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Saudi startups take lead in MENA funding space

MAGNiTT’s report show that Saudi startups raised $400 million in venture debt last year, a 602 percent growth compared to $57 million in 2022. (SPA)
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Updated 01 October 2024
Nour El-Shaeri
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Saudi startups take lead in MENA funding space

  • Sector garners over 53 percent of MENA venture debt financing in 2023
Updated 01 October 2024
Nour El-Shaeri

CAIRO: Saudi Arabia’s startup ecosystem has affirmed its leading position in the funding space, capturing over 53 percent of the region’s venture debt financing in 2023, according to MAGNiTT’s latest report.

The venture data platform revealed that Saudi startups raised a total of $400 million in venture debt last year, a 602 percent growth compared to $57 million in 2022.

Venture debt is a type of financing for early-stage companies that complements equity funding. It includes growth capital for expansion, equipment financing for asset acquisition, and accounts receivable financing for managing cash flow.

The Middle East and North Africa region saw a total of $757 million in venture debt financing in 2023, a 262 percent year-on-year growth.

The UAE followed Saudi Arabia with a total of $353 million in financing in 2023, a 222 percent yearly increase. Egypt came in third with $4 million, an 86 percent annual drop.

In terms of deal count, the Emirates leads the region with six transactions, indicating a 25 percent yearly decrease; Saudi Arabia with four, a 100 percent annual increase, and Egypt with two and a 75 percent year-on-year drop.

Fintech emerged once again as the sector of choice for investors, accumulating $601 million in financing, a 325 percent yearly increase.

Buy now, pay later giants Tabby and Tamara drove the sector’s triple-digit growth, amassing $600 million of fintechs’ total financing. 




Founded in 2022 by Sean Trevaskis and Enver Sorkun, Growdash uses software solutions to boost restaurants’ marketing and operational efforts. (Supplied)

This is mainly due to the subsector’s capital-intensive nature and the growing demand for consumer credit financing tools.

Transport and logistics came in second with $150 million in venture debt, a 162 percent YoY increase, and e-commerce with $3 million, a 57 percent drop.

The leading investors by capital deployed were mainly foreign, with the top three from the US, namely, Goldman Sachs, Partners for Growth, and Atalaya, followed by CoVentures from South Africa and Shorooq Partners from the UAE.

Agritech startup iyris closes $16m series A round

Riyadh and Dubai-based agritech startup iyris, formerly known as RedSea, closed a $16 million series A funding round led by US-based Ecosystem Integrity Fund with support from Global Ventures, Dubai Future District Fund and Kanoo Ventures as well as Globivest, and Bonaventure Capital.

Founded in 2018 by Ryan Lefers, Mark Tester, and Derya Baran, iyris offers advanced commercial farming solutions for low to mid-tech farmers in hot climates worldwide.

Proceeds will enhance sales coverage and bolster iyris’ international sales pipeline for SecondSky greenhouse covers and nets.

Additionally, the funds will drive the development of innovative heat-blocking products and resilient plant genetics.

This investment underscores iyris’ dedication to empowering farmers to sustainably mitigate climate change impacts, address food security concerns, and achieve key UN Sustainable Development Goals.

BIM Ventures and SBI Holdings launch $100m joint investment fund

Saudi Arabia-based VC studio BIM Ventures has partnered with Japan’s SBI Holdings to launch a $100 million joint investment fund aimed at supporting Saudi startups.

The fund will provide startups with funding, expert guidance, and mentoring throughout their establishment and growth phases.

The memorandum of understanding for the fund was signed during the Saudi-Japan Vision 2030 Business Forum, under the auspices of the Ministry of Investment of Saudi Arabia.

UAE’s Growdash closes $1.8m seed round

Dubai-based foodtech software as a service solution Growdash closed $1.8 million in a seed funding round led by Oryx Fund and Oraseya Capital.

Founded in 2022 by Sean Trevaskis and Enver Sorkun, the company uses software solutions to boost restaurants’ marketing and operational efforts.

