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Saudi startup ecosystem accounts for 60% of regional funding in September

Egyptian micromobility startup Rabbit Mobility closed a $1.3 million investment round led by 500 Global and Untapped Global. (Supplied)
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Updated 20 October 2024
Nour El-Shaeri
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Saudi startup ecosystem accounts for 60% of regional funding in September

  • $282 million was raised across 63 startups in the region
  • The UAE ranked second with $73.8 million raised by 12 startups, while Egypt trailed, with 13 startups
Updated 20 October 2024
Nour El-Shaeri

CAIRO: Saudi Arabia’s startup ecosystem accounted for 60 percent of the Middle East and North Africa region’s funding in September, with $170.8 million raised across 23 deals.

According to Wamda’s monthly report, $282 million was raised across 63 startups in the region, a 234 percent increase month-on-month and a 607 percent rise year-on-year. Debt financing constituted 12 percent of the total raised.

Saudi mobility startup SHIFT led the month’s funding rounds by raising $82.8 million, followed by online car marketplace Syarah, which secured $60 million in a series C round, including $20 million in debt financing.

The UAE ranked second with $73.8 million raised by 12 startups, while Egypt trailed, with 13 startups collectively raising $25 million.

Fintech continued to dominate investor sentiment in the MENA region for the fourth consecutive month, attracting $102.5 million across 14 startups.

Mobility followed closely, driven by SHIFT’s substantial funding round. E-commerce and educational tech sectors showed strong activity, raising $63 million and $4.35 million, respectively, each with nine deals.

The software-as-a-service sector saw $10 million in investments across eight startups.

Accelerator programs had a notable impact on deal volume, with Flat6Labs’ demo days in Jordan and Saudi Arabia accounting for 17 deals valued at a combined $2 million.

Early-stage investments remained a priority for investors, who poured $102 million into 15 seed deals and $5 million into seven pre-seed startups. In contrast, only two later-stage rounds were reported, Paymob’s $22 million series B and Syarah’s series C.

Female-founded startups struggled to attract significant funding, raising only $583,000, mostly through grants.

In contrast, male-founded startups dominated the landscape, securing $260 million across 49 deals. Additionally, $21 million was raised by seven startups co-founded by both men and women.

AILA secures $1.15m for AI-powered edtech

Saudi edtech startup AILA closed a $1.15 million pre-seed round led by Sabah Hub, with participation from White Hill Capital and three other angel investors.

Established in 2023, AILA provides a generative artificial intelligence-powered platform for personalized and curriculum-aligned learning experiences.

The company plans to utilize the funds for regional expansion and technology enhancement.

Saudi Arabia’s Tawaref acquires Amaana.ai

Saudi-based investment community Tawaref acquired local AI company Amaana.ai for an undisclosed amount.

Founded in 2020 by Saeed Al-Ansari, Tawaref supports startups in the region with investments and entrepreneurial services, while Amaana.ai automates business entry processes into Saudi Arabia.

The acquisition aims to enhance Tawaref’s capabilities in providing innovative financial and technological solutions.

“The integration of Amaana.ai allows us to elevate our service offerings and reinforce our mission to support startups with advanced, AI-driven solutions. By blending our expertise, we’re providing smarter and more efficient solutions that will help our clients navigate the Saudi market with ease,” said Al-Ansari.

UMX raises $4.5m for global gaming growth

Saudi game studio UMX raised $4.5 million from Jetapult, an investment company backed by Accel Partners.

Founded in 2014, UMX specializes in developing mobile car games. The new capital will be used to expand UMX’s game portfolio and reach new audiences globally.

“This significant investment from Jetapult not only marks a milestone for UMX Studio but also heralds a new era for the Saudi Arabian gaming industry. We are thrilled to partner with a globally recognized leader in the gaming investment space,” said Ali Al-Harbi, founder of UMX.

JARAS Hospitality closes $666k pre-seed

JARAS Hospitality, a Saudi startup focused on integrated hospitality management solutions, secured $666,000 in a pre-seed round led by undisclosed angel investors.

The company, founded in 2023, plans to use the investment to further develop its product and expand its customer base.

“We are thrilled to have closed this investment round, which provides strong support for our vision to deliver innovative solutions that contribute to improving the hospitality sector. The investment will give us the opportunity to accelerate our growth and expand our market presence,” CEO Ahmed Al-Zubaidi said.

SVC invests $15m in Vision Ventures’ Saqr Fund II

Saudi Venture Capital committed $15 million to Vision Ventures’ Saqr Fund II, a $90 million-target venture capital fund that will focus on early-stage startups across Saudi Arabia and the broader MENA region.

