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Startups of the Year: Zid and Salla revolutionize Saudi Arabia’s e-commerce landscape 

Saudi startups drove innovation in the online retail sector in 2024. Shutterstock
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Updated 01 January 2025
Nour El-Shaeri 
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Startups of the Year: Zid and Salla revolutionize Saudi Arabia’s e-commerce landscape 

  • Zid platform allows merchants to manage e-commerce stores, social media sales, and physical outlets from a single dashboard
  • Salla has cemented its position as a major player in the Kingdom’s rapidly growing digital economy
Updated 01 January 2025
Nour El-Shaeri 

RIYADH: E-commerce in Saudi Arabia witnessed a landmark year in 2024, with startups Zid and Salla leading the charge to reshape the Kingdom's — and region’s — digital economy.  

These two firms have empowered merchants, enhanced digital infrastructure, and set the stage for exponential growth in Saudi Arabia’s online retail sector. 

Zid: Where commerce meets innovation 

For Zid, a Riyadh-based e-commerce enabler, the introduction of its “Total Commerce” vision at Ripple 2024 marked a defining moment in its scale-up journey.  

In an interview with Arab News, Sultan Al-Asmi, CEO and co-founder of Zid, described the launch as a milestone that “wasn’t just a product launch; it was the unveiling of a unified ecosystem designed to redefine how merchants in Saudi Arabia — and eventually the region — conduct business.”  

The platform allows merchants to manage e-commerce stores, social media sales, and physical outlets from a single dashboard.  

He further emphasized Zid’s partnerships with platforms like Amazon, Snapchat, TikTok, and Meta, as well as its integration of artificial intelligence-powered tools, which are designed to “future-proof commerce in the Kingdom and across the region.”  

Al-Asmi said: “Saudi Arabia’s e-commerce landscape is expanding rapidly, but logistical inefficiencies remain a significant barrier, especially for small and medium-sized businesses looking to scale globally.”

To address these challenges, Zid introduced a unified logistics dashboard to simplify inventory management and shipment tracking.  

The company also launched flexible financing options to help merchants manage shipping costs and expand their reach.  

“By integrating platforms like TikTok Shop and Amazon Marketplace and introducing AI-powered marketing tools, we’ve provided our merchants with innovative solutions to adapt to these changes and positioned them to capitalize on opportunities to drive sustainable growth,” Al-Asmi added.   




Sultan Al-Asmi, CEO and co-founder of Zid. Supplied

The co-founder said that 2024 has been a year of exponential growth for Zid as the company transitions from “start-up to scale-up.”

Zid’s efforts have resulted in exponential growth. In 2024, its merchant base increased by over 30 percent, surpassing 12,000 active users, while the stock-keeping units on its platform exceeded 4 million.  

The company also processed billions of transactions, providing valuable insights into Saudi commerce.  

Al-Asmi highlighted the tangible impact of Zid’s solutions, stating, “Merchants on our platform have consistently increased both average basket sizes and conversion rates by 50 percent, reflecting the effectiveness of our solutions in driving larger transactions compared to our competitors,” he said. 

“Additionally, our merchants experienced a 25 percent year on year growth in GMV (Gross Merchandise Value) and significant growth in the average number of orders per merchant, reinforcing Zid’s role as a reliable growth partner,” Al-Asmi added, going on to say that merchants who participated in Zid’s “10x” program saw their revenues grow tenfold. 

In addition to its technical innovations, Zid credits its internal culture for its success. “At Zid, our culture is rooted in collaboration, resilience, and a relentless focus on merchant success,” said Al-Asmi.  

He noted that the company’s leadership team draws on years of experience in Software-as-a-Service, retail, e-commerce, and technology, which has enabled the team to tackle complex challenges.  

As Zid looks ahead to 2025, the company is focused on deepening its impact in Saudi Arabia while expanding its regional presence across the Gulf Cooperation Council.  

Al-Asmi shared the company’s priorities for the coming year, stating, “Our priorities include further enhancing the Total Commerce ecosystem by introducing advanced AI capabilities, expanding Zid Financing to make capital more accessible to merchants, and driving adoption of cross-border commerce solutions.”  

He emphasized that cross-border commerce represents a significant growth opportunity for Saudi merchants.  

