Saudi entrepreneurs gear up for a high-tech future

The Kingdom has set up public and private entities, including Monshaat, King Abdullah University of Science and Technology and MISK Academy, which offer events and funding to promote technology. (AN photo by Ziyad Alarfaj)
Updated 01 December 2019
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Saudi entrepreneurs gear up for a high-tech future

  • Saudi Arabia is pushing for a growing role for technology in the SME sector
  • The Kingdom is aiming to reduce its unemployment rate to 7 percent by 2030

DUBAI: Silicon Valley, a cluster of cities in the southern part of the San Francisco Bay Area in California, is synonymous with technology startups and businesses that have changed the world.

Apple, for instance, posted a net income of $55.26 billion in 2019, compared with $3.5 billion in 2007 when it first released its iPhone 1, according to a report by Statista, a leading provider of market and consumer data.

This manifold jump in income in a span of just 22 years makes Apple a major contributor to US economic growth. A 2018 report by Apple predicted that the company would contribute $350 billion to the US economy over the next five years.

Today, Saudi Arabia, which was responsible for 16.1 percent of global oil exports in 2018, is pushing for a growing role for technology in small and medium-sized enterprises (SMEs) with a view to positioning itself as a regional center of high technology and innovation.

Vision 2030, a reform program aimed at diversifying Saudi Arabia away from oil dependency and creating new-economy jobs for a young population, has made it possible to imagine such a transition.

A new set of objectives have been given to captains of the SME sector aimed at making it a vital contributor to the country’s economy by lifting its contribution to the GDP from 20 percent to 35 percent by 2030.

TECHFACTS

  • Saudi Arabia aims to become a regional center of hi-tech and innovation by 2030.
  • A number of public and private entities are offering funds, loans and investments to tech SMEs.
  • Second quarter of 2019 showed unemployment rate of 12.3 percent (General Authority for Statistics).
  • Edu-tech startup Noon Academy raised $8.6 million in Series A investment round this year.

One way for Saudi Arabia to achieve this target is by using technology in small businesses, entrepreneurs say, adding that not only does technology help to attract investors, but it also increases job opportunities and raises competitiveness between SMEs and corporations.

“Tech investments — major and minor — have come out of Saudi Arabia since Silicon Valley was in its early days. It is actually one of the longest-standing investor-investee relationships,” said Prince Khaled bin Alwaleed bin Talal Al-Saud, founder of KBW Investments and KBW Ventures and co-founder of the property developer Arada.

The Kingdom has established a number of public and private entities — Monshaat, King Abdullah University of Science and Technology and MISK Academy, to name just three — that offer funds, loans and investments.

Speaking to Arab News on the sidelines of the recent Sharjah Entrepreneurship Festival, Prince Khaled said that it is not always possible to get an angel investor or an entity to invest in a business as investors look for unique ideas and business viability.

One way for an entrepreneur to attract the attention of investors is by establishing a business that responds to clients faster than other tech companies.




Prince Khaled bin Alwaleed bin Talal Al-Saud, founder of KBW Investments and KBW Ventures and co-founder of the property developer Arada. (Supplied)

Another element that helps entrepreneurs create partnerships with investors is transparency.

“I think consistent communication not only improves relationships,” he said. “It also prevents any misunderstanding that could arise.”

Fadi Al-Awami, an SMEs and entrepreneurship consultant, said that investors are interested in technologies that offer solutions to existing problems and have the potential for geographical expansion into other markets.

“Also, the return on investment should be very attractive. There should be a clear exit strategy or at least a strategy for making high profit,” he said in an interview at the Sharjah Entrepreneurship Festival.

Investing in SMEs allows companies to expand, thus creating job opportunities.

SMEs make up about 90 percent of enterprises and account for more than 50 percent of employment worldwide, according to a World Bank report. The fact that “600 million jobs will be needed by 2030 to absorb the growing global workforce makes nurturing an SME ecosystem a priority for governments around the world.”

