MENA startup funding ends year on the rise

Palestinian-Dutch company TAP raised $1 million in funding led by Invest International, alongside contributions from impact angel investors. (Supplied)
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Updated 19 January 2025
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MENA startup funding ends year on the rise

  • Startups raised $279 million in what was an 8 percent rise from November

RIYADH: Funding for startups across the Middle East and North Africa ended 2024 on an upward trajectory, raising $279 million in what was an 8 percent rise from November.

The investment was spread across 42 deals, yet when debt financing — which accounted for 44 percent of the total — is excluded, the amount falls to $156 million. 

Despite the month-on-month increase, the total sum marks a significant 76 percent drop compared to the same period in 2023, highlighting a challenging environment for the region’s startups. 

The UAE emerged as the top destination for investments, attracting $217 million across 18 deals. A substantial portion of this came from ALLO’s $100 million debt financing round. 

Saudi startups followed with $30 million raised by 11 companies, while Bahrain secured third place with $25 million, led by Calo’s $25 million series B round. Bahraini startup Unipal also closed a funding round during the month, though the value was undisclosed. 

Egypt’s startup ecosystem experienced weak performance, raising just $2 million across five transactions. Meanwhile, startups in Morocco, Jordan, Tunisia, and Qatar collectively raised $4.4 million, indicating limited funding activity across these markets in December. 

The web 3.0 sector led in overall funding, but fintech emerged as the most funded area when debt financing was excluded. Fintech startups raised $93.5 million across seven deals, maintaining strong investor interest in the region. 

Food tech ranked among the top three funded sectors, raising $25.1 million across two transactions, with Calo accounting for the majority of this total. Education tech startups also saw a modest recovery, raising $16 million through five funding rounds. 

Investment at early stages remained a priority for investors. Seed-stage startups attracted $59 million, while pre-seed rounds raised $7.7 million across seven deals. 




Egypt-based fintech Raseedi acquired Kashat, along with its subsidiary Pharos Microfinance S.A.E., in an equity deal aimed at expanding financial inclusion services. (Supplied)

Six startups in the series A stage raised $53 million, further showcasing sustained interest in startups transitioning from early stages. Later-stage funding activity was minimal, with Calo’s Series B round being the only notable deal in this category. 

Business-to-consumer startups led funding activity, with 18 companies collectively raising $128.4 million. Meanwhile, 22 startups focused on business-to-business solutions raised a combined $124.6 million. This distribution reflects a strong focus on consumer-facing innovations, even as B2B models continued to attract significant investment. 

Funding in December highlighted a persistent gender gap within the MENA startup ecosystem. Startups founded by men received $263 million, accounting for the vast majority of funds raised. 

In contrast, four female-led startups secured $12.6 million, while two startups co-founded by both genders raised $1.5 million. These figures underscore ongoing challenges in bridging gender disparities in access to venture capital in the region. 

Raseedi acquires Kashat to expand services for the underbanked 

Egypt-based fintech Raseedi acquired Kashat, along with its subsidiary Pharos Microfinance S.A.E., in an equity deal aimed at expanding financial inclusion services. 

Raseedi, founded in 2018, offers underbanked users tools to make cheaper calls, receive savings tips, and access microloans without requiring a credit history. 

Kashat, also founded in 2018, specializes in providing instant small loans to financially excluded individuals. 

The acquisition will enable both companies to scale their operations across Africa and Asia, delivering digital financial solutions to underserved communities. 

TAP secures $1m to empower youth employment 

Palestinian-Dutch company TAP raised $1 million in funding led by Invest International in the Netherlands, alongside contributions from impact angel investors. 

Initially founded in 2018 to create job opportunities in Gaza, TAP has since evolved into a scalable tech platform that supports local job creation. 




Opteam provides tools to construction teams, including real-time dashboards, progress monitoring systems, and AI-powered schedule optimization. (Supplied)

The funding will be deployed to strengthen TAP’s impact in Palestine, Jordan, and Lebanon, while also enabling the launch of its next-generation AI-powered platform in early 2025. 

