Startup Wrap — Saudi SiFi closes $10m round; MENA funding sees 413% MoM growth  

Founded in 2021 by CEO Ahmed Al-Hakbani, SiFi is a business-to-business spending management platform offering smart corporate cards, real-time insights into corporate spending, and automated expense management workflows. Supplied
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Updated 01 October 2024
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Startup Wrap — Saudi SiFi closes $10m round; MENA funding sees 413% MoM growth  

CAIRO: Saudi Arabia-based fintech Simplified Financial Solutions Co. has closed a $10 million seed round led by Sanabil Investments, a wholly owned subsidiary of the Public Investment Fund, and RAED Ventures.  

Other participants included anb seed, Rua Ventures, Byld, and KBW Ventures, along with previous investors Khwarizmi Ventures, Seedra Ventures, and Tech Invest Com. 

Founded in 2021 by Ahmed Al-Hakbani, SiFi is a business-to-business spending management platform offering smart corporate cards, real-time insights into corporate spending, and automated expense management workflows.  

Al-Hakbani, CEO of SiFi, said: “We are thrilled to have closed this significant round and gained the support of such prominent and strategic partners. This funding will enable us to further enhance our offering, deliver even greater value to our customers, and cement our position as the go-to spend management solution in Saudi Arabia,”   

He added: “Our aim is to empower stakeholders within companies to make informed decisions at the right time while providing finance teams with the tools they need to effectively enforce company spending policies. By doing so, we aim to help businesses decentralize spending while enhancing control and driving growth.”  

This funding will enable SiFi to enhance its offerings and solidify its position as the leading spend management solution in Saudi Arabia.   

“What attracted us to SiFi was three-fold: its outstanding team, compelling product offering, and the largely underserved market in Saudi Arabia, as businesses are increasingly recognizing the need for more efficient financial management tools. We look forward to supporting their next phase of growth and helping them capture the opportunity ahead,” a spokesperson for Sanabil Investments said.  

MENA startup investment surges in May 2024  

Investment in the Middle East and North Africa region saw a significant surge in May, with a total of 40 startups raising $282 million, a 413 percent increase compared to April’s $55 million.  

This growth was primarily driven by debt financing, which accounted for nearly $140 million of the total raised, according to Wamda’s monthly report.   

Despite this monthly growth, the year-on-year deal value saw a notable decline of 58 percent, dropping from $445 million reported in May 2023 across 39 deals. 

UAE’s Property Finder led the investment with a $90 million debt round, followed by Huspy and Keyper securing $37 million and $34 million, respectively, the latter with $30 million in debt financing.  

UAE-based startups received the majority of investments, amassing $189 million across 23 transactions.   

Saudi startups followed with $56 million over 10 deals, while Egyptian startups secured $24.5 million across four deals, including OneOrder’s $16 million series A round combining debt and equity. 

The proptech sector was the top-funded, raising $167.2 million over seven rounds. The fintech sector followed with $32.7 million across 12 startups. The logistics sector also saw significant funding, with $25.3 million secured by three startups.  

The agritech sector showed signs of recovery with $23 million raised in May, including $16 million for Iyris’s series A round.  

Software as a service startups also rebounded, securing $27 million across three transactions. The region’s venture capital space emphasized later-stage rounds, with $59.3 million raised by five startups at their series A stage and $44 million by four startups at their pre-series A stage. Seed stage deals topped the count with seven deals worth $11 million.   

UAE’s GrubTech was the only startup to close a series B round at $15 million, while Saudi Arabia’s SaaS startup Merit raised $12 million in a pre-series B. Up to $42 million went undisclosed regarding stage rounds, with seven startups not revealing their stages. 

Business-to-consumer startups comprised 62 percent of total funding, raising $174 million across 13 deals, while B2B startups raised nearly $100 million.     

Male founders continued to dominate, securing 89 percent of the total investments. However, there was an increase in deals involving co-founded startups by males and females, doubling to eight deals compared to last month and raising $28.6 million, while female-founded companies secured $800,000. 

The venture capital space in the MENA region witnessed significant activity in May, with several new funds launched.  

