Saudis accounted for 25.6% of the total, with 245,905 nationals employed in tourism by the end of June
Expatriates made up 74.4% at 713,270
Updated 18 December 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s tourism sector added jobs at a steady pace in the second quarter of 2024, with the workforce growing 5.1 percent year on year to 959,175, official data showed.
According to official data released by the General Authority for Statistics, the sector’s workforce rose 1.57 percent quarter on quarter, signaling sustained momentum in the industry.
Saudis accounted for 25.6 percent of the total, with 245,905 nationals employed in tourism by the end of June, while expatriates made up 74.4 percent at 713,270.
The increase highlights the Kingdom’s rapid transformation into a global tourism destination as part of its Vision 2030 economic diversification strategy, which aims to attract 150 million annual visitors by the end of the decade.
GASTAT data revealed that tourism jobs made up 5.7 percent of the total workforce in the second quarter, a slight decline of 0.2 percentage points from the same period last year.
In the private sector, tourism accounted for 8.6 percent of employment, down 0.5 percentage points year on year.
Breaking down the demographics further, male employees dominated the sector at 831,076, while female workers totaled 128,099.
GASTAT also reported gains in Saudi Arabia’s hotel sector, with occupancy rates rising to 55.4 percent in the second quarter, a 0.5 percentage point increase from last year. The average length of stay for guests surged by 17.6 percent to 5.2 nights.
However, the average daily room rate edged down slightly to SR725.5 ($193.08), a 0.4 percent drop from the second quarter of 2023, reflecting competitive pricing as the industry expands.
The tourism boom aligns with regional trends, as a Mastercard report released earlier this month highlights the sector’s role in Gulf economies, with Saudi Arabia leading efforts to attract global visitors.
In 2023, Saudi Arabia’s tourism sector contributed 11.5 percent to gross domestic product and generated $36 billion in revenue, both record highs, according to official data released earlier this year. The sector is projected to grow to 16 percent of GDP by 2034.
ISLAMABAD: Pakistan and the International Monetary Fund mission will open discussions from today, Monday, for around $1 billion in climate financing for Pakistan, an adviser to the country’s finance minister said.
Khurram Schehzad told Reuters last week the IMF mission will visit from February 24-28 for a “review and discussion” of climate resilience funding.
The disbursement will take place under the Fund’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.
Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the nation’s vulnerability to climate change.
Pakistan’s Geo News TV had earlier reported that the IMF would issue the $1 billion for climate financing this week.
The country’s economy is on a long path to recovery after being stabilized under a $7 billion IMF Extended Fund Facility it secured late last year.
“Another IMF mission will arrive in Pakistan in the first week of March for a first review of that facility,” Schehzad said.
The Global Climate Risk Index places Pakistan among the countries most vulnerable to climate change.
Floods in 2022, which scientists said were aggravated by global warming, affected at least 33 million people and killed more than 1,700. The country’s economic struggles and high debt burden impinged its ability to respond to the disaster.
MENA startups secure new investments, acquisitions across fintech, AI and e-commerce
Updated 23 February 2025
NOUR EL-SHAERI
RIYADH: Startups across the Middle East and North Africa continue to attract significant investment, with funding rounds and acquisitions shaping the region’s growing tech ecosystem.
From artificial intelligence infrastructure and fintech to automotive SaaS and second-hand fashion, companies are securing capital to expand operations, enhance technology, and enter new markets.
Among the latest developments, UK-based AI cloud infrastructure provider Ori has secured a strategic investment from Wa’ed Ventures, the venture capital arm of Saudi Aramco, as it prepares for expansion in the Middle East.
The financial terms of the investment were not disclosed. The deal follows Ori’s recent deployment of Nvidia’s H200 chips, positioning the company as a key AI infrastructure provider in the UK, the Middle East, and beyond.
Ori, which enables large-scale AI model training and deployment, currently operates in over 20 locations across North America and Europe.
