Startup Wrap – Early-stage funding continues to capture interest

Saudi investment firm Naif Al Rajhi Investment has acquired a strategic stake in Jordan-based artificial intelligence Arabic content platform Mawdoo3. (Supplied)

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Updated 30 November 2024

Nour El-Shaeri

November 30, 2024 14:39

Startup Wrap – Early-stage funding continues to capture interest

Updated 30 November 2024

Nour El-Shaeri

November 30, 2024 14:39

CAIRO: Early-stage startups across the Middle East and North Africa region secure investments to drive innovation in sectors such as logistics, fintech, and climate tech.

Saudi-based Nama Ventures co-led Egypt’s Nowlun $1.7 million seed funding round along with venture capital firm A15.

The round also saw participation from Sanabil 500 Global and other angel investors.

Founded in 2021 by Moataz Khamis, Ahmed Emara, and Mahmoud Khaled, Nowlun’s platform provides businesses with access to real-time pricing across major shipping lines, enabling them to make faster and more informed decisions.

The company plans to utilize the raised capital for expansion and the development of its technology.

Mohammed Al-Zubi, founder of Nama Ventures, and Bassem Raafat, principal at A15, lauded the company’s mission and strategy.

Naif Al Rajhi acquires stake in Jordan’s Mawdoo3

Saudi investment firm Naif Al Rajhi Investment has acquired a strategic stake in Jordan-based artificial intelligence Arabic content platform Mawdoo3 for an undisclosed amount.

Founded in 2010 by Mohammad Jaber and Rami Al-Qawasmi, Mawdoo3 specializes in AI technologies and large language models tailored to the Arabic language.

The deal aligns with Naif Al Rajhi Investment’s focus on emerging sectors, while providing the Jordan-based firm with the resources to expand into the Saudi market.

Mawdoo3, which has raised $25 million over three funding rounds – including a $10 million series B in 2019 – is poised to strengthen its regional presence through this partnership.

Geidea expands SoftPos solution to Egypt after success in Saudi Arabia and UAE

Geidea, a prominent Saudi provider of digital payment solutions, is set to launch its SoftPos service in Egypt after successful rollouts in Saudi Arabia and the UAE.

The SoftPos technology enables merchants to accept secure contactless payments via smartphones, eliminating the need for traditional point-of-sale devices.

This expansion is part of Geidea’s strategy to drive digital transformation across the region by enhancing payment efficiency and accessibility for businesses of all sizes.

SoftPos allows merchants to process secure payments directly from smartphones, adhering to global data protection and transaction safety standards, the company explained.

Flat6Labs backs 10 Saudi startups in Riyadh Seed Program cycle

Flat6Labs, a seed and early-stage venture capital firm operating in the MENA region, has invested in 10 Saudi startups as part of its fourth Riyadh Seed Program cycle.

The startups span a variety of sectors, including e-commerce, logistics, Software-as-a-Service, and cybersecurity, and each received $133,000 in funding.

The initiative is supported by the Saudi Venture Capital Co., Jada Fund of Funds, and Riyadh Valley Company, with additional backing from the National Technology Development Program.

Since launching its Riyadh program in 2023, Flat6Labs has funded 41 startups, solidifying its role in fostering innovation in Saudi Arabia’s entrepreneurial ecosystem.

Sylndr secures $7.46m to boost Egypt’s used car marketplace

Egypt-based used car marketplace Sylndr has raised $7.46 million in a capital facility to support its operations and growth.

EFG Hermes acted as the sole financial advisor for the transaction, with financing provided by EFG Corp-Solutions, Bank NXT, and EG Bank, among others.

Founded in 2021 by Amr Mazen and Omar El-Defrawy, Sylndr enables users to buy and sell used cars while offering financing solutions.

The new capital will be used to enhance customer experience, diversify inventory, and expand financing options. This follows a $12.6 million pre-seed round in 2022, led by RAED Ventures and Algebra Ventures.

