Feels like 1979: Nottingham Forest move into 2nd place behind rampant Liverpool in Premier League

Liverpool’s Egyptian striker Mohamed Salah celebrates scoring the team’s third goal during the English Premier League match against West Ham United at the London Stadium on Dec. 29, 2024. (AFP)
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Updated 30 December 2024
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Feels like 1979: Nottingham Forest move into 2nd place behind rampant Liverpool in Premier League

  • Liverpool are nine points ahead of Arsenal and 10 above Chelsea, with all three teams having played 18 games
  • Tottenham’s roller-coaster of a season had another downturn as Spurs conceded a late equalizer to draw 2-2 at home against Wolves

LONDON: The Premier League table is starting to have a 1979 kind of feel to it — with Liverpool at the top of the standings and Nottingham Forest in second place as the closest challenger.

Liverpool padded their lead with a 5-0 rout of West Ham on Sunday, while upstart Nottingham Forest climbed into second place by beating Everton 2-0 to continue their surprising push for a Champions League place.

Forest were runners-up behind Liverpool in the English top tier in 1979 — the same year they won the first of two straight European Cups under Brian Clough — but hasn’t finished that high in the domestic first division since then.

The club’s long-suffering fans finally have reason to believe that the good times are back under Nuno Espirito Santo. Although the Portuguese manager was the first to point out that his team may not stay in second place for very long.

“It doesn’t mean anything,” Nuno said of his team’s position. “We haven’t achieved anything yet.”

Forest could find itself back in fourth place by Jan. 1 as they are only one point above Arsenal and two ahead of Chelsea, with both London clubs having a game in hand.

Liverpool could prove a lot harder to overtake, though, as Arne Slot’s team only seems to be growing stronger and stronger.

The performance at West Ham was one of their most impressive yet, with five different players getting on the scoresheet — including Mohamed Salah, who netted the team’s third for his league-leading 17th of the season.

Salah also had an assist to take his tally to 52 goal contributions in all competitions for the calendar year 2024 — 29 goals and 23 assists.

Salah was asked after the match if he would soon have good news for fans about his future beyond the end of this season, when his contract expires. The Egyptian told Sky Sports: “No, we are far away from that.”

“The only thing on my mind is I want Liverpool to win the league and I want to be part of that,” Salah said. “I will do my best for the team to win the trophy. There is a few other teams catching up with us and we need to stay focused and humble and go again.”

Liverpool are nine points ahead of Arsenal and 10 above Chelsea, with all three teams having played 18 games.

Manchester City is 14 points back having played 19 games, after beating Leicester 2-0 away.

Guardiola marks milestone with win

In his 500th game in charge of Man City, Pep Guardiola had some reasons to smile again.

City marked Guardiola’s milestone with a win and a goal from Erling Haaland — things that the Spaniard used to take for granted but have been increasingly rare of late for the struggling four-time defending Premier League champions.

Savinho also netted his first goal for the club in a much-needed win, although the team still looked far from the juggernaut that has dominated English soccer for much of the Spaniard’s reign.

Leicester had several chances for an equalizer before Savinho set up Haaland for the second in the 74th as City ended a five-game winless run in all competitions.

“Just relief, that is the word to express how all of us feel,” Guardiola said. “It was not the ideal performance but hopefully the victories will give our mood a better position. ... Hopefully in the new year we can bounce back a bit from a bad moment.”

This was only the club’s second win in 14 games in all competition. And even against a team mired in the relegation zone, City was pegged back for much of the second half until Haaland’s header ended Leicester’s resistance.

Savinho put the team ahead in the 21st minute by pouncing on the rebound after Phil Foden drove forward and tried a low shot from distance that Leicester goalkeeper Jakub Stolarczyk pushed to the side. The ball fell into the path of the onrushing Savinho, who lifted it over the goalkeeper and into the net.

The winger then turned provider by lifting a perfect cross into the box for Haaland to head home the second, shortly after Jamie Vardy had missed a good chance for a Leicester equalizer.

Spurs drop points again

Tottenham’s roller-coaster of a season had another downturn as Spurs conceded a late equalizer to draw 2-2 at home against Wolves.

