IEA cuts 2025 oil demand forecast amid signs of global slowdown
Updated 15 April 2025
Nour El-Shaeri
RIYADH: The International Energy Agency has downgraded its outlook for global oil demand growth in 2025, warning that a weakening global economy and rising trade tensions are weighing heavily on consumption.
In its monthly oil market report released on Tuesday, the Paris-based agency revised its demand growth forecast down by 300,000 barrels per day, to 730,000 bpd for 2025. The IEA expects the slowdown to continue into 2026, when demand is projected to rise by just 690,000 bpd—one of the slowest rates in recent years.
The downgrade comes despite a strong first quarter, in which global oil consumption rose by 1.2 million bpd—its fastest pace since 2023.
However, that momentum is expected to fade amid a more fragile economic backdrop, particularly in advanced economies, where industrial activity and freight transport remain under pressure.
At the same time, oil prices have fallen sharply in recent weeks, reflecting growing concerns about oversupply and faltering demand.
Brent crude, the international benchmark, has dropped around $10 per barrel since March, falling to $65 and briefly dipping below $60 earlier this month—the lowest level since 2021.
According to the IEA, crude production among nine key OPEC+ countries rose by 60,000 bpd in March, reaching 21.94 million bpd—exceeding the group’s agreed target by 830,000 bpd. Saudi Arabia, which has led efforts to curb supply, edged output up slightly to 9.01 million bpd, just above its target of 8.96 million bpd. The Kingdom retains the largest spare capacity in the group, with the ability to raise output by more than 3 million bpd if required.
Other major producers, including Iraq, the UAE and Kuwait, all produced well above their assigned quotas. Iraq pumped 4.32 million bpd in March, compared to a target of 3.88 million bpd. The UAE exceeded its ceiling by 350,000 bpd, while Kuwait overproduced by 100,000 bpd. Nigeria was the only major member to fall short of its target, producing 1.4 million bpd—just below its 1.5 million bpd quota—amid ongoing operational and security challenges.
In a further sign of a weakening market, global oil inventories rose by 21.9 million barrels in February, climbing to 7.65 billion barrels. Crude and feedstock stocks increased by over 41 million barrels, while refined product inventories fell by 19.2 million barrels, driven by draws in OECD countries.
Refining margins also softened in March, particularly in the Atlantic Basin, where cracks for middle distillates narrowed. In response, the IEA cut its 2025 forecast for global crude throughput by 230,000 bpd, now expecting refiners to process 83.2 million bpd this year. A modest increase to 83.6 million bpd is forecast for 2026.
Despite plans by OPEC+ to increase output targets by 411,000 bpd in May, the IEA warned that any actual increase could be muted by existing overproduction and patchy compliance with quotas. It also trimmed its forecast for non-OPEC+ supply growth in 2025 by 260,000 bpd, now projecting a rise of 1.2 million bpd.
With rising economic risks, volatile geopolitics, and uncertain production policy all in play, the global oil market faces a turbulent road ahead.
Saudi Aramco profit rises to $26bn in Q1 amid strategic growth push
Updated 10 min 11 sec ago
Nirmal Narayanan
RIYADH: Energy giant Saudi Aramco reported a stronger-than-expected first-quarter net profit of SR94.54 billion ($26 billion), highlighting resilience amid weaker oil prices and reinforcing its focus on efficiency and diversified strategic growth.
The net income marked a 16.42 percent increase in the first three months of 2025 from $22.34 billion in the previous quarter, although it was down from $27.27 billion a year earlier. The company’s overall revenue in the first quarter stood at SR405.65 billion, marking a 3.23 percent quarter-on-quarter increase.
The oil giant cited disciplined capital spending, robust operations, and continued downstream expansion as key drivers of its performance.
In a statement, Amin H. Nasser, CEO of Saudi Aramco, said: “Global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices.”
He added: “In this context, Aramco’s robust financial performance once again demonstrated the company’s unique scale, its reliability and flexibility, the value of its low-cost operations, and its emphasis on efficiency and advanced technology.”
The company’s operating cash flow reached $31.7 billion, down from $33.6 billion in the first quarter of 2024, while free cash flow stood at $19.2 billion.
Aramco’s capital expenditures rose to $12.5 billion as the company continued to invest in long-term strategic projects, including lower-carbon initiatives.
Nasser said Aramco will continue working to meet global energy demand by advancing growth across its upstream, downstream and new energy segments, while also focusing on reducing emissions.
“Our ambition is reflected in milestones already announced in 2025, including progress toward our gas production growth target, our global retail expansion, the advancement of our petrochemicals strategy, headway in blue hydrogen business development, and further innovation in carbon capture,” he added.
Aramco’s board declared a base dividend of $21.1 billion for the first quarter, up 4.2 percent from the same period a year earlier. It also announced a performance-linked dividend of $219 million, to be paid in the second quarter.
