Out of the shadow, Egypt money-pooling apps thrive
Participants put an equal amount each month in a pot and take turns to collect the sum that has accumulated
Updated 07 November 2021
Reuters
Cash-strapped Egyptians fearful of banks have long relied on a "gameya" to access money in time of need, but now tech startups are cashing in on the age-old money-pooling association.
Navigating an app with strangers is "easier and safer" than the traditional face-to-face practice, said one user, Menna Shaarawi, 31.
"I receive the money in my bank account without any delays and I don't have to chase after people to get what's owed to me. It's perfect really," the marketing manager told AFP about her use of the ElGameya (association in Arabic) app, which is quickly rising in popularity.
Dina Rabie, an economist and lecturer at the British University in Egypt, explained that the gameya is "more of a social norm" in the country where the practice dates back to at least the turn of the 20th century.
The cooperative system that allows people to save and borrow money is popular in parts of the world, including Africa and Latin America.
Participants put an equal amount each month in a pot and take turns to collect the sum that has accumulated.
On average, a gameya lasts between five and 20 months and is not limited to a particular economic class, Rabie said.
Almost 30 percent of Egypt's 102-million-strong population lives below the poverty line, according to state figures. Less than a third of Egyptians have bank accounts, a 2017 World Bank report said.
The gameya is often formed among relatives or co-workers facing financial hardships.
Operating outside the confines of a formal banking sector, it works particularly well for young couples saving up for a wedding or for a health emergency that requires hefty fees.
In a country where 63.4 percent of workers earn their income from the informal economy, according to the World Bank's 2018 figures, such avenues often prove essential.
Ahmed Mahmoud, 28, who founded the ElGameya app in 2019, said: "In three simple steps we get rid of logistical hassles" that come with the old way of doing things.
Users need to register, upload their supporting documents and sign a contract to start using the app, he said.
Registration requires a national identity card rather than a credit card or other proof of finances, while contributions can be made via cash or electronically with a mobile phone.
Ahmed Wadi, creator of the popular MoneyFellows app, agrees that online transactions are easy.
His app has around 173,000 users who contribute between 500 pounds ($30) to tens of thousands monthly.
One user, Ashraf Salah from the southern city of Qena, said he was "sceptical" at first.
"But after I registered, I ended up raising money to renovate my home."
Salah said he likes the anonymity the app provides, unlike the "embarrassing" traditional method where everyone knows how much you put in the pot.
Mahmoud, of ElGameya, maintains that his app contributes to "financial inclusion", an initiative espoused by the authorities to integrate the finances of Egyptians into the formal economy.
The Central Bank of Egypt is cooperating with both apps to incorporate the savings of Egyptians, shifting them from the shadow economy to a more formalised setting.
MoneyFellows succeeded in raising $4 million last year from venture capital firms to expand its digital footprint.
They attribute this to their "solid evaluation system" where users get higher credit ratings if they can provide more proof of their ability to pay funds.
In Cairo's competitive and well-established startup ecosystem, both ElGameya and MoneyFellows say they have boosted their user bases by around 700 percent and 300 percent respectively in the last year.
Mahmoud said that the coronavirus pandemic actually helped, rather than hindered, the expansion.
His app has 30,000 clients, including 30 percent from rural and economically marginalised Upper Egypt in the country's south.
ElGameya has mostly attracted people "who want to get married or pay for private schools", Mahmoud said.
A study by the American University in Cairo found that 43 percent of Egyptians who have savings are part of money-pooling clubs.
But some, like Ragab Farghaly, 50, question the need for an app, where fees are charged.
"We help each other out and the whole issue is based on trust so that's why I don't like the online gameya," he said.
"I know the people in my gameya. If one of them doesn't pay up I go to their brother or mother and they pay instead of him."
While Farghaly likes to keep things close to home, MoneyFellows and ElGameya are looking further afield and eyeing Africa and the Gulf.
KARACHI: Pakistan is expected to receive a $1 billion loan disbursement from the IMF today, Tuesday, as part of a larger $7 billion bailout agreement, Finance Minister Muhammad Aurangzeb has said.
The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion program, freeing about $1 billion in cash. The review approval brings disbursements to $2 billion within the $7 billion program.
In a statement released after a virtual meeting on Monday between Aurangzeb and Johana Chua, head of emerging markets economies for Citigroup Global Markets, the finance ministry confirmed that Pakistan would receive the latest IMF tranche on Tuesday.
