Ghada Ismail

In today’s startup economy, funding stories usually focus on big venture capital rounds and billion-dollar valuations. But behind the scenes, another financial layer is quietly reshaping the investment landscape, which is the secondary market. It’s becoming increasingly important as startups stay private longer and investors look for earlier liquidity.

So, What Exactly Is a Secondary Market?

In simple terms, the secondary market is where existing shares of a startup are bought and sold between investors, rather than issued by the company.

• In a primary market, a startup raises money by issuing new shares, and the cash goes directly to the company.
• In a secondary market, shareholders like founders, early employees, or angel investors sell their shares to other investors, and the cash goes to the seller, not the startup.

No new capital enters the business, but ownership changes hands.

Why Does It Exist?

Startups today often take 7–10 years to reach an IPO or acquisition. During that long wait, early investors and employees often hold paper wealth without access to real liquidity.

This is where the secondary market plays a role:

• Founders and early employees can sell a portion of their shares without waiting for an exit.
• Angel investors or early VCs can partially cash out and reallocate capital to new startups.
• New investors gain access to high-growth companies that aren’t raising fresh primary capital anymore.

In short, it creates liquidity in a traditionally illiquid asset class.

Who’s Involved?

Sellers may include:

• Founders seeking financial flexibility or diversification.
• Employees with vested stock options.
• Early-stage investors reducing risk or locking in profits.

Buyers are typically:

• Growth-stage venture funds.
• Sovereign wealth funds or family offices.
• Corporates or secondary-focused investment firms.

Why It’s Important to the Startup Ecosystem

1. Supports Founder and Employee Stability
Secondary sales allow founders to secure financial stability without exiting the company. This reduces pressure to sell early and helps them stay committed for the long term. Employees, especially in fast-growing startups, view liquidity opportunities as part of their compensation, making the company more attractive for talent.

2. Encourages Capital Recycling
When angel investors or early VCs exit part of their stake, they can reinvest in new startups. This creates a healthier, self-sustaining investment ecosystem.

3. No Share Dilution
Unlike primary fundraising, secondary transactions don’t dilute ownership. This makes it attractive for startups that want to reward shareholders without changing equity structures.

But It’s Not Without Challenges

Secondary market activity must be carefully managed. Common concerns include:

• Valuation Disputes: What is the real price per share in a private company with no public market?
• Cap Table Complications: Too many small or misaligned shareholders can create governance challenges.
• Right of First Refusal (ROFR): Most startups legally control who can buy shares, which can slow negotiations.
• Investor Misalignment: New investors buying heavily in secondary markets might pressure for an early exit or faster returns.

Examples and Global Relevance

Globally, companies like SpaceX, Stripe, and Databricks regularly run structured secondary programs, allowing employees and early investors to sell a portion of their shares.

In emerging ecosystems such as Saudi Arabia and the wider MENA region, secondary transactions are becoming more common, especially as startups reach growth-stage funding and sovereign wealth funds show increasing interest.

Why It Matters?

As private companies stay private longer and valuations soar, the traditional idea that investors must wait for an IPO to see returns is fading. Secondary markets are now a strategic tool:

• For founders: financial safety without losing control.
• For investors: faster liquidity and portfolio rebalancing.
• For ecosystems: better capital circulation and maturity.

Wrapping Things Up…

Secondary markets used to be a quiet corner of the investment world. Today, they’re a key part of how modern startup ecosystems function. They provide liquidity, reduce risk, reward early contributors, and help capital flow more efficiently, all while allowing startups to keep growing without going public too early.

Noha Gad

The dynamic process of establishing a new business venture involves a blend of creativity, risk-taking, and vision to create value and drive economic growth. Entrepreneurs often seek to disrupt existing markets by introducing brand-new solutions, and their efforts can lead to significant social and technological advancements. This mindset involves identifying opportunities, leading change, and managing risks to build sustainable enterprises that can scale and influence industries over time.

The growing interest in solo business ventures and startups is reshaping the entrepreneurial landscape as more individuals choose to launch businesses on their own, triggered by the desire for autonomy, flexibility, and direct control over their work and income. This surge reflects an ideal shift where people prefer manageable, passion-driven enterprises that they can operate independently rather than large, complex organizations. Hence, the solopreneur model emerged as an emphasis on self-reliance, direct responsibility, and often a lifestyle-oriented approach to business.

What is a solopreneur?

A solopreneur is an individual who owns, manages, and runs their business independently without the support of co-founders, partners, or full-time employees. They typically start their ventures with personal funds and maintain tight control over every aspect of operations, favoring stability and manageable growth.

Key characteristics of a solopreneur include versatility, as they perform multiple roles themselves; high accountability, as they are responsible for all decisions and outcomes; and resourcefulness, often working with limited resources and finding cost-effective solutions to sustain their business.

Unlike traditional business owners who build teams, solopreneurs typically operate on a smaller scale, focusing on manageable business models that align with their skills and lifestyle preferences.

Solopreneur vs. Entrepreneurs

Key differences between solopreneurs and entrepreneurs include their approach to business structure, growth goals, risk, and control.

*Business structure

Solopreneurs: act as both the founder and the employee who handles every aspect of the business. 

Entrepreneurs: focus on building and managing teams. They delegate responsibilities, hire specialists, and create systems that allow the business to operate independently.

*Growth goals

Solopreneurs: seek sustainable, manageable businesses that support their lifestyle and financial independence. They prioritize steady income and control over rapid growth

Entrepreneurs: aim for scale and long-term expansion, targeting market dominance, multiple revenue streams, and sometimes preparing for acquisitions or an eventual exit.

*Funding

Solopreneurs: They typically self-fund their ventures, bearing lower financial risk as their operations are smaller and less complex.

Entrepreneurs: They require substantial capital investment to cover payroll, infrastructure, and growth initiatives.

*Control

Solopreneurs: maintain complete control over every business decision

Entrepreneurs: share control with partners, investors, and employees by delegating authority to manage complex business functions.

*Business focus

Solopreneurs: focus on a single product or niche, maintaining simplicity and direct client relationships.

Entrepreneurs: handle multiple projects, markets, or product lines.

Pros and cons of being a solopreneur

Being a solopreneur comes with several notable advantages and disadvantages. Understanding these can help individuals decide if this path aligns with their personal goals, skills, and lifestyle preferences.

Pros:

• Full creative control over business vision, brand, and decision.
• Flexibility to set schedules and work from anywhere, supporting better work-life balance.
• Low overhead costs as the is no need to pay salaries or office rent.
• Ability to adapt rapidly to market changes and make quick decisions.
• Retain all profits.

Cons:

• High workload as they handle every aspect of the business. 
• Limited expertise outside core skills.
• Risk of isolation and loneliness due to lack of team interaction and collaboration.
• Bearing full financial and operational risks.

There are many factors that individuals must consider to decide which bath is right. This includes: personal goals and ambitions, risk tolerance, desire for control versus collaboration, and lifestyle preferences. Individuals who seek complete autonomy and manageable, lifestyle-friendly businesses may prefer solopreneurship, while those driven by growth, innovation, and building sizable enterprises with multiple stakeholders may find entrepreneurship more suitable. 

Finally, both solopreneurs and entrepreneurs play pivotal roles in the business ecosystem, and understanding their differences empowers you to forge a fulfilling and impactful journey in the world of business.

Noha Gad

The retail sector in Saudi Arabia is undergoing robust growth, driven by a digitally savvy young population, increasing consumer confidence, and shifting spending habits. According to a report published by the IMARC Group, the size of the e-commerce market in Saudi Arabia is projected to grow to $708.7 billion in 2033, showing a compound annual growth rate (CAGR) of 12.8% from 2025 to 2033. Additionally, experts anticipate that 75% of retail spending will come from Saudi youth by 2035. They also expected the Saudi e-commerce sector to grow significantly, with one in four retail transactions happening online.

The adoption of retail technology (retail tech) stands at the heart of this revolution. Saudi retailers rapidly embrace artificial intelligence (AI) for personalized marketing and demand forecasting, Internet of Things (IoT) solutions for smart inventory management, biometric authentication, mobile wallets, and other seamless payment options.

The retail tech market in Saudi Arabia is expected to achieve revenue of $7.2 billion by 2033, with a CAGR of 32.8% from 2025 to 2033, according to recent figures by the Grand View Horizon.

