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Startup Wrap – cross-border funding and acquisitions flourish as MENA activity steps up 

US-based AI platform aiXplain benefitted from a pre-series A funding round led by venture capital firm Wa’ed Ventures. Supplied
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Updated 19 July 2024
Nour El-Shaeri 
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Startup Wrap – cross-border funding and acquisitions flourish as MENA activity steps up 

Updated 19 July 2024
Nour El-Shaeri 

CAIRO: Regional startup activity has seen many acquisitions and funding rounds in recent weeks, with climate technology, artificial intelligence, and Web3 garnering the most attention. 

Saudi Arabia’s venture capital firm Wa’ed Ventures, a $500-million Aramco subsidiary, led California-based AI platform aiXplain’s $6.5 million pre-series A funding round. 

Backed by US-based firms including Transform VC and Calibrate VC, aiXplain has raised a total of $16.5 million since its inception, aiming for a global rollout of AI solutions. 

Founded in 2020 by Hassan Sawaf, aiXplain has designed an integrated platform to simplify the creation, deployment, and management of AI solutions. 

The company aims to democratize access to AI innovation by enabling the building of advanced solutions through natural language prompts for users with no coding background. 

This approach allows businesses to maximize operational efficiencies by accelerating the time and effort needed for integrating AI into large-scale operations. 

“Hassan and his team deeply understand the global disparity in AI access and the potentially damaging effects of leaving this gap unaddressed,” said Fahad Alidi, managing director and CEO at Wa’ed Ventures. 

He added that aiXplain “has already helped close the AI innovation gap in the MENA (Middle East and North Africa) region, and we see significant potential for the company to localize its solutions in the Kingdom.” 

To accelerate its entry into the Kingdom, aiXplain’s existing subsidiary in Saudi Arabia will function as the company’s MENA region headquarters. 

Beyond the Kingdom, aiXplain works with businesses worldwide to build AI solutions efficiently, as well as fine-tune and benchmark AI models. 

Oman-based climate tech 44.01 secures $37m in series A funding 

Oman-based climate technology startup 44.01 has closed a $37 million series A funding round, led by Equinor Ventures with participation from Shorooq Partners, Air Liquide Venture Capital, Alumni Ventures, and other investors. 

Founded in 2020 by Talal Hassan, Ehab Tasfai, and Karan Khimji, 44.01 specializes in eliminating carbon dioxide by converting it into rock. 

The funding will enable the firm to continue refining its technology, develop commercial-scale projects, and expand its deployment internationally. The company’s tech has been piloted in Oman and the UAE. 

Talal Hasan, founder and CEO of 44.01, said: “We believe mineralization can play a significant role in protecting and repairing our climate. We are grateful to our investors for committing to that mission and for demonstrating their confidence in our technology.” 

He added: “Our investors bring a wealth of international expertise and experience that will help us to accelerate our development and ultimately mineralize CO2 at scale world-wide.”

Sentient Labs raises $85m in seed investment 

UAE-based Web3-focused startup Sentient Labs has raised an $85m through a seed investment round co-led by Pantera Capital and Framework Ventures, with additional funding from Arrington Capital, Canonical, Dao5, and others. 

Founded in January 2024 by Sandeep Nailwal, Pramod Viswanath, and Himanshu Tyagi, Sentient Labs is dedicated to democratizing AI development to ensure its benefits are shared by humanity as a whole. 

Sentient Labs will use the capital to accelerate the development of its open-source AI platform. 

Muller & Phipps acquires Power League Gaming 




Supplied

Regional technology distribution house Muller & Phipps Middle East Group has acquired UAE-based gaming and esports agency Power League Gaming for an undisclosed value. 

The acquisition will see Muller & Phipps invest in scaling Dubai operations and expanding into Saudi Arabia in the fourth quarter of 2024. 

Founded in 2013 by John Lacey, Power League Gaming offers comprehensive solutions for brands entering the gaming sector and publishers engaging audiences through esports events, content creation, and omni-channel ecosystem development. 

Muller & Phipps will acquire all company assets, retaining the management team to lead the business. 