“The Minister also apprised the participants of the successful conclusion of a Staff Level Agreement with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), with the next tranche expected to be received tomorrow [Tuesday],” the statement said.
“He further mentioned the approval of the Resilience and Sustainability Facility (RSF), calling it a milestone achievement for Pakistan.”
The loan disbursement comes amid a military standoff with arch-rival India, though Aurangzeb told Reuters in an interview on Monday the conflict would not have a large fiscal impact on Pakistan.
The finance minister described the conflict as a “short duration escalation” with minimal fiscal impact, stating it can be “accommodated within the fiscal space which is available to the government of Pakistan.”
When questioned about potential increased military spending in the upcoming budget, Aurangzeb deferred comment, saying it was premature to discuss specific plans. However, he said: “Whatever we need to do in terms of ensuring that our defense requirements are met will be met.”
Aurangzeb said he expects the Indus Water Treaty, which India unilaterally suspended, to be reinstated and rolled back to where it was.
He said there is not going to be any immediate impact from India’s suspension and Pakistan does not “even want to consider any scenario which does not take into account the reinstatement of this treaty.”
Tensions between India and Pakistan began mounting after the April 22 attack in Indian-administered Kashmir on Hindu tourists that killed 26 people, sparking the worst clashes between the nuclear-armed neighbors in more than two decades.
On Saturday, a ceasefire in the Himalayan region was announced by US President Donald Trump, following four days of fighting and diplomacy and pressure from Washington.
Pakistan’s federal budget for the next fiscal year, starting July, will be finalized within the next four weeks, with scheduled budget talks with the IMF to take place from May 14-23, according to the finance ministry.
Trump’s Saudi Arabia visit heralds a new era of economic diplomacy
Both nations eye investments potentially exceeding $1 trillion as US president returns to expand a landmark economic alliance
Visit underscores focus on trade, trust and transformation as cooperation in defense, energy and emerging tech gains momentum
Updated 12 May 2025
Nour El-Shaeri
RIYADH: As President Donald Trump embarks on the first and, arguably, the most significant overseas tour of his second term, both the US and Saudi Arabia are eyeing investments worth billions of dollars.
In a call in January immediately after Trump was sworn in, Crown Prince Mohammed bin Salman told the president that the Kingdom planned to increase the value of its trade and investments with the US by $600 billion over the coming four years. This suggested that the value of mutually beneficial deals between the two countries might potentially reach $1 trillion, indicating that the bilateral relationship was entering a bold new phase.
Driving this next chapter in the relationship are personal diplomacy, strategic commercial interests, and a shared vision for geopolitical alignment.
Trump’s first foreign visit as US president during his first term was to Riyadh in May 2017. This marked the beginning of a transformative economic partnership between the US and Saudi Arabia and a new era of cooperation centered on defense, energy and infrastructure agreements worth hundreds of billions of dollars.
Now, as the American president returns to the Kingdom, his first stop on a tour this week that will also take him to Qatar and the UAE, the foundations laid in 2017 are set to be built upon.
Trump’s first foreign visit as US president during his first term to Riyadh in May 2017 marked the beginning of a transformative economic partnership between the US and Saudi Arabia. (AFP)
Trump’s first term (2017–2021) was characterized by a national-interest-driven foreign policy. Saudi Arabia quickly emerged as a cornerstone ally in both economic and strategic terms, a dynamic cemented at the historic Riyadh Summit in May 2017, at which King Salman extended an exceptionally warm welcome to the president.
The summit produced a wave of landmark agreements, most notably a $110 billion arms deal — part of a broader $350 billion economic package encompassing defense, energy and infrastructure initiatives.
In addition to state-level commitments, major commercial accords were struck. Saudi Aramco signed agreements valued at approximately $50 billion with prominent US firms including General Electric, Schlumberger and Halliburton.
Then Saudi Energy Minister Khalid Al-Falih highlighted the private sector’s growing role, remarking: “Many of us sitting at the table are overseeing substantial investments in the United States.”
Further solidifying the economic partnership, the Kingdom’s Public Investment Fund pledged $20 billion to a US infrastructure initiative spearheaded by Blackstone.
This commitment helped to anchor a $40 billion fund dedicated to revitalizing American roads, bridges and airports. Simultaneously, Saudi Arabia announced a $45 billion investment in the SoftBank Vision Fund, directing capital toward cutting-edge US technology ventures.
