WASHINGTON: The Federal Reserve took emergency action Sunday and slashed its benchmark interest rate by a full percentage point to nearly zero and announced it would purchase more Treasury securities to encourage lending to try to offset the impact of the coronavirus outbreak. The central bank said the effects of the outbreak will weigh on economic activity in the near term and pose risks to the economic outlook. The central bank said it will keep rates at nearly zero until it feels confident the economy has weathered recent events.
The Fed also said it will purchase $500 billion of Treasury securities and $200 billion of mortgage-backed securities to smooth over market disruptions that have made it hard for banks and large investors to sell Treasuries.
The disruptions bumped up the yield on the 10-year Treasury last week, an unusual move that threatens to push borrowing costs for mortgages and credit cards higher. The Fed also said it has dropped its requirements that banks hold cash reserves in another move to encourage lending.
The Fed also announced that it has cut interest rates on dollar loans in a joint action that it has taken with five central banks overseas. That is intended to ensure that foreign banks continue to have access to dollars that they lend to overseas companies.
All told, the Fed’s actions amount to a recognition that the US economy faces its most perilous juncture since the recession ended more than a decade ago.
By aggressively slashing its benchmark short-term rate to near zero and pumping hundreds of billions of dollars into the financial system, the Fed’s moves Sunday recalled the emergency action it took at the height of the financial crisis. Starting in 2008, the Fed cut its key rate to near zero and kept it there for seven years. The central bank has now returned that rate — which influences many consumer and business loans — to its record-low level.
Still, with the virus’ spread causing a broad shutdown of economic activity in the United States, the Fed faces a daunting task. Its tools — intended to ease borrowing rates, facilitate lending and boost confidence — aren’t ideally suited to offset a fear-driven halt in spending and traveling.
“We have to hope that the Fed getting out in front of events, not to mention other central banks, pushes the economy in the right direction,’’ said Adam Posen, president of the Peterson Institute for International Economics. “The heavy lifting for stimulus and for preventing lasting economic damage has to be done on the fiscal side. That’s nature of this shock.’’
“It confirms that the Fed sees the economy going down ... very sharply’’ toward recession, Posen said.
Posen advocates fiscal steps such as providing sick leave and pay for quarantined workers and rolling over bank loans to small and medium sized businesses hit hard by the outbreak.
Earlier, Treasury Secretary Steven Mnuchin said that both the central bank and the federal government have tools at their disposal to support the economy.
Mnuchin also said he did not think the economy is yet in recession. Most economists, however, believe a recession is already here, or will be soon.. JPMorgan Chase predicts the economy will shrink 2% in the current quarter and 3% in the April-June quarter.
“I don’t think so,” Mnuchin said, when asked if the US is in recession. “The real issue is what economic tools are we going to use to make sure we get through this.”
On Saturday, President Donald Trump reiterated his frequent demand that the Fed “get on board and do what they should do,” reflecting his argument that benchmark US rates should be as low as they are in Europe and Japan, where they’re now negative. Negative rates are generally seen as a sign of economic distress, and there’s little evidence that they help stimulate growth. Fed officials have indicated that they’re unlikely to cut rates below zero.
With the virus depressing travel, spending, and corporate investment and forcing the cancelation of sports leagues, business conferences, music performances, and Broadway shows, economists increasingly expect the economy to shrink for at least one or two quarters. A six-month contraction would meet an informal definition of a recession.
Two weeks ago, in a surprise move, the Fed sought to offset the disease’s drags on the economy by cutting its short-term rate by a half-percentage point — its first cut between policy meetings since the financial crisis. Its benchmark rate is now in a range of 1% to 1.25%. Some analysts have forecast that the Fed will reduce its rate by just one-half or three-quarters of a point on Wednesday, rather than by a full point.
But policymakers have largely accepted research that says once its benchmark rate approaches zero, it would produce a greater economic benefit to cut all the way to zero rather than just to a quarter- or half-point above. That’s because it takes time for rate cuts to work their way through the economy. So if a recession threatens, quicker action is more effective.
