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Saudi Arabia’s venture capital space continues to grow

Plug and Play Tech Center, renowned for its early investments in firms such as Dropbox and PayPal, is seeking to raise $100 million to support KSA startups . (Supplied)
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Updated 24 June 2023
Nour El-Shaeri
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Saudi Arabia’s venture capital space continues to grow

  • Plug and Play’s commitment to maintaining high standards will not waver: CEO
Updated 24 June 2023
Nour El-Shaeri

CAIRO: Silicon Valley-based investor Plug and Play Tech Center, renowned for its early investments in successful firms such as Dropbox and PayPal, is seeking to raise $100 million to support Saudi startups, Bloomberg reported. 

The venture capital firm is in discussions with Jada, a $1 billion fund of funds established by Saudi Arabia’s sovereign wealth fund the Public Investment Fund, to collaborate on this initiative, Saeed Amidi, Plug and Play’s founder and CEO, stated. 

The fund is expected to launch in January, with Plug and Play contributing up to 10 percent of the total amount, while the remainder will be raised from Saudi funds and family offices.  

Amidi emphasized that Plug and Play’s decision to establish the fund stems from the improved quality of Saudi startups in recent years.  

He added that the firm’s commitment to maintaining high standards would not waver, regardless of the location.  

Saudi Arabia is actively promoting entrepreneurship and the venture capital industry as part of its efforts to diversify its oil-dependent economy and generate employment opportunities within the private sector.  

Jada, for instance, previously supported a $50 million Middle East fund managed by Hambro Perks Ltd. in 2021. 

With a current portfolio of five funds totaling $500 million, Plug and Play aims to expand its influence further to establish an additional five funds, creating more avenues for investment and growth opportunities.  

The firm’s entry into the Saudi market not only highlights the increasing attractiveness of the country’s startup ecosystem but also reinforces its potential as a hub for innovation and technological advancement. 

By fostering collaboration between Plug and Play and Saudi tech startups, the venture aims to accelerate the growth of the startup ecosystem in the Kingdom, bolster the economy, and drive job creation as Saudi Arabia continues to prioritize diversification and technological advancement.

SVC invest $30m in Shorooq Partners Bedaya Fund II 

Saudi Venture Capital has made an investment of $30 million in Shorooq Partner’s newly launched Bedaya Fund II, which has a total fund size of $150 million.  

The fund, launched in March, is dedicated to supporting startups in sectors such as fintech, software, platform verticals, and digital assets. 

This investment follows SVC’s recent commitment to allocate $7.5 million for the Endeavor Catalyst fund in May.  

These strategic investments demonstrate SVC’s dedication to fostering the growth and development of the startup ecosystem in Saudi Arabia. 

By providing substantial financial support to initiatives like the Bedaya Fund II, SVC aims to contribute to the success of innovative startups and drive economic diversification in the Kingdom.  

The agreement for the investment was signed by Nabeel Koshak, CEO and board member at SVC, and Mahmoud Adi, founding partner at Shorooq Partners.  

The signing ceremony was also attended by prominent figures including Yousef Al-Benyan, chairman of the SME Bank, and Abdulrahman Mansour, acting CEO of the SME Bank.  

SVC is dedicated to providing financing pre-seed to pre-initial public offering stages with a total investment capital of $1.6 billion. 

To date, SVC has successfully invested in 38 funds, which have in turn supported 674 companies through 1,257 deals.

Egypt’s Sharia-compliant fintech Agel raises pre-seed funding round 

Egyptian fintech startup Agel has secured a pre-seed funding round for an undisclosed amount from Plus Venture Capital, Seedstars International Ventures, Flat6labs, SEEDRA Ventures, Banque Misr Acceleration Program, and other angel investors. 

The seven-figure investment will empower Agel to pursue its mission of providing Shariah-compliant lending services for small and medium enterprises in Egypt. 

Founded in 2021 by Abdelrahman Saeed and Ahmed El Sherbiny, the fintech offers innovative financing solutions such as Murabaha, a cost-plus financing model adhering to Islamic principles. 

