Day 2 of LEAP24 sees $848m investments across 7 new funds 

Day 2 of LEAP24 sees $848m investments across 7 new funds 
LEAP is in its third edition.
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Updated 05 March 2024

Day 2 of LEAP24 sees $848m investments across 7 new funds 

Day 2 of LEAP24 sees $848m investments across 7 new funds 

RIYADH: Saudi Arabia’s international technology conference, LEAP, sets the stage for a thriving startup and venture capital ecosystem in the region, announcing seven new funds worth $848 million.

Following in the footsteps of its previous years, the third edition of the event continues to witness several significant announcements that seek to transform the technology sector locally and globally.

Kicking off the day, InvestCorp announced the establishment of a $500 million fund in Saudi Arabia, which includes a $35 million investment from Saudi Venture Capital Co. The fund will focus on investing in Saudi companies in their growth stages.

In another boost to emerging companies, Saudi Arabia’s Takamol Holding announced its $53 million venture capital arm, Takamol Ventures.

The VC is established to support early-stage technology companies in the Middle East and African markets.

Similarly, Oasis Capital unveiled their “Oasis Fund II,” a $100 million venture dedicated to empowering international tech founders in their early stages.

Plug and Play, a major startup accelerator, announced a $50 million fund, making it its first in the region.

P&P intends to invest in Saudi, Middle Eastern, and North African startups with a focus on software and technology development.

X by Unifonic, a startup itself, also unveiled its new seed fund worth $15 million investment, focusing on software as a service and business-to-business ventures in the MENA region, Pakistan, and Turkiye.

During the forum, the National Development Fund, Social Development Bank, Ignite, and the Saudi E-Sports Federation partnered to announce an $80 million accelerator VC fund managed by Merck Capital and a $40 million VC investment fund managed by Impact46.

The funds will focus on accelerating the growth of the local gaming industry and attracting VC investment in the sector.

Taking to the main stage in Riyadh, the CEO of Saudi Arabia’s National Technology Development Program, Ibrahim Neyaz, announced the launch of five new products, marking another boost to the Kingdom’s technology, VC, and startup divisions.

Equipped with a $266 million budget, the entity’s first initiative, “Fuel,” seeks to support VC funds investing in deep tech and emerging tech from pre-seed to pre-initial public offering stages.

Its targeted technologies include generative AI, space tech, quantum computing, smart cities, and biotech.

Also, with a $266 million budget, NTDP’s second unveiled venture, “Artificial Intelligence Mission,” is a platform that provides access to research and development infrastructure, talent development, data, and venture building.

The CEO highlighted that the program’s intended outcomes over the next five years include 800 to 1,000 individuals trained in AI and machine learning, as well as 70-100 new AI-native ventures.

Neyaz outlined NTDP’s third announcement, Source Tech, a grant-based product designed to incentivize IT and outsourcing firms to establish and expand their services in the Kingdom. It will be equipped with a $15 million budget.

The initiative seeks to boost women’s participation in the information and communication technology sector, create upwards of 2,000 jobs, and provide grants up to SR5 million ($1.33 million) per company.

The body also announced another grant-based product, “Transform+,” which is designed to bridge the technology gap for startups and accelerate cloud adoption. It holds a $33 million budget.

Transform+ will mainly target startups as well as small and medium enterprises, with a grant possibility of up to SR 1 million per company and a target of over 1,000 tech companies adopting state-of-the-art cloud technology.

Marking its final announcement, the CEO unveiled a $26 million investment in “Fund Swift,” which aims to provide bridge financing for startups that close early-stage investments to be repaid after VC capital deployment.

The fund’s target beneficiaries are early-stage startups, which will be able to acquire financing amounting to 50 percent of VC’s commitment, up to SR5 million per startup.

Continuing the ongoing bid to “digitize” the Kingdom, Minister of Transport and Logistics Saleh Al-Jasser utilized the LEAP platform to announce two new initiatives to bring future technologies to the sector.

On the sidelines of the forum, the minister launched the new “Logistic 2” platform, which will replace multiple platforms with a unified window that includes more than 140 logistical services.

The initiative aims to unify the beneficiary experience, provide all logistical services through a smooth journey for beneficiaries, increase the quality and efficiency of logistical services, and improve operations.

This comes as part of the efforts to consolidate the Kingdom’s position as a global logistics center and enhance Saudi Arabia’s position in the Logistics Performance Index issued by the World Bank.

