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Startups flourish from Morocco to Saudi Arabia

Founded in 2023 by Thabet Al-Subaie, LYNK connects financial institutions, commodity markets, and beneficiaries through its Shariah-compliant services. (Supplied)
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Updated 18 November 2023
Nour El-Shaeri
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Startups flourish from Morocco to Saudi Arabia

  • KSA’s fintech sector make significant stride with LYNK investment round
Updated 18 November 2023
Nour El-Shaeri

CAIRO: Startups across the Middle East and North Africa region managed to raise significant funding rounds, hailing a rebound in the venture capital space.

Saudi Arabia’s fintech sector marked a significant stride with LYNK successfully securing an investment round.  

This financial boost came from notable backers Al Fozan Holding and Ramla Holding Group, although the investment amount remains undisclosed.  

Founded in 2023 by Thabet Al-Subaie, LYNK connects financial institutions, commodity markets, and beneficiaries through its Shariah-compliant services.

This latest infusion of funds is set to catalyze the company’s growth, facilitating the introduction of new financial products and expanding its footprint both locally and globally. “LYNK is considered a leading company in the fintech industry. LYNK is dedicated to expanding its scope of work and strengthening its position among prominent financial institutions by establishing strategic partnerships aimed at meeting the aspirations of customers and fulfilling market needs,” Al-Subaie said.

Since its launch by BIM Ventures’ Saudi Venture Studio, LYNK has demonstrated remarkable performance in automating financial transactions. The platform has efficiently processed over SR100 million ($26 million) in Murabaha transactions.

The company claims to handle up to 15,000 transactions daily, each executed in less than a minute, and collectively valued at over SR5 billion.

Saudi BNPL Tamara raises $250m in debt financing

Saudi Arabia’s buy now, pay later giant Tamara managed to secure an additional $250 million in debt financing, bringing its total facility to $400 million.

The investment consists of an up to $200 million senior debt contribution from Goldman Sachs, complemented by a $50 million tranche by Shorooq Partners.

Co-founded in 2020 by Abdulmajeed Al-Sukhan, Turki bin Zarah, and Abdulmohsen Al-Babtain, Tamara’s offers its consumers the opportunity to purchase products in installments.  

Last March, the company successfully raised a $150 million debt financing round, also from Goldman Sachs. This consistent backing from prominent financial institutions underscores Tamara’s growing influence in the fintech sector. 




Co-founded in 2020 by Abdulmajeed Al-Sukhan, Turki bin Zarah, and Abdulmohsen Al-Babtain, Tamara’s offers its consumers the opportunity to purchase products in installments. (Supplied)

“We are pleased to announce this significant debt financing, a testament to our excellent operational performance to date and our future growth outlook,” Stefan Marciniak, Tamara’s chief financial officer, said.

“In a challenging economic climate, we are grateful to Goldman Sachs and Shorooq Partners for their support. These funds will catapult us forward, enabling us to further develop our flagship BNPL product and invest in new, innovative products and services, which will further strengthen our position as a leader in the industry,” Marciniak added.

The strategic utilization of this new financing is set to catalyze Tamara’s expansion. With its capital, the company is poised to invest in developing new products and services, further cementing its position in the competitive BNPL market.  

Saudi Arabia’s VMS invests in Egypt’s Akhdar

Egyptian educational technology company Akhdar has successfully completed a six-figure funding round, led by Saudi Arabia’s venture studio, Value Maker Studio. This strategic investment is aimed at bolstering Akhdar’s expansion efforts into the Saudi market.  

Established in 2016 by Mohamed Osama and Shady Ahmed, Akhdar has carved a niche in the education technology space by providing a wide array of Arabic-language educational materials.

Their offerings encompass over 2,500 pieces of content, including audio and written books, comprehensive book reviews, and engaging podcasts.  

This diverse range of educational resources caters to a vast audience, with the app being utilized by 1.5 million users across 174 countries globally.  

The recent funding underscores the growing interest in edtech solutions and reflects the confidence of investors in Akhdar’s potential for growth and impact.  

“This strategic partnership will greatly support our expansion plans into the Gulf Cooperation Council region, with a particular emphasis on Saudi Arabia. Additionally, it will enable us to fuel our growth and further enhance our technology to effectively address the challenges faced by today’s learners,” Osama said.

This investment acts as a stepping stone for Akhdar to strengthen its presence in the Middle East, starting with Saudi Arabia.

Saudi cybersecurity startup COGNNA raises $2.25m

Saudi Arabian cybersecurity startup COGNNA has successfully secured $2.25 million in a seed funding round led by IMPACT46 and saw contributions from Vision Ventures, Faith Capital, along with other investors.  

