Startup Wrap —flurry of funding activity continues in MENA

Despite a global economic slowdown, startups in the Middle East and North Africa region witnessed a great year with massive fund rounds aimed at strengthening new firms. Shutterstock
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Updated 24 December 2023
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Startup Wrap —flurry of funding activity continues in MENA

  • Saudi Arabia leads the way with startups from diverse sectors

CAIRO: Startups in the Middle East and North Africa enjoyed a year of massive funding that helped them take root and grow in their respective markets. Saudi Arabia led the way with startups from diverse sectors receiving funding for their expansion and operations. 

Hakbah, a Saudi-based fintech startup, successfully closed a $5.1 million series A round, pushing its total funding to date to $9 million. 

The investment round was led by VentureSouq, with participation from M-Capital, Bunat Ventures, and existing investors including Global Ventures and Aditum Investment Management Ltd. 

Founded in 2018 by Naif Abusaida, Hakbah aims to boost financial inclusion by digitalizing the savings space. The company claims to have recorded spectacular growth in its total savings under management as well as a fourfold increase in its revenue during 2023. 

The influx of new capital is earmarked for product enhancements. A major focus of this development will be on integrating machine learning technologies and refining Hakbah’s savings engine, according to a statement by the company. 

HRtech firm closes seed round 

Saudi Arabia’s human resources technology startup Velents closed a seed funding round led by Egypt’s A15 with participation from Nibras Capital, AUC Venture Lab, and other local investors. The amount remains undisclosed. 

Founded in 2020 by Mohamed Gaber and Abdulaziz Al-Muhaydib, Velents is an AI-powered recruiter that can filter candidates as well as interview them and assess their language, skills, and capabilities. 

The company aims to utilize the new capital to expand its presence in Saudi Arabia by working closely with government entities. 

“Velents is forging a new path in the recruitment automation and assessment phase. The platform is also exploring expansion into sharing its API and expanding with government entities across the Middle East,” Al-Muhaydib stated. 

Marketplace raises $18m 

Saudi-based marketplace for secondhand products Soum closed $18 million in a series A round led by Jahez with participation from Isometry Capital along with existing investors participating, Khwarizmi Ventures, Alrajhi Partners, and Outliers Venture Capital. 

The new funding will accelerate Soum’s regional expansion as well as grow its product offering. 

HRtech firm secures $1.8m 

Saudi Arabia’s HRtech firm Scalers secured $1.8 million led by Sadu Capital and Access Bridge Ventures. 

The company will aim to utilize the new capital to grow its recruitment solutions.

Saudi fintech raises $3m 

Saudi-based fintech startup Spare successfully secured a $3 million funding round led by Vision Ventures and saw contributions from Wa’ed Ventures, Seedra Ventures, the global investment firm 500 Global, and several angel investors. 

Established in 2018 by Dalal Alrayes and Saurabh Shah, Spare offers an open-banking platform that enables businesses to access their customers’ financial data. 

Saudi fund invests in UAE 

Jada Fund of Funds, a subsidiary of the Public Investment Fund, has made an investment in Iliad Partners Tech Ventures Fund I, a venture capital fund based in the UAE and specializing in business-to-business ventures. 

Launched by Iliad Partners, the fund aims for a size of $50 million, with backing from Jada. 

The fund’s investment strategy is centered on supporting technology companies across the MENA region, particularly focusing on businesses based in Saudi Arabia and the UAE. 

Key sectors of interest for the fund include fintech, logistics, proptech, and edtech, reflecting a broad spectrum of technology-driven industries. 

Egypt’s Chefa raises $5.25m 

Egypt-based healthtech startup Chefaa has successfully raised $5.25 million in a funding round co-led by Newtown Partners from South Africa and Global Brain from Japan, with additional participation from GMS Capital Partners LLC in the US, Verod-Kepple Africa Ventures in Nigeria, and M3, Inc. from Japan. 

The platform is designed to streamline and simplify the process of obtaining medications and healthcare products. 

Following its recent expansion into Saudi Arabia, Chefaa plans to utilize the new funds to strengthen its foothold in the Kingdom. 

UAE’s analytics platform raises $1m 

UAE-based analytics platform Trends, supported by LuckyDodo, has successfully raised $1 million in funding from a group of investors at the DIFC Innovation Hub. 

