Search form

You are here

  • Home
  • Saudi Arabia leading region’s transformative journey 


Saudi Arabia leading region’s transformative journey 

Saudi Venture Capital’s strategic initiatives have positioned Saudi Arabia as a leader in venture investments within the MENA region for the first time in 2023. (SPA)
Short Url

https://arab.news/8bgm2

Updated 01 October 2024
Nour El-Shaeri
Follow

Saudi Arabia leading region’s transformative journey 

  • SVC makes significant strides in shaping private investment landscape
Updated 01 October 2024
Nour El-Shaeri

CAIRO: A wave of venture capital funding has washed over the Middle East and North Africa region, prompting transformative change in the entrepreneurial landscape.

Saudi Arabia’s government is leading the shift through a subsidiary of the SME Bank, part of the National Development Fund.  

The Kingdom’s Saudi Venture Capital has made significant strides in shaping the private investment landscape, deploying finance across 40 investment funds and over 700 startups and small and medium-sized enterprises.  

This was highlighted in the latest Impact Report issued by SVC, which detailed its contributions since its inception in 2018. 

The document revealed that SVC’s total investments have reached SR2.6 billion ($693.1 million), with the overall impact of these, including partner commitments, estimated at around SR13.6 billion.  

These investments span various sectors critical to economic diversification, such as e-commerce, fintech, healthcare, educational technologies, transportation, and logistics. 

“SVC plays a crucial part in stimulating the private VC investment to sustain and foster the steady growth of the VC ecosystem in the Kingdom,” Nabeel Koshak, CEO of SVC, said.  

“SVC’s strategy, since its inception in 2018, contributed to increasing the number of investors in Saudi startups, encouraging existing and new financial companies to establish VC funds, and motivating regional and global funds to invest in Saudi startups,” Koshak stated. 

“Accordingly, the funding deployed into Saudi Arabian startups grew 21 times to a record-high of $1.4 billion in 2023 versus $65 million in 2018, the year SVC was launched,” he added. 

Significantly, SVC’s strategic initiatives have positioned Saudi Arabia as a leader in venture investments within the MENA for the first time in 2023.  

This milestone reflects the broader economic and financial sector evolution under Saudi Vision 2030, aimed at enhancing the national economy. 

Saudi Arabia’s Penny Software closes undisclosed pre-series A round 

Closing its pre-series A funding round, Saudi Arabia’s Penny Software raised an undisclosed sum from Iliad Partners, joined by GSI and US-based Knollwood Investments, alongside existing investors such as Dallah Investment, Hambro Perks Oryx Fund, Class 5 Global, Altuwajiri family fund, and strategic angel investors.  

Founded in 2020 by Iyad Al-Dalooj, Majid Al-Dalooj, and Mohamad Ibrahim, Penny Software is a business to business Software-as-a-Service procurement startup that digitizes the entire source-to-pay process, thereby enhancing spend efficiency, governance, and compliance. 

“This investment from Iliad Partners, alongside the continued support from our existing and new investors, represents a significant vote of confidence in Penny Software’s vision and our team’s ability to execute,” Iyad Al-Dalooj, the CEO, said. 

“We are excited to leverage this partnership to scale our operations, enhance our product offering, and solidify our position as a leader in the procurement software industry. The future of procurement is here, and Penny Software is at the forefront of this transformation,” he added. 

This new capital infusion is poised to fuel Penny’s ambitions for regional and global expansion.  

This follows a successful $5 million seed funding round in 2021, led by Outliers Venture Capital with participation from Wamda, Shorooq Partners, Hambro Perks ORYX Fund, Class 5 Global, and strategic angel investors.  

Penny Software aims to leverage this investment to further enhance its platform capabilities and broaden its market reach, reinforcing its position in the competitive SaaS industry. 

The company claims that it is set to manage a gross transaction value of over $1 billion this year, and ease procurement for thousands of companies globally. 

“Saudi Arabia is an economy that is undergoing a major transformation in which technology is playing a key role. This is our first investment in the Kingdom, and we plan to invest a significant portion of our fund in this market, supporting strong founders on their journey from the pre-series A stage and onwards,” Christos Mastoras, founder and managing partner of Iliad Partners, stated   

UAE’s DocsInBox closes $500k in a funding round 

UAE’s e-invoicing and procurement startup DocsInBox closed a $500,000 funding round from angel investors to boost its presence. 

Founded by serial entrepreneurs Leonid Dovbenko and Stanislav Seleznev,  DocsInBox significantly streamlines invoicing and procurement processes, saving up to 1 million hours each month, the company claimed.  

