Startup of the Week: Saudi startup aims to overtake leaders in last-mile delivery market

Photo/Supplied
Short Url
Updated 17 November 2020
Follow

Startup of the Week: Saudi startup aims to overtake leaders in last-mile delivery market

JEDDAH: The global boom in electronic commerce, further boosted due to the coronavirus disease (COVID-19) pandemic, has resulted in a dramatic increase in the number of parcels delivered each day.

Customer expectations for speedy fulfillment have also been rising, leaving companies to grapple with multiple, last-mile delivery challenges.

Last-mile delivery is the most expensive and time-consuming part of the shipping process and most e-commerce retailers in Saudi Arabia struggle with it. Delays, reduced success rate, and difficulty handling cash on delivery (COD), are among the many obstacles faced by the sector.

However, one Jeddah-based startup claims to have solutions to the problem.

Saee is a Saudi tech-logistical, last-mile delivery company aiming to introduce a new concept into the local market.

The startup helps to facilitate higher success rates and improve profit margins for companies and individuals, while alleviating the need for costly overheads such as cars and couriers.

“The most important things that retail, e-commerce clients expect from last-mile shipping companies is a high success rate, and rapid refunds,” Saee co-founder Tariq Alturkestani told Arab News.

Saee was founded with the support of King Abdullah University of Science and Technology (KAUST) to be the local solution for Saudi e-commerce platforms. It offers specialized services designed to meet retailers’ needs, such as guaranteed fast COD consolidation, and the facilitation of smart, flexible dispatch to freelancers, active customer service, and warehouse management.

COD services are being adopted by online retail companies to gain customers’ trust and to encourage them to try new products. However, they have high associated costs, which drives up costs in a country where around 95 percent of packages are sent via this service.

“I believe that e-commerce has a big dilemma called cash on delivery,” Saee co-founder Eihab Nassier told Arab News. “The end-user or the buyer is not obligated to take whatever they picked from the internet.

“Accordingly, the success rate for the shipments is 70 percent; since only seven out of 10 shipments get received by clients; meaning that e-commerce retailers are enduring about 30 percent of the cost with no actual revenue.”

The other side of the COD problem is slow cash flow, especially for small- and medium-sized enterprises (SMEs).

“As an e-commerce platform, the cycle means that I should send the shipment and get it delivered and then collect the money, transfer it, and then deposit it into my account which takes anywhere from 10 to 20 days. So, we’re talking about a cash gap of 20 days in the best-case scenario. But it often reaches three months,” said Nassier.

One of the solutions that Saee is offering for the problem is the concept of cash before delivery (CBD). “We give the clients the cash before the shipment is delivered with a very small percentage just to endure the cost,” he added.

“We do a transfer every week for our clients, and we have dedicated teams as well as an in-house developed technology to give our clients updated reports constantly.”

Saee delivers last-mile shipments in more than 120 cities and towns using 13 dispatch centers throughout the Kingdom and is working on expanding its reach further. “By the end of this year, we hope to be covering the entire Kingdom,” said Alturkestani.

Another factor that distinguishes Saee from other companies in the field is its reliance on a fleet of freelancers, which means it only recruits couriers according to demand.

“On average we dispatch around 5,000 shipments per day around the Kingdom, during peak seasons such as last Ramadan. In that time period, we dispatched around 12,000 shipments per day with a success rate of around 80 to 85 percent of the received packages,” he added.

During the COVID-19 lockdown, shipment companies scrambled to meet increased demand for residential deliveries, particularly with the many imposed controls and safety protocols. However, Alturkestani said that given the easy scalability of their business model, they were able to fulfill dispatch times.

“During the Black Friday season, we hope that we will be able to reach 15,000 delivery shipments per day,” he added.

According to Alturkestani, the firm’s elastic model and having one of the highest delivery success rates in Saudi Arabia has made major e-commerce companies prefer Saee over other leading courier companies in the Kingdom.

The company’s business model has allowed Saee to avoid having to pay for couriers, gasoline, and vehicle insurance, as well as being able to dodge the worst effects of off-season financial slumps. At the same time, it offers clients more efficient solutions to match their needs and provides local people with the opportunity to increase their income.

