Enhanced economic integration between Arab countries is essential, says Saudi finance minister
Speaking on the sidelines of the Arab League Summit in Jeddah, Mohammed Al-Jadaan highlighted the Kingdom’s efforts to ensure conditions are right for economic stability in the region
Updated 20 May 2023
Arab News
JEDDAH: Saudi Minister of Finance Mohammed Al-Jadaan said on Friday that a series of global crises have highlighted the importance of economic integration among Arab nations, the necessity for increased cooperation, and the need for the development of sustainable economic and financial models.
He said that such measures would help to enhance resilience in the Arab world in the face of the challenges and risks it faces, the Saudi Press Agency reported.
He was speaking on the sidelines of the 32nd Arab League Summit, which was hosted in Jeddah by the Kingdom, and during which Syria and its president, Bashar Assad, were welcomed back to the organization after a 12-year suspension.
Al-Jadaan welcomed Syria’s return to the Arab League, and highlighted Saudi Arabia’s commitment and efforts to ensure conditions are conducive for economic stability in the region, including the launch multiple initiatives and programs in support of Arab cooperation.
He also talked about the Kingdom’s collaboration with Arab Coordination Group institutions to help enhance food security, including a financial support package worth more than $10 billion to address this important issue.
The minister noted his country’s dedication to efforts that address debt challenges, through the launch of the Common Framework for Debt Treatments. The framework, approved by the G20 leaders during the organization’s summit in Riyadh in 2020, stands as the sole internationally agreed mechanism for restructuring the debt of countries facing repayment difficulties.
Al-Jadaan also highlighted the Kingdom’s humanitarian and development assistance in support of developing countries, especially those in the region, and noted that Saudi Arabia ranks first globally in terms of such support, according to data from the Organization for Economic Cooperation and Development.
He expressed his hope that enhanced collaborations between member states can advance pan-Arab economic and social integration, underscoring the importance of continued progress in this field.
Camel milk set to provide sustenance for Saudi Arabia’s economic transformation
Camels have long served as a crucial food, natural and cultural resource of the Middle East region
Updated 33 sec ago
Rebecca Anne Proctor
RIYADH: Saudi Arabia is currently one of the biggest producers of camel milk and a host of new ventures are making the business a lucrative one in the transformation of the country’s economy.
The Kingdom has an annual output of approximately 0.271 million tons of the product, and Saudi Arabia’s sovereign wealth fund has set up a new firm, Sawani Co., to catalyze the growth of the sector as part of its efforts to transform the country’s economy.
The move comes at a time when the Public Investment Fund’s various investments in the Saudi food and agriculture sector to support its produce industries gain momentum.
“Saudi Arabia has extensive experience and knowledge of the camel dairy industry, and enormous potential to expand its operational capabilities and wider ecosystem,” said Majed Al-Assaf, head of Consumer Goods and Retail in the Middle East and North Africa Investments Division at PIF, in a statement.
He added: “These factors represent a competitive advantage across the entire supply chain, which will enable significant growth of the industry, and eventually lead to the export of camel dairy products to regional and global markets.”
Ahmed Gamaleldeen, CEO of Sawani, affirmed the company’s position in its sector, telling Arab News: “Sawani Co. has an essential role to play in elevating standards within the camel dairy sector. Based in Saudi Arabia with a global reach, our organization seeks to actively contribute to the development of the sector, highlighting the merit of camel-based products from both a health and commercial standpoint.”
He added: “We are committed to raising awareness of camel products through our operations and initiatives, helping to continue a longstanding tradition of sustainable camel milk production to serve Saudi Arabia, the region and other parts of the world.”
While seeking to become a leading producer of camel dairy products, the company will also place sustainability at the center of all stages of production, distribution, and marketing as well as raise awareness of the health benefits of camel dairy products among consumers.
Sawani looks to work with the private sector to boost production capacity and drive sustainable growth of the camel dairy industry.
This includes raising the standards of the domestic production ecosystem through modernizing operations and introducing best scientific practices, improving knowledge localization and transfer and investing in the sector’s latest manufacturing technologies.
Saudi Arabia has extensive experience and knowledge of the camel dairy industry, and enormous potential to expand its operational capabilities and wider ecosystem.
Majed Al-Assaf, head of Consumer Goods and Retail in the Middle East and North Africa Investments Division at PIF
Highlighting the company’s aspirations within the camel dairy industry, Gamaleldeen said Sawani has both regional and international ambitions.
