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Startup Wrap – Regional venture activity sees mix of funding, acquisitions, and accelerator graduations 

Startups across the region have secured investments and support. Shutterstock
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Updated 01 October 2024
Nour El-Shaeri 
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Startup Wrap – Regional venture activity sees mix of funding, acquisitions, and accelerator graduations 

Updated 01 October 2024
Nour El-Shaeri 

RIYADH: The startup ecosystem in the Middle East continues to evolve, marked by significant funding rounds, strategic acquisitions, and new investment initiatives. 

An alliance of investors and family offices based in the Gulf Cooperation Council has launched Waad Investment, a firm with a targeted value of SR750 million ($200 million), making it the largest such private entity dedicated to supporting growth-stage startups in the region, according to a release.

The alliance, led by Saudi businessman Yaser Al-Ghamdi, founder and chief investment operations officer of Waad Investment, involves a collaboration with the AlMajed and AlMisfer family offices to create a platform for entrepreneurial growth. 

Waad Investment is designed to foster the private sector’s role in driving innovation and economic development, with a particular focus on providing not only financial investments but also a network of connections, mentorship, and guidance to startups. 

“The company will bridge the financial gap many startups face and will offer comprehensive support that includes financial investment, mentorship, and guidance,” said Al-Ghamdi. 

The firm is part of a broader vision to enhance the innovation landscape in the GCC, with family offices and investors aiming to generate a diverse and sustainable economy based on knowledge and technology. 

15 startups graduate from the first cohort of TDF’s Grow Accelerator program 

The Tourism Development Fund, a national enabler of the sector in Saudi Arabia, showcased the progress of 15 startups, which have collectively attracted investments worth over SR18 million to date, in its latest demo day. 

The exhibition was for the graduates of the inaugural cohort of its “TDF Grow Accelerator” program at the King Abdullah Financial District Conference Center in Riyadh. 

The event attracted investment pioneers, entrepreneurs, media representatives, and key stakeholders within the tourism sector. 

Qusai Al-Fakhri, CEO of TDF, highlighted the critical role of the fund’s programs in promoting innovation and sustainable growth in the Kingdom’s tourism industry. 

In a speech delivered on his behalf by Prince Saud Bin Mohammed, executive director of TDF Grow, Al-Fakhri expressed pride in the achievements of the startups, and said: “This success reflects our ongoing commitment to supporting entrepreneurial ideas and promising initiatives that contribute to efficiently implementing the national tourism strategy and reinforcing the Kingdom’s standing as a global tourism destination.” 

KBW Ventures invests in Saudi Arabia’s KASO 




KASO co-founders Manar Al-Kassar and Ahmed Soliman. KASO

KBW Ventures, led by Prince Khaled bin Al-Waleed, has announced an investment in Saudi business-to-business food tech startup KASO.  

The company specializes in streamlining procurement processes for the food and beverage sector by digitizing and automating the logistics between restaurants and suppliers. 

Prince Khaled noted that KASO had been under KBW Ventures’ consideration for some time before the investment was made.  

“We want to grow our allocation into B2B SaaS. KASO not only checks the boxes on return parameters; we also like to see visibility of 10x return for early stage opportunities,” Prince Al-Waleed said.  

This investment aligns with KBW Ventures’ broader strategy of supporting sustainability-driven sectors, including food security, alternative proteins, carbon capture, and agricultural technology.

UAE’s Powder Beauty secures pre-series A funding to scale in Saudi Arabia 




Powder Beauty founders Ayat Toufeeq, Amina Grimen, and Marriam Mossall. Powder Beauty

UAE-based e-commerce platform Powder Beauty has successfully closed its pre-series A funding round, led by Sophia Collective and NKEHL, Nithin and Nikhil Kamath. 

The round also saw participation from several regional angel investors, including Maha Taibah. The specific value of the funding was not disclosed. 

