Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism
Updated 03 October 2023
Arab News
RIYADH: In a bid to enhance the experience for travelers and bolster Chinese visits to Saudi Arabia, the Saudi Tourism Authority has collaborated with Huawei Mobile Services and its advertising branch, Petal Ads.
The partnership was cemented through a memorandum of understanding signed during the Approved Destination Status launch ceremony in Beijing, according to a press release.
Fahd Hamidaddin, CEO of the Saudi Tourism Authority, signed the deal alongside Walter Ji Rengui, president of Huawei Consumer Cloud Service Global Ecosystem Development & Operations.
The primary objective of this collaboration is to reshape the way visitors explore Saudi Arabia by digitizing travel services, with a specific focus on attracting Chinese tourists, the press release added.
Choon Yang Quek, chief technology officer at the STA, stated: “The partnership with Huawei Mobile Services and Petal Ads is part of Saudi’s innovative approach to marketing tourism and enhancing visitor experiences.”
He added: “By joining forces with Huawei, known for its strong consumer connections, and combining it with Saudi’s commitment to visitor satisfaction, we can now reach new audiences more effectively through established Huawei channels and gain deeper insights into Chinese travelers to tailor their Saudi journeys.”
This agreement reflects the ongoing partnership between the two entities and their shared dedication to showcasing Saudi Arabia as a dynamic destination to Chinese audiences, the press release added.
Alhasan Al-Dabbagh, president of Asia-Pacific markets at the STA, said: “By incorporating Huawei’s cutting-edge technology into the travel experience, we can leverage established channels to reach a wider audience and gain a deeper understanding of potential visitors.”
Through the integration of Huawei Mobile Services’ advanced technology solutions, tourists visiting Saudi Arabia can anticipate a smarter travel experience.
This includes features such as seamless navigation, language translation services, and augmented reality-guided tours, all aimed at helping tourists make the most of their time while exploring the Kingdom.
The partnership is part of the STA’s efforts to enhance the tourist experience through technology while highlighting Saudi Arabia’s cultural heritage, landscapes, and hospitality.
This comes as the Kingdom aims to deliver personalized experiences for Chinese tourists, with readily available support throughout their trip.
In partnership with Petal Ads, the STA looks to attract more Chinese tourists to discover Saudi Arabia’s attractions.
Saudi Capital Market Authority launches 2 year strategy to boost market transparency, global investment
Plan’s objectives include creating strong debt market and boosting global competitiveness of asset management industry
Blueprint comprises three pillars and over 40 initiatives designed to propel the market’s growth and efficiency
Updated 59 min 27 sec ago
MANAL AL-BARAKATI
RIYADH: Saudi Arabia’s Capital Market Authority has unveiled its 2024-2026 strategic plan, emphasizing enhancing transparency, fostering financial technology and innovation, and diversifying financing options.
The undertaking will build on past successes while aligning with Saudi Vision 2030, which supports the national economy by facilitating an advanced financial ecosystem and attracting international investments.
Chairman Mohammed El-Kuwaiz highlighted the plan’s bold objectives, which include creating a strong debt market and boosting the global competitiveness of the asset management industry.
“Our new strategy emphasizes the creation of a robust debt market, the enhancement of the asset management industry, and the attraction of increased investments to the national economy,” El-Kuwaiz said during the Debt Markets and Derivatives Forum held in Riyadh on Sept. 8.
The approach underscores protecting investors’ rights with efforts to raise transparency and ensure market integrity.
The blueprint comprises three pillars and over 40 initiatives designed to propel the market’s growth and efficiency. One of the main focuses is enhancing the role of the stock market in raising capital.
To achieve this, the CMA plans to enable the listing of special purpose acquisition companies, known as SPACs, in the parallel market and facilitate the offering of Saudi depositary receipts. These initiatives aim to diversify investment opportunities and strengthen the market’s appeal to domestic and foreign investors.
In developing the sukuk and debt instruments market, the CMA is setting up regulatory frameworks for green, social, and sustainable debt instruments, aligning with the growing global emphasis on environmental, social, and governance (ESG) principles.
