Noha Gad

Each year, millions of Muslims from around the world converge on Saudi Arabia for the Hajj, supported by a meticulously orchestrated logistics, housing, and transportation operation. This annual event has evolved far beyond its spiritual roots into one of the world’s most remarkable seasonal economic phenomena. For the Kingdom, Hajj is more than a religious obligation; it is a national priority, tightly tied to Vision 2030, the country’s long-term roadmap for economic transformation. Yet managing this massive influx within a confined geography and time window presents relentless challenges: infrastructure strain, crowd management, pricing regulation, and environmental sustainability. As Saudi Arabia opens its doors to increasing numbers of visitors, the Hajj economy stands as both a model of large-scale event logistics and a high-stakes test of the Kingdom’s economic transformation.

In Hajj 2026, the Kingdom welcomed over 1.7 million pilgrims from 165 nationalities, including 1.5 million external pilgrims and 160,646 internal pilgrims, marking the second-largest number following the 1.86 million pilgrims in 2019. According to recent statistics released by the General Statistics Authority (GASTAT), male pilgrims reached 893,396, representing 52.3% of the total number, while female pilgrims reached 813,905, accounting for 47.7% of the total number. These figures underscore Saudi Arabia’s continued efforts to serve pilgrims and visitors of the Holy Mosque in Makkah, the sacred sites, and the Prophet’s Mosque in Madinah, with a focus on care, organization, and hospitality. 

From vision to app: Digitizing the pilgrim journey

The Pilgrim Experience Program (PEP) is one of the programs designed to achieve Saudi Vision 2030. Launched in 2019 to enable the largest number of Muslims possible to perform Hajj and Umrah in the best manner, the program aims to facilitate hosting a larger number of Hajj and Umrah performers and streamlining access to the Haramain (the Two Holy Mosques in Makkah and Al-Madinah); providing high-quality services to pilgrims for a comprehensive and smooth experience; and enriching the religious and cultural experience of pilgrims by allowing them to visit Islamic historical and cultural sites.

The program is a model of agility, strategic excellence, and infrastructure, acting quickly to ensure a successful pilgrimage by safeguarding against threats and maintaining highly skilled personnel on hand. 

To further facilitate the pilgrims’ experience, the Kingdom launched the Nusuk platform and the Makkah Route initiative, reflecting a broader change: services are being adopted at scale, supporting a growing number of pilgrims with greater consistency and ease

With over 54 million users and more than 4 billion user interactions, Nusuk offers over 130 services and serves as a unified gateway for Muslims worldwide to plan their journeys in advance, access services, and manage their experience end-to-end. According to the Vision 20230 Annual Report 2025, the Makkah Route initiative enabled over 1.2 million pilgrims in 2025 to complete key procedures before departure, reducing waiting times and simplifying entry into the Kingdom, compared to 1,600 pilgrims in 2017.

Harnessing technology to enhance the Hajj experience

The success of the Hajj 2026 season underscored Saudi Arabia’s heavy investment in utilizing technology, artificial intelligence (AI), robotics, and smart services to improve crowd management and enhance operational efficiency. Through Saudi Vision 2030, the Kingdom installed high-end digitalization, medical technologies, and even AI-driven crowd control technologies to make the pilgrimage safer and smoother. The Saudi AI and Data Authority (SDAIA) led these efforts by operating several integrated AI-powered platforms and digital services throughout the pilgrimage journey.

AI-powered crowd management

One of the main areas of focus in the Hajj 2026 season is crowd management around the Grand Mosque in Mecca and the holy sites of Mina, Arafat, and Muzdalifah. According to SDAIA, platforms such as Baseer and Sawaher, developed in partnership with the Ministry of Interior, use computer vision, thermal imaging, and AI-driven analytics to monitor crowd density and movement patterns in real time and regulate pedestrian and vehicle flows in high-density areas around holy sites. These systems analyze live video feeds and surveillance data to identify congestion points, predict crowd surges, and support faster decision-making by authorities. Along with crowd management, Saudi authorities leveraged AI for enhanced transportation coordination, better resource allocation, and more effective emergency response.

Multilingual robots

The Kingdom deployed multi-service AI-powered robots designed to provide religious guidance and real-time translation in several languages as part of a wider digital ecosystem aimed at enriching visitors’ spiritual and intellectual experience. The robot offers interactive religious and educational content through an easy-to-use interface, including information on locations and services inside the two holy mosques, answers to religious inquiries, and instant translation services to help visitors from different nationalities and cultures communicate more easily.

Smart support services

In addition to surveillance systems, Saudi Arabia offered several smart support services to help pilgrims during their trip. For instance, drones were deployed to quickly inspect and assess the situation with crowds, providing authorities with useful real-time data regarding areas that would have been hard to capture otherwise. Additionally, digital advisory systems, multilingual communication support, and mobile applications assisted pilgrims with their routes, access to services, and valuable updates.

Saudi authorities also provided a range of digital solutions to help pilgrims find transportation, accommodation, healthcare, and religious support data, using mobile apps to send real-time alerts and assistance in various languages.

Connectivity that serves faith: how telecoms power the Hajj

The telecommunications sector was instrumental in the success of Hajj 2026, with the Kingdom’s advanced digital infrastructure playing a pivotal role. The core of this success was a massive physical infrastructure deployment that included over 5,230 communication towers across Makkah, Madinah, and the holy sites, complemented by more than 31,000 kilometers of fiber-optic cables to ensure comprehensive 4G and 5G coverage.

Operators like stc Group employed AI-powered systems for real-time crowd analysis and predictive traffic steering, with AI systems managing more than 99.9% of automated analytics and network decisions during peak hours, while service quality-related tickets fell 13%.

The group also has over 450 network expansion operations to include more than 3,000 new coverage points and 1,100 outdoor sites. These expansions increased the total data traffic by 42% during the Day of Arafah, with 5G accounting for more than 51% of total usage and 5G adoption growing 16% year-on-year. Average download speeds increased 13% while latency was reduced by 50%. The network achieved a call completion success rate of 99.83%, with VoLTE success up 11% and overall operational availability reaching 99.9% throughout the day. 

Additionally, stc Group provided integrated digital services at the Makkah Route’s lounges across 17 entry points in 10 countries to facilitate Hajj pilgrims’ procedures.

Zain KSA also developed an integrated ecosystem to enhance connectivity quality and digital services for pilgrims. It achieved a 99.9% network availability in Makkah and the sacred sites, and witnessed a 99% rise in call quality compared to the previous year and an 18% rise in high-quality data traffic.

The operator launched the Smart Hajj Platform, an AI-powered platform for end-to-end network management across the Hajj zone, to enhance performance efficiency and improve connectivity during the Hajj season. The platform enabled real-time detection and analysis of challenges and autonomous fixes requiring zero human intervention, allowing network challenges to be addressed faster than traditional manual monitoring methods.

These figures reaffirm that Saudi Arabia is no longer simply hosting pilgrims; it is engineering an end-to-end digital pilgrimage ecosystem where technology anticipates needs, bridges languages, and safeguards lives. The Hajj 2026 season demonstrated that the Kingdom has successfully transformed religious observance into a seamlessly orchestrated, data-driven operation without diminishing its spiritual essence.

As Vision 2030 approaches its final stretch, the Hajj economy offers a replicable blueprint for other mega-events worldwide. However, the true measure of success remains deeply human: shorter waiting times, clearer guidance, safer crowds, and the quiet dignity of worshipers who can focus entirely on their devotion. The next article will focus on two equally vital pillars of the Hajj economy: healthcare resilience in mass gatherings and the transportation logistics that move millions across sacred sites with precision and safety.

Kholoud Hussein 

Before long, fitness was viewed primarily as a lifestyle choice across much of the Middle East. Today, it has become a fast-growing economic sector attracting investment, driving entrepreneurship, and reshaping consumer spending habits. Across the GCC, rising health awareness, supportive government policies, and the expansion of modern fitness facilities have transformed wellness from a niche market into a mainstream industry. In Saudi Arabia particularly, Vision 2030 has accelerated this shift, helping create one of the region's fastest-growing fitness markets while encouraging greater participation across all demographics, especially women.

As the sector matures, attention is increasingly turning toward the technology infrastructure that powers gyms, personal trainers, and fitness operators. Beyond opening new fitness centers, the industry is entering a phase where operational efficiency, data analytics, artificial intelligence, and scalable digital platforms are becoming key drivers of growth and profitability. This evolution is creating significant opportunities for companies capable of bridging the gap between fitness services and technology.

Among the companies leading this transformation is Enhance, a Middle East-born fitness platform that has evolved from a regional service provider into a global technology player. Operating across the UAE, Saudi Arabia, Qatar, Bahrain, and the United States, the company now supports more than 15,000 personal trainers and facilitates over half a million training sessions every month. Through its Enterprise SaaS and AI-powered platform, Enhance Tech, the company is helping gym operators improve trainer performance, increase profitability, and better manage one of the industry's most valuable yet historically underutilized revenue streams: personal training.

As Enhance expands its footprint beyond the GCC and deepens its presence in the United States, the company is positioning itself at the intersection of fitness, artificial intelligence, and enterprise software. Its journey reflects broader trends reshaping the global wellness economy, where technology is increasingly becoming the foundation for scalable growth and long-term value creation.

In this exclusive interview with Sharikat Mubasher, Tarek Mounir, Founder and CEO of Enhance, discusses the company's evolution from a Dubai-based startup into a global fitness technology platform, the growing demand for personal training across Saudi Arabia and the GCC, the role of AI in transforming gym operations, the company's expansion strategy in the US and beyond, and how Enhance aims to become the global operating standard for personal training in the years ahead.

Enhance has scaled rapidly across the UAE, Saudi Arabia, and Qatar, while also expanding into the United States. How would you describe the company's current operating model, and what has been the key driver behind this cross-market growth?

Enhance is the operating system for personal training (PT). We help large gym chains turn PT from an afterthought into a predictable, profitable revenue stream — which in the high-volume, low-price (HVLP) segment is something almost nobody has cracked.

 We started in Dubai in 2018 as a service business. Eight years later, we cover 700+ contracted gym locations globally — UAE, Saudi Arabia, Qatar, Bahrain, and now the US — supporting 15,000 trainers and over 500,000 booked sessions a month. Revenue has compounded at 65% CAGR since 2019.

