foster innovation. As of September 2024, over 2.25 million individuals have registered on the national freelance platform, reflecting the increasing demand for flexible work options and the government's commitment to modernizing the workforce. 

 

The Current Landscape of Freelancing in Saudi Arabia

 

Demographics and Sectoral Distribution

The freelance sector in Saudi Arabia is diverse and dynamic. Trade and retail dominate with 38% of freelancers, followed by industry (13%) and business services (11%). Educationally, 62% of freelancers hold bachelor's degrees, 31% have high school qualifications or less, and 7% possess higher degrees. Geographically, Riyadh leads with 27% of freelancers, followed by Makkah (22%) and the Eastern Region (14%). The 25-34 age group is the most active, indicating a strong youth presence in the freelance market. 

 

Economic Contribution 

The freelance economy’s impact on Saudi Arabia’s GDP is already notable, contributing SAR 72.5 billion (approximately $19.3 billion) in 2023, which equates to around 2% of the Kingdom's total GDP. This contribution is expected to increase substantially as freelance work becomes more formalized and integrated into the national labor strategy. According to a report by the Saudi Ministry of Human Resources and Social Development, the number of freelance licenses issued is growing at an annual rate of 22%, indicating a strong upward trajectory.

 

Experts forecast that by 2030, freelancers could contribute up to 5% of Saudi Arabia's GDP if current trends continue, particularly as new sectors such as digital marketing, software development, AI services, and content creation continue to flourish. Furthermore, the flexibility inherent in freelance work supports other critical areas of Vision 2030 — notably by reducing unemployment, especially among youth and women, and fostering innovation across industries.

 

From a socio-economic perspective, the freelance model also plays a role in regional development. With more freelancers able to work remotely from secondary cities like Al Khobar, Abha, and Tabuk, economic activities are becoming less concentrated in Riyadh and Jeddah, promoting more balanced national development.

 

Startups and Digital Platforms Supporting Freelancers 

Saudi startups and digital platforms are emerging as critical enablers of the freelance economy, and their role will only intensify in the coming years.

 

Platforms like Marn and Ureed are not merely matching freelancers with projects — they are building ecosystems. Marn recently announced a plan to integrate AI-driven skill assessment tools, helping freelancers validate and showcase their competencies, thereby increasing trust between freelancers and hiring businesses. Ureed, similarly, has expanded its platform capabilities to offer managed services where teams of freelancers can collaborate on complex projects, providing end-to-end solutions for SMEs and large enterprises.

 

In addition, new SaaS (Software-as-a-Service) startups in Saudi Arabia are developing tools specifically for freelancers, including smart invoicing apps, legal contract templates, and tax management services, in anticipation of more formal freelance taxation systems in the Kingdom. Startups like Freelance Yard and Shift are already piloting freelance marketplaces that include embedded banking services, allowing users to manage payments, savings, and even retirement plans directly through their platforms.

 

Looking ahead, startups are expected to play an even bigger role by:

  • Expanding access to international markets: Saudi freelancers could soon tap into global freelance opportunities via local platforms offering cross-border payments and multilingual interfaces.
  • Specialization of platforms: Future freelance platforms may be sector-specific (e.g., legal freelancing, healthcare consulting, tech development), catering to niche professional segments with tailored tools.
  • Building communities and upskilling hubs: Startups will likely invest in building online communities offering networking events, professional development workshops, and certifications that enhance freelancers’ career growth.
  • Integrating AI and Blockchain: AI will optimize matching algorithms, while blockchain could be used to create secure, transparent work contracts and payment records, ensuring better protection for freelancers.

According to a study by PwC Middle East, nearly 68% of Saudi startups are looking to integrate freelance-based services into their operational models by 2026 — highlighting that the freelance economy will not just be an employment channel, but a core business model.

 

Government Initiatives and Vision 2030 Alignment

 

The Saudi government has implemented several initiatives to bolster the freelance economy:

  • Future Work Company: Established in 2019 by the Ministry of Human Resources and Social Development to promote modern work styles, including freelancing. 
  • Freelance License Program: Simplifies the process for individuals to obtain official freelance licenses, granting them access to government services and financial products.
  • Support Programs: Initiatives like the Reef program, the Social Development Bank, and the Human Resources Development Fund provide financial and training support to freelancers. 

These efforts are integral to Vision 2030's objectives of increasing employment, especially among youth and women, and fostering a diversified, knowledge-based economy.