Mahdi Yahya, CEO of Ori. Supplied
With the backing of Wa’ed Ventures, Ori plans to localize its operations in Saudi Arabia, launching a regional subsidiary in Riyadh to support the country’s Vision 2030 initiative.
Wa’ed Ventures, a $500 million fund investing in advanced technology startups, has expanded its focus internationally since 2022 to support companies that can localize their technologies in Saudi Arabia.
The fund has previously invested in AI chipmaker Rebellions and real estate fintech firm Stake.
Ori recently raised £140 million ($176.8 million) and is preparing for a larger funding round in 2025.
It partners with global technology firms, including Nvidia, Supermicro, and Dell, and is backed by investors such as Telefonica, NextEra Energy, and Episode 1 Ventures. Dubizzle acquires Egypt’s Hatla2ee
UAE-based online classifieds platform Dubizzle Group has acquired Hatla2ee, an Egyptian online car marketplace, for an undisclosed amount.
The acquisition strengthens Dubizzle Group’s regional presence by integrating its technology and resources into Hatla2ee’s platform.
Founded in 2016 by Samy Swellam, Hatla2ee provides a marketplace for buying and selling new and used cars in Egypt.
Dubizzle Group, established in 2005, operates multiple classified platforms, including Dubizzle, Bayut, and Drive Arabia.
The acquisition follows Dubizzle Group’s purchase of UAE-based automotive media platform Drive Arabia in May 2024. MANSA raises $10m for cross-border payments
MANSA, a fintech firm specializing in cross-border payments, has secured $10 million in funding to enhance its liquidity solutions.
The funding includes a $3 million pre-seed round led by Tether and co-led by Polymorphic Capital, with participation from Octerra Capital, Faculty Group, and Trive Digital.
MANSA also raised $7 million in liquidity funding from corporate investors, quantitative funds, and alternative investment firms.
Mansa Co-Founders. Supplied
The company, co-founded by Mouloukou Sanoh and Nkiru Uwaje, leverages stablecoins to streamline liquidity management for payment providers in emerging and developed markets.
Since launching in August, MANSA has facilitated $27 million in transactions, with on-chain volume surging 574 percent from August to January 2025.
The new funding will support the company’s expansion into Latin America and Southeast Asia. Egypt’s Qme raises $3m for AI business solutions
Qme, an Egypt-based B2B SaaS startup, has raised $3 million in a seed funding round led by AHOY and a group of angel investors from the Gulf Cooperation Council.
Founded in 2022 by Maged Negm, Qme provides AI-driven digital infrastructure for businesses, integrating booking, queuing, analytics, and payment solutions.
The investment will be used to enhance the company’s technology, expand its market presence, and strengthen partnerships. UAE fintech Blum secures $5m in seed funding
Blum, a UAE-based decentralized exchange, has raised $5 million in a pre-seed and seed funding round led by gumi Cryptos Capital, Spartan, No Limit Holdings, YZi Labs, and OKX Ventures.
Founded in 2024 by Gleb Kostarev and Vladimir Smerkis, Blum offers token trading through gamification within a Telegram mini-app.
The funding will support the platform’s infrastructure development, trading enhancements, and expansion across multiple blockchain networks. Tunisia’s Dabchy raises pre-Series A funding
Dabchy, a Tunisia-based peer-to-peer fashion marketplace, has raised an undisclosed amount in a pre-Series A funding round led by Janngo Capital and angel investors.
Founded in 2016 by Ameni Mansouri, Ghazi Ketata, and Oussama Mahjoub, Dabchy provides an e-commerce marketplace for second-hand fashion.
The funding will support the startup’s expansion into Egypt, broaden its product offerings, and improve its platform. The Box secures $12.5m for storage expansion
The Box, a UAE-based self-storage services provider, has secured $12.5 million in debt financing led by Shorooq Partners.
Founded in 2007 by Wadih Haddad, The Box offers personal storage, record management, and moving services.
