Saudi Arabia’s startup ecosystem LEAPs once again

Launched by Abdelrahman Sherief, Ahmed Ismail, Ismail Omar, and Mohammed El-Horishy, Taager helps entrepreneurs start and scale online businesses. (Supplied)
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Updated 15 February 2025
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Saudi Arabia’s startup ecosystem LEAPs once again

  • LEAP 2025 boosts KSA’s role as a regional hub for fintech, e-commerce

RIYADH: Saudi Arabia’s LEAP 2025 tech conference, held from Feb. 9 to 12, showcased the Kingdom’s growing startup ecosystem, with multiple funding rounds, acquisitions, and expansion plans announced during the event.  

The conference, a key platform for innovation and investment, further cemented Saudi Arabia’s role as a regional hub for fintech, e-commerce, logistics, and emerging technologies.  

Saudi Arabia-based contech startup BRKZ used the forum to announce the completion of a $17 million series A extension, which includes $8 million raised in March 2023 and $1 million in venture debt.  

Investors in the round included Capifly, along with existing backers BECO Capital, Aramco’s Waed, and 9900 Capital, as well as Better Tomorrow Ventures, RZM Investment, and Class 5 Global.

MISY Ventures, Knollwood Investment Advisory, and Fluent Ventures are also among the supporters. Founded in 2023 by Ibrahim Manna, BRKZ is a B2B construction technology platform that connects suppliers and buyers while offering various delivery and payment options.  The latest funding brings BRKZ’s total capital raised to $22.5 million. 

Tabby doubles valuation to $3.3bn with a $160m round 

Saudi Arabia-based fintech Tabby has secured $160 million in a series E funding round at a $3.3 billion valuation.  

The round was led by existing investors Blue Pool Capital and Hassana Investment Company, with additional participation from STV and Wellington Management. 

Founded in 2019 in the UAE by Hosam Arab, Tabby operates as a buy now, pay later platform, handling $10 billion in annualized transaction volumes. 




Saudi-based fintech startup RasMal has closed a $4.8 million pre-series A investment round, led by Syndicate Element Holding Group. (Supplied)

The new funds will be used to accelerate the company’s expansion in financial services, including digital spending accounts, payments, cards, and money management tools.  

The latest investment also strengthens Tabby’s planned initial public offering. The company had previously raised $200 million in a series D round in October 2023.  

Buildnow closes $9.7m to expand SME-focused construction financing 

Saudi Arabia-based Buildnow has raised $9.7 million in a funding round led by STV and Arbah Capital, with additional financing coming from a mix of debt and equity. 

Founded in 2022 by Hisham Al-Saleh, Rahat Dewan, and Abdulla Sheikh, Buildnow is a build now, pay later platform that supplies construction materials on flexible credit terms while paying small and medium enterprise suppliers upfront in cash.  

The new capital will be used to scale its operations in the construction and building sector. In March last year, the company closed a $9.4 million seed round, comprising $6.5 million in equity and $2.9 million in debt financing.

Taager raises $6.75 million to expand social e-commerce in MENA 

Social e-commerce platform Taager, which was founded in Egypt and is now headquartered in Saudi Arabia, has secured $6.75 million in a pre-series B round led by Norrsken22. 

Launched in 2019 by Abdelrahman Sherief, Ahmed Ismail, Ismail Omar, and Mohammed El-Horishy, Taager helps entrepreneurs start and scale online businesses by offering product sourcing, storage, shipping, and customer payment solutions.  

Operating in Saudi Arabia, Egypt, the UAE, and Iraq, the company aims to further expand across the Middle East with its new funding.  

In 2021, Taager raised $6.4 million in a seed round led by 4DX Ventures, Raed Ventures, and other investors.

RasMal raises $4.8m to enhance digital cap table management 

Saudi-based fintech startup RasMal has closed a $4.8 million pre-series A investment round, led by Syndicate Element Holding Group. 

Founded in 2019 by Basil Al-Kuraya and Nasser Al-Tamimi, RasMal offers digital solutions for private companies to automate cap table management, fundraising, and equity transfers. 

The company also supports investors and private funds in streamlining investment processes. The new funding will be used to introduce new tools and services to further enhance fundraising and equity management for its clients.

Waad Investment secures backing from Oman’s ITHCA Group 

Saudi-based Waad Investment has announced an investment from ITHCA Group, an entity created by Oman Investment Authority in 2019. 

