24 Fintech: BIM Ventures and SC Ventures forge partnership to accelerate digital transformation in Saudi Arabia

24 Fintech: BIM Ventures and SC Ventures forge partnership to accelerate digital transformation in Saudi Arabia
Alex Manson, CEO of SC Ventures, speaking to Arab News Business Editor Reina Takla. AN
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Updated 01 October 2024
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24 Fintech: BIM Ventures and SC Ventures forge partnership to accelerate digital transformation in Saudi Arabia

24 Fintech: BIM Ventures and SC Ventures forge partnership to accelerate digital transformation in Saudi Arabia

RIYADH: Saudi-based venture capital studio BIM Ventures has signed an agreement with a unit of Standard Chartered to drive digital transformation and growth in the Kingdom.

The memorandum of understanding was inked with SC Ventures on the sidelines of the 24 Fintech conference in Riyadh. 

The agreement aims to accelerate the growth of innovative startups by blending SC Ventures’ global expertise with BIM Ventures’ regional market insights.

This strategic partnership represents a crucial milestone in advancing innovation and realizing the goals of Saudi Vision 2030, as cultivating an entrepreneurial ecosystem that drives economic and technological growth secures the Kingdom’s alignment with its objectives.

“We’re announcing an MoU with BIM Ventures, which is a venture building lab located here, looking forward to essentially building businesses in this particular market, and we both bring very, different things to the table, obviously, but in the same time, very much often of an alignment of mindset in terms of how we building things,” Alex Manson, CEO of SC Ventures told Arab News in an interview.

He added: “We are focused on some of the same themes, which is, serving clients in financial services the way they need and want to be served in this market.”

This collaboration will develop, co-create, and scale new ventures to tackle major industry challenges and drive sustainable regional impact and growth.

The two companies will also work together to create innovative technological solutions that address the market’s evolving needs, focusing on sectors such as fintech, property, and investment technology.

Through this collaboration, joint projects will be identified and implemented to support the growth of startups and foster an innovative entrepreneurial environment.

“Our partnership with SC Ventures represents a strategic step toward localizing global expertise in banking and financial technology to meet the needs of the Saudi market,” Mohamed Amine Merah, managing partner and CEO of BIM Ventures, said.

He added: “We will build and invest in joint projects to develop innovative financial solutions, increase the Saudi market’s attractiveness to investors, and contribute to sustainable economic growth.”

Manson further elaborated that the MoU goes beyond merely funding new ventures; it represents a comprehensive approach to building and scaling startups.

“I expect we’re going to be very much present in Saudi, specifically with building a business, looking for partners as I speak. That’s why I’m here today,” Manson said.

This includes providing financial investment and contributing valuable talent, expertise, and hands-on support.

“Actually, It’s for both, across operational people and go-to-market issues and everything, and that’s what venture building entails and expect to do exactly,” Manson said.

During the interview, the CEO pointed out that companies started by women often struggle more than those launched by men to secure funding.

However, he highlighted that startups with male and female co-founders tend to excel in fundraising, saying this “is an interesting take on diversity as a separate matter.” 

He added: “I would expand the point of diversity by saying that it’s gender diversity. It’s background diversity. it's different ways of thinking, and making sure of that, but someone else can come and complement you, and so mixing up different people with very different backgrounds, gender included, but not limited to, that is where the magic happens.”

Manson then emphasized that ventures with diverse teams — composed of individuals with different backgrounds and perspectives — tend to perform significantly better than those led by a homogenous group.

When a team is made up of similar people, they might suffer from “groupthink,” where they miss important insights and opportunities due to a lack of varied viewpoints.


Saudi-UAE trade soars 25% to $30bn amid strengthened economic ties

Saudi-UAE trade soars 25% to $30bn amid strengthened economic ties
Updated 27 October 2024
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Saudi-UAE trade soars 25% to $30bn amid strengthened economic ties

Saudi-UAE trade soars 25% to $30bn amid strengthened economic ties

RIYADH: Saudi Arabia’s trade with the UAE has experienced a 25 percent increase, highlighting a significant boost in economic collaboration between the two nations. By the end of 2023, the trade volume reached SR113 billion ($30 billion), up from SR90 billion in 2019.

