Floranow blossoms in the Saudi market with massive traction

Floranow blossoms in the Saudi market with massive traction
Since its inception in 2017, Floranow has processed more than 150,000 orders, with over 1,200 customers and 200 employees. (Supplied)
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Updated 10 June 2023
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Floranow blossoms in the Saudi market with massive traction

Floranow blossoms in the Saudi market with massive traction
  • Company’s mobile application generates over 80 percent of its online transactions: CEO

CAIRO: As Saudi Arabia increasingly draws the attention of regional entrepreneurs, Middle Eastern firms from a range of sectors are actively examining the burgeoning opportunities in the Kingdom. 

UAE-based online floral marketplace, Floranow, has left no stone unturned in its Saudi expansion, sealing its second acquisition in the market. 

On June 5, Floranow acquired one of the largest wholesale distributors of fresh-cut flowers in the Kingdom, Bloomax, one year after acquiring Saudi-based floral distribution company Astra Farms. 

In an interview with Arab News, Charif Mzayek, CEO and founder of Floranow, conveyed that the company’s emphasis on the Saudi market is fueled by remarkably high transaction rates. 

Mzayek mentioned that the company’s mobile application, exclusively available in the Saudi market, generates over 80 percent of its online transactions. 

“The acquisition of Bloomax follows our successful acquisition of Astra Farms’ floral distribution business early last year,” Mzayek told Arab News. 




Floranow offers seamless transactions between buyers and sellers. (Supplied)

“The Astra Farms deal has subsequently yielded strong organic growth and fully digitized revenue while giving Saudi retailers and wholesalers access to the largest and richest assortment of flowers and plants in one convenient marketplace,” he added. 

The founder further announced that, following a partnership with a select group of Kenyan growers, the Saudi market will soon have a range of exclusive products, including unique flower varieties. 

Mzayek asserted that Floranow holds the distinction of being the first and largest online floral marketplace and stands as the sole provider of business-to-business solutions in the Saudi market. 

He further indicated that the company’s presence in Saudi Arabia will expand from five cities to nine with the acquisition of Bloomax. 

“The acquisition of Bloomax will enable Floranow to become the market leader in Saudi Arabia and in the Gulf region in general,” Mzayek stated. 

By leveraging Bloomax’s existing customer base, Floranow plans to penetrate the Saudi market via “the leading wholesale flower supplier which currently controls over 30 percent of main cities like Riyadh and Dammam,” Mzayek said. 

“The acquisition of Bloomax will expand our existing operational footprint in the Kingdom, giving us a direct presence in nine cities across the market. It will further benefit our growth trajectory as it increases the number of companies in Saudi Arabia buying on Floranow’s platform to over 1,500. This will make us the largest importer and distributor of flowers in the country,” he added.

The company has also incorporated Bloomax’s chairman, Noushad Gafoor, into its executive team to boost Floranow’s operations in the Kingdom. 

The Astra Farms deal has subsequently yielded strong organic growth and fully digitized revenue while giving Saudi retailers and wholesalers access to the largest and richest assortment of flowers.

Charif Mzayek, CEO and founder of Floranow

“We are delighted to have Noushad joining Floranow’s executive team. We are grateful for Noushad’s insightful and unique knowledge of the market, making it an obvious choice to ensure he remains in charge of the Saudi operations,” Mzayek said. 

“Bloomax’s top management brings over 100 years of flower business experience that has enabled them to achieve success. The combination of Bloomax’s existing footprint with our transformative technologies is an exciting platform for growth and will greatly improve the importer and distributor process,” he added. 

Mzayek further expressed Floranow’s deep commitment to expanding its presence in the Kingdom through Saudi nationals, in particular women. 

The company’s strategy aligns with the digitalization goals of Vision 2030. As Mzayek explained, Floranow aims to digitalize the region’s traditionally inefficient floral market. 

“The size of the floral market is growing rapidly, which is one of the main drivers for our focus more broadly on the Saudi market,” Mzayek said. 