 The more important shift is the shape of the business. We went from a regional service layer into a SaaS platform that any multi-site gym operator can deploy. That super-sized our addressable market; from Gulf gym chains up into a $1.8 billion global PT management software category; with the US and UK alone worth $800 million. The GCC gave us the operational history and the proven unit economics. The US is where we're deploying them at scale.

With more than 15,000 personal trainers on the platform and over half a million monthly sessions booked, what does this level of activity reveal about demand trends in the fitness economy across the GCC?

The numbers reflect a structural shift in how GCC consumers approach health. A PT client in Dubai, in 2018, typically came in asking for weight loss before a wedding or a summer holiday. The same client today asks about strength, recovery, energy, and long-term healthspan. That vocabulary shift happened in under a decade.

 Saudi Arabia is the most significant data point. Vision 2030 opened the fitness category, and the pace of adoption — particularly among women — has been dramatic. We're seeing more first-time formal fitness participants in KSA right now than in any other market we operate in. Consumer demand there is outpacing the supply of qualified trainers, which tells you the ceiling is still far above where the market is today.

 Session volumes reflect PT’s transition from a premium add-on to a mainstream service. Over 500,000 booked sessions a month is not a niche conversation — it's a category.

Your Enterprise SaaS and AI-powered product, Enhance Tech, is gaining traction in the US market. What gap in the global gym industry are you addressing, and why do you believe this solution has not been built at scale before?

PT is a $42 billion global market, and most gym operators still lose money on it. The industry runs on whiteboards, spreadsheets and gut feel. Trainer churn sits around 70% a year. Fewer than 15% of free trial sessions convert into paying clients. Operators have almost no visibility into what is actually happening on the gym floor.

No one has solved this at scale because it requires two things that are genuinely hard to combine: deep operational experience running PT inside gyms, and the engineering capability to abstract that into software. Most software companies don't understand the gym floor. Most gym operators don't build software. We have spent eight years doing both, simultaneously.

The AI layer works because the dataset works first. We process over 500,000 PT sessions a month across 700+ gyms. Every session is a data point on what makes trainers successful, why members stay or leave, and where revenue leaks out. A new entrant would need almost a decade of operational history to rebuild that. That's not something you shortcut with capital.

The performance metrics you've shared — 20% more sessions per trainer, a 17% increase in operating margins, and over 40% improvement in trainer retention — are significant. From an investor's perspective, how do these metrics translate into long-term value creation for gym operators?

Each metric hits a different line on the P&L, so they compound in a meaningful way for operators and investors.

 The 20% increase in sessions per trainer is a revenue multiplier — the same headcount produces materially more output. The 17-percentage-point improvement in operating margin at mature sites makes PT much more of a profit engine for gyms. The retention number is the one investors tend to underweight the impact of: when trainer churn drops from the 70% industry norm to under 30%, operators are spared having to absorb constant rehiring and retraining costs, and clients stop churning with their trainer.

Put together, the model creates a gym that earns more from PT, spends less running it, and retains the people who deliver it. At mature sites we see PT revenue around $85,000 per club per month. That's the long-term value case — and it's why operators stay on the platform once they're on it.

Can you walk us through Enhance's funding journey to date? What type of investors have backed the company, and how are you positioning the business for future funding rounds or strategic partnerships?

We bootstrapped the early years deliberately. Taking outside capital before the unit economics were proven would have meant scaling the wrong thing faster. Once the model worked, we raised.

We've taken around $21 million to date. Our cap table includes Global Ventures — MENA's leading venture firm — alongside other institutional backers who understand the regional market and the global ambition. 

We are in conversations with investors who recognize now as particularly ideal timing, as we accelerate our US rollout, deepen the product, and move from a proven regional operator into the default PT infrastructure for large gym chains globally. 

The thesis is straightforward — PT is a $42 billion market with no system of record or operating standard. We're building it. The strategic partnerships we're pursuing in the US reflect the same logic: enterprise gym groups looking for an operator they can trust to run PT end-to-end, not just provide software.

Saudi Arabia is undergoing rapid transformation in its fitness and wellness sector under Vision 2030. How central is the Kingdom to your growth strategy, and what specific expansion plans do you have in this market?

Saudi Arabia is our highest-growth market and one of the most important in the world for this category. Vision 2030 did not just open a new segment — it catalysed a generational shift in how Saudi consumers relate to health and fitness. Current participation rates, particularly among women, would have been unimaginable a decade ago.

For Enhance, the KSA opportunity is both a consumer-side and enterprise-side story. For consumers, demand for qualified personal training is expanding faster than supply — the market constraint is the talent gap, not regulation or the willingness to pay. That creates a strong case for a platform that helps gym operators find, train, and retain good trainers at scale.

On the enterprise side, the large gym groups expanding aggressively across the Kingdom need infrastructure to run PT profitably — and the franchise model driving much of that expansion is exactly where our platform performs best. We're working with operators who are building for a ten-year horizon, and so are we.

Beyond the GCC and the US, which markets are you prioritising next, and what factors determine your market-entry strategy — regulation, consumer behaviour, or enterprise demand?

Enterprise demand drives the sequence, and then we assess the other factors. We follow large gym chains — if a group we already work with is expanding into a new market, that's a faster path to traction than building from scratch against an unfamiliar operator landscape.

As for what's next: the UK is a natural priority. It's the largest gym market in Europe, has strong HVLP penetration, and there is a significant shared-language advantage in how we build and sell the product. Beyond that, Southeast Asia and markets like Australia are interesting over a 24–36 month horizon — high gym penetration, growing PT adoption, and early-stage software infrastructure in the gym sector.

Regulation matters less than it might initially appear. Personal training is not a heavily regulated category in most markets. Consumer behaviour matters more — specifically, whether PT has reached the inflection point from premium to mainstream in a given market. Our GCC experience tells us that once that shift starts, it moves quickly.

As you continue to scale both your consumer platform and enterprise SaaS offering, how do you see Enhance evolving over the next three to five years — particularly in terms of AI integration, product development, and global market positioning?

The three-to-five year vision is to be the system of record and operating standard for personal training globally — the platform gym operators default to, the way hotel groups default to property management software or restaurants default to reservation systems. That category doesn't exist yet. We're building it.

On AI specifically: the tools already live include at-risk client detection that flags members before they churn, and a trainer coaching layer benchmarking every trainer, so managers know exactly who to develop. An AI sales agent and a daily AI management brief follow later this year — with ranked morning instructions for each gym manager, rather than a dashboard requiring interpretation.

The advantage is not the models themselves. Every platform will have access to good models. The advantage is the eight years of operational history behind ours — over 500,000 sessions a month across 700+ gyms, compounding daily. That data set gets harder to replicate every quarter.

On global positioning: the US establishes us as a credible global operator, not just a GCC success story. That matters for enterprise deals, for the fundraising narrative, and for the category we're defining. The ambition, simply stated, is to be the company that built the global infrastructure for PT — and to have done it from the UAE.

Ghada Ismail

Not long ago, the relationship between large corporations and startups was relatively straightforward. Established companies invested in promising startups, partnered with them, or acquired them once they had proven their market value. Innovation largely happened outside the walls of major businesses.

Today, that dynamic is changing. Across Saudi Arabia, a growing number of conglomerates and family-owned business groups are taking a more active role in creating innovation by building startups themselves. Rather than waiting for entrepreneurs to identify opportunities, these companies are establishing dedicated teams tasked with spotting market gaps, developing new products, and launching entirely new ventures from within.

The shift reflects broader changes taking place across the Kingdom. As Vision 2030 drives economic diversification and digital transformation reshapes industries, Saudi companies are increasingly looking beyond their traditional business models. For many, the objective is no longer simply to adapt to change but to create the businesses that will drive future growth.

These internal startup units—often operating as venture studios, innovation hubs, or venture-building teams—are becoming an increasingly important part of how some of Saudi Arabia’s largest organizations approach innovation.

Why Conglomerates Are Looking Inward

For decades, diversification often meant expanding into new sectors through acquisitions, partnerships, or geographic growth. While these strategies remain important, they can be expensive, time-consuming, and dependent on opportunities that may not always exist.

At the same time, technological disruption is forcing companies to respond faster to changing markets. New business models can emerge rapidly, and startups have repeatedly demonstrated their ability to challenge established players with innovative products and services.

Many Saudi conglomerates have realized that waiting for the next disruptive company to appear may no longer be enough. Building ventures internally allows them to stay closer to emerging trends while creating businesses that align directly with long-term strategic priorities.

The Kingdom’s rapidly maturing startup ecosystem has also influenced this trend. Over the past decade, Saudi entrepreneurs have built successful companies across fintech, e-commerce, logistics, healthtech, and software. Their success has shown that innovative businesses can be created and scaled locally, encouraging larger corporations to adopt entrepreneurial thinking themselves.

What Is an Internal Startup Unit?

An internal startup unit goes beyond the role of a traditional innovation department.

While innovation teams often focus on improving existing products, services, or processes, startup units are typically tasked with creating entirely new businesses. Their role is to identify opportunities, validate market demand, develop products, and launch ventures that could eventually become standalone companies.

These teams often combine entrepreneurs, product managers, developers, strategists, and industry specialists. Many operate separately from core business units, giving them greater flexibility to experiment and move quickly without becoming trapped in corporate bureaucracy.

The goal is not innovation for its own sake, but the creation of sustainable businesses capable of generating new revenue streams and opening new markets for the parent organization.

The Venture-Building Influence

The rise of internal startup units is closely linked to the growing popularity of venture-building models globally.

Unlike venture capital firms that invest in startups founded by others, venture builders actively participate in creating companies from the ground up. They identify opportunities, assemble teams, develop products, and provide operational support throughout the startup journey.

The model has gained traction in Saudi Arabia through venture studios and startup factories that treat entrepreneurship as a structured, repeatable process rather than a matter of chance.

For conglomerates, the appeal is clear. Instead of investing in multiple external startups and hoping a few succeed, they can build businesses aligned with their own strategic priorities while leveraging assets they already possess.

Different Models Are Emerging

Saudi companies are experimenting with several approaches to venture building.

Some have established dedicated venture studios that operate almost independently, identifying opportunities and creating startups from scratch. Others have launched innovation labs focused on emerging technologies and experimentation, with successful projects sometimes evolving into standalone businesses.

A third approach involves commercializing internal capabilities. Technology solutions originally developed for internal use can become products serving external customers. Some companies are also pursuing joint ventures with entrepreneurs, international technology firms, or specialized operators to combine corporate resources with startup expertise.