Established in 2022 by Ibrahim Al-Shamrani and Ziyad Al-Shehri, COGNNA specializes in leveraging artificial intelligence and sophisticated data analysis to identify and neutralize threats in customers’ systems and networks.  

Notably, COGNNA was part of the first-ever Cybersecurity Accelerator Program initiated by the Saudi National Cybersecurity Authority in August 2022, underlining its commitment to advancing cybersecurity solutions.

UAE’s fintech startup Mafhoom Technologies raises $1.36m  

Mafhoom Technologies, a UAE-based fintech startup, has successfully raised $1.36 million in a pre-seed funding round by Al-Wafra Al-Thanya for Investments, complemented by contributions from various angel investors.  

Established in 2022 by founders Ahmad Khatib and Ziad Melhem, Mafhoom is designed to empower users to manage their finances more effectively.  

It offers tools to optimize spending, reduce bills, clear debt, and enhance financial literacy, while also helping users to meet their saving and investment goals. 

This strategic partnership will greatly support our expansion plans into the Gulf Cooperation Council region, with a particular emphasis on Saudi Arabia.

Mohamed Osama Akhdar, cofounder and CEO

“Mafhoom Technologies is at the forefront of financial innovation, and we are delighted to have the support of esteemed investors who share our vision for a financially empowered future,” said Khatib.    

This fresh injection of capital will enable Mafhoom to expand its team and facilitate its growth plans in Saudi Arabia.

Morocco’s CloudFret raises $2.1m

CloudFret, a Morocco-based logistics startup, has successfully raised $2.1 million in a funding round jointly led by AfriMobility and Azur Innovation Fund.  

Launched in 2021 by Driss Jabar, CloudFret leverages an AI algorithm-based platform to facilitate connections between shippers and carriers across Mediterranean shores.  

With this new capital, CloudFret aims to significantly expand its operations. The company has set ambitious targets to double its workforce by the end of 2024, a move that is poised to enhance its service offerings and broaden its network of shippers and partner carriers.  

UAE’s logistics startup Wize raises $16m

Wize, a UAE-based logistics startup, has successfully secured $16 million in a pre-seed funding round predominantly backed by angel investors.  

Established in 2022 by Alexander Lemzakov, Wize is carving a niche in the logistics sector with its eco-friendly last-mile transportation solutions.

The company operates on two primary fronts, firstly, as a marketplace for electric motorcycles, and secondly, as a subscription platform that enables businesses to efficiently manage their own fleets.  

In a bid to support sustainable transportation, Wize offers a unique battery-as-a-service model, along with swapping stations.  

Additionally, it has developed the Battery Swap App, designed to aid drivers in locating and reserving batteries, while also keeping them updated on charge levels.

With the injection of this new capital, Wize is set to accelerate its product development initiatives.  

The funding will also facilitate the company’s expansion within the UAE, and enable it to explore and establish new partnership opportunities across the broader MENA region.

Topics: MENA startups startups

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Wizz Air aims to expand connections, attract more tourists into Saudi Arabia, says senior executive

Updated 20 May 2024
Nadin Hassan
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Wizz Air aims to expand connections, attract more tourists into Saudi Arabia, says senior executive

Updated 20 May 2024
Nadin Hassan

RIYADH: Low-cost carrier Wizz Air plans to invest over half a billion dollars in flight operations in Saudi Arabia to enhance connectivity and attract more tourists, according to the airline’s president.

In an interview with Arab News on the sidelines of the Future Aviation Forum, Robert Carey emphasized the impact on tourism, noting that inbound visitors typically stay for three to seven days and spend money on various services like hotels, car rentals, and food.

“We’ve invested over half $1 billion into our flying in the Kingdom so far. we’re going to keep growing that. I think we’ve got a lot to do. Just keep connecting the destinations we’ve already got, connect more of those points together,” Carey said.

Wizz Air is the third-largest low-cost carrier in Europe and the fifth-largest airline e-commerce site globally. It aims to bring more tourists to Saudi Arabia and enhance its accessibility, with plans to continue connecting existing destinations and expand further. 

“We’re operating to seven different destinations from Saudi Arabia. We have four points here. You know, we’re seeing really great consumer response to this. Roughly two to one external like people coming into the Kingdom versus people leaving the Kingdom, on trips,” Carey said.

He added: “But that’s giving a great benefit. We’ve got tourists coming in. We’re giving access to Saudi customers who have travel.”

He also expresses the airline’s positive passenger experience, praising the airline’s clean, new planes, welcoming flight crew, and on-time scheduling.

