Kholoud Hussein 

Saudi Arabia's startup ecosystem is evolving at an unprecedented pace, fueled by the Kingdom's Vision 2030 and a global shift toward innovation and technology. As the country positions itself as a hub for entrepreneurship in the MENA region, 2025 is set to be a transformative year for startups. From green technologies to the rise of venture capital, several key trends are shaping the sector's future.

Here are eight key trends expected to redefine the startup landscape in Saudi Arabia in 2025:

1. AI-Driven Startups on the Rise

Trend: Artificial intelligence (AI) is becoming the backbone of innovation, with startups leveraging AI across industries such as healthcare, fintech, and logistics.

Impact in Saudi Arabia:

• The National Strategy for Data and AI (NSDAI) is driving AI adoption, offering support to startups focused on AI-based solutions.
• AI-powered platforms are enabling efficiencies in sectors like retail, education, and government services.
• Startups like Mozn and Lucidya are leading the way in AI-driven analytics and insights.

Expect more Saudi startups to explore generative AI and AI-powered personalization to create new opportunities.

2. Green Tech and Sustainability Startups Flourishing

Trend: With sustainability becoming a global priority, green tech startups are emerging to address climate challenges and contribute to Saudi Arabia's Saudi Green Initiative.

Impact in Saudi Arabia:

• The government’s commitment to achieving net-zero emissions by 2060 has created a fertile ground for startups in renewable energy, carbon capture, and sustainable infrastructure.
• Startups like Desert Control and Nomadd are innovating in agriculture and solar cleaning technologies, respectively.

In 2025, the startup ecosystem will likely see more investments and partnerships in green technologies, supported by both local and international venture capital.

3. Expansion of Venture Capital and Angel Investing

Trend: The availability of funding has been a game-changer for startups, with 2025 expected to bring a surge in venture capital (VC) and angel investments.

Impact in Saudi Arabia:

• Government-backed initiatives like Saudi Venture Capital Company (SVC) and Jada Fund of Funds are creating funding opportunities.
• International VCs are increasingly entering the Saudi market, attracted by its rapid growth and tech-savvy population.
• The volume of deals is expected to grow beyond the SAR 4 billion recorded in 2024.

What to Watch:
Expect new funds targeting specific sectors like health tech, AI, and sustainability.

4. The Rise of Women-Led Startups

Trend: With increased participation of women in the workforce, Saudi Arabia is witnessing a rise in women-led startups.

Impact in Saudi Arabia:

• Government programs like Monsha’at’s SME Bank and accelerators tailored for women entrepreneurs are fostering growth.
• Women-led startups are making strides in education tech, health tech, and e-commerce, driven by diverse perspectives and innovation.

Expect more success stories of women entrepreneurs breaking barriers and scaling globally.

5. Integration of Fintech Across Industries

Trend: Fintech continues to dominate, with its integration into sectors like real estate, healthcare, and e-commerce reshaping business models.

Impact in Saudi Arabia:

• Fintech adoption is accelerated by the Saudi Central Bank (SAMA), promoting innovation through open banking and regulatory sandboxes.
• Startups like Tabby and Tamara are driving the Buy Now, Pay Later (BNPL) trend, transforming consumer finance.

What to Watch:
The expansion of blockchain and AI-powered fintech solutions will redefine how businesses and consumers interact with financial services.

6. Focus on Localized Solutions for Saudi Markets

Trend: Startups are increasingly focusing on hyper-localized solutions tailored to the Saudi market's unique needs.

Impact in Saudi Arabia:

• Startups addressing local challenges, such as desert farming, waste management, and urban mobility, are gaining traction.
• Food tech startups like Chefaa and logistics innovators like Jahez are examples of how localization drives success.

In 2025, startups will further explore untapped markets in Saudi Arabia’s smaller cities and rural areas, leveraging digital transformation.

7. Smart Cities as Startup Testing Grounds

Trend: Smart cities like Neom and The Line are becoming incubators for innovation and startup experimentation.

Impact in Saudi Arabia:

• These projects offer startups access to cutting-edge infrastructure, IoT systems, and sustainable living environments.
• Sectors such as transportation, renewable energy, and AI-powered urban planning are attracting significant startup activity.

Startups that align with smart city goals will benefit from government support and increased visibility on a global stage.

8. Evolving Regulatory Environment Supporting Startups

Trend: Proactive regulatory changes are fostering a business-friendly environment, enabling startups to thrive.

Impact in Saudi Arabia:

• Initiatives like the Small and Medium Enterprises General Authority (Monsha’at) and regulatory sandboxes have streamlined processes for business registration and compliance.
• The Kingdom’s move to reduce corporate taxes and simplify business licenses is attracting entrepreneurs.

In 2025, expect more reforms designed to boost foreign investment and support startup scalability.

A Dynamic Year Ahead for Saudi Startups

The startup ecosystem in Saudi Arabia is on the cusp of significant transformation. With government backing, technological innovation, and a growing pool of talent, 2025 is set to be a defining year. The trends outlined above highlight the Kingdom's commitment to becoming a global hub for entrepreneurship, aligned with Vision 2030.

By focusing on sectors such as AI, fintech, sustainability, and smart cities, Saudi startups are not just addressing local challenges but also paving the way for regional and global impact. As funding increases and new opportunities emerge, the Kingdom’s entrepreneurial landscape is poised to thrive, making 2025 a year to watch closely.

Kholoud Hussein 

Saudi Arabia’s startup investment landscape is undergoing a seismic shift in 2024, fueled by a deliberate focus on artificial intelligence (AI), enterprise software, and small-to-medium enterprises (SMEs). These sectors represent the Kingdom’s strategic vision for economic diversification and innovation, aligning closely with the ambitious goals of Vision 2030. This transformation has been driven by a mix of government initiatives, private sector investments, and a growing entrepreneurial ecosystem.

In this comprehensive analysis, we explore the factors catalyzing this investment shift, the challenges that lie ahead, and the prospects for a more diversified and tech-driven Saudi economy.

The Vision 2030 Connection: A Blueprint for Change

The Saudi Arabian government has long been committed to reducing the economy’s dependence on oil revenues. Vision 2030, a cornerstone policy introduced in 2016, has provided the roadmap for this economic metamorphosis. One of its key objectives is fostering a knowledge-based economy powered by technology, innovation, and entrepreneurship.

In 2024, this vision became more tangible with a $6.4 billion commitment to next-generation technologies announced at the LEAP tech event in Riyadh. The funds are targeted at nurturing innovation in AI, enterprise solutions, and other cutting-edge fields. Abdullah Al-Swaha, the Minister of Communications and Information Technology, summed up the strategy succinctly, stating:

“Our focus on AI and enterprise software is pivotal to driving economic diversification and enhancing the competitiveness of our SMEs.”

This targeted investment aligns with Saudi Arabia’s broader efforts to establish itself as a global leader in tech and innovation, supported by regulatory reforms and infrastructure development.

Artificial Intelligence: The Jewel in the Crown

Artificial intelligence stands out as a transformative force in Saudi Arabia’s economic diversification strategy. The National Center for Artificial Intelligence (NCAI) has spearheaded AI adoption across sectors, from healthcare to finance and logistics.

In 2024, the NCAI launched several initiatives designed to build a robust AI ecosystem. This included training over 5,000 professionals in AI-related disciplines, establishing partnerships with global tech leaders, and funding for local startups integrating AI into their operations.

Moreover, AI-driven solutions are being adopted at scale within industries such as oil and gas, retail, and smart city development. For example, NEOM, the futuristic mega-city project, leverages AI to optimize urban planning, energy usage, and transportation systems.

By prioritizing AI, Saudi Arabia aims not only to solve domestic challenges but also to position itself as a global exporter of AI technologies and expertise.

Enterprise Software: Streamlining Business Operations

The rise of enterprise software as a key investment sector is another indicator of Saudi Arabia’s evolving startup ecosystem. Businesses across the Kingdom are increasingly turning to digital solutions to improve efficiency, reduce costs, and stay competitive in an interconnected global market.

