Startup Wrap — regional funding continues to rise with a flurry of new deals

Saudi Arabia-based food technology startup NOMU has successfully raised $5 million in a funding seed round from a range of investors, including DIV Capital, Shurfah, Core Vision, and Purity for Information Technology, as well as family offices such as Altoukhi Family Office and Bakr Family Office. (Supplied)
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Updated 09 July 2023
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Startup Wrap — regional funding continues to rise with a flurry of new deals

CAIRO: Saudi Arabia-based food technology startup NOMU has successfully raised $5 million in a funding seed round from a range of investors, including DIV Capital, Shurfah, Core Vision, and Purity for Information Technology, as well as family offices such as Altoukhi Family Office and Bakr Family Office. 

The newly secured funds will be utilized by NOMU to expand its presence in the hotel, restaurant, and catering sector.  

Additionally, the company plans to develop a software as a service solution and an artificial intelligence-enabled procurement chatbot.  

Moreover, NOMU has plans to extend its operations to Pakistan and sub-Saharan Africa in the near future. 

 The company was established in late 2022 following a merger between commerce startups Saudi-based Jumlaty and Egypt’s Appetito.

The successful funding round demonstrates the investor confidence in NOMU’s business model and growth potential, according to a statement.

“We are thrilled with the overwhelming support we have received from our investors, both in terms of funding and strategic partnerships,” said Shehab Mokhtar, co-founder and CEO of NOMU Group. 

With the fresh capital infusion, the company is well-positioned to enhance its market presence, expand its product offerings, and capitalize on emerging opportunities in the food tech sector. 

“This seed round allows us to strengthen our business-to-business HORECA (hotel, restaurant, and catering) offering, invest in cutting-edge technology, and expand into new markets. NOMU is committed to revolutionizing the food tech supply chain, providing greater convenience and efficiency for businesses in the MENA (Middle East and North Africa) region,” Mokhtar added. 

The company operates in Saudi Arabia, Egypt, Tunisia and Morocco with plans to expand into 50 new cities by 2025. 

UAE’s HR technology firm alfii raises $2.5m in a pre-seed funding round 

The UAE-based human resources technology startup alfii has successfully raised $2.5 million in a pre-seed funding round led by Preface Ventures, a US-based venture capital firm, along with the participation of Kayan Ventures, Aditum Ventures, and Wayfinders. 

Founded in 2022 by Yousef Al-Barqawi, Becky Jefferies and Dina Mohammad-Laity, alfii aims to assist growing businesses in managing their HR workload and streamlining administrative tasks. 

With the newly secured funding, alfii plans to expand its team and further develop its HR automation platform, which is powered by financial technology solutions. 

“We’re looking to build the next generation of this product class, and we’re building it entirely in-house — which means we need to bring on world-class talent to grow our business and better serve our customers,” said Al-Barqawi, alfii’s CEO and co-founder.      

The investment will support the company’s growth strategy and enable it to better serve its clients by optimizing its HR processes and improving overall efficiency. 

Additionally, several local and regional angel investors contributed to the funding round. 

Morocco’s Chari raises $1.5m in funding 

Morocco-based business-to-business e-commerce and fintech startup Chari has successfully raised $1.5 million in funding from Verof-Kepple Africa Ventures.  

The investment will play a crucial role in enabling Chari to expand its operations across Africa and further develop its portfolio of financial services. 

Founded in 2020 by Ismael Belkhayat and Sophia Alj, Chari offers a platform that allows retailers to directly purchase large quantities of inventory items from suppliers.  

By facilitating efficient business-to-business transactions, Chari aims to streamline the procurement process for businesses. 

“We are thrilled to onboard VKAV as our partner as we establish a cutting-edge and fundamental financial services infrastructure for the mass market in our country,” Ismael Belkhayat, CEO and co-founder of Chari, said, adding: “With VKAV’s extensive network across Africa and profound connections with the Japanese corporate society, we believe they will consistently bring value to our endeavors.” 

In addition to the funding, Chari has appointed Ryosuke Yamawaki, a partner at VKAV, as a strategic advisor.  

