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

  • 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, Algeria deepen economic ties with new business pacts

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Saudi Arabia, Algeria deepen economic ties with new business pacts

JEDDAH: Saudi Arabia and Algeria signed a series of agreements to boost trade and investment as officials and executives from both countries convened in Algiers for a high-level forum. 

The Saudi-Algerian Business Forum, held on April 20 in the Algerian capital, featured extensive discussions on enhancing bilateral economic cooperation across sectors including tourism, agriculture, construction, and manufacturing, the Saudi Press Agency reported. 

This comes as Saudi Arabia and Algeria maintain long-standing economic and diplomatic ties, anchored by their membership in the Arab League and OPEC. Trade between the two has steadily grown, with Saudi Arabia becoming a key supplier of industrial goods, petrochemicals, and plastics to Algeria. 

In a speech at the opening of the forum, Saudi Ambassador to Algeria Abdullah bin Nasser Al-Busairi described the economic meeting as a key driver for strengthening bilateral relations, highlighting the commitment of both countries’ leaderships to deepening ties across all sectors.

He pointed out that “the forum is an opportunity to discuss joint cooperation in light of the positive indicators witnessed by trade exchange between the Kingdom and Algeria, which amounts to nearly $1 billion,” SPA reported.  

Al-Busairi highlighted the notable growth of Saudi investments in Algeria, particularly in the pharmaceutical and food industries, “calling on Saudi investors to explore the opportunities available in the Algerian market, in light of the guarantees and benefits provided by the new investment law.”  

Al-Busairi expressed his confidence that “the bilateral meetings between Saudi and Algerian businessmen will result in practical initiatives that serve the interests of both countries and enhance the level of cooperation and partnership between them,” the SPA added. 

The chairman of the Saudi-Algerian Business Council, Raed bin Ahmed Al-Mazrou, emphasized that the time has come to elevate bilateral relations, particularly in the economic sector.  

He highlighted the strong support from the leaderships of both countries for this initiative and their commitment to strengthening and advancing it. 

He noted the investment opportunities offered by the Algerian market, the long-standing Saudi experience spanning more than five decades, and the openness of the Saudi market to initiatives by Algerian investors, in order to advance and enhance cooperation between the two countries.  

Kamel Moula, president of the Algerian Council for Economic Renewal, said the forum offers a valuable platform to establish successful ventures and exchange expertise, contributing to sustainable growth in both countries. 

He pointed to promising opportunities in sectors such as food manufacturing, iron and steel, tourism and entertainment, and information and communication technology. 


Dubai inflation eases to 2.79% in March as housing, transport costs moderate

Updated 43 min 23 sec ago
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Dubai inflation eases to 2.79% in March as housing, transport costs moderate

RIYADH: Dubai’s annual inflation rate eased in March, hitting its lowest level since October 2024, according to official data released by the Dubai Statistics Center.

The inflation rate in the emirate slowed to 2.79 percent in March, down from 3.15 percent in February. The decline was primarily driven by a deeper deflation in food and beverage prices, which dropped by 3.34 percent year-on-year, compared to a 0.85 percent decline in the previous month.

Dubai continues to report relatively moderate inflation compared to other major cities in the region. Analysts attribute this trend to the government’s proactive measures to maintain price stability while fostering economic growth.

Despite persistent global inflationary pressures, Dubai’s economy remains resilient, supported by a diverse mix of sectors including tourism, real estate, and trade.

Looking ahead, the UAE Central Bank has forecast nationwide inflation at 2 percent for 2025 —well below the global average. Non-tradable components of the consumer basket are expected to be the main contributors to price movements in the coming year.

The March data also pointed to continued deflation in other key categories. Food and beverage prices posted a monthly deflation rate of 0.31 percent, slightly higher than the 0.21 percent recorded in February.

Clothing and footwear prices declined 2.69 percent year on year, mirroring the previous month’s figures. Meanwhile, prices in the information and communication sector saw a 1.96 percent annual drop in March, compared to a 1.95 percent decline in February.

