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.

Kholoud Hussein

As the HR-tech landscape in the Middle East undergoes rapid transformation, new players are emerging to challenge outdated legacy systems and deliver solutions that match the region’s pace of growth. Among these innovators is Cercli, a platform founded by ex-Careem executives Akeed Azmi and David Reche, and backed by Y Combinator and Afore Capital. In an exclusive interview with Sharikat Mubasher, the founders shared how Cercli is tackling inefficiencies in payroll and workforce management and positioning itself at the forefront of the shift toward agile, AI-driven HR solutions.

Since its September 2024 fundraise, Cercli has recorded impressive growth with revenues climbing 22% month-on-month and payroll distributions expanding 14-fold across 48 countries and 17 currencies. “We set out to build a platform that delivers speed and compliance without the complexity of legacy ERP systems, and the response has exceeded our expectations,” the founders noted. They credit this momentum to a relentless customer-first approach, a globally experienced team drawn from leading technology firms, and an uncompromising pace of execution. 

Artificial intelligence plays a critical role in their product roadmap, powering tools like automated expense reimbursement and onboarding agents that cut implementation times from months to just 48 hours. With Saudi Arabia fast emerging as one of the most dynamic HR-tech markets, Cercli is closely studying the Kingdom’s labor frameworks, aiming to establish a stronger local presence to meet growing demand.

From Careem to Cercli: You both bring strong experience from Careem. How has that shaped Cercli’s vision and its approach to disrupting the HR-tech space in MENA?

Working at the region’s first unicorn shaped the way we think and built our entrepreneurial traits. At Careem we saw first-hand how painful payroll and HR operations were, especially for enterprises with thousands of employees. Payroll was painfully slow, HR tools were scattered, and nothing worked seamlessly.

We looked everywhere for a solution and couldn’t find one to solve these challenges. This is why we started Cercli: to eliminate the wasted hours and days spent on manual payroll and remove the need to juggle four or five disconnected tools. We knew there had to be a better way forward.

Since your fundraise in September 2024, Cercli has seen revenues soar 22% month-on-month and payroll distributions expand 14x across 48 countries. What have been the key drivers of this growth, and how do you plan to sustain this momentum?

The biggest driver has always been working and building alongside our customers first. 

Second, our hiring has been very deliberate. Our team includes incredible talent from companies like Careem, Kitopi, Stripe, Google, and Cloudflare. This talent could be anywhere in the world, but they chose to build Cercli.

And finally, sheer determination and speed. We build fast, we ship fast, and we keep moving with urgency. As any entrepreneur will be familiar - there have been plenty of sleepless nights too - but our shared purpose keeps us grounded and focused no matter how quickly we scale.

You emphasize the role of AI in transforming HR operations. Can you share specific ways Cercli is leveraging AI to replace outdated ERP systems and deliver measurable financial or operational savings for clients?

We see AI as an enabler in solving our customers' existing problems while also solving new ones that weren't previously possible. Adding AI for the sake of adding AI is not our stand in embracing new technology. AI is evolving and so is how we will utilize it. Internally, we already use AI to increase not just operational and engineering efficiency, but the real impact is in how it transforms the customer experience.

On the product side, many features are powered by AI. Take expense reimbursement: employees just upload a receipt in any format or language, and the system instantly extracts the details - amounts, dates, categories - reducing errors and saving finance teams a huge amount of time. Another is our job description creator, which - in mere seconds - helps hiring managers generate role descriptions during onboarding. We also have completely new AI products in development, which we will announce when ready.

Even the process of migrating and onboarding customers from legacy systems - which typically takes months - can now be done by Cercli in as little as 48 hours with the help of our onboarding AI agent. It reduces errors, ensures accuracy, and gets customers up and running much faster.

Across the platform the goal is the same for customers: reduce human error, stay fully compliant with a modern, human touch of running your entire workforce as opposed to outdated ERP systems in grey clunky user interfaces.

With Saudi Arabia emerging as one of the fastest-growing HR-tech markets, how critical is the Kingdom to your expansion strategy, and what are your immediate plans for operations there?

Saudi Arabia is one of the largest and fastest-growing markets in the region — if not globally. Ignoring it would be a mistake. We’re looking very closely at the Kingdom, its regulations, labor laws, and unique processes.

Many of our existing customers in the UAE and elsewhere already have employees in Saudi, and we help them manage payroll there. The next step is building a deeper, more strategic and local presence to support that demand and scale with the market.

You’ve hinted at imminent entry into another major GCC economy. Without revealing sensitive details, what factors guide your decision on new markets — regulatory environment, talent needs, or client demand?

Our analysis of new markets is deep and diverse. We assess levels of digitization; countries moving fast in modernizing their labor and compliance frameworks are natural fits for us. Another important factor is market maturity, meaning the number of rising companies scaling quickly and requiring tools like Cercli to grow without being held back by outdated systems.

We also consider demand from our existing customer base. Many of our clients already operate across multiple GCC countries, so we follow their needs closely to decide where expansion needs prioritizing.

Cercli now processes payroll in 17 currencies across 48 countries. How do you navigate the regulatory complexities of managing cross-border workforces, and what opportunities does this create for regional companies aiming to go global?

Talent is global, and we’re enabling regional companies to think global from day one. We’ve built our platform from the ground up with the regulatory complexity of the MENA region in mind.

Each country and/or zone, has its own rules around payroll, pensions, expat or national social security contributions, statutory body reporting, and even cultural nuances like Ramadan hours, weekends or Eid holidays affecting pay and labor laws.

By solving this fragmentation at the local level, we have created a payroll compliance ‘engine’ that scales.

The HR-tech space in MENA is getting crowded, with both local startups and global players eyeing the market. What differentiates Cercli from others, and how do you plan to defend your leadership position?

You are correct, the market is crowded. We knew that when we started Cercli, but the reality was despite various available options, no one was actually solving the real problem. Customers told us their many frustrations and we just listened. Global players had great functionality, but poor localization for regional compliance and know-how. Local players were decent on some aspects of compliance, but can't match feature depth or lacked a fully-fledged regional offering even after years of being around. Customer NPS for existing solutions were consistently low and incumbents were just too slow to respond.

Cercli is different because we eliminate that complexity. We have one platform for everything, fully localized for the MENA region, and built in close collaboration with our customers. We talk to them across multiple channels, we listen, and we build fast. That closeness and localization sets us apart and keeps us ahead.

Looking ahead, where do you see Cercli in the next three years — both in terms of product innovation and geographic footprint — and how do you see the broader HR-tech industry evolving in the GCC?

At the pace we’re building, our vision for the next three to five years is to completely replace these clunky legacy ERP systems and make running your workforce as intuitive as making a booking on AirBnb. We want to become the platform that every MENA-based company chooses to run their global workforce. More broadly, we see HR tech in the GCC evolving rapidly.

Companies are digitizing faster, governments are modernizing regulations for the new age, and expectations for simple, global-standard tools that justwork - are only going to grow. 

We’re building Cercli to stay ahead of that shift.

Finally, Cercli’s ambition is to fully replace legacy ERP systems and become the platform of choice for companies in MENA seeking to manage global workforces with agility and compliance. As governments modernize and enterprises expand internationally, the demand for intuitive, AI-powered HR tools is only set to rise. For Cercli, the future lies in building technology that not only keeps pace with this transformation but shapes it—bringing simplicity, speed, and scalability to the heart of workforce management.

Noha Gad

The commerce landscape is undergoing a significant transformation in 2025, driven by rapid technological advancements and changing consumer behaviors. Traditional retail and e-commerce are evolving beyond simple online transactions into immersive, engaging, and socially connected experiences. This shift reflects the importance of integrating technology, social media, and sustainability principles into how consumers discover, interact with, and purchase products and services. Thus, new types of commerce have emerged to redefine the relationship between brands and customers, creating innovative avenues for engagement, personalization, and convenience.