The new capital will enable the company to expand its storage facilities and develop flagship locations. Palm Ventures closes $30m early-stage fund
Palm Ventures, a MENA-focused investment firm, has closed a $30 million fund to support early-stage startups in the region, with a portion allocated to US-based AI ventures.
Founded in 2014, Palm Ventures has backed 40 startups and collaborated with government entities to drive innovation.
Between 2020 and 2024, the firm invested in 20 MENA and US-based AI startups.
The new fund will target AI, fintech, and business solutions, supporting digital transformation in the region. Pinewood acquires 90.9 percent of Seez for $42m
Pinewood Technologies PLC has acquired a 90.9 percent stake in UAE-based automotive SaaS platform Seez for approximately $42 million.
The transaction, expected to close by March 19, 2025, will be funded through a mix of cash payments and newly issued shares.
Seez specializes in AI and machine learning solutions for the automotive sector, including e-commerce and omnichannel products.
Pinewood, which provides automotive intelligence solutions, aims to leverage Seez’s technology to enhance its agency management systems while reducing reliance on third-party AI licenses.
The companies anticipate the acquisition will be earnings-accretive by fiscal year 2026. Oman Investment Authority partners with Golden Gate
Oman Investment Authority has partnered with Singapore-based venture capital firm Golden Gate Ventures to strengthen Oman’s startup landscape.
Through its technology arm, Innovation Development Oman, OIA has become a limited partner in Golden Gate Ventures’ new $100 million fund, which marks the firm’s first major venture capital initiative in the MENA region.
The partnership aims to attract foreign investment into Oman’s technology sector while providing startups with funding, expertise, and market access.
Golden Gate Ventures, which has backed around 100 companies since 2011 — including nine unicorns — views Oman as a promising innovation hub. Algerie Telecom launches $11m AI startup fund
Algeria’s state-owned telecom company, Algerie Telecom, has announced an $11 million investment fund to support startups in artificial intelligence, cybersecurity, and robotics.
The initiative was unveiled at the third edition of Algeria’s CTO Forum as part of the country’s national AI and digital transformation strategy.
The investment will support the establishment of 20,000 startups, alongside efforts to develop AI-focused universities, incubators, and a nationwide expansion of digital infrastructure aimed at strengthening Algeria’s technological ecosystem.
Syria’s economy could take 55 years to recover at current growth rates: UNDP
Updated 23 February 2025
Reem Walid
RIYADH: The war-torn economy of the Syrian Arab Republic will take decades to return to pre-conflict levels unless growth accelerates dramatically, according to a report by the UN Development Programme.
While the country’s gross domestic product has contracted to less than half its 2011 value and unemployment has tripled, the report suggests Syria could recover in a decade with a sixfold increase in annual economic growth.
The assessment, titled “The impact of the conflict in Syria: a devastated economy, pervasive poverty, and a challenging road ahead to social and economic recovery,” underscores the extensive economic and social toll of 14 years of war.
“At current growth rates, Syria’s economy will not regain its pre-conflict GDP level before 2080,” the report stated. Achieving recovery within 15 years would require an ambitious tenfold growth increase, bringing GDP to where it would have been without the conflict.
Deepening crisis
Nine out of 10 Syrians now live in poverty, and one in four are unemployed, according to the UNDP. The economy has suffered an estimated $800 billion in cumulative GDP losses since the war began. Public infrastructure has crumbled, exacerbating the crisis and prolonging instability.
The health sector is in collapse, with one-third of health centers damaged and almost half of ambulance services inoperative, the report added. Education has also been hit hard, with 40 percent to 50 percent of children aged 6 to 15 out of school.
Housing and utilities have been heavily damaged, with a third of all units affected, leaving 5.7 million Syrians in need of shelter. Over half of water and sewer systems are damaged or non-functional, affecting nearly 14 million people. Energy production has fallen 80 percent, slashing national grid capacity by over three-quarters.