According to the Saudi government’s General Authority for Statistics, the second quarter of 2019 showed an unemployment rate of 12.3 percent. The aim by 2030 is to lower the unemployment rate to 7 percent, according to a Vision 2030 report.

Prince Khaled gave an example of how tech SMEs can help to generate jobs. He said that if an entrepreneur decides to create a line of wooden toys and sells them on Instagram, he or she will need supplies to create the products, such as wood, tools and so on.

“That wood is collected by someone, potentially refined down to sellable stock by another, and maybe delivered by yet another,” he said.




Fadi Al-Awami, SMEs and entrepreneurship consultant, below: Investors are interested in technologies that have the potential for geographical expansion into other markets. (Supplied)

Imagine now that the entrepreneur decides to get help with Instagram ad buying. This may require an arrangement with another freelancer. They might even get busy and big enough to engage a small social media agency and, later, a web developer for e-commerce, said Prince Khaled.

Al-Awami said that Saudi entrepreneurs are already using technology in their businesses. He pointed to a number of tech-business success stories inside the Kingdom: “Ten Saudi startups have been chosen among the most promising Arab startups at the World Economic Forum for this year.”

Tech Pills, Foodics, HalalaH, Lucidya, Mrsool, HungerStation, Morni and Noon Academy are examples of recent entrants to the nascent Saudi tech-business field.

Al-Awami cites Noon Academy as an example of an educational platform that is considered one of the fastest growing on-demand ed-tech startups in the Middle East, with more than two million registered students.

The company raised $8.6 million in a Series A investment round this year and was chosen as one of the most promising startups in the Arab world at the World Economic Forum, according to Al-Awami.

Prince Khaled said that women and men in Saudi Arabia are ready to break ground in emerging technologies as many of the startups employ intelligent and imaginative Saudis.

“This is how the entrepreneurs of our country can increase everything from community engagement and employment rates to inclusion.”

Although Saudi Arabia is steadily becoming more entrepreneur-friendly, SMEs still have to put up with slow and cumbersome administrative processes, according to a Vision 2030 report.

The good news is that the Kingdom has begun to address these challenges and, according to Prince Khaled, there is burgeoning government support for the SME ecosystem.

“You can get mentorship, incubation, acceleration, partnerships, grants, investments — literally everything you may need to jumpstart your venture,” he said.

Entrepreneurs who establish tech enterprises that can help to develop or secure the Kingdom’s main source of income are likely to succeed. Al-Awami said that entrepreneurs should focus on technology in the oil and gas sector.

“I think there are still great opportunities to support this sector by providing innovative solutions involving the use of technology,” he said, underscoring opportunities for cybersecurity companies in a country where the oil and gas sector accounts for about 50 percent of its GDP and about 70 percent of its export earnings.

Investors and entrepreneurs say small businesses contribute to any local economy, and that Saudi Arabia is no exception. They help to stimulate economic growth by offering job opportunities to individuals who are not selected by larger corporations.

Al-Awami said that he advises aspiring entrepreneurs to be committed and passionate about what they are doing. They should offer solutions, not just a product or service, and they must always think how to improve their customers’ experience.

 


Saudi defense minister meets with Chinese envoy to Kingdom

Updated 17 November 2024
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Saudi defense minister meets with Chinese envoy to Kingdom

  • Session attended by several high-ranking officials from both sides

RIYADH: Saudi Minister of Defense Prince Khalid bin Salman met with Chinese ambassador to the Kingdom Chang Hua on Sunday.

The meeting focused on reviewing the strong relations between the two nations and discussing various issues of mutual interest, Saudi Press Agency reported.

The session was attended by several high-ranking officials from both sides, SPA added.