SPEEDREAD

• With a current portfolio of five funds totalling $500 million, Plug and Play aims to expand its influence further to establish an additional five funds.

• The firm’s entry into the Saudi market not only highlights the increasing attractiveness of the country’s startup ecosystem but also reinforces its potential as a hub for innovation and technological advancement.

• The venture aims to bolster the economy and drive job creation as Saudi Arabia continues to prioritize diversification and technological advancement.

With the newly raised funds, Agel aims to obtain a non-banking financial institution license, further refine its product offerings, and expedite its expansion across Egypt. 

Agel is also preparing to launch a co-branded banking card service in collaboration with Abu Dhabi Islamic Bank to cater to the needs of merchants.  

Through the partnership, Agel aims to expand its reach and provide comprehensive financial services to a broader customer base.

Egypt’s fashion e-commerce TFK acquires OPIO 

Egyptian fashion e-commerce marketplace The Fashion Kingdom has recently completed the acquisition of OPIO, a direct-to-consumer fashion brand. The financial details of the deal remain undisclosed. 

Founded in 2020 by Marianne Simaika, Fadi Antaki, and Karim Abdel Kader, TFK offers a comprehensive platform of support to its brands, encompassing manufacturing, operations, marketing, and content creation.  

Leveraging a scalable tech stack, TFK empowers its partner brands with a robust infrastructure to thrive in the competitive fashion industry. 

The acquisition of OPIO is a strategic move for TFK, aligning with its vision to establish a venture stylized as THE FASHION KINGDOM with the goal of creating an all-in-one fashion aggregator and venture builder. 

The cooperation between TFK and OPIO will enable the combined entity to offer enhanced offerings and experiences to fashion-conscious consumers in the region.

Topics: Start-up of the Week Plug and Play Tech Center

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Oil Updates — prices up ahead of Sino-US trade meeting

Updated 09 May 2025
Reuters
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Oil Updates — prices up ahead of Sino-US trade meeting

Updated 09 May 2025
Reuters

NEW DELHI: Oil prices were up slightly on Friday, after rising about 3 percent in the previous session, as trade tensions between top oil consumers US and China showed signs of easing and Britain announced a “breakthrough” trade deal with the White House.

Brent crude rose 23 cents, or 0.37 percent, to $63.07 a barrel while US West Texas Intermediate crude was up 21 cents, or 0.35 percent, at $60.12 a barrel as of 8:07 a.m. Saudi time. On Thursday, both contracts settled nearly 3 percent up.

US Treasury Secretary Scott Bessent will meet China’s top economic official Vice Premier He Lifeng in Switzerland on May 10 to work toward resolving trade disputes that have threatened growth in the consumption of crude oil.

“If the two set a date to start formal trade negotiations and agree to ratchet down their current steep tariffs against each other while talks carry on, markets will get a breather and crude could stack on another $2-$3 per barrel,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

China’s exports rose faster than expected in April, while imports narrowed their declines, customs data showed on Friday, giving Beijing some relief ahead of ice-breaker tariff talks with the US this weekend.

Separately, US President Donald Trump and UK Prime Minister Keir Starmer announced Britain had agreed to lower tariffs on US imports to 1.8 percent from 5.1 percent.

The US cut duties on British cars but left a 10 percent tariff on most other goods.

“Any more US trade deals after the one with UK with other major trading partners would have only a marginal impact on oil sentiment,” Hari added.

Elsewhere, the Organization of the Petroleum Exporting Countries and allies — or OPEC+ — plan to increase output which could keep pressure on oil prices. A Reuters survey found OPEC oil output edged lower in April as production declines in Libya, Venezuela and Iraq outweighed a scheduled increase in output.

Tighter US sanctions on Iran could restrict supply and push prices higher. Sanctions on two small Chinese refiners for buying Iranian oil made it difficult for them to receive crude and led them to sell their product under alternative names, sources told Reuters on Thursday.

In the meantime, Pakistan’s armed forces launched “multiple attacks” along India’s entire western border on Thursday night and early Friday, the Indian army said, as conflict between the nuclear-armed neighbors intensified.

