MENA’s top 4 most funded agri-tech startups

Founders of Red Sea Farms, and Pure Harvest Farms. Agricultural technology can be services or applications. (Supplied)
Founders of Red Sea Farms, and Pure Harvest Farms. Agricultural technology can be services or applications. (Supplied)
Short Url
Updated 25 September 2022

MENA’s top 4 most funded agri-tech startups

Founders of Red Sea Farms, and Pure Harvest Farms. Agricultural technology can be services or applications. (Supplied)
  • Technology is reshaping the traditional model of farming to improve profitability

CAIRO: With its severe environments and large areas of unused land, the Middle East and North Africa region is in prime need of agricultural and technological advancement.

Agri-tech, also called agtech, the use of technology in agriculture, horticulture, and aquaculture, is reshaping the traditional model of farming to improve yield, efficiency and profitability.

Although agri-tech’s potential may be overlooked by investors, the sector has been performing well, raising $265 million in H1 2022 and ranking as the fifth best performing sector in terms of amount invested, according to a report by MAGNiTT.




Red Sea Farms Founders.

Arab News has compiled a list of four agri-tech startups headquartered in the MENA region which have received the highest amount of funding in the sector.

Pure Harvest Farms                          

Total Funding: $334.4m

Founders: Mahmoud Adi, Sky Kurtz and Robert Kupstas

Main investors: Shorooq Partners, IMM Investment, Abu Dhabi Investment Office, Mohammed Bin Rashid Investment Fund, and Shuaa Capital

Headquarters: UAE

Founded: 2016

Pure Harvest Smart Farms is an agri-tech company based in the UAE focusing on the year-round production of premium fruits and vegetables. The company is not only ranked the first startup in terms of funding in the agri-tech sector, but also one of the most funded in the entire MENA startup ecosystem. In its last funding round, Pure Harvest Smart Farms secured $180.5 million by global investors to fuel its expansion across Gulf Cooperation Council countries and Asia.

Red Sea Farms

Total Funding: $38.8m

Founders: Ryan Lefers, Mark Tester and Derya Baran

Main investors: Saudi Aramco Entrepreneurship Ventures, KAUST Innovation Fund, Savola Group, Global Ventures, and Future Investment Initiative Institute.




Hussein Abo Bakr, Co-founder of Mozare3 (L) and Gregory Lu, Founder of Natufia. (Supplied)

Headquarters: Saudi Arabia

Founded: 2018

Founded by three industry specialists, Red Sea Farms is an agri-tech company that allows farmers to crop using primarily salt water. The company tackles the region’s arid environment by providing farmers with the right technology to sustainably grow their produce. In April 2022 the company raised its most recent funding round of $18.5 million to expand its regional and global footprint.

Natufia Labs

Total funding: $4.8m

Founders: Gregory Lu, Lauri Kapp and Nadim Taoubi

FASTFACT

Although agri-tech’s potential may be overlooked by investors, the sector has been performing well, raising $265 million in H1 2022 and ranking as the fifth best performing sector in terms of amount invested, according to a report by MAGNITT.

Main investors: KAUST Innovation Fund and Butterfly Ventures

Headquarters: Saudi Arabia

Founded: 2014

Estonian-born agri-tech Natufia Labs relocated its headquarters to Jeddah after receiving an investment led by the Saudi-based KAUST Innovation Fund. The company is providing a mixture of advanced technology and years of research and development experience in sustainable indoor food production. Natufia Labs raised $3.5 million in a series A funding round led by KAUST which was used for the relocation as well as research and development.

Mozare3

Total funding: $1m

Founders: Hussein Abou Bakr and Tamer El-Raghy

Main investors: Algebra Ventures, Disruptech, and EFG-EV

Headquarters: Egypt

Founded: 2020

Founded in 2020, Mozare3 is aiming to provide over 20 million farmers in Egypt with access to credit and market solutions. The company helps farmers sell their crops by working with international buyers as well as reducing the risk of waste. In 2021, Mozare3 was able to raise $1 million in a pre-seed funding round co-led by Algebra Ventures and Disruptech, to build the first digital community for farmers that offers expert support.

