Aramco’s entrepreneurship arm Wa’ed invests $500k in fitness app

Aramco’s entrepreneurship arm Wa’ed invests $500k in fitness app
The GetMuv app gives Saudi men and women the opportunity to flexible health and wellness memberships to gyms throughout the Kingdom. (Supplied)
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Updated 30 January 2021

Aramco’s entrepreneurship arm Wa’ed invests $500k in fitness app

Aramco’s entrepreneurship arm Wa’ed invests $500k in fitness app
  • The investment is the second injection of cash in GetMuv, following on from a $1.5 million investment in 2019

RIYADH: Wa’ed, the entrepreneurship arm of Saudi Aramco, has announced a $500,000 bridge investment in GetMuv, the Jeddah-based app dedicated to fitness clubs and health centers.

The investment was through the company’s venture capital arm, Wa’ed Ventures, and is the second injection of cash in GetMuv, following on from a $1.5 million investment in 2019.

The app, which gives Saudi men and women the opportunity to have flexible health and wellness memberships at gyms throughout the Kingdom, plans to use the new funding to expand into the Kingdom’s corporate health and wellness sector.

Wassim Basrawi, Wa’ed managing director, said: “This latest funding reflects our confidence in GetMuv’s business model and clear value to the Kingdom’s future. As an innovative, digital solution that is helping boost fitness levels nationwide, GetMuv is another example of ingenuity that is ‘Made in Saudi Arabia’.”

Ibrahim Yousef, GetMuv CEO and co-founder, said: “Since our start-up was created at the end of 2017, GetMuv has developed a loyal customer base of 130,000 registered sport and fitness enthusiasts who gain flexible, affordable and on-demand access to over 100 top gyms, including Body Masters, KORE, Arena, NuYu and other sports clubs across Saudi Arabia.”

The GetMuv deal comes soon after the announcement of Wa’ed’s $500,000 investment in Ynmo, the first Arabic-English software platform for teachers of students with disabilities. The funding, through Wa’ed Ventures, will help the Makkah-based startup invest in its software, hire more staff and expand its services.

Earlier this year, Wa’ed reported that it had tripled the amount of money loaned to startups in the Kingdom last year.

The Dhahran-based initiative gave out 12 loans to small and medium-sized enterprises (SMEs), up from four in 2019, with the value surging to SR31 million ($8.27 million), up from SR10 million in 2019.

In terms of venture capital funding, Wa’ed deployed SR43 million to SMEs, up 34 percent year-on-year.

“In a very challenging year, I am proud of the Wa’ed family, which includes my team and our resilient entrepreneurs, for rising to the challenges and keeping us on track to deliver an even greater impact in 2021,” Basrawi said.


How Islamic finance can help build a better future for all

Islamic finance products ‘aim to reduce the risk of asymmetric information and are contract-based, making them a natural fit for investors.’ (Shutterstock)
Islamic finance products ‘aim to reduce the risk of asymmetric information and are contract-based, making them a natural fit for investors.’ (Shutterstock)
Updated 31 July 2021

How Islamic finance can help build a better future for all

Islamic finance products ‘aim to reduce the risk of asymmetric information and are contract-based, making them a natural fit for investors.’ (Shutterstock)
  • Shariah-compliant finance is a rapidly growing industry that prioritizes sustainable expansion

LONDON: The Islamic finance investment model is a natural fit for investors looking to use their money ethically and sustainably, and could be a key industry in helping the world to achieve the UN’s Sustainable Development Goals (SDGs), experts have told Arab News.

Islamic finance takes a different approach from today’s profit-above-all investment orthodoxy.
It prioritizes low-risk investments, and avoids markets such as pork, alcohol and gambling — as well as barring the payment of interest and ensuring ethical governance.
Far from impeding growth, however, this alternative approach to investing is rapidly evolving into a booming industry, Martina Macpherson, senior vice president of partnerships and engagement at Moody’s ESG Solutions Group, told Arab News.
She and her team expect the industry to hold over $4 trillion in assets by 2030.
“Islamic finance (will) continue to expand in the next decade across regions and asset classes, and there is an opportunity for Islamic Finance and Shariah-compliant investments to align with the UN Sustainable Development Goals,” she said.
Aligned with Saudi Arabia’s own Vision 2030, the SDGs lay out a vision of a just, fair and prosperous world by 2030, codified into 17 interlinked goals designed by the UN as a “blueprint to achieve a better and more sustainable future for all.”
The growth of Islamic finance as an alternative investment model will help to meet these goals in two ways: By uncovering sustainable and ethical opportunities and by reducing risk, she said.
The “SDGs and Islamic finance share joint values and fundamentals,” she said. “They are ethically linked, asset-backed, focused on risk and opportunity management, and centered on good governance as well as stakeholder impact.”

