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Saudi startup ecosystem takes a huge leap

Saudi and regional venture capital firms announced the launch of massive funding programs to support startups at the LEAP2023 in Riyadh last week. (SPA)
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Updated 12 February 2023
Nour El-Shaeri
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Saudi startup ecosystem takes a huge leap

  • Flurry of deals, launch of investment funds boosts entrepreneurship, innovation
Updated 12 February 2023
Nour El-Shaeri

CAIRO: Saudi Arabia’s startup ecosystem took a giant leap in the world of funding and venture capital with seven investment firms earmarked $636 million to stimulate innovation and entrepreneurship in the Kingdom.

The announcements were made during the LEAP2023 held in Riyadh last week. Saudi and regional venture capital firms launched massive funding programs to support startups in the region.

Saudi-based venture capital firm STV launched its first fund worth $150 million for alternative financing compatible with the Shariah law while Riyadh-based IMPACT46 also announced a $133 million fund, which targets emerging technology companies in the Kingdom and the Middle East.

Another Saudi venture capital firm, Merak Capital, launched a fund valued at $53 million.

Announcements at the event also included Rakeza’s venture capital fund backed by a global business accelerator in Riyadh valued at $25 million as well as Saudi venture builder BIM Ventures’ $100 million fund in partnership with Al-Sulaiman Group.

UAE-based venture capital firm Shorooq Partners launched a fund estimated to be worth $115 million to accelerate electronic games in the region while investment firm Planetary Capital floated the first Saudi-Canadian corpus to invest in emerging space technology companies, both local and global, amounting to $30 million.  

Saudi venture capital firm Flat6labs also dedicated approximately $20 million to its Startup Seed Fund which aims to invest in early stage startups. Saudi Aramco announced that additional funds had been allocated by the company to Wa’ed Ventures, increasing the size of its Kingdom-focused venture capital arm from $200 million to $500 million. 




Saudi-based palm.hr closed a $5 million funding round on Wednesday. (Supplied)

LEAP 23 also witnessed open-banking platform Tarabut Gateway signing a deal with Tamam, a Saudi micro-lending provider.

Nana secures $133m in its cart

Nana, Saudi Arabia’s dark store grocery delivery startup, raised $133 million in a series C funding round last Wednesday led by Kingdom Holding Co. and Uni Ventures with participation from other investors.

Established in 2016, Nana is a digital grocery shopping platform in the Kingdom that operates in a dark store model whereby orders are delivered to customers within 15 minutes.

“This milestone will serve as a motivator for us to strengthen Nana’s position as the leading company within the region, as the success of this round heavily supports our expansion plans and continuity toward the provision of more diversified services that serve all stakeholders,” Sami Alhelwah, CEO of Nana, said in a statement.

The company plans to utilize its funding to add more diversified services as well as expand its presence in the region. 

This milestone will serve as a motivator for us to strengthen Nana’s position as the leading company within the region.

Sami Alhelwah, CEO of Nana

Sultan Holding, Al-Jasser Holding, Red Diamond Co., Dallah Al-Baraka Group, and Al-Jammaz Holding took part in the funding round.

HR tech platforms

Saudi-based human resources technology platform palm.hr closed a $5 million pre-series A funding round on Wednesday to accelerate regional expansion.

Founded in 2019, palm.hr delivers a streamlined and intuitive work experience for teams handling onboarding, vacation tracking, and payroll operations.

“With the backing of our investors, we are excited to kick off our next stage of growth and play a role in contributing to the future of the region’s economy,” said Richard Schrems, CEO and co-founder at palm.hr.  

The company will also utilize its funding to scale up its product offering as well as hire to support its customer acquisition journey.

The funding round was co-led by venture capital firms Speedinvest and RAED Ventures with participation from Wamda Capital.

Another Saudi-based HR technology startup, Marn, closed $1 million in a post-seed funding round last Thursday led by Sukna Ventures with participation from Al-Majdia investment.

