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Saudi Arabia leading region’s transformative journey 

Saudi Venture Capital’s strategic initiatives have positioned Saudi Arabia as a leader in venture investments within the MENA region for the first time in 2023. (SPA)
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Updated 01 October 2024
Nour El-Shaeri
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Saudi Arabia leading region’s transformative journey 

  • SVC makes significant strides in shaping private investment landscape
Updated 01 October 2024
Nour El-Shaeri

CAIRO: A wave of venture capital funding has washed over the Middle East and North Africa region, prompting transformative change in the entrepreneurial landscape.

Saudi Arabia’s government is leading the shift through a subsidiary of the SME Bank, part of the National Development Fund.  

The Kingdom’s Saudi Venture Capital has made significant strides in shaping the private investment landscape, deploying finance across 40 investment funds and over 700 startups and small and medium-sized enterprises.  

This was highlighted in the latest Impact Report issued by SVC, which detailed its contributions since its inception in 2018. 

The document revealed that SVC’s total investments have reached SR2.6 billion ($693.1 million), with the overall impact of these, including partner commitments, estimated at around SR13.6 billion.  

These investments span various sectors critical to economic diversification, such as e-commerce, fintech, healthcare, educational technologies, transportation, and logistics. 

“SVC plays a crucial part in stimulating the private VC investment to sustain and foster the steady growth of the VC ecosystem in the Kingdom,” Nabeel Koshak, CEO of SVC, said.  

“SVC’s strategy, since its inception in 2018, contributed to increasing the number of investors in Saudi startups, encouraging existing and new financial companies to establish VC funds, and motivating regional and global funds to invest in Saudi startups,” Koshak stated. 

“Accordingly, the funding deployed into Saudi Arabian startups grew 21 times to a record-high of $1.4 billion in 2023 versus $65 million in 2018, the year SVC was launched,” he added. 

Significantly, SVC’s strategic initiatives have positioned Saudi Arabia as a leader in venture investments within the MENA for the first time in 2023.  

This milestone reflects the broader economic and financial sector evolution under Saudi Vision 2030, aimed at enhancing the national economy. 

Saudi Arabia’s Penny Software closes undisclosed pre-series A round 

Closing its pre-series A funding round, Saudi Arabia’s Penny Software raised an undisclosed sum from Iliad Partners, joined by GSI and US-based Knollwood Investments, alongside existing investors such as Dallah Investment, Hambro Perks Oryx Fund, Class 5 Global, Altuwajiri family fund, and strategic angel investors.  

Founded in 2020 by Iyad Al-Dalooj, Majid Al-Dalooj, and Mohamad Ibrahim, Penny Software is a business to business Software-as-a-Service procurement startup that digitizes the entire source-to-pay process, thereby enhancing spend efficiency, governance, and compliance. 

“This investment from Iliad Partners, alongside the continued support from our existing and new investors, represents a significant vote of confidence in Penny Software’s vision and our team’s ability to execute,” Iyad Al-Dalooj, the CEO, said. 

“We are excited to leverage this partnership to scale our operations, enhance our product offering, and solidify our position as a leader in the procurement software industry. The future of procurement is here, and Penny Software is at the forefront of this transformation,” he added. 

This new capital infusion is poised to fuel Penny’s ambitions for regional and global expansion.  

This follows a successful $5 million seed funding round in 2021, led by Outliers Venture Capital with participation from Wamda, Shorooq Partners, Hambro Perks ORYX Fund, Class 5 Global, and strategic angel investors.  

Penny Software aims to leverage this investment to further enhance its platform capabilities and broaden its market reach, reinforcing its position in the competitive SaaS industry. 

The company claims that it is set to manage a gross transaction value of over $1 billion this year, and ease procurement for thousands of companies globally. 

“Saudi Arabia is an economy that is undergoing a major transformation in which technology is playing a key role. This is our first investment in the Kingdom, and we plan to invest a significant portion of our fund in this market, supporting strong founders on their journey from the pre-series A stage and onwards,” Christos Mastoras, founder and managing partner of Iliad Partners, stated   

UAE’s DocsInBox closes $500k in a funding round 

UAE’s e-invoicing and procurement startup DocsInBox closed a $500,000 funding round from angel investors to boost its presence. 