 

Challenges and Opportunities

 

Challenges

Despite the growth, the freelance sector faces several challenges:

  • Legal Framework: The need for standardized contracts and dispute resolution mechanisms to protect freelancers and clients.
  • Social Protection: Limited access to health insurance, retirement plans, and other benefits typically associated with traditional employment.
  • Skill Development: Continuous upskilling is necessary to meet the evolving demands of the global market.

Opportunities

The freelance economy presents numerous opportunities:

  • Women's Participation: With 3.2 million women expressing interest in freelancing, there's potential for increased female workforce participation. 
  • Youth Engagement: The dominance of the 25-34 age group indicates a trend towards embracing flexible work models among the youth. 
  • Technological Integration: Leveraging digital platforms can enhance efficiency and expand market reach for freelancers.

The Freelance Economy in Saudi Arabia Toward 2030 and Beyond

 

As Saudi Arabia continues its march toward achieving the ambitious targets of Vision 2030, the freelance economy is expected to shift from being a complementary part of the labor market to a central pillar of economic growth and innovation.

 

Experts project that by 2030, freelancers could account for as much as 10% of the active workforce in Saudi Arabia if current reforms and technological trends continue. According to a Deloitte Middle East forecast, flexible work arrangements, including freelance and remote work, will dominate nearly 35% of total employment contracts in the private sector by the end of the decade.

 

Several factors will fuel this future growth:

  • Continuous Regulatory Enhancements: The Saudi government is expected to introduce more robust legal protections for freelancers, including standardized digital contracts, enhanced social insurance schemes, and retirement plans tailored to independent workers.
  • Educational Institutions Embracing Freelancing: Universities and vocational training centers are increasingly incorporating freelance skills — such as project management, digital marketing, coding, and creative writing — into their curriculums to prepare students for the freelance economy.
  • Cross-Sector Expansion: Freelancing will no longer be confined to technology or creative sectors. Growth is anticipated in healthcare consultancy, legal services, educational tutoring, environmental consulting, and even industrial design.
  • Integration with Mega Projects: Saudi Arabia’s "giga projects" such as NEOM, The Red Sea Project, and Qiddiya will provide extensive opportunities for freelancers in areas like tech development, media production, architecture, environmental research, and tourism management.

Startups will remain vital players in facilitating this growth:

  • They will build decentralized talent platforms connecting freelancers directly to global projects.
  • They will integrate AI-driven skill certifications and instant payment systems to make freelancing more seamless and attractive.
  • They will develop freelance-focused co-working hubs in major cities, blending digital and physical support spaces for independent workers.

Saudi officials are optimistic about the trajectory. In a recent statement, Ahmed Al-Rajhi, Minister of Human Resources and Social Development, said: "Freelancers are the future of a vibrant and diversified Saudi economy. We aim to empower them through smart policies, advanced platforms, and global integration."

 

Similarly, business owners in the freelance ecosystem, like Fahad Al-Dossary, founder of a Riyadh-based tech consultancy, affirm: "The freelance revolution has democratized opportunity. Today, Saudi talent can compete and collaborate globally without leaving their homes."

 

As Saudi Arabia embraces digitalization, entrepreneurship, and labor market flexibility, the freelance economy is no longer a secondary trend — it is becoming a strategic engine for growth, innovation, and national pride.

 

To conclude, the freelance economy in Saudi Arabia is rapidly evolving, contributing significantly to the nation's GDP and aligning with the strategic goals of Vision 2030. With continued support from the government, startups, and digital platforms, the sector is poised for sustained growth, offering flexible employment opportunities and fostering economic diversification.

 

 

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Mutual funds: the all-in-one investment that simplifies growing your wealth

Noha Gad

 

Investment funds provide a straightforward path for people to grow their savings without needing to pick individual assets. Options range from individual stocks and bonds to simpler pooled investments that spread out risk. Common types include mutual funds, exchange-traded funds (ETFs), and hedge funds; each of them has its unique features for different risk levels and timelines. 

Mutual funds stand out as one of the most popular choices for everyday investors as they gather money from many people to buy a mix of stocks, bonds, or other assets. A professional manager handles the decisions, making it easier for those without time or expertise to invest wisely. These funds suit beginners and experts alike, offering liquidity and professional oversight to navigate markets.

 

What are mutual funds?

