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.
 


Bahrain foreign and local currency sovereign credit rating at ‘B+/B’: S&P 

Bahrain foreign and local currency sovereign credit rating at ‘B+/B’: S&P 
Updated 9 sec ago
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Bahrain foreign and local currency sovereign credit rating at ‘B+/B’: S&P 

Bahrain foreign and local currency sovereign credit rating at ‘B+/B’: S&P 

RIYADH: Continued fiscal reform efforts, stable economic diversification, and financial support from Gulf Cooperation Council partners have led S&P Global Ratings to affirm Bahrain’s long- and short-term foreign and local currency sovereign credit ratings at “B+/B.”

The American agency also maintained the nation’s transfer and convertibility assessment at “BB-.”

The ratings affirmation reflects Bahrain’s progress in strengthening non-oil revenue, commitment to structural reforms under the Fiscal Balance Program, and ongoing investment in sectors such as manufacturing and tourism. 

S&P also pointed to the country’s improved national accounts framework and stable regional alliances as key factors underpinning its sovereign credit profile, as well as emphasizing the importance of Bahrain’s strategic regional alliances in supporting its creditworthiness. 

“Our rating on Bahrain reflects supportive relations with GCC sovereigns,” said the report.

These relationships have resulted in significant financial assistance, including a $10.2 billion support package pledged by Saudi Arabia, the UAE, and Kuwait in 2018. 

The report noted that in 2024, Saudi Arabia’s Public Investment Fund formalized a $5 billion specialized investment vehicle specifically for Bahrain to “develop tourism, transportation, infrastructure, and the environment.” 

The country’s strategy has included non-oil revenue reforms under the government’s Fiscal Balance Program 2018–2024, S&P stated. 

These measures include the introduction of a value-added tax in 2019 — doubled to 10 percent in 2022 — a 15 percent domestic minimum top-up tax for multinational enterprises, planned corporate income tax for local companies, and an expanded scope for excise taxes. 

Recent revisions to Bahrain’s national accounting methodology have improved fiscal metrics by increasing nominal gross domestic product figures, thereby improving ratios such as debt-to-GDP, S&P explained. 

Across the Gulf region, sovereign credit ratings have generally reflected strong fiscal fundamentals and progress on economic reform. 

In March, S&P upgraded Saudi Arabia’s long-term rating to “A+” from “A,” citing sustained reforms under Vision 2030. Kuwait’s ratings were affirmed at “A+/A-1” in June, supported by robust fiscal and external positions. 

Oman received an upgrade to “BBB-” in September, reflecting fiscal consolidation and a reduction in public debt. 

Qatar’s “AA/A-1+” rating was affirmed in November, underpinned by its substantial hydrocarbon reserves. 

Against this backdrop, Bahrain’s affirmed rating reflects continued reform but highlights greater fiscal and external vulnerabilities. 

Despite these supportive elements, the agency revised Bahrain’s outlook to negative from stable. 

“The negative outlook reflects increasing risks to the fiscal position and the government’s ability to service and refinance debt.”

The agency stated that fiscal reform measures “may prove insufficient to put debt to GDP on a downward path,” while noting that “Bahrain’s foreign currency reserve position remains weak.” 

S&P projects the fiscal deficit will widen to “about 7.0 percent of GDP in 2025, compared with 5.2 percent in 2024 and 4.9 percent in our previous review.” 

The agency attributes this to “lower oil prices and ongoing field maintenance at the key Abu Sa’fah oil field, risks to funding costs amid market volatility, and higher social spending.” 

It added that “we recently revised our Brent oil price assumptions down to $65 per barrel in 2025, and $70/bbl over the medium term, relative to about $80/bbl in 2024.” 

Looking ahead, S&P anticipates the deficit will tighten, stating: “We anticipate the fiscal deficit will narrow toward 4.4 percent by 2028.” 

This is expected to result from “a recovery in oil production as maintenance on the Abu Sa’fah oil field, shared with Saudi Arabia, is completed and non-oil revenue continues to grow.” 