During the third Saudi-Emirati Economic Forum held in Riyadh, Saudi Minister of Economy and Planning Faisal Al-Ibrahim announced that direct Emirati investments in Saudi Arabia have also grown, reaching SR111 billion by the end of 2023—a 15 percent increase compared to the previous year.

“We are witnessing tangible outcomes from our clearly defined vision and ambitious strategy for economic cooperation,” Al-Ibrahim stated.

He noted that over the past five years, trade volume has risen nearly 25 percent, with thousands of registered trademarks, agencies, and companies operating across various sectors, including mining, trade, and real estate.

UAE Minister of Economy Abdullah Al-Marri highlighted that in 2023, non-oil foreign trade between the two countries reached 137 billion dirhams ($37.3 billion), emphasizing the strength of their economic partnership. Non-oil trade surged to 75 billion dirhams in the first half of 2024, reflecting an impressive growth rate of over 18 percent compared to the same period in 2023.

“In 2023, UAE investment in Saudi markets exceeded 15.7 billion dirhams, marking a 6 percent growth from 2022,” Al-Marri added.

Additionally, the cumulative stock of Saudi investments in the UAE reached $6.5 billion by the end of 2022, making Saudi Arabia the fourth largest investor in the UAE.

Al-Marri noted that tourism plays a vital role in their economic relations, with Saudi Arabia ranking among the top 10 tourism markets for the UAE. Over 1.7 million Saudi tourists visited the UAE in 2023.

This upward trend reflects both nations' commitment to strengthening trade relations and fostering mutual economic benefits. In the past four years, over 30 economic reforms have been enacted, including updates to commercial companies law that allow 100 percent foreign ownership. These reforms also cover cooperatives, family businesses, e-commerce, consumer protection, and anti-money laundering.

The forum, organized by the Federation of Saudi Chambers, featured a trade delegation from the UAE, including over 100 leading Emirati companies, and was attended by key officials from both countries.

FSC Chairman Abdulhakim Hamad Al-Khaldi reported that the trade exchange between Saudi Arabia and the UAE has been on a continuous growth trajectory, totaling SR327.506 billion ($87.3 billion) in the last three years alone. “The UAE remains Saudi Arabia's largest Arab trading partner and the sixth largest globally,” he stated.

Al-Khaldi emphasized that the two countries are increasingly diversifying their income sources beyond oil, including investments, tourism, industry, services, transportation, and infrastructure.

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef stressed the importance of leveraging the current momentum in industrial integration, noting a notable increase in Saudi exports to the UAE, with an annual growth rate of over 9 percent from 2018 to 2023. “In the first half of 2024, Saudi exports to the UAE exceeded SR31 billion,” he said.

He also pointed out the potential for enhanced collaboration in the industrial and mining sectors, aiming to share knowledge and technology related to the Fourth Industrial Revolution, including AI and automation.

Al-Khaldi reiterated the promising outlook for bilateral trade, stating, “The numbers reflect a clear vision of vast opportunities across sectors, supporting Saudi Vision 2030 and the UAE’s vision.”

Waleed Al-Orainan, assistant secretary-general of FSC, emphasized the welcoming business environment in Saudi Arabia, noting that around 850 reforms have been made to improve conditions for foreign companies.

With about 629 flights weekly between the two countries, trade volumes continue to thrive. “The trade volume is SR112 billion, with SR62 billion from Saudi exports, which is significant,” Al-Orainan said.

Fayez Al-Shaili, vice president of FSC, highlighted promising sectors, particularly tourism and industry. “Saudi Arabia has immense tourism potential, with historical sites requiring development to attract global visitors,” he explained.

Al-Shaili expressed optimism for future growth, with aspirations to double investment flows to 30 billion dirhams, signaling a strong commitment to strengthening economic ties and expanding opportunities in the Saudi market.


