Startups flourish from Morocco to Saudi Arabia

Founded in 2023 by Thabet Al-Subaie, LYNK connects financial institutions, commodity markets, and beneficiaries through its Shariah-compliant services. (Supplied)
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Updated 18 November 2023
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Startups flourish from Morocco to Saudi Arabia

  • KSA’s fintech sector make significant stride with LYNK investment round

CAIRO: Startups across the Middle East and North Africa region managed to raise significant funding rounds, hailing a rebound in the venture capital space.

Saudi Arabia’s fintech sector marked a significant stride with LYNK successfully securing an investment round.  

This financial boost came from notable backers Al Fozan Holding and Ramla Holding Group, although the investment amount remains undisclosed.  

Founded in 2023 by Thabet Al-Subaie, LYNK connects financial institutions, commodity markets, and beneficiaries through its Shariah-compliant services.

This latest infusion of funds is set to catalyze the company’s growth, facilitating the introduction of new financial products and expanding its footprint both locally and globally. “LYNK is considered a leading company in the fintech industry. LYNK is dedicated to expanding its scope of work and strengthening its position among prominent financial institutions by establishing strategic partnerships aimed at meeting the aspirations of customers and fulfilling market needs,” Al-Subaie said.

Since its launch by BIM Ventures’ Saudi Venture Studio, LYNK has demonstrated remarkable performance in automating financial transactions. The platform has efficiently processed over SR100 million ($26 million) in Murabaha transactions.

The company claims to handle up to 15,000 transactions daily, each executed in less than a minute, and collectively valued at over SR5 billion.

Saudi BNPL Tamara raises $250m in debt financing

Saudi Arabia’s buy now, pay later giant Tamara managed to secure an additional $250 million in debt financing, bringing its total facility to $400 million.

The investment consists of an up to $200 million senior debt contribution from Goldman Sachs, complemented by a $50 million tranche by Shorooq Partners.

Co-founded in 2020 by Abdulmajeed Al-Sukhan, Turki bin Zarah, and Abdulmohsen Al-Babtain, Tamara’s offers its consumers the opportunity to purchase products in installments.  

Last March, the company successfully raised a $150 million debt financing round, also from Goldman Sachs. This consistent backing from prominent financial institutions underscores Tamara’s growing influence in the fintech sector. 




Co-founded in 2020 by Abdulmajeed Al-Sukhan, Turki bin Zarah, and Abdulmohsen Al-Babtain, Tamara’s offers its consumers the opportunity to purchase products in installments. (Supplied)

“We are pleased to announce this significant debt financing, a testament to our excellent operational performance to date and our future growth outlook,” Stefan Marciniak, Tamara’s chief financial officer, said.

“In a challenging economic climate, we are grateful to Goldman Sachs and Shorooq Partners for their support. These funds will catapult us forward, enabling us to further develop our flagship BNPL product and invest in new, innovative products and services, which will further strengthen our position as a leader in the industry,” Marciniak added.

The strategic utilization of this new financing is set to catalyze Tamara’s expansion. With its capital, the company is poised to invest in developing new products and services, further cementing its position in the competitive BNPL market.  

Saudi Arabia’s VMS invests in Egypt’s Akhdar

Egyptian educational technology company Akhdar has successfully completed a six-figure funding round, led by Saudi Arabia’s venture studio, Value Maker Studio. This strategic investment is aimed at bolstering Akhdar’s expansion efforts into the Saudi market.  

Established in 2016 by Mohamed Osama and Shady Ahmed, Akhdar has carved a niche in the education technology space by providing a wide array of Arabic-language educational materials.

Their offerings encompass over 2,500 pieces of content, including audio and written books, comprehensive book reviews, and engaging podcasts.  

This diverse range of educational resources caters to a vast audience, with the app being utilized by 1.5 million users across 174 countries globally.  

The recent funding underscores the growing interest in edtech solutions and reflects the confidence of investors in Akhdar’s potential for growth and impact.  

“This strategic partnership will greatly support our expansion plans into the Gulf Cooperation Council region, with a particular emphasis on Saudi Arabia. Additionally, it will enable us to fuel our growth and further enhance our technology to effectively address the challenges faced by today’s learners,” Osama said.

This investment acts as a stepping stone for Akhdar to strengthen its presence in the Middle East, starting with Saudi Arabia.

