Startup Wrap – Regional startup ecosystem sees wide range of activity

Founded in 2021 by Aahan Bhojani and Ashmin Varma, Silkhaus brings a unique approach to the short-term rental space, aiming to transform it into a real estate asset class and an accommodation experience across emerging markets. (Reuters)
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Updated 20 January 2024
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Startup Wrap – Regional startup ecosystem sees wide range of activity

  • UAE property tech startup Silkhaus closes funding round aimed at fueling its expansion into Saudi market

CAIRO: The startup scene in the Middle East and North Africa experienced a flurry of activity this week, with various firms securing funding, engaging in cross-border acquisitions, and acquiring strategic licenses.

In funding news, Silkhaus, a property tech startup based in the UAE, closed a pre-Series A funding round aimed at fueling its expansion into the Saudi market.  

Although the exact figure was not disclosed, a press release confirmed that the company raised a multi-million-dollar investment from US-based Partners for Growth.




Established in 2017 by Mohamed Ezzat and Ahmed Gaber, Bosta provides delivery solutions, encompassing first, middle, and last-mile delivery. (Supplied)

Founded in 2021 by Aahan Bhojani and Ashmin Varma, Silkhaus seeks to bring a unique approach to the short-term rental space, aiming to transform it into a real estate asset class and an accommodation experience across emerging markets.

The company has set out significant plans to enter the Saudi market with the establishment of a local office and the appointment of Sabine El-Najjar as founding general manager last year.

“Our primary goal is to ensure properties operated as short-term rentals generate the highest possible returns in a rapidly expanding market while removing the obstacles associated with long-term leases,” El-Najjar told Arab News in November.

El-Najjar explained that the increasing interest in short-term rental models coupled with the Saudi Ministry of Tourism’s push towards private accommodation for travelers underpin the fast-growing sector.




Ahmad Al-Khowaiter, Aramco’s executive vice president of technology and innovation

“If you look at Saudi Arabia, there’s a constant influx of visitors throughout the year, whether for business, sport or the large number of leisure events being held here,” she added.     

Moreover, El-Najjar stated that Silkhaus is set to have a positive impact on other verticals in the hospitality sector like food and beverage, facility management, and personal services.

UAE’s travel tech startup Tumodo raises $35m pre-seed round

UAE-based travel tech platform Tumodo successfully raised $35 million in a pre-seed funding round co-led by MENA-focused angel investors.

Founded in 2023, Tumodo is an online business travel platform designed to streamline the process of booking business trips, offering an average saving of 35 percent on travel expenses for businesses.

By injecting an additional $4 billion in funding over the next four years, we intend to provide the financial backing required to take game-changing solutions to the next level.

Ahmad Al-Khowaiter, Aramco’s executive vice president of technology and innovation

The newly acquired funds are set to propel Tumodo’s growth in the UAE market, with a focus on investing in product development and exploring new partnership opportunities within the MENA region.

Tumodo has set plans to expand its platform to 25 additional countries by 2026, aiming to broaden its global footprint in the business travel sector.

Singapore venture fund Adaverse expands to Saudi Arabia with an investment in Takadao

Adaverse, a web3 and blockchain venture fund and ecosystem builder, has expanded its operations to Saudi Arabia, marking its entry with an investment in Takadao, a Shariah-compliant fintech that focuses on ethical and community-driven solutions.

Boasting over 60 investments across 13 countries, Adaverse is an initiative of Cardano, which ranks as the 8th largest cryptocurrency globally.  

With a substantial footprint in Asia, Africa, the US, and now the Middle East, Adaverse strengthens its presence through a new office in Riyadh.

The firm has committed to investing $10 million in leading web3 startups in 2024, further cementing its commitment to the region’s burgeoning tech landscape.

Egyptian logistics startup Bosta secures investment from Axian Group

Egyptian logistics startup Bosta has secured an undisclosed amount of investment from Axian Group.

Established in 2017 by Mohamed Ezzat and Ahmed Gaber, Bosta provides delivery solutions, encompassing first, middle, and last-mile delivery.