Trends, which was established in 2022 by founders Mary Queenie and Stephane Adam, provides businesses with an in-depth analysis of market dynamics, consumer trends, and preferences. It achieves this by converting user data into actionable insights. 

This fresh injection of capital is set to propel Trends’ growth, allowing the company to expand its operations. 

iSchool eyes expansion

Egypt-based educational technology company iSchool has secured $4.5 million in funding spearheaded by VentureWave Capital, an Irish venture capital firm, and saw contributions from OneStop Capital UK, Webit Investment Network, and Oraseya Capital, the venture capital arm of the Dubai Integrated Economic Zones Authority. 

Established in 2018 by Muhammad Gawish, Ebrahim Youssef, Mustafa Abdelmonem, and Osama Ghareb, iSchool specializes in providing live, gamified classes taught by coding instructors. 

Tamara achieves unicorn status

Buy now, pay later platform Tamara has become the first Saudi fintech startup to reach a $1 billion valuation after raising $340 million in its series C funding round, according to a statement.   

Led jointly by SNB Capital and the Public Investment Fund’s Sanabil Investments, the capital injection bolsters Tamara’s position in Saudi Arabia’s fintech landscape as it aims to diversify its offerings.   


Closing Bell: Saudi main index slips to close at 11,438 

Updated 18 May 2025
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Closing Bell: Saudi main index slips to close at 11,438 

  • Kingdom’s parallel market Nomu lost 185.50 points, or 0.67%, to close at 27,655.56
  • MSCI Tadawul Index lost 6.21 points, or 0.42%, to close at 1,456.55

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 46.11 points, or 0.40 percent, to close at 11,438.94. 

The total trading turnover of the benchmark index was SR3.68 billion ($983 million), as 85 of the stocks advanced and 153 retreated.

The Kingdom’s parallel market Nomu lost 185.50 points, or 0.67 percent, to close at 27,655.56. This comes as 26 of the listed stocks advanced while 52 retreated.

The MSCI Tadawul Index lost 6.21 points, or 0.42 percent, to close at 1,456.55.

The best-performing stock of the day was Etihad Atheeb Telecommunication Co., whose share price surged 6.44 percent to SR102.40.

Other top performers included Miahona Co., with its share price rising 4.59 percent to SR26.00, and Middle East Paper Co., which surged 4.55 percent to SR29.85.

SICO Saudi REIT Fund recorded the most significant drop, falling 5.72 percent to SR4.45.

Saudi Advanced Industries Co. also saw its stock prices fall 5.11 percent to SR26.95.

Jabal Omar Development Co. also saw its stock prices decline 3.38 percent to SR24.00.

On the announcements front, Bank Albilad raised $650 million from its US dollar-denominated additional tier 1 sukuk issuance. According to a Tadawul statement, the total number of sukuk stands at 3,250 with a par value of $200,000, a return of 6.5 percent per annum, and perpetual maturity. 

Bank Albilad ended the session at SR27.10, down 0.74 percent.

Sadara Basic Services Co. reported a net loss of SR1.26 billion for the first quarter of 2025, marking a 48 percent increase from the same period last year, according to a bourse filing.

The company attributed the deeper loss primarily to planned turnaround activities during the quarter, though this was partially offset by lower feedstock consumption and reduced interest expenses.

Rawasi Albina Investment Co. announced the completion of the memorandum of association and commercial registration of its new wholly owned subsidiary, Nemo Al Jazirah Co., with a capital of SR5,000. 

According to a Tadawul statement, the limited liability company will begin operations after finalizing all administrative and technical incorporation requirements. 

Shares of Rawasi Albina Investment Co. closed at SR4.00, gaining 2.25 percent. 

Middle East Pharmaceutical Industries Co. has renewed a Shariah-compliant credit facility agreement with Alinma Bank for SR50 million. 

According to a stock exchange disclosure, the one-year financing is backed by a promissory note worth SR55 million. The facility will be used to support the company’s working capital and asset financing needs.

Shares of the company ended the session at SR126.60, down 0.32 percent. 


