Noha Gad

The GCC region is undergoing a historic economic transformation, driven by visionary diversification strategies, technological adoption, and unprecedented cross-border collaboration. In this dynamic investment landscape, global investors seek both opportunities and expert guidance, the kind that comes from seasoned regional players.

Among these, Freedom International Group (FIG) positioned itself strategically in terms of building a system for managing many businesses and growing unicorns, with a proven track record of identifying and capitalizing on regional growth sectors, from infrastructure and renewable energy to venture capital and digital transformation.

In this regard, Sharikat Mubasher held an Interview with Chairman and CEO Narek Sirakanyan to know more about FIG's approach and how it contributes to the region's economic ambitions, as well as its regional expansion strategy.

What is FIG’s core investment philosophy, and how does it align with the economic visions of GCC countries?

At Freedom International Group (FIG), we identify high-growth opportunities in sectors that are critical to the future development of the GCC region. We particularly focus on healthcare, technology, and hospitality, as these areas align closely with the economic diversification strategies outlined in the Vision 2030 plans of countries like Saudi Arabia and the UAE. We believe in supporting transformative industries that contribute to long-term economic growth, innovation, and social impact. Our investments are guided by a commitment to sustainability and scalability, ensuring that we back ventures that can make a meaningful contribution to both regional economies and global markets. Our commitment is more than just financial; we are also bringing our expertise from France for our nutraceuticals, from Italy for our coffee, from the US for our IT, etc. We are coming with resources and real experts who will be developing and educating locals and passing on their core competencies. 

The group mentions 'growing unicorns' as a core focus. What specific metrics do you use to identify potential unicorns early?

To identify potential unicorns, we focus on a range of factors, including but not limited to market size, scalability, and innovation. The key criterium is that a unicorn must contribute to our existing ecosystem and help other mini unicorns to grow to a full-scale unicorn. The second criterium is to what extent we can disrupt the market we are entering through that acquisition or with a new product line with our innovative IT expertise to find a more efficient way to attract new customers.

For us, it's important to grow more than 25% per year on a stable, consistent basis. And we are analyzing if our existing customer base will be interested in the new company.

Project V, for instance, is an umbrella brand for health and beauty products produced in France and Switzerland. We offer over 40 products from the popular Classic Hit, Direct Hit, Junior Hit, and Beauty Hit lines. Project V creates innovative products that help people take care of their health and beauty, live a full life, and improve its quality. Project V is a great way for everyone to extend active longevity and become happy. We plan a 150 million Euros turnover in 2025, covering 25 countries, and these figures will double by 2030. Our products will grow in the same period from 100 to 150.

You recently opened a new office in the UAE. How do you plan to differentiate yourself against dominant local players in the region?

Our presence in the UAE is part of our broader strategy to strengthen our regional footprint. While there are many established players in the market, we differentiate ourselves by focusing on sectors that have the potential for high-value transformation, such as next-gen healthcare solutions and AI-driven technology. We are also committed to leveraging our international expertise to foster cross-border collaborations and bring global best practices to the local market. By focusing on these emerging sectors and delivering tailored solutions, we aim to carve out a unique position in the UAE market.

FIG has a presence in 19 countries, but not yet in Saudi Arabia. Is entering the Saudi market part of your growth strategy?

Yes, Saudi Arabia is certainly on our radar. The Kingdom is undergoing a major transformation under Vision 2030, and the opportunities in healthcare, technology, and tourism are vast. While we currently don’t have a physical presence in the market, we are actively monitoring investment opportunities and partnerships that align with our core areas of expertise. As the Kingdom continues its diversification efforts, we are exploring the right time and the best way to enter the market, ensuring that we contribute meaningfully to its ambitious goals. Some of our projects can perfectly suit the giga-projects that the MBS is building, and we will successfully integrate our nutraceuticals into those projects, with the Firstline to their giga malls, hotels and hospitality, etc. Firstline is a digital space where each business competes for existing and potential clients. For users, Firstline is a mobile app that makes it convenient to truly find the best spots in their town, to purchase at great prices, and to earn extra revenue, including on the purchases of their friends. The total investment in the project has already exceeded $7 million. The plan is, over the next 3 years, to scale the project in all 17 countries where the Freedom International Group investment holding is represented. We plan to reach 17 countries by 2026 with a turnover of 50 million dollars, and 45 countries in 2030 with an annual turnover of 200 million dollars. We will rapidly achieve 100,000 users and 5,000 businesses, and later evolve towards neuro-personalization with tailor-made content for each user.

How do you assess the GCC's overall competitiveness compared to other emerging markets you operate in?

The GCC is a highly competitive and dynamic region, with significant advantages in terms of infrastructure, access to capital, and strategic location. Compared to other emerging markets, the GCC benefits from stable governance, progressive regulatory frameworks, and a commitment to diversifying its economies. These factors make the region an attractive destination for investors and entrepreneurs. While other emerging markets also offer compelling opportunities, the GCC stands out due to its progressive approach to innovation and economic development. Personally, I found it easy to meet anyone; everyone is open and ready to listen to new ideas and projects, and is open and excited to take risks. This is something we believe differentiates the region. 