Rystad Energy analysts expected both countries to increase crude procurement and refinery activity amid mounting tensions.

“Diesel demand is likely to rise amid increased military mobilization, while airline fuel consumption declines as airspace closures lead to rerouted flights, cancelations and soaring airline ticket prices,” Rystad’s Rohan Goindi said in a note.

In terms of daily crude demand, India consumes 5.4 million barrels per day, compared to Pakistan’s 0.25 million bpd, according to Rystad Energy estimates.
 

Topics: oil prices oil updates

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Closing Bell: Saudi main index closes in red at 11,364 

Updated 08 May 2025
Miguel Hadchity
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Closing Bell: Saudi main index closes in red at 11,364 

Updated 08 May 2025
Miguel Hadchity

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 34.63 points, or 0.3 percent, to close at 11,364.11. 

The total trading turnover of the benchmark index was SR4.71 billion ($1.25 billion), as only 65 stocks advanced, while 173 retreated. 

The MSCI Tadawul Index decreased by 3.77 points, or 0.26 percent, to close at 1,452.01. 

The Kingdom’s parallel market, Nomu, rose, gaining 153.78 points, or 0.55 percent, to close at 27,931.49. This comes as 40 stocks advanced, while 34 retreated. 

The best-performing stock on the main market was Al Majed Oud Co., with its share price surging by 9.88 percent to SR129. 

Other top performers included Saudi Arabian Cooperative Insurance Co., which saw its share price rise by 4.38 percent to SR15.24, and MBC Group Co., which saw a 3.79 percent increase to SR42.45. 

Gulf General Cooperative Insurance Co. recorded the largest decline of the day, with its share price slipping 9.98 percent to SR7.76. 

United Cooperative Assurance Co. saw its shares fall by 9.23 percent to SR8.06, while Middle East Healthcare Co. recorded a decline of 8.91 percent, closing at SR64.40.  

On the announcements front, ACWA Power Co. reported its interim financial results for the first three months of the year, posting a net profit of SR427.1 million — a 14.9 percent decline compared to the previous quarter. 

The company attributed the drop in net profit to an impairment recovery recognized in the prior quarter, higher financial charges, and a lower deferred tax credit. 

ACWA Power Co.’s shares on the main market rose 0.54 percent in today’s trading session, closing at SR299.40. 

In another announcement, Gas Arabian Services Co. also announced its financial results for the same period with its net profit rising by 46.9 percent to SR31.3 million compared to the same period last year. 

The company credited the growth to substantial growth in revenue and savings in cost of revenue. 

The GAS’s share price traded 0.89 percent higher to reach SR15.80. 

During the first quarter of the year, Saudi Reinsurance Co.’s net profit after Zakat reached SR35.4 million, up by 11.3 percent compared to the same period in 2024.  

This growth was attributed to an increase in reinsurance revenue by 56 percent, coupled with a rise in net profit of reinsurance results and net investment profit. 

Moreover, the National Shipping Co. of Saudi Arabia and Bupa Arabia for Cooperative Insurance Co. also announced their financial results for the first quarter of 2025, with net profits reaching SR532.8 million and SR380.2 million, respectively. 

Bahri’s shares on the main market declined by 3.55 percent to close at SR29.90, while Bupa Arabia’s shares fell 0.56 percent to SR178.20. 

Topics: TASI NOMU

Saudi Arabia, France set to deepen industrial, mining ties

Updated 08 May 2025
MOHAMMED AL-KINANI
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Saudi Arabia, France set to deepen industrial, mining ties

Updated 08 May 2025
MOHAMMED AL-KINANI

JEDDAH: Mining, critical minerals, aerospace, and manufacturing took center stage as Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef concluded a three-day visit to France aimed at enhancing bilateral cooperation and securing strategic investments.  

Alkhorayef met with senior French officials and executives from leading companies such as Airbus, Safran, and Orano Mining to explore opportunities for collaboration, particularly in the areas of critical minerals, which are vital for clean energy, and advanced aerospace manufacturing, the Saudi Press Agency reported.   

