Ghada Ismail

Many startups enter the market believing that a great product alone will guarantee success. However, statistics tell a different story. According to CB Insights, 14% of startup failures are directly linked to poor marketing. Even with a stellar product or service, startups that fail to connect with their audience risk being overlooked. Without effective marketing, businesses remain invisible in a crowded marketplace, and potential customers never learn about what they offer.

The Importance of Effective Marketing from Day One

From the moment your business launches, marketing should be a priority. Visibility is key, and early-stage startups must work actively to connect with their target audience. Without marketing, potential customers won’t know you exist, no matter how valuable your offering may be. A clear marketing strategy not only drives sales but also builds brand identity and customer trust.

Common Early-Stage Marketing Mistakes

New businesses often make avoidable marketing missteps that limit their growth:

• Ignoring the Target Audience: Some founders market to everyone rather than defining a clear customer profile. Without understanding who you're trying to reach, your messaging may fall flat.
• Relying Too Heavily on Word-of-mouth: While positive referrals are powerful, they shouldn't replace proactive marketing efforts. Relying solely on organic buzz often slows growth.
• Neglecting Digital Presence: In today’s digital world, lacking an online presence is a critical mistake. A simple, well-structured website and active social media presence are essential.
• Trying Too Many Strategies at Once: Some startups attempt to market through multiple channels simultaneously without focusing on what works best. Concentrating on a few effective platforms often delivers stronger results.

Low-Budget Marketing Strategies That Work

Effective marketing doesn’t have to break the bank. Here are proven strategies that startups can implement without significant costs:

• Content Marketing: Sharing valuable content through blogs, videos, or social media can position your brand as an authority in your field. Consistency is key.
• Social Media Engagement: Platforms like Instagram, LinkedIn, and TikTok offer cost-effective ways to connect directly with your audience. Engaging content and authentic interactions build loyal followings.
• Email Marketing: Regular newsletters with updates, offers, or insights help nurture leads and maintain customer interest.
• Partnerships and Collaborations: Teaming up with complementary businesses can expand your reach without hefty expenses.
• Community Involvement: Attending local events, hosting workshops, or participating in industry forums can generate buzz and build meaningful connections.

Wrapping things up...

Marketing isn’t just an accessory to your product, it’s rather an essential factor for survival. Research shows that startups that actively engage in targeted marketing campaigns are significantly more likely to gain traction early on. By identifying your target audience, avoiding common pitfalls, and leveraging budget-friendly strategies, you can build momentum and increase your chances of long-term success. 

In the next episode of this series, we'll dive into another key challenge for startups ‘Pricing Problems: Too High, Too Low, or Just Wrong’, exploring how pricing mistakes can undermine even the most promising startups. Stay tuned!

Kholoud Hussein 

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

The Strategic Importance of AI in Saudi Arabia

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

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

Projected Economic Contributions of AI

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

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

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

Sector-Specific Impacts

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

Oil and Gas

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

Healthcare

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

Education

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

Retail and E-commerce

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

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

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

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

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

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

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

Finance

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

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

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

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

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

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

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

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

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

Challenges and Considerations

Despite the promising outlook, several challenges must be addressed:

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

Conclusion

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

Ghada Ismail

Starting a business is exciting, but let’s be real, it’s also incredibly tough. The truth is, that a lot of startups don’t make it past their first year, and that can be a hard pill to swallow. But here’s the good news: most failures aren’t random. They happen because of common, avoidable mistakes.

In this blog series, we’ll break down the biggest reasons why businesses struggle to survive their first 12 months. More importantly, we’ll talk about how you can dodge these pitfalls and set your startup up for long-term success. By learning from the mistakes of others, you can put yourself ahead of the game.

Let’s first look into some global statistics:  Studies from the Bureau of Labor Statistics indicate that approximately 20% of new businesses fail within the first 12 months. Industries such as information technology, mining, and construction are found to be experiencing consistently higher business failure rates, in comparison with other sectors such as agriculture, retail trade and accommodation, and food services, which demonstrate greater resilience.

Meanwhile, Harvard Business School professor Tom Eisenmann’s research shows that two-thirds of startups fail to deliver a positive return to investors. But why is the first year so challenging?

Why the First Year is the Hardest

The first year of a business is often a make-or-break period where founders must establish product-market fit, manage cash flow, and build a strong team—all while navigating unforeseen challenges.

A study by CB Insights analyzing 101 startup failures found that 42% failed due to lack of market need, 29% ran out of cash, and 23% struggled due to the wrong team composition. These early hurdles prove that launching a business is not just about having a great idea—it’s about execution, adaptability, and resilience.

The Most Common Causes of Failure

Understanding why businesses struggle in their first year is the first step to overcoming these obstacles. This series will dive deep to stand on the most critical reasons startups fail, supported by insights from real-world studies and expert research. By learning from those who didn’t make it, we can uncover the strategies that help businesses beat the odds.

Plenty of things can sink a business, but some mistakes pop up more often than others. Here’s what we’ll be covering in this series:

1. No Market Demand: Building something people don’t actually need or want.
2. Running Out of Cash: Poor money management and financial planning.
3. Weak Business Model: A great idea that doesn’t translate into sustainable revenue.
4. Poor Marketing: Struggling to get the right people to notice your business.
5. Pricing Problems: Charging too much, too little, or failing to understand market expectations.
6. Operational Chaos: Disorganization that slows down growth and burns out teams.
7. Leadership and Team Issues: Bad hires, weak leadership, and internal conflicts.
8. Ignoring Customer Feedback: Not listening to the people you’re trying to serve.
9. Legal and Compliance Pitfalls: Overlooking regulations that can lead to fines or even shutdowns.
10. Burnout and Founder Fatigue: Pushing too hard and making bad decisions as a result.

Each post in this series will focus on one of these challenges, looking at why it happens, how it affects businesses, and—most importantly—how to avoid it.

What’s Next

In the next post, we’ll tackle one of the biggest reasons startups fail: No Market Demand. We’ll talk about why so many businesses launch without a real market need and how you can validate your idea before pouring time and money into it.

Stick around for the next installment in this series. We guarantee that it’s going to be packed with insights to help you build a business that lasts!

Ghada Ismail

Business travel has long been a vital driver of growth, connectivity, and collaboration across industries worldwide. Though often viewed simply as a logistical necessity, its impact extends far beyond the surface. This episode of How Business Travel Fuels SME Success explores how business travel fosters innovation, strengthens partnerships, and fuels economic growth across various sectors, pinpointing which industries benefit most from these opportunities.

Business Travel in Tech: Building Global Connections

In the technology sector, where rapid innovation and collaboration are key to success, business travel plays an indispensable role. Both startups and established tech companies rely on in-person meetings to secure funding, forge partnerships, and explore untapped markets. For example, a fintech startup attending an international conference could connect with potential investors or partners, gaining access to resources that fast-track their global expansion. Whether attending summits, expos, or strategic meetings, business travel enables companies to build the relationships necessary for long-term growth and global competitiveness.

Manufacturing and Supply Chains: Optimizing Operations

For the manufacturing sector, business travel is essential for maintaining operational efficiency and optimizing supply chains. Visiting factories, meeting with suppliers, and overseeing production processes in person allow businesses to address issues in real-time and ensure quality control. Companies that prioritize travel often experience better cost efficiencies, stronger supplier relationships, and smoother operations.