Digital transformation in the Saudi retail sector

Saudi Arabia is one of the most connected markets in the region, which fuels widespread adoption of digital retail technologies, driven by government initiative under Vision 2030 and evolving consumer expectations. Emerging technologies play a crucial role in revolutionizing the retail industry in Saudi Arabia. Most of the retail tech companies in Saudi Arabia harness AI for predictive analytics, personalized marketing, automated customer service through chatbots, and demand forecasting, ultimately enhancing operational efficiency and creating tailored shopping experiences. Also, IoT technologies are becoming integral, with smart shelves, digital signage, and interactive displays improving real-time inventory management and product visibility. 

Software-as-a-service (SaaS) solutions could support digital sales growth by enabling small and medium enterprises (SMEs) to digitize their operations, manage logistics, and accept online payments. Additionally, the rollout of 5G networks significantly enabled seamless integration of online and offline retail experiences, supporting omnichannel strategies that blend physical and digital interactions for consumers.

Together, these developments are transforming the retail industry in Saudi Arabia into a digitally empowered, consumer-centric ecosystem. 

The rise of B2B marketplaces

Business-to-Business (B2B) marketplaces in Saudi Arabia are rapidly emerging as vital platforms that transform traditional wholesale and procurement ecosystems. This transformation was driven by several factors, notably the integration of credit-scoring and invoice financing modules, the adoption of compliance tools, and the high penetration of mobile wallets.

The Saudi market encompasses key B2B marketplaces, such as Sary, one of the largest online B2B marketplaces for wholesale purchases; Ordo, a pioneering B2B platform focusing on the FMCG market; Lawazem, a one-stop shop for businesses to procure products directly from a network of suppliers; Farmi, a B2B online platform that connects Saudi farmers and SMEs to source and sell local farm products; Retailo, the leading B2B digital distribution company; and BRKZ, the pioneering B2B marketplace for building materials.

The ongoing rise of B2B marketplaces plays a pivotal role in transforming wholesale trade in the Kingdom, fostering increased efficiency, access to broader supplier networks, and enabling a more modern, digitally connected retail supply chain ecosystem.

Successful B2B marketplaces share several features that drive procurement efficiency, enhance buyer-supplier interactions, and support business growth. This includes:

• Leveraging AI and cloud-based technologies to automate sourcing, ordering, invoicing, and fulfillment processes, thereby reducing manual errors and improving order accuracy.
• Integrating with ERP and inventory management systems to enable real-time product availability, dynamic pricing, and personalized catalogues tailored to meet buyers’ needs.
• Embedding credit scoring algorithms to assess buyer creditworthiness instantly.
• Adhering to Saudi data protection and commercial regulations to secure document vaults and digital contract management features.
• Adopting mobile wallets and biometric authentication to enhance payment security and convenience. 

The rise of B2B marketplaces is pivotal to reducing supply chain fragmentation and procurement complexities in the Kingdom, as they streamline fragmented traditional supply chain networks by centralizing their interactions and automating procurement processes.

By enhancing transparency through verified supplier networks, B2B marketplaces mitigate risks associated with dealing with unknown vendors, ensuring product quality and contractual adherence, in addition to boosting confidence among buyers and sellers.

Additionally, B2B platforms incorporate ESG standards by promoting suppliers who follow sustainable practices and prioritize eco-friendly products; meanwhile, digital tools enable assessment of carbon footprints and resource efficiencies within supply chains.

Despite all these benefits, the B2B retail sector in Saudi Arabia still faces fragmented supplier bases characterized by inconsistent service levels and regional disparities. Compliance with evolving regulatory standards, such as data privacy laws and commercial auditing requirements, adds complexity for both platforms and users.

Ongoing investments are essential to sustain growth and scalability. Investments are crucial to upgrading digital infrastructure, including cloud computing, AI, and cybersecurity, ultimately enhancing platform capabilities to support advanced analytics and omnichannel integration. This will improve operational efficiency, reduce downtime, and increase adaptability to future market disruptions.

The future of B2B marketplaces in Saudi Arabia is promising, propelled by accelerating e-commerce growth and supportive government initiatives. This transformation will be triggered by key trends: the continued expansion of B2B marketplaces that convert fragmented wholesale supply chains into streamlined, automated ecosystems; the increasing importance of embedded financial services; enhanced digital payment integration; supply chain and logistics innovations; and the integration of ESG standards and sustainable procurement practices.

Eventually, the Saudi retail sector is at the forefront of a transformative journey fueled by rapid digital adoption and innovative B2B marketplaces. Sophisticated retail tech solutions are reshaping the traditional retail landscape into a dynamic, digitally native ecosystem. By addressing long-standing challenges such as supply chain fragmentation, compliance, and payment inefficiencies, digital transformation and modern B2B platforms are enhancing transparency, trust, and operational agility. 

Noha Gad

In today’s dynamic global economy, startups and innovative businesses play a pivotal role in driving growth, job creation, and technological advancement. This vibrant startup environment thrives on agility, disruption, and the continuous pursuit of novel solutions. Parallel to this evolution is the rise of the gig economy, a labor market characterized by short-term, freelance, and project-based work enabled by digital platforms. 

The gig economy complements the startup and business ecosystem by offering flexible income opportunities and fostering entrepreneurial activity. The concept of gig work roots stretching back centuries to early human societies, where task-based labor was the norm.

The digital revolution in the late 20^th century transformed gig work by enabling online platforms to connect freelancers with clients globally, facilitating a wide range of short-term, project-based, and freelance work across industries, including ride-sharing, food delivery, high-skilled remote consulting, digital marketing, IT development, and healthcare services.

How does the gig economy work?

This economy operates on a fundamentally different business model from traditional employment, centered around flexibility, technology platforms, and task-based work. Gig workers typically take on short-term assignments, freelance projects, or on-demand jobs often sourced and managed via digital platforms, which act as intermediaries, connecting businesses or individuals needing services with independent contractors worldwide.

One of the key features of the gig economy is that it leverages AI-powered algorithms to match gig workers with assignments based on skills, location, and availability, optimizing efficiency for both parties. Companies can access diverse, scalable talent pools across geographies, benefiting from on-demand expertise without long-term commitments.

Additionally, many businesses integrate gig workers alongside traditional full-time staff, using gig labor to manage peak workloads or specialized tasks. Overall, the gig economy functions as an agile, technology-enabled labor market providing flexible opportunities for workers and cost-effective, scalable solutions for businesses, significantly reshaping the future of work.

Pros and Cons

The gig economy offers diverse benefits for both workers and businesses in today’s growing labor market. For workers, it provides:

-Flexibility and autonomy. It allows workers to choose when, where, and how much they work, enabling a better work-life balance.

-Diverse income opportunities. It paves the way for multiple income streams across various industries, including emerging fields like IT, finance, healthcare, and digital marketing.

-Skill development. By working on varied projects, freelancers can gain experience and build specialized skills and entrepreneurial capabilities.

Additionally, the gig economy helps businesses to:

-Reduce costs by saving on traditional employment expenses such as benefits, office space, onboarding, and long-term commitments.

-Expand teams. Startups can quickly scale teams up or down to meet demand and seize new opportunities without the rigid overhead of full-time staff. 

-Access specialized talent: the gig platform offers access to a global, diverse pool of flexible, highly skilled professionals, allowing startups to fill specific skill gaps.

-Bolster innovation and productivity. Flexible schedules for gig workers would help startups foster creativity and maintain productivity across different time zones.

Although gig economy jobs offer flexibility and independence, they also come with challenges, such as the lack of employee benefits, navigating taxes, securing health insurance, dealing with income fluctuations, and the lack of a workplace community.

How does the gig economy support startups?

The gig economy plays a pivotal role in reshaping entrepreneurship and business operations worldwide. Researches show that individuals participating in the gig economy are about twice as likely to start their own businesses compared to non-gig workers. This trend is most prominent among first-time entrepreneurs, younger workers, and those seeking flexible opportunities.

For many workers, gig work provides a low-risk environment to gain industry experience, test business ideas, and build capital before founding a startup, enabling experimentation, learning on the job, and gradual business development without the pressures of traditional employment.

In turn, the gig economy offers startups a scalable, cost-effective access to talent as they can flexibly engage freelance experts for specialized projects such as software development, creative design, and marketing campaigns without the overhead of full-time hires. This agility helps startups innovate rapidly, manage fluctuating workloads, and control expenses.

Thus, the gig economy offers a fertile ground for entrepreneurial talent and serves as a strategic resource for startups, creating a dynamic ecosystem fueling innovation and economic growth.

Future outlook

The gig economy is expected to witness a remarkable growth within the next five years, driven by technological advancement, regulatory changes, and shifting cultural attitudes toward work. This shift will require gig workers to continuously upskill, with personalized and AI-powered training platforms becoming essential for maintaining competitiveness.

