Saudi Arabia - WORLDEF

Khwarizmi Ventures Achieves Powerful $70M First Close for GCC Tech Startups

Saudi Arabia-based venture capital firm Khwarizmi Ventures has announced the first close of its second investment fund, securing more than $70 million in commitments to support early-stage technology startups across the GCC. The move reflects growing investor confidence in the Gulf’s expanding startup ecosystem, particularly in Saudi Arabia, which continues to strengthen its position as a regional venture capital hub.

Strong First Close Signals Investor Confidence

Khwarizmi Ventures confirmed that the first close of Fund II exceeded SAR 270 million ($70 million+), backed by institutional investors and major Saudi family offices. The fund will focus primarily on Seed and Series A startups developing scalable technology-driven businesses across GCC markets.

The VC firm stated that Fund II is designed to support ambitious founders building companies with regional and global expansion potential. The investment strategy will continue targeting sectors experiencing rapid digital transformation, including fintech, e-commerce, logistics, artificial intelligence, SaaS, and enterprise technology.

The announcement also highlights the increasing maturity of the GCC startup landscape, where venture funding activity has accelerated over the past few years due to economic diversification efforts and rising private-sector participation.

Saudi Arabia Continues Expanding Its Startup Ecosystem

Saudi Arabia has become one of the Middle East’s fastest-growing startup ecosystems, supported by initiatives aligned with Vision 2030. Government-backed programs, sovereign investment activity, and growing interest from institutional investors have significantly boosted the Kingdom’s technology sector.

Venture capital activity in Saudi Arabia has steadily increased as more startups secure regional and international funding rounds. The country’s push toward digital transformation, fintech innovation, and entrepreneurship development has created favorable conditions for investors seeking long-term growth opportunities in the region.

Khwarizmi Ventures’ latest fund launch comes amid rising demand for early-stage capital across the Gulf, where startups are increasingly targeting cross-border expansion from day one.

Building on the Success of Fund I

Founded in 2018, Khwarizmi Ventures has established itself as one of Saudi Arabia’s active early-stage investment firms. Its first fund, launched in 2021 with approximately $70 million in capital, invested in more than 30 startups across the MENA region.

The firm’s portfolio includes several fast-growing regional technology companies such as Calo, Eyewa, Tamara, and HALA. Khwarizmi Ventures has also recorded multiple successful exits from Fund I, strengthening its reputation within the regional investment ecosystem.

The company said the second fund aims to build on these results by identifying high-potential startups earlier and supporting them throughout their growth journey.

Focus on Long-Term Founder Support

Khwarizmi Ventures plans to write initial investment checks ranging between $1 million and $5 million while reserving additional capital for follow-on rounds in top-performing portfolio companies.

This strategy reflects a broader shift among GCC venture capital firms toward long-term founder support and sustainable scaling rather than short-term capital deployment. Investors across the region are increasingly prioritizing startups with strong fundamentals, scalable business models, and regional expansion capabilities.

Managing Partner Abdulaziz Al-Turki previously described the regional startup environment as a “golden opportunity” for early-stage investment, citing the growing number of technology unicorns and the increasing sophistication of founders emerging from the MENA ecosystem.

GCC Startup Market Attracts Global Attention

The Gulf startup ecosystem has continued attracting both regional and international investors as governments accelerate investments in digital infrastructure, AI, financial technology, and entrepreneurship programs.

Saudi Arabia, the UAE, and other GCC markets are witnessing stronger collaboration between private investors, sovereign wealth funds, accelerators, and venture capital firms. This momentum has helped position the region as one of the fastest-growing innovation markets globally.

Industry analysts expect Khwarizmi Ventures’ Fund II to play an important role in financing the next generation of GCC startups, particularly companies using Saudi Arabia as a launchpad for regional and international growth.

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Live Commerce MENA Gains Momentum as Siin Secures $3 Million in Strategic Funding

Bahrain-based live commerce platform Siin has raised a total of $3 million in funding, reinforcing investor confidence in the emerging live shopping segment across the Middle East and North Africa (MENA).

The round was led by VentureSouq and Shift Group, with participation from Plus VC, Oqal, and a group of regional backers.

Founded in 2024, Siin operates at the convergence of e-commerce and real-time digital engagement, enabling users to buy and sell products through interactive livestreams. The platform reflects a broader shift toward experience-driven commerce, where purchasing decisions are increasingly shaped by trust, immediacy, and social interaction.

From Transactional to Interactive Commerce

Live commerce, already well established in Asian markets, is gaining traction in MENA, albeit from a relatively early-stage base. Siin’s model adapts this format to regional consumer behavior by replicating the dynamics of traditional marketplaces in a digital environment.