Founded in 2018 by Ayat Toufeeq, Amina Grimen, and Marriam Mossall, Powder Beauty focuses on offering eco-conscious beauty products to its customers. 

“With this funding round, we’re driven to build on our leading position in this largely untapped but fast-growing market,” Toufeeq, CEO of Powder Beauty, said. 

“We’re delighted to have received this support from investors like the Sophia Collective, a platform whose vision aligns strongly with ours,” she added. 

The newly secured funds will be used to scale the company’s operations in Saudi Arabia, furthering its growth in the region. 

UAE’s Verofax secures $3m in a bridge round 

UAE-based Web3 services provider Verofax has secured $3 million in a bridge funding round, led by King Abdullah University for Science and Technology, Plug & Play Tech Center, Navig8 Group, and Trove Capital UK.

Additional participants included Jawa Brothers Advisory, Alzamil Pedco CVC, and Tracecore CVC. 

Founded in 2018 by Wassim Merheby and Jamil Zablah, Verofax leverages Web3 technologies like augmented reality, blockchain, and artificial intelligence to enhance marketing experiences. 

The new funding will support Verofax’s expansion in the Middle East and Europe, including AI-powered guides for the GCC and sports fan guides in the EU and North America. 

In 2022, Verofax raised $1.5 million in a pre-Series A round, led by Benson Oak Ventures, with participation from 500 Global, Wami Capital, and Vernalis Capital. 

Kuwait’s Sakan acquires Qatari proptech Hapondo 




Abdullah Al Saleh, CEO of Sakan and Ahmad Al-Khanji, co-founder and CEO of Hapondo. Sakan

Kuwait-based proptech company Sakan has acquired Hapondo, a Qatari real estate marketing platform, for an undisclosed amount. 

Sakan, established in 2016 by Abdullah Al-Saleh, operates as a real estate marketplace across several GCC countries, including Kuwait, Saudi Arabia, Oman, and Bahrain. 

Hapondo, founded in 2019 by Ahmad Al-Khanji, specializes in providing a comprehensive map and photo search for residential units in Qatar. 

The acquisition is aimed at expanding Sakan’s services in Qatar by leveraging Hapondo’s existing network and relationships with clients and real estate developers. 

Web3 streaming platform myco raises $10 million in Series A 

UAE-based Web3 streaming platform myco has completed the first closing of its Series A funding round, raising $10 million at a post-money valuation of $80 million. 

The round was backed by Daman Investments, Aptos Labs, B Digital, Mocha Ventures, Art3 Foundation, Ghaf Capital Partners, Mix Media Network, Factor6 Capital Partners, and Enjinstarter, alongside 88 accredited investors who participated through Republic.com. 

Founded in 2021 by Umair Masoom and Somair Rizvi, myco is a content streaming application that integrates ad-based and subscription video on demand within a decentralized environment. 

The fresh funds will support myco’s expansion into new markets and partnerships, following its recent growth into North America and Egypt. The company plans to conclude a second closing of their series A by early 2025. 

“Myco has already demonstrated our ability to scale in key markets, achieving exceptional metrics in user growth, retention, revenue, and community building. With this new capital, we plan to replicate our success by expanding into markets with similar demographics and strong regional partnerships.” said Masoom, managing director of the firm. 

Bahrain’s Tenmou invests in two local startups 




Nawaf Al-Kooheji, CEO of Tenmou. Tenmou

Bahrain-based angel investment company Tenmou has invested in two Bahraini startups – Tajweed and Travilege. 

Founded in 2021 by Salman Al-Marzooq, Travilege is an enterprise resource planning software designed for travel agencies, while Tajweed, founded by Khalil Alqaheri, is a digital platform focused on teaching the Holy Qur’an and Arabic language. 

Tenmou’s investment aligns with its strategy to promote angel investing in technology startups that have rapid expansion potential. 

The company is focused on fostering a robust ecosystem for tech-driven businesses in Bahrain and the wider region.

