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Saudi Arabia’s startup ecosystem kicks off 2025 on a strong note

Zension Technologies specializes in providing warranties, device buy-back services, and subscription-based technology upgrades. (Supplied)
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Updated 12 January 2025
Nour El-Shaeri
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Saudi Arabia’s startup ecosystem kicks off 2025 on a strong note

  • Zension Technologies raises $30 million in a series A funding round
Updated 12 January 2025
Nour El-Shaeri

RIYADH: Saudi Arabia’s venture capital and startup ecosystem kicked off 2025 with fresh funding rounds as the Kingdom continues its regional dominance.

Zension Technologies raised $30 million in a series A funding round led by Wa’ed Ventures, the venture capital arm of Saudi Aramco.

The round also saw participation from Japan’s Sumitomo Corporation and regional investor Global Ventures.

Founded in 2018 by Khalid Saiduddin and Nikos Anastasiadis, Zension provides protection, extended warranty, and guaranteed buyback services for mobile devices and consumer electronics.

These services are integrated into major retailers, telecommunications companies, and original equipment manufacturers operating in the Saudi and UAE markets.

With the fresh funding, Zension aims to launch its new service, Zaam, which is set to debut in the first quarter of the year across Saudi Arabia and the UAE.

SVC backs $150m tech fund by Global Ventures

Saudi Venture Capital has announced its investment in Global Ventures III, an early-stage fund exceeding $150 million in size.

Managed by UAE-based Global Ventures, it will focus on investments in technology and tech-enabled sectors across Saudi Arabia, the Middle East and North Africa, and Sub-Saharan Africa.

Target industries include supply chain technology, agritech, enterprise software as a service, and emerging technologies such as artificial intelligence and deep tech.

“Our investment in the venture capital fund by Global Ventures is part of SVC’s Investment in Funds Program, in alignment with our strategy to catalyze venture investments by fund managers investing in Saudi-based startups, especially during their early stages,” said Nabeel Koshak, CEO and board member at SVC. 

The market opportunity continues to be immense, with emerging technologies across platforms being built by exceptional founders continuing to shine through.

Noor Sweid, founder and managing partner at Global Ventures

Noor Sweid, founder and managing partner at Global Ventures, emphasized the importance of the collaboration, saying: “We are proud of our deep and continued partnership with SVC, and the investment underscores our continued deep commitment to enabling and building the Saudi Arabian VC and startup ecosystem. 

“The market opportunity continues to be immense, with emerging technologies across platforms being built by exceptional founders continuing to shine through.”

SVC, a subsidiary of SME Bank under Saudi Arabia’s National Development Fund, was established in 2018 to stimulate and sustain financing for startups and SMEs across their growth stages, from pre-seed to pre-initial public offering, through investments in funds and direct investments.

Interior design platform Revie raises $2.5m seed round

Saudi Arabia-based interior design and renovation platform Revie has raised $2.5 million in a seed funding round led by Sanabil Venture Studio by Stryber.

Established in 2024 by Ibrahim Abu Khadra, Revie provides an end-to-end solution for residential and commercial renovations.

The platform connects customers with vetted service providers and offers a seamless experience from design to execution. With the new funding, the company plans to invest in its technology and build a scalable foundation to support long-term growth.

Vreal secures pre-seed investment for AR/VR innovations

Saudi augmented and virtual reality technology provider Vreal has raised an undisclosed pre-seed investment round from the numu Angels Investment Community.

Founded in 2022, Vreal offers e-commerce businesses the ability to convert their products into 3D models in as little as 30 seconds using its advanced scanning technology.

The startup is exploring opportunities to expand its applications to other industries, including interior design, real estate, tourism, and heritage preservation. Vreal aims to strengthen its position in Saudi Arabia and tap into broader markets with its innovative technology.

MilkStraw AI raises $600k pre-seed funding to expand in MENA

UAE-headquartered artificial intelligence startup MilkStraw AI has raised $600,000 in pre-seed funding. The round was led by Flat6Labs, with participation from Angel Spark, Beyond Capital, and a group of angel investors.

MilkStraw, founded by Jawad Shreim in 2024 in the US, specializes in software solutions that automate and optimize cloud infrastructure costs for businesses.