Established in 2017, Marn utilizes artificial intelligence and machine learning to provide recruitment solutions as Saudi Arabia’s first flexible work platform.

“With the tremendous growth of the local economy, there is a need for providing innovative recruitment solutions to keep up with it,” said Mohammad Al-Sabeeh, founder and CEO of the startup.

Based in Riyadh, the company will use its new investment to expand its team and customer base as well as create more opportunities for job seekers.

Healthtech platform

Egypt-based healthtech platform Yodawy raised $16 million in an initial close of its series B funding round on Thursday co-led by Delivery Hero Ventures, the venture capital firm of global food delivery platform Delivery Hero, and Global Ventures, a UAE-based venture capital firm.

Founded in 2018, the healthtech startup offers a marketplace where patients can process prescriptions and place an online order for medicines.

The platform has processed over 4 million prescriptions to date and partnered with 20 health insurance companies, 3,000 pharmacies, and more than 300 corporates in Egypt while raising a total of $24.5 million to date.

The company plans to use the fresh funding to drive the growth of its signature Care Program for chronic patients, continue to automate its operations as well as support its regional expansion strategy.

Moreover, Kuwait’s online flower and gift delivery platform Floward closed $156 million in a pre-IPO series C funding round on Tuesday led by Aljazira Capital, Rainwater Partners, and STV.

The company will use its funding to expand its gifting verticals and enhance its customer experience using AI and machine learning as well as ramp up its acquisitions and mergers activity.

Bahrain’s fintech Aion Digital closed a $5 million bridge round last Thursday led by Fintactics Ventures, which is a $40 million fintech-focused venture fund launched during the LEAP23 event in Riyadh.

Founded in 2017, Aion provides an API-based digital banking platform, enabling its clients to create personalized digital products to increase customer engagement.

Aion recently opened offices in the Kingdom and plans to utilize its funding to expand its presence across the region.

Topics: LEAP23 ecosystem saudi startups

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US company joins major infrastructure project in Makkah

Updated 12 May 2025
MOHAMMED AL-KINANI
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US company joins major infrastructure project in Makkah

Updated 12 May 2025
MOHAMMED AL-KINANI

JEDDAH: US-based investment firm Burlington Capital has joined the Al-Bushra Infrastructure Development Fund as a strategic partner, marking a new chapter in economic cooperation between the US and Saudi Arabia.

The fund, which is privately managed and closed-ended, aims to develop more than 734,000 sq. meters of land in the Al-Aziziyah district of Makkah.

The involvement of Burlington Capital, headquartered in Nebraska and led by CEO Lisa Yanney Roskens, is part of a broader trend of foreign investment into the Kingdom’s infrastructure and real estate sectors.

The globally recognized firm has previously managed more than $7 billion in assets across 36 countries.

The Al-Bushra fund is aligned with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the national economy and reduce reliance on oil revenues. The fund’s objective is to convert raw land into serviced plots to support urban growth and encourage private sector activity.

Dr. Abdulaziz Sager, a board member of the fund and a prominent figure in regional development policy, is leading the project. His role includes guiding the fund’s strategic direction and overseeing its implementation.

The announcement reflects a growing interest from international firms in participating in long-term infrastructure projects within the Kingdom.

Burlington Capital was established in 1984 and has previously focused on a range of investments across both public and private sectors. Its entry into the Saudi market represents an extension of its international operations.

Topics: real estate

Wyndham to launch Super 8 hotels in Saudi Arabia, plans 100 properties 


Updated 12 May 2025
Reina Takla
Nour El-Shaeri
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Wyndham to launch Super 8 hotels in Saudi Arabia, plans 100 properties 


Updated 12 May 2025
Reina Takla Nour El-Shaeri

RIYADH: Wyndham Hotels & Resorts, a US-based hospitality group, has announced plans to introduce its Super 8 brand in Saudi Arabia, with an ambitious target of launching approximately 100 properties across the Kingdom over the next 10 years.