A mutual fund is a financial vehicle in which shareholders put their money together to invest in securities, such as stocks, bonds, and money market instruments. A fund manager chooses the best investments, and every investor shares in the profits if the investments do well. For most individuals, mutual funds are the cornerstone of their retirement savings, offering professional management and built-in diversification that would be difficult to achieve on their own.

Investors pool their money to buy assets together, benefiting from shared costs and professional expertise. Rather than buying individual stocks or bonds, they can buy shares in the fund itself, becoming partial owners of all its holdings.

The fund’s managers are responsible for researching opportunities, selecting securities, and monitoring performance according to the fund’s stated objectives, whether that is aggressive growth, steady income, or matching a market index.

 

How do they work?

When investors buy shares in a mutual fund, they gain part-ownership of all of the fund’s underlying assets. The fund’s performance depends on its assets; if it is full of stocks going up, it will go up. If they’re going down, so will the fund. A mutual fund decides how to divide money across sectors, industries, and companies based on its strategy.

Additionally, mutual funds give everyday investors access to a diverse investment menu they likely could not build on their own. Investing in a single stock or bond can be risky, but a mutual fund reduces the risk by spreading investments across many securities.

 

Types of mutual funds 

There are four main categories of mutual funds:

  • Target-date funds. This type offers a straightforward retirement investing approach by automatically adjusting their mix of stocks, bonds, and other assets based on when you plan to retire. These funds start with aggressive growth strategies and gradually become more conservative as you approach retirement.
  • Stock funds. These funds invest primarily in equity or stocks with assorted subcategories. Some equity funds are named for the company size they invest in, like small, mid-sized, or large capitalization funds. Others are named by their investment approach: aggressive growth, income-oriented, and value. 
  • Bond funds. This type generates a consistent and minimum return as part of the fixed-income category. They focus on investments that pay a set rate of return, such as government bonds, corporate bonds, and other debt instruments. 
  • Money market funds: Money market mutual funds are often used as a temporary holding place for cash that will be used for future investments or an emergency fund.

 

Reasons to invest in mutual funds

Mutual funds offer key advantages that make them appealing for investors seeking growth without deep expertise. This includes:

  • Providing instant diversification by pooling money to invest across a wide range of securities, thereby reducing the risk from any single investment.
  • Offering high accessibility and liquidity by trading on major exchanges, often providing the only practical way for individuals to invest in complex or foreign assets.
  • Providing professional management, where experienced managers handle research, asset selection, and portfolio adjustments.
  • Ensuring transparency as they follow strict regulatory standards.

 

Finally, mutual funds serve as a powerful and democratizing tool in the investment world, expertly blending key advantages into a single, accessible package. By pooling resources, they deliver instant diversification, professional management, and robust transparency. They turn the complex symphony of stocks, bonds, and other assets into a harmonious investment suited for a wide range of goals, timelines, and risk tolerances, making them a cornerstone of modern financial planning.

 

Turning Trash into Treasure: Saudi Startups Revolutionize Waste and Recycling

Ghada Ismail

 

For decades, waste in Saudi Arabia followed a familiar and largely unquestioned trajectory: collect, discard, and move on. Landfills expanded quietly beyond city edges, recycling efforts remained limited and fragmented, and waste was viewed almost exclusively as an operational burden rather than a recoverable resource. This approach, however, is no longer viable, either environmentally, economically, or socially.

As the Kingdom accelerates its Vision 2030 agenda, waste is being reframed as part of a broader economic opportunity. From food scraps and plastics to construction debris and industrial byproducts, materials once destined for landfill are now being reconsidered as inputs for new value chains. This shift sits at the core of the circular economy, a model that emphasizes reuse, recycling, and resource efficiency over extraction and disposal.

Driving this transition is a growing wave of Saudi startups applying technology to modernize waste management and recycling. Working alongside national entities and government-backed initiatives, these companies are reshaping how waste is collected, sorted, processed, and reintegrated into the economy. What is emerging is not simply a cleaner system, but a sustainability-driven sector aligned with Saudi Arabia’s long-term development goals.

 

Why Recycling Matters in Saudi Arabia: Cultural and Ethical Context

Saudi Arabia’s increasing focus on recycling is shaped by more than policy frameworks and economic targets. It is also influenced by long-standing cultural and ethical principles that emphasize responsibility, balance, and responsible resource management.