“GCC consumers have a deep appreciation for Saudi products due to their exceptional quality, cultural relevance, and value,” Al Asmi said, highlighting Zid’s efforts to strengthen logistics infrastructure and integrate platforms like Trendyol and Noon to its marketplace suite, which already includes Amazon Marketplace. 

Al-Asmi underscored that sustaining momentum requires both innovation and collaboration. 

“We plan to strengthen our existing collaboration with global platforms like Snapchat, Google, Meta, and TikTok while continuing to invest in local talent and infrastructure,” he explained. 

“Our goal is to create an environment where every merchant can compete and win, regardless of size,” Al-Asmi stated. “With the groundwork laid this year, we are confident that Zid is well-positioned to lead the next chapter of commerce innovation in the region.” 

The company has raised $59 million in funding to date, with its latest series B round garnering $50 million in 2021. 

Salla: Empowering Saudi e-commerce growth 

Salla, one of Saudi Arabia’s leading e-commerce enablement platforms, has cemented its position as a major player in the Kingdom’s rapidly growing digital economy through a series of high-profile partnerships and strategic milestones in 2024.  

From securing substantial pre-initial public offering funding to integrating advanced tools for merchants and expanding digital payment solutions, Salla continues to shape the future of online business in the region. 

In one of the year’s most notable announcements, Salla closed a $130 million pre-IPO investment round led by Investcorp, with participation from Sanabil Investment, a company owned by the Public Investment Fund, and STV, an existing shareholder.  

“We are deeply grateful for the trust and investment from Investcorp and Sanabil in Salla, which reflects their confidence in our vision and our platform’s potential,” said Nawaf Hariri, CEO and co-founder of Salla.  

The funds are expected to fuel the company’s growth as it supports over 80,000 active merchants across the region. Hariri emphasized Salla’s commitment to “empowering individuals, SMEs, and enterprises to start and expand their businesses both within and beyond Saudi Arabia.” 

Salla’s platform has already enabled over $7 billion in e-commerce sales since 2020 and is tapping into Saudi Arabia’s $20 billion e-commerce market, which is projected to grow by more than 25 percent annually.  




Nawaf Hariri, CEO and co-founder of Salla. Supplied

With a proprietary SaaS solution, Salla allows merchants to launch fully digitalized and automated online stores within hours, integrating payment solutions, logistics, and a suite of over 400 applications to support businesses throughout their lifecycle. 

The company also strengthened its technology offering through a partnership with Adjust, a global analytics and measurement firm. This integration allows Salla merchants to access advanced app analytics tools, enabling them to optimize campaign performance and scale their businesses.  

Amin Fadul, VP of Product at Salla, highlighted the benefits of this collaboration: “By leveraging Adjust’s powerful analytics and attribution tools, our users will have access to deeper insights into customer behavior, allowing them to make data-driven decisions that enhance their marketing strategies and drive growth.”  

Adjust’s features, such as customer journey tracking, deep linking, and smart recommendations, complement Salla’s native mobile app maker to help merchants expand their mobile commerce capabilities. 

Further enhancing its ecosystem, Salla partnered with STC Bank, Saudi Arabia’s first licensed digital bank, to integrate it as a payment option across more than 80,000 online stores powered by Salla.  

This partnership offers merchants and their customers secure and convenient digital payment options directly through STC Bank accounts. By streamlining payment processes, the collaboration aims to boost digital payments and support the Kingdom’s broader digital transformation goals.  

“This integration is expected to contribute to a more seamless shopping experience for online customers while reinforcing Salla’s role as a leader in the Saudi e-commerce market,” STC Bank said in its announcement.

Topics: Start-up of the Week

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Can the green tea wave topple the Middle East’s coffee culture?

Updated 31 May 2025
Miguel Hadchity
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Can the green tea wave topple the Middle East’s coffee culture?

  • In Dubai, Abu Dhabi, and Riyadh, specialty cafes now offer matcha lattes alongside traditional karak chai
Updated 31 May 2025
Miguel Hadchity

RIYADH: Once reserved for Japan’s sacred tea ceremonies, matcha has become a global sensation, infusing everything from lattes and desserts to skincare routines. Now, it is entering the Middle East, where coffee has long held cultural and culinary dominance.

