Startup Wrap – Saudi and Egyptian startups lead funding activity

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Updated 01 October 2024
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Startup Wrap – Saudi and Egyptian startups lead funding activity

CAIRO: Funding activity flourished in the Middle East and North Africa region, driven largely by Saudi and Egyptian startups.

The region experienced a variety of funding rounds across diverse sectors, alongside the graduation of accelerator programs.

Saudi startup Blend successfully raised SR5 million ($1.3 million) in a pre-seed investment round backed by a group of angel investors.

These investments aim to develop innovative tech solutions serving the restaurant, cafe, hypermarket and cloud kitchen sectors.

Founded last year by Omar Al-Lihyan, Blend offers a system that integrates multiple food delivery platforms into a single screen. This allows restaurant owners to efficiently manage orders and items while easily tracking reports. The company has already integrated with five local delivery applications.

“As the only local Saudi company serving this sector, we have a deep understanding of the real challenges and technical needs that business owners face when dealing with delivery applications,” Al-Lihyan said.

The company said in a press release it planned to expand to other Gulf countries, including Kuwait and Bahrain, by the end of next year and across the region by the end of 2026.

These developments come at a time when the restaurant and cafe sector was undergoing significant changes in line with Saudi Vision 2030, which aims to attract tourists and increase the population in the Riyadh region to 15 million people, according to the press release.

Al-Lihyan said new players were expected to enter the market and that 30 percent of Blend’s customers had not yet started their operations.

Blend has graduated from several programs supporting startups, including the Misk Accelerator and MVPLab Accelerator under the National Information Technology Development Program, and has a presence at the Zaka Center under Monsha’at.

Qardy secures seven-figure pre-seed round to boost digital lending for MSMEs in Egypt

Qardy, a digital lending marketplace for financial institutions to fund micro, small and medium enterprises, has successfully secured a seven-figure pre-seed round of investment.

The funding round saw participation from White Field Ventures, Vastly Valuable Ventures and other angel investors.

Since its soft launch in late 2022, Qardy claims to have become a trusted partner for MSMEs and financial institutions. The company said it had more than 1,000 corporate clients and had facilitated loan transactions worth about $12 million.

Qardy offers a range of financial programs to support MSMEs with their working capital and capital expansion needs through a network of financial institutions, including national and commercial banks, leasing, factoring and microfinance companies.

“We are thrilled to have reached this important milestone in our journey,” Chief Operating Officer Tamer El-Manasterly said.

“The support and trust of our investors have been instrumental in driving our growth and enabling us to expand our reach and impact in the market. This investment will allow us to further enhance our services, as well as accelerate our plans for expansion in Saudi Arabia and the region,” he said.

500 Global, a key investor, expressed confidence in Qardy’s mission to democratize access to financial services.

Amal Dokhan, managing partner at 500 Global, said: “We are thrilled to support Qardy in their journey toward empowering businesses with accessible and efficient financial solutions. We are confident in their ability to drive positive change in the fintech sector.”

Kapil Agrawal, managing director at White Field Ventures, echoed the sentiment and said Qardy had the potential to disrupt the lending landscape in Egypt and Saudi Arabia.

“Qardy’s adept execution capabilities and unwavering commitment to customer-centric solutions are in perfect alignment with our investment ethos. We are excited about the achievement Qardy has reached and are fully prepared to support their expansion into the KSA,” she said.

Lucky One raises $3m to scale consumer credit offerings in Egypt

Leading Cairo-based consumer credit fintech Lucky One has raised $3 million in a convertible note to bolster its path to profitability by the first quarter of 2025 and scale its credit lending services for the Egyptian masses.

The financing round saw participation from existing investors, including Lorax Capital Partners, KEM and DisrupTech Ventures.

The funds will be used to expand the platform’s credit services, enhancing its position as a leading consumer credit fintech in Egypt.

Co-founder and CEO Momtaz Moussa said: “We are thrilled to have successfully closed this round, which will fuel our ambitious growth plans and support our mission of providing accessible consumer credit solutions to underbanked Egyptians. This round reaffirms the trust our investors have placed in us and solidifies our commitment to achieving sustainable profitability while creating true value in the Egyptian market.”

