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. 

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.

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.

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.

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.

Ghada Ismail

In startups, the original idea is rarely the winning one. Markets shift, customer needs evolve, and sometimes the product simply doesn’t click. The difference between failure and breakthrough often comes down to one thing: the ability to pivot.

A pivot isn’t about giving up. It’s about adjusting course to find what truly works. For founders, especially in fast-growing ecosystems like Saudi Arabia, knowing when and how to pivot can turn setbacks into opportunities and keep a startup alive long enough to thrive.

What Is a Pivot?

A pivot is not about tearing everything down and starting from scratch. It’s about keeping the vision intact while changing the route to get there. Think of it as a course correction rather than a restart.

Instagram is a classic example. Before becoming the photo-sharing giant we know today, it was a clunky app called Burbn that let users check into locations. The team noticed that people loved the photo feature more than anything else and decided to pivot around it. The rest is history.

When Should Startups Pivot?

The decision to pivot isn’t easy. Founders often wrestle with sunk costs and pride. But the market doesn’t lie. Common signals that it might be time include:

• No traction despite strong execution: The product works, but users aren’t sticking around.
• Customer behavior doesn’t match expectations: Feedback points to a different problem or need than originally targeted.
• High acquisition costs with low retention: You’re paying heavily to bring people in, but they don’t stay.
• Competitors gaining ground: A rival is growing faster with a different approach, forcing you to reconsider your model.

Listening carefully to customers and tracking metrics honestly will often reveal whether you’re on the wrong track.

Different Types of Pivots

Not all pivots look the same. Some involve small tweaks, others a major shift. A few common ones are:

• Product pivot: Focusing on one feature that resonates and dropping the rest.
• Market pivot: Targeting a new customer segment or geography.
• Revenue model pivot: Changing how you monetize—say, from subscriptions to transaction fees.
• Channel pivot: Finding new ways to reach customers, such as moving from offline distribution to digital-first.

Each requires discipline and clear communication with stakeholders, especially investors and employees.

How to Pivot Without Losing Focus

A pivot can feel like a setback if not framed well. But handled correctly, it can re-energize a startup. A few principles help:

• Protect the vision: Stay clear on the “why,” even if the “how” changes.
• Test before leaping: Run small experiments to validate the new direction before committing fully.
• Be transparent: Keep investors, team members, and early customers informed. Trust is easier to maintain when you bring people along for the ride.
• Maintain morale: Remind your team that adaptability is strength, not weakness.

Wrapping Things Up…

Startups don’t succeed by sticking rigidly to their first idea. They succeed by learning, adapting, and sometimes changing direction altogether. Pivoting isn’t a mark of failure—it’s often the very thing that unlocks growth.

For founders, the key is to treat pivoting not as a last resort but as part of the entrepreneurial journey. Because in the end, the startup that survives is the 

Ghada Ismail

Every founder dreams big. Maybe you want to build the next unicorn, shake up an entire industry, or just prove the doubters wrong. We spend endless hours chasing product-market fit, pitching investors, and running growth experiments. But here’s the uncomfortable truth: none of it matters if your startup can’t survive its first real storm.

And storms will come. That’s where crisis management—an unglamorous but vital skill—quietly decides whether a startup folds or fights through.

The Crisis You Don’t See Coming

Startups rarely die from the challenges we expect. It’s the curveballs that sting. A regulator rolls out new rules that wreck your business model. An investor pulls out right before payroll. Your product crashes just as your first big wave of users arrives. Veteran founders know this. They don’t waste energy pretending crises won’t happen. Instead, they prepare, because preparation beats panic every time.

Why Founders Don’t Talk About It

Let’s be honest: talking about crisis planning doesn’t sound positive. It feels like admitting weakness. Founders prefer to pitch bold visions, not “what if everything breaks?” scenarios. But the thing is, investors and teams don’t expect perfection; they expect adaptability. A founder who says, “Here’s what could go wrong, and here’s how we’ll handle it,” isn’t sowing doubt. They’re building trust.

