Startup Wrap – Saudi startup ecosystem leads regional funding activity

Startup Wrap – Saudi startup ecosystem leads regional funding activity
Yalla Plus has served thousands of entrepreneurs across 11 countries and plans to scale its reach to 100,000 entrepreneurs in 50 countries. (Supplied)
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Updated 25 August 2024
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Startup Wrap – Saudi startup ecosystem leads regional funding activity

Startup Wrap – Saudi startup ecosystem leads regional funding activity
  • Resal, a Saudi-based e-gifting platform, has successfully raised $9 million in a series A round to fuel its growth

RIYADH: Saudi Arabia’s startup ecosystem continues to see robust growth, with a diverse range of sectors attracting significant investment. 

Companies across food technology, fintech, and loyalty platforms have secured funding to accelerate their expansion, both domestically and internationally. 

Resal, a Saudi-based e-gifting platform, has successfully raised $9 million in a series A round to fuel its growth. 

The round was backed by prominent investors, including Derayah Ventures Fund, Al-Wafrah AlThanya Investment Co., and Venture Souq FinTech Fund, as well as ADDiriyah Asset Management, Nomad Holdings, Bugshan Investment Group, and several family offices, alongside angel investors. 

Founded in 2016 by Fouad Al-Farhan and Hatem Kameli, Resal provides digital solutions designed to connect merchants, companies, and individuals through a unified platform. 

The company offers services that facilitate the management and exchange of loyalty points, prepaid cards, and vouchers across various sources. 

The latest funding will be used to accelerate Resal’s business expansion within Saudi Arabia. 

“Our success in securing these investments is a significant testament to the investors and partners’ belief in Resal’s role and its team’s efforts in developing an effective digital ecosystem that contributes to providing innovative solutions in loyalty programs, digital rewards, and alternative payments, in alignment with Saudi Arabia’s Vision 2030,” Kameli, the company’s CEO, said. 

He further claimed that the company recently doubled its sales growth and has increased the number of beneficiaries to more than 1.5 million users and over 1,000 entities and organizations across more than 15 sectors.  

Saudi Arabia’s Yalla Plus secures $2.7m seed funding for POS innovation 

Yalla Plus, a Saudi food tech startup, has closed a $2.7 million seed investment round led by Merak Capital. 

The round also saw participation from Khwarizmi Ventures, Isometry Capital, and a mix of regional and international angel investors. 

Established in 2022 by Abdullah Al-Rabeh and Bader Al-Nasser, Yalla Plus provides an integrated point-of-sale system that encompasses payment management, customer feedback processing, and delivery solutions. 

The company has reportedly served thousands of entrepreneurs across 11 countries and plans to scale its reach to 100,000 entrepreneurs in 50 countries, spanning the Middle East, Europe, and Southeast Asia. 

Mithu raises $500k pre-seed to aggregate loyalty programs 

Saudi-based Mithu, a loyalty platform aggregator, has raised $500,000 in a pre-seed funding round led by Web3 venture builder Adaverse. 

Founded in early 2024 by Mohsin Qureshi and Asif Ali, Mithu aims to streamline loyalty programs by consolidating them into a single, gamified app. 

It is designed to boost customer engagement, particularly in the food and beverage sector. 

Mithu claims to have already secured agreements with around 200 restaurants in Riyadh. The company’s gamification strategy is positioned to help businesses increase customer retention through enhanced loyalty interactions. 

Asas secures $320k for AI-driven developer-sharing platform 

Saudi Arabia’s Asas Specialized Information Technology has raised $320,000 in a pre-seed round for its flagship product, Resquad AI. 

The round was backed by angel investors, and the investment will be used to expand the company’s operations within the Kingdom. 

Founded by Abdullah Abdulaziz Al-Jafaari in 2024, Resquad AI facilitates flexible collaboration among software development firms by allowing them to share developers with other companies or external clients. 

Asas plans to enhance its platform and drive growth in the Saudi IT sector with the new capital. 

UAE-based Meteora Developers acquires property crowdfunding platform Maisour 

UAE-based real estate developer Meteora Developers has acquired Emirati property crowdfunding platform Maisour in a multimillion-dollar deal. 

Founded in 2022 by Praveen Sharma, Meteora has developed a diverse real estate portfolio across the UAE. 