“With Power League Gaming we see market experts who have grown rapidly and who have the talent and drive to take the business and the category itself to the next level across our region. We are excited to launch into Saudi Arabia later this year and to offer local clients the latest and most commercially sound esports and gaming strategies in the field,” group CEO of Muller & Phipps Middle East Group Holdings, Trevor Price, said. 

Tokinvest secures $500k in pre-seed funding 

UAE-based tokenization platform Tokinvest has raised $500,000 in pre-seed funding from a group of investors, including Michael Ourabah, CEO of global infrastructure provider BSO. 

Founded in 2024 by Scott Thiel and Matthew Blom, Tokinvest creates virtual tokens representing rights to assets, connecting real-world asset issuers with global investors through its marketplace. 

The newly acquired funds will be used to enhance Tokinvest’s technological infrastructure, expand its team, and accelerate market penetration. 

“We are immensely grateful for the trust and support from our early investors. This funding fuels our technological and operational development and solidifies our strategy to lead in the real-world asset tokenization space. We are excited about the opportunities that lie ahead and are keenly focused on launching our marketplace later this year,” Thiel, the company’s CEO, said. 

Swyt concludes undisclosed seed round 

UAE-based IT solutions provider Swyt has concluded an undisclosed seed funding round. 

Founded in 2022 by Edouard Bouvet, Swyt offers an all-in-one platform designed to simplify and secure IT operations for businesses. 

The seed funding will support Swyt’s mission to accelerate research and development on their platform and expand its presence throughout the Gulf region. 

Dopay closes $13.5m series A extension round 




Dopay team. Supplied

Egypt-headquartered fintech Dopay has closed a $13.5 million series A extension round, adding to a previous $18 million series A round raised in 2021. The new funding initiative was led by Argentem Creek Partners with participation from existing investors. 

Founded in 2014 by Frans van Eersel and Ahmed Nassef, Dopay offers a virtual banking platform that digitizes cash payments from employers to workers and other beneficiaries. 

The fresh funding will enable Dopay to expand in Egypt, launch new financial services, and extend its multi-bank, multi-country platform to other markets. 

“This funding comes at a pivotal moment, with our growth exhibiting a true hockey stick trajectory. The new funds will help us elevate our platform and, in collaboration with our partner banks, leverage deposited funds to create a self-financing lending model,” Eersel said. 

“This model will allow deposited amounts to fuel a lending portfolio, fostering a sustainable and mutually beneficial financial ecosystem. Our customers can look forward to new financing products that will be seamlessly embedded into our platform, enhancing their overall experience,” he added. 

Majarra acquires NLP technology provider Lableb 

UAE-based Arabic digital content provider Majarra has acquired natural language processing technology provider Lableb for an undisclosed amount. 

Founded in 2004 by Abdulsalam Haykal, Majarra provides Arabic content through its app, offering a vast library of over 50,000 articles, videos, and audio content. 

Lableb, founded in 2017 by Kinda Al-Tarbouch, offers Arabic AI services and NLP. The acquisition aims to solidify Majarra’s position at the forefront of Arabic digital innovation and marks its entry into the rapidly expanding AI sector. 

“Joining Majarra marks an exciting new chapter for Lableb. Our shared vision of advancing Arabic AI and NLP will drive innovation and deliver significant value to online businesses and their customers. Lableb’s tools are robust, ready to deploy, and capable of handling millions of queries weekly,” Al-Tarbouch said. 

Topics: startups Wa’ed Ventures

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Emirates’ retrofitted Boeing 777s rolling out to six US cities

Updated 18 September 2024
Arab News
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Emirates’ retrofitted Boeing 777s rolling out to six US cities

  • Boeing 777 with enhanced cabins will be introduced to Chicago, Boston, Dallas Fort Worth, Seattle and linked routes Miami/Bogota and Newark/Athens
  • Flights to and from ten of the 12 gateways in Emirates’ US network will feature Premium Economy by February 2025
Updated 18 September 2024
Arab News

DUBAI: Emirates will be introducing its refurbished Boeing 777s on six routes in the US, providing customers with an elevated experience across all cabins, including the debut of its latest Business Class seats and highly-popular Premium Economy.