Qatar’s FDI projects jump 110% in 2024, says investment agency chief

Updated 18 May 2025
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Qatar’s FDI projects jump 110% in 2024, says investment agency chief

  • Number of FDI projects reached 241 in 2024, up from 115 in 2023
  • Most of the investments were concentrated in key sectors, particularly wholesale and retail trade

RIYADH: Qatar saw a 109.6 percent year-on-year increase in foreign direct investment projects in 2024, more than doubling the 2023 total, reflecting growing global confidence in its economy, according to a top official. 

Speaking to Qatar News Agency, Sheikh Ali bin Alwaleed Al-Thani, CEO of the Investment Promotion Agency, said the number of FDI projects reached 241 in 2024, up from 115 in 2023. 

He attributed this growth to strong investor confidence in Qatar’s economic resilience and long-term strategic direction. 

“This growth is attributed to targeted investment policies, a supportive business environment, and the state’s commitment to economic diversification in line with Qatar National Vision 2030," the QNA report stated. 

Most of the investments were concentrated in key sectors, particularly wholesale and retail trade, which accounted for 77 undertakings, and administrative and support services, which had 41. 

Greenfield projects, involving new ventures rather than expansions, comprised 74 percent of the total, highlighting Qatar’s appeal as a destination for sustainable, long-term investments. 

Al-Thani stated that these developments were driven by recent reforms, including simplified licensing procedures and enhanced digital services, aligned with the economic diversification objectives of the Third National Development Strategy. 

He also pointed to the Ministry of Commerce and Industry’s Strategy for 2024–2030, which aims to boost the investment environment further by achieving 3.4 percent annual growth in non-oil sectors. 

The establishment of the National Statistics Centre was also highlighted as a milestone in enhancing data-driven policymaking and transparency, key enablers of a healthy investment climate, the official noted. 

Qatar’s global competitiveness continues to strengthen, Al-Thani said, citing its rise to 11th place in the International Institute for Management Development World Competitiveness Index for 2024. 

In terms of logistics and infrastructure, the country ranked 14th for logistics competence and 19th for infrastructure in the World Bank’s Logistics Performance Index. 

According to the agency, the new investment projects generated 9,348 jobs in 2024, a 122.7 percent increase from 4,197 jobs in 2023. 

These roles were largely in the same sectors that attracted the most FDI, including retail and wholesale trade, support services, accommodation and food services, and scientific research and development.

“Our strategy is firmly centered on attracting high-quality, knowledge-based investments that align with Qatar’s long-term economic diversification goals. We focus on sectors where Qatar offers a strong competitive advantage, and where innovation, technology and sustainability can generate real value for both investors and the local economy,” he was quoted as saying by QNA.

He added: “A core component of this strategy has been the development of strategic partnerships with leading global organisations. These collaborations go beyond job creation — they are focused on transferring knowledge, introducing cutting-edge technologies and embedding international best practices across key industries.” 

He said this investment approach supports key national objectives, including achieving an average annual economic growth rate of 4 percent, increasing labor productivity, and attracting $100 billion in FDI by 2030. 

Qatar’s achievements have also been recognized globally. The country ranked first worldwide for tax policy and basic infrastructure in the IMD World Competitiveness Ranking 2024, second for general infrastructure in the Global Innovation Index, and fourth for information and communications technology development in the ITU ICT Development Index. 

Its commitment to entrepreneurship and innovation was underlined in the 2024–2025 Global Entrepreneurship Monitor, where it ranked first globally in entrepreneurial intentions and employee activity, and ninth for start-up opportunities. 


Saudi Arabia’s Hail region signs $2.27bn in investment deals 

Updated 18 May 2025
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Saudi Arabia’s Hail region signs $2.27bn in investment deals 

  • 125 investment opportunities, including 14 strategic projects worth more than SR34.2 billion, were presented at the forum
  • More than 100 investment opportunities worth SR50 billion were showcased and listed on the “Invest Saudi” platform

JEDDAH: Saudi Arabia’s Hail region signed investment agreements worth SR8.5 billion ($2.27 billion) during its flagship investment forum, as the Kingdom intensifies efforts to unlock regional growth and attract private sector capital. 

The deals, signed across key sectors including agriculture, mining, tourism, and logistics, are part of a broader package of more than SR50 billion in identified investment opportunities unveiled at the Hail Investment Forum, the Saudi Press Agency reported. 