One of the most notable trends shaping commerce today is the rise of social commerce that integrates shopping experiences seamlessly into social media platforms. This type of commerce allows brands to engage directly with audiences, showcase products in real time, and drive immediate sales, creating a highly interactive retail experience.

Augmented reality (AR) and virtual reality (VR) technologies also revolutionize how consumers shop online by offering immersive and interactive digital experiences. Virtual try-ons, 3D product visualizations, and fully virtual stores enable customers to make informed purchase decisions from the comfort of their homes. 

Additionally, sustainability-driven commerce is another critical and rapidly growing trend that reflects consumers’ increasing preference for eco-friendly, ethical, and transparent shopping practices. Brands that embed sustainability into their business models, from sourcing and packaging to circular economy initiatives, are gaining trust and loyalty in a market where environmental responsibility is no longer optional.

In this blog, we will discover more about key trends that reshape the commerce landscape and how these shifting paradigms highlight a future where commerce is not just transactional, but experiential, interactive, and responsible.

Social commerce 

This term refers to the integration of e-commerce features directly within social media platforms, allowing users to discover, engage with, and purchase products without leaving their favorite applications. This trend gained rapid popularity among consumers who increasingly rely on social networks not only for social interaction but also for product recommendations, reviews, and seamless shopping experiences. 

Social commerce is witnessing significant growth thanks to multiple features, such as shoppable posts, stories, and in-app checkout options that simplify purchasing. These features reduce friction by allowing users to buy products directly through social media feeds, eliminating the need to navigate to external websites. Also, the integration of chatbots and customer service tools within social platforms enhances personalized shopping assistance and builds customer trust.

This type of commerce has a great impact on the way consumers discover brands and makes shopping more interactive and community-driven. For brands, social commerce opens new channels for storytelling, customer feedback, and direct engagement, enabling more personalized marketing strategies that foster loyalty and repeat business.

Live commerce

Live commerce integrates live video streaming with real-time shopping, creating an interactive experience where brands and influencers showcase products directly to an engaged audience. This type leverages the excitement and immediacy of live broadcasts to drive instant purchasing decisions, transforming the traditional sales funnel into a dynamic, entertainment-driven event. 

One of live commerce’s main strengths is the ability to interact with viewers in real time via chat, polls, and question-and-answer sessions. This interaction builds trust, answers consumer questions instantly, and encourages spontaneous purchases by creating a sense of urgency with limited-time offers and exclusive promotions.

This type of commerce enables brands to demonstrate products in action, showcasing features, benefits, and use cases more vividly than traditional online listings. It also features deeper emotional connections with consumers, ultimately reducing product returns and helping consumers make informed decisions.

AR and VR commerce

AR and VR transform online shopping by creating interactive experiences that bridge the gap between physical and digital retail. These technologies enable consumers to visualize products in a realistic context, enhancing confidence in purchase decisions and reducing the sense of uncertainty that often comes with online shopping. One of the biggest challenges in online shopping is the inability to physically experience products before purchase. AR and VR address this by offering personalized shopping experiences tailored to individual preferences and environments.

Sustainability-Driven Commerce

As awareness of climate change and resource depletion grows, shoppers increasingly demand products that minimize harm to the planet and promote fair labor practices. This shift requires businesses to integrate sustainability into every aspect of their operations, from product design and sourcing to packaging and distribution.

Sustainability-driven commerce emphasizes ethical sourcing practices, ensuring fair wages and safe working conditions throughout the supply chain. Brands are adopting blockchain and other technologies to increase transparency and traceability, allowing consumers to verify the origins and lifecycle of products. This transparency fosters trust and accountability, essential for maintaining brand reputation in a socially aware market.

As we navigate the rapidly changing world of commerce in 2025, adaptability and innovation have become essential for businesses aiming to thrive. Today’s consumers expect more than just products; they seek experiences that resonate with their lifestyles, values, and desire for authenticity. This evolution forces brands to reimagine their strategies and focus on creating deeper connections through meaningful engagement, transparency, and responsiveness. As 2025 unfolds, the most successful retailers will be those that master this balance, leveraging technology to connect, entertain, and inspire, while championing sustainability to build lasting trust and loyalty.

Ghada Ismail

When business founders land their first big fundraise, it can feel like unlocking a new level. Suddenly, there’s real capital to hire staff, launch a product, scale marketing, or even set up a new office. But for many, that influx of cash brings its own danger: burn rate anxiety. They spend fast. Too fast. And often, they run out of runway long before meaningful milestones are reached.

This issue isn’t unique to Saudi Arabia; it’s part of the startup playbook globally, but local dynamics, incentives, and pressures make it especially acute in the Kingdom. As Saudi Arabia pushes ahead with its Vision 2030 goals and builds out its tech ecosystem, understanding why many founders accelerate spending too quickly and how this behavior jeopardizes sustainability is vital.

The Investment Landscape

In the early 2020s, Saudi Arabia saw explosive growth in its startup funding ecosystem. According to MAGNiTT, the KSA venture capital landscape posted a compound annual growth rate (CAGR) of about 49% between 2020 and 2024. First half of 2025 data shows the momentum continuing: Saudi startups raised about $1.34 billion in H1 2025, contributing some 64% of the total capital flowing into startups across the MENA region

But this surge is not without turbulence. Total Saudi funding dropped sharply in 2024 to around $750 million, a decline of about 44% year-over-year. Investors are more risk-aware, interest rates are up globally, and cheap money is less abundant. Meanwhile, although deal count remains reasonably strong, the size and quality of many early-stage rounds suggest founders are getting just enough fuel but are burning it quickly.

In this setting, founders often feel they must prove growth fast to justify valuations and future rounds. Burn becomes the badge of ambition. But without discipline, ambition can overrun sustainability.

What Drives Impulsive Spending?

Why do many Saudi founders spend fast after their first meaningful raise? Below are several intersecting causes:

1. Pressure to Signal

Securing funding is a public statement. For many founders, especially first-timers, spending on optics—office, branding, public events—becomes a way to validate the raise in the eyes of peers, media, and potential future investors. Luxury offices, PR teams, flashy marketing campaigns: these all send a message that the startup is serious and “playing at a higher level.”

2. Expectations of Growth & Speed

Investors often reward fast growth: user acquisition, market entry, and scaling. Founders internalize that and think in terms of “go big or go home.” Even before product-market fit is fully validated, they chase expansion: hiring aggressively, expanding into new markets, or scaling marketing channels prematurely.

When the macro environment is still rich with investment capital, pressure builds to outpace competition rather than pace builds around fundamentals.

3. Weak Financial Planning & Inexperienced Teams

Many early-stage startups in Saudi Arabia are led by passionate technical or product founders, often with less exposure to finance, unit economics, or cash-flow modelling. Without senior finance leadership or rigorous financial discipline, projections are optimistic and buffers are small.

They may underestimate costs (salaries, infrastructure, marketing), overestimate revenue growth, and mispredict customer acquisition cost (CAC) vs. lifetime value (LTV). This disconnect leads to spending that looks reasonable in plan, but in reality is unsustainable.

4. Easy Access to Capital + Push for Scale

Part of the Vision 2030 strategy has been opening up capital pools; government funds, accelerators, and VC firms are more active, and international investors are watching Saudi startups closely. That access encourages founders to spend, expecting that more capital will always come.

Alongside this, there’s a bias toward scaling up: bigger teams, more features, broader geographic footprint. Sometimes, less attention is given to profitability or even consistency of revenue. The “growth at all costs” mindset kicks in, especially when valuations are rising and comparisons with peers matter.

5. External Economic Pressures

Global economic tailwinds (inflation, supply chain shocks, rising costs) hit startups hard. In Saudi Arabia, rising operational costs—office rent, recruiting expensive talent, marketing—can strain budgets. Also, when interest rates rise and investor risk aversion increases, the pricing of capital and access to follow-on funding become less certain.