On the path to sustainable profitability, Lucky One leverages its collection processes and low default rates to scale its consumer credit vertical effectively.

General Manager Mohamed Sayed highlighted the traction gained over the past five years and the company’s plans to offer a comprehensive range of financial services, from instant discounts and cashback to lending.

Co-founder and Chairman Ayman Essawy highlighted the company’s dedication to delivering innovative financial services and its commitment to profitability and regional expansion within the next 24 months, positioning Lucky One as a key player in the evolving Egyptian fintech sector.

Sandbox graduates seven startups in its fourth cohort

UAE-based Sandbox, the accelerator program backed by Oraseya Capital, has celebrated the graduation of seven startups as part of its fourth cohort.

Sandbox is a five-month program that provides startups with more than 50 hours of workshops, including access to financial analytics, marketing strategies and legal compliance programs.

The seven startups that made it to the finals are Qureos, Herogo, Lisan, Sthrive, Zoya, JobEscape and Opteam. Each received an investment of $150,000.

Twlm secures $266,000 investment to expand order pickup services in Saudi Arabia

Twlm said it has secured a SR1 million investment led by Saudi Arabia’s B Group, with participation from angel investors.

Founded last year by Ahmad Al-Dakheel, Abdulaziz Al-Rashoud, Abdullah Al-Dakheel and Walid Al-Qarny, Twlm offers an application that provides order pickup services from more than 250 restaurants and stores.

Twlm plans to use the investment to finance its expansion across the Kingdom, aiming to reach 1,000 restaurants and stores by the end of the year.


OPEC+ moves to set 2027 production baselines

Updated 28 May 2025
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OPEC+ moves to set 2027 production baselines

RIYADH: OPEC+ announced on Wednesday that it will establish a framework to determine new oil production baselines for 2027, marking a significant step in its long-term planning, said an official statement.

The alliance — comprising the Organization of the Petroleum Exporting Countries and partners including Russia—has been negotiating revised production baselines for several years. These baselines serve as reference points from which member states adjust their output levels.

According to the statement issued following the group’s meeting, said it had tasked the OPEC Secretariat with developing a mechanism to assess each country’s maximum production capacity. These assessments will form the basis for 2027 production targets across all member nations.

Since 2022, the group has implemented three tiers of output cuts. Two remain in place through the end of 2026, while the third is being gradually phased out by eight participating countries. No changes were made to the group’s current production policy at Wednesday’s session.

Due to the sensitive nature of the discussions, all sources spoke on condition of anonymity.

The 2027 baselines, once finalized, are expected to guide production policy after the current round of cuts expires.

Oil prices, which dipped below $60 per barrel in April—the lowest level in four years—following OPEC+’s decision to accelerate May output and amid trade tensions triggered by US tariffs, have since rebounded to around $65.


Saudi Arabia launches advanced manufacturing center to boost industrial innovation

Updated 28 May 2025
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Saudi Arabia launches advanced manufacturing center to boost industrial innovation

JEDDAH: Saudi Arabia has launched the Advanced Manufacturing and Production Center, a key initiative aimed at accelerating the Kingdom’s industrial transformation through the adoption of advanced technologies and sustainable practices.

Unveiled on May 28, the center is set to play a central role in promoting efficiency, flexibility, and growth within the manufacturing sector. It will utilize technologies associated with the Fourth Industrial Revolution to localize production and enhance Saudi Arabia’s competitiveness on the global stage.

The initiative also supports strategic industries while aligning with the objectives of Saudi Vision 2030, the country’s long-term plan to diversify its economy. A major focus is encouraging private sector collaboration to speed up the integration of emerging technologies into industrial operations.

The launch supports the National Industrial Strategy, introduced in October 2022, which aims to increase the number of factories in the Kingdom to approximately 36,000 by 2035. The strategy is designed to attract investment, scale up local production, and strengthen non-oil exports.

The Ministry of Industry and Mineral Resources is overseeing several projects to advance the Kingdom’s industrial and logistical infrastructure, positioning Saudi Arabia as a key player in global manufacturing and trade.

“Adopting the latest industrial technologies raises the efficiency of our industrial sector and enhances its competitiveness regionally and globally,” said Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, in a post shared by the ministry on X.