Ange Postecoglou has come under increasing criticism of late because of his team’s all-attacking style of play and the team’s defensive vulnerabilities were on display again as Jorgen Strand Larsen was afforded space to beat Fraser Forster at his near post in the 87th minute.

Wolves had taken the lead through Hwang Hee-chan after a well-worked free kick routine in the seventh minute, but Rodrigo Bentancur equalized five minutes later and Brennan Johnson gave Tottenham the lead on the stroke of halftime.

Substitute Dango Ouattara netted an even later equalizer for Bournemouth to draw 2-2 at Fulham, while Crystal Palace came from a goal down to beat last-place Southampton 2-1.


Saudi green bond market soars on sustainable financing shift

Updated 9 min 33 sec ago
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Saudi green bond market soars on sustainable financing shift

  • Kingdom’s Green Financing Framework provides a comprehensive roadmap for backing climate-focused initiatives

RIYADH: Saudi Arabia’s green bond market is experiencing dramatic growth, positioning the Kingdom as a major player in sustainable financing as it works to meet the ambitious objectives of Vision 2030.

Green bonds, together with sukuk, have seen a surge in popularity, offering critical funding for eco-friendly projects in areas such as renewable energy, sustainable water management, and waste reduction. 

Launched by the Ministry of Finance in March, Saudi Arabia’s Green Financing Framework provides a comprehensive roadmap for backing climate-focused initiatives, igniting interest from both domestic and foreign investors. 

This foundation underscored the Kingdom’s environmental commitments under initiatives like the Saudi Green Initiative, which aims to combat climate change, reach net-zero emissions by 2060, and drive a national transition toward sustainable practices.

CEO of Middle East and North Africa and Asia Pacific at Saxo Bank, Damian Hitchen highlighted their strategic value in an interview with Arab News: “Green bonds are a critical financial tool for advancing Saudi Arabia’s Vision 2030, especially in reducing oil reliance and promoting renewable energy.”

“They foster a more balanced and resilient economy by funding projects outside the oil sector, such as green infrastructure and renewable energy,” Hitchen explained.

Pioneering projects and government support fuel growth

Vision 2030 has made sustainability a cornerstone of Saudi Arabia’s economic strategy, launching the Saudi Green Initiative and the Circular Carbon Economy framework.

“The key factor responsible for the growth of green bonds is Saudi Arabia’s Vision 2030, which aims to reduce the nation’s dependency on oil and increase reliance on clean energy to protect the environment and diversify its economy,” said Vijay Valecha, chief investment officer at Century Financial. 

He added that “strong government support,” evident from initiatives like the Saudi Green Initiative, offers a framework for sustainable projects and regulatory support for green finance instruments.

Significant achievements include the $8 billion funding for NEOM’s green hydrogen plant — the largest such project in the Middle East. 

The growing awareness of environmental issues and the measures taken by the government to transition to a low-carbon future highlight the potential for green bonds.

Vijay Valecha, chief investment officer at Century Financial

Saxo Bank’s Hitchen noted that the Kingdom’s commitment to green bonds could set a regional precedent, adding: “Saudi Arabia is emerging as a key player in the GCC’s (Gulf Cooperation Council’s) green bond market, spurred by Vision 2030 and the Saudi Green Initiative, which prioritize renewable energy and carbon emission reductions.” 

Meanwhile, Century Financial’s Valecha saw that Saudi Arabia is rapidly catching up as a key player in this market, citing NEOM’s green hydrogen plant as “a significant development.”

Investor confidence in green bonds surges

Saudi Arabia’s sovereign wealth organization, the Public Investment Fund, first issued a green bond in 2022, underscoring its commitment by allocating billions of dollars toward green infrastructure, renewable energy, and sustainable water projects. 

Hitchen saw this as creating a ripple effect in the market.

“Investor appetite for green bonds in Saudi Arabia has grown substantially, with institutional and retail investors increasingly drawn to sustainable finance. A notable shift in demand has emerged as environmental, social, and governance factors gain importance in investment strategies,” he said.

Valecha confirmed this rising demand, noting that “the investor appetite for green bonds in Saudi Arabia, particularly from institutional investors, is significant and is surging rapidly.”

