Saudi Arabia, GCC economies ‘world leading’ in green transition, says City of London’s lord mayor

Short Url
Updated 26 September 2023
Follow

Saudi Arabia, GCC economies ‘world leading’ in green transition, says City of London’s lord mayor

Saudi Arabia, GCC economies ‘world leading’ in green transition, says City of London’s lord mayor
  • Nicholas Lyons said: ‘I take my hat off … particularly those hydrocarbon nations who have really grasped the scale of the challenge and are really driving forward now with solutions’
  • ‘As far as the City of London is concerned, we are absolutely committed to helping do everything that we can to fund that journey to net zero as efficiently as possible,’ he added

LONDON: The efforts Saudi Arabia and other Gulf countries are making to transition toward cleaner, greener economies are “world leading,” the lord mayor of the City of London said on Monday.

Nicholas Lyons, who visited the Kingdom and the UAE this year and is set to visit Qatar and Bahrain next week, also said there is “fantastic energy” in the Saudi Vision 2030 agenda for reforms and diversification of the nation’s economy.

“The scale of the transition is very substantial, of course, and the hydrocarbon economies have to manage very deftly this transition away from what has been a source of huge wealth,” he told Arab News.

“But they really are, genuinely, world-leading in the moves that they’re making into renewable technologies and clean energy, and they’re investing huge amounts of money in that.”

The levels of investment being made in this regard by Gulf Cooperation Council countries not only offer the prospect of significant financial returns, Lyons said, but will be critical in driving the growth of renewable technology companies and accelerating solutions to the climate crisis.

“I take my hat off to those nations, particularly those hydrocarbon nations who have really grasped the scale of the challenge and are really driving forward now with solutions,” he said.

With the UN Climate Change Conference, COP28, set to return to the Gulf in November this year, when Dubai will host, Lyons said he was positive about the role the City of London can play in assisting countries achieve sustainable development.

“As far as the City of London is concerned, we are absolutely committed to helping do everything that we can to fund that journey to net zero as efficiently as possible,” he said.

“That’s not just a comment about how we can help in the UK but how London, as a global financial center, plays its part as a leading underwriter of green bonds and green loans, and with its expertise in insurance, risk and project management, working with countries around the world on sustainable infrastructure programs.”

Lyons, who has been lord mayor since November 2022, a role he called a “privilege” and “a dream come true,” said discussions in some countries surrounding the revision of net-zero and carbon-neutrality targets was more a case of realistic thinking rather than defeatism.

“I think it’s certainly possible to interpret some of the things that we’re hearing now as slightly backward steps,” he said. “I’d like to think rather than it being a backward step in terms of commitment, it’s just more realism in terms of the ability to deliver.

“That, I think, is particularly true where countries, in wanting to be bold and make clear statements of their intent, have set unrealistic targets in terms of timing.

“Maybe I’m being optimistic but I choose to interpret most of the comments that we’ve heard as being in that category, rather than people scaling back.”

Lyons said that much like his discussions with GCC officials in February, talks during his upcoming trip to the region will highlight both the dynamic inward investment opportunities the UK can offer and the ways in which the City of London can offer expertise to countries in the Gulf and the British firms looking to operate in the region.

“There are two big areas that tend to dominate the conversation,” he said. “One is inward investment into the UK. We have a multi-year campaign to get overseas asset owners investing more money through the UK — not necessarily in the UK, but through the UK asset-management structure. There have been very significant investments in the UK by GCC countries, which is terrific, but that’s one of the areas that we’ll talk about.

“The other is around green and sustainable finance. The two come together when it comes to investment in sort of green tech-type companies and fintech (financial technology).

“The conversation is often about how London can help that process and talking about the different strengths of London and what we could do, particularly, I think, in Gulf areas, (where) the insurance market is relatively underdeveloped and also the long-term savings market is also quite small and needs to be built up. And so there are conversations about whether or not we can encourage British firms to set up in the Gulf countries.”

The City of London published its “Vision for Economic Growth — A Roadmap to Prosperity” report this month, the preparation of which involved collaboration with more than 300 stakeholders across the financial and professional services industries over a half-year period.

The report identified the challenges and shifts facing the financial sector, from the application of artificial intelligence to cryptocurrencies, big data, and ways in which they can be addressed, Lyons said.