Finally, the gig economy is a defining feature of the future of work, offering unprecedented flexibility, entrepreneurial potential, and access to global talent. understanding and strategically engaging with the gig economy will be essential for businesses, startups, and workers alike to thrive in this rapidly changing economic landscape.

Kholoud Hussein

As Saudi Arabia’s fintech sector accelerates, the region’s funding scene is changing fast. Founders are increasingly turning to growth debt—minimally dilutive capital that fuels expansion while preserving ownership. 

In this interview, Armineh Baghoomian, Managing Director, Head of EMEA, and Co-Head of Global Fintech at Partners for Growth (PFG), shares her perspective on how growth debt is transforming the GCC’s startup landscape, why Saudi Arabia is emerging as a key market, and how smarter financing models are empowering founders to scale with confidence.

In today’s uncertain macroeconomic and political climate, why are we seeing more GCC founders and investors – particularly in capital-intensive sectors like fintech – turning to growth debt as an alternative to equity? How do you think this trend will reshape the region’s funding landscape?

Founders and investors in the GCC are taking a more strategic view of capital structure. While venture equity continues to mature, there’s growing recognition that growth debt plays a complementary role – especially in capital-intensive sectors like fintech, where businesses need to scale quickly and efficiently.

There is growing recognition that a diversified funding ecosystem – where equity and debt complement each other – creates economic resilience and safeguards the future of innovation, aligning neatly with national diversification agendas. Growth debt plays a critical role in this mix.

Across the region, founders and investors increasingly appreciate that debt, when paired with disciplined governance and strong unit economics, can accelerate a company’s growth journey. Growth debt can be used to finance working capital, customer acquisition, or infrastructure build-out with minimum equity dilution – with benefits for all parties in the deal.

Over time, the rise of growth debt will reshape the regional funding landscape by broadening the capital toolkit available to founders. We’ll see more blended capital stacks, more nuanced conversations around risk allocation, and a more mature ecosystem overall. In many ways, the GCC is well positioned to leapfrog traditional financing trajectories, moving quickly toward a model where equity and growth debt sit side-by-side to fuel innovation and growth.

Saudi Arabia is quickly positioning itself as a leading fintech hub in the Middle East. From your perspective, what opportunities and challenges stand out for credit partners like PFG in supporting transformative companies in the Kingdom?

Saudi Arabia’s fintech evolution is among the most dynamic globally. With the ambitious Vision 2030 strategy creating the regulatory framework for digital transformation, the Kingdom is laying the groundwork for a truly world-class fintech ecosystem. For credit partners, this moment presents compelling opportunities.

In Saudi Arabia, we’re seeing a powerful convergence between a young, digitally native population, a government that is not only supportive but actively accelerating financial innovation, and a resultant flow of capital into sectors that are capital-intensive and highly scalable. This combination creates fertile ground for transformative fintech businesses – whether operating in payments, digital lending, or infrastructure – that can grow rapidly and have meaningful regional impact. For PFG, the ability to deploy growth capital into these businesses means we can help founders scale confidently without compromising long-term ownership or vision.

Fintech is inherently a heavily regulated industry, and in a market that is evolving as quickly as Saudi Arabia’s, these frameworks are still maturing. That means lenders must be thoughtful in underwriting risk, ensuring that business models are both sustainable and aligned with long-term policy goals. Additionally, because many Saudi fintechs are scaling for the first time in a market of this magnitude, there is a heightened need for governance, financial discipline, and strategic capital structuring.

For PFG, the opportunity lies in being more than just a capital provider. Rather, we are a long-term partner to visionary founders – helping them balance growth with sustainability and navigate the complexities of a rapidly changing market.

Growth debt often sparks debate about risk, especially when applied to ambitious startups seeking rapid scale. How does PFG approach balancing its support for founders’ growth ambitions with the need to maintain financial resilience and risk management across your portfolio?

We see growth debt as a strategic partner to equity. Our role is to structure capital in a way that empowers founders to pursue growth without jeopardizing the resilience of their businesses.

We look closely at companies’ fundamentals – strong unit economics, predictable revenue models, and clear visibility on cash flows. We believe in the founders we invest in and work alongside them to structure flexibility into facilities. This is particularly important in the GCC, where markets are evolving rapidly.

Fundamentally, we think about portfolio resilience in terms of partnership. At PFG, growth debt is not transactional; it is relational. By aligning with management teams who share our commitment to discipline and transparency, we’re able to provide capital that supports expansion while safeguarding the interests of both our portfolio companies and our investors.

In the GCC, this balanced approach is especially powerful: it allows founders to scale with confidence – building businesses that are durable as well as ambitious. As the region’s funding landscape continues to mature, founders will increasingly appreciate that growth debt, when structured responsibly, can be a catalyst for sustainable growth.

Given that you co-lead PFG’s global fintech and asset-backed credit strategy across multiple regions, how does the Middle East compare to Europe and Africa in terms of fintech maturity and appetite for non-dilutive financing?

What stands out most is how quickly the region, especially the GCC, is maturing. The combination of ambitious government agendas, a young, tech-savvy population, and evolving regulatory frameworks is accelerating fintech adoption at a pace we don’t see elsewhere.

At the same time, founders and investors in the region are increasingly sophisticated in their approach to capital. There is a healthy appetite for non-dilutive financing to work alongside equity in powering innovative, tech-driven companies.

Founders are eager to embrace global best practices, but they are also charting their own course – building businesses with high growth potential and strong institutional support, making it easier to scale. For PFG, this all means the GCC represents both a fast-growing and increasingly sophisticated market.

We're at an inflection point: the GCC is rapidly moving toward the maturity of Europe, but with the entrepreneurial energy and growth trajectory that, in many ways, resembles Africa’s leapfrogging story. That combination makes it one of the most exciting geographies for us to support with flexible, non-dilutive capital.

Without revealing sensitive details, could you share an example or two where PFG’s structured credit solutions enabled a company to scale effectively while preserving equity? What lessons from those experiences might resonate most with GCC founders?

Perhaps the most well-known example is Tabby, the Middle East’s leading provider of Buy Now, Pay Later (BNPL) solutions. We were confident from the outset that Tabby would become the regional powerhouse it is today. They had the vision, they had the ambition – but to achieve scale, Tabby needed the right kind of capital. That’s where PFG came in.

Specifically, Tabby needed a bespoke financing structure that would allow the company to scale its business in a complex market. By leveraging Tabby’s high-quality receivables, PFG enabled the company to accelerate its merchant network expansion and introduce new product offerings.

The impact was clear. Tabby experienced 900% quarter-over-quarter growth in FY2022 and raised over US$70 million in funding, boosting its valuation by a meaningful multiple and cementing its status as one of the GCC’s most valuable startups.

For GCC founders, the most relevant lesson from our deals in the region is the value of balance: scaling aggressively while preserving control. Similarly, it reinforces the importance of matching the right kind of capital to the right stage of growth, rather than defaulting to equity. In a region where many businesses are founder-led and highly conscious of dilution, this approach resonates strongly. It’s all about building sustainably, retaining control, and maximizing long-term value creation.

Looking ahead, as Saudi Arabia and the wider GCC pursue diversification under Vision 2030 and other regional strategies, how do you see the role of non-dilutive financing evolving? And what role do you expect PFG to play in shaping that future?

As GCC economies continue to diversify, entire sectors – from fintech and healthtech to logistics and proptech – are scaling at a pace we haven’t seen before. With that scale comes the need for more sophisticated capital solutions. Private debt will play an increasingly central role, not as a substitute for equity but as a strategic complement to it.

What’s unique about the GCC is that this is all happening in real time. Governments are laying down the infrastructure, investors are increasingly sophisticated, and founders are embracing global best practices. Growth debt, as a form of non-dilutive financing, enhances this trajectory by offering flexibility, disciplined growth, and helping to create businesses built for the long-term, not just the next funding round.

PFG’s role is twofold. First, to bring our global experience – having supported high-growth companies across other global regions for over 20 years – and adapt that expertise to the GCC’s unique dynamics. Second, to act as true partners to founders: structuring credit that supports ambition while instilling the financial resilience that will define the region’s most successful companies.

We will continue to support ambitious founders and help to shape a more mature, balanced funding ecosystem that underpins Vision 2030 and wider regional economic diversification goals.

Noha Gad

Emerging technologies, particularly artificial intelligence (AI), significantly transform the healthcare sector globally by improving diagnostics, treatment precision, patient monitoring, and healthcare delivery. Saudi Arabia is one of the leading countries that harnesses these technologies to modernize its healthcare system and increase accessibility. 