Vision Ventures, founded in 2016, is a sector-agnostic firm investing in early-stage tech startups.

WellPal relocates to Saudi Arabia after new funding

Egyptian health e-commerce platform WellPal relocated its operations to Saudi Arabia following an undisclosed investment from an angel investor.

Founded in 2019 by Mohamed Ali and Mohamed Tantawy, WellPal, a Flat6Labs portfolio company, offers health products for fitness and wellness through its app.

The company aims to strengthen its position in the Saudi market and expand regionally.

“We are proud to support the Saudi Vision 2030, particularly in enhancing the quality of life for its citizens. Through WellPal’s AI-powered features, we look forward to providing tailored health and lifestyle products that can help our customers make smarter and healthier choices,” Ali, the firm’s CEO, said.

Rabbit Mobility raises $1.3m to fuel North African expansion

Egyptian micromobility startup Rabbit Mobility closed a $1.3 million investment round led by 500 Global and Untapped Global.

The funds will support the company’s growth and expansion across Egypt and other North African markets.

Rabbit Mobility was founded in 2020 by Kamal El-Soueni, Mohamed Mansoury and Bassem Magued and provides a fleet of electric scooters for urban mobility.

Morocco’s Agenz secures funding from Renew Capital

Morocco-based property tech startup Agenz received an undisclosed investment from Renew Capital.

Founded in 2020 Malik Belkeziz, Agenz offers instant property valuations using advanced data intelligence.

“Our platform helps people make smarter decisions by providing accurate data on property values and market trends,” said Belkeziz.

The funds will help the company expand its reach in Morocco and other African markets.

Moonbase Capital launches $15m investment fund

Spain-based Moonbase Capital launched its second investment vehicle, a $15 million fund aimed at acquiring and growing small to medium-sized enterprises worldwide.

The fund will target emerging markets, including Latin America, Southeast Asia, and the Middle East, with a focus on investing in 15 SMEs over the next three to four years.

The first close is expected in the first quarter of next year, with capital sourced from family offices and high-net-worth individuals in Europe, Egypt, and the Gulf Cooperation Council.

Abhi raises $15m debt financing round

UAE-based fintech Abhi has raised $15 million in debt financing in a round led by Shorooq Partners and Amplify Growth Partnership.

Established in Pakistan in 2021 by Ali Ladhubhai and Omair Ansari, Abhi focuses on improving financial inclusion for employees and SMEs across the MENA and Pakistan region.

The new funding will support Abhi’s expansion efforts, enabling it to scale its operations and broaden access to earned wage access services for both blue- and white-collar workers in the region.

Topics: Startup of the Week saud funding

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Saudi Arabia’s Hail region signs $2.27bn in investment deals 

Updated 16 sec ago
MOHAMMED AL-KINANI
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Saudi Arabia’s Hail region signs $2.27bn in investment deals 

Updated 16 sec ago
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s Hail region signed investment agreements worth SR8.5 billion ($2.27 billion) during its flagship investment forum, as the Kingdom intensifies efforts to unlock regional growth and attract private sector capital. 

The deals, signed across key sectors including agriculture, mining, tourism, and logistics, are part of a broader package of more than SR50 billion in identified investment opportunities unveiled at the Hail Investment Forum, the Saudi Press Agency reported. 

Saudi Arabia has been focusing on the untapped potential of smaller towns and regional municipalities, attracting investors and entrepreneurs. This shift from traditional urban centers marks a new era of diversification as the country pursues a more resilient and inclusive economy, reflecting the evolving priorities of Saudi Vision 2030. 

“The emir of Hail region witnessed the launch of a package of agreements, initiatives and projects amounting to SR8.5 billion, in qualitative partnerships between government agencies and investment entities to enhance the region’s growth and stimulate its economic environment,” the SPA report stated. 

Inaugurating the forum, Prince Abdulaziz bin Saad bin Abdulaziz, governor of Hail region, spoke about the unwavering support the region receives from the wise leadership.  

In his speech, Prince Abdulaziz emphasized that the Hail region holds competitive and strategic advantages that make it an attractive environment for investment across various sectors, marking the beginning of a new phase of investment and sustainable development throughout the region and its governorates. 

The forum, held under the theme “Be Part of the Promising Future,” was organized by the Hail Chamber in partnership with the regional governorate. It attracted senior officials including Minister of Investment Khalid Al-Falih and Deputy Minister of Environment, Water and Agriculture Mansour Al-Mushaiti. 