Consequences of High Burn: Why the Anxiety is Justified

Why is this urgent? What happens when burn rate exceeds sustainable levels?

1. Runway Depletion & Forced Cost Cuts
   If spending burns through capital too quickly, companies hit a cliff: layoffs, pivoting away from strategic priorities, or scaling back product features. These sudden adjustments damage morale, user trust, and long-term trajectory.
2. Valuation Pressure and Down Rounds
   Over-spending without matched growth can lead to disappointing metrics at the next fundraise. If performance lags expectations (users, revenue, retention), investors may value the startup lower than its previous round, causing down rounds. These dilute founder equity and harm investor confidence.
3. Investor Fatigue & Reputation Risk
   If founders repeatedly overspend or fail to show progress, local investors may begin to demand more oversight, impose stricter terms, or shy away from first-time founders. For the broader ecosystem, bad stories reduce willingness among limited partners (LPs) to invest in early-stage funds or raise their standards, making life harder for all.

Case Study: TradeHub—Choosing Discipline Over Runway

When entrepreneur Ahmed Jaber launched TradeHub in late 2023, investor enthusiasm was immediate. The cross-border B2B marketplace raised $1.4 million in pre-seed funding within just two months in a textbook early-stage win.

But funding didn’t translate into product-market fit. After a pivot to a SaaS sales-automation tool, Jaber and his team still couldn’t lock onto a model that customers truly needed. Despite having capital left in the bank, they made the rare decision to shut down the company and return remaining funds to investors.

Jaber later summed up the move: “Knowing when to stop is as important as knowing when to continue.”

For Saudi founders, the TradeHub story is a sharp counterpoint to the burn-rate spiral. Many startups, flush with first-round cash, rush into heavy hiring, marketing splurges, and premature scaling, only to find that revenue can’t keep pace. Jaber’s choice to preserve capital and reputation, rather than spend in hope of a breakthrough, illustrates that capital is a tool, not a trophy.

How Founders Can Shift to Balance

It’s not that spending is bad; it’s how and when you spend that counts. Here are some strategies Saudi founders can adopt to manage burn more intelligently.

A. Build Financial Discipline Early

• Hire or consult finance leadership early. A CFO or financial controller, even part-time or advisory, helps with realistic budgeting, forecasting, and monitoring cash flow.
• Scenario planning: run models for “best case,” “moderate case,” and “worst case” to see how burn looks under different growth assumptions (sales, retention, cost inflation).
• Focus on unit economics: customer acquisition cost (CAC), lifetime value (LTV), retention rates. If you have to spend $100 acquiring a user who gives $10 over their lifetime, growth through spending doesn’t scale well.

B. Stage Spending According to Milestones

• Prioritize capital allocation to high-leverage activities first: product development, core hiring (engineering, operations), modest marketing to validate channels.
• Delay expensive hires, extravagant offices, or wide regional expansion until product-market fit and stable revenue streams are proven.
• Let metrics (growth, retention, margins) guide the next spending round, not promises or projections alone.

C. Align with Investors on Realistic Metrics

• Be explicit in your pitch and early communications about what growth metrics matter vs which are vanity metrics.
• Set mutually agreed KPIs: monthly recurring revenue, churn, gross margin, profit vs. cost reductions, etc.
• Include milestones for fundraising rounds tied to performance (e.g., reaching X revenue, Y retention, or proof of unit economics), to ensure the next funding is obtained on solid footing.

D. Use Lean and Localized Strategies

• Use digital channels efficiently—invest in data to know which campaigns actually convert, where costs are sustainable.
• Wherever possible, outsource or use contractors/hybrid remote teams to avoid large fixed costs in early stages.
• Leverage local infrastructure and partnerships rather than immediately seeking costly global expansion.

E. Ecosystem Support and Shared Learning

• Founders can benefit from local incubators/accelerators that offer CFO-as-a-service or financial advisory, allowing even early-stage companies to access better financial practices without hiring full senior leadership.
• Build networks of peer founders to share lessons on what worked—and what drained runway.
• Investors can play a role: some are moving towards more hands-on support. If VCs insist on aggressive marketing spend or expansion, they share responsibility for the consequences.

Conclusion: From Burn Rate Anxiety to Sustainable Ambition

Saudi Arabia stands at a crossroads in its startup journey. The Kingdom has done much right: launching public funds, promoting entrepreneurship, building infrastructure, and attracting global capital. The momentum is there. But momentum isn’t everything. Without financial prudence, even well-funded startups risk burning out fast—losing talent, investor trust, and ultimately, potential.

Founders who learn to balance ambition with discipline—who spend with intent rather than spectacle—will likely emerge as the durable success stories. For Saudi Arabia’s tech ecosystem to deliver on its promise under Vision 2030, that shift—from burn to balance—must come sooner rather than later.

Noha Gad

Modern commerce is witnessing a significant transformation triggered by rapid developments in technology. The traditional retail landscape, which was centered on physical stores and direct customer interactions, is evolving into a digitally interconnected ecosystem. This change was driven by emerging technologies that enhance how products are sold and redefine the overall customer experience and operational efficiency. 

Technologies such as artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) emerged as key enablers that revolutionize each aspect of modern commerce. Businesses increasingly utilize cutting-edge tools to understand and anticipate customer needs, tailor offerings, and create more engaging shopping environments. AI-driven analytics allow retailers to handle vast amounts of data, providing insights that help optimize product assortments, pricing strategies, and personalized marketing.

On the other side, VR and AR fill the gap between digital and physical worlds, offering immersive and interactive experiences for customers, ultimately enhancing logistical operations by improving warehouse management, staff training, and real-time problem-solving.

As modern commerce continues to evolve, organizations embracing these technologies are well-positioned to meet rising consumer expectations and adapt to the fast-changing market landscape effectively. Thus, understanding the importance of this technological evolution is essential for businesses to remain competitive

How AI transforms modern commerce

AI has become a cornerstone of innovation in modern commerce, driving significant improvements across customer engagement, inventory management, and operational efficiency.

-Personalization and customer insights. AI uses machine learning algorithms to analyze customer data, such as browsing behavior, purchase history, and preferences. This enables businesses to deliver personalized product recommendations and marketing messages in real time, enhancing customer satisfaction and boosting conversion rates.

-Inventory management and forecasting demand. AI models can optimize inventory levels by processing large datasets on sales trends, seasonality, and external market factors. This reduces risks of overstock or stockouts, cutting costs related to excess inventory and lost sales opportunities

-Customer experience enhancement.  AI-powered chatbots and virtual assistants provide 24/7 customer support by handling routine inquiries, guiding shoppers through product selections, and resolving common issues quickly. This ultimately contributes to enhancing customer experience and reducing response time, thereby enabling human agents to focus on more complex problems. 

-Fraud detection. AI models detect unusual patterns and potential fraud in real time by analyzing transaction data and user behavior. This capability enhances the security of digital payments and protects both merchants and customers from cyber threats.   

Using VR and AR to enhance the shopping experience 

VR and AR are transforming the shopping experience as they create immersive environments that engage customers in ways traditional retail cannot. For instance, virtual stores and showrooms allow shoppers to explore products in a fully digital space without leaving their homes. Both innovations enable virtual product try-ons and demonstrations, especially valuable in sectors like fashion, furniture, and automotive.

Additionally, VR and AR are used for remote product training and retail staff education. Retailers can simulate real-world scenarios to train employees on product knowledge, customer interaction, and store layout without disrupting physical store operations. This method improves staff preparedness and service quality, directly benefiting the shopping experience.

These innovative technologies also fill the gap between physical and online retail, making shopping more interactive, engaging, and convenient in the modern commerce landscape. They enable interactive marketing campaigns and promotions that engage customers in innovative ways.

