ACWA Power gets $174m loan for 2 Uzbekistan wind power projects
Updated 25 April 2023
Arab News
RIYADH: Saudi energy firm ACWA Power will develop two wind power plants in Uzbekistan financed by loans of $174 million from the Asian Development Bank, it has been announced,
Some $40.5 million is for a facility in Bash, and $46.5 million are set aside for a development in Dzhankeldy, with both funded by ADB’s regular capital resources, according to a statement from the bank.
Each power station has 79 wind turbines that will create a total of 3,235 gigawatt-hours of electricity and displace the equivalent of roughly 2 million tons of carbon dioxide each year.
Bash and Dzhankeldy will form the largest utility-scale wind power facility in Central West Asia.
“Uzbekistan is one of the fastest-growing economies in Central Asia, and with it comes a growing demand for energy,” said Suzanna Gaboury, director general for private sector operations at ADB.
“Bash and Dzhankeldy are landmark greenfield wind power projects which have a significant demonstrative impact of private sector participation across the region’s energy sector,” she added.
The loans will also be used to build 282.5 km of 500-kilovolt, single-circuit overhead transmission line to connect to the electricity system.
Last month, ACWA Power — owned by Saudi Arabia’s Public Investment Fund — signed agreements worth $2.5 billion with the National Electric Grid of Uzbekistan to develop three solar photovoltaic projects in the Tashkent, Bukhara, and Samarkand regions of the country.
The contracts also include three battery energy storage systems with a total combined capacity of 1,500 megawatts.
In August 2022, ACWA Power revealed Uzbekistan was the largest market for its investments outside of Saudi Arabia.
This came as the company signed three final agreements with the Central Asian country to establish a power station with a capacity of 1.5GW, with investments amounting to $2.4 billion.
Why the world can’t afford a blockade in the Strait of Hormuz
Even the mere suggestion that Iran could close the strait if the US joins Israeli strikes has sent oil prices soaring
Disruption to this strategic waterway could destabilize economies and trigger a new energy crisis, analysts warn
Updated 21 June 2025
Miguel Hadchity
RIYADH: As the conflict between Israel and Iran intensifies, attention has turned to the Strait of Hormuz — a narrow, 33-kilometer-wide stretch of water separating Oman and Iran carrying a fifth of the world’s daily oil supply.
While this strategic waterway remains open for now, analysts have told Arab News any further escalation could put the vital shipping route at risk if Iran chooses to impose a blockade or attacks vessels.
A little over a week into the confrontation, which began on June 13 when Israel began striking Iran’s nuclear sites, scientists, military commanders and cities, daily exchanges of fire have killed hundreds.
Now, with threats of a maritime blockade looming should the US decide to join the conflict on Israel’s side, global energy markets are on edge. Any disruption could send prices skyrocketing, destabilize economies and trigger a new energy crisis.
“The Strait of Hormuz is not just a waterway; it is the artery of global energy. Any blockade would trigger a chain reaction the global economy is not prepared for,” Saudi geopolitical analyst Salman Al-Ansari told Arab News.
According to the US Energy Information Administration, 20 million barrels of oil — 20 percent of global consumption — pass through the Strait of Hormuz every day, along with one-fifth of the world’s liquefied natural gas trade, primarily from Qatar.
The oil lane is so vital because no real alternatives exist. Most Gulf oil cannot be rerouted without massive delays. It is the only deep-water route capable of handling the world’s largest crude tankers.
This handout natural-colour image acquired with MODIS on NASAs Terra satellite taken on February 5, 2025 shows the Gulf of Oman and the Makran region (C) in southern Iran and southwestern Pakistan, and the Strait of Hormuz (L) and the northern coast of Oman (bottom). (Photo by NASA Earth Observatory / AFP)
The EIA has estimated that 84 percent of its crude flows to Asia, with China, India, Japan and South Korea as top buyers.
In February last year, the Washington-based Center for Security Policy analyzed Iran’s escalating activity in the Strait of Hormuz and said 76 percent of the crude oil transiting the waterway was destined for Asian markets.
When geopolitical tensions spiked over the past week after Iranian retaliatory strikes on Israel, Brent crude surged from $69 to $74 per barrel in a single day — even though no ships were blocked.
Jassem Ajaka, an economist and professor at the Lebanese University, said this shows just how sensitive markets are to the mere suggestion of instability.