A total of 125 investment opportunities, including 14 strategic projects worth more than SR34.2 billion, were presented in support of the local business sector. 

Hani Al-Khalifa, chairman of the Hail Chamber, said the forum promotes the region’s economic competitiveness and investment landscape. 

Hassan Al-Huwaizi, chairman of the Federation of Saudi Chambers, called the event a vital platform for presenting high-quality investment opportunities, adding that Hail’s appeal has grown due to government facilitation. 

In his remarks, Al-Mushaiti described Hail as a unique destination for agricultural investment due to its rich natural resources. He noted the Agricultural Development Fund has disbursed over SR7 billion in the region, helping raise Hail’s share of the Kingdom’s agricultural gross domestic product to more than 10 percent. 

The region also launched the Middle East’s first and largest trout salmon production project, expected to cut imports by 50 percent and generate SR5 billion in sales over the next decade, he said. 

A new red meat investment is set to boost self-sufficiency, which reached 61 percent by end-2024. Hail is also home to one of the largest poultry production projects, now valued at more than SR11 billion following a recent SR4.5 billion expansion.

Al-Mushaiti highlighted the SR800 million in support provided by the Saudi Reef program in Hail, helping smallholder farmers through local agricultural projects worth over SR40 million. He added that 14 water and environmental projects worth SR1.2 billion, along with seven vegetation projects worth SR116 million, are underway under the Saudi Green Initiative. 

Al-Falih, speaking at the event, reiterated government support for investors and pointed to Hail’s strategic advantages such as its location that connects five other regions, fertile land, diverse terrain, and developing infrastructure. 

He added that foreign direct investment in the region has reached SR1.44 billion, with 177 investment licenses issued to international companies across sectors such as construction, manufacturing, tourism, food, and retail. 

More than 100 investment opportunities worth SR50 billion were showcased and listed on the “Invest Saudi” platform, spanning agriculture, tourism, manufacturing, sports and more. 

A memorandum of understanding was signed between the Ministry of Investment and the Hail Region Development Authority to facilitate strategic investments and promote sustainable growth in the region. 

The forum also featured nine panel sessions covering 42 investment themes, focusing on tourism, quality of life, agriculture, logistics, energy, and education. 

Topics: Investment

Omani banking sector credit surges 7.4% in February

Updated 18 May 2025
Reem Walid
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Omani banking sector credit surges 7.4% in February

  • Credit extended to the private sector rose by 6.1% annually to 27.3 billion rials
  • Total deposits in the Omani banking sector registered a 6.4% year-on-year growth to reach 32 billion rials
Updated 18 May 2025
Reem Walid

RIYADH: The total credit extended by Oman’s banking sector surged by 7.4 percent year on year to reach 32.9 billion Omani rials ($85.46 billion) by the end of February, new figures showed. 

Released by the Central Bank of Oman, the data indicated that credit extended to the private sector rose by 6.1 percent annually to 27.3 billion rials during the same period. 

This aligns with Oman’s projected economic growth of 3.4 percent in 2025, outpacing many global peers, according to Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al-Yousef, who spoke at the International Investment Forum in Muscat in April. 

The February report said: “Non-financial corporations received the highest share of the total private sector credit at approximately 46.3 percent at end-February 2025, followed by the household sector at 44.3 percent.” 

Oman achieved a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024, driven by prudent fiscal policies, high oil prices, and nonhydrocarbon export growth. Shutterstock

It added: “The share of financial corporations was 5.5 percent while other sectors received the remaining 3.8 percent of total private sector credit as at the end of February 2025.” 

The analysis further revealed that total deposits in the Omani banking sector registered a 6.4 percent year-on-year growth to reach 32 billion rials at the end of February. It added that total private sector deposits increased 8.2 percent to 21 billion rials. 

“In terms of sector-wise composition of private sector deposits, the biggest contribution is from household deposits at 50.3 percent, followed by non-financial corporations at 30.4 percent, financial corporations at 16.9 percent and other sectors at 2.4 percent,” the report concluded in that regard.

In January, the 2024 Article IV consultation issued by the International Monetary Fund disclosed that Oman achieved a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024, driven by prudent fiscal policies, high oil prices, and nonhydrocarbon export growth. At the time, the IMF attributed these figures to effective economic management. 

Despite higher social spending under a new protection law, the nonhydrocarbon primary deficit as a share of nonhydrocarbon gross domestic product remained stable, highlighting the government’s commitment to financial discipline, the IMF release explained at the time. 

Government debt as a percentage of gross domestic product also declined further, reaching 35 percent in 2024, marking continued improvement in Oman’s economic fundamentals. 

