Dubai’s YallaHub gears up to expand presence in Saudi Arabia

Dubai’s YallaHub gears up to expand presence in Saudi Arabia
By the end of 2023, the Dubai-based e-commerce facilitator aims to attract over 100 brands from all markets and reach $10m in annual recurring revenue. (Reuters)
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Updated 06 June 2023
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Dubai’s YallaHub gears up to expand presence in Saudi Arabia

Dubai’s YallaHub gears up to expand presence in Saudi Arabia
  • The company has set its strategy on Gulf expansion with Saudi Arabia being the primary market: CEO

CAIRO: Seeking to explore the immense growth opportunities in Saudi Arabia, Dubai-based e-commerce facilitator YallaHub launched a full-throttle expansion plan to enter the Kingdom’s burgeoning market by the second quarter of 2023. 

Founded at the end of 2022, YallaHub is a marketplace aggregator and digital distributor that enables brands to scale their e-commerce businesses on a regional and global level. 

In an interview with Arab News, Leo Dovbenko, CEO and co-founder of YallaHub, said that the company has set its strategy on Gulf expansion with Saudi Arabia being the primary market. 

“Saudi Arabia’s expansion presents a significant growth opportunity for YallaHub. By entering the Kingdom, YallaHub will tap into its large consumer base, leverage the country’s favorable economic conditions, utilize well-developed infrastructure, and establish strategic partnerships,” Dovbenko said. 

The CEO announced that YallaHub, with its ambitious objectives, has initiated its expansion process and is set to officially commence operations in Saudi Arabia by mid-summer 2023.

High aspirations

YallaHub reaffirmed its commitment to the Saudi market, by setting ambitious objectives to position the Kingdom at the epicenter of innovation. 

“First and foremost, we’re dedicated to helping ‘Made in Saudi’ brands gain worldwide recognition, fostering their growth, and expanding their reach across new markets,” Dovbenko said. 

He also highlighted that YallaHub’s support has the potential to help over a million small and medium enterprises escalate their presence regionally and globally. 

“Secondly, women are the majority of our clients, wanting to start a simple online business. We are developing educational support to help them,” he said. 

“We are committed to empowering female entrepreneurs in the Kingdom, unleashing their potential in the realm of e-commerce. Our all-in-one solution offers a seamless and comfortable platform for boosting e-commerce sales, encouraging women to confidently navigate the digital landscape and achieve success,” Dovbenko added. 

YallaHub aims to foster Saudi’s e-commerce growth by offering a comprehensive solution to significantly aid SMEs. 

“YallaHub supports the government’s Vision 2030 agenda of increasing the number of SMEs, expanding the geographical coverage of e-commerce delivery beyond the Kingdom’s major cities, and creating a thriving entrepreneurial ecosystem in Saudi Arabia,” Dovbenko said. 

He further added that the company’s mission aligns perfectly with Vision 2030’s goal to encourage more women to enter the business world.  “YallaHub’s solutions will allow SMEs to scale up operations across the Middle East and North Africa markets and expand globally through various sales channels simultaneously. This, in turn, can lead to overall growth in the Kingdom’s e-commerce sector, increase exports and create a more thriving entrepreneurial ecosystem,” Dovbenko explained. 

“Our ultimate goal is to eliminate boundaries for ambitious entrepreneurs who produce innovative products, allowing them to reach new markets without limits,” he added.

By entering the Kingdom, YallaHub will tap into its large consumer base, leverage the country’s favorable economic conditions, utilize well-developed infrastructure, and establish strategic partnerships.

Leo Dovbenko, CEO and co-founder of YallaHub

Dovbenko highlighted that YallaHub’s principal mission is to address the hurdles encountered by businesses during online expansion. He stated that the company is dedicated to eliminating “any obstacles” to regional growth. 

With one foot already in the market, YallaHub has sealed five agreements with brands seeking expansion outside the Kingdom, while onboarding 30 brands aspiring to penetrate the Saudi market. 

“YallaHub is in partnership negotiations with the Ministry of Investment, the Ministry of Commerce, and the Small and Medium Enterprises General Authority, also known as Monsha’at,” Dovbenko added. 

The company is currently opening a local office in Riyadh and is looking to hire an on-ground team. 

“We see many companies that want to expand out of the Kingdom and companies who want to enter this market. Our Saudi office will work in both directions, and this will help us to grow faster,” he added. 