Despite these differences, all of these models share the same objective: creating new growth engines beyond traditional business lines.

Saudi Companies Putting the Model into Practice

While Saudi Arabia's corporate venture-building ecosystem is still developing, several organizations have established structures that reflect different approaches to creating and scaling new ventures. Importantly, not all of these initiatives follow the same model. Some focus on building businesses internally, while others support external startups or expand through internal innovation.

One of the strongest examples of venture building in the Kingdom is Saudi Aramco. Through the Saudi Aramco Entrepreneurship Center, known as Wa'ed, the company has spent more than a decade supporting entrepreneurship and business creation. Complementing this effort are Wa'ed Ventures, Aramco's venture capital arm, and LAB7, its venture-building and product development platform. Together, these initiatives form part of a broader ecosystem designed to identify opportunities, develop technologies, support entrepreneurs, and help transform ideas into scalable businesses. While not a traditional startup studio in the Silicon Valley sense, Aramco has built one of the Kingdom's most structured pathways for venture creation and commercialization.

Beyond Aramco, other organizations are helping shape an emerging venture-building ecosystem. Dussur, established by Saudi Aramco, the Public Investment Fund (PIF), and SABIC, was created to develop strategic industrial businesses that advance Saudi Arabia's localization and industrialization ambitions. Unlike traditional investment vehicles, Dussur often works alongside partners to establish and grow new industrial ventures, making it one of the Kingdom's most prominent examples of institution-backed company building.

Another notable example is Sanabil Studio, a venture-building platform launched by Sanabil Investments. The studio works with entrepreneurs to identify market opportunities, validate ideas, assemble teams, and launch startups. Its model reflects the growing popularity of venture building in Saudi Arabia, where startup creation is increasingly being approached through structured processes rather than relying solely on individual founders.

Not all corporate innovation initiatives, however, focus on creating ventures internally. Some organizations have chosen to engage with the startup ecosystem through external support platforms. stc's InspireU program is a leading example. Since its launch, InspireU has provided startups with mentorship, funding, training, and access to industry networks, helping strengthen the Kingdom's entrepreneurial ecosystem while giving stc exposure to emerging technologies and business models.

Other companies demonstrate how internal innovation can create entirely new commercial opportunities without necessarily operating formal venture studios. Elm is one such example. Originally focused on digital government solutions, the company has steadily expanded its portfolio through the development of digital products and platforms serving both public- and private-sector customers. Its evolution illustrates how large organizations can leverage internal expertise, technology capabilities, and market knowledge to create new business lines and revenue streams.

The distinction is important. Building startups internally, supporting external entrepreneurs, and expanding through internal innovation are different approaches, but all reflect a broader shift in how Saudi organizations think about growth and innovation. While the Kingdom still has relatively few publicly documented corporate venture studios compared with more mature markets, an increasing number of organizations are experimenting with new ways to create businesses rather than simply invest in them. As competition intensifies and economic diversification accelerates, these models are likely to play an increasingly important role in shaping the next generation of Saudi companies.

Why the Model Makes Sense

One reason internal startup units are attracting attention is that they address several challenges commonly faced by traditional startups.

Access to funding is perhaps the most obvious advantage. Corporate-backed ventures typically begin with financial resources already in place, allowing teams to focus on product development and market validation rather than fundraising.

These ventures also benefit from established customer networks, supplier relationships, distribution channels, and industry connections that can accelerate growth significantly. Brand recognition provides another advantage. While independent startups often spend years building trust, ventures launched under respected corporate brands may gain credibility much faster.

Perhaps most importantly, they can draw upon decades of industry expertise. Large corporations possess deep knowledge of customer behavior, operational challenges, and market dynamics that can help new ventures avoid costly mistakes and identify opportunities more effectively.

Yet There Are Real Challenges

Despite these advantages, corporate venture building is far from a guaranteed success.

The biggest obstacle is often culture. Startups thrive on experimentation, rapid iteration, and calculated risk-taking, while large corporations are typically structured around governance, efficiency, and risk management. These priorities can sometimes clash.

A startup team may want to launch a product quickly, while corporate procedures require multiple layers of approval. Without the right balance, the speed and agility that make startups effective can easily be lost.

Talent acquisition presents another challenge. Experienced entrepreneurs and startup operators often prefer environments that offer autonomy and flexibility. Attracting and retaining such talent within a corporate structure requires thoughtful leadership, clear incentives, and sufficient independence.

Measuring success can also be difficult. New ventures rarely become profitable immediately, requiring organizations to evaluate progress based on learning, customer adoption, and market validation rather than short-term financial performance alone.

The Future Ahead

As Saudi Arabia continues its economic transformation, internal startup units are likely to play an increasingly prominent role within the private sector.

Sectors such as artificial intelligence, fintech, logistics, healthtech, climate technology, enterprise software, and industrial technology offer significant opportunities for corporate venture building. Future startup units may also collaborate more closely with universities, research institutions, entrepreneurs, and government-backed innovation programs, strengthening links between established corporations and the wider startup ecosystem.

What is clear is that the relationship between corporations and entrepreneurship is changing. Saudi conglomerates are no longer content with supporting innovation from the sidelines. Increasingly, they are becoming builders themselves, creating startups, launching new ventures, and shaping the next generation of businesses that could define the Kingdom’s economic future.

In many ways, this marks a new chapter for Saudi corporate innovation, one in which some of the country’s largest organizations are beginning to think and act more like startups themselves.

Ghada Ismail

A few years ago, launching a startup in Saudi Arabia usually followed a familiar path. Founders would enter an accelerator, pitch investors, secure early funding, and then try to figure everything else out along the way. Today, a different model is beginning to take shape across the Kingdom, one that is less about simply financing ideas and more about building companies from the ground up.

Welcome to the era of venture studios.

Across Saudi Arabia, a growing number of venture builders are quietly changing how startups are created. Instead of waiting for entrepreneurs to arrive with fully formed businesses, these studios help shape the idea itself, validate the market, recruit talent, build products, and guide operations from day one. In many cases, they act less like investors and more like co-founders.

The rise of players such as VMS, Sanabil Studio, and Lean Node Venture Studios reflects a broader shift happening inside Saudi Arabia’s startup ecosystem. The conversation is no longer just about funding entrepreneurs. It is increasingly about building startups systematically, repeatedly, and at scale.

Moving Beyond the Accelerator Boom

For years, Saudi Arabia has focused heavily on laying the groundwork for entrepreneurship. Government initiatives, accelerator programs, startup competitions, and venture capital funds helped create momentum in the ecosystem. As investment activity accelerated, the Kingdom quickly became one of the Middle East’s largest startup funding markets.

But money alone could not solve every challenge.

Many startups still struggle with execution. Some founders had strong technical skills but limited experience building scalable businesses. Others found it difficult to navigate regulations, recruit the right talent, localize products, or acquire customers efficiently.

That gap created space for venture studios to emerge.

Unlike traditional venture capital firms that invest after a startup already exists, venture studios often start much earlier. They identify opportunities internally, test market demand, help shape business models, and sometimes build entire companies alongside entrepreneurs from the earliest stages.

Globally, the model has already produced major companies within various sectors. Saudi Arabia is now adapting the concept to fit its own market dynamics and economic ambitions.

Why the Model Makes Sense in Saudi Arabia

The venture studio approach fits naturally with where Saudi Arabia’s ecosystem stands today.

Under Vision 2030, the Kingdom is trying to diversify its economy, accelerate innovation, create private-sector jobs, attract global talent, and localize emerging industries, all at the same time.

Venture studios actually offer a structure that supports many of those goals simultaneously.

Unlike short-term accelerator programs, studios stay involved throughout the startup journey. They provide operational support, legal guidance, hiring assistance, technical development, fundraising strategy, and business connections under one roof.

For first-time founders, that reduces risk considerably.

For investors, it creates a more controlled environment where ideas are validated before large amounts of capital are deployed.

And for Saudi Arabia, venture studios provide a way to systematically produce startups in strategic sectors such as fintech, AI, logistics, tourism, enterprise software, and digital commerce.

That is why many Saudi venture studios no longer describe themselves simply as investment firms. They position themselves as company builders.

VMS and Saudi Arabia’s Soft-Landing Opportunity

Among the more visible players in this space is Value Makers Studio (VMS), which positions itself as both a venture studio and a platform helping regional and international startups enter the Saudi market.

Based in Riyadh, VMS provides support that goes beyond capital, including technology development, legal assistance, marketing support, financial guidance, and access to Saudi business networks. The company also operates initiatives such as the ‘VMS Bridge Program,’ which focuses on connecting startups from emerging markets with Saudi Arabia’s innovation ecosystem.

That ‘soft-landing’ approach is becoming increasingly relevant as more foreign founders and international startups look toward Saudi Arabia as a regional expansion market.

VMS also reflects a broader trend emerging across the Kingdom’s startup ecosystem, where venture studios are evolving into ecosystem connectors alongside their company-building role. In practice, this often means helping startups navigate relationships with investors, corporations, regulators, and local business networks, presenting an advantage that can significantly influence how quickly companies scale in Saudi Arabia.

Sanabil Studio and Institutional Startup Creation

A stronger example of institutional venture building can be seen in Sanabil Studio, which was established by Sanabil Investments, a wholly owned subsidiary of the Public Investment Fund. 

The studio focuses on building startups from the earliest stages, working closely with founders across ideation, prototyping, MVP development, product design, engineering, hiring, finance, and growth support. According to the studio’s website, it combines capital, market insight, and hands-on operational support to help founders launch and scale ventures in Saudi Arabia. 

What makes Sanabil Studio particularly notable is its combination of sovereign-backed capital with hands-on company creation. Unlike traditional venture capital firms that typically invest after startups are already established, venture studios such as Sanabil Studio participate much earlier in the company-building process, often helping shape ventures from ideation through early execution. 

Lean Node and the “Startup Factory” Approach

Another important player is Lean Node, which focuses on building ventures internally while supporting entrepreneurs through structured startup-building programs.

According to the company, it has helped launch more than 18 startups since 2017 using a repeatable venture-building framework designed to reduce common startup risks.

Lean Node highlights one of the biggest advantages of the venture studio model: operational centralization.

Instead of every startup building separate HR systems, legal structures, financial operations, and development teams from scratch, studios create shared infrastructure that multiple ventures can use simultaneously.

This lowers costs, speeds up execution, and allows studios to test ideas more rapidly across different sectors.