In an accompanying video, the ministry reiterated the center’s significance in meeting national goals: “The Advanced Manufacturing and Production Center opens doors to industrial investment opportunities and stimulates the sector to adopt new manufacturing technologies within industrial facilities.”

The center is supported by several initiatives and programs, including the Future Factories Program, which aims to modernize 4,000 factories across the Kingdom. The FFP focuses on integrating advanced manufacturing systems to boost efficiency and build more resilient supply chains—particularly in critical sectors such as food and petrochemicals.

According to its official website, the center serves as a hub for industrial innovation, providing consultancy services, training, and technological solutions. It is dedicated to fostering sustainability and competitiveness across the manufacturing sector.

Through these efforts, the center is expected to significantly contribute to Saudi Arabia’s Vision 2030 goals by localizing high-tech capabilities, attracting investment, and advancing the industrial sector’s role in the nation’s economic diversification.


Closing Bell: Saudi main index rises to close at 11,052

Updated 28 May 2025
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Closing Bell: Saudi main index rises to close at 11,052

RIYADH: Saudi Arabia’s Tadawul All Share Index advanced on Wednesday, closing higher by 127.58 points, or 1.17 percent, to reach 11,052.76, reflecting broad market optimism.

Trading activity remained robust, with a total turnover of SR4.57 billion ($1.21 billion). Of the listed stocks, 202 posted gains while 44 declined.

The Kingdom’s parallel market, Nomu, also recorded gains, rising 340.91 points, or 1.28 percent, to close at 26,932.95. The market saw 48 advancing stocks against 34 decliners.

Meanwhile, the MSCI Tadawul 30 Index climbed 15.12 points, or 1.08 percent, ending the session at 1,413.70.

Fawaz Abdulaziz Alhokair Co. emerged as the session’s top performer, with its share price jumping 5.77 percent to SR16.50.

Ataa Educational Co. and Kingdom Holding Co. followed closely, gaining 5.46 percent and 5.22 percent to close at SR61.80 and SR8.66, respectively.

On the downside, United Carton Industries Co. registered the steepest decline, falling 4.87 percent to SR46.85. Banan Real Estate Co. dropped 2.4 percent to SR4.48, while Nama Chemicals Co. slipped 1.78 percent to SR27.55.

On the announcements front, Saudi AZM for Communication and Information Technology Co. disclosed it has submitted a request to transfer its listing to the main market.

Additionally, the initial public offering for Flynas Co. began on May 28 and will conclude on June 1. The offering is priced at SR80 per share, with a retail tranche comprising 10.25 million shares. According to a statement, BSF Capital is the lead manager.

Alkathiri Holding Co. announced that its subsidiary has signed a 50-year lease agreement valued at SR143 million with the Asir Region Municipality to develop a commercial and hospitality project in the city of Abha.

According to a statement published on the Saudi stock exchange, the project will feature a four-star hotel with a capacity of 180 keys, alongside retail and entertainment facilities. The development aims to boost tourism and enhance commercial services in the Asir region.

The lease will officially begin upon the land handover by the Investment Committee of the Asir Region Municipality.

Shares of Alkathiri Holding closed Wednesday’s trading session at SR2.06, marking a 1.96 percent gain.

In a separate disclosure, Mufeed Co. announced that its board of directors has recommended to the ordinary general assembly the transfer of its statutory reserve balance — totaling SR3.49 million, as reported in the financial statements for the year ended Dec. 31, 2024 —to retained earnings.


Saudi Arabia’s Asir region revitalizes 95% of stalled projects

Updated 28 May 2025
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Saudi Arabia’s Asir region revitalizes 95% of stalled projects

  • Asir is a vast region in the Kingdom with a population exceeding 2 million people
  • Interest from global players seeking early opportunities in the region’s evolving landscape has grown

ABHA: Saudi Arabia’s Asir region has successfully revitalized 95 percent of its previously delayed project, an important milestone that is strengthening investor confidence as the region moves forward with SR29 billion ($7.73 billion) worth of initiatives across various sectors.

In an interview with Arab News, Hashim Al-Dabbagh, CEO of Asir Region Development Authority, stated that a dedicated committee, chaired by Asir Gov. Prince Turki bin Talal, was formed several years ago to tackle long-standing investment challenges that had stalled progress in the region.