FASTFACTS

• Islamic finance products a ‘natural fit’ for meeting the UN sustainable development goals — Moody’s.

• The growth of Islamic finance as an alternative investment model will help to meet these goals through uncovering sustainable and ethical opportunities and by reducing risk, says expert.

“Islamic finance products aim to reduce the risk of asymmetric information and are contract-based, making them a natural fit for institutional investors committed to positive impact.”
Much like the Kingdom’s Vision 2030, one of the central goals of the SDGs is to tackle climate change, and this is “one of the key areas for Islamic finance to synchronize with the SDGs,” Macpherson said.
Stella Cox, managing director of Islamic finance intermediary firm DDCAP Group, speaking with Arab News, echoed Macpherson’s views on the role that Islamic finance can play in addressing issues like climate change. She emphasized, however, the importance of developing “a set of common standards, laws and regulations that will ensure shared best practice” moving toward 2030.
This cooperation, she said, “should be perceived as opportunity, rather than challenge, and that opportunity will enable Shariah compliant firms to work more closely with others in addressing and providing solutions for the biggest environmental and social challenges that the world has ever faced.”
Samina Akram, managing director of Samak Ethical Finance, told Arab News that the importance of ethical investing has only grown as the millennial generation have been “exposed to the harsh realities of the conventional financial system” in the wake of the 2008 financial crisis.
They have been turned off conventional investing by “bad governance, bad leadership, casino type banking, and a lack of transparency,” Akram said.
And critically, she added, “they want no part to play in damaging the environment.”


4IR can help KSA become a global hub for new drone technology

There were also key areas where 4IR technology could be used in the campaign against climate change. (SPA)
There were also key areas where 4IR technology could be used in the campaign against climate change. (SPA)
Updated 31 July 2021

4IR can help KSA become a global hub for new drone technology

There were also key areas where 4IR technology could be used in the campaign against climate change. (SPA)
  • Improving the Kingdom’s logistical infrastructure is a priority area of the Vision 2030 strategy

DUBAI: Saudi Arabia could become a global center for new drone technology under plans being advanced by the Center for the Fourth Industrial Revolution (4IR) recently inaugurated in Riyadh in partnership with the World Economic Forum (WEF).

Mansour Alsaleh, director of the center, told Arab News that heavy lift drone technology had been prioritized by the Kingdom as one of its 4IR projects. “Saudi Arabia can be a leading country in developing the regulatory framework for heavy-lift drones. It can be ahead of the world,” he said.
Heavy lift drone technology has advanced to a stage where it requires a more sophisticated regulatory framework, he said, not just in the Kingdom but globally, and these are being developed in partnership with the Saudi General Authority of Civil Aviation, the Ministry of Transport and Saudi Aramco. “The applications are endless,” Alsaleh said.
Advanced drones have been used to deliver vaccines in Africa in the course of the pandemic, and American drone manufacturers have also been accelerating their efforts to transport heavy loads — up to 500kg depending on the technology — to locations with poor access. Improving the Kingdom’s logistical infrastructure was identified as a priority area of the Vision 2030 strategy, and drones are seen as a key enhancer of existing transport systems.
“By integrating these two mutually supportive components of regulatory transformation and pilot tests, Saudi Arabia can be a model for the rest of the world while supporting its own industrial development and social goals,” the WEF said in a recent report of which Alsaleh was a co-author.