The retrofitted Boeing 777 aircraft are scheduled to operate on direct flights to Chicago, Boston, Dallas Fort Worth, and Seattle. In addition, flights to Miami linked to Bogota and to Newark via Athens will also be served with the refreshed aircraft featuring Emirates’ four cabin classes and signature product touches. The refurbished Boeing 777s will debut for the first time in the US starting from next month and until early 2025 with the following schedule:

Chicago — Emirates will introduce its retrofitted Boeing 777 three times weekly on EK 235 and EK 236 starting from 1 November 2024 and will increase to daily from 22 November 2024.
Boston — From 10 December 2024 Emirates’ newly-retrofitted Boeing 777 will serve the route three times weekly as EK 237 and EK 238, increasing to daily from 18 December.
Dallas Fort Worth — Emirates’ enhanced Boeing 777 aircraft will be deployed three times weekly on EK 221 and EK 222 from 9 January 2025, with daily flights starting from 15 January 2025. 
Seattle — The newly-configured aircraft featuring four cabin classes, including Premium Economy, will be rolled out on EK 229 and EK 230 from 24 January 2025.
Newark/Athens — From 10 February 2025, Emirates’ retrofitted Boeing 777 with refreshed interiors and new cabins will operate daily on EK 209 and EK 210
Miami/Bogota — Emirates’ latest B777 experience will be introduced on EK 213 and EK 214, the service to and from Dubai and linking Miami with the Colombian capital, on four weekly flights from 19 February 2025, expanding to daily from 1 March 2025.

With the deployment of its newly retrofitted Boeing 777 aircraft, flights to and from ten of the 12 gateways in Emirates’ US network will feature Premium Economy by February 2025. The understated luxury products will also be available to two cities in Latin America, with Bogota joining Sao Paulo. Emirates’ signature Premium Economy seats will now be available on a mix of Boeing 777 and A380 aircraft, operating to 12 gateways in Emirates’ 19-point network in the Americas. The refreshed aircraft also feature the new Emirates 777 Business Class with seats in a 1-2-1 arrangement, more privacy, fully reclined flat bed in addition to a personal mini-bar among other amenities. 

On the introduction of Premium Economy to additional US routes, Adnan Kazim, Deputy President, and Chief Commercial Officer at Emirates said: “With the success and popularity of Premium Economy on routes like New York JFK, Los Angeles, San Francisco and Houston served by our refurbished A380, we look forward to bringing a new level of comfort and privacy to more cities with refreshed cabins on our Boeing 777s. The introduction of our refreshed product and ensuring consistent experiences in the sky on more routes is part of our long-standing commitment to the US and adding more premium options in a span of just a few months ensures we offer a competitive, value for money proposition for our customers.”

The roll out of Emirates’ refreshed aircraft featuring a four-class configuration will bring the number of routes offering the distinctive Premium Economy product to 27 cities globally including Dubai by the end of 2024, utilising 48 Boeing 777, A380 and A350 aircraft. Besides the US and Latin American points where the retrofitted aircraft will be deployed, customers are already enjoying choice and comfort with refurbished Boeing 777s flying to Geneva, Tokyo Haneda and Brussels, and Zurich along with Riyadh are scheduled from next month. 

The continued roll out of Premium Economy across Emirates’ network allows its US customers to enjoy the luxury, comforts and affordability of Premium Economy to final destinations beyond Dubai including Mumbai, Bangalore and Singapore, to name a few.

Furthermore, Emirates’ customers traveling to United’s hubs in Chicago, Houston and San Francisco, can fly in Premium Economy before connecting to its services to hundreds of US domestic points and cities in Canada and Latin America.

Seats on flights can be booked on emirates.com, the Emirates App, or via both online and offline travel agents.

The four-class Boeing 777 features six or eight First Class suites, 38 or 40 Business class seats in a 1-2-1 arrangement, 24 seats in Premium Economy, and 256 Economy class seats.

