Closing Bell: Saudi main index sheds points to settle at 12,109.94
Updated 13 January 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s Tadawul All Share Index lost on Monday, dropping 17.03 points, or 0.14 percent, to close at 12,109.94.
The total trading turnover of the benchmark index was SR5.77 billion ($1.53 billion), as 114 of the listed stocks advanced, while 119 retreated.
The MSCI Tadawul Index also dropped by 2.34 points, or 0.15 percent, to close at 1,509.67.
The Kingdom’s parallel market Nomu increased, gaining 194.91 points, or 0.63 percent, to close at 31,234.44. This comes as 43 of the listed stocks advanced while 46 retreated.
Buruj Cooperative Insurance Co. was the best-performing stock of the day, with its share price surging by 9.95 percent to SR22.54.
Other top performers included United International Holding Co., which saw its share price rise by 7.97 percent to SR187, and Gulf General Cooperative Insurance Co., which saw a 4.38 percent increase to SR11.44.
Saudi Cable Co. and Saudi Industrial Investment Group also saw a positive change, with their share prices surging by 4.06 percent and 4 percent to SR107.60 and SR17.68, respectively.
Fawaz Abdulaziz Alhokair Co. saw the steepest decline of the day, with its share price easing 5.56 percent to close at SR14.60.
Jamjoom Pharmaceuticals Factory Co. and Middle East Specialized Cables Co. recorded declines, with their shares slipping 4.05 percent and 3.50 percent to SR156.20 and SR42.70, respectively.
National Medical Care Co. also faced a loss in today’s session, with its share price dipping 2.93 percent to SR159.20.
On Nomu, Multi Business Group Co. was the best performer, with its share price rising by 13.64 percent to reach SR18.50.
Alqemam for Computer Systems Co. also delivered a strong performance, with its share price rising by 9.28 percent, to reach SR93, while First Avenue for Real Estate Development Co. saw a 7.27 percent increase to end the session at SR9.44.
Albattal Factory for Chemical Industries Co. also fared well, with a 7.07 percent rise to SR62.10, and Alfakhera for Mens Tailoring Co. increased by 6.62 percent to SR6.60.
Al-Razi Medical Co. shed the most on Nomu, with its share price dropping by 10.58 percent to reach SR60.
Quara Finance Co. experienced a 6.30 percent decline in share prices, closing at SR18.74, while Advance International Co. for Communication and Information Technology dropped 4.98 percent to settle at SR4.20.
Meyar Co. and Intelligent Oud Co. for Trading were also among the top decliners, with Meyar Co. falling 4.70 percent to settle at SR70.9 and Intelligent Oud Co. for Trading declining 4.13 percent to SR51.10.
On the announcement front, Nofoth Food Products Co. has received board approval to transition from the Nomu-parallel market to the main market, according to a bourse filing.
The company noted that the move remains subject to Tadawul’s approval, as well as compliance with all listing rules and requirements.
Estidamah Capital has been appointed as the financial adviser for the proposed transition. Nofoth Food Products stated that any material developments regarding the process will be disclosed in accordance with regulatory requirements.
Nofoth Food Products Co. saw a 0.68 percent drop in its share price on Monday to settle at SR20.46.
Saudi Arabia is shifting gears and racing into the EV future
Kingdom is making a strategic play to lead the global automotive revolution under its ambitious Vision 2030
Updated 18 sec ago
Nadin Hassan
RIYADH: Long known for its oil industry, Saudi Arabia is now racing toward an electrified future, not just for sustainability reasons, but also to get ahead in this trillion-dollar market.
With billions of dollars being poured into infrastructure, cutting-edge technology and supply chain localization, the Kingdom is making a strategic play to lead the global automotive revolution under its ambitious Vision 2030 road map.
Saudi Arabia is focused on creating a comprehensive EV ecosystem, and the government is aiming for 30 percent of vehicles in Riyadh to be electrified by 2030.
This strategy has seen the Kingdom invest in US-based EV manufacturer Lucid through its Public Investment Fund, as well as creating its homegrown electric vehicle brand, Ceer — set to launch its first models in 2026.
Big bets and bold moves: Saudi Arabia’s investment in EVs
Saudi Arabia’s commitment to economic diversification is evident in its substantial investments in EV production and battery supply chains.
Heiko Seitz, PwC Global and Middle East eMobility leader, told Arab News that the Kingdom is prioritizing the development of a self-sufficient automotive supply chain as a key strategy to solidify its position in the global EV industry.
He added: “Through significant investments, such as $3.4 billion in Lucid Motors to produce 155,000 EVs annually and a $5.6 billion agreement with Human Horizons, the Kingdom is attracting global automakers and building a competitive manufacturing base.”