“Chari is uniquely positioned to transform the informal retail sector and redefine the category of informal trade in Africa. We firmly believe that their innovative approach will benefit the local market and serve as a showcase to the rest of the world,” Yamawaki said in a statement. 

This strategic collaboration will provide valuable insights and guidance to support Chari’s growth and strategic decision-making. 

The recent funding round marks Chari’s third successful fundraising effort this year. 

In March, the company secured a seed round from Plug and Play and received $1 million in funding from Orange Ventures.  

MENA startups raise $35.6m in June 

Startups in the MENA region secured $35.6 million last month across 45 deals, closing the first half of the year at $1.6 billion. 

In terms of funding value, Saudi Arabia claimed the top position in June, securing $25 million across 12 rounds, followed by the UAE as a distant second, with its startups raising $6 million through 20 rounds. 

Egyptian startups ranked third in terms of capital received with $4.8 million, largely due to a $3.5 million funding round for Egypt’s trucking marketplace, Trella. 

Fintech emerged as the sector with the highest number of deals, as seven startups raised $3 million.  

However, it was the foodtech space that received the largest funding, with over $20 million raised across four startups, representing 56 percent of the total funds secured. Investor interest was also seen in other sectors such as logistics, esports and mobility.


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

Updated 17 min 37 sec ago
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Saudi Arabia’s US Treasury holdings rise to $131.6bn in March

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. 


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

Updated 18 min 56 sec ago
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Saudi Arabia tops MENA digital economy rankings with $132bn market

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.

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.

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.


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

Updated 13 sec ago
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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.

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.


Saudi Arabia’s expat remittances hit near 9-year high at $4.13bn in March

Updated 18 May 2025
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Saudi Arabia’s expat remittances hit near 9-year high at $4.13bn in March

RIYADH: Expatriate remittances from Saudi Arabia soared to SR15.5 billion ($4.13 billion) in March 2024, marking a 29.61 percent year-on-year increase.

According to data released by the Saudi Central Bank, also known as SAMA, this is the highest monthly level recorded in nearly nine years.

The surge reflects an increasingly attractive labor market in the Kingdom and growing momentum in digital payment adoption, enabling smoother international money transfers for the country’s large expatriate population.

In parallel, transfers made by Saudi citizens also rose to SR6.5 billion, representing a 27 percent increase over the same period and reaching their highest level in almost three years, SAMA figures show.

The remittance upswing comes amid broader growth in cross-border transactions. According to Visa’s “Money Travels: 2024 Digital Remittances Adoption” report, published in October, senders in the Kingdom are primarily motivated to provide ongoing financial support to families, address urgent needs, and contribute to health and education-related costs.

These priorities have helped sustain high transaction volumes despite global remittance trends softening elsewhere.

The analysis also highlighted that digital platforms are now the preferred method for sending money internationally from Saudi Arabia. More than half of the surveyed users said they plan to increase their use of digital channels in the coming year, while fewer than a third expect to continue relying on traditional physical methods such as cash or money orders.

Ali Bailoun, Visa’s general manager for Saudi Arabia, Bahrain, and Oman, noted that the Kingdom remains one of the leading remittance-sending markets globally. He emphasized that the country’s payments sector is advancing rapidly and that local partners are continuing to enhance digital solutions that are secure, seamless, and aligned with evolving user expectations.

While digital tools are improving access and speed, remittance users nationwide still point to a few persistent challenges, including service fees and exchange rate clarity.

The study found that about one-third of senders and recipients reported concerns with costs and fee transparency, particularly when using cash-based transfer options.

Nonetheless, the continued shift toward digital channels is helping address many of these issues, offering users greater control, visibility, and convenience in managing international payments.

The report also found that 87 percent of Saudi-based respondents plan to send money abroad at least once per year. In comparison, 73 percent expect to receive remittances during the same timeframe, indicating steady demand and sustained cross-border financial engagement.

The upward volume and digital uptake trend reflect Saudi Arabia’s broader transformation agenda, as the Kingdom works to modernize its financial infrastructure in line with Vision 2030.

As remittance flows reach new highs, digital innovation plays a pivotal role in reshaping how individuals connect with and support their families worldwide.


