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Startup Wrap – Early-stage funding continues to capture interest

Saudi investment firm Naif Al Rajhi Investment has acquired a strategic stake in Jordan-based artificial intelligence Arabic content platform Mawdoo3. (Supplied)
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Updated 30 November 2024
Nour El-Shaeri
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Startup Wrap – Early-stage funding continues to capture interest

Updated 30 November 2024
Nour El-Shaeri

CAIRO: Early-stage startups across the Middle East and North Africa region secure investments to drive innovation in sectors such as logistics, fintech, and climate tech.

Saudi-based Nama Ventures co-led Egypt’s Nowlun $1.7 million seed funding round along with venture capital firm A15.

The round also saw participation from Sanabil 500 Global and other angel investors.

Founded in 2021 by Moataz Khamis, Ahmed Emara, and Mahmoud Khaled, Nowlun’s platform provides businesses with access to real-time pricing across major shipping lines, enabling them to make faster and more informed decisions.

The company plans to utilize the raised capital for expansion and the development of its technology.

Mohammed Al-Zubi, founder of Nama Ventures, and Bassem Raafat, principal at A15, lauded the company’s mission and strategy.

Naif Al Rajhi acquires stake in Jordan’s Mawdoo3

Saudi investment firm Naif Al Rajhi Investment has acquired a strategic stake in Jordan-based artificial intelligence Arabic content platform Mawdoo3 for an undisclosed amount.

Founded in 2010 by Mohammad Jaber and Rami Al-Qawasmi, Mawdoo3 specializes in AI technologies and large language models tailored to the Arabic language.

The deal aligns with Naif Al Rajhi Investment’s focus on emerging sectors, while providing the Jordan-based firm with the resources to expand into the Saudi market.

Mawdoo3, which has raised $25 million over three funding rounds – including a $10 million series B in 2019 – is poised to strengthen its regional presence through this partnership.

Geidea expands SoftPos solution to Egypt after success in Saudi Arabia and UAE

Geidea, a prominent Saudi provider of digital payment solutions, is set to launch its SoftPos service in Egypt after successful rollouts in Saudi Arabia and the UAE.

The SoftPos technology enables merchants to accept secure contactless payments via smartphones, eliminating the need for traditional point-of-sale devices.

This expansion is part of Geidea’s strategy to drive digital transformation across the region by enhancing payment efficiency and accessibility for businesses of all sizes.

SoftPos allows merchants to process secure payments directly from smartphones, adhering to global data protection and transaction safety standards, the company explained.

Flat6Labs backs 10 Saudi startups in Riyadh Seed Program cycle

Flat6Labs, a seed and early-stage venture capital firm operating in the MENA region, has invested in 10 Saudi startups as part of its fourth Riyadh Seed Program cycle.

The startups span a variety of sectors, including e-commerce, logistics, Software-as-a-Service, and cybersecurity, and each received $133,000 in funding.

The initiative is supported by the Saudi Venture Capital Co., Jada Fund of Funds, and Riyadh Valley Company, with additional backing from the National Technology Development Program.

Since launching its Riyadh program in 2023, Flat6Labs has funded 41 startups, solidifying its role in fostering innovation in Saudi Arabia’s entrepreneurial ecosystem.

Sylndr secures $7.46m to boost Egypt’s used car marketplace

Egypt-based used car marketplace Sylndr has raised $7.46 million in a capital facility to support its operations and growth.

EFG Hermes acted as the sole financial advisor for the transaction, with financing provided by EFG Corp-Solutions, Bank NXT, and EG Bank, among others.

Founded in 2021 by Amr Mazen and Omar El-Defrawy, Sylndr enables users to buy and sell used cars while offering financing solutions.

The new capital will be used to enhance customer experience, diversify inventory, and expand financing options. This follows a $12.6 million pre-seed round in 2022, led by RAED Ventures and Algebra Ventures.

Morocco’s PTS raises $500k to scale fintech solutions

Premium Technology & Services, a Morocco-based fintech startup, has secured $500,000 from BMCE Capital Investments, the private equity arm of BMCE Capital Group.

The funding will be used to advance PTS’s solutions for digitizing traditional banking cards, which are tailored to meet the evolving needs of banks and businesses.

Founded in 2020 by Samir Younes and two others, PTS plans to leverage the investment to drive innovation and scale operations to meet increasing demand in the region.