Maisour, launched in 2021 by Ahmed Nour, Haytham Assaal, and Sari Safi, offers global investors the opportunity to participate in the UAE’s real estate market through fractional ownership. 

With this acquisition, current and future investors on the Maisour platform will gain access to Meteora’s extensive offerings, further expanding their opportunities in the UAE property sector. 

Falcon Gate Ventures launches $100m Web3 innovation fund 

Singapore-based Gate Ventures, the venture capital arm of Gate.io, and the Blockchain Center in Abu Dhabi have teamed up to launch a $100 million fund to promote Web3 innovation globally. 

Named Falcon Gate Ventures, the fund aims to accelerate the adoption of decentralized technologies and infrastructure. 

It will focus on fostering innovation in regions such as the US, Asia, Europe, and the MENA region, targeting key areas of Web3 development. 

Both Gate Ventures and the Blockchain Center intend to leverage their combined expertise to support emerging talents and advance the digital economy. 

Pakistan’s PostEx raises $7.3m to drive expansion into the GCC 

Pakistan-based fintech startup PostEx has secured $7.3 million in a pre-series A round led by Conjunction Capital, alongside Dash Ventures, Sanabil500, VSQ, FJ Labs, and Zayn VC. 

Founded in 2020 by Muhammad Khan, PostEx offers upfront payments to e-commerce businesses while providing a reliable delivery network. 

Prior to this round, the company had raised $8.6 million from investors such as Global Founder Capital, MSA Capital, and Shorooq Partners. 

The company intends to utilize the fresh capital to expand its services into the Gulf Cooperation Council region, further bolstering its fintech and logistics solutions. 

Egypt’s NoorNation secures investment from KBW Ventures for clean energy solutions 

Egypt-based climate tech startup NoorNation has received an undisclosed investment from KBW Ventures, founded by Saudi Prince Khaled bin Al-Waleed. 

NoorNation, which was launched in 2021 by Ragy Ramadan and Mohamed Khaled, focuses on delivering decentralized energy and water infrastructure to off-grid areas across Egypt and Sub-Saharan Africa. 

NoorNation’s flagship product, LifeBox, provides clean energy and safe water to rural communities, farms, and tourism businesses at affordable prices. 

The company has gained recognition for its work, including being named Best Green Tech Startup of the Year in Northern Africa by the Global Startup Awards 2024. This marks KBW Ventures’ first investment in Egypt’s startup ecosystem. 

UAE fintech Yuze raises $30m for SME financial inclusion 

UAE-based fintech startup Yuze has raised $30 million in a funding round led by Osten Investments. 

Founded in 2022 by Rabih Sfeir, Yuze offers business accounts tailored to startups, micro, and small enterprises, with a focus on financial inclusion in emerging markets. 

The company plans to utilize the funds to expand into new markets and aims to reach one million small and medium-sized enterprise and professional customers within the next five years. 

Yuze’s expansion strategy is intended to bridge the financial inclusion gap for underserved businesses across various regions.


Bailout: Pakistan thanks Saudi Arabia, UAE, China for support ahead of IMF meeting

Bailout: Pakistan thanks Saudi Arabia, UAE, China for support ahead of IMF meeting
Updated 25 September 2024
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Bailout: Pakistan thanks Saudi Arabia, UAE, China for support ahead of IMF meeting

Bailout: Pakistan thanks Saudi Arabia, UAE, China for support ahead of IMF meeting
  • IMF executive board scheduled to meet today to discuss approval of $7 billion loan for Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif said on Wednesday Pakistan had met the “tough conditions” set by the International Monetary Fund with the help of Saudi Arabia, the UAE and China, as the global lending agency’s board meets today to discuss the $7 billion loan program for the country.

Pakistan reached a staff-level agreement with the IMF in July for a fresh loan to keep its fragile economy afloat. Finance Minister Muhammad Aurangzeb had earlier expressed hope of sealing the deal by the end of August. However, delays were caused by an external financing gap, which prompted Pakistan to seek commitments from key allies and request debt reprofiling.

Just a day earlier, the finance minister again expressed optimism about securing the loan program after the IMF board meeting, while emphasizing the government’s commitment to structural reforms.