BIM Ventures and Japan’s SBI Holdings introduced a $100 million fund, UAE’s TVM Capital Healthcare launched the $250 million Afiyah Fund LP, and Riyad Capital initiated 1957 Ventures. Saudi Venture Capital committed $30 million to General Atlantic for Saudi startup investments.  

Bahrain’s Investcorp closed a $570 million Investcorp Technology Partners V fund, and Shorooq Partners along with Korea’s IMM Investment Global launched a $100 million fund. 

Singapore-based Golden Gate Ventures announced a $100 million MENA fund, and Saudi Arabia-based HRtech Qsalary partnered with Itqan Capital for an $80 million investment fund.   

In Egypt, Beltone and Microfinanza Italia launched a $2.4 million project to support the startup landscape, and the $3 million Glint Fund II was also introduced. 

Additionally, Saudi Arabia’s Kingdom Holding participated in the $6 billion Series B round of Elon Musk’s artificial intelligence startup, xAI, valuing the company at $24 billion.    

UAE-based AI startup qeen.ai secures $2.2m pre-seed funding   

UAE-based AI startup qeen.ai has successfully raised $2.2 million in a pre-seed funding round led by Wamda Capital, with participation from various international and regional investors, including 10x Founders, Aditum, Dara Holdings, Jabbar Group, Phaze Ventures, and Eureka 460.  

Founded in 2023 by Dina Al-Samhan, Ahmad Khwileh, and Morteza Ibrahimi, qeen.ai focuses on providing accessible and autonomous AI solutions tailored to e-commerce businesses.   

“We are thrilled to back qeen.ai in their mission to disrupt the e-commerce space in the MENA region,” said Fadi Ghandour, CEO of Wamda Capital and founder of logistics giant Aramex.    

He added: “We believe that qeen.ai is well poised to achieve substantial growth and success, as it fulfills a crucial market need by providing businesses with accessible AI solutions that can significantly improve their revenue, thanks to the founder team’s expertise in AI and their deep understanding of e-commerce challenges.”  

The newly acquired funds will be utilized to further the company’s mission to simplify intelligent commerce, making AI solutions more accessible and user-friendly for businesses of all sizes.   

Fintech company Elevate secures $5m in pre-series A funding   

London and Dubai-based fintech company Elevate has secured $5 million in a pre-series A funding round.    

Founded in 2021 by Khalid Keenan, Faris Keenan and Youcef Oudjidane, Elevate offers debit cards for online spending and applies standard foreign currency exchange rates when sending money domestically. The company also allows users to transfer money back to their local accounts for a fixed fee.   

Elevate aims to provide a financial solution to address common challenges faced by freelance professionals.    

The platform facilitates effortless payments from US and international employers and major freelancing platforms such as Upwork, Maqsam, PayPal, Deel, and Toptal.  

Elevate claims to have attracted over 150,000 users from Asia and North Africa. The newly raised funds will support the company’s expansion into the Middle East and Africa.  


Pakistan’s factory PMI dips in early sign of global tariff headwinds

Updated 03 May 2025
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Pakistan’s factory PMI dips in early sign of global tariff headwinds

  • New orders slumped while export orders in particular plummeted
  • Employment fell for a second month as manufacturers cut costs

KARACHI: Pakistan’s manufacturing sector growth slowed to a seven-month low in April, with the HBL Pakistan Manufacturing Purchasing Managers’ Index (PMI)easing to 51.9 from 52.7 in March, as concerns over global trade weighed, HBL said in a press release.
The latest dip in the index hints at the impact of US President Donald Trump’s trade tariffs, said Humaira Qamar, Head of Equities & Research at HBL.
“We believe that the latest PMI dips are early signs of the headwinds to the global economy from the introduction of US tariffs,” said Humaira Qamar — Head Equities & Research at HBL.
New orders slumped while export orders in particular plummeted. Employment fell for a second month as firms cut costs, said Qamar.
Qamar warned that any US stagflation would hurt Pakistan’s exports, particularly to the US which accounts for 18 percent of its total, potentially prolonging the manufacturing downturn, though lower commodity prices could provide some relief, she added.
Despite the slowdown, the PMI remains above 50, indicating expansion amid a favorable inflation outlook.
Qamar said she expects an interest rate cut on Monday due to strong deflationary pressures. But a Reuters poll suggests Pakistan’s State Bank will hold rates steady at 12 percent, following a surprise pause in its last meeting due to geopolitical tensions and inflation concerns.
Pakistan’s annual inflation rate fell to 0.3 percent in April, well below the Ministry of Finance estimate of 1.5 percent to 2 percent. The central bank forecasts average inflation to be in the range of 5.5 percent to 7.5 percent for the fiscal year ending June.
Pakistan’s largest bank, HBL, and global financial information and analytics firm S&P Global launched the index In February to track the country’s manufacturing sector.