Dubai has long been the regional business hub. Do you see other GCC cities catching up in terms of investable infrastructure?

While Dubai remains a key business hub, we are seeing other GCC cities like Riyadh and Muscat making significant strides in terms of infrastructure and investment opportunities. For instance, Riyadh’s push to become a global tech and innovation center is gaining momentum, while Muscat is positioning itself as an emerging hub for tourism and hospitality. We see tremendous potential in these cities, and as FIG continues to expand, we are actively considering opportunities in these locations, which offer unique advantages for businesses and investors alike.

Saudi Arabia represents almost 50% of the GCC’s GDP. Does the pace of the Kingdom’s economic diversification align with global investors’ expectations?

The pace of Saudi Arabia’s economic diversification is impressive and aligns with the expectations of many global investors. The Kingdom’s ambitious Vision 2030 is reshaping the economy, focusing on key sectors such as renewable energy, technology, healthcare, and entertainment. This transformation is creating a wealth of new investment opportunities, and we are seeing increased interest from both regional and international investors. While challenges remain, particularly around implementation, the Kingdom’s commitment to opening up new markets and fostering innovation positions it well for future growth. As a global investor, we are confident that Saudi Arabia will continue to be a key player in the regional and global economy.

Kholoud Hussein 

In the not-so-distant past, launching a billion-dollar startup required teams of engineers, layers of management, and years of grueling development cycles. But artificial intelligence is rewriting that playbook—and perhaps the entire logic of scale in tech entrepreneurship. Today, a single founder armed with advanced AI coding tools can realistically build and scale a company to unicorn status.

From Code to Company: What’s Changed?

AI-assisted development tools like GitHub Copilot, Replit Ghostwriter, and open-source models such as Code Llama and StarCoder have reduced the time and expertise needed to ship high-quality software. Tasks that once required entire departments—UI design, code debugging, documentation, even marketing content—can now be streamlined or automated using AI.

As a result, the cost of iteration has plummeted. A solo founder no longer needs a CTO, product manager, or even a full-stack engineer to test an idea, launch an MVP, or scale a product. The barrier to building has shifted from technical capability to imagination and execution.

Why It Matters for the Startup Ecosystem

This paradigm shift opens the door to a new kind of lean startup—hyper-efficient, AI-augmented, and capable of exponential growth without the traditional burn rate. Investors are taking note: seed rounds are increasingly funding one-person teams with bold visions and AI-native toolsets.

We're witnessing the early signs of what could be a profound restructuring of startup dynamics. The concept of "unicorns with skeleton crews" is no longer theoretical. AI not only democratizes access to tech development, but it also questions how many people are truly needed to build world-changing products.

Real-World Signals

In 2024, multiple startups reached multimillion-dollar valuations with teams of fewer than five people. One standout example is a solo founder in Europe who used open-source AI models and no-code platforms to build a SaaS company that now serves over 100,000 users, without a single hire.

Tech giants are also embracing this trend. Google and Meta are investing in AI agents and developer tools that could soon enable even more automation in software lifecycles, further pushing the limits of what a solo entrepreneur can achieve.

The Challenges Ahead

Of course, there are caveats. Scaling beyond product-market fit still requires human capital—customer service, sales, operations, and compliance. And with AI-generated code comes new risks: security vulnerabilities, ethical blind spots, and IP ambiguity.

But the trajectory is clear: AI is turning individuals into teams, and teams into outliers. What this means for employment in tech, organizational design, and investment strategies is yet to be fully understood, but the disruption is underway.

Finally, the one-person unicorn may not yet be mainstream, but it's fast becoming a symbol of what’s possible in the AI economy. As tools evolve and adoption accelerates, we’re entering an era where the limits of company building are no longer defined by headcount, but by vision, speed, and strategic use of artificial intelligence.

The billion-dollar startup of tomorrow might be built not by a hundred engineers, but by one founder and a constellation of AI copilots.

Kholoud Hussein 

In recent years, Saudi Arabia has witnessed a remarkable surge in its startup ecosystem, with several companies achieving the coveted "unicorn" status—valuations exceeding $1 billion. This growth was fueled by substantial venture capital investments, a supportive regulatory environment, and ambitious national initiatives like Vision 2030. However, as global economic conditions shift and investor sentiments wane, the once-thriving unicorn landscape in the Kingdom faces significant challenges, leaving many startups grappling with uncertainty.

The Rise of Saudi Unicorns

Saudi Arabia's journey into the unicorn club began with notable successes in the fintech and e-commerce sectors. Companies like STC Pay, Jahez, and Tabby emerged as pioneers, showcasing the potential of Saudi startups on the global stage.

