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.


Saudi Arabia adds 2 new shipping services, expanding reach to 19 destinations

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Saudi Arabia adds 2 new shipping services, expanding reach to 19 destinations

JEDDAH: Connectivity across Saudi Arabia’s ports is set to improve with the addition of two new shipping services, expanding the Kingdom’s maritime trade reach to 19 global destinations.

The Saudi Ports Authority, known as Mawani, announced the launch of the IM2 shipping service at Jeddah Islamic Port, operated by Emirates Line and Wan Hai — marking the 22nd service added since the start of 2025. 

With a handling capacity of 2,800 twenty-foot equivalent units, the service connects Jeddah to three major international ports — Mundra in India, Alexandria in Egypt, and Mersin in Turkiye.

The developments are part of Mawani’s ongoing efforts to enhance Saudi Arabia’s ranking in global performance indicators, support national export flows in line with the National Transport and Logistics Strategy, and solidify the Kingdom’s role as a pivotal logistics gateway connecting Asia, Africa, and Europe.

In a statement, Mawani said: “This service will contribute to enhancing the competitiveness of Saudi ports, facilitating global trade, opening new business opportunities, and raising the operational efficiency of Jeddah Islamic Port.”

This follows the introduction of the “Chinook Clanga” service by Mediterranean Shipping Co. a day earlier at King Abdulaziz Port in Dammam and Jubail Commercial Port. The new route connects Saudi Arabia’s eastern ports to 16 regional and global destinations.

The MSC service, initially announced in March, strengthens links between the Arabian Gulf and key ports such as Khalifa Bin Salman Port in Bahrain, Hamad Port in Qatar, Nhava Sheva in India, Colombo in Sri Lanka, and Singapore.

It also connects to Vung Tau and Haiphong in Vietnam; Nansha, Yantian, Ningbo, Shanghai, and Qingdao in China; and Busan in South Korea; as well as Seattle in the US; and Vancouver and Prince Rupert in Canada.

In line with Vision 2030, Saudi Arabia is accelerating efforts to become one of the world’s top 10 logistics hubs, with the maritime sector playing a central role.

Under its National Transport and Logistics Strategy, the Kingdom also aims to raise the sector’s gross domestic product contribution from 6 to 10 percent by 2030.

In 2024, Saudi ports handled over 320 million tonnes of cargo — a 14.45 percent year-on-year increase — while container exports grew 8.86 percent to exceed 2.8 million TEUs, according to Mawani.

Mawani also launched several initiatives in 2024, including new logistics zones at Jeddah Islamic Port and King Abdulaziz Port in Dammam, backed by SR2.9 billion ($773 million) in private investment. 

These are part of a broader SR10 billion plan to develop 18 logistics parks nationwide.


UAE to hit $1tn non-oil trade target 4 years early, says official

Updated 4 min 55 sec ago
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UAE to hit $1tn non-oil trade target 4 years early, says official

RIYADH: The UAE is set to achieve its 4 trillion dirhams ($1.089 trillion) target for non-oil foreign trade within two years and ahead of the original 2031 goal, according to the country’s vice president.

In a post on X, Sheikh Mohammed bin Rashid Al-Maktoum highlighted the country’s rapid economic progress, stating that key indicators have surpassed global benchmarks.

This acceleration in trade is mirrored in other areas of the economy. The UAE reported a 4 percent growth in gross domestic product in 2024, with non-oil sectors contributing 75.5 percent of the overall output as diversification efforts gained momentum.

“Our non-oil foreign trade increased by 18.6 percent year-on-year in the first quarter of this year (global average 2-3 percent) — Its volume in the first quarter of this year amounted to 835 billion dirhams. Our non-oil exports grew exceptionally by 41 percent on an annual basis,” Al-Maktoum stated.

He continued: “Our goal is to achieve non-oil foreign trade for the UAE amounting to 4 trillion dirhams by 2031 ... We will reach it within two years ... (four years before the scheduled date).”