Pakistan stocks slide on India tensions, key sectors lose up to 15% after Kashmir attack

Updated 03 May 2025
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Pakistan stocks slide on India tensions, key sectors lose up to 15% after Kashmir attack

  • Foreign investors remained net sellers in April, taking their outflows since July to $252 million
  • The market recovered some of its losses on Friday but remains volatile heading into next week

KARACHI: Pakistan’s renewed tensions with archrival India have weighed heavily on the country’s stock market, with key sectors like refineries posting losses of up to 15 percent since a gun attack killed 26 tourists in the disputed Kashmir region on April 22, according to analysts and market data on Friday.
India blamed Pakistan for the attack despite Islamabad’s denial and call for a neutral probe. The escalation, which has seen border closures, tit-for-tat diplomatic expulsions and fears of military confrontation between the nuclear-armed neighbors, has drawn international concern.
The KSE-100 Index, Pakistan’s benchmark stock gauge, fell 6 percent over six trading sessions following the attack, according to Pakistan Stock Exchange (PSX) data.
The market recovered some losses on Friday but remained volatile heading into next week.
“Pakistan’s stock market experienced heightened volatility after the Pahalgam attack,” Sana Tawfik, an economist and head of research at Arif Habib Ltd., told Arab News while referring to the attack in Indian-administered Kashmir.
Between April 22 and April 30, the index dropped 7,104 points or 6 percent, she said.
Key sectors bore the brunt of the sell-off, including refineries (-15.4 percent), transport (-15 percent), pharmaceuticals (-12.9 percent), jute (-11.6 percent) and engineering (-9.2 percent).
“This decline reflects broad investor risk aversion amid geopolitical uncertainty,” she added.
The latest flare-up with India added to pressure on Pakistani equities, which had already been hit by US President Donald Trump’s tariff increases last month. That triggered panic selling and a one-hour trading halt at the PSX.
“Foreigners remained net sellers [in April] as well, taking 10MFY25 net outflow to around $252 million,” JS Global Capital Ltd., the largest broking and investment banking firm in Pakistan, said in a note to clients.
Muhammad Waqas Ghani, its head of research, said investor caution over Pakistan’s escalating tensions with India had driven the recent market volatility.
“The impact of geopolitical concerns is beginning to wear off,” he said.
On Friday, the KSE-100 rebounded 2.5 percent to 114,113 points, trimming overall losses to 3.6 percent. Ghani attributed the recovery to US diplomatic efforts to defuse tensions between the two neighbors.
“The market opened positive today [Friday], gaining 2,900 points or 2.6 percent in the first half,” he said.
Analysts said calls for restraint from the US, United Nations and other members of the International community contributed to Friday’s rally.
US Vice President JD Vance told Fox News in a podcast interview that Washington was working to prevent further escalation and preserve regional peace.
Mohammed Sohail, CEO at Topline Securities Ltd., said stocks bounced back as investors regained confidence amid “signals of easing tensions.”
JS Global said market sentiment could improve further after the International Monetary Fund’s (IMF) expected release of funds for Pakistan following its upcoming executive board meeting this month.
“Materialization of planned foreign inflows, likely after IMF disbursement, along with geopolitical stability, remains crucial for the country and equity markets,” it added.


Saudi Arabia’s flynas Middle East’s fastest-growing airline from 2019-2024: report

Updated 02 May 2025
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Saudi Arabia’s flynas Middle East’s fastest-growing airline from 2019-2024: report

RIYADH: Saudi low-cost carrier flynas’s capacity increased by 63 percent from 2019 to 2024, making it the fastest-growing airline in the Middle East region, according to an analysis.