YallaHub offers an extensive array of products designed to dismantle any scalability hurdles facing e-commerce businesses. 

The company offers registration and licensing services, export and import assistance, storage and fulfilment, super-fast delivery, marketing, e-commerce setup and payment gateway rent. 

YallaHub’s primary target market comprises countries in the Gulf Cooperation Council which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. 

HIGHLIGHTS

• The company offers registration and licensing services, export and import assistance, storage and fulfillment, super-fast delivery, marketing, e-commerce setup and payment gateway rent.

• YallaHub’s primary target market comprises countries in the GCC which include Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the UAE.

• Dovbenko elaborated on YallaHub’s strategy to harness the GCC market’s strong purchasing power, favorable economic climate, financial resilience, affordable labor and delivery expenses, urbanized populace and tech-inclined youth.

Dovbenko elaborated on YallaHub’s strategy to harness the GCC market’s strong purchasing power, favorable economic climate, financial resilience, affordable labor and delivery expenses, urbanized populace and tech-inclined youth. 

By the end of 2023, the startup aims to attract over 100 brands from all markets and reach $10 million in annual recurring revenue. 

“Since its launch in late 2022, YallaHub has introduced over 45 brands into the UAE market including cosmetics and perfumery, personal care, beauty goods and accessories, food and beverage, dietary supplements, home care, small electronic devices, pet products and others,” Dovbenko added. 

He also revealed that YallaHub’s grand plan includes expanding across the entire GCC region by 2025. The expansion for this year encompasses the UAE, Saudi Arabia and Qatar, while Oman, Kuwait and Bahrain are on the company’s radar for 2025. 

Dovbenko, a seasoned entrepreneur, had previously co-launched YallaMarket, an online grocery marketplace, prior to YallaHub. His earlier venture managed to attract $12 million in funding from regional investors. 

He shared that YallaHub intends to secure $5 million in a series A funding round this summer.


Saudi Ports Authority rises in global maritime index Q3 report

Saudi Ports Authority rises in global maritime index Q3 report
Updated 03 October 2023
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Saudi Ports Authority rises in global maritime index Q3 report

Saudi Ports Authority rises in global maritime index Q3 report

RIYADH: Confirming the progressive trajectory of Saudi Arabia’s maritime sector, the Saudi Ports Authority, commonly known as Mawani, has jumped in the global maritime index for the third quarter of 2023.  

As outlined in a recent report from the UN Conference on Trade and Development, the data highlights a leap from 76.16 points in the second quarter to 77.66 points in the third quarter of the year, the Saudi Press Agency reported.

The uptick reflects Mawani’s commitment to strengthening the competitive capabilities of Saudi ports on the global stage, bolstering the maritime transport sector, enhancing networks, and refining logistics services.

Commenting on the achievement, Saleh Al-Jasser, Saudi minister of transport and logistics services and chairman of Mawani, emphasized that the Kingdom’s advancement is in alignment with the objectives of the National Strategy for Transport and Logistics Services.  

He also pointed to Mawani’s success in improving maritime shipping, with the introduction of 24 new services in 2023 alone.  

This move fortifies trade and export activities and strengthens the Kingdom’s connection to global markets through enhanced operational capabilities, maritime communication routes development, and an uplifted competitive stature.

The maritime network connectivity index, which gauges the interconnection levels of global ports with shipping line networks quarterly, incorporates several sub-indicators, including the scheduled ship visits to the country per week and the number of regular service routes offered by vessel lines to and from the national ports.

Earlier this year, Saudi Arabia celebrated climbing 17 global ranks in the Logistics Performance Index issued by the World Bank.  

On a separate ranking, the Kingdom’s ports rose to the 16th position in the UN Conference on Trade and Development’s Liner Shipping Connectivity Index in June.  

Moreover, Saudi Arabia achieved significant progress in the World Bank’s Logistics Performance Index, jumping 17 places to reach the 38th position in 2023.  

This marks a notable improvement compared to its rankings of 55 in 2018 and 52 in 2016.  

The Kingdom currently has 97 shipping links that connect to 348 international ports.


