Search form

You are here

  • Home
  • Saudi inflation driven up by food and vehicle prices as VAT hangover lingers


Saudi inflation driven up by food and vehicle prices as VAT hangover lingers

Food and beverage prices were the main driver in the rising cost of living, rising by 7.3 percent. (Supplied)
Short Url

https://arab.news/gf8nv

Updated 16 June 2021
Arab News
Follow

Saudi inflation driven up by food and vehicle prices as VAT hangover lingers

  • Prices rose 5.3 percent the previous month according to data from the General Authority for Statistics
Updated 16 June 2021
Arab News

RIYADH: Saudi inflation rose for a second straight month as the consumer price index hit 5.7 percent.

Prices rose 5.3 percent the previous month according to data from the General Authority for Statistics.

The pickup in inflation highlighted the continuing impact of higher value added tax (VAT) which was increased to 15 percent in July 2020 from 5 percent before.

Transport prices also increased by 19.3 percent, led by the rising cost of buying a vehicle.

However food and beverage prices were the main driver in the rising cost of living, rising by 7.3 percent. Food represents a weighting of 17 percent in the Saudi consumer basket that economists use to measure the cost of living in the country. “In particular, the increase in the prices of meat (6.8 percent) and vegetables (6.7 percent) was remarkable. Food prices were the main driver of the inflation rate in May 2021,” the authority said in a statement.

Food prices are accelerating across the Arab world with Egypt this week also reporting a pick-up in inflation to 4.8 percent year-on-year in May, up from 4.1 percent the previous month. It comes as the United Nations Food Agency predicts a double-digit spike in global food import costs this year.

“Looking ahead, the headline inflation rate is likely to peak in June at around 6.3 percent year-on-year,” James Swanston, Middle East and North Africa Economist at London-based Capital Economics, said in a research note.

“But, from July, inflation will drop sharply as the base effects of the tripling of the VAT rate last year drop out of the annual price comparison. We think that the headline rate will slow to around 1.0-1.5 percent year-on-year and remain at this pace over the course of this year and throughout 2022-23,” he added. At the same time, the Wholesale Price Index (WPI), which surveys the pre-retail prices of 343 items, rose 17.5 percent in May, mainly on the back of a surge in the price of chemicals and refined petroleum products and the ongoing impact of VAT.

The WPI reported that basic chemicals prices rose 38.4 percent year-on-year, refined petroleum products rose 29.9 percent and the price of metal products, machinery and equipment grew by 18.1 percent, spurred on by a 35.6 percent surge in the price of basic metals over the last year.

Topics: Saudi Arabia VAT Inflation

Related

Sport
Saudi U-23 squad concludes Spanish training camp as Olympic preparation enters final phase
Business & Economy
Saudi flower farm Astra plucked by Dubai-based Floranow

Saudi Arabia on track to lead global hydrogen market

Updated 10 sec ago
MOHAMMED AL-KINANI
Follow

Saudi Arabia on track to lead global hydrogen market

  • Kingdom aiming to be responsible for 15 percent of world’s blue hydrogen production
Updated 10 sec ago
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia is positioning itself as a leader in the hydrogen economy, with significant investments in both green and blue versions of the fuel with the aim to generate half of the Kingdom’s electricity from renewable sources by 2030.

With its commitment to achieving net-zero emissions by 2060, strategic partnerships, and projects like NEOM’s hydrogen initiative, Saudi Arabia is paving the way for a sustainable, hydrogen-powered future.

Saudi energy giants, including Aramco and ACWA Power, are leading major projects in this area aligned with the country’s sustainability goals.

ACWA Power’s Sudair solar plant, with a 1,500 megawatt capacity, will offset 2.9 million tonnes of carbon emissions annually. Aramco is also involved in $30 billion renewable energy projects with the Public Investment Fund and other partners.

Yaseen Ghulam, associate professor of economics and director of research at the Riyadh-based Al-Yamamah University, told Arab News that Saudi Arabia plans to invest up to $10 billion in green hydrogen manufacturing firms, aiming to be responsible for 15 percent of the world’s blue hydrogen production. “Aramco aims to generate 11 million tonnes of blue ammonia annually by 2030. In a well-established plan, Saudi Arabia is aggressively investigating the application of hydrogen in many fields. More specifically, the country is also exploring hydrogen applications in industrial, power generation, and transportation, and car fuel for fuel cell-powered vehicles,” Ghulam said.

