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Germany’s Delivery Hero raises stakes in Saudi Arabia

DESAISIV, co-founded by Saed Khawaldeh and Mohamad Nabhan, focuses on disrupting the health insurance sector with an innovative customization platform. (Supplied)
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Updated 29 July 2023
Nour El-Shaeri
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Germany’s Delivery Hero raises stakes in Saudi Arabia

  • Healthy venture capital ecosystem boosts startup funding in the region
Updated 29 July 2023
Nour El-Shaeri

CAIRO: With strong economic fundamentals and rising investor confidence, the Middle East and North Africa region has become a hot spot for business consolidation and fundraising startups.

The growing presence of a well-developed venture capital ecosystem has also significantly improved startup funding in the region, disrupting traditional markets.

For instance, German food-ordering giant Delivery Hero has left no stone unturned in entering the region.

On July 24, the company acquired the remaining 37 percent stake in HungerStation, a leading food-ordering platform in Saudi Arabia.

The acquisition pushes the Saudi company toward the unicorn status of $1 billion, with the deal’s $297 million closure elevating its total value to $802.7 million.

Last year, HungerStation experienced a substantial 36 percent surge in revenue, accumulating €609 million ($678 million) and concluding the year with profits exceeding €50 million.

“We believe in the Kingdom of Saudi Arabia’s 2030 vision, ambition and potential and are committed to contributing to its ongoing success through HungerStation. I look forward to continuing to build great products and delivering an amazing experience for our Saudi customers,” said Niklas Ostberg, CEO and co-founder of Delivery Hero, in a statement.

Taking sole ownership will allow Delivery Hero to build stronger ties between HungerStation and the rest of its ecosystem, leading to better knowledge sharing and tech integration.

Founded in 2012 by Ebrahim Al-Jassim and Hossein Bukhamseen, HungerStation is a food delivery app in Saudi Arabia and Bahrain.  

Delivery Hero has a presence in over 70 countries and generated over €11.4 billion in gross merchandise value in the first quarter of 2023. It is also the parent company of regional companies Talabat and InstaShop.

UAE’s Wellx raises $2m to fuel expansion

The UAE-based insurance technology startup Wellx announced it closed a $2 million seed funding round.  

Launched in 2022, the wellness company plans to use the capital to drive growth in the region, stimulate technological innovation, and push its mission of nurturing healthier and more resilient communities.

Dubai Future District Fund led the seed funding round in the presence of a diversified group of investors. 




Wellx’s $2 million seed funding will support its expansion plans. (Supplied)

These included DASH Ventures, Annex Investments and Sanabil 500 MENA Seed Accelerator from Saudi Arabia.

International venture capitals such as Aditum Investments from Luxembourg, Toronto’s Loyal VC and Silicon Valley’s Plug and Play Ventures were also party to the deal.  

Founded by Vaibhav Kashyap, Javed Akberali and Anushka Patchava, Wellx leverages behavioral science and gamification, incentivizing healthier lifestyle choices for its users via personalized rewards.

The startup intends to allocate this capital toward refining its product design and investing in emerging technologies, such as artificial intelligence coaching, to enhance the user experience in the insurance industry.

Wellx CEO Kashyap said: “This investment enables us to expand our global customer base and accelerate our growth.”  

Akberali reflected on the high growth potential of digital health insurance and wellness in the backdrop of UAE’s National Strategy for Wellbeing 2031, disrupting several traditional business models and creating sunrise industries.

The funding will also support Wellx’s expansion plans, including recruiting global talent.

DESAISIV secures $2m for tech disruption

Saudi Arabia’s insurance technology startup DESAISIV has secured $2 million in a pre-seed funding round.  

The company, co-founded by Saed Khawaldeh and Mohamad Nabhan, focuses on disrupting the health insurance sector with an innovative, artificial intelligence-powered insurance customization platform.

DESAISIV is working with top machine learning scientists from the University of Oxford to develop AI solutions that drive insurance decisions.

“Our mission is to revolutionize the insurance sector by leveraging the limitless potential of artificial intelligence,” said Khawaldeh. 

I look forward to continuing to build great products and delivering an amazing experience for our Saudi customers.

Niklas Ostberg, CEO and co-founder of Delivery Hero

With access to a vast database of hundreds of millions of patient records, DESAISIV has achieved a prediction accuracy of over 95 percent using its technology.  

These insights fuel its AI-powered products, which optimize various aspects of health insurance, including automating underwriting procedures, tailoring policies, predicting emerging diseases, identifying high-risk behaviors and reducing customer attrition.