Leading the charge is Saudi Telecom Company (stc Group), which has invested heavily in startups through its corporate investment fund (CIF). Since its inception, CIF has focused on early-stage startups in cybersecurity, digital gaming, Internet of Things (IoT), and AI.

Additionally, the InspireU accelerator program, launched by stc Group, has incubated over 90 digital projects with a combined market value exceeding SAR 12 billion. These projects, ranging from cloud computing solutions to advanced analytics platforms, serve over 40 million users and have had a transformative impact on the local economy.

Other prominent players in the enterprise software domain include global tech firms like Oracle and SAP, which have expanded their presence in Saudi Arabia to support the growing demand for enterprise-grade solutions.

Empowering SMEs: The Backbone of Economic Diversification

Small and medium-sized enterprises (SMEs) are the lifeblood of Saudi Arabia’s economy, contributing nearly 30% to GDP and employing a significant portion of the workforce. Recognizing their critical role, the Saudi government has launched numerous initiatives to empower SMEs and integrate them into the digital economy.

Monsha’at, the Small and Medium Enterprises General Authority, has been at the forefront of these efforts. Its financial support programs, regulatory reforms, and capacity-building initiatives have created a conducive environment for SME growth. According to Monsha’at’s 2024 SME Monitor report, the number of active fintech startups in the Kingdom grew to 224 by mid-year, reflecting a dynamic and fast-growing sector.

The fintech boom is indicative of broader trends within the SME ecosystem. From food-tech startups like Calo, which raised $25 million in a Series B funding round, to logistics platforms revolutionizing supply chains, SMEs are driving innovation across diverse industries.

Private Sector Investment: A Crucial Catalyst

While government initiatives have laid the foundation, private sector investment has been instrumental in driving Saudi Arabia’s startup ecosystem forward. Venture capital firms and corporate investors are increasingly drawn to the Kingdom’s burgeoning opportunities in AI and enterprise software.

For instance, 7startup, a venture capital firm specializing in deep tech and next-gen technologies, has been a prominent player in fostering innovation. Similarly, funds like STV and Raed Ventures are actively investing in high-potential startups to scale their operations and contribute to the economy.

The influx of private capital has also fueled cross-border collaborations. International investors see Saudi Arabia as a gateway to the broader Middle East and North Africa (MENA) region, offering unparalleled access to untapped markets and resources.

The Challenges Ahead

Despite the impressive strides made, challenges remain. Chief among them is the need for a skilled workforce. While initiatives like the NCAI’s training programs are addressing this gap, there is a pressing need to develop local talent to sustain growth.

Another hurdle is the regulatory landscape. Although the government has made significant progress in creating a startup-friendly environment, entrepreneurs still face bureaucratic hurdles in certain areas, such as intellectual property rights and data privacy regulations.

Furthermore, the high cost of technology adoption can be prohibitive for smaller startups, necessitating continued financial support and incentives.

Future Outlook: A Regional Leader in Tech and Innovation

Saudi Arabia’s focus on AI, enterprise software, and SMEs is more than just a strategic pivot—it represents a paradigm shift in how the Kingdom views its economic future. By 2024, the groundwork laid by Vision 2030 has already begun to yield results, with record-breaking investments and a thriving entrepreneurial culture.

Looking ahead, Saudi Arabia is poised to become a regional hub for technology and innovation. Its well-funded initiatives, robust infrastructure, and growing pool of talent make it an attractive destination for startups and investors alike.

As Saudi officials like Abdullah Al-Swaha emphasize, the Kingdom’s future lies in its ability to leverage technology for economic growth and global competitiveness. The continued commitment to innovation ensures that Saudi Arabia remains on the cutting edge of global trends, from AI-driven solutions to enterprise-grade software applications.

To conclude, the transformation of Saudi Arabia’s startup ecosystem in 2024 is a testament to the Kingdom’s ambitious vision for a diversified economy. With AI, enterprise software, and SMEs at the forefront, Saudi Arabia is not only reshaping its domestic economy but also positioning itself as a global leader in innovation.

By addressing challenges and capitalizing on opportunities, the Kingdom is charting a path toward sustained growth, economic resilience, and technological leadership. The journey is far from over, but the milestones achieved so far provide a glimpse into a promising future.

This pivotal moment in Saudi Arabia’s startup journey is not just about technology or investment—it's about redefining what’s possible in a rapidly changing world.

Kholoud Hussein 

Saudi Arabia's Vision 2030 is a comprehensive plan to diversify the Kingdom's economy and reduce its dependence on oil revenues. A pivotal component of this vision is the development of a robust fintech sector, which is expected to play a significant role in modernizing the financial landscape and driving economic growth. As of 2024, the Kingdom has made substantial progress toward becoming a leading fintech hub, with ambitious targets set for 2030.

Growth of Fintech Startups Driven by AI and Blockchain Technologies

The fintech landscape in Saudi Arabia has experienced remarkable growth in recent years. In 2020, approximately 60 fintech companies were operating in the Kingdom. By 2024, this number had surged to 226, representing a compound annual growth rate (CAGR) of 61%. This rapid expansion is largely attributed to the integrating of advanced technologies such as artificial intelligence (AI) and blockchain, which have enabled startups to offer innovative financial solutions.

AI has enhanced customer experiences through personalized services, efficient customer support, and improved risk assessment models. Blockchain technology, on the other hand, has facilitated secure and transparent transactions, fostering trust among users. The convergence of these technologies has led to the development of cutting-edge solutions in payments, lending, and wealth management, positioning Saudi Arabia as a burgeoning fintech hub in the region.

Impact of Open Banking Regulations Introduced by SAMA

The Saudi Central Bank (SAMA) has played a crucial role in fostering fintech innovation through the introduction of progressive regulations. One of the most significant developments is the implementation of the Open Banking Framework, which allows third-party providers to access financial data (with customer consent) to offer tailored financial services.

This initiative has spurred competition and collaboration between traditional banks and fintech startups, leading to a more dynamic financial ecosystem. By promoting transparency and data sharing, open banking has empowered consumers with greater control over their financial information and has encouraged the development of personalized financial products.

Trends in Mobile Payments, Digital Wallets, and AI-Powered Lending Platforms

The adoption of digital financial services has accelerated in Saudi Arabia, with mobile payments and digital wallets becoming increasingly prevalent. The introduction of the Fatoora Platform, an electronic invoicing system developed by the Zakat, Tax and Customs Authority (ZATCA), has further streamlined digital transactions.

AI-powered lending platforms have also gained traction, offering quick and efficient loan approvals by leveraging machine learning algorithms to assess creditworthiness. These platforms have improved access to credit for individuals and small businesses, contributing to financial inclusion and economic growth.

Saudi Arabia's Positioning as a Regional Fintech Hub

Saudi Arabia's strategic initiatives have positioned it on a promising trajectory to achieve its goal of hosting 525 fintech companies by 2030, supported by over SAR 12.2 billion in direct venture capital. The approval of three digital banks, offering a range of traditional banking services via smartphones and online channels, signifies a significant advancement in the Kingdom's digital banking landscape.

The government's commitment to economic transformation is evident in its support for the fintech sector. Finance Minister Mohammed Al-Jadaan emphasized this dedication, stating, "We are not 'complacent' about Saudi Vision 2030". This unwavering focus on economic diversification underscores the importance of fintech in the Kingdom's future.

Key Players, Investments, and Innovations

The fintech ecosystem in Saudi Arabia comprises a diverse range of startups and established financial institutions. Significant investments have been made to support this growth, with the fintech sector expected to reach $63.90 billion by 2024, driven by substantial state and private investments.

Innovations in the sector include the development of AI-driven tools for ESG compliance, green financing trends, and the rise of "quick commerce" startups impacting the logistics sector. These advancements reflect the dynamic nature of Saudi Arabia's fintech landscape and its alignment with global technological trends.

Finally, Saudi Arabia's fintech boom, underpinned by Vision 2030, represents a transformative journey toward economic diversification and modernization. The integration of advanced technologies, supportive regulatory frameworks, and significant investments have collectively positioned the Kingdom as a burgeoning fintech hub in the region. As Saudi Arabia continues to implement its Vision 2030 initiatives, the fintech sector is poised to play a pivotal role in shaping the future of the nation's economy.

