AI startup DXwand to set up local office in Riyadh

Egypt-born generative artificial intelligence startup DXwand is leaving no stone unturned as it aims to get closer to its clients with an on-ground team. (SPA)
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Updated 21 July 2024
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AI startup DXwand to set up local office in Riyadh

  • DXwand’s expansion strategy firmly aligned with Kingdom’s Vision 2030

CAIRO: Saudi Arabia’s growing business landscape has encouraged regional and global companies to establish a local presence in the burgeoning market. 

Egypt-born generative artificial intelligence startup DXwand is leaving no stone unturned as it aims to get closer to its clients with an on-ground team. 

In an interview with Arab News, Ahmed Mahmoud, CEO of DXwand, shared the company’s strategic insights into establishing a local office in Riyadh by mid-year. 

“We already started formalities and got the MISA (Saudi Arabia’s Ministry of Investment) license. The exact location is still in discussion, but it shall be in the amazing capital of Saudi, Riyadh,” he said. 

One step closer 

Mahmoud emphasized the importance of delivering value and impact swiftly with quick wins and is also keen to demonstrate the company’s differentiated position in technology and long-term ambitions in partnerships. 

He said: “That objective is planned to be achieved with local partners, in technology and other industries, to ensure our success. We already have several partners in place in Saudi, and our plan is to multiply this number by the end of 2024.” 

DXwand’s expansion strategy is firmly aligned with Saudi Arabia’s Vision 2030, focusing on economic diversification and digital transformation. 

Mahmoud said: “By focusing on delivering impact on Saudi’s focus areas of its 2030 vision, especially in economic diversification, quality of life, environmental sustainability, and culture and entertainment, we have set long-term goals and corresponding initiatives to support and impact these areas.” 

He further explained: “DXwand’s expansion always involves local partners who are industry-focused or technology builders, leading to larger contributions to each country’s economy, delivering faster and deeper impact, and achieving marvelous results with local talent and resources who understand the culture and local pains very well.” 

One of these partners includes Gulf business expansion platform AstroLabs which aims to leverage DXwand’s strong presence in the US, the UAE, and Egypt. 

Mahmoud emphasized the importance of working with official bodies to enhance their sector’s services. 

“Collaboration with the Saudi government is a key cornerstone to deliver our expansion vision, and we are in the process of identifying potential collaboration areas of focus and concerned government entities,” he said.

This collaboration is intended to support DXwand’s alignment with the country’s evolving regulatory environment. 

Our solutions align with the country’s goals to enhance digital infrastructure, improve government services, and foster innovation.

Ahmed Mahmoud, CEO of DXwand

“Regulations for AI is an emerging area not just for Saudi but also worldwide. We believe in early engagement with regulators to benefit both parties in understanding risks and building proactive mitigations. We believe AI companies should be responsible, regardless of regulations, to build safe AI technology and ensure it follows standards of privacy and safety worldwide,” Mahmoud said.

“This shall help us adapt to any regulatory needs in Saudi as we are proactively mitigating risks and ensuring a safe experience for our community,” he added. 

Mahmoud said the company has been growing yearly by a multiple of two since 2020,  and he is looking to maintain this trajectory along with delivering two nationwide impact initiatives per year.

He added that Saudi Arabia would be a major geography for one of these national impact initiatives in 2024. “We believe Saudi has all needed success elements to deliver not just one of our national initiatives, but it could even be the best delivered,” he said. 

Mahmoud also revealed that the company has three new products in the pipeline, leveraging their generative AI technology, although details are still under wraps. 

“With the help of our co-build partners, we have three new products in the pipeline leveraging our same generative AI technology. We can’t at the moment share more details about them while we shall have them announced with relevant partners very soon,” he said.

Expanding to Saudi Arabia is pivotal for DXwand’s strategy due to factors like alignment with Vision 2030, market opportunities, and government support, Mahmoud highlighted. 

He further explained the alignment of DXwand’s AI solutions with Vision 2030’s ambitions for economic diversification and digital transformation.

“Our solutions align with the country’s goals to enhance digital infrastructure, improve government services, and foster innovation,” he said. 

He added that significant investments in sectors such as healthcare, education, financial services, and tourism present lucrative opportunities for DXwand. 

Government support for a knowledge-based economy and technology investment also aligns with his company’s objectives, Mahmoud said. 

Initiatives to attract foreign investments and create a favorable business environment make Saudi Arabia a strategic location that offers access to other Middle Eastern markets, serving as a springboard for regional expansion, Mahmoud explained. 

The tech-savvy Saudi population provides a receptive market for AI-driven solutions. “This demographic is receptive to adopting new technologies, creating a conducive environment for AI solutions,” he said.