“In volatile times, Aramco’s resilience underpins both our financial performance and our sustainable and progressive base dividend,” added Nasser.
Aramco also highlighted progress on several fronts in line with its long-term diversification strategy. The company finalized the acquisition of a 50 percent stake in Blue Hydrogen Industrial Gases Co. and signed definitive agreements to acquire a 25 percent interest in Unioil Petroleum Philippines, strengthening its position in blue hydrogen and downstream retail, respectively.
In addition, Aramco launched a pilot facility for direct air capture of CO2, a move aimed at scaling up its carbon capture technology and supporting the Kingdom’s emissions-reduction goals.
Global investors to convene for Future Hospitality Summit
Industry leaders will explore innovative investment models and strengthen partnerships
Updated 11 May 2025
Nadin Hassan
RIYADH: More than 1,000 tourism innovators, global investors and hotel operators from around the world will join government officials in Riyadh for the 2025 edition of the Future Hospitality Summit.
Scheduled for May 11–13 at the Mandarin Oriental Al Faisaliah, the three-day event will revolve around the theme “Where Vision Shapes Opportunity,” featuring a dynamic agenda of panel discussions, investment showcases, and high-profile deal signings.
Organized by The Bench, the 2024 edition of FHS Saudi Arabia resulted in over $1.1 billion in business opportunities and 17 major deals, reaffirming the event’s status as one of the region’s most impactful dealmaking platforms.
The 2025 summit, held alongside strategic partners such as NEOM, Red Sea Global, Taiba Investments, and the Tourism Development Fund, comes as Saudi Arabia advances one of the world’s most ambitious tourism and hospitality strategies.
Backed by a $110 billion development pipeline, the Kingdom aims to deliver more than 362,000 new hotel rooms by 2030.
In 2023 alone, the hospitality sector contributed SR444.3 billion ($118.4 billion) to the national gross domestic product.
Industry leaders at FHS 2025 will explore innovative investment models, address talent development needs, and strengthen partnerships aligned with Vision 2030’s mission to diversify the economy and establish Saudi Arabia as a premier global destination for business, culture, and religious tourism.
“FHS Saudi Arabia continues to be a key engine for hospitality investment and 2025 is shaping up to be no exception,” Jonathan Worsley, chairman of The Bench told Arab News.
“With over 1,000 delegates expected in Riyadh, including an expanded pool of investors, we anticipate a strong uplift in deal volume and a substantial wave of new opportunities. While it’s difficult to quantify exact outcomes, all signs point to another record-breaking year.”
According to Worsley, over a dozen agreements have already been confirmed ahead of the summit.
“Last year, 17 major agreements were signed at FHS Saudi Arabia and we’re well on track to exceed that number this year. We anticipate total deal value to surpass previous records driven by significant projects and opportunities across both primary hubs and emerging destinations such as Aseer, Al-Ahsa,” he said.
Worsely added:“The partnerships forged at FHS Saudi Arabia will further elevate Saudi Arabia’s global hospitality positioning.” Riyadh, Jeddah, Makkah, and Madinah continue to serve as key investment hubs, while interest grows in mixed-use developments, branded residences, and eco-luxury projects.
Worsely said: “There’s strong demand for distinctive, high-end products — from fine dining and leisure assets to mixed-use developments that blend hospitality, retail, and culture.”
He added: “Our summit is not merely a forum for discussion — it’s a marketplace where investors meet opportunities. Every panel discussion and networking session is engineered to move the conversation forward.”
The 2025 agenda will also debut two new platforms: the “NextGen Investment Forum,” focused on addressing workforce development in the hospitality sector, and the second edition of “Startup Den,” spotlighting early-stage companies driving innovation.
Saudi Arabia’s tourism sector is experiencing rapid growth, with international arrivals reaching 30 million in 2024, with a target of hitting 70 million by 2030, according to a Ministry of Tourism press release.
Revenue from international tourists surged 148 percent in 2024 compared to 2019 — the highest growth rate among G20 nations.
Saudi Arabia is undergoing one of the most ambitious hospitality and tourism transformations the world has ever seen.
Duncan O’Rourke Accor’s, CEO for the Middle East, Africa and Asia Pacific
An annual performance report published in April highlighted record-breaking pilgrim numbers, cultural milestones, and major international events, all driven by strategic investments, regulatory reforms, and transformative mega-projects.
“Fueled by ambitious Vision 2030 goals, Saudi Arabia’s tourism sector presents a compelling investment landscape, evidenced by its record-breaking SR444.3 billion GDP contribution in 2023, accounting for 11.5 percent of the national economy,” Oussama El-Kadiri, partner and head of hospitality, tourism and leisure at Knight Frank said in a statement.
He added: “This growth reflects the Kingdom’s strategic initiative to position itself as a leading global tourism destination.”
Hospitality operators are swiftly expanding their presence to match the sector’s growth, with Accor — one of the event’s headline sponsors — broadening its footprint across both primary and secondary cities.