Additionally, Carey stated that Wizz is working with the minister of tourism, the minister of transport, the General Authority of Civil Aviation, and the Saudi Tourism Authority on their connectivity program.

“If you look at the airline planning season, we’re just coming up on the period where everybody starts announcing what they’re going to do for this winter, so all I’ll say for right now is stay tuned. There’s more to come,” he said.

Carey noted that Wizz Air celebrated its 20th birthday this week, and to mark this milestone, the airline will launch a special promotion on May 21.

He hints that the promotion will be closely related to the anniversary, suggesting significant discounts on every flight. They encourage people to visit the website to take advantage of the upcoming offers.

Topics: FAF2024 Wizz Air Tourism & Transport

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AI to help optimize Saudi aviation supply chain management: official

Updated 20 May 2024
Reem Walid
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AI to help optimize Saudi aviation supply chain management: official

Updated 20 May 2024
Reem Walid

RIYADH: Saudi Arabia’s aviation industry’s supply chain management is set to receive a boost thanks to the use of artificial intelligence in logistics, a top official said.

Speaking on the first day of the Future Aviation Forum in Riyadh on Monday, Suliman Almazroua, CEO of the National Industrial Development and Logistics Program, said that AI implementation will also enhance productivity and customer experience.

“AI in logistics, for example, is shaping and optimizing the supply chain management, improving productivity, productivity maintenance, and enhancing customer experience,” he said.

The official said the rapid technological advancements are reshaping the future of industries.

The CEO highlighted the Saudi aviation sector’s achievements in terms of increased number of passengers, cargo handling, fleet expansion, rise in infrastructure investment, and global connectivity.

Addressing the forum, Luis Felipe de Oliveira, director general and CEO of Airports Council International shed light on how the aviation industry suffered from different crises.

“I remember from 9/11 to (the 2008) financial crisis to SARS to COVID-19, we always faced an issue, but we are a very resilient industry and we always come back,” Oliveira noted.

He said: “That’s why when you talk about macroeconomic stuff, we see that geopolitical risks are something that can affect us. That we have the inflation going up, of course, affects our business as well. We have the interest rates that affect our GDP.”

“But it is incredible that even considering all these headwinds, the unemployment rate is going down and people are eager to travel,” Oliveira justified.

He also talked about how jet fuel prices, which are the main cost for the industry, are very high nowadays.

“Of course, this affects our ability to fly and also affects the cost of the tickets,” Oliveira said.

Stefan Schulte, CEO of Fraport AG in Germany, clarified that the focus on innovation, sustainability, and connecting people and culture resembled the beginning of a new era.

“The expectations of our customers are constantly increasing. They want consistent, digitalized, resilient, and seamless processes, but they also want us to go green,” Schulte said.

Organized by the General Authority of Civil Aviation, the three-day event will see discussions on issues related to the global flight sector, air transport, and environmental sustainability in civil aviation, as well as talks on enabling advanced air transport and enhancing global connectivity. 

The event also aligns with the Kingdom’s ambition to become a leader in the sector within a decade, including securing $100 billion worth of investments by 2030.

Topics: FAF2024

Electric passenger drones set for a year-end launch in Saudi Arabia, says Front End CEO

Updated 20 May 2024
Reina Takla
Nirmal Narayanan  
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Electric passenger drones set for a year-end launch in Saudi Arabia, says Front End CEO

Updated 20 May 2024
Reina Takla Nirmal Narayanan  

RIYADH: Electric passenger drones are set to be launched in Saudi Arabia by the end of this year with Alkhobar-based firm Front End set to introduce the service to the Kingdom, revealed its CEO. 

Speaking to Arab News on the sidelines of the Future Aviation Forum, Majed Al-Ghaslan, who is also the chairman of the company, stated that Front End’s collaboration with the Chinese electric vertical take-off and landing vehicle developer EHang is facilitating the deployment of such electric flights in the Kingdom. 

Al-Ghaslan said: “We’re pushing the boundary of air traffic, also urban traffic management systems. So we’re discussing this with the Civil Aviation Authority (General Authority of Civil Aviation) here in the Kingdom. We’re very closely aligned with the Ministry of Transport.” 

He added: “We have electric buses and cars now; you’re going to have electric flights for passengers. And this is already running in many cities around the world. We want Riyadh and the major cities around the Kingdom to be the first as well. The idea is to launch the pilots this year and hopefully start launching this service as well this year.” 

The official also added that the deployment of these electric drones, capable of carrying passengers, in the Kingdom is very feasible, as such services are running effectively in countries like China, Indonesia, and Japan. 