Saee’s fleet of freelancers guarantee clients a better performance; agents are not obliged to work within a specific timeframe and deliver a certain amount of shipments per day, so they are less pressured and have the time to focus.

“The average amount of shipments with other companies goes from 50 to maybe 90 or even 100 where our agents deliver around 20 (shipments),” said Nassier.

The KAUST partnership with the Saudi Human Resources Development Fund (HRDF) in the 9\10th accelerator program allowed Nassier and Alturkestani to meet and start their collaboration in 2016.

The company first began to reduce the unemployment rate for females in Saudi Arabia by carpooling women to work and was subsidized by the government program Wusool. However, after a royal decree allowed women to drive, Saee gradually pivoted its model and moved to dispatch of e-commerce packages.

Saee began working with big companies in Saudi Arabia and after raising its profile began targeting smaller companies with services that matched their demand.

“We just started two service products for small enterprises, even those who have one shipment per month only. We wanted to give them more options and to create an impact,” Nassier said.

He believes that the company has great potential to make a difference and bring a solution for the COD market in Saudi Arabia. “Who knows, maybe for the world after that? We want to be the number one company for e-commerce shipping in five years.”

 


Kingdom arrests 17,863 illegals in one week

Updated 5 sec ago
Follow

Kingdom arrests 17,863 illegals in one week

  • A total of 10,746 people were arrested for violations of residency laws, while 4,362 were held over illegal border crossing attempts

RIYADH: Saudi authorities arrested 17,863 people in one week for breaching residency, work and border security regulations, the Saudi Press Agency reported on Saturday.

A total of 10,746 people were arrested for violations of residency laws, while 4,362 were held over illegal border crossing attempts, and a further 2,755 for labor-related issues.

The report showed that among the 1,507 people arrested for trying to enter the Kingdom illegally, 65 percent were Ethiopian, 33 percent Yemeni, and 2 percent were of other nationalities.

A further 99 people were caught trying to cross into neighboring countries, and 26 were held for involvement in transporting and harboring violators, the SPA reported.

The Ministry of Interior said that anyone found to be facilitating illegal entry to the Kingdom, including providing transportation and shelter, could face imprisonment for a maximum of 15 years, a fine of up to SR1 million ($267,000), as well as confiscation of vehicles and property.

Suspected violations can be reported on the toll-free number 911 in the Makkah and Riyadh regions, and 999 or 996 in other regions of the Kingdom.


Japan, GCC conclude second round of FTA negotiations

Updated 05 July 2025
Follow

Japan, GCC conclude second round of FTA negotiations

  • Proposals were reviewed by both sides, with a focus on strengthening trade relations, finding areas to cooperate and fostering partnerships

TOKYO: The second round of negotiations for a Free Trade Agreement between the GCC countries and Japan ended in Tokyo on Friday.

Taking part in the discussions — which covered topics including goods, technical barriers, terms of services, financial and telecommunications services, and intellectual property — was a government delegation led by the General Authority for Foreign Trade.

Proposals were reviewed by both sides, with a focus on strengthening trade relations, finding areas to cooperate and fostering partnerships.

Farid bin Saeed Al-Asali, deputy governor of the General Authority for International Organizations and Agreements and head of the Saudi Negotiating Team, said he was looking forward to completing the remaining negotiation rounds and reaching an ambitious final agreement which would be beneficial to the volume of trade between both sides.

He added the negotiation rounds highlighted economic ties between the GCC and Japan and supported Saudi Arabia’s Vision 2030.

During a meeting with the Saudi ambassador to Japan, Dr. Ghazi bin Faisal Binzagr, Al-Asali stressed the importance of free trade negotiations with Japan as they emphasized the commitment of both Saudi Arabia and the GCC countries to enhancing relations with Japan and achieving the goals of the Saudi-Japanese Vision 2030.

The Kingdom’s delegation included representatives from the Ministry of Energy, Ministry of Interior, Ministry of Industry and Mineral Resources, Ministry of Environment, Water and Agriculture, Ministry of Investment, Ministry of Economy and Planning, Saudi Food and Drug Authority, Saudi Authority for Intellectual Property, Saudi Standards, Metrology and Quality Organization, Saudi Export Development Authority, Communications, Space and Technology Commission, Zakat, Tax and Customs Authority, and the Saudi Central Bank.