In its latest report, UK-headquartered global travel data provider OAG said that flynas was closely followed by the UAE’s flydubai, which witnessed a capacity rise of 55 percent from 2019 to 2024.

The analysis revealed that both carriers operated nearly 14.4 million departing seats each during the period, with flynas edging ahead by 25,000 travelers.

The strong capacity growth of flynas aligns with Saudi Arabia’s national goal to establish itself as a global tourist and business destination. The Kingdom aims to attract over 150 million visitors by the end of this decade.

“The Middle East region’s strategic position as a global hub, coupled with the dynamic expansion of both low-cost and network carriers, is driving unprecedented opportunities. This vibrant market is setting the stage for future advancements in aviation technology and passenger experience,” said Filip Filipov, chief operating officer of OAG.

Although flydubai and flynas’ networks are similar, the latter benefits from a large domestic market within Saudi Arabia, allowing it to operate a more diverse route network, OAG added.

In February, flynas announced that it expects to receive more than 100 Airbus aircraft over the next five years, part of its broader deal for 280 Airbus jets.

The airline aims to operate over 160 aircraft by 2030, with its 280-plane order worth more than SR161 billion ($43 billion), making it the largest holder of single-aisle aircraft purchase orders in the Middle East.

Commenting on the growth of flynas in recent years, Paolo Carlomagno, partner at Arthur D. Little, said that competitive pricing and top-notch quality have played a crucial role in the airlines’ rising popularity among travelers. 

“In the past five years, flynas has delivered stellar growth thanks to several factors — endogenous and exogenous. A well-planned and executed network strategy and efficient seat capacity increases, primarily driven by fleet expansion with the Airbus A320Neo, which offers lower operating costs,” said Carlomagno. 

He added: “Flynas has also expertly managed the difficult trade-off between pricing and quality of service and delivered strong operational performance over the past five years.” 

The Arthur D. Little official added that the growth of flynas as a leading air carrier globally could help Saudi Arabia achieve its national tourism goals as outlined in the Vision 2030 initiative. 

He further highlighted that flynas has a significant opportunity to expand, as the market penetration of low-cost carriers in the Kingdom is comparatively low compared to other leading markets. 

“LCC market penetration in Saudi Arabia is still significantly lower than some other major aviation markets such as South East Asia and so there is still enormous potential for them to grow further. The ‘democratization’ air travel trend and the connectivity with ‘secondary’ routes will continue to boost demand in the Kingdom,” said Carlomagno. 

Middle East aviation market’s outlook

In its latest report, OAG stated that the Middle East’s aviation market has grown by 5 percent since 2019, making it the world’s second-fastest-growing region after South Asia, which saw a 12 percent increase over the same period.

The analysis further said that this increase was fueled by a robust combination of low-cost carrier growth and legacy carrier capacity.

“In recent years, the Middle East has established a leading position in developing new markets and connecting the region to the rest of the world with non-stop services to all continents and key cities,” said OAG.

It added: “The region has a highly competitive environment with best-in-class airlines operating in all segments, alongside ambitious plans for new aircraft and routes. This makes the Middle East a real hot spot in the aviation industry.”

The report highlighted that the Middle East is the sixth-largest region in the world based on available capacity, with 270 million one-way seats in 2024, placing the area ahead of Eastern Europe and behind South Asia.

According to OAG, airlines operating in the Middle East region witnessed an international travel capacity expansion of 8.9 percent by the end of 2024 compared to 2019, the second-strongest pandemic recovery, only next to South Asia, whose capacity grew by 11 percent during the same period.

Affirming the growth of the aviation sector in the region, a recent report by the International Air Transport Association revealed that airlines operating in the Middle East witnessed a 3.3 percent increase in passenger demand growth in February compared to the same month in 2024.

IATA added that the total capacity of Middle Eastern flights also rose by 1.3 percent year on year in February.

In March, another report by Oliver Wyman also highlighted the growth of the aviation sector in the region. It underscored that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035 to reach 2,557 aircraft.

The consultant management firm added that this significant growth in the region is almost double the annual global growth rate, which is projected at 2.8 percent during the same period.

According to the latest OAG report, low-cost carriers accounted for 29 percent of the capacity in the Middle East region in 2024, having more than doubled in the last decade from just 13 percent of capacity in 2014.

