Saudi mobility startup Shift leads regional funding activity 

Founded in 2017 by Khalid Al-Sulaiman, Shift provides technology-driven mobility solutions for people and products, and currently operates in 57 cities across Saudi Arabia with a fleet of over 12,000 vehicles. (Supplied)
Founded in 2017 by Khalid Al-Sulaiman, Shift provides technology-driven mobility solutions for people and products, and currently operates in 57 cities across Saudi Arabia with a fleet of over 12,000 vehicles. (Supplied)
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Updated 18 min 21 sec ago
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Saudi mobility startup Shift leads regional funding activity 

Saudi mobility startup Shift leads regional funding activity 
  • In Saudi Arabia, car rental firm Shift raised $82.8 million in an investment led by Merak Capital

RIYADH: Mobility, climate, and tech startups across the Middle East and North Africa have secured significant investments in recent weeks, reflecting the region’s continued growth in innovation. 

In Saudi Arabia, car rental firm Shift raised $82.8 million in an investment led by Merak Capital, making it one of the largest funding rounds in the second half of the year. 

Founded in 2017 by Khalid Al-Sulaiman, the company provides technology-driven mobility solutions for people and products, and currently operates in 57 cities across Saudi Arabia with a fleet of over 12,000 vehicles. 

“We are thrilled to partner with Merak Capital, whose investment validates our innovative approach and commitment to revolutionizing mobility solutions in Saudi Arabia. This partnership will accelerate our growth, allowing us to expand our services and enhance our technology to meet the evolving needs of our customers, particularly within the tourism sector,” Al-Sulaiman said. 

“Together, we are poised to set new standards for efficiency, sustainability, and service excellence, driving toward a future where technology and sustainability create lasting value for our customers, stakeholders, and communities,” he added. 

This fresh capital will support Shift’s growth and innovation, enabling the company to accelerate its intelligent mobility solutions. The funding is expected to enhance SHIFT’s ability to serve its expanding customer base and scale its operations across the Kingdom. 

Merak Capital believes in Shift’s growth potential with the investment firm’s CEO praising the startup’s locale strength. 

“Our belief in the impact of technology on the mobility of people, products, and businesses is profound, and with our position and track record as one of the leading technology investment firms in the region, coupled with the innovation and capabilities of Shift as a mobility pioneer, we believe this partnership will yield tremendous success for all stakeholders, including our partners, investors, and the thriving economy of the Kingdom across multiple sectors, such as tourism, transportation, hospitality, logistics, and more,” Merak Capital CEO, Abdullah Al-Tamami, said. 

Coral closes $3m seed round for carbon management solutions 

UAE-based climate tech startup Coral has secured $3 million in a seed funding round led by a group of investors. 

Founded in 2022 by Juergen Hoebarth and Daniele Sileri, Coral provides businesses with tools to manage and reduce their carbon emissions, promoting transparency and accessibility in achieving carbon neutrality. 

“We’re thrilled to have completed our seed round and are grateful for the support from our investors who share our vision for a sustainable future,” said Daniele Sileri, director of product and strategy at Coral. 

The funding will be used to expand Coral’s team, scale its platform, and further accelerate its mission to make carbon management simpler and more transparent for businesses worldwide. 

Kwiks raises $827k to enhance AI-driven recruitment solutions 

Morocco-based human resources tech company Kwiks has raised $827,000 in funding from Azur Innovation Management. 

Founded in 2013 by Amine Houssaini and Karim Kaoukabi, Kwiks connects companies with freelance headhunters through its platform, streamlining the hiring process. 

The capital injection will boost Kwiks’ recruitment capabilities, allowing the company to further develop its artificial intelligence-driven hiring solutions and improve its platform’s ability to match companies with top talent. 

Userguest secures $2.4m to strengthen hotel revenue optimization tools 

Morocco-based software solutions provider Userguest has closed a $2.4 million seed round led by Al Mada Ventures, with participation from several notable investors, including CDG Invest, Saviu Ventures, and UM6P Ventures. 

Founded in 2018 by Ahmed Chami, Assil Bernossi, and Hicham Benyebdri, Userguest enables hotels to optimize direct revenue by delivering personalized messages and intelligent incentives to website visitors. 

“This investment underscores our investors’ confidence in our vision to create an automated tool that optimizes conversions and revenue for hotels. Having solidified our market presence and earned the trust of leading hotel brands, we are now ready to elevate Userguest to new heights, enhancing hotel performance while enriching the user experience, benefiting both hoteliers and travelers alike,” said Benyebdri. 