“Saudi Arabia is undergoing one of the most ambitious hospitality and tourism transformations the world has ever seen,” Duncan O’Rourke, Accor’s CEO for the Middle East, Africa and Asia Pacific told Arab News.
He added: “Accor’s footprint in Saudi Arabia includes 45 hotels across 15 brands and over 17,000 keys. This is more than growth. It’s about legacy, partnership, and purpose. And we are honored to be a part of it.”
O’Rourke stated that demand for diversified products is rising. “From Accor’s perspective, we are seeing strong traction across segments, with a focus on branded residences, extended stay, and midscale brands, which offer compelling value while supporting long-stay and group needs.”
On pricing, O’Rourke noted that the Kingdom’s average daily rate in 2024 reflects solid fundamentals with “Riyadh’s ADR rising by approximately 10-12 percent year on year.”
In preparation for global megaevents such as Expo 2030 and the FIFA World Cup 2034, Accor is also prioritizing flexibility and localized strategies to meet evolving market demands.
“Preparing our teams for the future is not just a strategic priority, it’s how çwe live our purpose,” said O’Rourke. “In short, we’re not just responding to labor market shifts, we’re helping to shape them.”
FHS Saudi Arabia 2025 will offer a dynamic blend of keynote sessions, investor roundtables, and sector-specific panels, with a strong focus on ESG, cultural integration, and effective project delivery.
As giga-projects gain momentum, record deal activity is forecast, and investor interest expands into new sub-sectors, this year’s summit is set to be a pivotal moment for Saudi Arabia’s hospitality industry.
KAFD at the heart of Saudi Arabia’s economic and investment future
The King Abdullah Financial District has significantly boosted Riyadh’s appeal as a business and tourism destination
Updated 11 May 2025
MOHAMMED AL-KINANI
JEDDAH: The King Abdullah Financial District is fast emerging as a centerpiece of Saudi Arabia’s economic transformation, playing a critical role in the Kingdom’s efforts to diversify and establish itself as a global hub for commerce and investment.
Located in the capital, Riyadh, KAFD is more than just a collection of striking buildings, it is a thriving financial ecosystem.
As the base for the Saudi Stock Exchange, global investment firms, regulatory bodies, and fintech companies, the district is helping to reshape the financial landscape of the region.
KAFD aligns closely with the goals of Vision 2030, Saudi Arabia’s strategic framework for economic diversification. It supports growth in capital markets, attracts foreign direct investment, and fosters innovation in financial technologies, according to industry experts.
The scale of the development reflects its ambition. Spanning 3.2 million sq. meters of gross floor area over a 1.6 million sq. meter site, the district includes over 2,900 residential units and more than 6,100 hotel keys and serviced apartments. It also boasts Riyadh’s tallest tower — an 80-story skyscraper reaching 385 meters — and is the largest project in the world to receive the Leadership in Energy and Environmental Design ND Stage 2 Platinum certification.
KAFD’s design is the work of over 25 leading architectural and design firms, including Foster + Partners, Henning Larsen, and Gensler. Its five main asset classes — office, residential, hospitality, retail, and entertainment — combine to offer a modern, integrated environment for business and living.
Mansoor Ahmed, an independent adviser with over 25 years of regional experience in real estate and infrastructure, told Arab News that KAFD is the center of Saudi Arabia’s financial sector, attracting top institutions, asset managers, and fintech firms.
“KAFD encourages international financial firms and investors to establish operations in Riyadh, enhancing foreign capital inflows. For example, Goldman Sachs, a leading global investment bank, announced plans to open a new office in KAFD,” Ahmed said.
He added that Tadawul is expanding rapidly, and KAFD plays a key role in supporting market growth, driving liquidity, and diversifying financial products.
“Tadawul Tower, located within KAFD, serves as the headquarters of the Saudi Stock Exchange. Its presence in the district has contributed to attracting investors and businesses, thereby boosting the region’s economic growth,” he said.
More than buildings
Commenting on how KAFD is enhancing Saudi Arabia’s competitiveness as a global financial center, Tamer Al-Sayed, chief financial officer at the FII Institute, told Arab News that the district is more than just a striking skyline — it’s a statement.
“It signals Saudi Arabia’s commitment to becoming a major financial hub, offering a world-class ecosystem designed to attract global institutions, investors, and talent. What makes it competitive is its mix of cutting-edge infrastructure, financial incentives, and integration with Vision 2030’s broader economic reforms,” Al-Sayed said.
He added that, unlike traditional financial centers, KAFD is being developed in tandem with regulatory transformation.
The King Abdullah Financial District serves as a launchpad for fintech startups, digital banking solutions, and venture capital firms.
Mansoor Ahmed, real estate adviser
“With initiatives like the Financial Sector Development Program, fintech expansion, and capital market liberalization, Saudi Arabia is reshaping its financial landscape,” the CFO said.