Founded by serial entrepreneurs Leonid Dovbenko and Stanislav Seleznev,  DocsInBox significantly streamlines invoicing and procurement processes, saving up to 1 million hours each month, the company claimed.  

The platform enables purchasing agents to place orders in just three clicks, while accountants can complete tasks in 13 seconds that previously took 300 seconds.  

By automating procurement, DocsInBox reduces manual labor by 15 percent, operational costs by 5 percent, and food costs by 8 percent.  

UAE’s U-topia secures $850k in funding round 

UAE-based Web3 services provider U-topia has secured $850,000 in funding from GDA Capital. 

Established in 2021 by Jérémy Mahieu and Nicolas Prévost, U-topia operates as a Web3 entertainment company that merges global intellectual property licensing in GameFi, artificial intelligence music, and video entertainment supported by non-fungible token provenance.  

The newly acquired investment is earmarked for the development of advanced features and technologies on the U-topia platform, aiming to enhance its offerings in the dynamic Web3 landscape. 

Nigeria’s VC firm Verod-Kepple Africa Ventures closes $60m fund 

Nigeria-based VC firm Verod-Kepple Africa Ventures has concluded a final close of $60 million for its pan-African VC fund, led by existing investors and new investors, including SCM Capital from Nigeria and institutional investors from Japan, including Taiyo Holdings and C2C Global Education Japan. 

Formed in 2021 as a joint venture between Kepple Africa Ventures and Verod Holdings, VKAV is led by partners Satoshi Shinada, Ryosuke Yamawaki, and Ory Okolloh. 

The fund aims to bridge the funding gap for African startups, especially for companies moving to series A and B stages. 

Egypt’s VC firm Beltone teams up with UAE’s CI Venture to manage a $30m fund 

Egypt’s Beltone Venture Capital, under Beltone Holding, has teamed up with CI Venture Capital from UAE’s Citadel International Holdings to manage a $30 million fund aimed at nurturing fast-growing startups.  

This collaborative fund is set to invest in pre-seed and seed funding rounds of innovative tech startups across the MENA region while also continuing to support standout performers within its existing portfolio. 

In recent months, the fund has actively begun deploying capital, finalizing investments in several startups, including Bosta, Trella, Qlub, and ariika.  
 

Topics: startups VENTURE CAPITAL

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Syria to expand stock trading week, launch market reforms to boost investment

Updated 46 sec ago
MOHAMMED AL-KINANI
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Syria to expand stock trading week, launch market reforms to boost investment

Updated 46 sec ago
MOHAMMED AL-KINANI

JEDDAH: Syria is set to expand stock market trading to five days a week starting in July, part of a broader push to modernize its exchange and attract more investors, officials said. 

Finance Minister Mohammad Yasser Barnieh said the Damascus Securities Exchange will implement a development plan aimed at boosting market activity and listings, according to the official Syrian Arab News Agency.

Barnieh announced in a LinkedIn post that the exchange will hold a general assembly meeting in September to elect a new board of directors. 

The SANA report stated the minister explained that, in collaboration with the new board, the Capital Market Authority, and specialized experts, a comprehensive development plan will be launched. 

The report added: “This plan aims to expand the supply side of securities and create favorable conditions for the listing of more family-owned businesses, private universities, and other companies and institutions.” 

The minister also noted that the plan involves introducing new financial instruments and investment services aimed at stimulating market demand. 

The exchange resumed trading on June 2 after a six-month suspension, with the reopening attended by government officials and key players in the financial sector. 

In an earlier statement, Barnieh said the exchange would operate as a private company and become a key platform for Syria’s economic development with a focus on digital transformation. 

The planned reforms come as the country looks to revive its battered economy and rebuild investor confidence after years of conflict, sanctions, and financial isolation. 

The government is seeking to modernize capital markets as part of wider efforts to attract private investment and stimulate post-war reconstruction.

Topics: Damascus Securities Exchange Syria stock market

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Saudi Arabia imposes anti-dumping duties on stainless steel imports from China, Taiwan

Updated 9 sec ago
REEM WALID 
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Saudi Arabia imposes anti-dumping duties on stainless steel imports from China, Taiwan

  • Duties target pipes with longitudinally welded circular sections
  • Measure follows final results of investigation launched in May 2024
Updated 9 sec ago
REEM WALID 

RIYADH: Saudi Arabia is set to impose final anti-dumping duties on imports of steel and stainless steel pipes originating from China and Taiwan, effective June 30, for a period of five years.