Noha Gad

As the digital landscape continues to evolve, Saudi Arabia is positioning itself at the forefront of Web3 and blockchain technologies, driven by a strategic vision to harness innovation for economic growth. The Kingdom's commitment to advancing these technologies is evident through various initiatives, including the establishment of dedicated hubs and partnerships aimed at fostering a vibrant ecosystem. 

As part of Vision 2030, the Kingdom has been actively investing in emerging technologies, recognizing blockchain's potential to enhance transparency, security, and efficiency in both public and private enterprises.

In this rapidly evolving ecosystem, Web3 has emerged as a transformative force that reshapes industries and creates new opportunities for innovation and entrepreneurship in Saudi Arabia.

Adaverse, a prominent player in the Web3 investment landscape, is actively contributing to this burgeoning market. As one of the leading venture funds and blockchain accelerators in the region, Adaverse invested in several startups, such as Takadao, UmrahCash, Tharawat Green Exchange (TGE), and Grintafy, as part of its mission to empower local entrepreneurs and facilitate the growth of decentralized technologies across the region.

In this regard, Sharikat Mubasher held an interview with Vincent Li, Founding Partner at Adaverse, to learn more about the company’s activities in Saudi Arabia and his insights on the future of Web3 and blockchain technologies in the Kingdom and the region.

What sets Adaverse apart from other venture funds and blockchain accelerators in the region?

What sets us apart is our unique approach to building the Web3 ecosystem through a venture-building partnership model. We have successfully invested in around 100 founders across multiple regions, including Asia, Africa, and now Saudi Arabia. Our philosophy is centered on supporting persistent founders with necessary web3 knowledge throughout the whole startup journey, and valuable experiences and resources from other markets in the globe.

Unlike traditional venture funds, we focus on projects that solve real-world problems and drive mass adoption of blockchain technology. Our flat organizational structure and partnership-based approach allow us to work closely with founders, empowering them rather than simply providing capital.

What motivated Adaverse to commit $10 million to Saudi Web3 startups?

Our decision to commit to Saudi Arabia was driven by extensive market research and field visits that highlighted Saudi Arabia's significant potential for Web3 development. This commitment aligns with Saudi Vision 2030 and the country's digital transformation goals. 

We have already invested in several promising Saudi ventures, including Grintafy, UmrahCash, TGE (Tharawat Green Exchange), TakaDAO, and others, with more investments in the pipeline. 

The unique government support we have received has reinforced our conviction that Saudi Arabia is positioned to become a global Web3 hub. This investment represents our long-term commitment to fostering innovation and supporting the local ecosystem.

In your opinion, what are the unique opportunities that blockchain and Web3 technologies offer in Saudi Arabia?

Saudi Arabia presents unique opportunities for blockchain and Web3 technologies, particularly in solving real-world challenges. Let me share some concrete examples from our portfolio with the disclaimer that the list is non-exhaustive: 

We have invested in TGE, which is revolutionizing carbon offsetting by connecting carbon offsetters with local nurseries and land projects via blockchain technology, directly supporting Saudi Arabia's ambitious goal of planting 10 billion trees by 2040. 

In the sports sector, we have backed Grintafy, which is transforming football talent discovery through blockchain technology, serving over 2 million users across its ecosystem.

We are also seeing great potential in projects like Mithu App, which addresses the underserved loyalty program market in Riyadh, where only 2.5% of restaurants currently offer such programs. 

Similarly, solutions like UmrahCash demonstrate how blockchain can revolutionize financial services for the 21 million migrant workers and religious visitors in Saudi Arabia.

What makes Saudi Arabia particularly exciting for Web3 development is the strong government support for technology innovation, combined with the Kingdom's strategic position and vision for digital transformation.

These opportunities align perfectly with our focus on practical applications that drive mass adoption. The diversity of use cases, from environmental sustainability to sports tech to financial services, shows how Web3 can create real value across multiple sectors in the Saudi economy.

What key challenges has Adaverse faced in adopting blockchain technologies in the Kingdom, and how has the company tackled them?

The key challenges we have faced primarily revolve around achieving mass adoption and educating the market about Web3's potential. While blockchain technology is still consolidating its foundations, we have tackled these challenges by focusing on projects that address tangible problems. Our approach has been to invest in startups that make blockchain technology accessible and practical for everyday users. We have also worked closely with regulatory bodies and government institutions to ensure our initiatives align with local requirements. 

What are the company’s strategic plans for further expansion in Saudi Arabia and the region?

Our strategic plans for expansion in Saudi Arabia and the region focus on three key areas. First, we are continuing to identify and invest in promising Web3 startups that solve real-world problems. Second, we are actively building partnerships with local institutions and government bodies to strengthen the ecosystem. 

Third, we are organizing events and initiatives to promote Web3 adoption locally and connect valuable investment and market resources internationally.

We are particularly excited about upcoming projects in the social network and real estate markets, which we believe have significant potential in the region. Our strategy remains aligned with our long-term perspective of supporting persistent founders and nurturing projects over time.

How do you see the long-term impact of Web3 technologies on Saudi Arabia's economic and social landscape?

Looking at the long-term impact of Web3 technologies on Saudi Arabia's landscape, I believe we are at the beginning of a transformative journey. Based on our experience across multiple markets, we see Web3 playing a crucial role in achieving Saudi Vision 2030's goals. The technology will enable new models of value exchange, enhance transparency in various sectors, and create new economic opportunities. We are already seeing this impact through our portfolio companies, which are addressing real challenges in areas like financial services, loyalty programs, and digital asset management. The key is to focus on practical applications that can drive mass adoption and create tangible value for the Saudi economy. 

How does Adaverse contribute to the development of a vibrant Web3 community in Saudi Arabia?

Adaverse contributes to the Web3 community development through multiple strategic initiatives. Most recently, we released our landmark report, "State of Web3 in Saudi Arabia," which serves as a comprehensive guide for entrepreneurs, investors, and talent looking to participate in the Kingdom's Web3 ecosystem. The report highlights tremendous opportunities in sectors like gaming, fintech, e-commerce, and proptech, demonstrating our commitment to building knowledge in the ecosystem.

Beyond research, we actively organize events and knowledge-sharing sessions, bringing together founders, investors, and technology enthusiasts. We work closely with local institutions to create opportunities for collaboration and innovation. 

Our approach is not just about providing capital – we are helping to shape Saudi Arabia's transformation into a tech-driven powerhouse by building alliances and partnerships that strengthen the entire ecosystem. Through these efforts, we are positioning the Kingdom as a premier destination for Web3 innovation, attracting both local and international talent to contribute to this growing community.

What are Adaverse’s plans to nurture Saudi talent in the blockchain and Web3 space?

During our extensive research for the "State of Web3 in Saudi Arabia”, one of the key findings was that we need more Web3 talent in Saudi, and we are committed to helping achieve that! We are implementing a multi-faceted approach that encourages young entrepreneurs to be curious and experimental with frontier technologies. 

First, we are creating opportunities for hands-on experience through our portfolio companies, where Saudi talent can join startups and immerse themselves in the ecosystem. 

Second, we have a plan to develop partnerships with local educational institutions and tech hubs to provide training and mentorship programs. 

As I often tell aspiring youth in the Web3 landscape, do not be afraid to experiment, fail, and learn from your experiences. 

This practical approach, combined with our long-term commitment to the region, will help develop the next generation of Web3 innovators in Saudi Arabia. The key is to empower local talent by asking questions rather than giving assignments, maintaining our philosophy of partnership-based growth.

Kholoud Hussein 

As sustainability becomes a critical priority for businesses worldwide, integrating Environmental, Social, and Governance (ESG) principles transforms the financial sector. For Saudi Arabia, where Vision 2030 emphasizes sustainable economic growth, financial institutions increasingly turn to artificial intelligence (AI) to align their strategies with ESG goals. By enabling better reporting, transparency, and green financing, AI is helping these institutions create a more sustainable and socially responsible financial ecosystem.