The deal aims to strengthen telecom, IT, and venture capital collaboration between Saudi and Omani companies, supporting the Kingdom’s Vision 2030 and the sultanate’s Vision 2040. 




Saudi-based Waad Investment has announced an investment from ITHCA Group.

PIESHIP secures $2.1m seed round for logistics expansion 

Logistics startup PIESHIP raised $2.1 million in a seed round led by Nama Ventures, with participation from SEEDRA Ventures and angel investors. 

Founded in Saudi Arabia in 2023 by Nasser Al-Harthi, Musaed Al-Amri, and Mohammed Mohsen, PIESHIP provides warehouse management solutions, last-mile delivery services, and logistics technology.  

The investment will support the company’s growth in the Saudi market. The startup previously secured an undisclosed pre-seed investment from Nama Ventures and SEEDRA Ventures.

LAHINT raises $1m to expand automated government services 

LAHINT, a Saudi-based e-services platform, has raised $1 million in a pre-seed funding round from undisclosed investors. 

Founded in 2023 by Ahmed Saber and Mohamed Ibrahim, LAHINT provides automated government services for both individuals and businesses.  

The company plans to expand its service offerings and introduce AI-powered eligibility consultations. Last year, LAHINT raised $267,000 in an earlier pre-seed round.

Mush Social acquires Pubbles to expand virtual communities 

Social media platform Mush Social has acquired Pubbles, a social media app operating in the Kingdom, to enhance its user base and digital presence. 

Founded in Saudi Arabia in 2022 by Abdulhadi Al-Asmi, Mush Social enables users to earn points and own virtual assets through its interactive map feature.  

Pubbles, launched in 2020, specializes in virtual communities and interactive technologies. In November 2024, Mush Social secured a $1.2 million pre-seed round led by Nifal Consulting.

Salla acquires Sweply, rebrands it as Salla Ads 

Saudi e-commerce Software-as-a-Service provider Salla has acquired Sweply, a digital advertising platform, as part of its strategy to integrate advertising solutions into its ecosystem. 

Founded in 2016 by Nawaf Hariri and Salman Butt, Salla enables merchants to set up online stores quickly.  

Sweply, launched in 2021 by Ebrahim Saeed and Wael Hassan, specializes in automated digital advertising. 

Following the acquisition, Sweply will be rebranded as “Salla Ads.” In March, Salla raised $130 million in a pre-IPO round led by Investcorp, Sanabil Investment, and STV. 

Foodics acquires UK-based Solo Venture, invests in three startups 

Saudi Arabia-based Foodics has acquired UK-based Solo Venture, a provider of self-ordering kiosks and online ordering solutions, as part of its strategy to enhance its restaurant and payments technology ecosystem. 

Founded in 2014 by Ahmad Al-Zaini and Mosab Al-Othmani, Foodics offers a point-of-sale and restaurant management platform for dine-in restaurants, food trucks, and cloud kitchens. 

Alongside the acquisition, Foodics has invested in Norma, a Greek AI-powered data analytics firm; Add, an accounting system for small businesses; and Arzaq Plus, a supply chain platform using AI and smart logistics to optimize sourcing and reduce waste.  

Foodics also plans to introduce a buy now, pay later feature for restaurant bills, improving cash flow management.

Unipal raises pre-series A funding to expand in Saudi Arabia 

Bahrain-born education tech startup Unipal has closed its pre-series A funding round, led by Plus VC with participation from Al Jazira Capital, RZM Investments, Falak Angels, and Doha Tech Angels. 

Founded in 2020 by Ali Al-Alawi and Ali Al-Shaer, Unipal provides discounts and special offers to university students via its platform.  

The funding will support Unipal’s expansion into Jeddah, Madinah, Dammam, and Khobar and the launch of its new AI-driven app.

T2 acquires majority stake in fintech platform Moola 

Saudi tech services provider T2 has acquired a majority stake in Moola, a Saudi expense management platform, to enter the fintech sector. 

Founded in 2022 by Waseem Hammoud, Moola provides corporate business cards and financial automation tools. T2 serves over 12,000 clients with software and business intelligence solutions. 

