Startup Wrap: AI investments flourish across the region

Startup Wrap: AI investments flourish across the region
Intelmatix provides accessible AI and advanced analytics to improve operations, productivity, growth, and sustainability. (SPA)
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Updated 01 October 2024
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Startup Wrap: AI investments flourish across the region

Startup Wrap: AI investments flourish across the region
  • Shorooq Partners fuels Intelmatix’s $20 million series A round

CAIRO: Increased awareness about the implications of artificial intelligence across the public and private sector is evident in Saudi Arabia as startups continue to raise large sums.

The latest AI funding round in the Kingdom was bolstered by Abu Dhabi’s venture capital firm Shorooq Partners to fuel Saudi-based Intelmatix’s $20 million series A round.

Several Saudi firms also joined in with state-owned Saudi Venture Capital Co. participating in the investment alongside Saudi Technology Ventures, Olayan Financing Co., and Sultan Holdings, as well as Rua Growth Fund, and Kuwait’s Zain Ventures.

This investment reflects growing confidence in Intelmatix’s potential, aligning with Saudi Arabia’s strategic focus on AI, underscored by the launch of a $40 billion fund dedicated to the sector earlier this year.

The fund aims to establish Saudi Arabia as the world's largest AI investor, promoting economic diversification beyond oil.

Founded in 2021 by Massachusetts Institute of Technology scientists Anas Al-Faris, Almaha Al-Malki, and Ahmad Alabdulkareem, Intelmatix provides both public and private sectors with accessible AI and advanced analytics to improve operations, productivity, growth, and sustainability.

The platform addresses the regional AI gap with its Enterprise Decision Intelligence Platform, and is designed to be user-friendly for a wide range of enterprise users – maximizing impact and adoption while bypassing the need for advanced AI skills.

“EDIX is the one-stop shop for organizations needing AI capabilities to enhance productivity without worrying about the AI skills shortage,” Al-Faris, the company’s CEO, said.

The company claims it is one of the first to be supported by Saudi Arabia’s National Technology Development Program, which aims to empower AI startups and foster AI talent development in the country.

Synapse Analytics raises $2m to expand AI solutions

Egypt-based Synapse Analytics, a startup focused on AI-driven decision-making solutions, has raised $2 million in a funding round led by Silicon Badia and Hub71.

This investment aims to expand Synapse’s AI technologies across the Gulf region and Africa, particularly targeting the financial sector.

The company, part of Hub71’s tech ecosystem, addresses financial inclusion by offering AI tools for credit scoring, cross-selling, and dynamic pricing, among other applications.

In a press release, Synapse Analytics CEO Ahmed Abaza emphasized the transformative potential of AI, stating that it is a catalyst for making financial inclusion a reality in the MEA region.

Synapse Analytics offers solutions such as Konan, a machine learning operations platform for integrating AI into financial institutions’ workflows, and Doxter, a document extraction and process automation platform.

Co-Founder Galal El-Beshbishy highlighted the company’s focus on integrating AI seamlessly with existing systems to improve decision-making processes.

Synapse claims it has established partnerships with major banking product providers like Amazon Web Services and Crealogix, positioning itself as a key player in the region’s AI-driven transformation.

The company said its efforts have been recognized globally, including being named among the top 100 companies leading the fourth industrial revolution by the World Economic Forum.

Educatly secures $2.5m funding round to expand operations

Egyptian network for higher education Educatly has raised $2.5 million in a funding round led by TLcom Capital and Plus VC, with participation from Egypt Venture and the HBAN syndicate.

This investment supports Educatly’s mission to help students navigate educational opportunities worldwide, utilizing advanced AI and language models to provide accurate information about schools, universities, programs, and scholarships.

Since its launch in 2020, Educatly has grown its presence across the Middle East and Africa, featuring over 1,100 universities in 90 countries.

“Our aim was to bridge the gap between students' educational needs and available opportunities. This investment reaffirms our commitment to continue working towards our vision and strategic goals,” CEO and co-founder Mohmmed El-Sonbaty, said.

The platform plans to expand operations in key markets and enhance services to reach more students globally.