“With a myriad of health benefits associated with camel-based products, our aim is to showcase the product’s commercial viability as a solution for consumers who are lactose intolerant, diabetic or seeking nutrient-dense dairy products,” he said.
The CEO added that Sawani’s long-term strategy is rooted in “Saudi Arabia’s rich camel heritage and sustainable cohesion with one of nature’s most loyal and giving creatures.”
According to research company IMARC, the camel dairy market across the Gulf Corporate Council region reached a value of $702.4 million in 2022, and is expected to see a compound annual growth rate of 4.51 percent from 2023 to 2028.
Camels have long served as a crucial food, natural and cultural resource of the Middle East region.
They provide meat and milk as well as play a role in heritage rituals throughout Saudi Arabia and the greater Middle East. It is estimated that there are around 1.6 million camels in the Kingdom, with over half residing in the provinces of Riyadh, Makkah and the Sharqiya or Eastern Province.
Compared to cow’s milk, camel’s milk has lower levels of fat – perfect for those who are wishing to maintain a healthier lifestyle.
Sawani looks to work with the private sector to boost production capacity and drive sustainable growth of the camel dairy industry. (Supplied)
It contains high amounts of vitamins A, B, E and C, and is also rich in calcium, iron, protein and antioxidants.
The UN Food and Agriculture Organization has endorsed products made from camel milk, saying such goods are greater in nutritional value than goat and cow’s milk in terms of vitamins, minerals and protein.
The Kingdom’s investment in the industry reflects Saudi Vision 2030 to diversify the economy away from its reliance on hydrocarbons.
In the Kingdom, three licensed projects are specializing in camel milk and its various uses, while three other initiatives have been granted preliminary licenses to manufacture consumable camel milk products.
We are committed to raising awareness of camel products through our operations and initiatives, helping to continue a longstanding tradition of sustainable camel milk production.
Ahmed Gamaleldeen, CEO of Sawani
According to Shujaa Al-Bogmi, an associate professor at Imam Mohammad Ibn Saud Islamic University, Sawani’s investment in the camel industry will have a great impact on the growth of the market both locally and internationally.
It will not only raise the production standards for products made from camel milk, but also result in an increased demand for the products from the Gulf region.
An eagerness to make products from camel milk has already jump-started in the Kingdom.
In September, Sawani launched Noug, the first camel milk café opened in Riyadh, specializing in milk, cheese, butter and even gelato.
HIGHLIGHT
The Kingdom has an annual output of approximately 0.271 million tons of the product, and Saudi Arabia’s sovereign wealth fund has set up a new firm, Sawani Co., to catalyze the growth of the sector as part of its efforts to transform the country’s economy.
As IMARC noted in its report, the increasing awareness of the health benefits of camel milk as well as the potential of the market for the product make it a favorable investment opportunity for government initiatives and a crucial catalyst for growth.
Investment in the market also has the potential to promote sustainable farming practices in the Kingdom.
To this end, Sawani is offering financial incentives and subsidies to encourage the growth of the camel dairy sector. Such support extends to both large-scale commercial farms and small-scale farmers, promoting inclusivity and sustainable growth in the industry.
As Gamaleldeen notes: “Sawani Company is dedicated to driving growth in Saudi Arabia’s camel dairy sector. As consumers become aware of the health benefits of camel-based dairy products, we aim to amplify awareness of products, ethically sourced from an animal that has remained a source of pride for the people of the Kingdom.”
Biotech firm utilizes hemp to boost sustainability
Green Desert extends its sustainability solutions using hemp fibers
Updated 12 min 8 sec ago
Nour El-Shaeri
CAIRO: Saudi-based biotech startup Green Desert is aiming to boost the Kingdom’s sustainability with a fresh line of industrial hemp products.
Founded in 2020 by Abdulhadi Al-Amer and Lucas Dietrich, GD was built on the foundation of utilizing biotechnology to commercialize hemp usage in the push toward a more sustainable future.
In an interview with Arab News, GD’s CEO Al-Amer explained how the company is aiming to address the significant benefits and unperceived value of industrial hemp in the region.
“Green Desert offers a wide range of high-quality transformed industrial hemp products. These include hurds, also known as shives, designed explicitly for animal bedding. They are suitable for small pets like poultry, birds of prey, rabbits, and larger animals such as horses and camels,” Al-Amer explained.
“In addition, GD provides hempcrete blocks that can be used in construction projects. These blocks are made from hemp and have excellent insulation properties, making them a sustainable and eco-friendly choice,” he added.