Global Proptech Summit in Riyadh kicks off with launch of new center

Global Proptech Summit in Riyadh kicks off with launch of new center
Updated 27 October 2024
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Global Proptech Summit in Riyadh kicks off with launch of new center

Global Proptech Summit in Riyadh kicks off with launch of new center
  • The event also saw the announcement of several partnerships
  • National Housing Co. and AlRajhi Takaful\ inked a pact to provide digital insurance products for residential units that are rented

RIYADH: Saudi Arabia’s global property technology summit commenced with the launch of a new center to boost the sector’s performance. 

Held in Riyadh from Oct. 27-28, the event’s opening featured several announcements, including the inauguration of the Saudi Proptech Center Sph, an initiative set to bolster innovation in the industry. 

During his opening speech, Abdullah Al-Hammad, CEO of Real Estate General Authority, announced the launch of the initiative, emphasizing its importance. 

“Today, we launch the Saudi Proptech Center Sph, to be an essential channel for innovation in real estate technologies and a major engine that drives all technical innovations, strategies, and development in the real estate sector,” Al-Hammad said. 

“This global proptech summit comes as one of the most important initiatives of the Saudi Proptech Center Sph to bring together the most prominent experiences, major investors, venture capitalists that embrace inspiring ideas, entrepreneurs, and emerging companies in the field of real estate technologies,” he added. 

Saudi Arabia’s Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail also highlighted the Kingdom’s goal to establish Riyadh as a global center for property technology at the summit’s opening. 

Al-Hogail pointed to the nation’s commitment to advancing the real estate sector by leveraging digital solutions to enhance regulatory frameworks, expand investment opportunities, and drive economic growth through technology. 

He said that digital transformation is a core component of Saudi Arabia’s Vision 2030, aimed at improving the quality of life for citizens, residents, and visitors while also enhancing service efficiency. 

Al-Hogail outlined how the integration of advanced technologies, such as artificial intelligence, the Internet of Things, and big data, is projected to create smarter and more sustainable urban environments. 

This technological push, he explained, is expected to attract investment, particularly in real estate platforms, brokerage services, and financing, which could facilitate transactions and promote market transparency. 

Al-Hammad also emphasized the role of investment in boosting the overall sector. “Investing and using technologies and real estate technology is an imperative necessity to keep pace with global developments and ensure the provision of the best services. The future belongs to those who invest in technology and harness it in the service of humanity,” he said. 

“We believe that technology is one of the most important tools that will lead the real estate sector to growth and sustainability, raise its efficiency and effectiveness, and enhance its role in diversifying non-oil sources of income,” he added. 

Al-Hammad said that real estate technology has a broad horizon, and its growth supports all strategies of scientific research, innovation, digital transformation strategies, and information technology as well as developing real estate legislation and systems. 

The event also saw the announcement of several partnerships. A cooperation agreement was signed between the Real Estate General Authority and the National Program for the Development of Information Technology. The deal aims to adopt international best practices in the sector. 

National Housing Co. and AlRajhi Takaful also inked a pact to provide digital insurance products for residential units that are rented. 

A cooperation agreement between the NHC and Malath Insurance, which aims to provide digital insurance services for rental housing units, was also announced during the event.


Saudi Arabia opens Sindalah in NEOM as part of Vision 2030 tourism drive

Saudi Arabia opens Sindalah in NEOM as part of Vision 2030 tourism drive
Updated 27 October 2024
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Saudi Arabia opens Sindalah in NEOM as part of Vision 2030 tourism drive

Saudi Arabia opens Sindalah in NEOM as part of Vision 2030 tourism drive

RIYADH: Saudi Arabia has unveiled its luxury island destination, Sindalah, part of the $500-billion NEOM mega-project, as the Kingdom intensifies efforts to expand its tourism sector. 

NEOM announced that the project, developed over two years with the involvement of four local contractors and 60 subcontractors, has welcomed its first guests, signaling a new era of high-end tourism in Saudi Arabia, according to a press release. 