Globally, low-cost carriers operated 34 percent of the capacity last year.

Competition intensifies in Middle East market

According to OAG, two Middle Eastern carriers have gained prominence worldwide. Emirates and Qatar Airways are the only regional airlines to feature in 2024’s Top 20 Global Airlines for Capacity and the Top 10 Global Airlines by available seat kilometers — a measure of an airline's passenger carrying capacity.

The report revealed that Emirates is now the 14th largest carrier globally by seat capacity and ranks 4th in terms of available seat kilometers.

On the other hand, Qatar Airways has experienced dramatic growth over the last decade, as it developed Doha into a global connecting point and moved from being the 36th largest airline globally 10 years ago to the 19th in 2024.

A Qatar Airways sign at a check-in area. Shutterstock

Regarding available seat kilometers, Qatar Airways also advanced from 17th in 2019 to the sixth largest globally in 2024.

The capacity of Qatar Airways increased by 18 percent between 2019 and 2024.

The capacity of Emirates dropped by 7 percent in 2024 compared to 2019, while Saudia’s capacity declined by 11 percent during the same period.

“Competition across the region’s leading airlines is increasing, with as much investment in product as network expansion,” said OAG.

The study further stated that the Middle East market is likely to experience significant disruptions in the future as additional airline capacity is added through various airline business models and the creation of new airlines in the region.

“The launch of Riyadh Air is likely to be one of the most interesting disruptions in the Middle East market in the coming years, alongside the planned growth of rival Saudi airline Saudia and its move to a new base at Jeddah,” said OAG.

It added: “Although neither of these airlines is likely to challenge Emirates’ traffic in the short term, they will create a new competitive landscape as Saudi carriers vie for both transfer traffic and inbound tourism.”

Riyadh Air is scheduled to launch passenger flights by the end of 2025. Shutterstock

According to OAG, the key feature of the aviation sector in the Middle East, and particularly the bigger markets of the UAE, Qatar, and Saudi Arabia, is the depth of network that they offer to travelers.

The report added that non-stop flights from the region’s major hub airports reach every continent, with only a handful of international markets remaining unserved directly.

Markets in South America, including Lima and Santiago, fall just outside the operational reach of the Middle East region.

OAG further said that Doha to Auckland is currently the longest non-stop route operated from the Middle East by Qatar Airways, followed by Emirates’ Dubai to Auckland route.

“In time, with ever-increasing aircraft ranges, it is likely these destinations will provide new markets for the network carriers to increase their revenues further,” the report added.

It concluded: “For the traveler, a seemingly ever-expanding choice of destinations to reach, along with increased competition, is likely to result in airfares remaining competitive throughout the region.”


Think local: How startups can successfully expand into Saudi Arabia’s fast-growing market

Updated 02 May 2025
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Think local: How startups can successfully expand into Saudi Arabia’s fast-growing market

RIYADH: Saudi Arabia’s rapidly expanding market presents lucrative opportunities for startups, but successful entry requires careful planning and a deep understanding of the local landscape.

Industry experts told Arab News that companies looking to expand into Saudi Arabia must focus on key factors such as securing regulatory approvals, ensuring financial stability, hiring the right talent, and adapting to the local culture.

By prioritizing these elements, businesses can establish a strong foothold in one of the Middle East’s most lucrative markets.

Regulatory landscape

Regulatory compliance is one of the primary hurdles for startups entering the Saudi market. While the country is actively fostering entrepreneurship and foreign investment, businesses must follow strict licensing and legal requirements.

Mohammed Al-Zubi, managing partner and founder of Nama Ventures, emphasized the need for startups to thoroughly understand and prepare for regulatory processes.

“While Saudi Arabia is opening up to startups, businesses must secure the right MISA (Ministry of Investment) licensing, sector approvals, and legal structures. Many founders underestimate the process and should plan accordingly,” Al-Zubi said in an interview with Arab News.

Failing to navigate these regulatory frameworks can lead to operational delays, legal complications, or financial penalties.

Mohammed Al-Zubi, managing partner and founder of Nama Ventures. Supplied

Paula Tavangar, chief investment officer of Injaz Capital, echoed this, noting that “compliance with Saudi-specific regulations, including licensing, Saudization requirements, and sector-specific rules, is also essential from day one.”