King Salman approves hosting of 1,000 Umrah pilgrims from 66 countries

The Kaaba can be seen at the Grand Mosque in Makkah. (@AlharamainSA)
Updated 17 November 2024
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King Salman approves hosting of 1,000 Umrah pilgrims from 66 countries

  • Pilgrims will be hosted in four groups during the current Islamic year which ends in the final week of June 2025
  • Minister said the hosting of the pilgrims is an extension of the great care that Saudi leadership takes to serve Islam and Muslims

RIYADH: Saudi Arabia’s King Salman has approved the hosting of 1,000 pilgrims from 66 countries to perform Umrah as part of the Custodian of the Two Holy Mosques Programme for Hajj, Umrah, and Visit.

The pilgrims will be hosted in four groups during the current Islamic year which ends in the final week of June 2025.

The Minister of Islamic Affairs, Call, and Guidance and general supervisor of the Hajj and Umrah program Sheikh Abdullatif bin Abdulaziz Al-Sheikh thanked the Saudi leadership for enabling Muslims from different countries of the world to perform the minor pilgrimage with ease and peace of mind.

The minister said the hosting of the pilgrims is an extension of the great care that the leadership takes to serve Islam and Muslims.

He added it would strengthen the bonds of brotherhood among Muslims in various parts of the world and develop fruitful communication between scholars and influential figures who are hosted by the program.

The program has benefitted people from more than 140 countries since it was launched, the minister said.


Old school, new love: Analog tech captures hearts in Saudi Arabia

Updated 17 November 2024
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Old school, new love: Analog tech captures hearts in Saudi Arabia

  • Community bound by love of old gadgets that help enrich the present

RIYADH: In an era marked by digital convenience, analog technology is steadily making a comeback, with everything from vinyl records to film cameras experiencing a renaissance around the Kingdom.

Driven by a blend of nostalgia, artistry, and an appreciation for the tactile, this resurgence reflects a deeper cultural shift toward mindfulness and intentionality.

Arab News spoke to enthusiasts and entrepreneurs about the beauty, challenges, and personal connections that analog offers over its digital counterparts.

The resurgence of analog formats is a reminder that technology can be more than just a tool. (AN photo by Waad Hussain)

For music lovers, vinyl offers an experience that is impossible to replicate digitally. Fawaz Al-Sulaim, owner of Bohemia Records, said: “Experiencing music through vinyl or cassette brings you closer to it, like you’re there with the artists in the studio. You go through every song on the album as intended.”

Vinyl’s allure lies not just in its sound but also in its tangible presence. Holding a vinyl record offers a sense of ownership often missing in digital music, where ownership is more of a fleeting license.

Al-Sulaim said: “Analog represents physical media coming back — not just in a technical sense but as something people can hold on to.”

HIGHLIGHTS

• As Saudi Arabia invests in art, culture, and heritage, there is hope that analog’s value will continue to be recognized and supported.

• With the rise in interest, local communities and businesses are emerging to cater to this renewed passion for analog.

This revival is not limited to vinyl. Bohemia Records has seen an increase in CD sales, suggesting that physical formats resonate with people’s desire to own and cherish music collections.

The appeal of analog does not stop at music. In photography, the return to film presents a refreshing contrast to digital’s immediacy.

Film rolls ready for development at Haitham Studio Film Lab, where each roll holds captured memories and stories from Saudi photographers. (Photo by Abdulrahman Al-Osaimi)

Haitham Al-Sharif, founder of Haitham Studio Film Lab in Riyadh, spoke to Arab News about film photography’s unique character, saying: “Film requires patience, thought, and a connection with the moment. You’re fully present, considering every exposure.”

Al-Sharif, who began his film processing journey at home, has seen a surge in Saudi interest, with his studio now serving thousands across the Gulf region.

Haitham Studio’s clients include people from seasoned photographers to students experimenting with their parents’ vintage cameras.

An eclectic display of analog nostalgia and rock memorabilia, featuring classic vinyl records, retro audio equipment, and books on music icons—capturing the spirit of vintage and punk culture. (AN photo by Waad Hussain)

He said: “People come in for graduations, weddings, and even casual shots with disposable film cameras. Each frame has meaning, and the photographer remembers every shot.”