The integration of AI, VR, and AR technologies in modern commerce has a significant impact on supply chains and logistics as they can optimize inventory and deliveries, enhance warehouse and fulfilment efficiency, promote logistics planning, and improve risk management. 

Finally, these emerging technologies are fundamentally reshaping the landscape of modern commerce, creating opportunities for businesses to innovate and deliver exceptional customer experiences. 

Beyond customer interaction, they revolutionize the operational backbone of commerce by optimizing supply chains and logistics. AI-driven analytics improve forecasting and inventory control, AR guides warehouse staff to operate more efficiently, and VR simulations help plan resilient delivery routes and workflows. Together, these innovations not only reduce costs but also enhance speed, accuracy, and flexibility in meeting consumers’ growing demands.

Looking ahead, the continued convergence of AI, VR, and AR is expected to unlock more transformative possibilities that will redefine how people discover, interact with, and purchase products.

Ghada Ismail

Some startups appear to emerge almost overnight, moving from obscurity to market ubiquity with remarkable speed. This rapid ascent is rarely the result of chance. It is often the product of a deliberate strategy known as blitzscaling: a calculated decision to pursue extraordinary growth at an exceptional pace, accepting significant operational and financial risks in the process.

Blitzscaling can be likened to accelerating a high-performance vehicle before all of its components have been fully tested. When successful, the approach allows a company to secure market dominance before competitors can respond. When mismanaged, it exposes the organization to structural weaknesses that can derail progress just as quickly as it began.

What Is Blitzscaling?

The term was popularized by LinkedIn co-founder Reid Hoffman and entrepreneur Chris Yeh in their book Blitzscaling. At its core, blitzscaling is the deliberate pursuit of massive, rapid growth, prioritizing speed over efficiency. The goal is to capture market share so quickly that competitors can’t catch up, even if it means high spending, operational chaos, or short-term losses. Startups that blitzscale often expand across new markets, hire aggressively, and spend heavily on marketing before perfecting processes or achieving profitability.

This approach is especially common in industries with network effects—where the value of the product grows as more people use it—such as marketplaces, social platforms, and fintech. Once a company reaches critical mass, it can become the default choice, making it hard for latecomers to compete.

Why Founders Consider Blitzscaling

For many founders and investors, the appeal is clear: become the first and biggest player before the rest of the market even realizes what’s happening. Blitzscaling can create powerful first-mover advantages. Customers and partners gravitate toward the market leader, talent is easier to recruit, and investors are eager to back a company that looks unstoppable.

In venture capital circles, momentum matters. A startup showing exponential user growth or market capture often finds it easier to raise follow-on funding at higher valuations, which in turn fuels even faster expansion.

Key Advantages

• Market dominance: Set industry standards and shape consumer habits.
• Network effects: More users bring more value, which draws even more users.
• Virtuous growth cycle: Users → talent → product improvements → more users.

Major Risks

• Extreme burn rate: Heavy spending demands constant fundraising.
• Operational chaos: Hiring too fast can dilute culture and weaken management.
• Regulatory and legal exposure: Rapid global expansion often outpaces compliance.
• Founder burnout: High pressure and nonstop growth can exhaust leadership teams.
• Product-market misfit: Scaling before perfecting the product can backfire.

Is Blitzscaling Right for Your Startup?

Blitzscaling only makes sense under specific conditions: a huge addressable market, strong network effects, abundant funding, and a product that already shows solid product-market fit. If those elements are missing, a more measured approach—sometimes called “smart scaling”—may be wiser.

Founders should weigh whether their market rewards speed above all else or whether careful, sustainable growth will ultimately create more value. In many cases, establishing operational discipline before hypergrowth can prevent costly missteps later.

Conclusion

Blitzscaling can turn startups into market leaders at lightning speed, but it is a high-stakes gamble. When the market is ready, the rewards are enormous: dominance, brand recognition, and the ability to set the rules of the game. Yet the same strategy can drain resources, strain teams, and end in failure if the fundamentals are weak.

For founders, the question isn’t just “Can we blitzscale?” but “Should we?” Careful assessment of market dynamics, funding prospects, and internal capacity can reveal whether chasing hypergrowth is a bold move or a dangerous sprint toward a cliff.

Noha Gad

Digital wallets have become central to the way consumers conduct payments and manage their finances, offering convenience and seamless digital transactions. Their widespread adoption in retail, banking, and peer-to-peer transfers has made them a preferred alternative to cash and physical cards. 

These wallets handle increasing volumes of sensitive financial data; thus, robust security measures cannot be overstated. Traditional password protections alone are no longer sufficient to combat sophisticated cyber threats and fraud schemes targeting these platforms.  

Emerging security technologies, such as multi-factor authentication (MFA), decentralized identity (DID) solutions, artificial intelligence (AI), machine learning (ML), and tokenization, are addressing these demands by introducing multi-layered protection methods.

Multi-factor authentication (MFA)

The MFA technology significantly enhances digital wallet security by requiring users to verify their identity through multiple independent factors before granting access. Common MFA methods in digital wallets include one-time passwords (OTPs) sent via SMS or email, biometric verification through fingerprint or facial scans, and hardware tokens that generate secure codes. This layered approach makes unauthorized access much more difficult for attackers.

Another type of factor used is certificate-based authentication, which relies on a digital certificate, also called a soft token, to identify a user, machine, or device before granting access. Most enterprise solutions already support certificate-based authentication, and many wallets, such as those by Google Pay and Apple Pay, deploy this in coordination with traditional methods such as a username and password/PIN. 

Although the integration of the MFA reduces fraud rates and unauthorized account access, challenges remain in ensuring universal adoption and maintaining user convenience without compromising security. As cyber threats become increasingly sophisticated, MFA represents a foundational barrier that protects users’ financial assets and sensitive information from theft and compromise. Its continued evolution and adoption will remain critical to maintaining trust in digital payment ecosystems.

Decentralized identity (DID) solutions

A decentralized Identifier (DID) is a unique identifier that can be issued by a decentralized platform and acts as proof of ownership of a digital identity. DID solutions use cryptography and distributed systems, often blockchain technology, to give individuals total control over their digital ID, which is seen as a more tamper-resistant and privacy-preserving method. 

Unlike traditional identity systems that rely on centralized authorities to issue and manage identities, decentralized identity empowers users to create, control, and manage their own digital identities without depending on any single entity. This shift reduces vulnerabilities inherent in centralized databases, which are prime targets for cyberattacks and data breaches. 

This modern approach enables individuals to have full ownership and control over their personal data, allowing them to decide what information to disclose, to whom, and for how long. For digital wallets, DID integration means users can authenticate themselves and verify transactions without exposing unnecessary personal or sensitive data, thereby reducing the attack surface and building user trust by preventing mass data leaks.

AI & ML in fraud detection

Artificial intelligence (AI) and machine learning (ML) play a pivotal role in advancing fraud detection capabilities within digital wallets as they analyze vast amounts of transactional data in real time and identify patterns and behaviors that deviate from normal usage. AI and ML algorithms can adapt to evolving fraud tactics, enabling proactive detection and prevention before fraudulent transactions are completed.

AI-driven systems harness advanced techniques such as anomaly detection, risk scoring, and predictive modeling to assess each transaction's legitimacy. This dynamic assessment improves the accuracy of fraud detection compared to static rule-based systems that may either miss complex fraud schemes or generate excessive false alarms.

Meanwhile, ML models in digital wallets leverage user behavior analytics, tracking factors like device usage, login patterns, and payment frequency to establish individualized risk profiles that distinguish genuine users from potential fraudsters more effectively, ultimately minimizing disruptions caused by unnecessary transaction denials. 

Integrating AL and ML technologies into digital wallets not only minimizes fraud losses but also promotes operational efficiency by automating risk management processes. These technologies are expected to offer more advanced defenses, including real-time threat hunting and adaptive authentication that dynamically adjusts security measures based on assessed risk levels.

