PayerMax sets up new regional HQ in Riyadh

PayerMax held an event to celebrate its acquisition of the RHQ license and the inauguration of its regional headquarters in Riyadh on June 11 at the MISA office.
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Updated 26 June 2024
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PayerMax sets up new regional HQ in Riyadh

PayerMax, a global payment solutions provider, has expanded into the Kingdom by establishing its regional headquarters in Riyadh. The company participated in the Regional Headquarters Program established by the Ministry of Investment and obtained an RHQ license this month.

PayerMax held an event to celebrate its acquisition of the RHQ license and the inauguration of its regional headquarters in Riyadh on June 11 at the MISA office. This milestone marks a major step in PayerMax’s strategic plan to strengthen its presence in the region and contribute to the Kingdom’s economic and technological development.

The RHQ program, a joint initiative by the MISA and Royal Commission for Riyadh City, is designed to enable and facilitate the ambitious growth plans of participating organizations in the region. PayerMax’s selection as one of the first companies in the National Technology Development Program launched by the Ministry of Communications and Information Technology further underscores the company’s technical expertise and commitment to innovation.

In attendance at the inauguration event was Alhassan Hamideldin, RHQ general supervisor, handling expansion of multinationals through the RHQ Program into the Kingdom.

In his speech, Hamideldin said that MISA is particularly honored to see PayerMax expanding their footprint in the Kingdom by establishing their regional headquarters here. “PayerMax is the very first Asian fintech company to do so. The Saudi government is fully committed to supporting the financial services sector, having undergone serious financial sector reforms, which have unlocked exponential growth potential in fintech, of which PayerMax is a prime example,” he said.

“We are deeply honored to have the esteemed MISA host our RHQ inauguration ceremony, which demonstrates the government’s commitment to fostering a conducive business environment for innovative companies like PayerMax,” said Wang Hu, co-founder at PayerMax.

PayerMax’s commitment to the Kingdom and the broader region is a testament to its dedication to supporting economic and technological development through innovative financial solutions. With its comprehensive global payment solution, PayerMax plans to accelerate digital payment adoption, providing convenient, safe, and faster ways to pay, catering to the evolving payment habits of users in the region.

“We are thrilled to establish our RHQ in Saudi Arabia, which signifies a strategic move to strengthen our presence in the region and demonstrates our long-term dedication to Saudi Arabia and the surrounding region,” said Hu. “Our expansion into the Kingdom, accompanied by an enhanced payment infrastructure, will continue to attract prominent global companies, particularly Asia-originated digital players in the gaming, e-commerce, social media sectors and more. This collective effort will further save our clients considerable cross-border transaction fees by providing them with one simple, safe, high-trust, and transparent payment interface.”

PayerMax’s vision aligns with Saudi Vision 2030, promoting financial inclusion, supporting economic diversification, and enhancing user experiences through digital payments.

The recent popularity of esports tournaments, such as Gamers8, highlights the increasing demand for innovative financial solutions in the Kingdom.


Abu Dhabi participates in US food tech summit

Updated 01 July 2024
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Abu Dhabi participates in US food tech summit

A high-level delegation from Abu Dhabi, led by the Abu Dhabi Investment Office, participated in the Future-Food Tech Summit in Chicago, showcasing the AgriFood Growth and Water Abundance cluster launched earlier last month by Sheikh Khaled bin Mohamed bin Zayed Al-Nahyan, crown prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council.

Led by the Abu Dhabi Department of Economic Development and ADIO, AGWA is an integrated economic cluster that plays a leading role in global efforts to tackle food shortages and water scarcity, and aims to be a global hub for novel food and ingredients, as well as technologies to increase the efficient use of water resources.

The delegation at the Future-Food Tech Summit in Chicago featured senior representatives from ADIO, Abu Dhabi’s government agency responsible for inward investment; Hub71, Abu Dhabi’s global tech ecosystem; the Technology Innovation Institute, an advanced technology research center in Abu Dhabi; as well as Abu Dhabi Agriculture and Food Safety Authority, the food safety, food security and biosecurity regulator in Abu Dhabi.