This final installment in our blog series explores how AI is supporting ESG objectives in Saudi Arabia’s financial market. From advanced tools for reporting to real-world applications, we’ll highlight the transformative potential of AI in fostering a greener and more equitable financial future.

1. Aligning ESG Goals with AI in Saudi Arabia

Saudi financial institutions are embracing AI to seamlessly integrate ESG considerations into their operations and investment decisions.

Meeting Sustainability Goals through AI

AI provides financial institutions with the tools to measure, analyze, and improve their sustainability performance.

• Environmental Impact Analysis: AI helps organizations assess their carbon footprint by analyzing data across operations, supply chains, and investments.
• Social Responsibility Metrics: Advanced algorithms evaluate labor practices, community engagement, and diversity policies, enabling institutions to monitor and improve their social impact.
• Governance Insights: AI systems enhance governance practices by analyzing board structures, compliance adherence, and corporate ethics.

Alignment with Global ESG Frameworks

AI-driven platforms enable Saudi institutions to align with global ESG standards, such as the United Nations’ Sustainable Development Goals (SDGs) and the Task Force on Climate-related Financial Disclosures (TCFD). These tools ensure financial activities contribute to sustainable development while maintaining compliance with international benchmarks.

2. AI-Powered Tools for ESG Reporting and Green Financing

AI is revolutionizing ESG reporting and green financing, empowering financial institutions to deliver on their sustainability promises effectively.

Advanced ESG Reporting Tools

Traditional ESG reporting can be time-consuming and prone to inconsistencies. AI-powered solutions streamline this process by automating data collection, analysis, and presentation.

• Data Integration: AI systems consolidate data from diverse sources, including corporate reports, satellite imagery, and IoT sensors, to provide a holistic view of ESG performance.
• Real-Time Monitoring: AI tracks key ESG metrics in real-time, enabling institutions to identify risks and opportunities more quickly.
• Predictive Analytics: By analyzing historical data, AI can predict ESG trends and guide strategic decision-making.

Green Financing Enablement

Green financing, including funding for renewable energy projects and sustainable infrastructure, is a key pillar of ESG efforts. AI facilitates this by:

• Risk Assessment: AI evaluates the financial and environmental risks of green investments, ensuring projects align with both profitability and sustainability criteria.
• Project Selection: AI algorithms prioritize green projects based on their ESG impact and feasibility.
• Attracting Investors: Transparent AI-driven reports attract ESG-conscious investors by providing detailed insights into project sustainability.

3. Promoting Transparency in Investments Through AI-Driven Analytics

Transparency is a cornerstone of ESG-focused investing, and AI is playing a critical role in fostering it across Saudi Arabia’s financial sector.

Enhanced Due Diligence

AI-powered tools perform thorough due diligence by analyzing vast datasets, including financial reports, environmental impact statements, and media coverage.

• These tools identify greenwashing (misleading claims about sustainability) by detecting discrepancies between stated goals and actual performance.
• Machine learning models flag companies with poor ESG compliance, helping investors avoid reputational and financial risks.

Investor Confidence Through Transparency

By providing detailed and verifiable insights into ESG performance, AI builds investor confidence.

• Portfolio Optimization: AI-driven platforms recommend ESG-compliant investments, allowing asset managers to build portfolios that align with sustainability goals.
• Impact Measurement: AI tracks the social and environmental impact of investments, ensuring alignment with both financial and ethical objectives.

4. Examples of ESG-Focused AI Applications in Saudi Arabia

Saudi Arabia’s financial market is already witnessing the transformative impact of AI in advancing ESG initiatives.

Renewable Energy Financing

AI is aiding financial institutions in evaluating and funding renewable energy projects such as solar and wind farms.

• Advanced algorithms assess project feasibility, environmental impact, and long-term profitability, ensuring sustainable investments.
• For example, a Saudi renewable energy fund used AI to optimize its portfolio, achieving higher returns while reducing carbon emissions.

AI-Powered ESG Indexing

Some Saudi investment platforms have introduced AI-powered ESG indices that rank companies based on their sustainability performance.

• These indices help investors identify top-performing ESG-compliant firms, driving capital toward responsible businesses.

Smart Supply Chain Management

Financial institutions are leveraging AI to support companies in adopting sustainable supply chain practices.

• AI tools monitor supplier compliance with ESG standards, promoting ethical sourcing and reducing environmental impact.

5. AI and ESG: A Perfect Partnership for Vision 2030

Saudi Arabia’s Vision 2030 underscores the importance of sustainability and innovation in driving long-term economic growth. AI’s role in advancing ESG goals is perfectly aligned with these ambitions.

• By leveraging AI, Saudi financial institutions are not only meeting global sustainability standards but also positioning themselves as leaders in ethical finance.
• The integration of AI and ESG frameworks supports Vision 2030’s objectives of reducing carbon emissions, fostering social responsibility, and enhancing economic governance.

Looking Ahead: A Sustainable Financial Future

As Saudi Arabia’s financial institutions continue to embrace AI for ESG integration, the future of sustainable finance looks brighter than ever. However, the journey is ongoing, and challenges such as data availability, regulatory alignment, and cultural shifts must be addressed.

The completion of this blog series marks the beginning of broader conversations about how AI can redefine financial services in Saudi Arabia and beyond. By prioritizing ESG goals and leveraging cutting-edge technology, Saudi Arabia is setting a global benchmark for innovation in sustainable finance.

To conclude, AI is revolutionizing ESG adoption in Saudi Arabia’s financial market by enabling robust reporting, promoting transparency, and driving green financing initiatives. Through real-world applications and alignment with global frameworks, financial institutions are achieving both ethical and economic objectives.

As we conclude this series, one thing is clear: AI is not just a tool for transformation—it is the foundation for building a sustainable, transparent, and inclusive financial ecosystem. Saudi Arabia’s commitment to innovation and sustainability ensures that its financial sector will continue to thrive while contributing to a better future for all.

Kholoud Hussein 

The fintech revolution is reshaping financial services globally, and Saudi Arabia is at the forefront of this transformation in the MENA region. Central to this evolution is the adoption of artificial intelligence (AI), which has become a driving force behind financial inclusion and innovation in the Kingdom. By enhancing payment systems, personal finance management, and lending solutions, AI is enabling fintech startups to address gaps in traditional banking and empower underserved populations.

This blog explores how Saudi fintech startups are leveraging AI to revolutionize financial services, the role of government initiatives in fostering innovation, and the synergies between fintech firms and traditional banks. It also sets the stage for our next discussion on AI’s role in supporting ESG (Environmental, Social, and Governance) goals for financial institutions.

1. How Saudi Fintech Startups Leverage AI

AI is the engine powering many of Saudi Arabia’s fintech innovations, allowing startups to create tailored solutions that address market demands.

AI in Payments

Saudi fintech startups are revolutionizing payment systems by integrating AI into their platforms. AI-driven payment gateways provide real-time fraud detection, seamless cross-border transactions, and personalized customer experiences. For instance:

• AI-powered tools analyze transaction patterns to prevent fraud while ensuring smooth payment processing.
• Digital wallets like stc pay utilize AI to enhance user convenience and optimize transaction efficiency.

AI in Lending

Traditional lending processes often exclude underserved populations due to stringent credit requirements. AI is changing this dynamic by leveraging alternative data for credit scoring.

• AI algorithms use data such as utility payments, mobile usage, and behavioral patterns to assess creditworthiness.
• Platforms like Raqamyah provide micro-loans to small businesses and individuals, offering faster approval processes and flexible terms.

AI in Personal Finance Management

AI-driven tools are empowering Saudi citizens to take control of their finances. These include budgeting apps, expense trackers, and investment advisors.

• Chatbots and robo-advisors provide personalized financial guidance based on user spending patterns.
• Predictive analytics help users anticipate financial needs and create savings plans.

2. Improving Access to Financial Services for Underserved Populations

One of the most transformative aspects of AI in fintech is the ability to improve financial inclusion. In Saudi Arabia, AI is breaking down barriers that have traditionally excluded low-income individuals, women, and small businesses from accessing financial services.