He added: “This is evident from recent green bond issuance by the Public Investment Fund, which raised $8.5 billion.”

Valecha anticipated that as the government continues to promote financial literacy and awareness around sustainable investing, retail participation will also rise, “particularly as more individuals understand the tangible benefits of green bonds.”

This growth in demand comes as PIF plans to direct an additional $19.4 billion toward green projects, reflecting confidence in the stability and potential of Saudi Arabia’s green bond market. 

“The growing awareness of environmental issues and the measures taken by the government to transition to a low-carbon future highlight the potential for green bonds,” Valecha added.

Driving economic diversification and long-term sustainability

The rapid growth of green bonds is not only drawing in substantial investments but also supporting Saudi Arabia’s economic diversification, promoting eco-friendly industries and generating new market opportunities. 

Hitchen said: “Green bonds contribute to long-term economic stability and resilience by funding these non-oil sectors. They are pivotal for renewable energy goals, financing projects like solar and wind power to help the Kingdom achieve up to 130 gigawatts of renewable energy by 2030.”

Valecha echoed the transformative impact of these investments, asserting that green bonds are key to “providing the necessary funding to support large-scale solar and wind power projects, thus reducing reliance on fossil fuels and transitioning the Saudi economy toward a low-carbon future.” 

This shift not only benefits the environment but also creates jobs and opens avenues for sustainable urban development, green transportation, and water conservation.

As the Kingdom’s financial markets continue to embrace green bonds, the regulatory framework and investor confidence have solidified, laying the groundwork for sustainable growth. 

Hitchen called for further steps to maintain this momentum, stressing the importance of “strengthening government support and establishing robust transparency standards to give investors confidence that their funds are driving genuine sustainability.” 

Valecha agreed, suggesting that a comprehensive green finance ecosystem is essential.

“The government should further strengthen the rules and regulations to boost investor confidence and attract more capital,” he said, adding: “A domestic green finance ecosystem, including ESG reporting standards and clearer tax incentives, can go a long way in supporting the demand for green bonds.”


German leader is more worried about Musk’s backing of a far-right party than his insults

Updated 5 min 9 sec ago
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German leader is more worried about Musk’s backing of a far-right party than his insults

  • Tech billionaire Elon Musk has endorsed the far-right Alternative for Germany (AfD) party ahead of German elections
  • Scholz described Musk as a rich media entrepreneur who did not "appreciate social democratic politics"

BERLIN: German Chancellor Olaf Scholz says he’s staying “cool” against critical personal comments made by Elon Musk but finds it worrying that the US billionaire makes the effort to get involved in a general election by endorsing the far-right Alternative for Germany (AfD) party.
Scholz was reacting after Musk, a close ally to US President-elect Donald Trump, called the chancellor a “fool” after his coalition government collapsed in November and later backed the AfD in an opinion piece he wrote for a major newspaper in Germany.
Scholz, head of the Social Democratic Party of Germany (SPD), said in comments published Saturday by the German magazine Stern that there is “nothing new” in criticism by “rich media entrepreneurs who do not appreciate social democratic politics and do not hold back with their opinions.”
“You have to stay cool,” Scholz told Stern.
“I find it much more worrying than such insults that Musk is supporting a party like the AfD, which is in parts right-wing extremist, which preaches rapprochement with Putin’s Russia and wants to weaken transatlantic relations,” Scholz said.
The AfD is monitored by Germany’s domestic intelligence service on suspicion of being right-wing extremist and has already been recognized as such in some individual German states.
Germany will hold an early parliamentary electionon Feb. 23 after Scholz’s thee-party coalition collapsed in November in a dispute over how to revitalize the country’s stagnant economy.
The vice chancellor and economy minister, Robert Habeck, also warned Musk against getting involved in Germany’s politics.
“Hands off our democracy, Mr. Musk!” Habeck said in an interview with the Spiegel magazine.
“The combination of enormous wealth, control over information and networks, the use of artificial intelligence and the willingness to ignore rules is a frontal attack on our democracy,” said Habeck, the Green Party’s candidate for chancellor.
Musk recently caused uproar after backing the AfD in an opinion piece for the Welt am Sonntag, leading to the resignation of the paper’s opinion editor, Eva Marie Kogel, in protest.
“The Alternative for Germany (AfD) is the last spark of hope for this country,” Musk wrote in his translated commentary.
The Tesla Motors CEO also wrote that his investment in Germany gave him the right to comment on the country’s condition.
The AfD is polling strongly, but its candidate for the top job, Alice Weidel, has no realistic chance of becoming chancellor because other parties refuse to work with the far-right party.