“By fusing AI-driven innovations with the insurance industry, we are on a mission to transform the entire global landscape, bringing forth a new era of unparalleled efficiency and customer-centricity,” said Nabhan.

The pre-seed funding round included investment from 500 Global, Terra VC, Oqal and influential figures from leading insurance firms in the MENA region, the UK and the US.  

The funds will be used to expand operations and teams, develop additional AI products and explore new markets.  

“By harnessing the power of AI, we are reshaping the insurance industry worldwide, empowering insurers and clients with unprecedented capabilities and paving the way for a brighter future,” said Khawaldeh while sharing his global ambitions.

“With this strategic funding, DESAISIV is poised to transform the insurance sector at its core,” added Nabhan.

Topics: startups Delivery Hero DESAISIV Wellx

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Saudi Arabia’s annual inflation rate rises by 1.7% in 2024: GASTAT

Updated 8 sec ago
Nirmal Narayanan
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Saudi Arabia’s annual inflation rate rises by 1.7% in 2024: GASTAT

  • Inflation rate remained among the lowest in the Middle East and globally,nflation rate remained among the lowest in the Middle East and globally
  • GASTAT highlighted a 0.8 percent year-on-year increase in food and beverage prices in 2024
Updated 8 sec ago
Nirmal Narayanan

RIYADH: Saudi Arabia’s annual inflation rate for consumer prices increased by 1.7 percent in 2024 compared to the previous year, driven primarily by higher housing costs, official data revealed. 
According to the General Authority for Statistics, housing rental prices rose by 10.6 percent year on year in 2024, significantly contributing to the overall rise in inflation. Costs for housing, water, electricity, gas, and other fuels collectively increased by 8.8 percent last year compared to 2023. 
Despite the uptick, Saudi Arabia’s inflation rate remained among the lowest in the Middle East and globally, reflecting the Kingdom’s effective measures to ensure economic resilience and mitigate global price pressures. 
The rate also fell short of projections made by the World Bank in October 2024, which had estimated Saudi Arabia’s inflation to remain steady at 2.1 percent last year and 2.3 percent in 2025, both below the Gulf Cooperation Council average. 
In its latest report, GASTAT highlighted a 0.8 percent year-on-year increase in food and beverage prices in 2024. Costs for restaurants and hotels rose by 2 percent, while education expenses increased by 1.3 percent over the same period. 
The report noted declines in several categories. Clothing and footwear prices dropped by 3.4 percent, led by a 5.8 percent decrease in ready-made clothing prices. Similarly, furnishing and household equipment costs fell by 3.4 percent, and transport prices declined by 2.4 percent. 
Prices for entertainment and culture decreased by 1.3 percent, largely due to a 5.9 percent decline in audio-visual equipment prices, further emphasizing the nuanced shifts in consumer price indices across different sectors. 
Annual inflation holds steady in December 
In a separate report, GASTAT noted that Saudi Arabia’s annual inflation rate remained stable at 1.9 percent in December 2024 compared to the same month in 2023. 
Housing rents increased by 10.6 percent yearly in December, with villa rental prices rising by 9.9 percent during the same period. 
“The increase in this section (housing) had a significant impact on the continuation of the annual inflation pace for December 2024 due to the weight formed by this section, which amounted to 25.5 percent,” GASTAT stated. 
Costs for housing, water, electricity, gas, and other fuels rose 8.9 percent compared to the previous year, underscoring the sector’s influence on inflation. Food and beverage prices increased by 0.8 percent year on year in December, driven by a 2.8 percent rise in meat and poultry costs. 
Personal goods and services expenses grew by 2.2 percent in December, influenced by a 20.2 percent surge in jewelry, watches, and precious antiques prices. Education costs also rose by 1.1 percent, primarily due to a 1.8 percent increase in fees for intermediate and secondary education. 
Furnishing and home equipment prices dropped by 2.8 percent in December, while clothing and footwear expenses declined by 2.2 percent. Transportation saw a 2.5 percent decrease year on year, largely attributed to a 3.9 percent reduction in vehicle purchase prices. 

Topics: Saudi Arabia Saudi General Statistics Authority (GASTAT)

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Oil Updates — crude inches up, but uncertainty over sanctions impact caps gains

Updated 59 min 19 sec ago
Reuters
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Oil Updates — crude inches up, but uncertainty over sanctions impact caps gains

Updated 59 min 19 sec ago
Reuters

SINGAPORE: Oil prices rose on Wednesday trimming losses from the previous day, as the focus turned back to potential supply disruptions from sanctions on Russian tankers, though gains were capped as the market awaited more clarity on their impact.