Watercycle Technologies raises $5.6m to advance MENA expansion

UK-based climate tech company Watercycle Technologies has closed a $5.6 million series A investment round led by Par Equity, alongside participation from Aer Ventures, Greater Manchester Combined Authority, and the University of Manchester Innovation Factory.

Founded in 2020 by Ahmed Abdelkarim and Sebastian Leaper, Watercycle Technologies focuses on sustainable critical mineral recovery while producing clean, drinkable water.

This investment will help the company expand its operations, with plans to extend services into the MENA region to support global Net Zero initiatives.

Iraq-based edtech Eduba acquired by a regional telecom giant

Eduba, an Iraq-based education tech startup, has been acquired by an undisclosed telecommunications conglomerate in a seven-figure deal.

Founded in 2019 by Azad Hassan, Haider Shaaban, and Raed Kadhem, Eduba began as a school management app and gained traction among private schools, securing accreditation from Iraq’s Ministry of Education.

This acquisition highlights the growing value of edtech solutions in the region and positions Eduba for further expansion under its new ownership.

Japan’s AI startup Recursive Inc. inks MoU with Saudi Arabia’s KAIMRC

Japan-based AI startup Recursive Inc. has signed a memorandum of understanding with the King Abdullah International Medical Research Center in Saudi Arabia to jointly develop an advanced system for the early detection of tuberculosis.

The partnership, formalized during the Riyadh Global Medical Biotechnology Summit, aims to leverage Recursive’s AI expertise and KAIMRC’s medical research capabilities to improve TB screening accuracy and diagnosis speed in the Kingdom.

This collaboration, supported by the Ministry of National Guard-Health Affairs, aligns with Saudi Arabia’s Vision 2030 goals to transform its healthcare system and improve public health.

Using chest X-ray imaging data, the AI solution will enable timely TB diagnosis and treatment, reducing mortality and transmission risks.

“We are truly honored to partner with KAIMRC on this groundbreaking initiative,” said Tiago Ramalho, CEO of Recursive Inc.

“By combining KAIMRC’s pioneering medical research with our AI expertise, we are confident we can make a meaningful impact, not only in Saudi Arabia but also in regions worldwide that face the increasing challenge of TB and other infectious diseases,” he added.

The initiative also supports Saudi Arabia’s National Tuberculosis Program, which seeks to reduce TB mortality and incidence rates by 95 percent and 90 percent, respectively, by 2035 compared to 2015 levels.

Through this collaboration, Recursive and KAIMRC aim to create a scalable TB screening model for broader application in high-burden regions while exploring the use of AI to address other infectious diseases.

Topics: startups

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Saudi Arabia closes $2.5 billion Shariah-compliant credit facility for budget financing

Updated 02 January 2025
Nadin Hassan
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Saudi Arabia closes $2.5 billion Shariah-compliant credit facility for budget financing

Updated 02 January 2025
Nadin Hassan

RIYADH: The National Debt Management Center has announced the successful arrangement of a Shariah-compliant revolving credit facility valued at SR9.4 billion ($2.5 billion).

This three-year facility is intended to support the Kingdom’s general budgetary requirements and was secured with the participation of three regional and international financial institutions.

This credit arrangement is in line with Saudi Arabia’s medium-term public debt strategy. It aims to diversify funding sources to meet financing needs at competitive terms, while adhering to robust risk management frameworks and the approved annual borrowing plan.

In November, Saudi Arabia approved its state budget for the fiscal year 2025, with projected revenues of SR1.18 trillion and expenditures totaling SR1.28 trillion, resulting in a deficit of SR101 billion.

The Finance Ministry forecasts a robust 4.6 percent growth in the Kingdom's real gross domestic product for 2025, a significant increase from the 0.8 percent growth expected in 2024. This growth is anticipated to be driven by a rise in activities within the non-oil sector, according to the ministry’s statement.

Saudi Arabia’s total debt is projected to reach SR1.3 trillion in 2025, or 29.9 percent of GDP, which is considered a sustainable level to meet the country’s financing needs.

Revised projections for the 2024 budget indicate a deficit of SR115 billion, with total debt expected to rise to SR1.2 trillion, or 29.3 percent of GDP.