 

 


G7 joins EU on $60-per-barrel price cap on Russian oil

G7 joins EU on $60-per-barrel price cap on Russian oil
Updated 03 December 2022

G7 joins EU on $60-per-barrel price cap on Russian oil

G7 joins EU on $60-per-barrel price cap on Russian oil
  • US Treasury Secretary Janet Yellen said in a statement that the agreement will help restrict Putin’s “primary source of revenue for his illegal war in Ukraine while simultaneously preserving the stability of global energy supplies”

WASHINGTON: The Group of Seven nations and Australia joined the European Union on Friday in adopting a $60-per-barrel price cap on Russian oil, a key step as Western sanctions aim to reorder the global oil market to prevent price spikes and starve President Vladimir Putin of funding for his war in Ukraine.
Europe needed to set the discounted price that other nations will pay by Monday, when an EU embargo on Russian oil shipped by sea and a ban on insurance for those supplies take effect. The price cap, which was led by the G7 wealthy democracies, aims to prevent a sudden loss of Russian oil to the world that could lead to a new surge in energy prices and further fuel inflation.
US Treasury Secretary Janet Yellen said in a statement that the agreement will help restrict Putin’s “primary source of revenue for his illegal war in Ukraine while simultaneously preserving the stability of global energy supplies.”
The agreement comes after a last-minute flurry of negotiations. Poland long held up an EU agreement, seeking to set the cap as low as possible. Following more than 24 hours of deliberations, when other EU nations had signaled they would back the deal, Warsaw finally relented late Friday.
A joint G-7 coalition statement released Friday states that the group is “prepared to review and adjust the maximum price as appropriate,” taking into account market developments and potential impacts on coalition members and low and middle-income countries.
“Crippling Russia’s energy revenues is at the core of stopping Russia’s war machine,” Estonian Prime Minister Kaja Kallas said, adding that she was happy the cap was pushed down a few extra dollars from earlier proposals. She said every dollar the cap was reduced amounted to $2 billion less for Russia’s war chest.
“It is no secret that we wanted the price to be lower,” Kallas added, highlighting the differences within the EU. “A price between 30-40 dollars is what would substantially hurt Russia. However, this is the best compromise we could get.”
The $60 figure sets the cap near the current price of Russia’s crude, which recently fell below $60 a barrel. Some criticize that as not low enough to cut into one of Russia’s main sources of income. It is still a big discount to international benchmark Brent, which slid to $85.48 a barrel Friday, but could be high enough for Moscow to keep selling even while rejecting the idea of a cap.
There is a big risk to the global oil market of losing large amounts of crude from the world’s No. 2 producer. It could drive up gasoline prices for drivers worldwide, which has stirred political turmoil for US President Joe Biden and leaders in other nations. Europe is already mired in an energy crisis, with governments facing protests over the soaring cost of living, while developing nations are even more vulnerable to shifts in energy costs.
But the West has faced increasing pressure to target one of Russia’s main moneymakers — oil — to slash the funds flowing into Putin’s war chest and hurt Russia’s economy as the war in Ukraine drags into a ninth month. The costs of oil and natural gas spiked after demand rebounded from the pandemic and then the invasion of Ukraine unsettled energy markets, feeding Russia’s coffers.
US National Security Council spokesman John Kirby told reporters Friday that “the cap itself will have the desired effect on limiting Mr. Putin’s ability to profit off of oil sales and limit his ability to continue to use that money to fund his war machine.”
More uncertainty is ahead, however. COVID-19 restrictions in China and a slowing global economy could mean less thirst for oil. That is what OPEC and allied oil-producing countries, including Russia, pointed to in cutting back supplies to the world in October. The OPEC+ alliance is scheduled to meet again Sunday.
That competes with the EU embargo that could take more oil supplies off the market, raising fears of a supply squeeze and higher prices. Russia exports roughly 5 million barrels of oil a day.
Putin has said he would not sell oil under a price cap and would retaliate against nations that implement the measure. However, Russia has already rerouted much of its supply to India, China and other Asian countries at discounted prices because Western customers have avoided it even before the EU embargo.
Most insurers are located in the EU or the United Kingdom and could be required to participate in the price cap.
Russia also could sell oil off the books by using “dark fleet” tankers with obscure ownership. Oil could be transferred from one ship to another and mixed with oil of similar quality to disguise its origin.
Even under those circumstances, the cap would make it “more costly, time-consuming and cumbersome” for Russia to sell oil around the restrictions, said Maria Shagina, a sanctions expert at the International Institute for Strategic Studies in Berlin.
Robin Brooks, chief economist at the Institute of International Finance in Washington, said the price cap should have been implemented when oil was hovering around $120 per barrel this summer.
“Since then, obviously oil prices have fallen and global recession is a real thing,” he said. “The reality is that it is unlikely to be binding given where oil prices are now.”
European leaders touted their work on the price cap, a brainchild of Yellen.
“The EU agreement on an oil price cap, coordinated with G7 and others, will reduce Russia’s revenues significantly,” said Ursula von der Leyen, president of the European Commission, the EU’s executive arm. “It will help us stabilize global energy prices, benefiting emerging economies around the world.”
 

