Finland’s under-secretary of state says ‘more can be done’ to boost economic cooperation
Finland’s exports to Kingdom are currently €350m annually
Updated 01 November 2024
Lama Alhamawi
RIYADH: Jarno Syrjala, Finland’s under-secretary of state for external economic relations, has highlighted that his country’s exports to the Kingdom stand at about €350 million annually, and added that more could be done to boost economic cooperation in information and communications technology, tourism and shared know-how.
Syrjala was speaking on the sidelines of the eighth edition of the Future Investment Initiative, and added that in terms of trade relations between Saudi Arabia and Finland “the current situation is very good for both countries.”
Syrjala told Arab News that there had been “steady growth, but at the same time we are still at very low levels.”
He added: “I want both countries to be more ambitious when we do trade.
“When we look at the trade statistics, that’s only part of the truth. When we talk about the whole economic partnership between Saudi and Finland we need to also do more when it comes to investments.”
The under-secretary shared that Finland’s exports to the Kingdom are worth about €350 million annually, and admitted: “It’s not that much.”
He added that “Saudi exports to Finland are even less.”
He said: “If we look only at the trade figures, there has been steady growth during the last few years and especially after the COVID-19 era.”
Outside of trading goods and services, he expressed the hope that tourism will also pick up in the future.
He underlined that there are economic exchanges that would help to benefit both countries, while stressing that in services such as ICT and cybersecurity, there was room for a lot more cooperation.
He said: “(The) ICT sector, cybersecurity solutions, and so, that’s services, basically, not so tangible products or goods changing place. But ICT is a good example where it’s not only about goods.”
Another area for possible cooperation highlighted by the under-secretary was the health sector.
He said: “We produce health technology, health-related technology. There are digital solutions for that area available as well.
“Education has been there also for a long time. And that’s not only cooperation between companies or different school institutions, but it’s very important for people to have people contacts as well.”
The under-secretary was in Riyadh for the FII and to hold high-level ministerial meetings. He also “wanted to see it with his own eyes and be there.”
He added: “This event brings together people from different areas. So, there are the decision-makers, politicians, investors, professionals, visionaries.
“It’s a fascinating combination, I think, and so I wanted to see it with my own eyes. We had some Finnish companies, of course, participating.”
Nokia was among the many notable Finnish companies taking part in FII and Syrjala expressed the hope that FII will raise awareness about what kind of opportunities exist for cooperation.
He said: “We want to show what kind of new companies we have in Finland, also the traditional ones.”
Syrjala explained that he had visited several ministries and it was important that they continued to communicate.
He said: “What I have been emphasizing is the importance of visits, for example from different ministries, different sectors, so that we can really show to the private sector that the support for their businesses is there.
“There is a wide spectrum of areas the sectors can work together on.”
He highlighted that Vision 2030 will add to the opportunities for the two nations to further cooperate on modern and high-tech solutions.
SYDNEY: New Zealand has reached a trade deal with the six-nation Gulf Cooperation Council, which includes Saudi Arabia and the UAE, that Wellington said would open up major opportunities for Kiwi exporters in the Middle East.
The trade pact would remove tariffs for 51 percent of New Zealand’s exports to the region from day one and deliver duty-free access for 99 percent of New Zealand’s exports over 10 years, New Zealand Trade Minister Todd McClay said in a statement late on Thursday.
“Successfully concluding a trade agreement with the GCC has been a long-standing ambition for successive governments for almost two decades,” McClay said in Doha.
The statement did not specify when the trade pact will become effective.
The agreement with the Gulf states comes after New Zealand reached a trade deal with the UAE in September.
Trade between New Zealand and the GCC is worth more than NZ$3 billion ($1.79 billion) annually. The Pacific island nation exported NZ$2.6 billion to the Middle Eastern member countries in the year to June 2024, which included NZ$1.8 billion of dairy, official data showed.
ISLAMABAD: Walee Financial Services Pvt Ltd, a Pakistani influencer marketing and social commerce platform, has launched the country’s “first ever” Islamic interest-free, nano-finance through a commodity-based trade structure, it said on Friday.
The Islamic nano-financing product is based on a model, wherein customers participate in a commodity trade process to secure financing without the involvement of interest, according to the platform.
It says the innovative product ensures that all transactions are free from ‘riba,’ or interest, and align with the principles of fairness and transparency advocated by Islam.