The minister also unveiled the new version of the Mawani community platform, which will automate all operational processes in the ports sector and connect all stakeholders from the government and private sectors on a unified platform, aiming to raise the ports’ competitiveness.

Mawani’s new framework seeks to facilitate the exchange of data between the government and private sectors via a secure interface, reduce the time spent on procedures by 50 percent, contribute to a 30 percent increase in port sector productivity, and lead to annual financial savings of SR10 million.

Continuing LEAP’s streak of significant investments in Saudi Arabia’s tech sector, global giant and leading provider of global hybrid cloud, AI, and consulting expertise, IBM, announced its plans to invest over $200 million in talent and infrastructure in a new IBM Software Lab in the Kingdom’s capital, Riyadh.

The lab will focus on accelerating digital innovation and product development, management, and design.

The IBM Software Lab’s goal will be to accelerate skills building and help create high-quality jobs for skilled young IT professionals in Saudi Arabia’s technology ecosystem, co-creating solutions to export globally.

Saudis spent more money on electronic devices during the 4th week of May: SAMA data

Saudis spent more money on electronic devices during the 4th week of May: SAMA data
Updated 11 sec ago

Saudis spent more money on electronic devices during the 4th week of May: SAMA data

Saudis spent more money on electronic devices during the 4th week of May: SAMA data

RIYADH: Saudi Arabia’s point-of-sale spending reached SR11.2 billion ($2.98 billion) in the fourth week of May, official figures showed.

The latest data from the Saudi Central Bank, also known as SAMA, revealed that spending on electronic and electric devices surged by 9.5 percent to reach SR240.4 million.

Beverages and food, which accounts for the largest share at 14.9 percent, saw a 5.9 percent decline, reaching SR1.66 billion, during the week from May 19 to 25.

Meanwhile, transactions at restaurants and cafes, holding a 14.6 percent share, recorded a slower decline of 4.8 percent, amounting to SR1.64 billion. 

Saudi spending on miscellaneous goods and services, including personal care items, supplies, maintenance, and cleaning, constituted the third-highest share and witnessed a 5.1 percent decline that week, reaching SR1.36 billion. 

Despite composing only 1 percent of the week’s overall POS value, spending on education recorded a minimal increase of 0.1 percent to SR152.48 million.

In the past few years, this sector has been allocated the largest share of government expenditure in comparison to other divisions of the economy. 

Efforts are underway to revamp the education system, aiming to equip the national workforce with the necessary skills to thrive in a technological and information-centric global economy.

The hotel sector experienced the largest decline in POS transaction value, dropping 10.9 percent to SR227.13 million.

According to data from SAMA, 35.44 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR3.97 billion. However, this represents a 1.6 percent decrease from the previous week.  

Riyadh has undergone considerable expansion, evolving into a pivotal center for growth and progress. The city is witnessing a surge in new businesses setting up operations, drawn by its vibrant economic landscape and strategic prospects for investment and innovation.

Spending in Jeddah followed closely, accounting for 14.3 percent of the total and reaching SR1.60 billion; however, it marked a 3.1 percent weekly drop. 

The two cities that registered the highest declines in POS spending were Makkah and Madinah, with decreases of 11 percent and 6.8 percent, respectively. The value of transactions in Makkah reached SR380.98 million, while in Madinah, it was SR393.26 million.

Saudi healthcare to advance with major digital tech partnership

Saudi healthcare to advance with major digital tech partnership
Updated 28 May 2024

Saudi healthcare to advance with major digital tech partnership

Saudi healthcare to advance with major digital tech partnership

RIYADH: The Saudi healthcare system is set to advance as two of the country’s major companies partner to leverage digital technologies to enhance the Kingdom’s capabilities.

SAMI Advanced Electronics Co., a wholly owned subsidiary of SAMI, the nation’s defense and digital solutions provider, has signed a cooperation agreement with the National Unified Procurement Co., a Public Investment Fund company.

The agreement, signed on May 27, will provide solutions for medication tracking and IT infrastructure and increase local content through medical devices manufacturing and maintenance.

This partnership demonstrates SAMI-AEC’s unremitting efforts to build a harmonious and applicable healthcare system in Saudi Arabia based on digital technologies.

