MENA startups get fresh funding to drive expansion

The latest funding rounds highlight investor confidence in emerging technologies and innovative business models reshaping markets in the region. (Shutterstock)
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Updated 15 March 2025
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MENA startups get fresh funding to drive expansion

  • Latest funding rounds highlight investor confidence in emerging technologies

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.


Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

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Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

RIYADH: The Arab region’s gross domestic product increased by 1.8 percent, reaching $3.6 trillion in 2024, despite facing regional challenges, according to new data.

The report, released by the Arab Investment and Export Credit Guarantee Corporation or Dhaman, showed that growth was primarily concentrated in Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which together accounted for over 72 percent of the region’s total GDP, as reported by the Kuwait News Agency.

This aligns with Moody’s January forecast that oil production and major investment projects will drive a 0.8 percentage point increase in annual economic growth across the Middle East and North Africa in 2025.

It also corresponds with Moody’s projection of 2.9 percent growth for the region in 2025, up from 2.1 percent in 2024, while maintaining a stable outlook on the region’s sovereign credit fundamentals for the next 12 months.

The data also indicated positive outlooks for the Arab economy’s performance in 2025, with an expected growth rate of 1.4 percent.

This growth is likely to be driven by expansion in 14 Arab countries, including nine oil-producing economies that together contribute more than 78 percent of Arab GDP.

There is cautious optimism surrounding the potential reduction in regional unrest and conflicts, along with an expected improvement in revenues from oil, gas, and exports of goods and services produced by the region.

In January, Moody’s emphasized that the impact of large investments in 2025 will be most evident in Saudi Arabia, driven by significant government and sovereign wealth fund spending related to the Vision 2030 diversification program.

Moody’s also noted that the pick-up in the MENA economy will be primarily fueled by stronger growth among hydrocarbon exporters, as a result of the partial unwinding of strategic oil production cuts under the OPEC+ agreement.

According to Moody’s, real GDP growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in 2024. This boost will be driven by countries like Saudi Arabia, the UAE, Iraq, Kuwait, and Oman easing the oil production cuts implemented in 2023.


Oil exports propel Oman’s trade surplus to $19.4bn

Updated 16 March 2025
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Oil exports propel Oman’s trade surplus to $19.4bn

  • Saudi Arabia ranked second for Omani non-oil exports at 849 million rials

RIYADH: Oman’s trade surplus reached 7.5 billion Omani rials ($19.4 billion) in December, up from 7.14 billion rials in November, largely driven by the oil and gas sector, according to a new report.

Preliminary data from the National Centre for Statistics and Information indicated that the increase was primarily due to higher export revenues, especially from oil and gas, despite a rise in imports.

The total value of merchandise exports in December amounted to 24.23 billion rials, reflecting a 6.8 percent increase compared to the same period in 2023, when exports were valued at 22.69 billion rials.

The growth was predominantly attributed to a rise in oil and gas exports, which reached 16.29 billion rials, an 18.4 percent increase from 13.76 billion rials in December 2023.

Meanwhile, Oman’s merchandise imports increased by 12.1 percent year on year, reaching 16.71 billion rials in December, up from 14.91 billion rials the previous year.

Despite the increase in imports, the trade balance remained positive, supported by the robust performance of the country’s energy exports.

Within Oman’s oil and gas exports, crude oil exports totaled 9.91 billion Omani rials by the end of December, marking a 0.8 percent increase from the same period in 2023.

Refined oil exports saw a significant surge of 185.5 percent, reaching 3.85 billion rials. However, liquefied natural gas exports declined by 1.9 percent to 2.53 billion rials.

Meanwhile, non-oil merchandise exports fell by 16.3 percent to 6.23 billion rials in December, down from 7.44 billion rials the previous year.

Among these, mineral products accounted for the highest value at 1.78 billion rials, but this figure represented a 36.8 percent year-on-year drop.