Topics: startups Startup Wrap Waad Investment

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Saudi-US bilateral accords ‘not that connected’ to Israel normalization

Updated 23 sec ago
Nour El-Shaeri
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Saudi-US bilateral accords ‘not that connected’ to Israel normalization

Updated 23 sec ago
Nour El-Shaeri

RIYADH: Saudi Arabia’s foreign minister said on Thursday that some of the bilateral agreements the kingdom has been negotiating with Washington are “not that tied” to the normalization of Saudi relations with Israel and are “moving ahead.”

He noted that potential US-Saudi agreements on trade and artificial intelligence are “not tied to any third parties” and “can progress probably quite quickly.”

“Some of the more significant defense cooperation agreements are much more complicated. We would certainly welcome the opportunity to finalize them before the end of the Biden administration's term, but that’s reliant on factors outside of our control,” he said.

“The other work streams are not that connected, and some of them are progressing quite quickly, and we hope to see movement forward.”

Ruling out the possibility of Saudi Arabia recognizing Israel without the establishment of a Palestinian state, Prince Faisal stated that this remains the only viable solution, regardless of Israel’s acceptance.

Speaking at the Future Investment Initiative summit in Riyadh, he emphasized that the creation of a Palestinian state is rooted in international law and UN resolutions.

“In reality, the establishment of a Palestinian state is not tied to whether or not Israel accepts it; it’s tied to the principles of international law,” he said. “The UN resolutions that led to the establishment of the state of Israel clearly envisioned a Palestinian state as well, so we need to make that happen.”

Prince Faisal asserted that normalization of Saudi-Israeli ties is “off the table” until there is a resolution regarding Palestinian statehood. He further highlighted the broader implications, stating, “The security of the region as a whole is at risk if we do not address the rights of the Palestinians.”

Addressing the ongoing crisis in Gaza, he called for a cease-fire, emphasizing the dangers of an Israeli overreaction following the events of October 7th. “We have seen the reality that Israel’s reaction and its continuing military assault have led to a humanitarian catastrophe,” he remarked. He described the situation in northern Gaza as dire, with blockades and no safe zones for civilians, stating, “That can only be described as a form of genocide. It is certainly against humanitarian law, and that is feeding a continuing cycle of violence.”

On the prospects of an immediate cease-fire, Prince Faisal expressed caution, saying, “I hope it’s the case that we can see a cease-fire in the immediate hours, in the immediate short term. I’m not sure that that’s the case. I don’t have the details.”

He acknowledged US efforts to facilitate negotiations, adding, “We are not part of the direct negotiations, but we certainly support the efforts that the US has undertaken to find a pathway to a ceasefire. I hope it comes to fruition.”

He noted that previous attempts at cease-fire negotiations had failed due to new demands from Israel. “In most of those instances where the talks collapsed, it has been because new requirements or demands were added on the part of Israel,” he explained.

Prince Faisal also addressed Saudi Arabia’s position on Lebanon, emphasizing a hands-off approach. “We have never fully disengaged. But we believe it’s up to the Lebanese politicians to seek a direction that puts Lebanon on the right track,” he stated.

He added: “It’s not up to any outside influence, any outside countries, or any outside powers to tell the Lebanese what to do or to influence the political process in Lebanon. That is our opinion.”

Regarding relations with Iran, Prince Faisal indicated that recent discussions focused on regional de-escalation. “I hope that Iran, like us, is working toward regional de-escalation on all fronts, not just in Lebanon. That’s very much the focus of my conversations with my Iranian counterpart,” he said. While he could not be “confident of anything that is in the control of other parties,” he emphasized the importance of avoiding further escalation.

“I have made it clear to our Iranian counterparts that it is important to avoid any further escalation. My sense is that they realize the risks of escalation and would prefer to avoid it. But, of course, they have their own strategic calculations.”