 


As IMF funding delayed, Pakistan expects $3bn from friendly country

As IMF funding delayed, Pakistan expects $3bn from friendly country
Updated 03 December 2022

As IMF funding delayed, Pakistan expects $3bn from friendly country

As IMF funding delayed, Pakistan expects $3bn from friendly country
  • An IMF review for the release of its next tranche of funding has been pending since September
  • Pakistan's finance minister, Ishaq Dar, said all targets for the IMF's ninth review had been completed, adding that withholding a tranche despite that would not make sense

ISLAMABAD: Pakistan expects to secure $3 billion in external financing from a friendly country in two weeks, its finance minister said on Friday as the South Asian country awaits IMF funding.
An International Monetary Fund (IMF) review for the release of its next tranche of funding has been pending since September, leaving Pakistan in dire need of external financing.
Pakistan’s finance minister, Ishaq Dar, said on Friday in an interview with Geo News TV that all targets for the IMF’s ninth review had been completed, adding that withholding a tranche despite that would not make sense.
Pakistan secured a $6 billion bailout in 2019 under an Extended Fund Facility (EFF), that was topped up with another $1 billion earlier this year.
“We continue to engage in discussions with the government over policies to address the humanitarian and rehabilitation needs of the floods while promoting macroeconomic and fiscal sustainability,” the IMF’s resident representative in Pakistan, Esther Perez Ruiz, said in a statement.
Dar said Pakistan’s foreign reserves, which have dropped to $7.5 billion, will be shored up with a $3 billion financing from a friendly country in the next two weeks.
That is hardly enough for a month of imports for Pakistan, which has been facing a widening current account deficit and a balance of payments crisis.
“All the requirements for the ninth (IMF) review are completed,” Dar said, adding that the international lender was “behaving abnormal” by not completing the review.
Pakistan will make alternate arrangements in case of any delay from the IMF, he said.
“If the money doesn’t come, we will manage, no problem,” he added.

Related


Dubai’s Careem celebrates 1bn rides

Dubai’s Careem celebrates 1bn rides
Updated 02 December 2022

Dubai’s Careem celebrates 1bn rides

Dubai’s Careem celebrates 1bn rides
  • Family trip back home to India brings delight to employee
  • Super app had 10th anniversary in July 

 

DUBAI: Hailing app Careem has celebrated the completion of 1 billion rides across the Middle East, North Africa and Pakistan.

The billionth journey was completed by Captain Razak Uppattil, who has completed 10,500 rides since joining Careem four years ago. 

To commemorate the milestone, the Dubai-based super app gave Uppattil a trip back home to visit his family in India.

He said: “It’s the people that I get to meet from all over the world that I really enjoy.

“I have three children back home in Kerala, India, and I am so excited I’ll see them soon.”

Genera Tesoro, who was Careem’s 1 billionth passenger, was given a year of ride-hailing trips to mark the milestone. 

Careem, which marked its 10-year anniversary in July, is now operating in more than 100 cities in 14 countries. It recently expanded its fleet in Qatar by more than 50 percent ahead of the World Cup.


Saudi Arabia’s PIF announces establishment of Aseer Investment Company

Saudi Arabia’s PIF announces establishment of Aseer Investment Company
Updated 02 December 2022

Saudi Arabia’s PIF announces establishment of Aseer Investment Company

Saudi Arabia’s PIF announces establishment of Aseer Investment Company
  • AIC will unlock a wide range of investment opportunities for domestic and international investors across number of sectors

RIYADH: Saudi Arabia’s Public Investment Fund has established a company to operate as its investment arm in the Aseer region of Saudi Arabia.

The Aseer Investment Company will promote and stimulate local and foreign direct investment to develop and transform the region into a year-round tourism destination.

AIC will unlock a wide range of investment opportunities for domestic and international investors across number of sectors including tourism, hospitality, healthcare, sports, education, food, and many other fast-growing domestic industries.

The company will contribute to fostering public-private partnerships, creating jobs for the local community and promoting the region’s tourism and attractive investment opportunities.