UAE foodtech startup GrubTech secures $15m in series B funding

UAE-based foodtech startup GrubTech has raised $15 million in its series B round, an extension of series A led by Jahez and including participation from Addition and Hambro Perks Oryx Fund.

Founded in 2019 by Mohamed Al-Fayed, Omar Rifai, and Mohamed Hamedi, GrubTech is a software integration and unified commerce platform that provides restaurants and cloud kitchens with software solutions to streamline operations.

TVM Capital Healthcare closes $250m Afiyah Fund

UAE-based healthcare private equity firm TVM Capital Healthcare has closed a $250 million Afiyah Fund LP.

The fund was led by JADA, a Public Investment Fund company, along with a group of Saudi, Gulf, and European investors.

The Afiyah Fund aims to support domestic and international health tech startups entering the market, with a focus on the key medical priorities of Saudi Vision 2030.

TVM Capital plans to mobilize $400 to $500 million in the Saudi healthcare sector, with anticipated co-investment offers from its LP base.

Proptech startup Holo secures pre-series A funding

UAE-based proptech startup Holo has raised an undisclosed amount in a pre-Series A funding round led by Dubai Future District Fund and Oryx Fund, with participation from Aditum Investment Management Limited.

Launched in 2020 by Michael Hunter and Arran Summerhill, Holo offers digital mortgage services that simplify the process of owning a home by allowing buyers and homeowners to explore refinancing options.

Holo plans to use the new capital to strengthen its market position in the UAE, grow its team, and expand its reach across the Gulf region, with an immediate focus on Saudi Arabia.

In February 2023, Holo closed a seven-figure seed round.

Shorooq Partners announces first close of $100m credit fund

UAE-based alternative investment manager Shorooq Partners has announced the first close of its $100 million second private credit fund.

The fund was established in collaboration with Korea’s IMM Investment Global, which joined as a minority partner.

The fund will assist MENA-based startups with an average ticket size of $10 million in sectors such as manufacturing, industrials, financing, and software services.

Founded in 2017 by Mahmoud Adi, Shane Shin, and Kunal Savjani, Shorooq Partners is an alternative investment manager across MENA.

Its first credit fund, now fully deployed, has invested in companies like Pure Harvest and Tamara.

Topics: startups Saudi MAGNiTT funding Investment

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Saudi Arabia proposes new investment product to boost Nomu listings

Updated 08 April 2025
Nour El-Shaeri
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Saudi Arabia proposes new investment product to boost Nomu listings

  • New SPAC framework aims to enhance private sector access to public markets
Updated 08 April 2025
Nour El-Shaeri

RIYADH: Saudi Arabia is exploring the introduction of a new investment product in the parallel market, Nomu, to foster private sector listings through special purpose acquisition companies.

The Capital Markets Authority has launched a public consultation on the proposed regulatory framework for SPACs, inviting feedback as part of its efforts to expand investment opportunities and drive market growth.

This initiative seeks to address the financing needs of the economy while diversifying investment products and enhancing the depth of the capital market.

Under the proposal, SPACs would be formed as joint stock companies in accordance with the provisions of the Companies Law.

Their main objective would be to acquire or merge with Saudi companies that are not yet listed, in alignment with the Rules on the Offer of Securities and Continuing Obligations.

In February, Fahad bin Hamdan, assistant deputy for financing and investment at the CMA, announced the authority’s plans to introduce SPACs as part of its broader strategy to streamline the listing process within the Kingdom’s capital market.

Speaking at the Capital Markets Forum in Riyadh, Hamdan emphasized the CMA’s efforts to enhance market accessibility and provide alternative pathways for companies to go public.

In addition to SPACs, the CMA is also working to refine the framework for direct listings, with plans to allow such offerings on the main market, Hamdan revealed.

The authority’s goal is to expand the investor base in Nomu, thereby boosting supply and increasing market participation.

These initiatives are part of ongoing regulatory reforms aimed at attracting both local and international investors, including collaboration with the Zakat, Tax, and Customs Authority to eliminate withholding tax on all listed securities.

The authority has stated that SPACs could have a positive impact on liquidity levels by increasing the number of listings.

The authority has stated that SPACs could have a positive impact on liquidity levels by increasing the number of listings.

In a media release, the CMA emphasized that the proposed draft is designed to encourage private sector companies to list on the parallel market through SPACs. This, the CMA noted, would help meet the financing needs of the economy while supporting the growth and expansion of the capital market by introducing a broader range of investment products.

The CMA’s new public consultation on the proposed regulatory framework for SPACs outlines three key components.

First, it specifies the terms for acquisitions or mergers between SPACs and target companies. Sponsors, or any affiliated investment funds, would be prohibited from holding, directly or indirectly, shares or interests in the target company. Additionally, the target company must ensure that at least 80 percent of the SPAC’s funds are held in an escrow account. Furthermore, SPAC shareholders must own at least 30 percent of the target company’s shares upon the completion of the transaction.

Second, SPACs must be structured as joint stock companies and offer redeemable shares at the discretion of shareholders. To ensure sufficient market liquidity, the minimum post-offering capital requirement is set at SR100 million ($26.6 million).

Third, SPACs would be required to complete an acquisition or merger with the target company within 24 months of their listing on Nomu. This deadline may be extended by up to 12 months with approval from the extraordinary general assembly.

The draft framework also outlines specific requirements for sponsors, who must be licensed capital market institutions authorized to manage investments and operate funds.

A sponsor’s ownership stake must remain between 5 percent and 20 percent of the SPAC’s capital throughout its lifecycle, with restrictions on the disposal of their shares during designated periods.

Importantly, the sponsor and its affiliates would not be permitted to vote on the extension resolution, and the CMA must be notified of any such vote.

Additionally, qualified investors would have the option to redeem their shares for a cash amount from the escrow account under certain conditions, including if they vote against a proposed acquisition or merger that is ultimately completed.

If approved, SPACs would be listed on Nomu under the same rules that apply to other publicly listed companies. At least 90 percent of the capital raised in the offering must be held in a local bank escrow account, with access restricted to specific conditions defined in the proposed regulations.

The CMA has invited the public to participate in the consultation by submitting feedback through its official platform.

In 2024, Nomu recorded 28 initial public offerings and three direct listings, raising a total of approximately SR1.1 billion.

Topics: NOMU SPACs Capital Market Authority listings

Closing Bell: Tadawul climbs 109 points as Gulf bourses rebound 

Updated 08 April 2025
Nirmal Narayanan 
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Closing Bell: Tadawul climbs 109 points as Gulf bourses rebound 

Updated 08 April 2025
Nirmal Narayanan 

RIYADH: Saudi Arabia’s main equities index rose for a second straight session on Tuesday, tracking a broader rebound across Gulf markets after recent declines. 

The Tadawul All Share Index gained 108.74 points, or 0.97 percent, to close at 11,302.76, supported by gains in industrials and consumer stocks. 

Trading turnover reached SR7.97 billion ($2.13 billion), with advancers outnumbering decliners 150 to 91. 

Zamil Industrial Investment Co. was the best-performing stock on the main market, surging 9.92 percent to SR36. 

Saudi Paper Manufacturing Co. followed with a gain of 8.15 percent to SR58.40, while Aldrees Petroleum and Transport Services Co. climbed 6.82 percent to SR141. 

Shares of Americana Restaurants International Co. declined 5 percent to SR1.90, making it one of the worst performers of the day. 

The Kingdom’s parallel market Nomu shed 176.81 points to close at 28,473.47, while the MSCI Tadawul Index edged up 0.83 percent to 1,432.48. 

On the announcements front, United Electronics Co., also known as Extra, reported a first-quarter net profit of SR103.36 million, up 10.12 percent from the same period last year. 

The company’s revenue rose 10.03 percent year-on-year to SR10.03 billion. However, net profit dropped 41.81 percent compared to the fourth quarter of 2024. 

Extra’s share price edged up 1 percent to SR90.90. 

United International Holding Co. posted a net profit of SR57.79 million in the first quarter, marking a 52.35 percent increase year on year. 