“[Today] is the IMF board meeting, and we have fulfilled all of their conditions, very tough conditions, but praise be to God, we have completed them,” he told the media in New York on the sidelines of the 79th United Nations General Assembly Session. “I want to express my heartfelt gratitude once again, to our trusted brother nations, Saudi Arabia, China and the UAE. Without their immense support, this would not have been possible.”

“At the final stage, the conditions were related to China, and just like in the past, the Chinese government once again held Pakistan’s hand and offered immense support,” he added. “I am deeply grateful to the Chinese leadership.”

Pakistan’s last $3 billion IMF program helped avert a sovereign default in 2023 amid a sharp decline in foreign exchange reserves, currency depreciation and record inflation.

The government has already maintained that the country’s macroeconomic indicators have improved, though it needs the 37-month-long IMF program to solidify those gains.

“You have to grow and build from a stable base,” Pakistan’s finance minister said on Tuesday while addressing a high-level private sector dialogue, ‘CPEC-II and the Region.’ “We have reached that level now. Now, we can say that we have a good foundation on which we can build from here.”

“Now we need to move forward and stay with the reform agenda whether it’s on the taxation or energy side [or] on the state-owned enterprises or privatization side,” he added.


Closing Bell: Saudi main index gains 75 points to end at 12,343

Closing Bell: Saudi main index gains 75 points to end at 12,343
Updated 25 September 2024
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Closing Bell: Saudi main index gains 75 points to end at 12,343

Closing Bell: Saudi main index gains 75 points to end at 12,343

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 75.3 points, or 0.61 percent, to close at 12,343.72. 

The total trading turnover of the benchmark index stood at SR7.09 billion ($1.89 billion), with 136 stocks advancing and 83 declining. 

The Kingdom’s parallel market, Nomu, dropped 30.99 points, or 0.12 percent, to close at 25,653.38, as 26 stocks advanced and 33 retreated. 

The MSCI Tadawul Index added 9.85 points, or 0.64 percent, to close at 1,545.63. 

The best-performing stock of the day was Saudi Printing and Packaging Co., which surged 10 percent to close at SR14.52.  

Other top performers included Saudi Industrial Development Co. and Saudi Fisheries Co., whose share prices rose 9.93 percent and 9.9 percent, respectively. 

National Medical Care Co. was the worst performer, with its share price falling 2.47 percent to SR213.60.  

Other underperformers were Gulf Union Alahlia Cooperative Insurance Co. and Saudi Reinsurance Co., which saw their share prices decline by 2.28 percent and 2.17 percent to SR16.26 and SR36, respectively. 

On the parallel market, Al Mohafaza Co. for Education was the top performer, with its share price rising 9.21 percent to SR23. 

Other top performers on Nomu were Armah Sports Co. and Balady Poultry Co., with their share prices increasing 5.33 percent and 4.49 percent, respectively. 

Banan Real Estate Co. was the worst performer on Nomu, dropping 7.8 percent to SR5.44. 

Other notable decliners included Academy of Learning Co. and Leen Alkhair Trading Co., with their shares down 6.73 percent and 4.55 percent, respectively.  

On the announcements front, Saudi AZM for Communication and Information Technology Co. confirmed the award of a new project from the General Entertainment Authority.  

The project aims to provide guidance and support to entrepreneurs and businesses in the entertainment sector, reflecting a strategic push to foster industry growth aligned with Saudi Arabia’s Vision 2030. 

The project’s value exceeds 5 percent of AZM’s total revenues for the 2024 financial year. Its scope includes advisory services to strengthen the capabilities of entertainment sector stakeholders. 

This initiative builds on the existing partnership between AZM and GEA. Previously, AZM collaborated with GEA on a major digital transformation project that modernized the authority’s operational framework. 

Through that collaboration, AZM implemented IT solutions that enhanced GEA’s digital infrastructure, improving efficiency and service delivery. The project involved upgrading critical systems, automating processes, and integrating advanced technologies.


Saudi Arabia to host Global Logistics Forum in October 

Saudi Arabia to host Global Logistics Forum in October 
Updated 25 September 2024
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Saudi Arabia to host Global Logistics Forum in October 

Saudi Arabia to host Global Logistics Forum in October 

RIYADH: Saudi Arabia's transportation and supply chain sector evolution will be a central topic as top leaders discuss innovative strategies and advancements at the Global Logistics Forum in Riyadh. 

