HALA Capital doubles down on next tech frontiers

Saudi Arabia’s entrepreneurial transformation since 2019 serves as a foundational context for HALA Capital’s trajectory. (SPA)
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Updated 13 December 2025
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HALA Capital doubles down on next tech frontiers

  • Firm’s CMA license represents an expansion of its capabilities

RIYADH: Saudi Arabia’s HALA Capital is ready to double down on three of the Kingdom’s most strategic sectors as it prepares to deploy new investment structures and expand across fintech, artificial intelligence and logistics. 

With a newly granted license from the Capital Market Authority, the firm aims to position itself at the center of a rapidly evolving venture and mid-market landscape that is drawing increasing attention from global investors. 

In an interview with Arab News, Ali Abussaud, founder and CEO of HALA Capital, said the milestone reflects the firm’s readiness to scale its role in solving some of the region’s most persistent investment gaps. 

The CMA license represents an expansion of HALA Capital’s capabilities and long-term mission. 

Abussaud describes it as the realization of an ambition that once felt remote, saying it reflects accumulated knowledge, market experience and clarity on “what kind of gaps in the market — and also what kind of problems — we are going to end up solving.” 

He says that Gulf mid-cap and legacy firms remain among the region’s most underserved segments. 

Many operate “giant” businesses yet avoid bank financing or lack the structural support required to scale. 

HALA aims to fill this niche as a “boutique capital house,” providing attention and customization that larger financial institutions “don’t have the time to sit and listen and do.” 

Early venture beginnings 

HALA Capital’s current strategy is rooted in a time when venture activity across the Middle East and North Africa was limited and fragmented. 

Abussaud, who moved into investing after a career in banking and corporate consulting, recalls that he and his partners eventually began questioning “why there was no venture capital in the region.” 

Their first genuine venture-style deal came in 2016 with a Dubai insurance tech startup, an experience that exposed how challenging it was to assess early-stage companies using traditional financial criteria. 

For HALA, a Saudi startup ‘has to be today,’ with active operations, commercial registration and the ability to sell locally.

Ali Abussaud, founder and CEO of HALA Capital

Abussaud says they initially rejected startups because the numbers did not align with established expectations. Their approach changed only when they shifted their focus to founders and long-term vision. 

Between 2016 and 2019, HALA and its partners invested their own capital into 12 startups before formalizing the model. 

AI at early stage 

HALA views the regional AI market as still at its foundation stage. “The market has not really started yet,” Abussaud says, warning that many founders present offerings that are not genuine AI but simple integrations with external large language models. 

He argues the market needs original, regionally tailored models. 

Logistics innovation 

In logistics — “one of the biggest sectors we have,” he says — founders often misstep by attempting to compete directly with legacy operators in first- and last-mile delivery. 

HALA instead prioritizes models that “invent something” new and collaborate with incumbents through frameworks such as offtake agreements. 

What founders must deliver 

Abussaud urges founders to approach investors with research and honesty. “At least do some research about us, about what we do, about what we focus on,” he says. 

Founders should avoid “overselling” or presenting a “perfect product.” Instead, he advises them to “just be yourself” and openly discuss challenges and uncertainties. 




HALA Capital’s CMA license represents an expansion of its capabilities and long-term mission.

Transparency enables investors to provide relevant guidance, introductions and support.  

His preferred founder profile is “stubborn, but at the same time coachable.” He avoids both extremes: founders who resist all feedback and those who accept every suggestion without conviction. 

Skills balance is crucial — strong selling ability, relevant work experience and, for deep-tech companies, technical expertise. 

Defining a Saudi startup 

As more international founders target the Kingdom, HALA Capital has tightened its definition of what counts as a Saudi startup. 

A company qualifies if it has a headquarters or established operations in the Kingdom, regardless of the founders’ nationalities. 

An Egyptian-founded business with a relocated team and Saudi Arabia as its primary market qualifies. 

What does not qualify are startups that “want money in order to expand to Saudi Arabia.” 

For HALA, a Saudi startup “has to be today,” with active operations, commercial registration and the ability to sell locally. 

“It’s not the kind of market where you think you can do it remotely,” he says. 

On-the-ground presence, local sales teams and Saudi employees — especially for government B2B work — are essential.


Saudi youth turn to AI for art and culture

Updated 5 min 53 sec ago
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Saudi youth turn to AI for art and culture

  • Creativity, heritage and technology converge in a new generation of artists

RIYADH: As Saudi Arabia’s Vision 2030 places creativity, culture and technological innovation at the core of national development, the impact of these priorities is becoming increasingly visible across a wide range of disciplines and practices.

Through the use of artificial intelligence, young Saudis are integrating technology into their creative work both as a practical tool and as a medium in its own right. In doing so, they are expanding their capabilities, exploring personal and collective identity, and finding new ways to preserve and reinterpret cultural heritage.

“AI gives young Saudis a new way to interact with their own cultural inheritance,” said Dmitry Zaytsev, founder of Dandelion Civilization, a platform designed to help individuals shape unique professional paths.

Dmitry Zaytsev, founder of Dandelion Civilization. (Supplied)

“Traditional design elements such as calligraphy or geometric motifs were once difficult to modify. Experimentation required resources and formal approval. AI removes that barrier and makes exploration immediate. A creator can test many versions of a pattern and see which ones still feel authentic to them,” he told Arab News.

According to Zaytsev, this emerging form of expression does not signal a rejection of tradition, but rather a deeper engagement with it. “The young creator discovers what can change and what must remain constant. AI becomes a sketchbook that allows culture to evolve through curiosity rather than fear. When creators correct a model or push it toward local rhythm, they strengthen rather than dilute cultural identity,” he explained.