Within the Kingdom’s social fabric, moderation in consumption and avoidance of excess have traditionally been valued. These ideas, which are reflected in both cultural norms and religious teachings, reinforce the notion that resources should be used thoughtfully rather than wasted. In this context, recycling and circular economy practices resonate as practical extensions of deeply embedded values rather than imported sustainability concepts.

By extending the lifecycle of materials, reducing unnecessary consumption, and minimizing environmental harm, circular practices align naturally with a broader sense of accountability toward future generations. This perspective helps explain why sustainability initiatives increasingly gain public acceptance in Saudi Arabia. Recycling is not framed solely as an environmental obligation, but as a logical, responsible approach to managing growth and development in a resource-constrained world.

 

Saudi Arabia’s Circular Economy Ambition

Saudi Arabia generates millions of tons of waste each year, much of which has historically been sent to landfills. Recognizing the environmental impact and missed economic potential of this model, the government has placed waste diversion and recycling at the center of its Vision 2030 and Saudi Green Initiative objectives.

The ambition is clear: reduce landfill dependency, build advanced recycling infrastructure, and convert waste streams into sources of economic value. This includes municipal solid waste, construction and demolition materials, food waste, plastics, metals, and electronic waste.

 

At the forefront of Saudi Arabia’s effort to modernize and professionalize waste management is the National Center for Waste Management — commonly known by its acronym MWAN. Established by a Council of Ministers’ decree, MWAN serves as the Kingdom’s central regulatory authority for waste management, charged with setting strategy, regulating activities, and advancing the principles of a circular economy across the sector.

MWAN is responsible for organizing and supervising all stages of the waste lifecycle — including import, export, collection, transport, sorting, processing, storage, and the safe disposal of waste — with environmental protection and public health as guiding priorities. To drive long‑term transformation, the center issues licenses and permits to service providers and facilities, ensuring that companies operate in compliance with national standards and best practices.

A key focus for MWAN is creating an enabling environment for private investment and innovation. The center actively encourages investment in waste management systems — from recycling plants to advanced processing technologies — as a route to financial sustainability and value creation within the circular economy. Through strategic planning, research support, and training programs, it also works to build technical capability and foster partnerships with universities, research institutions, and international stakeholders.

Central to MWAN’s work is the National Waste Management Strategy, a comprehensive roadmap aimed at dramatically reducing landfill dependency, maximizing material recovery, and integrating circular economy principles into national practice. Under this strategy, the center seeks to divert the vast majority of waste from landfills through recycling, composting, and other value‑retentive pathways.

 

In doing so, MWAN plays a pivotal role not only in regulating the sector but in setting the conditions for innovative startups, investors, and service providers to thrive within a structured, forward‑looking framework that aligns with Saudi Arabia’s environmental and economic objectives.

 

National Champions Driving Scale:

Saudi Investment Recycling Company (SIRC)

One of the most influential players in Saudi Arabia’s circular economy is the Saudi Investment Recycling Company (SIRC), a subsidiary of the Public Investment Fund. Established to lead the development of the Kingdom’s waste and recycling sector, SIRC operates across multiple waste streams through specialized subsidiaries.

Its activities span municipal waste, construction and demolition debris, industrial waste, metals, and hazardous materials. Beyond collection, SIRC’s mandate is to build an integrated recycling ecosystem capable of converting waste into reusable materials, energy, and industrial inputs.

Through investments in large-scale recycling plants, advanced sorting technologies, and waste-to-value infrastructure, SIRC provides the national backbone required for a functional circular economy. Just as importantly, it creates structured pathways for startups to integrate into larger value chains rather than operating in isolation.

 

Startups Turning Waste into Opportunity

While national entities deliver scale and infrastructure, Saudi startups bring innovation, speed, and technical specialization to specific waste challenges.

Lesser for Sustainability Solutions

Lesser for Sustainability Solutions represents a new generation of Saudi startups embedding circular economy principles into operational reality. The company develops sustainability-driven solutions that help organizations reduce waste, improve resource efficiency, and adopt smarter environmental practices.

By leveraging data and system-based approaches, Lesser focuses on transforming waste streams into measurable environmental and economic outcomes. Its work reflects a broader shift within the startup ecosystem, where sustainability is increasingly treated as a core business function supported by technology, rather than a peripheral branding exercise.

 

Tadweer Saudi: Tackling Food Waste

Food waste remains one of the most under-addressed challenges in Saudi Arabia’s waste landscape, despite its high environmental and economic cost. Tadweer Saudi is tackling this issue by focusing specifically on organic waste recycling.