UAE’s ADNOC obtains global certification to supply sustainable aviation fuel 

UAE’s ADNOC obtains global certification to supply sustainable aviation fuel 
Updated 03 October 2023
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UAE’s ADNOC obtains global certification to supply sustainable aviation fuel 

UAE’s ADNOC obtains global certification to supply sustainable aviation fuel 

RIYADH: The UAE is all set to lead the Middle East in producing sustainable aviation fuel, with Abu Dhabi National Oil Co.’s Ruwais refinery receiving the International Sustainability and Carbon Certification. 

According to the Emirates News Agency, or WAM, the certification makes ADNOC the first company in the Middle East to supply the aviation sector with SAF and reinforces its sustainability pledge. 

The SAF is produced using cooking oils as feedstock and is blended with jet fuel at the Ruwais refinery. 

“Developing sustainable aviation fuel is an essential part of the company’s strategy to provide low-emission fuel to its customers,” said Sultan Albigishi, the acting CEO of ADNOC Refining, in a statement. 

Based in Cologne, ISCC is a global system for certifying the sustainability of agricultural, industrial, and food products. ISCC covers a wide range of products across multiple markets. 

By obtaining the international certificate for SAF production through its existing refineries, ADNOC can supply biofuel to international airlines in Abu Dhabi.  

According to WAM, the company will release its first batch of SAF later this month, which will be enough to fuel a 787-10 Dreamliner flight from Abu Dhabi to Paris. 

“Obtaining the international certificate for sustainability and carbon represents an important progress in ADNOC’s journey to achieve sustainability,” said Ahmad bin Thalith, the acting CEO of ADNOC Global Trading, in the statement. 

ADNOC Global Trading is responsible for providing vital raw materials suitable for refining operations. Trading operations include biofuels and other sustainable fuel alternatives to its global and local customers. 

The group continues to implement a qualitative shift and take practical steps to make today’s energy cleaner while investing in future clean energies to enhance its position as a reliable global energy provider. 

As part of its ongoing efforts to support the UAE’s strategic initiative to achieve climate neutrality by 2050, ADNOC recently announced that it will bring the date of attaining its climate neutrality goal closer to 2045 instead of 2050. 


Closing bell — Saudi main index drops 54 points to close at 10,952

Closing bell — Saudi main index drops 54 points to close at 10,952
Updated 03 October 2023
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Closing bell — Saudi main index drops 54 points to close at 10,952

Closing bell — Saudi main index drops 54 points to close at 10,952

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the third consecutive day, as it shed 53.60 points or 0.49 percent to close at 10,952.34 on Tuesday.

The total trading turnover of the benchmark index was SR4.89 billion ($1.30 billion) as 74 stocks advanced, while 143 declined.

Saudi Arabia’s parallel market Nomu slipped on Tuesday, declining by 247.82 points to 22,544.21, while the MSCI Tadawul Index also fell by 0.44 percent to close at 1,407.13.

Alinma Tokio Marine Co. was the best-performing stock of the day on the main index. The company’s share price soared by 9.99 percent to SR15.20.

Other top firms include Middle East Healthcare Co. and Al Sagr Cooperative Insurance Co., whose share prices edged up by 4.92 percent and 3.69 percent, respectively.

Electrical Industries Co. was the poorest performer of the day, with its share price declining by 8.02 percent to SR1.95.

On the announcements front, Saudi Top for Trading Co., listed on the Kingdom’s parallel market, announced that it has signed a Shariah-compliant credit facility agreement with Riyad Bank worth SR30 million.

The newly-listed company said that SR20 million would be allocated to repay suppliers’ dues, while the remaining SR10 million will be used to issue letters of guarantee.

Meanwhile, Saudi multinational dairy firm Almarai said that its board has approved an investment plan of SR405 million to increase its fresh bakery capacity, expand its products, and enter the frozen bakery segment in the Kingdom.

According to a Tadawul statement, the new investment plan will be financed by Almarai’s internal cash flow, with an expected completion period of two years.


Bahrain’s economy grows 2% as non-oil sector expands

Bahrain’s economy grows 2% as non-oil sector expands
Updated 03 October 2023
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Bahrain’s economy grows 2% as non-oil sector expands

Bahrain’s economy grows 2% as non-oil sector expands

RIYADH: Bahrain recorded a 2 percent growth in real gross domestic product in the second quarter compared to the same period last year, according to its Ministry of Finance and National Economy. 

In its latest report, the department disclosed that the growth in real GDP was fuelled by a rise in the non-oil sector, also of 2 percent. 

