Approaching Profitability: Saudi Arabia and UAE Expansion Plans for Dual Market Inclusion

Nun Company Nears Profitability, Plans Expansion into Saudi Arabia and UAE

Dubai, UAE – September 6, 2025 – Nun Company, an innovative online platform, is rapidly approaching profitability and is strategically positioning itself for meaningful growth in the Middle East. Chairman mohamed Al-Abbar recently announced plans for a dual market entry into Saudi Arabia and the United Arab Emirates within the next 24 months.

Focus on Cost Reduction and Automation

Al-Abbar highlighted the company’s commitment to efficiency through the implementation of self-delivery services. Rather than investing in purchasing robotic systems outright, Nun Company intends to utilize a rental model to minimize capital expenditure and maximize flexibility. This strategy aligns wiht a broader trend of companies embracing ‘as-a-service’ models for automation technology.

Workforce Conversion Through Technology

A major component of Nun Company’s strategy involves a phased reduction in its current workforce, which stands at approximately 40,000 employees. The goal is to decrease this number by as much as 50% by 2027, through increased reliance on automation, including self-driving technologies.The company anticipates 24/7 operational capacity with the integration of thes technologies. According to a recent report by McKinsey, automation has the potential to displace 400 to 800 million jobs globally by 2030, underscoring the increasing importance of workforce adaptation.

Financial Performance and Backing

Al-Abbar expressed confidence in the company’s improving financial metrics and the effectiveness of its technological advancements. Nun Company launched its online services in November 2016 with an initial investment of $1 billion. The Public Investment Fund, a sovereign wealth fund of Saudi Arabia, holds a 50% ownership stake in the company.

Key Metric	Details
Launch Date	november 2016
Initial Investment	$1 Billion
Major Investor	Public Investment Fund (50% Ownership)
Workforce Reduction Target (by 2027)	50%

Did You Know? The rise of robotics-as-a-service (RaaS) is enabling companies of all sizes to access advanced automation technologies without substantial upfront investment.

Pro Tip: Investing in workforce retraining programs is crucial for companies implementing automation to ensure a smooth transition and minimize negative impacts on employees.

What impact will automation have on the future of work in the logistics sector? do you believe a significant reduction in workforce is a necessary step for companies to remain competitive?

The Growing Trend of Automation in Logistics

The logistics industry is undergoing a rapid transformation driven by advancements in automation and artificial intelligence. Companies are increasingly adopting technologies like robotic process automation (RPA), autonomous vehicles, and warehouse automation systems to improve efficiency, reduce costs, and enhance customer service. This shift is not merely a technological upgrade, but a fundamental restructuring of how goods are moved and managed across the supply chain.

Share your thoughts on Nun Company’s strategy in the comments below! Don’t forget to share this article with your network.

How do Saudi Arabia’s Vision 2030 initiatives, specifically the increase in Direct Foreign Ownership (DFO) limits, aim to enhance market accessibility and investor confidence for international institutional investors?

The Drive for Financial Market Diversification

saudi Arabia and the United Arab Emirates (UAE) are aggressively pursuing dual market inclusion – attracting both domestic and international investors – as a cornerstone of their economic diversification strategies. Historically reliant on hydrocarbon revenues, both nations are actively reshaping their financial landscapes to foster lasting growth and reduce economic vulnerability. This push isn’t simply about attracting capital; it’s about building robust, resilient, and globally competitive financial hubs. Key to this is enhancing market accessibility and improving investor confidence.

Saudi Arabia’s Vision 2030 and capital Market Growth

Saudi Arabia’s vision 2030 is the primary catalyst for its capital market reforms. The plan aims to transform the Kingdom into a global investment powerhouse. Several key initiatives are underway:

Tadawul Exchange Enhancements: The Saudi Exchange (Tadawul) is undergoing meaningful modernization, including the introduction of new products like futures contracts and increased focus on ESG investing.

direct Foreign Ownership (DFO) Limits: Gradual increases in DFO limits across various sectors are opening up the Saudi market to a wider range of international institutional investors. This is a critical step in achieving market liberalization.

NEOM and Giga-Projects: Massive projects like NEOM are attracting substantial foreign direct investment (FDI) and driving demand for capital market instruments. These projects represent significant investment opportunities for both local and international players.

Regulatory Framework Modernization: the Capital market Authority (CMA) is actively updating regulations to align with international best practices,focusing on openness and investor protection. This includes streamlining IPO processes and enhancing corporate governance.

UAE’s Proactive Approach to Attracting Investment

The UAE, already a well-established financial center, is further solidifying its position through strategic initiatives. Dubai International Financial Center (DIFC) and Abu Dhabi Global Market (ADGM) are central to this strategy.

DIFC’s Expansion: The DIFC is expanding its offerings to include a wider range of financial services, including fintech and digital assets. It’s actively courting fintech companies and establishing itself as a regional hub for innovation.

ADGM’s Focus on Sustainable Finance: ADGM is positioning itself as a leader in sustainable finance, attracting investors interested in environmentally and socially responsible investments.

Relaxation of Ownership Rules: The UAE has substantially relaxed foreign ownership rules in many sectors, making it easier for international companies to establish operations and access capital. This boosts market participation.

Strategic Partnerships: The UAE is forging strategic partnerships with leading global financial institutions to enhance its capabilities and attract investment.

Key Challenges to dual Market Inclusion

Despite the progress, several challenges remain:

1. Geopolitical Risks: Regional geopolitical instability can deter investors. Maintaining a stable and predictable investment climate is crucial.
2. Regulatory Complexity: Navigating the regulatory landscape in both countries can be complex for foreign investors.Simplification and harmonization of regulations are needed.
3. Data Transparency: Improving data transparency and availability is essential for informed investment decisions.
4. Liquidity Concerns: While improving, liquidity in some segments of the Saudi and UAE markets remains a concern for larger institutional investors.
5. Talent Acquisition: Attracting and retaining skilled financial professionals is vital for supporting market growth.

Benefits of Accomplished dual Market Inclusion

The potential benefits of successful dual market inclusion are substantial:

Economic Diversification: Reduced reliance on oil revenues and a more diversified economic base.

Job Creation: Growth in the financial sector will create new employment opportunities.

Increased FDI: Attracting more foreign direct investment will boost economic growth.

Enhanced Regional Influence: Strengthening financial markets will enhance the regional influence of Saudi Arabia and the UAE.

Capital Formation: Access to broader capital markets will facilitate investment in new projects and businesses.

Case Study: Saudi Aramco’s IPO

The 2019 IPO of Saudi Aramco, despite initial delays and complexities, serves as a landmark example of Saudi Arabia’s ambition to attract international capital.While not without its critics, the IPO demonstrated the Kingdom’s ability to execute a large-scale capital market transaction and attracted significant investor interest. It highlighted the potential for large-cap listings and the growing sophistication of the Saudi capital market.

Practical Tips for Investors

For investors considering opportunities in Saudi Arabia and the UAE:

Conduct Thorough Due Diligence: Understand the regulatory surroundings, market risks, and specific investment opportunities.

Seek Local Expertise: partner with local advisors and experts who have a deep understanding of the market.

Focus on Long-Term Value: invest with a long-term outlook, recognizing that market development takes time.

Consider ESG Factors: Increasingly, investors are prioritizing ESG factors. Focus on companies with strong sustainability practices.

Monitor Regulatory Changes: