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Saudi venture capital sector expanding exponentially

Global venture capital firms are capitalizing on the KSA’s expansive strategy, as evidenced by SVC’s $30 million investment in US-based General Atlantic. (SPA)
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Updated 01 October 2024
Nour El-Shaeri 
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Saudi venture capital sector expanding exponentially

  • Global venture capital firms capitalize on Kingdom’s expansive strategy
Updated 01 October 2024
Nour El-Shaeri 

CAIRO: Saudi Arabia’s venture capital landscape continues to grow with its reverberations reaching far continents. 

Global venture capital firms are capitalizing on the Kingdom’s expansive strategy, as evidenced by the state-owned Saudi Venture Capital Co.’s $30 million investment in a US-based investment firm. 

SVC has pledged this significant investment in a private equity fund managed by the renowned US-based investment firm General Atlantic.  

“The investment in the private equity fund by General Atlantic is part of SVC’s Investment in Funds Programme and an implementation of its strategy related to attracting top global fund managers to invest in Saudi-based companies as well as stimulating investment for later stages,” Nabeel Koshak, CEO and Board Member at SVC, commented. 

Established in 1980, General Atlantic boasts a formidable reputation as a global growth equity investor, overseeing a vast portfolio of $84 billion in assets under management.  




Nabeel Koshak, CEO and board member at SVC. (Supplied)

The focus of this venture will be on investing in high-growth, tech-enabled companies within Saudi Arabia.  

The initiative aims to bolster innovation and entrepreneurship in the region, particularly in key sectors such as consumer goods, financial services, healthcare, life sciences, and technology. 

“We are very proud to partner with SVC and broaden our commitment to Saudi Arabia. Vision 2030 sets the stage for a period of dynamic growth and innovation in Saudi Arabia, which will create attractive investment opportunities for our global investors. SVC is a highly strategic investor who will deepen our expertise in this important region,” Bill Ford, Chairman and CEO of General Atlantic, said. 

Saudi Arabia’s WheeKeep secures $8m series A funding 

Saudi Arabian logistics startup WheeKeep raised $8 million in a series A round led by Fintech Collective, with participation from local and international investors.  

Founded in 2020 by Sultan Al-Olayan, Amr Al-Marzouki, and Youssuf Fayez, WheeKeep provides mobile self-storage units for individuals and businesses.  

The new capital will aim to fuel WheeKeep’s expansion plans in Saudi Arabia and beyond. 

Saudi Qsalary partners with Itqan Capital to launch $80m fund  

Saudi HRtech company Qsalary has partnered with Itqan Capital to launch an $80 million investment fund.  

Founded in 2022 by Mohammed Badwi and Amr Abu Shady, Qsalary offers a digital platform for accelerated salary payments.  

The fund aims to provide investment opportunities for investors seeking financial growth. 

Qatari investors commit $20m to MENA Fund I 

Qatari investors are boosting the regional startup landscape with a $20 million commitment to the newly announced MENA Fund I. 

Golden Gate Ventures, a venture capital fund founded by Silicon Valley natives, announced its first $100 million MENA fund, with $20 million in commitments from some of Qatar’s most prominent families.  

The anchor investor is the multi-faceted Al Khor Holding, a company with 60 years of heritage. Other notable investors include the Al Attiya Group, widely recognized for its support in developing local businesses, and Sheikh Jassim Bin Jabor Al Thani. 

The announcement of the first close of its $100 million MENA Fund I, backed by the pillars of Qatar’s private business community, represents a major step forward in Golden Gate Ventures’ ambitions to drive innovation and entrepreneurship in the MENA region.  

The fund combines the aggregate regional influence of its investors with Golden Gate Ventures’ extensive experience in startup ecosystem development across Silicon Valley and Asia.  

MENA Fund I is the first international venture capital fund to be established and managed within Qatar. Michael Lints, Partner at Golden Gate Ventures, has moved to Qatar to deepen the firm’s commitment to the MENA region.   

The fund will focus on powering startups in key sectors such as alternative energy, green technology, B2B artificial intelligence, and energy-related deep tech.  

Other strategic sectors that MENA Fund I will cover include fintech, healthtech, and edtech, furthering Qatar’s economic diversification agenda. 

Glint completes first close of its second venture fund at $3 million  

Egypt-based investment firm Glint completed the first close of its second venture fund at $3 million, supported by Wadi Degla Group. 

Glint Fund II, led by Tarek Aboualam and Youssef Helmy Habib, aims to support Egyptian entrepreneurs with early-stage investments ranging from $250,000 to $500,000. 

“Glint’s second fund represents an important step to further develop our ecosystem designed to support Egyptian tech-based startups looking to penetrate the regional and international markets,” said Aboualam. 

UAE’s Property Finder raises $90m debt round to buyout lead investor  

Dubai-based Property Finder secured $90 million in debt from Francisco Partners to finance the buyout of its first institutional investor, BECO Capital.  

The online real estate platform bought back BECO Capital’s stake, which had also invested in ride-hailing app Careem and logistics startup Fetchr.  

Property Finder said the deal allows BECO to exit “with a strong return on its investment,” without providing further details. 

“We’ve seen tremendous growth in the real estate market across the entire UAE, not just Dubai,” said Michael Lahyani, CEO and founder of Property Finder. Valued at about $1 billion, the company joins the growing list of Middle Eastern unicorns. 

UAE’s Lune raises $1.5m in seed round  

UAE-based data analysis company Lune has raised $1.5 million in a seed round from Dubai Future District Fund, Plus Venture Capital, Reach International, and Judah Ventures, alongside other family offices and angel investors.  

Founded in 2020 by Helal Tariq and Alexandre Soued, Lune enables financial institutions to turn customer transaction data into valuable insights.  

The funding will support Lune’s regional expansion and product development. 

Egypt’s MNZL raises $3.5m in seed funding  

Egyptian fintech MNZL raised $3.5 million in a Seed round led by P1 Ventures, Localglobe, and Ingressive Capital, with additional support from 500 Startups, Flat6Labs, First Circle Capital, ENZA Capital, Beenok, and other angel investors.  

Founded in 2023 by Sameh Saleh, Ahmed El-Dessouky, and Bassem El-Shaer, MNZL allows users to convert assets like homes and cars into liquidity.  

“By enabling Egyptians to safely harness their own assets—homes or cars—for financial needs, We at MNZL are going beyond a mere adjustment; it’s a complete revolution in credit access. This shift not only empowers families by providing financial leverage but also contributes to broader economic prosperity in the region,” Saleh said. 

The company aims to utilize the new capital to enhance MNZL’s technology and scale operations in Egypt. 
 

Topics: startups Saudi Investment VENTURE CAPITAL

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

Updated 22 January 2025
Mustafa Abu Sneineh
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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

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Saudi Arabia raises $990m in sukuk issuances for January

Updated 21 January 2025
Nirmal Narayanan
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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

ESG sukuk set to cross $50bn in 2025: Fitch Ratings

Updated 21 January 2025
Nirmal Narayanan
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ESG sukuk set to cross $50bn in 2025: Fitch Ratings

Updated 21 January 2025
Nirmal Narayanan

RIYADH: The global issuance of environmental, social, and governance sukuk is expected to surpass $50 billion outstanding in 2025, driven by Islamic finance markets in countries including Saudi Arabia, according to an analysis. 

In its latest report, Fitch Ratings said the global value of Shariah-compliant bonds focused on ESG expanded by 23 percent year on year to $45.2 billion outstanding in 2024. This growth outpaced global ESG bonds, which saw a 16 percent increase. The analysis added that countries such as the UAE, Indonesia, and Malaysia would play a key role in driving the growth of ESG sukuk.

These bonds are investments in renewable energy and other environmental assets and are considered key debt instruments as the world moves toward a greener future. 

“The ESG sukuk market has a robust credit profile, with nearly all Fitch-rated ESG sukuk being investment grade,” said Bashar Al Natoor, global head of Islamic Finance at Fitch Ratings. 

He added: “Sukuk is now a key ESG funding tool in emerging markets, with growth expected amidst sustainability initiatives, funding needs, and a favorable funding environment. However, issuances remain concentrated in a handful of countries.”

ESG sukuk expansion also outpaced global sukuk growth, which witnessed a 10 percent increase in 2024. 

The US-based credit rating agency added that green and sustainable sukuk could help issuers opportunistically tap demand from ESG-sensitive international investors from the US, Europe, and Asia, as well as sukuk-focused Islamic investors from the Gulf Cooperation Council region. 

Several factors, including funding diversification goals, enabling regulations, sustainability initiatives, and net-zero targets pursued by sovereigns, banks, and corporations, as well as government-related entities, could boost the issuance of this debt product in 2025.

The analysis revealed that ESG sukuk is also likely to cross 15 percent of global dollar sukuk issuance in the medium term. 

The report also highlighted the impact of the adoption of Accounting and Auditing Organization for Islamic Financial Institutions’ Sharia Standard 62. 

“Risks facing ESG sukuk market growth include Shariah-compliance complexities, such as linked to AAOIFI Sharia Standard No. 62, weakening sustainability drives, geopolitical risks, and oil volatilities,” said Fitch Ratings. 

This AAOIFI guideline, which was published as an exposure draft in late 2023, aims to standardize various aspects of the sukuk market, including asset backing, ownership transfer, and trading procedures.

Earlier this month, S&P Global said that global sukuk issuance is projected to hit between $190 billion and $200 billion in 2025, driven by increased activity in key markets such as the Kingdom and Indonesia. 

In December, a report by Kamco Invest projected that Saudi Arabia would face the largest share of bond maturities in the GCC region from 2025 to 2029, reaching an estimated $168 billion.

Topics: Sukuk ESG Fitch Ratings

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WEF panel explores ways to drive economic growth in uncertain times  

Updated 21 January 2025
Zaira Lakhpatwala
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WEF panel explores ways to drive economic growth in uncertain times  

Updated 21 January 2025
Zaira Lakhpatwala

DUBAI: The World Bank Group’s forecast suggests that between 2024 and 2026, countries that collectively account for more than 80 percent of the world’s population and global GDP will still be growing more slowly than they did in the decade before COVID-19.

Moreover, new trade barriers introduced have nearly tripled since 2019, according to the UN.

In this environment, how do global economies find growth? That was the question being explored by a World Economic Forum panel “Finding Growth in Uncertain Times” in Davos.

Moderated by WEF President and CEO Borge Brende, the panel featured Ngozi Okonjo-Iweala, director-general of the World Trade Organization; David Rubenstein, co-founder and co-chairman of global investment firm Carlyle; Marcus Wallenberg, chairman of Swedish bank Skandinaviska Enskilda Banken and Khaldoon Khalifa Al-Mubarak, group CEO, Mubadala Investment Company.

Okonjo-Iweala laid out four requirements for growth: maintaining or restoring macroeconomic stability and good management including fiscal consolidation; openness and predictability of global markets, which requires strengthening resilience in economies; “re-globalization,” which means decentralizing and diversifying supply chains; and lastly, adopting technology and AI, which will increase productivity and lower trade costs in a way that allows for double-digit growth in trade from now until 2040.

There are many questions about US policy with President Donald Trump stepping into office on Monday. Rubenstein addressed some of these questions and concerns saying that in just a day, Trump has issued several executive orders.

“I think you will see him (Trump) doing a lot of fairly robust things that might not have been anticipated before,” he said.

He went on to explain some of the new administration’s policies, such as tax cuts, aimed at spurring growth; imposing tariffs as a negotiation tool for greater trade cooperation; and increasing production of natural gas and oil, which is already at its highest in the country.

“The biggest impediments to growth,” not just for the US but globally, are the wars in the Middle East, Rubenstein said.

He added: “The US’s problems are not the biggest problems. The biggest challenge for economic growth around the world is the Global South, which, because of the challenges of the last 15 years went further behind the developed markets than desired.”

The US is feeling “fairly bullish” about the economy for the near future, and so, it has to ensure it is helping out other countries in terms of wars and access to technology, Rubenstein added.

Europe, on the other hand, is lagging behind with weak growth forecasts. This is partly due to Europe not being as competitive, according to Wallenberg.

He said: “Over the years, Europe has tended to perhaps not understand our competitive situation and the strategic position that we find ourselves (in) with a very strong United States and a very strong China, and therefore our competitiveness has been challenged.”

Wallenberg pointed out that Europe is a rather larger market, which means there is potential for scale. But first, it needs to revive its confidence as well as that of its consumers along with “a singular capital market that is unified” and “a number of institutions that can provide more risk capital,” among other things.

“We have all the ingredients to make it happen,” he said. “Now, we just have to stand up and get it done.”

Turning to the Middle East, Mubadala’s Al-Mubarak underlined the importance of sovereign wealth funds.

Because they are “highly capitalized” and have a “high liquidity position” as well as the ability to think and invest long term, sovereign funds are becoming more and more important to support global growth, he said.

He explained why the UAE is a good example of a growth story. For example, its capital Abu Dhabi was rated the safest city in the world for the seventh year running; it ranked fifth globally in AI competitiveness according to a Stanford study; and it recorded the largest inflow of high-net-worth individuals globally in 2024, he said.

The UAE sets the example of “growth in this new world,” particularly “how to create growth and diversify from one sector to a multi-faceted economy,” Al-Mubarak said.

 

Topics: WEF 2025 World Economic Forum (WEF)

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Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 

Updated 21 January 2025
Nirmal Narayanan
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Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 

Updated 21 January 2025
Nirmal Narayanan

RIYADH: Saudi Arabia’s Tadawul All Share Index closed slightly lower on Tuesday, dipping 0.08 percent, or 9.91 points, to settle at 12,369.63.  

Trading turnover on the main market reached SR6.92 billion ($1.84 billion), with 133 stocks advancing and 97 declining.  

The Kingdom’s parallel market, Nomu, also shed 27 points to close at 31,317.97, while the MSCI Tadawul Index slipped 0.17 percent to 1,549.08. 

The best-performing stock on the main market was Rasan Information Technology Co., with its share price rising 9.99 percent to SR88.10. 

Other top gainers included Saudi Cable Co., which rose 9.97 percent to SR128, and Walaa Cooperative Insurance Co., up 6.24 percent to SR22.80. 

Conversely, ACWA Power Co.’s share price fell 3.49 percent to SR420. 

On the announcements front, Al Jouf Cement Co. said it has signed a SR38 million agreement with Mohammed Shahi Al-Ruwaili Contracting to export various types of cement and clinker to Syria. 

According to a statement on Tadawul, the contract will be effective from Feb. 1 to Feb. 28, 2026. 

The company noted that the agreement's financial impact will be reflected in its performance from the first quarter of 2025 through the first quarter of 2026. 

Al Jouf Cement Co.’s share price rose 1.42 percent to SR11.46. 

Scientific and Medical Equipment House Co., known as Equipment House, announced securing a SR105.07 million tender to maintain and repair medical devices and equipment in hospitals and health centers under the Riyadh First Health Cluster. 

According to a Tadawul statement, the contract covers King Salman Hospital, Al Iman Hospital, and Imam Abdulrahman Al Faisal Hospital, as well as the Convalescent Hospital, and various dental complexes. 

The company noted that the financial impact of the deal will be reflected starting in the second quarter of this year. 

Scientific and Medical Equipment House Co.’s share price edged up by 0.19 percent to SR52.20.  

Aldrees Petroleum and Transport Services Co. reported a net profit of SR338 million for 2024, marking a 20.37 percent increase compared to the previous year.

The company attributed the profit growth to a 30 percent rise in revenues driven by stronger sales in its petrol and transport segments. 

Aldrees, listed on Saudi Arabia’s main index, also announced that its shareholders recommended a cash dividend of SR1.5 per share for 2024. 

The company’s share price rose 4.20 percent to close at SR129. 

Topics: TASI MSCI NOMU shares

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