The Kingdom invests heavily in digital healthcare to improve efficiency and patient outcomes, potentially unlocking as much as $27 billion by 2030. This includes advancements in telemedicine, electronic health records, and other digital health technologies.

The Saudi Vision 2030 emphasizes the importance of privatization and Public-Private Partnerships (PPPs) in driving healthcare transformation. By fostering collaboration, these approaches contribute to achieving the digital health goals outlined in Saudi Arabia's ambitious vision for the future.

The Saudi healthcare sector is witnessing unprecedented privatization, with over 290 hospitals and 2,300 health institutions transitioning into private operations. By 2030, private sector involvement is expected to grow from 25% to 35%, unlocking fresh capital inflows and efficiency improvements, according to recent insights into the Saudi healthcare market by Eurogroup Consulting.

Digital transformation continues to accelerate in Saudi Arabia, with $1.5 billion invested in telemedicine, AI-driven diagnostics, and electronic health records (EHR). These innovations are reshaping healthcare accessibility, allowing remote consultations to flourish and minimizing hospital congestion. AI-powered automation also optimizes treatment plans, improving patient outcomes and reducing administrative burdens. 

Additionally, the mental health market in the Kingdom is undergoing a remarkable transformation, triggered by a mix of government reforms, social awareness, and growing private investment. According to Eurogroup Consulting, the mental health market in Saudi Arabia is projected to reach $8.9 billion by 2033, with a compound annual growth rate (CAGR) of 5.23% from 2025 to 2033. This growth reflects a broader shift in the Kingdom’s healthcare priorities, where mental wellness is increasingly seen as fundamental to social stability and productivity.

Telemedicine innovations in Saudi Arabia

Telemedicine emerged as a vital component in transforming healthcare delivery across Saudi Arabia, enabling patients to access medical care remotely through digital platforms. This technology breaks down geographical barriers, bringing expert consultations and continuous care to rural and underserved regions, which traditionally struggled with limited healthcare infrastructure.

The COVID-19 pandemic accelerated telemedicine adoption by mandating remote care solutions to reduce infection risks while maintaining healthcare access. This surge highlighted telemedicine’s potential to alleviate hospital overcrowding, enhance patient convenience, and reduce healthcare costs.

A recent report released by Ken Research showed that the Saudi telemedicine market is valued at $1.2 billion, driven by the increasing adoption of digital health solutions, rising healthcare costs, and the need for accessible medical services, especially in remote areas. It highlighted that Riyadh, Jeddah, and Dammam dominate the telemedicine market due to their advanced healthcare infrastructure, high population density, and significant investment in health technology. 

Another report by Grand View Horizon anticipated the telemedicine market in the Kingdom to reach a projected revenue of $ 2.3 million by 2030, showing a CAGR of 18.4% between 2025 to 2030.

AI-driven telemedicine platforms in Saudi Arabia integrate AI into telehealth to enable proactive health management, optimize clinical workflows, and support early disease detection. Seha Virtual Hospital, launched by the Ministry of Health (MoH) as part of the Health Sector Transformation Program (HSTP), is a notable example. Being the first virtual hospital in the Middle East, Seha offers a full spectrum of telehealth services, including emergency and critical consultations, specialized clinics, multidisciplinary committees, supportive medical services, and home care services, empowering the best health consultants and practitioners in micro and rare specialties using the latest medical technologies.

Another example is Sanar, an MoH-licensed medical platform that offers comprehensive medical services including telemedicine consultations and home medical services. Other key players in the Saudi telemedicine sector include Cura, Vezeeta, MedIQ, Altibbi, Labayh, and more.

Overall, telemedicine innovations in Saudi Arabia focus on combining AI capabilities with digital platforms to offer accessible, efficient, and patient-centric healthcare, ultimately cementing the Kingdom’s position as a regional leader in AI-powered telemedicine and digital health solutions.

AI-driven diagnostics

In recent years, AI has redefined various sectors, notably healthcare. One of the most promising applications of AI is in diagnostics, where it enhances the accuracy and speed of identifying health conditions. In Saudi Arabia, AI diagnostics contribute to advancing the medical field, becoming a cornerstone of Vision 2030’s goals of diversifying the economy and improving public well-being through high-tech healthcare solutions.

With Saudi Arabia pledging massive investments in AI to improve its healthcare services, the AI diagnostics market in the Kingdom is projected to reach $204.9 million by 2030, marking a CAGR of 36.5%.

A recent study by Research and Markets indicated a favorable view of AI in healthcare among respondents in Saudi Arabia, with many disagreeing that AI diminishes the value of the medical profession. Half of the respondents either agreed or strongly agreed that AI contributes to reducing errors in medical practice.   

AI diagnostics analyze medical data more consistently and accurately to address human errors in diagnosis, which may lead to misdiagnosis, delayed treatment, or even unnecessary procedures. 

AI systems can operate tirelessly and remain unaffected by fatigue or cognitive biases, which can affect even the most skilled healthcare professionals.

AI and robotics are expected to contribute over $135 billion to the national economy by 2030. AI diagnostics are vital to this transformation, aligning with the Kingdom’s strategic goals to diversify away from oil dependence and develop knowledge-based industries. 

Although AI diagnostics offers many advantages, they come with several challenges. One of the major challenges is that implementing these technologies requires substantial investments in infrastructure, including high-performance computing systems and secure data networks.

Specialized training is also required to help health care professionals work effectively alongside AI systems, while patients and providers alike must adapt to this new approach to medical care. 

Key players in the AI diagnostics sector in Saudi Arabia include SDM, a health tech startup specializing in AI-driven diagnostics for various and chronic diseases, and Nuxera AI, a Saudi-headquartered AI company that empowers doctors and healthcare providers by streamlining workflows, reducing administrative burdens, and enhancing patient care.  Another example is the Amplify AI company, which integrates AI into thermal imaging to enable fast, accessible, and objective diabetic foot screening. 

Mental health solutions and digital well-being tools

The Saudi mental health market is witnessing a remarkable transformation, driven by a mix of government reforms, social awareness, and growing private investment. With mental health services being considered as a vital part of national well-being, the market is anticipated to hit $8.9 billion by 2033, showing a CAGR of 5.23% from 2025 to 2033. This growth reflects the shift in the Saudi healthcare priorities, where mental wellness is increasingly seen as fundamental to social stability and productivity.

The Saudi government made significant reforms to drive this transformation and modernize the healthcare sector by integrating mental health into primary care systems, ensuring accessibility and reducing stigma. This approach promoted new regulations, awareness campaigns, and funding programs aimed at promoting mental well-being as part of the country’s holistic health agenda.

The MoH launched the ‘Innovate for your health’ initiative, in partnership with the Digital Government Authority, to raise community awareness about the importance of mental health and to improve the quality of life among youth and society as a whole.

Additionally, digital well-being tools, such as applications and interactive platforms, were designed to monitor and improve mental health by reducing digital addiction and associated risks such as anxiety and loneliness.

O7 Therapy is another notable example of mental health platforms in Saudi Arabia. it offers a network of over 180 qualified Arabic-speaking therapists, benefitting people across 110 countries. Since its inception, the platform has provided more than 60,000 therapy hours. It helps users to find the right therapist whose approach aligns with the user’s needs and preferences.

In conclusion, Saudi Arabia’s healthcare sector is witnessing a significant transformation, backed by emerging technologies and strategic reforms under Vision 2030. The Kingdom’s heavy investments in AI, telemedicine, and digital health platforms are revolutionizing healthcare delivery by enhancing diagnostics, improving treatment precision, enabling remote access, and optimizing patient outcomes. Privatization and PPPs are pivotal in this transformation, attracting fresh capital and fostering innovation that aligns with the Kingdom’s goal of becoming a regional leader in advanced healthcare. 

Manish Pant, Executive Vice President of International Operations at Schneider Electric

Manish Pant, Executive Vice President of International Operations at Schneider Electric, affirmed in exclusive statements to Sharikat Mubasher that the company’s global presence spans more than 100 countries and includes a workforce of approximately 150,000 employees. He stated that Schneider Electric’s mission is to create a positive impact by empowering individuals and organizations to achieve the optimum use of energy and resources, linking economic growth with sustainability.

Pant revealed that the company’s global revenues reached €19.3 billion during the first half of this year, adding that Schneider Electric allocates around 5% of its annual revenues to research and development to strengthen its innovation capabilities and ensure the sustainability of its solutions.