The 2025 budget places a strong emphasis on maintaining essential services for citizens and residents while increasing investment in key projects and sectors. The government's focus remains on preserving fiscal stability, ensuring long-term sustainability, and managing reserves effectively. By maintaining manageable debt levels, Saudi Arabia aims to safeguard its resilience against unforeseen economic challenges.

Topics: NDMC Credit facility Shariah-compliant

Closing Bell: Saudi Arabia’s TASI closes in green at 12,103

Updated 02 January 2025
NADIN HASSAN  
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Closing Bell: Saudi Arabia’s TASI closes in green at 12,103

  • MSCI Tadawul Index also increased by 2.55 points, or 0.17%, to close at 1,517.16
  • Parallel market Nomu gained 11.83 points, or 0.04%, to close at 31,005.69 points
Updated 02 January 2025
NADIN HASSAN  

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Thursday’s trading session at 12,102.55 points, marking an increase of 25.24 points, or 0.21 percent. 

The total trading turnover of the benchmark index was SR5.55 billion ($1.47 billion), as 99 of the listed stocks advanced, while 131 retreated. 

The MSCI Tadawul Index also increased by 2.55 points, or 0.17 percent, to close at 1,517.16. 

The Kingdom’s parallel market Nomu reported increases, gaining 11.83 points, or 0.04 percent, to close at 31,005.69 points. This comes as 39 of the listed stocks advanced while as many as 43 retreated. 

The index’s top performer, Tihama Advertising and Public Relations Co., saw a 9.91 percent increase in its share price to close at SR16.86.  

Other top performers included Zamil Industrial Investment Co., which saw an 8.01 percent increase to reach SR35.05, while Al Yamamah Steel Industries Co.’s share price rose by 5.42 percent to SR36. 

AYYAN Investment Co. also recorded a positive trajectory, with share prices rising 4.99 percent to reach SR16. Fawaz Abdulaziz Alhokair Co. witnessed positive gains, with 4.49 percent reaching SR14.44. 

Arabian Cement Co. was TASI’s weakest performer, with its share price falling 5.81 percent to SR14.88. 

Riyadh Cement Co. followed with a 5.45 percent drop to SR30.35. Yamama Cement Co. also saw a notable decline of 5.26 percent to settle at SR33.35.  

Umm Al-Qura Cement Co. dropped 3.55 percent to SR17.94, while Methanol Chemicals Co. declined 3.03 percent to SR17.94, ranking among the top five decliners. 

In the parallel market Nomu, View United Real Estate Development Co. was the top gainer, with its share price surging by 22.64 percent to SR9.10. 

Other top gainers in the parallel market included Mulkia Investment Co., up 8.25 percent to SR40, and Enma AlRawabi Co., rising 6.67 percent to SR23.68. 

Naas Petrol Factory Co. and Meyar Co. were the other top gainers on the parallel market. 

Al-Modawat Specialized Medical Co. saw the largest decline on Nomu, with its share price slipping 8.05 percent to SR16. 

Naseej for Technology Co. fell 7.14 percent to SR65, while Saudi Azm for Communication and Information Technology Co. dropped 6.18 percent to SR28.10, ranking among the notable decliners on Nomu. 

On the announcement front, Al-Jouf Agricultural Development Co. said it has entered into a SR200 million Shariah-compliant bank facilities agreement with Banque Saudi Fransi to finance the company’s expansion plans and operational activities. 

Its share price closed at SR64.50, reflecting a 1.2 percent gain. 

Saudi Basic Industries Corp., or SABIC, announced that its Saudi affiliates have received official notification of increased feedstock prices, which is expected to affect the company’s production costs. 

SABIC’s shares closed at SR67.30, marking a decline of 0.59 percent. 

Sahara International Petrochemical Co., also known as Sipchem, received a notice from Saudi Aramco amending certain feedstock prices, effective Jan. 1. The financial impact is expected to result in a 2 percent increase in the total cost of sales, starting in the first quarter of the 2025 fiscal year. 

Sipchem’s shares ended the day at SR24.66, down 2.43 percent. 

National Agricultural Development Co., or NADEC, received a notification regarding an adjustment in fuel prices for its operational activities. The financial impact is estimated to result in a 1.5 percent increase in operating costs, to be reflected starting in the first quarter of fiscal year 2025. 

This change is expected to moderately raise production costs. NADEC’s shares closed at SR24.52, marking a 1.55 percent increase. 