Some of the attention Wednesday will likely be on what steps the Fed takes to further smooth the functioning of bond markets, a topic that can seem esoteric but that serves a fundamental role in the functioning of the economy. The rate on the 10-year Treasury influences a range of borrowing costs for businesses and consumers, including mortgage and credit card rates. If banks and investors can’t seamlessly trade those securities, borrowing rates might rise throughout the economy.
“Even more important than the Fed’s rate-cutting function is the market-calming function,” said David Wilcox, a senior fellow at the Peterson Institute for International Economics and former head of research at the Fed.
The central bank took a huge step in that direction Thursday, when it said it would provide $1.5 trillion of short-term loans to banks. The central bank will provide the cash to interested banks in return for Treasuries. The loans will be repaid after one or three months.
That program is a response to signs that the bond market has been disrupted in recent days as many traders and banks have sought to unload large sums of Treasurys but haven’t found enough willing buyers. That logjam reduced bond prices and raised their yields — the opposite of what typically happens when the stock market plunges.
The Fed also said last week that it would broaden its $60 billion monthly Treasury purchase program, launched last fall, from just short-term bills to all maturities. The Fed is already reinvesting $20 billion from its holdings of mortgage-backed securities into Treasuries of all durations, thereby bringing its total purchases to $80 billion.
Those purchases would help relieve banks of the Treasuries they want to sell. Some analysts expect the Fed to extend those purchases past their current end-date of the second quarter and even vastly increase the size.
Guy LeBas, chief fixed income strategist for Janney Capital Management, said the Fed could boost its purchases to up to $1 trillion or more over the next year. The goal wouldn’t be to directly stimulate the economy, as the Fed did with its bond purchases during and after the recession, LeBas said. Those purchases were known as “quantitative easing” or QE.
Rather, the idea would be to take more Treasuries off banks’ balance sheets. That, in turn, would boost banks’ cash reserves and enable them to lend more. Still, most economists would likely refer to the purchases as QE.
“Shifting hundreds of billions of dollars of assets quickly doesn’t happen without central bank intervention,” LeBas said.
Another option would be to relaunch a program that lets banks use corporate bonds and other securities as collateral to borrow from the Fed.
On Wednesday, the Fed’s policymakers will also update their forecasts for the economy and for interest rates. Economists at Pimco predict that the Fed’s policymakers will collectively downgrade their estimate for growth this year from 2% to below 1.5%. That figure would be consistent with an economic contraction in the first half of the year, followed by a sharp rebound, Pimco said.
Fed slashes rates to near zero, eases bank lending rules
https://arab.news/byzar
Fed slashes rates to near zero, eases bank lending rules
- Fed slashes benchmark interest rate by a full percentage point to nearly zero
- Announces it would purchase more Treasury securities to encourage lending to try to offset the impact of the coronavirus outbreak
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Sustainable technologies, innovations discussed at COP29 to mitigate climate change
BAKU: Azerbaijan, an oil-producing country and host of the COP29 UN climate change conference, is focusing on green innovation and development, showcasing its efforts at the global gathering in Baku.
“We are collaborating with international companies and research institutions to ensure that COP29 showcases cutting-edge technologies in renewable energy, water management and carbon capture,” said Mukhtar Babayev, COP29 president.
Although Azerbaijan remains reliant on fossil fuels, it is working with international organizations and educational institutions to ensure that COP29 is not only about policies and funding, but also a platform for presenting environmental innovations.
“Our focus is on delivering a conference that fosters practical solutions, showcases Azerbaijan’s leadership in the energy transition, and reinforces our commitment to a sustainable and resilient future,” said Babayev.
According to an article by Elkhan Nuriyev, a global energy associate at the Brussels Energy Club and senior expert on Russia, Eastern Europe, and Central Asia at L&M Political Risk and Strategy Advisory in Vienna, published on the Ceeenergy News website: “The government has advocated for stronger commitments to enhancing financial mechanisms for green projects worldwide. A standout project is the ‘Green Energy Hub,’ a multi-faceted initiative focused on harnessing renewable energy sources. This hub includes large-scale solar farms, wind turbines and hydropower facilities, serving as a key export resource.”
In addition, an agreement was signed four years ago between Azerbaijan’s Ministry of Energy and Masdar, a UAE clean energy company, to establish the country’s first solar energy facility — the 230-megawatt Garadagh Solar Power Plant.