Building Your Startup’s “Crisis Muscle”

You don’t have to wait for chaos to test you, but you can train for it in the following ways:

1. Scenario mapping. Write down your top “nightmare” risks. For each, note warning signs, who acts first, and what immediate moves you’d make. That’s your crisis textbook.
2. Cash contingencies. Know your minimum runway. Keep an emergency cash reserve that you can fall back on when things go wrong, like a sudden drop in sales, a lawsuit, or a supply chain problem. This safety net gives your startup breathing room to survive a crisis and plan the next move. Founders who survive downturns usually made financial discipline a habit long before.
3. Communication protocols. Don’t wing it when bad news hits. Decide now how you’ll brief your team, investors, and customers. One clear, honest message beats a dozen scattered ones.
4. Be Ready to Pivot. A crisis can reveal weaknesses in your business model. Use it as a chance to adapt, whether that means adjusting your pricing, changing suppliers, or targeting a new customer group.
5. Prepare your employees for the worst. Run “what if” rehearsals with your team and prepare them for different scenarios. What if the platform goes down for 48 hours? What if your biggest client walks? This protocol can save your company later.

Crises Can Spark Breakthroughs

Crises are tough, but they can also open new doors. In Saudi Arabia, startups like HungerStation and Jahez used the disruption of COVID-19 to adapt fast and secure their lead in the market.

The bottom line: a crisis might show you what’s broken, but it can also point you to opportunities you wouldn’t have noticed otherwise.

To Wrap Things Up…

Vision gets people excited to join your journey. Resilience keeps them there when the dream feels shaky. You don’t need to obsess over every disaster scenario, but you do need a framework for how you’ll respond when—not if—the storm comes.

Think of crisis management as founder insurance. Not the glamorous part of the job, but the part that keeps your dream alive. That’s how you build a startup that doesn’t just grow fast, but rather lasts.

Ghada Ismail

When you’re building a startup, it’s easy to get caught up in the exciting stuff: user growth, building your product, closing deals. But behind the scenes, there’s one number quietly counting down your time: burn rate.

Burn rate is simply how fast you’re spending money every month. It tells you how long your cash will last before you need to bring in more, whether from investors or revenue.

Think of your startup like a plane on a runway. The longer the runway (your cash), the more time you have to take off (hit traction or raise your next round). But the faster you burn through cash, the shorter your runway gets. And if you don’t take off in time, you crash.

What Is Burn Rate, Really?

In simple terms, burn rate shows how much money your startup spends every month just to keep running.

There are two versions you should know:

• Gross Burn Rate: This is your total monthly spending on salaries, rent, tools, marketing, etc.
• Net Burn Rate: This is what really matters. It’s how much you’re losing each month after subtracting any revenue.

Example: If your startup spends SAR 400,000 per month and earns SAR 100,000 in revenue, your net burn rate is SAR 300,000. That’s the amount disappearing from your bank account every month.

Why Burn Rate Matters More Than You Think

Your burn rate isn’t just an accounting number; it’s your survival clock.

Let’s say you raised SAR 3 million. If your net burn rate is SAR 300,000 per month, you have 10 months of runway. That’s 10 months to hit a major milestone, raise another round, or start turning a profit.

If you don’t? You run out of cash. And when the money’s gone, your options shrink fast.

That’s why investors ask about your burn rate early in any conversation. It tells them how you manage money and how soon you’ll need more.

How to Calculate Your Runway

The formula is simple:
Runway = Cash in the Bank ÷ Net Burn Rate

Here’s a quick example:

• Cash: SAR 1,200,000
• Net burn: SAR 150,000/month
• Runway: 8 months

Knowing this helps you plan ahead, whether that means starting fundraising early or making some cost cuts to buy more time.

How to Tell If Your Burn Rate Is Too High

Here are a few warning signs:

• You’re hiring a big team before proving product-market fit
• Your marketing spend is high, but customer retention is low
• You’re scaling too soon, before demand is steady
• You’re counting on future funding that hasn’t landed yet

If any of these sound familiar, it might be time to recheck your numbers and adjust your spending.

How to Keep Burn Rate Under Control

Managing your burn rate doesn’t mean cutting everything to the bone. It means spending wisely and keeping room to adapt. Here’s how:

1. Track it regularly
   Make burn rate part of your monthly reviews. Don’t wait until the bank balance gets drastically low.
2. Spend where it matters most
   Focus on things that push the business forward, like improving the product or acquiring users in smart, cost-effective ways.
3. Plan for delays
   Fundraising almost always takes longer than expected. If you think you have 9 months of runway, act like it’s only 6.
4. Adjust as things change
   As your revenue grows or expenses shift, update your burn rate and runway.
5. Avoid fixed costs early on
   Use freelancers, co-working spaces, and flexible tools until you really need to commit.