Al-Maktoum, who also serves as prime minister, noted that non-oil exports recorded an exceptional year-on-year growth of 41 percent, signaling the country’s strengthening role in international trade.

He further noted that the non-oil sector now contributes 75.5 percent to the national economy, highlighting the country’s successful diversification strategy.

“These are new development indicators for the UAE,” he said, reflecting on the resilience and dynamism of the country’s economy despite global challenges.

Al-Maktoum credited UAE President Sheikh Mohamed bin Zayed Al-Nahyan for leading the country’s transformative economic journey, which he described as achieving “exceptional milestones in the history of the UAE.”

Other countries in the region are also advancing their trade and diversification agendas. 

Saudi Arabia is expanding its non-oil exports, which surged to SR515 billion ($137 billion) in 2024, a 13 percent year-on-year increase and a 113 percent rise since the launch of Vision 2030 in 2016.

Bahrain’s non‑oil sectors are also gaining momentum under its long‑term diversification strategy. In the third quarter of 2024, the non‑oil economy grew by 3.9 percent, accounting for 86.4 percent of real gross domestic product, driving an overall economic expansion of 2.1 percent year on year.


GCC growth forecast raised to 4.4% amid oil rebound, diversification push: ICAEW 

Updated 16 June 2025
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GCC growth forecast raised to 4.4% amid oil rebound, diversification push: ICAEW 

RIYADH: Gulf Cooperation Council economies are expected to grow 4.4 percent in 2025, up from an earlier forecast of 4 percent, as rising oil output and resilient non-oil sector activity offset global trade headwinds. 

In its latest economic update, prepared with Oxford Economics, the Institute of Chartered Accountants in England and Wales said Saudi Arabia and the UAE will lead regional growth despite weaker crude prices and rising geopolitical uncertainty. 

The revision comes amid stronger-than-expected gains in OPEC+ production and continued investment in infrastructure, tourism, and technology. In May, the International Monetary Fund said that the GCC region’s economy will grow by 3 percent in 2025, driven by gains in the non-oil sector. 

The analysis by ICAEW affirms the progress of the economic diversification efforts undertaken by GCC member states, including Saudi Arabia and the UAE, aimed at strengthening their non-oil sectors and reducing reliance on crude revenues. 

Hanadi Khalife, head of Middle East at ICAEW, said: “The GCC economies are showing remarkable adaptability amid shifting global trade dynamics.” 

She added: “Investments in tourism, technology, and infrastructure continue to pay dividends, strengthening resilience and laying the groundwork for long-term growth.” 

The report noted Brent crude is expected to average $67.3 a barrel in 2025, increasing fiscal pressure across the bloc. Qatar and the UAE are likely to maintain budget surpluses, underscoring diverging fiscal positions within the region. 

Scott Livermore, economic adviser at ICAEW and chief economist and managing director at Oxford Economics Middle East, said the upgraded GCC economic growth forecast was due to faster OPEC+ output increases and sustained non-oil momentum in key economies like Saudi Arabia and the UAE. 

“While uncertainty and trade shifts may place pressures on fiscal policy, the region’s two key economies are expected to continue to progress toward economic diversification and attract global capital at an accelerated pace,” added Livermore. 

The impact of the US 10 percent tariff on imports from GCC countries is expected to be limited, given the region’s low US export exposure and the exemption of energy products. 

Overall, non-oil sectors in the GCC are forecast to grow by 4.1 percent in 2025, supported by strong domestic demand, investment momentum, and diversification initiatives. 

ICAEW added that the region is also favorably positioned to absorb any trade rebalances resulting from tariff headwinds and geopolitical tensions. 

Saudi Arabia outlook 

Saudi Arabia’s economy is expected to witness growth of 5.2 percent in 2025, according to ICAEW. 

The non-oil sector in the Kingdom is projected to grow by 5.3 percent in 2025, while the oil economy is also forecast to expand by 5.2 percent this year. 

