AI Is Reshaping Saudi Arabia's Venture Capital Landscape

The words "Artificial Intelligence" are seen alongside a keyboard and robotic hands in this illustration. (Reuters)
The words "Artificial Intelligence" are seen alongside a keyboard and robotic hands in this illustration. (Reuters)
TT

AI Is Reshaping Saudi Arabia's Venture Capital Landscape

The words "Artificial Intelligence" are seen alongside a keyboard and robotic hands in this illustration. (Reuters)
The words "Artificial Intelligence" are seen alongside a keyboard and robotic hands in this illustration. (Reuters)

Saudi Arabia is moving rapidly to cement its position as the region's leading hub for venture capital. That ambition was reflected in a record 38 percent increase in the number of investors backing Saudi startups, bringing the total to 194, driven by a 65 percent rise in international investor participation.

Reflecting this momentum, Amal Dokhan, Managing Partner at global investment firm 500 Global, which manages $2.3 billion in assets, outlined the contours of the Kingdom's evolving investment landscape in an exclusive interview with Asharq Al-Awsat. She said artificial intelligence is no longer simply an added feature but has become the primary tool for reshaping business models and building sustainable competitive advantages that will pave the way for the region's next generation of billion-dollar companies.

Speaking on the sidelines of the Global AI Show, held in Riyadh on June 29 and 30, Dokhan said Saudi Arabia offers a rare combination of qualities that investors seek. These include strong government support for innovation, a digitally savvy population, abundant capital, and ambitious goals to diversify the economy.

She added that what makes the Saudi market particularly attractive is that it is not only witnessing broader adoption of emerging technologies but also a simultaneous transformation of business models across multiple sectors. This creates opportunities for founders to build companies capable of redefining their markets rather than merely offering incremental improvements.

Betting on Artificial Intelligence

Dokhan expects the region's next wave of billion-dollar technology companies to emerge in sectors that align with Saudi Arabia's strategic priorities. These include AI-powered enterprise software, fintech infrastructure, health technology, logistics and supply chain technologies, climate and energy technologies, industrial technologies, and platforms that support the digital transformation of government entities and large enterprises.

She noted that 500 Global is placing increasing emphasis on startups developing the infrastructure needed to enable AI adoption, rather than companies that simply add AI as another feature within existing products. She added that the most valuable companies will be those with proprietary data, control over core business workflows, or distribution channels whose value increases as AI adoption expands.

Building a Sustainable Competitive Advantage

On improving startup economics, Dokhan explained that lowering customer acquisition costs is not simply a matter of reducing marketing spending. Instead, it requires building systems that make customer acquisition more efficient as a company grows.

She said AI and automation help improve customer targeting and qualification, streamline onboarding, and strengthen customer retention, increasing conversion rates instead of relying on higher marketing expenditures.

Dokhan stressed that technology alone no longer provides a sustainable competitive advantage as AI tools become more widely available. Instead, differentiation increasingly depends on proprietary customer data and insights, strong brand trust, and robust distribution channels.

She added that the strongest companies are not those focused solely on reducing customer acquisition costs, but those that successfully balance customer lifetime value against acquisition costs. Every customer interaction should generate data that helps improve products, enhance the user experience, and reduce future acquisition costs, creating a competitive advantage that is difficult for rivals to replicate.

Scaling Efficiently

On scalability, Dokhan said venture capital investors are looking for companies that can expand their customer base and enter new markets while growing revenue faster than operating expenses. In other words, business expansion should not be matched by a proportional increase in costs.

She added that investors seek founders who build scalable operating systems rather than businesses whose growth depends primarily on hiring more employees. She also stressed the importance of reviewing repetitive functions in customer service, compliance, and reporting with the goal of automating them from the earliest stages.

Achieving this, she said, requires early investment in scalable technology infrastructure, including robust data architecture, API-driven design, and modern cloud-based systems. This enables companies to serve thousands of additional customers without a corresponding increase in staffing or operational infrastructure, ultimately improving profit margins as the business grows.

Operational Resilience and Risk Management

On cybersecurity, Dokhan said cyber risks are no longer merely an issue for IT departments but have become a key factor in company valuations and their ability to attract investment. A security breach or prolonged system outage can affect revenue, customer confidence, regulatory compliance, and access to future funding.

She added that growing reliance on data and artificial intelligence is also increasing the economic cost of security vulnerabilities, making cybersecurity an integral part of business strategy rather than simply a technical requirement.

Dokhan said investors expect founders to approach cybersecurity with the same discipline they apply to financial controls. This includes establishing clear governance frameworks, conducting regular security reviews, developing disaster recovery plans, implementing access controls and data protection measures, providing ongoing employee training, and continuously monitoring systems.