The project covers 550 hectares and features 570,000 bifacial photovoltaic panels, which capture both direct sunlight and the reflection of sunlight from the ground.
Masdar is not the only company involved in renewable energy technologies in Azerbaijan. Earlier this year, ACWA Power, a leader in the energy transition and a pioneer in green hydrogen, partnered with Azerbaijan’s national oil company, SOCAR, to develop projects that will accelerate renewable energy in the country.
According to ACWA Power’s website, the private company is “currently constructing Azerbaijan’s and the region’s largest 240 MW wind power plant in the Absheron-Khizi region at an investment cost of $345 million.”
As governments increasingly prioritize sustainability, the integration of innovative technologies is becoming a key demand for fostering both economic growth and environmental stewardship.
Saudi Arabia is also prioritizing sustainable development through its Vision 2030.
According to the Kingdom’s national source for government services and information, which outlines the Sustainable Development Goals of Saudi Vision 2030, “the Kingdom of Saudi Arabia endeavors to tackle the issues of poverty, inequality, climate change, prosperity, peace, justice, education, health, social protection and the availability of employment opportunities, and, recognizing the intersecting nature of these issues, ensures they are all included in its national strategy.”
In addition, many other technologies have been developed worldwide to combat climate change, including an innovative solution launched 2017 to develop renewable energy: solar-powered trains.
According to an article by Justyna Matuszak on the Know-How website, this type of green transportation can run for an entire day without needing to recharge. The railway also releases 75 percent of the energy it generates into the ground, as reported by the BBC.
Bladeless wind energy is another technology designed in 2012 by the Spanish startup Vortex Bladeless.
It features is an elastic rod that secures the company’s three-meter tall bladeless turbine vertically into the ground. According to the previously mentioned report, the turbine sways with the wind speed, generating energy from the resulting vibrations.
Due to its design, it is suitable for use in cities or residential areas as it does not require as much space as a traditional wind turbine.
Another new sustainable technology is 3D-printed solar energy trees. Developed by researchers at VTT Technical Research Centre of Finland, the technology, as described in the Know-How report by Matuszak, is a prototype tree that collects solar energy, heat and kinetic energy from its surroundings, whether indoors or outdoors, to generate electricity for small appliances.
By embracing modern sustainable innovations and fostering joint partnerships between the public and private sectors, tackling climate change may become more achievable.
The urgency of climate finance: Is the world ready to commit?
BAKU: As global leaders gather in Baku for the COP29 UN climate change conference, the focus on climate finance has never been more pressing. This year’s conference theme, “Accelerating Climate Action for Sustainable Development,” suggests that climate action must advance economic stability as well as address environmental concerns.
Yalchin Rafiyev, Azerbaijan’s lead negotiator for COP29, has said that “trillions of dollars” are needed to fund the fight against climate change — a significant increase from the longstanding annual target of $100 billion, which itself remains unmet. Vulnerable nations are especially affected by this shortfall, lacking the resources to build resilience against climate impacts.
The need for equitable financing
Delegates from developing regions, including African representatives, have called for climate finance to reflect the distinct economic realities faced by less developed countries.
Shaimaa Al-Sheiby, senior director of strategic planning at OPEC, spoke to Arab News about the importance of ensuring that climate finance meets the needs of developing economies
“In many countries, it’s difficult for governments to sustain economic progress without accessible financing,” Al-Sheiby said. She advocated for wealthier nations and financial institutions to play a greater role in “de-risking” investments in developing markets to attract private capital for renewable projects.
Yusuf Idris Amoke, a Nigerian climate adviser, said: “The Global South is on the receiving end of climate impacts while contributing far less to emissions.”
For these countries, the push to phase out fossil fuels often clashes with immediate economic needs, especially given that alternatives are limited and expensive.
“Financing third world countries or the Global South is key,” Amoke added, saying that transitioning without robust financial support is neither equitable nor feasible.
Voluntary carbon markets and climate solutions
Voluntary carbon markets have been gaining traction as a flexible solution for reducing emissions, especially in regions where compulsory systems have struggled to achieve significant results.
These markets encourage companies to take part in climate initiatives by creating financial incentives, which, as Al-Sheiby said, are essential for involving the private sector.