During the talk, he revealed that these proposed electric flights, which take off vertically, can be used for both carrying passengers and for logistics purposes. 

According to Al-Ghaslan, these flights are capable of traveling up to 30 minutes with two passengers, and with more advanced batteries, the distance can be extended further. 

He explained, “You can do a 30-minute flight, but still, 30 minutes is a long flight. For example, in Riyadh, you can cover end to end because you are going direct path to anywhere, with two passengers. So you can take up to 250 kilograms. And then with more advanced batteries, the distance can be even higher.” 

The official added that the drones capable of carrying passengers, which will be introduced in Saudi Arabia, will be autonomous and will operate using advanced technologies like artificial intelligence. 

Discussing Front End’s eagerness to enter the air mobility sector, Al-Ghaslan noted that the Kingdom’s transformative Vision 2030 program has facilitated the firm’s entry into the industry. 

“Typically, what we do is partner with and localize companies, bringing them into the Kingdom. I never thought I’d be in aviation, but because of the new frontiers that include electric vehicles that vertically take off and land, and advancements in passenger-level drones, that is our interest. We run drone services for our clients, but we are now getting into the air mobility sector,” said Al-Ghaslan. 

He added, “The Vision 2030 program actually enabled this transformation to take place, and there are now national-level strategies. We are at the forefront of making it happen from the private sector at least.” 

The official also noted that Front End is planning to introduce a ride-hailing service in Saudi Arabia using a fleet of electric vehicles, under a partnership with an Indian company named Blue Smart. 

“We’re also launching a ride-hailing service. So, this is something we’re also going to be announcing at the right time, again, electric. So, our theme is around sustainability as well. It’s a company from India called Blue Smart. And this is also going to be announced this year,” he concluded. 

Topics: FAF2024 Front End electric drones Tourism & Transport

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Riyadh Air to unveil its crew uniform at Paris Fashion Week, says CEO

Updated 51 min 26 sec ago
Reina Takla
Miguel Hadchity
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Riyadh Air to unveil its crew uniform at Paris Fashion Week, says CEO

  • New attire will ‘become instantly recognizable as the Riyadh color’
Updated 51 min 26 sec ago
Reina Takla Miguel Hadchity

RIYADH: Saudi Arabia’s new airline, Riyadh Air, is set to unveil its cabin crew special uniform at the upcoming Paris Fashion Week, according to its CEO.

On the sidelines of this year’s Future Aviation Forum in Riyadh, Tony Douglas, CEO of Riyadh Air, shared in an interview with Arab News a series of strategic developments that are set to propel the new airline into the global spotlight. 

With Riyadh Air scheduled to launch in the summer of next year, Douglas highlighted the airline’s upcoming milestone at Paris Fashion Week, which will take place from June 18-23.

“Our next milestone will be (in) June in Paris,” he said. “This is going to be about Paris Fashion Week. Now, what would we possibly do in Paris Fashion Week? For the first time ever as an airline, we will reveal our haute couture fashion collection. So our cabin crew won’t wear cabin crew uniforms. It’ll be cabin crew fashion,” he added. 

Drawing inspiration from the fashion depicted in the film “Catch Me If You Can,” Douglas emphasized the airline’s commitment to style and sophistication. 

“If you can ever remember the movie ‘Catch Me If You Can,’ where DiCaprio goes through the terminal building, and everybody stops to photograph them because they look glamorous. They look fashionable. They look refined. And we want to bring that back with a modernist twist. And that’s what we’ll be revealing at Paris Fashion Week at the end of June,” he explained.

The new uniforms will feature a unique color that Douglas believed would become “instantly recognizable as the Riyadh color.”

He added: “We want to get that kind of glamor into aviation to make sure that this brand, because of course, the brand is Riyadh wherever it’s identified around the world, that immediately speaks to quality, grace, refinement, and fashion.”

In addition to fashion, Riyadh Air is rapidly building its operational capabilities, according to the top official.

“We now have our first group of pilots who’ve joined us. So we’ve got over 30 instructor pilots, they’re the highest qualified pilots you can get from lots of different international airlines. They’re, of course, engaged with us at this stage to assist with our certification flying. And we’ll start our certification flying in September of this year. So literally months away now,” Douglas revealed.

He added: “Yesterday, our third batch of cabin crew started with us, so this feels like a real airline now.”

The interest in joining Riyadh Air has been extraordinary, according to Douglas. 

He noted the overwhelming response to their careers page, saying: “The statistic that I still almost struggle to comprehend in a very positive way is if you go onto RiyadhAir.com, our website, there’s a careers page, and it allows you to put in your personal details. In just over a year, we’ve had 1.1 million people send the details, their qualifications and their contacts to be considered to become part of the Riyadh Air family, 146 different nationalities, and we think that that’s just completely staggering.”