As a result, Syria’s Human Development Index has fallen from 0.661 in 2010 to 0.557, dropping below its 1990 level when HDI was first recorded.
Recovery path
The UNDP report outlines a roadmap to accelerate economic recovery and restore stability. “Beyond immediate humanitarian aid, Syria’s recovery requires long-term investment in development to build economic and social stability for its people,” said Achim Steiner, UNDP administrator.
“Restoring productivity for jobs and poverty relief, revitalizing agriculture for food security, and rebuilding infrastructure for essential services such as healthcare, education, and energy are key to a self-sustaining future, prosperity, and peace.”
The report stresses the need for a clear national vision, institutional reforms, and improved market access. It calculates that at Syria’s current 1.3 percent annual growth rate, from 2018–2024, it would take 55 years to regain pre-conflict GDP levels. Achieving recovery in 15 years requires at least 5 percent annual growth, while catching up to a no-conflict scenario demands nearly 14 percent annual growth.
“Syria’s future hinges on a robust development recovery approach,” said Abdallah Al-Dardari, UNDP assistant administrator and director of the UNDP Regional Bureau for Arab States.
“This demands a comprehensive strategy addressing governance reform, economic stabilization, sector revitalization, infrastructure rebuilding, and strengthened social services. By implementing these interconnected reforms, we can help Syria regain control over its future, reduce reliance on external aid, and pave the way for a resilient and prosperous future for all in Syria.”
The UNDP assessment is part of a broader effort by the UN Country Team in Syria to shape early recovery and reconstruction initiatives.
Saudi Real Estate Refinance Co. raises $2bn in debut international sukuk
Issuance was oversubscribed six times, reflecting strong investor confidence and demand
It is part of SRC’s $5 billion international Sukuk program
Updated 23 February 2025
MIGUEL HADCHITY
RIYADH: The Saudi Real Estate Refinance Co., a Public Investment Fund subsidiary, has priced its first international sukuk issuance, raising $2 billion, boosting the local economy and attracting foreign investment.
SRC’s sukuk issuance supports Saudi Arabia’s Vision 2030 goals, including expanding the mortgage market, promoting homeownership, and attracting global investment.
According to a press release, the issuance — guaranteed by the Saudi government — was oversubscribed six times, reflecting strong investor confidence and demand from over 300 institutional investors worldwide.
“This marks a significant milestone in integrating the Saudi economy with global markets, attracting foreign direct investment, enhancing liquidity, and developing the secondary mortgage market in Saudi Arabia,” said the Minister of Municipalities and Housing and Chairman of SRC.
The sukuk, structured in two tranches with three- and ten-year maturities, is part of SRC’s $5 billion international sukuk program. The issuance will be listed on the International Securities Market of the London Stock Exchange, strengthening Saudi Arabia’s connection to global capital markets and enhancing liquidity in the Kingdom’s mortgage finance sector.
Majid Al-Hogail said the successful listing underscores Saudi Arabia’s commitment to developing its housing finance ecosystem.
He highlighted Saudi Arabia’s ambitious plans to expand the mortgage finance sector to SR1.3 trillion ($346.6 billion) by 2030, up from SR800 billion in 2024 and just SR200 billion in 2018.
The minister said mortgage financings now represent 23 percent of total bank assets, aligning with Vision 2030’s 70 percent homeownership rate target by the end of the decade. By the end of 2023, the homeownership rate had already reached 63.7 percent, surpassing initial projections.
SRC CEO Majid Al-Abduljabbar described the sukuk issuance as a testament to global investor confidence in Saudi Arabia’s economy.
“The listing of the sukuk program on the LSE not only strengthens SRC’s global presence and strategy to attract a diverse base of international investors, but also solidifies the company’s position as a key player in the mortgage finance market, paving the way for new strategic partnerships and high-quality international investments,” Al-Abduljabbar said.
SRC holds strong credit ratings from top agencies, including Fitch with an ‘A+’ and a stable outlook, S&P with an ‘A’ and a positive outlook, and Moody’s with an ‘A2’ coupled with a positive outlook.