What This Means for Startups in Saudi Arabia

As Saudi Arabia’s startup scene grows, so does investor attention to burn rate. With more funding opportunities—from VCs to government programs like Monsha’at and Saudi Venture Capital—founders have access to capital, but also more pressure to use it wisely.

Today, local investors expect founders to show not just ambition, but capital discipline. Managing your burn rate smartly sends the message: “We’re building something valuable and we’re doing it responsibly.”

Wrapping things up…

Burn rate might sound like a dry finance term, but it’s one of the most important numbers for any founder to understand. It keeps you grounded. It helps you plan. And most importantly, it helps you stay in control of your startup’s future.

Because no matter how great your idea is or how big your market could be, if you run out of money, you run out of time.

Kholoud Hussein 

Launched in April 2016 under Crown Prince Mohammed bin Salman and King Salman, Vision 2030 has reshaped Saudi Arabia’s economy, society, and international positioning. As of early 2025, the Kingdom has already surpassed many of its key targets:

• 93% of its nearly 400 third-level KPIs have been fully or partially met. 
• Over 85% of its 1,500+ strategic initiatives have been completed or are on track.

The non-oil economy now contributes around 45–50% of GDP, tourism visitor numbers have already exceeded 100 million annually, and female labour-force participation has reached ~33%—beating the 30% goal.

However, with 2030 deadlines looming, attention is turning to the next chapter: What lies beyond Vision 2030?

1. Why Saudi Arabia Must Look Beyond 2030

A. Surpassing the Finish Line, Not Crossing It

With high-level projects nearing completion (NEOM, the Red Sea resorts, Diriyah Gate) and many social reforms embedded in the system, Saudi Arabia now faces the question: How to sustain and build on this progress?

A recent Stratfor analysis addresses this: “As the finish line for Vision 2030 approaches... Saudi Arabia is paring back its ambitious megacity NEOM… focusing on successful reforms that have strengthened its diversification away from oil.”

This isn't abandonment, but rather a strategic reorientation: embed gains and recalibrate the most significant initiatives to ensure their viability.

B. Global Shocks and Domestic Realities

Geopolitical tensions and fluctuating oil prices still shape the economic environment. Although non-oil growth has been robust (with real GDP growth projections of 4–4.6% in 2024–25), continued resilience requires adaptive economic and social frameworks beyond 2030.

2. Emerging Pillars of the Post-2030 Strategy

A. Institutionalizing Sustainability & Governance

Saudi authorities have prioritized sustainability and transparency—not merely through grand visions, but via process. The Saudi Green Initiative (massive afforestation, emissions cuts) is poised to continue as an ongoing environmental policy beyond 2030. Likewise, improvements in e-governance, fiscal discipline, and public-sector accountability (pillars of “Ambitious Nation”) are now being entrenched in long-term reforms.

B. Deepening Economic Diversification

• Manufacturing & Industry: Efforts to localize oil sector value-added (from 40% to 75%) signal broader industrial policy that must continue beyond 2030.
• Finance & Capital Markets: The Financial Sector Development Program, launched under Vision 2030, aims to reinforce Saudi Arabia as a global financial hub—a task set to continue in the next decade.
• Renewable Energy & Green Tech: From Sakaka solar and Dumat al Jandal wind farms, the next step involves scaling hydrogen, green ammonia, carbon capture, and R&D tied to the Supreme Committee on RDI.

C. Human Capital & Innovation

Efforts to elevate Saudis in STEM, entrepreneurship, and global competitiveness reflect a shift from infrastructure-focused investment to talent-driven transformation. The Kingdom aims to channel 2.5% of GDP into research by 2040. Saudi universities and incubators (e.g., KAUST, SDAIA) are already positioned as keystones for this ambition.

3. Voices from the Kingdom

Busra Karacadag, OBG’s Country Director, framed the broader narrative: “This report captures Saudi Arabia’s bold strides in diversification, sustainability and global collaboration. Vision 2030 is a testament to the Kingdom’s resilience and capacity to lead on the international stage.” 

While Oliver Cornock, OBG’s Editor-in-Chief, conveyed: “Saudi Arabia’s focus on innovation and long‑term economic planning is helping to create a dynamic, future‑ready economy.” 