The platform enables purchasing agents to place orders in just three clicks, while accountants can complete tasks in 13 seconds that previously took 300 seconds.  

By automating procurement, DocsInBox reduces manual labor by 15 percent, operational costs by 5 percent, and food costs by 8 percent.  

UAE’s U-topia secures $850k in funding round 

UAE-based Web3 services provider U-topia has secured $850,000 in funding from GDA Capital. 

Established in 2021 by Jérémy Mahieu and Nicolas Prévost, U-topia operates as a Web3 entertainment company that merges global intellectual property licensing in GameFi, artificial intelligence music, and video entertainment supported by non-fungible token provenance.  

The newly acquired investment is earmarked for the development of advanced features and technologies on the U-topia platform, aiming to enhance its offerings in the dynamic Web3 landscape. 

Nigeria’s VC firm Verod-Kepple Africa Ventures closes $60m fund 

Nigeria-based VC firm Verod-Kepple Africa Ventures has concluded a final close of $60 million for its pan-African VC fund, led by existing investors and new investors, including SCM Capital from Nigeria and institutional investors from Japan, including Taiyo Holdings and C2C Global Education Japan. 

Formed in 2021 as a joint venture between Kepple Africa Ventures and Verod Holdings, VKAV is led by partners Satoshi Shinada, Ryosuke Yamawaki, and Ory Okolloh. 

The fund aims to bridge the funding gap for African startups, especially for companies moving to series A and B stages. 

Egypt’s VC firm Beltone teams up with UAE’s CI Venture to manage a $30m fund 

Egypt’s Beltone Venture Capital, under Beltone Holding, has teamed up with CI Venture Capital from UAE’s Citadel International Holdings to manage a $30 million fund aimed at nurturing fast-growing startups.  

This collaborative fund is set to invest in pre-seed and seed funding rounds of innovative tech startups across the MENA region while also continuing to support standout performers within its existing portfolio. 

In recent months, the fund has actively begun deploying capital, finalizing investments in several startups, including Bosta, Trella, Qlub, and ariika.  
 

Topics: startups VENTURE CAPITAL

Related

Business & Economy
Startup Wrap – Saudi Arabia captures nearly half of MENA’s Q1 funding 
Business & Economy
Regional startups join forces to further propel the ecosystem

PIF to sell Thiqah to Elm in $907m deal to strengthen Saudi Arabia’s ICT sector

Updated 10 sec ago
MIGUEL HADCHITY 
Follow

PIF to sell Thiqah to Elm in $907m deal to strengthen Saudi Arabia’s ICT sector

Updated 10 sec ago
MIGUEL HADCHITY 

RIYADH: Saudi digital solutions company Elm has agreed to acquire Thiqah Business Services Co., owned by the Public Investment Fund, in a deal valued at $907 million to boost the information and communications technology sector. 

Elm has signed a share purchase agreement with PIF to acquire Thiqah in a cash transaction following discussions initiated in 2023, the company said in a bourse filing. 

The deal involves the purchase of 45,000 shares, each with a nominal value of SR1,000 ($266.56), representing the entire issued share capital of Thiqah. 

The acquisition is expected to play a pivotal role in advancing Saudi Vision 2030’s goal of fostering digital transformation, creating high-skilled jobs, and supporting economic diversification, the company said in a press release. 

“This is an important transaction for Elm, as it enhances integration, rationalizes spending, increases profitability, and provides qualitative advantages for both parties and the market,” said Mohammad Abdulaziz Al-Omair, the CEO of Elm. 

He said the integrated entity will be better positioned to deliver advanced national smart services, meeting market requirements and client needs. 

“It will also contribute to facilitating innovative operations and capabilities to develop products in the business field with cost advantages, while achieving economies of scale,” added Al-Omair. 

The transaction, subject to regulatory approvals and fulfilment of agreement conditions, marks a strategic move to enhance Saudi Arabia’s information and communication technology ecosystem. 

The transaction further aligns with PIF’s broader strategy of enabling the Kingdom’s digital transformation by supporting high-impact investments in key sectors. 

“PIF is committed to enabling the creation of national champions who contribute to driving the development and growth of the Saudi economy. said Shahd Attar, head of technology and media, MENA Investments, at PIF.

“PIF’s sale of Thiqah to Elm will enhance the ICT sector’s vital role and strengthen efforts to localize technology and drive innovation,” Attar added.

The ICT industry is considered a fundamental enabler for multiple other sectors, including entertainment, financial services, health care, transport and logistics, and utilities and renewables. 

