With Vision 2030, the Kingdom of Saudi Arabia has sent a clear statement of intent to be the world’s top global hub for innovation, sustainability and technology—with visionary projects of breathtaking ambition like NEOM, The Line and King Abdullah’s Economic City.

These projects are world firsts. Nothing of this scale has ever happened before. Anywhere else, they would be the stuff of science fiction. But in Saudi Arabia, we have the strong commitment, will, the talent and the capital, through the Sovereign Wealth fund, to make the impossible possible.  

At the heart of this vision to diversify the economy into new verticals is a push to create a homegrown technology sector, at the cutting edge of AI, robotics, data, analytics, blockchain, advanced manufacturing, and 5G. Technology is seen as a catalyst for growth across all sectors. There is also a well-thought-through roadmap to do it.  

But even with all the will, talent and capital in the world, innovation can only flourish under certain conditions. If you look closely at the tech start-up companies around the world, you’ll see that they aren’t built like conventional companies. They tend to have ‘flat’ structures, making fast decisions in agile tribes and empowered teams rather than the usual ‘top-down’ hierarchies we’re used to.  

Why? Because innovation requires speed, and hierarchy is the enemy of speed. It creates bureaucracy and slows down the decision-making process around everything from procurement to production. As the saying goes, innovative companies ‘fail fast and learn faster’. When introducing Vision 2030 it said, “we will be transparent and open about our failures as well as our successes”. Yet this notion of embracing failure appears to be a challenging concept in executing the vision. It requires some vulnerability and fearlessness. On the other side, we often experience leaders who don’t want to risk doing anything that might reflect badly on themselves, or more importantly, their superiors. So, decisions are deferred, causing delays and lack of productivity.   

Making these kinds of cultural shifts is no mean feat. It requires a CEO who not only understands innovation but is also a change agent. At the same time, this person needs to be someone who can influence people while respecting the national culture and proud heritage. And they will need to have the patience and resilience to persevere in the face of resistance.  

The question is, where do you find such a person? Is it better to develop a CEO from within, who already understands the local culture? Or someone from outside, who understands the culture of technology and innovation?  

One of the challenges we face when we assess Saudi candidates is that while they are full of potential, highly educated and very articulate, many have risen to senior executive level very fast. So, they do not yet have the leadership experience delivering the kind of transformational change that is needed. When we’re assessing potential CEOs, we look for at least 10 to 15 years’ experience.    

On the other hand, experience alone is no guarantee of success. So, hiring someone from abroad with a proven track record in tech or innovation may seem like the obvious solution—but if they’ve never worked abroad or understand the way things are done here, they may struggle to replicate that success. A lot of the work we do is about finding out whether these international executives have experience outside their home region, and whether they are adaptable and can stretch. Do they have strategic influencing skills? Do they understand how to obtain buy-in and followership in this part of the world? Do they understand the importance of relationships, hospitality, and paying respect in Saudi culture? 

Either way, hiring or developing the right CEO is only the first step. To be successful in the fast-paced world of tech and innovation, you need to have the right operating models, decision-making processes, leadership styles and mindsets. This isn’t the sort of something you need to do because everyone else is doing it. It is what you need to do to be innovative. 

Saudi Arabia has all of the necessary ingredients to realise its ambitions: a mandate for change from the very top, capital availability, and a young, educated, and talented population. To borrow an analogy from the world of technology, we have all the hardware; we just need to develop the right software.  

10 tips on how to find a great CEO

• Define and align the board on a detailed CEO profile of what traits they are actually looking for in their future leader
• Find and assess suitable candidates, internal and external, and narrow down the selection
• Keep the CEO succession process confidential
• Select the best choice for the company’s future
• Prepare chosen candidates for the CEO role, for example, through mentoring
• Ensure a smooth onboarding and transition process
• Sustain momentum around the program into the long term
• Maintain good relationships with the current CEO and other stakeholders
• Avoid starting a “horse race” prematurely
• Ensure unsuccessful internal CEO candidates are retained