Our primary goal is to ensure properties operated as short-term rentals generate the highest possible returns in a rapidly expanding market, says Sabine El-Najjar, Founding GM of Silkhaus

This latest investment is expected to bolster Bosta’s growth and enhance its delivery and logistics services in the region.  

In 2022, Bosta expanded its operations to Saudi Arabia, following the completion of a pre-series B funding round.  

This round, which also remained undisclosed, was led by Khwarizmi Ventures and Hassan Allam Holding, along with other investors.

Qatar’s Droobi and India’s Smit.fit merge to create DroobiSmit

Qatar’s Droobi Health and India’s digital healthcare provider Smit.fit have merged to create DroobiSmit, with plans to relocate their headquarters to Singapore.  

Droobi Health, founded in 2017 by Abdulla Al-Misnad, specializes in assisting individuals with chronic conditions in adopting healthier lifestyles.  

Smit.fit, established in 2020 by Sujit Chakrabarty, offers an app-based solution for managing metabolic health conditions through diet and fitness training.

This strategic merger is poised to establish DroobiSmit as a leading digital healthcare provider for chronic health conditions in both the Middle East and South Asia regions.  

To date, DroobiSmit has secured approximately $5 million in investment, receiving support from several entities, including QSTP, QDB, Barzan Holding, Doha Tech Angels, and MVP.

Paymob receives license from Oman’s central bank

Paymob, a prominent financial services enabler operating in the Middle East, North Africa, and Pakistan, has been granted the Payment Service Provider license by the Central Bank of Oman.  

This PSP license empowers Paymob to facilitate both online and in-store payments in the country. The company will leverage its local integration with OmanNet, CBO’s secure payment infrastructure, to ensure efficient transaction processing.

This achievement marks a significant step for Paymob, as it now enables merchants in Oman to accept both local and international payments through Paymob’s gateway.  

Saudi Aramco allocates $4bn to its global venture capital program  

Saudi Arabia’s startup funding ecosystem is set to receive a boost after Aramco allocated $4 billion to its global venture capital arm.  

This financing more than doubles the capital previously allotted to Aramco Ventures, raising its total investment allocation from $3 billion to $7 billion.  

The move is set to elevate the energy giant’s overall venture capital commitment to $7.5 billion, which also encompasses the existing $500 million fund, Wa’ed Ventures, dedicated to nurturing the startup ecosystem within the Kingdom, according to a press note.  

“By injecting an additional $4 billion in funding over the next four years, we intend to provide the financial backing required to take game-changing solutions to the next level. This will provide crucial impetus to businesses at various stages of development around the world while also contributing to Aramco’s own long-term objectives,” Ahmad Al-Khowaiter, Aramco’s executive vice president of technology and innovation, said.  

The firm’s decision to bolster its venture capital program is part of the growing importance of fostering disruptive technologies, diversifying opportunities, and collaborating with innovative startups.  

This initiative aligns with Aramco’s long-term strategy, which emphasizes new energy solutions, chemicals, and transitional materials, as well as diversified industrial ventures, and digital technologies.

 


Saudi Arabia, France set to deepen industrial, mining ties

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Saudi Arabia, France set to deepen industrial, mining ties

JEDDAH: Mining, critical minerals, aerospace, and manufacturing took center stage as Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef concluded a three-day visit to France aimed at enhancing bilateral cooperation and securing strategic investments.  

Alkhorayef met with senior French officials and executives from leading companies such as Airbus, Safran, and Orano Mining to explore opportunities for collaboration, particularly in the areas of critical minerals, which are vital for clean energy, and advanced aerospace manufacturing, the Saudi Press Agency reported.   

The discussions also aimed to strengthen ties in the broader industrial and manufacturing sectors, central to the Kingdom’s push for technological localization.  

The visit, which began on May 5, underscores Saudi Arabia’s ongoing efforts to diversify its economy and align its industrial strategy with the ambitious goals of Vision 2030. 