He added: “We ask ourselves why I would never have imagined so much interest and my only explanation is it’s because it’s under the leadership and the decree of His Royal Highness, the Crown Prince Mohammed bin Salman.”

Looking ahead, Douglas confirmed that Riyadh Air’s headquarters will soon be visible near Riyadh International Airport. 

“Our brand new headquarters building will be available for us to start occupying in the summer of this year. And just out by Riyadh International Airport, people will see their biggest brand logo lit up in the skyline, probably in the next two months. And that’s when you will know where the home of the Riyadh Air family is,” Douglas announced.

The CEO acknowledged the challenges and opportunities ahead by reflecting on the industry’s current dynamics: “What a difference two or three years makes pre-pandemic. It was actually difficult to make any money in aviation. Ticket prices for a decade were almost at an all-time low.” 

Douglas added: “Here we are today, where demand is significantly ahead of supply in many markets and, in particular, our market. But also we all know ticket prices are actually expensive at the moment. I don’t think that will last because it is a cyclical industry and it’s one again where classic Keynesian economics supply and demand at the moment.” 

The Riyadh Air head confidently predicted ongoing market growth and outlined the carrier’s mission, saying: “Is the market going to continually grow? The answer is very simply, yes it is. Back to the proposition of Riyadh Air. We’ll bring a full-service carrier, the sort of carrier that the Kingdom needs and quite frankly, demands such that we’ll have global connectivity.” 

Douglas invited guests to witness Riyadh Air’s debut at Paris Fashion Week and teased future technological innovations. 

“Come and see us in Paris. Come and see the incredible fashion, which will stand out, but also later on in the year will start to reveal what our digital proposition is, and that will be another standout case for our industry,” he concluded.

Topics: FAF2024 Tourism & Transport business

Closing Bell: Saudi Tadawul closes in red across all indexes   

Updated 20 May 2024
ARAB NEWS  
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Closing Bell: Saudi Tadawul closes in red across all indexes   

Updated 20 May 2024
ARAB NEWS  

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Monday, losing 73.02 points, or 0.60 percent, to close at 12,125.36.     

The total trading turnover of the benchmark index was SR6 billion ($1.6 billion) as 68 of the listed stocks advanced, while 155 retreated.   

On the other hand, the Kingdom’s parallel market Nomu also slipped 25.51 points, or 0.09 percent, to close at 27,036.50. This came as 24 of the listed stocks advanced, while as many as 40 retreated.  

Similarly, the MSCI Tadawul Index also dropped 13.53 points, or 0.89 percent, to close at 1,515.07.  

The best-performing stock of the day was Al-Baha Investment and Development Co. which saw its share price surge 7.69 percent to SR0.14.  

Other top performers include Almasane Alkobra Mining Co. as well as the Mediterranean and Gulf Insurance and Reinsurance Co., whose share prices soared by 7.05 percent and 6.72 percent, respectively, to stand at SR63.80 and SR25.40.     

In addition to this, other top performers included Almunajem Foods Co. and Methanol Chemicals Co.  

The worst performer was Fawaz Abdulaziz Alhokair Co., whose share price dropped by 8.04 percent to SR10.06.   

Al-Babtain Power and Telecommunication Co. as well as Ash-Sharqiyah Development Co., also saw their share prices dropping by 7.39 percent and 4.45 percent respectively, to stand at SR41.35 and SR20.20.

Moreover, other worst performers also include Arabian Contracting Services Co. and East Pipes Integrated Co. for Industry.  

On Nomu, Future Care Trading Co. was the top gainer with its share price rising by 11.05 percent to SR15.28.   

Other best performers on Nomu were Professional Medical Expertise Co. as well as Osool and Bakheet Investment Co., whose share prices soared by 8.42 percent and 4.53 percent to stand at SR103 and SR 41.50, respectively.  

Other top gainers also include Sure Global Tech Co. and Ghida Alsultan for Fast Food Co.  

Leen Alkhair Trading Co. experienced a significant drop in its share price on Nomu, with the company’s shares falling by 7.72 percent to SR26.90.    

The share prices of Almuneef Co. for Trade, Industry, Agriculture and Contracting as well as Riyadh Steel Co. also fell by 7.68 percent and 6.25 percent to stand at SR51.70 and SR30, respectively.  

Other major losers include Molan Steel Co. and Mayar Holding Co.  

Topics: Closing Bell Tadawul All Share Index (TASI) Saudi Stock Exchnage

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