The duties, issued by the Chairman of the Board of Directors of the Kingdom’s General Authority of Foreign Trade Majid Al-Qassabi, specifically target pipes with longitudinally welded circular sections, according to a statement.

This reflects Saudi Arabia’s goal to enhance the competitiveness of national products, attract investment, and foster new industries, ultimately contributing to the Kingdom’s Vision 2030 goals.

It also aligns with the fact that Saudi Arabia’s real gross domestic product grew by 3.4 percent in the first quarter of 2025 compared to the same period in 2024, according to estimates by the General Authority for Statistics.

In terms of duty rates, the newly released statement said: “People’s Republic of China: ranged from 6.5 percent to 24.6 percent of CIF (cost, insurance, and freight) value not less than 1.750 to 4.111 per kilogram.”

It added: “Taiwan: ranged from 23.7 percent to 27.3 percent of CIF value, not less than 2.822 to 3.141 per kilogram.” 

The Zakat, Tax, and Customs Authority has been directed to implement and collect duties ranging from 6.5 percent to 27.3 percent, depending on the manufacturer, as detailed in the official announcement, the Saudi Press Agency reported.

“The measure follows the final results of an investigation launched on May 2, 2024, after the local industry submitted a formal complaint. The investigation was conducted in accordance with the Law of Trade Remedies in International Trade and its executive regulations, designed to protect the domestic market from unfair trade practices such as dumping,” SPA said.

It added: “GAFT emphasized that this step is part of broader efforts to safeguard national industries, enhance the Kingdom’s position in global trade, and contribute to the country’s economic growth.”

The Kingdom’s anti-dumping duties aim to protect domestic industries from unfair trade practices by foreign exporters. Specifically, they seek to protect local businesses from the adverse effects of dumping and subsidized imports.

These measures also help prevent surges in imports that could harm domestic industries and protect Saudi exports from similar trade-remedy measures imposed by other countries.

In June 2024, ZATCA relaxed the temporary admission regulations for heavy machinery and equipment. This policy change benefits international contractors working on major infrastructure projects by reducing customs duties on temporary imports and eliminating the need for frequent renewals, thereby facilitating smoother and more cost-effective project execution.

Topics: Majid Al-Qassabi Saudi General Authority of Foreign Trade (GAFT) Saudi Arabia Taiwan China Steel

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Egypt exceeds growth forecasts with 4.77% quarterly expansion, fastest in 3 years

Updated 39 min 19 sec ago
Nour El-Shaeri
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Egypt exceeds growth forecasts with 4.77% quarterly expansion, fastest in 3 years

Updated 39 min 19 sec ago
Nour El-Shaeri

RIYADH: Egypt’s economy expanded 4.77 percent in the third quarter of fiscal year 2024/2025, its fastest pace in three years, as growth rebounded across non-oil manufacturing, tourism, and telecommunications, official data showed. 

According to preliminary figures released by the Ministry of Planning, Economic Development, and International Cooperation, the acceleration — up from 2.2 percent a year earlier — lifted average growth for the first nine months of the fiscal year to 4.2 percent, surpassing earlier expectations and signaling growing resilience amid global uncertainties. 

The ministry added that full-year growth may exceed the government’s 4 percent target. 

This comes as Egypt’s economy has navigated significant turbulence and transformation over the past five years. After pandemic disruption and rising foreign debt, the overnment secured an $8 billion International Monetary Fund-backed rescue package in early 2024, floated its currency — triggering a 38 percent depreciation — and raised interest rates sharply.  

In its quarterly GDP note, the ministry stated: “Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, highlighted that the Egyptian economy continued its robust recovery in the third quarter of the current fiscal year, demonstrating growing resilience amid mounting global uncertainties.” 

It noted that higher-than-expected GDP growth was driven by strong performance in key sectors, reflecting the impact of Egypt’s macroeconomic policies and structural reform agenda. 