By simplifying regulatory procedures for the offering, listing, and registration of debt instruments, the CMA aims to boost market activity and contribute to Saudi Arabia’s broader financial sector development program.
This includes targeting an increase in the market value of the stock market to 80.8 percent of gross domestic product by 2025, a significant rise from the 66.5 percent recorded in 2019, and expanding the volume of debt instruments to 24.1 percent of GDP by the same year.
Investor protection forms a core element of the strategy, with a heightened focus on market transparency and supervision.
In light of recent increases in penalties and compensation for market violations, El-Kuwaiz emphasized the importance of safeguarding investor interests.
“Trust is vital for a successful market,” he said, highlighting the CMA’s efforts to develop procedures for class action compensation and enhance the process of handling complaints between financial institutions and their clients. These measures aim to build a transparent, accountable market environment that underpins investor confidence.
The CMA’s plan also prioritizes empowering the financial market ecosystem, mainly through supporting and fostering financial technology, or fintech.
Recognizing the critical role of technology in driving competition and efficiency within the financial sector, the CMA intends to encourage the growth of fintech companies and enable open finance applications within the market framework. By doing so, the CMA seeks to integrate advanced technologies into the financial sector, streamlining operations and improving user experiences.
The new strategic plan builds on the accomplishments of the CMA’s 2021-2023 agenda, which saw a substantial increase in the number of listed companies — a 52 percent jump from 204 in 2019 to over 310 by the end of 2023.
These achievements have set a strong foundation for the current strategy, underlining the global recognition of the Saudi financial market’s growing prominence.
The new plan seeks to further enhance the market’s attractiveness to foreign investors to make the Saudi financial market a regional and international leader by the end of 2026. This includes doubling the number of companies licensed to practice fintech activities and increasing the volume of managed assets.
A notable feature of the plan is its comprehensive approach to regulatory reforms and market development. This includes reforms to regulatory frameworks for offerings and listings, the development of investment fund regulations, and improvements to class action compensation procedures.
The CMA’s focus on facilitating more flexible fund structures and advancing the asset management industry reflects a forward-thinking approach to market growth and sophistication.
The CMA’s initiatives underscore the Kingdom’s ambition to establish itself as a leading regional and global financial hub. By concentrating on ESG-aligned financial instruments, enhancing market transparency, and prioritizing investor protection, the CMA is laying the groundwork for a sustainable and resilient market environment.
Combined total represented 11.4% of the sultanate’s total banking sector assets
Islamic banking sector rose by 10.4%, amounting to around 6.4 billion rials
Updated 15 September 2024
MIGUEL HADCHITY
RIYADH: The combined assets of Oman’s Islamic banks and windows reached around 7.8 billion Omani rials ($20.2 billion) by June, an 18.1 percent increase from the same period in 2023.
According to data from the central bank, the combined total represented 11.4 percent of the sultanate’s total banking sector assets.
The analysis showed that total financing provided by the Islamic banking sector rose by 10.4 percent, amounting to around 6.4 billion rials.
Deposits in Islamic financial institutions and windows also grew by 14.7 percent, reaching nearly 6 billion rials by the end of June.
The growth in Oman aligns with a broader regional trend. A report by Moody’s Investors Service predicts that Islamic financing across the Gulf Cooperation Council will outpace conventional banking, driven by increasing demand for Shariah-compliant financial products and the stability of Islamic banks’ net profit margins.
Unlike conventional banks, Islamic institutions benefit from fixed-rate retail financing, insulating them from US Federal Reserve monetary policy shifts.
As a result, GCC Islamic banks are expected to maintain superior returns on assets and a stronger net profit margin compared to conventional counterparts.
Moody’s said that the profitability of Islamic financial institutions in the GCC will remain strong over the next 12 to 18 months, fueled by stable oil prices, ambitious economic diversification efforts, and strong business confidence.
Globally, the sukuk market is also set to expand, with Moody’s projecting issuance to reach $200 to $210 billion in 2024, up from under $200 billion in 2023.