The company intends to use the funding to expand its operations across the MENA region, focusing on providing cost-saving AI tools to enterprises in the region.

Mintiply Capital partners with Fuel Venture Capital for GCC-focused SPV

UAE-based Mintiply Capital, an advisory and investment banking firm specializing in mergers and acquisitions and alternative investments, has announced an exclusive partnership with US-based venture capital firm Fuel Venture Capital.

The collaboration aims to launch a Special Purpose Vehicle targeting high-potential early-stage startups across the Gulf Cooperation Council region, with a particular focus on the UAE.

This initiative is aligned with the UAE’s strategic goal of fostering a robust startup ecosystem and driving innovation as a key pillar of economic growth.

The SPV will provide targeted funding and resources to emerging startups, supporting the development of the UAE’s entrepreneurial ecosystem and promoting sustainable economic growth.

ReNile raises $450k for agritech solutions

Egypt-based agritech startup ReNile has secured $450,000 in funding from undisclosed investors.

Founded in 2017 by Hazem El-Tawab, ReNile offers a full-stack solution for farmers that includes monitoring systems, emergency alerts, control systems, and analytics to enhance farming practices.

The company’s platform supports data-driven farming, helping users implement best-practice models to improve efficiency and yield.

MSME lending in Saudi Arabia grows by 22.6 percent in Q3 2024

Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia reached SR329.23 billion ($87.8 billion) in the third quarter of 2024, marking a 22.6 percent year-on-year increase, according to data from the Saudi Central Bank.

Of the total, 94.7 percent of loans were provided by Saudi banks, while finance companies contributed the remaining 5.3 percent.

MSME lending accounted for 9.1 percent of banks’ total loan portfolios and 18.8 percent of finance companies’ portfolios.

The Saudi government has set an ambitious target for financial institutions to allocate at least 20 percent of their lending portfolios to this critical sector, as part of its Vision 2030 strategy to foster economic diversification and support business growth.

Saudi Arabia tops MENA venture capital rankings for second year

Saudi Arabia retained its position as the leading destination for venture capital in the MENA region in 2024, raising $750 million, according to a report from regional venture platform MAGNiTT.

This marks the second consecutive year the Kingdom has led regional VC rankings. Saudi Arabia accounted for 40 percent of the total venture capital deployed in MENA, closing 178 deals — the most of any nation in the region.

While total venture capital raised in MENA declined 29 percent year-on-year to $1.9 billion in 2024, MAGNiTT noted that funding levels remained above pre-boom levels from 2020, indicating resilience in the ecosystem.

The Middle East alone accounted for $1.5 billion of this funding, spread across 461 deals, a 10 percent annual increase.

Investor participation in the region grew 14 percent to 392 investors, and the year saw 24 exits.

However, emerging venture markets — including the Middle East, Africa, and Southeast Asia, as well as Pakistan and Turkiye — faced a sharp slowdown, with total venture funding dropping 40 percent and deal volumes falling 20 percent compared to 2023.

Both metrics also fell below 2020 levels, reflecting broader challenges in the global venture landscape.

Topics: Start-up of the Week

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Oil Updates — crude rebounds as Ukraine ceasefire deal remains elusive

Updated 14 March 2025
Reuters
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Oil Updates — crude rebounds as Ukraine ceasefire deal remains elusive

Updated 14 March 2025
Reuters

SINGAPORE: Oil prices rebounded on Friday to recover some of their losses of more than 1 percent in the previous session, partly due to the diminishing prospects of a quick end to the Ukraine war that could bring back more Russian energy supplies.

Brent crude futures rose 70 cents, or 1 percent, to $70.58 a barrel by 9:50 a.m. Saudi time after settling 1.5 percent lower in the previous session. US West Texas Intermediate crude was at $67.28 a barrel, up 73 cents, or 1.1 percent, after closing down 1.7 percent on Thursday.

Russian President Vladimir Putin said on Thursday that Moscow supported a US proposal for a ceasefire in Ukraine in principle, but sought a number of clarifications and conditions that appeared to rule out a quick end to the fighting.

“Russia’s tepid support of a 30-day ceasefire proposal with Ukraine has reduced confidence around a ceasefire in the short term,” IG market analyst Tony Sycamore said.

“The feeling is that US won’t lift sanctions until they agree a ceasefire.”