Both underscore that the real test will be maintaining this momentum after the headline-making projects conclude.

Similarly, Ahmed Al-Khateeb, Minister of Tourism, and Fahad bin Abdurrahman Al-Jalajel, Minister of Health, emphasize infrastructure-led sustainability. Their stewardship is shaping a post-2030 environment grounded in healthcare resiliency, affordable housing, and tourism capacity, not just new investments.

4. Post-2030 Scenarios: What Could Come Next?

A. Transitioning to Vision 2040 or Vision 2050?

Given the success and nearing sunset of Vision 2030, it’s likely the Kingdom will launch a successor strategic framework—tentatively called Vision 2040 or Vision 2050—aimed at embedding earlier gains and tackling residual structural vulnerabilities.

Key areas:

1. Industrial Upgradation: Shift from manufacturing assembly to high-value, tech‑enabled production; e.g., smart vehicles, biotech, pharmaceuticals.
2. Energy Transition: From solar/wind to hydrogen-exporting, carbon-negative energy ecosystems.
3. Financial Ecosystem: Expansion through FinTech innovation, Islamic finance, and integration with global capital flows.
4. Human Sciences and Culture: Zoom in on R&D capacity, cultural exports, tourism beyond mega-sites.

B. Governance as Strategy

Saudi Arabia’s leap from wholesale reform to institutional maturity implies post‑2030 governance models with decentralized accountability, data-driven policymaking, community engagement, and digital transparency—all sustained through refreshed bureaucratic capabilities.

C. Global Engagement and Soft Power

Already during its G20 presidency and sporting diplomacy, Saudi Arabia has used culture and commerce to amplify its global voice. Post-2030 plans will likely expand on educational exchanges, cultural IP exports, Saudi-backed global universities, and multilateral peace/sustainability agendas.

5. Risks and Challenges Ahead

Despite its achievements, the Kingdom faces real challenges:

• Megaproject Sustainability: Scaling back NEOM or similar projects could disappoint investors, thus requiring recalibrated expectations and management frameworks.
• Oil Dependency Residuals: While non-oil GDP has grown, oil exports still finance public services and deficits. External shocks remain a key vulnerability.
• Youth Expectations and Social Balance: A young, digitally-native population demands further widening liberties, robust social contracts, and inclusive civic platforms.

The next strategic blueprint must squarely address these through economic resilience, a balanced social compact, and long-tail institutional endurance.

6. Blueprint for a Post-2030 Saudi Arabia

Here is a thematic breakdown of what Vision 2040 (tentative) might entail:

From Vision to Legacy

Vision 2030 has already reshaped Saudi Arabia’s economic structure, societal values, global posture, and timeline. As 2030 approaches, the Kingdom's challenge shifts from execution to sustainability, adaptation, and continuous renewal. A successor strategy—Vision 2040 or Vision 2050—will likely carry forward this spirit, reinforcing resilience, institutional maturity, and global soft power.

The next Saudi decade must reconcile grand transformation with durable governance. Will its institutions mature enough to absorb this change? Will its citizens sustain this reform?

In the following years, Riyadh must answer these fundamental questions. The success of Vision 2030 opens this critical chapter, and the real test now lies after the finish line.

Ghada Ismail

In this final chapter of our series on why businesses don’t survive their first year, we tackle two of the most insidious threats to early-stage startups: legal pitfalls and founder burnout. These aren’t just external factors that can derail your business; they’re intertwined challenges that can quickly spiral out of control. As a founder, the pressure can feel unrelenting. You're juggling everything from contracts to customer acquisition, but when things go wrong on the legal front, the weight can become overwhelming. And without the right support, founder burnout can lead to decisions that hurt the very business you're working so hard to build. In this episode, we’ll explore how these two factors interact and, ultimately, how you can avoid them to ensure your startup doesn’t become another statistic.

Legal Pitfalls: The Invisible Landmines

When you're building a startup, it's easy to get caught up in the excitement of growth, customer acquisition, and fundraising. However, failing to set up proper legal structures can leave your business vulnerable to serious risks. A lack of legal protection can lead to costly lawsuits, compliance issues, or intellectual property disputes that can drain your resources and time.