Mansour Alsaleh

Alsaleh said that the Kingdom had identified 70 opportunities to apply 4IR technologies, and was prioritizing plans in five other areas, apart from drone technology — artificial intelligence (AI), the Internet of Things (IoT), blockchain, government data systems, and “smart cities” such as NEOM.
Each potential project goes through four stages, he explained: Identifying and selection; framework development in partnership with other stakeholders; prototyping and testing; and scaling up within a regulatory framework.
At the recent two-day event run from Riyadh to celebrate the inauguration of the 4IR center, many speakers underlined the need for partnership between government and other parts of the economy and society. Alsaleh reinforced that view. “We are looking for an eco-system, involving the public and regulatory sector, along with private industry and research and academia. It is about having the right blend between those areas,” he said.
One of the challenges was to identify technology at an early stage and take it through the phases of “sandboxing” and testing to further development, even as a regulatory framework was being fully developed. “Sometimes you have just got to take the risk,” he said. Some experts have warned of the challenges associated with rapid technological development, such as vulnerability to cyberattack and concerns over data privacy, but Alsaleh was confident these issues could be met and overcome. “There is no one single recipe to solve these challenges, we need to tackle them one by one. But if we focus more on the benefits that will flow from 4IR technology, it will help you overcome the challenges. We have to minimize the risks from emerging technologies,” he said.
The impact of 4IR technologies cuts across all aspects of human social and economic activity, Alsaleh said. “You cannot limit it to one particular sector, it is everywhere. If you do not keep up with the pace and become an early adopter, you will fall behind,” he explained, underlining the need to strike a balance between the “explore” and “exploit” phases of a 4IR project. But he said that IoT and AI technologies had great market value and could be used in multiple different applications. “You never know what will be shaping the future,” he said.
There were also key areas where 4IR technology could be used in the campaign against climate change. “We have the Circular Carbon Economy initiative. To make a clean energy transition, 4IR must be at the heart of that,” Alsaleh said.
Advanced technologies have been crucial in helping confront the big issues presented by the pandemic, and some changes — such as remote working via virtual communication systems — may become a permanent feature of the post-pandemic world.
Saudi Arabia is one of 13 centers for 4IR around the world, and Alsaleh said the benefits would have global impact.

“Organizations such as the WEF and 4IR are reaching out to everybody. It is all accessible and everyone can benefit from the work,” he said.


Pace of CEO resignations at listed KSA firms picked up amid pandemic

The largest number of resignations in one company was four within three years. (SPA)
The largest number of resignations in one company was four within three years. (SPA)
Updated 31 July 2021

Pace of CEO resignations at listed KSA firms picked up amid pandemic

The largest number of resignations in one company was four within three years. (SPA)
  • Three quarters of the resignations were attributed to special circumstances while 8 percent left for other roles

RIYADH: Saudi Arabian listed companies lost CEOs at twice the average annual pace in the first half of the year as the stresses of the pandemic took their toll.  
There were 128 CEO resignations from 97 companies listed on the Tadawul’s main and parallel markets over the past five years for an average of about 25 a year, according to a study by the Capital Market Authority (CMA). However, 26 CEOs resigned in the past six months, Maaal newspaper reported. The largest number of resignations over the past five years came from the telecommunications sector and the real estate management and development sector with six and 13 resignations, respectively, the study showed.
Three quarters of the resignations were attributed to special circumstances while 8 percent left for other roles. The largest number of resignations in one company was four within three years.
Developing the Saudi market to align with Vision 2030 requires good investment tools and excellent financial results, and the pandemic revealed the inability of some executive departments in some companies, in dealing with the risks and changes occurring, and the lack of capabilities to help them lead companies, Faiz Alhomrani, a financial market analyst told Arab News.

HIGHLIGHT

The largest number of resignations over the past five years came from the telecommunications sector and the real estate management and development sector with six and 13 resignations, respectively, the study showed.

Companies’ shareholders started to see that some CEOs or executive departments did not provide anything, and they couldn’t achieve positive results, neither in financial results nor in cash distributions, during three to four years, Alhomrani said.
“I think four years for a CEO is enough time to be evaluated,” he said.
The number of resignations in 2017 and 2020 was the highest during the study period (2016-2020), which may be attributed to unfavorable economic conditions during those years, with 45 percent of year 2020 resignations occurring in the fourth quarter.
Previous studies confirm that the biggest reason behind forced resignations is the company’s poor performance, CMA said.
The Saudi market today has moved from an internal local market to a global market and has begun to be closely linked to global markets, thus if CEOs have not new ideas, they will have to resign, said Alhomrani.
Major Saudi companies to have lost a CEO last year include STC, Almarai, Savola, Sipchem, Petrochem, Samba, Alinma Bank, Bank Aljazira, NCB and ANB.