Raenest secures $11m series A for African expansion 

Raenest, a multi-currency accounts platform for African businesses, has closed an $11 million series A led by QED Investors, with backing from Norrsken22, Ventures Platform, P1 Ventures, and Seedstars. 

The funding will help Raenest expand in Nigeria, Kenya, the US, and Egypt, while growing Geegpay, its payment solution for Africa’s gig economy. 

MENA startup funding reaches $863m in January  

The MENA startup ecosystem raised $863 million in January, across 63 funding rounds, though $768 million came from debt financing. When excluding debt, the investment level was similar to January 2024, according to Wamda’s monthly report. 

Saudi Arabia dominated regional funding, securing $839.5 million across 21 deals, with Lendo and Forus debt rounds accounting for $750 million. 

The UAE followed with $14.6 million across 15 deals, while Egyptian startups raised $6 million from seven transactions. Other MENA countries collectively raised less than $2.5 million. 

The fintech sector led with $776.6 million across 11 deals, largely due to Lendo and Forus’ financings. Property tech attracted $38.7 million, while e-commerce startups secured $30 million across five rounds.


Saudi Aramco lowers July oil prices for Asian markets

Updated 04 June 2025
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Saudi Aramco lowers July oil prices for Asian markets

RIYADH: Saudi Aramco has slashed its official selling price for crude oil destined for Asia in July, the company confirmed in an official statement on Wednesday.

The state-owned oil giant cut the price of its benchmark Arab Light crude by $0.20, setting it at $1.20 per barrel above the average of Oman and Dubai crude prices.

Saudi Aramco prices its crude oil across five density-based grades: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).

The company’s monthly pricing decisions impact the cost of around 9 million barrels per day of crude exported to Asia and serve as a pricing benchmark for other major regional producers, including Iran, Kuwait, and Iraq.

In the North American market, Aramco set the July OSP for Arab Light at $3.50 per barrel above the Argus Sour Crude Index.

Aramco determines its OSPs based on market feedback from refiners and an evaluation of crude oil value changes over the past month, taking into account yields and product prices.

Plans by OPEC+ producers to increase output by 411,000 barrels per day in July are also weighing on the market.

Yet, there was some support as wildfires reduced Canada’s production by some 344,000 bpd, according to Reuters calculations.

 


PIF-backed Lucid inks graphite supply deal to bolster US EV battery material sourcing

Updated 04 June 2025
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PIF-backed Lucid inks graphite supply deal to bolster US EV battery material sourcing

RIYADH: Lucid Group, the electric vehicle manufacturer backed by Saudi Arabia’s Public Investment Fund, has signed a multiyear supply agreement with Graphite One to source natural graphite from the US.

The move is aimed at reinforcing the company’s domestic supply chain for battery production. The agreement aligns with Lucid’s broader strategy to secure critical raw materials domestically.

It follows similar deals with Graphite One and Syrah Resources as the company ramps up efforts to localize its EV production ecosystem.

According to the terms, the graphite will be supplied through Lucid’s battery cell partners for use in upcoming vehicle models.

Lucid is majority-owned by PIF, which holds a 60 percent stake, amounting to 1.77 billion shares. The partnership underscores the sovereign fund’s long-term commitment to advancing electric mobility as part of Saudi Arabia’s Vision 2030.

In September 2023, Lucid opened its first international manufacturing facility in King Abdullah Economic City. The plant currently produces 5,000 vehicles per year, with plans to scale up to 155,000 units annually. The expansion is expected to support Saudi Arabia’s ambitions to diversify its economy and become a regional hub for electric vehicle manufacturing.

“A supply chain of critical materials within the United States drives our nation’s economy, increases our independence against outside factors or market dynamics, and supports our efforts to reduce the carbon footprint of our vehicles,” said Marc Winterhoff, interim CEO at Lucid.

Under the latest deal, Lucid and its battery suppliers will begin receiving natural graphite from Graphite Creek, a deposit located near Nome, Alaska, starting in 2028. This builds on a prior agreement signed in 2024, in which Graphite One will provide synthetic graphite from its proposed anode materials facility in Warren, Ohio — also set to begin production in 2028.

“This agreement complements the deal we struck with Lucid in 2024 — which marked the first synthetic graphite agreement between a US graphite developer and a US EV company,” said Anthony Huston, CEO of Graphite One.