Common Legal Pitfalls to Avoid:

1. Unclear Business Structure
   Whether you're running a sole proprietorship, partnership, or corporation, choosing the right legal structure for your startup is crucial. The wrong choice can result in personal liability, higher taxes, or complications in raising funding.
2. Intellectual Property Oversights
   Failing to protect your ideas, products, or branding can expose your business to infringement lawsuits or loss of competitive advantage. Registering trademarks and patents early is key.
3. Weak Contracts
   Not having solid contracts in place with suppliers, partners, and employees can lead to misunderstandings and legal disputes. Whether it's unclear terms or missing clauses, weak contracts are a silent killer.
4. Regulatory Compliance
   Startups often overlook industry-specific regulations or fail to stay compliant with changing laws. Failing to adhere to tax laws, labor laws, or environmental regulations can lead to penalties, fines, and damage to your reputation.

The Impact of Legal Pitfalls on Founders: When legal issues arise, founders are forced to deal with complex challenges that divert their focus from scaling their business. This leads to stress, confusion, and ultimately burnout.

Founder Burnout: The Invisible Cost of Stress

Founder burnout is one of the most dangerous threats to a startup’s survival, yet it often goes unnoticed until it’s too late. The emotional and mental strain of leading a startup is immense, and when combined with the legal challenges mentioned above, it can overwhelm even the most resilient entrepreneurs.

How Burnout Creeps In:

1. The Weight of Responsibility
   As the face of your startup, you are responsible for its success or failure. The pressure to be constantly available, make critical decisions, and handle every challenge personally can be exhausting.
2. Emotional Fatigue
   Constantly battling for survival, handling stress, and facing uncertainty can lead to emotional exhaustion. Over time, this emotional toll can make it hard to stay motivated, focused, or inspired.
3. Physical Toll
   The long hours, sleepless nights, and constant stress can lead to physical symptoms like fatigue, headaches, and even more serious health issues. This impacts not only your personal well-being but your ability to lead the company effectively.

The Interconnection: Legal Stress + Founder Burnout
Legal challenges are a major stressor that can lead directly to burnout. When founders are forced to deal with lawsuits, compliance issues, or poorly structured business models, the emotional and mental strain can reach a breaking point. Over time, this makes it harder to focus on the bigger picture and move the business forward.

How Legal and Emotional Struggles Combine to Sink Startups

While legal mistakes and burnout may seem like separate issues, they often go hand in hand. A founder who is burned out may fail to recognize the importance of proper legal protections, or they may delay addressing legal issues, making them worse over time. Conversely, ongoing legal battles can add to the stress and create a toxic environment for the founders.

The Vicious Cycle:

• Legal troubles create stress, leading to emotional exhaustion.
• Emotional exhaustion impairs decision-making, resulting in further legal and business mistakes.
• Over time, this leads to a lack of motivation and focus, which affects the company’s performance, making survival less likely.

Avoiding Legal Pitfalls and Founder Burnout

To prevent these issues from sinking your startup, here are some practical steps you can take:

1. Set Up Proper Legal Frameworks Early
   • Choose the right business structure, register your IP, and draft strong contracts with legal counsel.
   • Stay on top of regulations that apply to your industry to avoid fines and penalties.
2. Delegate and Build a Strong Team
   • Don’t try to do everything yourself. Surround yourself with a team you trust to handle specific aspects of the business, including legal matters.
   • Bring in specialists who can help with legal tasks, financial management, and marketing to ease the burden on yourself.
3. Focus on Mental Health
   • Schedule regular breaks and make time for self-care. Burnout happens when founders feel like they’re constantly on the go without any relief.
   • Develop a support system—mentors, advisors, or a network of peers who can help guide you through tough times.
4. Recognize When to Seek Help
   • If legal challenges or burnout are becoming overwhelming, seek professional help. Lawyers, accountants, and mental health professionals can help you navigate these issues before they spiral out of control.

Conclusion: The Road to Startup Success—A Final Word for Entrepreneurs

As we wrap up this series on the top reasons why startups fail in their first year, one key theme emerges: building a successful startup is as much about resilience and adaptability as it is about innovation and strategy. Every founder’s journey is filled with challenges, and it’s not always the mistakes you make that determine your success but how you respond to them.

The First Year is Crucial
In the early stages of your business, you’re navigating uncharted waters. You may not have all the answers, and you may face obstacles that seem insurmountable. But as we’ve discussed, the most common pitfalls—whether it’s running out of cash, failing to adapt to market demands, poor leadership, or legal missteps—are not insurmountable if you tackle them head-on with the right mindset. The key is preparation and awareness. Take the time to build a strong foundation—financially, legally, and operationally—so that when the storms hit, your ship can stay afloat.