He emphasized that the Saudi market has been one of the company’s key strategic markets for over 44 years, noting that the Kingdom is taking confident strides toward a more sustainable future through resource diversification, accelerated digital transformation, and adoption of cutting-edge technologies. Pant highlighted that Saudi Arabia aims to generate 50% of its electricity needs from renewable sources by 2030 as part of the Saudi Green Initiative, alongside major investments in carbon emission reduction, energy efficiency, afforestation, and smart cities — all of which are reshaping the Kingdom’s energy landscape to become more flexible and efficient.

Pant remarked that Schneider Electric is proud to be a strategic partner of the Kingdom on this journey, providing advanced digital services, AI-powered data centers, smart building systems, and climate-friendly industrial solutions that reduce emissions and enhance resource efficiency, enabling industries, cities, and households to achieve higher levels of sustainability.

He also revealed ambitious expansion plans for the company in Saudi Arabia, which currently serves more than 8,000 clients through a range of assets and industrial facilities. These include the Dammam factory spanning 15,000 square meters, a preparation facility in Dammam, the Riyadh factory covering 13,450 square meters, and another preparation facility in Riyadh. The company will also open a new factory at King Salman Energy Park (SPARK), covering 20,000 square meters, scheduled for inauguration in the coming period to serve both Saudi Arabia and the wider Gulf region.

Pant noted that the new factory has obtained the LEED (Leadership in Energy and Environmental Design) certification, achieving a 34% reduction in carbon emissions and energy savings of up to 33%.

He further stated that Schneider Electric operates a 7,000-square-meter distribution center in Riyadh serving more than 200 local partners, as well as a research, development, and innovation center in Dhahran Techno Valley (DTV) in collaboration with Aramco. The company also has four legal entities in the Kingdom, with a localization rate exceeding 40%, and a regional training academy for the Middle East and Africa based in Riyadh.

Pant added that Schneider Electric has invested more than €50 million in its expansion plans in Saudi Arabia over the past five years and currently employs 700 people in the Kingdom. He highlighted that eight new products have recently earned the “Made in Saudi” mark, bringing the total number of locally manufactured products to over 20, with plans to increase production lines to 32 by 2030. The company also aims to export up to 20% of local production to regional markets, reinforcing Saudi Arabia’s position as a central industrial hub.

Regarding the Schneider Electric Innovation Summit, held recently in Riyadh in its second edition, Pant said the event serves as a leading platform to showcase the latest solutions in electric mobility, resilient infrastructure, smart buildings, advanced industries, and water resources management. He noted that hosting the summit again in Riyadh reflects the Kingdom’s leadership in energy transition, digital innovation, and sustainable development.

Pant added that the summit highlights innovation and digitalization as key drivers of Saudi Arabia’s goals for economic diversification, industrial growth, and global competitiveness. He concluded by affirming that technology and innovation are two core pillars of Schneider Electric’s strategy in Saudi Arabia and globally. Integrating AI- and IoT-based digital solutions, he said, enables the Kingdom to build more efficient and sustainable systems across cities, industries, and homes alike. Pant noted that the company’s achievements in Saudi Arabia have strengthened its standing as one of the world’s most globally integrated yet locally rooted companies. Saudi experiences, he added, contribute to developing globally scalable solutions and position the Kingdom as a role model to follow for innovation and sustainability.

Kholoud Hussein

As Saudi Arabia accelerates its journey toward Vision 2030, fintech innovation has emerged as a critical driver in reshaping access to capital, democratizing investment, and strengthening the Kingdom’s financial sector. With sukuk issuance reaching record levels and digital platforms reducing barriers for both corporates and individual investors, the ecosystem for Islamic finance is undergoing a profound transformation.

Within this evolving landscape, Tarmeez Capital has positioned itself as a frontrunner. Licensed by the Capital Market Authority and founded in 2022, the Saudi fintech is redefining how businesses—from large corporates to SMEs—secure financing. By leveraging technology to issue sukuk faster, more transparently, and in full compliance with Shariah principles, Tarmeez Capital bridges a critical gap in the Kingdom’s corporate debt market.

In this exclusive interview with Sharikat Mubasher, Nasser Al-Saadoun, Founder and CEO of Tarmeez Capital, sheds light on its business model, the impact it is making on companies and investors, and its role in enabling Saudi Arabia’s ambition to become a global hub for Islamic and sustainable finance.

Please can you give us an overview of Tarmeez Capital. What is your business model, and when was it founded? 

We are a Saudi-based fintech company licensed by the Capital Market Authority (CMA), reshaping access to finance in Saudi Arabia through fast, inclusive, and fully Shariah-compliant solutions. We founded Tarmeez Capital in 2022 with a clear purpose: to close the financing gap facing many businesses by connecting growing companies with the capital they need to thrive. We issue sukuk to fund enterprises across the Kingdom and operate a pioneering, people-first digital platform that seamlessly enables purpose-driven investors to participate in these issuances. 

Our technology enables sukuk issuance up to seven times faster than traditional channels, allowing companies to secure funding in as little as 10 days with repayment terms up to 10 years. We have facilitated over SAR 2 billion in lending programs, achieved a 459 percent increase in sukuk issuances over the last 15 months, and built a community of over 180,000 retail and institutional investors.

Which type of companies does Tarmeez Capital provide Islamic financing to? How do you select your portfolio to lend to? 

Tarmeez Capital supports companies across sectors, from established corporates like Red Bull Mobile and Red Sea International to SMEs. Our portfolio selection is guided by rigorous credit screening powered by AI-driven data analytics, our Shariah committee’s oversight, and a focus on businesses that contribute to Vision 2030 goals. We have a zero percent default rate, reflecting our robust due diligence and the quality of our portfolio.

What are the benefits for your users (companies seeking financing & institutional investors)? 

Traditional sukuk issuance often takes months and is limited to large corporations. With Tarmeez Capital, companies of all sizes can receive tailored, fast, and ethical capital - allowing them to seize growth opportunities. This year, Red Sea International, for example, used our sukuk offering to avoid costly project delays with rapid funding that kept engineers and factory teams on schedule. 

Through our digital platform, our investor community can gain access to transparent, Shariah-compliant returns of around 13.5 percent annually, compared to 7.3 percent for real estate and 8.5 percent for stocks. Our real-time digital dashboards and low minimum investments enable anyone to support transformative projects with ethical impact.

How does Tarmeez Capital position itself within Saudi Arabia’s rapidly evolving corporate debt landscape, especially under Vision 2030?

We bridge a critical gap by digitizing sukuk issuance for companies of different sizes. There is a clear demand in the Kingdom for fast, digital, and value-driven funding. Our seamless digital process positions us perfectly amongst Saudi Arabia, tech-savvy population. We focus on advancing funding for sectors such as healthcare, logistics, and education, etc.– all of which are aligned with Vision 2030. Our business model also supports SMEs, which are projected to contribute 35 percent of total GDP by 2030.  

What role do fintechs such as Tarmeez Capital play in broadening access to capital markets and investment opportunities? 

Fintechs like Tarmeez Capital make Shariah-compliant finance accessible to more Saudi businesses and individual investors alike. Our digital investment platform has been built to reduce the cost, complexity, and friction traditionally associated with debt capital markets. Our focus on creating a streamlined, user-friendly experience has contributed to the impressive growth of our investor community to date, a trend that we anticipate continuing.

Our platform empowers investors to invest small amounts into sukuk that back local companies. For example, people can now support projects like RASF’s Deem townhouses or Qudra’s solar rollout. This democratization of capital fuels entrepreneurship, spreads wealth creation, and reinforces Saudi Arabia’s Financial Sector Development goals.

Saudi Arabia is rapidly positioning itself as a global hub for Islamic finance, driven by accelerating sukuk issuance. How do you see this sector expanding in the next 5 – 10 years, and what role will Tarmeez Capital have? 

We expect Saudi Arabia’s sukuk market to continue its rapid growth. Global sukuk issuances reached USD 199 billion in 2023 and show no sign of slowing. Tarmeez Capital will play a central role in this transformation by making Shariah-compliant financing faster, more accessible, and more transparent for corporates and investors alike. Our tech-driven scalability and proven track record, including the lowest default rate among comparable private debt platforms in Saudi, position us as a national leader and partner of choice as the sector matures.

More broadly, we see Islamic finance moving firmly into the mainstream. Younger investors are seeking ethical, impact-oriented investments that reflect their values while delivering competitive returns. Islamic finance, built on principles of justice, risk-sharing, transparency, and social responsibility, is perfectly aligned with this shift. Unlike conventional debt, it prohibits interest (Riba) and emphasizes asset-backed, productive investment, making it inherently transparent, value-driven, and sustainable.

