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Predictions 2025: The year ahead for startup innovation

Turbostart MEA’s Ravi Rao shares how marketers can remain competitive as startups in AI, fintech, sustainability and first-party data continue to reshape industries.

Ravi Rao on the year ahead for startup innovation.
Ravi Rao on the year ahead for startup innovation.

The Middle East’s startup ecosystem is experiencing unprecedented growth, driven by a surge in venture capital, government-backed initiatives and technological advancements. As Saudi Arabia and the UAE position themselves as global innovation hubs, the ripple effect on brand building and marketing strategies is profound.

The rapid adoption of artificial intelligence (AI), fintech solutions, sustainability-focused startups and first-party data strategies is redefining how businesses connect with consumers.

Several startups in the region and worldwide can help you do better for your organisation. Make use of them.

AI and personalisation: The new marketing powerhouse

Artificial intelligence is no longer just a futuristic concept but a transformative tool shaping marketing strategies. Startups leveraging AI for data-driven decision-making, predictive analytics and customer engagement are attracting significant investment. Brands that embrace AI-powered personalisation can offer hyper-relevant experiences, ensuring deeper customer connections and higher conversion rates.

Majid Al Futtaim’s launch of Precision Media, an AI-driven retail media platform, exemplifies how first-party data is being harnessed to optimise advertising spend and enhance consumer engagement in real-time.

Fintech’s role in enhancing customer experience

The fintech revolution is reshaping the way consumers transact, offering seamless and convenient payment solutions. Startups such as Tabby and Tamara have pioneered buy now, pay later (BNPL) models, allowing brands to expand their customer base by providing flexible payment options.

These fintech integrations empower marketers to implement smarter, data-driven loyalty programmes and targeted promotions, increasing retention and purchase frequency.

Sustainability and the green economy: a marketing differentiator

The growing emphasis on sustainability in Saudi Arabia and the UAE presents new opportunities for brands to align with eco-conscious consumer values. With governments pushing net-zero carbon initiatives, startups in green technology and sustainable retail are attracting attention. Landmark Group’s investment in textile recycling showcases how large brands can partner with a sustainability-focused startup to enhance their corporate social responsibility efforts while appealing to a new generation of environmentally aware consumers.

Read more predictions for 2025 from industry leaders here. 

 

Power of first-party data in a cookieless world

As third-party cookies phase out, first-party data has become an invaluable asset for marketers. With consumers demanding greater data privacy and regulators tightening compliance laws, businesses that build direct relationships with their audience will have a competitive advantage.

Brands can leverage loyalty programs, CRM systems and AI-powered analytics to extract actionable insights. Noon, Namshi and Careem are already capitalising on first-party data to refine their targeted marketing strategies and enhance customer experiences. Landmark and Al Shaya have now joined in to streamline and capitalise on this, while also monetising first-party data, resulting in a new revenue stream.

Women-led startups – A new wave of innovation

The Middle East is witnessing a rise in women-led startups, particularly in fintech, edtech and health tech. These businesses are not only breaking barriers, but also driving fresh perspectives in marketing and product innovation.

Initiatives such as Google’s Startups Growth Academy: Women in AI programme highlight the importance of investing in diverse leadership and innovation. For brands, collaborating with a women-led startup presents an opportunity to enhance inclusivity, tap into emerging markets and drive engagement with a broader audience.

Future of brand and marketing in the Middle East

As startups in AI, fintech, sustainability and first-party data continue to reshape industries, brands and marketers must evolve their strategies to remain competitive. The intersection of innovation and marketing
is no longer optional, but a necessity for sustained growth.

For marketing and advertising professionals, the challenge is clear: embrace emerging technologies, invest in data-driven strategies and align with the region’s innovation ecosystem to craft more impactful brand experiences. Those who fail to adapt risk being left behind in a rapidly transforming landscape.

Decades ago, the maxim was ‘be a specialist’ as no generalist can survive anymore in the era of digital. Now, the focus is on learning as many things as you can so you are well-rounded. Multi-disciplinary skills are best suited in marketing and advertising agencies. Two things are sure to happen.

• Most companies in 2025 will cut talent between 7 and 10 per cent thanks to efficient operations by deploying AI. Take the lead and upskill yourself and your team.

• AI is saving time, money and future.

Learn AI. A good marketeer or a good agency person can be a better professional if you understand, adopt and implement AI in your daily work – from mundane operations that are repetitive by nature, to content and media.


By Ravi Rao, Founding Partner & CEO, Turbostart Middle East and Africa