In many ways, the model resembles a startup factory more than a conventional investment firm.

Lean Node and the “Startup Factory” Approach

Another important player in Saudi Arabia’s venture studio ecosystem is Lean Node, which focuses on building ventures internally while supporting entrepreneurs through structured startup-building programs.

According to the company’s website, Lean Node has helped build more than 18 startups since 2017 through a venture-building model focused on developing scalable businesses across the MENA region. The studio describes itself as “an engine that builds disruptive products” using a “tested and streamlined process” designed to maximize success while lowering risk. 

The company’s structure reflects one of the core characteristics of the venture studio model: centralized operational support. Rather than every startup independently building teams and systems from scratch, venture studios typically provide shared access to areas such as product development, operational guidance, technical expertise, and business support. This approach can reduce early-stage costs and accelerate execution across multiple ventures simultaneously. 

Lean Node has also expanded into specialized venture-building initiatives, including fintech-focused startup creation through partnerships such as Lean Fintech, launched with Mjalis Investment during LEAP 2023. 

In practice, the model operates more like a startup production platform than a conventional investment firm, with venture studios playing an active role in company creation rather than acting solely as financial backers. 

Closing the Founder Experience Gap

One reason venture studios are gaining traction in Saudi Arabia is that they directly address one of the ecosystem’s biggest challenges: experience.

The Kingdom has no shortage of ambitious entrepreneurs or available capital. What remains relatively limited, however, is the number of experienced startup operators who have repeatedly built and scaled companies.

Founders across the ecosystem frequently talk about the difficulties of navigating fundraising, finding product-market fit, hiring effectively, and scaling operations.

Venture studios attempt to shorten that learning curve.

Instead of forcing founders to figure everything out alone, studios embed experienced operators, engineers, marketers, product designers, and venture builders directly into the process from the beginning.

The Challenges Behind the Hype

Still, venture studios are not a perfect solution.

Some entrepreneurs argue that studio models can dilute founder ownership too aggressively. Others question whether startups created inside structured environments develop the same resilience as companies built independently.

There are also operational risks.

Running multiple startups simultaneously requires significant capital, talent, and management discipline. Internationally, several venture studios have struggled to maintain strong long-term performance across large portfolios.

Another open question is whether venture studios can consistently produce truly disruptive innovation rather than safer, optimized versions of existing business models.

Saudi Arabia’s ecosystem is still young enough that many of these questions remain unanswered.

Even so, supporters of the model believe the Kingdom’s current market conditions make venture studios especially relevant. In an ecosystem that is still building institutional startup knowledge, structured company creation may offer advantages that traditional founder-led approaches cannot always provide on their own.

The Future Ahead

The next phase of Saudi Arabia’s venture studio ecosystem will likely become far more specialized.

Future studios may focus entirely on sectors such as AI, cybersecurity, climate tech, gaming, logistics, biotech, fintech, or deep tech. Some early signs of that trend are already emerging through initiatives tied to advanced technologies and national innovation priorities.

AI-native venture studios could also become increasingly common as generative AI dramatically reduces development timelines and startup operating costs.

At the same time, international venture builders are expected to form more partnerships inside the Kingdom as Saudi Arabia continues positioning itself as one of the region’s largest startup markets.

What is already becoming clear, however, is that Saudi Arabia’s ecosystem is entering a new stage of maturity. The early era of startup hype is gradually giving way to something more structured, operational, and institutionalized. And venture studios may end up playing a central role in that transition, not simply by funding the next generation of Saudi startups, but by helping build them from scratch.

Kholoud Hussein 

In the world of venture capital, mergers, and rapid-growth startups, few terms carry as much weight—or anxiety—as due diligence. It is the checkpoint between a startup’s ambition and an investor’s capital, the rigorous validation process that determines whether a business is truly worth the risk. Although often spoken about as a routine step, due diligence has evolved into a sophisticated, multilayered investigation that shapes the fate of fundraising rounds, acquisitions, and even long-term survival.

At its core, due diligence refers to the comprehensive assessment conducted by investors, acquirers, or financial institutions to evaluate a startup’s viability—financially, legally, operationally, and strategically. It is the process through which claims are tested, risks are measured, and assumptions are either validated or exposed. For early-stage founders, this is the moment when the narrative must finally match the numbers.

In practical terms, due diligence begins when an investor shows serious interest in a startup. The glossy pitch deck no longer suffices; instead, founders must provide access to detailed financial reports, customer metrics, intellectual property documentation, legal filings, product performance data, and more. Everything from revenue consistency to founder equity structure is scrutinized. The goal is simple: to ensure that what the startup says it is building aligns with what it actually operates.

This process typically spans several categories—financial, legal, technical, and commercial. Financial due diligence reveals whether revenues are stable or inflated, whether burn rate is manageable, and whether the business’s cost structure is built for scale. Legal due diligence uncovers potential landmines: unregistered trademarks, unsettled disputes, improper employment contracts, or shareholder conflicts that could hinder growth. Technical due diligence has become increasingly essential in a world dominated by AI, cloud software, and cybersecurity threats, as investors assess whether the product is robust, defensible, or even feasible at scale. Commercial due diligence, meanwhile, evaluates market potential—customer retention, competitive positioning, and sector dynamics.

For startups, due diligence functions as a double-edged sword. While it is often stressful and time-consuming, it also acts as a validation milestone. A company that passes rigorous due diligence signals maturity and credibility in the market. Investors tend to view such startups not just as promising, but as stable and trustworthy. In regions such as the GCC, where the venture capital landscape is accelerating rapidly, due diligence has become essential in separating hype from genuine scalability.

Startups are increasingly preparing for due diligence earlier than ever—sometimes before even seeking investment. Many adopt internal “data room” structures, organize compliance documentation, and maintain accurate financial records to avoid last-minute surprises. This preparation reflects a broader maturity in the ecosystem: as competition increases, investors demand cleaner, more transparent operations.

In Saudi Arabia, for example, the surge in venture capital activity under Vision 2030 has brought heightened attention to governance and operational resilience. With record-breaking investments across sectors like fintech, logistics, cloud services, and AI, startups are expected to demonstrate not only innovation but also sustainable growth paths supported by data. Due diligence is the mechanism ensuring that capital is deployed responsibly in this new economy.

Global investors entering the MENA region also rely heavily on robust due diligence to navigate fragmented regulations, young markets, and rapidly growing sectors. For many foreign funds, the depth and transparency of due diligence outcomes often determine whether they will green-light an investment in the region. Consequently, startups that maintain high-quality operational discipline gain a competitive edge—not just locally, but globally.

In essence, due diligence is not a barrier; it is a blueprint. For founders, preparing for it forces clarity of vision, discipline around metrics, and alignment across teams. For investors, it is the safeguard that ensures capital goes to companies with real potential. And for the broader startup ecosystem, it serves as a mechanism of integrity—one that helps shape sustainable growth.

As venture capital deepens its roots in emerging markets and competition for capital intensifies, due diligence will remain the defining test of a startup’s readiness. In the end, the companies that embrace transparency, maintain operational rigor, and deliver measurable results will be the ones that survive the scrutiny—and secure the funding needed to thrive.

Noha Gad

Saudi Arabia’s logistics ecosystem has been shaped by its strategic location, connecting the three continents with some of the world’s busiest trade routes. Since the launch of Vision 2030, the Kingdom has made broad reforms to improve coordination and performance of the logistics sector. This included restructuring key entities across transport, ports, aviation, and rail, in addition to establishing new institutions and expanding the national carriers and infrastructure projects.  

Guided by the National Transport and Logistics Strategy (NTLS), aiming to transform Saudi Arabia into a logistics hub, the sector has expanded infrastructure, strengthened connectivity, and developed logistics zones across the Kingdom. Since its launch, over $75 billion in investment contracts have been signed across multiple transport modes, according to the Vision 2030 Annual Report 2025. These efforts have improved efficiency and reduced friction across the system, supported by digitalized services, simplified procedures, and stronger integration between entities.

The Kingdom successfully achieved groundbreaking developments to build a robust network of rail, ports, and infrastructure to strengthen the ecosystem. Key milestones included the expansion of King Abdulaziz Port in Dammam, the establishment of a new logistics corridor linking Jeddah Islamic Port to Al-Khumrah, and the launch of the India-Middle East-Europe Economic Corridor. This progress reflects stronger supply chains, expanded logistics capacity, and improved integration across transport systems, alongside greater regional connectivity and streamlined customs procedures, enhancing the flow of regional and international trade.

With these developments, Saudi Arabia has advanced across global logistics indicators, supported by sustained investment in infrastructure and operational performance. The Kingdom ranked second in the G20 group with the highest cargo throughput growth rate at 32%. It was also selected among the top four emerging markets in the Agility Logistics Index in 2025.

The country also saw a notable improvement in 2024 in its global ranking for container handling, climbing to 15th place globally, as reported by Lloyd’s List. Jeddah Islamic Port moved up from 41st to 32nd, King Abdullah Port rose to 70th from 71st, and King Abdulaziz Port in Dammam advanced from 90th to 82nd, marking significant progress in the competitiveness of Saudi ports.

Mawani: A Key Enabler Revolutionizing Logistics

The Saudi Ports Authority (Mawani) is rapidly transforming Saudi Arabia into a logistics hub by launching new shipping lines, specialized logistics parks, and digital services to support Vision 2030. The authority has invested more than SAR 30 billion since the launch of Vision 2030 to develop the Kingdom’s ports, increasing its capacity by more than 50% in recent years.

In 2025, the authority added more than 34 new shipping services to the Saudi ports to reinforce Saudi Arabia’s position as a global logistics hub connecting Asia, Africa, and Europe. Key services included the Himalaya Express Service that connects King Abdulaziz Port with 12 global ports with a capacity of over 14,000 TEUs, and the MEDEX Service, which links Jeddah Islamic Port with 12 global ports, boasting a capacity of over 10,000 TEUs, in addition to RSX1, SJA, and BOS services.