He added that the country’s Vision 2030, smart trade relationships with Europe and Asia, technological advancements, and government support are driving these plans and progress in the hydrogen energy sector.

The expert noted that integrating hydrogen into Saudi Arabia’s blue economy is a key strategy for sustainable growth, with green hydrogen set to transform industries like transportation, steel production, and heavy-duty vehicles.

“The global green hydrogen market is expected to see annual growth of more than 40 percent by 2030, reaching $72 billion. By 2050, the demand for green hydrogen could replace 37 percent of the world’s oil production. Saudi Arabia, with its focus on the blue economy since the start of Vision 2030, is making efforts to transition to this next stage by producing and using green hydrogen,” he said.

The academic emphasized that Saudi Arabia’s natural environment — specifically its sunny, windy desert landscapes — creates favorable conditions for green hydrogen production. Youssef Saidi, a research fellow at the Economic Research Forum and a member of the Saudi Economic Association, agreed with Ghulam, adding that the abundant renewable energy resources, including solar, wind, and geothermal, make the Kingdom an ideal location for green hydrogen production. 

The global green hydrogen market is expected to see annual growth of more than 40 percent by 2030, reaching $72 billion. By 2050, the demand for green hydrogen could replace 37 percent of the world’s oil production. Saudi Arabia, with its focus on the blue economy since the start of Vision 2030, is making efforts to transition to this next stage by producing and using green hydrogen.

Yaseen Ghulam, Associate professor of economics and director of research at Al-Yamamah University

Ghulam noted that green hydrogen has potential applications in numerous industries that are expected to play a prominent role in the success of Vision 2030, including transportation, steel production, ammonia manufacturing, and heavy-duty vehicles.

“It can also be used for energy storage, powering transportation, and stabilizing the electrical grid. Currently, many industries that are vital for the blue economy are ready to accept hydrogen, and some industries, such as shipping, transportation, and heavy industry, are preparing for it in the near future,” he said.

Discussing the cost of hydrogen energy production, Ghulam stated that global prices are expected to range between $2 and $7 per kilogram, while Saudi Arabia’s cost is projected to be just $2.16 per kilo.

He noted, however, that if domestic natural gas prices remain stable, the cost of producing blue hydrogen could drop to $1.13 per kilogram. “This will, of course, help the Kingdom’s blue economy progress steadily in the next few decades and beyond,” he said.

According to the International Energy Agency, global hydrogen investments have surged, with the NEOM Hydrogen Project leading the way as the largest to reach a final investment decision, boasting 2.2 gigawatts of electrolyzer capacity.

Ghulam pointed out that Saudi Arabia’s success in the hydrogen sector is also driven by strong international collaborations, such as joining the International Partnership for Hydrogen and Fuel Cells in the Economy, a global initiative aimed at advancing hydrogen and fuel cell technologies.

He added that NEOM, ACWA Power, and Air Products have also formed a $500 billion renewable energy-powered Helios Green Hydrogen and Ammonia Project.

“The facility is expected to produce 650 tonnes of green hydrogen daily by 2026,” he said, adding that Aramco, MIG, and IE have partnered to establish new green hydrogen and ammonia production facilities.

“Germany and the Kingdom are collaborating to develop clean hydrogen technology. King Abdullah University of Science and Technology, NEOM’s Education, Research, and Innovation Foundation along with Enowa, NEOM’s sustainable energy and water systems subsidiary, have recently made agreements to promote the hydrogen economy,” he said.

According to Saidi, the King Salman Energy Park, the Blue Ammonia Supply Chain project, Hydrogen City within the NEOM megaproject, and the Helios Green Fuels Project are all ambitious renewable power initiatives.

He added that these are not the only developments, as the Kingdom has all the resources needed to position itself as a global leader in the renewable energy market and play a key role in achieving long-term global carbon neutrality goals.

Ghulam noted that the demand and supply of hydrogen energy are expected to grow exponentially due to the growing focus on clean energy, as Saudi Arabia is distinguishing itself compared to major global hydrogen producers. 