Startup Wrap – MENA funding drops in August; recovery signs emerge in September
Updated 15 September 2024
Nour El-Shaeri
RIYADH: The startup ecosystem across the Middle East and North Africa experienced a substantial decline in investment in August, with total funding reaching $83 million across 30 rounds.
This reflects a 76 percent drop from July’s $355 million and a 24 percent year-on-year decrease, according to Wamda and Digital Digest’s monthly report.
Unlike previous months, August did not see any megadeals, with the largest round being UAE-based Yuze’s $30 million deal. Debt financing played a minimal role, accounting for only 3 percent of the total raised capital.
The UAE once again led the region in startup investments, as 13 UAE-based startups raised $55.7 million.
Saudi Arabia followed with $16 million secured across nine deals. Egypt, which had been a top performer in July, saw a sharp decline, raising just $7.6 million from four deals, while Kuwait made it to the top four with a single deal — Kem’s $3 million raise.
Investor interest remained concentrated on fintech, which continued to be the most funded sector for the third consecutive month, raising $54 million across eight deals. Web3 also regained momentum, securing $13.5 million in three rounds, while food tech reappeared on the scene, raising $9 million through four deals.
The month was dominated by early-stage funding, with two startups raising a total of $19 million in Series A rounds, and five startups raising $15.6 million in seed rounds. Seven startups did not disclose their funding stages, accounting for $35.4 million of the total investment.
Business-to-business models remained highly attractive to investors, with 13 startups raising $46 million. Business-to-consumer models attracted $15 million across five rounds, while the remaining funds went to startups operating in both sectors.
Female-led startups continued to face challenges in raising capital, securing just 0.3 percent of the total investment in August. Only one female-founded startup, Powder Beauty, raised an undisclosed pre-series A round, and another female co-founded startup received a $150,000 accelerator grant.
The MENA entrepreneurial ecosystem also saw other notable developments in August, including the formation of the Waad Investment firm, a coalition of Gulf-based family offices targeting a $200 million fund, and a $100 million fund launched by Singapore-based Gate Ventures and the Blockchain Center in Abu Dhabi to promote Web3 innovation.
In Egypt, T-Vencubator launched the “Where’s the Problem?” initiative to support the local startup ecosystem.
On the mergers and acquisitions front, August saw the UAE-based property crowdfunding platform Maisour acquired by Meteora Developers, while Kuwait-based proptech Sakan acquired Qatari company Hapondo.
FlapKap raises $34m in pre-series A round
UAE-based fintech FlapKap raised $34 million in a pre-series A round consisting of both debt and equity financing. The round was led by BECO Capital, with additional participation from Pact VC, A15, Nclude, QED Investors, and debt financing from Channel Capital.
Founded in Egypt in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap offers revenue-based and embedded finance solutions to help small and medium-sized enterprises scale up their inventory and digital ad spending with fast access to capital and the flexibility to pay later.
The new capital will enable FlapKap to expand its SME financing services across the Gulf and the broader Middle East region. The company previously raised $3.6 million in a seed round, bringing its total funding to $37.6 million.
Paymob raises $22m in series B extension
Egypt-based fintech Paymob secured an additional $22 million in a series B extension round, bringing the company’s total Series B funding to $72 million.
The round was led by EBRD Venture Capital, with participation from Endeavor Catalyst, as well as existing investors including PayPal Ventures, BII, FMO, A15, Nclude, and Helios Digital Ventures.
Founded in 2015 by Islam Shawky, Alain El-Hajj, and Mostafa El-Menessy, Paymob provides digital payment solutions to both online and offline merchants.Supplied
Founded in 2015 by Islam Shawky, Alain El-Hajj, and Mostafa El-Menessy, Paymob provides digital payment solutions to both online and offline merchants. The additional funding will help the company pursue its growth strategy across the MENA region.
HissaTech secures $666k in pre-seed funding
Saudi Arabia-based proptech HissaTech raised SR2.5 million ($666,164) in a pre-seed round led by undisclosed angel investors.
Founded in 2024 by Ali Al-Shareef, HissaTech provides a platform that allows individuals to co-own properties, offering rental income and potential capital gains, making property investment more accessible to smaller investors.