In March, Mawani announced the launch of five new maritime shipping services to enhance the resilience of the logistics sector and ensure the continuity of supply chains and the flow of goods, ultimately reinforcing the Kingdom’s position as a global logistics hub. These services are:

1. Gulf Shuttle. This service was launched to connect King Abdulaziz Port in Dammam with Khalifa Bin Salman Port in Bahrain, with a capacity of up to 3,000 TEUs (Twenty-foot Equivalent Unit). Through this service, Mawani aims to support national exports, improve operational efficiency at the port, and strengthen the Kingdom’s position as a regional and global logistics center.
2. Redex by CMA CGM. With a capacity of 2,594 TEUs, this service enhances maritime connectivity with Arab countries, including Egypt and Jordan, and supports global trade flows.
3. Jade by MSC. This service was added to Jeddah Islamic Port and King Abdullah Port, linking the Kingdom to eight regional and global ports and offering a capacity of 24,000 TEUs. This initiative also strengthens inland logistics connectivity between Jeddah Port and the GCC countries.
4. Maersk’s new AE19 shipping service. This high-capacity service, utilizing vessels capable of carrying up to 17,000 TEUs, links Jeddah to primary Asian hubs including Shanghai, Ningbo, Qingdao, and Xingang in China, Busan in Korea, and Tanjung Pelepas in Malaysia.
5. Hapag-Lloyd’s SE4 Service. This new route links Jeddah to major international hubs in China, Korea, and Malaysia, boasting a capacity of up to 17,000 TEUs.

Logistics Corridors Initiative 

Mawani launched this integrated initiative to enable the transport of containers arriving at the Kingdom’s western coast ports through dedicated land routes to various regions of the Kingdom and GCC countries, contributing to reduced handling time and improved operational efficiency at ports. This initiative was designed to enhance supply chain efficiency and facilitate cargo movement between the Kingdom’s ports.

Port of NEOM

This strategic gateway on the Red Sea connects the three continents while advancing regional integration through multimodal corridors with Egypt, Saudi Arabia, and Iraq. It currently provides a comprehensive suite of services designed to meet the demands of modern trade: general and project cargo, containerized shipments, bulk consignments, warehousing, and RoRo (roll on–roll off) ferry operations. 

In April, NEOM announced the launch of a new multimodal land bridge connecting Europe to the GCC through Egypt and northwest Saudi Arabia, in partnership with Pan Marine, with support from DFDS and regional logistics players. This integration allows truck-carried freight to move directly from Europe to Egypt and into the Gulf, via the Port of NEOM, offering an alternative to previous only container flows and enabling the movement of critical goods, including FMCG and other time-sensitive cargo.

The new route is already in active use by importers from several European countries, including Italy, the UK, Germany, and Poland, and provides direct access into the UAE, Kuwait, Oman, the wider GCC, and Iraq, supporting customers seeking predictable and efficient market entry. This corridor helped reduce transit time by more than 50%, featuring over 900 KM covered by shipments.

Private Sector Contribution 

The private sector has played a pivotal role in strengthening Saudi Arabia’s position as a regional and global logistics leader by driving infrastructure improvements and forming partnerships with global firms. According to the Vision 2030 Annual Report 2025, total private sector investment surpassed SAR 30 billion by the end of 2025. 

Additionally, the private sector provided privatization investments worth more than SAR 21 billion through 16 contracts and secured SAR 11 billion contracts with local and international partners to establish 29 logistics centers.

Private-sector companies also enhanced the operational efficiency of logistics services across the Kingdom by adopting advanced technologies like automation and digital supply chain systems, improving speed and reliability for trade routes connecting Asia, Europe, and Africa.

Finally, Saudi Arabia's logistics sector stands at the forefront of Vision 2030, transformed by strategic reforms, massive infrastructure investments, and innovative initiatives driven by the National Transport and Logistics Strategy. The private sector's pivotal contributions in funding, technology adoption, and global partnerships have accelerated this progress, ensuring seamless connectivity across continents and enhanced trade efficiency. As the Kingdom continues to climb global rankings and pioneer multimodal corridors, it solidifies its role as a premier logistics hub, driving economic diversification and sustainable growth for the future.

Kholoud Hussein 

In the world of entrepreneurship, funding is often viewed through the narrow lens of venture capital. High-profile equity deals and large funding rounds tend to dominate headlines, giving the impression that selling shares is the default path to growth. But an equally important and increasingly relevant tool for startups—especially as global markets mature—is debt financing. While long associated with traditional businesses, debt is now becoming a strategic option for growth-stage startups seeking to scale without sacrificing ownership or control.

Debt financing, simply put, is when a company raises capital by borrowing money that must be repaid over time with interest. Unlike equity financing, where investors receive a stake in the business, debt allows founders to retain full ownership while still accessing the capital they need. For startups, particularly those that have predictable revenue or assets to leverage, debt can be a powerful instrument that offers flexibility during critical growth phases.

The renewed attention toward debt financing comes at a time when the global venture capital market has cooled. Valuations have tightened, due diligence has become more rigorous, and investors are focusing more on profitability than on rapid, unchecked growth. In this environment, startups are discovering that debt—once considered off-limits for young companies—can be an attractive complement or alternative to equity. It offers liquidity without dilution, and when structured properly, it can unlock the operational runway needed to achieve key milestones.

In regions such as the GCC, and particularly Saudi Arabia, this trend is becoming more visible. As the Kingdom builds a more diversified and innovation-driven economy under Vision 2030, the financial ecosystem surrounding startups has expanded sharply. New private credit vehicles, venture debt funds, and government-backed financing programs are giving startups a way to access capital without surrendering equity too early. Saudi policymakers have emphasized that broadening the financing landscape is essential to supporting high-growth companies through different stages of their development. Debt fits naturally into that vision.

For startups, the strategic value of debt lies in its structure. It can be used to smooth cash flow, purchase inventory, acquire equipment, or finance expansion without affecting the company’s ownership. Growth-stage companies with consistent revenue streams often turn to debt to accelerate product development or enter new markets. Meanwhile, venture debt—designed specifically for startups—typically works alongside equity rounds, offering additional capital without dramatic dilution. This blend can create a more balanced capital structure and signal to investors that the company has multiple financing channels available.

However, debt financing is not without its challenges. Unlike equity, where investors absorb some of the risk, debt must be repaid regardless of the company’s performance. That reality forces startups to think carefully about their cash flow and financial discipline. Borrowing too early, or without a clear growth strategy, can put pressure on operating margins and restrict flexibility. This is why debt financing tends to work best for startups that already have product-market fit, recurring revenue, or tangible assets.

Yet despite the risks, the rising use of debt financing among startups signals a more mature entrepreneurial environment—one where founders think long-term and weigh the cost of capital carefully. In Saudi Arabia, this maturity is taking root as more founders prioritize financial sustainability. By accessing debt responsibly, startups can maintain control during their early years, invest in strategic growth, and position themselves for stronger negotiating power when raising equity later.

What makes debt particularly relevant today is the changing mindset around growth. The era of “growth at all costs” has given way to a more disciplined model in which profitability, resilience, and capital efficiency matter. Debt financing aligns naturally with this shift. It rewards startups that build solid business fundamentals and operational stability—traits that increasingly define the winners in competitive markets.

For founders, the takeaway is straightforward: debt is no longer a fallback option reserved for established companies. It is becoming part of the modern financing toolkit for startups seeking to expand intelligently. In an evolving economic landscape where capital is more selective and growth strategies must be sharper, debt financing offers startups a way to scale while preserving what they value most—their vision and ownership.

If used wisely, debt can be the catalyst that helps a startup cross from early promise to sustained success.

Kholoud Hussein 

Over the past decade, Saudi Arabia has undergone one of the most ambitious digital transformations in the world. What began as a broad modernization agenda under Vision 2030 has evolved into a comprehensive reengineering of everyday life—changing how citizens work, travel, receive healthcare, interact with government, shop, learn, and make financial decisions. Today, whether a Saudi needs to renew a passport, pay a bill, register a business, book a medical appointment, attend a class, or receive social services, nearly every step happens through a screen.

But this transformation is not merely a story of new apps or automated government systems. It is a story about trust. The rapid digitization of life in Saudi Arabia was only possible because citizens learned to place confidence in digital services—trusting that government portals are secure, digital payments are safe, health data is protected, and online processes are more reliable than traditional paper-based systems.

This shift did not happen overnight. Nor was it guaranteed. It required a coordinated ecosystem—government entities, regulators, startups, fintech innovators, cybersecurity institutions, and private companies—all working to build credibility, transparency, and reliability into the digital infrastructure.

Today, Saudi Arabia ranks among the world’s top countries in government digital services and cybersecurity strength. The UN E-Government Development Index lists the Kingdom among the top achievers globally; the National Cybersecurity Authority is recognized as one of the strongest frameworks in the region; and government platforms such as Absher, Tawakkalna, Najiz, and Sehhaty have become household names, embedded deeply into the daily rhythm of Saudi life.

The result is a transformation that goes beyond convenience. It has reshaped behavior, expectations, and culture—redefining what it means to navigate modern life in the Kingdom.

This is the first installment in a long-form series exploring how digital transformation is reshaping Saudi society. And there is no better starting point than the foundation of it all: digital trust.

A New Digital Rhythm: How Transformation Became a Daily Experience

To understand the depth of the shift, it is important to appreciate how digital services migrated from being an optional convenience to becoming central infrastructure.

A decade ago, a typical Saudi citizen interacting with government services often faced queues, manual paperwork, and multi-day processing times. Government offices were physical spaces; a stamped form was the gold standard of verification. That world now feels distant. Through Absher alone, citizens can complete more than 350 services—from renewing IDs to processing visas—without leaving their homes.

The Ministry of Interior has repeatedly emphasized that this shift is not only about modernization; it is about quality of life. A ministry official noted in 2024 that “citizens today expect public services to operate with the same ease and speed as the best digital companies in the world—and that is the benchmark we have adopted.”

Healthcare has undergone the same transformation. Platforms like Sehhaty and Mawid allow Saudis to book medical appointments instantly, access prescriptions, view test results, and consult doctors remotely. During the pandemic, these services became lifelines—and they remain part of everyday healthcare today.

Education, too, has become deeply digital. Students access materials online; parents monitor progress through apps; universities use AI-based systems for admissions and assessment. E-learning is not an emergency measure—it is part of the educational infrastructure.

Financial behavior has also changed dramatically. Cash usage has fallen below 20%, according to the Saudi Central Bank, and more than 95% of all transactions in retail settings now take place digitally or through contactless systems.

These transformations illustrate a deeper truth: digitization in Saudi Arabia no longer sits at the edge of society—it sits at the center.

The Meaning of Digital Trust—and Why It Matters

Digital trust refers to citizens’ confidence in the safety, transparency, reliability, and fairness of online systems. It is built on four pillars:
security, usability, accountability, and reputation.