Empowering the Unbanked and Underbanked

• Digital wallets and mobile banking platforms powered by AI enable unbanked individuals to participate in the financial system without needing a traditional bank account.
• AI tools facilitate micro-financing options for rural entrepreneurs, allowing them to grow their businesses with minimal bureaucracy.

Promoting Gender Inclusion

• Fintech platforms tailored for women entrepreneurs are leveraging AI to assess loan applications based on alternative data, sidestepping biases often found in traditional credit evaluations.
• AI-powered mentoring and networking apps connect women-led startups with funding opportunities and investors.

3. Collaboration Between Fintech Firms and Traditional Banks

The collaboration between fintech startups and traditional banks in Saudi Arabia has created a synergistic ecosystem where AI plays a pivotal role.

Enhancing Digital Banking Solutions

Traditional banks, recognizing the potential of fintech innovations, are partnering with startups to co-develop AI-driven solutions.

• Open Banking Initiatives: AI-powered open banking platforms enable secure data sharing between banks and fintech firms, fostering innovation in personalized services.
• Digital-First Banks: Partnerships have given rise to fully digital banks, such as Liv. by Emirates NBD, which leverage AI for enhanced customer experiences.

Optimizing Operations

Banks use AI-driven fintech solutions to streamline internal processes:

• Chatbots handle customer queries, reducing operational costs.
• Machine learning models optimize credit underwriting and risk assessment.

4. Government Initiatives and Support for AI-Driven Fintech Growth

Saudi Arabia’s fintech ecosystem is thriving, thanks to robust government support and strategic initiatives aimed at fostering innovation.

Fintech Saudi Initiative

Launched by the Saudi Arabian Monetary Authority (SAMA), Fintech Saudi catalyzes the sector’s growth. It provides:

• Regulatory sandboxes for testing AI-powered fintech solutions in a controlled environment.
• Educational programs to nurture local talent and build a skilled workforce.

Vision 2030 and Funding Opportunities

• Vision 2030 emphasizes the diversification of the economy, with fintech as a core pillar. Government-backed funds like Saudi Venture Capital Company (SVC) and Monsha’at are providing financial support to startups integrating AI into their business models.
• Programs such as the Digital Government Authority’s AI Accelerator encourage innovation in financial services.

Global Investments and Partnerships

Saudi Arabia’s proactive approach to fintech has attracted global investors and partners, further fueling AI adoption.

The Road Ahead: AI in Fintech

AI’s transformative potential in fintech is only beginning to unfold in Saudi Arabia. As startups continue to innovate, they will play a pivotal role in shaping a more inclusive and efficient financial ecosystem. The synergy between cutting-edge technology, government support, and market demand positions Saudi Arabia as a regional leader in fintech innovation.

However, as AI becomes more integrated into financial services, its role in sustainability and social responsibility cannot be overlooked. Fintech firms and financial institutions must align their innovations with ESG (Environmental, Social, and Governance) goals to ensure long-term impact.

Looking Ahead: AI and ESG Goals for Financial Institutions

In our next blog, we will explore how AI is enabling financial institutions in Saudi Arabia to meet their ESG commitments. From assessing the sustainability of investments to promoting socially responsible practices, AI is helping create a greener, more ethical financial ecosystem.

Finally, AI is revolutionizing fintech in Saudi Arabia, driving financial inclusion, innovation, and collaboration between startups and traditional banks. By leveraging AI for payments, lending, and personal finance management, fintech firms are addressing the unique needs of underserved populations. Coupled with government initiatives and funding, the Kingdom’s fintech sector is poised for exponential growth.

As we move forward in our series, the intersection of AI and ESG goals will reveal how technology can align financial services with sustainability and ethical practices. This pivotal conversation will highlight AI’s role in creating a more responsible and forward-thinking financial sector.

Kholoud Hussein 

As artificial intelligence (AI) continues to revolutionize financial services worldwide, Saudi Arabia is at the forefront of integrating this transformative technology into its financial ecosystem. AI’s potential to optimize operations, enhance customer experiences, and bolster risk management has been widely recognized. However, its rapid adoption presents unique regulatory challenges that must be carefully addressed to ensure ethical, secure, and compliant implementation.

Saudi regulators, particularly the Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA), are tasked with striking a delicate balance: fostering innovation while safeguarding data privacy, ethical standards, and regulatory compliance. This blog explores the regulatory landscape governing AI in Saudi Arabia’s financial sector, the opportunities it presents, and recommendations for fostering a secure and innovation-friendly environment.

1. SAMA and CMA: Pioneering AI Regulation in Financial Services

Saudi Arabia’s financial regulators play a pivotal role in creating an environment where AI can thrive responsibly.

SAMA’s Role in AI Adoption

SAMA has actively encouraged digital transformation across the banking and financial sectors, promoting AI adoption through regulatory frameworks prioritizing innovation and security.

• SAMA’s Fintech Saudi Initiative supports startups in integrating AI into financial services, enabling advancements in digital payments, lending, and fraud detection.
• The authority has also issued guidelines to ensure AI applications in banking adhere to cybersecurity standards and data protection laws.

CMA’s Oversight in the Capital Markets

The CMA focuses on AI’s integration within Saudi Arabia’s capital markets, emphasizing transparency, accountability, and investor protection.

• It oversees AI’s use in algorithmic trading, risk assessment, and portfolio management, ensuring compliance with market integrity standards.
• CMA’s initiatives aim to protect retail and institutional investors while enabling AI-driven innovations to flourish.

By fostering a supportive yet vigilant regulatory environment, SAMA and CMA are laying the groundwork for sustainable AI integration in financial services.

2. Balancing Innovation with Data Privacy, Ethical AI, and Regulatory Compliance

The adoption of AI in financial services presents significant opportunities, but it also raises critical concerns about data privacy, ethical use, and compliance.

Data Privacy Challenges

AI systems rely on vast amounts of data, raising questions about how customer information is collected, stored, and processed.

• Saudi Arabia’s Personal Data Protection Law (PDPL) outlines stringent requirements for data privacy, ensuring that financial institutions prioritize transparency and customer consent.
• Compliance with these regulations is vital for maintaining trust in AI-powered financial services.

Ethical AI Concerns

Ensuring that AI systems operate without bias or unethical outcomes is a growing challenge.

• Regulators are advocating for AI models that are explainable, auditable, and free from discrimination.
• Financial institutions must adopt frameworks that assess AI’s ethical impact and mitigate unintended consequences, such as biased credit scoring or investment recommendations.

Navigating Regulatory Compliance

Financial institutions must align their AI initiatives with existing and emerging regulations, which can be complex and resource-intensive.

• Proactive engagement with regulators and participation in sandbox programs, like those offered by SAMA, can help institutions test AI applications within a controlled, compliant environment.

Balancing these priorities is essential to creating an AI-driven financial ecosystem that is both innovative and trustworthy.

3. The Role of the NSDAI in Shaping AI Regulation

Saudi Arabia’s National Strategy for Data and AI (NSDAI) provides a comprehensive framework for AI governance, setting the tone for responsible AI adoption in the financial sector.

NSDAI’s Core Objectives

• Positioning Saudi Arabia as a Global AI Leader: The NSDAI aims to place the Kingdom among the top nations in AI readiness and application.
• Encouraging Collaboration: By fostering partnerships between the public and private sectors, the NSDAI promotes the development of AI solutions tailored to local needs.
• Establishing Ethical Guidelines: The strategy prioritizes ethical AI principles, ensuring fairness, transparency, and accountability in AI applications.

Impact on the Financial Sector

Under the NSDAI, financial institutions are encouraged to adopt AI while adhering to best practices in governance, risk management, and data security. This approach creates a strong foundation for innovation while mitigating potential risks.

4. Recommendations for Fostering a Safe and Innovative AI Ecosystem

To fully harness AI’s potential in financial services, Saudi Arabia must address key regulatory and operational challenges. Below are recommendations for fostering a secure and dynamic AI ecosystem:

1. Enhance Regulatory Collaboration

• Establish a regular dialogue between financial institutions, tech companies, and regulators to address emerging AI trends and challenges.
• Expand regulatory sandbox initiatives to test innovative AI solutions in a controlled, compliant environment.

