RIYADH: Startups across the Middle East and North Africa continued to attract capital, pursue strategic acquisitions, and expand regional footprints this week, underscoring the growing momentum in the region’s innovation ecosystem. 

From early-stage funding rounds to regulatory milestones, founders and investors are positioning for scale amid a competitive and rapidly evolving market landscape. 

On the acquisition front, UAE-based Tech Universal Ventures has taken over the majority share of FixSquad, an Emirati mobile and electronics servicing brand, and ELVA11, a Swedish AI and software consultancy, as part of its strategy to build a global network of digital infrastructure companies. 

FixSquad operates across the Gulf Cooperation Council region with a hybrid consumer-enterprise model and is introducing a regional franchise framework, while ELVA11 offers software development, AI consulting, and digital education services from its offices in Malmo and Stockholm. 

“These acquisitions reflect our strategy to build and back companies delivering core infrastructure for digital growth,” said Darko Atijas, chief operating officer at TUV.

Fintech startup Stitch raises $10m seed round 

Riyadh-based Stitch has secured $10 million in a seed round led by Arbor Ventures, COTU Ventures, Raed Ventures, and Saudi Venture Capital, with additional support from family offices and angel investors. 

Founded in 2022, the company offers an API-driven platform that allows financial institutions to build and deploy digital solutions more efficiently than legacy infrastructure. 

“At Stitch, our vision is to reinvent how financial and non-financial institutions bring banking and payment products to market,” said Mohamed Oueida, founder and CEO of Stitch.  

Qashio secures $19.8m to expand into KSA 

UAE-based spend management platform Qashio has raised $19.8 million in equity and non-equity funding. 

The round was led by Rocketship VC, with participation from MoreThan Capital, regional banks, and family offices. 

Founded in 2021, Qashio plans to enter the Saudi  market and enhance its B2B loyalty program across MENA. 

Qashio previously raised $10 million in a seed round in 2022.

BirdEye raises $586k pre-seed 

Saudi startup BirdEye has closed a $586,000 pre-seed funding round led by a private tech-focused fund. 

Founded in November by Abdullah bin Omairah and Abdulrahman Al-Hassan, BirdEye offers an operations management platform tailored for small and medium-sized retailers undergoing digital transformation. 

The investment will support the company’s national expansion and team growth. 

Gainz closes 7-figure pre-seed round 

UAE-based Gainz has raised a 7-figure US dollar pre-seed round in a mix of equity and debt led by Antler MENAP, Lithium Holdings, and Eleventh Invest Inc. 

Founded in December, Gainz offers a Shariah-compliant crowdfunding platform that allows individuals to invest in vetted SMEs. 

The platform leverages AI to democratize access to working capital for businesses across the region. 

The new funding will go toward scaling operations and product innovation. 

COREangels MEA launches $10m fund 

COREangels MEA, in partnership with PTS Holdings and the Arab Academy, has launched a $10 million investment fund focused on early-stage fintech startups aligned with the UN Sustainable Development Goals. 

During its 5th Investment Committee in Cairo, five startups — eMaisha Pay, RentBeta, Aqua Offers, Monak, and Reeple — were selected to receive up to $150,000 each. 

The fund employs a hybrid model combining global angel networks with local innovation expertise.

Toolmart raises seed funding 

Iraq-based B2B e-commerce startup Toolmart has secured seed funding from Plus VC, Oasis500, and other angel investors. 

Founded in 2022, Toolmart provides a digital procurement platform that helps enterprises reduce costs and streamline sourcing. 

The new capital will be used to expand its team and operations across the region. 

Valu to begin trading on EGX in June 

Egypt’s leading buy now, pay later platform Valu is set to begin trading on the Egyptian Exchange during the week of June 22, following an in-kind share distribution by parent company EFG Holding. 

Official listing occurred on May 21, 2025. 

Founded in 2017, Valu operates in Egypt and Saudi Arabia and reported 3.1 billion Egyptian pounds in gross revenue and 423 million Egyptian pounds in net profit for 2024. 

Bloomspoon gets $218k on Shark Tank Dubai 

UAE-based greentech startup Bloomspoon raised $218,000 for 49 percent equity on Shark Tank Dubai. 

Founded in 2023 by Mostafa Khattab, Bloomspoon makes reusable cutlery from wheat straw embedded with seeds that can be planted after use. 

The funding will help expand product lines, boost retail distribution, and work toward B Corp. certification. 

Google launches second ‘AI First’ accelerator 

Google has launched the second edition of its “Google for Startups Accelerator: AI First” program for the MENA and Turkiye region. 

The 12-week program is aimed at Seed to series A startups using AI to develop scalable solutions. 

It offers technical resources including cloud credits and mentorship. 

MENA sees 31 percent increase in M&A deals in Q1, led by UAE and tech sector 

According to EY’s MENA M&A Insights report, the region recorded 225 deals worth $46 billion in the first quarter of the year, a 31 percent year-on-year increase in volume and 66 percent rise in value. 

Cross-border activity accounted for over half of all agreements and 81 percent of total value. 