“The closure of the Strait of Hormuz will inevitably lead to a rise in the price of a barrel of oil to over $100, meaning the price will increase by about $25 in a single jump — something the global economy is not accustomed to,” Ajaka told Arab News.
An Iranian Nasr missile is fired from a navy warship during a military exercise in the Gulf of Oman, near the strategic strait of Hormuz in southern Iran. (Iranian Army handout via AFP/File)
He added: “Oil is a strategic and vital commodity, and when its price rises, inflation will rise with it because it is involved in 95 percent of other goods. The extraction of raw materials, the manufacturing of food products and other items will see their prices increase.”
Al-Ansari noted that “with Iran and Israel already in direct confrontation, the risk of escalation in this critical corridor is dangerously real. Iran sees the strait as its ultimate pressure point. Shutting it down would ignite a global oil shock, push inflation higher, and send vulnerable economies into panic.”
Ajaka explained high oil prices would confront central banks worldwide with a dilemma over whether to lower or raise interest rates. He added insurance prices would rise, contributing to inflation, and that it would also cause disruptions in supply chains across several countries.
“In the case of Lebanon, for example, it would result in a complete electricity blackout, as the country relies entirely on fuel oil coming from Iraq,” he added.
Saudi Arabia, the world’s largest oil exporter, moved 5.5 million barrels per day through Hormuz last year. That is 38 percent of total crude flows in the strait, according to tanker tracking data produced by the London-based real-time insights delivery firm, Vortexa.
While the Kingdom has contingency pipelines, they are not a perfect solution. The East-West Pipeline, with a capacity of 7 million barrels per day, can divert crude to the Red Sea, but it is already running near full capacity due to recent Houthi attacks on shipping.
The UAE’s Fujairah Pipeline, with 1.8 million barrels per day capacity, is also heavily used, leaving little to spare.
Iran’s Goreh-Jask Pipeline, designed for 300,000 barrels per day, is barely operational, having handled just 70,000 barrels per day before shutting down in late 2024.
If the Strait of Hormuz were blocked, the EIA said Saudi Arabia and the UAE could only reroute about 2.6 million barrels per day — far less than the 20 million that normally passes through.
Given that the economies of most Gulf countries, particularly Saudi Arabia, rely heavily on oil exports, a closure of the Strait of Hormuz would deal a severe blow to their economic stability, according to Ajaka. “The extent of the financial damage would hinge on how long the strait remains blocked, with prolonged disruptions likely triggering budget deficits across the region,” he said.
For energy-hungry Asian economies, a blockade would be catastrophic.
This image grab taken from a video provided by Iran's Revolutionary Guard official website via SEPAH News on July 20, 2019, shows Iranian Revolutionary Guard Corps boarding the British-flagged tanker Stena Impero in the Strait of Hormuz. (AFP/File)
“This narrow stretch carries nearly a third of the world’s seaborne oil. Its closure would cripple global trade routes, choke energy supplies and slam the brakes on economic growth from Asia to Europe,” said Al-Ansari.
China relies on the Strait of Hormuz for nearly half its crude imports. India, Japan, and South Korea would face severe shortages, forcing emergency releases from strategic reserves. Global shipping costs would explode as tankers would need to take longer routes around Africa.
“The first Asian economy to be affected by any closure of the Strait of Hormuz would be China,” said Ajaka. “If the repercussions of the strait’s closure spill over into multiple economies, it could lead to a global recession — posing another challenge in terms of how to revive the global economy.”
The US is less vulnerable, importing only half a million barrels per day from the Gulf, equivalent to 7 percent of total US imports. But it would still suffer from skyrocketing global prices.
Al-Ansari emphasized that the crisis is not merely about oil: “It is about the fragile balance that keeps markets stable and societies moving.”
Iran has historically threatened to close the Strait of Hormuz but has never done so. In a recent op-ed for Arab News, Abdulaziz Sager, founder and chair of the Gulf Research Center, said a full closure “would harm Iran’s own economy given that it relies on the waterway for its oil exports.”
Despite Iran’s heavy reliance on the waterway, Behnam Saeedi, a member of the parliament’s National Security Committee presidium, was quoted by Mehr news agency on Thursday as saying a blockade remained on the table.
“Iran has numerous options to respond to its enemies and uses such options based on what the situation is,” he said. “Closing the Strait of Hormuz is one of the potential options for Iran.”