Saudi entertainment industry set to power economic diversification

Updated 17 May 2025
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Saudi entertainment industry set to power economic diversification

  • Entertainment sector set to generate 450,000 jobs and contribute 4.2 percent to Kingdom’s GDP by 2030

RIYADH: Saudi Arabia’s growing entertainment sector is set to become a key catalyst for growth across various industries and a central pillar in the Kingdom’s broader economic diversification strategy, according to experts.

Strengthening the industry is vital as Saudi Arabia continues to shift away from its long-standing dependence on oil revenues, aligning with its ambitious efforts to build a more resilient and diversified economy.

The rapid growth of the Kingdom’s entertainment sector is underscored by recent data and forecasts, including a report by AlixPartners which revealed that 33 percent of Saudi consumers plan to increase spending on out-of-home entertainment — significantly higher than the global average of 19 percent.

Supporting this trend, data from the Ministry of Commerce showed that commercial registrations in the Kingdom’s arts and entertainment sector rose by 20 percent in 2024 compared to 2023. 

Notably, innovative arts and entertainment activities saw a 30 percent increase, reaching 4,188 registered entities, while amusement park activities grew by 26 percent, totaling 6,108 registrations.

In an interview with Arab News, Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at consulting firm Arthur D. Little, highlighted the sector’s potential to generate a ripple effect across hospitality, tourism, and retail, as well as real estate, and technology.

“Major events and attractions are drawing both international and domestic tourists — contributing directly to the Kingdom surpassing its original target of 100 million annual visitors by 2030, an achievement reached seven years ahead of schedule,” said Khan. 

Major events and attractions are drawing both international and domestic tourists.

Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at consulting firm Arthur D. Little

He added: “This surge in tourism fuels demand for hospitality infrastructure, including hotels, restaurants, and local transport, while extending average visitor stay and spend.”  The Arthur D. Little official added that the growth in the entertainment sector could also propel the retail industry, with entertainment-led foot traffic expected to drive commercial activity in malls, high streets, and mixed-use developments. 

Guillaume Thibault, partner and head of Sports and Entertainment at Oliver Wyman for India, the Middle East, and Africa, echoed similar sentiments, noting that Saudi Arabia’s entertainment industry will spur growth in adjacent sectors by driving demand for complementary services.

He added that emerging entertainment destinations are helping cities like Riyadh and Jeddah position themselves as lifestyle hubs with the potential to compete on a global scale.

“Large-scale events and festivals drive hotel occupancy and airline bookings, while lifestyle venues anchor foot traffic in malls and high streets. Technology adoption accelerates through the demand for ticketing, crowd management, and immersive experiences,” said Thibault. 

He added: “Entertainment is a key downstream activator for mega-events and is intricately intertwined with the urban fabric of these mega events, enhancing the hospitality, tourism, and retail sectors.” 

Looking ahead, the Ministry of Investment projects that the entertainment sector could generate 450,000 jobs and contribute 4.2 percent to Saudi Arabia’s GDP by 2030.

Impacts: retail spending, real estate and FDI 

Thibault emphasized that Saudi Arabia’s youthful population — most of whom are under the age of 35 — will be a key driver of growth in the Kingdom’s entertainment sector and could significantly boost retail spending.

He noted that for young Saudis, entertainment is not viewed as a seasonal luxury, but rather as a regular and essential part of their spending habits.

“As more venues and formats become available, consumers are reallocating discretionary income from international travel to local entertainment. This ‘localization of lifestyle’ is increasing the frequency and variety of spending, from dining and merchandise to experiential add-ons,” said Thibault. 

Khan expressed similar views and added that rising disposable income among people in Saudi Arabia is empowering consumers with the means to pursue experience-rich lifestyles. 

“This financial capacity is enabling a broader cultural shift — especially among younger Saudis — toward valuing experiences over possessions, and prioritizing social, live, and recreational activities as a core part of modern living,” he said. 

Khan added: “What was once a limited and largely outbound market is now being redirected into the local economy — creating a dynamic, self-sustaining entertainment ecosystem at home.”

Commenting on its impact on the real estate sector, Thibault stated that the entertainment industry is reshaping property demand by revitalizing underutilized land, promoting mixed-use development models, and enhancing the attractiveness and viability of secondary cities.