The platform will focus on providing mentorship networks, personalized coaching, and tools to help young people secure meaningful employment without needing to migrate. 

TAP previously raised $1 million in October 2023 in a seed round led by Wamda Capital, with participation from the World Bank and other angel investors. 

Opteam raises pre-seed round to enhance construction tech solutions 

UAE-based construction technology startup Opteam raised an undisclosed pre-seed funding round led by Plus VC, with participation from Dar Ventures, SIAC Ventures, and Oraseya Capital. 

Founded in 2020, Opteam provides tools to construction teams, including real-time dashboards, progress monitoring systems, and AI-powered schedule optimization. 

The funding will be used to expand Opteam’s team, deepen its AI capabilities, and strengthen its market presence in the UAE and Saudi Arabia. 

The company aims to address inefficiencies in the construction sector by offering technology that improves project tracking and resource allocation. 

Jingle Pay partners with Bank Alfalah to expand digital remittances 

UAE-based remittance fintech Jingle Pay secured investment from Pakistan’s Bank Alfalah in exchange for a 9.9 percent equity stake. 

Founded in 2019,  the business allows users to store, spend, and send money to more than 160 countries in over 99 currencies. 

The platform currently operates in the UAE, Bahrain, Pakistan, and Egypt. 

The partnership will enable Jingle Pay to launch its digital banking services in Pakistan in the first quarter of 2025 through a branchless banking mobile app. 

This marks a significant step for the company, which previously secured a 12 percent investment from MoneyGram in 2022.

Teammates.ai raises funding to expand enterprise AI offerings 

UAE-based AI solutions provider Teammates.ai, formerly known as Uktob.ai, raised an undisclosed funding round from Hustle Fund, Access Bridge Ventures, Oraseya Capital, Beyond Capital, and other angel investors. 

Established in 2023, Teammates.ai provides enterprises with AI-powered “colleagues” that perform tasks such as customer support and email management in more than 50 languages. 

The rebranding reflects the startup’s strategic shift toward offering enterprise-grade AI solutions, as well as an expanded portfolio of tools to help companies optimize operations. The funding will support scaling efforts and growth across MENA and international markets.

Raseedi acquires Kashat to expand services for the underbanked 

Egypt-based fintech Raseedi acquired Kashat, along with its subsidiary Pharos Microfinance S.A.E., in an equity deal aimed at expanding financial inclusion services. 

Raseedi, founded in 2018, offers underbanked users tools to make cheaper calls, receive savings tips, and access microloans without requiring a credit history. 

Kashat, also founded in 2018, specializes in providing instant small loans to financially excluded individuals. 

The acquisition will enable both companies to scale their operations across Africa and Asia, delivering digital financial solutions to underserved communities.

Sigma Capital launches $100m fund for Web3 startups 

Global Web3-focused venture asset manager Sigma Capital launched a $100 million fund to accelerate blockchain and cryptocurrency innovation. 

The fund will focus on early-stage Web3 startups, liquid tokens, and fund-of-fund investments. 

Sigma Capital has offices in Dubai, Singapore, and the Cayman Islands and plans to use its extensive network to support portfolio companies. 

The fund aims to drive Web3 innovation in the Middle East and globally, targeting projects that are pioneering advancements in blockchain technology.


Riyadh Air orders up to 50 Airbus A350 jets to expand long-haul fleet 

Updated 16 June 2025
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Riyadh Air orders up to 50 Airbus A350 jets to expand long-haul fleet 

  • Deal includes 25 firm orders and purchase rights for an additional 25 aircraft
  • A350-1000s will enable long-haul connections ahead of high-profile events

JEDDAH: Saudi Arabia’s Riyadh Air has signed a deal to acquire up to 50 Airbus A350-1000 aircraft as it gears up to launch operations later this year. 

The agreement, signed at the 55th Paris Air Show, includes 25 firm orders and purchase rights for an additional 25 aircraft. The deal supports Riyadh Air’s plan to build a wide-body fleet capable of serving over 100 destinations globally by 2030.  