• This article also appeared on Arab News Japan


How Saudi Arabia is using innovation, research, and regulation to turn waste into a circular economy success

Updated 05 July 2025
Follow

How Saudi Arabia is using innovation, research, and regulation to turn waste into a circular economy success

  • Engineering, AI and cross-sector partnerships are driving sustainable solutions to manage 110 million tons of waste annually
  • New laws, financial incentives and rising investor interest are reshaping the Kingdom’s waste management and recycling landscape

RIYADH: As Saudi Arabia accelerates toward a circular economy under Vision 2030, experts say universities, research institutions, and business leaders are playing a crucial role in developing innovative waste management solutions that align with national sustainability goals.

In early 2024, Saudi Arabia’s Ministry of Environment, Water and Agriculture announced a waste management plan aiming to recycle up to 95 percent of waste and add SR120 billion ($31.99 billion) to the Kingdom’s gross domestic product.

Saudi Arabia generates more than 110 million tons of waste each year, much of it originating from cities like Riyadh, Jeddah, and Dammam. Its waste management market is projected to grow from $5.97 billion in 2025 to $8.72 billion by 2030, according to Mordor Intelligence.

To meet this challenge, academic partnerships, regulatory reforms and emerging technologies are coming together to reshape the sector, Sultan Al-Muaythir, chairman of the civil engineering department at Prince Sattam bin Abdulaziz University, told Arab News.

Forming knowledge-sharing agreements with leading countries in waste management, he said, is a strategic step toward building a sustainable, locally adapted system that draws on global best practices and aligns with Saudi Arabia’s circular economy ambitions.

To drive innovation in the sector, Al-Muaythir emphasized the importance of interdisciplinary support. Fields like civil engineering, landfill and waste management, geotechnical engineering, and soil sciences all contribute to the design and development of critical infrastructure.

Sultan Al-Muaythir, chairman of the civil engineering department at Prince Sattam bin Abdulaziz University. (Supplied)

Mechanical engineering plays a key role in advancing collection and treatment equipment, while chemical, agricultural and biotechnology engineering disciplines help analyze waste composition and develop transformation processes.

Electrical engineering, he added, is essential for operating smart systems and managing energy generated through treatment.

Al-Muaythir also pointed to the Kingdom’s updated regulatory landscape, particularly the introduction of the Waste Management Law and its executive regulations, as a strong foundation for encouraging innovation and investment in sustainable practices.

He explained that the next phase calls for faster plan implementation, broader international research collaboration and direct incentives for advanced processing technologies — steps that would speed up the Kingdom’s progress toward its environmental and development goals.

While government action is essential, Al-Muaythir said innovation in waste management is not a luxury, but a necessity for building a clean environment and a functioning circular economy.

He added that individual responsibility plays an equally important role. “Adopting conscious behaviors towards waste and committing to sorting and reuse/recycling constitute the first building blocks in creating a more sustainable future,” he said.

Expanding on this vision, Abdullah Alakel, chairman of the Saudi Scientific Research and Innovation Association, said waste management innovation is a cornerstone of Vision 2030’s broader goal to build a circular and sustainable economy.

Abdullah Alakel, chairman of the Saudi Scientific Research and Innovation Association. (Supplied)

He told Arab News that scientific research is a key driver in tackling environmental challenges — from recycling and waste-to-energy technologies to the use of artificial intelligence to improve sorting and collection processes — ultimately boosting operational efficiency and reducing environmental harm.

To support this ecosystem, the association provides business incubators and innovation accelerators, offering technical and financial assistance. It also facilitates connections between researchers, donors and investors to help turn ideas into market-ready solutions.

Alakel noted that several joint initiatives with academic and industrial partners are already underway, including efforts to convert organic waste into economic products such as fertilizers and biofuels.

DID YOU KNOW?

 

• Saudi Arabia aims to recycle up to 95 percent of its waste by 2040. Waste management sector is projected to contribute $32bn to GDP by 2040.

• Half of the Kingdom’s waste comes from Riyadh (21 percent), Jeddah (14 percent) and Dammam (8 percent).