Saudi Arabia has been focusing on the untapped potential of smaller towns and regional municipalities, attracting investors and entrepreneurs. This shift from traditional urban centers marks a new era of diversification as the country pursues a more resilient and inclusive economy, reflecting the evolving priorities of Saudi Vision 2030. 

“The emir of Hail region witnessed the launch of a package of agreements, initiatives and projects amounting to SR8.5 billion, in qualitative partnerships between government agencies and investment entities to enhance the region’s growth and stimulate its economic environment,” the SPA report stated. 

Inaugurating the forum, Prince Abdulaziz bin Saad bin Abdulaziz, governor of Hail region, spoke about the unwavering support the region receives from the wise leadership.  

In his speech, Prince Abdulaziz emphasized that the Hail region holds competitive and strategic advantages that make it an attractive environment for investment across various sectors, marking the beginning of a new phase of investment and sustainable development throughout the region and its governorates. 

The forum, held under the theme “Be Part of the Promising Future,” was organized by the Hail Chamber in partnership with the regional governorate. It attracted senior officials, including Minister of Investment Khalid Al-Falih and Deputy Minister of Environment, Water and Agriculture Mansour Al-Mushaiti. 

A total of 125 investment opportunities, including 14 strategic projects worth more than SR34.2 billion, were presented in support of the local business sector. 

Hani Al-Khalifa, chairman of the Hail Chamber, said the forum promotes the region’s economic competitiveness and investment landscape. 

Hassan Al-Huwaizi, chairman of the Federation of Saudi Chambers, called the event a vital platform for presenting high-quality investment opportunities, adding that Hail’s appeal has grown due to government facilitation. 

In his remarks, Al-Mushaiti described Hail as a unique destination for agricultural investment due to its rich natural resources. He noted the Agricultural Development Fund has disbursed over SR7 billion in the region, helping raise Hail’s share of the Kingdom’s agricultural gross domestic product to more than 10 percent. 

The region also launched the Middle East’s first and largest trout salmon production project, expected to cut imports by 50 percent and generate SR5 billion in sales over the next decade, he said. 

A new red meat investment is set to boost self-sufficiency, which reached 61 percent by end-2024. Hail is also home to one of the largest poultry production projects, now valued at more than SR11 billion following a recent SR4.5 billion expansion.

Al-Mushaiti highlighted the SR800 million in support provided by the Saudi Reef program in Hail, helping smallholder farmers through local agricultural projects worth over SR40 million. He added that 14 water and environmental projects worth SR1.2 billion, along with seven vegetation projects worth SR116 million, are underway under the Saudi Green Initiative. 

Al-Falih, speaking at the event, reiterated government support for investors and pointed to Hail’s strategic advantages such as its location that connects five other regions, fertile land, diverse terrain, and developing infrastructure. 

He added that foreign direct investment in the region has reached SR1.44 billion, with 177 investment licenses issued to international companies across sectors such as construction, manufacturing, tourism, food, and retail. 

More than 100 investment opportunities worth SR50 billion were showcased and listed on the “Invest Saudi” platform, spanning agriculture, tourism, manufacturing, sports and more. 

A memorandum of understanding was signed between the Ministry of Investment and the Hail Region Development Authority to facilitate strategic investments and promote sustainable growth in the region. 

The forum also featured nine panel sessions covering 42 investment themes, focusing on tourism, quality of life, agriculture, logistics, energy, and education. 


Omani banking sector credit surges 7.4% in February

Updated 18 May 2025
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Omani banking sector credit surges 7.4% in February

  • Credit extended to the private sector rose by 6.1% annually to 27.3 billion rials
  • Total deposits in the Omani banking sector registered a 6.4% year-on-year growth to reach 32 billion rials

RIYADH: The total credit extended by Oman’s banking sector surged by 7.4 percent year on year to reach 32.9 billion Omani rials ($85.46 billion) by the end of February, new figures showed. 

Released by the Central Bank of Oman, the data indicated that credit extended to the private sector rose by 6.1 percent annually to 27.3 billion rials during the same period. 

This aligns with Oman’s projected economic growth of 3.4 percent in 2025, outpacing many global peers, according to Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al-Yousef, who spoke at the International Investment Forum in Muscat in April. 