Tokenization 

This technology is crucial for securing digital wallet transactions as it replaces sensitive payment information with unique, non-sensitive identifiers called tokens, which carry the necessary transaction data without exposing actual card numbers or bank details during payment processing. 

Unlike traditional encryption methods, tokenization stores actual account information in highly secure token vaults, isolated from merchants and payment processors.

Digital wallet providers have widely adopted tokenization to comply with stringent security standards such as the Payment Card Industry Data Security Standard (PCI DSS), enhancing consumer confidence and regulatory compliance. 

Along with protecting sensitive information, tokenization creates opportunities for innovative payment experiences, standing as a foundational security element that ensures transactions remain secure, seamless, and user-friendly.

Saudi Arabia has been significantly integrating emerging technologies to enhance the security of digital wallets, in line with Vision 2030’s goal of promoting a cashless society and digital economy. The Saudi Central Bank (SAMA) is a key contributor to this transformation, starting from regulating digital payment providers under comprehensive frameworks to creating an enabling environment for digital wallets to adopt advanced security technologies.

The Kingdom is actively incorporating AI and ML into the national fintech ecosystem to enhance transaction monitoring, fraud detection, and risk assessment, thereby increasing transparency and accountability while ensuring a secure cashless transaction environment.

Along with technology adoption, Saudi Arabia backs fintech innovation through significant investments supported by government entities and partnerships with regulatory bodies, aiming to stimulate the development and market reach of advanced digital wallet solutions incorporating MFA, AI, DIDs, and tokenization.

Finally, digital wallets continue to transform payments by merging convenience with cutting-edge security technologies to protect user data and ensure transaction integrity. These technologies provide a multi-layered defense framework that ensures digital wallets remain secure, seamless, and trustworthy in an increasingly digital financial environment. The integration of these multi-layered protections will definitely establish a strong foundation for sustainable digital finance growth, while prioritizing security innovation. 

Ghada Ismail

Artificial intelligence (AI) promises to reshape economies and societies in ways once unimaginable. For Saudi Arabia, it is also a tool to diversify its economy, boost productivity, and advance global competitiveness. Yet alongside opportunity comes risk, represented in bias, misinformation, privacy concerns, and job displacement. Building ethical AI is not optional; it is essential. The Kingdom is uniquely positioned to balance regulation, innovation, and responsibility as it pursues this AI-driven future.

A Rapidly Growing AI Ecosystem

Since its establishment by royal decree in 2019, the Saudi Data and Artificial Intelligence Authority (SDAIA) has been at the center of the Kingdom’s AI strategy. Its National Strategy for Data and AI (NSDAI), launched in 2020, set ambitious targets: ranking among the world’s top 15 AI nations by 2030, training 20,000 specialists, attracting SAR 75 billion in investment, supporting 300 startups, and driving scientific output.

Progress is already visible. SDAIA has forged partnerships with global players like Accenture to build national cloud infrastructure, IBM for energy and sustainability AI, and Google for earth observation and environmental protection. Saudi Arabia now ranks first worldwide for open data availability, hosting more than 11,000 datasets from nearly 300 entities. SDAIA’s environmental AI projects, such as the Smart Planet Program, predict vegetation changes with more than 90% accuracy, supporting sustainable planning.

The impact is tangible: over SAR 50 billion (~$13 billion) in cost savings across government operations, from the DEEM cloud platform to AI-assisted Hajj crowd management and the popular Tawakkalna app. AI is no longer abstract—it is woven into the daily lives of citizens and the functioning of the state.

Why Ethics Must Come First

With AI permeating sensitive domains like healthcare, mobility, and even Hajj safety, trust is the foundation of Saudi Arabia’s AI journey. Without safeguards, algorithms can entrench bias, erode privacy, or undermine fairness. Aligning AI with Vision 2030’s goals—social equity, inclusion, and quality public services—requires more than innovation. It requires ethics to be at the core of every deployment.

Governance and Guardrails

Saudi Arabia’s regulatory approach mixes centralized oversight with room for innovation. SDAIA, together with the National Data Management Office (NDMO), enforces data classification and ethical policies, balancing openness with security.

Beyond rules, SDAIA promotes dialogue through summits like DeepFest at LEAP 2025, where regulators, innovators, and academics engage on transparency, human-centric design, and responsible regulation. This positions the Kingdom not just as a user of AI but as a thought leader in its governance.

Innovation with a Cultural Core

Startups are embedding ethics into their products from the outset, supported by SDAIA’s regulatory sandboxes that allow real-world testing without stifling creativity.

One striking example is HUMAIN Chat, a chatbot powered by the locally built ALLaM-34B language model. Developed by a PIF-backed firm in collaboration with SDAIA, HUMAIN Chat is Arabic-first, supporting regional dialects while also functioning seamlessly in English. Unlike global tools, it integrates Islamic values and cultural heritage, ensuring its outputs resonate with local norms. Trained on proprietary Saudi datasets, it combines linguistic precision, cultural fidelity, and strong safety benchmarks—all hosted entirely within the Kingdom to guarantee data sovereignty.

From an ethical lens, HUMAIN and ALLaM represent an effort to define AI through local values, not imported defaults. By addressing bias, protecting user data, and embedding cultural authenticity, they show how responsible AI can reflect societal identity as much as technical standards.

To reinforce this ecosystem, SDAIA also certifies startups as ethical AI providers. Its accreditation framework awards annual “incentive tags”—from Conscious to Pioneer—that track a company’s maturity in embedding safeguards. These certifications turn abstract ethical principles into measurable progress, rewarding transparency and building public trust.

Responsibility Through People and Skills

Technology is only half the story; people complete it. Saudi universities are cultivating AI talent attuned to fairness and transparency. At King Saud University, Latifa Al-Abdulkarim, a rising leader in explainable AI and ethics, exemplifies this values-driven scholarship.

Meanwhile, SDAIA is widening access to AI careers. Its Elevate program, launched with Google Cloud, aims to train 25,000 women in AI over five years, with the first phase already reaching 1,000 women from 28 countries. Complementary programs at SDAIA Academy have certified nearly 2,000 more women in data and AI, embedding diversity and inclusivity into the Kingdom’s AI workforce.

Cultural and Religious Anchors

What sets Saudi Arabia apart is its decision to ground AI ethics not just in global norms, but also in Islamic values—justice, accountability, and transparency. This alignment enhances legitimacy and encourages societal acceptance, offering a model of ethics that could resonate across the Muslim world.

The Roadblocks Ahead

The momentum is strong, but challenges remain:

• Pace vs. oversight: Regulation must keep up with rapid innovation.
• Rules vs. enforcement: Without audits and accountability, standards risk being symbolic.
• Imported bias: Foreign algorithms, if unadapted, can embed cultural misalignment.
• Public trust: Ethical lapses in sensitive areas could erode confidence quickly.

Meeting these challenges will require continuous vigilance, independent auditing, and culturally sensitive design.

A Chance at Global Leadership

Saudi Arabia is not just participating in the global AI race; it is also shaping the conversation. Hosting platforms like GAIN and DeepFest, deploying culturally aligned AI models, and building regulatory infrastructure give the Kingdom a chance to lead by example. If it codifies regional standards and shares its framework internationally, Saudi Arabia could become the ethical AI hub of the Middle East, influencing emerging economies worldwide.

Conclusion: Ethics as an Accelerator

Far from slowing progress, ethical AI can accelerate it, ensuring that innovation unfolds responsibly, inclusively, and with social good at its heart. Saudi Arabia now has the foundations: governance, infrastructure, talent, and cultural legitimacy. The test will be sustaining enforcement, broadening public education, and adapting foreign technologies to local values. If successful, the Kingdom won’t simply join the AI elite; it could rather help define what responsible, values-driven AI looks like in the 21st century.