Seitz highlighted the $9 billion allocated to EV-related materials, including $900 million from EV Metals and $126 million from Ivanhoe Electric, as evidence that the Kingdom is leveraging its $2.5 trillion in untapped mineral reserves to ensure it has access to the critical resources needed for production.
Mazin Jameel, managing director of marketing operations at Abdul Latif Jameel Motors, told Arab News that Saudi Arabia is taking a comprehensive approach to boosting EV adoption by developing a widespread charging network through public and private partnerships with leading technology providers.
“These investments in charging infrastructure are complemented by large-scale renewable energy projects, including solar and wind farms, which will provide clean energy for EV charging,” said Jameel.
He added: “Additionally, the government is introducing regulatory frameworks, financial incentives and policy support to accelerate EV adoption among consumers. These steps reflect Saudi Arabia’s comprehensive approach to fostering a sustainable and future-ready transportation ecosystem.”
The Kingdom is already working on integrating artificial intelligence and automation into the automotive sector, ensuring a more efficient production process.
As part of these efforts, Saudi Arabia is fostering partnerships with global tech firms to enhance the digital infrastructure required for smart mobility solutions.
The integration of AI-driven analytics in EV production will help in optimizing supply chain management and improving vehicle efficiency, positioning Saudi Arabia at the forefront of next-generation mobility innovation.
EVs, fast chargers and a high-tech future
Saudi Arabia is not solely relying on the government to propel the EV industry forward. It is keen to work with the private sector to ensure the sector has solid foundations to blossom.
Ahmad Al-Tawbah, CEO of Motory, told Arab News that private sector expertise in technology and operations is being complemented by public investment in infrastructure, policies and incentives.
Through significant investments, the Kingdom is attracting global automakers and building a competitive manufacturing base.
Heiko Seitz, PwC Global and Middle East eMobility leader
“In Saudi Arabia, initiatives like the establishment of advanced manufacturing zones, such as NEOM and KAEC, showcase how PPPs can create a thriving ecosystem for automotive assembly, EV production and battery manufacturing,” he said.
Al-Tawbah added that PPPs are crucial in reshaping the supply chain ecosystem.
“They encourage local suppliers to integrate into the global automotive value chain, fostering the growth of local industries, such as component manufacturing and logistics,” he added.
By focusing on localized production, these partnerships help decrease reliance on imports while strengthening Saudi Arabia’s role in regional supply chains. This approach not only satisfies domestic demand, but also enhances the Kingdom’s position as a key export hub for the Middle East and beyond.
Powering jobs and turbocharging the economy
Saudi Arabia’s booming EV sector is not just about seeing cars on the road; it also has the potential to deliver tens of thousands of jobs in engineering, manufacturing, logistics and software development — directly supporting Vision 2030’s objective of increasing employment.
Abdul Latif Jameel Motors’ Jameel said: “Additionally, the automotive ecosystem will provide opportunities for local entrepreneurs and small businesses to participate in the supply chain at all levels of manufacturing, distribution and related logistics, contributing to economic growth and innovation within the sector.”
Ceer Motors, the first Saudi automotive brand, is projected to create 30,000 jobs by 2034, contributing about $8 billion to gross domestic product.
“The Kingdom is investing heavily in workforce upskilling, with over 600,000 Saudis set to benefit from education and training programs,” Seitz said.
Additionally, Saudi Arabia is collaborating with leading universities and research institutions to develop specialized programs in EV technology, battery science and smart mobility solutions.
These initiatives are designed to equip the local workforce with the expertise needed to drive innovation in the automotive sector and position Saudi talent at the heart of future developments.
Luring big players and powering up local brands
As part of its focus on the industry, Saudi Arabia is rolling out the red carpet for global automakers while giving homegrown brands a serious boost.
With enticing financial perks and smart policies, the Kingdom is making it hard for car giants to say no. “Programs like the $2.6 billion Standard Incentives Program provide funding of up to 35 percent of project investments — capped at SR50 million ($13.33 million) per project. Additionally, Lucid Motors received $3.4 billion in financing over 15 years to establish a plant targeting 155,000 EVs annually,” Seitz said.
These steps reflect Saudi Arabia’s comprehensive approach to fostering a sustainable and future-ready transportation ecosystem.
Mazin Jameel, managing director of marketing operations at Abdul Latif Jameel Motors
He added: “The PIF has also invested $1 billion in Lucid and is backing Ceer Motors. These financial incentives, coupled with regulatory frameworks such as industrial licensing and quality standards certification, create a supportive ecosystem for both international and local manufacturers.”