Co-founder Abdelrahman Ayman emphasized the platform’s focus on helping students choose fields of study, find ideal programs, and connect with peers worldwide.

Educatly claims it has already reached over 3 million students and aims to increase this number to 7 million by the end of 2024.

Cartona secures $8.1m series A extension to boost growth

Cartona, a business-to-business platform digitizing Egypt’s traditional trade market, has completed an $8.1 million series A extension.

The round was led by Algebra Ventures, with participation from existing investors Silicon Badia and the SANAD Fund for micro, small and medium-sized enterprises.

This extension follows Cartona’s $12 million series A round led by Silicon Badia, leaving the company in a strong cash position.

The new equity capital of $5.6 million is allocated to accelerate growth across various verticals, including fast-moving consumer goods and hotels, restaurants, cafes, and catering, as well as expanding market share, and exploring regional expansion opportunities in the Middle East and North Africa region.

The round also includes $2.5 million in debt capital from Camel Ventures and GlobalCorp, aimed at addressing working capital needs for local retailers.

“Our operational and financial metrics are progressing positively, attracting capital from both existing and new investors,” CEO and co-founder Mahmoud Talaat said.

Cartona claims its platform currently serves over 188,000 retailers in 17 Egyptian cities, with a growing presence in the HORECA sector.

Velents closes investment round focused on gender equality

Velents has successfully closed a special investment round with Women Collective, which saw over 80 percent participation from women investors and preferential terms for women.

Despite increasing female participation in the MENA region, women still hold only 10 percent of senior roles in private equity and venture capital, Velents’ stated in a press release.

This funding round aims to accelerate the growth of women as investors and board members.

Velents, leveraging AI to enhance organizational productivity, focuses initially on its flagship product, Velents Hiring.

The capital infusion aims to propel the company’s mission to innovate and lead in transforming workplace dynamics.

“This investment is a validation of our vision and a step forward in creating a more inclusive investment ecosystem,” co-founder Mohamed Gaber stated.

Romanna Dada, founding partner of Women Collective, noted the importance of the round.

“This investment marks a crucial step towards gender equality in the investment landscape, setting a precedent for others to follow,” Dada said.

The round is expected to inspire further initiatives that empower women investors and drive positive change in the tech industry.

MNT-Halan acquires Turkey’s Tam Finans to expand digital financial services

MNT-Halan, Egypt’s largest non-bank financial institution and fintech company, has acquired Tam Finans, a leading commercial finance firm in Turkey, from the Actera Group and the European Bank for Reconstruction and Development.

The acquisition will enhance MNT-Halan’s reach in Turkey, a market with significant growth potential due to its population of 85 million and a low household debt-to-gross domestic product ratio.

MNT-Halan aims to leverage Tam Finans’ credit models and distribution capabilities with its technology and financial services to expand its product offerings and customer base.

“Combining Tam Finans’ capabilities with our technology and financial muscle will help complete the product offering and give greater confidence to all its stakeholders,” MNT-Halan’s founder and CEO Mounir Nakhla said.

Tam Finans CEO Hakan Karamanli expressed enthusiasm for joining MNT-Halan, highlighting the shared ethos of expanding access to innovative financial services.
 


Saudi Arabia leads MENA startup funding in April with $158.5m  

Saudi Arabia leads MENA startup funding in April with $158.5m  
Updated 05 May 2025
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Saudi Arabia leads MENA startup funding in April with $158.5m  

Saudi Arabia leads MENA startup funding in April with $158.5m  

RIYADH: Saudi Arabia led startup funding across the Middle East and North Africa in April 2025, attracting $158.5 million across eight deals — accounting for more than two-thirds of the region’s total investment for the month. 

The Kingdom’s dominant performance was largely driven by iMENA Group’s $135 million pre-initial public offering round, placing it ahead of the UAE, which followed with $62 million raised across nine startups. 

In total, MENA startups secured $228.4 million in April through 26 deals, marking a 105 percent increase from March and nearly triple the amount raised in April 2024, according to Wamda’s monthly report.  

Notably, the month’s funding activity featured no debt financing.