The data also showed a continued rise in prices within several key sectors. The housing, water, electricity, gas, and other fuels category recorded a 7.16 percent increase in March, slightly down from 7.36 percent in February.

The insurance and financial services sector experienced notable inflation as well, with prices rising 5.83 percent, up from 5.20 percent the previous month.

Price increases were also observed across health, education, and personal care, social protection, and miscellaneous goods and services. Health costs climbed 3.1 percent, education rose 2.76 percent, and personal care and related services increased 2.52 percent.

For comparison, September’s figures showed no change in health and education, while personal care had risen by 1.48 percent.

The tobacco sector registered a 2.12 percent year-on-year increase, unchanged from February. Meanwhile, prices in the recreation, sport, and culture category grew 1.66 percent, though at a slower pace compared to 3.93 percent in the previous month.

Additional monthly gains were recorded in insurance and financial services, which edged up 1.47 percent in March versus 1.41 percent in February. Prices for furnishings, household equipment, and routine maintenance rose 0.36 percent, matching the previous month’s rate. The restaurants and accommodation services category saw a 0.25 percent increase, down from 0.72 percent in February.

In a separate report published in December, FOREX.com, a subsidiary of US-based StoneX Group Inc., projected strong economic resilience for the UAE in 2025.

The outlook was supported by solid consumer spending, record-high foreign direct investment, and the nation’s ongoing economic diversification efforts, despite regional challenges.


Saudi Arabia to drive Islamic finance growth in 2025, S&P says 

Updated 21 April 2025
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Saudi Arabia to drive Islamic finance growth in 2025, S&P says 

RIYADH: Saudi Arabia is poised to play a key role in propelling the growth of the global Islamic finance industry in 2025, underpinned by non-oil economic expansion and robust sukuk issuance, according to a new analysis.  

The Kingdom’s banking system growth, supported by Vision 2030 initiatives, is expected to contribute significantly to the expansion of Islamic banking assets next year, S&P Global Ratings said in its latest outlook report. 

Saudi Arabia’s debt market has seen significant growth in recent years, attracting investors’ interest in debt instruments amid rising interest rates.  

“We expect economic growth in Saudi Arabia and the UAE will continue supporting Islamic banking asset expansion in 2025, barring any significant disruptions from global trade tensions or a further decline in oil prices,” said S&P Global.  

The report also noted that Vision 2030 “will continue to translate into significant banking system growth, provided it attracts sufficient refinancing sources, including sukuk issuances from the international capital market.” 

Earlier this month, Kuwait Financial Center, also known as Markaz, reported that the Kingdom led the Gulf Cooperation Council in primary bond and sukuk issuances during the first quarter, raising $31.01 billion from 41 offerings. That accounted for 60.2 percent of total GCC issuances during the period. 

S&P Global said the strong performance of the UAE’s non-oil economy, along with capital expenditure needs across various sectors, will continue to support financing requirements and sukuk issuances in 2025. 

The US-based agency added that the growth of the global Islamic finance market will also be supported by countries in the GCC, including Qatar, Bahrain and Oman, as well as by nations in the Asia-Pacific region such as Pakistan, Bangladesh and Indonesia. 

“The financing growth of Islamic banks will continue to outshine conventional banks’ credit growth, facilitating market share gains. However, this growth might be somewhat tempered by local currency volatility,” the report said.  

Resilient growth  

The global Islamic finance industry is expected to maintain its steady growth momentum in 2025, supported by financing needs linked to economic diversification efforts, according to S&P Global. 

The agency said strong performance in both banking and sukuk segments helped the industry grow 10.6 percent year-on-year in 2024, with total sukuk outstanding surpassing $1 trillion for the first time in November. 

Banking assets accounted for about 60 percent of the Islamic finance industry’s growth in 2024, up from 54 percent in the previous year. The GCC region was the primary driver, contributing 81 percent of that growth — two-thirds of which came from Saudi Arabia, the report showed. 

Islamic banking, also known as Islamic finance, refers to financial activities that comply with Shariah law. Sukuk, or Islamic bonds, are Shariah-compliant debt instruments through which investors gain partial ownership of an issuer’s assets until maturity. 