Morocco’s PTS raises $500k to scale fintech solutions

Premium Technology & Services, a Morocco-based fintech startup, has secured $500,000 from BMCE Capital Investments, the private equity arm of BMCE Capital Group.

The funding will be used to advance PTS’s solutions for digitizing traditional banking cards, which are tailored to meet the evolving needs of banks and businesses.

Founded in 2020 by Samir Younes and two others, PTS plans to leverage the investment to drive innovation and scale operations to meet increasing demand in the region.

Watercycle Technologies raises $5.6m to advance MENA expansion

UK-based climate tech company Watercycle Technologies has closed a $5.6 million series A investment round led by Par Equity, alongside participation from Aer Ventures, Greater Manchester Combined Authority, and the University of Manchester Innovation Factory.

Founded in 2020 by Ahmed Abdelkarim and Sebastian Leaper, Watercycle Technologies focuses on sustainable critical mineral recovery while producing clean, drinkable water.

This investment will help the company expand its operations, with plans to extend services into the MENA region to support global Net Zero initiatives.

Iraq-based edtech Eduba acquired by a regional telecom giant

Eduba, an Iraq-based education tech startup, has been acquired by an undisclosed telecommunications conglomerate in a seven-figure deal.

Founded in 2019 by Azad Hassan, Haider Shaaban, and Raed Kadhem, Eduba began as a school management app and gained traction among private schools, securing accreditation from Iraq’s Ministry of Education.

This acquisition highlights the growing value of edtech solutions in the region and positions Eduba for further expansion under its new ownership.

Japan’s AI startup Recursive Inc. inks MoU with Saudi Arabia’s KAIMRC

Japan-based AI startup Recursive Inc. has signed a memorandum of understanding with the King Abdullah International Medical Research Center in Saudi Arabia to jointly develop an advanced system for the early detection of tuberculosis.

The partnership, formalized during the Riyadh Global Medical Biotechnology Summit, aims to leverage Recursive’s AI expertise and KAIMRC’s medical research capabilities to improve TB screening accuracy and diagnosis speed in the Kingdom.

This collaboration, supported by the Ministry of National Guard-Health Affairs, aligns with Saudi Arabia’s Vision 2030 goals to transform its healthcare system and improve public health.

Using chest X-ray imaging data, the AI solution will enable timely TB diagnosis and treatment, reducing mortality and transmission risks.

“We are truly honored to partner with KAIMRC on this groundbreaking initiative,” said Tiago Ramalho, CEO of Recursive Inc.

“By combining KAIMRC’s pioneering medical research with our AI expertise, we are confident we can make a meaningful impact, not only in Saudi Arabia but also in regions worldwide that face the increasing challenge of TB and other infectious diseases,” he added.

The initiative also supports Saudi Arabia’s National Tuberculosis Program, which seeks to reduce TB mortality and incidence rates by 95 percent and 90 percent, respectively, by 2035 compared to 2015 levels.

Through this collaboration, Recursive and KAIMRC aim to create a scalable TB screening model for broader application in high-burden regions while exploring the use of AI to address other infectious diseases.

Topics: startups

Saudi Electricity to settle $1.5bn in historical obligations to the state

Updated 02 February 2025

REEM WALID

February 02, 2025 13:53

Saudi Electricity to settle $1.5bn in historical obligations to the state

Disputed amounts are related to technical discrepancies in quantities, prices, and handling costs of fuel and electric power
Second resolution was issued to include the settlement liability amount in the Mudaraba instrument

Updated 02 February 2025

REEM WALID

February 02, 2025 13:53

RIYADH: The Saudi Electricity Co. will settle its historical obligations to the state, totaling SR5.687 billion ($1.5 billion), following an executive panel approving a final settlement of the disputed legacy amounts.

The panel, which included a ministerial committee for restructuring the electricity sector and SEC, said the disputed amounts are related to technical discrepancies in quantities, prices, and handling costs of fuel and electric power.