Creative Industries: Building Networks and Inspiration

In creative sectors such as media, design, and entertainment, business travel serves as a catalyst for inspiration and collaboration. Industry events like film festivals or design expos allow professionals to network, exchange ideas, and showcase their work globally. These interactions open doors to new opportunities and contribute to a more dynamic and thriving creative ecosystem.

Professional Services: Strengthening Client Relationships

For professional services, including consulting, legal, and financial firms, business travel is key to building trust and maintaining strong client relationships. In-person meetings, workshops, and site visits help companies better understand client needs and deliver customized solutions. Firms that invest in travel often see improved client satisfaction and retention rates.

Hospitality and Tourism: Fueling Economic Growth

The hospitality and tourism sectors are perhaps the most directly connected to business travel. Conferences, trade shows, and corporate events bring a constant stream of business travelers, boosting local economies and creating jobs. Additionally, the overlap between business and leisure travel amplifies the economic impact, benefiting the broader tourism industry.

Who Benefits the Most?

While all sectors gain from business travel, those driven by relationship-building, innovation, and operational oversight see the most significant returns. SMEs, in particular, can leverage business travel to expand their networks, access new markets, and enhance their competitive edge. Regions that position themselves as business travel hubs also reap substantial economic benefits from the influx of visitors and associated spending.

Adapting to a Changing Landscape

The COVID-19 pandemic reshaped business travel, introducing new challenges and opportunities. Hybrid models that blend virtual and in-person interactions have become the norm. Nevertheless, the enduring value of face-to-face meetings remains evident. Companies that strike a balance between the advantages of in-person engagement and the efficiencies of digital tools are poised for success in this new landscape.

Wrapping things up…

Business travel remains a powerful engine of growth across industries. It fosters collaboration, drives innovation, and connects individuals in ways that digital alternatives cannot fully replicate. By strategically leveraging business travel, companies can unlock new opportunities and solidify their position in an increasingly interconnected world.

Stay tuned for the next episode, where we will explore actionable strategies for optimizing business travel and maximizing the value of every journey.

Ghada Ismail

In the digital age, the allure of virtual meetings is undeniable. Yet, when it comes to forging meaningful business relationships, nothing quite matches the depth and impact of face-to-face interactions. For SMEs striving for growth, these in-person connections are more than a luxury—they are a strategic necessity. This episode explores why stepping beyond the screen can lead to unparalleled opportunities and stronger partnerships.

Building Trust Through Presence

Trust is the cornerstone of any successful business relationship, and building it often requires more than virtual connections. In-person meetings foster a sense of authenticity and commitment that digital platforms struggle to achieve. A handshake, shared meal, or even casual conversation can create bonds that lead to long-term partnerships. For SMEs, these connections can be pivotal in securing deals, attracting investors, or establishing reliable supply chains.

Reading the Unspoken: Body Language and Context

Face-to-face meetings provide an opportunity to pick up on subtle cues that virtual platforms often miss. Body language, tone of voice, and other non-verbal signals offer critical insights into a partner’s intentions and comfort level. These nuanced observations can guide SMEs in negotiations, helping them adapt strategies in real time. Moreover, being physically present allows a deeper understanding of cultural and organizational contexts, particularly when entering new markets.

Showcasing Commitment and Seriousness

Traveling to meet a client or partner in person demonstrates dedication and seriousness about the relationship. This effort often leaves a lasting impression, showcasing the SME’s commitment to collaboration and growth. For businesses looking to expand internationally, such gestures can be the deciding factor in winning over stakeholders who value personal interaction.

Networking Beyond the Agenda

While virtual meetings tend to stick strictly to the agenda, in-person visits often open doors to informal networking opportunities. Whether it’s a chance encounter at a conference or a post-meeting coffee chat, these interactions can spark unexpected collaborations and ideas. SMEs can benefit immensely from these serendipitous moments, gaining insights and contacts that might not have emerged in a structured online meeting.

The Human Element in a Digital Age

At its core, business is about people. Despite advancements in technology, the human need for connection remains unchanged. Face-to-face interactions provide a level of engagement and emotional resonance that is hard to achieve through screens. For SMEs navigating competitive industries, this human touch can set them apart, fostering loyalty and goodwill that fuel long-term success.

Balancing Virtual and In-Person Interactions

While the importance of face-to-face meetings is undeniable, SMEs must strike a balance between physical and virtual engagements. Strategic planning can help businesses maximize the benefits of both approaches. For instance, SMEs can use virtual meetings for routine updates while reserving travel for high-stakes negotiations, key networking events, or market exploration trips.

Wrapping things up...

In the quest for growth, SMEs must look beyond the convenience of digital communication and embrace the unique value of in-person interactions. These moments of genuine connection, trust-building, and cultural understanding can be transformative, propelling businesses toward new opportunities and stronger partnerships.

In the next episode, we’ll tackle the practical side of business travel with Navigating Challenges: How SMEs Optimize Business Travel, exploring how small businesses can overcome hurdles to make the most of their journeys.

Ghada Ismail

In today’s fast-paced and hyper-connected world, small and medium enterprises (SMEs) are constantly seeking ways to stand out, grow, and seize new opportunities. While digital platforms and virtual meetings have transformed communication, business travel remains a critical driver for growth and success. A research by the American Express highlights a compelling fact: 57% of SMEs report that business travel has directly fueled their expansion. Let’s explore why hitting the road is more than just a logistical necessity—it’s a strategic growth catalyst.

The Numbers Tell the Story

The connection between business travel and SME success is undeniable. American Express’s findings reveal that over half of SMEs attribute their growth to the opportunities generated through business trips. Whether it’s closing deals, forging partnerships, or discovering untapped markets, face-to-face interactions often create outcomes that virtual tools can’t replicate.

Key statistics show that SMEs that invest in business travel are more likely to:

• Achieve higher revenue growth.
• Expand into new regions or markets.
• Establish stronger and longer-lasting client relationships.

These numbers highlight why travel is not just an expense but an investment in a company’s future.

Turning Trips Into Opportunities

For many SMEs, business travel has been a game-changer. Consider the story of a Saudi-based technology startup that expanded its footprint in the GCC market through a series of strategic trips. By attending industry expos, hosting in-person client meetings, and engaging in cultural immersion, the startup landed contracts that would have been difficult to secure remotely. These trips were not just about showing up; they were about demonstrating commitment, building trust, and gaining a competitive edge.

Similarly, a boutique manufacturing firm leveraged travel to explore supplier partnerships in Europe. What began as a routine factory visit evolved into a strategic partnership that improved their supply chain efficiency and reduced costs. Such success stories illustrate the transformative power of travel for SMEs.

The Strategic Imperative for SMEs

For small businesses, every decision must align with overarching goals. Business travel is no exception. Here’s how SMEs can maximize the impact of their trips:

1. Set Clear Objectives: Whether it’s lead generation, client retention, or market exploration, having a clear purpose for travel ensures measurable outcomes.
2. Leverage Networking Opportunities: Conferences and industry events are goldmines for connecting with potential clients and collaborators. SMEs should prioritize these opportunities to build lasting relationships.
3. Focus on Long-Term Gains: While travel may come with upfront costs, the long-term benefits often outweigh the initial investment. Deals closed in person tend to be more robust and enduring.