Rather than relying on static product listings, the platform allows sellers to engage directly with audiences in real time, combining entertainment, community interaction, and instant purchasing. This approach aligns closely with the region’s culturally embedded preference for relationship-driven commerce.

The company has already expanded across key Gulf markets, including Saudi Arabia, the UAE, Kuwait, Bahrain, Qatar, and Oman, signaling early operational scalability.

Early Traction Signals Category Potential

Within a short period, Siin has facilitated hundreds of thousands of product transactions while generating tens of thousands of hours of live-streamed content, pointing to strong user engagement and repeat activity.

For investors, this traction highlights the platform’s potential to evolve beyond a conventional marketplace into a behavioral commerce layer, one that integrates content, community, and transaction into a unified ecosystem.

The opportunity is particularly notable given that live commerce remains underpenetrated in MENA compared to more mature digital markets, leaving room for category leaders to emerge.

Strategic Focus: Expansion and Infrastructure

The newly secured capital will support Siin’s next phase of growth, with a focus on:

Geographic expansion across additional MENA markets
Strengthening its seller and creator ecosystem
Enhancing platform infrastructure and user experience

The startup is also backed by regional innovation platforms such as Hub71 and telecom-led accelerator InspireU, providing further institutional support as it scales.

Positioning Within the Future of Commerce

As global e-commerce continues to shift toward more immersive and interactive formats, live commerce is increasingly viewed as a key growth frontier. Siin’s localized approach, anchored in regional consumer behavior, positions it to capture this transition within MENA.

While the segment is still developing, early indicators suggest that platforms combining content, trust, and real-time engagement may play a defining role in the next phase of digital commerce evolution across the region.

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Saudi Arabia Leads with 94 Points in a Positive Global Digital Readiness Ranking

Saudi Arabia has secured the top global position in the International Telecommunication Union (ITU) Digital Readiness Index 2025, achieving a score of 94 out of 100. The ranking places the Kingdom in the “very high” category and reflects its rapid progress in digital infrastructure, connectivity, and technology-driven economic transformation.

The latest results mark a significant improvement from previous years, where Saudi Arabia ranked fourth globally with a lower score. The advancement underscores the country’s consistent investment in digital capabilities and its long-term strategy to position itself as a leading digital economy under Vision 2030.

Strong Performance Across Digital Infrastructure and Connectivity

The ITU Digital Readiness Index evaluates countries based on multiple indicators, including connectivity, digital infrastructure, and the effectiveness of digital services. Saudi Arabia’s high score highlights its strong performance across these areas, particularly in expanding access to high-speed networks and improving digital service delivery.

The Kingdom has made substantial progress in building advanced telecommunications infrastructure, which has been a key driver of its digital transformation. High mobile penetration rates, widespread broadband access, and ongoing 5G expansion have all contributed to strengthening the country’s digital ecosystem.

This infrastructure foundation has enabled both public and private sectors to accelerate digital adoption, supporting the growth of e-commerce, fintech, and digital services.

Digital Economy Driving Growth and Investment

Saudi Arabia’s leadership in digital readiness is closely linked to the rapid expansion of its digital economy. The ICT sector continues to play an increasingly important role in national economic growth, attracting both regional and international investment.

Government-led initiatives have focused on enhancing competitiveness, encouraging innovation, and creating a business-friendly environment for technology companies. These efforts are helping to position the Kingdom as a regional hub for digital commerce and emerging technologies.

The strong digital infrastructure and regulatory environment are also enabling businesses to scale efficiently, contributing to increased productivity and economic diversification.

Strategic Vision Behind the Transformation

The Kingdom’s achievement is largely driven by its long-term digital strategy under Vision 2030, which prioritizes technology as a key pillar of economic development. Investments in smart cities, digital government services, and innovation ecosystems have accelerated the pace of transformation.

Saudi Arabia has also focused on improving user experience in digital services, increasing accessibility, and fostering digital skills across the population. These initiatives ensure that digital transformation is not only infrastructure-led but also inclusive and sustainable.

Market Implications

Saudi Arabia’s top ranking in digital readiness signals a broader shift in the global digital economy, where countries with strong infrastructure, policy frameworks, and investment strategies are gaining a competitive edge.

For businesses operating in e-commerce and digital services, the Kingdom presents a rapidly evolving market with high growth potential. The combination of advanced connectivity, supportive regulation, and increasing consumer adoption creates a favorable environment for expansion.

As digital transformation continues to accelerate globally, Saudi Arabia’s progress highlights the importance of long-term strategy and sustained investment in building competitive digital economies.