Connecting the Kingdom: Saudi Arabia’s 5G revolution

Updated 21 min 52 sec ago
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Connecting the Kingdom: Saudi Arabia’s 5G revolution

  • Industry’s value is expected to reach $13.41 billion by 2029 — up from $2.1 billion in 2023

RIYADH: Healthcare, urban living and transportation are all being revolutionized in Saudi Arabia thanks to the Kingdom’s enthusiastic adoption of 5G technology, experts have told Arab News.

The industry’s value in Saudi Arabia is expected to reach $13.41 billion by 2029  — up from $2.1 billion in 2023 — as Vision 2030 initiatives drive the Kingdom’s economic diversification, according to analysis by TechSci Research.

While telecommunications is the obvious sector to benefit from the rollout of this technology — which promises significantly faster data speeds, more reliable connections, and the ability to connect a multitude of devices simultaneously — it will expand the capabilities of many industries.

Nader Kobrosli, a partner in management consulting firm Oliver Wyman’s Communications, Media and Technology practice, said his company forecasts that this technology could provide an $18 billion boost to the economy by 2030. 

5G will play a crucial role in nurturing a knowledge-based economy, generating new job opportunities, and attracting foreign investments.

Nader Kobrosli, partner at Oliver Wyman’s Communications, Media and Technology practice

“By enabling high-speed connectivity, 5G fuels the adoption of AI and IoT, facilitating real-time data insights and enhancing efficiency across all major sectors, including manufacturing, retail, energy, healthcare, and public services. This means 5G will play a crucial role in nurturing a knowledge-based economy, generating new job opportunities, and attracting foreign investments,” Kobrosli said.

5G making cities smarter

By enabling smart city applications, 5G technology plays a crucial role in the Kingdom’s vision to transform its urban spaces into efficient, sustainable, and highly connected ecosystems.

“For residents, 5G facilitates seamless connectivity, enhances public safety, and improves transportation with real-time traffic management and autonomous vehicle integration,” said Federico Pienovi, chief business officer and CEO for Asia and Pacific as well as Middle East and North Africa at software development company Globant. 

5G facilitates seamless connectivity, enhances public safety, and improves transportation with real-time traffic management and autonomous vehicle integration.

Federico Pienovi, chief business officer and CEO for Asia, Pacific and MENA at Globant

“It provides the infrastructure for data-driven insights, remote operations, and business automation, leading to increased productivity and cost efficiency. This connectivity ecosystem enriches everyday life, attracts talent, and drives economic growth, making Saudi Arabia a model for smart city development in the region,” he added. 

5G-led IoT services have already accelerated the proliferation of ‘smart’ services and industrial automation use cases.

Sauvik Tegta, partner at Kearney Middle East & Africa — Communications, Media, and Technology practice

Oliver Wyman’s Kobrosli noted that from energy savings to improved traffic flow, 5G will enhance urban living, and this in turn will attract significant investments and help position Saudi cities as models of innovation in the digital age.

“Residents and businesses will also benefit from this advanced infrastructure, and will enjoy a more connected, efficient, and environmentally-friendly urban environment,” he said.

Undoubtedly, 5G technology is an important catalyst in Saudi Arabia’s smart city initiatives, providing cutting-edge connectivity for  new cities like NEOM and Qiddiya and existing conurbations such as Riyadh and Makkah.

“Through smart poles that incorporate 5G cell sites, KSA’s smart cities are empowered with intelligent use cases that enhance urban living — from connected transportation networks to energy-efficient buildings and smart utilities, all of which contribute to sustainability goals,” said Hazem Galal, partner, Cities and Local Government global leader, Smart Mobility Global co-leader, at PwC Middle East. 

Through smart poles that incorporate 5G cell sites, KSA’s smart cities are empowered with intelligent use cases that enhance urban living.