2. Invest in Education and Workforce Development

• Promote AI literacy and upskill financial professionals to work alongside AI technologies.
• Collaborate with academic institutions to develop AI-focused programs that prepare the next generation of financial professionals.

3. Strengthen Ethical Oversight

• Implement clear guidelines for ethical AI, including requirements for explainability, transparency, and bias prevention.
• Create an independent body to audit AI systems and ensure compliance with ethical and regulatory standards.

4. Encourage Data Sharing with Security

• Develop frameworks for secure and anonymized data sharing to enhance AI models without compromising customer privacy.
• Incentivize data collaboration among financial institutions to improve fraud detection and risk assessment.

5. Leverage Emerging Technologies

• Integrate AI with blockchain to enhance transparency and security in financial transactions.
• Utilize predictive analytics for proactive fraud prevention and risk management.

By addressing these areas, Saudi Arabia can build a financial ecosystem that is not only innovative but also secure and aligned with global best practices.

Looking Ahead: AI in Fintech

As AI reshapes traditional financial services, its role in fintech is even more pronounced. In our next blog, we will explore how AI is driving financial inclusion and innovation in Saudi Arabia’s burgeoning fintech sector. From expanding access to underserved populations to enabling cutting-edge payment solutions, AI is unlocking new opportunities for growth and empowerment.

Finally, Saudi Arabia’s financial sector stands at the crossroads of innovation and regulation, with AI serving as a transformative force. By aligning regulatory frameworks with ethical principles and fostering collaboration, the Kingdom is creating a resilient, forward-thinking financial ecosystem.

As we move forward in this series, we will delve into AI’s role in fintech, examining how it is breaking barriers, enhancing inclusion, and driving the next wave of innovation in Saudi Arabia’s financial landscape.

Stay tuned for this exciting discussion in the next installment of our AI in Financial Services series.

Kholoud Hussein 

As Saudi Arabia’s financial sector undergoes rapid digital transformation, the need for robust cybersecurity has never been greater. The increased reliance on online banking, digital payments, and wealth management platforms has created new opportunities for innovation and new vulnerabilities. Fraud, identity theft, and cyberattacks pose significant threats to the financial ecosystem, demanding advanced solutions to safeguard institutions and customers alike.

This is where artificial intelligence (AI) comes into play. By leveraging machine learning, pattern recognition, and real-time analytics, AI is revolutionizing fraud detection and cybersecurity in Saudi Arabia’s financial services industry. This fifth blog in our series explores how AI enhances security, paving the way for the next discussion on AI’s transformative role in the insurance sector.

1. The Growing Need for AI in Fraud Detection

The financial sector in Saudi Arabia has seen a surge in digital transactions, driven by Vision 2030’s emphasis on financial inclusion and innovation. However, this growth has also expanded the attack surface for cybercriminals.

Key Challenges:

• Sophisticated Cyber Threats: Cybercriminals are using advanced techniques like phishing, ransomware, and social engineering to exploit vulnerabilities.
• Volume of Transactions: The sheer number of digital transactions makes manual monitoring impractical.
• Evolving Fraud Tactics: Traditional rule-based systems struggle to keep up with new and complex fraud methods.

AI addresses these challenges by enabling proactive, scalable, and adaptive fraud detection mechanisms.

2. How AI Detects and Prevents Fraud

AI enhances fraud detection by analyzing massive datasets in real-time, identifying anomalies, and predicting potential threats.

Applications of AI in Fraud Detection:

• Anomaly Detection: Machine learning algorithms monitor transaction patterns and flag deviations that may indicate fraud, such as unusual spending behaviors or location changes.
• Behavioral Biometrics: AI tracks user behavior, such as typing speed or navigation patterns, to detect unauthorized access attempts.
• Real-Time Alerts: AI systems provide instant alerts to financial institutions when suspicious activities occur, enabling swift responses.
• Deep Learning for Pattern Recognition: Advanced AI models identify patterns across large datasets to detect coordinated fraud schemes.

3. Strengthening Cybersecurity with AI

AI not only detects fraud but also enhances overall cybersecurity by identifying vulnerabilities and fortifying defenses.

AI-Powered Cybersecurity Measures:

• Threat Intelligence: AI tools analyze global cyber threat data to predict and prevent attacks before they happen.
• Adaptive Authentication: AI systems dynamically adjust authentication requirements based on risk levels, such as requesting additional verification for high-risk transactions.
• Incident Response Automation: AI accelerates responses to cyber incidents, minimizing damage and recovery time.

4. Challenges in Implementing AI for Cybersecurity

While AI offers immense potential, its implementation is not without challenges:

• Data Privacy: Ensuring AI systems comply with Saudi regulations, such as the Personal Data Protection Law (PDPL), is critical.
• Cost of Implementation: Advanced AI systems require significant investment in technology and expertise.
• Adversarial AI: Cybercriminals are also leveraging AI to develop more sophisticated attacks, creating an ongoing arms race.

5. The Future of Fraud Detection in Saudi Arabia

• AI and Blockchain Integration

Combining AI with blockchain technology can further enhance fraud detection by creating transparent, tamper-proof transaction records.

• Predictive Analytics for Proactive Security

AI will increasingly shift from reactive measures to predictive analytics, anticipating fraud before it occurs.

• Collaboration Across Sectors

Financial institutions, government bodies, and tech providers will need to collaborate to build a unified defense against cyber threats.

AI’s Role in Vision 2030’s Cybersecurity Goals

AI’s contribution to fraud detection aligns with Vision 2030’s objectives of creating a resilient and secure financial ecosystem. By fostering trust in digital financial services, AI supports the Kingdom’s broader goals of innovation, inclusion, and global competitiveness.

Looking Ahead: AI in Insurance

As AI strengthens cybersecurity and fraud detection in financial services, its transformative potential extends to the insurance sector. From personalized policies to automated claims processing, AI is redefining how insurers operate and serve their customers. In the next blog, we will explore AI in insurance and its role in shaping a new paradigm for the industry.

In conclusion, AI is revolutionizing fraud detection and cybersecurity in Saudi Arabia’s financial sector, creating a safer and more trustworthy environment for customers and institutions alike. By detecting threats in real-time, enhancing security measures, and staying ahead of evolving fraud tactics, AI is a critical enabler of financial resilience.

Stay tuned for our next blog, where we explore how AI is driving innovation and efficiency in the insurance industry, creating a smarter, more personalized future for policyholders.

Kholoud Hussein 

Wealth management in Saudi Arabia is undergoing a significant transformation, driven by artificial intelligence (AI). With Vision 2030’s emphasis on financial empowerment and the growth of individual wealth, AI has become a cornerstone of this evolution, enabling smarter investment strategies, personalized advisory services, and more inclusive access to financial tools. By leveraging AI, wealth managers in the Kingdom are enhancing decision-making and reshaping the industry to cater to a digital-first generation.

In this fourth blog of our series, we explore how AI is revolutionizing wealth management in Saudi Arabia, setting the stage for our next discussion on AI in fraud detection and cybersecurity.

1. The Role of AI in Modern Wealth Management

AI redefines wealth management by integrating data analysis, automation, and predictive modeling into decision-making processes. In Saudi Arabia, where demand for innovative financial solutions is rising, AI has become a critical enabler of growth and efficiency.

Key Applications of AI in Wealth Management

Personalized Investment Strategies: AI-driven platforms analyze an individual’s financial history, goals, and risk appetite to create tailored investment portfolios.

Predictive Analytics for Market Trends: Machine learning models evaluate historical and real-time data to predict market movements, allowing wealth managers to make informed decisions.

Robo-Advisors: AI-powered advisors are democratizing access to wealth management services, particularly appealing to tech-savvy younger generations.

2. Enhancing Decision-Making Through AI

Smarter Portfolio Management

AI tools help wealth managers optimize portfolios by identifying the best asset allocation strategies based on real-time market conditions. These systems can evaluate thousands of scenarios within seconds, enabling data-driven decisions.