Noha Gad

In today’s world, the way people manage money and investments not only impacts financial returns but also has profound effects on the environment and society. Sustainable finance is an approach that recognizes this connection by integrating environmental, social, and governance (ESG) standards into financial decisions. 

The ESG standards offer a framework for evaluating how companies and investments perform in these critical areas: environmental responsibility, social impact, and governance transparency. They help investors understand the broader risks and opportunities that traditional financial metrics might miss.

Sustainable finance plays a pivotal role in advancing ESG principles by directing capital toward initiatives that promote long-term sustainability and responsible growth. This approach is crucial for addressing global challenges, notably climate change and social inequality.

Green finance, which is a key component of sustainable finance, focuses specifically on funding environmentally beneficial projects, including investments in renewable energy, energy efficiency, pollution control, water management, and biodiversity preservation. Instruments such as green bonds and sustainability-linked loans are common tools used to mobilize capital for these purposes.

Ultimately, sustainable and green finance aim to rebuild financial systems to serve society and the planet in a better way, directing investments into activities that align with sustainability goals and support the transition to a low-carbon, equitable economy.

How does sustainable and green finance support 3?

Integrating ESG criteria into investment and financing decisions ensures that the capital is allocated to projects and companies that demonstrate responsible practices aligned with ESG principles. This integration helps drive positive environmental outcomes, social inclusion, and transparent governance. For instance, green finance channels funds into renewable energy, energy efficiency, and ecosystem conservation projects that directly address the environmental goals of ESG.

Financial instruments like green bonds and ESG-linked loans were designed to link funding conditions to ESG performance, incentivizing companies to improve their sustainability practices.

Benefits of integrating sustainable finance with ESG standards

Integrating sustainable finance with ESG standards brings significant benefits to businesses, investors, and society. This includes: 

*Lower operational costs and improved efficiency.

*Enhanced risk management.

*High stock market performance.

*Strong employee engagement.

*Improved brand reputation.

*Compliance with regulations.

Although the integration of sustainable finance into ESG standards offers various advantages, it faces different challenges, notably:

• Changing regulatory landscape: Financial institutions face a rapidly shifting regulatory environment with new rules emerging globally. Navigating these evolving requirements demands agility and continuous adaptation.
• Risk of greenwashing: misleading sustainability claims, known as greenwashing, impose major challenges that affect transparency and lead to mislabeling of funds as sustainable without sufficient backing.
• Fragmented standards: The absence of globally accepted ESG and green finance standards creates confusion and complicates compliance.
• High compliance costs: Meeting enhanced ESG disclosure requirements can be expensive and resource-intensive, particularly for smaller firms.
• Data quality and transparency issues: Reliable and standardized ESG data remain rare. This makes it difficult for investors to assess sustainability credibly.

Sustainable and green finance are expected to witness significant growth in the future, triggered by evolving regulatory frameworks and innovation. The global sustainable finance market is projected to expand rapidly, with assets under management (AUM) anticipated to rise substantially in the next few years. This growth will be triggered by increasing investor demand for ESG-aligned products and the widespread awareness of the importance of integrating sustainability for long-term financial performance and risk management.

Innovative financial instruments, such as sustainability-linked loans, green bonds, climate-linked derivatives, and voluntary carbon credits, are emerging to realize various sustainability goals. Technology is playing a transformative role, with advances in artificial intelligence and blockchain enhancing transparency, data accuracy, and efficiency in ESG reporting and sustainable asset issuance.

Overall, the sustainable finance ecosystem is expected to become more advanced and integrated, driving a global transition toward a resilient, low-carbon, and equitable economy. Strategic adaptation to these trends will be pivotal for investors, companies, and policymakers aiming to capitalize on opportunities while addressing pressing environmental and social challenges.

Ghada Ismail

For many founders, reaching the IPO stage is a dream moment in their business journey. It is more than a financial milestone; it is proof that the late nights, scrappy beginnings, and relentless hustle have led to something bigger. Going public opens the door to growth, recognition, and a permanent place on the business map.

But here is the thing: an IPO is not just about that single moment on the trading floor. It is about showing the market that your company is ready for the spotlight, and that takes years of preparation.

So how do you know if you are ready? Let’s break it down.

Get Your Financial House in Order

Think of your financials as the backbone of your IPO story. Investors want to see clean, audited numbers that paint a picture of stability and growth. Shortcuts will not cut it here. Accuracy and transparency are everything.

Many founders bring in a seasoned CFO who has guided companies through IPOs before. That experience is invaluable when regulators and investors start asking tough questions. The sooner you put strong financial systems in place, the smoother the road will be.

Build a Governance Structure People Can Trust

Numbers matter, but people matter more. Investors need confidence not just in your product but in your leadership. That is where governance comes in.

A solid board with independent directors and clear oversight tells the market you are serious. If your current setup feels more like a friendly advisory circle, it might be time to upgrade. Think of it as leveling up your leadership team for the big leagues.

Get Comfortable with Regulation

Going public comes with rules, and lots of them. From quarterly reports to disclosure requirements, compliance will become part of your everyday life. It may sound daunting, but with the right legal advisors, it is manageable.

Remember: investors want reassurance that you can play by the rules. Show them you can, and you will earn their trust.

Tell a Growth Story People Believe In

Your financials prove what you have done. Your story convinces people of what is next. Why should the market believe in your future? What makes your company the one to back five years from now?

A compelling growth story is not just about big promises. It is about connecting your wins so far to a clear, data-backed vision of where you are headed. That narrative becomes the heart of your IPO pitch.

Upgrade Your Team and Systems

An IPO is not just about raising money; it is rather about scaling to meet bigger expectations. Once you are public, everything is under the microscope.

That might mean upgrading your executive team, strengthening IT systems, or setting up dedicated investor relations. Think of it as preparing your startup for prime time.

Start Building Investor Relationships Early

The best IPOs are built on trust that starts long before the listing. Cultivate relationships with institutional investors, analysts, and even the media early on.

By the time you are ready to go public, you will not just be introducing yourself; you will be continuing a conversation.

Look Beyond IPO Day

It is tempting to see the IPO as the finish line. In reality, it is just the beginning of a new phase. Public companies face quarterly earnings calls, media scrutiny, and shareholder pressure.

As a founder, your challenge is to hold on to the agility that got you here while adapting to the accountability public markets demand. Now here’s a quick IPO Readiness Checklist for your convenience:

IPO Readiness Checklist

•  Audited financials that show growth and profitability
•  Independent board and clear governance structure
• Compliance framework with legal advisors in place
• A credible growth story supported by strategy and data
• Upgraded systems and talent ready for public company life

Wrapping Things Up…

An IPO can change everything, but only if you prepare for it with intention. Strong financials, trusted governance, regulatory readiness, a clear growth story, and the right team are your foundation.

And remember: going public is not about ending the journey. It is about starting the next chapter on an even bigger stage.

Noha Gad

In the heart of the Middle East, Saudi Arabia is positioning itself as a global logistics hub, supported by strong government backing, extensive infrastructure development, and ongoing reforms in laws and regulations. The National Industrial Development and Logistics Program (NIDLP) aims to enhance the performance of logistics hubs and improve local, regional, and international connectivity across trade and transport networks, leveraging the Kingdom’s strategic location as the crossroad of three continents.

Tech-powered platforms like Salasa are revolutionizing traditional logistics by integrating advanced digital tools with deep market expertise, redefining speed, transparency, and operational efficiency.

As one of the leading e-commerce fulfillment platforms in Saudi Arabia, Salasa connects businesses to a sophisticated fulfillment network, turning complex logistics into seamless customer experiences.

To explore this transformation, Sharikat Mubasher interviewed Salasa’s founders, Hasan Alhazmi and Abdulmajeed Alyemni, to learn more about the platform’s business model, innovative offerings, and its role in transforming the logistics industry in Saudi Arabia.