In addition to the introduction of Premium Economy on the retrofitted aircraft, customers across all cabins can enjoy the refreshed interiors which sport a blend of beautiful designs and new color palettes, in the carpeting, wall panels, and wood finishings, to name a few of the aesthetic enhancements.

Topics: Emirates Boeing 777 United States of America (USA)

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Experts explore pathways for faster electric vehicle integration

Updated 18 September 2024
Ghadi Joudah
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Experts explore pathways for faster electric vehicle integration

Updated 18 September 2024
Ghadi Joudah

RIYADH: Experts discussed the progress of electrification in the private vehicle market, noting that while advancements are being made, mass adoption has not yet been achieved.

Jonathan Spear, policy and strategy adviser at Atkins Realis, shared these insights during a keynote panel titled “How Electric Vehicles Can See Faster Commercial Adoption” at the EV Auto Show on Wednesday.

Key challenges facing the sector include high purchase prices driven by battery costs and the necessity for robust charging infrastructure. Spear pointed out that leading nations in electric vehicle adoption include China, Europe, and the US, while emerging economies are lagging due to the logistical difficulties of electrifying their vehicle fleets.

He emphasized that national regulations and city-level policies play a critical role in promoting the adoption of zero-emission fleets, particularly through public procurement strategies for cleaner vehicles and infrastructure.

Tony Mazzone, managing director at Electromin, highlighted the importance of government support in accelerating the development of EV charging infrastructure. He noted that the cost of electric vehicles remains significantly higher than that of diesel vehicles, largely due to the high expenses associated with technology and batteries.

Mazzone also mentioned that the electrification of larger trucks is progressing more slowly due to technological challenges. For instance, he explained that electrifying a 40-ton truck involves substantial battery weight, making the establishment of charging infrastructure along key routes equally demanding.

Looking ahead, Mazzone expressed optimism that advancements in technology, such as solid-state batteries, could address these challenges by 2030.

Vincent Jia, managing director at Yutong Trucks, discussed the company’s focus on three primary markets in the Middle East: Saudi Arabia, the UAE, and Qatar. He observed that Saudi Arabia’s electric truck market is slower to adopt compared to its neighbors, attributing this to the kingdom’s lower fuel prices.

Spear reiterated the importance of implementing the right policies, legislation, and national regulations to foster EV adoption in Saudi Arabia. He also stressed the need for openness to innovation and technological trials that suit the region’s climatic conditions.

In conclusion, Spear suggested that effective practices should consider the entire lifecycle of electric vehicles, including their construction and supply chain, to ensure a comprehensive approach to reducing carbon emissions.

Topics: EV2024 main

Electromin to install 16 EV charging stations at Roshn Waterfront by end of 2024

Updated 18 September 2024
Nour El-Shaeri
MANAL AL-BARAKATI
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Electromin to install 16 EV charging stations at Roshn Waterfront by end of 2024

Updated 18 September 2024
Nour El-Shaeri MANAL AL-BARAKATI

RIYADH: The installation of 16 electric vehicle chargers at the Roshn Waterfront in Jeddah Corniche is expected to be completed by the end of this year, according to Tony Mazzone, managing director of Electromin.

In an interview with Arab News during the EV Auto Show in Riyadh on Sept. 17, Mazzone announced that the company has signed two partnership agreements aimed at enhancing the sector’s infrastructure. The first agreement involves collaboration with Roshn Waterfront to develop EV charging facilities, ensuring that visitors can conveniently charge their vehicles while enjoying the corniche.

“Across the 4-km strip on the corniche, we’re looking to deploy 16 chargers in eight different locations. The intention is to support those that already visit the corniche and obviously more and more transition to EV, but they’ve got a place to charge while they enjoy the experiences there. The intention is not to go there to charge, the intention to go enjoy what you do, but while you’re there, you can charge at the same time,” Mazzone told Arab News.

He added that the installations are expected to be completed by the end of this year, at which point they will be accessible to the public and featured on the Electromin mobile application.

The second partnership involves an agreement with Solutions Valley, the commercial arm of Saudi Electricity Co., aimed at supporting the development of EV infrastructure.