He noted that 10 percent of the world’s energy may come from hydrogen by 2050, resulting in a market value of up to $700 billion. “The clean hydrogen market is expected to increase to $640 billion in 2030, compared to the $160 billion in 2022,” the associate professor said.

He explained that while the EU aims to produce 10 million tonnes of green hydrogen and import an additional 10 million tonnes, Saudi Arabia is aiming to become the world’s largest exporter of the fuel by 2030, producing 1.2 million tonnes of green hydrogen.

“The Kingdom’s location along trade routes allows for fast shipping of hydrogen to markets in Northern Europe, South Korea, Japan, and Singapore,” he said.

He said that the Kingdom’s expertise as a major international oil producer — and the existing related infrastructure — offer a strong basis for developing and expanding green hydrogen export capabilities.

“King Abdullah Petroleum Studies and Research Center estimates that financing costs in the Kingdom are at least 200 basis points less than those in Germany, with green hydrogen costing between $1- $2/kg, making it the cheapest producer with clear comparative advantage in international trade of this vital product,” the associate professor said.

More importantly, he concluded, the Kingdom’s ambition to retain its dominance in the international energy trade remains strong, driven by substantial investments and advancements in the hydrogen energy sector.

Meanwhile, Saidi told Arab News that Saudi Arabia is set to play a key role in the global energy transition, leveraging its expertise to develop and scale hydrogen production.

He added that the Kingdom’s abundant hydrocarbon resources can support blue hydrogen production through Steam Methane Reforming with carbon capture and storage.

Saidi explained that international partnerships and private investment are driving Saudi Arabia’s hydrogen sector growth. He noted that the Kingdom aims to become a global hydrogen supplier and has established several joint ventures to develop the necessary infrastructure. “These include partnerships between Air Products and ACWA Power, SABIC and ExxonMobil, and Air Liquide and Tasnee,” he said.

He emphasized that international partnerships enable Saudi Arabia to access cutting-edge technologies and expertise in hydrogen production, storage, and transportation.

Saidi added that these deals also provide market access, which is crucial for scaling up hydrogen production and positioning the Kingdom as a global leader in clean energy.

Topics: Saudi Arabia hydrogen economy

Related

Business & Economy
KAUST, NEOM partner to boost Saudi Arabia’s hydrogen economy plans
Exclusive
Business & Economy
Saudi Arabia has important role to play in hydrogen economy: Siemens Energy CEO

How Saudi Arabia is reshaping the global talent landscape

Updated 7 min 42 sec ago
Reem Walid
Follow

How Saudi Arabia is reshaping the global talent landscape

  • The influx of international talent is vital for advancing key sectors such as healthcare, tourism, and renewable energy
Updated 7 min 42 sec ago
Reem Walid

RIYADH: In the field of attracting global talent, Saudi Arabia stands out as a hub of innovation and opportunity, recruiting skilled professionals from all over the world to drive growth in key sectors including technology, finance, and manufacturing.

With a strong focus on talent development and labor market improvements, initiatives such as the Premium Residency program represent an important step in transforming the Kingdom’s workforce.

More than 2,600 healthcare workers became beneficiaries of this scheme, dubbed the Saudi Green Card, in October – a clear sign that the Kingdom is proactively working to secure international talent within the country’s borders

How Saudi Green Card is reshaping landscape for global talent attraction in Saudi Arabia

Launched in 2021, the Premium Residency program offers long-term residency to skilled workers, entrepreneurs, and investors to create a more competitive environment for top professionals.

It offers expats access to benefits available to Saudi nationals, including the ability to own property, start businesses, and make use of public services. 

Raymond Khoury, partner and public sector practice lead, at Arthur D. Little, Middle East, believes the program will positively impact key sectors by attracting the talent  needed to service the growing population — set to rise from 34.4 million today to 55 million by 2030.

“Such incentives allow skilled professionals to have a more stable personal life environment with their families and the facility to make long-term investments in their careers – a better work-life balance in general,” Khoury told Arab News.

The Arthur D. Little partner went on to note that attracting skilled professionals in sectors like healthcare, technology, tourism, and renewable energy will help diversify Saudi Arabia’s economy, reduce oil dependency, and boost gross domestic product through innovation and strategic partnerships in non-oil industries.

“The program also facilitates international professionals in academia and research, allowing for stronger collaborations between universities and private institutions in Saudi Arabia and their international counterparts,” he said.