Sarah AlBaiz, an art adviser, researcher and artist, uses code to blend visual art with concepts drawn from culture and philosophy. While her early practice focused primarily on painting, her trajectory shifted during the 2020 AI Artathon, a pioneering international event highlighting collaboration between humans and machines in artmaking, where she discovered how to merge her engineering background with her creative work.

DID YOU KNOW?

• Saudi youth are using AI as a creative tool to reinterpret heritage, from calligraphy to folklore.

• AI is helping artists experiment faster without the traditional barriers of resources or formal approval.

• The Kingdom is backing creative AI nationally, with programs like SAMAI aiming to empower 1 million Saudis for an AI-driven future.

Operating within the field of computational creativity, where technology actively participates in the artistic process, AlBaiz explores themes of finance and faith. “Because they’re two sides of who I am,” she said. “When you talk about values, for example, that is both a term used in finance and trade from an objective perspective, but also moral and spiritual value.”

“When you understand prompting in AI, you can get it to produce almost anything. But it’s also informed by the training data it has,” she said.

Sarah Albaiz's "Diriyah II (2020)" melds a traditional Saudi landmark with the avant-garde. This generative artwork rejuvenates the historic Alsalwa Palace in Diriyah. By infusing Munira AlTheeb's artistry through GAN style transfer, the piece stands as a testament to the evolving narrative of Saudi heritage. (Supplied)

Rather than relying on a single platform, AlBaiz experiments with multiple AI models to test their limitations and audience reception. “I work a lot with language as well, so large language models are right up my street when it comes to computational creativity.”ee

Her work has gained international recognition. At the 2022 Islamic Arts Biennale in Jeddah, she co-created an artwork under the banner of Super Artistic AI that generated Al-Qatt Al-Asiri motifs from southern Saudi Arabia. The piece received an Audience Award.

Beyond her artistic practice, AlBaiz is developing an intelligent art advisory system aimed at helping users navigate the Saudi art landscape. Designed as an initial point of contact, the system would guide users through potential pathways before they engage with a human adviser.

Inverting established gender norms, Sarah Albaiz's digital collage reimagines masculinity. Set against a generative backdrop, its core message "real men cry" challenges familial WhatsApp discourses. (Supplied)

“It’s about understanding what role AI plays in the pursuit of what you want,” she said. “When I decided to focus on Qantara and building the advisory, I recognized that many of the systems required would need to be intelligent systems that offload a lot of work from me and the team.”

“When AI is an enabler rather than the end result, it becomes less intimidating because it feels risk-free for the end user,” she added.

Zaytsev echoed this idea, describing AI as a kind of rehearsal space. “Young people practice conversations, explore sensitive topics and organize their thoughts without social risk. This builds emotional clarity and confidence,” he said.

While generative tools such as large language models attract much of the attention, AI’s creative applications extend far beyond text and image generation.

Fairooz Alawami, trained as both an architect and engineer, uses AI to create self-expressive visual works inspired by dance.

Fairooz AlAwami's work. (Supplied)

“My practice is focused on contextualizing movement,” she said. “Because of my architectural training, I work with 3D modeling software called Rhino, which includes a visual coding language. Within that environment, you can also write code in Python, JavaScript or C#.”

Alawami employs OpenPose to analyze videos of her dancing by mapping points across her body. She then applies another computer vision model, MIDAS, which converts images or videos into depth frames. “If OpenPose gives me a skeleton, MIDAS gives me depth,” she explained. The resulting data is fed into 3D modeling software, where it is refined and manipulated into finished artworks.

She began dancing at a young age. “I didn’t find it, it found me,” she said. Movement later became the foundation of her artistic practice, leading to her first major project around three years ago while completing her master’s degree using the Grasshopper plugin. At the time, the workflow was slow and fragmented, but the arrival of ChatGPT helped streamline the process by making it easier to write and learn code.

Fairooz AlAwami's work. (Supplied)

“I think my love for dance and my love for art and design came together in a way that felt uniquely me,” she said. “Once I found that space, I just ran with it. It is my singular voice.”

Her work also draws heavily on cultural and musical heritage. One recent project was inspired by folklore referenced in the iconic song “Al Leila wa Leila” by Umm Kulthum. Alawami extracted musical stems from the track and mapped them to characters within the narrative. “The vocals were Shahrazad, the storyteller, and each stem represented a different narrative element,” she said. Earlier works were influenced by Islamic architecture and the geometric patterns found throughout Saudi Arabia and the wider Arab world.

“There are some incredible artists using generative AI to do very impressive things, and I don’t think I fall into that camp,” she said. “For me, AI is more like a skills-gap tool that helps me reach where I want to go.

“As humans, whether we realize it or not, the act of creating feeds us in some way. Lowering the barrier to entry makes creativity less intimidating.”

Opinion

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Today, Saudi Arabia’s creative sector is supported by expanding national infrastructure. Initiatives such as the Cultural Scholarship Program place Saudi students in more than 60 universities worldwide, spanning disciplines from archaeology and literature to design, filmmaking and culinary arts. In parallel, the Kingdom launched the SAMAI initiative last year, aiming to equip 1 million Saudis with the skills needed to engage confidently in an AI-driven world.

Within Vision 2030, culture, tourism, digitalization and AI are treated as strategic sectors rather than peripheral concerns. As Saudi Arabia develops its creative economy as a form of soft power, its youth are becoming increasingly digitally fluent. AI tools are now embedded within creative workflows, enabling a new generation to explore heritage, remix traditional aesthetics and develop narratives that resonate on a global stage.