“These ratings reinforce the company’s strong position in launching its first international sukuk program, which aligns with global sukuk market standards and best practices in Islamic finance,” the statement added.
The company, established by PIF in 2017 under the supervision of the Saudi Central Bank, has been working to provide liquidity to mortgage lenders and facilitate access to affordable housing finance in Saudi Arabia.
“SRC plays a key role in achieving the objectives of the Housing Program under Saudi Vision 2030, which aims to increase homeownership rates among Saudi citizens,” the company said.
In January, SRC, in partnership with Hassana Investment Co., launched the region’s first residential mortgage-backed securities to diversify the financial market and attract local and international investors.
The initiative supports the Kingdom’s growing real estate market, driven by increasing mortgage lending and strong demand for housing, aligning with Saudi Arabia’s long-term economic development objectives.
Dubai’s innovation hub led by Errol Musk promises a tech revolution
Updated 23 February 2025
Arab News
DUBAI: Errol Musk, the South African entrepreneur and father of US President Donald Trump’s top adviser Elon Musk, is bringing his vision for technological innovation and decentralized growth to the UAE with the launch of Musk Tower and the Musk Institute.
The project, spearheaded in partnership with the Al-Khaili Group, aims to establish a global hub for technology, renewable energy, and blockchain advancements, with the MuskIt token – $MUSKIT – playing a central role.
“On my last visit to the UAE, I was invited by entrepreneurs here to launch something that would leverage the many advantages this country offers in different areas and make use of my experience and understanding of technological issues as an electrical engineer myself,” Errol Musk told Arab News last week.
The Musk Tower will serve as a physical manifestation of the Musk Institute, a “think tank of excellence” designed to unite bright minds, investment opportunities and global influence. According to project documents, the institute will address industry challenges and global issues, providing a space where innovation can thrive and where new ideas can secure funding.
A key component of the ecosystem is the MuskIt token, a digital asset intended to facilitate innovation. MuskIt holders can expect exclusive access to events, programs and conferences at the Musk Tower, as well as early investment opportunities in projects backed by the tower’s crypto innovation fund. There are even potential plans being explored that could allow MuskIt holders to stake their tokens in exchange for potential shares in the Musk Tower, providing a tangible link between digital assets and real-world infrastructure.
Addressing concerns about the volatility often associated with cryptocurrency, Musk said the project is committed to regulatory compliance.
“The management will make sure that all the UAE and international rules and regulations are strictly adhered to so that the token not only thrives and benefits investors but also boosts the reputation and reliability of the entire crypto industry,” he said.
The tower will feature an investment fund to back early-stage crypto and blockchain projects, innovation labs for research and development, and a global partnership network connecting blockchain projects with venture capital and tech innovators.
In a statement, Mubarak Al-Khaili, a partner of the Musk Tower project, said: “The MuskIt token and Musk Tower are about creating the foundations for a new era of decentralized finance, global partnerships and technological growth. This is just the beginning of what’s to come. Our goal is to create a lasting legacy that will support rising tech and empower the next generation of creators.”
The Musk Institute, as envisioned under the chairmanship of Musk in project documents, will also focus on tackling real-world challenges such as water scarcity, lithium harvesting, quantum energy transfers, Internet of Things, and bringing digital connectivity and banking to Africa.
Musk sees the UAE as a strategic location for nurturing the next generation of entrepreneurs and tech leaders. “The location of Musk Tower and the Musk Institute in the UAE, an increasingly important crossroads of the world and a supporter of innovation and advanced technologies, is a strategic one,” he told Arab News.
“It will be a magnet for local and regional entrepreneurs as well as bright minds from countries like India and China which are geographically much closer to Dubai than to Europe or the US.”
Musk believes that with over 50,000 current holders, the MuskIt token is more than just a meme coin; it is backed by the Musk family and will serve as the official coin of the Musk Institute.