The event, set to take place from Oct. 12-14, comes as investment in the sector is surging, with a 76 percent increase in new businesses registered in the second quarter of 2024, making logistics the fastest-growing sphere in the Kingdom. 

Spearheaded by the Ministry of Transport and Logistic Services, the sector is undergoing significant changes to solidify the Kingdom's pivotal role in global trade. This transformation focuses on using advanced technologies to promote sustainability and improve infrastructure and transportation solutions, the Saudi Press Agency reported. 

The forum highlights the Kingdom's initiatives to develop and strengthen logistics centers, improving domestic and international connectivity. 

The three-day event is expected to gather over 100 speakers and participants, including industry leaders and government representatives.

This year's forum will also attract over 10,000 participants from leading global organizations who will address pressing logistics challenges with discussions on sustainability, supply chain resilience, workforce advancement, and technology adoption. 

The agenda includes keynote speeches, dialogue sessions, and bilateral meetings, fostering innovative, sustainable visions for the industry's future.

The event falls in line with Saudi Arabia's strategic location as a trade corridor between Asia, Africa, and Europe and aligns well with the nation's goal to consolidate its position as a global logistics hub under Vision 2030 and the National Transport and Logistics Strategy. 

These initiatives and efforts have propelled Saudi Arabia up 17 positions in the World Bank's Logistics Performance Index.

The Kingdom's port standings have also advanced, with the country climbing to 15th place globally in annual container handling. 

Three Saudi hubs were mentioned in Lloyd's List One Hundred Ports 2024, a testament to the country's growing influence in logistics and support for economic growth.  

The civil aviation sector is equally dynamic, highlighted by the Saudia Group's record-setting purchase of 105 Airbus planes and growing investment opportunities at airports. 

These developments are establishing new standards for global connectivity and infrastructure.  

This momentum marks a new era of leadership and innovation, aligned with national ambitions to redefine global trade and logistics under the ministry's sustainable and technologically progressive leadership.

The Kingdom presents substantial opportunities for global logistics players. With a population of approximately 36 million and a gross domestic product of $1.81 trillion in purchasing power parity as of the end of 2023, Saudi Arabia is a central hub for expansive trade routes supported by world-class infrastructure.  

Another major catalyst for growth is the Kingdom securing the bids for Expo 2030 and the 2034 FIFA World Cup — both of which will attract substantial global business opportunities, opening new channels for trade and commerce.


New customs agreement to boost UAE, US economic ties

New customs agreement to boost UAE, US economic ties
Updated 25 September 2024
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New customs agreement to boost UAE, US economic ties

New customs agreement to boost UAE, US economic ties

RIYADH: The economic partnership between the UAE and the US is poised for significant expansion with the introduction of a new customs cooperation agreement. This initiative aims to reduce customs violations, combat illicit trade, and enhance technical collaboration between the two nations.

The agreement was formalized during UAE President Sheikh Mohamed bin Zayed’s visit to the US, marking a crucial step in streamlining customs operations and strengthening trade relations. Ali Al-Shamsi, chairman of the UAE Federal Authority for Identity, Citizenship, Customs, and Port Security, and Troy Miller, acting commissioner of US Customs and Border Protection, signed the accord.

Al-Shamsi underscored the agreement’s importance, stating it would broaden trade opportunities and facilitate the exchange of customs expertise, alongside enhancing national capabilities through targeted training programs.

He told the Emirates News Agency, WAM: “Bilateral trade between the two nations continues to grow steadily, driven by our deep political and economic ties. This growth brings numerous advantages, particularly in fortifying customs relations and expanding trade scope to navigate challenges that may impede the seamless flow of goods.”

The UAE and the US enjoy a robust economic relationship, with bilateral non-oil trade skyrocketing to $31.4 billion in 2023, up from $23.8 billion the previous year. Notably, US exports to the UAE surged by 19 percent, totaling $24.8 billion. The UAE remains the largest market for US goods in the Middle East, highlighting its vital role as a trade hub.