(Sources: Ministry of Environment, Water and Agriculture and the National Center for Waste Management)

Other projects aim to develop scalable recycling technologies and improve overall waste management efficiency.

Beyond research, the association works to foster a culture of sustainability across society. Alakel said it organizes public awareness campaigns, educational workshops in schools and universities, and national competitions that encourage creative, environmentally responsible solutions.

He added that the association plays a critical role in bridging academia and implementation by hosting scientific conferences, building strategic partnerships and supporting national innovation deployment in alignment with Vision 2030’s environmental goals.

Farah Al-Gharib, CEO of Precision & Choice Environmental Solutions, echoed those views, underscoring the opportunity to enhance coordination between stakeholders as Saudi Arabia moves toward a circular economy.

Farah Al-Gharib, CEO of Precision & Choice Environmental Solutions. (Supplied)

She told Arab News that aligning regulations, expanding infrastructure for sorting and collection, and stimulating private investment remain key challenges. Raising public awareness and promoting innovation are also essential to achieving sector-wide transformation.

To accelerate progress, Al-Gharib called for a more integrated and flexible system that encourages public-private partnerships. Activating source-level sorting and offering financial incentives to investors, she said, would help drive growth in the sector.

Clear metrics, such as waste reduction, cost savings and job creation, should be used to measure success.

KAUST's waste collection fleet is equipped with technology that supports efficient operations, from online vehicle tracking to waste bin management. (Photo courtesy of KAUST)

Looking ahead, she expects more companies to invest in smart technologies and expand their collection and treatment networks. Seamless integration across the entire waste value chain — from source to processing and redistribution — is essential, she said, to avoid bottlenecks and uphold the core principles of the circular economy.

“Based on our experience in the sector, we believe that unifying and updating regulations under a single, clear, and transparent regulatory framework would directly contribute to attracting investors, reducing the complexity of procedures and the classification of recyclable products, thereby accelerating regulatory processes and stimulating production,” said Al-Gharib.

She concluded that clear legislation and coordinated responsibilities across authorities are key to scaling up circular economy initiatives effectively and sustainably.
 

 


Hayy Cinema hosting classic movie program for children in Jeddah

Hayy Cinema, which is an Art Jameel initiative, provides a unique approach to film presentation. (@hayyjameel)
Updated 04 July 2025
Follow

Hayy Cinema hosting classic movie program for children in Jeddah

  • The program includes twice daily screenings of classic Arab cartoons that have left a lasting impression on viewers and a complementary range of artistic activities inspired by the films

JEDDAH: Hayy Cinema in Jeddah is running an entertainment program that provides an interactive experience to evoke childhood memories and strengthen cultural bonds between generations.

The program includes twice daily screenings of classic Arab cartoons that have left a lasting impression on viewers and a complementary range of artistic activities inspired by the films.

Hayy Cinema, which is an Art Jameel initiative, provides a unique approach to film presentation. Its facilities include a 168-seat theater, private screening room, multimedia library and an educational exhibition, all designed with architectural inspiration drawn from the history of Gulf cinema.

The children’s program runs until Sunday.

 


Falcon breeders auction to be launched in August

Updated 04 July 2025
Follow

Falcon breeders auction to be launched in August

  • The season will start with the International Falcon Breeders Auction, running from Aug. 5-25, showcasing top local and international falcon farms

RIYADH: The Saudi Falcons Club has announced its schedule for the current year, featuring six major events spanning a total of 122 days in Malham, north of Riyadh, and other venues across the Kingdom.

The event is designed to engage a broad audience interested in falconry, hunting and related cultural traditions.

The season will start with the International Falcon Breeders Auction, running from Aug. 5-25, showcasing top local and international falcon farms.

The Saudi Falcons Club Auction will run from Oct. 1 to Nov. 30, serving as a key platform for presenting top local falcons and providing a reliable economic avenue for falconers.

The International Saudi Falcons and Hunting Exhibition, the largest of its kind in the region, will take place from Oct. 2-11. It will feature exhibitors from both within and outside the Kingdom, showcasing the latest equipment and supplies for falconry, hunting, travel, weapons and outdoor adventures.