Participation in the Future-Food Tech Summit, one of the world’s biggest gatherings for leaders of the global food industry, marks the latest in a series of activities by Abu Dhabi since the launch of AGWA. Leading Abu Dhabi research centers, including the Advanced Technology Research Council, ADIA Lab, Khalifa University, United Arab Emirates University and Hub71 agreed to collaborate to accelerate innovation, talent development and advanced research, to tackle food shortages and water scarcity globally.

Additionally, ADIO, ADAFSA, and the Abu Dhabi Quality and Conformity Council announced that they will collaborate to streamline regulatory approvals and support mechanisms to enable the deployment of more efficient and effective solutions in the agriculture, food and water sectors.

The AGWA agreements also include major infrastructure partners such as Abu Dhabi Ports Company, Abu Dhabi Airports Company, Abu Dhabi Distribution Company, and Masdar City, which have agreed to collaborate with ADIO in creating an enabling environment for AGWA cluster companies.

The Ministry of Energy and Infrastructure, the Ministry of Industry and Advanced Technology, and the Ministry of Climate Change and Environment also announced the formation of a steering committee that will work to create the regulatory environment necessary to accelerate Abu Dhabi’s position as a leading global food and water hub on the national level.

Fatima Al-Dhaheri, head of the AGWA Cluster, said: “Our US tour has been instrumental in forging strategic alliances in food and water innovation. We identified promising opportunities for collaboration with global leaders, and showcased AGWA’s vision to a global audience. Together with our partners, we can drive innovation, develop advanced solutions, and tackle global challenges, significantly enhancing the scale, diversity, and accessibility of food ecosystems worldwide.”


New Najm branch brings quality service to Al-Ahsa

Updated 01 July 2024
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New Najm branch brings quality service to Al-Ahsa

Najm for Insurance Services inaugurated its new branch in Al-Ahsa, in the presence of Al-Ahsa Traffic Department Director Brig. Gen. Khalid bin Faleh Al-Rashidi and a number of Najm officials. Al-Rashidi toured the branch, during which he viewed the workflow and services provided by Najm to improve the customer experience.

The new branch comes within the framework of the continuous improvement plan implemented by Najm, which included the opening of a number of branches throughout the year, including in Jazan and Hail. These branches have now become part of Najm’s network, which includes 28 branches. This extensive network of branches will ensure the provision of the company’s services across various regions of the Kingdom.

In addition to these branches, Najm also has digital channels that provide a range of services and improve the customer experience, including a smartphone app, call center, IVR service, website, WhatsApp, X platform and the virtual visit service via Najm’s website, which was recently launched in its experimental phase.

To ensure business sustainability and continuity, Najm is implementing an integrated system of solutions and services for the Kingdom’s citizens, residents, and visitors.

Vice President of Customer Service at Najm Mohammed A. Alzndi said: “The development of Najm’s branches comes within the framework of its strategy aimed at providing a stimulating work environment in accordance with the requirements of Najm’s corporate identity. Najm also adopts modern technical means to speed up handling the transactions of traffic accidents and vehicle insurance customers Kingdom wide.”

Alzndi added: “Najm has transitioned from the traditional concept of the vehicle insurance sector, which focused on handling traffic accidents, to a comprehensive, integrated, and organized sector that provides high-quality services. This transition achieves several qualitative objectives, the most important of which are enhancing road safety and improving the quality of life in line with the goals of Saudi Vision 2030. Additionally, it provides services to all parties in the insurance ecosystem.”

Najm is a closed and unlisted Saudi joint stock company established in 2007, to promote the vehicle insurance sector in the Kingdom. It provides an integrated system of insurance solutions and services to citizens, residents, and visitors in 44 Saudi cities through a skilled Saudi workforce.


Strategic expansion: Budget Saudi acquires AutoWorld

Fawaz Danish, president and group CEO, Budget Saudi
Updated 01 July 2024
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Strategic expansion: Budget Saudi acquires AutoWorld

United International Transportation Company, or Budget Saudi, a comprehensive mobility solutions provider in the Kingdom, has announced the acquisition of Al-Jazira Equipment Company, known as AutoWorld, a SEDCO Holding owned vehicle leasing company.