Brent crude futures edged up 11 cents, or 0.1 percent, to $80.03 a barrel by 8:15 a.m. Saudi time, after dropping 1.4 percent in the previous session. US West Texas Intermediate crude climbed 23 cents, or 0.3 percent, to $77.73 a barrel after a 1.6 percent decline.

Prices slipped on Tuesday after the US Energy Information Administration predicted oil would come under pressure over the next two years as supply would outpace demand.

“The dominant driver has been all about the Russian oil sanctions lately, compounded by a streak of stronger US economic data,” said Yeap Jun Rong, market strategist at IG.

“The key question remains on how much Russian supply will be lost in the global market and whether alternative measures can offset the shortfall,” said Yeap, adding that in the near term oil may give up some of its sharp gains from the past week.

The market also found some support on Wednesday from a drop in crude stockpiles in the US, the world’s biggest oil consumer, reported by the American Petroleum Institute late on Tuesday.

“Oil prices are trading firmer in early morning trading in Asia today after API numbers showed that US crude oil inventories fell more than expected over the last week,” said ING analysts.

The analysts added that while crude oil stocks in the country’s flagship storage hub Cushing, Oklahoma, increased by 600,000 barrels, inventories were still historically low. Cushing in the delivery location for WTI futures contracts.

The API reported US crude oil stocks fell by 2.6 million barrels in the week ended Jan. 10, according to market sources citing the API figures. They added that gasoline inventories rose by 5.4 million barrels while distillate stocks climbed by 4.88 million barrels.

A Reuters poll showed analysts expected US crude oil stockpiles fell by about 1 million barrels in the week to Jan. 10. Stockpile data from the Energy Information Administration, the statistical arm of the US Department of Energy, is due at 6:30 p.m. Saudi time.

On Tuesday, the EIA trimmed its outlook for global demand in 2025 to 104.1 million barrels per day, while expecting supply of oil and liquid fuel to average 104.4 million bpd.

It predicted Brent prices would fall 8 percent to average $74 a barrel in 2025, then fall further to $66 a barrel in 2026, while WTI would average $70 in 2025 and fall to $62 next year.

Topics: oil updates oil prices

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World Economic Forum adds Aramco facility to its Global Lighthouse Network

Updated 15 January 2025
Arab News
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World Economic Forum adds Aramco facility to its Global Lighthouse Network

  • The network recognizes industrial sites that use advanced technologies to boost performance, operations and sustainability
  • North Ghawar Oil Producing Complex is the 5th Aramco facility to earn a place in the network
Updated 15 January 2025
Arab News

LONDON: The World Economic Forum has added Aramco’s North Ghawar Oil Producing Complex to its prestigious Global Lighthouse Network.

It is the fifth Aramco facility to earn a place in the network. The company said the addition honors its efforts to enhance operational and environmental performance.

Nasir K. Al-Naimi, the company’s upstream president, described the achievement as testament to the company’s focus on innovation and operational excellence.

“It validates our journey towards a truly digital and lower-carbon-emissions future, where technology empowers us to optimize our processes, reduce our environmental impact, and deliver exceptional value to our customers and shareholders.”

The Global Lighthouse Network, established by the forum in 2018 in collaboration with management consultancy McKinsey & Company, recognizes industrial facilities worldwide that have leveraged Fourth Industrial Revolution technologies to achieve measurable improvements in financial performance, operations and sustainability, and reduce environmental impacts.

The Aramco facility was one of 17 industrial sites worldwide added to the network on Tuesday. It now comprises 189 facilities worldwide, and Aramco is the only energy company represented by more than three facilities. The North Ghawar site is located in Al-Ahsa Governorate in the Eastern Province.

Topics: North Ghawar Oil Producing Complex Aramco Global Lighthouse Network World Economic Forum

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Four Seasons Beirut to reopen in 2026 after reconstruction

Updated 14 January 2025
MOHAMMED AL-KINANI
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Four Seasons Beirut to reopen in 2026 after reconstruction

Updated 14 January 2025
MOHAMMED AL-KINANI

JEDDAH: The Four Seasons Hotel in Beirut is set to reopen in the first quarter of 2026 after undergoing a comprehensive rehabilitation, according to a statement from Kingdom Holding Co.

“On the occasion of a new era for Lebanon, and under the leadership of His Excellency President Joseph Aoun, I am pleased to announce that the Four Seasons Hotel, Beirut, which Kingdom Holding built, will be entirely reconstructed and refurnished by Kingdom Beirut S.A.L and will reopen to the public in Q1 of 2026,” Prince Alwaleed bin Talal, chairman of KHC, wrote on his X account on Tuesday.