The Kingdom’s automotive strategy extends beyond production to include research and development in next-generation mobility solutions.
“We’ve teamed up with KAUST and Toyota to push hydrogen fuel research forward, launching Saudi Arabia’s first hydrogen-powered taxi pilot with the Toyota Mirai — big steps toward a cleaner, high-tech transport future,” Jameel said.
Competing on the global stage and challenges
Saudi Arabia is not just joining the global electric vehicle race; it is aiming for pole position. With massive investments, a prime geographic location and a strategy that blends innovation with economic muscle, the Kingdom is shifting gears fast.
“Coupled with the Kingdom’s geographic advantage as a gateway to Asia, Europe and Africa, these efforts are positioning Saudi Arabia as a key export hub for the automotive sector,” Seitz said.
Scaling up Saudi Arabia’s automotive sector also has its own hurdles, but the Kingdom has a game plan.
“To address the lack of a local supply chain, incentives are attracting global suppliers and fostering component manufacturing. Workforce development is a priority, with programs like NAVA training over 600,000 citizens in advanced automotive technologies,” said Seitz.
Another crucial piece of the puzzle, infrastructure expansion, is being “rapidly developed,” Seitz said, highlighting plans to install 5,000 EV fast chargers by 2030 through the Electric Vehicle Infrastructure Co. — a joint-venture company between the PIF and Saudi Electricity Co.
Regulatory frameworks are also being aligned with international standards, while purchase incentives and awareness campaigns are encouraging more drivers to go electric.
Seitz said that investment in Lucid alongside partnerships with global players like Foxconn and Hyundai show that Saudi Arabia is overcoming challenges to solidify its position as a “global automotive powerhouse under Vision 2030.”
MENA startups get fresh funding to drive expansion
Latest funding rounds highlight investor confidence in emerging technologies
Updated 16 min 45 sec ago
Nour El-Shaeri
RIYADH: A wave of new investments is fueling the growth of startups across various sectors, from fintech and e-commerce to healthcare and sustainability.
The latest funding rounds highlight investor confidence in emerging technologies and innovative business models reshaping markets in the region and beyond.
Aya, a Saudi e-commerce platform specializing in modest fashion, has closed a SR6 million ($1.5 million) seed funding round.
The investment was led by Khwarizmi Ventures, with participation from Raed Ventures, Joa Capital, and FENA Holdings, as well as Turki Alrajhi and a group of angel investors.
Founded by Munira Al-Kadi and Abdulrahman Al-Ammar, Aya aims to unify the modest fashion market through a trend-driven discovery platform.
The company leverages real-time customer insights to predict trends, enabling local manufacturers to deliver on-demand fashion efficiently.
“This investment is more than capital — it’s validation of our bold vision to disrupt a massive, fast-growing traditional market,” said Al-Kadi.
“We’re entirely changing the game, and we’re looking for fearless, entrepreneurial talents to join our mission,” she added.
Homam Meaddawi, partner at Khwarizmi Ventures, highlighted Aya’s potential in an industry that is seeing rapid growth.
Founded by Munira Al-Kadi and Abdulrahman Al-Ammar, Aya aims to unify the modest fashion market through a trend-driven discovery platform. (Supplied)
“We are proud to support talented founders who formerly worked together in e-commerce. Aya aims to disrupt the modest fashion industry, beginning with the multi-billion dollar, fragmented abaya market,” he said.
With this investment, Aya plans to enhance its platform, refine its product offerings, and expand its reach within the region.
Ajras secures $1.5m pre-series A round for proptech expansion
Saudi property tech startup Ajras has raised $1.5 million in a pre-series A funding round led by Veda Holding.Founded in 2022 by Muath Al-Jubailan, Ajras provides innovative financing solutions to simplify rent payments for the commercial and industrial sectors.
The company is licensed by the General Authority for Real Estate and recently introduced a rent now, pay later solution.
The latest investment follows Ajras’ SR105.05 million seed funding round closed in November 2023, which was led by Madarek International.
Founded in 2022 by Muath Al-Jubailan, Ajras provides innovative financing solutions. (Supplied)
The company’s financing model aligns with Saudi Arabia’s broader efforts to modernize the real estate sector and enhance financial accessibility for businesses.
Veda Holding, headquartered in Riyadh, serves as a business incubator supporting both early-stage startups and established companies with strategic funding.
PayTabs Group acquires 51 percent stake in PayTabs Egypt
Saudi Arabia-based PayTabs Group has acquired a 51 percent stake in PayTabs Egypt from EFG Finance, an EFG Holding company, in a move aimed at strengthening its footprint in the Egyptian digital payments market.