Business fundamentals 

Regarding funding, DXwand has raised $6.7 million since its foundation, with the latest $4 million series A round closing in December 2023. This investment will ignite the establishment of DXwand in Saudi Arabia, fostering strategic partnerships with local partners, educational institutes, and strategic clients. 

Mahmoud said: “We plan to use part of the fund to ignite activities of first establishment of DXwand in Saudi and fostering strategic partnerships to build an ecosystem that both delivers DXwand’s ambition of growth while partnering with Saudi to impact and accelerate the execution of its 2030 vision outcomes and land nationwide impact.” 

Addressing industry challenges in Saudi Arabia, Mahmoud discussed the hype surrounding generative AI and DXwand’s  approach to finding niche solutions. 

He noted that DXwand’s platform, DXP, is designed to solve issues such as high large language model costs, lack of managed accuracy measurement, and slow time to market. 

“DXwand’s platform DXP offers over 90 percent cost optimization leveraging low-end LLM offerings, while increasing accuracy by over 30 percent using one tool that enables experiments to measure and RAG (retrieval-augmented generation) to optimize accuracy and costs easily,” Mahmoud said. 

DXwand operates on a subscription-based business model, selling its products with annual or monthly subscriptions relevant to the problem size, represented by conversation volume or user numbers. 

Mahmoud stated that DXwand is a profitable company with a healthy financial model, designed to ensure profitable unit economics. 

The motivation behind founding DXwand stemmed from Mahmoud’s experience at Microsoft, where he saw the potential for AI ventures focused on the region’s cultural and linguistic needs. 

“This potential was not served and it gave me the temptation to take a leap of faith and resign from such a reputable international Silicon Valley giant to start DXwand’s journey,” he stated. 

Key performance indicators for DXwand include LLM cost optimization, accuracy overtime, new sign-ups, new contracts, new partners, and time to market. 

Mahmoud emphasized the importance of managing growth carefully in Saudi Arabia to maintain reputation and customer experience. 

“For Saudi specifically, as we are still newly introduced, I would focus on new partnerships, new client sign-ups, and their experience with costs and accuracy optimization,” he noted. 

Mahmoud assesses the current market landscape in Saudi Arabia for AI and technology as rapidly evolving, with numerous opportunities and challenges. 

He highlighted the Saudi government’s leadership and investments in economic diversification, digital transformation, artificial intelligence, and talent development. 

“With government leadership and investments in economy diversification, digital transformation, artificial intelligence, and talent development, we foresee a great growth opportunity with such an emerging market with a remarkable GDP (gross domestic product) and population,” he stated. 

Regarding industry forecasts, Mahmoud anticipates a downturn in adoption due to economic factors and the costs of operating generative AI, impacting their business cases. However, he sees this as an opportunity. 

“We foresee a downturn in adoption impacted by economic factors and costs of operating generative AI and its reflections on their relative business cases, which is a great opportunity for the upcoming year or two to leverage this challenge if you have a solution that can deliver such technology with cost efficiency and ability to scale fast,” he explained.


Jordan tourism revenues climb 11.9% in H1 despite regional headwinds

Updated 17 July 2025
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Jordan tourism revenues climb 11.9% in H1 despite regional headwinds

  • Saudi Arabia led the region with a 148% rise in international tourism revenue in 2024
  • Spending by Jordanians on outbound tourism rose 3.3% year on year

RIYADH: Jordan’s tourism revenues rose 11.9 percent year on year in the first half of 2025 to reach $3.67 billion, underscoring the sector’s resilience amid geopolitical tensions in the region. 

According to data from the Central Bank of Jordan, the growth came despite a slight setback in June, when monthly revenues fell 3.7 percent to $619.2 million, state-run Petra news agency reported. 

 Turki Faisal Al-RasheedDespite this, Jordan’s performance reflects a broader tourism surge across the Middle East, with a May release by the World Travel & Tourism Council showing the sector added $341.9 billion to gross domestic product and 7.3 million jobs in 2024, with projections of $367.3 billion and 7.7 million jobs in 2025. 

Saudi Arabia led the region with a 148 percent rise in international tourism revenue in 2024, according to its Ministry of Tourism, while Oman, the UAE, and Qatar continued to attract strong visitor flows through investment, connectivity, and major events. 

Citing the central bank data, Petra said: “Tourism revenues from Asian visitors surged by 42.9 percent during the first half of the year, while revenues from European tourists increased by 35.6 percent, Americans by 25.8 percent, Arabs by 11.5 percent, and other nationalities by 43.0 percent.”  

It added: “Conversely, revenues from Jordanian expatriates visiting the Kingdom registered a modest decline of 0.8 percent over the same period.” 