Saudi cybersecurity startup COGNNA raises $2.25m

Saudi Arabian cybersecurity startup COGNNA has successfully secured $2.25 million in a seed funding round led by IMPACT46 and saw contributions from Vision Ventures, Faith Capital, along with other investors.  

Established in 2022 by Ibrahim Al-Shamrani and Ziyad Al-Shehri, COGNNA specializes in leveraging artificial intelligence and sophisticated data analysis to identify and neutralize threats in customers’ systems and networks.  

Notably, COGNNA was part of the first-ever Cybersecurity Accelerator Program initiated by the Saudi National Cybersecurity Authority in August 2022, underlining its commitment to advancing cybersecurity solutions.

UAE’s fintech startup Mafhoom Technologies raises $1.36m  

Mafhoom Technologies, a UAE-based fintech startup, has successfully raised $1.36 million in a pre-seed funding round by Al-Wafra Al-Thanya for Investments, complemented by contributions from various angel investors.  

Established in 2022 by founders Ahmad Khatib and Ziad Melhem, Mafhoom is designed to empower users to manage their finances more effectively.  

It offers tools to optimize spending, reduce bills, clear debt, and enhance financial literacy, while also helping users to meet their saving and investment goals. 

This strategic partnership will greatly support our expansion plans into the Gulf Cooperation Council region, with a particular emphasis on Saudi Arabia.

Mohamed Osama Akhdar, cofounder and CEO

“Mafhoom Technologies is at the forefront of financial innovation, and we are delighted to have the support of esteemed investors who share our vision for a financially empowered future,” said Khatib.    

This fresh injection of capital will enable Mafhoom to expand its team and facilitate its growth plans in Saudi Arabia.

Morocco’s CloudFret raises $2.1m

CloudFret, a Morocco-based logistics startup, has successfully raised $2.1 million in a funding round jointly led by AfriMobility and Azur Innovation Fund.  

Launched in 2021 by Driss Jabar, CloudFret leverages an AI algorithm-based platform to facilitate connections between shippers and carriers across Mediterranean shores.  

With this new capital, CloudFret aims to significantly expand its operations. The company has set ambitious targets to double its workforce by the end of 2024, a move that is poised to enhance its service offerings and broaden its network of shippers and partner carriers.  

UAE’s logistics startup Wize raises $16m

Wize, a UAE-based logistics startup, has successfully secured $16 million in a pre-seed funding round predominantly backed by angel investors.  

Established in 2022 by Alexander Lemzakov, Wize is carving a niche in the logistics sector with its eco-friendly last-mile transportation solutions.

The company operates on two primary fronts, firstly, as a marketplace for electric motorcycles, and secondly, as a subscription platform that enables businesses to efficiently manage their own fleets.  

In a bid to support sustainable transportation, Wize offers a unique battery-as-a-service model, along with swapping stations.  

Additionally, it has developed the Battery Swap App, designed to aid drivers in locating and reserving batteries, while also keeping them updated on charge levels.

With the injection of this new capital, Wize is set to accelerate its product development initiatives.  

The funding will also facilitate the company’s expansion within the UAE, and enable it to explore and establish new partnership opportunities across the broader MENA region.


Egypt’s exports to Arab counties surges 8.7% in 2023, Saudi Arabia tops list

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Egypt’s exports to Arab counties surges 8.7% in 2023, Saudi Arabia tops list

RIYADH: The value of Egyptian exports to Arab countries surged 8.7 percent year on year to reach $13.6 billion in 2023, according to new data. 

A statement from Egypt’s Central Agency for Public Mobilization and Statistics revealed that Saudi Arabia topped the list of the highest Arab countries importing from nation during the year, with the value of the African country’s exports amounting to $2.7 billion in 2023. 

This falls in line with the significant growth in trade relations, partnerships, joint projects, and development investment between the two countries in recent years.

The statement revealed that the Kingdom was followed by the UAE, with Egyptian exports reaching $2.2 billion, followed by Libya with about $1.8 billion, Sudan with an estimated $984.4 million, and Algeria at $850.3 million.

Regarding the top commodity groups exported to Arab countries during 2023, the agency indicated that vegetables and fruits were exported with a value of $1.3 billion, followed by machinery and electrical appliances with a worth of $1.1 billion. 