Exports of base metals and their products remained stable at 1.32 billion rials, increasing slightly by 0.1 percent, while plastic and rubber product exports grew by 13.3 percent to 996 million rials.

Chemical industry exports declined by 19.6 percent to 804 million rials, and exports of live animals and animal products fell 11 percent to 350 million rials. Other exports totaled 981 million rials, a decrease of 5 percent.

Re-exports from Oman increased by 14.9 percent to 1.71 billion rials by the end of December. Within this category, re-exports of food and beverage products saw a notable 30.6 percent rise to 184 million rials, while re-exports of mineral products climbed 21.3 percent to 120 million rials.

However, re-exports of transport equipment fell by 0.6 percent to 401 million rials, and electrical machinery and equipment declined by 5.4 percent to 376 million rials. Re-exports of live animals and related products also dropped by 10.1 percent to 97 million rials.

On the import side, mineral products accounted for the largest share, totaling 4.67 billion rials, an 11.3 percent increase from December 2023.

Imports of electrical machinery and equipment surged 28.9 percent to 2.93 billion rials, while base metals and their products rose 1 percent to 1.61 billion rials.

Imports of chemical products rose 3.1 percent to 1.52 billion rials, and transport equipment imports increased by 13.5 percent to 1.52 billion rials. Other imports totaled 4.47 billion rials.

The UAE remained Oman’s top trading partner for non-oil exports, with trade value rising 11 percent year-on-year to 1.05 billion rials.

The UAE also led in re-exports from Oman, which amounted to 569 million rials, and was the top source of imports into the country, totaling 3.94 billion rials.

Saudi Arabia ranked second for Omani non-oil exports at 849 million rials, followed by India at 659 million rials.

Iran was the second-largest destination for Omani re-exports at 359 million rials, with Kuwait in third at 117 million rials.

China was the second-largest exporter to Oman, with trade valued at 1.83 billion rials, followed by Kuwait at 1.69 billion rials.

In the oil sector, total crude oil exports until the end of January stood at approximately 25.82 million barrels, with an average price of $72.5 per barrel.

Oil exports accounted for 84.3 percent of total oil production, which reached 30.61 million barrels during the same period. However, crude oil exports declined by 1.5 percent compared to January 2024, when they totaled 26.2 million barrels.

Oil production also saw a 2 percent year-on-year drop, standing at 31.24 million barrels in January.

The country’s total crude oil production fell by 2.2 percent in January to 23.39 million barrels, while condensate production reached 7.22 million barrels. The daily average oil output for January stood at 987,500 barrels.

In the banking sector, total credit provided by conventional commercial banks in Oman grew by 4.8 percent by the end of December. Private sector credit rose by 3.6 percent, reaching 20.7 billion rials.

Investment by conventional banks in securities also saw a notable increase, rising 20.5 percent to approximately 6 billion rials.

This included a 7.3 percent rise in investments in government development bonds to 2 billion rials and a 30.3 percent surge in foreign securities investments to 2.3 billion rials.

On the liabilities side, total deposits at conventional commercial banks increased by 6.2 percent to 25.1 billion rials by the end of December.

Government deposits rose by 5.3 percent to 5.3 billion rials, while public sector institution deposits grew by 11 percent to 2.5 billion rials. Private sector deposits, which made up 65.3 percent of total deposits, climbed 4.9 percent to 16.4 billion rials.


Saudi Arabia’s top body reviews economic performance, global outlook

Updated 19 min 39 sec ago
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Saudi Arabia’s top body reviews economic performance, global outlook

JEDDAH: Saudi Arabia’s Council of Economic and Development Affairs hosted a virtual meeting to discuss financial performance and global developments, focusing on improving public sector contributions. 

Operating under the Council of Ministers, CEDA oversees the governance framework, mechanisms, and policies essential to achieving Saudi Vision 2030. It addresses key domestic sectors, including health, labor, education, and Islamic affairs. 