If any of these pillars collapse, adoption weakens. But in Saudi Arabia, the opposite happened—adoption accelerated at remarkable speed.

Several factors explain why:

1. Strong national cybersecurity framework

Saudi Arabia has invested heavily in cyber defense, earning top regional rankings. This builds confidence that personal data and transactions are protected.

2. Unified and well-designed government platforms

Citizens do not navigate dozens of inconsistent portals. Instead, major services are consolidated into trusted platforms like Absher, Tawakkalna, Najiz, Sehhaty, and Ehsan.

3. Regulatory reforms that protect users

The National Data Management Office and related authorities introduced strict data governance laws that strengthened confidence in the use of personal information.

4. Visible reliability

When citizens consistently use digital services without errors or delays, confidence naturally grows. Reliability is trust in practice.

A senior official at the Digital Government Authority summarized it clearly during a recent industry conference:
“Trust is the currency of digital life. Once citizens trust a platform, everything else becomes possible.”

Behavioral Change: The Rise of the Digitally Confident Citizen

Once digital trust is established, behavior shifts rapidly. Saudi Arabia today offers several examples of large-scale behavioral changes driven by digitization.

1- A population that prefers online over offline

Surveys from 2023–2024 show that most Saudis now choose digital channels first for administrative, financial, and logistical tasks. Citizens no longer tolerate inefficiency—they expect services to be instant and accessible.

2- New expectations about transparency

Digital receipts, real-time tracking, and clear pricing have changed how Saudis evaluate services. The days of opaque processes are fading.

3- A shift in lifestyle habits

People order groceries online, track fitness digitally, use e-wallets to split bills, and rely on apps for entertainment, navigation, and health. Technology is not an add-on; it is embedded into daily routines.

4- A cultural shift toward self-service

Digital platforms empower users to complete tasks independently. This shift reduces friction and increases satisfaction.

Digital trust did not only make citizens comfortable with technology—it made them expect more from both public and private sectors.

The Role of Startups: Building Confidence Through Innovation

Saudi startups played a crucial role in strengthening digital trust. Their success stories, innovations, and reliability contributed to a broader cultural belief that digital solutions are not merely functional—they are superior to traditional ones.

Fintech startups such as STC Pay, Tweeq, HyperPay, and Tamara reshaped perceptions about digital payments and online financial services. Logistics startups improved trust in deliveries by offering real-time tracking and predictable service. Health-tech platforms democratized access to care and established proof that digital consultations can be high-quality, secure, and convenient.

Startups helped close gaps that large institutions could not fill quickly, especially in sectors where citizen expectations were evolving faster than legacy systems.

A Riyadh-based founder who runs a fast-growing fintech startup noted during a panel discussion:
“The more reliable digital services became, the more citizens trusted them. Startups had a huge role in proving that digital can be faster, safer, smoother—and that encouraged adoption across the country.”

This entrepreneurial ecosystem also reinforced the idea that digital transformation is not a government-driven process alone—it is a partnership between public institutions and private innovators.

The Economics of Trust: How Digital Confidence Generates Growth

Digital trust does not only affects behavior; it affects economic performance. When citizens trust digital systems, they transact more, invest more, consume more, and engage in entrepreneurial activity with less friction.

Saudi Arabia’s e-commerce sector, for example, grew past SAR 50 billion, driven largely by rising consumer confidence in online payments and delivery networks. Fintech adoption reached new highs, with digital wallets becoming the primary payment method for millions.

Government efficiency also surged. Digital transactions dramatically reduced operational costs across ministries, cut processing times, and improved service delivery. This efficiency increases competitiveness and makes the Kingdom a more attractive destination for foreign investment.

In short, digital trust fuels digital growth.

A Foundation for the Future: What Comes Next

Saudi Arabia’s digital transformation is still evolving. The next wave will integrate artificial intelligence more deeply into public services, expand digital health diagnostics, enable fully smart cities, automate mobility networks, and personalize services based on predictive analytics.

These advancements will require even stronger trust. But the foundation is already in place.

The Digital Government Authority has described this phase as “moving from digital services to intelligent services—where platforms anticipate needs before citizens ask.” That future requires citizens who are both digitally confident and digitally empowered. And today, Saudi Arabia has both.

Finally, the story of Saudi Arabia’s digital transformation is not only a story of technology. It is a story of confidence—built step by step, platform by platform, experience by experience. Citizens learned that digital services could be secure, reliable, efficient, and transparent. This trust enabled an ecosystem to flourish, startups to thrive, and daily life to be redefined.

Saudi society is not merely adopting digital tools—it is embracing a digital identity. And as the Kingdom moves toward a fully integrated digital future, digital trust will remain the invisible infrastructure supporting every service, every transaction, and every innovation.

Kholoud Hussein

When Saudi Arabia speaks today about diversification, innovation, and economic transformation, it increasingly looks upward—toward space. The Kingdom’s renewed focus on aerospace, satellite technology, and advanced data infrastructure has opened the door for a new generation of companies operating at the intersection of engineering, artificial intelligence, and orbital science. Among the most promising of these emerging players are micro-constellation startups, a sector that only a decade ago barely existed in the region. Today, it stands as one of the most strategically significant fields shaping the Kingdom’s long-term vision for sovereignty, technological leadership, and economic competitiveness.

Micro-constellation startups specialize in designing and launching large clusters of small satellites—often no bigger than a shoebox—that fly in formation around Earth. Together, they function as a coordinated network, collecting environmental, commercial, and geospatial data in real time. Unlike traditional satellites, which can cost hundreds of millions of dollars and take years to build, micro-constellation satellites are lighter, cheaper, and faster to deploy. Their rise globally has transformed satellite services from the domain of governments and aviation giants into a competitive new arena where startups can innovate.

Saudi Arabia, recognizing the strategic importance of this shift, is now moving aggressively to cultivate its own micro-constellation ecosystem. Through policy, funding, infrastructure, and investment incentives, the Kingdom is working to ensure it becomes a regional leader—and eventually, a global contributor—in the new space economy.

A Strategic Bet Aligned With Vision 2030

The push toward micro-constellation technology is not a standalone effort; it is embedded deeply within the national transformation agenda. The Kingdom’s Vision 2030 identifies aerospace and space technology as critical components of its future industrial base. For policymakers, satellites are not merely scientific tools. They are engines of economic intelligence, national security, climate strategy, and digital transformation.

Saudi officials acknowledge this openly. In comments made during the Saudi Space Agency’s 2024 annual forum, a senior representative stated that “space data will be a foundation of the Kingdom’s digital economy.” He emphasized that the small satellite model—flexible, affordable, and scalable—offers a unique opportunity for Saudi entrepreneurs and engineers to compete globally without the prohibitive capital costs that once hindered regional participation in the sector.

Investment figures reflect this seriousness. Over the past four years, Saudi Arabia has invested more than SAR 8 billion ($2.1 billion) in space-related initiatives across the Agency’s program portfolio. These investments include satellite manufacturing facilities, research partnerships with global aerospace companies, university programs dedicated to aerospace engineering, and the creation of local talent pipelines. The goal is clear: micro-constellation startups are not meant to be fringe experiments. They are intended to become anchors in the Kingdom’s broader technological landscape.

How Micro-Constellation Startups Operate—and Why They Matter

Micro-constellation startups operate with a fundamentally different model than traditional satellite companies. Instead of building a single, extremely expensive satellite designed to last fifteen years, they develop fleets of small satellites in low-earth orbit, each designed for specific functions. By working in synchronized clusters, they can generate continuous streams of high-frequency imagery, climate readings, maritime activity, agricultural data, and IoT connectivity.

This shift has reshaped industries worldwide. For example, farmers can now optimize irrigation using images captured multiple times per day; shipping companies can track fleets with unprecedented precision; and governments can monitor environmental degradation in real time. What once required billion-dollar budgets can now be done for a fraction of the cost.

In Saudi Arabia, this capability is particularly powerful. The Kingdom’s geography—one of the world’s largest deserts combined with maritime zones, vast construction sites, and rapidly expanding urban landscapes—demands continuous monitoring. Micro-constellations offer exactly that. They allow policymakers, developers, and private companies to build accurate models of everything from water scarcity to population expansion.

The rise of mega-projects has only intensified this need. NEOM, Qiddiya, the Red Sea Project, Diriyah Gate, and other developments rely heavily on satellite intelligence for construction mapping, environmental monitoring, autonomous vehicle coordination, and logistical planning. An official from NEOM’s technology division recently noted that “no mega-project of this scale can function without satellite data,” a statement that underscored how micro-constellations have become indispensable infrastructure for the Kingdom’s most ambitious endeavors.

The Saudi Startup Scene: Who Is Operating in This Space?

While the sector is still in its early stages, several startups and early-stage companies are beginning to carve out territories within Saudi Arabia’s growing micro-constellation landscape. Some are focused on satellite manufacturing; others specialize in Earth observation analytics; still others focus on IoT connectivity for industrial operations.

One emerging company, often cited by industry analysts, is developing a fleet of small satellites dedicated to environmental monitoring, especially desertification and climate-change impacts on the Arabian Peninsula. Their models allow local governments to track vegetation patterns, water resources, and dune shifts—crucial data as Saudi Arabia pushes large-scale initiatives in food security and land restoration.

Another startup, representing a different slice of the ecosystem, does not build satellites at all. Instead, it purchases raw satellite imagery from global providers and uses AI to extract insights for Saudi clients. This includes mapping real-estate activity, monitoring progress on giga-projects, and aiding regulatory agencies in land-use enforcement. Their approach reflects an important truth: the micro-constellation economy is not only about building satellites; it is about building businesses around satellite data.

A Riyadh-based company has also begun developing IoT services through leased satellite networks, allowing remote mining sites, offshore platforms, and logistics operators to remain connected even when traditional signals fail. This expansion is particularly relevant as Saudi Arabia rapidly grows its mining sector—an industry that requires continuous monitoring in remote and rugged terrain.

Though the names of many of these startups remain under the radar as they finalize funding rounds, the ecosystem is expanding at a pace that mirrors global trends.

An Industry Poised for Foreign Investment

One of the most compelling aspects of the Kingdom’s micro-constellation push is its attractiveness to foreign investors and technology partners. Global aerospace companies—from Europe to East Asia—are closely monitoring Saudi Arabia’s market because it offers something few other regions can: scale, capital, and immediate demand.