GD extends its sustainability solutions through the provision of hemp fibers, acclaimed for their durability and versatility. These fibers are adeptly utilized for insulation and in the manufacturing of various clothing items, Al-Amer explained.
Additionally, the company provides an array of industries with high-quality hemp seeds, notably utilized in the production of oil and animal feed. Recognized for their nutritional value, these seeds offer a versatile ingredient option across numerous product lines.
Sustainability and hemp
GD is pioneering a shift in sustainability, aligning with Saudi Arabia’s green initiatives. GD’s approach centers on developing advanced bioproducts, biofuels, and bioplastics from renewable resources.
At the heart of the firm’s sustainability vision is the hemp plant, a resource that GD believes can be a game-changer for the planet.
“Hemp has numerous impacts that contribute to a sustainable future, such as its short vegetative cycle, high yields, ability to grow almost everywhere, lack of need for plant protection chemicals, zero waste, contribution to agricultural soil regeneration, low water requirement, and its ability to store a large amount of CO2,” Al-Amer said.
Founded in 2020 by Abdulhadi Al-Amer and Lucas Dietrich, GD was built on the foundation of utilizing biotechnology to commercialize hemp usage. (Supplied)
Furthermore, he explained that hemp’s regeneration of agricultural soil leads to an increase in the yield of subsequent crops by up to 10 percent. Additionally, hemp achieves this with a low water requirement, eliminating the need for extensive irrigation systems.
“One of the most notable environmental contributions of hemp is its capacity to sequester carbon dioxide. Hemp can store approximately 15 tons of CO2 per hectare per year, making it a powerful tool in the fight against climate change,” Al-Amer said.
Addressing a regional misconception
“The market in which GD operates, specifically the industrial hemp industry, is highly sensitive. To ensure continued growth and success, GD has implemented several key strategies,” Al-Amer told Arab News.
“Firstly, we prioritize education and awareness about hemp and its benefits in Saudi Arabia and the region. To achieve this, GD leverages successful education campaigns conducted by European countries, the US, and other countries. The goal is to dispel misconceptions and clarify that hemp is not a drug but a valuable resource,” he continued.
“Additionally, GD has established partnerships with experts and organizations in Europe and the US. Through these partnerships, they develop educational
materials and programs specifically tailored to the Saudi Arabian market and the Gulf countries. These strategies aim to foster understanding and acceptance of hemp, ultimately driving the growth and success of GD in this sensitive market,” he added.
Furthermore, the company has positioned itself as a catalyst for commercializing the undervalued hemp industry by becoming a center of knowledge and reliability.
“GD’s strategy includes presenting substantial evidence and records to affirm that hemp cultivation and utilization can be effectively controlled and regulated, ensuring it is devoid of THC, the psychoactive component, thus addressing prevalent misconceptions and demonstrating hemp’s safe and versatile applications,” Al-Amer explained.
Strategic cooperation
GD is setting a new standard in sustainability by establishing strategic partnerships with leading companies and government bodies.
The company recently received a license from Saudi Arabia’s Ministry of Environment, Water, and Agriculture to further extend its research and operations.
“GD is actively partnering with governmental entities, specifically MEWA in Saudi Arabia. The collaboration between GD and MEWA strongly indicates their close cooperation and shared goals,” Al-Amer said.
The market in which GD operates, specifically the industrial hemp industry, is highly sensitive. To ensure continued growth and success, GD has implemented several key strategies.
Abdulhadi Al-Amer, Green Desert CEO
“This license showcases the trust and confidence MEWA has placed in GD, acknowledging its expertise and commitment to compliance with regulatory requirements,” he added. The company also holds several intellectual properties, the most notable one is an exclusive authorization granted by the Saudi government.
Furthermore, GD recently signed a strategic cooperation agreement with France’s La Chanviere to further boost its biotech capabilities.
“By incorporating the knowledge gained from these partnerships into their operations, GD actively contributes to creating a knowledge-based economy.
This aligns with Saudi Arabia’s Vision 2030 and further strengthens GD’s position as a leader in innovative biotechnology solutions,” Al-Amer said.
Business foundations
“As the only company authorized to bring transformed industrial hemp products into the Saudi market, GD enjoys a significant competitive advantage. This distinction not only sets the company apart from its competitors but also positions it as a trusted and reliable source of high-quality hemp-based solutions,” Al-Amer said.
The company’s revenue streams stem from several hemp-based products. The primary source of income is the supply of hemp hurds or shives.