Held on March 15, the meeting covered a range of reports and topics, including the quarterly economic report from the Ministry of Economy and Planning. 

According to the Saudi Press Agency, the report is “an in-depth analysis of the drivers and challenges affecting national economic growth across various sectors, along with proposed solutions.” It also highlighted Saudi Arabia’s strong economic performance in the third and fourth quarters of 2024, supported by projections from both local and international institutions.  

CEDA also reviewed the Ministry of Finance’s fourth-quarter budget performance report for the 2024 fiscal year. The report noted that total expenditures reached SR1.37 trillion ($365.3 billion), reflecting a 6 percent annual rise, while the budget deficit widened to SR115.63 billion — a 43 percent increase from 2023, in line with previous forecasts. 

The report outlined revenue, expenditure, and public debt indicators, noting a “21 percent increase in non-oil revenues, reaching SR132 billion, compared to SR109 billion during the same period of the previous year,” SPA said.  

It credited government reforms and diversification efforts for driving growth, aligning with Saudi Vision 2030’s aim to expand non-oil sectors. 

The report also underscored the Kingdom’s “continued support for development and service projects, as well as its commitment to enhancing social welfare and protection systems,” according to SPA. 

The meeting further discussed Saudi Arabia’s upcoming participation in the 2025 World Economic Forum in Davos, emphasizing the Kingdom’s rising role among the world’s leading economies. 

CEDA reviewed additional presentations on policies and administrative frameworks, including the Supreme National Investment Committee’s guiding principles for green investments and the Ministry of Media’s organizational structure and regulations. 

The council also examined data from the General Authority for Statistics, covering import substitution indicators, the Consumer Price Index, and the Wholesale Price Index. It further reviewed the 2024 Monthly Foreign Trade Report. 

The meeting concluded with CEDA issuing decisions and recommendations on the discussed matters.


Hail region unveils 23 investment opportunities to drive economic growth 

Updated 16 March 2025
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Hail region unveils 23 investment opportunities to drive economic growth 

RIYADH: Saudi Arabia’s Hail region has launched 23 new investment opportunities for the first quarter of 2025, aiming to accelerate economic growth, boost private sector participation, and enhance service quality.

The Municipality of Hail unveiled various projects spanning residential, commercial, and service sectors. Among them are 11 sites earmarked for mixed-use residential and commercial developments, the Saudi Press Agency reported.

The plans include vehicle service centers, cafes, and commercial kiosks. They also feature a park, an educational facility, and a retail shop alongside an educational complex and a fuel station.

The initiative aligns with the Kingdom’s Vision 2030 strategy, designed to diversify the economy, empower the private sector, and improve urban living standards.

“These investment opportunities aim to meet the needs of the local community by providing advanced services that contribute to enhancing economic growth and attracting investments,” said Saud bin Fahd Al-Ali, assistant secretary for media and institutional communication at the Municipality of Hail, as quoted by SPA.

He emphasized the municipality’s commitment to helping investors, stating that they are providing “all necessary facilities and support to investors, with the aim of enhancing the investment environment in the region and achieving comprehensive and sustainable economic development” as part of efforts to align with the Kingdom’s Vision 2030.

He also encouraged local and international investors to visit the “Foras” platform to explore project details and learn how to apply.

The push comes as Hail emerges as a growing hub for business and tourism. The region welcomed more than 1.1 million visitors in the first half of 2024, including 170,000 international tourists. According to the Ministry of Tourism, over 907,000 of those arrivals were domestic travelers.

The surge in tourism has fueled demand for hospitality services, with licensed accommodations in Hail now offering around 2,600 rooms. This expansion supports the Kingdom’s broader efforts to strengthen tourism infrastructure and attract global visitors.

Hail is also set to become the fifth destination developed by the Saudi Tourism Investment Co., known as ASFAR — a Public Investment Fund-owned entity tasked with advancing tourism and leisure projects across the Kingdom.