President Trump, addressing the summit’s assembled dignitaries, emphasized the significance of the occasion.
“This historic and unprecedented gathering of leaders — unique in the history of nations — is a symbol to the world of our shared resolve and our mutual respect,” he said. “The United States is eager to form closer bonds of friendship, security, culture and commerce.”
Then Secretary of State Rex Tillerson said the investments were expected to create hundreds of thousands of jobs in both countries over the coming decade.
“They will lead to a transfer of technology from the US to Saudi Arabia, enhance our economy, and also enhance American investments in Saudi Arabia, which already are the largest investments of anyone,” he said.
Throughout his presidency, Trump consistently highlighted Saudi investments as a win for American industry. In 2018, he hosted Crown Prince Mohammed bin Salman at the White House, where he publicly displayed detailed charts of Saudi arms purchases and emphasized the job-creation benefits across multiple US states.
“We’ve become very good friends over a fairly short period of time,” Trump remarked.
Throughout his presidency, Trump consistently highlighted Saudi investments as a win for American industry. (SPA)
Reflecting on that period, Albara’a Al-Wazir, director of economic research at the US-Saudi Business Council, described the 2017 visit as an “inflection point” in bilateral economic relations.
“It wasn’t just the volume of deals — it was the alignment of strategic priorities between both governments and the private sector that defined the success of that moment,” he told Arab News in an interview.
“It marked a shift from transactional diplomacy toward long-term commercial integration.”
Trump’s 2024 re-election has reignited bilateral economic momentum and, according to Al-Wazir, this next wave of engagement reflects the Kingdom’s evolving priorities.
“Recent deals have spanned traditional sectors like defense and energy, but we are also seeing growth in advanced manufacturing, artificial intelligence, biotech and financial services,” he said, highlighting a broader, more diversified agenda than in Trump’s first term.
At the World Economic Forum in Davos in January, Trump hinted at even greater ambitions. He suggested he would ask the Saudi crown prince to raise the investment target to $1 trillion, describing it as a natural extension of a robust and trusted partnership.
Saudi Economy Minister Faisal Alibrahim confirmed at the forum that the $600 billion pledge encompassed both government-led procurement and private-sector investment in key areas such as defense, energy, infrastructure and technology.
A picture taken in the Saudi Red Sea coastal city of Jeddah on July 14, 2022, ahead of a visit by the US president to the kingdom, shows a Saudi host addressing guests during a presentation on the Saudi Green Initiative. (AFP)
The Saudi Ministry of Investment now ranks the US among its top five sources of foreign direct investment, particularly in sectors aligned with Vision 2030, such as infrastructure, technology and renewables.
As of January 2025, Saudi Arabia held $126.9 billion in US Treasury securities, making it the only Gulf Cooperation Council country among the top 20 foreign holders of American debt. This substantial stake underlines Riyadh’s continued confidence in US fiscal stability and reflects a longstanding strategy to diversify reserves via reliable, dollar-denominated assets.
The current holdings include $105.3 billion in long-term bonds and $21.6 billion in short-term instruments, reflecting a balanced approach between liquidity and capital preservation.
As the Saudi-US Investment Forum convenes on Tuesday at the King Abdulaziz International Conference Center in Riyadh, economic cooperation between the two nations will once again be in the global spotlight.
Timed to coincide with Trump’s visit, the forum aims to highlight nearly a century of bilateral partnership. It will bring together prominent investors, business leaders and policymakers from both nations to strengthen commercial ties and explore new avenues for collaboration.
According to figures released ahead of the event, the US remains the largest foreign investor in Saudi Arabia, with FDI stock totaling $54 billion as of 2023 — accounting for approximately 23 percent of all FDI in the Kingdom.
Currently, 1,266 American firms hold active licenses to operate in Saudi Arabia, including 440 new licenses issued in the past year alone. These companies are engaged in such critical sectors as transportation, manufacturing, retail, information and communications technology and professional services. Collectively, they employ more than 80,000 workers in the Kingdom, including over 44,000 Saudi nationals.
The Riyadh Chamber of Commerce organized in February bilateral meetings with a US trade delegation. (Supplied)
Saudi investment in the US is also on the rise, with FDI stock now exceeding $75 billion. Leading the way are key institutions such as the PIF, Aramco and SABIC, while US financial firms continue to play a pivotal role in channeling global capital into major Saudi initiatives.