Saudi Arabia is set to become a global hub for Islamic and sustainable finance, issuing billions in ESG-linked sukuk and leveraging its Vision 2030 ambitions for inclusive, long-term growth. Platforms like Tarmeez enable everyday citizens to invest ethically, help finance the development of their communities, and support a self-sustaining ecosystem that benefits everyone.

In a region where regulatory dynamics are evolving quickly, especially for technology, how do you assess and manage regulatory risk?

Compliance is incredibly important. Our independent Shariah committee and close partnership with the Capital Market Authority help ensure we always meet the highest standards. Beyond regulation, we also use data and advanced AI to monitor the health of every investment, so that we can detect potential risks early and manage them carefully. This thorough approach allows us to grow sustainably and responsibly.

Many startups struggle to scale beyond the early-growth phase. Are there any patterns you have observed that block Saudi startups from becoming regional or global players?

A recurring challenge is facilitating access to capital that matches the vast ambitions of our most exciting startups. Too often, high-potential companies are held back by the rigidity of traditional lending. However, fintechs such as Tarmeez Capital enable companies to grow with the speed and flexibility they need to succeed regionally and globally.

Looking ahead over the next 3 - 5 years, what role do you see Tarmeez Capital playing in shaping the MENA innovation ecosystem?

We see ourselves becoming a vital catalyst for Shariah-compliant investing and capital raising in the region, and expanding our platform’s reach through smarter infrastructure, new products, and better user experiences. Our ambition is to continue to support founders in securing funding quickly and ethically, unlocking new ventures and supporting economic growth. 

We aim to grow Tarmeez Capital’s investor community, creating a powerful and self-sustaining cycle of growth, opportunity, and shared success. 

Finally, what advice would you give to Saudi companies that are looking for alternative forms of financing? 

Our advice is simple. Explore forms of accessing finance outside of the conventional channels. Innovative, Shariah-compliant solutions like Tarmeez Capital offer speed, flexibility, and alignment with your values. Whether you are rolling out solar power across commercial properties like Qudra Energy or delivering affordable homes like RASF Real Estate, this is your moment to embrace a new path to financing that will help you grow and contribute to the future of the Kingdom. Choosing providers who understand the local market and comply fully with Islamic principles will ensure financing that is both responsible and sustainable, setting businesses on a path to long-term success.

Throughout the discussion, Tarmeez Capital emphasized its mission of making Shariah-compliant financing faster, more inclusive, and more impactful for both businesses and investors. By digitizing sukuk issuance, expanding access to ethical investment opportunities, and ensuring robust compliance, the company is reshaping the role of fintech in Saudi Arabia’s financial sector. As the Kingdom positions itself as a global hub for Islamic finance, Tarmeez Capital aims to serve as both a catalyst and partner—empowering companies to grow responsibly while giving investors the tools to align financial returns with ethical values.

Noha Gad

The rapid growth of e-commerce urged retailers to deliver faster, cheaper, and more reliable services to meet customers’ preferences for same-day or even two-hour deliveries. Traditional fulfillment models, relying on large regional warehouses, often struggle to meet urban delivery expectations due to long transit times and high last-mile costs, which can account for up to 53% of total shipping expenses.  

This shift has driven the adoption of localized fulfillment strategies, with Micro-fulfillment centers (MFCs) emerging as a scalable solution to bridge the gap between supply and demand in high-density markets.

MFCs integrate directly with e-commerce platforms, allowing real-time inventory synchronization and seamless order processing. They play a pivotal role in optimizing e-commerce operations by enabling proximity-based fulfillment. By storing high-turnover inventory in urban micro-hubs, retailers can drastically reduce delivery times, often to less than 24 hours, while improving order accuracy through automation.

These compact, automated centers, typically ranging from 3,000 to 10,000 square feet, revolutionize modern logistics as they bring inventory closer to urban consumers and enable faster deliveries and more efficient supply chains. MFCs were developed to meet rising consumer demand for same-day or next-day delivery, utilizing automation and real-time inventory systems to process orders with speed and precision, making them a cornerstone of agile e-commerce fulfillment.

How MFCs work

The primary objective of an MFC is to optimize last-mile delivery, the most expensive and time-sensitive segment of the supply chain, by reducing the distance between inventory and end customers. 

Micro-fulfillment centers integrate three essential components: advanced management software, automated physical infrastructure, and streamlined packing operations. The software layer processes incoming online orders in real time, synchronizing with e-commerce platforms and inventory systems to ensure accuracy and speed. Meanwhile, the physical infrastructure leverages robotics, automated storage and retrieval systems (AS/RS), and conveyor networks to retrieve items with minimal human intervention, significantly reducing labor costs and error rates. Once ready, items are transferred to packing stations where staff or automated systems prepare them for dispatch, often within hours of order placement.

These centers can operate as standalone facilities or be embedded within existing retail stores, enabling omnichannel fulfillment strategies such as ship-from-store, buy-online-pickup-in-store (BOPIS), and curbside pickup.

Types of micro-fulfillment centers 

There are three primary types of MFCs: standalone, store-integrated, and dark stores. Standalone MFCs are independent, compact logistics facilities typically ranging from 3,000 to 10,000 square feet. These centers focus exclusively on processing online orders for rapid last-mile delivery. They are often built in repurposed industrial spaces, basements, or standalone urban lots and can be deployed within months due to minimal construction requirements. They are effective for e-commerce businesses seeking to scale delivery speed without relying on existing retail footprints.

Store-integrated micro-fulfillment centers are embedded within active retail or grocery stores, typically in backrooms, basements, or underutilized floor space, allowing simultaneous in-store shopping and online order fulfillment. This type leverages the store’s proximity to customers to reduce shipping costs and accelerate delivery times, often enabling curbside pickup, BOPIS, and local delivery within hours. This model also improves inventory turnover by dynamically allocating stock between in-store sales and online fulfillment, reducing overstock and shrinkage.

Additionally, dark stores are retail locations that have been converted into fully automated, customer-inaccessible fulfillment centers dedicated exclusively to processing online orders. Unlike store-integrated MFCs, dark stores do not serve walk-in customers; they serve fulfillment staff or robots that pick items from shelves and pack them for home delivery or pickup. 

Dark stores are particularly prevalent in grocery and fast-moving consumer goods (FMCG) sectors, where demand for rapid delivery is high.

How MFCs boost the e-commerce industry

Retailers of all sizes leverage micro-fulfillment centers to stay competitive as they offer a wide range of benefits, including: 

-Faster delivery times.

-Improved customer satisfaction.

-Lower delivery and inventory costs.

-Space optimization.

-Omnichannel integration.

The future of MFCs is shaped by rapid urbanization and the growing need for hyper-local fulfilment solutions, fueled by advancements in robotics, AI-driven inventory management, and automation technologies. Thus, these centers are no longer a futuristic concept but a strategic necessity in the evolving landscape of e-commerce and urban logistics. 

MFCs offer a scalable, efficient solution to meet consumers’ demand for same-day and even same-hour delivery by bringing inventory closer to end customers through compact, automated hubs located in or near cities.

Finally, MFCs represent a transformative shift in how goods are stored, picked, and delivered. As technology advances and urban density increases, MFCs will become an operational imperative for businesses aiming to meet rising customer expectations for speed, convenience, and sustainability in the digital age.

Ghada Ismail

For years, the startup scene has been obsessed with unicorns; those rare, billion-dollar companies that symbolize hypergrowth, massive funding rounds, and meteoric success. But as markets mature and the realities of sustainable business sink in, many in the global startup ecosystem are beginning to ask: Do we really need more unicorns, or something entirely different?

Across the Middle East, and particularly in Saudi Arabia, the answer increasingly leans toward a new breed of companies: camels and zebras. These startups may not dazzle with billion-dollar valuations, but they embody traits that could prove far more valuable in the long run: resilience, sustainability, and social purpose.

From Unicorns to Camels and Zebras

The “unicorn” was once the ultimate prize: a company valued at over $1 billion, fueled by venture capital, and celebrated for its speed of growth. But this obsession often came at a cost. Many unicorns prioritized expansion over profitability, and when market conditions shifted, they found themselves struggling to stay afloat.

The global downturn in tech valuations and the funding scene exposed over time how fragile many of these high-growth models were. Meanwhile, startups that operated with leaner models, focused on cash flow, and adapted to uncertainty—the so-called camels—proved more resilient.

The term “camel startup,” first popularized in the Middle East and North Africa, captures a distinctly regional mindset. Just as camels survive harsh desert conditions, these startups are designed to withstand economic volatility. They grow steadily, conserve cash, and adapt intelligently to changing markets.