The app

“All of our public chargers are all on (an) application. So, the application allows you to plan your routes. You can see those chargers. It’s all live. The key thing is to get over the anxiety of people that have an electric car to say, I have a car, where do I charge?” he said.

“We have over 110 chargers now, live locations. We have 26 in Jeddah. We have around 30 in Riyadh, specifically in the two main cities. And we’ll be adding to that by the end of Q4 of this year,” he added.

Expansion

As a private entity, Electromin’s expansion strategy is driven by the increasing demand for electric vehicle infrastructure. Mazzone noted that deploying chargers and establishing the necessary infrastructure requires substantial capital investment, making the commercial aspect a primary focus.

“In terms of the deployment plan, we need to align it with demand. We understand that EV adoption is currently progressing slowly, but there will be a ramp-up. It’s essential to deploy infrastructure as demand dictates,” he explained.

Additionally, the company is entering the rapid transit sector by installing and operating a fully electric bus system in Makkah, set to launch in the first quarter of next year.

Mass adoption

Mazzone stressed the necessity of accelerating EV adoption in Saudi Arabia, underscoring the vital role of government support.

“I think what’s critical to Saudi Arabia right now is to accelerate the adoption. We need support from the government, incentives to subsidize some of the costs to support the consumer in the purchase of electric vehicles. And we know in other countries or other regions around the world, the mass adoption has happened on the back and the strength of those incentives and legislation changes,” he explained. 

He identified two primary barriers to widespread EV adoption in the region: price and convenience. “For potential EV drivers, there are two hurdles to overcome: the cost and the convenience of charging,” Mazzone stated.

Addressing current challenges, he highlighted that electric vehicles are generally more expensive than traditional cars and that insufficient charging infrastructure poses significant obstacles. “Right now, if you buy an electric car, it will cost you more than a traditional vehicle, and the lack of charging stations makes it more complicated,” he said.

“For the mass adoption to occur, you need to get price parity and you need to make sure that when people transition, they can do it seamlessly. So, our idea, our ideals, make sure that when people drive, like a traditional petrol car, they don’t think about where they fuel, they drive without any anxiety. And I think the infrastructure needs to be in place to support that adoption. It needs to happen in that order,” he added.   

Topics: EV2024 main

EV Auto Show 2024: Saudi car rental and B2B sectors to drive EV adoption by 2026, says executive 

Updated 18 September 2024
Sulafa Al-Khunaizi
REEM WALID 
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EV Auto Show 2024: Saudi car rental and B2B sectors to drive EV adoption by 2026, says executive 

Updated 18 September 2024
Sulafa Al-Khunaizi REEM WALID 

RIYADH: Saudi Arabia’s car rental and business-to-business sectors are expected to drive electric vehicle adoption in the coming two years, according to an industry leader. 

Speaking during a panel discussion at the EV Auto Show in Riyadh, Hashim Al-Fatayerji, regional executive director at Sixt, forecast a rise in EV dealerships across the Kingdom.

“In 2025 and 2026, we will see more adoption of EVs across the rental car and B2B sectors,” he said. 

Saudi Arabia aims to convert 30 percent of Riyadh’s vehicles to electric by 2030, part of a broader strategy to cut emissions in the capital by 50 percent and achieve carbon neutrality by 2060.   

Al-Fatayerji anticipates the opening of additional dealerships – including American and European brands – and increased local production of EVs by the end of 2026.

“This will be a game changer for the industry because it will change the dynamics of purchasing power in the market and where we are buying cars from,” he added. 

Al-Fatayerji also noted that Sixt is working closely with partners and suppliers to ensure operational efficiency and profitability.   

Nicolas Verneuil, managing director at Petromin Stellantis, emphasized the need for further progress in the EV sector.

“More needs to be done, of course, and until we reach the right level of capillarity, people will wonder, ‘Can I get quite the same driving experience with an EV as I do with my combustion engine?’” he said.  

Verneuil also highlighted the efforts of the government, the Public Investment Fund, and private companies in accelerating infrastructure development. 

Lisa Brigmann, president and CEO of AdvantEdge Engineering Group, discussed the role of automotive companies and rental businesses in EV adoption.