Source:

Economy Middle East

Saudi Arabia’s 85% E-Payments Milestone Signals Positive Digital Payment Boom

Saudi Arabia is rapidly moving toward a cashless economy, with electronic payments now representing 85% of total retail transactions in 2025, marking a significant leap in the Kingdom’s digital transformation journey. This milestone highlights the accelerating adoption of fintech solutions and the success of long-term government strategies aimed at reducing cash dependency.

The growth builds on strong momentum from previous years. In 2024, electronic payments already accounted for 79% of retail transactions, up from 70% in 2023, reflecting a steady and consistent shift toward digital payment methods.

This rapid adoption is largely driven by Saudi Arabia’s Vision 2030 initiative, which prioritizes financial innovation and aims to create a fully digital economy. Government-backed programs, combined with the expansion of payment infrastructure, have made digital transactions more accessible and convenient for both consumers and businesses.

E-Payments Drive Saudi Arabia’s Digital Economy Transformation

A key factor behind this growth is the widespread use of mobile wallets, contactless payments, and real-time banking solutions. Platforms like mada, SADAD, and sarie have significantly improved transaction speed and reliability, encouraging consumers to move away from cash. At the same time, smartphone penetration and internet accessibility have enabled seamless adoption across urban and rural areas.

E-commerce growth has also played a major role. As online shopping continues to expand in the Kingdom, digital payment methods have become the default option for transactions. Retailers are increasingly integrating advanced payment technologies to meet consumer expectations for speed, security, and convenience.

In addition, the rise of fintech companies is intensifying competition and innovation within the sector. Saudi Arabia had over 200 licensed fintech firms by 2024, with ambitions to significantly increase this number in the coming years. This dynamic ecosystem is contributing to the development of new payment solutions, including buy-now-pay-later (BNPL), embedded finance, and cross-border payment systems.

Despite this strong progress, challenges remain. Cybersecurity concerns, regulatory complexities, and the need for continuous infrastructure upgrades require ongoing attention. However, collaboration between regulators, banks, and fintech players continues to strengthen the overall ecosystem.

Looking ahead, Saudi Arabia is well-positioned to become one of the leading digital payment markets globally. The shift toward cashless transactions is not just a technological change, it represents a broader transformation in consumer behavior and financial systems. As adoption continues to rise, digital payments are expected to play an even more central role in shaping the future of commerce in the region.

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Saudi Arabia, UAE and Oman Activate New Cargo Routes to Counter Strait of Hormuz Risks

Amid rising geopolitical tensions in the Gulf region, countries in the area have begun activating alternative logistics corridors to prevent potential disruptions in the Strait of Hormuz, one of the world’s most critical maritime trade chokepoints.

Saudi Arabia, the United Arab Emirates and Oman are reorganizing cargo flows through new land, rail and port connections to ensure that regional trade continues without interruption. These measures effectively create alternative cargo routes to mitigate risks related to the Strait of Hormuz.

In Saudi Arabia, a new logistics corridor program launched by the Saudi Ports Authority (Mawani) is linking Red Sea ports with Gulf markets. Jeddah Islamic Port, King Abdullah Port, the Yanbu ports, NEOM Port and Jazan ports have been positioned as key hubs within the new system. Containers arriving at these ports are transported by road to markets such as Kuwait, Bahrain, Qatar, the UAE and Oman, reducing trade dependence on the Strait of Hormuz.

UAE Identifies Alternative Routes to Hormuz

The United Arab Emirates is implementing a similar strategy. Part of the cargo traffic is being redirected to east-coast ports on the Gulf of Oman, including Fujairah and Khor Fakkan. Cargo arriving at these ports is then transported by road by DP World to Jebel Ali Port and other logistics centers.

At the same time, the national rail network operated by Etihad Rail has become an important part of the supply chain. Over the past nine days, more than 100 train trips have transported approximately 459,000 tonnes of cargo and nearly 8,000 containers.

Oman, meanwhile, is positioning the ports of Sohar, Duqm and Salalah as regional alternative gateways. The government has introduced new measures to accelerate customs and logistics processes, while facilitating transit operations through the Bayan electronic customs system.

Gulf Countries Handle a Significant Share of Cross-Border E-Commerce Shipments

These developments are not only critical for energy and industrial supply chains but also for global e-commerce logistics. As a major trade hub between Europe and Asia, Gulf countries handle a significant share of cross-border e-commerce shipments.

With the development of logistics corridors that bypass the Strait of Hormuz, e-commerce companies can maintain more secure and uninterrupted supply chains, particularly for electronics, fashion and consumer goods that require fast delivery.

According to experts, the new logistics infrastructure being established in the Gulf will not only serve as a safeguard during periods of crisis but will also strengthen the region’s strategic role in global trade and e-commerce logistics in the long term.