Matcha’s rise in the MENA region is driven by health-conscious millennials, social media-friendly cafe culture, and a booming fitness scene. With its high antioxidant content, clean caffeine boost, and vibrant green hue, it’s quickly become a favorite among wellness enthusiasts.

But can it compete with the deeply ingrained coffee rituals of the Arab world, where coffee and espresso are daily staples?

The economic landscape: Aligning with Vision 2030

As part of its ambitious Vision 2030 initiative, Saudi Arabia is actively working to diversify its economy and reduce its long-standing reliance on oil revenues. Central to this transformation is the food and beverage sector, which has emerged as a key driver of economic growth.

In 2022, the food and agriculture sector contributed approximately SR100 billion ($26.6 billion) to the Kingdom’s gross domestic product, the highest on record.

The government aims to attract $20 billion in investments into the food industry by 2035, focusing on enhancing food security and broader economic sustainability.

Supporting this momentum is the “Made in Saudi” initiative, launched in 2021 to boost domestic production and services. One of its core goals is to raise the non-oil sector’s contribution to gross domestic product from 16 percent to 50 percent by 2030, making room for innovative products and emerging markets, including health-focused offerings like matcha.

A growing opportunity: the regional matcha market

This strategic shift aligns well with the rising demand for functional foods and beverages across the region. In the Middle East and Africa region, the matcha market is experiencing steady growth, signaling a strong opportunity for Saudi Arabia to enter a promising space.

In 2023, the MEA matcha market generated approximately $86.1 million in revenue, and projections estimate it will grow to $110.7 million by 2030, reflecting a compound annual growth rate of 3.6 percent.

Notably, ceremonial grade matcha, the highest quality used in traditional preparation, is currently the top revenue-generating segment and is expected to see the fastest growth, underscoring the premium positioning of matcha and consumer interest in wellness-driven, culturally rich products.

Matcha vs. coffee: A nutritional and cultural perspective

To better understand matcha’s potential in the Middle East, licensed Lebanese dietitian Reem Harb compared it to coffee in terms of health benefits, energy effects, and cultural fit.

A shade-grown green tea consumed in powdered form, matcha boasts superior levels of phytochemicals like chlorophyll and quercetin, as well as antioxidants such as epigallocatechin gallate, compared to other green teas. However, its caffeine content sits between traditional green tea and coffee.

Unlike coffee, matcha provides a gentler energy boost without a crash. “This is due to the presence of L-theanine, an amino acid that interacts with caffeine to improve cognitive function and energy levels,” Harb said in an interview with Arab News. 

Ceremonial matcha is often used for lattes or smoothies due to its perceived health benefits, but this reduces availability for traditional preparations.

Simona Suzuki, president of the Global Japanese Tea Association

The Middle East’s coffee culture is deeply rooted in tradition, from Turkish coffee ceremonies to the social ritual of sharing Arabic coffee. With its earthy and slightly bitter taste, Matcha may initially clash with regional preferences for sweet, aromatic beverages.

However, Harb believed matcha could complement traditional diets if introduced thoughtfully. “Matcha lattes can be a healthier alternative to sugary drinks, especially when prepared without added syrups. Alternating between Arabic coffee and matcha could diversify beverage choices while preserving cultural experiences,” she suggested. 

From Kyoto to the MENA: Matcha’s Global Surge

While matcha’s health benefits make it appealing, its journey from Japanese tea fields to Middle Eastern cafes hasn’t been without challenges.

Japan’s matcha industry has seen production nearly triple since 2010, with exports soaring as global demand skyrockets.

This surge in demand, however, has sparked concerns about shortages, prompting renowned Kyoto tea houses like Ippodo and Marukyu Koyamaen to impose purchase limits last year. Social media buzz and the rising demand for functional foods have turned matcha into a must-have trend that Middle Eastern cafes and startups are racing to meet.

Speaking with Arab News, Simona Suzuki, president of the Global Japanese Tea Association, said: “While matcha production in Japan is increasing, it remains relatively limited in scale ... Global demand has surged dramatically, leading to shortages in Japan.” 

The rapid growth has strained supply chains, and Suzuki noted it may take time for production to catch up. She also emphasized the importance of using matcha appropriately: “Ceremonial matcha is often used for lattes or smoothies due to its perceived health benefits, but this reduces availability for traditional preparations.” 