The announcement came during the Future Hospitality Summit in Riyadh, where Dimitris Manikis, president of Wyndham for Europe, the Middle East, Eurasia, and Africa, confirmed the initiative and signed the initial partnership agreement to bring Super 8 to the Saudi market.

“It’s a premium economy brand... one of the leading brands in the United States, Central Europe, and China. We finally brought it to Saudi Arabia,” Manikis told Arab News.

The expansion will be executed in partnership with Le Park Concord Co., a Saudi-based hotel operator that currently manages 13 properties with more than 900 rooms and has 13 additional hotels in its development pipeline, according to a press release.

The initiative is being supported by the Saudi Ministry of Tourism, reflecting the Kingdom’s broader strategy to diversify its tourism offerings and expand hospitality infrastructure in line with Vision 2030 goals.

Super 8 hotels will be strategically developed in major Saudi cities as well as secondary and tertiary urban centers. Target locations include areas near airports, highways, and newly emerging development zones. While the timeline remains flexible due to early-stage project planning, the first property is expected to open within the year.

“They are prefabricated, so they are easy to build. In six months, you can have a hotel in your location, which is amazing,” Manikis said, highlighting the brand’s scalability and efficient construction model.

Celebrating its 50th anniversary this year, Super 8 has a strong international footprint, particularly in the US and China, where it operates hundreds of properties.

Wyndham currently operates 14 hotels in Saudi Arabia, primarily under the Ramada brand. The company aims to diversify its portfolio in the Kingdom by introducing additional midscale, upper-midscale, and lifestyle brands to better serve a range of traveler preferences.

The rollout of Super 8 aligns with Saudi Arabia’s efforts to expand hotel capacity and provide affordable lodging options as it gears up to host a series of major international events.

Manikis also emphasized the importance of cultural and environmental sensitivity in the expansion, noting the company’s commitment to aligning with the Kingdom’s heritage and sustainability values.

Education and workforce development are key pillars of Wyndham’s strategy in the region. The executive described education as a critical component both for hotel owners and the people who work there.

He also underscored the company’s commitment to sustainability through the Wyndham Green Program, a five-tier certification framework that focuses on conservation and resource management. All Wyndham properties in the Kingdom currently operate under these sustainability guidelines.

With Saudi Arabia positioning itself as a global destination for expos, sports tournaments, and other international gatherings, Manikis reaffirmed Wyndham’s long-term vision for the market.

He said the company is committed to supporting the Kingdom’s tourism transformation while ensuring environmental responsibility and sustainable growth.

Topics: FHS2025

Saudi-based Wyld VC unveils $50m AI fund

Updated 12 May 2025
Arab News
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Saudi-based Wyld VC unveils $50m AI fund

Updated 12 May 2025
Arab News

RIYADH: Wyld VC, a new early-stage venture capital firm founded by Saudi investor Tala Hasan Al-Jabri, has announced the launch of its inaugural $50 million fund — marking the first AI-native VC fund to emerge from the MENA region.

The launch coincided with US President Donald Trump’s high-profile visit to Riyadh from May 13-16, a trip focused on strengthening bilateral ties in key sectors including defense, technology, and artificial intelligence.

“The GCC is leading the charge in catalyzing an AI revolution—through massive infrastructure investments, advanced research and model deployment, and transparent, innovation-forward regulation,” said Al-Jabri, founder and managing partner of Wyld VC. “However, the region’s greatest gap is AI talent. Wyld VC is here to fill that gap.”

The firm is backed by the family office of Lawrence E. Golub, representing the office’s first investment in the region.

“Tala is a highly accomplished, talented investor, with a track record of success investing in innovative, early-stage technology companies,” said Golub. “Her considerable investment acumen, combined with her unparalleled and comprehensive ties and network in the Gulf and the US, offer a unique investment opportunity. I am excited to be supporting Tala and Wyld on this compelling new venture, and I look forward to working with her and her team.”