She emphasized that while Gulf Cooperation Council countries may appear similar, “successfully entering the Saudi market has its own very unique economic landscape, regulatory environment, and consumer behavior.”

The Ministry of Investment has streamlined processes to encourage foreign investment, but businesses must still comply with industry-specific guidelines and labor laws, including Saudization policies, which mandate hiring a certain percentage of nationals from the Kingdom.

Beyond legal compliance, establishing local credibility is crucial. Saudi businesses often prefer working with entities that demonstrate a long-term commitment to the market.

Tavangar stressed that “building an on-the-ground presence in Saudi Arabia is not optional — it’s central to gaining traction.”

She added that “Saudi stakeholders generally prefer working with companies that are physically present, engaged locally, and committed to contributing to the Kingdom’s Vision 2030 goals.”

The regulatory framework is evolving to attract foreign startups, with the Saudi government offering multiple incentives to support early-stage businesses.

“The Saudi government actively supports foreign startups through initiatives like the National Transformation and Development Program, which can assist with relocation logistics and business setup,” Tavangar said.

This means startups should not view Saudi Arabia as a short-term expansion play but rather as a core component of their growth strategy.

Paula Tavangar, chief investment officer of Injaz Capital. Supplied

Financial preparedness

Expanding into Saudi Arabia requires significant financial resources. From securing office space to investing in marketing and hiring local employees, the costs can add up quickly.

Startups must assess their financial stability before making the move, ensuring they have the necessary capital to sustain operations during the initial stages of expansion.

Tavangar pointed to the financial realities of entering the Kingdom. “Financial readiness is key. Costs associated with setting up in Saudi — such as obtaining a foreign investment license through MISA, setting the entity, renting office space and hiring local talent — can add up quickly,” she said.

Setting up operations in the Kingdom comes with significant financial obligations that startups must prepare for.

These include licensing, incorporation costs, and office rental, which can be partially offset through available public initiatives. “There are multiple low-cost co-working space options in addition to free spaces through accelerator programs,” Tavangar noted.

She also highlighted the importance of leveraging public-private support schemes.

“Again, NTDP has a program that can sponsor 50 percent of employee salaries for the startups that require the support,” she said, underscoring the need for early-stage companies to budget carefully and align with available national resources.

In an interview with Arab News, Ahmed Mahmoud, CEO of DXwand, a startup that has recently expanded to Saudi Arabia, stressed the importance of financial resilience.

“A startup should have strong financial stability, consistent revenue growth, and a proven market presence. It should be well-funded with enough capital to sustain operations for at least a year after expansion,” he explains.

Mahmoud encourages startups to evaluate their expenses closely and tailor their pricing models to remain competitive within Saudi Arabia’s evolving market landscape.

“To succeed in Saudi Arabia, startups must carefully assess their unit economics and cost structures. A strong balance between customer lifetime value and customer acquisition cost is crucial for long-term profitability,” Mahmoud said.

Other financial considerations include managing operational expenses such as office leases, logistics, and employee salaries. 

Localization costs — such as translating marketing materials into Arabic, adapting services to cultural preferences, and ensuring compliance with local regulations — should also be factored into financial planning. 

Talent acquisition 

One of the challenges of expanding into Saudi Arabia is finding and retaining the right talent.

Al-Zubi advises startups to take a strategic approach to talent acquisition. “While Vision 2030 initiatives are fostering a skilled workforce, specialized tech and startup talent can still be limited. Startups should leverage local hiring programs, university partnerships, and experienced regional hires,” he said. 

Hiring Saudi nationals is not only a regulatory requirement in certain sectors but also a competitive advantage.

Local employees bring market insights, cultural understanding, and access to networks that can help businesses establish stronger connections. 

“Founders should hire local leadership, engage with stakeholders, and spend time in-market. Remote operations rarely succeed in Saudi Arabia,” he explains. 

Market localization 

Saudi Arabia is a relationship-driven market where trust and personal connections play a significant role in business success. 

Startups that fail to adapt to local consumer behavior and cultural expectations may struggle to gain traction. 

Al-Zubi highlights the importance of cultural adaptation. “Startups must localize offerings, marketing, and operations to fit local consumer behavior. Strong local partnerships can accelerate trust and market entry,” he said. 