In Dubai, Abu Dhabi, and Riyadh, specialty cafes now offer matcha lattes alongside traditional karak chai, while local brands experiment with regional twists like matcha-infused dates or cardamom-dusted matcha desserts. 

Importing high-grade matcha, however, which relies on specific Japanese tea plant varieties like samidori and yabukita, is costly and logistically complex. 

Suzuki encouraged businesses to build direct relationships with producers: “We strongly encourage visiting Japan to connect with tea growers and gain a deeper understanding of cultivation and processing.”

In 2024, THE MATCHA TOKYO, a Japanese organic matcha brand, made its Gulf Cooperation Council debut with a beachside cafe in Dubai. The brand chose Dubai due to the strong presence of Emirati customers at its Tokyo outlets. Beyond Japan and the GCC, THE MATCHA TOKYO has expanded across Asia, with locations in Hong Kong, the Philippines, Bangkok, and Shanghai. 

Suzuki remained optimistic about the future of Japanese teas in the region, stating that while matcha is popular, the Global Japanese Tea Association is passionate about introducing the full spectrum of authentic Japanese teas, including sencha, gyokuro, hojicha, and wakocha, to the world.

As Middle Eastern consumers increasingly prioritize wellness while staying rooted in tradition, matcha isn’t replacing coffee, but it’s carving out a lasting niche of its own.

Topics: matcha Green tea coffee

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Mining, entertainment sectors eye 100bn in investments by 2030

Updated 31 May 2025
Nirmal Narayanan
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Mining, entertainment sectors eye 100bn in investments by 2030

  • Ongoing regulatory reforms are making the Kingdom an attractive destination for foreign investments
Updated 31 May 2025
Nirmal Narayanan

RIYADH: Saudi Arabia is steadily progressing in its journey to attract $100 billion in foreign direct investments by the end of this decade, with the Kingdom heavily focusing on securing funds in high-growth sectors, experts have said.

Saudi Arabia’s Vision 2030 economic diversification program aims to transform its economic landscape, including attracting foreign direct investment and increasing FDI’s contribution to the Kingdom’s gross domestic product.

To facilitate and increase FDI, in August Saudi Arabia approved an updated investment law, aimed at boosting transparency and easing the process of investing in the Kingdom.

Speaking to Arab News, Emilio El-Asmar, partner at Oliver Wyman’s Government and Public Institutions practice – India, Middle East and Africa, said that the mining sector is one of the most promising industries that will help the Kingdom achieve its FDI goals by 2030.

He also pointed out that the ongoing regulatory reforms happening in Saudi Arabia are making the Kingdom an attractive destination for foreign investments.

“Saudi Arabia’s National Investment Strategy, central to Vision 2030, aims to transform the Kingdom into a globally competitive, innovation-driven economy,” said El-Asmar. 

Saudi Arabia offers geopolitical neutrality, long-term offtake potential, and value-add opportunities.

Emilio El-Asmar, partner at Oliver Wyman’s Government and Public Institutions practice – India, Middle East and Africa

He added: “Mining and metals are among the most promising areas, as the Kingdom has $2.5 trillion worth of untapped resources, including gold, copper, lithium, and rare earth elements, which are vital to energy transition and global industry. Regulatory reforms and integrated industrial zones are opening this frontier market to international investment.”

The comments from the Oliver Wyman official come after Saudi Arabia launched a new incentive package to attract foreign direct investments into the nation’s mining sector.

The Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry, the Saudi Press Agency reported in March.

Ryan Alnesayan, partner at Arthur D. Little in the Middle East region, also echoed similar views and said that the mining sector could become a game changer in Saudi Arabia’s economic diversification journey.

“The new mining law and exploration incentives are attracting serious interest, and the Kingdom is positioning itself as a global mining hub with reliable data, infrastructure, and long-term demand,” said Alnesayan.

El-Asmar further said that Saudi Arabia’s Ras Al-Khair and Wa’ad Al Shamal offer integrated infrastructure, rail and port access, and proximity to downstream processing, making them investment-friendly destinations for international entities.

“These ecosystems support refining, smelting, and metal fabrication. A pipeline of investable projects, from exploration to processing, is backed by national institutions including the Public Investment Fund and industrial champions,” said the Oliver Wyman official. 