The UAE led with 63 deals totaling $20.3 billion. The technology sector dominated domestic M&A, accounting for 37 percent of deal value. 

The largest domestic transaction was Group 42’s $2.2 billion acquisition of a 40 percent stake in Khazna Data Centers.

RIYADH: Credit card loans from Saudi banks posted their second-highest figure on record in the first quarter of 2025, after an annual rise of 12.53 percent.

According to the Saudi Central Bank, also known as SAMA, this borrowing of SR30.66 billion ($8.18 billion) is just 2 percent below the all-time peak recorded at the end of 2024.

SAMA figures also revealed that consumer loans reached SR479.78 billion in what was a 6.41 percent rise during the same period. 

The vast majority – over 90 percent – of consumer lending falls into a broad “other” category, which includes debt consolidation, personal family expenses, or any borrowing not classified under the specific purposes.

This indicates that many Saudis take personal loans for a range of needs, from home renovations to weddings, but each of those specific uses is a relatively small slice of the overall figures.

Multiple factors are supporting the rapid growth of the credit card segment. A central driver is the national push toward a cashless society under Vision 2030, which has seen SAMA implementing policies to promote electronic payments and reduce dependence on cash.

This includes expanding point-of-sale infrastructure, mandating that businesses accept electronic payments, and fostering fintech innovation. As a result, 79 percent of all retail transactions in 2024 were electronic, card or digital payments, up from 70 percent the year before, according to an April release by SAMA.

In parallel, banking penetration has expanded, with nearly all bank cards in the Kingdom now enabled for contactless payments. By 2023, 98 percent of in-person card transactions were contactless — up from just 4 percent in 2017— according to Visa executive Andrew Torre, speaking to Arab News in October.

The COVID-19 pandemic accelerated this shift to tapping cards and phones, ingraining cashless habits. With nearly 50 million payment cards in circulation and a decline in ATM usage, the ecosystem is primed for card spending over cash.

Another factor is consumer behavior and economic policy. Strong consumer spending in Saudi Arabia — supported by economic growth and initiatives to boost household income — has encouraged more use of credit for purchases.

Rather than delaying purchases, many consumers are comfortable using credit cards to buy now and pay later, especially with the availability of installment plans.

Additionally, banks and payment networks are actively marketing credit cards with attractive promotions. Cashback deals, reward points, airline miles, and no-fee installment offers are abundant, which incentivizes consumers to use credit cards for both large and small purchases.

The entry of Shariah-compliant credit cards has also played a role. By addressing religious sensitivities, Islamic banks have made credit cards acceptable to a wider customer base that previously avoided interest-based products.

Furthermore, the growth of e-commerce and digital services in Saudi Arabia has naturally increased credit card adoption. Online retailers, food delivery apps, ride-hailing, and travel platforms often work best with card payments, so as these services proliferate, so does card usage.

Consumer loan usage and slower growth trends

Credit cards and personal consumer loans differ fundamentally in structure, usage, and cost. Consumer loans in Saudi Arabia are typically taken as a fixed amount to be repaid in installments over a set term, usually at relatively lower interest or profit rates.

They are often used for significant expenses like buying a car, financing education, or other big-ticket needs, and come with a structured repayment plan that helps borrowers budget effectively.

By contrast, a credit card provides a revolving credit line up to a predefined limit, with no fixed repayment period as long as the borrower makes minimum payments.

Traditional consumer loans, which are often called personal loans, remain much larger in absolute terms than credit card debt in Saudi Arabia, but their growth has been relatively sluggish in recent quarters.

These loans — which exclude mortgages — totaled SR471 billion by the end of 2024, and saw annual growth in the mid-single digits compared to double-digit growth for credit cards.

In early 2024, growth was even slower. In the first quarter, consumer lending was up less than 1 percent year-on-year, and in the second quarter around 2 percent, before accelerating later in the year according to SAMA data.

The uses of consumer loans are generally for big one-time expenditures or needs. The largest defined sub-category is financing for vehicles, which accounted for roughly 2.5 percent to 3 percent of total consumer loans in 2024. Other specific purposes include education loans and loans for furniture and durable goods, and vehicle and private transport means.

The recent slower growth of consumer loans compared to credit cards can be attributed to a number of factors.

High interest rates over 2022 to 2023, as global rates climbed, made borrowing via fixed loans less attractive, potentially dampening demand. By contrast, credit card lines were often already in place and could be tapped without a new loan application.

Another factor is the growing availability of credit card installment plans and Buy Now, Pay Later services, which are increasingly used to cover expenses that previously required personal loans. 

With zero-interest installment offers and flexible repayment options — particularly appealing to younger consumers — many now prefer to finance mid-sized purchases through these tools rather than committing to long-term bank loans.

All of this has led to personal loan growth being moderate. Nonetheless, consumer loans did rise in absolute terms, primarily driven by continued needs for cars, education, and other big expenses. 

The credit card segment’s growth outpaced consumer loans by a wide margin, highlighting a shift in how Saudis finance their spending toward more flexible, short-term credit and digital payment tools, and slightly away from traditional fixed personal borrowing.