The acquisition aligns with PayTabs’ long-term strategy to enhance digital transformation and financial inclusion across the North African country.
“We remain deeply committed to Egypt’s digital payments future, and our focus on innovation and customer-centricity will only grow stronger,” said Abdulaziz Al-Jouf, CEO and founder of PayTabs Group.
Aladdin El-Afifi, CEO of EFG Finance, emphasized that the decision to sell part of its stake was part of a broader strategic shift.
“By reallocating resources from non-core assets, we enhance our ability to drive sustainable growth and innovation in key areas. This decision aligns with our long-term strategic objectives and commitment to delivering value to our stakeholders,” he said.
Through this acquisition, PayTabs aims to provide merchants with more seamless digital payment solutions while expanding its services across the region.
Klaim raises $10m series A and $16 million financing fund
Klaim, a healthcare fintech startup, has raised $10 million in series A funding, along with an additional $16 million financing fund to accelerate its expansion.
Since its founding in 2019, Klaim has been focused on transforming medical insurance claims processing through AI-powered solutions that help healthcare providers improve cash flow.
By leveraging artificial intelligence and vast data analytics, Klaim predicts insurance payment patterns and streamlines claim settlements.
The newly raised funds will support its expansion in the UAE, Saudi Arabia, and Oman while refining its technology to enhance efficiency in healthcare payments.
Klaim has also strengthened its presence in Saudi Arabia through a strategic partnership with Tharawat Tuwaiq Financial Co.
Under this collaboration, Tharawat Tuwaiq secured regulatory approval for a SR60 million healthcare financing fund, with the first transaction set for March 2025.
Additional funds are expected in the second half of 2025 to further support the sector.
Motery completes seed round at $8m valuation
Motery, a Kuwait-based fintech startup, has completed its seed funding round, valuing the company at $8 million.
The startup aims to streamline the automotive purchasing experience by offering an all-in-one platform for online car buying and financing.
Motery’s platform allows consumers to browse vehicles, compare financing options, and complete purchases entirely online.
The company plans to use the fresh capital to enhance its technology, expand its service offerings, and increase market penetration in Kuwait’s automotive sector.
Longevity Wellness Hub secures $4m to expand across the GCC
Longevity Wellness Hub has raised $4 million to expand its presence across the Gulf Cooperation Council and further develop its wellness solutions.
The company integrates quantum diagnostics, precision-designed infusions, and advanced recovery therapies to optimize health outcomes.
A major component of Longevity’s expansion is its investment in quantum scanning technology, which analyzes biometrics and voice frequencies to provide personalized health insights.
The company also incorporates alternative therapies such as hyperbaric oxygen therapy and red light therapy, blending ancient healing practices with modern biohacking innovations.
Institutional investors, family offices among investors in Phoenix Venture Partners’ innovation fund
Phoenix Venture Partners has successfully completed the second closing of its innovation fund.
The round saw participation from investors in France, Luxembourg, Mauritius, Kuwait, and Saudi Arabia, including institutional investors, family offices, and high-net-worth individuals.
Phoenix Venture Partners Innovation Fund aims to support innovations and technologies, particularly in sectors such as deep tech, AI, and sustainable solutions.
The fund’s growing investor base reflects global confidence in its strategic vision.
ORA Technologies raises $1.9m
Moroccan startup ORA Technologies has secured $1.9 million in a pre-series A funding round led by Witamax and Azur Innovation Fund, bringing its total funding to $4.4 million.
This marks the first time the company has received investment from venture capital firms.
ORA Technologies focuses on driving financial and digital inclusion in Morocco.
The funds will be used to scale Kooul, its food delivery platform, which has expanded to six cities in just five months, and to accelerate the rollout of ORA Cash, its digital payment and money transfer solution.
Aramco Ventures backs German startup Ucaneo’s direct air capture facility
Aramco Ventures, the investment arm of Saudi Aramco, has invested in German climate tech startup Ucaneo, which is developing the country’s largest direct air capture facility.
Ucaneo previously raised €6.75 million ($7.36 million) in a seed funding round in September, but did not disclose the specific amount invested by Aramco Ventures.
The Berlin-based company focuses on advancing DAC technology to remove carbon dioxide from the atmosphere efficiently.
DAC is gaining traction globally as industries and governments seek scalable solutions to meet carbon reduction targets.
Aramco’s investment signals its interest in innovative climate technologies and aligns with broader efforts to support sustainability initiatives.
OIA backs US biotech firm Tidal Vision
Oman Investment Authority, the sultanate’s sovereign wealth fund, has invested in American biotech company Tidal Vision as part of its strategy to support sustainable innovations.
