How intellectual property defines success in a changing world: Insight from Strategic Gears
Saudi Arabia is undergoing a rapid transformation that is shifting the focus of its economy from physical resources to the power of human creativity. In a new podcast episode from Strategic Gears, Anas Al-Hraibat breaks down the importance of intellectual property.
In the modern world, wealth is no longer found only in precious resources or derived from large factories. It is increasingly found in the strength of ideas. That is according to Al-Hraibat, manager at international management consulting firm Strategic Gears and an expert in intellectual property (IP), who suggests that we are now living in a global economy driven by innovation rather than physical objects.
This shift is clearly reflected in the most recent UN Global Innovation Index, where Saudi Arabia climbed to 46th place in 2025. This move marks a significant leap from its 66th position only a few years ago and demonstrates the steady progress the nation is making toward its future goals.
According to Al-Hraibat, intellectual property is the essential bridge that connects a creative thought to a successful business. It covers everything from the specific name of a coffee shop to the secret code inside a smartphone. While many people think of property as land or buildings, the modern business world values ideas much more.
“In the past, company valuations were based on tangible assets,” said Al-Hraibat. “Today, we are in an economy of ideas. More than 90% of the valuation of S&P 500 companies consists of intangible assets, such as brands, reputations, trademarks, and patent portfolios.”
Important of IP laws
Al-Hraibat explained that without the laws that protect these ideas, there would be very little reason for a company to spend money on expensive research and development.
To support this new direction, the Kingdom has launched the National Intellectual Property Strategy as a key part of Vision 2030. This plan is built on four core areas of focus. It encourages individuals and companies to generate new ideas. It also ensures these ideas are managed efficiently through the Saudi Authority for Intellectual Property.
The strategy also aims to help businesses make money from their creations by bringing them to the market. Finally, it creates strong legal protections to ensure that creators are respected and that their work is not stolen. Al-Hraibat notes that these efforts are turning Saudi Arabia into a global center for research and creativity, which attracts investors from all over the world.
How protecting IP works
One of the most common ways to protect an invention is through a patent. However, this process requires a great deal of patience. It can take anywhere from 12 to 36 months for a patent to be officially granted. During this time, experts must review every detail of the invention to ensure it is truly special.
“The Saudi Authority for Intellectual Property (SAIP) has streamlined the registration process,” said Al-Hraibat.
“Patents still take time because they require a technical evaluation by experts to ensure they meet three conditions: Novelty (being the first to create it), an inventive step (it must require sophisticated research), and utility (it must be capable of being manufactured and used).”
While patents are a powerful tool, they are not the only option for a business. The reality for companies is they must make a strategic choice between filing for a patent or keeping their discovery as a trade secret.
The value in keeping secrets
A patent gives a company the exclusive right to use an invention for twenty years, but in exchange, the company must share all the details of how the invention works with the public. On the other hand, a trade secret is never registered with any government office. It is kept completely hidden from the world, much like the famous recipe for Coca-Cola or the secret blend of herbs used by Kentucky Fried Chicken.
Many companies in the technology sector often prefer to use trade secrets. This is because the world of technology moves so quickly that an invention might become old and useless before the patent office even finishes its review. By keeping their methods secret and using legal agreements to prevent employees from sharing information, these companies can stay ahead of their competitors while they work on the next version of their product.
Al-Hraibat points to the example of the famous burger chain Burger King, which had to change its name to Hungry Jack’s when it expanded to Australia because someone else already owned the rights to the original name there. This story serves as a reminder that protecting ideas is a complex task that requires careful planning and a deep understanding of the law.
As Saudi Arabia continues to rise in global rankings, it is clear that the nation is building a future where the next great invention is always encouraged and protected. As part of the ongoing efforts to diversify its economy – much in line with the strategic goals of Vision 2030 – the Kingdom has much to gain from IP in the variety of sectors the economy has been branching out to.