The discussions also aimed to strengthen ties in the broader industrial and manufacturing sectors, central to the Kingdom’s push for technological localization.  

The visit, which began on May 5, underscores Saudi Arabia’s ongoing efforts to diversify its economy and align its industrial strategy with the ambitious goals of Vision 2030. 

In a statement posted on X, Alkhorayef said: “I concluded my official visit to the French Republic, during which I held constructive meetings with leaders in the public and private sectors, aimed at enhancing industrial and mining cooperation, and discussing opportunities for technology transfer and attracting qualitative investments to localize several strategic industries in the Kingdom, in order to achieve the goals of Vision 2030.”   

A key focus of the visit was on securing a stable supply of critical minerals, such as lithium and cobalt, essential for Saudi Arabia's green energy initiatives and the growing electric vehicle sector.  

Alkhorayef met with France’s Interministerial Delegate for Strategic Minerals and Metals Supplies, Benjamin Gallezot, to discuss ways of ensuring global supply chain resilience and promoting sustainability within the mining sector. 

“We also emphasized the importance of international partnerships in enhancing the sustainability of the global mining sector,” the minister added. 

The visit included a tour of Airbus Helicopters’ Marignane facility and meetings with Airbus CEO Guillaume Faury where Alkhorayef explored advanced aircraft manufacturing technologies. 

The minister also mentioned discussing mutual opportunities with the CEO “to exchange expertise and transfer knowledge and technology, which will enhance the localization of the aviation industry in the Kingdom.” 

Alkhorayef met with leaders from Orano Mining, Bel Group, Sidel, and Safran to explore joint investment opportunities across multiple industries, including food production, satellite technologies, and high-tech manufacturing.  

The focus was on leveraging Saudi Arabia’s favorable investment climate, which includes substantial capital support and long-term growth enablers, to attract foreign direct investment. 

Alkhorayef’s visit also included discussions with Airbus executives in Toulouse, where the minister noted the rapid growth of Saudi Arabia’s aviation sector. He stated that Saudi Arabia’s aviation sector is witnessing rapid growth with the expansion of national airline fleets and supporting infrastructure. The Kingdom’s National Aviation Strategy aims to increase passenger traffic to 330 million annually and air cargo to 2.5 million tonnes by 2030. 

As part of its industrial expansion, Saudi Arabia launched a SR10 billion ($2.67 billion) incentive program designed to attract investments in sectors including aerospace. The program offers up to 35 percent coverage for eligible capital expenditures, with a cap of SR50 million per project. 

The Kingdom also unveiled its first aviation-focused industrial hub, covering 1.2 million sq. meters and offering direct access to seaports, airports, and railways to support global collaboration. 

On the first day of his visit, Alkhorayef also participated in the “Industrial Day” event at Airbus Helicopters’ headquarters, where he emphasized the Kingdom’s strategy to localize technologies, enhance international partnerships, and leverage Saudi Arabia’s mineral resources to establish itself as a global industrial hub.  

The visit concluded with the signing of a memorandum of understanding between Sidel and Saudi Arabia’s National Industrial Development Center. The MoU aims to establish a regional service hub, training center, and human capital development initiative in Saudi Arabia, further advancing the Kingdom’s industrial goals. 

Topics: Saudi Arabia

Saudi Arabia sees 13% rise in patent filing to reach 8,029 in 2024


Updated 08 May 2025
Nadin Hassan
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Saudi Arabia sees 13% rise in patent filing to reach 8,029 in 2024


Updated 08 May 2025
Nadin Hassan

RIYADH: Saudi Arabia’s intellectual property landscape continued its robust growth in 2024, with patent filings rising by 13.33 percent year on year to reach a record 8,029, according to the Saudi Authority for Intellectual Property.

The authority’s annual statistical report highlighted significant expansion across all key IP categories, underscoring the Kingdom’s ongoing transformation into a knowledge-based economy.

Patent applications from individuals surged by 62 percent, while filings by foreign applicants rose 15 percent to 4,921. The increase reflects rising global interest in protecting innovations within the Kingdom.