“This is a momentous achievement in rolling out Islamic nano-finance. It has been made possible through the grit, passion, and unwavering faith of our founding team in Islamic finance, highlighting the benefits to society at large,” Dr. Rashid Mansoor, head of Shariah-compliance at Walee Financial Services Pvt Ltd, said in a statement.
“True Shariah-compliance has been achieved through cutting-edge technology, supported by esteemed Muftis [Muslim experts on religious matters] and Shariah scholars.”
Walee Financial Services is offering the Islamic nano-finance under its fintech brand Hakeem.
“By offering Shariah-compliant financing facilities, Walee Financial Services is actively contributing to the country’s mission to transition toward a Shariah-compliant economy,” the platform said.
“This aligns with the Federal Shariat Court’s ruling that abolishing riba is fundamental for an Islamic financial system, and supports the State Bank of Pakistan’s efforts to promote Islamic finance across the country.”
The platform said the launch of this Islamic nano-financing product aligned Walee Financial Services Pvt Ltd. with the religious obligations of the Muslim community and the national agenda to eradicate interest-based financial practices.
Pakistan’s parliament last month also approved a constitutional amendment, setting a clear deadline of January 1, 2028 for complete elimination of riba in Pakistan’s financial system among other constitutional changes.
Saudi banks’ credit card loans surge 14%, reach a record high of $8.07bn
Updated 01 November 2024
Dayan Abou Tine
RIYADH: Credit card loans by Saudi banks hit a record high of SR30.27 billion ($8.07 billion) in the third quarter of 2024, according to recent data.
Figures by the Saudi Central Bank, also known as SAMA, showed that this marked a 14.24 percent rise compared to the same period last year.
Consumer loans, excluding real estate financing, finance leasing, and margin lending, reached SR462.29 billion, reflecting a 4.01 percent increase.
Among these, education lending experienced the highest growth, rising by 16 percent to SR8.24 billion.
Loans for vehicles and private transportation constituted the largest share within the sectors identified by SAMA, accounting for 3 percent of the total at SR11.93 billion.
Notably, the majority – 91 percent – of consumer loans were categorized as “Others.”
Consumer loans, which encompass a wide range of borrowing options, are typically characterized by fixed repayment schedules and lower interest rates.
These loans are often used for significant expenditures, including purchasing vehicles, or funding education, and they tend to represent a substantial portion of an individual’s overall debt.
In contrast, credit card loans are revolving facilities that allow users to borrow up to a predetermined limit, repayable at varying interest rates based on usage.
While this form of lending is currently significantly lower than consumer loans, their rapid growth can be attributed to several key factors.
Firstly, the increasing digitization of banking services has made them more accessible, especially to younger consumers who prefer online transactions and instant credit options.
This demographic shift is driving demand for flexible payment solutions.
Secondly, the rise in consumer spending, fueled by government initiatives aimed at boosting the economy and diversifying financial offerings, has encouraged consumers to rely more on credit cards for everyday purchases.
Additionally, attractive promotions, such as cashback rewards and loyalty points, have made credit cards an appealing choice for many, incentivizing usage and increasing borrowing.
Moreover, the growth of e-commerce has further propelled credit card adoption, as consumers seek convenient payment methods for online transactions.
While these loans may currently represent a smaller portion of overall consumer debt, their rapid growth reflects changing consumer preferences and economic trends in Saudi Arabia, highlighting the importance of adapting financial products to meet evolving needs in a dynamic marketplace.
This trend aligns with the Kingdom’s Vision 2030 initiative, which aims to foster a cashless economy and enhance the financial landscape through digital transformation.
Data from SAMA indicated that by the end of September, the number of ATMs in Saudi Arabia decreased by 604 year-over-year, totaling 15,448. In contrast, the number of issued cards rose by 3.6 million, reaching 49.95 million.
This shift illustrates how the payment dynamics in the Kingdom are evolving, as the decline in ATMs reflects a diminishing reliance on physical cash, while the surge in card issuance highlights an increasing demand for contactless payment options.
Saudi Arabia has reached 98 percent adoption rate for contactless payments in in-person transactions, a significant rise from just 4 percent in 2017, according to Andrew Torre, Visa’s regional president.