“Private capital is very shy,” she added, saying that risk-reduction strategies could help attract these funds to where they are most needed.
The success of voluntary markets, however, depends on strong regulatory support, transparency and accountability.
Global initiatives and South-South collaboration
The COP29 Presidency has launched the Baku Initiative for Climate Finance, Investment and Trade, a collaborative platform designed to align climate finance and trade with sustainable development priorities. By convening leaders from developed countries and the Global South, the initiative aims to foster equitable climate solutions.
In Africa, Saudi Arabia’s “Empowering Africa Initiative” exemplifies South-South collaboration. Minister of Energy Prince Abdulaziz bin Salman has signed agreements with Ethiopia, Chad, Senegal and other countries to promote energy equity as well as accelerate the continent’s energy transition. These agreements are set to harness Africa’s vast renewable energy potential, including its 10 terawatts of solar capacity.
Abid Malik, ACWA Power’s geo head for Central Asia, highlighted the importance of fostering local expertise during an interview with Arab News. “Our projects in Africa don’t just bring renewable energy; they create jobs, enhance technical skills and empower local communities to take charge of their energy futures,” he said.
The intersection of climate finance and conflict recovery
The recently announced Baku Call on Climate Action for Peace, Relief and Recovery highlights the role of climate action in stabilizing conflict-affected regions. “Climate-induced challenges such as water scarcity and food insecurity are catalysts for conflict,” said Mukhtar Babayev, COP29 president. “Peace-sensitive climate action is crucial for the most vulnerable.”
Gilles Carbonnier, vice president of the International Committee of the Red Cross, highlighted the environmental fallout in conflict zones like Gaza. “In places like Gaza, where infrastructure has been decimated, renewable energy offers a lifeline,” he told Arab News. “Solar microgrids in refugee camps are providing critical electricity for healthcare and other essential services.”
Charting a path forward
The commitments announced at COP29 reflect a growing recognition of the interconnected challenges of climate finance, energy equity and conflict recovery. With asset owners controlling $10 trillion pledging to accelerate private capital deployment and initiatives like BICFIT gaining momentum, the foundations for transformative change are being established.
For vulnerable nations, these efforts offer a glimmer of hope. However, achieving a just transition will require sustained political will and a reimagining of global financing systems. As COP29 unfolds, the world is watching to see if the pledges made in Baku will translate into tangible action.
Saudi Fund for Development marks 50 years with efforts in emerging economies
RIYADH: As the world is being divided by geopolitical tensions and wars, Saudi Arabia’s development fund is extending a helping hand to emerging nations through soft loans and grants.
Established in 1974, the Saudi Fund for Development has supported more than 800 projects worth $20 billion in over 100 countries.
As it celebrates 50 years since it was founded, the fund’s offerings for developing nations show no signs of slowing down.
Here are the highlights of its activities in the first nine months of 2024.
Water project to Benin
In February, SFD signed a memorandum of understanding with Benin to allocate a $5 million grant to support the implementation of the fifth phase of the Saudi Program for Drilling of Wells and Rural Development.
According to a press statement, the water project is expected to overcome the effects of drought in 37 villages across the West African nation.
“The project will contribute to the growth and prosperity of the infrastructure sector, provide access to water and food security, maintain public health, and reduce environmental pollution, to help achieve the Sustainable Development Goals, specifically SDG 6, clean water and sanitation,” said SFD.
The fund’s development cooperation with Benin started in 2008, with it providing soft loans to finance six development projects and programs worth more than $145 million in the country over the past sixteen years.
Supporting Turkiye’s education sector
In February, SFD signed a $55 million loan agreement with Turkiye to rehabilitate five public schools covering an area of approximately 55,000 sq. meters.
The project will equip these schools with the necessary equipment and resources to protect them against earthquake damage, ensuring the continuity of their quality and efficiency, according to a statement.
Over the past four decades, SFD has financed nine development projects and programs in Turkiye, worth over $300 million, in multiple sectors including energy, health, agriculture, and education.
Empowering transport sector in Tunisia
Earlier this year, the fund signed a development loan agreement worth $55 million to renew and develop the railway network for phosphate transportation in Tunisia.