As one of the largest and most influential sovereign wealth funds in the world, PIF plays a leading role in driving Saudi Arabia’s economic transformation. 

Since 2015, PIF has significantly expanded its investments, establishing 99 companies and focusing on 13 strategic sectors both domestically and globally. 

PIF’s Vision 2030-aligned investment strategy prioritizes key industries that contribute to local content development, private sector partnerships, and technological localization. 

The sale of Thiqah to Elm is part of PIF’s broader efforts to maximize the value of Saudi assets while reinforcing its commitment to a knowledge-based digital economy. 

Oil Updates — crude steady as investors watch Trump 2.0 policies

Updated 47 min 52 sec ago
Reuters
Follow

Oil Updates — crude steady as investors watch Trump 2.0 policies

Updated 47 min 52 sec ago
Reuters

SINGAPORE: Oil prices were little changed on Wednesday as markets weighed US President Donald Trump’s declaration of a national energy emergency on his first day in office and its impact on supply.

Brent crude futures rose 9 cents to $79.38 per barrel at 7:20 a.m. Saudi time, while US West Texas Intermediate crude futures inched up 1 cent to $75.84.

The contracts settled lower on Tuesday after Trump laid out a sweeping plan to maximize oil and gas production, including by declaring a national energy emergency to speed permitting, rolling back environmental protections, and withdrawing the US from the Paris climate pact.

“Market participants are trying to digest the mixed signals that Trump 2.0 bring for the trajectory for oil prices,” said Yeap Jun Rong, market strategist at IG.

“Near-term focus will be on whether his aim to fill up the US strategic reserves materializes,” said Yeap, adding that attention is on his upcoming tariff policies.

Trump’s latest energy policy is unlikely to spur near-term investment or change US production growth, analysts at Morgan Stanley wrote in a note, adding that it could, however, moderate potential erosion of refined product demand.

Analysts also questioned if Trump’s promise to refill the strategic reserve would make any changes to oil demand as the Biden administration was already purchasing oil for the emergency stockpile.

Investors also remained cautious as Trump’s trade policy remained unclear. He said he was thinking of imposing 25 percent tariffs on imports from Canada and Mexico from Feb. 1, rather than on his first day in office as previously promised.

The US president also added that his administration would “probably” stop buying oil from Venezuela, among the top suppliers of oil to the country.

Meanwhile, a rare winter storm churned across the US Gulf Coast on Tuesday, and much of the US remained in a dangerous deep freeze.

North Dakota’s oil production was estimated to be down by between 130,000 and 160,000 barrels per day due to extreme cold weather and related operational challenges, the state’s pipeline authority said on Tuesday.

The impact of the storm on oil and gas operations remained limited in Texas, with minimum interruptions in gas flows, few power outages and plenty of gasoline inventories at the pump, as many roads and highways remained closed.

Topics: oil updates oil prices

Related

Business & Economy
Oil Update — crude slips as investors eye Trump move on Russian export curbs
Business & Economy
Aramco chief expects additional oil demand of 1.3m bpd this year

WEF panelists call for systemic policy shifts to help developing countries out of global debt crisis

Updated 22 January 2025
Arab News
Follow

WEF panelists call for systemic policy shifts to help developing countries out of global debt crisis

  • At World Economic Forum Annual Meeting in Davos, they urge governments and lenders to take shared actions to build strong, resilient economies and relieve debt burdens
  • Developing countries have accrued twice as much debt since 2010 compared with those in the developed world
Updated 22 January 2025
Arab News

DUBAI: The international community must devise ways to help nations in the developing world out of the global debt crisis and safeguard societies from the long-term effects of economic stagnation.

This was the message from a panel of experts during a discussion at the World Economic Forum Annual Meeting in Davos on Tuesday. Amid global transformations and ongoing uncertainty, they called for shifts in domestic and global monetary policies to provide relief for countries with debt burdens, and for governments and lenders to take shared actions to help build strong and resilient economies.

An International Monetary Fund report published in October stated that global pubic debt was expected to exceed $100 trillion during 2024, representing about 93 percent of global gross domestic product. Developing countries have accrued twice as much debt since 2010 compared with those in the developed world, according to UN figures..

The COVID-19 pandemic, climate change and unprecedented hikes in interest rates have compounded this debt crisis in some countries, potentially jeopardizing the futures of generations to come and slowing global progress.

Rebeca Grynspan, the secretary-general of UN Trade and Development, called for change at a systemic level to help countries take proactive steps to avoid debt problems in an ever-changing world.

“The developing world has half the debt that developed world has, the problem is paying for it,” she said.