Furthermore, Egypt’s exports of pearls, precious stones and jewelry to the Arab countries came next, amounting to $1 billion, while exports of fuel, mineral oils and distillation products stood at $753 million. 

Meanwhile, the country’s exports of plastics and manufactures totaled $712 million.


Saudi Arabia’s holdings in US treasuries rise to $135.9bn

Updated 15 min 57 sec ago
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Saudi Arabia’s holdings in US treasuries rise to $135.9bn

RIYADH: Saudi Arabia’s holdings in US treasuries increased for the eighth consecutive month in March, reaching $135.9 billion, a rise of 3.66 percent compared to the previous month. 

According to official data released by Washington, the Kingdom was ranked 17th among the largest investors in such financial instruments in March. 

The report noted that Saudi Arabia’s holdings of US Treasuries were distributed among long-term bonds worth $107.3 billion, representing 79 percent of the total.

On the other hand, the Kingdom’s short-term bonds were worth $28.6 billion in March, accounting for 21 percent of the total value.

In February, the Kingdom’s holdings in US treasuries stood at $131.1 billion, compared to $133.5 billion in January and $132 billion in and December,

The data suggested that Japan was the largest investor in US treasury bonds in March, with holdings totaling $1.18 trillion, representing a rise of 1.16 percent from February. 

China and the UK followed, with portfolios valued at $767.4 billion and $728.1 billion, respectively. 

Luxembourg and Canada were ranked in the fourth and fifth spots, with treasury holdings amounting to $399.3 billion and $359.1 billion, respectively. 

Ireland secured the sixth rank in the list with holdings of $317.8 billion, closely followed by Belgium with portfolios worth $317.1 billion. 

The Cayman Islands came in the eighth position with treasury reserves worth $302.9 billion, followed by France and Switzerland, with assets amounting to $283.1 billion and $262.9 billion, respectively.

Taiwan was ranked eleventh on the list, with treasury holdings worth $259 billion. 

India came in the twelfth spot with assets amounting to $240.6 billion, followed by Brazil and Singapore, which had holdings worth $227.1 billion and $208 billion, respectively. 

Earlier this month, a report released by the Saudi Central Bank, also known as SAMA, revealed that international reserve assets declined by 2 percent in April to SR1.66 trillion ($440 billion) compared to the previous month. 

However, the Kingdom’s foreign reserve assets jumped 3 percent in April compared to the same period of the previous year. 


Fintech firm Hala gets SAMA approval to offer debt-based crowdfunding solutions

Updated 33 min 10 sec ago
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Fintech firm Hala gets SAMA approval to offer debt-based crowdfunding solutions

RIYADH: Saudi businesses are set to gain access to new crowdfunding solutions as Hala Payments Co. has received licensing approval from the Kingdom’s central bank to offer debt-based products. 

The Saudi-based fintech platform offers inbound and outbound payment options to small and medium enterprises, with over 50,000 merchants currently using its services, according to its website. 

With this approval, the total number of companies licensed to engage in this activity in the Kingdom has reached 11, while authorized finance companies now stands at 62, stated the Saudi Central Bank in a press release. 

Debt-based crowdfunding provides a pathway for projects or businesses in need of funding. Instead of relying on a single lender, borrowers secure loans from multiple investors. 

This model is particularly advantageous for small businesses or individuals who may face challenges obtaining loans from traditional banks. Essentially, it serves as a dual opportunity: borrowers receive the necessary funding, while investors earn returns by directly lending money. 

In January, SAMA issued a license to Thara, a debt crowdfunding platform, to operate in the Kingdom. The fintech firm specializes in financing real estate development projects, connecting individual and institutional investors with investment opportunities through Murabaha products. 

This decision to issue licenses falls within the framework of the central bank’s efforts to support and empower the finance sector, aimed at enhancing the effectiveness and flexibility of transactions, added SAMA. 

It also seeks to foster innovation and promote it, with the objective of enhancing the level of financial inclusion in the Kingdom and extending such services to all segments of society. 

SAMA emphasized the importance of dealing with licensed or authorized financial institutions, which can be verified by visiting its official website. 

The central bank warned that it may take any necessary actions, such as conducting on-site visits, meeting with the company’s executives, and reviewing its regulations, procedures, and records, to verify that the debt-based crowdfunding company has met all its requirements. 

It added that the license can be canceled if the firm requests cancellation, provides false information, violates rules or laws, delays starting activities for six months, or suspends operations for over three months without SAMA’s approval. 