Alhazmi, who also serves as Salasa’s CBO, shared insights into the platform’s evolution from a 3PL delivery provider to the logistics partner of choice for over 1,000 merchants, having fulfilled and shipped more than 50 million products domestically and internationally since inception.

First, what motivated you to establish Salasa? And what are the key logistics challenges that the platform addresses? 

Salasa began as a simple 3PL company delivering e-commerce orders by car and motorcycle. When one of our clients faced challenges with picking and packing, we stepped in to handle it. That light bulb moment revealed a clear opportunity: fulfillment could be offered as a dedicated service. My partner and I left our jobs at the time to build that model from the ground up.

From those first few shipments, we have grown into a network that has fulfilled over 50 million products, built on the belief that merchants should be able to scale without being weighed down by operational complexity. Today, our high-speed dark stores and mega fulfillment centers solve the exact pain points we saw in those early days: slow delivery times, fragmented courier options, and the cost burden of running in-house logistics. We combine that infrastructure with smart technology to give merchants what they need most: speed, reliability, and the ability to grow without limits.

How did Salasa enhance its products and services to transform the e-commerce logistics industry in Saudi Arabia? 

We are focused on building an infrastructure and technology ecosystem that work seamlessly together. 

On the physical side, we expanded to 15 dark stores and three mega fulfillment centers, ensuring we can reach the majority of customers in Saudi Arabia within hours, not days. 

On the technology side, we are rolling out solutions that automate courier selection, further optimize delivery routes, detect upcoming merchant campaigns, and predict inventory needs based on demand trends.

These tools will give merchants more control and visibility. No more guesswork. Merchants can track their orders in real time, anticipate stock needs, and respond to demand spikes with confidence. Over time, this combination of speed, transparency, and flexibility will raise the bar for what merchants expect from a logistics partner in the region.

How does Salasa uphold exceptional customer experience and operational excellence as it scales? 

Operational excellence at Salasa is embedded in every process we design. Our systems are built to minimize errors, cut delivery times, and ensure clear communication at every stage, with tools like voice AI proactively confirming pickups and deliveries for seamless coordination. 

As we scale, we avoid the common drop in service quality by investing heavily in technology and monitoring, staying close to the market, and listening to our customers. By identifying gaps, addressing bottlenecks, and acting quickly on feedback, we maintain the reliability merchants depend on and the on-time delivery customers expect, every single time.

For his part, Co-founder and CEO Alyemni shared more about the company’s growth strategy and his thoughts about the future of the logistics and e-commerce landscape in Saudi Arabia and the wider region. 

You successfully raised a $30 million Series B round. What motivated investors to invest in Salasa? And how will this fresh capital support your expansion plans?

Investors were drawn to Salasa because we have proven the model at scale. Salasa is not a gamble; it is a winning bet. We have built one of the fastest fulfillment networks in the region, backed by a proprietary tech stack that is actively redefining how e-commerce logistics operates. We have shown consistent growth, high merchant retention, and an ability to expand without compromising service quality.

This new capital allows us to move faster on three fronts:

*Infrastructure – expanding our network to handle higher volumes and cover more geographies.

*Technology – accelerating the development of our tech stack, from smart courier routing to predictive inventory positioning and automated merchant workflows.

*Talent – bringing in specialized expertise to strengthen our capabilities in operations, technology, and market expansion.

The goal is simple: to scale without losing the precision and quality that define Salasa today.

What are the new markets or segments that Salasa targets as part of its growth strategy? 

We are pursuing growth in three main ways: 

First, by deepening our presence in Saudi Arabia, reaching merchants in every major city, and scaling infrastructure to handle growing order volumes.

Second, by expanding into select GCC markets where there is clear demand for tech-enabled fulfillment.

Third, by enabling cross-border trade (inbound and outbound), which allows local sellers to seamlessly reach customers in new international markets, while also enabling global brands to enter Saudi Arabia with faster, more cost-effective delivery.

Beyond geography, we are also broadening our service offering, monetizing our proprietary Order Management System (OMS), and introducing adjacent solutions like omni-channel inventory management, AI-powered product content optimization, and campaign recommendations. These expansions position Salasa to serve merchants end-to-end, whether their customers are across the city or across borders.

How do you see the logistics and e-commerce fulfillment landscape in Saudi Arabia and the broader GCC region? 

Logistics in the region is moving away from fragmented, courier-led models to integrated fulfillment. Strong economic growth and major infrastructure investments are accelerating that shift. With E-commerce trade surging, Saudi Arabia alone sees over 250 million shipments a year, and higher incomes and connectivity will push that number higher.

Merchants are also changing how they operate, focusing on building their brands and products, while leaving logistics to specialized, tech-driven partners like Salasa. This shift is raising the bar for speed, reliability, and visibility, turning logistics from a challenge into a competitive advantage.

In your opinion, what are the key trends and innovations that shape the Saudi logistics sector? And how can cloud-powered and data-driven technology transform this promising sector? 

There are three major trends shaping the sector right now. First is the rise of instant delivery. Same-day and even two-hour windows are becoming more common in urban centers. Second is the growth of cross-border e-commerce, which brings both opportunities and operational complexity. Third is the deeper integration of AI and automation into every logistics function.

Cloud-powered and data-driven systems are the enablers here. They let us unify operations that were once fragmented, including warehousing, courier management, and inventory positioning, and run them as a single, intelligent network. When you layer in AI, you can anticipate demand, route orders in the most cost- and time-efficient way, and even optimize how merchants present their products online. This is how logistics moves from being a cost center to being a driver of growth.

Kholoud Hussein 

Saudi Arabia’s startup magnetism is no longer a hypothesis; it’s measurable. In the first half of 2025, Saudi Arabia outperformed the wider MENA venture market, with startup funding up 116% year-on-year and deal activity matching that of the UAE for the first time, according to MAGNiTT’s H1 report. The financing tide is mirrored by regulatory throughput: the Ministry of Investment (MISA) issued 14,321 investment licenses in 2024—up nearly 68% year-on-year—signaling that more companies (including early-stage entrants) are choosing to plant a flag in the Kingdom. 

Perhaps the clearest indicator for founders themselves is the “Entrepreneur License”—a dedicated path for foreign startups. By mid-2025, 550 foreign startups had been licensed under this regime, a 118% jump versus mid-2024, per Monsha’at. That momentum sits alongside other founder-friendly gateways—from 100% foreign ownership in many sectors to the introduction of a Startup Visa category in 2025—lowering the friction of entry and signaling policy continuity. 

Capital as a calling card

Capital formation is a necessary condition for cross-border startup expansion, and Saudi has been deliberate in putting capital on the table. At LEAP 2025, authorities announced $14.9 billion in AI and digital deals and commitments, an umbrella under which global and regional startups can commercialize at speed. One emblematic example: U.S. AI-chip startup Groq secured a $1.5 billion commitment tied to expanding AI inference infrastructure in the Kingdom and scaling delivery from a new Dammam data center. “It’s an honor for Groq to be supporting the Kingdom’s 2030 vision,” CEO Jonathan Ross said of the partnership. 

Saudi Arabia’s broader risk capital picture is improving as well. Across MENA in H1 2025, startups raised about $2.1 billion through 334 deals—a 134% year-on-year rise—with Saudi Arabia leading the region’s funding totals, even when excluding debt. On the private-equity side, the Kingdom captured 45% of MENA’s H1 2025 PE transactions, pointing to late-stage depth that reduces exit anxiety for international founders considering relocation or market entry. 

Policy that travels well

For foreign founders, regulatory clarity matters as much as capital. Saudi’s investment regime has shifted from “if” to “how”—codifying 100% foreign ownership in many activities and streamlining licensing under MISA’s ISIC-based framework. The results show up in the pipeline: MISA’s quarterly updates highlight a brisk cadence of new permits; in Q4 2024 alone, 4,615 licenses were issued, nearly 60% more than the same quarter a year earlier. 