Trademark registrations totaled 31,834 in 2024, marking a 15.72 percent increase, while design filings grew by 8.75 percent. Voluntary copyright registration also saw a notable 63.15 percent jump, indicating greater public engagement with IP rights.

SAIP issued 4,355 patent certificates, 1,578 design registrations, and 1,504 copyright certificates throughout the year.

The report also noted that 96 percent of granted patents originated from institutions, highlighting the active role of universities and research centers in the innovation ecosystem. Individual inventors filed 2,139 patent applications — up from 1,320 in 2023—showing growing grassroots participation.

In terms of technical fields, information technology and software accounted for 25.77 percent of total patent filings. Library and document management comprised 57.16 percent, and applied technical inventions followed at 12.46 percent.

Public understanding of intellectual property also improved, with SAIP reporting an 8 percent rise in the national IP awareness index. This was attributed to expanded electronic services, streamlined procedures, and national initiatives aimed at safeguarding innovators’ rights.

Internationally, Saudi Arabia’s efforts have not gone unnoticed. The Kingdom recorded a 17.5 percent improvement in its score on the 2025 Global Intellectual Property Index, placing it among the top-performing countries out of 55 economies evaluated.

Saudi Arabia also ranked 24th globally in artificial intelligence patent output, with 1,189 AI-related patents filed—further cementing its commitment to technological advancement and innovation-led growth.

The Kingdom’s achievements are the result of sweeping reforms to its IP framework, including enhanced legal protections and enforcement strategies that aim to foster a more competitive, innovation-driven economy.

Topics: intellectual property SaudiVision2030

Saudi Arabia sees 73% surge in e-commerce sales using MADA cards

Updated 08 May 2025
Dayan Abou Tine
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Saudi Arabia sees 73% surge in e-commerce sales using MADA cards

Updated 08 May 2025
Dayan Abou Tine

RIYADH: Saudi e-commerce sales via MADA cards surged 73.4 percent year on year in March to a record SR27.55 billion ($7.34 billion), reflecting rapid growth in the Kingdom’s digital payment ecosystem. 

According to the Saudi Central Bank, also known as SAMA, online transactions using the national card network reached 147.6 million during the month, up 54.5 percent compared to March 2024.

The figures reflect transactions completed through websites, mobile apps, and e-wallets linked to MADA, and do not include those carried out using Visa, MasterCard, or other international networks.

MADA — the Kingdom’s domestic debit card network — underpins a growing portion of Saudi Arabia’s non-cash economy by enabling secure, contactless payments through NFC technology both online and at retail locations. This growth in digital commerce reflects rising consumer trust, expanding fintech ecosystems, and national investments in financial technology integration. 

In a step toward digital expansion, SAMA signed an agreement in April with Google to introduce Google Pay in Saudi Arabia using the MADA infrastructure. The integration, expected to launch later in the year, will allow users to add and manage their MADA-linked cards within Google Wallet, offering seamless and secure transactions across physical stores, mobile apps, and websites.

According to SAMA, this move is part of a broader push to establish a robust digital payments infrastructure and reduce the country’s dependence on cash transactions. 

The central bank’s efforts also include licensing new fintech players such as Barq, launching e-wallet platforms, and facilitating the operational launch of STC Bank, all aimed at bolstering financial inclusion and consumer convenience.  

Earlier this year, the eSAMA portal also entered trial phase, providing digital access to a range of central bank services. 

Alongside e-commerce growth, point-of-sale transactions using MADA also expanded, reaching SR65.67 billion in March — a 10.02 percent increase year on year. 

E-commerce sales using MADA cards were equivalent to 42 percent of POS transaction value in March, up from 27 percent a year earlier — underscoring the faster growth of online spending compared to in-store purchases.

POS transactions — which cover physical card usage at retail stores, restaurants, gas stations, and service outlets — do remain a critical pillar of everyday consumer spending. 

With Saudi Arabia aiming for over 70 percent of all transactions to be non-cash by 2025, the latest data signals that the Kingdom is fast approaching its digital transformation benchmarks — with MADA at the heart of this evolution. 

Topics: mada cards e-commerce

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