Mehr later quoted another lawmaker, Ali Yazdikhah, as saying Iran would continue to allow free shipping in the strait and in the Gulf so long as its vital national interests were not at risk.
“If the US officially and operationally enters the war in support of the Zionists (Israel), it is the legitimate right of Iran in view of pressuring the US and Western countries to disrupt their oil trade’s ease of transit,” said Yazdikhah.
However, it is not a decision Iran would take lightly.
“If Iran closes the Strait of Hormuz, it will undoubtedly lose economically and militarily,” said Ajaka. “Any country that wants to wage war will lose if it does not have foreign currency reserves, as war depletes these reserves — preventing it from making the decision to close the strait.
“The only circumstances that might lead Iran to close the Strait of Hormuz are if it feels its regime is on the verge of collapse,” he added.
As Iran already seems to have been backed into a corner, there is every chance it could take this final leap. As Al-Ansari said: “Iran is already economically crippled and is facing an existential reality. The scenario of closing the strait should never be ruled out.”
Past incidents have shown the global impact of regional events. In 2019, attacks on Saudi tankers near Fujairah and the Abqaiq drone strikes briefly cut 5 percent of the global oil supply. World powers, therefore, have a major interest in keeping the strait open.
“Any closure of the Strait of Hormuz would prompt military intervention by the US and the UK,” said Ajaka.
On June 17, US officials informed The New York Times that Iran had positioned missiles and military assets for potential strikes on American bases in the Middle East if the US entered the conflict.
Other officials also warned Iran could resort to mining the Strait of Hormuz in the event of an attack — a strategy designed to trap US warships in the Persian Gulf.
In the event of a blockade, Ajaka suggested Western and Asian nations would likely tap into strategic petroleum reserves to mitigate immediate shortages.
However, he added this would only provide temporary relief, as non-OPEC countries have already maxed out their production capacity, leaving OPEC members as the only potential source of additional supply.
“If the strait is closed and oil prices rise, oil-producing countries, including Saudi Arabia, may resort to halting production cuts and instead increase output to curb the sharp rise in prices,” he said.
“One other possible measure would be for the US to ease restrictions on oil-producing countries like Venezuela to increase oil supply in the market.”
Nevertheless, Ajaka said: “The core position of oil — and the fundamental reason for the necessity of security in the Middle East — is that the Arabian Gulf must remain the ultimate guarantor.”
Formula 1 turbocharges Saudi economic diversification drive
KSA is deepening its investment in the sport as part of its strategy to stimulate economic activity
Updated 21 June 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia is accelerating its push to diversify its economy by turning to major international events such as Formula 1, as the Kingdom uses global motorsports to support its non-oil goals.
Since hosting its first Grand Prix in 2021, the Kingdom has funneled more than $6 billion into its sports industry, part of a broader plan to boost tourism, create jobs, and raise non-oil activities to 52 percent of gross domestic product — a 20 percent jump since the launch of Vision 2030.
With plans underway to move the race to Qiddiya City between 2027 and 2029, the Kingdom is deepening its investment in the sport as part of a broader strategy to stimulate economic activity and position itself as a global hub for elite sports and entertainment.
High-profile events such as the Formula 1 Grand Prix in Jeddah exemplify how international sporting platforms are being used to stimulate tourism and highlight the Kingdom’s economic transformation.
Tamer Al-Sayed, chief financial officer at the Future Investment Initiative Institute, told Arab News that Formula 1 was never just about cars on a track. “It was a high-velocity statement. A signal to the world that Saudi Arabia is playing a new game — and playing to win,” he said.
Formula 1 has experienced a significant rise in popularity, with its global fan base reaching 826.5 million and viewership climbing to 1.6 billion in 2024, according to a recent report by PwC titled “Saudi Arabia’s motorsport ambition – Technology, investment and the future of racing.”
The global consultancy firm’s report noted that beyond Formula 1, motorsports are expanding into electric racing and other formats such as sports car and off-road competitions, driven by technological innovation and a worldwide push for sustainability.
Global popularity surged after Liberty Media’s 2017 acquisition of Formula 1 and the 2019 Drive to Survive series, which drew younger, more diverse audiences — doubling US viewership on ESPN and boosting sponsorship revenue to $632 million in 2024, according to PwC.