Speaking to Arab News on the sidelines of a forum ahead of the Future Investment Initiative event in Riyadh, Torre attributed this transformation to government support, increasing consumer demand, and Visa’s technological initiatives, aligning with the goals of Saudi Arabia’s Vision 2030 to enhance digital commerce.
Torre noted that the transition to contactless payments, including mobile taps, has occurred rapidly and is among the fastest globally.
Saudi Arabia’s fintech-friendly regulatory environment, spearheaded by the Saudi Central Bank, has been crucial in facilitating digital evolution.
SAMA’s early adoption of a fintech sandbox has allowed for innovation in financial services. Additionally, e-commerce in the region has surged, growing at an annual rate of 30 percent, partly due to the pandemic’s push towards online shopping.
As digital payment adoption grows, it empowers small businesses with secure transaction options.
According to a study by GlobalData, the annual value of card transactions in Saudi Arabia’s cards and payments market is projected to reach $146.8 billion in 2024. The market is expected to grow at a compound annual growth rate of over 6 percent from 2024 to 2028.
Startup Wrap – Saudi VCs pour capital into ventures through strategic investments
Updated 01 November 2024
Nour El-Shaeri
RIYADH: Saudi venture capital firms are fueling regional innovation through substantial investments and new initiatives.
Aramco Ventures led New York-based industrial internet-of-things monitoring and communications startup Andium’s $21.7 million series B funding round.
Existing backers, including Climate Investment, Intrepid Financial Partners, and individual investors such as former Citadel Chief Investment Officer Thomas Miglis, also participated. The investment brings Andium’s total funding to over $40 million, following its $15 million series A round in 2021.
The newly secured funds will enable Andium to accelerate its global expansion, scale operations in oil and gas regions in the US and the Middle East, reduce technology costs, and bolster its research and development initiatives.
Wa’ed Ventures allocates $100m for early-stage AI investments
Saudi Aramco’s $500-million financial capital arm Wa’ed Ventures has earmarked $100 million for early-stage artificial intelligence investments. This initiative is part of efforts to position Saudi Arabia as a global leader in the technology, aligning with the Kingdom’s strategic development goals.
The deployment of the fund will be overseen by an advisory board comprising experts from prominent global institutions such as Meta, the Massachusetts Institute of Technology, Oxford University, and Amazon.
A report by PwC projects that artificial intelligence could contribute $135 billion to Saudi Arabia’s economy by 2030, amounting to 12 percent of the country’s gross domestic product.
Wa’ed Ventures has recently invested in Korea’s Rebellions and US-based AiXplain as part of its investment strategy.
Beta Lab launches with $300m to foster deeptech innovation
Beta Lab launched at FII8 in Riyadh. X/@BetalabSA
Saudi Arabia’s new deeptech venture studio, Beta Lab, launched with $300 million in capital at the Future Investment Initiative.
The outfit aims to bolster startups and promote cross-border innovation between the Middle East and Southeast Asia.
This strategic initiative is backed by the Saudi Ministry of Investment, the Research, Development, and Innovation Authority, the Hong Kong Science and Technology Parks Corporation, and MDI Ventures by Telkom Indonesia.
Beta Lab is expected to catalyze growth in the deep tech sector through significant investments and collaborative partnerships.
Tharawat Green Exchange secures $450k for sustainability initiatives
Saudi Arabia-based Web3 provider Tharawat Green Exchange has raised $450,000 from Adaverse, a fund dedicated to Web3 and blockchain investments.
Founded in 2023 by Yakeen Al-Zaki, Hassan Al-Redha, and Yasser Al-Obaidan, Tharawat Green Exchange focuses on leveraging blockchain technology for environmental sustainability, aligning with Saudi Vision 2030.
The capital will support infrastructure and blockchain development, enhance sales and marketing, and help secure Vera certification for Tharawat Green Exchange’s carbon credits.
BIM Capital established to boost Middle East investment
BIM Ventures and SBI Holding announced the establishment of BIM Capital during the FII8 conference in Riyadh. Supplied
Saudi-based BIM Ventures and Japan’s SBI Holding have launched BIM Capital, a joint venture to stimulate investment opportunities in Saudi Arabia and the wider Middle East.
The new organization will focus on private equity, venture capital, debt funds, and real estate investments.
With a target of drawing more than $200 million in foreign direct investment, BIM Capital aims to manage assets worth over $2 billion.
The joint venture seeks to leverage both firms’ expertise to accelerate regional growth and innovation.