The startup collects food waste from retailers, hospitality venues, and commercial outlets, converting it into organic compost and fertilizers. By closing the loop between consumption and agriculture, Tadweer demonstrates how biological waste can be reintegrated into productive cycles instead of decomposing in landfills.

 

Recyclee: Tech-Driven Waste Management

Recyclee represents one of Saudi Arabia’s emerging tech‑driven waste management startups. The company leverages digital tools — including data analytics, IoT, and platform‑based waste tracking — to help businesses simplify waste collection, enhance sorting processes, and gain real‑time visibility into waste streams. 

By applying technology to traditional waste workflows, Recyclee aims to modernize operations, reduce logistical complexity, and support greater efficiency across collection and recycling processes. As Saudi cities expand and waste volumes grow, data‑enabled platforms like Recyclee are part of a broader trend toward integrating technology into waste management to help scale circular economy initiatives.

 

Technology as the Enabler

Across Saudi Arabia’s recycling ecosystem, technology is emerging as the central enabler of scale and efficiency. Digital platforms, analytics, smart collection systems, and automation are helping shift waste management away from manual, fragmented operations toward integrated, data-informed systems.

Technology enables more accurate tracking of waste flows and recycling rates, improved sorting and material recovery, optimized collection routes, and greater transparency across the value chain. For startups, this lowers barriers to entry and accelerates scaling. For national entities, it provides the data needed to measure impact and guide policy.

 

Challenges Still Ahead

Despite meaningful progress, challenges remain. Recycling infrastructure is uneven across regions, public participation in waste sorting is still developing, and scaling capital-intensive facilities requires long-term investment and confidence.

Addressing these gaps will require sustained collaboration between government entities, private investors, startups, and the public. Education, incentives, and regulatory clarity will be just as critical as technology in shaping the sector’s next phase.

 

From Waste to Value

As Saudi Arabia accelerates its journey toward a waste economy, the convergence of policy, technology, and entrepreneurial innovation is redefining what waste means. No longer merely a byproduct to be discarded, waste is being transformed into a resource; a source of economic value, industrial input, and environmental benefit.

What begins with recycling bins and digital platforms has the potential to reshape supply chains, industrial production, and consumer behavior across the Kingdom. If technology, regulation, and societal values continue to align, Saudi Arabia has an opportunity not merely to manage waste more efficiently but to redefine waste itself, transforming it into a long-term engine of economic value, environmental responsibility, and sustainable growth.

How AI is transforming Saudi Arabia into a hospitality powerhouse

Noha Gad

 

The global hospitality industry is experiencing a profound transformation, driven by the robust advancement of artificial intelligence (AI). Globally, AI is transitioning from a novel innovation to an operational imperative, reshaping every step of the tourist’s journey, from initial booking and personalized marketing to in-stay experiences, predictive service, and backend logistics. This technological shift is not merely about automation or novelty; it is fundamentally about achieving unprecedented levels of efficiency, hyper-personalization, and scalable, consistent service quality in an increasingly competitive landscape.

A recent survey conducted by the professional services firm PwC revealed that the use of AI in the Middle East’s hospitality sector is accelerating, with 91% of industry leaders already using or piloting AI-related tools, yet only 3% of respondents have achieved full enterprise-wide implementation. Also, 85% of regional tourism and hospitality leaders reported moderate to significant cost savings and efficiency gains from AI implementation. The report stated that 68% of CEOs in GCC acknowledged improved efficiencies in their own time at work, compared to 53% globally, while 63% reported efficiencies in employees’ time, compared to 56% globally.

Amid this transformation, national strategies for tourism and economic diversification are increasingly intertwined with digital and technological infrastructure, most notably in Saudi Arabia. The Kingdom embarked on a historic and ambitious journey under Vision 2030, aiming to actively diversify its economy and establish itself as a leading global tourism destination, which is targeting 100 million visitors annually by 2030.

To achieve these monumental goals, Saudi Arabia recognizes that building world-class infrastructure alone is not sufficient. The scale, complexity, and global expectations of modern tourism demand intelligent, agile, and data-driven operational frameworks. Thereby, the Kingdom is strategically positioning AI as a critical enabler of its hospitality ambitions, aiming to streamline massive operations, optimize resource use, and craft uniquely personalized and seamless experiences for a diverse international clientele.