In a statement posted on X, Alkhorayef said: “I concluded my official visit to the French Republic, during which I held constructive meetings with leaders in the public and private sectors, aimed at enhancing industrial and mining cooperation, and discussing opportunities for technology transfer and attracting qualitative investments to localize several strategic industries in the Kingdom, in order to achieve the goals of Vision 2030.”   

A key focus of the visit was on securing a stable supply of critical minerals, such as lithium and cobalt, essential for Saudi Arabia's green energy initiatives and the growing electric vehicle sector.  

Alkhorayef met with France’s Interministerial Delegate for Strategic Minerals and Metals Supplies, Benjamin Gallezot, to discuss ways of ensuring global supply chain resilience and promoting sustainability within the mining sector. 

“We also emphasized the importance of international partnerships in enhancing the sustainability of the global mining sector,” the minister added. 

The visit included a tour of Airbus Helicopters’ Marignane facility and meetings with Airbus CEO Guillaume Faury where Alkhorayef explored advanced aircraft manufacturing technologies. 

The minister also mentioned discussing mutual opportunities with the CEO “to exchange expertise and transfer knowledge and technology, which will enhance the localization of the aviation industry in the Kingdom.” 

Alkhorayef met with leaders from Orano Mining, Bel Group, Sidel, and Safran to explore joint investment opportunities across multiple industries, including food production, satellite technologies, and high-tech manufacturing.  

The focus was on leveraging Saudi Arabia’s favorable investment climate, which includes substantial capital support and long-term growth enablers, to attract foreign direct investment. 

Alkhorayef’s visit also included discussions with Airbus executives in Toulouse, where the minister noted the rapid growth of Saudi Arabia’s aviation sector. He stated that Saudi Arabia’s aviation sector is witnessing rapid growth with the expansion of national airline fleets and supporting infrastructure. The Kingdom’s National Aviation Strategy aims to increase passenger traffic to 330 million annually and air cargo to 2.5 million tonnes by 2030. 

As part of its industrial expansion, Saudi Arabia launched a SR10 billion ($2.67 billion) incentive program designed to attract investments in sectors including aerospace. The program offers up to 35 percent coverage for eligible capital expenditures, with a cap of SR50 million per project. 

The Kingdom also unveiled its first aviation-focused industrial hub, covering 1.2 million sq. meters and offering direct access to seaports, airports, and railways to support global collaboration. 

On the first day of his visit, Alkhorayef also participated in the “Industrial Day” event at Airbus Helicopters’ headquarters, where he emphasized the Kingdom’s strategy to localize technologies, enhance international partnerships, and leverage Saudi Arabia’s mineral resources to establish itself as a global industrial hub.  

The visit concluded with the signing of a memorandum of understanding between Sidel and Saudi Arabia’s National Industrial Development Center. The MoU aims to establish a regional service hub, training center, and human capital development initiative in Saudi Arabia, further advancing the Kingdom’s industrial goals. 


Saudi Arabia sees 13% rise in patent filing to reach 8,029 in 2024


Updated 08 May 2025
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Saudi Arabia sees 13% rise in patent filing to reach 8,029 in 2024


RIYADH: Saudi Arabia’s intellectual property landscape continued its robust growth in 2024, with patent filings rising by 13.33 percent year on year to reach a record 8,029, according to the Saudi Authority for Intellectual Property.

The authority’s annual statistical report highlighted significant expansion across all key IP categories, underscoring the Kingdom’s ongoing transformation into a knowledge-based economy.

Patent applications from individuals surged by 62 percent, while filings by foreign applicants rose 15 percent to 4,921. The increase reflects rising global interest in protecting innovations within the Kingdom.

Trademark registrations totaled 31,834 in 2024, marking a 15.72 percent increase, while design filings grew by 8.75 percent. Voluntary copyright registration also saw a notable 63.15 percent jump, indicating greater public engagement with IP rights.

SAIP issued 4,355 patent certificates, 1,578 design registrations, and 1,504 copyright certificates throughout the year.

The report also noted that 96 percent of granted patents originated from institutions, highlighting the active role of universities and research centers in the innovation ecosystem. Individual inventors filed 2,139 patent applications — up from 1,320 in 2023—showing growing grassroots participation.