Commenting on the outlook, Mohamed Damak, head of Islamic Finance at S&P Global Ratings, said: “Financing needs driven by economic transformation programs will remain high, and the inherent preference for Islamic finance will persist. As a result, despite growing uncertainty, we expect the Islamic finance industry to grow in 2025.” 

According to S&P Global, oil prices are expected to average $65 per barrel for the remainder of 2025 and $70 per barrel in 2026, which could support growth in most core Islamic economies. 

The agency projected that global sukuk issuance is likely to reach between $190 billion and $200 billion in 2025, assuming current market volatility does not have a significant impact. Foreign currency-denominated issuance is expected to contribute $70 billion to $80 billion. 

The report also noted that global sukuk issuances declined slightly in 2024, totaling $193.4 billion compared to $197.8 billion in 2023. 

In a separate forecast made in January, Fitch Ratings said global sukuk issuances could reach $190 billion to $200 billion this year, driven by increased offerings in countries such as Saudi Arabia and Indonesia. 

S&P Global’s findings align with a separate analysis released by Moody’s in September, which projected that the profitability of Islamic banks in the GCC will remain strong over the next 12 to 18 months. Moody’s attributed this to stable oil prices, government-led economic diversification initiatives, and high levels of business confidence. 

In December, a report by Kamco Invest projected that Saudi Arabia will see the largest share of bond maturities in the GCC region between 2025 and 2029, totaling $168 billion. 

The latest report from S&P Global said sustainable sukuk issuance is expected to range between $10 billion and $12 billion in 2025, compared to $11.9 billion in 2024 and $11.4 billion in 2023. 

The issuance of sustainable sukuk will be supported by the Islamic finance guidelines introduced by the International Capital Market Association in April 2024, along with other regulatory initiatives. 

The guidelines allow a broader range of assets to be used as underlying assets for sukuk, provided the proceeds are invested in green or social assets and projects. This added flexibility is aimed at addressing the shortage of sustainable assets in the Islamic finance space. 

In 2024, Saudi Arabia accounted for 38 percent of total sukuk issuances. 

However, the volume of sustainable sukuk issuance in the UAE declined by 60 percent in 2024 compared to the previous year. 

“We anticipate an increase in sustainable sukuk issuance when GCC issuers implement climate transition plans more quickly and make progress toward renewable energy targets, particularly if regulators offer incentives for sustainable issuances,” said the report.  

Potential challenges 

In the report, S&P Global also highlighted several challenges that could affect the global Islamic finance industry, including a potential decline in crude oil prices and the adoption of the draft Shariah Standard 62. 

In late 2023, the Accounting and Auditing Organization for Islamic Financial Institutions released an exposure draft of Shariah Standard 62 on sukuk. 

The proposed guidelines address a range of market elements, including Shariah requirements for issuances, asset backing and ownership transfer, investment and financing structures, as well as trading and settlement procedures. 

“Adopting Sharia Standard 62 could disrupt the sukuk market from 2026 by potentially reclassifying the instruments from debt-like to equity-like. But the extent of this will depend on whether the standard is approved, its content, and when it will be implemented,” said S&P Global.  

It added: “If Standard 62 is adopted as proposed, we anticipate the industry could become more fragmented and less attractive to investors and issuers due to higher sukuk pricing for issuers and fewer fixed-income investors.”  

In January, Fitch Ratings echoed similar views, noting that the adoption of AAOIFI guidelines could alter the structure of the sukuk market and potentially lead to increased fragmentation.


Aramco, China’s BYD collaborate on new energy vehicle technologies

Updated 21 April 2025
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Aramco, China’s BYD collaborate on new energy vehicle technologies

RIYADH: Saudi energy major Aramco and Chinese electric vehicle manufacturer BYD have signed a joint development agreement to explore advancements in new energy vehicle technologies. 

The partnership, formalized between Saudi Aramco Technologies Co. and BYD, aims to develop solutions that enhance efficiency and reduce environmental impact, according to a joint statement. 