“Firstly, we should avoid a liquidity problem becoming a debt problem. We have instruments that we don’t use in the international system, like special drawing rights.

“Secondly, the developing countries need long-term loans. If you go for infrastructure, you really want to grow, you need long-term money.”

For a monumental shift to take place, multilateral development banks need to scale up, take risks and crowd in private investment, Grynspan added.

About 3.3 billion people live in countries that spend more servicing debt than they do on education or health, according to a report published by the UN in July 2023.

“Markets are not in crisis but people are,” said Grynspan. “We don’t have a debt fault, but we have a development fault and that in turn will come to hunt us because if you cannot have growth in these countries, then we will not be able to get onto a sustainable path.”

Andre Esteves, chairperson and senior partner of Brazilian financial company Banco BTG Pactual, warned that a trade war between US and China during Donald Trump’s second term as president might affect other countries. However, he also highlighted positive indicators among the policies of the new administration in Washington.

“The whole idea of more fiscal discipline, ranging from deregulation and private-sector growth,” he said by way of examples. “But there needs to be the core of regulatory framework, otherwise it would be a bad move.”

As the debt crisis fuels power imbalances, dominance is expected to skew toward China, said Simon Freakley, the chairperson and CEO at global consulting firm AlixPartners.

“In today’s world, where developing countries are struggling to pay back their debt, they need to borrow more,” he noted, adding that China is able to exert significant influence as its capital markets are wide open to commodity-rich countries unwilling to borrow more money or service a debt.

Rania Al-Mashat, Egypt’s minister of planning, economic development and international cooperation, said macroeconomic stability needs to be coupled with structural reforms that improve the business environment to attract investment, reduce burdens and support the green transition.

Amid escalating conflicts in the Middle East and North Africa region, policies must be adopted to help mitigate the effects of various types of shocks, she added. For example, an IMF-supported Egyptian program was approved in December 2022 with the aim of achieving macroeconomic stability and encouraging private-sector-led growth.

“The manufacturing sector could benefit from inflows there,” Al-Mashat said. “We are also trying to put stringent ceilings on public investment so that the private sector can come in. All of these are drivers for growth financing for development.”

She called for a rethinking of global financial architecture to help more middle-income, emerging economies find alternative financing, such as debt swaps, for climate action or development.

Mohammed Aurangzeb, Pakistan’s minister of finance and revenue, warned of the long-term effects of economic stagnation. He said his country this month entered into a 10-year partnership with World Bank Group to address the issues of climate change and population.

“Population means child stunting, learning poverty and girls out of school,” he says. “There’s also climate resiliency and decarbonization. Unless we address this, the medium-to-long-term growth is not going to be sustainable.”

Topics: WEF 2025

Related

Middle-East
WEF speakers explore what lies ahead for Gaza as ceasefire takes hold
Business & Economy
WEF panel explores ways to drive economic growth in uncertain times  

UAE’s economy minister says Middle East desires ‘more peace’ as US President Trump takes charge

Updated 22 January 2025
Mustafa Abu Sneineh
Follow

UAE’s economy minister says Middle East desires ‘more peace’ as US President Trump takes charge

  • Abdulla bin Touq Al-Marri speaks of need to strengthen historic ties with US
  • GCC region has experienced significant economic growth over past 50 years
  • Emirati minister spoke on panel addressing geopolitical, environmental issues
  • Minister shares hopes of Dubai becoming ‘20-minute commute’ city
Updated 22 January 2025
Mustafa Abu Sneineh

DAVOS: Arab Gulf countries want to strengthen their historic ties with the US under the new administration of President Donald Trump as the Middle East urgently needs peace and stability, according to the UAE’s Minister of Economy Abdulla bin Touq Al-Marri.

The Emirati minister spoke at the World Economic Forum in Davos on Tuesday and said that the UAE was the US’ No. 1 commerce partner within the Gulf Cooperation Council, with a bilateral trade of $40 billion annually.

He added that the relationship between the UAE and the US was an example of the strategic ties that Washington had forged with other GCC countries, such as Oman and Bahrain.

Al-Marri said the GCC region had experienced significant economic growth over the past 50 years. However, the Middle East continued to be a volatile region, riddled with political and armed conflicts.

Al-Marri said: “Now, what do we want in the region? We want more peace and we want more stability, and we want more growth for the region.”

He added that the UAE viewed its relationship with the US from a macro perspective and wished to continue on a strong and steady path during the Trump administration.

The Emirati minister was speaking on a panel called “Hard Power: Wake-up Call for Companies,” which addressed geopolitical and environmental issues related to corporations and investments.