Economic impact
Flagship international events in Saudi Arabia, like the Formula 1 Grand Prix, are playing a pivotal role in driving tourism, stimulating local commerce, and showcasing the Kingdom’s growing appeal as a global destination.
According to PwC’s report, Saudi Arabia’s strategic investments in motorsports are positioning the Kingdom as a key player in the industry’s future.
The report said Saudi Arabia is aggressively cementing its role in motorsports’ future.
“The Kingdom has committed over $6 billion to its sports industry since 2021, fueling the development of world-class venues like the Jeddah Corniche Circuit and the upcoming Qiddiya Speed Park,” it added.
This global expansion reflects the sport’s soaring popularity, especially among younger audiences and emerging markets. Saudi Arabia has managed to secure a long-term position in that landscape.
Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University
However, the report emphasized that the success of a modern motorsport circuit relies not only on financial investment but also on innovation in fan engagement, race operations, and digital broadcasting to ensure long-term success.
With the Kingdom and the wider region increasing their investment in motorsports, new opportunities for economic growth and innovation are unfolding.
“As Saudi Arabia and the broader MENA region invest in motorsports and advanced racing technologies, the opportunity to commercialize and expand these innovations into other industries grows exponentially,” the PwC’s report said.
Al-Sayed noted that the economic ripple effects of events like Formula 1 have moved beyond anecdotal observations and are now supported by measurable data.
“In pure numbers: Since the first Saudi Grand Prix in 2021, tourism linked to the event has driven six-figure visitor volumes annually. Hotels hit peak occupancy. Flights sell out. Local businesses — from luxury brands to food trucks — ride that wave. These aren’t soft indicators; they’re measurable economic inputs,” he added.
More importantly, Al-Sayed said, this is not a one-off surge but rather a case study in how a flagship event can anchor a broader sector.
“Entertainment and tourism — both once peripheral — are now pushing serious weight in the non-oil GDP mix. You can see the reflection in the Ministry of Tourism’s own targets: 150 million annual visitors by 2030, with sports and cultural events as core levers,” he added.
As for the event’s impact on employment, the chief officer said that it extends beyond temporary jobs, highlighting the emergence of an entire ecosystem encompassing event production, hospitality, and logistics, as well as digital media, security, and sponsorship management.
“Each Grand Prix fuels demand across this chain, and each year the local capability strengthens. So yes, F1 was expensive. But so was missing out on the future,” he said.
Al-Sayed expressed confidence that in a decade, the question will not be why Saudi Arabia invested heavily in sports and entertainment, but rather how it anticipated the trend ahead of the rest of the world.
Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University in Riyadh, said that Formula 1 is more than just a sport — it serves as a global platform for economic influence and visibility.
“The Las Vegas Grand Prix generated over $1.2 billion in economic activity, with racegoers spending nearly three times more than average tourists,” he said, noting that similar benefits are beginning to emerge in Saudi Arabia.
He also mentioned that hotel prices in Jeddah during the 2021 Formula 1 race exceeded $450 per night, reflecting high demand and a significant impact on the local tourism and hospitality sectors.
“This global expansion reflects the sport’s soaring popularity, especially among younger audiences and emerging markets. Saudi Arabia has managed to secure a long-term position in that landscape,” Ghulam added.
The associate professor went on to say that global sports events, such as Formula 1 or the Olympics, bring pride, increased productivity, and deliver higher well-being to nations through buzz, branding, and business potential.
“However, economic analysis of the costs and benefits, as well as financial risks, of hosting F1 is often overlooked. Saudi Arabia has been hosting F1 events exceptionally well since 2021,” he said.
From Jeddah to Qiddiya
The Qiddiya megaproject in Riyadh, announced in March 2024, will feature one of the world’s most innovative motorsport tracks, with the configurable Speed Park Track located at the heart of Qiddiya City, positioning the Kingdom as a global racing destination.
Al-Sayed called Jeddah the proof of concept and Qiddiya the blueprint for Saudi Arabia’s motorsports strategy.
He elaborated further on the success of the Jeddah circuit, noting: “When we launched the Jeddah circuit, the global motorsports community raised its eyebrows — and then had to admit it delivered. The fastest street circuit in F1, with a breathtaking Red Sea backdrop, timed perfectly with the Kingdom’s rising international profile.”
