In the bustling cities of Pakistan, a flexible workspace startup has quickly made its mark. Founded in 2019, COLABS has risen to prominence despite tough competition, including from Daftarkhwan, Hive, and Kickstart. COLABS is not just a flexible workspace provider, it also gives companies end-to-end assistance with setting up companies, including HR help. It has two fully operational offices at Shahrah-e-Faisal and Phase 5 in Karachi, along with four in Lahore, where it began its journey when it converted Pakistan’s oldest towel factory into what is now the COLABS flagship campus, and one upcoming site in Islamabad. “Our Shahrah-e-Faisal office is quite large, actually,” says Omar Shah, co-founder and CEO, in an exclusive interview with Business Recorder, “including the whole team of DigitalOcean (an AI company), which is 350 plus people.” Despite the growth, after much analysis of the local market, the startup concluded that even though Karachi generated higher revenue than Lahore, margins in Pakistan remained slim due to rising operational costs and a stagnant market. “If you want to scale and grow a business, Pakistan is good. But if you want to take a business to $100 million revenue, Pakistan might take another ten to fifteen years. Saudi might be maybe two, three years,” Shah told Business Recorder . COLABS team outside Riyadh office The startup had a choice: either continue growing slowly at home or venture into a new, high-potential territory. Their eyes turned to Saudi Arabia, a nascent market with 35 million people and huge consumer spending. “For context, in Saudi Arabia, the revenue is 10x Pakistan so just one location there will almost be equivalent to 70% to 80 % of our Pakistan business,” noted Shah. Pakistani workspace startup COLABS set to expand to Saudi Arabia Saudi Arabia’s Vision 2030 initiatives and demand for flexible office solutions presented a golden opportunity to the startup. “I mean, Saudi makes sense.” He found that a very large number of companies want to open in Saudi “on a daily basis.” Which means a huge demand for not just office space but someone who can help a company set up, two things COLABS believes it does best. The startup also believes it has an advantage because “the local competitors there do not do a good job.” However, the journey was not an easy one. It took a year of groundwork, building relationships and meeting local regulations, but the company has secured its first building in Riyadh, which is under construction. “If you want to take a business to $100 million revenue, Pakistan might take another ten to fifteen years. Saudi might be maybe two, three years,” COLABS CEO Omar Shah Pakistan and Saudi Arabia enjoy deep economic and strategic relationships, alongside sharing a similar culture, which all works to the advantage of a Pakistani startup, says Shah. “So it’s like Pakistan, but on steroids… nascent, upcoming, very few local players, but huge opportunity for new players to come and scale.” In a LinkedIn post, Shah noted that Saudi Arabia “represents a rare combination of scale, ambition, and momentum that’s unlike anything else in the region.” He explained that over the past two years, no tech ecosystem in MENA has grown faster than Saudi Arabia’s. “More than 40% of regional venture funding now flows into the Kingdom. But beyond the capital, what stands out most is the talent. The energy, skill, and intent I’ve seen here, from both locals and people who’ve chosen to move here, is remarkable,” he wrote. “Saudi is also producing the region’s most successful tech companies. From Salla to Foodics, and Tabby to Tamara, it’s now home to category leaders across fintech, SaaS, and commerce. Over the next two years, as many as 10 to 15 regional tech IPOs are expected, and the vast majority will be Saudi-headquartered.” At the same time, the country is investing deeply in AI infrastructure and creative industries, signaling a clear vision for the future; one where technology and culture drive the economy together. That alignment with our own philosophy made the decision easier,” he added. He said KSA is “a market that’s ready for a platform like ours, one that connects capital, talent, and creativity in a way that supports the country’s broader transformation.” Meanwhile he told Business Recorder that his advice for a Pakistani company entering Saudi Arabia is to start with a lean team “that does your sales, outreach, business development, and have a good back office in Pakistan that’s supporting that”. First public look of Riyadh campus in Al-Narjis, a well-connected neighborhood in the northern part of the city He said it’s important to keep in mind that similar to any foreign territory, it is initially very difficult to work in Saudi Arabia. “It requires grit and persistence. But once you’re in, it’s a very good market,” says Shah. Up till 2023, the startup had raised $5 million, which remains publicly disclosed. “We’ve just raised additional for Saudi, but we haven’t disclosed that amount publicly, but it’s a double-digit SAR number,” said Shah. For the time being, COLABS wants to stick to the Gulf region. “We would like to do multiple locations in Riyadh. We already see demand and opportunity” along with a long list of tenants. Meanwhile, back in Pakistan, the company has created the COLABS Creative Collective, which has blended art, entrepreneurship, and community, attracting not just startups but also enterprise clients and freelancers. This is something the company wants to replicate in KSA. COLABS Creative Collective mixer held earlier this year The profitable startup aims to achieve 3x revenue in the next year, a five-year target of $100 million, and eventually a regional footprint across MENA. “There’s no regional player that operates in Saudi Arabia, Qatar, Jordan, Pakistan, Bangladesh. And if we can take that market share in the next few years, I mean, we can get there,” said Omar. The co-founder now aims to build a company that runs itself, without his input. “I believe we have achieved 60%-70% of it, but it remains operationally heavy. We have a long way to go,” he concluded.