Khoury added that while the initiative does face challenges, such as the time it takes for international talent to adapt to local cultural and legal norms, these can be mitigated by providing clear integration pathways and support for newcomers. 

The international talent infusion not only accelerates progress within key sectors but also drives cultural and intellectual exchange, fostering long-term growth and innovation.

Raymond Khoury, Partner and public sector practice lead at Arthur D. Little, Middle East

While Saudi Arabia has this program, its Gulf Cooperation Council neighbors, such as UAE and Qatar, have their own talent attraction schemes in place, meaning there is competition for skilled professionals, Khoury explained. Abhishek Sharma, partner at Oliver Wyman’s Government and Public Institutions practice for India, Middle East and Africa, said the Kingdom’s Premium Residency program is transforming the expatriate model by attracting highly skilled professionals.

“Given the Kingdom’s large-scale economic ambitions and the significant opportunities emerging across various sectors, these factors collectively position Saudi Arabia as an increasingly attractive destination for global talent,” Sharma told Arab News.

The Saudi Green Card is improving talent mobility especially in technology, by allowing professionals to work and live without a sponsor, he added. 

This supports Vision 2030’s goal of making Saudi Arabia an innovation hub, and boosts technological growth in sectors like artificial intelligence and digital transformation, according to Mamdouh Al-Doubayan, managing director of Middle East and North Africa at Globant.

“However, while attracting global talent is crucial, sustainable growth depends on balancing international expertise with local knowledge development. The real opportunity lies not just in recruitment but in fostering a dynamic, homegrown workforce capable of driving long-term digital adoption,” Al-Doubayan told Arab News.

International talent influx 

The influx of international talent is vital for advancing key sectors in Saudi Arabia, such as technology, healthcare, tourism, and renewable energy — all of which support Vision 2030’s goal of reducing oil dependence and fostering a sustainable, knowledge-based economy.

Khoury believes innovation and technology advancement across core and adjacent sectors is critical in creating innovation hubs and driving the digital transformation of industries.

“This also covers supporting technology research, development and innovation startups and an encompassing ecosystem that fosters knowledge transfer and international collaboration,” he said.

Healthcare was raised as an area where attracting skilled medical professionals — doctors, nurses, and researchers — can effectively and efficiently improve patient outcomes, introduce advanced medical practices, and lead groundbreaking research. 

By incentivizing industries that rely on highly skilled professionals, Saudi Arabia can accelerate sectoral growth and enhance its overall economic contribution.

Abhishek Sharma, Partner at Oliver Wyman’s Government and Public Institutions practice

“Establishing the Kingdom as an attractive medical tourist destination is part and parcel of some mega-projects — for example the Red Sea project — today under Vision 2030,” Khoury said.

The Arthur D. Little partner also highlighted that improving the education sector in Saudi Arabia is essential for building a knowledge-based economy, particularly in STEM fields.

Attracting international talent in tourism, hospitality management, event planning and arts development is key for Saudi Arabia, particularly for destinations such as Qiddiya and the Red Sea project, where the target is to attract and service between 60 million and 70 million visitors per year by 2030.

“Such a large target requires domain knowledge of global trends and international best practices, which international talent can bring in a timely manner,” Khoury said.

He also flagged the need for international expertise in green technologies as being crucial for Saudi Arabia’s Vision 2030, especially in renewable energy. Global partnerships and innovative solutions will aid in achieving net-zero emissions, optimizing energy efficiency, and creating sustainable business models.

“The international talent infusion therefore not only accelerates progress within key sectors but also drives cultural and intellectual exchange, fostering long-term growth and innovation for the Kingdom,” Khoury said.

Knowledge economy

From Oliver Wyman’s side, Sharma explained that human capital is a key driver of economic growth, with skilled professionals fostering expansion, which in turn attracts more talent. Saudi Arabia is set to experience this positive cycle over the next seven to 10 years.

“As the Kingdom advances toward its Vision 2030 goals, transitioning to a knowledge-based economy, improving the overall quality, skill level, and productivity of the workforce will be critical. By incentivizing industries that rely on highly skilled professionals — such as professional services, technology, and advanced manufacturing — Saudi Arabia can accelerate sectoral growth and enhance its overall economic contribution,” he said. 