Global players are investing in everything from gaming and digital media to smart cities and AI.

Ryan Alnesayan, partner at Arthur D. Little in the Middle East region

He added: “As global supply chains seek secure mineral sources, Saudi Arabia offers geopolitical neutrality, long-term offtake potential, and value-add opportunities. Its location between Africa, Asia, and Europe gives investors access to regional growth markets.”

In January, speaking at the Future Minerals Forum, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef said the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the Kingdom’s broader plans to establish mining as the third pillar of its industrial economy.

In May, a report released by the General Authority for Statistics revealed that net FDI into Saudi Arabia stood at SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, representing a rise of 26 percent compared to the previous three months.

GASTAT also added that this figure was the highest level across the year, surpassing the SR15.5 billion seen in the first three months of 2024, the SR19 billion recorded in the second quarter, and the SR17.5 billion witnessed in the third.

This development comes after Saudi Arabia rose to 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index, published in April.

This is up one spot from last year and also means the Kingdom retained its position as the third-most attractive emerging market, signaling continued global confidence in its transformation strategy.

Kearney added that the ranking reflects the nation’s bold, reform-driven approach to building an internationally competitive, future-ready economy.

Other crucial sectors

El-Asmar also outlined other crucial areas that could drive FDI into Saudi Arabia in the coming years.

According to the Oliver Wyman official, sectors including pharmaceuticals, biotechnology and petrochemicals are also expected to see foreign funds pour into the Kingdom.

He added: “In petrochemicals, Saudi Arabia is expanding beyond crude oil into speciality chemicals, high-performance plastics, and packaging, backed by integrated feedstock and logistics infrastructure.”

El-Asmar said that Saudi Arabia is ranked second among G20 countries in digital competitiveness, and the Kingdom has strong infrastructure, forward-looking regulations, and digital competitiveness capable of drawing FDI in AI, cloud, cybersecurity, smart city tech, fintech, and health tech.

“Incentives include regulatory sandboxes, IP protections, and access to a growing consumer and enterprise market, making the Kingdom attractive for global tech firms and startups,” said El-Asmar.

Alnesayan also highlighted the role of technology and entertainment sectors in materialising Saudi Arabia’s FDI goals.

“Entertainment and tech reflect Saudi Arabia’s new growth story. Global players are investing in everything from gaming and digital media to smart cities and AI. These sectors are fueling job creation, innovation, and a dynamic consumer market,” said the Arthur D. Little official.

El-Asmar agreed that the entertainment sector is central to Saudi Arabia’s diversification and FDI strategy, reflecting cultural openness and rising domestic demand.

“With a population of 35 million and rising demand for premium experiences, the Kingdom is seeing growth in cinemas, theme parks, live events, and content production. Major international brands are entering the market, supported by co-investment and giga-projects like Qiddiya,” he said.

RHQ program and FDI

Alnesayan believes that Saudi Arabia’s regional headquarters program is emerging as one of the key drivers of FDI in the Kingdom.

“The RHQ Program is not just about relocating offices — it’s about anchoring decision-making in Riyadh. That brings investment, talent, and deeper regional integration. We’ve already seen over 600 companies commit, and the momentum is accelerating,” he said.

Saudi Arabia’s regional headquarters program offers incentives such as a 30-year corporate income tax exemption, withholding tax immunity, and various support services for international businesses.

Some of the noted firms that relocated their headquarters to the Kingdom are Northern Trust, Bechtel and Pepsico from the US, and IHG Hotels and Resorts, PwC, and Deloitte from the UK.

El-Asmar also highlighted the importance of the RHQ program and said that Saudi Arabia’s location — at the crossroads of Europe, Asia, and Africa — makes it an ideal base for regional operations.

Potential challenges

Despite all these positive developments, experts also outlined some of the challenges Saudi Arabia could face in achieving its FDI targets within the stipulated timeline.

“The fundamentals are strong, but challenges remain — global volatility, talent gaps, and the need for ongoing regulatory clarity. But the Kingdom is addressing these head-on through reforms, infrastructure investment, and strategic partnerships that reduce risk and increase investor confidence,” said Alnesayan.

El-Asmar said that foreign investors need predictability, and to address this, Saudi Arabia has launched the Investor Confidence Protection Mechanism and Investor Council, alongside legal reforms including English-language documentation and digital licensing portals.