“With all of the strengths that London has as a global financial center, there are nevertheless seismic challenges and changes taking place in the world of finance,” he added.

“You can’t hide under a duvet and pretend they’re not coming; they may be complicated issues but you have to have a strategy around them. You have to have your regulators start to develop a regime that can manage them.”

Lyons said he also hopes a future growth fund can tap into the “huge expertise” in the UK in sectors such as fintech, green tech and biotech, and offer additional home-grown funding to what is already available from North America and the Gulf.

“These companies, at the moment, are very heavily reliant on international money, particularly North American money (and) we love the fact that we have great investment from the Gulf in these industries,” he said.

“But if we can also provide lots of UK money to sit alongside all of this foreign direct investment, those companies don’t need ultimately to go and list in the United States, where we lose the intellectual property, we lose the people and we lose the value and all of the tax revenue that comes from it.”


Qatar Airways launches NEOM Bay flight

Qatar Airways launches NEOM Bay flight
Updated 09 December 2023
Follow

Qatar Airways launches NEOM Bay flight

Qatar Airways launches NEOM Bay flight
  • The NEOM Bay flight will be the 10th route by the airline to the Kingdom

Riyadh: Qatar Airways expanded services to Saudi Arabia with the launch of the Doha-NEOM Bay flight on Saturday.

The NEOM Bay flight will be the 10th route by the airline to the Kingdom.

Qatar Airways announced two weekly flights with Airbus A320 aircraft starting Dec. 9 from Hamad International Airport in Doha.

Saudi Arabia was ranked second globally in tourist arrivals during the first seven months of 2023, the Saudi Press Agency reported last month.

The Kingdom saw 58 percent growth in tourist numbers up to the end of July compared to the same period in 2019, according to the Ministry of Tourism.

The data was sourced last month from the UN World Tourism Organization and came from the UNWTO World Tourism Barometer.


Startup Wrap – Saudi Arabia leads November’s funding spree with $338m

Startup Wrap – Saudi Arabia leads November’s funding spree with $338m
Updated 09 December 2023
Follow

Startup Wrap – Saudi Arabia leads November’s funding spree with $338m

Startup Wrap – Saudi Arabia leads November’s funding spree with $338m

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.

 


Pakistan’s central bank releases ‘regulatory sandbox’ guidelines, seeks input for FinTech growth

Pakistan’s central bank releases ‘regulatory sandbox’ guidelines, seeks input for FinTech growth
Updated 08 December 2023
Follow

Pakistan’s central bank releases ‘regulatory sandbox’ guidelines, seeks input for FinTech growth

Pakistan’s central bank releases ‘regulatory sandbox’ guidelines, seeks input for FinTech growth
  • The emergence of high-tech companies for efficient service delivery has posed regulatory challenges for Pakistan
  • The regulatory sandbox approach has also been adopted by other countries to develop final set of rules for startups

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.


Pakistan stock market crosses another historic milestone by surging past 66,000 points

Pakistan stock market crosses another historic milestone by surging past 66,000 points
Updated 08 December 2023
Follow

Pakistan stock market crosses another historic milestone by surging past 66,000 points

Pakistan stock market crosses another historic milestone by surging past 66,000 points
  • Analysts say the current bull run at the stock market is fueled by IMF program and policy measures for economic improvement
  • An economic expert asks the government to comply with the IMF standby arrangement to ensure macroeconomic stability