A working team was formed from the ministries of energy and finance and the Saudi Electricity Regulatory Authority, in coordination with relevant authorities, to study the disputed transactions totaling SR10.3 billion.

This is part of the government’s continued efforts to enhance service levels for citizens and residents, supporting the goals of Saudi Vision 2030.

Global credit ratings agency Moody’s assigned the SEC an Aa3 rating in November, which it gives to companies with high quality, low credit risk, and a strong ability to repay short-term debts. It provides an assessment of the creditworthiness of borrowers, including governments, corporations, and other entities that issue debt.

The Tadawul statement said the committee issued a second resolution to include the settlement liability amount in the Mudaraba instrument, as per the terms of the agreement between SEC and the Ministry of Finance, within 30 days of receiving the resolution letter from the Minister of Energy.

The Mudaraba instrument is a long-term, unsecured financial tool with a profit margin tied to the regulatory weighted average cost of capital. Its profit is paid only if dividends are declared on ordinary shares. It follows Islamic Shariah principles, is treated as equity in SEC’s financials, and does not change shareholder ownership or rights.

The bourse filing said the SEC expects no significant impact on its dividend distribution.

It added that following the resolution, SEC will amend the Mudaraba agreement with the Ministry of Finance to include this amount in the Mudaraba instrument, bringing the total to SR173.607 billion.

Reclassifying the settlement amount into the Mudaraba instrument strengthens the company’s capital and prepares it for large-scale investments, reinforcing its role as a reliable electricity provider in the Kingdom.

The financial impact of the resolution is projected to be reflected in the 2024 financial statements.

Topics: Saudi Electricity Co. (SEC) Saudi Arabia

Saudi Arabia’s military spending surges to $75.8bn in 2024, says GAMI chief

Updated 02 February 2025

Nadin Hassan

February 02, 2025 14:33

Saudi Arabia’s military spending surges to $75.8bn in 2024, says GAMI chief

Kingdom strengthens global defense presence with $78 billion military budget for 2025

Updated 02 February 2025

Nadin Hassan

February 02, 2025 14:33

RIYADH: Saudi Arabia’s military spending has increased at an annual rate of 4.5 percent since 1960, reaching $75.8 billion in 2024. This accounts for 3.1 percent of global defense spending, according to a senior official.

Speaking at the fourth Global Strategies in Defense and Aerospace Industry Conference in Antalya, Turkiye, Ahmed bin Abdul Aziz Al-Ohali, governor of the General Authority for Military Industries, noted that global military expenditure now totals $2.44 trillion.

Al-Ohali emphasized that Saudi Arabia has earmarked around $78 billion for the military sector in its 2025 budget. This allocation represents 21 percent of the total government spending and 7.19 percent of the country’s gross domestic product.

The governor reiterated that the work of GAMI is aligned with Saudi Vision 2030, which seeks to build a prosperous, diversified, and sustainable economy by reducing dependence on oil revenues and fostering growth in industry and innovation.

“In the presence of His Excellency Prof. Haluk Gorgun, chairman of the Defense Industries Authority of Turkiye, and leaders of Turkish military industry companies, I discussed Saudi Arabia’s ongoing transformation toward a more diversified and innovation-driven economy,” Al-Ohali stated.

He further added: “I also emphasized the promising investment opportunities within Saudi Arabia’s military industries sector and the strategic partnerships between our two countries, with the goal of localizing over 50 percent of military spending by 2030.”

The governor underscored GAMI’s commitment to developing a sustainable military industries sector that not only strengthens military readiness but also makes a significant contribution to the national economy.

To achieve its localization goals, the authority has introduced several initiatives designed to attract both foreign and domestic investments in the defense sector.

Al-Ohali highlighted that GAMI has rolled out a range of incentives to encourage investment and expand military industries, helping companies meet localization targets.

“A total of 74 supply chain opportunities have been created within the military industries sector, with 30 priority opportunities identified, representing about 80 percent of future expenditures on supply chains,” he noted.