Hazem Galal, partner, cities and local government global leader, smart mobility global co-leader, at PwC Middle East

Sauvik Tegta, partner at Kearney Middle East & Africa — Communications, Media, and Technology Practice, stressed that 5G is a core enabler, supporting Internet-of-Things-based capabilities in the near term, and more data-heavy and low latency capabilities in the mid-to-long term. 

“5G-led IoT services have already accelerated the proliferation of ‘smart’ services and industrial automation use cases such as smart parking, smart lighting, smart meters and grids effectively modernizing an aging infrastructure,” he said.

The Kearney partner added that “ubiquitous high-speed mobile connectivity” now enables convenient “anywhere-anytime services” that are fundamentally reshaping social and work-life habits.

5G transforming healthcare

The rollout of 5G infrastructure is revolutionizing healthcare in the Kingdom, particularly in how services such as telemedicine, remote diagnostics, and AI-powered patient care, are delivered.

From Globant perspective, Pienovi said: “The high speed and low latency of 5G enable healthcare providers to extend their reach to remote areas through telemedicine and remote monitoring, allowing patients to connect with specialists without traveling, ultimately reducing congestion in urban hospitals.”

He added that 5G facilitates the integration of Internet of Medical Things devices, which optimize resource management and reduce costs by offering real-time data on patient health. 

“Lastly, the low latency of 5G supports advanced applications like robotic surgeries and AI-driven diagnostics, enhancing precision and safety in medical interventions and improving overall patient outcomes,” Pienovi said. From PwC’s side, Galal emphasized that 5G’s low latency and high data capacity mean that healthcare providers can deliver real-time, high-quality care remotely, reaching patients in rural or underserved areas and thus enhancing access to care.

“While KSA is considered a highly urbanized country with more than 80 percent living in cities, the remaining population lives in rural areas, where access to a full range of health care services can be challenging. Furthermore, 5G’s capabilities in handling massive amounts of medical data securely and efficiently support advanced research, predictive analytics, and precision medicine, which are reshaping how healthcare is delivered and experienced in the Kingdom,” the PwC partner said.

Tegta from Kearney said that Saudi Arabia’s 5G infrastructure played a vital role in supporting healthcare services during the COVID-19 pandemic.

“As lockdowns took effect, 5G infrastructure became central to enabling telemedicine, remote patient monitoring, virtual consultations, and self-care. Public and private health care service providers were able to leverage multiple apps to enhance transparency, improve care coordination, accelerate communication, and enable faster response times,” the Kearney partner said.

“This foundation is expected to accelerate the adoption of more advanced digital healthcare services that will be proactive, personalized, predictive, and preventative. By 2030, services such as e-triaging, enhanced self-service and self-care, high-definition digital imaging, telesurgery, and connected ambulances will become commonplace,” he added.

Supporting education 

According to Ian Khan, a technology futurist and author who writes on the subject of AI, 5G makes virtual and augmented reality accessible in classrooms, meaning students can explore a historical site or conduct experiments in a virtual lab from anywhere.

“In fact, VR and AR in education are projected to grow significantly, with the global market expected to reach $12.6 billion by 2025, largely driven by 5G technology. It’s also helping teachers personalize lessons because they can instantly access data on student progress and adjust in real-time,” Khan told Arab News.

“For rural areas, 5G bridges gaps by making remote learning smooth and reliable, ensuring all students have access to quality education. It’s a huge step toward a digitally savvy, future-ready workforce,” he added.

Rajesh Duneja, Partner at Arthur D. Little Middle East, said 5G technology is set to transform education in Saudi Arabia through developments such as enabling immersive augmented reality and virtual reality applications, and allowing students to engage in interactive, hands-on learning environments that make complex topics more accessible and engaging. 

“Additionally, 5G’s high-speed connectivity will enhance the quality of video and audio for online classes, especially in remote areas where traditional Internet may be less reliable,” Duneja said.

He also flagged up how 5G supports a vast network of IoT devices in the classroom, from interactive whiteboards to smart desks, enabling personalized learning experiences that cater to each student’s needs.

Saudi Arabia’s signal to the world 

Technology futurist Khan said that Saudi Arabia’s leadership in 5G didn’t happen by accident and is the result of strategic planning.