Other panelists included Ukraine’s Deputy Prime Minister Yulia Svyrydenko; Nader Mousavizadeh, the CEO of Macro Advisory Partners; and Nir Bar Dea, the CEO of Bridgewater Associates.

Svyrydenko said that Ukraine faced a challenge in convincing investors and corporations to conduct business in a country locked in a conflict with Russia.

The deputy premier said that Ukrainian officials had done their homework to create a secure environment for investments in Ukraine, but that Kyiv was finding it challenging to meet the safety expectations of potential investors.

Svyrydenko said: “What kind of security guarantee do (investors) need? Do you need an anti-missile system in the industrial belts? Or do you need troops, or do you need NATO? It’s time for business to be more vocal about this and help us (answer) this issue.”

Ukraine's Deputy Prime Minister, Yulia Svyrydenko, said that Kyiv was finding it challenging to meet the safety expectations of potential investors (AFP)

Al-Marri said the UAE was “supportive” of the government of Ukraine when asked if Russian nationals residing in the UAE could return home if Trump helps to end the conflict in Eastern Europe.

There are no officially published figures regarding the number of Russian residents in the UAE although at least 1 million Russians visit the country annually as tourists.

Despite the potential for a tariff war between the US and China, Al-Marri stressed that the annual bilateral trade volume between Beijing and Abu Dhabi stood at $80 billion annually.

He said: “You can’t say ‘I need the world without China,’ and you can’t have the world without China; let’s be clear on that. You need China in this kind of trade domain.”

Al-Marri said that the UAE had “always built a bridge, always designed a supply chain” between regions.

He added: “We are ready for the world. We are very open, and we need corporations as well to think about the UAE as a place (for business and trade).”

He said that the UAE’s strategic location between East and West was ideal for companies connecting with various markets.

He added: “So, if you open a shop in Dubai or Abu Dhabi, you are operating the whole world.”

The minister shared his hopes of Dubai becoming a “20-minute commute” city, as its population is projected to reach 4 million next year.

Topics: WEF 2025 UAE Ukraine China Trump Returns

Related

World
Zelensky urges ‘united’ European defense policy at Davos
World
‘No winners in a trade war’: Chinese vice premier tells Davos

Saudi Arabia raises $990m in sukuk issuances for January

Updated 21 January 2025
Nirmal Narayanan
Follow

Saudi Arabia raises $990m in sukuk issuances for January

Updated 21 January 2025
Nirmal Narayanan

RIYADH: Saudi Arabia’s National Debt Management Center has completed its riyal-denominated sukuk issuance for January, raising SR3.72 billion ($990 million).

In December 2024, the Kingdom raised SR11.59 billion through sukuk, while the amounts in November and October were SR3.41 billion and SR7.83 billion, respectively. Sukuk are Shariah-compliant debt instruments that provide investors with partial ownership of the issuer’s assets until maturity.

According to the NDMC, the January sukuk issuance was divided into four tranches. The first tranche, valued at SR1.25 billion, is set to mature in 2029. The second tranche, sized at SR1.40 billion, will mature in 2032, while the third tranche, worth SR1.03 billion, will mature in 2036. The fourth and final tranche was valued at SR28 million and will mature in 2039.

The consistent issuance of these Islamic bonds is in line with expectations outlined in a recent report by S&P Global, which projected that global sukuk issuance could reach between $190 billion and $200 billion in 2025.

The growth is largely expected to come from markets such as Saudi Arabia and Indonesia. S&P Global also reported that global sukuk issuances amounted to $193.4 billion in 2024, a slight dip from $197.8 billion in 2023.

Adding further optimism to the market, a report from Fitch Ratings released on Jan. 21 highlighted the expansion of the environmental, social, and governance sukuk market.

Fitch expects that outstanding global issuance of ESG sukuk will surpass $50 billion by 2025, with Saudi Arabia expected to play a significant role in this growth.

Meanwhile, a December analysis by Kamco Invest projected that Saudi Arabia would face the largest share of bond maturities in the Gulf Cooperation Council region between 2025 and 2029, with an estimated total of $168 billion.

Topics: NDMC Sukuk Islamic bonds Debt market

Latest updates

China’s ADM Group announces $250 investment to set up EV manufacturing plant in Pakistan
Mittens the cat becomes an accidental frequent flyer after getting mistakenly left on a plane
Syria’s southern rebels loom large as the country’s new rulers try to form a national army
Hamas’ tight grip on Gaza complicates plan for lasting peace
Turkiye detains nine people over ski resort hotel fire that killed 76

Search form

Print Edition
Read pdf version Subscribe now
© 2025 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.