While attracting global talent is crucial, sustainable growth depends on balancing international expertise with local knowledge development.

Mamdouh Al-Doubayan, Managing director of Middle East and North Africa at Globant

According to Al-Doubayan from Globant, international talent is crucial to the Kingdom’s shift toward a knowledge-based economy, bringing specialized skills and innovative approaches, particularly in technology. 

Collaborating with local professionals drives progress, supports Vision 2030’s goals of economic diversification, and enhances competitiveness in a digital, AI-driven world.

“By integrating global expertise with local capabilities, Saudi Arabia is not only strengthening its workforce but also creating an environment where homegrown talent can thrive. The impact goes beyond immediate job creation — it builds a long-term, self-sustaining innovation ecosystem that reduces reliance on traditional industries and positions the Kingdom as a leader in digital transformation,” he said.

Future strategies 

As Saudi Arabia aims to become a global hub for business, technology, and culture through Vision 2030, the ongoing influx of international talent will play a crucial role in driving economic growth and fostering innovation.

Arthur D. Little’s Khoury believes that enhancing immigration policies, including expanding programs like the Saudi Green Card, could see tailored benefits being offered to professionals in sectors such as renewable energy, AI, and biotech, as well as healthcare and fintech, providing long-term opportunities.

He explained that availing and advancing innovation hubs and ecosystems in support of attracting and retaining tech entrepreneurs, researchers, and innovators, is vital, as is offering them not only business opportunities but also a platform to collaborate with global experts in their fields. 

“This is a key focus of the Saudi Research Development and Innovation Authority in its aim to bolster RDI capabilities and create a compelling environment for leading scientists, engineers, and researchers,” Khoury said.

He added that the government is boosting investments in incubators, accelerators, and venture capital to support local and international startups, aiming to create a diverse innovation ecosystem and foster new tech-driven industries.

Additionally, the partner explained how the Kingdom’s investment in education and upskilling initiatives to build a knowledge-based economy, focusing on attracting international students and researchers while pairing global talent with local professionals, will enhance expertise.

“Having a skilled and diverse workforce will better enable Saudi Arabia to effectively compete on the international stage and attract more high-value investments that will spur further economic development and prosperity,” Khoury said.

Oliver Wyman’s Sharma highlighted attracting top talent is key to the Kingdom’s goal of becoming a global leader in AI.

He said that a parallel strategy of aggressively upskilling the local workforce will be “equally critical” in sustaining long-term economic and innovation-driven growth.

Al-Doubayan from Globant explained with growing demand for skilled professionals in technology, entertainment, and sustainability, organizations must offer not just jobs but upskilling, career development, and innovation-driven environments to position the Kingdom as a long-term career destination.

He said: “The increasing integration of AI across industries is intensifying competition for top talent. Organizations now face a paradigm shift: moving from simply retaining talent to empowering professionals to grow, innovate, and remain engaged within the Kingdom’s evolving workforce. The key challenge is no longer just recruitment — it is creating an environment where individuals choose to stay despite global demand for elite professionals.”

Topics: Saudi Arabia

Related

Business & Economy
Saudi economy minister highlights multiple factors reshaping investment landscape at FII8
Special
Business & Economy
Entrepreneurial wave reshaping Saudi economy and global standing

MENA firms raise $180m in 7-day funding blitz

Updated 44 min 53 sec ago
Nour El-Shaeri
Follow

MENA firms raise $180m in 7-day funding blitz

  • Activity reflects continued investor confidence in multiple sectors
Updated 44 min 53 sec ago
Nour El-Shaeri

RIYADH: Startups across the Middle East and North Africa kicked off the second quarter of 2025 with a wave of funding rounds, acquisitions, and strategic mergers.

The activity reflects continued investor confidence in sectors ranging from fintech and food tech to health tech and Software-as-a-Service. 

Saudi Arabia and the UAE led the charge, underscoring their growing prominence as hubs for regional startup innovation. 

Fintech startup Erad, based in the Kingdom, has raised $16 million in a pre-series A funding round with participation from Y Combinator, Nuwa Capital, and Khwarizmi Ventures, as well as Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital. 

The round follows its $2.4 million pre-seed raise three years ago, backed by several of the same investors. 

Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Al-Meheini, and Youssef Said, Erad provides Shariah-compliant, data-driven financing to micro, small and medium-sized enterprises in Saudi Arabia and the UAE. 

UAE-based fintech Fuze has raised $12.2 million in a series A round led by Galaxy and e& capital, with participation from Further Ventures. (Supplied)

“While SMEs continue to power the GCC (Gulf Cooperation Council) economy, entrepreneurs in retail, F&B (food and beverage), healthcare, and beyond struggle to secure the capital they need to scale up. Over 60 percent of our customers are first-time credit takers, and we are proud to be partners in their growth while fostering financial inclusion,” Abu-Hammour said. 

The company claims its platform enables access to funding in as little as 48 hours. The new capital will support Erad’s geographic expansion, local hiring, and product development, aligning with Saudi Vision 2030’s goals to increase SME economic contribution.

Techrar secures $1.6m to scale recurring billing platform 

Techrar, a Saudi subscription and billing management platform, has raised $1.6 million in funding led by Wa’ed Ventures, the venture capital arm of Aramco. 

Founded in 2022 by Safwan Saigh, Fawzan Al-Khlawi, and Rania Shaker, Techrar focuses on managing subscriptions, memberships, and recurring billing. 

The investment will be used to expand the team, develop new products, and support customer acquisition.

iMENA Group secures $135m  pre-IPO investment 

Saudi-based iMENA Group has raised $135 million in a pre-initial public offering funding round through a combination of private placement and in-kind contributions. 

The round included participation from Sanabil Investments, FJ Labs, and SellAnyCar founder Saygin Yalcin, among other Saudi investors. 

Co-founded in 2012 by Nasir Al-Sharif, Khaldoon Tabaza, and Adey Salamin, iMENA is the parent company of platforms including OpenSooq, SellAnyCar, and Jeeny. 

The company will use the funds to increase its stake in these core businesses, pursue vertical and geographic expansion, and improve operational synergies across its portfolio. 

Healthtech startup Tuba raises $8m pre-seed round 

Saudi Arabia-based health tech startup Tuba has secured $8 million in a pre-seed funding round led by Al-Waalan Investment with participation from angel investors.  

Founded in 2025 by Fayez Al-Anazi, Tuba leverages artificial intelligence to enhance healthcare management by improving operational efficiency and creating more transparent, patient-centric experiences. 

The funds will be used to build technical infrastructure, grow the team, and scale operations in line with its vision of digitally transforming the healthcare sector. 

STV launches $100m Shariah-compliant fund

STV has announced the final close of its $100 million STV NICE Fund I, a non-dilutive capital vehicle aimed at supporting the growth of tech startups in Saudi Arabia through Shariah-compliant financing solutions.

Backed by SAB Invest’s Alternative Financing Fund, a CMA-licensed private fund, and several regional family offices, the initiative is supported by the National Technology Development Program.

The fund seeks to fill a key financing gap by offering non-dilutive capital to early- and growth-stage technology ventures.

Fuze raises $12.2m to expand infrastructure 

UAE-based fintech Fuze has raised $12.2 million in a series A round led by Galaxy and e& capital, with participation from Further Ventures. 

Founded in 2023 by Mo Ali Yusuf, Arpit Mehta, and Srijan Shetty, Fuze provides Digital-assets-as-a-Service, over-the-counter trading, and stablecoin infrastructure. 

The company says it has processed over $2 billion in digital asset volume to date. The funds will be used to accelerate regional and global expansion, enhance product offerings, and grow the team. 

Calo enters UK market through dual acquisition 

Saudi-headquartered food tech startup Calo has expanded into the UK with the acquisition of Fresh Fitness Food and Detox Kitchen, two established brands in the health-focused food delivery sector. 

Founded in Bahrain in 2019 by Ahmed Al-Rawi and Moayed Al-Moayed, Calo offers personalized meal subscriptions for health-conscious consumers. 

The company raised $25 million in a series B round in December 2023, led by Nuwa Capital, with participation from STV, Khwarizmi Ventures, and regional family offices. 

Calo currently operates in Saudi Arabia, the UAE, and Bahrain, as well as Qatar and Kuwait, and plans to go public in Saudi Arabia by 2027. 