The authority is also offering support and facilitation to small and medium-sized enterprises specializing in military industries, both domestically and internationally.

“The aim is to establish a resilient and robust military industrial base that will not only bolster national security but also contribute significantly to the Kingdom’s economic diversification,” Al-Ohali added.

In November of last year, Al-Ohali mentioned at the Local Content Forum that Saudi Arabia had localized 19.35 percent of its military spending, a significant increase from just 4 percent in 2018. The Kingdom plans to exceed 50 percent by 2030.

He also pointed out that the number of licensed entities in the military industries sector had risen to 296 by the third quarter of 2024.

Saudi Arabia continues to solidify its position as a key player in the global defense sector, with strategic partnerships and industrial development playing a pivotal role in achieving the goals outlined in Vision 2030.

Topics: GAMI SaudiVision2030 localization

Saudi Arabia launches February ‘Sah’ savings with 4.94% return

Updated 02 February 2025

MOHAMMED AL-KINANI

February 02, 2025 13:35

Saudi Arabia launches February ‘Sah’ savings with 4.94% return

Minimum subscription amount is SR1,000 and the maximum total issuance per user during the program period is SR200,000
Kingdom aims to raise savings rate among residents from 6% to the international benchmark of 10% by 2030

Updated 02 February 2025

MOHAMMED AL-KINANI

February 02, 2025 13:35

JEDDAH: Saudi Arabia has launched the second round of its subscription-based savings product, Sah, for 2025, offering a competitive return of 4.94 percent for February.

Issued by the Ministry of Finance and organized by the National Debt Management Center, the Sah bonds are the Kingdom’s first savings product designed specifically for individuals.

Structured within the local bond program and denominated in Saudi riyals, Sah offers attractive returns to promote financial stability and growth among citizens.

The product aligns with the Financial Sector Development Program under Saudi Vision 2030, which aims to raise the savings rate among residents from 6 percent to the international benchmark of 10 percent by the end of the decade.

The Shariah-compliant, government-backed sukuk began at 10:00 a.m. Saudi time on Feb. 2 and will remain open until 3:00 p.m. on Feb. 4. Redemption amounts are expected to be paid within a year, as announced by the NDMC on X.

Sah offers fee-free, low-risk returns and is available through the digital platforms of various approved financial institutions. The bonds are issued monthly based on the issuance schedule, with a one-year savings period, fixed returns, and profits paid out at the bond’s maturity.

The minimum subscription amount is SR1,000 ($266), corresponding to the value of one bond, while the maximum total issuance per user during the program period is SR200,000. Returns are paid monthly per the issuance calendar.

The savings period lasts one year with a fixed return, and accrued profits are disbursed at the bond’s maturity. Future returns will be influenced by market conditions on a month-to-month basis.

The product is available to Saudi nationals aged 18 and older, who must open an account with either SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al-Rajhi Capital.

Last month, NDMC announced the closure of the year’s first issuance with a total amount allocated of SR3.724 billion. It was divided into four tranches, with the first valued at SR1.255 billion to mature in 2029 and the second worth SR1.405 billion, maturing in 2032. The third tranche totaled SR1.036 billion to mature in 2036, while the fourth amounted to SR28 million and matures in 2039.

The initial 2025 issuance concluded on Jan. 7, offering a competitive return of 4.95 percent over its three-day subscription period.

Topics: Saudi Arabia sah bonds Financial Sector Development Program

Saudi stc Group tops MENA telecom operators with $57.7bn market cap

Updated 02 February 2025

Nirmal Narayanan

February 02, 2025 13:46

Saudi stc Group tops MENA telecom operators with $57.7bn market cap

stc posted a net profit of SR11.23 billion in the first nine months of 2024
Company’s Saudi mobile subscriber base grew 7.9% year on year

Updated 02 February 2025

Nirmal Narayanan

February 02, 2025 13:46

RIYADH: Saudi Arabia’s stc Group has emerged as the largest listed telecom operator in the Middle East and North Africa, with a market capitalization of $57.7 billion as of Jan. 28, according to a Forbes analysis.