The February report said: “Non-financial corporations received the highest share of the total private sector credit at approximately 46.3 percent at end-February 2025, followed by the household sector at 44.3 percent.” 

Oman achieved a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024, driven by prudent fiscal policies, high oil prices, and nonhydrocarbon export growth. Shutterstock

It added: “The share of financial corporations was 5.5 percent while other sectors received the remaining 3.8 percent of total private sector credit as at the end of February 2025.” 

The analysis further revealed that total deposits in the Omani banking sector registered a 6.4 percent year-on-year growth to reach 32 billion rials at the end of February. It added that total private sector deposits increased 8.2 percent to 21 billion rials. 

“In terms of sector-wise composition of private sector deposits, the biggest contribution is from household deposits at 50.3 percent, followed by non-financial corporations at 30.4 percent, financial corporations at 16.9 percent and other sectors at 2.4 percent,” the report concluded in that regard.

In January, the 2024 Article IV consultation issued by the International Monetary Fund disclosed that Oman achieved a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024, driven by prudent fiscal policies, high oil prices, and nonhydrocarbon export growth. At the time, the IMF attributed these figures to effective economic management. 

Despite higher social spending under a new protection law, the nonhydrocarbon primary deficit as a share of nonhydrocarbon gross domestic product remained stable, highlighting the government’s commitment to financial discipline, the IMF release explained at the time. 

Government debt as a percentage of gross domestic product also declined further, reaching 35 percent in 2024, marking continued improvement in Oman’s economic fundamentals. 

The findings reflect the broader resilience across the Gulf Cooperation Council region, as highlighted in a December IMF report, which noted that GCC economies have successfully navigated recent shocks, thanks to robust non-hydrocarbon growth and continued reform efforts.


Saudi Arabia’s US Treasury holdings rise to $131.6bn in March

Updated 18 May 2025
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Saudi Arabia’s US Treasury holdings rise to $131.6bn in March

  • Kingdom maintained 17th place among the largest holders of such financial instruments in March
  • Saudi Arabia and UAE are the only GCC countries among the top 20 holders of US Treasury securities

RIYADH: Saudi Arabia’s holdings of US Treasury securities stood at $131.6 billion in March, reflecting an increase of $5.2 billion from February, according to the latest data.

The analysis, released by the US Treasury, represents a month-on-month increase of 4.11 percent following a marginal decrease of 0.39 percent from January to February.

The change reflects market fluctuations or potential portfolio rebalancing as the Kingdom navigates global economic conditions. Saudi Arabia’s accumulation of US Treasuries is part of its broader strategy to manage foreign reserves and diversify low-risk assets.

The data revealed that the Kingdom maintained 17th place among the largest holders of such financial instruments in March.

The study also shows that Saudi Arabia and the UAE are the only Gulf Cooperation Council countries among the top 20 holders of US Treasury securities.

In March, the Kingdom’s holdings of US Treasuries included long-term bonds worth $103.8 billion, representing 78.8 percent of the total, and short-term bonds amounting to $23.2 billion, accounting for 17.6 percent.

In its latest release, the US Department of the Treasury stated: “The sum total in March of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a net TIC (Treasury International Capital) inflow of $254.3 billion.”

Of this, net foreign private inflows accounted for $259.2 billion, and net foreign official outflows reached $4.9 billion.

According to a press release, foreign residents increased their holdings of long-term US securities to $183.2 billion in March, with private investors purchasing $146.0 billion while foreign official institutions recorded net sales of $37.3 billion. US residents also raised their holdings of long-term foreign securities with net purchases of $21.5 billion.

Meanwhile, foreign residents also boosted their US Treasury bill holdings in March. “Foreign resident holdings of all dollar-denominated short-term US securities and other custody liabilities increased by $98.6 billion,” the release added.

Conversely, banks’ net dollar-denominated liabilities to foreign residents dropped by $6.1 billion.

The report said Japan was the largest investor in US treasury bonds in March, with holdings totaling $1.13 trillion, followed by the UK and China, with portfolios valued at $779.3 billion and $765.4 billion, respectively.

The Cayman Islands and Canada were ranked fourth and fifth on the list, with treasury holdings amounting to $455.3 billion and $426.2 billion, respectively.