However, Bahrain’s rising debt burden remains a concern, according to the report, which said: “High debt levels continue to constrain the government’s fiscal flexibility.” 

Gross general government debt is projected to rise from 130 percent of GDP in 2024 to 144 percent by 2028, factoring in 3 percent of GDP in off-balance-sheet spending. 

“Over the last three years, debt to GDP has risen by about 18 percentage points after including overdraft facilities from the Central Bank of Bahrain, totaling 24 percent of GDP in 2024,” said S&P, adding that debt-servicing costs have also increased to approximately 29 percent of government revenue, one of the highest levels among sovereigns rated by the agency. 

Low foreign currency reserves also weigh on Bahrain’s external profile. “The government’s foreign currency reserve account has historically been restored via external issuance and fiscal support from other GCC sovereigns,” said the report. 

Usable reserves are estimated at “about negative $15 billion–$16 billion, after deducting the monetary base and foreign currency swaps with domestic banks, which we regard as encumbered.” 

Upcoming external government debt maturities heighten refinancing risks, said S&P, adding that over the next 12 months these will total $3.6 billion, including sukuk and bond payments due between August and May 2026. 

“We anticipate Bahrain will seek to refinance these maturities to avoid a significant drop in foreign currency reserves,” said the report. 

S&P noted that it “could lower the rating over the next six to 12 months if the government is unable to significantly reduce the pace of government debt accumulation, which has been higher than anticipated in recent years.” 

The rating could also come under pressure if there were a deterioration in foreign currency reserves due to weaker market access for funding or if the agency believed additional funding support for the GCC would not be forthcoming. 

Conversely, the outlook could be stabilized with meaningful progress on fiscal reforms. 

“We would revise the outlook to stable if the government were to implement fiscal reforms to materially increase the revenue base and narrow fiscal deficits, and if we saw improving foreign currency reserves,” said S&P. 


Pakistan’s bonds dive as tensions rise with India

Pakistan’s bonds dive as tensions rise with India
Updated 24 min 28 sec ago
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Pakistan’s bonds dive as tensions rise with India

Pakistan’s bonds dive as tensions rise with India
  • The 2036 maturity fell the most, shedding over 4 cents to be bid at 74 cents on the dollar
  • Tensions escalate with India following worst attack on civilians in Indian-administered Kashmir in years

LONDON: Pakistan’s dollar-denominated government bonds dropped more than 4 cents on Thursday, Tradeweb data showed, as tensions with neighboring India escalated.

The 2036 maturity fell the most, shedding over 4 cents to be bid at 74 cents on the dollar.

Gunmen on Tuesday killed 26 people in Indian Kashmir, the worst attack on civilians in the country in nearly two decades.

Indian police on Thursday said two of the three suspected militants “involved in” the attack were Pakistani nationals, and the country suspended the Indus Waters Treaty, a move Pakistan called an act of “water warfare.” 


World Bank forecasts MENA growth at 2.6% in 2025, 3.7% in 2026 

World Bank forecasts MENA growth at 2.6% in 2025, 3.7% in 2026 
Updated 34 min 30 sec ago
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World Bank forecasts MENA growth at 2.6% in 2025, 3.7% in 2026 

World Bank forecasts MENA growth at 2.6% in 2025, 3.7% in 2026 

RIYADH: The Middle East and North Africa is on track for a modest economic recovery after 2024’s muted growth, with real gross domestic product projected to rise 2.6 percent in 2025 and 3.7 percent in 2026, the World Bank has said. 

Its latest economic outlook, titled “Shifting Gears: The Private Sector as an Engine of Growth in the Middle East and North Africa,” attributed the improved forecast to the easing of OPEC+ production cuts, a rebound in agricultural output across oil-importing economies, and resilient private consumption. 

This follows growth of just 1.9 percent in 2024, with the report noting that while the recovery is underway, the region remains vulnerable to geopolitical tensions, climate-related disruptions, and volatility in global oil and trade markets. 