According to a press statement, the project will help renew approximately 190 km of the system, support increasing the capacity for transporting phosphate, and contribute toward Tunisia’s economic growth by creating direct and indirect job opportunities.
Loan to support clean energy growth in Pakistan
In March, SFD signed two development loan agreements totaling to $101 million to finance the establishment of the Shounter Hydropower and the the Jagran-IV Hydropower Projects in Pakistan.
A loan worth $66 million is intended to construct the 48-megawatt Shounter Hydropower station and connect it to the country’s national electricity grid.
This project also involves dam construction, water diversion and purification structures, powerhouse development and discharge tunnel construction.
The second loan, amounting to $35 million, will help establish the Jagran-IV Hydropower Project, which is set to have a capacity of 22 MW. This project entails the construction of dam, powerhouse, water diversion and purification building, as well as the provision of generators, transformers, necessary equipment, and transmission lines.
“These two agreements mark a continuation of efforts to boost clean energy projects in Pakistan, addressing challenges posed by conventional energy and its associated financial costs,” said SFD.
It added: “Additionally, they underscore the significance of clean energy and its contribution to fostering vital opportunities for sustainable development, aiming to support social development, stimulate economic growth, and meet population basic needs.”
In 2023, SFD financed oil derivatives worth $1 billion for Pakistan, when the South Asian nation was facing a tough economic situation amid dwindling forex reserves and rapidly depreciating national currency.
Supporting energy sector in Saint Kitts and Nevis
In April, SFD signed another development loan agreement worth $40 million to bolster the energy sector in Saint Kitts and Nevis.
According to a press statement, the loan centers on the financing of the expansion of the Needsmust Power Plant Project in the island nation. The project entails the establishment of a state-of-the-art dual-fuel power generation station with a capacity of 18 MW.
“This initiative is poised to significantly enhance the country’s energy production capabilities, contributing to a flexible hybrid power generation platform. It emphasizes efficiency improvements, utilization of clean fuel, and a pivotal step toward sustainable energy practices,” said SFD.
Aid to disaster-affected communities in Saint Vincent and the Grenadines
To support the disaster-affected communities in Saint Vincent and the Grenadines, the SFD in April signed a $50 million developmental loan agreement with the Caribbean nation.
According to a press statement, the agreement aims to finance the construction and rehabilitation of buildings and facilities affected by natural disasters in the country.
“The goal is to enhance the sustainability and resilience of these structures to withstand future disasters and climate change effects. The project encompasses furnishing and equipping buildings with necessary equipment, including the establishment of four health care facilities, construction of primary and secondary schools, government buildings, and rehabilitation of damaged houses by volcano, among other infrastructure works,” said SFD.
SFD enters El Salvador and Nicaragua
In June, SFD forayed into El Salvador and Nicaragua by signing developmental loan agreements with these nations.
The fund signed a $83 million deal with El Salvador to fund a water treatment and biogas power generation project in the Central American country.
“The project will treat wastewater that currently flows into the Acelhuate River, while also producing biogas for renewable electricity generation. Expected to benefit over 1.2 million people, it will significantly increase El Salvador’s renewable energy capacity, and contribute to environmental sustainability,” said SFD.
#Infographic | A first developmental step; for effective sustainable development #SFD Signed the first development loan agreement worth $103 million; to support the health sector in the Republic of #Nicaragua.#ProsperTogether pic.twitter.com/UqisoTrZPp
— الصندوق السعودي للتنمية (@SaudiFund_Dev) June 7, 2024
In the same month, the fund signed another developmental loan agreement worth $103 million with Nicaragua to finance the development of the Carlos Centeno Departmental Hospital in the Central American nation.
According to a press statement, the fund will be used to construct a 25,000-sq.-meter hospital with a capacity of 300 beds, serving the surrounding regions.
The facility will also include specialized clinics for surgery, comprehensive child immunization, training and qualification of medical personnel, emergency departments, and a full range of integrated health care services.
Supporting socio-economic growth in Dominica
In September, SFD signed a developmental loan agreement worth $41 million with Dominica to enhance socio-economic growth in the country.
The agreement aims to rehabilitate seven main streets in Roseau, which will help improve road connectivity, reduce congestion, enhance safety and access to basic services, as well as facilitate the smoother movement of people and goods, according to a press statement.