She concluded that operational resilience has become a competitive advantage in its own right. Customers, large enterprises, and investors are placing greater importance on a company's ability to detect, contain, and recover quickly from security incidents, strengthening trust and reinforcing long-term enterprise value.



Al-Moammar Receives First Work Order Under HUMAIN Agreement, Worth More Than 148% of 2025 Revenue

A sign identifying Al-Moammar Information Systems Company in Riyadh (company website).
A sign identifying Al-Moammar Information Systems Company in Riyadh (company website).
TT

Al-Moammar Receives First Work Order Under HUMAIN Agreement, Worth More Than 148% of 2025 Revenue

A sign identifying Al-Moammar Information Systems Company in Riyadh (company website).
A sign identifying Al-Moammar Information Systems Company in Riyadh (company website).

Al-Moammar Information Systems Company (MIS) has received its first work order under its agreement with HUMAIN, with a total value exceeding 148 percent of the company's total revenue for 2025, including value-added tax.

In a statement on Saudi Exchange on Sunday, the company said Work Order No. 1, received on October 1, covers the scope of work related to a capacity of 50 megawatts. This was the scope previously announced as part of a project to design and build data centers dedicated to artificial intelligence technologies.

The company said the financial impact of the work order began in the second quarter of fiscal year 2026.

The work order was received under an agreement signed by Al-Moammar Information Systems with HUMAIN last September, with a value exceeding 689 percent of the company's total revenue for 2025, including value-added tax. The agreement includes an expansion of the project's scope from 50 megawatts to 250 megawatts.

When the agreement was announced, the company said the engineering, procurement, and construction works would be carried out through work orders issued by HUMAIN in accordance with the terms of the agreement. The company would announce each work order upon receipt, including its value, implementation period, and financial impact.

Al-Moammar Information Systems expects to receive additional work orders related to the further expansion of the project in the coming period and will announce any material developments in this regard when they occur.


OPEC+ Agrees to Keep November Oil Output Targets Steady

FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
TT

OPEC+ Agrees to Keep November Oil Output Targets Steady

FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo

OPEC+ agreed to keep oil production targets steady for November at a meeting on Sunday, the producer group said, in line with expectations that further output policy adjustments are unlikely until next year.

Seven core members of the group comprising the Organization of the Petroleum Exporting Countries and allies including Russia made the decision for November in a brief online meeting on Sunday. The core members are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

Oil prices had dropped on Friday after European leaders agreed to US President Donald Trump's request to release diesel reserves. Even so, Brent crude remains above $100 a barrel, up from about $73 before the Iran war started in late February.

The Iran war has also delayed the group's output capacity review — crucial to determine members’ 2027 output quotas — because it has thrown estimates of future production potential into uncertainty, industry sources told Reuters last week.

OPEC+ has been raising output targets for much of 2026 after years of production cuts, but most of the increases stayed on paper because of the Middle East conflict.

The seven core OPEC+ members pumped 25 million barrels per day in August, up 630,000 bpd from July, yet still roughly 5 million bpd below prewar levels in February, OPEC data shows.

The seven hold their next meeting on November 1.

OPEC+ still has about 2 million bpd of output cuts in place covering most members. It needs the result of the capacity review to decide how to distribute increases and any changes to output are unlikely before 2027, sources have said.

A separate OPEC+ ministerial group called the Joint Ministerial Monitoring Committee (JMMC), which does not decide policy, also met on Sunday to review the market.


Saudi Arabia Announces Results of Natural Gas Distribution Licensing Competition in Al-Kharj

A worker at one of Saudi Aramco's gas facilities.
A worker at one of Saudi Aramco's gas facilities.
TT

Saudi Arabia Announces Results of Natural Gas Distribution Licensing Competition in Al-Kharj

A worker at one of Saudi Aramco's gas facilities.
A worker at one of Saudi Aramco's gas facilities.

The Ministry of Energy today announced the results of a competition for a license to establish, own, and operate a natural gas distribution network in the industrial city of Al-Kharj in central Saudi Arabia.

The ministry had previously invited interested investors to participate in the competition to obtain the license and completed the procedures for qualifying bidders, launching the competition, and evaluating the bids.

As part of the competition, Natural Gas Distribution Company was awarded a license to establish, own, and operate the distribution network in the industrial city of Al-Kharj.

The competition will contribute to the objectives of the Liquid Fuel Displacement Program and the replacement of liquid fuels with natural gas, with the aim of maximizing the economic, environmental, and social benefits that the Kingdom derives from its petroleum resources as part of Vision 2030.

The launch of the competition is part of the ministry's efforts to strengthen the natural gas sector's infrastructure and stimulate investment in the sector by creating an attractive competitive environment that enables beneficiaries to access natural gas and improves the quality of services provided.