He emphasized that KAFD represents these reforms in physical form, hosting key regulatory bodies, financial institutions, and technology-driven firms that will lead future economic growth.
Ahmed explained that KAFD is enhancing private sector participation and foreign direct investment by enabling financial firms to offer more sophisticated investment products, which contributes to diversifying Saudi Arabia’s economy beyond oil.
He highlighted that in 2024 KAFD planned to consolidate some of its income-generating properties into a real estate investment fund and list it on Tadawul, aiming to raise around $700 million.
“This initiative not only funds additional development projects within KAFD but also revitalizes the Saudi REIT sector for investors,” Ahmed said.
The district stands as a tangible expression of Vision 2030, demonstrating the impact of public-private partnerships in advancing Saudi Arabia’s shift toward a knowledge-based economy.
Ahmed emphasized that KAFD directly supports this initiative by working to build a more resilient and diversified financial sector.
“KAFD has been pivotal in advancing Saudi Arabia’s fintech landscape. The district’s infrastructure and strategic initiatives have contributed to the growth of fintech companies, aligning with the FSDP’s goal to foster innovation and competition in the financial sector,” he said.
Ahmed further added that KAFD fosters entrepreneurship and fintech growth by hosting innovation-driven financial firms. “KAFD serves as a launchpad for fintech startups, digital banking solutions, and venture capital firms. The Ministry of Investment and KAFD have entered into an agreement to accelerate investment and entrepreneurship within the district,” he said.
In terms of job creation and talent development, he said the district acts as a catalyst for employment across finance, technology, and professional services, attracting both local and international talent.
“KAFD is expected to accommodate around 50,000 residents upon completion and provide employment opportunities for approximately 43,000 workers, significantly contributing to job creation in line with Vision 2030’s goals,” Ahmed said.
Beyond its economic role, the district has significantly boosted Riyadh’s appeal as a business and tourism destination, helping the city’s hospitality
sector thrive.
Ahmed pointed out that KAFD sets new benchmarks for commercial real estate in Riyadh by offering Grade A office spaces that cater to global demand for smart, sustainable buildings.
“KAFD is integrating various smart city solutions to create a sustainable and efficient urban environment, including smart traffic management and mobility solutions, enhancing the appeal of its commercial real estate offerings,” he said, adding that KAFD also plays a strategic role in the Kingdom’s meetings, incentives, conferences, and exhibitions sector, positioning Riyadh as a regional business tourism hub.
“KAFD’s integration of luxury residences, exclusive retail, hospitality offerings, and diverse entertainment and recreational experiences within a compact, pedestrian-friendly urban ecosystem makes it an attractive destination for business events and tourism,” the independent adviser said.
New York, London, Riyadh?
The FII Institute’s Al-Sayed outlined the key factors that will determine whether KAFD can rival the world’s top financial hubs such as New York, London, and Singapore. He stressed that such centers evolve through a combination of regulation, infrastructure, talent, and trust.
“KAFD has the foundation, but to compete with London, New York, and Dubai, it needs three critical factors. First, regulatory competitiveness as a business-friendly regulatory environment is key. The ability to offer tax incentives, ease of doing business, and a seamless legal framework will define how attractive it becomes to global players,” he said.
What makes it competitive is its mix of cutting-edge infrastructure, financial incentives, and integration with Vision 2030’s broader economic reforms.
Tamer Al-Sayed, chief financial officer at the FII Institute
The second factor, he added, is liquidity and market depth. “Financial hubs thrive on deep, liquid markets. Expanding the Saudi stock market, facilitating foreign capital flows, and enhancing financial product diversity are essential.”
Al-Sayed identified talent and global connectivity as the third pillar. He noted that attracting top global talent and building strong international links will be decisive.
“Attracting international finance professionals while developing local talent through education and experience will be a game-changer. Additionally, enhancing global connectivity through strategic partnerships with other financial centers will solidify its position,” Al-Sayed said.
He pointed out that, just as Dubai succeeded by positioning itself as the financial gateway to the Middle East, KAFD has the potential to go even further by leveraging Saudi Arabia’s scale, resources, and long-term vision.
On foreign investment, Al-Sayed said KAFD is instrumental in shaping Saudi Arabia’s appeal to international investors.
“Traditionally, investors look for stability, accessibility, and a supportive ecosystem. KAFD provides this in a way that aligns with Vision 2030’s broader goals— diversification, digital transformation, and private-sector growth,”the CFO said.
He added that confidence in the Saudi market is key to attracting FDI.
“When global banks, asset managers, and venture capital firms establish regional headquarters at KAFD, this sends a strong signal that Saudi Arabia is open for business, not just as an oil powerhouse but as a financial and economic force,” he said.
Al-Sayed concluded that KAFD is not merely a financial center but a modern, integrated economic ecosystem.