In terms of technical fields, information technology and software accounted for 25.77 percent of total patent filings. Library and document management comprised 57.16 percent, and applied technical inventions followed at 12.46 percent.

Public understanding of intellectual property also improved, with SAIP reporting an 8 percent rise in the national IP awareness index. This was attributed to expanded electronic services, streamlined procedures, and national initiatives aimed at safeguarding innovators’ rights.

Internationally, Saudi Arabia’s efforts have not gone unnoticed. The Kingdom recorded a 17.5 percent improvement in its score on the 2025 Global Intellectual Property Index, placing it among the top-performing countries out of 55 economies evaluated.

Saudi Arabia also ranked 24th globally in artificial intelligence patent output, with 1,189 AI-related patents filed—further cementing its commitment to technological advancement and innovation-led growth.

The Kingdom’s achievements are the result of sweeping reforms to its IP framework, including enhanced legal protections and enforcement strategies that aim to foster a more competitive, innovation-driven economy.


Saudi Arabia sees 73% surge in e-commerce sales using MADA cards

Updated 08 May 2025
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Saudi Arabia sees 73% surge in e-commerce sales using MADA cards

RIYADH: Saudi e-commerce sales via MADA cards surged 73.4 percent year on year in March to a record SR27.55 billion ($7.34 billion), reflecting rapid growth in the Kingdom’s digital payment ecosystem. 

According to the Saudi Central Bank, also known as SAMA, online transactions using the national card network reached 147.6 million during the month, up 54.5 percent compared to March 2024.

The figures reflect transactions completed through websites, mobile apps, and e-wallets linked to MADA, and do not include those carried out using Visa, MasterCard, or other international networks.

MADA — the Kingdom’s domestic debit card network — underpins a growing portion of Saudi Arabia’s non-cash economy by enabling secure, contactless payments through NFC technology both online and at retail locations. This growth in digital commerce reflects rising consumer trust, expanding fintech ecosystems, and national investments in financial technology integration. 

In a step toward digital expansion, SAMA signed an agreement in April with Google to introduce Google Pay in Saudi Arabia using the MADA infrastructure. The integration, expected to launch later in the year, will allow users to add and manage their MADA-linked cards within Google Wallet, offering seamless and secure transactions across physical stores, mobile apps, and websites.

According to SAMA, this move is part of a broader push to establish a robust digital payments infrastructure and reduce the country’s dependence on cash transactions. 

The central bank’s efforts also include licensing new fintech players such as Barq, launching e-wallet platforms, and facilitating the operational launch of STC Bank, all aimed at bolstering financial inclusion and consumer convenience.  

Earlier this year, the eSAMA portal also entered trial phase, providing digital access to a range of central bank services. 

Alongside e-commerce growth, point-of-sale transactions using MADA also expanded, reaching SR65.67 billion in March — a 10.02 percent increase year on year. 

E-commerce sales using MADA cards were equivalent to 42 percent of POS transaction value in March, up from 27 percent a year earlier — underscoring the faster growth of online spending compared to in-store purchases.

POS transactions — which cover physical card usage at retail stores, restaurants, gas stations, and service outlets — do remain a critical pillar of everyday consumer spending. 

With Saudi Arabia aiming for over 70 percent of all transactions to be non-cash by 2025, the latest data signals that the Kingdom is fast approaching its digital transformation benchmarks — with MADA at the heart of this evolution. 


UAE M1 money supply rises 1.8% in February amid broad liquidity gains

Updated 08 May 2025
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UAE M1 money supply rises 1.8% in February amid broad liquidity gains

RIYADH: The UAE’s most liquid form of money supply, M1, climbed 1.8 percent in February to 982.9 billion dirhams ($267.6 billion), as both cash in circulation and demand deposits rose, official data showed.

According to the latest data from the Central Bank of the UAE, the monthly increase was driven by a 13.5 billion dirham gain in monetary deposits and a 4.1 billion dirham rise in currency outside banks.

M1 — comprising physical currency and current account balances — is a key measure of liquidity immediately available for household and business spending.