Prospective investors can visit the “Foras” platform for application procedures, underscoring the municipality’s push to cultivate new business ventures and drive long-term regional development.


Global trade hits record $33tn in 2024, growing by 3.7%: UNCTAD 

Updated 51 min ago
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Global trade hits record $33tn in 2024, growing by 3.7%: UNCTAD 

RIYADH: Global trade reached a record high of $33 trillion in 2024, marking a 3.7 percent increase from the previous year, driven by an uptick in the services sector. 

According to the latest Global Trade Update from the UN Conference on Trade and Development, services drove growth, rising 9 percent for the year and adding $700 billion — nearly 60 percent of total exchange expansion. 

Meanwhile, trade in goods grew 2 percent, contributing $500 billion. 

“This positive momentum is expected to continue into Q1 (first quarter) 2025, building on a global trade value of nearly $33 trillion in 2024,” the report said. 

UNCTAD’s analysis highlighted a continued shift in global trade dynamics, with developing countries — particularly China and India — outperforming their developed counterparts. 

While many advanced economies faced exchange contractions, emerging markets sustained momentum, bolstered by strong exports and domestic demand. 

China’s trade surplus expanded significantly in 2024, fueled by robust exports. Meanwhile, the US trade deficit widened, reflecting its growing reliance on imports. South-South trade, involving exchanges between developing economies, remained a key driver of global trade growth. 

Services trade booms  

Services trade outpaced goods trade in 2024, increasing by 9 percent and contributing approximately $700 billion to global exchange expansion. This sector’s resilience contrasts with goods trade, which rose by just 2 percent, adding around $500 billion. The fourth quarter saw services trade maintain strong momentum, while goods trade growth decelerated. 

Tariffs and trade barriers  

Despite overall growth, UNCTAD warns of significant trade barriers. High tariffs continue to hinder market access for developing countries, particularly in agriculture and manufacturing.  

“High import tariffs raise costs for businesses and consumers, potentially curbing growth and competitiveness,” the report said. 

It added that tariff escalation — where higher duties are imposed on processed goods than raw materials — remains a major obstacle to industrialization in developing economies. 

Agricultural exports from developing countries still face steep import duties, averaging nearly 20 percent under most-favored-nation treatment. Meanwhile, textile and apparel exports continue to be subjected to some of the highest tariff rates, limiting competitiveness. 

Uncertainty clouds 2025  

Looking ahead, UNCTAD warned that mounting geopolitical tensions, trade disputes, and protectionist policies could disrupt global exchange in 2025. The report identified several risk factors, including: 

Shifts in trade policy: Increasing protectionist measures, such as new tariffs targeting specific industries, may reshape global supply chains. 

Ongoing trade tensions: Major economies, including the US and China, continue to impose retaliatory tariffs, affecting global trade flows. 

Subsidies and industrial policies: Governments are prioritizing national industries, particularly green energy and critical minerals, which could impact international trade relations. 

Economic slowdown risks: Indicators such as declining demand for container shipping suggest potential trade contraction in the coming quarters. 

However, the analysis also noted potential tailwinds, including China’s planned economic stimulus and the expected easing of global inflation, which could support trade expansion. 

Sectoral trade trends 

Trade growth varied significantly across sectors in 2024. Office equipment and pharmaceuticals saw above-average growth, while the energy sector faced a sharp decline. In the third quarter, agri-food, communication equipment, and transport surged, whereas apparel and extractive industries weakened. 

Global trade imbalances  

The report highlighted growing trade imbalances, with the US maintaining the world’s largest trade deficit and China recording the highest surplus. The EU, which ran a deficit in previous years, returned to surplus in 2024, aided by shifts in energy trade.  

Bilateral trade imbalances, particularly between the US and China, remain significant, contributing to global economic uncertainty. 

As global trade enters 2025, policymakers face the challenge of balancing growth with rising protectionism. UNCTAD emphasized the importance of multilateral cooperation and strategic trade policies to sustain momentum and navigate emerging risks.