Riyadh’s giga-projects alone create a multibillion-riyal market for Earth observation and geospatial analytics. The demand is not theoretical; it is active, measurable, and backed by sovereign funding. This makes Saudi Arabia a rare environment where satellite startups can find early commercial traction.

In late 2025, a European aerospace executive who visited the Kingdom remarked that “Saudi Arabia is the most commercially viable market in the Middle East for satellite manufacturing and space-data applications.” He pointed out that the Kingdom’s combination of funding, regulatory reforms, and tech-forward urban development makes it “the region’s first truly scalable space economy.”

Several foreign companies are now exploring joint ventures in satellite assembly, data centers for geospatial analysis, and partnerships with Saudi universities to generate local engineers. The Kingdom’s 100% foreign ownership policies for technology and R&D companies further amplify this momentum, making it far easier for global players to establish operations.

What Gaps Are Being Filled—and What Gaps Still Remain

The rise of micro-constellations fills several longstanding gaps in Saudi Arabia’s computational and strategic capabilities. First, it enhances data sovereignty, reducing dependence on foreign satellite networks for sensitive intelligence and economic information. In an era where data is increasingly tied to national security, this is a transformative advantage.

Second, it strengthens the Kingdom’s climate response. Saudi Arabia is undertaking massive initiatives to combat desertification, monitor carbon emissions, and improve water resource management. Continuous satellite monitoring is essential for all these activities, especially as the Kingdom pursues its ambitious commitment to plant tens of millions of trees under the Saudi Green Initiative.

Third, the industry supports the broader trend of industrial digitization. Sectors such as mining, logistics, energy, and construction all require real-time data, and satellite networks are providing the accuracy needed to modernize their operations.

However, gaps remain. Saudi Arabia is still building its local supply chain for satellite components, launch logistics, and ground infrastructure. While talent is emerging quickly, the Kingdom must continue to expand engineering programs and offer hands-on experience for young Saudi scientists. Funding, although increasingly available, will need to grow to support the capital-intensive nature of space-tech companies. Yet these gaps are precisely what startups—supported by government initiatives—are now working to fill.

The Road Ahead: Will Saudi Arabia Become a Space-Tech Hub?

The momentum behind micro-constellation startups suggests that Saudi Arabia is positioning itself as the Middle East’s leading space-technology hub by the early 2030s. Several indicators support this trajectory: a rapidly expanding startup ecosystem, rising venture investment, international partnerships, and a government that sees space as a strategic frontier rather than an experimental niche.

If current projections materialize, the Kingdom could see the launch of dozens of Saudi-built satellites, the rise of a domestic geospatial analytics sector generating hundreds of millions of dollars annually, and an increase in foreign aerospace companies establishing operations in Riyadh, Jeddah, and NEOM.

A senior official at the Saudi Space Agency recently summarized the Kingdom’s long-term outlook succinctly: “Saudi Arabia does not want to be a customer in the global space economy. It wants to be a contributor—and eventually, a leader.”

Micro-constellation startups, though still in their infancy, may well be the sector that propels that ambition into orbit.

Kholoud Hussein 

Saudi Arabia’s fashion sector is no longer emerging quietly on the sidelines of the Kingdom’s economic transformation. It is stepping into the foreground—structured, financed, and increasingly measurable. The unveiling of the new identity of the Fashion Investment Fund, the first specialized investment vehicle of its kind in the Kingdom, marks a decisive moment in that transition. It signals a shift from cultural encouragement to industrial strategy, from fragmented creative output to a coordinated economic sector.

For policymakers, the message is clear: fashion is no longer just about aesthetics or cultural expression. It is about value chains, job creation, export potential, and the broader ambition of building a diversified economy under Vision 2030.

The numbers alone justify the shift. Saudi Arabia’s fashion market is estimated to exceed SAR 70 billion, with projections placing it closer to SAR 90 billion within the next two years. This growth is not incidental. It is underpinned by a young population with rising purchasing power, a rapidly expanding e-commerce ecosystem, and a cultural reawakening that places local identity at the center of consumption patterns. Fashion, in this context, has become both an economic driver and a cultural statement.

Yet for years, the sector lacked the infrastructure to translate demand into sustainable growth. Designers operated in isolation. Manufacturing was largely outsourced. Financing was limited and often ill-suited to the unique cycles of fashion businesses. The result was a market rich in talent but constrained in scale.

The redefined Fashion Investment Fund is designed to change precisely that equation.

A senior official involved in the Fund’s restructuring described the shift in pragmatic terms: “We are moving from supporting designers to building an industry. That means financing production, strengthening supply chains, and ensuring Saudi brands can compete globally—not occasionally, but consistently.”

From Creative Fragmentation to Industrial Coordination

The Saudi fashion industry’s trajectory over the past decade can be traced through a series of deliberate milestones. The establishment of the Ministry of Culture in 2018 and the creation of the Fashion Commission shortly thereafter laid the institutional foundation. Subsequent years saw the introduction of training programs, international showcases, and incubators aimed at nurturing local designers.

By 2022, Saudi brands were appearing with increasing frequency on global stages, from Paris to Milan. These appearances were symbolically significant, but they also exposed a structural gap: global visibility without sufficient production capacity at home.

Designers could attract attention, but scaling remained a challenge. Production often relied on international factories, adding cost, complexity, and time. Smaller brands, in particular, struggled to meet minimum order quantities or maintain consistent supply.

The Fashion Investment Fund’s new identity addresses this bottleneck directly. By channeling capital into local manufacturing and mid-scale production facilities, it seeks to anchor the industry domestically. Analysts estimate that localizing even a fraction of current production could reduce costs by up to 30%, while retaining billions of riyals within the national economy.

Startups Redefining the Business of Fashion

Parallel to these institutional developments, a new generation of Saudi startups is reshaping how fashion operates. No longer confined to traditional design houses, the ecosystem now includes technology-driven companies addressing inefficiencies across the value chain.

Fashion-tech platforms are introducing data-driven inventory management, AI-powered demand forecasting, and digital retail solutions tailored to local consumer behavior. Resale and rental platforms are tapping into the growing global demand for circular fashion, while logistics startups are optimizing last-mile delivery for fashion e-commerce.

This evolution reflects a broader shift: fashion in Saudi Arabia is becoming as much about systems and scalability as it is about design.

A Riyadh-based entrepreneur operating in this space noted, “The conversation has changed. Investors are not just asking about collections—they are asking about margins, supply chains, and data. That’s a sign the industry is maturing.”

Estimates suggest that more than 1,000 SMEs now operate within the Saudi fashion ecosystem, many of them startups. Their growth potential is significant, particularly as they integrate technology into traditionally labor-intensive processes.

Closing the Gaps: Financing, Skills, and Global Access

The challenges facing the sector remain substantial, but they are now more clearly defined—and increasingly addressed.

Financing has historically been one of the most critical gaps. Fashion businesses often require working capital for inventory cycles, a need that traditional funding models have struggled to accommodate. The Fund introduces tailored financial instruments designed specifically for these dynamics, offering both equity investment and flexible capital solutions.

Skills development is another priority. While creative talent is abundant, specialized expertise in pattern-making, textile engineering, and fashion business management remains limited. Training programs supported by the Fund aim to build this capability at scale.

Perhaps most importantly, the Fund is working to bridge the gap between local brands and global markets. International expansion requires more than design excellence; it demands regulatory compliance, branding sophistication, and logistical infrastructure. By facilitating partnerships with global fashion institutions, the Fund seeks to position Saudi brands within international supply chains rather than at their periphery.

Economic Impact and Strategic Alignment

The broader economic implications are significant. The fashion sector is expected to generate up to 100,000 jobs by 2030, spanning design, manufacturing, marketing, and retail. Its contribution to non-oil GDP is set to increase as part of the Kingdom’s goal of raising the cultural sector’s share to 3% of GDP.

Equally important is the sector’s role in advancing social objectives. Women lead a majority of fashion startups in Saudi Arabia, making the industry a key driver of female economic participation. This aligns directly with Vision 2030’s emphasis on inclusivity and workforce diversification.

As one industry executive observed: “Fashion sits at the intersection of culture and commerce. It allows Saudi Arabia to tell its story while building a sustainable economic sector.”

Global Attention and the Next Phase of Growth

Saudi Arabia’s ambitions in fashion are beginning to attract international attention. Global brands, textile manufacturers, and investors are exploring opportunities in the Kingdom, drawn by its scale, policy support, and growing consumer base.

The emergence of creative districts in Riyadh and large-scale developments such as NEOM adds another dimension, positioning fashion within broader innovation ecosystems. These environments are expected to host design studios, manufacturing facilities, and technology startups, further integrating the sector into the national economy.

Looking ahead, the trajectory appears increasingly defined. The combination of institutional support, targeted investment, and entrepreneurial momentum is transforming fashion from a fragmented market into a coordinated industry.

A Sector Coming Into Its Own

The rebranding of the Fashion Investment Fund is, at its core, a statement of intent. It reflects a recognition that creative industries can no longer be treated as peripheral to economic strategy. In Saudi Arabia, fashion is being positioned as a sector capable of generating revenue, creating jobs, and projecting cultural influence on a global scale.

The transition is still underway, and challenges remain. But the direction is clear. What was once a collection of individual efforts is becoming a structured, investable industry—one stitched together by policy, capital, and ambition.

And in that transformation lies a broader truth about the Kingdom’s economic future: diversification is not only being built in factories and energy projects. It is also being designed, produced, and scaled—one collection at a time.

Ghada Ismail

For years, the global digital economy has been built on a simple promise: move everything to the cloud. Data from phones, sensors, machines, and platforms would travel to centralized servers, be processed, and return with insights. That model worked well when speed was not critical, and data volumes were manageable.

Today, data is being generated everywhere, in factories, vehicles, hospitals, retail stores, and entire cities. And much of it needs to be processed instantly, not after a round trip to a distant data center. This is where Edge Computing comes in.

Edge computing is the practice of processing data closer to where it is created rather than sending it to centralized cloud infrastructure. Instead of relying on faraway servers, computation happens at or near the source, whether that is a sensor, a machine, a mobile device, or a local data node.

In Saudi Arabia, this shift is becoming especially important. As the Kingdom accelerates its digital transformation under Vision 2030, the demand for real-time intelligence across industries is rising fast. From smart cities to autonomous systems, edge computing is emerging as the invisible layer that makes this transformation possible.