Owned by the Public Investment Fund, Riyadh Air was unveiled in March 2023 by Crown Prince Mohammed bin Salman as part of Saudi Arabia’s strategy to become a global aviation hub by expanding connectivity to over 250 destinations and tripling annual passenger traffic to 330 million. 

In a statement, Yasir Al-Rumayyan, PIF governor and chairman of Riyadh Air, said: “Our new national carrier is set to take to the skies in the near future, and as a fundamental element of the Kingdom of Saudi Arabia’s infrastructure, will connect our capital city to over 100 international destinations around the globe by 2030.

He added: “With its outstanding range, adding the Airbus A350-1000 to our fleet demonstrates the strategic contribution of Riyadh Air in positioning Saudi Arabia as a global aviation hub.” 

The A350-1000s, with an operational range exceeding 16,000 km, will enable long-haul connections ahead of high-profile events such as Riyadh Expo 2030 and the FIFA World Cup 2034. 

In April, the airline received its Air Operator Certificate from the General Authority of Civil Aviation, authorizing it to commence flight operations after meeting all regulatory, safety, and operational requirements. 

“Riyadh Air is making significant progress as we move towards our first flight later this year and agreeing this deal for up to 50 Airbus A350-1000 aircraft is an important statement of intent,” said Tony Douglas, CEO of Riyadh Air. 

The airline’s launch supports Saudi Arabia’s broader efforts to diversify its economy. According to the General Authority for Civil Aviation, the aviation industry generated $32.2 billion in tourism receipts and supported more than 958,000 jobs in 2023 — 241,000 in aviation and 717,000 in tourism-related sectors. 

“We play an important role in the evolution of the Saudi aviation ecosystem with the aim to create 200,000 direct and indirect jobs and contribute almost $20 billion to the Kingdom’s non-oil GDP,” added Douglas. 

The sector is a key pillar of the National Transport and Logistics Strategy, which aims to raise its gross domestic product contribution from 6 percent to 10 percent by 2030. 

Christian Scherer, CEO of commercial aircraft at Airbus, said: “This partnership reflects our shared commitment to innovation and decarbonization whilst connecting the vibrant Kingdom of Saudi Arabia to the world!”  


Closing Bell: TASI gains 135 points after positive market breadth 

Updated 16 June 2025
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Closing Bell: TASI gains 135 points after positive market breadth 

  • Market breadth was strongly positive with 223 gainers and 23 fallers
  • Trading activity remained robust with a total value of SR4.87 billion

RIYADH: Saudi Arabia’s Tadawul All Share Index closed higher on Monday, advancing 135.45 points, or 1.26 percent, to end at 10,867.04. 

Market breadth was strongly positive with 223 gainers and 23 fallers. Trading activity remained robust with a total value of SR4.87 billion ($1.2 billion), supported by optimism across key sectors. 

Among the top gainers, Red Sea International Co. rose 10 percent to SR36.85, while CHUBB Arabia Cooperative Insurance Co. added 9.98 percent to end at SR33.60.  

National Gypsum Co. and Saudi Enaya Cooperative Insurance Co. gained 9.97 percent and 8.02 percent, respectively, closing at SR19.42 and SR9.29. 

ACWA Power Co. also rose 6.94 percent to close at SR262.00. 

Among the worst performers, MBC Group Co. led losses with a decline of 3.11 percent to close at SR35.80.

Dr. Sulaiman Al Habib Medical Services Group followed, shedding 2.30 percent to settle at SR255, while Gulf Union Alahlia Cooperative Insurance Co. fell 1.63 percent to SR14.52.  

Middle East Specialized Cables Co. ended the session down 1.13 percent at SR30.55, and Dr. Soliman Abdel Kader Fakeeh Hospital Co. edged 0.75 percent lower to SR39.85. 

On the announcement front, ASAS Makeen Real Estate Development and Investment Co. began trading on the Nomu-Parallel Market on June 16, with shares priced at SR80 each. 

The company’s stock rose 14.38 percent to close at SR91.50 after it confirmed the signing of an SR240 million real estate development agreement with the National Housing Co. 

The stock is subject to daily and static price fluctuation limits of plus or minus 30 percent and 10 percent, respectively. 