“We are seeing several programs and initiatives that have been launched under Vision 2030 to promote tourism, events, and festivals which will expand the flower business in Saudi Arabia,” he added. 

Floranow primarily targets sellers, including growers and flower exporters, and buyers, such as florists, hotels, supermarkets, and importers. 

“We have identified several challenges facing the industry today, including the lack of transparency, price volatility, and long and inefficient supply chains that add up costs and impact product quality, all of which heavily impact the results for buyers and growers,” he added. 

Connecting buyers and sellers, Floranow offers seamless transactions between both parties in addition to a logistics service that is twice as fast as traditional channels, Mzayek claimed. 

“We manage the supply chain from the farm to the florist, including all freight stages, customs, clearances, quality control and last-mile delivery, connecting growers to buyers in over 20 markets,” he added    

Mzayek further elucidated that Floranow operates under a commission-based structure on the various services provided. 

Since its inception in 2017, Floranow has processed more than 150,000 orders, with over 1,200 customers and 200 employees. 

“The Middle East, North Africa and Turkey market is currently worth $1.15 billion — 40 percent of which are markets we operate in, which are Saudi Arabia, UAE, and Kuwait. We are excited to continue our growth journey as we focus on consolidating our presence in our current markets,” Mzayek said. 

In terms of financing, Floranow has secured $8 million in equity rounds since its launch with investors such as Jabbar Internet Group, Dash Ventures, Wamda Capital, Global Ventures, Sirocco Holdings, Adamtech Ventures, Zuaiter Holding Capital, and HB Investments.


Saudi Arabia’s real estate supply reservations more than double

Saudi Arabia’s real estate supply reservations more than double
Updated 18 sec ago
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Saudi Arabia’s real estate supply reservations more than double

Saudi Arabia’s real estate supply reservations more than double

RIYADH: Citizens in Saudi Arabia are gaining greater access to residential units as the real estate supply reservations surged 110 percent year on year in November to reach 12,503, according to new figures.    
The Kingdom’s National Housing Co. announced that residential units were sold at competitive prices starting from SR250,000 ($66,649) compared to the previous year’s rates, in which the lowest contract amounted to SR321,000 per residential unit, the Saudi Press Agency reported.
This falls in line with the Gulf country’s plans and strategies to launch several extensive residential projects in order to achieve a balance between population growth and rapid urban expansion.   
This also comes as the rise in population density has led to increased demand for housing, meaning the Kingdom is working to boost the real estate supply to meet this need, aligning with a sustainable urban approach.
This rapid increase in reservations is mainly attributed to the launch of a number of residential projects in various regions, the most prominent of which is the inauguration of the Al-Fursan Suburb in Riyadh which aims to provide the largest real estate supply with a high level of quality and luxury. Other projects include the Sadayem Suburb which was launched in Jeddah along with many housing schemes in distinctive locations within the main cities.
In fact, the number of residential projects reached 46 during 2023, thereby cementing Saudi Arabia’s innovative model for real estate development.
National Housing Co. is the leader and enabler of the real estate development sector and the largest major developer of suburbs and residential communities in the Kingdom characterized by quality of life.  The company pumps more than 300,000 housing units into eight suburbs and six residential communities on an area of more than 120 million sq. meters, accommodating more than 1 million citizens.
It seeks to find solutions to secure supply chains with high quality and more sustainable construction materials, as part of the company’s keenness to increase the real estate supply with residential options according to international standards.
All the firm’s efforts are directed to achieving the goals of the housing program by raising the percentage of residential ownership for Saudi families to 70 percent by 2030.


Council of Ministers to approve Saudi general budget on Wednesday

Council of Ministers to approve Saudi general budget on Wednesday
Updated 05 December 2023
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Council of Ministers to approve Saudi general budget on Wednesday

Council of Ministers to approve Saudi general budget on Wednesday

RIYADH: Saudi Arabia’s Council of Ministers will hold a session on Wednesday to approve the Kingdom’s general budget for the new fiscal year, Saudi Press Agency reported on Tuesday.