However, the global trade war that has roiled financial markets and raised recession fears is escalating with US President Donald Trump on Thursday threatening to slap a 200 percent tariff on wine, cognac and other alcohol imports from Europe.

The International Energy Agency warned on Thursday that global oil supply could exceed demand by around 600,000 barrels per day this year, due to growth led by the United States and weaker than expected global demand.

“The macroeconomic conditions that underpin our oil demand projections deteriorated over the past month as trade tensions escalated between the US and several other countries,” the IEA said, prompting it to revise down its demand growth estimates for the fourth quarter of 2024 and the first quarter of 2025.

The Trump-driven trade war woes and demand worries dented oil prices on the previous day, though the possibility of less Russian oil in the global markets in the near term provided some cushion during Friday’s trade.

“Most price projections were to the downside in the short term, but geopolitical tension could still cause supply disruptions,” ANZ analysts said in a note to clients.

On Friday, China and Russia stood by Iran after the US demanded nuclear talks with Tehran, with senior Chinese and Russian diplomats saying dialogue should only resume based on “mutual respect” and all sanctions ought to be lifted.

This comes a day after Washington stepped up sanctions, including on Iran Oil Minister Mohsen Paknejad.

Topics: oil updates oil prices

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Closing Bell: Saudi main index closes in green at 11,725

Updated 13 March 2025
Miguel Hadchity
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Closing Bell: Saudi main index closes in green at 11,725

Updated 13 March 2025
Miguel Hadchity

RIYADH: Saudi Arabia’s Tadawul All Share Index gained 20.95 points, or 0.18 percent, closing at 11,725.88 on Thursday. The total trading volume for the benchmark index reached SR6.20 billion ($1.65 billion), with 141 stocks advancing and 94 declining.

The MSCI Tadawul Index also saw an increase, rising by 2.36 points, or 0.16 percent, to close at 1,479.27.

In contrast, the Kingdom’s parallel market, Nomu, slipped by 37.56 points, or 0.12 percent, closing at 31,135.85. This decline came as 54 stocks rose, while 29 saw a decrease.

The top-performing stock of the day was Rasan Information Technology Co., which saw its share price surge by 9.87 percent to SR79.

Other strong performers included Saudi Chemical Co., whose share price climbed by 5.89 percent to SR8.45, and Saudi Research and Media Group, which gained 5.66 percent, reaching SR175.60.

On the other hand, Nice One Beauty Digital Marketing Co. was the worst performer, with its share price dropping by 4.99 percent to SR40.90.

National Shipping Co. of Saudi Arabia and Alandalus Property Co. also faced declines, with their shares falling by 4.29 percent and 3.55 percent, respectively, to SR29 and SR23.90.

On the announcements front, First Milling Co. reported a net profit of SR250.9 million for 2024, marking a 13.9 percent increase compared to the previous year.

The company attributed this growth to higher sales, improved product mixes and pricing, as well as the introduction of new products.

Additionally, continued growth in small-pack goods, which offer higher profit margins, alongside efficiency improvements, cost leadership, and enhanced cash management, contributed to the rise, with increased interest income from Shariah-compliant Murabaha deposits.

Despite the positive results, First Milling Co.’s share price remained unchanged at SR60.90 during today’s trading.

Umm Al-Qura Cement Co. also reported impressive results, with a net profit of SR47.7 million for 2024, a staggering 1,107 percent increase from the previous year’s SR3.9 million.

This growth was driven by higher sales volumes and values, as well as reductions in administrative expenses, financing costs, and zakat. Despite the strong performance, the company’s shares fell by 1.98 percent, closing at SR18.78.

Lastly, ADES Holding Co. announced that it had received a Shariah Evaluation Report confirming its compliance with Islamic guidelines for the year ending Dec. 31.

The report, issued by the Shariyah Review Bureau, affirmed that the company’s activities aligned with Shariah standards. ADES Holding’s shares closed 0.74 percent lower on the main market at SR16.10.

Topics: TASI NOMU MSCI

Saudi money supply up 9% to hit $791bn in January

Updated 13 March 2025
Dayan Abou Tine 
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Saudi money supply up 9% to hit $791bn in January

Updated 13 March 2025
Dayan Abou Tine 

RIYADH: Saudi Arabia’s money supply climbed to SR2.97 trillion ($791 billion) in January, marking a 9 percent annual rise, official data showed. 