Bilateral trade between the two countries remained strong in 2024. Saudi exports to the US reached $12.8 billion, including nearly $3 billion in non-oil goods — a testament to the Kingdom’s ongoing economic diversification efforts.
Meanwhile, US exports to Saudi Arabia totaled $19.7 billion, led by machinery and appliances at $5.1 billion, vehicles at $2.6 billion, and medical and optical equipment at $1.5 billion.
On the Saudi side, key exports to the US included mineral products ($10 billion), fertilizers ($830 million) and organic chemicals ($526 million).
This year’s forum is expected to highlight the expanding investment and trade relationship as a cornerstone of modern economic diplomacy between the two strategic allies.
Bilateral trade between the two countries remained strong in 2024. Saudi exports to the US reached $12.8 billion, including nearly $3 billion in non-oil goods — a testament to the Kingdom’s ongoing economic diversification efforts. (Supplied)
Trump’s visit to Riyadh is widely expected to focus also on new defense contracts and deepening economic cooperation.
Energy policy has also returned to the fore, with Trump urging Saudi Arabia to ramp up oil production in a bid to stabilize global markets and reduce pressure on fuel prices — linking economic alignment to broader geopolitical aims, including efforts to curtail Russian revenue.
Al-Wazir believes the visit may also accelerate progress in emerging technologies and industrial development: “US companies are particularly well positioned to support Saudi Arabia’s diversification goals under Vision 2030, especially in energy transition technologies, automation and data analytics,” he said.
There are signs that Gulf investors are already responding positively to the renewed partnership. Following the 2024 US election, Yasir Al-Rumayyan, governor of PIF, was photographed alongside President Trump and Elon Musk, who is now serving as a senior adviser to the White House. Bloomberg interpreted the image as a signal of renewed Gulf confidence in the Trump administration.
As Trump returns to Saudi Arabia, the US-Saudi economic alliance appears not only intact, but also on the cusp of expansion — driven by mutual interests, deepening personal ties and a shared belief that commerce remains a pillar of diplomacy in a rapidly shifting global order.
US company joins major infrastructure project in Makkah
Updated 12 May 2025
MOHAMMED AL-KINANI
JEDDAH: US-based investment firm Burlington Capital has joined the Al-Bushra Infrastructure Development Fund as a strategic partner, marking a new chapter in economic cooperation between the US and Saudi Arabia.
The fund, which is privately managed and closed-ended, aims to develop more than 734,000 sq. meters of land in the Al-Aziziyah district of Makkah.
The involvement of Burlington Capital, headquartered in Nebraska and led by CEO Lisa Yanney Roskens, is part of a broader trend of foreign investment into the Kingdom’s infrastructure and real estate sectors.
The globally recognized firm has previously managed more than $7 billion in assets across 36 countries.
The Al-Bushra fund is aligned with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the national economy and reduce reliance on oil revenues. The fund’s objective is to convert raw land into serviced plots to support urban growth and encourage private sector activity.
Dr. Abdulaziz Sager, a board member of the fund and a prominent figure in regional development policy, is leading the project. His role includes guiding the fund’s strategic direction and overseeing its implementation.
The announcement reflects a growing interest from international firms in participating in long-term infrastructure projects within the Kingdom.
Burlington Capital was established in 1984 and has previously focused on a range of investments across both public and private sectors. Its entry into the Saudi market represents an extension of its international operations.
Wyndham to launch Super 8 hotels in Saudi Arabia, plans 100 properties
Updated 12 May 2025
Reina Takla Nour El-Shaeri
RIYADH: Wyndham Hotels & Resorts, a US-based hospitality group, has announced plans to introduce its Super 8 brand in Saudi Arabia, with an ambitious target of launching approximately 100 properties across the Kingdom over the next 10 years.
The announcement came during the Future Hospitality Summit in Riyadh, where Dimitris Manikis, president of Wyndham for Europe, the Middle East, Eurasia, and Africa, confirmed the initiative and signed the initial partnership agreement to bring Super 8 to the Saudi market.
“It’s a premium economy brand... one of the leading brands in the United States, Central Europe, and China. We finally brought it to Saudi Arabia,” Manikis told Arab News.