Al-Sayed called Qiddiya a masterstroke — a vision beyond a venue — designed to place Formula 1 at its core while driving growth in infrastructure, real estate, tourism, and creative industries.
“It is one of those projects where the economic spillover is the point,” he said.
Echoing Al-Sayed’s remarks, Ghulam noted that when Qiddiya hosts its first Saudi Grand Prix — possibly in 2029 — it will undoubtedly make waves, following the strong precedent set by Jeddah.
“It would not be surprising if Saudi Arabia opted to hold two races in the near future in accordance with Saudi Vision 2030, since F1 now hosts three races in the US – Miami, Austin, and Vegas,” Ghulam concluded.
Why tech startups should choose Riyadh as their MENA launchpad
Saudi Arabia offers startups access to a high-spending consumer base and a gateway to regional expansion
Updated 21 June 2025
Miguel Hadchity
RIYADH: Riyadh is becoming a leading destination for tech startups in the Middle East, fueled by Saudi Arabia’s Vision 2030 reforms, an advanced infrastructure, and robust government-backed incentives.
The Saudi information and communication technology market is projected to reach $54.90 billion in 2025 and $82.51 billion by 2030 at a compound annual growth rate of 8.49 percent, according to an analysis by Mordor Intelligence.
This growth highlights the Kingdom’s increasing prominence as a regional innovation hub.
At the heart of this transformation is Saudi Arabia’s Vision 2030 economic diversification plan, which has placed technology at the forefront of its strategy. Major initiatives, such as NEOM, a $500-billion smart city powered by artificial intelligence and renewable energy, and Riyadh Tech Valley, a dedicated hub for AI, the Internet of Things, and robotics startups, are driving this momentum.
Government programs such as the Saudi Unicorns Program and Tech Growth Financing provide critical support for scaling businesses, further cementing Riyadh’s appeal.
Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East, highlighted three key operational factors behind Riyadh’s startup success. “First, Saudi Arabia’s advanced digital infrastructure has significantly accelerated startup growth,” he told Arab News in an interview.
The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default.
Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA
Government-led digital transformation initiatives have created a robust technological backbone, with 14 percent of Saudi broadband users enjoying speeds over 1G bits per second — far surpassing the 4 percent seen in markets like the UK. “This infrastructure supports rapid innovation and scaling up,” he added.
The second factor, according to Durou, is the Kingdom’s strategic focus on developing local talent pipelines. “As many as 86 percent of Saudi universities now provide undergraduate programs in AI, 56 percent offer master’s degrees, and doctoral opportunities stand at 9 percent,” he noted.
The Deloitte leader emphasized that institutions like King Abdullah University of Science and Technology play a pivotal role in supplying startups with skilled, technology-ready talent.
Lastly, Durou pointed to the Kingdom’s supportive business environment, which includes government incentives, substantial funding mechanisms like venture capital and private equity, and vibrant incubator ecosystems such as Garage 46 and Impact 43.
He also shed light on the Kingdom’s high consumer adoption rates of advanced technologies, particularly Gen AI.
Deloitte’s recent survey outlined Saudi Arabia’s high awareness of the technology at 76 percent, with usage frequencies of 20 percent daily and 32 percent weekly — significantly higher than the UK, he added.
When comparing Riyadh’s startup scaling environment to Dubai’s, Durou observed distinct strengths in each.
“In Riyadh, government-driven initiatives such as Saudi Vision 2030 have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market,” he said, adding that “extensive support from local incubators, accelerators, and dedicated funding programs serve to further accelerate product development and launch timelines.”
Durou noted that customer acquisition costs in Riyadh are comparatively lower, driven by the ongoing surge in digital adoption among consumers and supported by targeted government-backed marketing initiatives.
The fintech sector, in particular, benefits from robust governmental support, which helps meet rising local demand. Meanwhile, e-commerce growth is further propelled by high Internet penetration and shifts in consumer behavior.
“Dubai offers rapid market entry facilitated by the globally recognized Dubai International Financial Centre and a mature, efficient regulatory environment. Although high market competition can drive up customer acquisition costs in Dubai, it’s balanced by an expansive and diverse customer base,” he explained.
Durou highlighted that the DIFC ecosystem offers fintech startups access to government incentives, which greatly enhance their growth prospects. He also emphasized that Dubai’s strategic geographic position as a global trade hub, along with its advanced logistics and warehousing capabilities, significantly accelerates the expansion of e-commerce.
Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA, shed light on the legal structures that are proving effective in the Kingdom.
“Saudi startups have historically preferred an offshore ring-fencing of intellectual property assets by holding and protecting intellectual property interests in a standalone sister company based in an offshore jurisdiction,” he explained to Arab News.
“This has helped startups in scaling globally and simplifies exit strategies,” Al-Anizy said.
Government-driven initiatives have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market.
Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East
However, with stronger business and intellectual property laws, there is increasing trust in local company structures like the Simplified Closed Joint Stock Co.
Al-Anizy also highlighted the advantages of Riyadh’s bankruptcy laws for tech startups facing liquidity challenges. The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default, he said.
The law was introduced to provide guidance on the adoption and implementation of bankruptcy proceedings. Despite its name, the primary objective of the Bankruptcy Law is not liquidation but rather the rescue of insolvent businesses through reorganization and financial restructuring.
Al-Anizy said that this sophisticated regime demonstrated in recent large-scale restructurings, has garnered recognition from founders and investors alike. On the dispute side, mediation and the Saudi Center for Commercial Arbitration are becoming preferred avenues for resolution.
For foreign founders setting up their MENA Headquarters in Riyadh, Al-Anizy stressed the importance of clear contractual considerations. “Founders having an unclear picture of their share cap table, equity vesting, or the conversion of any issued SAFE/KISS notes is an easily avoidable way to lose investor confidence,” he warned.
A Simple Agreement for Future Equity is an investment instrument that allows startups to raise capital without immediately determining a valuation, converting it into equity upon a future-priced round or liquidity event. Similarly, a Keep It Simple Security operates as either a convertible note or a SAFE-like agreement, offering standardized terms for early-stage funding.
Both are designed to streamline early investments while deferring valuation discussions, but founders must track their terms, such as discount rates, valuation caps, and conversion triggers, to maintain transparency with investors.
Al-Anizy also advised explicit contractual clauses to ensure intellectual property rights are clearly vested in the company, safeguarding the business and maintaining investor trust.
Riyadh has become a magnet for multinational corporations, with around 600 foreign companies establishing their regional headquarters in the city since the launch of the Saudi Program for Attracting Regional Headquarters in 2021.
Spearheaded by the Ministry of Investment and the Royal Commission for Riyadh City, this initiative is a cornerstone of Vision 2030’s goal to position Saudi Arabia as a global business hub.
The program offers compelling incentives, including a 30-year tax relief package with 0 percent corporate and withholding taxes, streamlined setup processes, and access to world-class infrastructure.
Riyadh’s strategic location at the crossroads of Asia, Africa, and Europe, combined with its skilled workforce and economic stability, has made it the top choice for multinationals looking to expand in the region.
Riyadh’s appeal is further bolstered by business-friendly policies, including 100 percent foreign ownership in key sectors, tax incentives, and streamlined licensing through the Saudi Business Center. Startups also benefit from partnerships with major corporations like Aramco and STC, as well as accelerator programs from Flat6Labs and 500 Global.
With a population of 36 million and the largest economy in the Middle East and North Africa, Saudi Arabia offers startups access to a high-spending consumer base and a gateway to regional expansion. The Kingdom’s advancements in technology were recognized in the 2024 Global Innovation Index, where it secured the 47th spot among 132 countries.
Events such as the LEAP Tech Conference and Riyadh Season continue to draw global investors, while local success stories — from Tamara, Saudi Arabia’s first fintech unicorn delivering payments and banking, to Salla, an e-commerce platform empowering SMEs with digital storefronts — demonstrate Riyadh’s potential as a launchpad for high-growth companies.
Funding flows into frontier tech as startups race to scale
Darwinz AI will use the new capital to expand its Riyadh-based team
Updated 21 June 2025
Nour El-Shaeri
RIYADH: Startups across the Middle East and Africa are attracting fresh capital as investors double down on AI, fintech, proptech, and agri-tech solutions tailored to local and regional challenges.
Saudi Arabia-based Darwinz AI, known as TheDar.AI, has raised $325,000 in seed funding to accelerate development of its AI-powered productivity platform for communication professionals.
The round was led by Flat6Labs and Glint Ventures, marking a milestone for the startup as it deepens its presence in the Kingdom.
Originally founded in Egypt in 2021 by Emad El-Azhary and Mohy Aboualam, TheDar.AI has evolved into a regional AI player with operations now headquartered in Riyadh.