Topics: Saudi Arabia TASI Tadawul NOMU Closing Bell Saudi stock market Tadawul All Share Index (TASI) Saudi Stock Exchange (Tadawul)

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Saudi Arabia’s Ministry of National Guard achieves 100% localization of maintenance contracts

Updated 02 January 2025
NOUR EL-SHAERI   
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Saudi Arabia’s Ministry of National Guard achieves 100% localization of maintenance contracts

  • The milestone was celebrated at a signing ceremony for new localization contracts
  • Key accomplishments celebrated at the event included the development of a strategic implementation plan for sustainability localization
Updated 02 January 2025
NOUR EL-SHAERI   

RIYADH: Saudi Arabia’s Ministry of National Guard has increased local spending on maintenance, repairs, and operations for its ground systems from 1.6 percent to 100 percent over the past four years.

The milestone was celebrated at a signing ceremony for new localization contracts under the patronage of the Minister of National Guard, Prince Abdullah bin Bandar, with the participation of the General Authority for Military Industries. 

The initiative is part of a broader effort to achieve sustainable development within the Kingdom’s military industries, enhance local capabilities, and support Vision 2030 goals. 

The ministry has signed a series of contracts with local companies to improve the sustainability and efficiency of military systems. These agreements aim to strengthen military readiness, contribute to economic growth, and create job opportunities within Saudi Arabia.

These pacts include a sustainability contract for integrated weapons systems and heavy weaponry with SAMI Defense Systems Co., an electronic systems sustainment agreement with SAMI Advanced Electronics Co., and a vehicle sustainability deal with Alkhorayef Industries Co. 

In conjunction with these contracts, GAMI announced signing two industrial participation deals to enhance local content and build national industrial capabilities. 

The first agreement, signed with SAMI Defense Systems Co., focuses on the sustainability of integrated weapons and heavy weaponry, aiming to achieve over 60 percent industrial participation and create new employment opportunities for Saudi professionals. 

The second contract, signed with Alkhorayef Industries Co., pertains to the sustainability of military vehicles and aims to encourage investment in qualified industrial activities to strengthen the defense sector. 

The ministry highlighted the economic benefits of the localization program, including creating over 800 direct jobs and empowering national companies to take a central role in the Kingdom’s defense ecosystem. 

Key accomplishments celebrated at the event included the development of a strategic implementation plan for sustainability localization, the establishment of innovation laboratories for spare parts manufacturing, and progress in achieving over 60 percent industrial participation in contracts. 

These initiatives also contribute to enhancing local capabilities and fostering innovation within the Kingdom’s defense sector. 

The event was attended by several high-ranking officials, including Minister of Industry and Mineral Resources Bandar Alkhorayef, GAMI Governor Ahmed Al-Ohali, Governor of the General Authority for Defense Development Faleh Al-Suleiman, and President of the General Authority for Civil Aviation Abdulaziz Al-Duailej. 

Senior representatives from the companies awarded the contracts. Military and civilian officials from the Ministry of National Guard were also present. 

Topics: Saudi Ministry of National Guard localization Saudi Arabia

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SRC and Hassana launch mortgage-backed securities to boost Saudi real estate investment

Updated 02 January 2025
Nadin Hassan
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SRC and Hassana launch mortgage-backed securities to boost Saudi real estate investment

  • Deal seeks to diversify Kingdom’s financial markets by introducing an innovative asset class
  • Saudi banks’ mortgage lending hit a near three-year high of $2.7 billion in November
Updated 02 January 2025
Nadin Hassan

RIYADH: The region’s first-of-its-kind residential mortgage-backed securities will be available in Saudi Arabia as the Kingdom seeks to enhance liquidity and expand investment opportunities in the real estate finance sector. 

A memorandum of understanding, signed between the Saudi Real Estate Refinance Co., a subsidiary of the Public Investment Fund, and Hassana Investment Co., seeks to diversify Saudi Arabia’s financial markets by introducing an innovative asset class. 

The issuance of mortgage-backed securities is anticipated to attract a wide base of local and global investors to the secondary mortgage market, creating new opportunities for investment in the sector. 

Majeed Al-Abduljabbar, CEO of SRC, said: “Our partnership with Hassana marks a significant milestone in supporting the evolution of the housing finance landscape and fostering the development of Saudi Arabia’s capital markets.” 

He added: “Together, we aim to introduce innovative financial solutions that deliver value to both investors and citizens while aligning with Vision 2030’s objectives.” 