“High operational costs and complex procedures persist in some sectors. Special Economic Zones, tax incentives, and digital services are helping to reduce these barriers and simplify market entry,” said El-Asmar.

He concluded: “While these challenges are real, Saudi Arabia’s strategic reforms, long-term vision, and favorable location continue to make it one of the world’s most promising emerging FDI destinations.”

Topics: foreign direct investment Saudi mining Saudi entertainment

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MENA startups accelerate with strategic deals

Updated 31 May 2025
Nour El-Shaeri
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MENA startups accelerate with strategic deals

  • Investors position for scale amid a rapidly evolving market landscape
Updated 31 May 2025
Nour El-Shaeri

RIYADH: Startups across the Middle East and North Africa continued to attract capital, pursue strategic acquisitions, and expand regional footprints this week, underscoring the growing momentum in the region’s innovation ecosystem. 

From early-stage funding rounds to regulatory milestones, founders and investors are positioning for scale amid a competitive and rapidly evolving market landscape. 

On the acquisition front, UAE-based Tech Universal Ventures has taken over the majority share of FixSquad, an Emirati mobile and electronics servicing brand, and ELVA11, a Swedish AI and software consultancy, as part of its strategy to build a global network of digital infrastructure companies. 

FixSquad operates across the Gulf Cooperation Council region with a hybrid consumer-enterprise model and is introducing a regional franchise framework, while ELVA11 offers software development, AI consulting, and digital education services from its offices in Malmo and Stockholm. 

“These acquisitions reflect our strategy to build and back companies delivering core infrastructure for digital growth,” said Darko Atijas, chief operating officer at TUV.

Fintech startup Stitch raises $10m seed round 

Riyadh-based Stitch has secured $10 million in a seed round led by Arbor Ventures, COTU Ventures, Raed Ventures, and Saudi Venture Capital, with additional support from family offices and angel investors. 

Founded in 2022, the company offers an API-driven platform that allows financial institutions to build and deploy digital solutions more efficiently than legacy infrastructure. 

“At Stitch, our vision is to reinvent how financial and non-financial institutions bring banking and payment products to market,” said Mohamed Oueida, founder and CEO of Stitch.  

Qashio secures $19.8m to expand into KSA 

UAE-based spend management platform Qashio has raised $19.8 million in equity and non-equity funding. 

The round was led by Rocketship VC, with participation from MoreThan Capital, regional banks, and family offices. 

Founded in 2021, Qashio plans to enter the Saudi  market and enhance its B2B loyalty program across MENA. 

Qashio previously raised $10 million in a seed round in 2022.

BirdEye raises $586k pre-seed 

Saudi startup BirdEye has closed a $586,000 pre-seed funding round led by a private tech-focused fund. 

Founded in November by Abdullah bin Omairah and Abdulrahman Al-Hassan, BirdEye offers an operations management platform tailored for small and medium-sized retailers undergoing digital transformation. 

The investment will support the company’s national expansion and team growth. 

Gainz closes 7-figure pre-seed round 

UAE-based Gainz has raised a 7-figure US dollar pre-seed round in a mix of equity and debt led by Antler MENAP, Lithium Holdings, and Eleventh Invest Inc. 

Founded in December, Gainz offers a Shariah-compliant crowdfunding platform that allows individuals to invest in vetted SMEs. 

The platform leverages AI to democratize access to working capital for businesses across the region. 

The new funding will go toward scaling operations and product innovation. 

COREangels MEA launches $10m fund 

COREangels MEA, in partnership with PTS Holdings and the Arab Academy, has launched a $10 million investment fund focused on early-stage fintech startups aligned with the UN Sustainable Development Goals. 

During its 5th Investment Committee in Cairo, five startups — eMaisha Pay, RentBeta, Aqua Offers, Monak, and Reeple — were selected to receive up to $150,000 each. 

The fund employs a hybrid model combining global angel networks with local innovation expertise.

Toolmart raises seed funding 

Iraq-based B2B e-commerce startup Toolmart has secured seed funding from Plus VC, Oasis500, and other angel investors. 

Founded in 2022, Toolmart provides a digital procurement platform that helps enterprises reduce costs and streamline sourcing. 

The new capital will be used to expand its team and operations across the region. 