The findings reflect the broader resilience across the Gulf Cooperation Council region, as highlighted in a December IMF report, which noted that GCC economies have successfully navigated recent shocks, thanks to robust non-hydrocarbon growth and continued reform efforts.

Topics: Oman banking

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Saudi Arabia’s US Treasury holdings rise to $131.6bn in March

Updated 18 May 2025
MIGUEL HADCHITY 
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Saudi Arabia’s US Treasury holdings rise to $131.6bn in March

  • Kingdom maintained 17th place among the largest holders of such financial instruments in March
  • Saudi Arabia and UAE are the only GCC countries among the top 20 holders of US Treasury securities
Updated 18 May 2025
MIGUEL HADCHITY 

RIYADH: Saudi Arabia’s holdings of US Treasury securities stood at $131.6 billion in March, reflecting an increase of $5.2 billion from February, according to the latest data.

The analysis, released by the US Treasury, represents a month-on-month increase of 4.11 percent following a marginal decrease of 0.39 percent from January to February.

The change reflects market fluctuations or potential portfolio rebalancing as the Kingdom navigates global economic conditions. Saudi Arabia’s accumulation of US Treasuries is part of its broader strategy to manage foreign reserves and diversify low-risk assets.

The data revealed that the Kingdom maintained 17th place among the largest holders of such financial instruments in March.

The study also shows that Saudi Arabia and the UAE are the only Gulf Cooperation Council countries among the top 20 holders of US Treasury securities.

In March, the Kingdom’s holdings of US Treasuries included long-term bonds worth $103.8 billion, representing 78.8 percent of the total, and short-term bonds amounting to $23.2 billion, accounting for 17.6 percent.

In its latest release, the US Department of the Treasury stated: “The sum total in March of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a net TIC (Treasury International Capital) inflow of $254.3 billion.”

Of this, net foreign private inflows accounted for $259.2 billion, and net foreign official outflows reached $4.9 billion.

According to a press release, foreign residents increased their holdings of long-term US securities to $183.2 billion in March, with private investors purchasing $146.0 billion while foreign official institutions recorded net sales of $37.3 billion. US residents also raised their holdings of long-term foreign securities with net purchases of $21.5 billion.

Meanwhile, foreign residents also boosted their US Treasury bill holdings in March. “Foreign resident holdings of all dollar-denominated short-term US securities and other custody liabilities increased by $98.6 billion,” the release added.

Conversely, banks’ net dollar-denominated liabilities to foreign residents dropped by $6.1 billion.

The report said Japan was the largest investor in US treasury bonds in March, with holdings totaling $1.13 trillion, followed by the UK and China, with portfolios valued at $779.3 billion and $765.4 billion, respectively.

The Cayman Islands and Canada were ranked fourth and fifth on the list, with treasury holdings amounting to $455.3 billion and $426.2 billion, respectively. 

Topics: US Treasury Foreign reserves bonds

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Saudi Arabia tops MENA digital economy rankings with $132bn market

Updated 18 May 2025
Nour El-Shaeri
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Saudi Arabia tops MENA digital economy rankings with $132bn market

  • Kingdom has invested over SR55 billion in AI technologies and data center infrastructure
  • Figures released on occasion of World Telecommunication and Information Society Day
Updated 18 May 2025
Nour El-Shaeri

RIYADH: Saudi Arabia has emerged as the Middle East and North Africa’s largest digital economy, with a market value exceeding SR495 billion ($131.9 billion) in 2024, equivalent to 15 percent of the national gross domestic product.

The figures were shared by the Ministry of Communications and Information Technology on the occasion of World Telecommunication and Information Society Day, as reported by the Saudi Press Agency.

This comes as Saudi Arabia continues to strengthen its role as a regional and global digital powerhouse, underpinned by significant advancements in artificial intelligence, data centers, e-government, and human capital development.

“The communications and information technology market recorded record growth exceeding SR180 billion in 2024, driven by expanding private sector investments and increasing innovation, which strengthened the Kingdom’s position as the largest technology market in the Middle East,” the SPA report stated.

Saudi Arabia marks World Telecommunication and Information Society Day. X/@Mobily

The country has invested over SR55 billion in AI technologies and data center infrastructure, contributing to a 42 percent increase in national data center capacity in 2024, reaching 290.5 megawatts.

The Kingdom’s efforts are exemplified by the launch of Humain, a state-backed AI company, which underscores this commitment.

Humain aims to build AI technologies and infrastructure, including large data centers and Arabic-language AI models, positioning Saudi Arabia as a global AI hub.