“Dr. Al-Mashat emphasized that this momentum builds on the solid recovery observed since the start of the fiscal year and aligns with the government’s broader strategy to promote private sector–led growth and advance the transition toward a more competitive, export-oriented economy focused on tradable goods and services,” the release added. 

Egypt’s Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat. moic.gov

Growth is expected to rebound from around 3 percent in 2023 to an estimated 4.2 percent by 2025, driven by private investment, infrastructure projects, and tourism recovery, according to World Bank projections.  

Inflation, peaking near 38 percent in late 2023, cooled to approximately 12 percent to 13 percent by early 2025.  

Persistent challenges include energy deficits, waning gas production, substantial external debt, and widening current-account and budget deficits 

“The strong outturn also reflects the continued implementation of the reform agenda, under the National Structural Reform Program, which is instrumental in maintaining macroeconomic stability, improving the governance of public investment, enhancing economic competitiveness, and expanding private sector participation,” the report stated. 

The program, launched in 2021, aims to diversify the Egyptian economy and enhance its competitiveness by focusing on strengthening key sectors, improving the business environment, and promoting sustainable and inclusive growth. 

The report noted that non-oil manufacturing output grew by 16 percent in the quarter, reversing a 4 percent contraction a year earlier.  

The industrial production index excluding crude oil and petroleum products expanded by 16.03 percent, led by significant gains in motor vehicles, which grew by 93 percent, ready-made garments by 58 percent, beverages by 34 percent, paper by 20 percent, and textiles by 17 percent. 

The sector contributed 1.9 percentage points to overall GDP growth. Exports of finished goods rose by 12.7 percent year on year in the quarter. 

The tourism sector also posted a strong performance, growing by 23 percent. Visitor arrivals reached 4 million, with tourist nights increasing to 41 million.  

Telecommunications expanded by 14.7 percent, while financial intermediation grew by 17.34 percent, insurance by 7.7 percent, electricity by 5.76 percent, and construction by 3.13 percent. 

On the expenditure side, net exports contributed approximately 2.7 percentage points to growth, as exports rose by 54.4 percent, outpacing an 18.7 percent increase in imports.  

Private investment increased by 24.2 percent year on year at constant prices, accounting for 62.8 percent of total implemented investments excluding inventory, and surpassing public investment for the third consecutive quarter.  

However, public investment contracted by 45.6 percent, resulting in a negative overall contribution of investment to GDP growth, estimated at minus 2.44 percentage points. 

Some sectors continued to decline. Suez Canal activity fell by 23.1 percent, reflecting ongoing geopolitical disruptions, while extractive industries contracted by 10.38 percent due to reduced oil and gas output. Petroleum activity declined by 9.52 percent, and natural gas extraction by 20.5 percent. 

Looking ahead, the government projects GDP growth of 4.5 percent for fiscal year 2025/2026 under the Economic and Social Development Plan approved by Parliament in June.  

The plan caps public investment at 1.158 trillion Egyptian pounds ($24.64 billion) and allocates about 47 percent of treasury-funded investments to health, education, and social services.

Despite regional instability following the outbreak of conflict between Israel and Iran, the government has maintained its growth outlook, citing relatively contained effects on global markets. 

Topics: Egypt economy

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GCC, Japan begin 2nd round of FTA negotiations in Tokyo  

Updated 30 June 2025
Nirmal Narayanan
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GCC, Japan begin 2nd round of FTA negotiations in Tokyo  

Updated 30 June 2025
Nirmal Narayanan

RIYADH: The Gulf Cooperation Council and Japan have launched the second round of negotiations for a free trade agreement, with discussions focusing on enhancing economic cooperation between the two sides. 

Held in Tokyo from June 30 to July 4, the talks aim to lay the groundwork for a comprehensive FTA that would grant Gulf goods and services preferential access to the Japanese market through tariff reductions, simplified customs procedures, and regulatory streamlining. 

The negotiations were preceded by coordination meetings of the GCC technical negotiation teams on June 29, the Saudi Press Agency reported. 

This follows the first round of negotiations in December, during which both parties discussed cooperation in goods, services, e-commerce, investment, and economic evaluation. 