‘Blue tech’ needs private sector boost, says RSG official

Updated 48 min 41 sec ago
Nadin Hassan
Nour El-Shaeri
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‘Blue tech’ needs private sector boost, says RSG official

Updated 48 min 41 sec ago
Nadin Hassan Nour El-Shaeri

RIYADH: Private sector firms need to lead the way and invest in so-called blue tech in order to protect the world’s oceans, according to a leading official at Red Sea Global.

Speaking to Arab News during the Future Investment Initiative in Riyadh, Raed Al-Basseet, environment and sustainability officer at the company, called on businesses to adopt innovative approaches that contribute to environmental preservation. 

This includes blue tech — which refers to refers to any innovation made for the sea.

Al-Basseet also reaffirmed RSG’s commitment to sustainability — and how this reflects on the project’s return on investment. 

He called on the private sector to take “the first steps” and invest in “cutting edge approaches to preserving the environment,” adding: “Enhancing the environment and … conservation is the right thing to do for the private sector, but also when we realize the first benefits out of that, and out of these initiatives, we will also have real return on investment as a developer, as a private sector, from that investment.” 

Al-Basseet was keen to emphasis RSG’s focus on environmentalism, saying the company has “sustainability at its DNA.”

He added: “And that actually, from a practical sense, means that (in) all of our activities, master planning and development, design, construction, delivering on these projects, as well as operating these projects, sustainability is at the core of everything that we do.” 

He emphasized that the long-term success of the projects relies on preserving natural assets, making sustainability integral to achieving favorable outcomes. 

Highlighting key initiatives, Al-Basseet pointed out the company’s significant investment in blue tech, adding: “The investment in technology does require the support of a multitude of stakeholders. Private sector does have a role. Red Sea Global is very proud that they have in the 

Al-Basseet also spoke about the company’s efforts in coral conservation, including supporting research that is happening now within the Red Sea.

Topics: FII8

Saudi-US bilateral accords ‘not that connected’ to Israel normalization

Updated 31 October 2024
Nour El-Shaeri
Follow

Saudi-US bilateral accords ‘not that connected’ to Israel normalization

Updated 31 October 2024
Nour El-Shaeri

RIYADH: Saudi Arabia’s foreign minister said on Thursday that some of the bilateral agreements the kingdom has been negotiating with Washington are “not that tied” to the normalization of Saudi relations with Israel and are “moving ahead.”

He noted that potential US-Saudi agreements on trade and artificial intelligence are “not tied to any third parties” and “can progress probably quite quickly.”

“Some of the more significant defense cooperation agreements are much more complicated. We would certainly welcome the opportunity to finalize them before the end of the Biden administration's term, but that’s reliant on factors outside of our control,” he said.

“The other work streams are not that connected, and some of them are progressing quite quickly, and we hope to see movement forward.”

Ruling out the possibility of Saudi Arabia recognizing Israel without the establishment of a Palestinian state, Prince Faisal stated that this remains the only viable solution, regardless of Israel’s acceptance.

Speaking at the Future Investment Initiative summit in Riyadh, he emphasized that the creation of a Palestinian state is rooted in international law and UN resolutions.

“In reality, the establishment of a Palestinian state is not tied to whether or not Israel accepts it; it’s tied to the principles of international law,” he said. “The UN resolutions that led to the establishment of the state of Israel clearly envisioned a Palestinian state as well, so we need to make that happen.”

Prince Faisal asserted that normalization of Saudi-Israeli ties is “off the table” until there is a resolution regarding Palestinian statehood. He further highlighted the broader implications, stating, “The security of the region as a whole is at risk if we do not address the rights of the Palestinians.”

Addressing the ongoing crisis in Gaza, he called for a cease-fire, emphasizing the dangers of an Israeli overreaction following the events of October 7th. “We have seen the reality that Israel’s reaction and its continuing military assault have led to a humanitarian catastrophe,” he remarked. He described the situation in northern Gaza as dire, with blockades and no safe zones for civilians, stating, “That can only be described as a form of genocide. It is certainly against humanitarian law, and that is feeding a continuing cycle of violence.”