KARACHI: Pakistan equities on Friday hit yet another record high by breaching the 66,000-mark amid bullish sentiments built on the International Monetary Fund (IMF) program and completion of its first review, rupee stability, and the government’s plan to raise Rs90 billion through Islamic bonds, equity analysts said.
The key stock index, KSE100, closed the weekend trading session at a historic high level of 66,223 after gaining 1,505 points, or rising 2.33 percent. During the trading week, the index collectively gained 3,730 points. The recent rally has increased the market capitalization from $31.3 billion to $32.8 billion in a week.
“The stocks closed at a new record surge and new all-time high amid rupee stability and the government’s plan to launch Rs90 billion worth of Ijarah Sukuks for retail investors to diversify funding sources,” Ahsan Mehanti, CEO of Arif Habib Corporation, told Arab News.
He attributed the bull run to falling external debt, the positive outcome of the Special Investment Facilitation Council (SIFC), a civil-military hybrid forum established to fast-track decision-making and promote investment from foreign nations, and expectations for a current account surplus in November 2023.
In a landmark development for the country’s financial markets, the federal government launched one-year Ijarah Sukuk earlier in the day from the platform of Pakistan Stock Exchange (PSX) in the first phase.
In total, the government plans to raise Rs90 billion through three auctions of the bond.
Speaking at the gong ceremony, Prime Minister Anwaar-ul-Haq Kakar said Pakistan’s economy faced multiple challenges at the start of the financial year 2023-2024, but the government had tried to solve the structural and macroeconomic issues which helped improve the situation.
“I would like to thank the effort of all stakeholders to bring our economy back on track by lowering the exchange rate of dollar from all-time high of approximately 307 on September 5, 2023, in the interbank market to around 284 today,” he said.
Kakar maintained the capital market served as a catalyst for innovation, entrepreneurship and growth in the realm of finance.
“It provides fuel to business to expend, create jobs and contribute to overall development of society. As a part of federal government, we are committed to fostering an environment that nurtures and sustains this growth,” he added.
The prime minister said the capital market acted as a stabilizing force, absorbing shocks and steering the economy toward stability.
Economists say the current bull run is fueled by the successful completion of $3 billion IMF bailout program review, strong earnings growth and the steps taken by the government to discourage smuggling of various commodities and foreign currencies.
Pakistan expects another tranche of $700 million from IMF after the global lender’s board meeting on January 11, 2024.
“Pakistan stock exchange has tailwind of the IMF program, the completion of the first review, the enforcement measures by the establishment including curbing smuggling, de-dollarization and some improvements in the Afghan transit trade,” Dr. Khaqan Najeeb, former advisor to the finance ministry, told Arab News.
Going forward, he said the country would have to comply with the IMF standby arrangement to design another program for long term macroeconomic stability.
He noted this required more structural reforms in the economy after the new government takes over in the wake of the next general elections.


COP28: US-UAE climate-friendly farming effort grows to $17bn

COP28: US-UAE climate-friendly farming effort grows to $17bn
Updated 08 December 2023
Follow

COP28: US-UAE climate-friendly farming effort grows to $17bn

COP28: US-UAE climate-friendly farming effort grows to $17bn

DUBAI: Funding for a joint effort by the US and the UAE to advance climate-friendly farming around the world has grown to more than $17 billion, the countries announced on Friday at the COP28 climate summit in Dubai, according to Reuters.

The Agriculture Innovation Mission for Climate was launched in 2021 at COP26 in Glasgow and its funding comes from governments, companies, and non-governmental organizations.

Globally, food and farming contribute about a third of anthropogenic greenhouse gas emissions, according to the UN’s Food and Agriculture Organization.

Nearly 80 projects have been announced under the AIM for Climate initiative since 2021, with goals to expand agricultural research, implement sustainable farming practices, and reduce methane emissions.

“I think it’s made people think about food and agriculture in a much different way,” Agriculture Secretary Tom Vilsack told Reuters on the sidelines of the conference, adding: “And I think it’s reflected, frankly, in the fact that this COP ... has actually elevated food (and) agriculture to the point where it’s an integral part of COP meetings. That has not been the case for the previous 27.”

Funding for the effort has grown from $13 billion in May, when the US and the UAE co-hosted an AIM for Climate summit in Washington, and from $8 billion at COP27.

The new total includes $12 billion from governments and $5 billion from non-government parties such as companies and humanitarian organizations, said an AIM for Climate spokesperson.

The 27 new projects announced at COP28 range in size from $500 million to $150,000.

In one of the largest projects, companies including Bunge and Alphabet’s Google are working with the Nature Conservancy and the Brazilian state of Para to expand regenerative agriculture, which generally refers to practices like reduced tillage of cropland and lower pesticide use.

For the first time, agriculture is a major focus at this year’s climate summit, with a full day on Dec. 10 dedicated to food and farming topics.

“We understand that we need to speed up innovations ... to be able to transform agriculture food systems to more sustainable systems,” the UAE’s Minister for Climate and the Environment Mariam Almheiri told Reuters.

Advocacy groups want the nations and companies in attendance to pledge to tackle agricultural methane emissions in particular, most of which is from livestock production.