The 42-month project includes the construction of 470 residential units in Riyadh and is expected to impact financial results in the fourth quarter following the issuance of the required license. 

ASAS Makeen offered 10 percent of its SR100 million capital, or one million shares, in an initial public offering that was nearly 1,949 percent oversubscribed. 

Tabuk Agricultural Development Co. closed 1.90 percent higher at SR10.18 after announcing it had received the full SR14.85 million operational financing loan from the Agricultural Development Fund.

The two-year facility is secured by a mortgage on the company’s land and investment shares. 


PIF’s AviLease to acquire up to 77 Airbus jets in expansion drive


Updated 16 June 2025
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PIF’s AviLease to acquire up to 77 Airbus jets in expansion drive


  • Order marks first direct deal with Airbus as PIF-owned lessor targets global growth
  • Agreement announced at Paris Air Show

RIYADH: Saudi Arabia’s Public Investment Fund-owned AviLease has signed a deal to purchase up to 77 Airbus aircraft, further expanding its next-generation, fuel-efficient fleet to meet rising global demand across passenger and cargo operations.

The agreement, announced at the Paris Air Show, includes 55 A320neo Family aircraft and 22 A350F freighters, with deliveries scheduled through 2033, according to a press release.

This marks AviLease’s first direct order with Airbus. The move aligns with the goals of the Saudi Aviation Strategy, which targets a rise in annual passenger capacity to 330 million and cargo throughput to 4.5 million tonnes by 2030, while enhancing the Kingdom’s status as a regional aviation hub.

“This dual order reinforces AviLease’s credentials as a leading lessor, and it demonstrates the broad appeal of our products among lessors and their airline customers,” said Benoit de Saint-Exupéry, executive vice president of sales for Airbus Commercial Aircraft.

Edward O’Byrne, CEO of AviLease, said: “We are proud to establish an Airbus order book, strengthening our position as a full-service, investment grade global lessor. The addition of these latest generation aircraft enhances our ability to offer modern, fuel-efficient fleet solutions to our airline partners in Saudi Arabia and around the world.”

Benoit de Saint-Exupery, Airbus executive vice president sales of the commercial aircraft business, and Edward O’Byrne, CEO of AviLease, the global aircraft lessor headquartered in Saudi Arabia, shake hands after a firm order signature for Airbus A350F freighters and A320neo Family aircraft, during the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 16, 2025. Reuters

The A350F freighters were selected following consultations with local stakeholders and will support Saudi Arabia’s expanding air cargo requirements. O’Byrne noted that AviLease has secured delivery slots in line with the Kingdom’s Vision 2030 goals.

“We thank our local partners and Airbus for the strong long-term partnership we have established and look forward to placing these aircraft across our valued customer base,” he said.

The A350F, according to Airbus, offers at least 20 percent lower fuel consumption, improved loading capabilities, and extended range.

The new order follows AviLease’s purchase of 30 Boeing 737 MAX aircraft in May—its first direct deal with a manufacturer—bringing its total new aircraft orders within two months to 107.

“In less than two months, AviLease has signed two major deals, reflecting its long-term ambition to become a top 10 global player in aircraft leasing and to strengthen its position as a national champion,” said Fahad Al-Saif, chairman of AviLease.

As of March 31, AviLease had a portfolio of 200 aircraft leased to 48 airlines around the world.

In April, the firm secured a $1.5 billion unsecured revolving credit facility to support its global expansion. The three-year facility attracted commitments from 20 international banks, including eight new lenders from Europe, Asia, and North America.

The company holds investment-grade ratings of Baa2 (stable) from Moody’s Ratings and BBB (stable) from Fitch Ratings.


OPEC sees solid 2nd-half of 2025 for world economy, trims 2026 supply

Updated 16 June 2025
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OPEC sees solid 2nd-half of 2025 for world economy, trims 2026 supply

LONDON/MOSCOW: OPEC said on Monday it expected the global economy to remain resilient in the second half of this year despite concerns about trade conflicts and trimmed its forecast for growth in oil supply from producers outside the wider OPEC+ group in 2026.