“KAFD’s success will not be measured by the height of its towers but by the impact it has on global capital flows, business confidence, and economic diversification. The challenge is not just in building world-class infrastructure but in fostering a financial culture that can compete on a global scale,” he said.
Venture capital founders focus on scale and substance
Early-stage capital returns with renewed focus and selectivity
Updated 10 May 2025
Nour El-Shaeri
RIYADH: Momentum is building across the Middle East and North Africa’s startup ecosystem as early-stage capital returns with renewed focus and selectivity.
Investors are backing sharper business models, founders are scaling with intent, and sector diversity is deepening — signaling a more disciplined, strategically aligned phase of growth for the region.
On the regulatory front, Nama Ventures Capital Co. has received approval from Saudi Arabia’s Capital Market Authority to commence investment management activities in the Kingdom.
Founded by Mohammed Al-Zubi and chaired by Sultan Al-Saud, the firm is one of the first foreign venture capital firms to become fully licensed under Saudi capital markets law.
Originally registered in the Cayman Islands, Nama has added Saudi Arabia to its regulatory base to align with the country’s Vision 2030 objectives.
“Vision 2030 continues to turn Saudi Arabia into a thriving global hub for innovation, investment, and entrepreneurship — and this achievement places Nama Ventures at the heart of that momentum,” Al-Saud said.
The approval will allow the firm to launch its flagship funds and Shariah-compliant investment vehicles, targeting high-growth startups across Saudi Arabia, the MENA region, and selected global markets.
“This letter is more than a regulatory approval; it represents our deep-rooted commitment to Saudi Arabia’s entrepreneurial vision,” said Al-Zubi, founder and managing partner.
Founded by Mohamed Milyani and Yara Ghouth, Nqoodlet provides a financial operating system for SMSEs. (Supplied)
“We are proud to be fully ‘on the ground,’ regulated, and aligned with the future of venture capital in the region,” he added.
Nama Ventures has made early-stage investments in several high-growth startups, including Salla and Tamara, both of which have since reached unicorn status.
Among its more recent highlights is Brev.dev, a developer infrastructure platform that was acquired by Nvidia, underscoring Nama’s ability to identify globally competitive founders.
Money Fellows closes $13m strategic round
Egypt-based fintech platform Money Fellows has raised $13 million in a strategic round co-led by Al Mada Ventures and DPI Venture Capital through the Nclude Fund, with participation from Partech, CommerzVentures, and others.
Founded in 2017 by Ahmed Wadi, the company digitises traditional savings circles to facilitate accessible saving, borrowing, and investing across Africa.
The new funding will support platform enhancement, team expansion, and entry into new markets, particularly Morocco.
Fintech startup Nqoodlet raises $3m seed round
Saudi Arabia-based fintech Nqoodlet has closed a $3 million seed round led by Waad Investments, with participation from OmanTel, 500 Sanabil Investment, Oqal, Seed Holding, and other investors.
Founded by Mohamed Milyani and Yara Ghouth, Nqoodlet provides a financial operating system for small and medium-sized enterprises across Saudi Arabia and the GCC. Its offerings include smart corporate cards, real-time expense tracking, automated VAT filing, and financial planning tools.
The new funding will support the expansion of its banking infrastructure, the development of open banking integrations and automated tax reporting, team growth, and broader collaboration with banks and ecosystem partners.
Career 180 receives US investment and enters Saudi market
Egyptian education tech startup Career 180 has received a six-figure investment from US-based Den VC and announced its expansion into Saudi Arabia, supported by Value Makers Studio.
Founded in 2017 by Shrouk El-Din and Mohamed Akmal, the company offers a Software-as-a-Service-based learning management system that provides practical skills training and job-matching services.
Career 180 provides practical skills training and job-matching services. (Supplied)
Career 180 currently serves over one million learners and aims to place 50,000 individuals in the workforce, with a focus on unemployed youth.
The investment will enable the company to scale its LMS, localize Arabic content, and expand into Oman and Malta.
Canater raises $1m to scale logistics platform
UAE-based logistics startup Canater has raised $1 million in funding from Foras in exchange for a 10 percent equity stake.
Founded in 2024 by Khamis Soliman, Canater provides AI-powered logistics and supply chain solutions for manufacturers in the MENA region, with an initial focus on consumer-packaged goods.
The platform offers end-to-end cross-border trade services, including digital contracts, financing, warehousing, logistics, and real-time shipment tracking.
The funding will be used to enhance the company’s digital infrastructure, expand sectoral reach, and strengthen regulatory partnerships.
Intella partners with Infoline to launch Arabic AI platform in Oman
Arabic AI solutions provider intella has partnered with Infoline, an Omantel subsidiary and leading outsourcing provider in Oman, to roll out its AI-powered customer experience platform, intellaCX.
The platform is designed to convert Arabic voice and text interactions into business insights, offering a tailored solution for Arabic-speaking markets.
IntellaCX supports 25 Arabic dialects and uses proprietary models to deliver transcription accuracy of 95.7 percent.