Ziad Al-Musallam, CEO of SAMI-AEC, commented on the agreement, saying that they are honored to collaborate with NUPCO, as this deal underscores the unwavering commitment of both entities to bolstering efforts aimed at enhancing the healthcare ecosystem in Saudi Arabia.

“At SAMI-AEC, we firmly believe in the significance of augmenting public health services through digital solutions and delivering e-health services. This involves integrating effective, fast technologies to empower the healthcare sector, aligning with the objectives of Saudi Vision 2030,” he said.

Fahad Al-Shebel, CEO of NUPCO, highlighted the agreement’s importance and its role in fortifying the healthcare infrastructure and facilitating access to the integrated technology offered by SAMI-Advanced Electronics Co.

Aiming to upgrade the healthcare sector by improving its facilities in all public hospitals and medical centers in the Kingdom, NUPCO is the country’s largest central company providing medical purchasing, storage, and distribution services for medicines, devices, and supplies.

With a workforce of over 3,320 individuals, 85 percent of whom are Saudi nationals, SAMI-AEC has positioned itself as a leader in electronics, technology, engineering, and manufacturing. Its services span sectors such as defense and aerospace, digital, energy, and security.

Over 800 of the company’s employees are engineers and certified experts, reaffirming the dedication of SAMI-AEC, which was established in 1988, to excellence and innovation.

On the other hand, NUPCO was established in 2009 with SR1.5 billion in capital. It is the leading company in Saudi Arabia in procurement, logistics, and supply chain management for pharmaceuticals, medical devices, and supplies for governmental hospitals.

Closing Bell: Saudi main index continues downward trend to close at 11,660

Closing Bell: Saudi main index continues downward trend to close at 11,660
Updated 28 May 2024

Closing Bell: Saudi main index continues downward trend to close at 11,660

Closing Bell: Saudi main index continues downward trend to close at 11,660

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward movement for the third consecutive session this week, as it shed 171.28 points to close at 11,659.94 on Tuesday. 

The total trading turnover of the benchmark index was SR5.34 billion ($1.42 billion), with 23 stocks advancing and 202 declining. 

The Kingdom’s parallel market, Nomu, also slipped by 0.81 percent to 26,234.79, while the MSCI Tadawul Index shed 20.97 points to close at 1,449.44.

The best-performing stock on the main index was Sustained Infrastructure Holding Co. The firm’s share price soared by 6.2 percent to SR34.25.

Other top performers were the Mediterranean and Gulf Insurance and Reinsurance Co. and AYYAN Investment Co., whose share prices edged up by 3.98 percent and 3.63 percent respectively. 

The worst-performing stock on the benchmark index was Saudi utility giant ACWA Power, as its share price slid by 4.68 percent to SR456.60. 

On the announcements front, Etihad Atheeb Telecommunication Co. said that it was awarded two projects worth SR45.51 million by Technical and Vocational Training Corp. to provide dedicated Internet services in 77 locations. 

In a Tadawul statement, the telecommunication provider said that the first project has a value of SR23.64 million, while the second one amounts to SR21.87 million. 

Meanwhile, Mouwasat Medical Services Co. announced that its shareholders have approved the board’s recommendation to distribute a 17.5 percent cash dividend, or SR 1.75 per share for 2023. 

In March, Mouwasat Medical Services Co. had revealed that its net profit witnessed a growth of 10 percent in 2023 to SR657.7 million, compared to the previous year. 

Al Moammar Information Systems Co., on Tuesday, revealed that it received new orders to increase the capacity of data centers at a total value of SR 75.2 million. 

In a statement to Tadawul, the company added that further developments of the order will be unveiled in due course. 

PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm

PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm
Updated 28 May 2024

PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm

PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm

RIYADH: In a bid to localize the Kingdom’s cosmetics and personal care industry, the Halal Products Development Co. announced an investment in a Singapore-based fast-moving consumer goods conglomerate.

The Public Investment Fund-owned company signed a binding agreement with Believe — a company specializing in the halal cosmetics and personal care field.

As per the agreement, the company will relocate its headquarters from Singapore to Saudi Arabia and establish a factory to manufacture its products, the Saudi Press Agency reported.

The new headquarters will also serve as a major center for exporting the company’s products to various countries of the world.

This move is in line with the PIF-owned firm’s goal to strengthen the halal industries in Saudi Arabia and provide high-quality products compatible with Islamic standards.