Wyld VC aims to support what it calls “Wyld minds” — founders advancing the frontiers of AI and shaping the next wave of the human experience. The fund will focus on AI middleware and applications, the layers seen as offering the most transformative potential across industries.

Artificial intelligence has become a strategic priority across the Gulf, where governments and institutions are aggressively investing in research, infrastructure, and regulatory innovation. Against this backdrop, Wyld VC seeks to bridge a critical gap: nurturing the next generation of AI talent in the region.

Al-Jabri is one of MENA’s earliest and most respected tech investors, with a portfolio that includes regional successes like Tabby and international ventures such as the fast-growing U.S. startup Starcloud. She is also a trailblazer for women in Saudi Arabia, becoming the first woman to serve as a partner at a venture capital firm in the Kingdom — a milestone that earned her the title of Woman of the Year 2022 in Finance by Arabian Business.

“Founders in AI need a partner that caters to their unique needs. That’s what Wyld VC is here to provide and we have the best partners to carry forward this mission,” said Al-Jabri.

With deep ties across MENA and the US, Wyld VC enters the market at a time of heightened global interest in AI and regional momentum for tech-led transformation.

Topics: AI VENTURE CAPITAL Investment fund Eye On AI

Most Gulf shares gain on US-China tariff deal; Egypt snaps losing streak

Updated 12 May 2025
Reuters
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Most Gulf shares gain on US-China tariff deal; Egypt snaps losing streak

Updated 12 May 2025
Reuters

LONDON: Gulf equities ended higher on Monday as the US and China agreed to temporarily slash harsh reciprocal tariffs while US President Donald Trump’s planned visit to Saudi Arabia and Gulf states on Tuesday also raised investor sentiment.

The US will cut extra tariffs it imposed on Chinese imports in April to 30 percent from 145 percent and Chinese duties on US imports will fall to 10 percent from 125 percent, the two countries said on Monday following talks in Geneva. The new measures are effective for 90 days.

Saudi Arabia’s benchmark stock index rose 1.3 percent, the sharpest rise in a month with almost all sectors in the green.

Saudi Aramco gained 2.2 percent after the world’s top oil exporter reported a net profit of SR97.54 billion ($26.01 billion) in the first quarter on Sunday, beating a company-provided median estimate from 16 analysts of $25.36 billion.

Among other gainers, National Industrialization Co. rose 1.1 percent after the petrochemical company posted a quarterly net profit compared to a net loss a year earlier.

Meanwhile, Saudi Arabia and the US are set to discuss a number of blockbuster economic deals during Trump’s visit on Tuesday, with the US poised to offer Saudi Arabia an arms package worth well over $100 billion, sources have told Reuters.

The Qatari benchmark index continued its three-session winning streak and rose 0.7 percent, with most stocks posting gains.

Qatar National Bank, the region’s largest lender, gained 2 percent and Qatar Electricity and Water climbed 4 percent, its biggest rise in more than a year.

Qatar’s main electricity and desalinated water supplier, QEWC said on Monday that Qatar General Electricity and Water Corporation ‘Kahramaa’ has signed a strategic agreement with QEWC, QatarEnergy, and Sumitomo Corporation to build the Ras Abu Fontas Independent Water and Power Facility at a cost of 13.5 billion Qatari riyals ($3.71 billion).

Dubai’s benchmark stock index was up 0.4 percent, helped by a 7.3 percent rise in Parkin and a 2.8 percent gain in Talabat Holding.

The online food ordering company Talabat reported a first-quarter net profit of $103.3 million. The Abu Dhabi benchmark index edged up 0.1 percent with Aldar Properties gaining 1 percent and Fertiglobe rising 2.2 percent.

The fertilizer producer has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia Pty Ltd.