Founded by Abdullah bin Omairah and Abdulrahman Al-Hassan, BirdEye offers a management platform for retailers. (Supplied)

Valu to begin trading on EGX in June 

Egypt’s leading buy now, pay later platform Valu is set to begin trading on the Egyptian Exchange during the week of June 22, following an in-kind share distribution by parent company EFG Holding. 

Official listing occurred on May 21, 2025. 

Founded in 2017, Valu operates in Egypt and Saudi Arabia and reported 3.1 billion Egyptian pounds in gross revenue and 423 million Egyptian pounds in net profit for 2024. 

Bloomspoon gets $218k on Shark Tank Dubai 

UAE-based greentech startup Bloomspoon raised $218,000 for 49 percent equity on Shark Tank Dubai. 

Founded in 2023 by Mostafa Khattab, Bloomspoon makes reusable cutlery from wheat straw embedded with seeds that can be planted after use. 

The funding will help expand product lines, boost retail distribution, and work toward B Corp. certification. 

Google launches second ‘AI First’ accelerator 

Google has launched the second edition of its “Google for Startups Accelerator: AI First” program for the MENA and Turkiye region. 

The 12-week program is aimed at Seed to series A startups using AI to develop scalable solutions. 

It offers technical resources including cloud credits and mentorship. 

MENA sees 31 percent increase in M&A deals in Q1, led by UAE and tech sector 

According to EY’s MENA M&A Insights report, the region recorded 225 deals worth $46 billion in the first quarter of the year, a 31 percent year-on-year increase in volume and 66 percent rise in value. 

Cross-border activity accounted for over half of all agreements and 81 percent of total value. 

The UAE led with 63 deals totaling $20.3 billion. The technology sector dominated domestic M&A, accounting for 37 percent of deal value. 

The largest domestic transaction was Group 42’s $2.2 billion acquisition of a 40 percent stake in Khazna Data Centers.

Topics: Start-up of the Week MENA startups

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Saudi Aramco could tap debt markets again after $5bn bond sale

Updated 30 May 2025
Reuters
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Saudi Aramco could tap debt markets again after $5bn bond sale

Updated 30 May 2025
Reuters

DUBAI: Saudi Aramco has published a new prospectus for its issuance program of Islamic bonds or sukuk, signalling the state oil major may soon tap the debt markets again after it raised $5 billion from a three-part bond sale this week.

The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30. Aramco has a year to issue sukuk under its terms.

Aramco earlier this week raised $5 billion from a sale of conventional bonds. The borrowing comes after economic uncertainty and rising supply hit crude markets, denting the top oil exporter’s profits.

“Aramco is likely looking to take advantage of a window of relative market calm to issue debt again,” said Zeina Rizk, co-head of fixed income at Amwal Capital Partners.

Aramco in March said it expected to slash its dividend this year by nearly a third as profits and free cash flow decline.

Reuters reported last week that Aramco is exploring potential asset sales to free up funds as it pursues international expansion and weathers lower crude prices.

Citi, HSBC and JPMorgan are the arrangers of the sukuk program and are joined as dealers by First Abu Dhabi Bank, Goldman Sachs, Morgan Stanley, SNB Capital and Standard Chartered. 

Topics: Aramco Sukuk

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​​Digital shift keeps Saudi credit card borrowing above $8bn and just 2% below record level

Updated 30 May 2025
Dayan Abou Tine
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​​Digital shift keeps Saudi credit card borrowing above $8bn and just 2% below record level

Updated 30 May 2025
Dayan Abou Tine

RIYADH: Credit card loans from Saudi banks posted their second-highest figure on record in the first quarter of 2025, after an annual rise of 12.53 percent.

According to the Saudi Central Bank, also known as SAMA, this borrowing of SR30.66 billion ($8.18 billion) is just 2 percent below the all-time peak recorded at the end of 2024.

SAMA figures also revealed that consumer loans reached SR479.78 billion in what was a 6.41 percent rise during the same period. 

The vast majority – over 90 percent – of consumer lending falls into a broad “other” category, which includes debt consolidation, personal family expenses, or any borrowing not classified under the specific purposes.

This indicates that many Saudis take personal loans for a range of needs, from home renovations to weddings, but each of those specific uses is a relatively small slice of the overall figures.