According to figures from the Saudi Central Bank, known as SAMA, demand deposits accounted for 48.75 percent of the total, reaching SR1.45 trillion. While still below the April 2021 peak of 60.21 percent, they edged up from 48.42 percent a year ago, reflecting shifting monetary conditions. 

Demand deposits are a crucial part of the money supply. When individuals deposit money into checking accounts, it increases the total amount of demand deposits, thereby expanding the overall money supply in the economy.

A demand deposit refers to money held in a bank account that can be withdrawn at any time, whenever the account holder requires it.

These funds are generally used for everyday expenses. Banks or financial institutions typically offer little to no interest on the balance in a demand deposit account.

Time and savings deposits — which surged during the US Federal Reserve’s aggressive rate hikes, mirrored by Saudi Arabia due to the riyal’s peg to the US dollar — reached SR985.03 billion in January, accounting for 33.21 percent of total deposits. 

As the Fed began easing monetary policy in September, lowering interest rates from their 6 percent peak to 5 percent by December, time deposits started to decline from their 33.61 percent high in November.  

This shift reflects a gradual return to shorter-term deposit preferences as rate-sensitive accounts adjust to a lower-yield environment.   

The third-largest category, other quasi-money deposits — including residents’ foreign currency accounts, marginal deposits for letters of credit, outstanding remittances, and bank repo transactions with the private sector — stood at SR301.28 billion, making up 10.16 percent of total deposits. Currency outside banks totaled SR233.71 billion. 

Over the past two years, the Fed’s aggressive rate hikes aimed at curbing inflation led to a rise in term deposits as customers sought higher-yielding accounts, but with benchmark rates now easing, demand deposits have started to regain share.   

Despite the 9 percent annual rise in money supply, deposit growth continues to lag behind bank lending, which surged 14.66 percent during the same period to exceed SR3 trillion for the first time. This growth has been driven by corporate credit expansion, particularly in real estate, infrastructure, and other key Vision 2030 sectors. 

As deposit inflows moderate, Saudi banks have increasingly turned to external borrowing to bridge funding gaps. Recent issuances of euro-denominated bonds highlight the evolving financing landscape, with the debt capital market playing an increasingly pivotal role. 

Speaking at the Capital Markets Forum 2025 in Riyadh in February, Mohammad Al-Faadhel, assistant deputy of financing at the Capital Market Authority, highlighted how Vision 2030 has transformed Saudi Arabia from a capital exporter to a credit-driven market, accelerating debt market growth. 

Al-Faadhel noted that the Sukuk and Development Capital Market Committee was established in collaboration with key stakeholders to remove obstacles and support market expansion.  

With ongoing structural reforms, Saudi Arabia’s financial ecosystem is evolving rapidly, setting the stage for continued growth in capital markets, corporate lending, and alternative financing mechanisms under Vision 2030.   

Loan-to-deposit ratio holds steady

Saudi Arabia’s loan-to-deposit ratio rose to 82.78 percent in January, up from 80.05 percent in the same month last year, yet slightly lower than December’s 83.24 percent, according to SAMA data. 

The LDR, a key banking metric, measures the proportion of loans issued by banks relative to their total deposits, indicating liquidity levels and lending capacity. 

The increase over the past year reflects strong credit demand, particularly from corporate borrowers in key Vision 2030 sectors such as real estate, infrastructure, and industrial expansion. 

However, the slight month-on-month decline suggests a stabilization in lending activity, as banks balance loan issuance with available deposit inflows. Despite the surge in credit, the LDR remains well below the regulatory cap of 90 percent, ensuring ample liquidity and financial stability within the banking system. 

This ratio is closely monitored by regulators and investors as it influences banks’ ability to extend new loans while maintaining a healthy funding base.  

Topics: Saudi Central Bank (SAMA) Saudi money supply

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BSF, Diriyah Co. ink $1.6bn financing deal to develop Wadi Safar project

Updated 13 March 2025
MOHAMMED AL-KINANI
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BSF, Diriyah Co. ink $1.6bn financing deal to develop Wadi Safar project

Updated 13 March 2025
MOHAMMED AL-KINANI

JEDDAH: Banque Saudi Fransi has signed a financing deal worth SR6 billion ($1.6 billion) with Diriyah Co. to develop the Wadi Safar project, highlighting the private sector’s role in driving economic growth.