Such giga-projects are central to Saudi Arabia’s strategy for economic diversification, aligning with the Kingdom’s Vision 2030 tourism goals. The National Tourism Strategy aims to draw 150 million visitors by 2030 and increase tourism’s contribution to gross domestic product from 6 percent to 10 percent. 

“NEOM is committed to supporting the Kingdom’s new era of luxury tourism, with the opening of Sindalah. The realization of this landmark destination, the gateway to the Red Sea, is due to the visionary leadership of His Royal Highness Mohammed bin Salman and Saudi Vision 2030,” said Nadhmi Al-Nasr, CEO of NEOM.  

He added: “NEOM’s inaugural destination offers visitors a ‘first glimpse’ of what the future holds for our extensive portfolio of destinations and developments.”  

Located 5 km off NEOM’s northwest coast, Sindalah spans 840,000 sq. meters and is set to welcome up to 2,400 guests daily by 2028, creating 3,500 jobs and driving growth in Saudi Arabia’s hospitality and tourism sectors. 

Sindalah’s waters are home to 1,100 fish species, including 45 unique to NEOM, and over 300 coral species.  

“In line with NEOM’s commitment to sustainability and conservation, preservation of Sindalah’s natural marine habitat has been central to the island’s development, and guests are invited to dive beneath the surface to explore its wonders for themselves,” stated NEOM.  

The destination will feature a yacht club, beach club, and golf club, as well as docking facilities, additional offshore buoys for super yachts, and comprehensive yacht management services. 

Sindalah offers 440 rooms, 88 villas, and 218 luxury serviced apartments for accommodation. NEOM stated that booking information will be released soon through its tourism channels. 


Closing Bell: Saudi benchmark index up 1.54% to close at 12,068

Closing Bell: Saudi benchmark index up 1.54% to close at 12,068
Updated 27 October 2024
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Closing Bell: Saudi benchmark index up 1.54% to close at 12,068

Closing Bell: Saudi benchmark index up 1.54% to close at 12,068

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 182.91 points, or 1.54 percent, to close at 12,068.97.

The benchmark index recorded a total trading turnover of SR5.48 billion ($1.45 billion), with 213 stocks advancing and 19 declining.

The Kingdom’s parallel market, Nomu, also saw gains, rising 98.65 points, or 0.37 percent, to close at 26,916.94, as 32 of the listed stocks increased while 40 fell.

In contrast, the MSCI Tadawul Index dropped 22.67 points, or 1.52 percent, finishing at 1,517.57.

The top performer of the day was Miahona Co., whose shares surged by 9.86 percent to SR28.40. Other notable gainers included CHUBB Arabia Cooperative Insurance Co. and Saudi Manpower Solutions Co., with share prices rising 7.83 percent and 7.26 percent to SR48.90 and SR8.57, respectively.

On the downside, Al-Baha Investment and Development Co. was the worst performer, with its share price dropping 7.14 percent to SR0.26. Emaar The Economic City and City Cement Co. also saw declines, with their share prices falling by 7.14 percent and 1.85 percent to SR8.51 and SR17.74, respectively.

On the announcements front, Etihad Etisalat Co. — Mobily — announced its consolidated interim financial results for the period ending Sept. 30.

According to a Tadawul statement, the company recorded a net profit of SR2.12 billion for the first nine months of the year, reflecting a 43.13 percent increase compared to the same period in 2023.

This growth was primarily driven by a 5.7 percent rise in gross profit and an 8.2 percent increase in EBITDA, alongside a 24 percent rise in operating profit.

Additionally, financial charges decreased by 9.2 percent, while zakat and income tax increased. Mobily’s shares ended the session at SR52.20, up 2.16 percent.

Al-Rajhi Bank also reported its interim financial results for the period ending Sept. 30, showing a net profit of SR14.6 billion for the first nine months of 2024, a 14.09 percent rise compared to the same period in 2023. This increase was attributed to a 13.8 percent growth in total operating income, driven by higher net financing and investment income, fees from banking services, and exchange income. However, total operating expenses, including impairment charges, rose by 13.4 percent due to increased depreciation and employee-related benefits, despite a decline in other administrative expenses. The bank’s shares closed at SR87, up 1.88 percent.