The ROI of Business Travel

Understanding the return on investment (ROI) of business travel is essential for SMEs to ensure their trips deliver value. Calculating ROI involves comparing the outcomes of travel against its costs, including transportation, accommodation, and time. Here are some ways SMEs can evaluate the ROI of their travel efforts:

1. Track Measurable Outcomes: Metrics such as deals closed, new leads generated, or partnerships secured provide tangible evidence of travel’s impact.
2. Assess Revenue Growth: Analyze whether specific trips contribute to increased sales or expanded market share in the months following travel.
3. Consider Intangible Benefits: Improved client relationships, enhanced brand visibility, and market insights may not show immediate financial returns but often lead to long-term gains.

By systematically evaluating these factors, SMEs can make informed decisions about their travel strategies and refine their approach to maximize impact.

Conclusion

Business travel is far more than a logistical endeavor for SMEs; it’s a pathway to growth, innovation, and resilience. The 57% of SMEs that recognize its value are reaping the benefits of expanded horizons and stronger connections. As technology continues to enhance global connectivity, the importance of stepping out into the world—literally—will remain a vital component of SME success.

In the next post, we’ll dive deeper into why in-person meetings have the edge over digital interactions and how they can amplify the value of business travel. Stay tuned!

Kholoud Hussein 

In the rapidly evolving landscape of global business operations, Henkel’s Global Business Solutions+ (GBS+) network stands as a testament to innovation, efficiency, and strategic vision. This exclusive interview with Roland Haefs, Corporate Vice President of GBS+, and Shereen Alaa, Head of GBS+ Cairo, provides invaluable insights into the pivotal role played by GBS+ in Henkel’s global strategy, with a special focus on its expanding footprint in the MENA region.

The conversation explores the strategic foundations of Henkel’s Cairo GBS+ Center, its contributions to Henkel’s operational excellence, and its alignment with regional and global priorities such as digital transformation, sustainability, and talent development. With Egypt positioned as a regional hub for advanced services and solutions, the interview also delves into the potential for growth across the MENA region, including opportunities in Saudi Arabia under Vision 2030.

Sharikat Mubasher presents this exclusive interview, shedding light on how Henkel’s GBS+ continues to redefine business processes, foster innovation, and drive sustainable impact in one of the world’s most dynamic markets.

The following questions are answered by Roland Haefs, Corporate Vice President, Global Business Solutions+ (GBS+): 

Could you provide an overview of the current scale and influence of the GBS+ network globally? What are the key goals for expanding its role within Henkel’s global strategy, particularly as it pertains to the MENA region?

Henkel’s GBS+ organization, with a workforce of over 3,600 highly qualified employees, has become a critical component of Henkel’s value chain. Over the past 20 years, it has evolved from a transactional partner to a strategic player, operating across all time zones and languages. Today, GBS+ centers are located in Manila (Philippines), Bratislava (Slovakia), Mexico City (Mexico), Shanghai (China), and Cairo (Egypt).

The organization consists of specialized teams in areas such as finance, HR, IT, planning, sourcing, production, logistics, marketing, and sales. This broad expertise enables Henkel to deliver innovative solutions that meet the diverse needs of our global operations.

With a strong focus on digital transformation and process optimization, GBS+ will continue to streamline operations, enhance efficiency, and expand its role in higher value-adding activities. As we look to the future, expanding GBS+’s capabilities in the MENA region will be a key aspect of Henkel’s global strategy, further strengthening our ability to support the company's growth and operational excellence across markets.

What were the strategic factors behind choosing Egypt as a base for Henkel’s GBS+ Center? Additionally, do you foresee opportunities to expand similar operations in Saudi Arabia, and what role could it play within Henkel’s MENA vision?

Henkel chose Egypt as the base for its GBS+ Center for several strategic reasons. First, Egypt’s central geographic location enables it to cover multiple time zones, facilitating real-time collaboration with countries across the EMEA region and beyond. Additionally, Egypt offers a highly skilled, multilingual talent pool, which was instrumental in the establishment of our GBS+ Center. This decision also aligns with Henkel’s long-term goal to strengthen its presence in Egypt and transform the country into a hub for both product and service exports.

The GBS+ Center in Cairo is a critical part of Henkel’s broader strategy to expand its footprint in the Middle East and Africa (MEA) region. It positions Egypt as a global export hub for Henkel, particularly in terms of digital and technological solutions. The center plays a key role in enhancing Henkel’s service offerings by strengthening our digital capabilities and enabling us to deliver high-impact, value-added solutions across the MEA region and beyond.

By leveraging local talent and advanced technologies, Henkel is driving operational efficiency and innovation in the region. The GBS+ Cairo center is already playing a pivotal role as an exporting hub for digital and technology-driven solutions, supporting Henkel’s global operations.

As for Saudi Arabia, the country’s Vision 2030 focuses on diversification and development across multiple sectors, including technology and innovation. Henkel’s established investments in Saudi Arabia, including manufacturing facilities and an expanding market presence, align closely with the Kingdom's strategic objectives. While there are no immediate plans for expanding GBS+ operations in Saudi Arabia, the country’s growing role in Henkel’s strategy presents potential opportunities for future collaboration in line with Vision 2030’s goals.

How do you envision the Cairo GBS+ Center contributing to Henkel’s standing across the MENA region? What are some specific regional milestones or achievements you anticipate for this center in the near future?

The GBS+ Center in Cairo plays a pivotal role in strengthening Henkel’s presence across the Middle East and Africa (MEA) region. As a comprehensive organization, it offers a wide range of services that support Henkel's global operations and enable the company to meet the diverse needs of countries worldwide. This is made possible by the center’s strong multilingual talent pool, which allows GBS+ Cairo to operate in eight languages, including Arabic, English, French, German, Turkish, and Spanish. As a result, it provides services and solutions to over 75 countries globally.

Looking ahead, GBS+ Cairo holds significant potential to further contribute to Henkel’s strategic goals. It will remain a key part of Henkel's broader strategy to enhance its regional footprint, positioning Egypt as a hub for both product and technological exports. Henkel's vision includes not only expanding product exports but also strengthening its digital and technological presence by exporting innovative solutions and services.

Furthermore, the Cairo center is expected to play a central role in Henkel’s sustainability and digitalization initiatives, which are integral to the company's regional and global objectives. This will enable GBS+ Cairo to drive value for Henkel while supporting the company’s commitment to sustainable growth and digital transformation in the MEA region.

In what ways will the Cairo GBS+ Center support and enhance Henkel’s operations in the MENA region? 

The GBS+ center in Cairo plays a critical role in enhancing Henkel’s operations by streamlining and standardizing processes through the use of automation and digital solutions. With over a decade of experience, GBS+ Cairo is focused on adopting value-added activities that drive greater efficiency and effectiveness across the organization.

The center provides a comprehensive suite of services, including human resources, financial accounting and analysis, sales order processing, customer service, and marketing support. This broad portfolio enables Henkel to optimize operations and improve responsiveness to market demands, leading to better overall business performance.

In recent years, the center has expanded its capabilities to include IT and data analytics, reinforcing Henkel’s competitiveness in an increasingly fast-paced market. Moreover, the expansion of language support from three to eight languages has allowed GBS+ Cairo to serve over 75 countries, further strengthening its global reach and operational impact.