“Aseer Investment Company aims to become a leading facilitator of broad-ranging investment opportunities in Aseer, Raid Ismail, head of Direct Investments for the Middle East and North Africa at PIF said.  

“AIC will promote the region’s rugged mountains, stunning nature, and storied culture, preserve its ancient history and heritage, and transform it into a world-class tourist destination for visitors from across the globe in line with PIF’s strategy and Vision 2030,” he added.

The establishment of the company is in line with PIF’s strategy to unlock the capabilities of promising sectors in Saudi Arabia, support the country, and in line with Asir’s region position as a leading investment destination.

Saudi Arabia is offering investment opportunities worth $6 trillion in the travel and tourism sector through to 2030.

Speaking at the World Travel and Tourism Council Global Summit in Riyadh on Nov. 29, the Saudi Minister of Tourism, Ahmed Al-Khateeb said: “We built our tourism industry against the backdrop of a global disaster (COVID-19 pandemic). And we now have $6 trillion of investment opportunities through 2030,” said Al-Khateeb.

Saudi Arabia’s tourism sector will create 1 million jobs by 2030 and the Kingdom will welcome 100 million visitors, said Qusai Al-Fakhri, CEO of the Saudi Tourism Development Fund earlier this year.

The sector will create one of every three new jobs in Saudi Arabia in the next decade, as the nation focuses more on the growth of non-oil sectors, said Al-Fakhri.

Talking about the progress of the Saudi tourism sector at the Future Hospitality Summit in Riyadh, he said: “Last year, with the support of the tourism ecosystem, and the larger government ecosystem and enablers, Saudi Arabia achieved record levels of domestic tourism that is remarkable globally.”

Al-Fakhri also noted that the tourism sector is expected to contribute 10 percent to the Kingdom’s gross domestic product by the end of this decade.


TASI slips 74 points to close at 10,840 amid investor ambiguity: Closing bell

TASI slips 74 points to close at 10,840 amid investor ambiguity: Closing bell
Updated 01 December 2022

TASI slips 74 points to close at 10,840 amid investor ambiguity: Closing bell

TASI slips 74 points to close at 10,840 amid investor ambiguity: Closing bell

RIYADH: Saudi Arabia’s benchmark index on Thursday fell 74.26 points to close at 10,840.74 after touching a peak of 10,957.64 at 10:20 SAST, reflecting a sense of ambiguity among investors. 

The parallel market Nomu also finished its trail 497.85 points lower at 18,903.74 after snowballing to 18,778.82 at 11:53 SAST. 

The advance-decline ratio, however, bucked the trend, with 126 stocks of the listed 219 heading north and 75 turning south. The total trading turnover was SR4.86 billion ($1.29 billion). 

Sahara International Petrochemical Co., in a regulatory filing on Thursday, announced a 15 percent cash dividend or SR1.50 per share, resulting in a dole out of SR1.087 billion for the second half of 2022. The company’s share price picked the drift and closed 5.72 percent higher to SR37.90. 

Taiba Investments Co. on Thursday also announced that it awarded a construction contract worth SR283 million to Orient Construction Company Weavers Ltd. to build a four-star Novotel hotel project in Madinah. The stock closed lower at SR26.90 after peaking at SR27.10. 

Meanwhile, Arabian Internet and Communications Services Co. (Solutions) informed Tadawul just before closing about its agreement with Saudi Telecom Company worth SR372.92 million to provide technical, administrative and logistical services. The share closed slightly lower at SR246. 

The Capital Market Authority on Thursday also Saudi Arabian Amiantit Co.’s request to increase its capital through a rights issue worth SAR 346.5 million. 

There was a blip of a bullish wave in the Software & Services index, which closed up 401 points at 36,540.33. The Healthcare Equipment & Services index also increased 103.04 points to close at 9,380.2.  

However, some of Thursday’s biggest losers were the Saudi British Bank, the National Company for Learning and Education, Arab National Bank, The Company for Cooperative Insurance and Bank Albilad. 

The Diversified Financial index was under the weather in November as it recorded the steepest decline of 15.9 percent in the Gulf Cooperation Council in November. 

A Kamco Invest research report highlighted that the Saudi Stock Exchange witnessed the after all the constituents of the index reported declines. 

Barring the Consumer Service index, the monthly sectoral performance chart declined across the board.  

The Utilities and Capital Goods indices were next with a decline of 15.2 percent and 11.7 percent, followed by Consumer Durables & Apparel and Materials indices with declines of 10.8 percent and 10.6 percent, respectively.