Budget Saudi’s shareholders voted in favor of the acquisition at the Extraordinary General Assembly held on June 24. This landmark decision marks a significant milestone in Budget Saudi’s history and paves the way for strategic expansion in a dynamic market poised for healthy growth.

Following the approval of the shareholders at the EGM, 7 million ordinary shares paid in full will be issued by Budget Saudi to SEDCO Holding and are expected to start trading on the Saudi Exchange upon completion of the necessary procedures with the exchange and Securities Depository Center Company. The new shares represent 8.96 percent of Budget Saudi’s share capital after the capital increase. Once the new shares are issued in favor of SEDCO Holding, a Saudi Shariah institutional investor with deep experience and a strong track record of investing in national champions, it will directly and indirectly own 8.96 percent of Budget Saudi. AutoWorld’s shares will be transferred from SEDCO Holding to Aljozoor Alrasekha, a Budget Saudi wholly owned subsidiary.

Fawaz Danish, president and group CEO, Budget Saudi, said: “The strategic acquisition of AutoWorld provides a robust platform for future growth opportunities, bolstered by the strong Saudi real economy, structural changes in the transportation sector, and the flourishing tourism industry. This deal, the first-of-its-kind in Budget Saudi’s history, enables us to lay the groundwork for strategic initiatives that drive sustainable growth, enhance competitiveness, and create shareholder value.”

With this acquisition, Budget Saudi will solidify its position as a market leader in the long-term vehicle rental and leasing market in the Kingdom. According to a credible third-party market report, the acquisition will increase the company’s market share from 12 to 18 percent approximately. AutoWorld’s fleet size of 14,000 vehicles brings Budget Saudi’s total car leasing fleet to 49,300 (based on FY 2023 figures), representing a strategic move to consolidate Saudi Arabia’s auto leasing market and enhance service quality in the evolving transportation sector.

Moreover, this acquisition reinforces Budget Saudi’s market share in the business-to-business and business-to-government segments, where its management foresees significant growth potential driven by a market shift from asset ownership to usership models. Additionally, it enhances its ability to set competitive pricing, improving overall profitability in the mid- to long-term.

The acquisition is set to expand Budget Saudi’s customer base, granting access to new customers in key industry verticals such as oil and gas, among others where AutoWorld has a strong presence. By acquiring a competitor with a complementary fleet and service offerings, Budget Saudi can diversify its portfolio, catering to a broader range of customer needs and preferences. This diversification helps mitigate risks associated with market fluctuations and changing consumer preferences.

Post-acquisition, Budget Saudi plans to merge its Payless brand, a short-term car rental business, with AutoWorld, to tap into more price-conscious customers, including residents, business travelers, and leisure travelers, further diversifying and growing its customer portfolio.

The acquisition will unlock significant cost synergies, reduce redundancies, and achieve economies of scale, leading to improved profitability in the mid- to long-term. These efficiencies extend to better fleet utilization, optimized procurement, enhanced negotiating power with major suppliers, insurance providers, and other vendors, and consolidated administrative functions.

The combined entity will benefit from optimized operations and shared resources, reducing redundant costs and enhancing overall agility and responsiveness to market demands. Based on independent third-party experts’ estimates, the company anticipates achieving significant recurring cost synergies per year from the third year onwards post-integration.

AutoWorld is a profitable company with a healthy profitability margin in line with industry averages. This acquisition is expected to be EPS accretive post-integration. The company’s management anticipates realizing debt cost savings through better terms for AutoWorld’s existing debt. Post-integration, and upon realizing cost synergies, Budget Saudi expects AutoWorld’s net profit to expand further, enhancing future consolidated net profits and margins.

The integration of two well-known and reputed brands will lead to a stronger, more unified market presence. By harmonizing the best practices and value propositions of both companies, Budget Saudi aims to enhance customer satisfaction and loyalty, contributing to long-term revenue growth.