Outside the Gulf, Egypt’s blue-chip index advanced 0.5 percent after three consecutive sessions of losses. Commercial International Bank rose 1.1 percent and Abu Dhabi Islamic Bank Egypt climbed 3.6 percent.

The lender reported a 43 percent rise in first quarter net profit.

Topics: US tariffs Gulf Stock Markets

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Aviation industry faces supply chain shifts amid global tariff talks, flyadeal CEO says

Updated 12 May 2025
Reem Walid
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Aviation industry faces supply chain shifts amid global tariff talks, flyadeal CEO says

Updated 12 May 2025
Reem Walid

RIYADH: Global tariff discussions are already beginning to reshape supply chains in the aviation industry, even before formal policies are enacted, a senior executive has said. 

Speaking at the Future Hospitality Summit 2025 in Riyadh, Steven Greenway, CEO of Saudi Arabia’s low-cost airline flyadeal, explained that as aircraft components are sourced globally, geopolitical shifts are likely to impact logistics, manufacturing, and planning across the sector. 

His comments came just hours after the US and China agreed to temporarily reduce tariffs, with the White House’s levies on most imports from the Asian country dropping from 145 percent to 30 percent, and Beijing’s duties on US goods falling from 125 percent to 10 percent. The move aims to ease trade tensions and allow three more months for negotiations. 

Reflecting on the shift in the global economic order, Greenway said: “What I’m predominantly focused on though is not so much tariffs at the moment, it is more the supply chain.” 

He added: “Interestingly, tariffs are impacting the supply chain ... even before the monetary effect of tariffs is coming, it’s connecting the supply chain because the supply chain is now moving around to try to accommodate and avoid tariffs.” 

The CEO said: “There will be an impact. We’re already seeing discussions around an impact. The magnitude, the scale, I really don’t know.”

Greenway stated that some components of his airline’s engines are made in the US, while the airframes are built in Europe.

While broader trade dynamics present uncertainties, flyadeal is seeing clear internal gains from its latest technology adoption. The airline cut call volume by 80 percent overnight after launching an artificial intelligence-powered chatbot just one month ago, Greenway said. 

“We’re quite late to the chatbot arena ... but we took our time in terms of the technology, the learning, the database that underpins that and so forth,” he explained. “That delay perhaps. or cautiousness, has paid off because we’ve actually deployed something that takes in the learnings of many other airlines.” 

The chatbot currently supports interactions and bookings, and will soon be expanded with transactional capabilities. Greenway emphasized that AI is being used as a support system, not a decision-maker. 

“What we’re doing is we’re using AI not as the decision tool, but a decision support tool; so, keeping the human in the mix,” he added. 

Flyadeal’s digital transformation aligns with Saudi Arabia’s Vision 2030 plan to grow its aviation sector and boost tourism to 150 million annual visitors. The carrier plans to triple in size, expanding to more than 100 destinations with a fleet of over 100 aircraft and a workforce exceeding 4,000. 

Also at the summit, Julien Renaud-Perret, executive director of hospitality at New Murabba Development Co., offered details on Riyadh’s upcoming mega project, the Mukaab. The immersive, cube-shaped landmark is set to host up to 27,000 visitors simultaneously when it opens. 

“Our goal ... is to be able to transport people through technology through screens and holograms into a different world,” Renaud-Perret said. “It could be the ocean, could be Jurassic Park, could be the desert, could be the space.” 

He added that the Mukaab is envisioned to be “an iconic landmark of the city” on par with the Eiffel Tower or Empire State Building. 

The Future Hospitality Summit, running from May 11 to 13, brings together over 1,000 global tourism leaders, investors, and hotel operators. 

Backed by strategic partners including NEOM, Red Sea Global, and the Tourism Development Fund, the event highlights Saudi Arabia’s rapid transformation into a leading global destination. 

Topics: FHS2025 aviation flyadeal US tariffs

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