The transportation and communication activities topped the rankings, reporting an annual growth of 13.3 percent in the second quarter, followed by hotels and restaurants, which grew by 9.6 percent. 

Real estate and business activities rose 4.9 percent, while financial corporations advanced by 4.7 percent annually over the second quarter of last year. 

The oil sector also reported an annual increase of 2.2 percent in business activity, spurred by a 2.9 percent rise in the combined production of Abu Sa’afa and the onshore Bahrain oil fields.   

Like many oil-dependent nations, Bahrain has recognized the need to diversify its economy.   

Various initiatives have been taken to support this, including in the financial services, tourism and hospitality, and real estate sectors.

The report further stated that the non-oil industry contributed 82.9 percent of Bahrain’s real GDP between April and June,

The financial sector made up the largest segment of the total, with its size reflecting the government’s focus on financial technology and digital banking.

The oil sector was the second-largest contributor to real GDP at 17.1 percent, while government services came in third, accounting for 14.1 percent.

The manufacturing sector dropped by 0.9 percent in the second quarter compared to last year’s corresponding period yet controlled 13.6 percent of the country’s real GDP. 

Bahrain has also been promoting the manufacturing and industrial sectors to reduce dependency on oil, including nurturing Aluminum Bahrain – one of the largest producers of the metal in the world – and growing the petrochemical industry. 

These diversification efforts align with Bahrain Economic Vision 2030, a comprehensive development plan to transform the country’s economy. 

The quarterly report further projects real GDP growth of 2.9 percent in 2023 and 3.2 percent in 2024, with the non-oil sector growing by 3.5 percent and 3.8 percent, respectively, during those years. 


PIF creates Al Balad Development Co. to boost historic Jeddah area

PIF creates Al Balad Development Co. to boost historic Jeddah area
Updated 03 October 2023
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PIF creates Al Balad Development Co. to boost historic Jeddah area

PIF creates Al Balad Development Co. to boost historic Jeddah area

RIYADH: The Public Investment Fund has established a new company to develop the historic Jeddah district of Al Balad into a global tourist destination.

Al Balad Development Co. will work to improve the infrastructure of the region, supervise the restoration of historical buildings in the area, and develop service facilities, according to a statement from PIF. 

It will also oversee the creation of 9,300 homes and 1,800 hotel units, across an area of 2.5 million sq. meters.

Developing the tourism sector is a crucial part of Saudi Arabia’s Vision 2030 – the Kingdom’s plan to diversify its economy away from oil.

Saudi Arabia aims to attract over 100 million visitors by 2030, along with increasing the tourism sector’s contribution to the Kingdom’s gross domestic product to more than 10 percent.

In its statement, PIF noted that the newly formed company is expected to offer attractive investment opportunities and quality commercial options for the people of Jeddah.

“The company will collaborate with the private sector and specialists to develop the area’s infrastructure according to the best standards of urban planning for historic areas, taking into account environmental sustainability and preserving the unique heritage of Historic Jeddah: a UNESCO World Heritage site,” added PIF. 

The development will also see the creation 1.3 million sq. meters of commercial and office space.

The launch of the new company comes alongside the “Revitalize Historic Jeddah” initiative launched by Crown Prince Mohammed bin Salman in 2021.

That in itself was part of the “Historic Jeddah Development Project” which aims to transform the ancient town into a hub for business, tourism, and cultural activities.

The first phase of this development entails carving out the waterfront that had previously been filled to accommodate Jeddah’s urban expansion, while the second part will concentrate on creating an infrastructure for a new area and waterfront.

The third phase of the project includes building a marina, open green spaces, pedestrian overpasses and public utilities.

Earlier this month, Al-Balad, popularly referred to as the heart and soul of Jeddah, was nominated in the “Most Desirable City — Rest of World” category for the Wanderlust Travel Award.

Al-Balad area is home to more than 600 heritage buildings, 36 historical mosques, five major historical markets, ancient corridors and squares, and a major route for pilgrims since the dawn of Islam.

PIF has been spearheading the Kingdom’s economic diversification efforts since the launch of Vision 2030. 

According to its latest annual report, the soverign wealth fund currently holds assets under management worth SR2.23 trillion ($595 billion). 

It has already established 70 companies, with 25 of them founded in 2022, including Saudi Coffee Co. and Halal Products Development Co. 

In 2022 alone, PIF-owned companies created over 181,000 jobs, the annual report added.