The platform replaces traditional 5 percent call sampling methods with 100 percent automated analysis, enabling businesses to detect trends, assess performance, and improve service quality at scale.
Through Infoline’s local integration capabilities, the solution will be deployed across Omani enterprises to enhance customer care and operational efficiency.
MENA startup funding rises to $228m in April
Startups across the MENA raised $228.4 million across 26 deals in April, marking a 105 percent increase from March and a nearly 300 percent year-on-year surge.
Saudi Arabia led the region with $158.5 million in funding across eight deals, driven largely by iMENA Group’s $135 million pre-IPO round.
The UAE followed with $62 million across nine deals, while Morocco secured third place with $4 million across two startups.
The fintech sector attracted the most capital, securing $44 million across seven deals. Traveltech and SaaS also saw renewed interest, with SaaS startups raising $1.8 million after a quiet first quarter.
Early-stage investments accounted for $49 million across 20 transactions, indicating strong appetite for emerging ventures despite limited late-stage activity.
Alchemist Doha partners with Startup Grind Qatar
Alchemist Doha, an equity fund focused on tech entrepreneurs in emerging markets, has entered into a strategic partnership with Startup Grind Qatar, the local chapter of a global founder and startup network.
The collaboration will facilitate access to global networks, deliver founder-focused programming, and support high-potential startups in scaling both locally and internationally.
The initiative aligns with broader efforts to strengthen Qatar’s entrepreneurial ecosystem.
MedIQ secures $6m series A to expand in Saudi Arabia and Gulf markets
Pakistan-based health tech platform MedIQ has raised $6 million in a series A funding round led by Rasmal Ventures and Joa Capital, with participation from existing investors.
Founded in 2020 by Saira Siddique, MedIQ provides a hybrid healthcare platform combining telehealth, e-pharmacy services, AI-driven facility digitization, and back-office automation for insurance partners.
The company expanded into Saudi Arabia in 2023 and will use the funding to strengthen its technology stack, scale operations in the Kingdom’s health tech market, and support entry into Qatar and neighboring Gulf markets.
iSUPPLY secures $3m Shariah-compliant financing from Bokra
Egypt-based B2B medical tech startup iSUPPLY has secured $3 million in revenue-based revolving financing from Bokra.
The funding is Shariah-compliant and will support the company’s operational scale-up and improved access to medical supplies, particularly in underserved communities.
Founded in 2022 by Ibrahim Emam, Malek Sultan, and Moustafa Zaki, iSUPPLY offers a one-stop solution to digitise pharmaceutical supply chains and address disruption risks.
The company previously closed a pre-series A round in June with participation from Disruptech Ventures, OneStop Capital, Axian Investment CVC, and Egypt Ventures.
CPX Holding acquires cyber-AI startup spiderSilk
UAE-based cybersecurity firm CPX Holding has acquired local cyber-AI startup spiderSilk, including its core product, the Resonance platform for managing digital exposure.
Founded in 2019, spiderSilk has developed autonomous SOC AI agents and a proprietary cyberintelligence platform built on a global knowledge graph.
The acquisition aims to strengthen CPX’s threat detection capabilities and supports its international expansion strategy, including entry into North America, Saudi Arabia, and the broader GCC.
Konnect Networks receives investment from Attijariwafa Ventures
Tunisian fintech startup Konnect Networks has secured an undisclosed amount from Attijariwafa Ventures as part of a broader funding round that included Visa, Plug and Play Tech Center, and Renew Capital, as well as Digital Africa Ventures, Utopia Capital Management, 54 Collective, and Sunny Side Venture Partners.
Founded in 2021 by Amin Ben Abderrahman, Konnect offers payment links, e-commerce plugins, and APIs for businesses of all sizes.
The latest funding will support product innovation and regional expansion. In late 2024, Konnect also secured funding from Renew Capital.
Sira expands professional networking platform to UAE
Jordan-based professional community platform Sira has launched operations in the UAE as part of its regional expansion strategy.
Founded in 2022 by Ayah Saeed and Zara Najjar, Sira offers a curated, membership-based platform focused on building authentic, values-driven professional connections.
The platform features private communication spaces, peer-led admissions, and sector-agnostic events.
The UAE expansion supports Sira’s mission to build a trust-based network across the MENA region. To date, the company claims it has facilitated over $3.6 million in collaborations among members.
Here’s what to expect in Saudi Arabia’s sky in the near future
Updated 10 May 2025
Miguel Hadchity
RIYADH: Increased technology integration and greater connectivity over the next five years will see Saudi Arabia cement its position as a global aviation hub, experts have told Arab News.
In a comprehensive assessment of the Kingdom’s air sector, analysts and industry insiders have set out how investment in infrastructure, the roll out of new airlines, and a focus on sustainability will see Saudi Arabia reach its Vision 2030 goals.
