Sahm Capital's AI-Powered Growth Offensive: Capitalizing on Digital Expansion in 2025

The AI race has split into two tracks: the shiny hardware frontier and the powerful, often overlooked application layer. While chipmakers dominate headlines, Sahm Capital sees disproportionate growth potential in software, automation, and data infrastructure companies - the actual engines deploying AI value. This isn't just tactical; it's a core "growth priority" thesis. Even with the U.S. economy projected for modest expansion (1.25%-1.5% GDP growth), structural opportunities in these application layers justify overweighting them. Meanwhile, Sahm Capital sees clear dangers elsewhere. The strategy calls for exiting fixed income entirely, citing unsustainable fiscal deficits (the highest outside crisis periods) and elevated debt-to-GDP ratios combined with a terminal real interest rate of 3.75% making bonds unattractive. Gold emerges as a key hedge against de-dollarization pressures and a weakening U.S. dollar amid these fiscal strains. However, a critical risk looms: if inflation proves stubbornly above 3% in Q3 2025 ("inflation falsifier" scenario), it could simultaneously derail AI deployment momentum and undermine gold's traditional safe-haven appeal. The path forward demands selective focus on AI applications while navigating fiscal fragility and inflation uncertainty.

Sahm Capital is pulling off a remarkable growth offensive, rapidly expanding its digital ecosystem through strategic partnerships that are turbocharging user penetration. The scene is set in August 2025 when Sahm announced a pivotal alliance with WalaOne to enable loyalty point investments via its digital platform-a move designed to democratize capital market access and deepen financial inclusion. This partnership directly fuels Sahm's mission to build smarter investing ecosystems. According to reports, the partnership is a strategic move to expand market reach.

The Sahm App itself has become the engine of this expansion. Named 'Best Trading App Saudi Arabia 2025,' it captivated 1 million users within its first year. Its rapid uptake is powered by features like real-time market data, U.S. and Saudi market access, and 24-hour order placement-all backed by Nasdaq TotalView technology and Arabic-language tools to lower barriers for local investors. Sahm Capital further amplified adoption through financial literacy initiatives like the 'Invest Wisely Program' and an Arabic investor community. According to a report, the app has been recognized as the best trading app in Saudi Arabia.

Here's how this momentum breaks down:

• User Growth: 1 million users in 12 months. According to data, user growth has been strong.
• Market Penetration: Ranked 3rd in Saudi Arabia's 'Top Free Finance' Google Play category.
• Feature Adoption: 20+ tech updates including IPO subscriptions and Murabaha financing, driving daily engagement.
• Loyalty Integration: WalaOne partnership unlocked seamless investment of loyalty points.

Penetration rate-Sahm's core signal-is rising sharply because these tools meet real demand. But Sahm has a built-in guardrail: if monthly user additions decelerate below 100,000 post-Q3 2025, it would raise red flags about growth sustainability. For now, every partnership and feature rollout is accelerating adoption, proving that smart alliances and accessible technology create self-reinforcing momentum.

Saudi Arabia's financial market transformation is accelerating, with regulatory changes creating unprecedented growth opportunities for agile fintech players. Sahm Capital exemplifies this momentum: after securing its core CMA license (22251-25), the firm achieved a critical regulatory milestone in October 2024 by obtaining Managing and Arranging licenses. This expansion unlocks investment banking and fund operations capabilities, directly fueling scalability potential. The strategic timing aligns with Vision 2030's market diversification goals, further reinforced by Sahm's Platinum sponsorship at the Capital Market Forum 2025 (February 18-20). While regulatory progress removes barriers to growth, operational capacity emerges as the immediate constraint-scaling infrastructure must now keep pace with expanded service offerings. Investors should monitor regulatory approval timelines closely, as any stalling beyond Q1 2026 would constitute a negative catalyst for Sahm's expansion trajectory.

Sahm Capital's Sahm App has already demonstrated exceptional traction, crossing the 1 million user mark within its first year. This rapid adoption, fueled by features like real-time Nasdaq data, seamless access to both Saudi and U.S. markets, and a strong focus on financial education, positions the platform as a key disruptor in the Kingdom's retail investing landscape. Its recognition as 'Best Trading App Saudi Arabia 2025' and ranking in the Google Play 'Top Free Finance' category underscore the trust and innovation it has cultivated, making user growth the central narrative for its future value. Near-term catalysts will be critical in accelerating this momentum. An Oct 2025 feature rollout focused on IPO subscriptions is expected to unlock significant new trading activity among its large user base. Complementing this, the integration of Murabaha financing in Q1 2026 could further enhance user liquidity and participation in capital markets. Sahm Capital's growth trajectory, measured by monthly user acquisition, will be the primary driver of its potential. The penetration rate remains the key variable to monitor. We see three distinct scenarios:

• Bull Case: Aggressive user acquisition exceeding 120,000 new users per month, sustained by strong product updates and the impact of the IPO feature and Murabaha integration. This rapid penetration signals deep market acceptance and strong network effects, potentially accelerating AUM growth and platform stickiness.
• Base Case: User growth stabilizing near the current pace, around 70,000-100,000 new users monthly. This reflects continued product iteration and education efforts meeting market demand, supporting gradual AUM expansion and platform maturity, but may indicate less explosive growth potential.
• Bear Case: User growth falling below 70,000 new users per month in Q3 2025. This slowdown would raise concerns about market saturation, increased competition, or diminishing returns from current educational initiatives, potentially dampening future AUM growth and platform engagement.

Our investment stance hinges directly on this user growth rate. We see Sahm Capital as a growth offensive play. If the monthly penetration rate consistently exceeds 120,000 new users, it validates the platform's dominant market positioning and justifies increasing our position. Conversely, a sustained drop below 70,000 users in Q3 2025 would signal a potential base case flip, requiring a reassessment of its growth narrative and valuation. The upcoming catalysts and the market's response to them will be the decisive factors in determining which scenario unfolds.