Founder Resilience is Key
It’s easy to underestimate the toll entrepreneurship can take on you personally. Founder burnout is real, and it's a major reason why startups falter. But it’s important to remember that you are the backbone of your company. Your well-being—mentally, physically, and emotionally—should never be neglected. Don’t be afraid to ask for help, whether it’s from a mentor, a partner, or even a therapist. Building a network of support is not just a luxury, it’s essential for long-term sustainability.

Build for the Long-Term
Every decision you make in your first year impacts the longevity of your business. Think beyond immediate goals and focus on building systems, processes, and relationships that will last. The choices you make about your team, your legal framework, and your product offerings should align with your vision for the future. This means sometimes sacrificing short-term gains for long-term growth. Don’t rush the process; building a business takes time, and success doesn’t happen overnight.

Learn from Every Failure
No one gets it right all the time, and failure is an inevitable part of entrepreneurship. But failure doesn’t mean the end of the road; it’s simply a lesson in disguise. Be willing to learn from your mistakes, adapt, and pivot when necessary. The most successful entrepreneurs are those who understand that failure isn’t the opposite of success; it’s a part of it.

Focus on the Bigger Picture
Finally, always keep your eye on the bigger picture. Start with purpose. Know why you’re doing this and who you’re doing it for. Your mission should be the driving force behind every decision you make. Whether it’s delivering a product that changes lives or building a company that reflects your values, remember that the road to success isn’t just about profits; it’s about making an impact.

As you step forward in your entrepreneurial journey, remember this: The first year is just the beginning. The challenges you face will shape you into a stronger leader, a more resilient founder, and a wiser entrepreneur. So stay focused, be patient, and never stop learning.

Your journey has just begun, and the best is yet to come.

Ghada Ismail

A groundbreaking idea, strong financial backing, and an eager market may seem like the perfect formula for startup success. Yet beneath these promising elements lies a crucial factor that determines whether a startup thrives or fails: the people driving it.

Leadership and team dynamics are the unseen forces that shape every decision, process, and relationship within a company. Founders who build cohesive teams and embrace effective leadership practices create environments where innovation flourishes and employees remain motivated. Conversely, startups plagued by leadership conflicts, misaligned visions, or toxic work cultures risk collapse even when their products or services show great potential.

How Leadership and Team Issues Emerge

Problems often arise when founders struggle to define roles, align visions, or manage conflicts. Leadership inexperience can lead to poor decision-making, unclear communication, or a failure to set realistic goals. Similarly, weak team cohesion may result in internal friction, disengagement, or frequent turnover.

Research by CB Insights shows that 23% of startups fail due to team issues, including leadership conflicts and skill gaps. A startup with two co-founders, for example, may face tensions if one envisions aggressive growth while the other prefers a more conservative pace. Without alignment, this disconnect can ripple through the entire company, affecting strategic direction and morale.

A study by Harvard Business Review found that startups with clearly defined leadership roles and well-structured teams are 2.3 times more likely to scale successfully. Meanwhile, fragmented teams often suffer from duplicated efforts, miscommunication, and wasted resources, ultimately slowing growth.

Key Strategies to Build a Stronger Leadership and Team Foundation

1. Establish Clear Roles and Responsibilities: Define leadership roles early and ensure each leader understands their scope. This reduces overlap and confusion. Founders should align on decision-making authority and areas of accountability to minimize power struggles.
2. Prioritize Communication: Regular team check-ins, open dialogue, and transparent decision-making help prevent misunderstandings and keep teams aligned. Successful startups often implement structured communication routines such as weekly stand-ups, performance reviews, and team-wide updates to ensure alignment.
3. Invest in Leadership Development: Even experienced founders can benefit from mentorship, coaching, or management training to strengthen their leadership skills. Programs like Endeavor Saudi Arabia provide guidance to founders, helping them refine their leadership approach.
4. Build a Collaborative Culture: Encourage teamwork through shared goals, team-building activities, and a supportive environment where ideas are valued. Studies by the Institute for Corporate Productivity (i4cp) have shown that companies that actively promote collaboration are five times more likely to be high-performing.
5. Address Conflict Early: Tensions are inevitable, but unresolved disputes can fester. Creating a structured process for resolving conflicts ensures issues are managed before they escalate. Conflict resolution frameworks like the "Radical Candor" approach encourage open yet empathetic conversations to resolve friction productively.