By leveraging local expertise and driving innovative practices, the GBS+ Cairo center supports Henkel’s global strategy, positioning Egypt as a key hub for advanced services and solutions, not just in the MENA region, but on a global scale.

How does the Cairo GBS+ Center fit into your broader vision for Henkel’s GBS+ network, and what unique contributions do you see it making to Henkel’s regional success across MENA, including Saudi Arabia?

The Cairo GBS+ Center is a key element of Henkel’s broader vision for its Global Business Services (GBS+) network. Strategically located in Egypt, the center takes full advantage of the country’s robust infrastructure, skilled workforce, and deep regional market knowledge to optimize essential processes, including finance, IT, and sales. 

This aligns with Henkel’s goal of streamlining operations, enhancing digital capabilities, and fostering innovation across the global network. With its focus on process efficiency and service excellence, GBS+ Cairo plays a critical role in supporting Henkel’s growth strategy, both within the MENA region and internationally, including in key markets such as Saudi Arabia.

The following questions are answered by Shereen Alaa, Head of Global Business Solutions+ (GBS+), Cairo:  

Can you give us an overview of the Cairo GBS+ office's current scale and scope, including the number of employees, primary services, and areas of specialization?

GBS+ Cairo began in 2014 and has grown significantly since then, now employing 260 talented people. The center provides a wide range of services and solutions in human resources, accounting, and financial analysis, sales order processing and payments, customer service, sales reporting, marketing support, and IT and digital solutions. 

This diverse portfolio allows Henkel to streamline operations and contribute to better overall business performance. Additionally, the number of supported languages has increased from three to eight, allowing GBS+ Cairo to offer its services from Egypt to more than 75 countries across the globe. 

How does the Cairo GBS+ Center support the development of local talent, particularly young professionals in Egypt? What skill sets are being prioritized to make the workforce competitive on a global scale?

At GBS+ Cairo, we are committed to the continuous development and upskilling of young Egyptian talent by providing unique opportunities for hands-on and practical experience. 

We offer on-the-job training programs that strengthen our employees’ expertise and job rotation opportunities to broaden their knowledge beyond their area of expertise. 

Additionally, we focus on our young talents in universities and organize multiple programs that prepare them for the job market. These include internships that give them hands-on work experience and job shadowing and case studies sessions to familiarize them with the practical application of their studies. We are proud that 54% of our interns were hired with us.

We aim to enhance skills across all areas, but prioritize expert competencies, digital mindset, and business acumen. This is in addition to soft skills training programs that equip our team members with the skills needed in today’s and tomorrow’s work environment, such as communication, presentation, project management, strategic thinking, and many more.

All these initiatives aim to prepare the workforce for global competitiveness, ensuring that local talent contributes effectively to Henkel’s international operations while also fostering Egypt's talent pool for future growth in the region.

Could you elaborate on the Cairo GBS+ Center’s approach to sustainability and social responsibility, and how it aligns with Henkel’s global standards? What positive impacts have been observed on the local environment and community, and what are your future goals in this area across MENA?

The GBS+ Cairo approach to sustainability and social responsibility aligns closely with Henkel’s global strategy, particularly its commitment to Environmental, Social, and Governance (ESG) objectives, which place a high priority on environmental and community well-being. 

At Henkel, corporate social responsibility (CSR) is central to our purpose, focusing on sustainability, social engagement, and ethical business practices.

Our CSR initiatives aim to make a lasting positive impact on the environment and society through education and active community involvement.

At GBS+ Cairo, we are proud of our strong culture of volunteering, with each team member contributing an average of 7.5 hours annually, leading to an impressive total of 10,000 volunteering hours dedicated to community projects over the past decade, such as Children Cancer Hospital, Green school program to name a few. This collective effort highlights our commitment and reflects our core values of equity, inclusivity, and social impact, which align perfectly with Henkel’s global standards. 

Both Henkel’s broader goals—such as reducing its environmental footprint, fostering a circular economy, and improving resource efficiency—and GBS+ Cairo's community outreach initiatives are aimed at creating long-term positive impacts on both the environment and society. Moving forward, Henkel’s goals in MENA, including Egypt, will continue to focus on strengthening these sustainability efforts, ensuring they contribute to Henkel’s global vision of a sustainable and equitable future for all.

By prioritizing sustainability, social responsibility, and ethical values, we bring our purpose to life: "Pioneers at Heart for the Good of Generations".

How does the Cairo GBS+ Center promote gender equality and female leadership? What initiatives are in place to increase women’s participation in the workforce, and are there similar plans for other parts of the MENA region?

At Henkel, we strongly believe that our diversity is our strength! We are committed to fostering an inclusive environment that nurtures the growth of all employees. 

Since women make up nearly 70% of the workforce, we see this representation as a proud accomplishment that embodies our basic beliefs and ideals rather than merely a figure. For us at GBS+ Cairo, increasing women's involvement in the workforce is essential to attaining inclusivity and balance, which in turn encourages creativity and innovation.

We are committed to fostering an atmosphere that nurtures everyone’s growth and enables women to assume leadership positions and play a part in the company’s success. This is evident with our over 65% female representation in leadership. We see that empowering women to assume leadership positions contributes is integral to shaping and cultivating a culture of collaboration and excellence.

What is the center’s future outlook for growth within the MENA market? What potential do you see for further expansion and impact throughout the region, and what makes MENA a priority for Henkel?

The Cairo-based GBS+ Center is a key component of Henkel's broader strategy to enhance its presence in the Middle East and Africa (MEA) region and position Egypt as a global export hub. 

Henkel has strengthened its presence in the Middle East and Africa region with GBS+ Cairo positioned as a comprehensive organization, that provides a wide range of high-impact value-adding services and solutions as well as digital and technological solutions that support Henkel's global operations and enables the company to cater to all countries across the globe. 

Looking ahead, GBS+ Cairo holds significant potential to further contribute to Henkel’s strategic goals. It will remain a key part of Henkel's broader strategy to strengthen its regional footprint in the dynamic and growing market in the Middle East and Africa region. 

Furthermore, the Cairo center is expected to play a central role in Henkel’s sustainability and digitalization initiatives, which are integral to the company's regional and global objectives. This will enable GBS+ Cairo to drive value for Henkel while supporting the company’s commitment to sustainable growth and digital transformation in the MEA region, adding to the region's strategic importance.

Ghada Ismail

Scaling up is a pivotal stage for any startup. Growth accelerates, operations expand, and the stakes are higher than ever. At this stage, strategic partnerships can act as powerful catalysts, unlocking new markets, increasing operational efficiency, and enhancing brand credibility. This episode will explore the types of partnerships that startups should consider during scaling, along with actionable advice for forming and managing these alliances.

Why Partnerships Matter in the Scaling-Up Stage?

Scaling up isn’t just about doing more of the same; it’s about doing things smarter and more efficiently. Strategic partnerships help startups:

Access New Markets: Leverage established networks to reach untapped audiences.

Improve Operational Efficiency: Streamline processes and reduce costs with the help of experienced partners.

Enhance Credibility: Collaborations with well-known brands build trust among customers, investors, and stakeholders.

Accelerate Innovation: Gain access to technology or expertise that drives growth.

You should know that the scaling-stage partnerships require a long-term mindset, so you have to choose partners who align with your vision and can grow with you.