He added: “We made history then — and we’re continuing to make history now as we build momentum for our efforts to develop a fully domestic graphite supply chain, to meet market demands and strengthen US industry and national defense.”

Lucid is also expected to receive natural graphite active anode material from Syrah Resources starting in 2026, as part of its ongoing diversification of supply sources.

In a further boost to its financial position, Lucid closed a $1.1 billion offering of convertible senior notes in April, due in 2030. The announcement came shortly after the company reported first-quarter deliveries of 3,109 vehicles — a 58 percent increase year on year.


Closing Bell: Saudi main index closes in green before Eid holidays 

Updated 04 June 2025
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Closing Bell: Saudi main index closes in green before Eid holidays 

RIYADH: Saudi Arabia’s Tadawul All Share Index climbed on Wednesday, gaining 172.1 points, or 1.59 percent, to close at 11,004.53. 

The total trading turnover on the benchmark index was SR4.61 billion ($1.23 billion), with 191 listed stocks advancing and 50 declining.

The Kingdom’s parallel market Nomu surged by 257.9 points to close at 27,307.74. 

Meanwhile, the MSCI Tadawul Index edged up by 1.67 percent to 1,406.49.  

The best-performing stock on the main market was Saudi Industrial Investment Group, with its share price surging 7.03 percent to SR17.36. 

The share price of ACWA Power Co. also rose by 6.72 percent to SR269.80.  

Al-Babtain Power and Telecommunication Co. saw its stock price increase by 5.40 percent to SR5.40. 

Conversely, the share price of Saudi Steel Pipe Co. fell by 6.33 percent to SR56.20. 

Saudi Research and Media Group also saw a dip, with its share price easing 2.26 percent to SR127. 

On the announcements front, Saudi National Bank completed its offer of Saudi riyal-denominated Additional Tier 1 sukuk, with the settlement finalized on June 3. 

According to a statement on the Saudi Exchange dated May 11, the issuance was conducted through a private offer to eligible investors in the Kingdom. The total value of the sukuk offering amounted to SR1.73 billion. 

The bank issued 1,730 sukuk, each with a par value of SR1 million. The sukuk will offer an annual return of 6 percent from the issue date until June 3, 2030. 

The share price of Saudi National Bank increased by 0.88 percent to close at SR34.45. 

The announcement coincided with the implementation of the unified regulation for cross-border registration of investment funds among Gulf Cooperation Council countries, which came into effect in 2025, according to the Capital Market Authority. 

The regulation outlines requirements for registering and marketing investment funds across GCC countries and introduces a dedicated regulatory guide. 

It aims to clarify procedures for handling both local and Gulf-based funds, enhance financial market services, and reduce regulatory challenges. 

Additionally, the framework seeks to support mechanisms that attract international investments to the Saudi financial market and boost foreign ownership in investment funds. 

The broader goal is to improve liquidity in regional financial markets, enhance the competitiveness of GCC economies, and foster integration by unifying the policies and systems governing domestic, regional, and foreign investment activities. 

The regulation also aims to ensure a transparent and stable investment environment. 

Under the framework, the legislative committee in each host country will have the authority to set standards for approving fund registrations and supervising funds within its jurisdiction, including overseeing the appointed agent and their interactions with investors. 

Cross-border registration must be conducted through the capital market authorities of both the fund’s country of origin and the host country. 

The regulation allows investment funds established in any GCC member state to be promoted in other countries applying the framework. 

It also outlines the process for offering Saudi funds in Gulf markets, with a focus on aligning with regulatory review mechanisms and cross-border registration requirements to ensure full compliance with approved guidelines. 


Saudi POS spending hits $4bn pre-Adha, fueled by increased spending across all sectors 

Updated 04 June 2025
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Saudi POS spending hits $4bn pre-Adha, fueled by increased spending across all sectors 

RIYADH: Saudi Arabia’s point-of-sale transactions climbed 33 percent to SR15.5 billion ($4.15 billion) in the week preceding Eid Al-Adha, driven by increased spending across all sectors. 

The latest data from the Saudi Central Bank, also known as SAMA, showed that the clothing and footwear sector led the growth seen in the week ending May 31, registering the largest jump in transaction value, up 72.7 percent to SR1.2 billion. 

The sector also saw a 61.6 percent rise in the number of transactions, reaching 8.6 million. 

