May 30, 2025

AI continues to eat VC for breakfast... but how is SaaS faring?

I've been wanting to do an issue on AI for some time now, and it seems Magnitt has been reading my mind—just yesterday they shared a map of AI initiatives in the region, which beautifully complements some notes I sketched during my research.

And then there’s the new power couple of 2025; Saas & AI. Did you know that 70% of SaaS companies are now using AI?

Cherry on today’s cake: Insights from Gameball’s co-founder Ahmed Khairy.

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AI was eating VC for breakfast in 2024 when it accounted for over 50% of global VC dollars. Turns out, if you sprinkle “AI” on your pitch deck, it’s like a magnet for term sheets.In the region, AI is expected to drive the local VC market to a projected $6.19 billion by 2030.

We can safely say today that the GCC is planting its flag as a global AI capital.

🇸🇦

  • Saudi Arabia will launch a $10 billion AI venture fund “Humain Ventures”this summer through its new company Humain. This is one of the largest capital pools globally dedicated to AI startups. Think of it as OpenAI’s Saudi cousin. The fund will invest across the US, Europe and Asia, with an explicit goal of placing Saudi Arabia at the heart of the global AI ecosystem. Their ambition? Handle 7% of the world’s AI training & inference by 2030. Humain already secured USD 15B in AI investments from AMD and AWS. Do I need to add that they’re building 6.6GW of data center capacity by 2034 – basically, enough to run Skynet (a self-aware AI from the Terminatorfranchise)?
  • 2024 saw the Saudi government pledge $1 billion for GAIA, Saudi’s generative AI startup accelerator program.

🇦🇪

  • Not to be outdone, UAE’s MGX Fund Management is aiming to manage $100 billion in AI assets. They’ve teamed up with OpenAI, Microsoft and Oracle, and are behind Stargate, a project that sounds like science fiction but is actually a mega AI data center. (Note: Announced in January, The Stargate Project is aiming to invest up to $500 billion over the next four years to build AI data centers, primarily in the United States.)
  • They also recently signed a deal with OpenAI which will provide all UAE residents with nationwide access to ChatGPT Plus.

🇶🇦

  • Qatar has has a multi-billion war chest to fuel AI investments. The country has unveiled a $2.5 billion incentive package to boost investment in AI and digital innovations.

🇴🇲

  • Oman is the surprising underdog, joining the race with bold investments like its stake in Elon Musk’s xAI. The sultanate is emerging as a contender in AI space, with investments reaching $155.9 million in 2024.

🇰🇼

  • Earlier this year, the Government of Kuwait has entered into a strategic partnership agreement with Microsoft to help accelerate digital transformation efforts in line with Kuwait’s Vision 2035, including the launch of an AI data center and a center of excellence in cloud auditing.

🇧🇭

  • Not-VC-news-but-still-cool: Bahrain Space Agency launched its first AI-powered satellite payload for cloud detection and identification of satellite imagery.

Looking ahead, brace for more:

  • Mega rounds for AI-native startups
  • State-backed giga-funds in the GCC
  • Arms races for GPU chips and data centers (GPU = graphics processing unit)
  • Venture tourists saying “this is the year of AI” for the fourth time…

The new power couple of 2025: SaaS and AI AI (agentic AI to be precise) is reshaping the SaaS landscape by automating tasks that previously required multiple software tools or human input.In practice – globally:

  • 70% of SaaS companies are now using AI, the rest live under a rock.
  • Subscription pricing is not enough. Usage-based pricing is in. That means some companies already started charging for actual compute, not how many “seats” you have.
  • Legacy SaaS players are getting nervous as AI-native upstarts roll in with slicker products and smarter automation.

I spoke to Gameball’s co-founder Ahmed Khairy about the impact of AI on their business. Quick recap: Gameball is a SaaS startup that uses gamification to offer intelligent and customizable loyalty and rewards programs, behavior-based notifications and referral management system, all within a single gamified experience.

‍Has AI impacted Gameball’s pricing model?

‍“AI is definitely shifting how we think about value delivery and pricing. While subscription isn’t “out,” it’s no longer enough. At Gameball, we’ve been experimenting with value-based pricing models tied to engagement outcomes, not just usage or features. AI lets us track and prove impact in ways that justify more dynamic models.”

‍How has it impacted your product roadmap?

‍“We’re moving toward predictive loyalty and intelligent user journeys. AI allows us to pre-empt churn, suggest optimal rewards, and personalize at scale. It’s speeding up cycles and elevating the whole product strategy.”

‍Is MENA’s SaaS M&A landscape heating up?

‍“We’re definitely seeing a shift. The consolidation game has started, especially for companies that own a niche or have built strong vertical moats. AI-driven differentiation is becoming a magnet for acquisition, and MENA’s SaaS ecosystem is now mature enough to spark serious interest, both regionally and from global players.”We’re no venture tourists at Arzan VC, but 2026 will be the year of AI… for the fifth time.

Eid Mubarak!

Hasan

TL;DR

AI ate half of global VC in 2024 and is now reshaping SaaS into its sidekick. The GCC is going all-in: Saudi’s $10 billion Humain wants to run 7% of the world’s AI, UAE’s MGX is managing $100 billion in AI assets (hello, Stargate), Qatar’s packing $2.5 billion and Oman’s quietly joining the race. Globally, 70% of SaaS players use AI, usage-based pricing is rising and M&A is heating up. Gameball’s co-founder Ahmed Khairy says AI is rewriting how they build, price and grow—proof that SaaS + AI is the power couple of 2025.

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