Miran and Welnes merge to form holistic health platform 

AI-driven health and fitness app Miran has merged with Welnes, a fitness community platform, in a strategic move to combine personalized technology with a community-based approach. 

Miran offers tailored meal plans, workout routines, and health insights through AI. Welnes, backed by Flat6Labs, Samurai Incubate, UI Investments, and angel investors, connects users with coaches and wellness programs. 

The merged entity aims to deliver a comprehensive health platform targeting the growing wellness market in Saudi Arabia. 

Zest Equity raises $4.3m to scale secondary shares platform 

Zest Equity, a UAE-based fintech enabling secondary share transactions, has raised $4.3 million in pre-series A funding. 

The round was led by Prosus Ventures and included participation from Morgan Stanley Inclusive and Sustainable Ventures. 

Founded in 2021 by Rawan Baddour and Zuhair Shamma, Zest Equity facilitates secondary share sales for ecosystem participants such as founders and venture capitalists. 

The company will use the capital to grow in Saudi Arabia and the UAE, hire specialized talent, and develop its technology infrastructure. Zest previously raised $3.8 million in a seed round in October 2023. 

BloomPath raises $1.3m pre-seed to enhance workflow analytics 

US-based SaaS startup BloomPath has raised $1.3 million in a pre-seed round led by RAED Ventures, with participation from Ulu Ventures, Wamda Capital, +VC, and angel investors. 

Founded in 2024 by Mohammad Kotb and Ahmed Gad, BloomPath offers AI-powered workflow tools designed to track progress, analyze patterns, and monitor team performance. 

The funding will support product development, team expansion, and customer acquisition. 

Hushday raises $550k to launch premium retail platform 

UAE-based e-commerce startup Hushday has raised $550,000 in a pre-seed round from undisclosed regional investors. 

Founded earlier this year by Jennifer Cohen Solal and Riad Djabri, Hushday offers an invitation-only platform for consumers to access premium and luxury brands’ excess inventory while preserving brand positioning and pricing. 

The company plans to launch in the UAE and expand into Saudi Arabia, Qatar, and Kuwait. 

iQ Cars raises 7-figure seed round to expand automotive platform in Iraq 

Iraq-based automotive platform iQ Cars has raised a seven-figure seed round led by Euphrates Ventures. 

Founded in 2020 by Amer Salih, iQ Cars operates an online marketplace featuring more than 34,000 car listings and over 1,000 dealerships. 

The company, now registered as Iraq’s first private joint stock company, plans to expand across the country while enhancing transparency and innovation in the sector, according to a press release.

Topics: Start-up of the Week MENA

Related

Business & Economy
Think local: How startups can successfully expand into Saudi Arabia’s fast-growing market
Business & Economy
Saudi Arabia’s webook.com eyes billion-dollar valuation, global expansion

Pakistan’s factory PMI dips in early sign of global tariff headwinds

Updated 03 May 2025
Reuters
Follow

Pakistan’s factory PMI dips in early sign of global tariff headwinds

  • New orders slumped while export orders in particular plummeted
  • Employment fell for a second month as manufacturers cut costs
Updated 03 May 2025
Reuters

KARACHI: Pakistan’s manufacturing sector growth slowed to a seven-month low in April, with the HBL Pakistan Manufacturing Purchasing Managers’ Index (PMI)easing to 51.9 from 52.7 in March, as concerns over global trade weighed, HBL said in a press release.
The latest dip in the index hints at the impact of US President Donald Trump’s trade tariffs, said Humaira Qamar, Head of Equities & Research at HBL.
“We believe that the latest PMI dips are early signs of the headwinds to the global economy from the introduction of US tariffs,” said Humaira Qamar — Head Equities & Research at HBL.
New orders slumped while export orders in particular plummeted. Employment fell for a second month as firms cut costs, said Qamar.
Qamar warned that any US stagflation would hurt Pakistan’s exports, particularly to the US which accounts for 18 percent of its total, potentially prolonging the manufacturing downturn, though lower commodity prices could provide some relief, she added.
Despite the slowdown, the PMI remains above 50, indicating expansion amid a favorable inflation outlook.
Qamar said she expects an interest rate cut on Monday due to strong deflationary pressures. But a Reuters poll suggests Pakistan’s State Bank will hold rates steady at 12 percent, following a surprise pause in its last meeting due to geopolitical tensions and inflation concerns.
Pakistan’s annual inflation rate fell to 0.3 percent in April, well below the Ministry of Finance estimate of 1.5 percent to 2 percent. The central bank forecasts average inflation to be in the range of 5.5 percent to 7.5 percent for the fiscal year ending June.
Pakistan’s largest bank, HBL, and global financial information and analytics firm S&P Global launched the index In February to track the country’s manufacturing sector.