HIGHLIGHT
GD is pioneering a shift in sustainability, aligning with Saudi Arabia’s green initiatives. GD’s approach centers on developing advanced bioproducts, biofuels, and bioplastics from renewable resources.
Another source is the company’s production and sale of its hempcrete blocks.
“We aim to supply every horse, camel and small pet owner in the Gulf countries with the best quality bedding they can get on the market. Additionally, we aim to supply building companies and mega projects such as the Line with the most sustainable construction material available on the market,” Al-Amer said.
Future potential
“As pioneers in Saudi Arabia’s hemp market, GD is focused on fostering competition by highlighting the importance of its solutions,” Al-Amer explained.
He stated that this includes highlighting the environmental advantages of hemp, such as its ability to sequester carbon dioxide and reduce the need for synthetic materials.
Moreover, Al-Amer underscored the importance of collaboration and engaging with stakeholders to shed light on the nascent sector.
“By doing so, GD increases awareness and creates a platform for dialogue and collaboration, which can further foster competition and innovation in the market,” he added.
Startup Wrap – Saudi Arabia leads November’s funding spree with $338m
Updated 09 December 2023
Nour El-Shaeri
CAIRO: Saudi Arabia’s startup ecosystem continues to dominate the region after raising the most funds in the Middle East and North Africa during November.
According to Wamda’s Monthly report, the MENA region saw $764 million raised across 42 rounds in November – a 390 percent month-on-month increase and a 74 percent growth year-on-year.
Saudi Arabia topped the charts with $338 million secured across nine deals. The UAE came in second with $284 million across 22 deals and Egypt followed with $130.5 million over 5 deals.
Omniful provides merchants with a unified management system, warehouse management system, and transport management system to scale their businesses.
Furthermore, the remaining capital was raised by startups based in Kuwait, Morocco, Oman, and Tunisia.
Funding activity experienced a notable resurgence across all stages, with mega rounds constituting a significant portion of the capital influx.
Noteworthy among these rounds were a $250 million debt round secured by Saudi Arabia-based Tamara, a substantial $200 million series D funding by the Kingdom’s Tabby, and a $130 million raised by Egypt’s MNT-halan through securitized bonds.
Collectively, these three rounds made up around 76 percent of the total funding raised during November.
In the recent funding landscape, the fintech sector emerged as the frontrunner in terms of funding volume, raising $485.9 million, primarily driven by the significant rounds raised by Tamara and Tabby.
FASTFACT
Noteworthy among these rounds were a $250 million debt round secured by Saudi Arabia-based Tamara, a substantial $200 million series D funding by the Kingdom’s Tabby, and $130 million raised by Egypt’s MNT-halan through securitized bonds.
This sector also ranked second in terms of the number of deals, recording nine in total. Furthermore, a notable boost to the super app sector’s funding status was recorded with the industry raising $131 million during the month, thanks to MNT-Halan‘s round.
The education technology sector managed to secure $41.4 million in funding, largely due to a major transaction by Saudi Arabia-based Noon.
Additionally, several other sectors witnessed funding rounds reaching into the tens of millions.
Notable among these were Saudi-based Retailo’s $15 million, Saudi Ajras’ $28 million, UAE’s Flow48’s $25 million, and Emirati Immensa’s $20 million round.
Out of the 42 deals reported, 10 successfully attracted direct global investment, predominantly from US-based investors.
Within the region, UAE-based investors took the lead, participating in 21 deals, with Modus Capital standing out through its investment of $2.8 million across eight startups via its venture builder program. Saudi Arabian investors followed closely, engaging in 10 deals.
In terms of founder gender dynamics, male-founded startups dominated the funding scene, securing $753 million across 29 deals, accounting for 98.5 percent of the total funding.
In stark contrast, female founders received less than 2 percent of the overall capital, amounting to $9 million. Mixed-gender founding teams raised the remaining 0.2 percent.
Mtor’s founder and CEO, Mohamed Maged, established the startup in April 2022. (Supplied)
The report indicated that nine startups did not disclose their exact funding amounts. A conservative estimate of $100,000 was assigned to each of these ventures.
These were NOWmoney, Awfar, and Lynk, as well as Lath, Chari, Wayup Sport, and Winshot, Akhdar, and Farcana.
Supply chain and ecommerce enabler Omniful raises $5.85m to boost regional operations
Supply chain and ecommerce enabler startup Omniful, co-headquartered in Saudi Arabia and the UAE, has raised $5.85 million in a seed funding round.