The ranking places stc ahead of UAE’s e&, the Kingdom’s Etihad Etisalat, also known as Mobily, Qatar’s Ooredoo Group, and UAE’s Emirates Integrated Telecommunications Co., which round out the top five telecom firms in the region by market value.

The combined capitalization of these five companies stood at $132 billion, representing 84.7 percent of the total market value of the 16 publicly listed telecom operators in the region.

stc’s share price rose 2 percent year on year to SR43.3 ($11.6) as of Jan. 28. On Feb. 2, the stock gained 0.34 percent to trade at SR43.65 as of 12:30 p.m. Saudi time. The company posted a net profit of SR11.23 billion in the first nine months of 2024, marking a 2 percent increase from the same period a year earlier, according to Saudi Exchange data.

The group’s financial arm, STC Bank, recently secured a non-objection certificate from the Saudi Central Bank to commence operations, becoming the first licensed digital financial institution in Saudi Arabia. The approval aligns with the regulator’s push for digital transformation and enhanced competition in the banking sector while ensuring financial stability.

Forbes said that stc’s Saudi mobile subscriber base grew 7.9 percent year on year in the first nine months of 2024, reaching 27.6 million, while fixed-line subscribers rose 2.3 percent to 5.7 million. In contrast, stc Kuwait saw its mobile subscriber base decline 4.2 percent to 2.3 million by the end of the third quarter.

Saudi Arabia’s Public Investment Fund holds a 62 percent stake in stc Group.

Among regional rivals, e& holds the second-largest market capitalization at $41.1 billion, while Mobily ranks third at $12 billion. Mobily’s stock price climbed 14.5 percent year on year to SR58.4 as of Jan. 28, with net profit surging 43 percent to SR2.12 billion for the first nine months of 2024. The company’s subscriber base also expanded 1.5 percent to 11.7 million.

Ooredoo Group ranks fourth with an $11.4 billion market capitalization, followed by Emirates Integrated Telecommunications at $9.8 billion.

Topics: STC mobile Saudi Arabia Saudi Telecom Co. (STC)

Oman trade surplus grows 2% in November to reach $18.5bn

Updated 02 February 2025

Nour El-Shaeri

February 02, 2025 13:31

Oman trade surplus grows 2% in November to reach $18.5bn

Total merchandise exports grew 7.7% year on year to 22.23 billion rials, while imports rose 10.6% to 15.09 billion rials
Oil and gas exports surged 19.7% to 14.99 billion rials

Updated 02 February 2025

Nour El-Shaeri

February 02, 2025 13:31

RIYADH: Oman’s trade surplus rose 2 percent year on year by the end of November, reaching 7.14 billion Omani rials ($18.5 billion), up from 6.99 billion rials in the same period of 2023.

The increase, driven largely by a surge in oil and gas exports, saw total merchandise exports grow 7.7 percent year on year to 22.23 billion rials, while imports rose 10.6 percent to 15.09 billion rials, according to preliminary data from the National Center for Statistics and Information.

Oil and gas exports surged 19.7 percent to 14.99 billion rials, compared to 12.53 billion rials in the same period of 2023.

Crude oil exports rose 2.5 percent to 9.13 billion rials, while refined oil exports saw a sharp increase of 174.9 percent to 3.57 billion rials. Liquefied natural gas exports, however, declined slightly by 1.1 percent to 2.30 billion rials.

The UAE was Oman’s top trade partner in non-oil exports, with trade reaching 935 million rials, an 8.1 percent increase from November 2023.

The UAE also remained the leading destination for re-exports from Oman at 526 million rials and was the top exporter to Oman, supplying 3.60 billion rials worth of goods.

Saudi Arabia ranked second in non-oil exports from Oman, totaling 764 million rials, followed by South Korea with 611 million rials.