Budget Saudi has seen substantial growth in its revenues and fleet. As part of its growth strategy — and in accordance with Vision 2030 — the company has launched a range of sustainable green initiatives to reduce the carbon footprint of its fleet.


MWC Shanghai: Huawei embraces 5G-A for mobile AI era

Updated 30 June 2024
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MWC Shanghai: Huawei embraces 5G-A for mobile AI era

Huawei, a global provider of telecommunications technology solutions, presented its cutting-edge 5G-Advanced and AI solutions at Mobile World Congress Shanghai 2024 under the theme “Advancing the Intelligent World.” The company showcased its latest products and solutions that support commercial 5G-A deployment and the AI devices required for the mobile AI era.

The year 2024 marks the start of a new era of mobile AI empowered by the commercial launch of 5G-A and rapid advances in AI. Leading operators in the Middle East and China have started to deploy 5G-A networks, with some of them already launching differentiated experience-based 5G-A packages.

Huawei’s Executive Director of the Board and Chairman of the ICT Infrastructure Managing Board David Wang delivered a keynote speech titled “Accelerating 5G-A and Shaping the Mobile AI Era.” He said that the mobile AI era will transform human-machine interaction, content production, and mobile devices, revitalizing society and creating opportunities for the mobile industry.

Wang said: “This month marks the fifth year since 5G’s commercial launch in China. Over the past five years, commercial 5G has achieved remarkable success and made an unprecedented impact on the global mobile industry.” He added that Huawei looks forward to working with all industry stakeholders to seize the enormous opportunities presented by the mobile AI era to shape the intelligent world.

Dr. Philip Song, chief marketing officer of Huawei Carrier Business Group, explained how Open Gateway will be essential for carriers to pursue experience-driven operations based on diverse 5G-A network capabilities. Open Gateway defines unified standards, billing modes, and a global ecosystem within an interoperable framework. It will become a new engine for 5G-A experience-oriented operations and spur the creation of new business models.

Yang Chaobin, Huawei’s board member and president of ICT products and solutions, discussed how AI technology, particularly generative AI, brings new opportunities and requirements to telecom networks. He introduced Huawei’s upgraded autonomous driving network solution, now powered by the company’s Telecom Foundation Model. This solution provides five role-based copilots and five scenario-based agents to enhance network value in service enablement, maintenance, and experience assurance.

Huawei has announced reaching six separate agreements with pioneering 5G-A operators worldwide and launched a joint initiative for high-quality mobile video development in the AI era. The company will continue to invest in the R&D of network APIs, exploring new services, accelerating the development of incumbent services like fixed wireless access, and improving O&M efficiency.

Leading operators around the world are already looking to capitalize on 5G-A. More than 30 operators have completed 5G-A technical verification, and nearly 20 mobile phone models currently support multi-carrier aggregation, with some supporting the feature by default. Around 10 operators have announced commercial 5G-A plans, including the launch of 5G-A packages and related services.

The number of global 5G users has exceeded 1.8 billion, and many operators have already seen the first wave of benefits from 5G.

MWC Shanghai 2024 was held from June 26-28 in Shanghai, China.


King Fahd Causeway to Bahrain goes digital

Updated 30 June 2024
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King Fahd Causeway to Bahrain goes digital

United Insurance Company, the provider responsible for mandatory insurance for vehicles crossing the King Fahd Causeway to Bahrain, has announced that, effective July 1, short-term insurance policies (three, five, and 10 days) will be available exclusively through electronic channels.

The company said in a statement that the minimum insurance period available at physical insurance booths will be one month. 

This initiative is designed to enhance the insurance services provided to vehicles using the King Fahd Causeway, streamline the process of obtaining insurance, and ensure a seamless crossing experience for travelers.

The new e-insurance service facilitates the issuance of insurance policies and the payment of fees online, allowing travelers to secure their insurance before reaching the King Fahd Causeway.

Maysa Al-Kooheji, CEO of United Insurance Company, said: “This measure is one of the initiatives we are implementing as part of our comprehensive digital transformation policy across all operations. This initiative continues the new phase of service development that began last January, marked by the launch of our new logo and visual identity.”