The Radical Candor is a communication framework developed by Kim Scott, designed to help leaders give feedback that is both direct and caring. The concept encourages managers to challenge their team members while simultaneously showing they care about them personally. The framework is built on two key dimensions:

• Care Personally: Building strong relationships by genuinely caring about your colleagues as individuals.
• Challenge Directly: Offering clear, honest, and sometimes tough feedback that helps people improve.

The Power of Strong Leadership and Teamwork

Startups that cultivate clear leadership structures and foster a united team are far better equipped to handle the pressures of early-stage growth. Research by McKinsey & Company shows that companies with effective leadership teams are 1.9 times more likely to achieve above-average financial performance, emphasizing the value of well-managed teams.

In the unpredictable world of entrepreneurship, strong leadership, and cohesive teams are not just assets, they're essential for survival. Up next, we'll explore how ignoring customer feedback can silently sabotage even the most promising startups. Stay Tuned!

Ghada Ismail

Getting your pricing right is one of the toughest calls a founder has to make and it can make or break your business. Set the price too high, and you risk pushing customers away. Go too low, and you may struggle to cover costs or risk being seen as cheap. Finding that sweet spot is crucial, yet many startups stumble here.

The Danger of Overpricing

Overpricing can easily turn potential customers away. If people feel your product isn’t worth the price, they’ll look elsewhere. This is especially risky for startups trying to build a customer base. Higher prices can also raise expectations, and if your product or service doesn’t exceed those expectations, it can hurt your brand.

One common mistake is pricing based solely on costs without considering the customer's perception of value. Customers don’t just evaluate the price; they weigh it against what they believe they’re getting in return. Overpricing without adding value can leave your business looking out of touch. 

The Pitfalls of Underpricing

On the other side, pricing too low can backfire. While it might seem like a great way to win customers early on, underpricing can leave you with little margins or even losses. Worse still, customers might assume your product isn’t up to par. And once you've set those low prices, bumping them up later without upsetting loyal customers can be tricky.

Underpricing can also create a perception problem. Customers may wonder, "Why is this so cheap?" and assume it lacks quality or staying power. For instance, a bakery pricing its cakes below market rates may attract bargain hunters but struggle to establish itself as a premium dessert destination.

Finding the Sweet Spot

The key to good pricing is understanding your costs, knowing your market, and figuring out what customers are willing to pay. Many successful startups use a value-based pricing model, which ties your price to the perceived benefits your product offers. This strategy can help position your offering as worth the investment without scaring off price-conscious buyers.

Market research is crucial here. Founders should analyze competitors, survey potential customers, and study buying behaviors to gauge what their audience is willing to pay. Testing different price points or offering tiered options can also provide insights into what drives sales without scaring off leads. This means creating multiple pricing plans or packages that cater to different customer needs and budgets. For example, a SaaS startup might offer:

Basic Plan: A lower-cost option with essential features for entry-level users.

Standard Plan: A mid-tier package with additional features for growing businesses.

Premium Plan: A higher-priced option with advanced features, dedicated support, or exclusive perks.

This strategy allows customers to choose what best fits their needs, while giving your business opportunities to upsell as users grow or require more value. Tiered pricing is common in tech, subscription services, and even physical products with 'starter,' 'pro,' or 'deluxe' options.

Testing and Adapting

Pricing isn’t something you set and forget. Early-stage businesses should experiment with different pricing models, keep an eye on customer reactions, and adjust accordingly. Special offers, discounts, or premium tiers can help you figure out what resonates best with your audience.

Many successful startups approach pricing as an ongoing process. They gather customer feedback, analyze trends, and adjust their prices when necessary. Some introduce loyalty programs or bundle offers to increase perceived value without directly raising prices. By staying flexible and responsive, startups can adjust their pricing over time.

Wrapping things up…

Pricing mistakes are common, but they’re fixable. By staying tuned into customer feedback and making thoughtful adjustments, you can find a price point that reflects your product’s value and keeps your business sustainable. But even with great pricing, poor execution can derail everything. In the next episode, we'll dive into how operational chaos can drag startups down and what founders can do to keep things running smoothly.