The deal, signed in the presence of Majid Al-Hogail, minister of municipalities and housing, and Mohammed Al-Jadaan, minister of finance, aligns with the Housing Program and Financial Sector Development Program under Vision 2030. 

“This collaboration establishes a new standard for partnerships, enabling the development of scalable financial solutions that contribute to the Kingdom’s economic development goals. It aligns with Hassana’s strategy of diversifying its investment portfolios through long-term partnerships with entities like SRC,” said Saad Al-Fadhli, CEO of Hassana. 

Hassana’s participation as a key institutional investor underscores the potential to create sustainable economic investment opportunities. 

This comes as the Kingdom’s real estate market continues to show strong demand, with annual growth in residential sales transaction volumes across major metropolitan areas. 

Saudi banks’ mortgage lending hit a near three-year high of SR10.06 billion ($2.7 billion) in November, marking a 51.23 percent year-on-year increase and the highest monthly amount in over two years, according to data from the Kingdom’s central bank.

This surge reflects strong activity in the housing market, with houses accounting for 65 percent of the loans, followed by apartments at 31 percent and land purchases at 4 percent. 

As part of its Vision 2030 agenda, the Kingdom is fast-tracking residential construction, particularly in Riyadh, to accommodate its growing population and attract international talent.

Topics: Saudi Real Estate Refinance Co. (SRC) Hassana Investment Co. real estate SAUDI REAL ESTATE

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Qatar’s foreign merchandise trade surplus slips 5%

Updated 02 January 2025
Reem Walid
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Qatar’s foreign merchandise trade surplus slips 5%

  • Total exports in the third quarter of 2024 — including domestic goods and re-exports — were valued at 87.8 billion riyals
  • Value of imports during the same period amounted to 30.1 billion riyals
Updated 02 January 2025
Reem Walid

RIYADH: Qatar recorded a foreign merchandise trade balance surplus of 57.7 billion Qatari riyals ($15.8 billion) in the third quarter of 2024, down 5 percent year on year, new data revealed.

Merchandise trade balance surplus is the difference between total exports and imports.

According to figures released by the Gulf nation’s Planning and Statistics Authority, the country’s total exports in the third quarter of 2024 — including domestic goods and re-exports — were valued at 87.8 billion riyals. This represents a 2.2 percent decline compared to the same period in 2023.

The value of Qatar’s imports during the same period amounted to 30.1 billion riyals, up 4.1 percent compared to the same quarter in 2023.

The figures fall in with the nation’s trajectory to restore government revenues to pre-2014 oil price shock levels and double its economy by 2031, according to an analysis by Standard Chartered in August.

The data also reflects the steady growth of Qatar’s non-oil economy, contributing to two-thirds of the country’s gross domestic product.

Exports breakdown

The figures further disclosed that the drop in exports is mainly attributed to lower exports of mineral fuels, lubricants, and related materials by 5 billion riyals, or 6.5 percent, and miscellaneous manufactured articles by 100 million riyals, or 22 percent.

Increases were mainly recorded in chemicals and related products by 1.5 billion riyals, or 24.5 percent, machinery and transport equipment by 1.2 billion riyals, or 53.3 percent, and manufactured goods classified chiefly by material by 400 billion riyals, or 17.1 percent.

Exports of crude materials, inedible, except fuels, also witnessed a rise of 100 million, or 24.8 percent.

Imports breakdown

The rise in import values is mainly linked to increases in machinery and transport equipment by 800 million riyals, or 6.7 percent, chemicals and related products by 400 million riyals, or 17.2 percent, and mineral fuels, lubricants and related materials by 320 million riyals, or 58.2 percent.

Imports of food and live animals also jumped by 300 million riyals or 9.8 percent.

Meanwhile, decreases were recorded mainly in miscellaneous manufactured articles by 400 million, or 6.7 percent as well as manufactured goods classified chiefly by material by 300 million, or 7.7 percent.

Principal destinations

The PSA data showed that Asia was the principal destination of exports for the country, representing 75.9 percent, as well as the primary origin of Qatar’s imports, accounting for 39.7 percent.

The Gulf Cooperation Council followed, accounting for 11.6 percent of exports and 11.3 percent of imports, respectively.

The EU came next, with 7.7 percent of exports and 26 percent of imports.

Topics: Qatar qatar trade

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