#Video | The signing ceremony for the first development loan agreement worth $41 million, provided by #SFD to finance the Infrastructure Rehabilitation project in the capital, Roseau, of the Commonwealth of #Dominica.#ProsperTogether#SFD50 pic.twitter.com/rxLkdQWMJ6
— الصندوق السعودي للتنمية (@SaudiFund_Dev) September 15, 2024
The loan will also contribute to commercial and residential development and create numerous job opportunities.
In the same month, SFD also signed a deal worth $25 million to co-finance the development of renewable energy infrastructure in the Solomon Islands.
The financing initiative aims to reduce dependency on fossil fuels and promote sustainable development in the Oceanian nation.
Startup Wrap — Proptech leads startup investment in region as sector sees funding drop
RIYADH: Saudi Arabia’s real estate tech platform Ejari secured the largest startup investment across the Middle East and North Africa in October as the region faced a funding slowdown.
The firm benefited from a $14.65 million seed financing round led by PFG and BECO Capital, underscoring the importance of early-stage investments.
This success came against a backdrop of a funding fall for the MENA region, which saw $134 million secured across 56 deals.
This represented a 52 percent month-on-month decline and a 13 percent decrease from the same period last year, indicating ongoing challenges in the region’s investment climate, according to Wamda’s monthly report.
Debt financing played a notable role, accounting for $28.4 million, or 21 percent of the total amount.
UAE-based startups led the region, raising $61.8 million across 15 deals, while Saudi Arabia followed closely with $50 million raised across 21 transactions.
Kuwait’s position was boosted by property technology firm Sakan’s $12 million round, contributing to a total of $13.5 million secured by Kuwaiti entrepreneurs.
The Egyptian startup scene struggled, with only eight startups raising a combined $1.6 million, highlighting a sharp downturn.
Meanwhile, Tunisian and Qatari startups performed comparatively well, securing $3 million and $2.7 million, respectively.
Fintech, which had dominated the region’s funding landscape earlier in the year, fell to second place in October.
Proptech took the lead, attracting $38 million over five deals.
The e-commerce sector raised $14.6 million, while education technology startups secured $11 million across seven deals.
Investor preference leaned toward early-stage startups, with seed funding accounting for $40 million, or 30 percent of the total raised.
Series A investments reached $20 million across three deals, and pre-seed funding contributed $15.5 million. Notably, nine startups secured $25.8 million without disclosing their stage.
The business-to-consumer model was the favored choice, garnering $83.8 million across 19 startups, while business-to-business ventures attracted $42.4 million over 27 deals.
Ten startups operating a hybrid model received nearly $8 million.
Female-founded firms saw an encouraging rise, collectively raising $10.5 million across four transactions.
However, male-founded startups continued to dominate, securing $115 million across 31 deals.
Saudi open banking startup Lean closes $67.5m in series B round
Lean Technologies, a Saudi-based open banking platform, has raised $67.5 million in a series B funding round led by US-based General Catalyst.
This round marks one of the largest equity investments by a US venture capital firm in Saudi Arabia’s fintech sector. Other participants included Bain Capital Ventures, Duquesne Family Office, and Arbor Ventures.
Founded in 2019 by Hisham Al-Falih, Ashu Gupta, and Aditya Sarkar, Lean provides businesses with access to bank data and payment solutions.
The company, regulated by the Abu Dhabi Global Market, claims it has processed over $2 billion in transactions through its account-to-account payment offerings, serving clients like e&, DAMAC, and Careem.
In Saudi Arabia, Lean’s launch of data services under the Saudi Central Bank’s regulatory sandbox has facilitated nearly 1 million bank account verifications, supporting clients in sectors such as insurance, lending, and e-commerce, including companies like Tawuniya, Abdul Latif Jameel Finance, and Salla, as well as Tabby, and Tamara.
Al-Falih, CEO of Lean Technologies, stated that the funding will be used to expand Lean’s product offerings and support its growth strategy across the Middle East.
“Our aim is to enhance the financial ecosystem by providing accessible solutions that meet the needs of businesses and consumers alike,” Al-Falih said.