OIA participated in Tidal Vision’s $140 million series B financing round, which was oversubscribed, though the exact amount of its investment was not disclosed.
Tidal Vision specializes in biopolymers, offering biomolecular solutions for industries such as water treatment, agriculture, and material science.
The company’s core innovation is the use of chitosan, a natural polymer derived from crustacean shells, as an alternative to traditional chemicals.
The investment aligns with OIA’s broader objectives of fostering sustainability and supporting the localization of advanced technologies.
OIA, which managed assets exceeding $49 billion in 2023, has been actively investing in companies that drive environmental and industrial advancements.
With the new funding, Tidal Vision is expanding its global presence by developing new infrastructure in Europe, Texas, and Ohio, furthering its mission to scale sustainable material solutions worldwide.
S&P lifts Saudi Arabia’s rating on sustained economic shift away from oil
Updated 15 March 2025
Reuters
RIYADH: Global ratings agency S&P raised Saudi Arabia’s rating to ‘A+’ from ‘A’ with a stable outlook on Friday, underpinned by the ongoing social and economic transformation in the country.
Fitch said the country’s Vision 2030 project provides some flexibility in managing capital expenditure and debt issuance.
The sustained momentum in this project can help boost activity in construction, logistics, manufacturing and mining sectors, prompting GDP growth over 2025-28, the report said.
Earlier this week, the ratings agency had said it expects Saudi government to cut capex and associated current spending in 2025.
With Saudi’s main aim to diversify its economy away from its reliance on the hydrocarbon sector, Fitch said the current investments should boost consumption by Saudi Arabia’s young population and increase the productive capacity of the economy.
Last week, Saudi Arabia’s Public Investment Fund had signed a new memorandum of understanding worth $3 billion with Italy’s state export credit agency SACE. The ratings agency said this will help maintain the country’s debt.
Fitch also anticipates that current sensitivity to oil prices will weaken fiscal and external imbalances through 2028.
It expects that Saudi’s giant Aramco’s decline in dividend will further dampen oil revenue.
"Large hydrocarbon reserves and low cost of production provide Saudi Arabia some resilience to a global energy transition to low-carbon alternatives, especially in a future scenario where fossil fuel demand will largely be met by a smaller number of the most efficient producers," S&P said.
It added that the Kingdom also "maintains its unique position as the world's largest swing oil producer (with spare installed production capacity permitting it to cut or raise production levels relatively quickly), as well as its leadership role in OPEC+ and its consequent ability to influence global oil price trends,"
Population growth, regulatory reforms and tourism reshaping Saudi real estate sector
Updated 14 March 2025
Nirmal Narayanan
RIYADH: Saudi Arabia’s real estate sector is poised for robust expansion thanks to an increasing population, growth in the tourism industry, and friendly government policies and regulatory reforms, experts told Arab News.
The Kingdom’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.
Strengthening this sector is crucial for Saudi Arabia as it seeks to position itself as a global hub for tourism and business, by reducing its decades-old reliance on crude revenues.
Speaking to Arab News, Matthew Green, head of research at CBRE in the Middle East and North Africa region, said that the expansion of the Kingdom’s real estate market is also influenced by various other factors including rapid urbanization, infrastructure development, and the rise in foreign direct investments.
“Saudi Arabia’s real estate market is supported primarily by the government’s aggressive investment program, particularly toward the giga-projects, which is driving non-oil production, fueling employment and population growth, and attracting FDI,” said Green.
He added: “The country’s supportive demographics, which are characterized by the presence of a significant young and well-educated population, increasingly liberalized, and a rising middle class with greater disposable income levels than previous generations is also driving the growth of the real estate market in the Kingdom.”
CaptionMatthew Green, head of research at CBRE in the Middle East and North Africa region. Supplied
Saud Al-Sulaimani, country head of JLL in Saudi Arabia, echoed those views and said that government policies, including the Sakani program and Real Estate Investment Trusts — as well as new mortgage laws and foreign ownership regulations — are propelling the growth of the property sector.
“Sakani program supports home ownership by providing financial aid and land to Saudi citizens, while REITs encourage institutional investment in the sector,” he said.
“Relaxed ownership laws are making the Kingdom’s real estate market more attractive to international investors. All these factors are driving the growth of the real estate sector in the Kingdom.”
Founded in 2017 by the Saudi Ministry of Housing and the Real Estate Development Fund, the program aims to increase the proportion of families that own a home in the Kingdom to 70 percent by 2030, in line with the economic diversification strategy Vision 2030.