Prince Alwaleed further noted that the hotel, located adjacent to Beirut’s Zaitunay Bay marina, would be upgraded to the highest international standards. The revamp is expected to position the property as one of the premier urban resorts worldwide.

The timing of the announcement follows recent diplomatic developments, including a call from Saudi Crown Prince Mohammed bin Salman to congratulate Lebanon’s new president, with an invitation to visit the Kingdom.

The Four Seasons Beirut was severely damaged in the 2020 Beirut Port explosion, which devastated much of downtown Beirut, an area once popular with Gulf tourists.

The region has since been affected by geopolitical tensions, including Hezbollah’s involvement in the Syrian war and its support for Houthis in Yemen.

Four Seasons, one of the world’s leading luxury hotel chains, has been privately owned by KHC and Cascade Investment, the investment vehicle controlled by Bill Gates, since 2007. Both KHC and Cascade own 47.5 percent stakes in the company, with the remaining 5 percent held by Triple Holdings, which represents Four Seasons’ founder, Isadore Sharp, according to KHC’s website.

KHC’s relationship with Four Seasons dates back to 1994, when the company first recognized the brand’s potential and invested in a minority stake through a private equity deal.

Topics: KHC Four Seasons hospitality

Saudi Arabia, Pakistan to announce major collaborations in mining, minister reveals

Updated 14 January 2025
Reem Walid
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Saudi Arabia, Pakistan to announce major collaborations in mining, minister reveals

Updated 14 January 2025
Reem Walid

RIYADH: Saudi Arabia and Pakistan are set to announce major collaborations in the mining sector, with a particular focus on copper and gold assets, according to a top official.

Speaking to Arab News on the first day of the Future Minerals Forum 2025, taking place in Riyadh from Jan. 14 to 16, the South Asian country’s Minister for Petroleum Musadik Malik explained that the two nations are also exploring collaboration prospects in additional sectors including energy, food security, and industrial.

This falls in line with Pakistan seeking to strengthen trade and investment ties with the Kingdom, whose leadership reaffirmed its commitment this year to expedite a $5 billion investment package for the country.

“Well, we are hoping and expecting the year 2025 to be a year of big announcements, particularly between the Kingdom of Saudi Arabia and Pakistan. As you know, we are in advanced stages of conversations about a very large asset, and we have done all the homework that was needed. We’ve done the commercial due diligence, we’ve done the legal deed due diligence. We’ve done the financial due diligence. Both sides have come up with valuation frameworks,” Malik said.

“In mining, it’s going to be the mining assets, particularly the copper mining assets, copper and gold mining assets. So, we are very hopeful about that,” he added.

The senator said the valuation ranges are in place, and both teams are now empowered to negotiate.

“Right now, we are under non-disclosure, so I can’t give you the details, but suffice to say that we are expecting very big announcements very soon,” Malik said.

“In the industrial areas, as you know, there are about $2 billion worth of commercial MoUs (memorandums of understandings) and contracts already signed between the Saudi companies and Pakistani companies, and many of them have become the actual contracts, and the trade has started. So, that’s a big chunk of commercial activity as well as industrialization activity,” he added.

“We also have ongoing conversations about very large energy projects, in terms of refineries and so on and so forth. So, it depends upon whether it’s food security. We have things going on, whether it’s commercial trade, there are things going on, whether there’s industrial activity and investments there are things going on,” the senator said.

Malik went on to highlight the benefits of the ministerial roundtable held at the Future Minerals Forum, which saw participation from 89 countries.

“I think the most interesting and intriguing part of this ministerial roundtable is that everyone is focused on the future. We’re not just talking about right now. It’s almost like we’re sitting together and writing the history of future. That’s what we are trying to do,” he said.

“We are thinking not just about where the assets are, but we are also thinking about where how these assets are going to create value and we are not only limited to creating value, but we are also thinking about value capture. So, from asset to value creation to value capture, everything is getting discussed, and it’s getting discussed in a manner which ensures sustainability of mining,” he added.

The senator also highlighted the growing focus on sustainable mining, communities, the circular economy, and how resource-rich countries are positioning themselves to participate in downstream activities, capture value, and navigate the geopolitics and emerging industrial policies shaping the future.

“All of those very healthy discussions are taking place right now. But if you talk about the end game, the end game is to ensure that there’s a sustainable world, that the world is carbon neutral,” Malik said.

Topics: Future Minerals Forum FMF Saudi-Pakistan ties Mining

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