Types of Partnerships for Scaling Up

Distribution Partnerships: Partner with companies that can help you scale by expanding your reach.

What They Bring: Established customer bases, retail networks, or online platforms.

Example: A Saudi startup in the F&B sector partnering with a regional supermarket chain to distribute products across the GCC.

B. Technology Collaborations: Enhance your offerings or improve efficiency by teaming up with tech providers.

What They Bring: Advanced tools, platforms, or services that complement your business.

Example: A logistics startup integrating AI-driven route optimization software from a global tech firm.

C. Market Expansion Partners: Collaborate with entities that help you enter new geographies.

What They Bring: Local expertise, regulatory knowledge, and cultural insights.

Example: A Saudi e-commerce company partnering with a local logistics firm in North Africa to streamline cross-border operations.

D. Brand Co-Marketing Partnerships: Join forces with established brands to enhance visibility and customer trust.

What They Bring: Credibility, larger audiences, and shared marketing budgets.

Example: A scaling fintech company partnering with a major bank to promote its financial services app.

E. Talent Development Partners: Work with institutions or consultants to ensure you have the talent required to scale.

What They Bring: Training programs, leadership development, and access to skilled professionals.

Example: Partnering with training organizations to upskill your workforce as you expand operations.

Identifying the Right Partner

At the scaling stage, choosing the right partner requires careful evaluation.

Key Criteria to Assess:

Alignment of Goals: Do their priorities align with your growth objectives?

Track Record: Do they have experience working with scaling startups?

Scalability: Can they adapt as your needs grow?

Cultural Fit: Do their values and work style match yours?

Due Diligence Checklist:

Review their partnership history and case studies.

Validate their operational and financial stability.

Consult mutual connections for unbiased insights.

Building Long-Term Scaling Partnerships:

 Establish clear KPIs that reflect growth objectives.

Use trial phases to test the partnership before scaling up fully.

Foster open communication to address challenges collaboratively.

Negotiate Mutually Beneficial Terms:

Define revenue-sharing or cost-sharing structures.

Protect your IP and outline responsibilities in formal agreements.

Include flexibility to adjust the partnership as your startup scales.

Managing Growing Partnerships

As partnerships grow, they can become complex. Use these strategies to maintain alignment:

Regularly revisit agreements to ensure they meet evolving needs.

Use technology to manage shared workflows and monitor KPIs.

Invest in relationship-building to keep the partnership strong.

In this stage, you may need to consider involving legal and financial advisors experienced in scaling-stage partnerships to protect your interests while maximizing potential. Also, you should avoid overdependence as relying too heavily on a single partner can expose your startup to risks. Diversify partnerships to maintain flexibility and resilience.

Wrapping this up, scaling your business is an exhilarating phase, but it’s not a journey you need to take alone. The right partnerships can amplify your impact, helping you unlock new opportunities, solve operational challenges, and solidify your position in the market.

As you navigate this stage, remember that partnerships are not just about growth but also about sustainability. Choose allies who share your vision and are committed to building a lasting, mutually beneficial relationship.

Coming Up in Episode 4: "Going Global: The Perfect Partnerships to Expand Your Startup Worldwide!"

In the next episode of The Partnership guide for startups, we’ll explore how to identify and secure the perfect partnerships for taking your startup global. Expanding into international markets requires the right allies who understand local cultures, legal landscapes, and market dynamics. Tune in to learn how to build global partnerships that accelerate your expansion and ensure your brand thrives on the world stage.

Ghada Ismail

Starting a business is like planting a seed. The initial stages determine whether it will grow into a thriving tree or wither away. For startups, partnerships are the fertile soil that nourishes the idea, helping it germinate into something meaningful. In this series, we’ll explore how startups can make the right partnership decisions at every stage of their journey, from inception to maturity. In this first installment, let’s delve into the pre-launch phase and the strategic partnerships that can set the stage for success.

Laying the Foundation: Choosing Strategic Partners for Pre-Launch Success

Why Pre-Launch Partnerships Matter

Before a startup officially launches, it operates in a delicate stage where the focus is on refining the idea, building a prototype, and validating the concept. At this point, resources are scarce, and every decision carries significant weight. The right partnerships during this phase can provide the expertise, guidance, and resources a startup needs to move forward confidently.

Types of Strategic Partners for Pre-Launch Startups

Incubators and Accelerators

These organizations are often the first stop for pre-launch startups. Incubators provide long-term support, including workspace, mentorship, and networking opportunities. Accelerators, on the other hand, offer intensive short-term programs aimed at preparing startups for funding or market entry.

Why it matters: They connect startups with experienced mentors and potential investors while offering a structured approach to growth.

Mentors and Advisors

Individual mentors bring industry-specific expertise, a wealth of experience, and sometimes access to a wider network. Advisors often come on board with a vested interest in the startup’s success, offering insights into product development, market trends, and operational challenges.

Why it matters: They help avoid common pitfalls and guide strategic decision-making.

Co-Founders or Key Team Members

A strong founding team can be the most critical partnership of all. Whether it’s a technical co-founder, a marketing guru, or a financial strategist, finding the right person to share the startup’s vision is vital.

Why it matters: A complementary skill set within the founding team lays a solid groundwork for growth.

Early Adopters and Testers

While they may not be traditional partners, early adopters provide invaluable feedback that can shape your product before launch. Partnering with individuals or small groups willing to test your prototype ensures you’re building something the market truly needs.

Why it matters: Validates your product concept, reducing the risk of failure post-launch.

How to Choose the Right Partner

Define Your Needs: Start by identifying the gaps in your current capabilities. Do you lack technical expertise, market insights, or operational know-how?

Research Thoroughly: Evaluate potential partners’ track records, their alignment with your vision, and their ability to add tangible value.

Communicate Openly: Ensure clear communication about expectations, roles, and responsibilities from the outset.

Closing Thoughts

The pre-launch stage is all about setting the foundation for success, and partnerships play a critical role in this journey. Whether through incubators, mentors, or co-founders, the right alliances can transform your startup from a fledgling idea into a promising business.

In the next installment, we’ll explore how startups can build partnerships that fuel growth during the seed stage. Stay tuned!

Ghada Ismail

The 24 Fintech recently concluded, the new annual event hosted by the Financial Sector Development Programme (FSDP), Saudi Central Bank (SAMA), Capital Market Authority (CMA), Insurance Authority (IA), and co-organized by Fintech Saudi and Tahaluf.

Ran from 3-5 September, the brand new event aims to become a world-class annual occasion that will elevate Riyadh’s global financial technology ambitions and demonstrate the Kingdom’s commitment to shaping the future of finance.

The inaugural edition of 24 Fintech featured four stages hosting three days of programming including keynotes, panel discussions, and industry announcements, with dedicated areas for investment and startups, technology, and academia. Across the various stages, experts probed a host of themes including governance, regulations, interoperability, investment, and reimagining the financial services landscape.

The Kingdom of Saudi Arabia set a list of objectives within its Vision of 2030, and one of them is to establish the Kingdom as a tech-driven global financial powerhouse, and Riyadh as an international fintech hub, led by confidence in the enormous potential of this sector to attract gigantic investments into the Kingdom from all over the globe.