Spending by Jordanians on outbound tourism rose 3.3 percent year on year in the first half of 2025, reaching $999.7 million, despite a 22.7 percent decline in June alone, when spending fell to $195.6 million. 

This comes on the back of a strong start to 2025, with Jordan welcoming 1.51 million visitors in the first quarter — a 13 percent increase from the same period last year — while receipts rose 8.85 percent to 1.22 billion Jordanian dinars ( $1.72 billion), according to the Ministry of Tourism and Antiquities’ first-quarter report. 

The recovery was further supported by the return of air connectivity, which had nearly disappeared in 2024. New agreements with European carriers expanded the number of low-cost direct routes to 25 this year, including 20 to Amman for the summer and five to Aqaba in the winter. These routes are expected to bring in around 270,000 travelers, the report added. 

Looking ahead, the ministry said it is developing a new National Tourism Strategy for 2025–2028, building on the previous plan and aligning with the country’s Economic Modernization Vision. 

The updated roadmap aims to diversify source markets, including China, India, Russia, Africa, and Southeast Asia, and promote high-potential segments such as medical, wellness, faith-based, adventure, and meetings, incentives, conferences, and exhibitions, or MICE, tourism. 


EU pledges $46.4bn for MENA renewables, borders, and migration

Updated 17 July 2025
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EU pledges $46.4bn for MENA renewables, borders, and migration

JEDDAH: Renewable energy, border security, and migration pathways in the Middle East and North Africa will receive €42.5 billion ($46.4 billion) from the EU from 2028, it has been announced.

This doubled financial commitment, under a new funding instrument, aims to enhance stability and cooperation in the region.

Speaking during a press conference in Brussels on July 17, EU Commissioner for Democracy and Demography Dubravka Suica said the increased budget reflects the bloc’s strategic shift toward deeper cooperation with countries in region.

“This is a strong financial toolbox, with which we will invest in stability, security and prosperity, through mutually beneficial partnerships with our Southern neighbors in the Middle East, North Africa and the Gulf,” she said, emphasizing that the Mediterranean is not only a region of challenges but also one of opportunities.

Suica further noted that the EU will support partner countries in addressing the underlying causes of socio-economic fragility, which she said are central to political instability and radicalization.

She added that the bloc will also confront the challenges of the green transition by investing in renewable energy projects, benefiting citizens on both sides of the Mediterranean.

“These increased funds will enable us to respond more effectively to an increasingly volatile geopolitical context right at our doorstep,” the commissioner said.

She stressed that the stability and prosperity of the Mediterranean are directly linked to Europe’s own.

“Their safety is our safety. Their success is our shared success. Their protection of borders is also ours.”

Suica described the Multiannual Financial Framework as an instrument that will strengthen the union, both internally and internationally.

“This new framework enables us to better protect our interest on a global stage and protect our values and interests in an increasingly complex geopolitical context,” she concluded.


Closing Bell: Saudi bourses end week in red at 11,007

Updated 17 July 2025
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Closing Bell: Saudi bourses end week in red at 11,007

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Thursday, shedding 31.76 points, or 0.29 percent, to close at 11,006.98.

The benchmark index recorded a total trading turnover of SR4.19 billion ($1.12 billion), with 125 stocks advancing and 117 declining.

The Kingdom’s parallel market Nomu also slipped, losing 50.11 points to close at 27,294.97.

The MSCI Tadawul Index dropped 0.32 percent to settle at 1,410.87.

LIVA Insurance Co. was the best performer on the main market, with its share price surging 9.94 percent to SR13.93.

Emaar The Economic City saw its shares rise by 5.15 percent to SR13.69, while Alistithmar AREIC Diversified REIT Fund gained 4.57 percent to reach SR9.15.

Tourism Enterprise Co. recorded the steepest decline, falling 6.45 percent to SR0.87.

On the announcements front, Lana Medical Co. said it secured multiple contracts worth SR57.1 million from the Ministry of Health.

According to a Tadawul statement, the first contract, valued at SR53.5 million, involves the collection and storage of hazardous waste at health centers, hospitals, and specialized facilities in the Al-Jouf region and Al-Qurayyat Governorate.

The second contract, worth SR3.6 million, covers the transportation of medical waste to the Riyadh First Health Cluster.

The company stated that the impact of these 60-month contracts will be reflected in its financial results starting in the fourth quarter of 2025.

In a separate filing, Lana Medical Co. announced a two-year agreement valued at SR10 million with the National Unified Procurement Co. to manage medical waste.

Shares of Lana Medical Co., listed on the Nomu parallel market, rose 7.98 percent to close at SR36.