The company’s flagship platform, dima, functions as an AI copilot tailored for public relations professionals, marketers, and brand managers—offering automation features that aim to improve content workflows and campaign management.
According to the company, the new capital will be used to expand the Riyadh-based team, accelerate product development cycles, and prepare for a global launch.
Founded in 2024 by Anis Rahal, XFOLIO offers a cloud-based platform that integrates portfolio management with treasury automation. (Supplied)
“This round marks a new chapter,” said co-founder Aboualam. “We’re proud to call TheDar.AI a Saudi company with Egyptian roots, and we are excited to scale globally through the thriving ecosystem here. Stay tuned — the best is yet to come.”
The investment reflects growing interest in generative AI applications in the Gulf region, especially in sectors like marketing and enterprise communications, where automation and digital transformation are accelerating.
XFOLIO raises $2m to modernise treasury and wealth management
French-Lebenese Fintech platform XFOLIO has raised $2 million in seed funding to enhance its enterprise-focused digital infrastructure for financial institutions and wealth managers.
The investment round was led by Middle East Venture Partners, and is aimed at expanding the startup’s product capabilities and market reach. Founded in 2024 by Anis Rahal, XFOLIO offers a cloud-based platform that integrates portfolio management with treasury automation.
It is designed to help financial institutions, family offices, and mid-sized wealth managers consolidate both bankable and non-bankable assets—providing a unified view of financial holdings and automating key back-office operations.
The capital will be used to launch AI-powered recommendation tools and enable cross-bank trading, two features the company believes will enhance decision-making efficiency and improve market access for underserved clients.
Prop-AI raises $1.5m to digitise real estate decisions
UAE-based proptech startup Prop-AI has secured $1.5 million in pre-seed funding to expand its AI-driven real estate intelligence platform.
The round was led by Plus VC, with contributions from Joa Capital, Select Ventures, Oraseya Capital, Plug & Play, and angel investors from Saudi Arabia and Bahrain.
Founded in 2023 by Ranime El-Skaff and Christian Kunz, Prop-AI uses artificial intelligence and machine learning to automate real estate search, valuation, and investment decision-making.
We’re proud to call TheDar.AI a Saudi company with Egyptian roots, and we are excited to scale globally through the thriving ecosystem here.
Mohy Aboualam Darwinz, AI co-founder & CEO
The platform caters to property buyers, investors, and real estate professionals seeking data-driven insights and automated analytics.
The funding will be used to integrate more regional data sets, enhance AI infrastructure, and launch new enterprise tools.
The startup also plans to scale across the MENA region and into European markets.
“Our mission is to build the ‘Bloomberg of Real Estate’,” said Ranime El-Skaff, CEO of Prop-AI.
DisrupTech backs Winich Farms in Sub-Saharan Africa debut
Cairo-based DisrupTech Ventures has made its first Sub-Saharan Africa investment by backing Winich Farms, a Nigerian agri-fintech startup, in its ongoing pre-series A round.
The move signals the fund’s broader interest in scalable fintech solutions addressing critical needs in Africa’s agriculture economy.
Winich Farms operates in 29 of Nigeria’s 36 states and has built a platform focused on improving financial inclusion and market access for over 180,000 smallholder farmers.
The company connects producers directly with buyers and provides access to financing tools that reduce post-harvest losses and price volatility.
The startup plans to expand its operations beyond Nigeria and explore export opportunities into the MENA region, positioning itself as a cross-continental player in agri-fintech innovation.
“Our investment in Winich reflects our conviction in the potential of Nigeria’s agri-fintech sector and the scalability of its model,” said Mohamed Okasha, managing partner at DisrupTech Ventures.
“Winich is not only solving real problems for smallholder farmers but doing so with a scalable model. Agriculture is also core to Egypt’s economy, and we look forward to sharing insights and best practices between both markets as Winich grows across the continent.”
Octane raises $5.2m to streamline fleet payments
Egyptian fintech Octane has raised $5.2 million in a funding round led by Shorooq Partners, Algebra Ventures, and SC Holding.
The Cairo-based company was co-founded in 2022 by Amr Gamal and Ziad Eladawy, and offers a closed-loop wallet system that consolidates fleet-related expenses including fuel, maintenance, and petty cash.