“The second round of negotiations will address a number of topics across various areas, including goods, sanitary and phytosanitary measures, technical barriers to trade, services provisions, financial services, telecommunications services, the movement of natural persons, intellectual property, dispute settlement, general provisions of the agreement, rules of origin, and trade facilitation.” the SPA report stated. 

Saudi Arabia, represented by the General Authority for Foreign Trade and led by Deputy Governor for International Organizations and Agreements Fareed Al-Asaly is participating in the talks, it added. 

The Saudi delegation includes representatives from the Ministries of Energy, Investment, Environment, Water and Agriculture, along with officials from the Saudi Food and Drug Authority, the Saudi Central Bank, and the Zakat, Tax and Customs Authority. 

An FTA represents a legally binding agreement between countries designed to reduce or eliminate barriers to trade. 

The second round aims to finalize proposed texts and identify key areas of cooperation, paving the way for a comprehensive agreement. 

According to the Japan External Trade Organization, GCC exports to Japan reached $84 billion in 2024, down from $93 billion the previous year due to a drop in oil prices. Meanwhile, Japanese exports to the GCC rose to $24 billion last year from $22 billion in 2023. 

The GCC currently has an FTA with the European Free Trade Association, which includes Iceland, Liechtenstein, Norway, and Switzerland. 

The bloc also concluded an FTA with New Zealand in October, while negotiations are ongoing with countries including Australia, Malaysia, Turkiye, and the UK. 

Japan currently has FTAs with several countries, including Singapore, Mexico, and Malaysia, as well as Chile, Thailand, Indonesia, and Brunei. 

Other major nations that have FTAs with the East Asian country include Switzerland, Vietnam, India, the UK, and the US.

Topics: Gulf Cooperation Council (GCC) GCC-Japan Free Trade Agreement between Japan and the Gulf Cooperation Council (JGFTA)

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Saudi Arabia pitches $2.5tn mining sector potential to Canadian firms

Updated 30 June 2025
MOHAMMED AL-KINANI
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Saudi Arabia pitches $2.5tn mining sector potential to Canadian firms

Updated 30 June 2025
MOHAMMED AL-KINANI

JEDDAH: Canadian companies have been presented with exploration opportunities in Saudi Arabia’s mining sector during a roundtable in Vancouver.

Officials from the Kingdom’s Ministry of Industry and Mineral Resources presented investment options to representatives from 25 firms, outlining the goals of the government’s Comprehensive Mining Strategy, according to the Saudi Press Agency.

The speakers also highlighted the competitive advantages of the Kingdom’s investment environment and its ongoing efforts to develop the mining sector, maximizing its contribution to economic diversification.

The initiative is part of the Ministry of Industry and Mineral Resources’ ongoing efforts to attract high-quality investments to Saudi Arabia’s mining sector, with the Kingdom’s mineral wealth estimated at around SR9.3 trillion ($2.48 trillion).

this effort also includes the Future Minerals Forum, launched in 2022 as an annual international conference where global mining leaders collaborate, share knowledge, and tackle key industry challenges and opportunities.

The Vancouver meeting is one of a number set to be held ahead of the fifth edition of the Kingdom’s Future Minerals Forum in January, and according to SPA: “Roundtable participants reaffirmed FMF’s vital role in shaping the future of the global mining sector and developing effective solutions to its challenges amid ongoing shifts in the energy and industrial landscapes.” 

The report added that the ministry also held a seminar with investors in Toronto, where it also presented promising investment opportunities in the Kingdom’s mining sector.

The meetings build on the momentum of high-level engagement between Canada and Saudi Arabia, including Industry Minister Bandar bin Ibrahim Alkhorayef leading a delegation to Ottawa and Toronto in October to advance bilateral cooperation following the restoration of diplomatic ties in May 2023.

The visit also highlighted Saudi Arabia’s interest in Canada’s expertise in digital financial technologies, geological surveying, and human capacity development, aligning with the Kingdom’s efforts to build a knowledge-based, innovation-driven mining sector under Vision 2030.

In 2023, the Kingdom’s non-oil exports to Canada totaled SR140 million, mainly consisting of base metals and plant products. In contrast, non-oil imports from Canada reached SR2.89 billion, including locomotives, pharmaceuticals, optical and imaging equipment, and electrical devices.

Topics: Mining saudi mining sector Saudi Ministry of Industry and Mineral Resources

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