“Interestingly, the absence of debt-financed deals in April highlights growing investor confidence in equity-based funding — a trend reflecting a healthier capital environment,” the report stated.  

Morocco ranked third regionally, raising $4 million across two startups, while Egypt lagged behind with just $1.5 million secured by four companies. 

Early-stage ventures led in deal volume, bringing in $49 million through 20 transactions. Late-stage activity was concentrated entirely in iMENA’s pre-IPO round. 

By sector, fintech remained the top draw for investors, attracting $44 million across seven transactions. Traveltech also gained momentum, driven by HRA Experience’s deal, while e-commerce startups raised $2.5 million across three deals. 

Software-as-a-service ventures made a comeback after a quiet first quarter, securing $1.8 million from three transactions.  

In terms of business models, business-to-business startups dominated, raising $180 million across 12 deals.  

Business-to-consumer ventures followed with $43 million from seven transactions, while six companies operating both B2B and B2C models accounted for the rest of the disclosed funding. 

Gender disparities in startup funding persisted in April. Female-led startups secured less than $500,000 in total, while male-founded ventures captured 97 percent of all disclosed capital. Startups co-founded by men and women raised an additional $6.5 million. 


Closing Bell: Saudi main index closes in green at 11,422 

Closing Bell: Saudi main index closes in green at 11,422 
Updated 05 May 2025
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Closing Bell: Saudi main index closes in green at 11,422 

Closing Bell: Saudi main index closes in green at 11,422 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 11.45 points, or 0.10 percent, to close at 11,422.95. 

The total trading turnover of the benchmark index was SR5.21 billion ($1.39 billion), as 153 stocks advanced, while 84 retreated. 

The Kingdom’s parallel market, Nomu, also rose, gaining 129.67 points, or 0.46 percent, to close at 28,142.99. This comes as 41 of the listed stocks advanced, while 33 retreated. 

The MSCI Tadawul Index increased by 4.27 points, or 0.29 percent, to close at 1,455.44. 

The best-performing stock was Mouwasat Medical Services Co., with its share price surging 9.97 percent to SR78.30. 

Other top performers included Fawaz Abdulaziz Alhokair Co., which saw its share price rise 9.92 percent to SR14.18, and Saudi Reinsurance Co., which posted a 9.71 percent gain to reach SR53.10. 

Umm Al Qura for Development and Construction Co. recorded the day’s steepest decline, with its share price slipping 3.47 percent to SR25.05.   

Sahara International Petrochemical Co. and Saudi Steel Pipe Co. also saw declines, with their shares dropping by 2.82 percent and 2.58 percent to SR17.90 and SR52.90, respectively.   

On the announcements front, Ades Holding Co. reported interim financial results for the first three months of the year, posting a net profit of SR196.6 million — a 6.3 percent decline compared to the previous quarter. It said that the drop in net profit reflects an increased ratio of depreciation and tax costs to revenue in this period.   

The company’s total comprehensive income saw a 45.7 percent quarter-on-quarter decrease in the first quarter of 2025 to reach SR170.8 million.  

Ades Holding Co.’s share price traded 0.94 percent lower on the main market during today’s session to reach SR14.78.   

In another announcement, Makkah Construction and Development Co. reported a 32.7 percent year-on-year increase in net profit for the same period, reaching SR150 million.   

The company credited the growth to higher revenues from the hotel and towers this quarter, driven by the inclusion of the last nine days of Ramadan, increased mall revenues, and gains from financial assets classified at fair value through profit or loss.   

Similarly, the company’s total comprehensive income rose to SR758 during the quarter, up from SR576 last year.   

The MCDC’s share price traded 1.5 percent higher to reach SR108.20. 


Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth

Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth
Updated 05 May 2025
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Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth

Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth

RIYADH: Saudi Arabia recorded a deficit of SR58.7 billion ($15.65 billion) in the first quarter of 2025, driven by declining oil revenues and increased spending to support Vision 2030 development initiatives, according to the Finance Ministry.

According to the quarterly budget performance report, total revenues reached SR263.61 billion, marking a 10.16 percent decline compared to the same period last year.

The drop is primarily attributed to reduced oil revenues, which fell 17.65 percent year on year to SR149.81 billion, driven by ongoing OPEC+ production cuts that curbed export volumes despite relatively steady global oil prices.