 

Why Saudi Arabia integrates AI into the hospitality industry

The Kingdom is strategically adopting AI in its hospitality sector to support its ambitious national goals and address specific challenges. Key reasons include:

  • Managing growth and mega projects. As Saudi Arabia builds new tourist destinations from scratch, such as NEOM, Diriyah, and the Red Sea Project, AI plays a pivotal role in managing complex operations, such as logistics, energy use, and thousands of guest requests, efficiently and without overwhelming human teams.
  • Delivering top-notch and personalized services. To offer exceptional and tailored experiences, the Kingdom leverages AI to analyze guest data to provide personalized recommendations, anticipate needs, and deliver consistent, high-quality service to visitors from around the world.
  • Optimizing resources and promoting sustainability. AI allows properties to meet ambitious Environmental, Social, and Governance (ESG) objectives without compromising guest comfort or profitability.

“Digital tourism will improve travel experiences in the Kingdom by seamlessly implementing tools such as AI and data analytics to better predict travel trends and adjust prices,” said Abdulrahman Al Bassam, Board Director of Baheej Tourism Development Company. In an exclusive interview with Sharikat Mubasher, Al Bassam emphasized that AI helps the company analyze social media platforms to spot new travel preferences and help optimize offerings accordingly. “For Baheej, this means we can utilize AI to offer more personalized services. By tailoring travel itineraries and providing customized recommendations, we can provide our guests with unique and enjoyable experiences.”

The next generation of hotel portfolio management systems leverages AI in hospitality to balance resource efficiency with world-class guest experiences. AI models absorb real-time data from building systems, IoT sensors, PMS, and BMS/BAS platforms, providing key advantages:

  • AI-powered hospitality management systems optimize heating, ventilation, and air conditioning (HVAC), lighting, and hot water, cutting unnecessary use while preserving comfort.
  • AI asset management software predicts and prevents equipment breakdowns for higher uptime.
  • Smart hotel management tools anticipate occupancy patterns and adapt services accordingly, improving productivity and reducing waste.
  • AI hotel automation platforms provide deep analytics for accurate sustainability reporting and forecasting.
  • AI-driven performance dashboards allow stakeholders to see emissions, costs, and operational trends across entire portfolios in real-time.

 

AI applications in the Saudi hospitality sector

AI is being integrated across the entire guest journey and behind-the-scenes operations in Saudi Arabia. For intelligent guest interaction and service, AI systems can handle routine communication and service tasks through chatbots, voice assistants, and service robots. A voice-controlled assistant can help guests request services, while a delivery robot brings amenities to the room, freeing staff for more complex guest needs. AI algorithms also analyze vast amounts of data, including local events, airline traffic, and competitor pricing, to enhance revenue management, optimize room rates, and target marketing campaigns. Additionally, AI-powered video analytics and monitoring systems can enhance safety, security, and crowd management

The most notable example of leveraging AI to enhance travelers' experience and manage crowds is Hajj 2025, when the Kingdom welcomed over 1.6 million male and female pilgrims, as stated by official figures from the General Authority for Statistics (GASTAT). In the Hajj 2025 season, authorities in Saudi Arabia utilized cutting-edge AI tools to streamline everything from spiritual guidance to crowd movement. Among these tools were the Smart Enrichment Assistant and the Digital Mutawwif.

Developed by the Agency for Religious Affairs at the Prophet’s Mosque, the Smart Enrichment Assistant provides real-time updates on prayer times, imam schedules, and locations of religious activities in numerous languages. It aims to reduce logistical stress while deepening spiritual engagement for pilgrims. Meanwhile, the Digital Mutawwif is designed to serve as a digital companion for Umrah pilgrims, which includes navigation tools for tawaf and sa’i, a library of audio-visual supplications, and built-in ritual counters to help pilgrims stay focused and on track.

Baseer is one of the sophisticated AI platforms developed to address the enormous logistical demands of Hajj. Using computer vision and machine learning (ML), Baseer tracks and analyzes the movements of over one million worshippers a day inside the Grand Mosque, helping authorities predict crowd surges and prevent dangerous bottlenecks. 

The Kingdom also introduced Manarah 2, a multilingual robot equipped with a smart touchscreen. It provides real-time information and guidance to pilgrims in several languages, along with a dedicated application to help non-Arabic speakers recite Qur’an verses correctly. Saudi Arabia’s strategic investment in AI set global standards for how digital transformation can serve humans better amid the extreme heat, massive crowds, and time-sensitive rituals.