Saudi Government’s contribution to developing the Fintech scene

In the past five years, the Kingdom of Saudi Arabia has already taken significant strides in developing fintech into a flourishing industry marked by rapid growth, integrating it as a key factor with an increasing contribution to Saudi’s national economy. 

In a report by the global consulting firm, Arthur D. Little (ADL), the author took us into a journey unfolding how the fintech scene elaborated in Saudi Arabia, it seems to be started with an initiative launched in April 2018 by the Saudi Arabian Monetary Authority (SAMA), in collaboration with the Saudi Capital Markets Authority (CMA), launching Fintech Saudi, an initiative aimed at strengthening KSA’s position as the leading fintech hub in the MENA (Middle East and North Africa) region. 

Since then, Fintech Saudi played a prominent role in boosting, providing support, and representing the fintech industry in the kingdom through initiatives such as its Accelerator program, Career Fair, Fintech Tour, and the Summer Sessions. 

From this time on, there has been an obvious increase in the number of fintechs operating in the kingdom. Over SAR 4 billion ($1 billion) has been pumped as investments into fintech companies in the Kingdom, and over 100,000 people have shown great interest in fintech-related events, training courses, and internships organized by the Fintech Saudi platform.

The kingdom's strategy to achieve its fintech vision

In May 2022, Saudi Arabia’s Vision 2030 approved its national fintech strategy marking the next stage of fintech development for Saudi Arabia, which was based on six main pillars: 

(1) developing KSA as the fintech hub for the Middle East, 

(2) creating a regulatory environment supportive of growth and innovation,

(3) funding for start-ups, 

(4) training and skill enhancement,

(5) accelerating support infrastructure, 

(6) driving local and international collaboration. 

This strategy set four objectives to achieve, as part of high hopes of becoming a global fintech leader in the MENA Region. Those four objectives are as follows:

Establish at least 525 fintech companies (versus 200 in 2023). 

Open 18,000 fintech job opportunities (versus around 5,400 in 2023). 

Account for SAR $13.3 billion in direct GDP (versus around $1 billion in 2023). 

Achieve SAR $12.2 billion in direct venture capital (VC) contributions (versus $1.4 billion in 2023).

The output then undeniably showed a range of areas, resulting in more convenient and accessible payment systems for consumers, new alternative financing platforms with services like debt crowdfunding, and service integration through aggregation platforms, providing a better user experience for the consumer. The number of fintech companies in KSA more than doubled in one year, from 89 in 2022 to ~200 in 2023.

In the digital payments realm, Saudi Arabia achieved a cutting-edge growth through establishing regulatory frameworks not only to regulate but also to nurture the licensing of payment companies and their service activities. Vision 2030 set an ambitious aim to beef up figures of non-cash transactions to 80% by 2030, from an 18% baseline in 2016. In fact, by 2021, non-cash payments were already 62% of all transactions, well ahead of the plan. Besides, multiple developments took place in parallel, including the emergence of digital wallets, local transfers, QR code payments, and SADAD system bill payments. 

As for the alternative financing sector, particularly “buy now, pay later” (BNPL) and debt crowdfunding, has emerged as the second-largest fintech subsector in Saudi Arabia, one thing that reflects a shift in consumer and business financing preferences, increasingly opting for flexible and accessible options instead of traditional banking models.

In a report issued by SAMA, the investor base in the KSA crowdfunding market has witnessed a significant surge, rising from 302 in 2019 to over 92,000 in 2022. These investors have collectively issued over 1,800 loans worth more than SAR 1.1 billion since 2019, with about SAR 770 million in loans disbursed in 2022 alone. Interest rates in this market have escalated from 10% in 2019 to over 16% in 2022, and approval rates experienced mixed performance, dropping to 48% in 2021 before recovering to 66% in 2022.

24 Fintech conference recommendations to improve the Fintech scene

Adding to the nation’s continuous efforts to embrace digital innovation, the 24 Fintech Conference underscored the importance of fostering partnerships between industry leaders, startups, and regulators to drive sustainable growth. The event not only showcased the dynamism of the fintech ecosystem but also reinforced Saudi Arabia's commitment to becoming a global fintech hub. 

the recommendations from Saudi Arabia's 24 Fintech Conference centered around several key themes aimed at advancing the fintech landscape in the region:

• Regulatory Support: Encourage the development of a more adaptive regulatory framework that supports innovation while ensuring consumer protection and financial stability. 
• Collaboration: Foster partnerships between fintech startups, traditional financial institutions, and government entities to drive innovation and share resources. 
• Investment in Talent: Promote educational initiatives and training programs to equip the workforce with the skills needed to thrive in the fintech sector. 
• Focus on Cybersecurity: Prioritize the implementation of robust cybersecurity measures to protect sensitive financial data and build consumer trust. 
• Financial Inclusion: Develop strategies that enhance access to financial services for underserved populations, leveraging technology to bridge gaps. 
• Sustainability Initiatives: Encourage fintech solutions that align with sustainability goals, promoting eco-friendly practices within the financial sector. 
• Innovation Hubs: Establish innovation labs and incubators to nurture emerging startups and facilitate knowledge exchange. 
• Global Engagement: Strengthen international collaborations to share best practices and attract foreign investment into the local fintech ecosystem.

In conclusion, the evolution of Saudi Arabia's fintech ecosystem represents a remarkable journey of innovation, ambition, and transformation. Over the past few years, the Kingdom has emerged as a key player in the global financial technology landscape, fueled by a combination of visionary leadership, significant investment, and a commitment to digital transformation. The government’s strategic initiatives, such as Vision 2030, have laid a solid foundation for fostering a vibrant fintech environment, attracting both local and international talent.

The rise of innovative startups and the collaboration between traditional financial institutions and tech firms have led to the development of diverse financial solutions that cater to the needs of a rapidly evolving consumer base. From digital payments and blockchain technology to robo-advisors and lending platforms, Saudi fintech is pushing boundaries and redefining the financial services sector.

However, as the ecosystem continues to grow, challenges remain, including regulatory hurdles, cybersecurity threats, and the need for greater financial literacy among consumers. Addressing these challenges will be crucial for sustaining momentum and ensuring that the benefits of fintech reach all segments of society.

Looking ahead, the potential for Saudi Arabia’s fintech sector is immense. By embracing innovation, fostering collaboration, and prioritizing inclusivity, the Kingdom can solidify its position as a leading fintech hub in the region. As we witness this dynamic evolution unfold, it is clear that the future of finance in Saudi Arabia is not only promising but also integral to the broader vision of economic diversification and modernization. With continued commitment and strategic action, the Saudi fintech ecosystem is poised to thrive, creating new opportunities for growth and empowerment in the years to come.

Kholoud Hussein 

With a passion for empowering entrepreneurs and fostering digital growth, Selina Bieber, Vice President for International Markets at GoDaddy, leads GoDaddy's initiatives to support small businesses in their journey toward online success. 

In an exclusive interview with Sharikat Mubasher, Bieber will delve into how GoDaddy transforms digital dreams into reality for entrepreneurs around the globe, particularly in Saudi Arabia. As a frontrunner in the digital solutions market, GoDaddy offers a comprehensive toolkit that enables small and medium-sized enterprises (SMEs) to establish and grow their online presence. 

We will explore the unique challenges faced by entrepreneurs in the region, how GoDaddy is addressing them through innovative solutions and partnerships, and the company's commitment to leveraging emerging technologies like AI and cloud computing to enhance the entrepreneurial experience. 