Iran was the second-largest re-export destination at 335 million rials, followed by Kuwait at 110 million rials.

Among exporters to Oman, China ranked second with 1.62 billion rials, followed by Kuwait at 1.49 billion rials.

Oman’s trade surplus is part of a regional trend as the Gulf Cooperation Council continues to play a significant role in global trade.

The latest data shows that the GCC achieved a total trade volume of $1.5 trillion, securing its position as the world’s sixth-largest trader and accounting for 3.4 percent of global trade in 2023.

Oman’s non-oil merchandise exports declined by 16.6 percent to 5.64 billion rials in November, down from 6.77 billion rials a year earlier. Mineral products remained the largest category within non-oil exports at 1.62 billion rials, despite a 35.2 percent drop.

Base metals and related products fell 1.1 percent to 1.20 billion rials, while plastics and rubber products grew 10.1 percent to 896 million rials.

Exports of chemical industry products dropped 22 percent to 725 million rials, and live animals and animal products declined 12.3 percent to 320 million rials.

Re-exports from Oman grew 18.3 percent to 1.59 billion rials. Transport equipment re-exports rose 2.1 percent to 385 million rials, while electrical machinery and equipment fell 4.1 percent to 346 million rials.

Re-exported food, beverages, and liquids increased by 30.2 percent to 168 million Omani rials, and mineral product re-exports climbed 43.1 percent to 119 million Omani rials. However, re-exports of live animals and animal products declined 13.3 percent to 89 million rials.

On the import side, mineral products accounted for the largest share, totaling 4.21 billion rials, up 9.5 percent.

Imports of electrical machinery and equipment grew 26 percent to 2.61 billion rials, while base metals and related products declined 1.2 percent to 1.45 billion rials.

Chemical industry imports rose 2.7 percent to 1.40 billion rials, and transport equipment imports increased by 13.1 percent to 1.35 billion rials. Other imported products totaled 4.07 billion rials.

Oman’s crude oil exports totaled approximately 308.42 million barrels by the end of December, with an average price per barrel of $81.2.

Oil exports accounted for 84.9 percent of the country’s total oil production, which stood at 363.29 million barrels for the year.

However, total oil exports saw a slight decline of 0.6 percent compared to December 2023, when Oman exported 310.33 million barrels.

This decrease aligned with a 5.1 percent drop in overall oil production, which fell from 382.77 million barrels in the previous year.

Topics: Oman trading exports oman economy

Startup Wrap – Early-stage funding continues to capture interest

Startup Wrap – Early-stage funding continues to capture interest

Startup Wrap – International venture capital interest in MENA rises despite global challenges

Startup Wrap — Proptech leads startup investment in region as sector sees funding drop

Saudi Electricity to settle $1.5bn in historical obligations to the state

Saudi Electricity to settle $1.5bn in historical obligations to the state

Saudi Arabia’s military spending surges to $75.8bn in 2024, says GAMI chief

Saudi Arabia launches February ‘Sah’ savings with 4.94% return

Saudi Arabia’s military spending surges to $75.8bn in 2024, says GAMI chief

Saudi Arabia’s military spending surges to $75.8bn in 2024, says GAMI chief

Saudi Arabia launches February ‘Sah’ savings with 4.94% return

Saudi Arabia launches February ‘Sah’ savings with 4.94% return

Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return

Saudi Arabia opens 9th round of ‘Sah’ savings products offering 4.89% return

Saudi stc Group tops MENA telecom operators with $57.7bn market cap

Saudi stc Group tops MENA telecom operators with $57.7bn market cap

SAMA permits full public launch of STC Bank in digitalization push

stc named among world’s 10 most valuable telecom brands

Oman trade surplus grows 2% in November to reach $18.5bn

Oman trade surplus grows 2% in November to reach $18.5bn

Oman, India revise deal to avoid double taxation

Oman’s inflation rate edges up 0.7% in December

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Startup Wrap – Early-stage funding continues to capture interest

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