On the prospects of an immediate cease-fire, Prince Faisal expressed caution, saying, “I hope it’s the case that we can see a cease-fire in the immediate hours, in the immediate short term. I’m not sure that that’s the case. I don’t have the details.”

He acknowledged US efforts to facilitate negotiations, adding, “We are not part of the direct negotiations, but we certainly support the efforts that the US has undertaken to find a pathway to a ceasefire. I hope it comes to fruition.”

He noted that previous attempts at cease-fire negotiations had failed due to new demands from Israel. “In most of those instances where the talks collapsed, it has been because new requirements or demands were added on the part of Israel,” he explained.

Prince Faisal also addressed Saudi Arabia’s position on Lebanon, emphasizing a hands-off approach. “We have never fully disengaged. But we believe it’s up to the Lebanese politicians to seek a direction that puts Lebanon on the right track,” he stated.

He added: “It’s not up to any outside influence, any outside countries, or any outside powers to tell the Lebanese what to do or to influence the political process in Lebanon. That is our opinion.”

Regarding relations with Iran, Prince Faisal indicated that recent discussions focused on regional de-escalation. “I hope that Iran, like us, is working toward regional de-escalation on all fronts, not just in Lebanon. That’s very much the focus of my conversations with my Iranian counterpart,” he said. While he could not be “confident of anything that is in the control of other parties,” he emphasized the importance of avoiding further escalation.

“I have made it clear to our Iranian counterparts that it is important to avoid any further escalation. My sense is that they realize the risks of escalation and would prefer to avoid it. But, of course, they have their own strategic calculations.”

Topics: FII8

NBK eyes partnerships in Saudi Arabia to tap Vision 2030 opportunities across diverse sectors

Updated 16 min 55 sec ago
Nadin Hassan 
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NBK eyes partnerships in Saudi Arabia to tap Vision 2030 opportunities across diverse sectors

  • NBK has developed strong connections with key players, including other financial institutions
  • NBK signed four agreements worth $1.6 billion, underscoring the growing demand for sophisticated financial solutions within Saudi Arabia’s evolving market
Updated 16 min 55 sec ago
Nadin Hassan 

RIYADH: The National Bank of Kuwait is looking to partner with different companies in Saudi Arabia as the Kingdom’s Vision 2030 opens opportunities for financial partnerships, a senior executive said. 

Speaking to Arab News on the sidelines of the Future Investment Initiative in Riyadh, the General Manager of the National Bank of Kuwait in Saudi Arabia, Anas Al-Ubaid, highlighted that NBK has developed strong connections with key players, including other financial institutions.

“We have a good partnership with a lot of government bodies, corporates, and even private banking or high net worth individuals,” Al-Ubaid said.

He added: “We’re here on the market since 2006. We’re serving the market. We partnered up with the majority of the names in that market, even with banks. Once the opportunities arise, definitely we could partner up with them.”

Al-Ubaid also explained how the bank’s approach goes beyond traditional lending to provide customized financial solutions that meet specific client needs and support their business growth.

“The way we look at it here at NBK, it’s not just about lending. It’s about providing tailored financial solutions for our clients, serving their needs, and also helping them to grow their businesses,” he said.

Al-Ubaid continued: “There is no definite sector that we’re looking at. We’re looking at all areas that we could help with and help our partners in the markets.”

He added: “Our expertise is in tailoring solutions for clients, whether corporates or individuals,” highlighting NBK’s focus on customized financial services that support Vision 2030.

He further underlined that the Saudi market offers significant growth potential for banks, particularly as demand rises for customized financial solutions.