In January, Saudi Arabia’s Capital Market Authority approved foreigners to invest in Saudi-listed companies owning real estate in Makkah and Madinah.
Effective from Jan. 27, the amendment aims to boost the capital market’s competitiveness and align with the Vision 2030 economic diversification objectives, the authority said in a statement.
“The landmark change to allow international investors to access the property markets in the Holy Cities through listed companies, announced this week, will help to begin addressing the pent-up demand from international investors hungry to access real estate markets in the Kingdom’s Holy Cities,” Faisal Durrani, head of research at Knight Frank, told Arab News.
He added: “This change in investor rules, combined with last January’s introduction of Premium Residency Visas, one of which is connected to property ownership, is a clear indication of the direction of travel and the strongest hint yet of authorities’ plans around boosting inward international real estate investment.”
Faisal Durrani, head of research at Knight Frank. Supplied
Susan Amawi, general manager of Knight Frank in Saudi Arabia, said that construction activities in Saudi Arabia are expected to rise in the coming years with the Kingdom targeting to deliver 1.04 million homes by the end of the decade.
“Government programs such as Wafi and Sakani have pushed the national homeownership rate to around 64 percent; however surging home values are testing the limits of affordability. With plans underway to deliver 1.04 million homes across the country by 2030, we expect to see a significant ramping up in construction activity and jobs as the 2030 deadline nears,” said Amawi.
Regional headquarters program driving growth
Al-Sulaimani told Arab News that the regional headquarters program is one of the crucial factors acting as a catalyst for growth of the commercial real estate sector in the Kingdom.
“The program has led to increased demand for high-quality office spaces and mixed-use developments, spurring investments across key industries, including offices, hospitality, and data centers,” he said.
The JLL official added: “This influx of international businesses is reshaping real estate dynamics, with an increased focus on smart technologies, sustainability, and specialized assets, creating a thriving environment for global talent.”
Saudi Arabia’s Minister of Investment Khalid Al-Falih presented IBM executives with a regional HQ license in April 2024. IBM
Knight Frank’s Amawi said that the strong economic growth in the Kingdom, combined with the regional headquarters program has driven up demand levels for premium office space, while vacancy rates have approached record lows of around 2 percent in Riyadh.
“Office rents for Grade A space in Riyadh too have responded to the sharp upturn in occupier requirements, rising by 51 percent in the last three years alone,” said Amawi.
Real estate and tourism
Durrani said that Saudi Arabia’s ambition to attract more than 150 million visitors by the end of the decade is creating several opportunities in the hospitality real estate sector.
“For domestic tourism to flourish in Saudi Arabia, care and attention must be paid to the development of attractions in secondary and tertiary cities if they are to compete and thrive alongside all the new giga-project hospitality offerings,” he said.
Durrani added that cost-effective accommodation facilities are needed to meet the demand of travelers and address the issue of expensive stays.
“With 28 percent of Gen Z Saudis highlighting high costs as a barrier to domestic travel … so there remains an opportunity to develop more cost-effective accommodation options,” added Durrani.
Green of CBRE echoed similar views and said that diverse accommodation options are crucial to strengthening the real estate sector in the Kingdom.
He flagged the need for a mix of hotel rooms, long stay suites, private unit rentals — such as Airbnb — as well as lower cost hostels and other budget-friendly room options.
Al-Sulaimani said that the launch of high-profile and futuristic mega and giga-projects attracted global attention and investments, and symbolizes a progressive shift in Saudi urban development.
“The focus on tourism and entertainment, alongside massive investments in infrastructure, from transportation to utilities and logistics, are creating a more conducive environment for real estate development,” said the JLL official.
Real estate and technology
Al-Sulaimani added that the adoption of new technologies and digital solutions is critical to streamlining operations and boosting the efficiency of the Saudi property landscape.
He said advanced technologies to create smart, sustainable, and highly efficient urban environments are fueling innovations and unlocking new growth opportunities for property tech in the Kingdom.
“Companies can leverage AI and data analytics to enhance transparency, improve decision-making, and predict market trends. The development of smart cities focuses on integrating IoT and sustainable technologies, offering residents an improved quality of life,” said Al-Sulaimani.
Green shared that view, and said improving customer experience and service through technology adoption should be a key target for all companies operating in the real estate sector.
“In the context of the real estate market, the use of virtual and augmented reality for property tours and AI-powered chatbots for instant support and more personalized feedback are becoming more common globally but continue to lag in parts of the region,” said Green.
He added: “In addition, generating efficiencies and streamlining operations through use of property management software and better integration of smart building technologies can also enhance property value and tenant comfort.”