This burgeoning trade dynamic yields substantial benefits for both economies. US exports to the UAE supported approximately 125,000 jobs across the US in 2023. Meanwhile, the UAE’s exports to the US reached around $6.6 billion, featuring a diverse array of products including aluminum and precious metals, reflecting the complementary nature of their trade.

Al-Shamsi further emphasized that the customs cooperation and mutual assistance agreement underscores the UAE’s pivotal role as a regional gateway for global trade. Its strategic location connects Asia, Europe, and Africa, making it an essential transit hub.

With the US, the world’s largest economy, as a historical partner, the UAE's non-oil trade strategy and investments in sectors like real estate, technology, and manufacturing highlight the mutual interest in nurturing a vibrant trade and investment relationship.


KAUST, Abdul Latif Jameel Motors strike deal with Toyota to advance hydrogen fuel research  

KAUST, Abdul Latif Jameel Motors strike deal with Toyota to advance hydrogen fuel research  
Updated 25 September 2024
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KAUST, Abdul Latif Jameel Motors strike deal with Toyota to advance hydrogen fuel research  

KAUST, Abdul Latif Jameel Motors strike deal with Toyota to advance hydrogen fuel research  

JEDDAH: Saudi Arabia will accelerate hydrogen fuel cell research after two local entities joined with Toyota Motor Corp. to increase decarbonization efforts in the transportation sector and beyond.

King Abdullah University of Science and Technology and Abdul Latif Jameel Motors have embarked on a strategic partnership with the Japanese firm to implement cleaner energy solutions.

At the heart of this initiative, KAUST has acquired proton electrolyte membrane fuel cell modules from Toyota, establishing a cutting-edge laboratory within its Clean Energy and Research Platform.

This facility is poised to play a crucial role in the Kingdom’s hydrogen innovation efforts, particularly in adapting fuel cells to the region’s specific environmental conditions, KAUST said in a statement.

Saudi Arabia aims to deliver around 2.9 million tons of hydrogen by 2030, offering competitive domestic and export costs, and this collaboration aligns with the Kingdom’s commitment to reducing greenhouse gasses and achieving net zero emissions by 2060.  

Mani Sarathy, professor of chemical engineering at KAUST, said they are excited to collaborate with TMC and Abdul Latif Jameel Motors to drive the adoption of hydrogen fuel cell technology in Saudi Arabia.

“Through our Clean Energy Research Platform, we are focused on advancing research that will optimize hydrogen fuel cells for the region’s specific conditions, ensuring their efficiency and reliability,” Sarathy said.

He emphasized that this partnership demonstrates their commitment to pioneering innovations that support sustainable solutions and contribute to a greener future for the Kingdom and beyond.

Sarathy and his CERP team are currently leading research efforts to explore the performance, durability, and environmental integration of PEM fuel cells, supported technically and financially by TMC and Abdul Latif Jameel Motors, the authorized distributor of Toyota vehicles in Saudi Arabia since 1955.

The team is undertaking a series of modeling and experimental studies to evaluate factors such as temperature sensitivity, humidity effects, and overall efficiency, aiming to optimize the environmental advantages of these fuel cells within the Kingdom’s infrastructure, KAUST said in its release.

Mazin Ghazi Jameel, managing director of Toyota marketing operations at ALJ Motors, commented that his company is dedicated to facilitating the development and adoption of solutions that benefit both local and global communities.

“A key focus is promoting fuel cell technology to establish Saudi Arabia as a key contributor to sustainable mobility. This strategic partnership reaffirms our commitment to enabling a future of cleaner, efficient and smarter mobility accessible to all, supporting the transformational needs of businesses and individuals in the Kingdom of Saudi Arabia,” Ghazi said.

Nobuyuki Takemura, chief representative of the Toyota liaison office for mobility and energy in the Kingdom, remarked that for more than two decades, TMC has been a leader in environmentally friendly mobility solutions, showcasing a steadfast commitment to a zero-carbon future through ongoing innovation and significant global investment.

“In partnership with the KAUST research team within CERP and Abdul Latif Jameel Motors, we are bringing this technology to Saudi Arabia, supporting its decarbonization goals. Toyota is dedicated to contributing to the research at KAUST and to advancing the Kingdom’s economic diversification and circular carbon economy, in alignment with Vision 2030,” he said.