Oil income accounted for 56 percent of total government revenues, down from 62 percent in Q1 2024.

In contrast, non-oil revenues continued to grow modestly, rising 2.06 percent to SR113.81 billion, underpinned by structural economic reforms and the Kingdom’s diversification agenda under Vision 2030.

Taxation on goods and services remained the largest contributor to non-oil income, generating SR71.56 billion—up 2.37 percent year on year. Other non-oil revenue sources, including fees and investment returns, added SR25.41 billion, making up 22.3 percent of the non-oil total.

Total government expenditures in the quarter rose 5.39 percent year on year to SR322.32 billion. The increase reflects Saudi Arabia’s continued investment in strategic initiatives and priority development projects aligned with Vision 2030 goals.

Compensation for government employees remained the largest expenditure category, totaling SR146.09 billion—an annual increase of 6.24 percent—and accounting for 45.3 percent of total spending.

Expenditures on goods and services amounted to SR64.63 billion, or 20 percent of the quarterly total, while capital spending represented 8.6 percent. Other operational costs comprised 10.6 percent.

The first quarter deficit was entirely financed through debt instruments, pushing Saudi Arabia’s total public debt to SR1.33 trillion—up 19.08 percent from a year earlier.

Of this, 60 percent was sourced domestically, with the remainder attributed to external borrowing, in line with the Kingdom’s debt diversification strategy.

Despite the fiscal shortfall, the ministry noted that the quarterly figures remain consistent with the government’s 2025 budget plan. Revenues in the first quarter represent 22.3 percent of the full-year target, while expenditures account for 25 percent of the planned annual spend.

Looking ahead, Saudi Arabia’s fiscal outlook may receive a boost from higher oil output. OPEC+ recently announced plans to accelerate the unwinding of prior production cuts, including a June increase of 411,000 barrels per day. Combined with earlier boosts in April and May, the group plans to restore a total of 960,000 barrels per day—reversing 44 percent of the 2.2 million bpd reduction agreed upon in December 2024.


Saudi Aramco raises June oil prices for Asian markets

Saudi Aramco raises June oil prices for Asian markets
Updated 05 May 2025
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Saudi Aramco raises June oil prices for Asian markets

Saudi Aramco raises June oil prices for Asian markets

RIYADH: Saudi Aramco has increased its official selling price for crude oil destined for Asia in June, ending a two-month streak of price cuts, the company confirmed in an official statement on Sunday.

The state-owned oil giant raised the price of its benchmark Arab Light crude by $0.20, setting it at $1.40 per barrel above the average of Oman and Dubai crude prices.

The adjustment comes despite persistent downward pressure on global oil markets due to concerns over rising supply and a fragile demand outlook.

The move follows Saturday’s announcement from the OPEC+ alliance, which agreed to boost oil production for a second consecutive month. The group, which includes both OPEC members and key allies like Russia, plans to increase output by 411,000 barrels per day in June.

Market observers are now closely watching the outcome of the next OPEC+ meeting, scheduled for May 5, which will further clarify the group’s production strategy heading into summer.

Saudi Aramco prices its crude oil across five density-based grades: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).

The company’s monthly pricing decisions impact the cost of around 9 million barrels per day of crude exported to Asia and serve as a pricing benchmark for other major regional producers, including Iran, Kuwait, and Iraq.

In the North American market, Aramco set the May OSP for Arab Light at $3.40 per barrel above the Argus Sour Crude Index.

Aramco determines its OSPs based on market feedback from refiners and an evaluation of crude oil value changes over the past month, taking into account yields and product prices.


UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global
Updated 05 May 2025
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UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

RIYADH: The non-oil private sectors of the UAE, Kuwait, and Qatar continued their expansion in April, supported by strong demand, improving output, and stable employment conditions, according to the latest Purchasing Managers’ Index surveys released by S&P Global.

In the UAE, the headline PMI held steady at 54 for a second consecutive month, reflecting continued momentum in the country’s non-oil economy. While output growth eased to a seven-month low, firms ramped up hiring at the fastest rate in nearly a year to manage capacity pressures. New orders surged, underpinned by the strongest international demand in five months.