Zebras, on the other hand, represent a different kind of strength. Coined by a group of women entrepreneurs in Silicon Valley, “zebra startups” pursue profit and purpose simultaneously. They are black and white, symbolizing balance. In emerging economies like Saudi Arabia, this philosophy is resonating strongly, particularly among founders tackling social, environmental, or inclusion-driven challenges.

The Saudi Context: Vision 2030 and the Shift in Startup Mindset

Saudi Arabia’s startup ecosystem is evolving rapidly. Over the past few years, the Kingdom has transformed into one of the MENA region’s fastest-growing entrepreneurship hubs, with total venture funding reaching new highs annually. Yet as the market matures, there’s a visible shift in what founders, investors, and policymakers value.

Under Vision 2030, the Kingdom’s economic diversification plan, sustainability, innovation, and resilience are central pillars. This aligns closely with the camel and zebra mindset. Saudi startups are no longer just chasing valuations; instead, they’re building business models that can endure challenges, create jobs, and contribute to national priorities such as fintech innovation, food security, clean energy, and women’s empowerment.

Venture capital firms, too, are evolving. While early-stage funding remains strong, there’s greater scrutiny over unit economics, profitability, and long-term impact. Investors are asking tougher questions, not only about how fast startups can grow, but how well they can sustain that growth.

Camels in the Desert: Startups That Endure

In Saudi Arabia and the wider Gulf, the camel metaphor feels especially apt. Startups like Jahez, Tamara, and Foodics exemplify the camel mindset. Each grew deliberately, balancing rapid market capture with clear revenue models.

Jahez, for instance, built a profitable food-delivery platform long before its IPO, expanding carefully across the Kingdom instead of burning cash on regional domination. Tamara, one of Saudi’s leading buy-now-pay-later players, achieved remarkable growth but stayed focused on regulatory compliance and operational sustainability—traits that make it more of a camel than a traditional unicorn.

Similarly, Foodics navigated funding rounds and expansion by maintaining profitability as a core discipline. These companies may still reach unicorn valuations, but their success rests on fundamentals rather than hype.

This approach is especially relevant in Saudi Arabia’s macroeconomic environment. While government support and investor interest remain strong, startups that can survive without constant external funding are better positioned for long-term success.

The Rise of Zebras: Purpose Meets Profit

The zebra philosophy—building companies that are both profitable and purposeful—is also taking root in the Kingdom. A growing number of Saudi startups are tackling societal challenges, from financial inclusion to healthcare access, while maintaining sound business models.

Take Nana, which has expanded access to online grocery delivery not just in major cities but in smaller regions, improving supply chain efficiency and consumer convenience. Another example is Labayh. Founded in 2018, Labayh provides mental health and therapy services in Arabic, offering one-on-one therapy sessions, webinars, support groups, and self-assessment tools. It also acquired the UAE meditation app Nafas, adding over 300 audio clips for meditation and stress relief, to expand its wellbeing portfolio. 

These companies demonstrate that profitability and social impact can go hand in hand. They are building trust with customers, generating real economic value, and aligning with national goals such as improving the quality of life and fostering digital innovation.

Why the World Needs More Camels and Zebras

Globally, the call for more sustainable startup models is growing louder. As capital markets tighten, founders can no longer rely solely on fundraising cycles to survive. The camel and zebra frameworks encourage startups to focus on cash discipline, real impact, and steady growth; values that are not only good for business but for economies at large.

In emerging markets like Saudi Arabia, these models carry even more importance. Economies in transformation need startups that can withstand uncertainty, employ locals, and create solutions tailored to regional challenges. Unicorns might bring attention, but camels and zebras bring stability.

Moreover, these models align perfectly with Saudi Arabia’s evolving venture ecosystem. Initiatives by entities such as Monsha’at, SDAIA, RAED Ventures, and STV are increasingly supporting startups that solve real problems rather than chase inflated valuations.

The Investor Perspective: Quality Over Hype

Investors across MENA are beginning to recalibrate their expectations. The new question isn’t “Who will be the next unicorn?” but “Who will survive the next downturn?”

Funds like IMPACT46 and Wa’ed Ventures have emphasized the importance of sustainable scaling and solid governance. International investors entering Saudi Arabia are also adjusting their lenses, preferring startups with clear profitability paths, diversified customer bases, and mission-driven growth.

This shift in mindset could redefine how success is measured in the Saudi startup scene. Valuation alone is no longer enough; longevity, local relevance, and measurable impact are becoming the new metrics of excellence.

A Cultural Shift in Entrepreneurship

The rise of camels and zebras also reflects a deeper cultural transformation among Saudi entrepreneurs. A new generation of founders, many educated abroad but rooted locally, is questioning the “growth at all costs” narrative.

They are more aware of the risks associated with overfunding, more focused on building sustainable ecosystems, and more open to collaboration rather than competition. Many are exploring hybrid funding models—mixing venture capital with grants, government programs, and non-dilutive financing—to maintain control and flexibility.

This mindset aligns with broader societal changes under Vision 2030, which emphasizes entrepreneurship as a driver of economic and social progress, not merely personal wealth.

Toward a More Balanced Future

The world may always celebrate unicorns as they capture imagination and headlines. But in Saudi Arabia’s context, the future likely belongs to the camels and zebras: startups that combine endurance with empathy, profitability with purpose.

As global markets grow more volatile and sustainability becomes a non-negotiable standard, these models will define the next era of entrepreneurship in the Kingdom and beyond.

Saudi Arabia’s journey from an oil-driven economy to a diversified, innovation-powered one will depend not on a few billion-dollar valuations, but on thousands of resilient, responsible, and adaptive startups.

And that’s where the real magic lies, not in chasing mythical creatures, but in nurturing the ones that thrive in the real world.

Ghada Ismail

Every founder faces a defining question early on: how to fund growth without losing control. Should you give investors a stake, or rely on grants and incentives to stay independent? In Saudi Arabia’s fast-growing startup scene, understanding the difference between non-dilutive funding and equity financing can shape your company’s future from day one.

What Is Non-Dilutive Funding?

Non-dilutive funding refers to capital that doesn’t require you to give up any shares or ownership in your company. Instead, you receive financial support, grants, or incentives that help your business grow while you retain full control.

In Saudi Arabia, this form of support has expanded rapidly under Vision 2030, with programs designed to empower entrepreneurs and stimulate innovation.

Examples include:

• Monsha’at programs, such as financing initiatives and startup competitions.
• The Human Resources Development Fund (Hadaf), which offers wage support and training grants.
• The Saudi Venture Capital Company (SVC)’s indirect funding initiatives through funds and accelerators.
• Government grants and R&D programs in partnership with KAUST, KACST, or the Ministry of Communications and Information Technology.
• Loans and guarantees offered by Kafalah and Saudi EXIM Bank for export-oriented startups.

Pros of Non-Dilutive Funding

• You stay in control: No need to give up shares or decision-making power.
• Ideal for early stages: Helps test and validate ideas before raising equity.
• Government-backed stability: Programs often align with national priorities, providing reliable support.
• Encourages innovation: Especially useful in sectors like HealthTech, AgriTech, and renewable energy.

Cons of Non-Dilutive Funding

• Highly competitive: Programs have limited slots and strict eligibility criteria.
• Lengthy approval cycles: Applying and securing funds can take time.
• Restricted spending: Funds may need to be used for specific projects or milestones.
• No investor mentorship: You miss the strategic support that comes with equity investors.

What Is Equity Financing?

Equity financing means selling a portion of your company’s ownership in exchange for capital. In Saudi Arabia, this is becoming more common as venture capital activity grows and global investors turn their eyes toward the Kingdom.

Examples include:

• Angel investors and family offices
• Venture capital firms like RAED Ventures, Impact46, and Wa’ed Ventures
• Corporate investors such as STC Ventures and Aramco Ventures
• Government-backed funds through SVC, and Jada Fund of Funds’ partnerships

Pros of Equity Financing

• Large growth capital: Fuels rapid scaling, hiring, and market expansion.
• Mentorship and connections: Investors often open doors to networks, talent, and markets.
• Shared risk: You’re not repaying loans if the business struggles.
• Market validation: Attracting investors signals credibility to customers and partners.

Cons of Equity Financing

• Ownership dilution: You give up part of your company.
• Reduced control: Investors may request board seats or decision rights.
• Exit expectations: Most investors look for returns within a few years.
• Possible vision misalignment: Strategic differences can arise between founders and investors.

Which One Should You Choose?

There’s no one-size-fits-all answer; it depends on your startup stage, goals, and risk appetite.