Pakistan stocks slide on India tensions, key sectors lose up to 15% after Kashmir attack

Updated 03 May 2025
Follow

Pakistan stocks slide on India tensions, key sectors lose up to 15% after Kashmir attack

  • Foreign investors remained net sellers in April, taking their outflows since July to $252 million
  • The market recovered some of its losses on Friday but remains volatile heading into next week
Updated 03 May 2025
Ismail Dilawar

KARACHI: Pakistan’s renewed tensions with archrival India have weighed heavily on the country’s stock market, with key sectors like refineries posting losses of up to 15 percent since a gun attack killed 26 tourists in the disputed Kashmir region on April 22, according to analysts and market data on Friday.
India blamed Pakistan for the attack despite Islamabad’s denial and call for a neutral probe. The escalation, which has seen border closures, tit-for-tat diplomatic expulsions and fears of military confrontation between the nuclear-armed neighbors, has drawn international concern.
The KSE-100 Index, Pakistan’s benchmark stock gauge, fell 6 percent over six trading sessions following the attack, according to Pakistan Stock Exchange (PSX) data.
The market recovered some losses on Friday but remained volatile heading into next week.
“Pakistan’s stock market experienced heightened volatility after the Pahalgam attack,” Sana Tawfik, an economist and head of research at Arif Habib Ltd., told Arab News while referring to the attack in Indian-administered Kashmir.
Between April 22 and April 30, the index dropped 7,104 points or 6 percent, she said.
Key sectors bore the brunt of the sell-off, including refineries (-15.4 percent), transport (-15 percent), pharmaceuticals (-12.9 percent), jute (-11.6 percent) and engineering (-9.2 percent).
“This decline reflects broad investor risk aversion amid geopolitical uncertainty,” she added.
The latest flare-up with India added to pressure on Pakistani equities, which had already been hit by US President Donald Trump’s tariff increases last month. That triggered panic selling and a one-hour trading halt at the PSX.
“Foreigners remained net sellers [in April] as well, taking 10MFY25 net outflow to around $252 million,” JS Global Capital Ltd., the largest broking and investment banking firm in Pakistan, said in a note to clients.
Muhammad Waqas Ghani, its head of research, said investor caution over Pakistan’s escalating tensions with India had driven the recent market volatility.
“The impact of geopolitical concerns is beginning to wear off,” he said.
On Friday, the KSE-100 rebounded 2.5 percent to 114,113 points, trimming overall losses to 3.6 percent. Ghani attributed the recovery to US diplomatic efforts to defuse tensions between the two neighbors.
“The market opened positive today [Friday], gaining 2,900 points or 2.6 percent in the first half,” he said.
Analysts said calls for restraint from the US, United Nations and other members of the International community contributed to Friday’s rally.
US Vice President JD Vance told Fox News in a podcast interview that Washington was working to prevent further escalation and preserve regional peace.
Mohammed Sohail, CEO at Topline Securities Ltd., said stocks bounced back as investors regained confidence amid “signals of easing tensions.”
JS Global said market sentiment could improve further after the International Monetary Fund’s (IMF) expected release of funds for Pakistan following its upcoming executive board meeting this month.
“Materialization of planned foreign inflows, likely after IMF disbursement, along with geopolitical stability, remains crucial for the country and equity markets,” it added.

Topics: Pakistan Stock Exchange (PSX) Pahalgam attack Pakistan India Ties Pakistan India

Latest updates

Syria briefly detains head of Palestinian group: faction officials
European states back Pakistan’s proposal for Kashmir inquiry following Pahalgam attack
Saudi Arabia on track to lead global hydrogen market
Arsenal suffer Bournemouth defeat ahead of PSG showdown
How Saudi Arabia is reshaping the global talent landscape

Search form

Print Edition
Read pdf version Subscribe now
© 2025 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.