Its shares fell 1.61 percent to close at SR158.40. 

Arabian Shield Cooperative Insurance Co. announced that Fitch Ratings has affirmed its long-term issuer default rating at A- with a stable outlook. The rating reflects the company’s strong capitalization and overall financial health, positioning it for future growth. 

Shares of the insurance firm rose 0.59 percent to SR17.10. 

Regional markets 

Gulf markets rebounded on Tuesday after two sessions of declines. 

Abu Dhabi Securities Exchange rose 0.44 percent to close at 8,989.10, while Dubai Financial Market jumped 1.90 percent, adding 91.32 points to end at 4,890.33. 

Qatar Stock Exchange gained 1.34 percent to reach 9,896.65. Boursa Kuwait advanced 3.08 percent to close at 8,302.45.

Topics: Closing Bell Saudi Stock Exchange (Tadawul) Tadawul All Share Index (TASI)

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Lebanon judge paves way for indictment of ex-central bank chief Salameh

Updated 08 April 2025
Reuters
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Lebanon judge paves way for indictment of ex-central bank chief Salameh

Updated 08 April 2025
Reuters

BEIRUT: A Lebanese judge published a new court decision in the charges against former central bank chief Riad Salameh for embezzlement of public funds, according to a copy of the decision seen by Reuters on Tuesday, paving the way for an indictment.

Judge Bilal Halawi published a “presumptive decision” concluding that Salameh, who served as central bank governor for 30 years before his term ended in disgrace in July 2023, had engaged in “illicit enrichment” by knowingly transferring funds from the central bank to private accounts.

Salameh’s media office said the decision was the result of a “hastily prepared file” and was “marred by numerous and blatant legal flaws.” The ex-governor, who was detained in September and remains in custody, has denied all wrongdoing. He did not respond to a request for comment from Reuters on Tuesday.

After taking the helm of the central bank following a devastating 15-year civil war, Salameh built a reputation as a competent steward of the financial system and was once seen as a possible president.

But his legacy was tainted by the collapse of Lebanon’s financial system in 2019, as well as Lebanese and European charges that he and his brother Raja embezzled public funds over more than a decade. The brothers deny the accusations.

Salameh was arrested in September over alleged financial crimes linked to a brokerage company known as Optimum Invest, a Lebanese firm that offers income brokerage services.

Optimum Invest said at the time that a financial audit completed in late 2023 had found “no evidence of wrongdoing or illegality” in the company’s dealings with the central bank.

Thursday’s decision paves the way for an indictment in the case, according to a judicial source with direct knowledge of the court proceedings. 

Topics: lebanon economy Riad Salameh

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Saudi Arabia boosts industrial output with 103 new factories

Updated 08 April 2025
MOHAMMED AL-KINANI
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Saudi Arabia boosts industrial output with 103 new factories

Updated 08 April 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s Ministry of Industry and Mineral Resources has announced the launch of 103 new factories in January, marking a significant milestone for the Kingdom’s industrial sector.

These factories attracted a total investment of SR900 million ($240 million), generating approximately 1,504 new jobs and underscoring the continued growth of the country’s industrial landscape.

The announcement, made on April 8, highlights the increasing number of establishments reaching full operational capacity.

In January, the ministry also issued 63 new industrial licenses, according to the National Industrial and Mining Information Center, which operates under the ministry.

As part of its Vision 2030 initiative, Saudi Arabia is accelerating efforts to diversify its economy, with the industrial and manufacturing sectors playing a key role in reducing the country’s reliance on oil. Programs like the National Industrial Development and Logistics Program are central to the Kingdom’s strategy, aiming to establish Saudi Arabia as a leading regional hub for advanced manufacturing, with a focus on petrochemicals, mining, and renewable energy.

Saudi Arabia is set to transform its industrial landscape with plans to increase the number of factories to 36,000 by 2035, including 4,000 fully automated facilities.

This ambitious goal is part of the Kingdom’s strategy to foster a dynamic, innovation-driven industrial sector.