UAE to build waste-to-energy plants to burn two thirds of trash

UAE to build waste-to-energy plants to burn two thirds of trash
Updated 30 July 2021

UAE to build waste-to-energy plants to burn two thirds of trash

UAE to build waste-to-energy plants to burn two thirds of trash
  • Dubai is building a $1.1 billion waste-to-energy plant
  • Sharjah, Abu Dhabi also constructing facilities

RIYADH: The UAE plans to build a series of waste incinerators that will eventually burn up to two thirds of the country’s trash to deal with a growing refuse problem.

Dubai is constructing a $1.1 billion waste-to-energy facility, one of the largest in the world, while a smaller plant in being built in Sharjah and will begin operation this year, Bloomberg reported. Two further projects are being built in Abu Dhabi.

Burning trash creates carbon emissions, potentially making it harder for the UAE to reach its target of becoming carbon neutral by 2050.

However, Bee’ah, Sharjah’s waste company, will try to mitigate this by creating green spaces, install a 120-MW solar array on top of the plant and produce hydrogen from the garbage to fuel its rubbish trucks. Sharjah will also be able to close its landfill site.

Bee’ah CEO Khaled Al Huraimel said he wants to export the model across the region, including Saudi Arabia.

While environmentalist favor recycling over burning of trash, turning plastics and other waste into usable products is extremely challenging.

China’s recent ban on the importation of waste “has really changed the economic drivers,” said Mr.John Ord, a UK business director at engineering firm Stantec. “All of a sudden, we have a lot of waste that needs to be dealt with.”


Bitcoin tests the $40k resistance level

Bitcoin tests the $40k resistance level
Updated 30 July 2021

Bitcoin tests the $40k resistance level

Bitcoin tests the $40k resistance level

RIYADH: Bitcoin traded higher on Thursday, rising by 0.03 percent to $39,670.54 at 4:02 p.m. Riyadh time. Ether, the second-most traded global cryptocurrency, was up 0.44 percent to $2,291.72.05, according to data from CoinDesk.

Below is the latest news from the world of cryptocurrency:

Bitcoin buyers have been profitable, as the cryptocurrency tests the $40,000 resistance level. Sentiment has improved significantly over the past week, although some analysts believe it is time to pause before rallying again.

In a CoinDesk report, Justin Chuh, a senior trader at Wave Financial, said: “Bitcoin easily broke through $35,000, but I think it will probably have a harder time going through $40,000 this time.”

But attitudes could easily shift from bullish to bearish as bitcoin was still in a consolidation phase with strong resistance, the report added.

HIGHLIGHT

Bitcoin buyers have been profitable, as the cryptocurrency tests the $40,000 resistance level. Sentiment has improved significantly over the past week, although some analysts believe it is time to pause before rallying again.

Meanwhile, in a research paper published on Wednesday, Bank of America described central bank digital currencies as a more efficient payment system than cash. The second-largest bank in the US by total assets, said that digital central bank currencies could completely replace cash in the distant future.

A report released in May by blockchain infrastructure platform Bison Trails found that around 80 percent of central banks were exploring using digital currencies, with CoinDesk reporting that 40 percent were already testing proof-of-concept programs.

London-based Fabric Ventures has closed a $130 million fund to invest in early stage blockchain companies. One of its supporters is the European Investment Fund, which provided $30 million, marking the first time a European Commission company had invested in a fund focused on digital assets, said CoinDesk.

Stock and cryptocurrency trading app Robinhood has received a $32 billion valuation with its initial public offering and was set to debut on the Nasdaq on Thursday.

In a press statement on Wednesday, Robinhood priced its offering at $38 per Class A common share. The price is at the lower end of the $38 to $42 share price range that the company had targeted, and it planned to sell 5.5 million shares targeting an increase of $1.89 billion.

The firm is trying to reshape its image and said it was working on a new feature that would help protect users from cryptocurrency price volatility, while hiring a former Google graduate to improve the overall product design, according to CoinDesk.