The company plans to use the funding to expand its customer base, enhance its digital platform, and build strategic partnerships within the property tech sector.
Entlaq acquires stake in food tech Brotinni
Egypt-based entrepreneurship support company Entlaq has acquired a stake in Brotinni, an Egyptian food tech startup, for an undisclosed amount.
Founded in 2020 by Dalia Abu Omar, Brotinni operates as a dark store, providing customers with online access to meat and poultry products.
The investment will support Brotinni’s plans to expand its operations both within Egypt and in regional markets. The company previously raised $600,000 in a seed round in 2022, led by Innlife Investments.
IO Kitchens closes $2.8m seed round
Oman-based cloud kitchen startup IO Kitchens has closed a $2.8 million seed round, led by Tanmia Small-Cap Fund, with additional backing from regional family offices and investors.
Founded in 2021 by Hisham Hasan, IO Kitchens operates delivery-only cloud kitchens and manages a portfolio of over 30 food and beverage brands. The funding will allow the company to scale its operations across Oman.
Oyster raises $59m, reaches $1.2bn valuation
Lebanese-founded Oyster raised $59 million in its latest series D funding round, reaching a valuation of $1.2 billion.
Founded by Lebanese entrepreneur Tony Jamous, the company offers a payroll and human resources platform that specializes in distributed workforces or global employment.
The new funding brings Oyster’s total raised to $286 million and pushes its valuation to $1.2 billion, up from $1 billion in 2022 when it secured its $150 million series C.
This marks a notable achievement, as the company has maintained its valuation while many tech firms have faced downturns amid challenging market conditions, according to a report by Tech Crunch.
“We’ve grown significantly, more than 7x in two years, and we improved our margins tremendously. It’s a completely different business financially. So I’m glad that we did not have a down round, which would have been the expected scenario if we didn’t grow that much and improved the business in that time,” Jamous told Tech Crunch.
Saudi Arabia’s inflation rate hits 1.6% in August: GASTAT
Saudi inflation rate remains among the lowest in MENA, reflecting Kingdom’s proactive measures to stabilize economy
Kingdom’s Wholesale Price Index rose by 3.2% in August compared to the same month in 2023
Updated 33 min ago
Nirmal Narayanan
RIYADH: Saudi Arabia’s annual inflation rate reached 1.6 percent in August compared to the same month last year, driven by higher housing costs, official data showed.
According to the General Authority for Statistics, actual housing rents surged by 10.7 percent year on year in August, with apartment rents rising by 10.8 percent.
Saudi Arabia’s inflation rate remains among the lowest in the Middle East and North Africa, reflecting the Kingdom’s proactive measures to stabilize the economy and mitigate the effects of global price pressures.
“The increase in this category (housing) had a significant impact on maintaining the annual inflation rate for August 2024, given the weight this group represents 21 percent,” said GASTAT.
The latest report showed that food and beverage prices in the Kingdom saw a slight increase of 0.9 percent in August, while restaurant and hotel expenses rose by 1.6 percent during the same period.
#GASTAT publishes the Consumer Price Index, August 2024.
In the education sector, costs increased by 1.6 percent in August, driven by a 3.8 percent rise in fees for intermediate and secondary education.
Prices for furnishing and home equipment dropped by 3.5 percent, driven by a 6.2 percent decline in the costs of furniture, carpets, and flooring.
Clothing and footwear prices fell by 3.2 percent, and transportation expenses decreased by 3.4 percent compared to August last year.
On a month-to-month basis, Saudi Arabia’s consumer price index edged up by 0.1 percent in August.
The report said that the monthly inflation was influenced by a 0.4 percent rise in housing, water, electricity, gas, and other fuel costs.
GASTAT also noted a 0.4 percent month-on-month increase in food and beverage prices, while restaurant and hotel expenses grew by 0.2 percent.
Prices for education, personal goods and services, health, communications, and tobacco remained relatively stable compared to July.
Ayman Al-Sayari, governor of the Saudi Central Bank, highlighted the Kingdom’s success in maintaining stable inflation levels, attributing it to the strong support of its exchange rate policy.