This robust performance aligns with a wider regional trend of economic diversification, as Gulf nations—including Saudi Arabia—work to reduce their long-standing reliance on oil revenues.

“The April PMI results signaled a notable uptick in hiring activity across the non-oil private sector,” said David Owen, senior economist at S&P Global Market Intelligence.

“After several months of mild increases in payroll numbers, despite robust sales growth, job creation rose to its highest level in 11 months.”

Owen noted that the hiring push was largely aimed at easing backlogs, which, while still rising, did so at the slowest pace in six months. “That said, employment growth was still modest overall, adding to suggestions that some firms may be struggling to recruit,” he added.

Any PMI reading above 50 indicates expansion in the non-oil private sector, while a figure below 50 denotes contraction.

Business confidence in the UAE climbed to its highest level so far in 2025, as firms cited strong demand pipelines and positive expectations. Input purchases rose again in April, though at a slower pace than March, which had marked a 68-month high.

“Firms are hopeful that elevated demand levels and strong pipelines, as characterized by steeply rising backlogs, should propel activity higher in the coming months,” Owen said.

Despite increased purchasing and faster supplier delivery times, stock levels remained largely unchanged for the second consecutive month. Business optimism also rose for the third straight month in April.

In Dubai, operating conditions in the non-oil private sector improved at a slower pace due to weaker growth in new business inflows. Nonetheless, order books continued to expand sharply, driving strong overall business activity. Employment rebounded in April after a brief dip in March, as companies aimed to boost capacity. However, firms in Dubai expressed subdued confidence about future activity, with sentiment among the lowest on record.

Kuwait sees strongest output

Kuwait's non-oil private sector saw significant gains in April, with the country’s PMI rising to 54.2 from 52.3 in March—marking one of the sharpest expansions on record since the survey began in 2018.

“It was a bumper start to the second quarter of 2025 for non-oil companies in Kuwait, with a further influx of new orders leading companies to expand output at one of the sharpest rates since the survey began,” said Andrew Harker, economics director at S&P Global Market Intelligence.

The expansion was driven by robust new order growth, supported by competitive pricing and strategic marketing efforts. However, firms faced rising input costs that made it harder to maintain price stability.

While employment rose only marginally, the minimal hiring contributed to a further buildup in outstanding work.

“It remains to be seen, however, whether firms will be able to keep restricting selling prices in a scenario where input costs are rising sharply,” Harker noted. “The coming months will illustrate the extent to which companies are happy to see margins come under pressure in order to keep orders flowing in.”

Kuwaiti firms also reported a notable increase in export orders. Optimism about future output remained high, supported by competitive strategies, product development, and marketing.

Qatar growth slows slightly

Qatar’s non-oil sector saw a slight dip in overall momentum in April, with its PMI falling to 50.7 from 52 in March. Despite the decline, the index stayed above the neutral 50 mark for the 16th consecutive month, reflecting continued—if slower—growth.

Output among Qatari non-energy firms rose for the first time in 2025, but the sector faced a drop in new business and a cooling labor market.

“The PMI indicated continuing growth of the non-energy private sector economy at the start of the second quarter, but there was a loss of momentum owing mainly to a renewed reduction in new business and slower employment growth,” said Trevor Balchin, economics director at S&P Global Market Intelligence.

“The latest figure of 50.7 was the lowest in three months and below the long-run trend level of 52.3, as weaker demand offset an increase in total output.”

Growth was led by the manufacturing, services, and wholesale and retail sectors, while construction activity remained weak despite signs of stabilization.

Job creation remained positive across sectors, although April saw the slowest employment growth since August 2024.

“The employment component remained elevated in April, indicating further strong jobs growth. That said, there was evidence that the recent labor market boom was easing, with the rate of job creation down at an eight-month low,” Balchin said.

Wage growth also slowed to a five-month low but remained among the strongest since the survey’s inception in 2017.

Looking ahead, Qatari businesses maintained optimism for the year ahead, citing growth in real estate, infrastructure development, tourism, and a rising expatriate population as key drivers.