“I think that it would be really helpful for big automotive companies and even car rental companies to start helping customers envision how they can accept EVs into their daily lives,” she said.  

Brigmann also pointed out that while material costs for EVs remain high, the benefits of lower CO2 emissions are a significant driver. “When they rent or own a car, they are actually part of the solution to reducing emissions,” she added.  

In a separate panel, James Luxbacher, managing director at Sixt, addressed the pricing challenges of EVs.  

Luxbacher noted that the rapid decline in vehicle pricing makes it challenging for owners who plan to resell their vehicles after a certain period. “We need some more stability, and I think most of us are learning right now. It will get more stable in the future,” he said.  

The Sixt managing director also commented on the reliability of EVs, saying: “But again, it takes the infrastructure too if you want to go on longer trips with the truck. Particularly in last-mile delivery, we’ll see a big uptick in it.” 

The EV Auto Show, held at the Riyadh International Convention and Exhibition Center, aligns with Saudi Arabia’s Vision 2030, underscoring its commitment to EVs and sustainable technology.  

The event brings together automotive manufacturers, charging solution providers, policymakers, and consumers to explore the future of mobility. Attendees can engage with a range of EVs, charging solutions, and green technologies through interactive seminars and panel discussions. 

Topics: EV2024 electric vehicle (EV) Petromin Stellantis Sixt main

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Italian business body of 7,000 firms eyes investments in Saudi Arabia

Updated 18 September 2024
Miguel Hadchity
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Italian business body of 7,000 firms eyes investments in Saudi Arabia

Updated 18 September 2024
Miguel Hadchity

RIYADH: An Italian business federation representing 7,000 companies has announced plans to increase Italian investments in Saudi Arabia, focusing on opportunities aligned with Vision 2030.

According to the Saudi Press Agency, the federation includes major Italian firms across key economic sectors. This announcement was made during the Saudi-Italian Business Forum, held at the Saudi Chambers Federation. The event featured the newly appointed Italian Ambassador to Saudi Arabia, Carlo Baldocchi, along with representatives from over 140 companies and officials from both nations.

Attilio Fontana, president of the Lombardy Regional Government, emphasized that Lombardy, which has a gross domestic product exceeding $444 billion, is a crucial part of the Italian economy and offers significant opportunities for international investors. He noted that the visit aims to enhance the role of Italian expertise in Saudi investments, scientific collaboration, and cultural exchange, while committing to provide incentives for Saudi investors.

Kamel Al-Majid, chairman of the Saudi-Italian Business Council, highlighted the growth in bilateral trade between Saudi Arabia and Italy, which is now approaching SR38 billion ($10.1 billion). Lombardy has made substantial contributions through key exports such as machinery, chemicals, and automotive products.

He also pointed out that cooperation in logistics, infrastructure development, and digital technologies could create significant opportunities for Italian investors, while Italian expertise in construction can support major projects in Saudi Arabia.

Lombardy, a financial and industrial powerhouse, hosts the Italian stock exchange and attracts global investments in sectors like automotive, aerospace, life sciences, biotechnology, artificial intelligence, and advanced technologies.

Saudi Arabia is actively enhancing its efforts to attract foreign investments across various sectors. The recent update to its investment law aligns with international best practices to create a more favorable business environment.

Announced in August, the new legislation replaces the Foreign Investment Law of 2000, aiming to ensure equal treatment for domestic and foreign investors. At the launch of the new law, Saudi Investment Minister Khalid Al-Falih stated that the legislation “reaffirms Saudi Arabia’s commitment to creating a welcoming and secure environment for investors.”

In January, Hassan Al-Huwaizi, president of the Federation of Saudi Chambers of Commerce and Industry, announced that the number of Saudi foreign business councils had reached 70, including those with major global economic players such as China, the US, Japan, and the UK, as well as Italy, France, and the UAE.

The recent reestablishment of the business council with Canada in July is the latest step in a plan led by the federation to strengthen the Kingdom’s international trade relationships as part of the Vision 2030 economic diversification strategy.

Topics: main

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