Thibault further noted that developers are increasingly incorporating dedicated entertainment zones and hybrid residential complexes into their plans, viewing them as key drivers of footfall and community engagement.

“This enhances land value, accelerates absorption rates, and encourages long-term leasing. Moreover, large entertainment projects are contributing to the emergence of new urban centers that align with the Kingdom’s regional development goals,” said Thibault. 

Khan pointed out that the entertainment sector has already reshaped the Kingdom’s real estate landscape, both directly and indirectly. 

He said that the entertainment boom has contributed to a rise in property values across the Kingdom, especially in areas adjacent to major attractions. 

Khan further said that large-scale entertainment destinations — such as those under Qiddiya, Diriyah, AlUla, and others — are also catalyzing new hospitality and retail clusters, creating demand for hotels, serviced apartments, dining spaces, and lifestyle-driven real estate. 

“In addition, the rise of cultural and live event venues across second-tier cities and emerging districts is stimulating regional real estate development, encouraging urban sprawl and infrastructure investment beyond the major metropolitan areas,” said Khan. 

In terms of the potential of attracting foreign direct investments, Thibault said that the Kingdom’s entertainment sector presents a “rare greenfield” opportunity in a G20 economy, supported by policy backing, untapped demand and significant scale. 

“As regulatory clarity improves and exit mechanisms mature, we anticipate a rise in joint ventures, venture capital deployment in entertainment startups, and the entry of global operators, making entertainment a cornerstone of the Kingdom’s FDI narrative,” said the Oliver Wyman official. 

Khan said that Saudi Arabia’s sovereign wealth fund is playing a catalytic role — both directly and through its giga-projects and portfolio companies — by investing in and forming strategic partnerships with foreign players across the entertainment spectrum. 

He added that the efforts of PIF are facilitating market entry and localization of globally leading companies in key areas such as theme parks, live entertainment, attractions, and hospitality. 

Large-scale events and festivals drive hotel occupancy and airline bookings.

Guillaume Thibault, partner and head of Sports and Entertainment at Oliver Wyman for India, the Middle East, and Africa

In September, the PIF launched the National Interactive Entertainment Co. to create immersive storytelling experiences rooted in the Kingdom’s heritage and Islamic history. 

The newly established firm, known as QSAS, will focus on developing, owning, and operating world-class interactive exhibitions throughout the Kingdom, the wealth fund said in a statement at that time. 

“The entertainment sector is emerging as a key gateway for FDI in Saudi Arabia, underpinned by strong market fundamentals, government-backed infrastructure, and a robust regulatory push aligned with Vision 2030,” said Khan. 

In January, Saudi Arabia’s General Entertainment Authority unveiled 29 investment opportunities targeting six key sectors of the industry. 

The targeted sectors include facilities, destinations, water parks, adventure parks, virtual reality parks, and e-gaming centers.

Cinema and journey beyond 

Speaking to Arab News, Thibault noted that Saudi Arabia has rapidly emerged as one of the fastest-growing cinema markets in the world. 

He added that this momentum could pave the way for a new wave of industry growth by encouraging local content creation, supported through public-private co-investment models and enhanced by regulatory incentives for film production and post-production infrastructure.

“Elevating local narratives while attracting international studios can simultaneously boost soft power and develop a self-sustaining film economy,” said Thibault. 

Khan echoed similar views and said that Saudi Arabia currently has more than 600 screens and has witnessed a doubling of both ticket sales and box office revenues between 2019 and 2024.

“Expanding cinema access to underserved regions and enhancing operators’ business models — by tapping into diversified revenue streams such as F&B, experiential offerings, and advertising — will be essential for long-term profitability and sector sustainability,” said Khan. 

He added: “Additionally, forging international partnerships through co-productions, location incentives, and distribution alliances would further strengthen the overall industry while enabling knowledge transfer and job creation.” 

Thibault emphasized that Saudi Arabia should ambitiously expand its entertainment landscape beyond traditional formats such as cinema by investing in immersive, experience-driven offerings. 

These include esports arenas, mega-theme parks like those planned in Qiddiya, mixed-reality shows, adventure tourism, and platforms centered around heritage-based storytelling.