ARKTECH raises $1m in pre-seed funding
Saudi proptech company ARKTECH has successfully closed a $1 million pre-seed investment round, led by Core Vision Investment.
Established in 2023 by Waheed Al-Jassas, ARKTECH specializes in utility contract trading to enhance real estate investment returns.
The funding will strengthen the company’s leadership in the property technology sector and support the development of new tech-enabled investment solutions.
Nabt secures $1.5m seed round for B2B marketplace
Saudi foodtech startup Nabt has raised $1.5 million in a seed funding round led by Merak Capital, with additional backing from angel investors.
Launched in 2022 by Abdullah Al-Otaibi, Nabt runs a business-to-business marketplace that directly connects farmers with businesses.
The funding will be used to accelerate product development and expand Nabt’s market presence.
The company is part of the Sunbolah FoodTech Accelerator, an initiative by Saudi Arabia’s Ministry of Environment, Water, and Agriculture to promote innovation in the agricultural sector.
ISSF invests $5m in Rua Growth Fund
ISSF CEO Mohammed Al Muhtaseb, and Turki Aljoaib, managing partner of Rua Growth Fund. ISSF
Jordan’s Innovative Startups and Small and Medium Enterprises Fund has invested $5 million in Rua Growth I LP, a $45-million Saudi Arabia-based venture capital fund focused on early-stage investments in e-commerce, financial technology, enterprise solutions, and software as a service.
This investment aims to leverage Jordan’s robust startup ecosystem and foster innovation, enhancing the competitive edge of local startups in regional markets.
Tadarab expands into Saudi Arabia amid rising demand
Kuwait-based education technology platform Tadarab has expanded operations into Saudi Arabia as part of its strategy to address the growing need for online education solutions in the region.
Founded in 2016 by Zaid Al-Luhaib and Salma Al-Yassin, Tadarab offers courses that support personal and professional development across the Middle East and North Africa region.
The expansion aims to tailor Tadarab’s educational solutions to meet the diverse demands of Saudi learners, benefiting both individuals and corporate clients.
Pass secures $2.7m to expand into Egypt and Saudi Arabia
Qatar-based delivery service app Pass has raised $2.7 million in a pre-series A funding round from undisclosed investors.
Initially launched by the UK’s Peyk in 2020 and later acquired by local entrepreneur Bashar Jaber in 2023, the newly acquired funding will support Pass’s expansion into Egypt and Saudi Arabia and facilitate the development of new products to enhance its market position.
Colis.ma closes $300k pre-seed funding
Morocco’s logistics startup Colis.ma has secured $300,000 in pre-seed funding from Witamax.
Founded in 2022 by Issam Darui, Colis.ma focuses on cross-border logistics services for individuals and small and medium-sized enterprises, aiming to bridge African and European markets.
The funds will be used to strengthen Colis.ma’s operations in Morocco’s five largest regions and expand into six major European countries, with plans for further growth into West Africa.
Pargo expands into Egypt with $4m funding
South African e-commerce logistics startup Pargo has entered the Egyptian market after raising $4 million from 3Capital Ventures, Endeavor, SAAD Investment Holdings, and UW Ventures.
Launched in 2014 by Derk Hoekert and Lars Veul, Pargo provides innovative delivery solutions tailored for the e-commerce sector.
The expansion includes the rollout of collection and return service points across Egypt to support e-commerce growth.
Pakistan October CPI up 7.2% y/y, statistics bureau says
The reading reinforced a month of easing inflation which hit a historic high of 38% last year
The central bank is expected to cut its key interest rate further at its meeting on Monday
Updated 01 November 2024
Reuters
KARACHI: Pakistan’s annual consumer price index inflation rate was 7.2% in October, the Pakistan Bureau of Statistics said on Friday, up from 6.9% the preceding month.
The reading reinforced a month of easing inflation — which hit a historic high of 38% last year, and was at 26.8% October 2023 — ahead of a meeting of the country’s central bank next week to review the policy rate, which stands at 17.5%.
A Reuters poll showed the central bank is expected to cut its key interest rate further at the meeting on Monday, with policymakers continuing their efforts to revive a fragile economy as inflation eases.
The October reading was up 1.2% month on month, the statistics bureau said, adding that the fiscal year’s average inflation, from July to October, stands at 8.7%, which is below the 9.5% projected by the International Monetary Fund.