Speaking at the 83rd meeting of the Central Bank Governors Committee of the Gulf Cooperation Council in Doha on Sept. 12, he said that the average inflation rate in Saudi Arabia stood at 2 percent from 2000 to 2023.
“Monetary policies strongly positively influence the effectiveness of public spending, thereby supporting the objectives of economic diversification. The exchange rate policy has contributed positively toward the ability to formulate long-term economic policies,” said Al-Sayari.
He added: “Monetary stability is an essential enabler for economic growth in the Kingdom, with non-oil activities experiencing an average growth rate of 5 percent from 2022 to 2023.”
In August, Riyadh-based investment management and advisory firm Jadwa Investment shared a similar outlook, predicting that Saudi Arabia’s inflation will decline to 1.7 percent in 2024, revised down from 2 percent, supported by strong non-oil sector growth and lower prices in key areas.
The analysis indicated that falling prices in clothing, footwear, and transportation have helped offset inflationary pressures from the housing market. This mirrors global trends, where easing demand and improved supply chains are reducing price pressures.
Jadwa Investment said that housing costs continue to be a major driver of inflation in Saudi Arabia, particularly in the ‘rentals for housing’ segment. Prices in this category have remained high due to strong demand and a tight rental market, further strained by high interest rates that are leading more Saudis to rent rather than purchase homes.
Wholesale Price Index
In a separate report, GASTAT revealed that Saudi Arabia’s Wholesale Price Index rose by 3.2 percent in August compared to the same month last year.
The authority attributed the increase in WPI to a rise in the prices of other transportable goods, which climbed by 8.1 percent. This was primarily driven by higher expenses for basic chemicals and refined petroleum products, which surged by 13.9 percent and 12 percent, respectively.
The report also noted a 0.4 percent year-on-year increase in the prices of agricultural and fishery products in August.
#GASTAT publishes the Wholesale Price Index, August 2024.
The costs of ores and minerals fell by 3.7 percent in August compared to the same period in 2023, while prices for metal products, machinery, and equipment saw a slight decline of 0.1 percent.
Prices of food products, beverages, tobacco, and textiles remained largely unchanged during the month.
Saudi Arabia’s WPI saw a slight monthly increase of 0.2 percent, driven by a 0.2 percent rise in the prices of other transportable goods.
“Prices of metal products, machinery, and equipment increased by 0.3 percent month-on-month in August, as a result of a 0.9 percent increase in the prices of transport equipment,” said GASTAT.
The report also said that expenses for food products, beverages, tobacco, and textiles fell by 0.2 percent in August compared to July, driven by a 0.6 percent drop in the prices of meat, fish, fruits, vegetables, oils, and fats, as well as a 0.2 percent decline in dairy product prices.
The prices of agricultural and fishing products decreased by 0.1 percent, due to a 1.1 percent drop in the cost of live animals and animal products.
Average prices
In a separate report, GASTAT highlighted notable shifts in the average prices of goods and services across Saudi Arabia in August.
The authority reported that prices of local tomatoes surged by 19.54 percent compared to the previous month, while imported tomatoes saw a 9.83 percent increase during the same period.
Local children’s diapers experienced a month-on-month price rise of 4.94 percent in August, followed by medium local potatoes and Pakistani mangoes, with prices climbing 4.25 percent and 4.08 percent, respectively.
On the other hand, the price of dates dropped by 10.66 percent in August compared to July, and local figs saw an 8.27 percent decline.
These reports from GASTAT offer a comprehensive view of the various factors influencing inflation and the cost of living in the Kingdom.
Startup of the Week – US-based SambaNova sets sights on Saudi market
Updated 14 September 2024
Nour El-Shaeri
CAIRO: Saudi Arabia’s potential as a global leader in artificial intelligence is drawing attention from major industry players, with SambaNova Systems being one of the latest to invest in the region.
The US-based, multi-billion-dollar AI solutions provider plans to deliver advanced infrastructure to support Saudi Arabia’s economic growth, aiming to position the Kingdom as a key hub for innovation and development.
The company specializes in providing advanced machine learning and AI solutions to enterprises.
SambaNova’s technology helps businesses accelerate adoption of the technology, improve decision-making, and drive operational efficiency across industries.