Ousmane Dione, World Bank vice president for the Middle East and North Africa, said in the report’s foreword: “Our macroeconomists forecast a moderate acceleration of growth in 2025 and 2026.

“Realizing the potential of the region will depend on navigating risks and advancing much-needed reforms.” 

He added that the economic outlook remains uncertain, with persistent challenges and fragility shaping the region’s trajectory.

“While some positive signs are emerging in conflict-affected economies, the situation remains fragile, and deep structural challenges persist amidst global policy uncertainty,” Dione noted. 

The report added that economic activity in the Gulf Cooperation Council countries, including Saudi Arabia, is expected to benefit from rising oil output following OPEC+’s decision to accelerate production increases from May. 

Saudi Arabia’s GDP is projected to grow by 2.8 percent in 2025, compared to 1.3 percent in 2024, with growth driven by non-oil sectors, the World Bank said. 

For oil-importing countries such as Egypt and Morocco, the easing of inflation and improvements in agriculture are expected to support higher growth. 

Egypt’s growth is forecast to reach 3.8 percent in the fiscal year 2025, while Morocco is expected to grow by 3.4 percent. 

The World Bank report pointed out that the region’s long-standing low productivity is partly due to the lack of a dynamic private sector. 

It noted that few firms invest, innovate or provide formal training, while a significant divide persists between a small formal sector and a large informal one. 

“A dynamic private sector is essential to unlocking sustainable growth and prosperity in the region,” said Roberta Gatti, World Bank chief economist for MENA. 

“To realize this potential, governments across the region must embrace their role as stewards of competitive markets,” she added. 

The report also underscored the need to better harness the region’s human capital, particularly by improving female participation in the labor market. 

“The region has long underused human capital. Women are largely left out of the labor market. Businesses can find more talent by attracting women leaders, who in turn will hire more women,” said Dione. 

“Closing the gender employment gap could substantially boost income per capita by around 50 percent in a typical MENA economy,” he added. 

The report has called for increased competition, improvements in the regulatory environment, better data access, and a reconsideration of the role of state-owned enterprises. 

It also highlighted the need for firms to adopt improved management practices and leverage the untapped potential of women entrepreneurs and employees. 

While the outlook signals a cautious recovery, the World Bank stressed that unlocking the full potential of the private sector is essential to achieving long-term, inclusive economic growth across the region.


World Bank adds Bayer, Hyatt and other CEOs to private sector initiative

World Bank adds Bayer, Hyatt and other CEOs to private sector initiative
Updated 24 April 2025
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World Bank adds Bayer, Hyatt and other CEOs to private sector initiative

World Bank adds Bayer, Hyatt and other CEOs to private sector initiative

LONDON: The World Bank has added four top executives, including Bayer AG CEO Bill Anderson and Hyatt Hotels CEO Mark Hoplamazian, to an initiative working to address barriers to private sector investment in developing countries.

World Bank President Ajay Banga, former CEO of Mastercard, launched the Private Sector Investment Lab shortly after taking office in June 2023, assembling 15 business leaders to brainstorm ways to create more jobs in developing countries.

Banga has worked to shift the bank’s focus to look more at the creation of jobs, underscoring a huge gap between the 1.2 billion young people poised to enter the workforce in developing countries over the next decade and the far fewer 420 million jobs on the horizon.

“You can’t get jobs without development, and you don’t get poverty alleviation and development without jobs,” he told CNBC in an interview on Wednesday.

The next phase will aim at implementing proven solutions at scale, the bank said, identifying five priorities — regulatory and policy certainty, political risk insurance, foreign exchange risk, junior equity capital and securitization.

“With the expanded membership, we are mainstreaming this work across our operations and tying it directly to the jobs agenda that is driving our strategy,” Banga said in a statement. “It’s about helping the private sector see a path to investments that will deliver returns, and lift people and economies alike.”