The Kingdom is targeting handling 330 million passengers annually across 250 destinations by the end of the decade, as well as transporting 4.5 million tonnes of cargo.
The industry laid the groundwork for this growth in 2024, achieving record-breaking results with the 94 million passengers transported representing a 15 percent year-on-year increase, alongside a 10 percent rise in flight activity, and a 52 percent boost in air cargo, to reach nearly 1 million tonnes.
The International Air Transport Association’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi told Arab News that the Kingdom is preparing for the aviation sector to play an even bigger role in its future.
“Over the next five years, we expect continued development in digitalization and connectivity, and for Saudi Arabia to be in an even stronger position as a global hub, driving economic and social growth for the Kingdom,” he said.
Al-Awadhi also emphasized that the nation’s regulatory reforms and commitment to sustainability will be key factors in attracting international airline partnerships and investment.
He added: “GACA’s (the General Authority of Civil Aviation) revision of its charging scheme, to make Saudi airports more competitive in the region, is a positive step, now and for the future. As is its establishment of an independent economic regulatory framework.”
The top official noted that Saudi Arabia is the first country in the Middle East and North Africa to do this, and encouraged others to follow.
Riyadh Air — a portal to the Kingdom
A key development in the sector is the highly anticipated debut of Riyadh Air, Saudi Arabia’s new full-service airline, set to launch in 2025.
The company has made significant strides in preparation for its release, including major aircraft acquisitions, strategic alliances, and technological investments.
Mark Bothorn, principal of innovation practice at Arthur D. Little Middle East, highlighted that the launch of Riyadh Air is a “watershed moment for Saudi Arabia’s aviation sector — an event of this scale and significance happens perhaps once a decade.”
He added: “As a full-service national flag carrier, Riyadh Air will not only enhance domestic connectivity but also position the Kingdom’s capital as a major global aviation hub.”
Bothorn further anticipated that the new national carrier would serve as an ambassador for Saudi Arabia, embodying the nation’s vision through cutting-edge design, unparalleled guest experience, and world-class connectivity. “The way the world perceives Riyadh will, in many ways, be shaped by the experiences this airline delivers,” he added.
Mark Bothorn, principal of innovation practice at Arthur D. Little Middle East. Supplied
The airline has ordered 60 Airbus A321neo jets, with plans for additional wide-body aircraft this year. It has secured agreements with Singapore Airlines, Air China, and Delta Air Lines to enhance interline connectivity, codeshare operations, and frequent flyer benefits.
Riyadh Air is collaborating with Artefact to develop an advanced data analytics platform that aims to offer hyper-personalized services and seamless digital-first experiences. Its initial routes will connect Saudi Arabia to major cities in Europe, North America, and Asia, enhancing its international connectivity.
Riyadh Air plans to connect with more than 100 cities by 2030. Shutterstock
The Kingdom’s existing airlines are also undergoing significant transformations to cater to the growing demand and enhance international reach.
Saudia has placed a historic $19 billion order for 105 Airbus A320neo aircraft to expand its fleet, set for delivery starting in 2026.
Additionally, the airline is enhancing its maintenance and repair capabilities through a partnership with Air France-KLM. Flyadeal, Saudia’s budget airline, aims to double its fleet to 100 aircraft by 2030, offering affordable travel options across domestic and regional routes.
Flynas, the region’s top low-cost airline, secured a 280-aircraft deal, including Airbus A320neo and A330neo models, to support its aggressive expansion strategy. The airline also introduced new routes connecting Saudi Arabia to Africa and Europe.
Bothorn commented on the impact of heightened market contenders, saying: “Increased competition is always a catalyst for innovation and improvement, and in Saudi Arabia’s aviation sector, it will lead to two transformative outcomes.”
First, enhanced connectivity will strengthen Riyadh’s position as a global business hub by providing seamless access to international markets through more flights and improved routing.
Second, Riyadh Air, unburdened by legacy systems, has the potential to redefine air travel, setting new benchmarks in passenger experience and efficiency, according to Bothorn.
Airport infrastructure soars
To handle the volume that new airlines will be attracting, Saudi Arabia is investing heavily in airport infrastructure.
King Salman International Airport in Riyadh is set to become one of the world’s largest airports, with ongoing developments led by global firms including Foster & Partners and Jacobs Engineering. The airport will increase its capacity to accommodate 120 million passengers by 2030.
King Khalid International Airport’s expansion includes upgrades to Terminals 1 and 2, increasing capacity to 14 million passengers annually. Saudia’s deal with German aerospace company Lilium NV will introduce 50 electric vertical takeoff and landing jets, making it the first airline in the region to invest in sustainable air travel.
Bothorn emphasized the impact of airport infrastructure advancements. “For many travelers, the airport experience is often the most stressful part of a journey — navigating terminals, dealing with security bottlenecks, and enduring long waits.”
He added: “A seamless integration between the airport and airlines can dramatically transform this, replacing frustration with efficiency and even moments of delight.”
