Sarahah, an app developed to encourage honest workplace feedback, has so far attracted 85 million users worldwide. Fayez Nureldine / AFP
Sarahah, an app developed to encourage honest workplace feedback, has so far attracted 85 million users worldwide. Fayez Nureldine / AFP

Sarahah: Saudi honesty app goes global with 85m users



Fizzing with boyish exuberance, Saudi programmer Zainalabdin Tawfiq could be mistaken for a college freshman, but the popularity of his "honesty" app has shone a spotlight on the kingdom's nascent tech scene.

Tawfiq catapulted to fame when he took time out of his day job as a business analyst last year to develop an anonymous messaging tool called Sarahah - honesty in Arabic - that subsequently topped the charts for app downloads.

Initially conceived as a tool for soliciting bluntly frank workplace feedback, Sarahah has found its way into the smartphones of millennials worldwide, even as critics have raised alarm about trolling and privacy issues.

"Sarahah is the digital equivalent of an old-school suggestion box," 29-year-old Tawfiq told AFP, adding that it is built on the premise that stripping users of their identity promotes ruthless honesty.

"Feedback is the goal - anonymous feedback."

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The app has a frugal design and a simple prompt that encourages users to "leave a constructive message :)", with the recipient not allowed to reply but only share it on social media or block the sender.

Its mass appeal stems from the appetite in the Arab world for unfiltered platforms for expression, though Tawfiq said it has also gained a strong popularity in Western countries.

Such has been its power to knock down social barriers that obstruct free speech that one user described it as an app where you can "hit enter on comments you would have otherwise backspaced".

Sarahah has so far drawn 85 million registered users, and rocketed to the top of the Apple app store in some countries, ahead of heavyweights such as Snapchat and Instagram.

That a Saudi app could gain such success spotlights hidden potential for tech innovation and entrepreneurship at a time of economic transformation in an ultra-conservative country.

"The success story of Sarahah really proves that Saudi startups can achieve spectacular gains when properly supported," said Nawaf Alsahhaf, chief executive of Badir, a government-backed technology incubator that helped Tawfiq.

"There truly is undeniable potential behind Saudi startups we currently incubate," he told AFP.

Saudi Arabia is promoting private enterprise as part of its ambitious reform program to move the kingdom away from its dependence on oil revenues.

"It is clear oil's decline and entrepreneurship's rise are necessarily intertwined," the Beirut-based venture capital firm Leap Ventures wrote on its website last year, noting a new growth in disruptive tech innovations in the region.

A new breed of Saudi startups -- from an on-demand roadside assistance app called Morni to Hunger Station, a food ordering portal -- have recently drawn the attention of venture capitalists.

Tawfiq said he is in negotiations with venture capitalists from the United States, China and the Arab world, without disclosing details, in response to critics who question whether his app can be effectively monetised.

Sarahah has come under fire for being a troll magnet -- but Tawfiq said that problem was common to all major social media platforms.

It has also recently been accused of secretly harvesting the address books of users. Tawfiq rejected that claim and said he plans to remove Sarahah's address upload feature with the next update.

He currently runs a tight ship with another business partner and three customer support executives, but is considering leaving his day job to focus on Sarahah full time.

"I believe that even one case (of abuse) is actually too many," Tawfiq said. "I won't tell you how, but my aim is to make the job of misusers as difficult as possible."

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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

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