Can you tell us about GoDaddy's main business and how it helps entrepreneurs?

At GoDaddy, we're in the business of turning digital dreams into reality. Our focus is providing a complete toolkit for businesses to thrive online. This includes everything from securing the perfect domain name – think of it as your digital address – to building beautiful, functional websites that truly represent your brand.

But we don't stop there. We also offer hosting and security solutions to help keep your website running smoothly, professional email services to give your business that extra touch of credibility, and a range of digital marketing tools to help you reach your audience effectively.

For our Saudi entrepreneurs, whether you're a small bakery in Al-Khobar looking to take orders online, a boutique in Riyadh aiming to showcase your latest fashion, or a tech startup in Jeddah ready to make waves, we've got solutions tailored for you. Our goal is to simplify the online journey, making it accessible and manageable for small businesses without the need for advanced technical abilities. With small and medium businesses (SMEs) accounting for 99.41% of the private sector in Saudi Arabia and contributing significantly to the economy, we understand the crucial role they play and are dedicated to supporting their growth.

What makes GoDaddy stand out from other companies in your field?

What we believe truly sets GoDaddy apart is our commitment to our customers' success. We don't just sell products; we build relationships and partnerships with our customers. This commitment manifests in several ways that make us unique in the industry.

We pride ourselves on our localized approach. For instance, our Arabic Website Builder is a testament to our commitment to the Middle Eastern market. It's designed with the nuances of the Arabic language and culture in mind, ensuring that local businesses can create websites that truly resonate with their audience.

We also go beyond just providing online tools – we're committed to education and empowerment. Our extensive library of resources, tutorials, and webinars is designed to help entrepreneurs at every stage of their online journey. Whether you're just starting out and need to understand the basics of online presence, or you're looking to scale your e-commerce operations, GoDaddy has the knowledge and resources to guide you, along the way. Our recent surveys show that 87% of Saudi small business owners believe digitization is crucial, and we are here to help facilitate that transformation.

How is GoDaddy supporting growth in Saudi Arabia?

The Kingdom's Vision 2030 has set an inspiring roadmap for digital transformation. One of our key initiatives in the region is our partnership with Monsha'at Academy. Through this collaboration, we're offering specialized digital skills training tailored to the needs of Saudi entrepreneurs. These courses cover everything from the basics of establishing an online presence to advanced e-commerce strategies.

Our Arabic Website Builder, as mentioned above, is another significant way we're supporting growth in Saudi Arabia. We understand that language plays a crucial role in effective online communication. That's why we've launched this tool specifically for the Arabic-speaking market. It allows businesses to create professional, culturally relevant websites easily, helping them connect more effectively with their local audience.

Our 2024 Global Entrepreneurship Survey revealed that 93% of Saudi entrepreneurs feel confident in using AI technology for their business, and 87% acknowledge the importance of digitization. These findings inform our strategy as we continue to enhance our product offerings to meet the evolving needs of Saudi businesses.

How does GoDaddy keep up with the fast-changing digital world?

Staying ahead in the rapidly evolving digital landscape is a challenge we embrace with enthusiasm at GoDaddy. Our approach to innovation is multi-faceted and deeply rooted in understanding both technological advancements and our customers' evolving needs.

A great example of how we're embracing new technologies is our integration of AI into our products. We've recently introduced AI-powered tools like our Generative AI Prompt Library, which helps small businesses create engaging content for their websites and social media platforms. This tool is helpful for entrepreneurs who might not have the time or resources for extensive content creation. According to our survey, 97% of small businesses in Saudi Arabia believe AI can positively impact their bottom line, and we're providing the tools to make that belief a reality.

We're also evolving our website-building tools to incorporate the latest design trends and functionalities. For instance, we're adding new templates and features that allow businesses to create mobile-responsive, visually appealing websites that meet current user expectations. Using tools like GoDaddy Studio, powered by AI, easily creates content that elevates and helps small businesses sell their brand on social media and across their online presence.

Can you share any recent partnerships or investments GoDaddy has made in Saudi Arabia?

Our initiatives in Saudi Arabia reflect our commitment to the Kingdom's entrepreneurial ecosystem and our belief in the immense potential of Saudi small business owners.

Our partnership with Monsha'at Academy stands out as a significant milestone. This collaboration is all about empowering Saudi entrepreneurs with the digital skills to help them succeed in today's economy. Through this partnership, we're offering specialized courses that cover a wide range of topics, from the basics of website creation to advanced e-commerce strategies. These courses are tailored to the unique needs of the Saudi market, considering local business practices, consumer behaviors, and cultural nuances.

Our participation in local events and initiatives is another form of investment we're making in Saudi Arabia. For example, our involvement in Biban 23, one of the largest entrepreneurship events in the Kingdom, allowed us to connect directly with Saudi entrepreneurs, understand their needs, and showcase how our solutions can help support their growth.

What challenges does GoDaddy face in Saudi Arabia, and how are you addressing them?

Like any market, Saudi Arabia presents its own unique set of challenges, but we see these as opportunities to innovate and better serve our customers. One of the primary challenges we face is raising awareness about the importance of a strong online presence, especially among small and medium-sized enterprises (SMEs). Many business owners in Saudi Arabia are experts in their fields but may not fully grasp the potential impact digital tools can have on their growth. That is why we launched our extensive educational initiatives in partnership with Monsha'at Academy. In addition to the courses that explain the benefits of going digital in practical, relatable terms, we also produce localized content – blog posts, webinars, and social media campaigns – that showcase success stories of Saudi businesses that have thrived online to help inspire others.

Another challenge is the varying levels of digital literacy among entrepreneurs. To tackle this, we've focused on making our products as user-friendly as possible. Our Arabic Website Builder, for instance, was designed with an intuitive interface that allows even those with limited technical skills to create professional-looking websites. We also offer extensive customer support in Arabic language, ensuring that help is available when needed.

These challenges are not roadblocks, but we see these as stepping stones in our journey to empower Saudi entrepreneurs. By addressing them head-on, we're not only improving our services but also contributing to the overall growth of the digital ecosystem in Saudi Arabia.

How is GoDaddy using new technologies like AI and cloud computing?

At GoDaddy, we're always excited about leveraging new technologies to help enhance our offerings and make life easier for our customers. AI and cloud computing are two areas where we're making significant strides.

We've recently introduced several AI-powered tools that are transforming how small businesses manage their online presence. One of our most exciting innovations is the Generative AI Prompt Library. This tool helps entrepreneurs create engaging content for their websites and social media platforms quickly and easily. It's particularly useful for business owners who may not have the time or resources for extensive content creation. By simply inputting a few key details about their business, they can generate professional, relevant content that resonates with their audience.

GoDaddy is also using AI to enhance our customer service. Our AI-powered chatbots can handle basic queries and guide customers to the right resources, allowing our human support team to focus on more complex issues. This results in faster response times and more efficient problem-solving for our customers.

Moving on to cloud computing, this technology is at the core of our hosting services. We leverage cloud infrastructure to provide scalable, reliable hosting solutions that can grow with our customers' businesses. This means that whether you're a small startup or a rapidly expanding enterprise, our cloud-based hosting can accommodate your needs without interruption.