Mawani issues new licenses to strengthen ports sector in Saudi Arabia

Updated 49 min 17 sec ago
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Mawani issues new licenses to strengthen ports sector in Saudi Arabia

RIYADH: The Kingdom’s seaport activities and logistics sector are set to improve, with the Saudi Ports Authority issuing new licenses in multiple areas of operation. 

In a press statement, the authority, also known as Mawani, said that issuing these permits aligns with its goal of developing port business in the Kingdom with high efficiency and quality. 

Mawani revealed that permits have been issued in various areas of operations, including pilotage, maritime support, marine traffic signals, and ship repair and routine maintenance. 

The statement added that licenses were also issued for container handling and port storage services, and maritime consultancy activities. 

The issuance of these new permits is part of Mawani’s broader strategy to position Saudi Arabia as a global logistics hub by the end of this decade. 

Saudi Arabia’s National Transport and Logistics Strategy seeks to increase the sector’s contribution to the Kingdom’s gross domestic product to 10 percent from the current 6 percent by 2030.

In the statement, Mawani further revealed that additional licenses were given to activities like bunkering ships in terminals, waste recycling and ship waste management, as well as, hydrographic surveying, and port work training. 

In January, the authority announced that it established new ship anchorage areas in the Kingdom’s King Fahd Industrial Port in Yanbu. 

According to a statement, newly established docking zones will help modernize several port logistical services, including delivering ships with supplies and fuels, said Mawani in a statement. 

The body also noted that these new anchorage zones will increase the terminal’s operational performance indicators and reduce ship docking times. 

In December 2023, Mawani garnered 79.01 points in the UN Conference on Trade and Development’s Liner Shipping Connectivity Index for the fourth quarter of 2023, compared to 77.66 points issued in the previous three months. 

Moreover, Saudi Arabia also progressed in container handling, moving from 24th to 16th in the Lloyd’s List One Hundred Ports rankings.

Similarly, the Kingdom climbed 17 places in the World Bank’s Logistics Performance Index, securing the 38th position out of 160 countries.


Oil Updates – prices rise on slower US inflation, strong demand

Updated 16 May 2024
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Oil Updates – prices rise on slower US inflation, strong demand

SINGAPORE: Oil prices extended gains from the previous session on Thursday on signs of stronger demand in the US, where data showed slower inflation than markets expected, bolstering the argument for an interest rate cut that could drive greater consumption, according to Reuters.

Brent futures rose 32 cents, or 0.4 percent, to $83.07 a barrel at 9:20 a.m. Saudi time, while US West Texas Intermediate crude gained 31 cents, or 0.4 percent, to $78.94.

“A more tamed read for US April inflation and a far weaker-than-expected read in US retail sales seem to offer room for the Fed to consider earlier rate cuts, with market expectations leaning more firmly for policy easing to kickstart in September this year,” said IG market strategist Yeap Jun Rong.

“The larger-than-expected drawdown in US crude inventories for last week also offered some calm, while geopolitical tensions continue to rock on in the Middle East.”

US consumer prices rose less than expected in April in a boost to financial market expectations for a September rate cut by the Federal Reserve, which could temper dollar strength and make oil more affordable for holders of other currencies.

Elsewhere, US crude oil, gasoline and distillate inventories fell, reflecting a rise in both refining activity and fuel demand, showed data from the Energy Information Administration.

Crude inventories fell 2.5 million barrels to 457 million barrels in the week ended May 10, the EIA said, versus the 543,000 barrel consensus analyst forecast in a Reuters poll.

Signs of slowing inflation and stronger demand were supporting prices, ANZ Research also said in a client note, as is geopolitical risk, which it noted remains elevated.

In the Middle East, Israeli troops battled Hamas militants across Gaza, including Rafah, which had been a civilian refuge.

Ceasefire talks mediated by Qatar and Egypt are at a stalemate, with Hamas demanding an end to attacks and Israel refusing until the group is annihilated.

Gains were constrained after the IEA trimmed its forecast for 2024 oil demand growth, widening the gap between its view and that of producer group OPEC.

Global oil demand this year will grow by 1.1 million barrels per day, the IEA said, down 140,000 bpd from its previous forecast, largely due to weak demand in developed nations of the Organization for Economic Co-operation and Development.