The pickup in M1 comes amid a broader expansion in liquidity across the UAE’s financial system, reflecting stable credit conditions and sustained economic activity. The UAE has been supported by robust non-oil growth, rising investment, and steady financial sector performance heading into 2025.

Broader money aggregates also advanced, with M2 — which includes savings and time deposits in addition to M1 — rising 1.8 percent to 2.36 trillion dirhams, supported by a 25 billion dirham increase in quasi-monetary deposits.

M3, which includes M2 and government deposits, grew 0.8 percent to 2.81 trillion dirhams. The rise was primarily driven by the M2 expansion, offsetting a 19 billion dirham decline in government deposits.

The UAE’s monetary base rose 3.1 percent to 816.6 billion dirhams. The increase was supported by an 11.4 percent rise in overnight deposits and current accounts held by banks and financial institutions at the central bank.

Monetary bills and Islamic certificates of deposit rose 6.2 percent, while currency issuance increased 3.4 percent. These gains outweighed a 6.1 percent drop in reserve account balances.

Banking sector indicators also showed positive momentum, with the country’s gross banking assets, including bankers’ acceptances, rising 1.6 percent to 4.63 trillion dirhams. Gross credit increased by 0.9 percent to 2.21 trillion dirhams, driven by a 17.1 billion dirham rise in foreign credit and a 1.7 billion dirham gain in domestic credit.

Within domestic credit, lending to the private sector rose 0.7 percent, and loans to non-banking financial institutions jumped 5.2 percent. These increases offset a 2 percent decline in credit to government-related entities and a 1.4 percent drop in lending to the government sector.

The country’s total bank deposits climbed by 1.2 percent, reaching 2.87 trillion dirhams at the end of February, up from 2.84 trillion dirhams in January.  

This growth was driven by a 0.8 percent rise in resident deposits and a 5.1 percent increase in non-resident deposits.  

The increase in resident deposits was attributed to higher deposits from government-related entities by 3.8 percent, private sector by 1.4 percent, and non-banking financial institutions by 5.6 percent, which outweighed a 4 percent decline in government sector deposits. 


GCC central banks hold interest rates steady for 3rd time following Fed’s move 

Updated 08 May 2025
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GCC central banks hold interest rates steady for 3rd time following Fed’s move 

RIYADH: Gulf Cooperation Council central banks have kept interest rates steady for the third consecutive period, mirroring the US Federal Reserve’s decision to hold its benchmark rate between 4.25 percent and 4.5 percent.

As most currencies in the region are pegged to the US dollar, monetary policy follows the decisions taken in Washington, with policymakers opting to lock the rate at the level it has been since December.  

The freeze comes amid global uncertainty caused by the ongoing trade war, a slowing of economic growth in the US, and unstable inflation trends, according to a statement by the Federal Reserve.

The country’s gross domestic product fell 0.3 percent in the first quarter as a result of slower consumer and government spending and a surge in imports ahead of the tariffs.

The newly released Fed statement said: “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”

This decision implies that the Saudi Central Bank, also known as SAMA, will maintain its repo rates at the current level of 5 percent.

The UAE central bank also announced that it has decided to maintain the base rate applicable to the Overnight Deposit Facility at 4.40 percent.

Qatar, Kuwait, and Oman, as well as Bahrain, also mirrored the Fed’s move. 

Repo rates, which represent a form of short-term borrowing primarily involving government securities, underscore the close economic ties and financial dynamics between the GCC countries and the global economic landscape, particularly the US.      

“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” the Federal Reserve’s statement said.

It added: “The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”

In April, Fitch Ratings said in a report that Gulf banks face minimal direct impact from new US tariffs but remain exposed to broader risks stemming from weaker oil prices and slowing global growth.

The agency noted at the time that most GCC exports to the US are hydrocarbons, which are exempt from the latest tariffs. Non-oil exports, such as aluminum and steel, which are subject to 10 percent or 25 percent duties, account for only a small share of the trade basket, limiting direct exposure for regional economies and their banking sectors.