In the realm of e-commerce, our cloud-based solutions enable businesses to handle large volumes of transactions securely and efficiently, even during peak shopping periods. This scalability is crucial for businesses participating in major shopping events or experiencing rapid growth.

Security is another area where we're leveraging both AI and cloud computing. We use AI algorithms to help detect and deter security threats in real-time, while our cloud infrastructure allows us to implement robust security measures across our entire network.

What recent projects has GoDaddy launched in Saudi Arabia?

Entrepreneurs can utilize our Arabic Website Builder which includes more locally relevant templates, featuring designs that resonate with Saudi consumers and support local aesthetic preferences. We've also improved the Arabic content creation features, making it even easier for businesses to create engaging, SEO-friendly content in Arabic.

In response to the growing e-commerce sector in Saudi Arabia, we've launched a series of e-commerce workshops. These hands-on sessions guide entrepreneurs through the process of setting up an online store, managing inventory, processing payments, and marketing their products effectively. We've seen great enthusiasm for these workshops, especially from traditional retailers looking to expand into the digital space.

GoDaddy has also participated in key entrepreneurship events across the Kingdom, including Biban 23 which has allowed us to engage directly with the Saudi business community, understand their needs firsthand, and showcase how our tools and solutions can support their growth. 

How does GoDaddy approach social responsibility in Saudi Arabia?

At GoDaddy, our approach to social responsibility in Saudi Arabia focuses on empowering local communities through education and entrepreneurship. This commitment is closely aligned with the Kingdom's Vision 2030 goals, particularly in fostering digital transformation and supporting SMEs.

One of our key initiatives is our partnership with Monsha'at Academy, where we offer free digital skills training to aspiring entrepreneurs across the Kingdom. These courses cover a wide range of topics, from basic digital literacy to advanced online business strategies, helping individuals start and grow their businesses.

What's GoDaddy's long-term vision for Saudi Arabia and the Middle East?

GoDaddy supports local entrepreneurs and small business owners in Saudi Arabia and the Middle East. We aim to be more than just a service provider – we want to be a trusted partner in every entrepreneur's journey, from the moment they conceive their business idea to when they're ready to scale globally.

GoDaddy continues to offer easy to use and affordable online tools and solutions, along with expert customer care and guidance, to help Saudi entrepreneurs and small business owners across the region, along their journey of business growth.  

Shaimaa Ibrahim

Saudi Arabia started 2024 with a bright economy ahead by activating the Regional Headquarters (RHQ) Program which mandates foreign firms to have a regional headquarters in Saudi Arabia to start or expand their businesses in the Kingdom.

The program aims to boost foreign investments in the Kingdom and enhance its non-oil economy, in alignment with Vision 2030’s objectives to diversify the national economy, raise foreign direct investments (FDI) contribution to the gross domestic product (GDP) to 5.7%, and increase the net value of FDI inflows to hit SAR 388 billion annually.

Supervised by the Saudi Ministry of Investment (MISA) and the Royal Commission for Riyadh City, the RHQ Program targets alluring global firms to establish their headquarters in Saudi Arabia, transforming the Kingdom into an attractive investment destination that provides distinctive advantages and services.

Targeted sectors 

Saudi Arabia owns several pull factors for investors and foreign capitals that positioned the Saudi economy as the largest in the Middle East and North Africa (MENA) region and the eighteenth-largest in the world. 

According to the Saudi Minister of Investment Khalid Al-Falih, 180 global firms obtained licenses to establish their headquarters in Riyadh, surpassing the Kingdom’s goal to attract 160 global firms by the end of 2023.

The minister affirmed that this achievement was due to the Kingdom’s stable economy and strategic location, in addition to its unique competencies.

In a related context, the leading business expansion platform in the MENA region AstroLabs successfully accelerated expansions of more than 600 global and regional firms to the Kingdom.

AstroLabs’ CEO Roland Daher affirmed that global firms working in various sectors increasingly aspire to expand in the Saudi market, especially the multinational ones and those achieving annual revenues of more than $1 billion.  

He further noted that the number of firms that expanded their businesses in the Kingdom has doubled in one year.

The RHQ Program targets attracting firms in several sectors, including infrastructure, logistics services, advanced industries, and digital services. The Kingdom also enjoys massive investment opportunities in many sectors notably retail, real estate, tourism and entertainment, event organization, and other professional services, such as banking and tax consultancies

Tax incentives

The Saudi Ministry of Investment (MISA) added a 30-year tax relief incentive package to the RHQ Program, in coordination with the Ministry of Finance and Zakat, Tax, and Customs Authority (ZATCA) to streamline the process for multinational firms establishing their RHQ in Saudi Arabia.

The incentive package includes a 0% rate for corporate income tax (CIT), withholding tax (WHT) on dividend payments from RHQ to its foreign parent entity, WHT for payments to related parties, and WHT for services payments to non-resident unrelated parties necessary to carry out RHQ activities as defined in the tax rules.

Economic impact

The RHQ Program is expected to have a significant economic impact on all sectors as well as the products and major services provided in the Kingdom with local content. This accordingly will enhance the competitiveness of the Saudi market and transform Riyadh into a global business hub and a destination for international economic entities.

Last January, the General Statistics Authority (GASTAT) announced that the total FDI stock in Saudi Arabia recorded SAR 762 billion by the end of 2022, while the FDI inflows into the Kingdom reached SAR 123 billion.

GASTAT also revealed that the Kingdom recorded a significant growth in the net FDI flows in 2022 with net flows amounting to SAR 105 billion.

Furthermore, the total FDI inflows into the Kingdom hit SAR 17 billion during the third quarter (Q3) of 2023, while the net FDI flows touched SAR 11 billion in the same quarter.

According to the CEO of the Royal Commission for Riyadh City Fahd Al-Rasheed, the RHQ Program is forecasted to add around SAR 67 billion (almost $18 billion) to the national economy, in addition to creating 30,000 new jobs by 2030.

It is worth noting that Saudi Arabia plans to attract 480 global firms to establish their regional headquarters in the Kingdom by 2030.

Job opportunities

The RHQ Program will provide numerous jobs for Saudi youth across new sectors, enhancing the Kingdom’s non-oil economy. Additionally, the regional headquarters will bring the best global expertise to the Kingdom, enabling Saudi talents to improve their skills and gain experience.

The Kingdom is also expected to recognize its goals to achieve sustainability and enhance citizens’ quality of life as Riyadh is anticipated to be among the top 10 economies in the world, notably after selecting Saudi Arabia to host Expo 2030 and the 2029 Asian Winter Games. Hosting these mega events will attract more global firms to the Kingdom to participate in such events and will also create several job opportunities.

Green Projects 

The National Investment Strategy and the Saudi Green Initiative target injecting SAR 150 billion to encourage the private sector to invest in green initiatives and projects in Riyadh.

Recently, the Kingdom started using clean energy, green hydrogen, and solar panels as part of its endeavors to become an eco-friendly country, paving the way for global firms to invest in the Kingdom.

Logistics services

Moreover, the RHQ Program will enhance the Kingdom’s position regionally and globally as it will elevate land, maritime, and air transportation, boost airports’ efficiency, and enhance tourism and entertainment sectors. Additionally, the global firms will be able to contribute to the logistics ecosystem through the 12 ports established across the Kingdom. 

Translation: Noha Gad