National Industrialization Co. reported a net profit of SR69.8 million for the first nine months of 2024, marking a 63.5 percent decline compared to the same period in 2023.

This drop was mainly due to lower average selling prices for certain products, increased costs of sales, and a reduced share of profits from joint ventures. Despite an increase in revenue from higher sales volumes, the company ended the session at SR10.64, up 1.9 percent.

Jamjoom Pharmaceuticals Factory Co. announced a net profit of SR304.9 million for the first nine months of 2024, reflecting a 22.9 percent increase year on year, driven by revenue growth and operational efficiencies. The company’s shares closed at SR166, down 1.21 percent.

Lastly, Sabic Agri-Nutrients Co. reported a net profit of SR2.3 billion for the first nine months of 2024, a decrease of 11.4 percent compared to the same period in 2023. This decline was attributed to lower average selling prices and increased costs of goods sold. The company’s shares ended the session at SR116.60, up 1.55 percent.


BRICS leaders call for urgent action to address land degradation, desertification, drought

BRICS leaders call for urgent action to address land degradation, desertification, drought
Updated 27 October 2024
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BRICS leaders call for urgent action to address land degradation, desertification, drought

BRICS leaders call for urgent action to address land degradation, desertification, drought

RIYADH: BRICS leaders are calling for increased financial resources and stronger partnerships to address land degradation, desertification, and drought ahead of a UN environment conference in Saudi Arabia in December.

This comes as the leaders of Brazil, Russia, India, and China, as well as South Africa, Egypt, Ethiopia, Iran, and the UAE, have issued a joint statement emphasizing that these environmental challenges “are posing serious threats to the well-being and livelihoods of people and the environment.”

In the statement, the BRICS leaders acknowledged ongoing efforts in sustainable land management while stressing the need for “integrated policies” to tackle these interconnected issues.

The statement comes as the Kingdom prepares to host the 16th session of the UN Convention to Combat Desertification, or UNCCD COP16, in Riyadh from Dec. 2 — 13, amid growing global concern over land degradation that already affects 40 percent of the planet and impacts 3.2 billion people, according to UNCCD data. 

The initiative aligns with the UNCCD’s objective to restore 1.5 billion hectares of damaged land by 2030. As per the UNCCD, each dollar put into land restoration has the potential to generate up to $30 in economic benefits.

“Saudi Arabia welcomes the BRICS leaders’ statement on the critical issue of land degradation as it reflects the increasing urgency to slow and ultimately reverse the trend of degrading land worldwide,” Deputy Minister for Environment at the Kingdom’s Ministry of Environment, Water and Agriculture, and Adviser to the COP16 Presidency Osama Faqeeha said. 

“At COP16 in Riyadh, we will work to forge new partnerships that can accelerate land restoration and drought resilience efforts, particularly in vulnerable regions. Land degradation, drought and desertification impact almost every corner of the planet, exacerbating forced migration and worsening global food and water insecurity. It is imperative the international community address the root causes of these issues at the UNCCD COP16 in Riyadh,” Faqeeha added.

The upcoming UNCCD COP is anticipated to be the most extensive one yet, showcasing the inaugural Green Zone as a specialized hub for cooperation and creativity, with the goal of elevating the involvement of the private sector in land restoration efforts.

Earlier in October, Saudi Foreign Minister Prince Faisal bin Farhan led the Kingdom’s delegation at the BRICS Plus 2024 Summit in Kazan, Russia, on behalf of King Salman. 

Prince Faisal highlighted at the time that the volume of bilateral trade with the BRICS countries exceeded $196 billion in 2023, representing 37 percent of the Kingdom’s total foreign trade, underscoring the significant economic relationships driving the nation’s engagement with the bloc.

Saudi Arabia has not officially joined the bloc but participates in its activities as an invited nation.