The future ahead

The integration of AI in the hospitality industry paves the way for emerging trends that are expected to redefine the sector. This includes the use of generative AI to craft unique and on-demand experiences, and the use of the Metaverse to enable visitors to take immersive virtual tours of hotels and destinations via the metaverse. Saudi hotel operators can also leverage digital twins, virtual AI-powered replicas of their physical properties, to simulate everything from crowd flow during an event to the impact of any planned changes. 

Saudi Arabia steadily moves toward utilizing AI to deepen cultural connections. AI-powered augmented reality (AR) guides at historical sites like Diriyah or AlUla can overlay historical visuals and narratives in the guest's native language. 

Finally, the strategic adoption of AI is more than a technological upgrade for Saudi Arabia’s hospitality sector; it is a fundamental pillar for realizing Vision 2030’s ambitious tourism goals. By leveraging AI, the Kingdom is intelligently addressing the dual challenge of scaling unprecedented development while delivering the world-class, personalized service that modern travelers demand.

From optimizing massive operations and ensuring sustainability to crafting unique guest journeys, AI provides the necessary tools to build a sector that is both efficient and exceptionally welcoming. Saudi Arabia’s success will hinge on its ability to harmonize this cutting-edge technology with its rich, human-centric hospitality.

Strategic Pricing by Philip Kotler: A Startup Guide to Pricing That Actually Works

Ghada Ismail

 

Pricing is one of the most underestimated decisions in a startup’s journey. Founders often focus on product, growth, and fundraising, while pricing becomes a rushed decision or a copy of what competitors are charging. Philip Kotler, the father of modern marketing, challenges this thinking by positioning pricing as a strategic lever that shapes perception, profitability, and long-term survival.

For startups with limited runways, poor pricing rarely fails dramatically. Instead, it slowly erodes momentum through weak margins, confused positioning, and undervalued products.

 

How Kotler Defines Strategic Pricing

Kotler describes pricing as the only part of the marketing mix that generates revenue, while everything else creates cost. Strategic pricing aligns price with customer value, business objectives, competitive context, and brand positioning, not just internal costs.

For startups, pricing should reflect future direction, not just current expenses. Pricing purely to “gain users” without a profitability path is not a strategy; it is a delayed risk.

 

Value-Based Pricing Over Cost Thinking

A core Kotler principle is value-based pricing. Startups should price based on the value they deliver, not what it costs to build the product.

Early-stage founders often underprice out of fear or comparison. But customers don’t buy features; they buy outcomes. A SaaS product that saves teams hours each week is selling efficiency and peace of mind, not code. This is why many successful startups raise prices once they clearly understand their real value.

 

Pricing as Positioning

Price is one of the strongest brand signals. It shapes expectations before customers ever experience the product.

For startups, misaligned pricing damages credibility. A fintech claiming enterprise-grade security while charging bargain prices creates doubt, while premium pricing without a strong experience erodes trust. Strategic pricing ensures consistency between promise, experience, and perception.

 

Competing Without Racing to the Bottom

Kotler strongly warns against price wars, especially in crowded markets. Undercutting competitors may drive short-term adoption but often leads to unsustainable margins.

Instead, startups should differentiate through pricing structure rather than price itself. Tiered plans, freemium access, and usage-based models allow startups to serve diverse customers while preserving value. Competing on price alone is rarely strategic and rarely sustainable.

 

The Psychology of Pricing

Customers evaluate price emotionally as much as rationally, comparing it to expectations and perceived fairness.

Sudden price increases without clear justification damage trust. Strategic pricing relies on transparency, timing, and clear value communication. This is especially critical for subscription-based startups, where long-term trust drives retention.

 

Pricing as a Learning System

Kotler views pricing as dynamic, not fixed. Startups should test and refine pricing as they learn more about demand and willingness to pay.

However, constant or reactive changes create confusion. Strategic pricing balances experimentation with consistency, treating pricing as a structured learning process rather than guesswork.

 

Mistakes Kotler Warns Startups About

Kotler cautions against pricing purely for growth, ignoring customer value perception, reacting emotionally to competitors, and separating pricing from overall strategy.

One of the most dangerous assumptions is that lower prices automatically drive adoption. In many cases, weak pricing reflects weak positioning, not weak demand.

 

Applying Kotler’s Thinking

Kotler’s framework pushes startups to start with customer value, define clear pricing objectives, understand competitive boundaries, and evolve pricing as the business matures.