The report added that Saudi Arabia’s oil production is averaging 9.7 million barrels per day, while non-oil sectors, including construction and trade, are contributing to the ongoing growth momentum. 

ICAEW further stated that Saudi Arabia recorded an economic growth of 3.4 percent year on year in the first quarter, driven by a 4.9 percent expansion in non-oil activities. 

“The rebasing of national accounts boosted the non-oil sector’s share of GDP, reinforcing the Kingdom’s diversification drive. However, weaker oil prices are expected to widen the fiscal deficit to 3.4 percent of the gross domestic product,” said ICAEW. 

In May, a separate report released by the General Authority for Statistics revealed that Saudi Arabia’s economy expanded by 2.7 percent year on year in the first quarter, driven by strong non-oil activity. 

Commenting on the GDP figures at that time, Minister of Economy and Planning Faisal Al-Ibrahim, who also chairs GASTAT’s board, said the contribution of non-oil activities to the Kingdom’s GDP reached 53.2 percent — an increase of 5.7 percent from previous estimates. 

The minister added that Saudi Arabia’s economic outlook remains positive, supported by structural reforms and high-quality, state-led projects across various sectors. 

The ICAEW report noted that despite potential risks, investor sentiment remains strong, with credit rating agency S&P Global upgrading the Kingdom’s credit rating to A+. 

In March, S&P Global said that Saudi Arabia’s strong rating is driven by the economic and social transformation taking place in the Kingdom. 

In February, Fitch Ratings also affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating at ‘A+’ with a stable outlook, citing the Kingdom’s strong fiscal and external balance sheets. 

UAE growth driven by investments 

The UAE economy is projected to expand by 5.1 percent in 2025, driven by a recovery in oil output and a 4.7 percent rise in non-oil GDP, according to ICAEW. 

“Tourism remains a key growth driver, with international visitor spending expected to contribute nearly 13 percent of GDP in 2025. In the first quarter, Dubai welcomed 5.3 million international visitors, up 3 percent year on year, consolidating its position as a leading tourism hub,” said the report. 

Strategic investments are also fueling momentum in the UAE, including a $1.4 trillion investment pipeline and new AI-focused collaborations following President Trump’s visit to the Emirates in May. 

Sheikh Mohamed bin Zayed, president of the UAE, on the sidelines of Trump’s visit, said that this planned $1.4 trillion investment in the US over the next decade underscores a strong partnership with Washington. 

The UAE president added that investments would span critical sectors such as technology, artificial intelligence, and energy. 

“While rising tariffs are likely to suppress global inflation, a weaker US dollar may push up import prices in the UAE — particularly from non-dollar trade partners — offsetting some of the disinflationary effects,” concluded ICAEW. 

Earlier this month, the Central Bank of the UAE revealed that the Emirates’ GDP reached 1.77 billion dirhams ($481.4 million) in 2024, recording 4 percent growth, with non-oil sectors contributing 75.5 percent of the total. 

CBUAE added that the Emirates is expected to witness economic growth of 4.5 percent in 2025, before accelerating further to 5.5 percent in 2026. 


Oil Updates — prices rise further as Israel-Iran extends into 4th day

Updated 16 June 2025
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Oil Updates — prices rise further as Israel-Iran extends into 4th day

HONG KONG: Oil prices extended gains Monday as Israel and Iran pounded each other with missiles for a fourth day and threatened further attacks, stoking fears of a lengthy conflict that could reignite inflation.

Gold prices also rose back toward a record high thanks to a rush into safe havens, but equities were mixed amid hopes that the conflict does not spread through the Middle East.

Investors were also gearing up for key central bank meetings this week, with a particular eye on the US Federal Reserve and Bank of Japan, as well as talks with Washington aimed at avoiding Donald Trump’s sky-high tariffs.

Israel’s surprise strike against Iranian military and nuclear sites on Friday — killing top commanders and scientists — sent crude prices soaring as much as 13 percent at one point on fears about supplies from the region.