Running a film lab, however, is not without challenges. “We rely on older machines, specialized chemicals, and skilled technicians, which aren’t always easy to source locally,” Al-Sharif explained, adding that the support of Saudi Arabia’s growing art and tourism sectors could enhance this particular industry’s growth.

For retro tech enthusiasts like Zain Al-Mansour, the appeal goes beyond functionality. He said: “Listening to music on vinyl or snapping pictures with a vintage camera offers a joy that’s similar to making espresso — you savor the process as much as the end result.”

Film negatives hang to dry at Haitham Studio, reflecting the lab’s dedication to preserving the authenticity and art of analog photography. (Photo by Abdulrahman Al-Osaimi)

With an affinity for devices that evoke memories, Al-Mansour recently acquired a first-generation Tamagotchi, to help rediscover the simplicity and wonder of childhood technology.

Analog devices engage users on a personal level, prompting a more deliberate interaction than today’s instant gratification.

Al-Mansour said: “Retro tech is fascinating because it takes you back to a simpler time. The aesthetics of these devices, the physicality, and even the sounds they make add to their charm.”

A film negative passes through the scanning machine at Haitham Studio, bridging the analog and digital worlds to bring treasured moments to life. (Photo by Abdulrahman Al-Osaimi)

For others, analog represents a form of self-expression. Bashayer Al-Bloushi sees a unique beauty in analog’s imperfections, which bring out details often missed in digital formats.

“Film photography forces you to capture moments with intention. There’s no instant review, so you’re careful about each frame,” she said.

For Al-Bloushi, analog provides a richer experience that digital cannot offer, allowing for a deeper connection to each captured moment.

A retro cassette collection at Bohemia Records, showcasing a variety of genres and rare finds that capture the essence of analog music. (Photo by Fawaz Al-Sulaim)

Saja Al-Zahrani spoke about how analog media lets people embrace a slower, more mindful approach.

Al-Zahrani said: “There’s a warmth in vinyl’s crackle or film’s grain that digital can’t match.

“With analog, people reconnect with something real, something authentic.”

This tactile experience of using film or vinyl requires more focus, turning each interaction into a rewarding moment.

The value of analog media extends beyond nostalgia for Ebtsam Al-Dossary. Having grown up with film cameras, she sees them as reliable memory-keepers.

She said: “A camera doesn’t just store images; it keeps your memories safe. Digital files can vanish, but a physical photo endures.”

For Al-Dossary, the resurgence of analog formats is not just a trend; it’s a meaningful way to capture and remember moments more authentically.

As digital convenience reigns, this analog revival may underscore a collective yearning for experiences that slow us down, engage our senses, and encourage a mindful appreciation of art, music, and memories.

Whether it is the crackle of a vinyl record, the anticipation of developing a roll of film, or the tactile joy of a retro gadget, analog’s comeback offers a refreshing alternative to the fast-paced digital world.

In today’s digital landscape, the resurgence of analog offers a bridge between past and present, inviting us to reconnect with timeless traditions and meaningful experiences.

For enthusiasts across Saudi Arabia, this revival is about more than simply reverting to older technology — it is about rediscovering a different kind of connection, one in which every sound, image, and moment is fully appreciated.

Analog’s revival is redefining how Saudi society interacts with technology, pushing back against the trend of disposability and transient media. Each record played, photo developed, or gadget cherished represents a conscious choice to engage deeply with the experience.

Analog enthusiasts find joy in the imperfections, the weight of physical media, and the permanence these formats offer — qualities that digital often lacks.

With the rise in interest, local communities and businesses are emerging to cater to this renewed passion for analog. Haitham Studio and Bohemia Records are not just stores but spaces for Saudi artists, photographers, and music lovers to connect and share their passions. These communities thrive on a shared understanding of the value in slowing down and appreciating the process, rather than just the result.