Led by VentureSouq, the round saw participation from 500 Global, DASH Ventures, Jahez Group, as well as SEEDRA Ventures, Bunat Ventures, Hala Ventures, and RZM Investments, along with family offices including Al Rasheed, Siraj Holding, Al Bawardi, Al Nafea, and a number of angel investors.
Founded in 2022 by Mostafa Abolnasr and Alankrit Nishad, Omniful provides merchants and fulfillment providers with a unified management system, warehouse management system, and transport management system to scale their businesses.
Mostafa Abolnasr, Omniful cofounder and CEO
Abolnasr, also the company’s CEO, said: “The future of commerce is hyperlocal and omnichannel, with consumers expecting brands to be closer to them, to deliver faster and offer a personalized experience. At Omniful, we are equipping merchants in this $4 trillion industry with a single platform to manage all their sales channels and deliver on time and in full, improving their efficiencies by 40 percent and their customer retention by 15 percent.”
He added: “Our seed round marks a major milestone, and together with our investors, we are excited about going out of stealth and launching our sales and marketing efforts in the Middle East, Africa, and India, followed by Europe and US.”
The future of commerce is hyperlocal and omnichannel, with consumers expecting brands to be closer to them, to deliver faster and offer a personalized experience.
Mostafa Abolnasr, Omniful cofounder and CEO
The company aims to utilize its fresh influx of capital to boost its operations in existing markets, primarily the UAE and the Kingdom, as well as double down on its technology development.
Nishad, the company’s chief technology officer, said: “As a product-led organization, our technology is a clear differentiator, making us the platform of choice for omnichannel merchants and high-volume 3PL (third party logistics) fulfillment providers. Over the next year, we will double down on growing our technology capabilities in India, while also planning for the launch of our platform there.”
Egypt’s Mtor closes $2.8m in a pre-seed round
Egypt’s online car parts marketplace Mtor has closed a $2.8 million pre-seed funding round led by Algebra Ventures with participation from Dutch Founders Fund, Aditum Ventures, LoftyInc Capital Management, and angel investors.
Founded in 2022 by Mohamed Maged, Moaz El-Megharbel, Mohamed Altaf, and Khaled Kandil, Mtor aims to revamp the car parts industry in Egypt with a unified online platform.
“It can be a car owner’s nightmare to get their car serviced. Mtor was founded to fundamentally transform this reality and make the process easier and more efficient, empowering a layer of local car workshops that are well rounded with quality parts, a suitable price position, and a good customer experience,” Maged, CEO of Mtor, said.
The company aims to utilize the received funding to further grow its product range and expand its local workshop client-base.
ISLAMABAD: The State Bank of Pakistan (SBP) adopted a collaborative approach to developing a regulatory framework for startups and FinTech companies by issuing preliminary guidelines on Friday with an aim to test them against innovative products and business models before adopting the final set of rules.
The SBP’s “regulatory sandbox” approach is designed to provide a controlled environment for innovators to test their products and technologies, making it easier for the regulator to understand their implications for financial stability and consumer protection.
“State Bank of Pakistan has issued draft guidelines on regulatory sandbox for public consultation,” it said in a brief statement.
The SBP added this would allow the regulated entities, such as startups and FinTech firms, to participate in the process of testing new products and their preferred business models within the provided legal framework.
“As envisioned in SBP Vision 2028, the regulatory sandbox will encourage innovation in digital financial services and facilitate the existing and new market participants to build robust digital payments ecosystem in Pakistan,” the central bank explained in its statement.
“Similarly, it will help SBP to issue instructions and regulations for new and innovative FinTech solutions, ultimately resulting in increased financial and digital inclusion in the country,” it added.
The SBP said its initiative would strengthen its engagement with stakeholders in shaping the future of the country’s financial industry.
It invited banks, FinTech firms, industry experts, public and all interested parties to participate in the consultation process.
Pakistani startups, especially in fintech, e-commerce and logistics, have been attracting considerable investment from both domestic sources and international venture capital firms.
This burgeoning ecosystem, fueled by significant government support and a surge in digital adoption among a young, tech-savvy population, is said to be positioning the country as an emerging hub for technological innovation and entrepreneurship.
As the country increasingly depends on high-tech companies for efficient service delivery, it has been encountering various regulatory challenges.
The regulatory sandboxes approach has also been adopted by other countries, including the United Kingdom, Singapore, Australia and Canada etc., among many others.
Each country’s sandbox is tailored to its specific regulatory environment and financial sector needs, though the core idea is to provide a space where new and potentially disruptive financial technologies can be tested safely and without immediately incurring the full burden of financial regulation.