Neeraj Arora, managing director at General Catalyst, said: “Lean has demonstrated a strong commitment to solving local market needs and has earned significant customer loyalty. We see Lean as a key player in building the infrastructure needed for the region’s fintech growth.”
The new funding is expected to bolster Lean’s pay-by-bank and open banking solutions, allowing the company to scale operations and deepen its market presence in the region.
UnifyApps secures $20m to fuel ME expansion
UAE-based Software-as-a-Service solutions provider UnifyApps has closed a $20 million series A funding round led by Iconiq Growth, with participation from Elevation Capital.
The round brings UnifyApps’ total funding to $31 million since its inception in 2023. The company, co-founded by Pavitar Singh, Abhishek Khurana, focuses on automating enterprise workflows across multiple applications.
“UnifyApps understands that you need a holistic approach to achieve trusted, effective AI agents,” said Matt Jacobson, general partner at Iconiq Growth.
“By aligning every data source and application to an enterprise use, they are enabling AI to actually understand and orchestrate work,” he added.
Pavitar Singh, CEO of UnifyApps, emphasized the strategic value of the new partnership: “UnifyApps is deeply grateful for the opportunity to work with Iconiq Growth. Their deep network and partnership will be instrumental in our next stage of growth as we bring our AI agent platform to enterprises everywhere.”
UAE’s Epik Foods raises $15.5m
Epik Foods, a UAE-based food and beverage group, has raised $15.5 million in private capital funding from Ruya Private Capital I, LP, a fund managed by Ruya Partners.
The funding will be used for acquisitions, working capital, and supporting the company’s expansion plans, particularly into Saudi Arabia, as well as strengthening its presence in the UAE.
Established by Khaled Fadly and Ranya Basyuni, Epik Foods was formed in 2023 following a merger of three F&B entities – KR&CO, Sweetheart Kitchen, and Happy Platters Kitchens – in partnership with Gulf Islamic Investments, a Shariah-compliant global investment firm which manages over $4.5 billion in assets.
Epik Foods currently oversees a portfolio of 60 food and beverage brands operating across 50 locations in the UAE and Saudi Arabia, with an additional 20 outlets slated to open as part of its ongoing expansion strategy.
Efreshli advances interior design tech with new funding round
Egyptian interior design startup Efreshli has raised an undisclosed amount in its latest seed round, led by Algebra Ventures.
The round also saw participation from 500 Startups, Dar Ventures, and various angel investors.
Founded in 2019 by Heba El-Gabaly, Efreshli leverages virtual decor tools to help customers visualize room setups before making purchases.
CEO El-Gabaly expressed optimism about the company’s growth trajectory, saying: “I’m excited about this significant milestone for Efreshli. With new funding and with Dina El-Haddad joining as co-founder and CPO (chief product officer), we can accelerate our tech-driven growth and take Efreshli to new heights.”
El-Haddad added: “I’m thrilled to be part of Efreshli’s journey to revolutionize the home furnishing experience. Efreshli’s future is more than just furniture; it’s about building an entire ecosystem. With innovations like Efreshli Pro, we’re connecting the dots for everyone, from customers to designers.”
The new funding will be directed toward enhancing Efreshli’s offerings and expanding its product line, reinforcing its mission to make interior design accessible across the region.
Yemen and Iraq lead call for more crisis finance
BAKU: A group of conflict-affected countries led by Iraq and Yemen is pushing at the COP29 climate talks to double financial aid to more than $20 billion a year to combat the natural disaster and security crises they face.
States mired in conflict or its aftermath have struggled to access private investment, because they are seen as too risky. That means UN funds are even more critical to their people, many of whom have been displaced by war and weather.
In response, the COP29 Azerbaijan presidency on Friday launched launch a new “Network of Climate-vulnerable Countries,” including Iraq, Yemen, Burundi, Chad, Sierra Leone, Somalia and Timor-Leste. They all belong to the g7+, an intergovernmental group of fragile countries that first sent the appeal.
The network aims to advocate as a group with climate finance institutions, build capacity in member states so they can absorb more finance, and create country platforms so investors can more easily find high-impact projects in which to invest, said think tank ODI Global, which helped the countries create the network.
“My hope is it will create a real platform for the countries in need,” said Abdullahi Khalif, chief climate negotiator for Somalia.