Halal Products Development Co. CEO Fahad Al-Nuhait said that investing in this sector is a very important first step that serves as a major catalyst for developing and localizing the manufacturing of halal cosmetics and personal care.

In return, this is expected to raise the efficiency of the sector and support research as well as development efforts to improve the services provided locally and globally, Al-Nuhait added.

The CEO said it will also facilitate the transfer of the expertise and resources to the Kingdom.

Moreover, it will also contribute to achieving the goals of the Kingdom’s Vision 2030 by creating direct and indirect job opportunities.

Believe CEO Ankit Mahajan said this partnership represents a strategic opportunity to expand the scope of investment and boost manufacturing capabilities.  

The agreement will also provide contract manufacturing services for local brands in the initial stage and will expand to international brands in the future.

In August, Halal Products Development Co. signed a strategic cooperation agreement with the Saudi Exports Development Authority to launch the Halal Products Manufacturing Accelerator Program.

According to a statement, the new program came amid the Kingdom’s efforts to become a global hub for halal food products and accelerate the growth of the sector.

TVM Capital Healthcare launches $250m fund for Saudi medical firms

TVM Capital Healthcare launches $250m fund for Saudi medical firms
Updated 28 May 2024

TVM Capital Healthcare launches $250m fund for Saudi medical firms

TVM Capital Healthcare launches $250m fund for Saudi medical firms

RIYADH: Saudi medical companies stand to benefit as private equity firm TVM Capital Healthcare unveils its second pool of funding valued at $250 million for the Middle East. 

Since 2009, the international growth capital investment fund has operated in the Middle East, expanding to Southeast Asia in 2021. 

The launch of the new fund builds on the firm’s past successes in the region, delivering compelling returns and showcasing its expertise in sourcing deals and nurturing the growth of sustainable enterprises, according to a press release. 

Bandr Al-Homaly, managing director and CEO of Jada Fund of Funds, said that the closing of the deal marks an important milestone in mobilizing private capital into Saudi Arabia’s healthcare sector. 

“We are pleased to lead the investment, providing capital to support the development of the sector in line with Vision 2030,” he said. 

TVM Capital focuses on addressing medical needs through strategic investments in entrepreneurial ventures. 

These efforts bring about lasting positive impacts in local communities and offer significant returns for investors, it said. 

The firm said it has built a reputation as an international fund manager involved in financing and overseeing major medical companies within the Kingdom. 

The company also invests in healthcare growth deals in Europe and the US to support these firms’ expansion plans for Saudi Arabia and the wider Gulf Cooperation Council. 

With this two-pronged strategy, TVM Capital aims to bolster the Saudi economy and enhance the region’s access to cutting-edge products, technologies, and services.

Chairman and CEO Helmut M. Schuehsler expressed pride in attracting a notable consortium of institutional and family investment groups from Saudi Arabia, other GCC countries, and Europe. They are investing in a specialized capital pool dedicated to domestic companies in the Kingdom and international firms entering the market.

 “We are uniquely positioned for success because our leadership team comprises executives with long-standing expertise in Europe and the US, who have built excellent international networks throughout their careers, alongside local Saudi healthcare experts,” he said. 

The chairman noted that their investment journey in the GCC and Egypt spans over 13 years, with a specific focus on Saudi Arabia since 2015 through their previous portfolio companies, ProVita International Medical Center and Cambridge International Medical Center. 

“Today, we are truly excited about our ability to enhance the local and regional healthcare ecosystem at a much larger scale, helping to improve access to high-quality patient care, medical products, and treatment regimens across the Kingdom,” Schuehsler said. 

Among the initial investments of the fund are Baraya Extended Care, a chain of long-term, post-acute care and rehabilitation clinics based in Riyadh; and DEBx Medical, a developer and manufacturer of innovative products for chronic wound treatment based in Amsterdam, which is set to enter the Saudi market. Additionally, neurocare group, a provider of personalized mental health services and products headquartered in Munich, with clinics in the US, the Netherlands, and Australia, is gearing up to enter Saudi Arabia and the GCC. 

According to the statement, additional deals encompass longevity and genomics, oncology and pharmaceuticals, as well as manufacturing and diagnostics. 

TVM Capital operates offices in Riyadh, Dubai, Singapore, and Ho Chi Minh City, with supporting offices in Munich and Boston. 

The multinational law firm Morgan Lewis represented the firm in the fundraiser.