A preliminary budget statement issued in October showed predictions of real gross domestic product growing by 0.03 percent this year compared with a previous forecast for growth of 3.1 percent.

The document also projected the government would post a budget deficit of 1.9 percent of the gross domestic project in 2024, 1.6 percent of GDP in 2025, and 2.3 percent of GDP in 2026.

The statement said “limited budget deficits” would continue in the medium term.

Meanwhile, total expenditure was seen as rising to SR1.262 billion in 2023, from an earlier estimate of SR1.114 billion, before slowing down marginally to SR1.251 billion in 2024.

A government press conference will be held on Wednesday, with the participation of Minister of Finance Mohammed Al-Jadaan, during which he will address the state’s general budget for the next fiscal year, and the numbers and indicators of the contents of the budget will be announced.
The finance minister will also answer questions during the conference, which will be broadcast live on Saudi channels.


Saudi Arabia offers tax incentives for companies moving regional HQs to Riyadh

Saudi Arabia offers tax incentives for companies moving regional HQs to Riyadh
Updated 05 December 2023
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Saudi Arabia offers tax incentives for companies moving regional HQs to Riyadh

Saudi Arabia offers tax incentives for companies moving regional HQs to Riyadh

RIYADH: Saudi Arabia said on Tuesday it will offer tax incentives for foreign companies that locate their regional headquarters in the Kingdom, including a 30-year exemption for corporate income tax.

The tax incentives include zero income tax for foreign entities that move their regional headquarters in the Kingdom, and these benefits can be availed from the date of the regional headquarters issuance license, according to Saudi Arabia’s Ministry of Investment. 

Saudi Arabia’s program to attract foreign companies to open their regional headquarters in the Kingdom is a joint initiative between the Ministry of Investment and the Royal Commission for Riyadh City. 

The regional headquarters program aims to encourage international companies to open their regional headquarters in the Middle East and North Africa region in Saudi Arabia, and to materialize that the Kingdom is offering a wide range of benefits and incentives. 

Saudi Arabia’s Minister of Investment Khalid Al Falih said that Saudi Arabia is offering more incentives to foreign companies which open their regional headquarters in the Kingdom which includes special benefits for firms complying with Saudization requirements. 

He added that the friendly business environment in Saudi Arabia has made over 200 companies relocate their headquarters to the Kingdom. 

Saudi Finance Minister Mohammed Al-Jadaan said: “The new tax exemptions, granted on the activities of regional headquarters of international companies in the Kingdom will give these firms more clarity of vision and stability, which will enhance their capabilities for future planning and expanding their business in the region, starting from the Kingdom,” Al-Ekhbariya reported. 

Earlier in November, Al-Falih said that Saudi Arabia has already surpassed the targets of the regional headquarters program which aimed to attract 160 international firms by the end of this year. 

In an interview with Bloomberg, Al-Falih noted that the regional headquarters program is a long journey and added that the Kingdom is working with international entities to create the right ecosystem to open their offices in Saudi Arabia. 

Some of the noted companies that opened their regional headquarters in Saudi Arabia in recent months are PwC Middle East and GE Healthcare. 

He also added that Saudi Arabia is a stable destination for international investors, at a time of geopolitical tensions and economic headwinds. 


Riyadh, Doha sign multiple deals across various sectors

Riyadh, Doha sign multiple deals across various sectors
Updated 05 December 2023
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Riyadh, Doha sign multiple deals across various sectors

Riyadh, Doha sign multiple deals across various sectors

RIYADH: Saudi Arabia and Qatar have signed multiple agreements and memorandums of understanding as both nations continue to strengthen their relationship. 

These deals, which are expected to enhance trade and economic relationships between Saudi Arabia and Qatar, were signed during the 44th Gulf Cooperation Council Summit in Doha on Tuesday. 