The education sector followed, recording a 61.6 percent increase in transaction value to SR242.1 million. Telecommunication spending ranked next, rising 44.5 percent to SR136.2 million, with transactions up 19.9 percent to 2.1 million. 

Food and beverages — the sector with the biggest share of total POS value — recorded a 34.2 percent increase to SR2.2 billion. 

Transportation spending rose 29.7 percent to SR898.8 million, while restaurants and cafes saw a 24.3 percent increase, totaling SR2 billion and claiming the second-biggest share of this week’s POS. 

The smallest spending gains were in hotels, rising by 9 percent to SR207.5 million, and construction and building materials, which increased by 12.9 percent to SR267.6 million. 

Health outlays rose by 28.4 percent to reach SR952.8 million, while the public utilities sector increased by 29.1 percent to SR55.3 million. 

Spending on electronics followed the trend, rising 23.1 percent to SR187.2 million, and recreation and culture edged up 42.5 percent to SR324.3 million. 

Miscellaneous goods and services claimed the third-largest share of total transactions value, with an uptick of 34.4 percent to SR1.9 billion. 

The top three categories — food and beverages, miscellaneous goods and services, and clothing and footwear — accounted for 39.9 percent of the week’s total spending, amounting to SR6.2 billion. 

Geographically, Riyadh dominated POS transaction value, with expenses in the capital reaching SR5.4 billion, a 42.7 percent increase from the previous week. 

Jeddah followed with a 27.7 percent rise to SR2.1 billion, while Dammam ranked third, up 25.1 percent to SR776.5 million. 

Hail saw the biggest weekly increase in transaction value, inching up 52.6 percent to SR262.6 million, followed by Tabuk with a 51.3 percent uptick to SR323.6 million. 

Hail recorded 4.3 million deals in transaction volume, up 24.7 percent, while Tabuk reached 5.2 million transactions, rising 21.1 percent. 


Hong Kong-based Gaw Capital plans to step up Middle East investments

Updated 04 June 2025
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Hong Kong-based Gaw Capital plans to step up Middle East investments

  • Gaw Capital targets UAE, Saudi Arabia for investments
  • Firm plans separate investment vehicle for Middle East

HONG KONG: Gaw Capital plans to bolster investments in the Middle East, its top executive said, as the Hong Kong-based multi-asset investment manager looks to tap into the post-COVID boom in the region’s real estate and other industrial sectors.

Christina Gaw, Gaw’s managing principal and global head of capital markets, said the firm is looking at real estate and other businesses in the UAE and Saudi Arabia as their population has a large demand for real assets.

Gaw acquired a residential building in Abu Dhabi in May for more than $150 million, and signed a pact in November with Expo City Dubai and Lingang Group to explore creating the Expo Life Science Park in Dubai.

The firm, which had $34.4 billion of assets under management as of the end of 2024, expects to close another deal in the region in the second half of the year, said Gaw, whose two elder brothers founded the company in 2005.

Gaw’s interest in the Middle East comes against the backdrop of a post-pandemic property boom there, fueled by business demand and foreign investment.

“(The Middle East) is very wealthy, what can you bring to them? It’s the expertise ... they want to attract talents and different businesses,” Gaw said in an interview. “And we have tenants and business who want to expand there, so we act as a bridge ... to provide them funding and local connections.”

The firm plans to set up a separate vehicle to build an investment track record in the Middle East first before using its main funds in the future.

Gaw, whose main focus has been Greater China and in recent years in Japan and Australia, is also raising a $2 billion fund for private equity and private credit opportunities in Asia Pacific.

The fund is receiving interest from Middle Eastern and Asian investors, as well as in North America, who are looking to diversify amid changing geopolitics.

“Currently the US has many uncertainties. Investors who have been overweighting the US and have done well for many years now may say, ‘I need a little level play’,” Gaw said.

“Asia, on the other hand, has underperformed in the past five years, creating relative value, and people feel they need a repositioning and add some positions in Asia.”

Besides the Middle East, Gaw this year also made investments including more than $1 billion in the Tokyu Plaza Ginza mall in Tokyo with a joint venture partner, and a 45 percent stake in Agility Asset Advisers, a real estate manager in Japan.

In its home market, Gaw said that the firm was focusing on a private credit business linked to upper-middle class residential projects, and was in talks with developers with liquidity needs as well as banks that are selling their non-performing loans.