Quantum Startup Pasqal Partners with Saudi Arabia’s KAUST to Advance Quantum Supply Chain Optimization
November 21, 2022
Introduction
Quantum computing has long been hailed as a technology that could transform industries requiring massive computational power. Among the most promising sectors is logistics, where optimization problems are notoriously difficult to solve using classical systems. On November 21, 2022, Pasqal, a French startup specializing in neutral atom-based quantum processors, announced a groundbreaking partnership with Saudi Arabia’s King Abdullah University of Science and Technology (KAUST).
This collaboration is aimed at exploring the role of quantum computing in advancing supply chain optimization across Saudi Arabia’s rapidly expanding logistics, industrial, and manufacturing hubs. Beyond technical goals, the agreement is significant in a geopolitical sense: it reflects the growing alignment between European deep-tech startups and Middle Eastern research and development institutions seeking to build future-ready economies.
Pasqal’s Technology: Neutral Atoms for Near-Term Quantum Value
Pasqal, founded in 2019 by French physicist Alain Aspect (Nobel Prize in Physics, 2022) and colleagues, has quickly become one of the most visible quantum startups in Europe. Unlike companies focused on superconducting qubits or trapped ions, Pasqal uses neutral atom arrays—ultracold atoms trapped and manipulated by lasers—to build its processors.
This approach has several advantages. Neutral atom processors offer high connectivity between qubits, low crosstalk, and potential scalability into the hundreds or thousands of qubits. These features are critical for solving combinatorial optimization problems, which are central to logistics applications. Supply chain challenges such as vehicle routing, dynamic scheduling, and real-time resource allocation fall into NP-hard problem classes. Pasqal’s platform is well-suited to explore these scenarios, especially in hybrid quantum-classical configurations.
By collaborating with KAUST, Pasqal gains access to regional industrial case studies that can serve as testing grounds for demonstrating practical quantum value in the logistics sector.
KAUST’s Role in Saudi Arabia’s Vision 2030
KAUST, located on the Red Sea coast, was established in 2009 as part of Saudi Arabia’s push to create a global center for scientific excellence. Under the Kingdom’s Vision 2030 plan, KAUST has become a cornerstone institution for developing cutting-edge research across AI, advanced materials, and logistics systems.
One of KAUST’s leading initiatives is its Smart-Logistics Innovation Lab, which integrates digital twins, AI-driven forecasting, and sensor-enabled supply chain monitoring. These systems have already been deployed in economic megaprojects such as NEOM and King Abdullah Economic City (KAEC). By introducing quantum computing into this framework, KAUST aims to position Saudi Arabia as a global testbed for future logistics infrastructure.
For the Kingdom, this partnership supports a broader diversification strategy. Logistics is identified as a pillar of the National Industrial Development and Logistics Program (NIDLP), which is tasked with turning Saudi Arabia into a regional trade and transport hub.
Quantum Use Cases in Supply Chain Optimization
The Pasqal-KAUST collaboration focuses on concrete applications of quantum computing in logistics. Among the priority use cases are:
Demand Forecasting and Inventory Optimization – Using quantum algorithms to model uncertain demand scenarios for spare parts and goods distribution.
Vehicle Routing Problem (VRP) – Quantum solvers could evaluate thousands of possible delivery routes in near real-time, significantly reducing costs and emissions.
Port Scheduling – Managing container berthing and yard logistics at Jeddah Islamic Port and Red Sea Gateway Terminal.
Multi-Objective Planning – Balancing efficiency, cost, and sustainability goals simultaneously, a task where classical methods struggle.
Early-stage work will use quantum-inspired heuristics that run on classical hardware while preparing to migrate to Pasqal’s neutral atom processors as they scale in performance.
Joint Research Goals and Milestones
To structure the collaboration, Pasqal and KAUST have set out a phased roadmap.
Phase 1 (Late 2022–2023): Establish joint teams, benchmark classical vs. quantum-inspired solutions, and define logistics scenarios of national importance.
Phase 2 (2023–2024): Deploy hybrid solvers via Pasqal’s Quantum Computing-as-a-Service (QCaaS) platform and publish comparative studies.
Phase 3 (2024 onward): Integrate quantum modules into existing logistics platforms such as ERP (SAP, Oracle) and digital twin systems at KAUST’s Smart-Logistics Lab.
The first benchmark results are expected to be released publicly in mid-2023, providing early insights into whether quantum logistics solutions can outperform classical methods in real-world conditions.
European-Middle Eastern Quantum Ecosystem Emerges
This partnership highlights a growing trend: European quantum startups are forming alliances with Middle Eastern institutions eager to leapfrog into the future of computing. For Pasqal, the collaboration represents both a market expansion and a validation of its technology’s industrial relevance.
France has positioned itself as one of Europe’s quantum leaders, with a €1.8 billion national strategy launched in 2021. Meanwhile, Saudi Arabia is investing heavily in frontier technologies to reduce its dependence on oil revenues. Quantum logistics, with its dual potential for efficiency gains and sustainability benefits, is emerging as a natural convergence point for both parties.
Funding and Strategic Context
The project is supported by multiple funding streams. KAUST is contributing through its Industry Collaboration Program, which aligns academic research with commercial priorities. On the European side, Pasqal is leveraging export grants designed to accelerate high-impact international deployments of French quantum technologies.
At the national level, the initiative dovetails with Saudi Arabia’s NIDLP, which has earmarked over $30 billion for logistics and industrial infrastructure by 2030. Quantum-enhanced optimization tools could provide a competitive edge for Saudi ports, air freight hubs, and integrated land transport corridors envisioned under Vision 2030.
Challenges and Considerations
Despite optimism, the deployment of quantum logistics solutions remains in its early stages. Pasqal’s processors, like all current platforms, are in the NISQ (Noisy Intermediate-Scale Quantum) era. This means algorithms must be carefully adapted to deal with noise and limited qubit counts.
Integration with existing enterprise software poses another challenge. Large-scale supply chains run on ERP platforms that are deeply entrenched in workflows. For quantum tools to gain adoption, middleware and hybrid solutions must ensure compatibility with existing systems.
KAUST and Pasqal are addressing these issues by adopting a staged approach—starting with quantum-inspired solutions, moving toward hybrid quantum-classical systems, and only later deploying full-scale quantum algorithms as hardware matures.
A Model for International Quantum Collaboration
The Pasqal-KAUST deal is significant not only for logistics but also as a demonstration of international quantum diplomacy. France, already a European leader in quantum science, is exporting expertise and fostering partnerships abroad. Saudi Arabia, meanwhile, is signaling that it is prepared to adopt and co-develop frontier technologies at scale.
If successful, the collaboration could serve as a model for other cross-border initiatives in quantum supply chain optimization. It may also inspire similar partnerships between other Middle Eastern innovation hubs and European or North American quantum startups.
Conclusion: A Quantum Leap for the Middle East
The November 21, 2022 agreement between Pasqal and KAUST represents a turning point in the application of quantum computing to real-world logistics. While challenges remain, the collaboration demonstrates how quantum technologies are beginning to escape the lab and address pressing industrial problems.
For Saudi Arabia, the deal fits squarely into its Vision 2030 blueprint, supporting the Kingdom’s ambition to become a global logistics hub. For Pasqal, it is a chance to validate its neutral atom technology on the international stage and demonstrate near-term value in supply chain optimization.
As the partnership progresses, the Middle East may emerge as one of the first regions to deploy quantum logistics at scale. If successful, this collaboration could serve as a template for future quantum-powered logistics ecosystems worldwide.