Analysts also warned that the spike could send inflation surging globally again, dealing a blow to long-running efforts by governments and central banks to get it under control and fanning concerns about the impact on already fragile economies.

“The knock-on impact of higher energy prices is that they will slow growth and cause headline inflation to rise,” said Tony Sycamore, a market analyst at IG.

“While central banks would prefer to overlook a temporary spike in energy prices, if they remain elevated for a long period, it may feed through into higher core inflation as businesses pass on higher transport and production costs.

“This would hampercentral banks’ ability to cut interest rates to cushion the anticipated growth slowdown from President Trump’s tariffs, which adds another variable for the Fed to consider when it meets to discuss interest rates this week.”

Both main oil contracts were up around one percent in Asian trade.

But Morningstar director of equity research Allen Good said: “Oil markets remain amply supplied with OPEC set on increasing production and demand soft. US production growth has been slowing, but could rebound in the face of sustained higher prices.

“Meanwhile, a larger war is unlikely. The Trump administration has already stated it remains committed to talks with Iran.

“Ultimately, fundamentals will dictate price, and they do not suggest much higher prices are necessary. Although the global risk premium could rise, keeping prices moderately higher than where they’ve been much of the year.”

Tokyo closed 1.3 percent higher, boosted by a weaker yen, while Hong Kong reversed early losses and Shanghai, Seoul, Singapore and Wellington also advanced.

Taipei, Jakarta and Manila retreated while Sydney was flat.

London, Paris and Frankfurt were all higher in early trade.

Gold, a go-to asset in times of uncertainty and volatility, rose to around $3,450 an ounce and close to its all-time high of $3,500.

There was little major reaction to data showing China’s factory output grew slower than expected last month as trade war pressures bit, while retail sales topped forecasts.

Also in focus is the Group of Seven summit in the Canadian Rockies, which kicked off Sunday, where the Middle East crisis will be discussed along with trade in light of Trump’s tariff blitz.

Investors are also awaiting bank policy meetings, with the Fed and BoJ the standouts.

Both are expected to stand pat for now but traders will be keeping a close watch on their statements for an idea about the plans for interest rates, with US officials under pressure from Trump to cut.

The Fed meeting “will naturally get the greatest degree of market focus,” said Chris Weston at Pepperstone.

“The Fed should remain sufficiently constrained by the many uncertainties to offer anything truly market-moving and the statement should stress that policy is in a sound place for now,” he added.

In corporate news, Nippon Steel rose more than three percent after Trump on Friday signed an executive order approving its $14.9 billion merger with US Steel, bringing an end to the long-running saga.


Oil and gas important in times of conflict, Saudi Aramco CEO says

Updated 16 June 2025
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Oil and gas important in times of conflict, Saudi Aramco CEO says

KUALA LUMPUR: The importance of oil and gas can’t be underestimated at times when conflicts occur, something that was currently being seen, the head of Saudi oil giant Aramco told an energy conference on Monday.

Aramco CEO Amin Nasser delivered his speech to the Energy Asia Conference in Kuala Lumpur by a video link.

Oil prices jumped last week after Israel launched strikes against Iran on Friday that it said were to prevent Tehran from building an atomic weapon. The fighting intensified over the weekend.

“(History has) shown us that when conflicts occur, the importance of oil and gas can’t be understated,” Nasser said.

“We are witnessing this in real time, with threats to energy security continuing to cause global concern,” he said, without directly mentioning the fighting between Israel and Iran.

Nasser also said that experience had shown that new energy sources don’t replace the old, but added to the mix. He said the transition to net-zero emissions could cost up to $200 trillion, and renewable sources were not meeting current demand.

“As a result, energy security and affordability have at last joined sustainability as the transition’s central goals,” he said.

Aramco is a key part of the Saudi economy, generating a bulk of the Kingdom’s revenue through oil exports and funding its ambitious Vision 2030 diversification drive.