“The total number of cases that have been brought to this committee to address has been 63, all brought to the table,” Al-Dabbagh said.

He continued: “Of these 63 cases that have been brought to this committee to address and to solve, 60 cases have been solved, and three are in the pipeline right now, and they’re working on them, and they’re going to solve them relatively soon.”

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Of the 60 resolved, 57 were concluded with outcomes that satisfied investors, reflecting a resolution rate of nearly 95 percent.

“This committee and the work that they have done has created some very positive vibes across the investment ecosystem in Saudi Arabia, which you sense in this forum because there are some very large investors that are coming to Asir, some coming back to Asir which had not been interested in this region in the past,” Al-Dabbagh said.

The board operates in collaboration with various public and private entities, including ASDA, the Ministry of Investment, the Ministry of Tourism, the Tourism Development Fund, and King Khalid University, ensuring a unified approach to accelerating investor activity in the region.

This resolution mechanism plays a key role in supporting the region’s development strategy, which focuses on unlocking investment potential across various sectors.

“First of all, we have a strategy that drives everything that we are doing,” Al-Dabbagh said.

He added: “The strategy has been approved by the center of government, and it says that Asir should be a year-round preeminent destination, so already we know that we need to focus on the tourism sector and complementary and adjacent sectors to the tourism sector. That’s one, and that gives us a lot of momentum in working with the government ecosystem and the private sector.”

Al-Dabbagh emphasized that Asir is more than just a tourism destination, noting that it is a vast region in the Kingdom with a population exceeding 2 million people.

“Within the Asir Development Authority, we have a whole department called Economic Development Department, and they are working diligently this year on sectoral studies across the board.”

He added: “This includes, obviously, tourism-related sectors, but also other ones, so just as an example, we are looking at sports, we are looking at construction. We’re looking at fisheries and agriculture. We’re looking at renewable energy. We’re looking at mining among other sectors.”

The authority is also aligning its economic strategy with educational institutions to ensure the region’s workforce is equipped to meet the demands of upcoming sectors.

“We are working closely with King Khalid University, the TVTC (Technical and Vocational Training Corp.), Bishop University, and other educational institutions to align the strategies and to make sure that their graduates are able to find jobs in the opportunities that are going to be realized as we realize this strategy,” he said.

On attracting investments, Al-Dabbagh stated: “What I call the investment ecosystem in Asir, it’s the framework that we use to assess investments, is comprised of three components. The first component is the Invest in Asir committee, and that’s headed by Prince Turki in his capacity as the chairman of the Aseer Development Authority and includes all the public and private sectors.”

He explained that the region offers a compelling opportunity for early movers due to its untapped potential, strategic government backing, and the ability to enter key sectors before they reach full maturity, providing investors with a critical advantage in shaping long-term development.

“Asir relative to those mature, tourism destinations, offers relatively less mature areas, so when they’re coming in, they’re coming in early and they’re going to have a ... not a first mover advantage, but an early mover advantage compared to people that are going to see this place for five years or 10 years down the road when all these incumbents are already on the ground.”

Attracting FDIs

Foreign direct investment is also gaining momentum in Asir, with growing interest from global players seeking early opportunities in the region’s evolving landscape.

“One of the speakers in today’s forum was Fatih (who is managing partner of FTG Development), and they are looking at an investment worth billions in Asir. That is just one example, and foreign direct investors, they look for successful local investors to partner with,” Al-Dabbagh said.

He concluded: “Our doors are open. We’re very happy to meet with the investors from anywhere.”


EU lifts economic sanctions on Syria

Updated 28 May 2025
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EU lifts economic sanctions on Syria

BRUSSELS: The European Union lifted economic sanctions on Syria on Wednesday in an effort to support the country’s transition and recovery after the toppling of former president Bashar Assad.
The move follows a political agreement reached last week by EU foreign ministers to lift the sanctions.
The EU will keep sanctions related to Assad’s government and restrictions based on security grounds, while also introducing new sanctions against individuals and entities connected to a wave of violence in March, the Council said.
“The Council will continue monitoring developments on the ground and stands ready to introduce further restrictive measures against human rights violators and those fueling instability in Syria,” it added.