Founded in 2019, COLABS has emerged as one of Pakistan’s most visible flexible workspace providers, carving out a strong position in a competitive market that includes players such as Daftarkhwan, Hive, and Kickstart. What began as a coworking concept has evolved into a broader platform that not only offers office space but also provides end to end support for companies looking to establish and scale operations, including human resources and administrative assistance. This expanded service model has helped COLABS attract both startups and large enterprises across major urban centers.
The company currently operates two large scale locations in Karachi at Shahrah e Faisal and Phase 5, alongside four sites in Lahore, where the business first took shape. One of its most notable projects in Lahore involved converting Pakistan’s oldest towel factory into what is now the flagship COLABS campus. An additional location in Islamabad is also in development. According to co founder and chief executive officer Omar Shah, the Shahrah e Faisal office alone houses more than 350 employees from DigitalOcean, highlighting the scale of enterprise demand the startup has been able to secure. Despite this growth, Shah explained in an interview that the economics of operating in Pakistan remain challenging. While Karachi generates higher revenue compared to Lahore, rising costs and limited market expansion have kept margins tight across the country.
After extensive analysis, COLABS leadership concluded that scaling to a much larger revenue milestone would take significantly longer within Pakistan. Shah noted that reaching a $100 million revenue mark domestically could require another decade or more, whereas newer regional markets offered faster growth potential. This assessment led the company to focus on Saudi Arabia, a market of roughly 35 million people with strong consumer spending and accelerating demand for flexible office solutions. Shah pointed out that revenue potential from a single Saudi location could be equivalent to a substantial portion of COLABS’ entire Pakistan business, making the opportunity difficult to ignore.
Saudi Arabia’s Vision 2030 initiatives, combined with increasing numbers of international and regional companies setting up local operations, have created demand not only for office space but also for setup support services. COLABS believes this aligns closely with its strengths, particularly as Shah observed gaps in how some local competitors deliver similar offerings. Entering the market, however, required patience. The company spent nearly a year building relationships, navigating regulations, and establishing local footing before securing its first building in Riyadh, which is currently under construction.
Shah also highlighted the cultural and economic alignment between Pakistan and Saudi Arabia as an advantage for Pakistani founders. He described the Saudi market as familiar yet amplified, with fewer established players and strong momentum. In public commentary, Shah has emphasized Saudi Arabia’s rapid growth as a technology hub, noting that a significant share of regional venture capital now flows into the Kingdom. He also pointed to successful Saudi headquartered companies across fintech, SaaS, and commerce, as well as expectations of multiple regional tech IPOs over the next two years.
From a funding perspective, COLABS had raised $5 million by 2023, which remains its last publicly disclosed figure. Shah confirmed that additional capital has since been raised specifically for Saudi expansion, though the amount has not been made public and is described as a double digit figure in Saudi riyals. For now, the company plans to remain focused on the Gulf region, with multiple locations in Riyadh already under consideration due to growing demand and an active pipeline of tenants.
Back in Pakistan, COLABS continues to invest in community building through initiatives such as the COLABS Creative Collective, which brings together art, entrepreneurship, freelancers, and enterprise clients. The company intends to replicate this blend of creativity and commerce in Saudi Arabia. Looking ahead, COLABS is targeting a threefold increase in revenue over the next year, a five year goal of reaching $100 million, and a broader footprint across the MENA region. Shah has also shared his ambition to build a company that operates independently of his day to day involvement, a process he says is underway but still operationally intensive.
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