“The Kingdom invested heavily in telecom infrastructure, spending an estimated $1.5 billion by 2022, which aligns with our Vision 2030 goals to diversify the economy through digital transformation,” Khan said.

“Strong public-private partnerships, particularly with telecom companies like STC and Zain, helped speed up 5G deployment. Progressive regulations by the Communications and Information Technology Commission have also made it easier for telecoms to innovate, boosting Saudi Arabia’s position not just regionally but globally,” he added.

Arthur D. Little’s Duneja said the government’s investment in an expansive fiber network has been critical as it supplies the high-capacity backhaul needed to support 5G’s bandwidth demands.

“Additionally, streamlined regulations for international Internet connectivity have enabled easier data flow and stronger connectivity options. Support from the Ministry of Communications and Information Technology has also been crucial, with efforts to promote a thriving digital economy that positions the Kingdom at the forefront of technological innovation in the region,” he added.

Ranking third in 5G download speed across Europe, the Middle East, and Africa, according to Opensignal, only underscores Saudi Arabia’s commitment to being a technology leader.

With its 5G speeds reaching around 272.6 Mbps, the Kingdom’s advanced infrastructure is on display for the world to see.

“This achievement lays a strong foundation for advances in everything from AI to smart cities. High-speed connectivity means we can support the next generation of tech innovations, like autonomous vehicles and IoT networks, that require reliable, fast data,” Khan said.

“It’s a signal to the world that Saudi Arabia is serious about its digital future, making it an attractive hub for global tech investments and partnerships,” the technology futurist added.


Bahrain shock Oman for Gulf Cup glory

Updated 33 min 59 sec ago
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Bahrain shock Oman for Gulf Cup glory

  • Win sparked wild celebrations among the Bahrain fans in the crowd of almost 60,000

KUWAIT CITY: Bahrain won the 26th Arabian Gulf Cup on Saturday, defeating Oman 2-1 in a dramatic final in Kuwait City.
With 12 minutes remaining Oman were ahead, but two goals in two minutes late in the game gave Bahrain — with Mohamed Marhoon making the difference — a second triumph in the regional competition, six years after lifting the trophy.
For a long time at the Jaber Al-Ahmad International Stadium, however, it looked as if the prize was heading to Muscat for a third time.
It took Oman, who defeated Saudi Arabia 2-1 in the semifinal on Tuesday, just 17 minutes to take the lead, and it came from a corner.
Ali Al-Busaidi swung over a cross, and there was Abdulrahman Al-Mushaifri to find a little space at the edge of the 6-yard box to head home in emphatic fashion.
Both teams continued to have chances, and it was always going to be the case that the next goal would be crucial.
It went to Bahrain, who leveled after 79 minutes. Marhoon was brought down in the area by Jameel Al-Yahmadi, and the hero of the semifinal win over Kuwait dusted himself down to fire home from the spot.
Just moments later and Bahrain were ahead thanks to more great work from the goal-scorer. Marhoon advanced to the left byline once more, and looked to pull back for waiting teammates in the area.
Instead, however, the ball was diverted into his own net by Mohamed Al-Musalami to spark wild celebrations among the Bahrain fans in the crowd of almost 60,000.
Oman did their utmost to get back on level terms, but Bahrain held on for the next 10 minutes of regular time and the 15 added on at the end, to start the new year in the happiest of fashions.


Egypt’s Connect Money gets ready to land in Saudi Arabia

Updated 44 min 47 sec ago
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Egypt’s Connect Money gets ready to land in Saudi Arabia

  • Firm officially planning to enter the Saudi market by mid-year 2025

RIYADH: Saudi Arabia’s fintech growth has grabbed the attention of Egypt’s Connect Money as the company commences its expansion plan.

Founded this year by Ayman Essawy, Marwan Kenawy, and Momtaz Moussa, Connect Money provides a white-label card issuing platform that allows businesses to offer debit and credit cards to their customers without building fintech infrastructure or securing regulatory licenses.

In an interview with Arab News, Essawy, the company’s CEO, stated that Connect Money is officially planning to enter the Saudi market by mid-year 2025 and will then aim to expand to Morocco.