Uniqueness of Saudi Arabia’s real estate sector
Speaking with Arab News, experts unanimously highlighted the uniqueness of the housing sector in Saudi Arabia.
“The Kingdom’s real estate market is one of the fastest growing globally and certainly of the most exciting. The opportunity for investors continues to grow as the government unveils ever more ambitious projects, designed to spur economic growth in the non-oil sector and to also showcase Saudi Arabia’s arrival on the global investment stage,” said Amawi.
Green said that the ongoing construction of giga-projects gives the Kingdom’s real estate sector an upper hand compared to other countries in the region.
The CBRE official added that Saudi Arabia’s rich cultural heritage is also a further standout for tourism-related developments, creating a unique opportunity to establish a tangible cultural tourism offering in the region.
“The size and scale of the Saudi’s giga-projects remain a notable differential against other regional markets, with the Kingdom still very much in its nation-building stage against more mature real estate markets in the UAE,” said Green.
Intersection between family offices and early-stage startups poised to expand, experts say
Updated 14 March 2025
Nour El-Shaeri
RIYADH: Family offices have traditionally been influential in private capital investment, but their role in business funding and early-stage startups has often remained under the radar.
Historically, these entities have prioritized wealth preservation, stability, and strategic investments aligned with their company interests.
A shift is underway, however, with family offices increasing their exposure to venture capital through direct investments, fund allocations, and partnerships with startup incubators.
Family offices across the Middle East and North Africa are recalibrating their investment strategies, emphasizing stability and selective diversification, according to a Campden Wealth and HSBC Global Private Banking report.
Real estate remains a dominant asset class, accounting for 34 percent of portfolios and showing a net increase in interest of 44 percent, which reflects the difference between the share of family offices planning to raise their holdings and those intending to reduce them, demonstrating strong momentum in property investments.
Bonds and commodities are also gaining traction, with net increases in interest of 33 percent and 50 percent, respectively, as family offices prioritize reliable asset classes amid global economic uncertainties.
In contrast, MENA family groups show a limited appetite for expanding their exposure to private equity or debt, with minimal net change reported in these categories.
This stands in stark contrast to family offices in Europe and North America, where private equity remains a primary focus.
Despite the restrained interest in private equity overall, 58 percent of MENA family groups are active in VC, favoring early-stage investments such as angel and seed funding at 50 percent, as well as growth-stage opportunities at 50 percent.
The findings reflect a measured approach, balancing traditional, stable investments with selective forays into innovation-driven sectors.
Paula Tavangar, chief investment officer at Injaz Capital, a regional investment firm, believes that the shift is moving quickly.
In an interview with Arab News, Tavangar emphasized that Saudi family offices are increasingly expanding beyond traditional asset classes and recognizing VC as a key investment opportunity.
“With above half already investing in early-stage companies, this shift is well underway,” she said. However, she noted that while many family offices seek direct access to promising early-stage investments, they often lack the infrastructure to efficiently evaluate and structure deals.
This shift in investment strategy is driven in part by second-generation family office leaders who are more innovation-focused.
Paula Tavangar, chief investment officer at Injaz Capital. Supplied
“They seek exposure to both local and global early-stage opportunities, whether through setting up their own shop, being an LP (limited partner) in VC funds, or mandating external experts like us,” Tavangar said.
Injaz Capital has been actively sourcing and reviewing deals for family offices in both early- and growth-stage investments in Saudi Arabia. “For example, we invested in the latest round of Xpence, a smart business spend platform,” she said.
While fintech and e-commerce have traditionally dominated Saudi VC, Tavangar noted these sectors are becoming saturated.
Family offices are shifting toward industries aligned with their core businesses and national priorities, including deep tech, renewables, and health tech.
“Healthcare spending is expected to total $180 billion by 2029, with increasing incentives for private investment,” she said, citing a $10 billion localization gap in the Kingdom’s pharmaceuticals and medical devices sector.
Injaz Capital is addressing this through MENA Hayah, its health tech-focused investment platform.
The relationship between family offices and VC firms is changing. Currently, about 70 percent of these groups in MENA source deals through their own networks instead of investing in VC funds, but this trend is shifting.
“As the Saudi startup ecosystem matures, family offices are increasingly exploring structured partnerships with VC firms,” Tavangar said. Many prefer co-investment models in late-seed and series A+ rounds over traditional fund commitments.
Large family groups are also launching sector-specific investment arms and collaborating with specialized VCs to gain proprietary deal flow and expertise.
“The goal is not just to follow an investment trend but to help build an environment where family offices can contribute meaningfully to economic growth while effectively managing risk,” Tavangar added.