The development is a key cultural and tourism destination within the larger Diriyah area, which aims to attract over 50 million visitors by 2030 while supporting major initiatives, according to the bank, which rebranded as BSF in June after 48 years in the market.

During the signing ceremony, Bader Al-Salloom, CEO of BSF, and Jerry Inzerillo, CEO of Diriyah Co., emphasized the importance of this partnership in achieving sustainable development and enhancing Diriyah’s position as a prominent cultural and historical hub.

The agreement between the two parties aligns with Saudi Vision 2030’s goal of transforming the Kingdom into a global tourist destination. The Diriyah Gate Development Authority has set a precedent by blending respect for heritage with innovative, sustainable ventures, such as Al-Bujairi Terrace, which has become a major tourist attraction since its opening in 2022.

The deal is also part of BSF’s initiatives to back significant development projects that boost infrastructure, promote tourism, and drive economic growth in Saudi Arabia, the bank said in a statement.

The Wadi Safar project, introduced in December 2023 by the DGDA, is one of the three main initiatives under the Diriyah Co’s development plan.

It covers an area of approximately 62 sq. km and is set to become an upscale residential community, including high-end hospitality facilities, recreational and sports venues, and advanced commercial and retail spaces.

The project will offer premium real estate units designed to cater to the needs of both investors and visitors. Moreover, Wadi Safar’s gated community will serve as an oasis within Riyadh, featuring three major resorts: Six Senses, Aman, and Oberoi.

It is also the location for the ongoing development of the Greg Norman-designed championship signature golf course and Royal Diriyah Golf Club.

The Diriyah development project aims to generate around 178,000 job opportunities and is expected to contribute SR18.6 billion to the Kingdom’s gross domestic product upon completion.

Topics: Banque Saudi Fransi Diriyah Co. Wadi Safar

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UAE joins dividend surge as global payouts hit record $1.75tn in 2024

Updated 13 March 2025
Nadin Hassan 
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UAE joins dividend surge as global payouts hit record $1.75tn in 2024

Updated 13 March 2025
Nadin Hassan 

RIYADH: The UAE was among 17 countries setting new dividend records in 2024 as global payouts surged to a record $1.75 trillion, marking a 6.6 percent increase from the previous year, a new report showed. 

According to research by trading platform eToro, UAE-listed companies maintained steady dividend distributions, driven by strong performances in the banking, energy, and real estate sectors.  

This comes as Saudi-listed companies also made significant dividend moves in 2024, with energy firm Aramco declaring a total payout of $85.4 billion despite a drop in net profit, while Al Rajhi Bank’s total shareholder payments reached SR10.84 billion ($2.89 billion), combining a first-half cash dividend of SR5 billion and a second-half payout of SR5.84 billion. 

“The financial sector has been a standout performer, with UAE banks benefiting from higher interest rates and economic expansion. Abu Dhabi Islamic Bank, for instance, raised its dividend payout to 50 percent of its annual profit, reflecting the sector’s robust earnings growth,” said Josh Gilbert, a market analyst at eToro. 

Energy companies also played a significant role, with ADNOC Gas announcing a $3.41 billion dividend, supported by high oil prices and a commitment to 5 percent annual dividend growth. 

In the real estate sector, Emaar Properties doubled its dividend to 8.8 billion dirhams ($2.4 billion), backed by record property sales and strong market demand.  

For income-focused investors, dividends remain a core element of long-term strategies, providing consistent cash flow and potential for compounding returns.  

“While 2024 saw record dividend distributions, certain increases, such as Emaar’s 100 percent payout of its share capital, may not be repeated annually. These sectors are cyclical, and dividends could fluctuate with market conditions,” Gilbert added. 

Despite concerns about sustainability, UAE companies’ focus on shareholder returns highlights the market’s resilience. The country’s dividend growth outlook remains positive, supported by strong corporate earnings, favorable government policies, and continued investor interest. 

Whether targeting high yields or steady income, the UAE remains an attractive market for global investors. 

Topics: UAE dividends etoro Abu Dhabi Islamic Bank

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