Bringing together the research capabilities of both companies, the collaboration is focused on innovation in low-carbon mobility. Aramco has been active in energy-related research, while BYD is a recognized player in EV and battery technologies.  

Saudi Arabia is continuing to develop its electric vehicle infrastructure under Vision 2030, which targets greater sustainability and economic diversification.   

Ali Al-Meshari, Aramco’s senior vice president of Technology Oversight and Coordination, said: “The collaboration between SATC and BYD aims to support energy efficiency improvements, and it builds on Aramco’s extensive research and development of new energy solutions.”  

He added: “Aramco is exploring a number of ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts.” 

Al-Meshari emphasized the need for a multifaceted approach to support a practical energy transition and welcomed BYD’s role in the initiative. 

Luo Hongbin, senior vice president at BYD, highlighted the importance of collaboration in driving innovation.   

“At the crossroads of technological innovation and environmental protection, BYD always believes that true breakthroughs come from openness and collaboration,” he said.  

Hongbin added: “We expect that SATC and our cutting-edge R&D capabilities in new energy vehicles will break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint.”  

Hongbin expressed confidence that the partnership would contribute to broader climate action goals. 

BYD, a long-standing player in electric mobility, has expanded its presence in the automotive, energy storage, and rail transit sectors, contributing to green technology development. 

Aramco, one of the world’s largest integrated energy and chemicals companies, has been investing in technologies aimed at improving resource efficiency and supporting energy transition efforts. 

In January, the Electric Vehicle Infrastructure Co. — a joint venture between the Public Investment Fund and Saudi Electricity Co. — signed a deal with Al-Futtaim Electric Mobility, BYD’s local partner, to install high-speed EV chargers across the Kingdom.  

EVIQ plans to deploy more than 5,000 charging stations by 2030, reinforcing Saudi Arabia’s goal to become a regional hub for electric mobility. 

Global forecasts suggest electric and eco-friendly vehicles could account for half of all car sales by 2035, making the Kingdom’s investments in EV infrastructure a key step toward future mobility. 


Oil Updates — crude falls as concerns about demand amid US tariff upheaval return 

Updated 21 April 2025
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Oil Updates — crude falls as concerns about demand amid US tariff upheaval return 

SINGAPORE: Oil prices fell 1.5 percent on Monday as investors once again focused on concerns US tariffs on its trading partners will create economic headwinds that will reduce fuel demand growth, according to Reuters. 

Brent crude futures slipped 97 cents, or 1.4 percent, to $66.99 a barrel at 09:40 a.m. Saudi time after closing up 3.2 percent on Thursday. US West Texas Intermediate crude was at $63.72 a barrel, down 96 cents, or 1.5 percent, after settling up 3.54 percent in the previous session. Thursday was the last settlement day last week because of the Good Friday holiday.  

“The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+,” said IG market strategist Yeap Jun Rong. 

OPEC+, the group of major producers including the Organization of the Petroleum Exporting Countries and allies such as Russia, is still expected to hike output by 411,000 barrels per day starting in May, though some of that increase may be offset by cuts from countries that have been exceeding their quotas. 

Prices also declined as some supply worries eased following signs of progress in nuclear talks between the US and Iran progressed on Saturday. 

In the talks, the US and Iran agreed to begin drawing up a framework for a potential nuclear deal, Iran’s foreign minister said, after talks that a US official described as yielding “very good progress.” 

The progress follows further sanctions by the US last week against a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran amid the talks. 

Concerns about tightening Iranian oil supply and hopes for a trade deal between the US and the EU, pushed Brent and WTI up about 5 percent last week, their first weekly gain in three weeks. 

Still, markets remain worried about the effects of the aggressive US tariff policy and its trade war with China, with the dollar and Asian equity markets dropping on Monday. 

A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50 percent. The US is the world’s biggest oil consumer. 

Investors are watching for several US data releases this week, including April flash manufacturing and services PMI, for direction on the economy. 

“This week’s series of PMI releases could further underscore the economic impact of tariffs, with both manufacturing and services conditions across major economies expected to soften,” IG’s Yeap said, adding oil prices face resistance at the $70 level.