In January, the country’s industrial production index saw a 1.3 percent year-on-year increase, driven by continued growth in manufacturing and waste management, according to the General Authority for Statistics. The index remained stable month-on-month at 103.9, maintaining the same level as in December 2024.

The manufacturing sub-index rose by 4 percent annually, supported by a 4.3 percent increase in the production of coke and refined petroleum products, along with a 4.2 percent rise in chemicals and chemical products.

The report, which tracks key industrial indicators, showed that investments related to new industrial licenses amounted to SR1.197 billion, with these projects expected to generate over 2,500 new job opportunities across the Kingdom.

In 2023, the number of industrial units in Saudi Arabia surged by 10 percent year-on-year, reaching 11,549, according to the Ministry of Industry and Mineral Resources. Jarrah Al-Jarrah, a spokesman for the ministry, also revealed that the new industrial organizations were established with an investment totaling SR1.54 trillion.

Topics: SaudiVision2030

Saudi Arabia rolls out $533m water, sewerage projects as part of Vision 2030

Updated 08 April 2025
Nadin Hassan
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Saudi Arabia rolls out $533m water, sewerage projects as part of Vision 2030

Updated 08 April 2025
Nadin Hassan

RIYADH: Saudi Arabia has launched water and sewerage projects worth $533 million in the Riyadh region as part of its efforts to expand public utility services and meet the growing demand.

According to a press release from the National Water Co., work has begun on 30 projects covering nearly 2,000 km across Riyadh city and its surrounding governorates. The goal is to expand service coverage and enhance system efficiency.

This initiative aligns with the government’s Vision 2030 plan, which aims to boost infrastructure investment and improve the quality of life as population and economic activity continue to grow.

Of the 30 projects, 16, valued at over SR1 billion ($266 million), are focused on expanding water services.

These include the construction of 18 reservoirs with a total storage capacity of 85,000 cubic meters, the installation of more than 1,192 kilometers of new pipelines, and the development of pumping stations with a daily capacity of 247,000 cubic meters.

These include parts of the Al-Taawun, Al-Janadriyah, Laban, Al-Diriyah, and Dyrab neighborhoods in Riyadh. Other affected areas include Al-Quway’iyah, Afif, and Al-Dawadmi. 

They also cover parts of Al-Muzahimiyah, Al-Rayn, and Al-Kharj, as well as Hotat Bani Tamim, Al-Hariq, and Al-Majma’ah. Additionally, the list includes Al-Zulfi, Thadiq, and the Al-Uyaynah and Al-Jubayla centers. 

The remaining 14 initiatives target sewerage infrastructure in areas such as Al-Munsiyah and Al-Zulfi, adding 763 km of pipelines and lift stations with a total daily capacity of 117,000 cubic meters. These projects are valued at SR902 million. 

The latest project package follows two significant announcements from last year—46 projects worth SR1.6 billion in May and 20 projects costing nearly SR1 billion in August—highlighting the ongoing investment in the sector.

These initiatives, according to the company, are aimed at strengthening water distribution, addressing environmental challenges, enhancing sustainability, and supporting national objectives under Vision 2030.

In March, the Saudi Water Authority and National Water Co. signed an agreement to build and operate 16 decentralized purification plants across the Kingdom.

This partnership also seeks to improve the availability of drinking water and advance sustainable groundwater desalination technologies.

The plants are expected to produce over 18,000 cubic meters of water daily, according to the Saudi Press Agency.

Currently, Saudi Arabia treats and reuses 21 percent of its wastewater, with plans to increase this to 70 percent by 2030. The new facilities align with this goal, contributing to environmental sustainability and enhancing service delivery.

Designed to serve over 80,000 people, the purification plants will be supported by integrated water treatment and distribution systems, aimed at improving supply reliability in resource-limited regions. This represents a crucial step toward bolstering essential services.

Given the Kingdom’s ongoing challenges with water scarcity due to its arid climate and limited natural resources, these initiatives are key to fostering innovative solutions in water production, management, and distribution.

Topics: National Water Co. (NWC) SaudiVision 2030

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