Mahmoud also underscored the importance of branding and culturally relevant marketing strategies. 

“Localization isn’t just about language — it includes pricing models, payment preferences, and customer experience. Businesses that invest in culturally adapted services enhance trust and engagement,” he noted. 

Tavangar emphasized that “the local context is very important” adding: “While in the UAE we observe very successful implementation of business models that worked in the west, Saudi Arabia has a different business environment, very tailored to the local demand and culture.”

Strategic partnerships 

Establishing partnerships with local businesses, distributors, and investors can accelerate market entry and growth. 

Saudi companies prefer working with brands that demonstrate commitment and credibility, and forming strategic alliances can help startups gain that trust. 

“Building local partnerships with investors and distributors isn’t just helpful — it’s a game-changer. It boosts credibility and makes market entry smoother,” Mahmoud said. 

Tavangar added: “A local partner who has ‘skin in the game’ can significantly aid in navigating both the cultural and business landscapes.” 

Ahmed Mahmoud, CEO of DXwand. Supplied

Leveraging digital transformation 

As Saudi Arabia accelerates its digital transformation, startups leveraging advanced technologies like artificial intelligence, automation, and cloud infrastructure are well-positioned to gain a market advantage. 

The Kingdom’s investment in smart cities, fintech, and e-commerce presents opportunities for tech-driven companies to scale quickly. 

Mahmoud highlights the importance of embracing technology as part of a long-term strategy. 

“With Saudi Arabia going through a rapid digital transformation, there’s a huge opportunity in e-commerce and fintech, both of which align with Vision 2030’s innovation goals,” he said. 

Additionally, businesses that set up a regional headquarters in the Kingdom can benefit from government incentives, including potential tax breaks and funding support. 

By taking a long-term approach and investing in local partnerships, cultural adaptation, and digital innovation, startups can position themselves for sustainable growth in one of the Middle East’s most dynamic economies. 

As Al-Zubi said: “Startups that immerse themselves in the market, build strategic partnerships, and adapt to Saudi dynamics will find the most success.”


Oil Update — crude falls as traders weigh potential US-China trade talks

Updated 02 May 2025
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Oil Update — crude falls as traders weigh potential US-China trade talks

LONDON: Oil prices fell on Friday as traders squared positions ahead of an OPEC+ meeting and amid some caution about a potential de-escalation of the trade dispute between China and the US.

Brent crude futures were down 56 cents, or 0.9 percent, to $61.57 a barrel at 3:02 p.m. Saudi time, while US West Texas Intermediate crude futures fell 61 cents, or 1 percent, to $58.63 a barrel.

For the week, Brent and WTI were on track for 7 percent drops, the biggest weekly declines in a month.

China’s Commerce Ministry said on Friday that Beijing was “evaluating” a proposal from Washington to hold talks aimed at addressing US President Donald Trump’s sweeping tariffs, signalling a possible easing of the trade tensions that have rattled global markets.

“There is some optimism when it comes to US-China relations but the signs are only very tentative,” said Harry Tchilinguirian, group head of research at Onyx Capital Group. “It’s still very fluid, a one step forward, two steps back situation when it comes to tariffs.”

Concerns that the broader trade war could push the global economy into a recession and crimp oil demand, just as the OPEC+ group is preparing to raise output, have weighed heavily on oil prices in recent weeks.

Complicating any talks was a threat from Trump to impose secondary sanctions on buyers of Iranian oil. China is the world’s largest importer of Iran’s crude.

Trump’s comments followed a postponement of US talks with Iran over its nuclear program. He had previously restored a “maximum pressure” campaign against Iran, which included efforts to drive the country’s oil exports to zero to help prevent Tehran from developing a nuclear weapon.

Oil prices gained late in Thursday’s session to settle nearly 2 percent higher on Trump’s remarks, erasing some of the losses recorded earlier in the week on expectations of more OPEC+ supply coming to the market.

“With non-OPEC+ supply rising robustly and global demand growth facing structural decline, we see no natural re-entry point for these barrels and, ultimately, the group will likely have to endure some price pain no matter when it unwinds its cuts,” Fitch’s BMI research unit said in a note.