Two adjacent policy levers also matter for founders: premium residency and regional headquarters (RHQ). Applications for Saudi’s premium residency surpassed 40,000 between early 2024 and mid-2025, broadening the talent funnel for executives and technical leaders that foreign startups need to recruit locally. Meanwhile, the RHQ program continues to pull decision-making centers into Riyadh, with 34 additional RHQ licenses granted in Q2 2025—building a critical mass of buyers, partners, and procurement teams inside the Kingdom. 

Wide open sector doors

• AI and data infrastructure. The Groq transaction is not an outlier; it’s a signal. The Kingdom has positioned itself as an AI build-site—from hyperscale data centers to model development capacity—backed by new national champions like HUMAIN and a dense pipeline of digital infrastructure. For international AI startups, the implication is straightforward: Saudi is willing to co-invest in critical plumbing if the commercial payoff is local.

• Industrial and advanced manufacturing. Beyond software, Saudi Arabia keeps issuing industrial permits at a pace—1,346 in 2024 alone, with SR50 billion ($13.3 billion) in fresh investment—creating a market for foreign startups that sell enabling tech (vision systems, robotics, supply-chain AI, maintenance analytics) to local manufacturers. 

• Proptech and urban services. A wave of foreign proptechs is eyeing Saudi Arabia’s fast-digitizing real-estate market. UAE-born Huspy, for instance, has publicly prioritized Saudi in its expansion roadmap, citing regulatory modernization and demand for transaction-speed tools for brokers and agents. “Saudi Arabia is undergoing a major transformation in real estate… Our goal is to partner with local professionals and give them tools that help them close deals faster,” CEO Jad Antoun said, noting the company’s near-term entry plans into Riyadh. 
• Tourism and consumer platforms. With regions like Aseer receiving focused development to diversify beyond the megacity narrative, B2C and B2B2C startups in traveltech, creator-led commerce, and experience marketplaces can find “white space” beyond Tier-1 cities—valuable for foreign firms seeking first-mover brand equity. 

What foreign founders say

The confidence narrative is not just macro headlines; it’s founder-level calculus. Groq’s Ross frames Saudi as a co-builder in the AI stack, not merely a customer, emphasizing alignment with Vision 2030’s production goals rather than transactional procurement. Huspy’s Antoun points to a practical wedge: digitizing an industry that still has offline bottlenecks, using a partnership model with local professionals to localize workflows rather than impose a foreign UX. Venture investors echo this pull; as one regional funder told AGBI, Saudi Arabia is “one of the few countries in the world where you can actually see the growth,” with VC deals on track to cross $1 billion and potentially scale tenfold by 2030.

Friction points that matter

No market is turnkey, and international founders should assess Saudi Arabia’s specifics with the same rigor they would apply to the U.S., India, or the EU.

• Regulatory sequencing: While entry has eased, startups still need the right license stack (commercial registration, sectoral approvals, and—where applicable—sandbox permissions) and must align their activity with MISA’s ISIC classifications. This is navigable, but it requires a sequencing plan and local counsel. 
• Localization beyond language: Winning tends to hinge on product-market fit, not translation alone. Antoun’s comments on local agent workflows in Saudi real estate illustrate the point: foreign startups that embed local process logic (payment rails, KYC norms, fulfillment SLAs) grow faster and face less churn. 
• Talent immigration and leadership depth: New visa channels—including the Startup Visa and premium residency—reduce friction, but founders should still time senior hires around licensing milestones and RHQ decisions to avoid costly lag between strategy and presence. 
• Enterprise sales cycles: In sectors where government or large enterprises are anchor customers (such as health, education, utilities, and petrochemicals), procurement is structured, security review-heavy, and relationship-intensive. The upside is that once inside, retention can be exceptional; the downside is that proof-of-value must be unambiguous. LEAP’s deal flow shows that the door is open, but readiness is on the founder. 

The geography of opportunity

Saudi’s market is not one city: it is a set of distinct demand nodes—Riyadh for headquarters and B2B sales; Eastern Province for energy, data centers, and industrial tech; Jeddah for logistics and commerce; and fast-developing regions like Aseer for tourism, environmental tech, and outdoor economy platforms. The Dammam data center build tied to Groq underscores why East Coast proximity can be strategic for AI infrastructure and industrial IoT startups. 

RHQ policy compounds this geography. As more multinationals and unicorns set up regional headquarters in Riyadh, foreign startups get closer to procurement teams that control multi-country budgets—meaning a Saudi entry can be a GCC springboard, not a single-market detour. 

Signals in the numbers

The velocity of new company formation and licensing is widening the aperture for cross-border startups:

• Licenses: 14,321 total investment licenses in 2024; +67.7% YoY. 
• Foreign startup licenses: 550 by mid-2025; +118% YoY. 
• Industrial base: 1,346 industrial licenses in 2024; SR50B new investment; >44,000 expected new jobs. 
• Venture flow: Saudi H1 2025 startup funding +116% YoY; deal count at record H1 levels. 
• AI anchor deals: $14.9B in AI/digital commitments announced at LEAP 2025; Groq’s $1.5B Saudi commitment. 

These are not vanity metrics; they translate into contract velocity, partner density, and hiring pipelines that a seed-to-Series-B founder can actually use.

How foreign startups are entering

1) Direct incorporation with Entrepreneur License: Best for startups with product clarity and near-term revenue paths. It allows 100% ownership and straightforward compliance if your activity fits the ISIC mapping. 

2) JV or distribution through sector leaders: In sales-heavy verticals (fintech infrastructure, insuretech, defense-grade cyber, industrial AI), foreign startups often partner with a local incumbent to pass procurement gates faster while building their own entity for future scale.

3) RHQ plus operating subsidiary: For scaleups serving GCC-wide customers, anchoring leadership in Riyadh while operating tech teams in multiple cities can shorten enterprise sales cycles and centralize government engagement. The rising number of RHQ licenses signals this pattern is gaining steam.

The founder’s checklist

• Proof of local value: Be explicit about what you enable: faster approvals for banks, lower downtime in factories, shorter closing cycles for agents. Saudi customers buy outcomes, not roadmaps. (Huspy’s focus on broker productivity is illustrative.) 
• Compliance by design: Build KSA-specific workflows into the product (Arabic interfaces, e-invoicing, ZATCA rules, data residency where needed) rather than layering them as post-sale custom work.
• Talent stack: Budget early for a bilingual customer success lead and a regulatory ops specialist; they will pay for themselves by compressing the time from POC to MSA. Startup and premium residency visas expand this hiring universe. 
• Capital partnerships: Treat local funds and corporate venture arms as design partners, not just check-writers. The Groq-Aramco Digital alignment shows how strategic capital can unlock infrastructure and demand simultaneously.  

What success looks like

A sustainable Saudi play for a foreign startup usually has four features: 

(1) local problem definition (not copy-pasted from another geography

(2) embedded compliance and language support

(3) a domestic revenue base that can survive currency or geopolitical shocks elsewhere

(4) partnerships that make a Saudi presence a GCC (and eventually global) revenue engine. 

The policy regime makes this viable; the capital base makes it scalable; the customer appetite makes it repeatable.

The numbers suggest the window is open. MAGNiTT’s H1 2025 data shows Saudi’s venture engine running hotter than regional peers. MISA’s licensing pipeline continues to swell, and specialized channels—entrepreneur licensing, new visa categories, RHQ—shrink the “distance” between a foreign founder and their first Saudi purchase order. On the ground, founders are already speaking a language of execution: Groq’s Jonathan Ross emphasizes co-building, while Huspy’s Jad Antoun talks about fixing specific frictions with local partners. 

Finally, Saudi Arabia has moved from being a promising market to a working market for international startups. For founders who can anchor locally, localize deeply, and partner intelligently, the Kingdom is not just another expansion pin on the map—it’s a growth core.