Improved Risk Management

AI enables wealth managers to assess risks more effectively by analyzing complex datasets, including geopolitical events, macroeconomic indicators, and client-specific risks.

3. Expanding Access to Wealth Management

Traditionally, wealth management services were reserved for high-net-worth individuals (HNWIs). AI is breaking this barrier by offering affordable, scalable solutions to a broader audience.

Robo-Advisors for the Mass Market: Platforms like robo-advisors provide automated investment services, offering low-cost options for Saudi Arabia’s growing middle class.

Financial Education Tools: AI chatbots and tools guide users through investment basics, fostering financial literacy and inclusion.

4. Challenges and Opportunities in AI-Driven Wealth Management

Challenges:

• Data Privacy: Safeguarding sensitive financial information remains a top priority.
• Adoption Barriers: Traditional wealth managers may resist adopting AI tools due to unfamiliarity or perceived complexity.
• Regulatory Hurdles: Ensuring AI systems comply with local financial regulations is crucial for long-term success.

Opportunities:

AI Integration with ESG Investing: AI can evaluate environmental, social, and governance (ESG) criteria, allowing wealth managers to align portfolios with sustainability goals.

Enhanced Client Engagement: AI tools can deliver hyper-personalized experiences, fostering stronger relationships between wealth managers and clients.

The Future of Wealth Management in Saudi Arabia

The integration of AI into wealth management is not just a trend—it is the future. With a tech-savvy population and government support, Saudi Arabia is well-positioned to become a leader in AI-driven wealth management. Institutions that embrace these technologies will gain a competitive edge, offering smarter, faster, and more accessible solutions.

As wealth managers focus on innovation, the next frontier lies in addressing security challenges. With the increasing reliance on digital platforms, the risk of cyber threats and fraud has risen. In our next blog, we will explore how AI is revolutionizing fraud detection and strengthening cybersecurity in Saudi Arabia’s financial services sector.

Finally, AI is transforming wealth management in Saudi Arabia by enhancing decision-making, personalizing services, and expanding access to financial tools. These advancements not only empower individuals but also support Vision 2030’s goal of creating a robust, inclusive financial ecosystem.

Stay tuned as we delve into the critical role AI plays in safeguarding the financial sector through advanced fraud detection and cybersecurity measures in the next installment of our series.

Noha Gad 

The education technology (edtech) sector in Saudi Arabia is undergoing a remarkable transformation, closely aligned with Vision 2030’s digital transformation goal. Recognizing the critical role of technology in enhancing educational outcomes, the Saudi government has implemented various initiatives and policies to attract local and international investors.

Key players in the edtech industry such as Noon Academy, Nokhbah Academy, Sprints, and others launched their operations in the Kingdom, backed by the government’s efforts to modernize the education system by supporting innovative solutions such as online learning platforms, virtual classrooms, and adaptive learning technologies.

Sprints, a leading Egyptian edtech company with a strong presence in Saudi Arabia, leverages artificial intelligence (AI) to redefine the future of education in the Middle East and North Africa (MENA) region, ultimately bridging the tech talent gap in the region by preparing qualified talent for the labor market with a guaranteed hiring program.

Sharikat Mubasher had an interview with Sprints’ Co-founder and Chief Strategy Officer Bassam Sharkawy, a passionate entrepreneur with over 13 years of experience in the software industry, to learn more about the company’s pivotal role in revolutionizing the edtech sector, regional and global expansions, and its future plans.

First, how do Sprints’ services revolutionize the edtech industry and transform the tech talent landscape? 

A key unique characteristic of Sprints is our AI-powered platform that creates a real working environment simulation. Our learners do not just study - they work in teams, have daily meetings, and use actual task management systems. We have implemented AI coaching that acts as senior mentors, and we even have AI-simulated customers sending emails to help develop practical skills. What really sets us apart is our social learning approach - while typical MOOCs see only 5-10% completion rates, our social learning methods boost this to 80-90%.

Secondly, it is the fact that employment is in our DNA. We started with guaranteed hiring boot camps, evolving into an outstaffing service that connects global clients with high-performing African teams. With over 100,000 tech professionals on our platform, we offer a win-win:

• For employers, we deliver reliable teams while managing all legal, tax, and payroll complexities, making the process seamless and hassle-free.
• For talent, it means global projects, competitive salaries, job stability, and benefits like medical insurance.

In March, Sprints raised $3mn in a bridge round to expand into 10 new markets. Can you share more about the company’s plans to broaden business in the GCC region?

We are already active in Egypt, Saudi Arabia, Oman, and Jordan, where we collaborate with governments and private entities to equip the next generation with essential tech skills, including AI, cybersecurity, digital marketing, and more.

In the UAE, for instance, we partnered with the Abdulla Al Ghurair Foundation to train 130 Emirati cybersecurity engineers. Building on the success of this program, we plan to scale it up to 1,000 engineers by 2025. 

What are the company’s global expansion plans? 

We are proud to have clients in six countries that are tech leaders, including the US, Canada, Germany, Ireland, Switzerland, and New Zealand. Next year, we will open a new funding round tackling 20 countries.

Sprints aspires to educate 1 billion learners in 10 years. How will the company achieve this goal?

We are 100% committed to this ambitious goal of educating 1 billion learners in 10 years and plan to achieve that through AI, automation, and personalized learning. We are creating adaptive learning experiences where everyone has their own individualized journey that takes them up, depending on their level. The key is that no two learners follow the same path - each person's experience is tailored to their pace, style, and capabilities.

Through social learning, we are motivating people to complete their courses, which has dramatically improved our completion rates from the typical 5-10% seen in traditional online courses to 80-90%. AI is revolutionizing the way we learn, and it is going to continue doing that for the next decade.

What makes our approach particularly powerful is our focus on matching learners with global employers. This is not just about education; it is about creating real career opportunities. By combining AI-powered learning with actual job placement, we are creating a sustainable ecosystem that can truly scale to reach our billion-learner goal.

In your opinion, what does MENA’s edtech sector need to thrive? and how Sprints tackles tech-workforce challenges?

The MENA region's edtech sector faces unique challenges, particularly in North Africa. The fundamental issue is purchasing power as many talented individuals cannot access high-quality education. While government support exists, it needs to be dramatically scaled to meet the growing demand for tech talent.

What is exciting is how we are tackling these challenges head-on. We are bridging the critical gap between education and employment through a multi-faceted approach. First, we are actively collaborating with governments across Africa to create supportive frameworks. Second, we are working with companies to increase their confidence in outsourcing to local talent. And third, we are opening up global remote work opportunities that previously seemed out of reach.

One of our proudest achievements is our focus on female talent development. This is not just about equality; it is about unlocking the full potential of our region. By bringing more women into tech, we are not only addressing the talent shortage but also creating new sources of foreign currency income through IT exports. 

Kholoud Hussein 

Islamic finance, rooted in Sharia-compliant principles, is a cornerstone of Saudi Arabia’s financial ecosystem and a critical driver of the global Islamic economy. As the Kingdom embraces digital transformation under Vision 2030, artificial intelligence (AI) is emerging as a transformative force in Islamic finance. By streamlining operations, enhancing compliance, and fostering innovation, AI is redefining how financial institutions navigate ethical frameworks to deliver efficient and compliant financial solutions.

This third blog in our series explores the intersection of AI and Islamic finance in Saudi Arabia, highlighting how technology aligns with Sharia principles to unlock new opportunities.

The Role of AI in Transforming Islamic Finance

1. Automating Compliance with Sharia Principles

One of the most significant challenges in Islamic finance is ensuring that financial products and services adhere to Sharia law. AI simplifies and accelerates this process by automating compliance checks.

• Smart Contracts: AI and blockchain-based smart contracts ensure transparency and compliance by executing financial agreements automatically when all conditions meet Sharia requirements.
• Natural Language Processing (NLP): AI-powered NLP tools analyze contracts and legal documents to ensure they align with Islamic guidelines, reducing the time and cost of manual reviews.
• Regulatory Reporting: AI systems streamline the process of documenting and reporting compliance with Sharia standards to regulators, enhancing trust and efficiency.