In Riyadh, Al-Sharif has seen the effect firsthand. “We see customers coming back weekly, sometimes with friends, eager to develop their latest film rolls or browse the latest records,” he said. This sense of community is not just about shared interests; it is about shared values.

While the digital world offers unprecedented convenience and accessibility, analog serves a different purpose. Al-Sharif believes that both can coexist harmoniously. “Digital is essential for instant documentation, but analog is about timeless experiences,” he said.

Al-Zahrani, too, emphasizes that analog does not negate the value of digital but rather offers an alternative that complements it. “Both formats have their place, but analog asks something of you: it asks you to be present, to commit to the moment,” she said.

As Saudi Arabia invests in art, culture, and heritage, there is hope that analog’s value will continue to be recognized and supported. Whether through dedicated spaces like Haitham Studio or local events celebrating vintage tech, these efforts help sustain a trend that is not only about looking back but also about enriching the present.

The resurgence of analog formats is a reminder that technology can be more than just a tool. It can be an experience, a memory, and a form of art.

 


Saudi authorities foil attempted smuggling of $2m worth of Captagon pills

Updated 17 November 2024
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Saudi authorities foil attempted smuggling of $2m worth of Captagon pills

  • Customs Authority also discovers 403,124 Pregabalin, 1,990 Tramadol unlicensed, prescription-only pills

JEDDAH: Saudi Arabia’s counter-narcotics authorities on Sunday foiled attempts to smuggle $2 million worth of Captagon drugs and nearly half a million unlicensed Pregabalin and Tramadol pills.

The Zakat, Tax and Customs Authority said in a statement that it had seized the illegal drugs and unlicensed pills at King Abdulaziz International Airport in Jeddah; the inland Dry Port in Riyadh; and Al-Batha Port.

Authorities at the airport in Jeddah found 200,000 Captagon pills hidden in mail parcels containing household utensils. The drugs have a street value ranging from $2 million to $5 million. 

Captagon, a type of amphetamine, is used by young men and teenage boys across the Middle East and has a street value of between $10 and $25 a pill, according to research by the International Journal of Addiction Research.

The attempt to smuggle Captagon into the Kingdom was the second in less than a week. Counter-narcotics authorities uncovered a shipment of 12 million amphetamine pills on Wednesday at the Red Sea port of Jeddah which had been hidden inside a container of building materials.

The authorities also thwarted the smuggling of 403,124 unlicensed Pregabalin pills at the inland Dry Port near Riyadh. Pregabalin is a prescription-only drug for anxiety, epilepsy, and nerve pain treatment, but its abuse has led to several deaths in Saudi Arabia, the UAE and Jordan. In countries such as the UK it is illegal to buy or possess Pregabalin without a medical prescription.  

An attempt to smuggle 1,990 unlicensed Tramadol pills — a prescription-only painkiller — and 500 grams of Shabu was thwarted at Al-Batha Port. The Customs Authority said the Shabu was found hidden in a shipment of washing machines.

The Customs Authority and the General Directorate of Narcotics Control have announced the arrest of 10 people in connection with the drug smuggling cases.


GCC secretary general receives Austria’s ambassador in Riyadh

Updated 17 November 2024
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GCC secretary general receives Austria’s ambassador in Riyadh

  • The parties reviewed bilateral relations and ways to further develop and strengthen them, as well as discussing various topics of common interest

RIYADH: The Secretary-General of the Gulf Cooperation Council Jasem Al-Budaiwi received the Ambassador of Sri Lanka to the Kingdom Omar Lebbe Ameer Ajwad, and the Ambassador of Austria to the Kingdom Oskar Wustinger in separate meetings at the Secretariat General of the GCC in Riyadh on Sunday.

The parties reviewed bilateral relations and ways to further develop and strengthen them, as well as discussing various topics of common interest, the Saudi Press Agency reported.

The discussions also included an exchange of views on recent regional and international developments.