Octane targets fleet operators and logistics companies that currently rely on fragmented financial systems.
Its platform provides tools for financial control, analytics, and cost optimisation.
“At Octane, we’re focused on giving fleets the rails they need to manage day-to-day payments with precision,” said Amr Gamal, Co-Founder and CEO of Octane.
“This funding lets us broaden our acceptance network, expand AI-powered fraud detection and route optimisation features, and stay ahead of the shift toward cleaner, more efficient mobility, without adding complexity for our customers.”
The startup plans to use the new funds to grow its merchant network, expand regionally, and integrate more AI capabilities into its transaction processing and route planning tools.
OCTA secures $20m credit line to support SME automation
UAE-based fintech OCTA has secured a $20 million credit facility from Sukna Fund for Direct Financing, reinforcing its mission to embed financial services into the daily operations of small and medium-sized enterprises.
The new facility follows OCTA’s $2.25 million pre-seed round closed in October 2024, co-led by Quona Capital and Sadu Capital.
Founded in 2024 by Jon Santillan, Andrey Korchak, and Nupur Mittal, OCTA automates the contract-to-cash process for SMEs—covering invoicing, collections, payments, and now embedded credit.
The company claims to offer a unified platform that helps SMEs overcome working capital constraints and cash flow inefficiencies.
“Most SMEs don’t fail because they lack revenue — they fail because their cash is locked up,” said Jon Santillan, co-founder and CEO of OCTA.
“Our partnership with Sukna Fund allows us to bring financing directly into the heart of daily operations, where businesses need it most.”
The funds will help OCTA scale across Saudi Arabia and other Gulf markets as it targets the underserved mid-market SME segment.
SaturnX raises $3m to expand stablecoin-based remittances
Dubai-based SaturnX has closed a $3 million seed round led by White Star Capital, with additional support from institutional backers.
Founded in 2024 by Mirnas Brescic, SaturnX provides an API-based infrastructure layer for stablecoin payments, designed specifically for business-to-business financial service providers.
The new capital will support expansion into Southeast Asia, with initial focus on high-volume remittance corridors such as the Philippines, Bangladesh, and Pakistan.
SaturnX also plans to enhance compliance and enterprise features on its API platform.
“Our vision is to connect the worlds of decentralised and traditional finance with infrastructure that brings the benefits of stablecoins to everyday financial use cases,” said Mirnas Brescic, CEO and Founder of SaturnX.
“Despite considerable progress, cross-border payments are still expensive and slow. By offering a faster, cheaper, and programmable alternative, we’re helping financial partners unlock better ways to move money.”
Pakistan signs $4.5 billion loans with local banks to ease power sector debt
The government, which owns much of the power infrastructure, is grappling with ballooning ‘circular debt’
The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure on Islamabad
Updated 21 June 2025
Reuters
KARACHI: Pakistan has signed term sheets with 18 commercial banks for a 1.275 trillion Pakistani rupee ($4.50 billion) Islamic finance facility to help pay down mounting debt in its power sector, government officials said on Friday.
The government, which owns or controls much of the power infrastructure, is grappling with ballooning “circular debt”, unpaid bills and subsidies, that has choked the sector and weighed on the economy.
The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure, making it a key focus under Pakistan’s $7 billion IMF program.
Finding funds to plug the gap has been a persistent challenge, with limited fiscal space and high-cost legacy debt making resolution efforts more difficult.
“Eighteen commercial banks will provide the loans through Islamic financing,” Khurram Schehzad, adviser to the finance minister, told Reuters.
The facility, structured under Islamic principles, is secured at a concessional rate of 3-month KIBOR, the benchmark rate banks use to price loans, minus 0.9 percent, a formula agreed on by the IMF.
“It will be repaid in 24 quarterly instalments over six years,” and will not add to public debt, Power Minister Awais Leghari said.
Existing liabilities carry higher costs, including late payment surcharges on Independent Power Producers of up to KIBOR plus 4.5 percent, and older loans ranging slightly above benchmark rates.
Meezan Bank, HBL, National Bank of Pakistan and UBL were among the banks participating in the deal.
The government expects to allocate 323 billion rupees annually to repay the loan, capped at 1.938 trillion rupees over six years.
The agreement also aligns with Pakistan’s target of eliminating interest-based banking by 2028, with Islamic finance now comprising about a quarter of total banking assets.