Speaking with Arab News, Thomas Kuruvilla, managing partner of Arthur D. Little Middle East and India, explained that family offices have typically avoided VC due to their preference for control and long-term investment horizons.
“Minority stakes in VC funds often fail to provide this comfort,” he noted. VC firms tend to focus on short-term portfolio diversification and exit strategies, whereas family offices emphasize stability.
Additionally, many family groups have been cautious about early-stage investments because generating quick returns often contradicts the values they seek to instill in future generations.
CaptionThomas Kuruvilla, managing partner of Arthur D. Little Middle East and India. Supplied
Kuruvilla highlighted several factors driving a change in approach, adding: “Younger family members are more tech-savvy and comfortable investing in emerging technologies.”
Furthermore, portfolio diversification is becoming a priority, with family offices seeking access to disruptive business models and new technologies.
Reputation building is also a motivator, as participation in prestigious VC funds enhances their credibility as serious venture investors.
As a result, family offices are becoming major players in VC, offering long-term perspectives, sector expertise, and capital beyond mere financial investment.
Speaking to Arab News, Achal Aroura, head of multi-family office EMEA at Klay Capital Limited, highlighted that many family offices have been investing in startups for years.
However, these investments often go unnoticed because they are structured as bilateral rather than traditional VC transactions.
“The reason they go unnoticed is that these investments are not seen as traditional venture capital investments, but rather strategic investments made by these families and their existing businesses,” he explained.
He added that firms like Klay are helping family offices take a more institutionalized approach, facilitating early-stage investments through venture funds, direct deals, and collaborations with startup incubators.
Family offices tend to invest in industries that align with their broader investment goals and expertise.
Kuruvilla identifies real estate, artificial intelligence, and healthcare, as well as biotechnology, renewable energy, and fintech as key areas of interest.
“Many Middle Eastern family offices incorporate Islamic finance principles, ensuring compliance with ethical and religious guidelines,” he added.
Aroura echoed these observations, noting a focus on technology-enabled startups in real estate, finance, and consumer sectors.
“Lately, we have seen a lot of interest in data centers and AI-enabled startups and businesses,” he said.
Obediah Ayton, chairman of Dhabi Hold Co., provided a contrasting perspective, explaining that family holdings — common in the UAE — differ from family offices in their investment approach.
“A family office typically invests in liquid strategies or acts as LPs in VC funds,” he told Arab News.
In contrast, family holdings deploy capital directly from the business level, which can lead to frustration around the speed of investment decisions.
Ayton explained that startups approaching family holdings or offices typically need to demonstrate alignment with the family’s business interests, such as solving an operational problem or reducing supply chain costs.
“The times we have seen investment is normally by an Al-Futtaim investing in mobility — why? Because eventually, they want local distribution or vice versa, to expand their own products through that vertical into new markets,” he said.
Obediah Ayton, chairman of Dhabi Hold Co. Supplied
Ayton also emphasizes that family offices rarely lead funding rounds due to a lack of in-house capabilities and risk appetite. Instead, they prefer to see reputable investors already involved.
“Sitting on a cap table rarely happens, and if they do, they want to see good names that priced the business and revenues,” he explained. “If a startup with no revenue comes along, as opposed to a startup with known investors, I know which one is better for my job security within the family business.”
To optimize their participation in VC, family offices are adopting various strategies. Kuruvilla suggests leveraging their industry knowledge and entrepreneurial experience to support portfolio companies.
Direct investments allow for greater control, while partnerships with VC firms enhance due diligence. He also noted the growing involvement of younger family members, which introduces fresh perspectives and ensures long-term commitment to venture investing.
Aroura outlined three primary ways family offices are engaging in startups: “Through early-stage venture capital funds, direct seed investments with founders, and through early-stage incubators from within the venture capital ecosystem.”
These approaches provide a balance between institutional expertise, direct influence, and exposure to high-growth startups.
The intersection between family offices and VC firms is also evolving. Kuruvilla highlights increased capital allocations to alternative assets, including co-investment opportunities that offer access to high-quality deal flow and shared risk management.
“Family offices offer patient capital, ideal for emerging technologies and industries requiring substantial upfront investment,” he said.
Sector expertise also plays a role, as family offices that leverage their industry knowledge tend to achieve better growth outcomes. Additionally, a focus on impact investing is emerging, particularly among younger generations who prioritize sustainability and social good.
Aroura emphasized that VC funds bring an institutional approach to early-stage investing, helping family offices diversify their risk while accessing a curated portfolio of startups.
“Family offices are starting to support venture capital funds, as these funds bring experience and an institutional approach to building a portfolio of companies that helps to diversify their risk of investing in early-stage startups,” he explained.