The Lab’s founding members included senior executives from AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek, and Three Cairns Group. It is chaired by Shriti Vadera, Chair of Prudential Plc.

The new members, in addition to Anderson and Hoplamazian, bring in Sunil Bharti Mittal, chair of Bharti Enterprises, and Aliko Dangote, president & CEO of Dangote Group.

The added members come from sectors critical to job creation, such as infrastructure, agribusiness, healthcare, tourism, and manufacturing — all industries well-versed in creating broad-based employment and economic opportunity.

The bank has already begun implementing the five priorities identified by the Lab, including work to streamline guarantee instruments, which resulted in a 30 percent increase in issuance and bolstered investor confidence.

In the area of foreign exchange risk, the bank said it was scaling local currency financing to deepen domestic capital markets, noting that its International Finance Corporation arm last year committed one-third of its long-term financing in local currency and aimed to reach 40 percent by 2030.

The bank is also working with institutional investors such as Standard & Poors and BlackRock to standardize and securitize portfolios, unlocking capital from pension funds, insurers, and sovereign wealth funds, it said.


Oil Updates — crude steadies after 2% drop on potential OPEC+ output increase

Oil Updates — crude steadies after 2% drop on potential OPEC+ output increase
Updated 24 April 2025
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Oil Updates — crude steadies after 2% drop on potential OPEC+ output increase

Oil Updates — crude steadies after 2% drop on potential OPEC+ output increase

BEIJING: Oil prices ticked up on Thursday after falling nearly 2 percent in the previous session, with investors weighing a potential OPEC+ output increase against conflicting tariff signals from the White House and ongoing US-Iran nuclear talks.

Brent crude futures rose 8 cents, or 0.12 percent, to $66.20 a barrel by 8:05 a.m. Saudi time, while US West Texas Intermediate crude gained 9 cents, or 0.14 percent, to $62.36 a barrel.

Prices settled down 2 percent in the previous trading session after Reuters reported that several OPEC+ members would suggest the group accelerate oil output increases for a second month in June, citing three sources familiar with the OPEC+ talks.

“While a risk-on move lifted most risk assets yesterday, oil was left behind thanks to OPEC+ discord,” ING analysts wrote in a note.

Kazakhstan, which produces about 2 percent of global oil output and has repeatedly exceeded its quota over the past year, said it would prioritize national interest, rather than that of OPEC+ in deciding production levels, Reuters reported on Wednesday.

There have previously been disputes among OPEC+ members over compliance with production quotas, one of which resulted in Angola exiting OPEC+ in 2023.

“Further disagreement between OPEC+ members is a clear downside risk, as it could lead to a price war,” the ING analysts said.

Signs that the US and China could be moving closer to trade talks supported prices. The Wall Street Journal reported that the White House would be willing to lower its tariffs on China to as low as 50 percent in order to open up negotiations.

US Treasury Secretary Scott Bessent said on Wednesday that current import tariffs — of 145 percent on Chinese products headed into the US and 125 percent on US products headed into China — were not sustainable and would have to come down before trade talks between the two sides could begin.

White House Press Secretary Karoline Leavitt later told Fox News, however, that there would be no unilateral reduction in tariffs on goods from China.

Rystad Energy analysts say a prolonged US-China trade war could cut China’s oil demand growth in half this year to 90,000 barrels per day from 180,000 bpd.

Trump is also mulling tariff exemptions on car part imports from China, the Financial Times reported on Wednesday.

Potentially putting downward pressure on oil prices, the US and Iran will hold a third round of talks this weekend on a possible deal to reimpose restraints on Tehran’s uranium enrichment program. The market is watching the talks for any sign that a US-Iran rapprochement could lead to the easing of sanctions on Iran oil and boost supply.

But the US on Tuesday put fresh sanctions on Iran’s energy sector, which Iran’s foreign ministry spokesperson said showed a “lack of goodwill and seriousness” over dialogue with Tehran.