Saudi Arabia’s retail real estate growth prospects strong: S&P Global 

Updated 17 July 2025
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Saudi Arabia’s retail real estate growth prospects strong: S&P Global 

RIYADH: International retail brands attracted by social and economic shifts in Saudi Arabia are set to deliver real estate sector growth to the Kingdom, according to an analysis.

In its latest report, S&P Global stated that the residential real estate sector in the nation also appears strong, with young Saudi families relocating to cities in search of work opportunities. 

Strengthening the real estate sector is one of the crucial goals outlined in Vision 2030, as Saudi Arabia continues to diversify its economy away from oil and position itself as a global business and tourist destination. 

The Kingdom’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.

In its latest report, S&P Global said: “Saudi retail real estate growth prospects are strong. Significant social and economic changes in the Kingdom are making it a major target market for international brands in the fashion, luxury, and food and beverage segments. As a result, demand for premium retail space is increasing.” 

In June, global real estate consultancy Knight Frank, also echoed similar views, stating that Saudi Arabia’s commercial real estate sector is witnessing exponential growth, with rents for Grade A office spaces in the Kingdom’s capital reaching SR2,700 ($719.95) per sq. meter by the end of the first quarter, representing a 23 percent rise compared to the same period in the previous year. 

In its latest analysis, S&P Global noted that Saudi Arabia’s retail landscape is expected to face several challenges, including oversupply, particularly in the shopping mall sector. 

“Saudi retail real estate could face a supply wall. Knight Frank forecasts Riyadh’s supply to grow by 50 percent by 2027 and Jeddah’s to grow 75 percent over the same period. This could lead to rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies,” said S&P Global. 

The US-based agency further stated that the Kingdom’s retail real estate sector has strong growth prospects, provided that careful planning and market positioning are implemented, which are expected to help mall owners ensure long-term success.

In a broader context, the report projected that Dubai and Abu Dhabi are experiencing resilient demand and modest rental growth for retail real estate, with prime super-regional malls continuing to dominate the market, which has led to mall owners expanding their offerings.

S&P Global added that Dubai’s commercial real estate sector is booming, as vacancy rates remain at an all-time low of 8.6 percent, and demand for grade-A offices drives up rentals. 

“Supportive regulations for businesses, dynamic economic environment, and the low tax regime sustains the city’s attractiveness for global businesses and family offices,” said the report. 

S&P Global cautioned that oversupply in the oil market will continue to outweigh slow oil demand growth through 2025 and beyond, and this could negatively impact the growth of real estate sectors in both Saudi Arabia and Dubai. 

“Unfavorable tariffs could also lead to economic slowdown and weaker market sentiment. This could have some impact on residential prices and rents as we believe there is good correlation, despite Dubai’s economy being less reliant on oil. Saudi Arabia and its spending on Vision 2030 remain highly dependent on oil prices,” added the report. 

According to the analysis, the current ceasefire between Israel and Iran has reduced immediate regional credit stress; however, an escalated, prolonged geopolitical conflict could lead to an expatriate exodus from the region, severely impacting real estate prices and rents.


Syria announces sweeping tax reforms to boost transparency, investment

Updated 17 July 2025
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Syria announces sweeping tax reforms to boost transparency, investment

RIYADH: Syria’s Finance Ministry has announced a major overhaul of the country’s tax system, set to take effect in early 2026, as part of broader efforts to modernize fiscal policy, enhance transparency, and attract investment.

According to a statement carried by the state-run SANA news agency, the draft law for the new income tax system is currently open for public consultation until July 30. The reforms are designed to ease the burden on taxpayers, promote fairness, and stimulate economic activity through clearer and more equitable rules.

Under the proposed system, individuals earning less than $12,000 annually will be fully exempt from income tax, in a move aimed at supporting low-income earners.

Corporate tax rates will be tailored by sector, replacing the current “flat income committees” with a more transparent and structured mechanism.

The reforms will also unify multiple charges into a single tax fee to eliminate double taxation, while offering deductions for taxpayers who make verified social contributions.

Enhanced digital systems—including mandatory electronic invoicing and QR code integration—will be introduced to curb tax evasion and strengthen compliance.

To improve trust and streamline the resolution of tax disputes, the ministry plans to implement simplified procedures, with complex cases referred to a specialized tax court. Notably, the burden of proving income sources will shift from the taxpayer to the tax authority—a significant change from the existing framework.

In addition, incentives will be introduced for timely payment, and a separate initiative will address the settlement of outstanding tax dues to protect public funds without overburdening taxpayers.

The Finance Ministry said the changes reflect its commitment to building a fair, flexible, and modern tax environment that can support Syria’s broader economic recovery.