Bothorn envisioned airports that proactively anticipate passenger needs, with real-time updates enabling travelers to relax in lounges or dine rather than wait at gates.
An impression of how King Salman International Airport will look when construction is completed. File
Investment turbines spin
Saudi Arabia’s business aviation sector is thriving, driven by an influx of high-net-worth individuals and economic expansion. The sector, valued at $1.2 billion in 2023, is expected to grow at an annual rate of 8.88 percent from 2025 to 2029.
GACA is further boosting this sector by removing restrictions on foreign on-demand charter flights, allowing international operators to enter the domestic private aviation market starting in May.
Infrastructure and transportation developments outlined in the 2025 Saudi budget report reinforce these aviation ambitions. The gross domestic product of the transportation and logistics sector grew by 6.4 percent in the first half of 2024.
Total investment contracts signed in this sector amounted to over SR200 billion ($53.3 billion). Saudi Arabia has also strengthened its global presence by securing key positions in international aviation organizations, including hosting the UNCTAD Global Supply Chain Forum in 2026 and chairing the Executive Council of the Arab Civil Aviation Organization.
To enhance aviation services, the Kingdom has looked to implement modern and eco-friendly transportation initiatives during the Hajj season, including self-driving taxis, smart delivery vehicles, and increased aircraft seat capacity for pilgrims. Performance-based operations and maintenance contracts have been executed to enhance asset management efficiency.
Plans for 2025 include SR42 billion allocated for the infrastructure and transportation sector, which will witness the launch of several travel lounges across international airports, licensing new national air carriers, and expanding public bus networks to improve intercity and regional connectivity.
Al-Awadhi of IATA further elaborated on the nation’s role in shaping global aviation policies. “Many countries in the region look to Saudi Arabia for developing their aviation sectors, so the Kingdom plays an important role in shaping regional policies.”
Recent work revamping economic regulation related to consumer protection, safety and security has been followed by other countries in the region, according to the top official.
“We’re stronger as an industry when standards are aligned, not just regionally but globally,” he added.
Private jets and Saudi Arabia’s aviation roadmap
Saudi Arabia has made developing the private aviation market a key part of its roadmap for the sector, with the charter and corporate jet segments being supported by infrastructure upgrades such as six new general aviation airports.
The sector’s growth aligns with Vision 2030’s diversification efforts, particularly in tourism and entertainment, with destinations like AlUla and the Red Sea International Airport, capable of handling 1 million tourists annually, driving demand.
During 2024’s Future Aviation Forum, GACA unveiled a roadmap aimed at increasing the general aviation sector’s contribution to GDP, targeting a tenfold growth to reach $2 billion by 2030. The plan encompassed the business aircraft sector, including private charter flights and corporate aviation.
Sustainability is another focus, with GACA’s plan targeting net-zero emissions by 2060 through initiatives such as sustainable aviation fuel and AI-driven efficiency optimizations. However, challenges, including limited sustainable aviation fuel supply, remain.
The International Air Transport Association’s Regional Vice President for Africa and the Middle East Kamil Al-Awadhi. Supplied
The 35 percent SAF blend, supplied by Arabian Petroleum Supply Co., reduces aircraft emissions by up to 35 percent per flight, aligning with RSG’s broader sustainability efforts, including 400 megawatt-peak of solar installations and plans to plant 50 million mangroves by 2030.
The airport, operational from 2023 and with international flights beginning in 2024, serves the growing Red Sea destination, set to feature 50 resorts by 2030.
The next five years will bring transformative benefits for travelers flying to and from Saudi Arabia. Expanded airline networks will improve connectivity, reduce layovers, and increase travel convenience.
The rise of low-cost carriers like flyadeal and flynas means more budget-friendly flights for domestic and international routes. AI-driven services, biometric security checks, and world-class airport infrastructure will streamline travel, making it more efficient and comfortable.
“Expect nothing short of a revolution in the way people travel,” Bothorn said. He explained that long queues at security and immigration, endless gate waits, and the anxiety of either rushing through the airport or arriving far too early “will become relics of the past.” He projected air travel to become more intuitive and enjoyable.
Al-Awadhi added that Saudi Arabia is investing heavily in digital processing of passengers and integrating latest technologies at airports.
“We can certainly expect better passenger experience and customer service,” he said, adding: “Airlines are also updating their fleets so travelers will be flying on the latest aircrafts, enjoying what new technologies have to offer. Improved connectivity will provide travelers with more choices, enhancing the overall customer experience.”
Investments in eVTOL aircraft and eco-friendly practices signal a shift toward greener aviation. Saudi Arabia is undergoing a historic transformation in its aviation sector, with massive investments, strategic expansions, and cutting-edge innovations that will redefine the travel experience.
By 2030, the Kingdom aims to be a premier global aviation hub, offering world-class connectivity, seamless air travel, and state-of-the-art airport facilities.