Marshall Choy, senior vice president of product at SambaNova Systems, highlighted the company’s intent to provide durable AI facilities that will fuel economic growth in the region, positioning Saudi Arabia as a key player in the industry.
“We are making a strategic investment in Saudi Arabia because the region — like the US — believes AI is a strategic imperative to fuel its economic growth and become a global hub for knowledge-based innovation,” Choy told Arab News.
Marshall Choy, senior vice president of product at SambaNova Systems. (Supplied)
He stated that AI is reshaping global dynamics and enabling businesses to gain a competitive edge by improving decision-making, reducing costs, and allowing companies to operate on-premise with enhanced data privacy.
A prosperous future
“Our goal is to provide durable AI infrastructure to promote the prosperous future of the Kingdom by deploying SambaNova Systems,” Choy added.
He also noted that collaboration with local Saudi organizations will be key in developing AI expertise in the region, stating that SambaNova aims to “help enable, through collaboration, durable model leadership to help establish the Kingdom’s leadership in the Middle East and North Africa.”
Choy also explained that the company’s expansion into Saudi Arabia will enable it to reach other Gulf countries.
Skill enablement, he said, will be another pillar of the partnership, achieved through structured training programs to foster deep expertise in AI engineering.
This expansion aligns with SambaNova’s broader strategic vision, which focuses on forming partnerships that support digital transformation for both government institutions and corporations. Choy noted that AI is increasingly essential for nearly every organization.
“Nearly every company needs to be an AI company. We believe AI is an asset, not a tool, and SambaNova delivers enterprise customers secure ownership of their models, as well as the ability to train them on their data, maximizing the value of their AI investment,” Choy said.
The senior vice president sees AI as an accelerant for productivity that will not only drive technology and business but societal and economic advancement.
Choy further emphasized the critical role of the Saudi government in the region’s AI expansion.
With the government’s $40- billion investment plan in the technology, there is strong support for the industry’s development.
“Having native sovereign AI capabilities in the Kingdom will enable that fast transition and acceleration from a technology and infrastructure perspective,” he added.
The company is also working with the Kingdom to build a strong infrastructure that will position the nation as a regional leader for the technology, Choy explained.
He highlighted that partnerships between government ministries, private enterprises, and providers like SambaNova will be fundamental to success, both at the national and corporate levels.
The company aims to be the number one AI provider in the Saudi market. Accordingly, SambaNova has partnered with the Kingdom’s largest company, Aramco.
The partnership saw SambaNova deploy systems on site for the energy giant, serving up AI capabilities for its internal intelligence system called Metabrain.
“Metabrain was a project where we co-developed an AI model trained on 90 years of Aramco historical data, this is a model that was completely built on SambaNova infrastructure,” Choy stated.
This model of collaboration has proven effective in other markets, and SambaNova expects the same success in Saudi Arabia.
Boosting the startup ecosystem
Beyond technological advancements, Choy stressed that AI would have a significant impact on the Kingdom’s growing startup ecosystem, fostering innovation and enabling businesses to scale.
“We see this as having a very profound impact on how the growing Saudi startup ecosystem is able to foster innovation and properly grow their businesses using state-of-the-art AI capabilities like SambaNova Suite,” Choy said.
The business environment in Saudi Arabia is also well-suited to SambaNova’s growth and innovation goals, according to the official.
He observed a “willingness and an appetite to engage, collaborate, and move forward quickly” in the Kingdom, fueled by the ambitious AI adoption and acceleration goals set by the Saudi government.
Looking to the future, SambaNova envisions further developments in its operations in the Kingdom, including co-designing with its Saudi partners to create more localized or regionalized solutions and capabilities specific for the domestic market.
“The people of Saudi Arabia are incredibly welcoming,” Choy said, adding: “I was thrilled to exchange ideas with people who are equally passionate about the possibilities of AI and how it will impact the way we all live and work.”
As SambaNova Systems continues to expand into Saudi Arabia, the company remains committed to its mission of helping the Kingdom achieve its long-term AI goals while contributing to the region’s broader digital transformation.