The Shift from Cloud to Edge

Cloud computing is not disappearing. In fact, it remains the backbone of global digital infrastructure. But it has clear limitations when speed, scale, and immediacy are required.

One of the biggest challenges is latency. When data must travel to a centralized cloud region and back, even a few milliseconds of delay can matter. In applications like autonomous vehicles, industrial automation, or remote healthcare, that delay is not acceptable.

Bandwidth is another constraint. As billions of devices come online under the Internet of Things, continuously sending raw data to the cloud becomes inefficient and expensive. Not every piece of data needs to travel that far.

Edge computing solves these problems by complementing the cloud rather than replacing it. The cloud still handles heavy analytics, long-term storage, and training of large AI models. Edge systems handle immediate decision-making, filtering, and local processing.

This shift is tightly connected to three major technological trends shaping Saudi Arabia’s digital future.

First is artificial intelligence. AI systems increasingly require real-time inference at the point of action. Second is IoT growth, where sensors and connected devices generate constant streams of data. Third is real-time decision-making, which is becoming essential in sectors ranging from logistics to energy.

Together, these forces are pushing computing closer to the edge.

Why Saudi Arabia Is Positioned for Edge Computing

Saudi Arabia is not just adopting digital infrastructure; it is building it on a national scale.

Under Vision 2030, the Kingdom is investing heavily in becoming a global technology and innovation hub. This includes everything from smart infrastructure and digital government services to giga-projects designed around data-driven ecosystems.

Projects such as NEOM, the Red Sea development, and other smart city initiatives are designed from the ground up to rely on real-time data flows. These environments cannot function efficiently if every sensor, camera, or autonomous system must depend on distant cloud servers. They require distributed intelligence, which is exactly what edge computing provides.

Another key factor is data sovereignty. As digital systems become more critical to national infrastructure, there is a growing emphasis on keeping sensitive data within local borders. Edge computing enables localized processing, reducing reliance on external data centers while improving security and regulatory control.

In parallel, Saudi Arabia’s expanding cloud infrastructure, supported by global players and local providers, creates a strong foundation for edge-cloud hybrid systems. Rather than choosing between the cloud and the edge, the Kingdom is increasingly building an integrated ecosystem that uses both.

Key Use Cases Across Industries

The real impact of edge computing becomes clear when looking at how it is being applied across industries in Saudi Arabia. In the energy sector, particularly in large-scale oil and gas operations, vast volumes of operational data are generated across upstream and downstream systems. Edge computing architectures can enable faster monitoring of equipment, predictive maintenance, and real-time anomaly detection by processing data closer to the source rather than relying solely on centralized systems. This approach helps improve operational efficiency and reduce downtime across critical energy infrastructure.

In smart cities and giga-projects such as NEOM and the Red Sea developments, edge computing plays a foundational role. Autonomous transport systems, smart grids, surveillance networks, and environmental sensors all rely on instant data processing. Without edge infrastructure, the responsiveness required for these environments would not be achievable.

Healthcare is another area seeing rapid transformation. Real-time diagnostics, connected medical devices, and remote patient monitoring systems require instant data interpretation. Edge computing allows hospitals and healthcare providers to process patient data locally, reducing delays that could affect critical decisions.

In logistics and retail, edge computing supports automation in warehouses, real-time inventory tracking, and smarter supply chain management. Delivery fleets, for example, can benefit from instant route optimization based on live traffic and operational data.

The gaming and entertainment industry is also becoming a major beneficiary. Cloud gaming, augmented reality, and immersive digital experiences require ultra-low latency. Edge nodes placed closer to users significantly improve performance, enabling smoother gameplay and more responsive digital environments.

The Emerging Edge Ecosystem in Saudi Arabia

As demand grows, a new ecosystem of infrastructure and technology providers is beginning to take shape in Saudi Arabia and the wider region, supporting the shift toward distributed and edge-enabled computing.

Local players are laying much of the groundwork. Edarat Group is one example, offering data center engineering, cloud services, and edge AI capabilities, while also partnering with global firms to deploy modular infrastructure closer to where data is generated. This positions it as part of the emerging layer, enabling more distributed computing models.

Another company contributing to this foundation is Ezditek, which is investing in large-scale data center capacity and digital infrastructure, including projects linked to NEOM. While not exclusively focused on edge computing, such investments are essential in building the physical backbone that edge architectures depend on.

On the global side, specialized technology firms are also entering the Saudi market. EdgeCortix, for instance, is expanding into the Kingdom through the National Semiconductor Hub, bringing energy-efficient AI accelerator technologies designed specifically for edge environments. This reflects a broader industry shift toward embedding AI processing directly into devices and localized nodes, rather than relying solely on centralized cloud infrastructure.

Together, these companies represent an early-stage but rapidly evolving ecosystem that combines infrastructure providers, AI hardware innovators, and distributed computing platforms.

Challenges Slowing Adoption

Despite strong momentum, edge computing adoption in Saudi Arabia still faces several challenges.

One of the most significant is infrastructure cost. Deploying distributed edge nodes across a large geography requires substantial investment in hardware, connectivity, and maintenance. Unlike centralized cloud models, edge systems are physically dispersed, making them more complex to scale.

Another challenge is talent. Edge computing sits at the intersection of cloud engineering, networking, cybersecurity, and artificial intelligence. The demand for professionals with cross-disciplinary expertise is growing faster than supply, creating a skills gap that needs to be addressed through education and training.

Integration is also a technical hurdle. Most enterprises in Saudi Arabia are already operating on cloud platforms. Integrating edge systems with existing cloud architectures requires careful design to ensure consistency, security, and data synchronization.

Finally, the market is still in its early stages. While interest is high, large-scale deployments are still emerging, meaning that best practices, standards, and regulatory frameworks are still evolving.

The Future ahead

The next phase of edge computing in Saudi Arabia will likely be defined by convergence.

Edge and artificial intelligence are becoming deeply interconnected. Instead of sending data to the cloud for AI processing, models are increasingly being deployed directly at the edge. This allows systems to make decisions in real time, from autonomous machines to smart infrastructure.

At the same time, the Kingdom is expected to see a rise in localized data infrastructure. More edge data centers, micro data centers, and distributed computing nodes will emerge closer to population centers and industrial zones.

This evolution positions Saudi Arabia as a potential regional edge computing hub, not just a consumer of global technology but a producer and exporter of advanced digital infrastructure capabilities.

Investor interest is also expected to increase as the ecosystem matures. As edge use cases become more visible and commercially viable, startups and venture capital activity in this space will likely accelerate.

Conclusion: Edge as Invisible Infrastructure

Edge computing will not be something most people see or interact with directly. It will not be a visible platform or a consumer-facing application. Instead, it will function as invisible infrastructure, powering the systems that define modern life.

From smart cities that respond instantly to environmental changes, to autonomous systems that make split-second decisions, to digital services that operate without delay, edge computing will sit quietly beneath it all.

In Saudi Arabia, this shift is particularly significant. As the Kingdom builds one of the world’s most ambitious digital transformation agendas, edge computing is becoming one of its most essential enabling layers.

It is not replacing the cloud. It is completing it.

Kholoud Hussein 

In the world of venture capital, few topics stir as much debate as the question of whether investors should back startups led by a single founder. While the mythology of entrepreneurship often celebrates the lone genius—the visionary building a company from scratch—modern venture investing operates by a different logic. Capital today flows toward teams, not individuals, and the majority of VC firms openly acknowledge a preference for multi-founder startups. The trend is consistent across global markets, from Silicon Valley to Riyadh. The question is: why?

The answer lies in how investors assess risk, execution capacity, and long-term resilience. A sole-owned startup, no matter how promising the idea or how capable the founder, carries structural vulnerabilities that most investors consider too significant to ignore.

At the heart of the hesitation is the issue of concentration risk. Venture investments are already high-risk by nature, and relying on a single person to carry an entire company magnifies that risk substantially. If the founder becomes overwhelmed, burnt out, or unavailable—even temporarily—the entire business stalls. For VCs managing large funds and operating under strict timeframes, this is more than a hypothetical concern. It is an operational threat.

Another reason is the lack of complementary skill sets. A typical startup requires a blend of technical, commercial, and operational expertise. Few individuals are equally strong in all three areas. Investors are wary of solo founders who excel in vision but lack technical depth, or who are brilliant engineers but unfamiliar with sales, hiring, or finance. A team of two or three founders naturally balances these roles, reducing friction and increasing the startup’s ability to adapt quickly.

VCs also view team dynamics as a predictor of how well a startup will function under pressure. A founding team offers built-in collaboration, internal debate, and shared decision-making—qualities investors associate with better judgment and stronger governance. Solo founders, by contrast, may operate without meaningful challenge to their decisions, a trait that can be risky in fast-moving markets.

There is also a practical concern: speed of execution. Early-stage startups must move quickly, often juggling product development, customer acquisition, fundraising, hiring, and compliance all at once. A single founder, regardless of talent or determination, is limited by time and capacity. As one venture capitalist explained in a recent industry report: “Startups don’t fail because founders are not smart. They fail because even the smartest founders run out of bandwidth.”

For investors, bandwidth matters as much as brilliance.

This preference for teams does not mean that VCs universally reject solo-owned startups. There are exceptions, especially when founders have a strong track record, deep technical expertise, or rapid early traction. Some solo founders successfully raise capital on the strength of their idea or reputation alone. But even in these cases, investors often condition funding on the founder’s commitment to building a solid leadership team quickly.

In emerging markets, including the GCC, the pattern is similar. As Saudi Arabia and the UAE accelerate startup development through national strategies and state-backed investment vehicles, the emphasis on scalable, high-growth companies makes team-based startups more attractive. Sector complexity—in fintech, AI, logistics, or climate tech—often demands expertise that no single founder can provide alone.

Yet while the structural preference for multi-founder teams remains strong, the rise of AI tools, low-code platforms, and automated workflows may ease some of these concerns in the future. Solo founders now have access to sophisticated tools that expand their operational capacity, from automated customer service to AI-assisted coding. Still, most VCs argue that technology cannot fully replace the strategic benefit of shared leadership.

Ultimately, venture capital is not just about funding good ideas—it is about backing teams that can build lasting companies. And for most investors, a single founder, however exceptional, represents a risk profile that is harder to underwrite. The message is not that solo founders cannot succeed, but that assembling a complementary founding team remains one of the most effective ways to strengthen a startup’s chances of securing investment and scaling for the long term.