Saudi Arabia’s sovereign wealth fund and the Qatar Investment Authority signed an MoU to accelerate investments in the energy and infrastructure sector, according to a report by the Qatar News Agency.

Another MoU was signed between Saudi Arabia’s Digital Government Authority and Qatar’s Ministry of Communications and Information Technology to promote cooperation between the two nations in the field of digital governance. 

Saudi Arabia’s Prince Saud Al-Faisal Institute for Diplomatic Studies signed an additional MoU with Qatar’s Diplomatic Institute of the Ministry of Foreign Affairs to cooperate in the field of diplomatic training. 

The Saudi Central Bank, also known as SAMA, signed an MoU with its counterpart in Qatar for cooperation between financial institutions. 

Another agreement was signed between the Saudi Authority for Intellectual Property and Qatar’s Ministry of Commerce and Industry to further collaborate in the field of intellectual property. 

An additional cooperation agreement was signed between the Saudi Broadcasting Authority and Qatar Media Corporation to develop relations in the radio and television industries. 

The two countries also signed a memorandum of understanding for cooperation in the fields of sports. 

On Dec.4, foreign ministers of Qatar and Saudi Arabia held a meeting in Doha to develop bilateral relations. 

“Today we held the first meeting of the executive committee of the Qatari-Saudi Coordination Council in Doha, where we discussed ways to develop bilateral relations within the framework of the executive committee,” said Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani, who is also the country’s prime minister. 

During the meeting, Saudi Foreign Minister Prince Faisal bin Farhan and Al-Thani discussed ways to deepen cooperation in areas of mutual interest. 


COP28 president hails global leaders’ practical initiatives at final dialogue

COP28 president hails global leaders’ practical initiatives at final dialogue
Updated 05 December 2023
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COP28 president hails global leaders’ practical initiatives at final dialogue

COP28 president hails global leaders’ practical initiatives at final dialogue

RIYADH: COP28 President Sultan Al-Jaber has applauded world leaders for their practical initiatives during the final dialogue, expressing optimism for the continued “open mindset” throughout the remainder of COP.  

This comes as high-level dialogues between the COP28 Presidency and the International Energy Agency received a strong endorsement of practical actions. 

The conclusion of the dialogues, co-chaired by Al-Jaber and the executive director of the IEA, Fatih Birol, marked a significant achievement, bringing together over 40 high-level leaders, including four heads of state and 18 heads of delegation and ministers from diverse regions.  

Al-Jaber said: “I am encouraged by the practical actions brought forward by world leaders today at the final dialogue, and I hope that you take this open mindset and optimism throughout this COP.” 

Addressing the significance of the dialogues, Al-Jaber emphasized the need for collaboration, stating: “This series of dialogues has allowed us to converge on the critical elements of the just energy transition. The transition will not be straightforward, but it will be harder if we cannot agree on its central components.”  

Birol echoed this sentiment, expressing satisfaction at the alignment and support for the IEA’s five goals for COP28.  

These goals include tripling renewable capacity and doubling energy efficiency by 2030, a structured decline in fossil fuel use, commitment from the oil and gas industry to align with 1.5 degrees, and financing mechanisms for clean energy in developing countries. 

The leaders showed strong support for the COP28 presidency’s Global Renewables and Energy Efficiency Pledge, with over 110 countries signing up to the initiative.   

Urgency on the coal front emerged as a key consensus, with a focus not only on preventing new unabated coal plants but also on accelerating the retirement of existing facilities. 

As the final dialogue unfolded during the World Climate Action Summit as part of COP28 in Dubai, heads of state, government leaders, and international organizations convened to solidify their commitment to an orderly energy transition.  

Al-Jaber urged participants to carry the open mind and optimism demonstrated during the final dialogue throughout COP28, reinforcing the importance of collective action in addressing the pressing challenges of our time.  

This positive momentum sets the stage for further deliberations and collaborative efforts at COP28 UAE, hosted at Expo City Dubai till Dec. 12.