Strategic pricing is not about finding a perfect number. It is about building a pricing system that supports growth, credibility, and long-term sustainability.

 

Wrapping Things Up…

Philip Kotler’s approach turns pricing from a survival tactic into a competitive advantage. For startups, getting pricing right early protects margins, strengthens positioning, and enables healthier growth. In markets where products are easy to copy, pricing strategy often becomes the true differentiator.

From macro to activist: how hedge funds target absolute returns

Noha Gad

 

Investment funds serve as collective vehicles that pool capital from multiple investors to pursue shared financial objectives, ranging from conservative bond portfolios to aggressive equity strategies. These funds democratize access to professional asset management, diversification, and economies of scale, allowing individuals and institutions to allocate resources efficiently across global markets. Within this dynamic landscape, hedge funds emerged as a distinctive category, designed for sophisticated, accredited investors who seek superior risk-adjusted returns through innovative and often unrestricted approaches.

 

What are hedge funds?

A hedge fund is an actively managed private investment fund that pools capital and is managed by professional fund managers. These managers employ various advanced strategies that transcend traditional buy-and-hold investing. They leverage tools like short selling, derivatives, arbitrage, and substantial borrowing to hedge against market downturns while amplifying upside potential, aiming to deliver positive returns regardless of broader economic conditions.

Flexibility is what distinguishes hedge funds. They enable investors to navigate volatility, capitalize on inefficiencies, and generate alpha through quantitative models, event-driven plays, or global macro bets.

Structured as limited partnerships with high minimum investments, performance-based fees, and lock-up periods, hedge funds prioritize absolute performance over relative benchmarks, appealing to high-net-worth individuals, endowments, and pension funds willing to accept elevated risks for potentially outsized rewards.   

These funds pool money that is managed to outperform average market returns. The fund manager often hedges the fund’s positions to protect them from market risk. 

 

Types of hedge funds:

The four common types of hedge funds are:

  • Global macro hedge funds. This type is an actively managed investment vehicle that aims to profit from large market moves driven by political or economic events. Managers take long or short positions across assets, such as currencies, futures, bonds, commodities, and index products, assembling a mix of assets to maximize returns under expected conditions. Access is often limited by high investment minimums and fees.
  • Equity hedge funds. This type might be global or specific to one country, investing in lucrative stocks while hedging against downturns in equity markets by shorting overvalued stocks or stock indices.
  • Relative value hedge funds. These funds actively manage investments to exploit temporary price differences in related securities. A common strategy when managing relative value funds consists of initiating a long and short position for a pair of assets that are highly correlated. Relative value funds may generate risk-free profits through the process of buying and selling two different securities at the same time.
  • Activist hedge funds. These funds aim to invest in businesses and take actions that boost the stock price, such as demanding that companies cut costs, restructure assets, or change the board of directors.

 

Why do investors choose to invest in hedge funds?

Investors choose hedge funds for their ability to achieve stronger investment performance relative to the risks taken, especially in uncertain or non-trending markets where traditional options may struggle. By using advanced, flexible strategies not available to standard mutual funds, they appeal to institutions, endowments, and wealthy individuals seeking returns that exceed the market average. Hedge funds offer a wide range of benefits, including:

  • Higher returns. Hedge funds aim for absolute returns, targeting positive performance regardless of market direction through techniques such as leverage, short selling, and derivatives. This enables investors to capitalize on both rising and falling markets, often outperforming benchmarks during downturns when long-only funds suffer.
  • Diversification. Unlike conventional portfolios dominated by equities and bonds, hedge funds span asset classes including commodities, currencies, private assets, and arbitrage opportunities, reducing correlation to public markets. 
  • Risk control. Professional managers employ advanced risk tools, such as hedging, dynamic allocation, and quantitative models, to protect capital while pursuing opportunities. Specialized teams focus on metrics, such as Value at Risk, appealing to investors seeking skilled navigation of complex global trends.
  • Access to unique strategies. Investors gain entry to event-driven, macro, or quantitative plays unavailable elsewhere, enhancing portfolio efficiency.

 

In summary, hedge funds represent a specialized segment within the broader investment fund landscape, designed for sophisticated investors seeking performance that is independent of market trends. By employing flexible, advanced strategies, these funds aim to deliver strong risk-adjusted returns, diversify portfolios, and provide access to unique opportunities beyond traditional markets.