• STC Pay: Launched as a digital wallet by Saudi Telecom Company, STC Pay achieved unicorn status in 2020 after Western Union acquired a 15% stake, valuing the company at over $1 billion.
• Jahez: A food delivery platform that went public in 2021, Jahez's IPO was oversubscribed, reflecting strong investor confidence and valuing the company at approximately $2.4 billion.
• Tabby: A fintech company offering buy-now-pay-later services, Tabby recently doubled its valuation to $3.3 billion following a successful $160 million Series E funding round. 

These success stories were emblematic of a broader trend, with Saudi Arabia's startup funding experiencing a compound annual growth rate (CAGR) of 49% between 2020 and 2024. 

The Decline in Startup Funding

Despite the early momentum, 2024 marked a turning point. Venture capital (VC) funding in Saudi Arabia witnessed a sharp decline, with total investments dropping 70% year-over-year to $700 million across 186 transactions.

This downturn was the steepest in the Middle East and North Africa (MENA) region, where overall VC funding decreased by 29% to just under $2 billion. 

Several factors contributed to this decline:

• Global Economic Uncertainty: Rising interest rates and inflation led to increased investor caution worldwide, affecting funding availability.
• Market Saturation: Certain sectors, particularly fintech and e-commerce, became crowded, making it challenging for new entrants to secure investments.
• Valuation Corrections: Overinflated valuations in previous years led to a market correction, with investors seeking more sustainable business models and clearer paths to profitability.

Impact on Startups

The funding contraction has had profound implications for Saudi startups:

• Delayed Expansion Plans: Many startups have postponed scaling operations or entering new markets due to limited capital.
• Operational Challenges: Reduced cash flow has forced companies to streamline operations, often leading to layoffs and cost-cutting measures.
• Investor Scrutiny: Investors are now exercising greater due diligence, prioritizing startups with proven revenue streams and sustainable growth models.

Ahmed Al-Fahad, CEO of a Riyadh-based tech startup, notes: "The investment landscape has become more challenging. We are focusing on achieving profitability and demonstrating tangible value to attract cautious investors."

Government Initiatives and Support

In response to these challenges, the Saudi government continues to bolster the startup ecosystem through various initiatives:

• Saudi Venture Capital Company (SVC): Established to stimulate venture investments, SVC has been instrumental in providing funding and support to startups. In 2024, SVC reported that the top five deals in Saudi Arabia accounted for 66% of total VC funding, indicating a concentration of investments in select high-performing startups. 
• Regulatory Reforms: Efforts to streamline business registration and licensing processes aim to reduce barriers for new startups.
• Financial Incentives: Tax exemptions and grants are being offered to attract both local and international entrepreneurs.

Yasir Al-Rumayyan, Governor of the Public Investment Fund (PIF), emphasizes the Kingdom's commitment: "Saudi Arabia is strategically positioned to become a global hub for innovation. Our investments in technology and infrastructure are designed to support startups and drive economic diversification."

A New Era for Saudi Startups

The transition from the unicorn boom to a more measured startup ecosystem should not be seen as a failure but rather a necessary evolution. The Kingdom is still home to ambitious entrepreneurs, cutting-edge innovations, and a growing digital economy, all of which are crucial in shaping the next wave of business success stories.

Noura Al-Mutairi, founder of a Jeddah-based healthtech startup, puts it: "This period is a test of resilience. It's pushing us to innovate smarter, operate leaner, and build foundations that can withstand economic fluctuations. Those who adapt will emerge stronger."

Saudi Arabia's startup sector is at a crossroads, but with the right strategy, government backing, and entrepreneurial spirit, the country has the potential to produce not just more unicorns, but sustainable, high-impact companies that will define the future of business in the region.

While the decline in funding presents challenges, it also offers an opportunity for introspection and recalibration within the Saudi startup ecosystem:

• Focus on Sustainability: Startups are encouraged to develop robust business models that prioritize long-term viability over rapid expansion.
• Diversification of Sectors: Beyond fintech and e-commerce, there is potential in sectors like healthcare technology, renewable energy, and artificial intelligence.
• Strengthening Local Investment: Cultivating a culture of local angel investors and venture capitalists can reduce dependence on international funding sources.

Finally, the fading unicorn boom in Saudi Arabia signals a transformative phase for the nation's startup landscape. While the challenges are palpable, they also pave the way for a more sustainable and diversified entrepreneurial environment. The era of inflated valuations and aggressive scaling is giving way to a more pragmatic approach, where profitability, resilience, and innovation take center stage.

Despite the decline in venture capital funding, Saudi Arabia remains one of the most promising startup ecosystems in the Middle East, driven by its pro-business policies, strong government backing, and ambitious digital transformation initiatives. The country's commitment to Vision 2030 ensures that entrepreneurs will continue to find opportunities to innovate and thrive in an evolving economic landscape.

As investors become more selective, startups must pivot their strategies toward long-term sustainability, prioritizing revenue generation over rapid expansion. Sectors such as healthtech, AI, renewable energy, and logistics present significant untapped potential for growth. Encouraging a culture of local investment through angel networks and venture capital firms will also help mitigate reliance on foreign funding.