Multiple factors are supporting the rapid growth of the credit card segment. A central driver is the national push toward a cashless society under Vision 2030, which has seen SAMA implementing policies to promote electronic payments and reduce dependence on cash.

This includes expanding point-of-sale infrastructure, mandating that businesses accept electronic payments, and fostering fintech innovation. As a result, 79 percent of all retail transactions in 2024 were electronic, card or digital payments, up from 70 percent the year before, according to an April release by SAMA.

In parallel, banking penetration has expanded, with nearly all bank cards in the Kingdom now enabled for contactless payments. By 2023, 98 percent of in-person card transactions were contactless — up from just 4 percent in 2017— according to Visa executive Andrew Torre, speaking to Arab News in October.

There is a push toward a cashless society under Vision 2030. Shutterstock

The COVID-19 pandemic accelerated this shift to tapping cards and phones, ingraining cashless habits. With nearly 50 million payment cards in circulation and a decline in ATM usage, the ecosystem is primed for card spending over cash.

Another factor is consumer behavior and economic policy. Strong consumer spending in Saudi Arabia — supported by economic growth and initiatives to boost household income — has encouraged more use of credit for purchases.

Rather than delaying purchases, many consumers are comfortable using credit cards to buy now and pay later, especially with the availability of installment plans.

Additionally, banks and payment networks are actively marketing credit cards with attractive promotions. Cashback deals, reward points, airline miles, and no-fee installment offers are abundant, which incentivizes consumers to use credit cards for both large and small purchases.

The entry of Shariah-compliant credit cards has also played a role. By addressing religious sensitivities, Islamic banks have made credit cards acceptable to a wider customer base that previously avoided interest-based products.

Furthermore, the growth of e-commerce and digital services in Saudi Arabia has naturally increased credit card adoption. Online retailers, food delivery apps, ride-hailing, and travel platforms often work best with card payments, so as these services proliferate, so does card usage.

Consumer loan usage and slower growth trends

Credit cards and personal consumer loans differ fundamentally in structure, usage, and cost. Consumer loans in Saudi Arabia are typically taken as a fixed amount to be repaid in installments over a set term, usually at relatively lower interest or profit rates.

They are often used for significant expenses like buying a car, financing education, or other big-ticket needs, and come with a structured repayment plan that helps borrowers budget effectively.

By contrast, a credit card provides a revolving credit line up to a predefined limit, with no fixed repayment period as long as the borrower makes minimum payments.

Traditional consumer loans, which are often called personal loans, remain much larger in absolute terms than credit card debt in Saudi Arabia, but their growth has been relatively sluggish in recent quarters.

These loans — which exclude mortgages — totaled SR471 billion by the end of 2024, and saw annual growth in the mid-single digits compared to double-digit growth for credit cards.

In early 2024, growth was even slower. In the first quarter, consumer lending was up less than 1 percent year-on-year, and in the second quarter around 2 percent, before accelerating later in the year according to SAMA data.

Saudi Central Bank. File

The uses of consumer loans are generally for big one-time expenditures or needs. The largest defined sub-category is financing for vehicles, which accounted for roughly 2.5 percent to 3 percent of total consumer loans in 2024. Other specific purposes include education loans and loans for furniture and durable goods, and vehicle and private transport means.

The recent slower growth of consumer loans compared to credit cards can be attributed to a number of factors.

High interest rates over 2022 to 2023, as global rates climbed, made borrowing via fixed loans less attractive, potentially dampening demand. By contrast, credit card lines were often already in place and could be tapped without a new loan application.

Another factor is the growing availability of credit card installment plans and Buy Now, Pay Later services, which are increasingly used to cover expenses that previously required personal loans. 

With zero-interest installment offers and flexible repayment options — particularly appealing to younger consumers — many now prefer to finance mid-sized purchases through these tools rather than committing to long-term bank loans.

All of this has led to personal loan growth being moderate. Nonetheless, consumer loans did rise in absolute terms, primarily driven by continued needs for cars, education, and other big expenses. 

The credit card segment’s growth outpaced consumer loans by a wide margin, highlighting a shift in how Saudis finance their spending toward more flexible, short-term credit and digital payment tools, and slightly away from traditional fixed personal borrowing.

Topics: credit cards Saudi Central Bank (SAMA)

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