• If you’re developing a prototype, conducting research, or still validating your market, non-dilutive funding helps you stay independent while building traction.
• If you’re ready to scale, expand internationally, or grow fast, equity financing offers not just money, but expertise and networks.

Many Saudi startups, from biotech innovators to logistics platforms, combine both approaches using grants and government programs early on, then raising venture capital once they’re ready to expand.

Wrapping Things Up…

Choosing between non-dilutive funding and equity financing isn’t about which is better; it’s about what your startup needs right now. Non-dilutive funding helps you grow without giving up ownership, while equity financing brings in not just money but mentorship and networks. The smartest founders in Saudi Arabia often blend both, using grants or accelerator funds early on, then turning to investors once their model proves itself. 

Noha Gad 

Saudi Arabia’s startup ecosystem is witnessing dynamic growth, moving beyond its traditional focus on oil, energy, and large-scale infrastructure. With a youthful population eager to innovate and a government that supports business startups, the Kingdom has become a fertile environment for emerging businesses in specialized sectors that address local, regional, and global challenges. This expansion reflects a broader shift toward using technology and innovation to build new industries and create jobs.

The focus on specialized innovations is closely connected to the ambitious Saudi Vision 2030, which focuses on sustainability, economic diversification, and building a knowledge-based economy. This national blueprint aims to reduce reliance on oil revenues and prepare for future economic changes by nurturing startups that develop groundbreaking solutions in areas such as agriculture and desert farming, waste management, and urban infrastructure. These niche innovations will contribute directly to the Kingdom’s sustainability goals, promoting resource efficiency, environmental protection, and enhanced urban living conditions. 

In this feature, we will explore three vibrant and strategically important sectors where Saudi startups are gaining traction: desert farming, waste management, and urban mobility.

Desert Farming 

Agriculture in Saudi Arabia faces multiple challenges due to the Kingdom’s arid desert climate characterized by limited water resources, high temperatures, and sandy, nutrient-poor soils. These difficult conditions make food production dependent on imports a persistent issue, driving an urgent need for innovative agricultural technologies that can sustainably increase local food production while conserving scarce water resources. 

Several Saudi companies and startups are pioneering solutions in desert farming using advanced technologies, such as hydroponics, aeroponics, AI-powered irrigation, and soil enhancement, to optimize water usage, improve crop yields, and enable farming in harsh desert environments. 

   Key Players

        *Saudi Desert Control. As a leader in sustainable land transformation, the company uses the Liquid Natural Clay (LNC) technology to transform arid land into fertile soil within just seven hours by combining natural minerals and clays with water. This innovation contributes to improving water retention, boosting plant health and crop yields, and reducing operational costs by 30% for new farmland establishments.

        *Iyri (formerly RedSea). This sustainable AgriClimate Tech company targets advancing commercial farming for low to mid-tech farmers in hot climates. Its patented, proprietary technologies reduce water and energy consumption by up to 90%. Iyris’ award-winning technology, SecondSky, is deployed in multiple greenhouse coverings and shade nets to minimize the stress and impact of near-infrared heat radiation on plants while allowing the spectrum of light that plants need for photosynthesis. This revolutionary innovation helps deliver more resilient, productive, and profitable crops in regions where climate change and excessive heat limit sustainable, productive growth. Additionally, iryis has developed plant genetics via a novel hybridization process that has the potential to breed resiliency to salinity, heat, and drought across a broad range of crops, ensuring stress-resistant, dependable food production.

       *Arable. This startup specializes in custom hydroponic systems tailored for Saudi Arabia’s desert climate. It uses advanced hydroponic technology to cultivate premium vegetables and herbs that are fresher, tastier, and longer-lasting than imported alternatives, using less water and reducing environmental impact.

       *Saudi Arabian Hydroponic Company (Zarei). Based in Al-Khobar, Zarei specializes in modern techniques of cultivation without soil (hydroponics) and the establishment of agricultural greenhouses using sophisticated modern techniques. Hydroponics relies on water in a closed cycle, saving more than 90% of water consumption compared to traditional agriculture methods.

       *GreenMast. This Riyadh-based agri-business company aims to revolutionize the farming model in the GCC region, leveraging fully-controlled high-tech hydroponics greenhouses. It offers various services to transform the farming sector, including greenhouse management and consultancy.

Waste Management

Saudi Arabia’s Vision 2030 focuses on transforming the Kingdom’s environmental practices, accelerating the circular economy, and setting global benchmarks in recycling and resource recovery. With aspirations to divert 85% of industrial waste from landfills by 2035, this national blueprint targets increasing municipal waste recycling rates through advanced technologies and integrated systems. The Kingdom’s sustainability goals also include accelerating the adoption of waste-to-energy solutions to reduce reliance on landfills and investing in infrastructure, partnerships, and innovations to support the circular economy.

A recent report released by the Mordor Intelligence stated that the waste management market in Saudi Arabia is expected to jump to $37.7 billion by 2030 from $25.8 billion in 2025, with a robust compound annual growth rate (CAGR) of 7.85%. the report also anticipated construction mega-projects, mandatory source segregation beginning in 2025, and carbon-credit eligibility for waste-to-energy facilities to increase the revenue base across collection, recycling, and recovery services after 2027.

Several Saudi companies and startups are driving innovation in the waste recycling sector to meet the Kingdom’s need for advanced and sustainable waste management solutions.

  Key Players

• Edama. As the organic waste recycling KAUST startup, Edama develops innovative organic waste recycling facilities to optimize the recovery and transformation of organic waste into innovative agricultural products.
• The Saudi Investment Recycling Company (SIRC). SIRC was launched by the Public Investment Fund (PIF) to develop, own, operate, and finance various activities across all waste types to establish recycling capacities in the Kingdom and build a circular economy for a sustainable future. It targets meeting the objectives of Vision 2030 and the revised Waste Management National Regulatory Framework through its subsidiary network, which includes:

              *Municipal Solid Waste Recycling Company (Yadoum), which focuses on developing progressive and sustainable solutions in the realm of municipal solid waste.

              *Akam Recycling Company for Environmental Services (Akam), a leading provider of environmental services and waste treatment activities. It plans to invest over SAR 160 million as part of its commitment to creating a sustainable future for the Kingdom.

              *Metal Recycling Company for Environmental Services (ELECTA), which focuses on managing the waste of electrical and electronic equipment, as well as metal scraps. 

              *Oil Management Company (Azyat), a pioneering provider of sustainable lubricant waste management solutions.

              *Medical Waste Treatment Company (Wazeen), a trailblazer in redefining how hazardous medical waste is managed and treated.

              *Global Environmental Management Services (REVIVA), a dedicated execution arm in the realm of industrial hazardous waste treatments.

Additionally, the public-private partnerships (PPPs) unlocked substantial investment toward collection, sorting, and waste-to-energy plants, ensuring scalable and bankable operations aligned with regulatory frameworks. Environmentally, these startups and initiatives significantly contribute to minimizing landfill dependency, greenhouse gas emissions, and pollution.

Urban Mobility Innovations

Saudi Arabia is taking confident steps towards redefining its urban mobility landscape by embracing sustainable practices that align with the Vision 2030 framework, aiming to reduce its carbon footprint, enhance the quality of urban life, and create a more sustainable future for its growing population.

A cornerstone initiative in the Kingdom’s sustainability mobility agenda is the development of electric vehicle (EV) infrastructure through building numerous EV charging stations across major cities to support the adoption of electric cars.

Saudi Arabia invested heavily in projects like the Riyadh Metro and Jeddah Metro to elevate public transportation networks. These projects are expected to reduce air pollution in urban areas.

To further advance sustainable mobility practices, Saudi Arabia adopted smart traffic management systems that utilize AI and big data analytics to optimize traffic flow, reduce congestion, and lower emissions. It also deployed autonomous vehicles to enhance mobility while minimizing environmental impact. These self-driving cars can operate more efficiently than human-driven cars, leading to reduced fuel consumption and lower emissions.

Moreover, the Kingdom integrated solar-powered buses and hybrid vehicles into the public transport fleet not only to decrease the carbon footprint but also to provide a sustainable and cost-effective alternative to traditional fuels.

Finally, niche startups in Saudi Arabia are strategically vital for the Kingdom’s sustainable development and economic transformation. By pioneering innovative solutions in desert farming, waste management, and urban mobility, these startups directly address environmental challenges while supporting diversified economic growth in line with Vision 2030. As government support, venture capital, and regulatory reforms strengthen, the outlook for continued innovation in these sectors is highly promising, reinforcing Saudi Arabia’s position as a regional leader in sustainable entrepreneurship.