“We see a very big opportunity toward expansion, especially in Saudi Arabia and Morocco. Saudi Arabia is one of the hot topics in the region and fintech is growing significantly,” he said.

“We have strong connections with the whole Saudi ecosystem, and we have built a good relationship with the regulators and leading financial providers there and partner banks,” he added.

“We found that there is a need for our services to further accelerate fintech growth in Saudi Arabia,” Essawy claimed.

The CEO further said that once the expansion to Saudi Arabia begins, 80 to 90 percent of the company’s focus will be dedicated toward the Kingdom.

“We have spent the last 10 years operating on the business-to-business side in our past ventures and we claim to have very good market understanding across different sectors,” he added.

He further claims that after operating in Saudi Arabia for seven years at his first venture, Dsquares, the founder was able to carefully identify the market gaps in the financial industry.

The CEO also takes pride in being a serial entrepreneur and the founder of Egypt’s largest coupon platform Lucky ONE.

A problem to solve

Essawy explained that the company solves three critical problems for any large enterprise planning to incorporate strong fintech solutions internally.

He cited “very long compliance and regulatory cycles” for these companies as an issue, adding: “These cycles occur because they do not have the capability to build an infrastructure since they already operate a core business be it telecom, logistics, and even oil and gas.”

The CEO went on to say: “Second is the very high cost of building the infrastructure, so first, it takes a very long time to get granted a license and second is that there’s a very high cost for building and operating this part of the business.” 

We have spent the last 10 years operating on the business-to-business side in our past ventures and we claim to have very good market understanding across different sectors.

Ayman Essawy, Connect Money CEO

Thirdly, Essawy explained that these entities usually look for reasons to turn cash users into cashless, a value-added service that Connect Money provides.

When asked why companies would even pursue such a solution, Essawy replied: “It’s one of two things. First, operational efficiencies, so turning cash cycles, which is very expensive in terms of efficiency and makes the business operational cycle much longer, cost of actually collecting cash or disbursing cash is already high.  “So, turning this operational role or operational service into a cashless service, and that happens through issuing white-label cards.”

He added: “Second is generating new revenue streams. These come from banking services such as transactions, credit, providing credit to businesses, basically financing with businesses and so on.” 

Essawy further said that the solution provided by Connect Money is basically putting all these services into a “one-stop shop” for embedded finance.

“This shop comes from getting the right approvals from regulators, issuing white-label cards, and providing a full managed service on top of that, as if I’m creating your small bank for your company,” he said.

The CEO cited the ride-hailing giant Uber as an example, stating that the solution would give the global company a small bank for its drivers to manage, open, and issue cards as well as create accounts and put incentives.

“This solution would be completely managed by Connect Money, yet the client has full ownership of the service,” he added. “Basically, as a company, you own the customers, you own the operations, and you own everything legally, but Connect Money is managing them on your behalf,” he explained.

The company has already incorporated itself into the Kingdom’s market and will soon announce the hiring of its Saudi-based founding member to lead the local office.

Business fundamentals

Connect Money has already seen significant traction in Egypt, landing eight contracts in under a year of operation. The company also has a 10-week go-to-market plan to onboard clients.

Essawy also stated that the company is currently the sole provider of such services in the region, but the founder also expects competition to increase as the market scales.

The founder explained that Saudi Arabia holds a different market segmentation, and that there is a misconception that the nation only consists of high-value customers.

“There is a lot to be tackled in the mid layers with the hyper growth that is taking place in the Kingdom,” he added.

“We believe that there is a significant opportunity for new segments and new mid-sized businesses that would require our services. We still believe that there is still a big gap between cash and cashless transactions which we aim to bridge,” he added.

He further emphasized that the market dynamics are almost completely different from Egypt.

Essawy also shared his view on the growing number of Egyptian companies expanding to Saudi Arabia, saying: “I’ve seen many companies expand to Saudi Arabia as a first choice and I don’t think this is a wise decision.”

He added: “I think each business model is dependent on what’s the end goal and where you can scale. In Saudi Arabia, you’ll find business but you’ll also find an expensive working environment.”

He further advises any company expanding to Saudi Arabia to reexamine their margins and growth pace before taking that step.