The Kingdom has actively sought partnerships with leading global tech companies. Notably, Nvidia is set to supply 18,000 of its advanced AI chips to Saudi Arabia as part of a strategic partnership with Humain.

Fiber-optic coverage now extends to over 3.9 million homes, while internet penetration has reached 99 percent, placing Saudi Arabia among the most connected nations globally.

Saudi Arabia marks World Telecommunication and Information Society Day. X/@Mobily

This infrastructure expansion supports high-efficiency digital services and reflects the Kingdom’s readiness to support cloud computing and smart applications.

Human capital development remains a cornerstone of the digital transformation strategy.

Saudi Arabia hosts the largest concentration of digital talent in the Middle East, with over 381,000 specialized jobs in the technology sector.

Women’s participation in the sector has increased from 7 percent in 2018 to 35 percent in 2024, the highest in the region and surpassing averages in both the G20 and the European Union.

In the area of digital governance, the Kingdom has achieved top-tier global rankings. It ranked fourth globally in the UN’s Online Services Index, sixth in the E-Government Development Index, and second among G20 nations.

Regionally, it holds the number one position in digital government services. Additionally, the Kingdom secured first place worldwide in digital skills and open digital government, and seventh in e-participation.

Topics: Saudi Digital

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Saudi air passenger traffic up 15% to over 128m in 2024

Updated 18 May 2025
Nadin Hassan
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Saudi air passenger traffic up 15% to over 128m in 2024

  • International passenger traffic reached 69 million, an increase of 14% compared to 2023
  • Domestic passenger traffic rose by 16%, totaling 59 million passengers.
Updated 18 May 2025
Nadin Hassan

RIYADH: Saudi Arabia’s air travel sector experienced a 15 percent growth in passenger traffic in 2024, with more than 128 million passengers traveling through the Kingdom’s airports, a report revealed.

According to the General Authority for Statistics’ Air Transport Statistics Publication 2024, international passenger traffic reached 69 million, an increase of 14 percent compared to 2023. Domestic passenger traffic also rose by 16 percent, totaling 59 million passengers.

Jeddah’s King Abdulaziz International Airport led with 49 million passengers, registering a 14 percent increase from the previous year.

King Khalid International Airport in Riyadh followed with 37.6 million passengers, an 18 percent increase, while Dammam’s King Fahd International Airport handled 12.8 million passengers, up 15 percent.

The average daily number of passengers at Saudi airports stood at approximately 189,000 for international flights and 162,000 for domestic routes.

Flight volumes also saw notable growth. The number of domestic flights reached 474,000 in 2024, up 12 percent, while international flights rose by 10 percent to 431,000.

Jeddah recorded the most flight operations with nearly 290,000, followed by Riyadh with 274,000 and Dammam airport with 105,000.

Saudi airlines operated 412,000 domestic and 152,000 international flights. Foreign airlines accounted for 1,584 domestic and 266,000 international routes, while general aviation contributed 60,000 domestic and 13,000 international flights.

Cargo traffic increased as well, with total air freight volumes reaching 1.2 million tonnes, a 34 percent growth from 2023.

Inbound cargo comprised 720,000 tonnes, outbound 64,000 tonnes, and transit cargo 407,000 tonnes. The highest monthly cargo volume was recorded in March at 123,000 tonnes.

The total aircraft fleet in Saudi Arabia grew to 361 in 2024, marking an 11 percent rise. The commercial fleet accounted for 258 aircraft, up 12 percent, with the largest segment comprising aircraft with over 250 seats. The general aviation fleet reached 103 aircraft, a 7 percent increase.

In terms of passenger handling ability, the total across Saudi airports reached 126 million in 2024. King Abdulaziz International Airport led with a designed capacity of 50 million passengers, an 11 percent year-on-year increase, operating at 98 percent of that limit.

King Khalid International Airport followed with 39 million, a 5 percent increase, and a 96 percent utilization rate.

The report also indicated improvements in air connectivity. King Abdulaziz International Airport offered the highest number of international routes at 369, followed by Prince Mohammed bin Abdulaziz International Airport in Madinah with 272, King Khalid International Airport with 165, and King Fahd International Airport with 85.

Compared to 2023, these figures reflect increases of 1 percent, 5 percent, and respective declines of 6 and 8 percent.

Overall, the air transport sector’s continued expansion aligns with the Kingdom’s Vision 2030 goals of enhancing connectivity, supporting tourism growth, and diversifying the national economy.

Topics: aviation General Authority for Statistics

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