“I would say there’s a lot of opportunities in the markets for banks and financial institutions to grow in that area. Definitely. The market is eager to see more tailored solutions for clients, especially now the clients in Saudi,” Al-Ubaid said.

On the first day of the event, NBK signed four agreements worth $1.6 billion, underscoring the growing demand for sophisticated financial solutions within Saudi Arabia’s evolving market.

One agreement was inked with ACWA Power – worth SR2.6 billion ($690 million) – to support the company’s expansion in energy and water resource sectors across the Middle East and North Africa.

Additionally, NBK established an SR1.8 billion credit facility with Al Gihaz Contracting Co., helping fund the Kingdom’s largest energy storage project.

Agreements were also signed with Pan-Kingdom Holding Group and Alyusr Leasing to further their operational goals, with the deals valued at SR1 billion and SR750 million, respectively.

Topics: FII8 NBK

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Riyadh Air secures $1.3bn credit facility ahead of 2025 launch

Updated 31 October 2024
Reina Takla
Reem Walid
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Riyadh Air secures $1.3bn credit facility ahead of 2025 launch

  • Initiative aligns with Riyadh Air’s goal to serve over 100 destinations by the end of the decade
Updated 31 October 2024
Reina Takla Reem Walid

RIYADH: Saudi Arabia’s Riyadh Air has secured a $1.3 billion credit facility from a consortium of Gulf banks to fund its upcoming launch in 2025, according to the airline’s chief financial officer.

Speaking to Arab News at the Future Investment Initiative in Riyadh, taking place from Oct. 29 to 31, Adam Boukadida described this as the airline’s first corporate finance deal.

This initiative aligns with Riyadh Air’s goal, backed by the Kingdom’s Public Investment Fund, to serve over 100 destinations by the end of the decade through strategic partnerships.

“This is the first corporate finance deal for Riyadh Air. We’re very excited about that. It’s for up to SR5 billion. It’s what is called an accordion structure,” Boukadida said.

He noted that the transaction involves eight financial institutions, with six being Saudi banks, alongside Gulf International Bank and Emirates NBD from Dubai. “So, we’ve got a complement of local and regional powerhouses to support us in our first transaction,” he added.

The CFO explained that the transaction is for 12 months, with an option to roll over and extend, which the company anticipates will occur. The funds will serve as the backbone of the airline’s balance sheet and will be utilized for general corporate purposes as needed.

“It is in Saudi riyals and it’s very well priced. We have a great credit rating, of course. There’s a strong belief from our banking partners about the purpose of this and the importance of being part of the first syndicated revolving credit facility,” he said.

Since the company is currently non-operational, Boukadida mentioned that they may consider various financial instruments in the future, including debt, capital markets, and bonds. “It’s really good financial practice to start and support and build out your balance sheet with what would be called a club or syndicated loan there for working capital benefits and requirements,” he explained.

Boukadida also highlighted that the airline plans to have just 130 aircraft over the next five years. “In aviation, especially with the size and scale we’re looking to achieve at Riyadh Air, we explore many creative financial solutions in the future, whether that be leasing or mortgage-type aircraft financing transactions,” he said.

Regarding a recent agreement with Aramco, which was signed during the FII, Boukadida said, “It’s likely that Aramco will be our biggest fuel supply source.” He said the two companies want to jointly explore ways to make the aviation industry more sustainable.

On sustainable aviation fuel, he said affordability remains a significant challenge. “Generally speaking, sustainable aviation fuel, or SAF, is about three or four times more expensive than normal jet fuel. So that’s something that needs to be addressed for sure,” he remarked.

Shifting to digitization, Boukadida discussed the airline’s ambition to provide an Amazon-like experience. “We’re a digital company that enables travel rather than a traditional legacy airline,” he said. “We will offer, and we announced it yesterday, version 1.0 of what we call ‘offer and order.’ It’s very similar to an Amazon experience or, in the region, a noon.com experience where you do your basket online retail shopping,” he added.

Topics: FII8

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