Example:
A Saudi financial institution implemented an AI-driven compliance tool to evaluate Sukuk (Islamic bonds), ensuring they met ethical requirements while reducing approval times by 30%.

2. Enhancing Sukuk Issuance and Management

Saudi Arabia is a global leader in the issuance of Sukuk, a vital instrument in Islamic finance. AI is playing a pivotal role in optimizing this process.

• Risk Assessment: Machine learning models evaluate market conditions and issuer creditworthiness, offering real-time insights to structure Sukuk offerings effectively.
• Investor Matching: AI algorithms match Sukuk issuers with investors based on risk tolerance, investment goals, and ethical preferences, streamlining the fundraising process.
• Lifecycle Management: AI-powered platforms monitor Sukuk's performance, ensuring timely repayments and compliance throughout the lifecycle of the bond.

3. Personalizing Financial Products

AI enables Islamic banks in Saudi Arabia to deliver highly personalized financial products that meet customer needs while adhering to Sharia principles.

• Robo-Advisors: AI-driven robo-advisors provide tailored investment recommendations for Islamic portfolios, ensuring ethical compliance while maximizing returns.
• Data-Driven Insights: AI analyzes customer preferences and behavior to design custom savings accounts, home financing options, and Halal investment opportunities.

Real-World Impact:
A leading Saudi Islamic bank integrated AI into its product design process, creating personalized investment portfolios that increased customer satisfaction by 40%.

Challenges in Integrating AI with Islamic Finance

1. Ethical Dilemmas

AI applications must operate within strict ethical guidelines to ensure alignment with Islamic principles, avoiding activities like speculation (Gharar) or interest (Riba).

2. Lack of Standardization

While AI systems excel in automation, the lack of universal Sharia standards can create challenges for global implementation.

3. Data Privacy Concerns

AI relies on vast amounts of data, raising concerns about customer privacy and compliance with local regulations in Saudi Arabia.

Opportunities for Growth

1. Expanding Financial Inclusion

AI-driven platforms can bring Islamic financial services to underbanked populations in Saudi Arabia, including rural communities and small businesses.

2. Supporting ESG Goals

AI tools can evaluate investments' environmental, social, and governance (ESG) impact, enabling Islamic financial institutions to align with sustainable development goals while remaining compliant with Sharia law.

3. Accelerating Innovation

By reducing costs and improving efficiency, AI empowers Islamic financial institutions to innovate and compete in a rapidly evolving global market.

AI’s Alignment with Vision 2030

The integration of AI into Islamic finance aligns perfectly with Saudi Arabia’s Vision 2030 goals:

• Economic Diversification: AI enables the Islamic finance sector to expand beyond traditional markets, driving growth and innovation.
• Digital Transformation: Advanced AI systems modernize Islamic banking operations, making them more competitive globally.
• Empowering Women and Youth: AI-driven platforms democratize access to financial services, supporting inclusivity across demographics.

Looking Ahead

The future of Islamic finance in Saudi Arabia is intertwined with technology. As AI continues to evolve, its role in enhancing Sharia compliance, streamlining processes, and delivering personalized products will only grow. For Saudi financial institutions, adopting AI strengthens their competitive edge and reinforces their commitment to ethical and inclusive growth.

To conclude, AI is redefining the boundaries of what’s possible in Islamic finance, enabling Saudi Arabia to maintain its leadership in this sector while meeting the demands of a digital-first economy. By blending technology with tradition, the Kingdom is setting a global benchmark for innovation in ethical finance.

Stay tuned as we continue our journey into the transformative power of AI across Saudi Arabia’s financial ecosystem in the next installment of this series.

Kholoud Hussein 

The banking sector in Saudi Arabia is undergoing a profound transformation as artificial intelligence (AI) reshapes how financial institutions operate and serve their customers. AI is no longer just a tool for innovation; it is a competitive necessity, enabling banks to offer highly personalized services, streamline operations, and enhance risk management.

This second blog in our series delves into how AI is revolutionizing banking in Saudi Arabia, focusing on three key dimensions: personalization, efficiency, and risk management. These advancements are aligned with the Kingdom's broader Vision 2030 goals of creating a world-class financial sector.

1. Personalized Banking Experiences

Saudi customers today demand seamless and personalized banking services. AI enables banks to meet these expectations by leveraging vast amounts of customer data to deliver tailored solutions.

AI-Driven Personalization in Action

• Chatbots and Virtual Assistants: AI-powered tools such as chatbots are transforming customer service by providing instant responses to queries, enabling 24/7 support. Banks in Saudi Arabia, like Al Rajhi Bank and Riyad Bank, are implementing these solutions to enhance customer interactions.
• Predictive Analytics: By analyzing transaction histories, spending patterns, and customer behavior, AI systems can recommend personalized financial products, such as savings plans, credit options, or investment portfolios.
• Omnichannel Experiences: AI enables a seamless transition between digital and physical banking channels, ensuring customers receive consistent and personalized service, whether online, via mobile apps, or in-branch.

2. Streamlining Operations for Greater Efficiency

Operational efficiency is a cornerstone of modern banking, and AI plays a pivotal role in automating repetitive tasks and optimizing processes.

AI Applications for Efficiency

• Back-Office Automation: Tasks such as data entry, document verification, and compliance checks are now handled by AI systems, significantly reducing time and human error.
• Process Optimization: AI-powered workflow management tools optimize resource allocation, ensuring faster turnaround times for services like loan approvals.
• Cost Reduction: By automating labor-intensive tasks, Saudi banks are reducing operational costs, allowing them to reinvest in innovation and customer-centric services.

Real-World Impact:
A major bank in Saudi Arabia implemented AI to streamline its loan processing system, reducing approval times from days to just hours, and dramatically improving customer satisfaction.

3. Strengthening Risk Management and Fraud Prevention

The rise of digital banking in Saudi Arabia has also increased exposure to cybersecurity threats and financial fraud. AI provides advanced tools to mitigate these risks while ensuring robust risk management practices.

AI for Risk Mitigation

• Fraud Detection: Machine learning algorithms analyze real-time transaction data to identify unusual patterns or anomalies that may indicate fraudulent activity.
• Credit Scoring: AI-powered models evaluate a broader range of data, including non-traditional metrics, to provide more accurate and inclusive credit assessments.
• Regulatory Compliance: AI tools help banks ensure compliance with Saudi regulations by automating the monitoring and reporting of transactions, reducing the risk of penalties.

Benefits of AI in Saudi Banking

AI is not just a technological advancement; it is a driver of transformative benefits for the banking sector:

• Enhanced Customer Loyalty: Personalized experiences create deeper customer relationships and improve retention.
• Faster Service Delivery: Automated processes reduce wait times for customers.
• Improved Security: Real-time fraud detection safeguards customer trust and reduces financial losses.
• Data-Driven Decisions: AI insights enable banks to make more informed and strategic decisions.

Challenges and Opportunities

Challenges:

• Data Privacy and Security: As banks collect more customer data, ensuring its protection is critical.
• Workforce Adaptation: Employees need to be reskilled to work alongside AI-driven systems.
• Integration Complexity: Migrating legacy systems to AI-enabled platforms can be a complex and resource-intensive process.

Opportunities:

• Untapped Customer Segments: AI can help banks cater to underbanked populations in Saudi Arabia, including small businesses and rural communities.
• Regulatory Support: The Saudi Arabian Monetary Authority (SAMA) is actively fostering a conducive environment for AI adoption in banking, encouraging innovation while maintaining compliance.

Looking Ahead

As Saudi banks continue to invest in AI, the potential for growth and innovation is limitless. From delivering hyper-personalized experiences to fortifying cybersecurity, AI is positioning Saudi Arabia as a leader in digital banking transformation.

In conclusion, AI is not just changing how banks operate—it is redefining the customer experience, improving operational efficiency, and mitigating risks in unprecedented ways. For Saudi Arabia, where Vision 2030 emphasizes creating a vibrant financial sector, AI is the cornerstone of this transformation.

Stay tuned as we continue to explore the AI revolution across Saudi Arabia’s financial ecosystem in our next installment.