In a monthly report, the Organization of the Petroleum Exporting Countries left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions in April, saying the economic outlook was robust despite trade concerns.

“The global economy has outperformed expectations so far in the first half of 2025,” OPEC said in the report.

“This strong base from the first half of 2025 is anticipated to provide support and sufficient momentum into a sound second half of 2025. However, the growth trend is expected to moderate slightly on a quarterly basis.”

OPEC also said supply from countries outside the Declaration of Cooperation — the formal name for OPEC+ — will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month’s forecast.

Lower supply growth from outside OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, would make it easier for the wider group to balance the market. Rapid growth from US shale and from other countries has weighed on prices in recent years. (


PIF earns perfect score on Global SWF Index 

Updated 16 June 2025
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PIF earns perfect score on Global SWF Index 

  • Saudi fund led the group within EMEA
  • It was the only Middle Eastern institution to reach a perfect score

RIYADH: Saudi Arabia’s Public Investment Fund earned a perfect score in the 2025 Global SWF Index, ranking it among just nine sovereign wealth funds worldwide for top governance, sustainability, and resilience.

The report from the sovereign investor benchmarking firm evaluates 200 of the world’s largest state-owned investment institutions across 25 indicators.

PIF’s flawless score this year marks a major milestone in its institutional development, following steady progress from 92 percent in 2023 to 96 percent in 2024. In contrast, the Saudi fund scored just 28 percent in 2020, according to Global SWF data.

In 2025, only nine sovereign investors globally achieved a full 100 percent score. Of those, three were based in the Europe–Middle East–Africa region: PIF, Ireland’s National Treasury Management Agency, and Nigeria’s Sovereign Investment Authority. 

The Saudi fund led the group within EMEA and was the only Middle Eastern institution to reach a perfect score.

With over $925 billion in assets under management, PIF is a cornerstone of Saudi Arabia’s Vision 2030, investing across strategic sectors. Shutterstock

The 2024 report described PIF as “continuing to lead the charge,” highlighting that the fund voluntarily publishes an allocation and impact report as well as a self-assessment aligned with the Santiago Principles, despite not being a member of the International Forum of Sovereign Wealth Funds.

PIF’s sustainability strategy operates within the Kingdom’s broader drive for spending efficiency, a theme highlighted in a March analysis by PwC and Consultancy ME. 

The report noted that public funds, anchored by institutions like PIF, are now being redirected toward high-impact sectors such as healthcare, tourism, and logistics, as well as artificial intelligence, combining fiscal prudence with strategic vision.

Moreover, a Strategy& whitepaper outlined how the nation is investing heavily in its energy transition — targeting approximately $235 billion toward renewables by 2030 and embedding efficiency mandates for state utilities — to support its net-zero ambitions and long-term economic resilience.

This alignment of sustainable investment and cost discipline reinforces PIF’s role in delivering value-driven transformation in line with Vision 2030.

The fund’s elevation to the top tier was driven by enhanced climate-risk disclosures, the launch of a dedicated sustainability report, strengthened board oversight, and the implementation of comprehensive business continuity frameworks.

These changes helped it secure full marks in all 25 areas of the GSR Scoreboard — 10 for governance, 10 for sustainability, and 5 for resilience.

With over $925 billion in assets under management, PIF is a cornerstone of Saudi Arabia’s Vision 2030, investing across strategic sectors, including tourism and logistics, as well as AI and renewable energy. Its strong transparency credentials and environmental, social and governance alignment have helped it build trust with global partners and signal its readiness for large-scale cross-border investment.

According to the 2024 PIF Effect report, the fund’s strategic projects, ranging from green bond issuances to renewable energy infrastructure, have generated a significant impact throughout Saudi Arabia and the world, enhancing local job creation, technology transfer, and environmental outcomes.

A February analysis by Consultancy ME underscored how the Kingdom’s broader focus on “spending efficiency is driving growth and building resilience,” with PIF playing a central role by prioritizing cost-effective, high-impact initiatives aligned with Vision 2030 objectives.

The full 2025 GSR report will be released on July 1.