The expansion will be executed in partnership with Le Park Concord Co., a Saudi-based hotel operator that currently manages 13 properties with more than 900 rooms and has 13 additional hotels in its development pipeline, according to a press release.
The initiative is being supported by the Saudi Ministry of Tourism, reflecting the Kingdom’s broader strategy to diversify its tourism offerings and expand hospitality infrastructure in line with Vision 2030 goals.
Super 8 hotels will be strategically developed in major Saudi cities as well as secondary and tertiary urban centers. Target locations include areas near airports, highways, and newly emerging development zones. While the timeline remains flexible due to early-stage project planning, the first property is expected to open within the year.
“They are prefabricated, so they are easy to build. In six months, you can have a hotel in your location, which is amazing,” Manikis said, highlighting the brand’s scalability and efficient construction model.
Celebrating its 50th anniversary this year, Super 8 has a strong international footprint, particularly in the US and China, where it operates hundreds of properties.
Wyndham currently operates 14 hotels in Saudi Arabia, primarily under the Ramada brand. The company aims to diversify its portfolio in the Kingdom by introducing additional midscale, upper-midscale, and lifestyle brands to better serve a range of traveler preferences.
The rollout of Super 8 aligns with Saudi Arabia’s efforts to expand hotel capacity and provide affordable lodging options as it gears up to host a series of major international events.
Manikis also emphasized the importance of cultural and environmental sensitivity in the expansion, noting the company’s commitment to aligning with the Kingdom’s heritage and sustainability values.
Education and workforce development are key pillars of Wyndham’s strategy in the region. The executive described education as a critical component both for hotel owners and the people who work there.
He also underscored the company’s commitment to sustainability through the Wyndham Green Program, a five-tier certification framework that focuses on conservation and resource management. All Wyndham properties in the Kingdom currently operate under these sustainability guidelines.
With Saudi Arabia positioning itself as a global destination for expos, sports tournaments, and other international gatherings, Manikis reaffirmed Wyndham’s long-term vision for the market.
He said the company is committed to supporting the Kingdom’s tourism transformation while ensuring environmental responsibility and sustainable growth.
RIYADH: Wyld VC, a new early-stage venture capital firm founded by Saudi investor Tala Hasan Al-Jabri, has announced the launch of its inaugural $50 million fund — marking the first AI-native VC fund to emerge from the MENA region.
The launch coincided with US President Donald Trump’s high-profile visit to Riyadh from May 13-16, a trip focused on strengthening bilateral ties in key sectors including defense, technology, and artificial intelligence.
“The GCC is leading the charge in catalyzing an AI revolution—through massive infrastructure investments, advanced research and model deployment, and transparent, innovation-forward regulation,” said Al-Jabri, founder and managing partner of Wyld VC. “However, the region’s greatest gap is AI talent. Wyld VC is here to fill that gap.”
The firm is backed by the family office of Lawrence E. Golub, representing the office’s first investment in the region.
“Tala is a highly accomplished, talented investor, with a track record of success investing in innovative, early-stage technology companies,” said Golub. “Her considerable investment acumen, combined with her unparalleled and comprehensive ties and network in the Gulf and the US, offer a unique investment opportunity. I am excited to be supporting Tala and Wyld on this compelling new venture, and I look forward to working with her and her team.”
Wyld VC aims to support what it calls “Wyld minds” — founders advancing the frontiers of AI and shaping the next wave of the human experience. The fund will focus on AI middleware and applications, the layers seen as offering the most transformative potential across industries.
Artificial intelligence has become a strategic priority across the Gulf, where governments and institutions are aggressively investing in research, infrastructure, and regulatory innovation. Against this backdrop, Wyld VC seeks to bridge a critical gap: nurturing the next generation of AI talent in the region.
Al-Jabri is one of MENA’s earliest and most respected tech investors, with a portfolio that includes regional successes like Tabby and international ventures such as the fast-growing U.S. startup Starcloud. She is also a trailblazer for women in Saudi Arabia, becoming the first woman to serve as a partner at a venture capital firm in the Kingdom — a milestone that earned her the title of Woman of the Year 2022 in Finance by Arabian Business.
“Founders in AI need a partner that caters to their unique needs. That’s what Wyld VC is here to provide and we have the best partners to carry forward this mission,” said Al-Jabri.
With deep ties across MENA and the US, Wyld VC enters the market at a time of heightened global interest in AI and regional momentum for tech-led transformation.