The new funding will primarily be allocated to expanding the company’s sales team, enhancing its market reach, and solidifying its position as a leader in hotel revenue optimization. 

EBRD commits $3m to Ibtikar Fund II to support Palestinian startups 

The European Bank for Reconstruction and Development has invested $3 million in Ibtikar Fund II, which closed with $25 million in total commitments, surpassing its initial target of $15 million. 

The fund aims to invest in up to 25 early-stage Palestinian tech startups, promoting digitalization and job creation across the region. 

The investment reflects increasing support for tech-driven initiatives in Palestine, with a focus on fostering local innovation and growth in the digital economy. 

Amplify Growth Fund launches $100m debt fund targeting MENA region 

UAE-based Amplify Growth Partnership has launched a $100 million debt fund, with its first transaction already closed in a Saudi fintech company. Further details about the investment were not disclosed. 

Amplify Growth Fund I will focus on deploying capital in technology companies across the Middle East, North Africa, and Türkiye, supporting their growth needs. 

With the rise of venture debt in the region — which reached $757 million in 2023, a 262 percent year-on-year increase — this fund aims to meet the increasing demand for debt capital. 

Sharaf Sharaf, head of the fund, said: “The Amplify Growth Fund is poised to meet the region’s growing demand for debt capital in the venture and SME sectors, which are areas that have been historically underserved.” 

It has partnered with Dubai’s Ajeej Capital and Nuwa Capital to manage investments. 

Padash raises $125k in pre-seed funding for q-commerce expansion in Iraq 

Iraq-based quick commerce startup Padash has raised $125,000 in a pre-seed round from an undisclosed angel investor. 

Founded in 2023 by Ahmed Jamal, Omer Sabah, Muhammed Yassein, and Ahmed Bayiz, Padash offers instant food and grocery delivery services in Irbil, Kurdistan. 

The new capital will be used to expand Padash’s operations within the city, and further develop its mobile app, positioning the company to grow its footprint in Iraq’s fast-growing q-commerce sector.


Qatar Airways buys into Virgin Australia, raising the stakes against Qantas

Qatar Airways buys into Virgin Australia, raising the stakes against Qantas
Updated 01 October 2024
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Qatar Airways buys into Virgin Australia, raising the stakes against Qantas

Qatar Airways buys into Virgin Australia, raising the stakes against Qantas
  • Qatar Airways to buy 25 percent stake in Virgin Australia
  • Deal gives Qatar Airways access to Australia markets
  • Makes Qatar Airways a cornerstone investor ahead of anticipated Virgin Australia IPO

SYDNEY: Qatar Airways will buy a 25 percent stake in Virgin Australia from US private equity firm Bain Capital, posing a tougher contest for Qantas Airways that has dominated Australian routes and pushed back against giving access to the Middle Eastern carrier.

The purchase of the minority stake for an undisclosed amount will need to be signed off by Australia’s government, which denied Qatar Airways’ requests last year to fly additional services into Sydney, Melbourne, Brisbane and Perth.

“This partnership brings the missing piece to Virgin Australia’s longer-term strategy,” Virgin Australia CEO Jayne Hrdlicka said in a statement.

“It means that we’ve got an important shareholder who has a scale that we don’t have, who has the expertise that we don’t have, that can help us compete better domestically by giving us access to that scale,” Hrdlicka said later in an interview with ABC television on Tuesday.

Shares in Qantas fell as much as 4.3 percent by 5:39 a.m. Saudi time and were among the worst performers on the benchmark S&P/ASX 200 index.

The stake sale also serves as a cornerstone investment ahead of an anticipated return of Virgin Australia into public ownership, the companies said.

Bain said last year it would explore an IPO of Virgin Australia, which it bought for A$3.5 billion ($2.42 billion) including liabilities after it was placed in voluntary administration in 2020.

Bain was targeting an A$1 billion listing, but the plans were delayed, Reuters reported last year.

Bain declined to comment further on the IPO plans.

Government approval 

As part of the deal with Qatar Airways, Virgin Australia plans to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha with leased aircraft by mid-2025, subject to approval from Australia’s competition regulator.

That would allow Qatar to gain more traffic to its Doha hub, regardless of whether the Australian government approves Qatar Airways’ push for more flying rights.

The denial last year raised questions about the Australian government’s relationship with Qantas, which lobbied against more access for the Qatari carrier. Qantas has a partnership with Dubai-based Emirates, a rival of Qatar Airways.

Qantas did not respond immediately to a request for comment.

Qatar Airways CEO Badr Mohammed Al Meer in Tuesday’s joint statement said his airline believed competition in aviation was “a good thing and it helps raise the bar, ultimately benefiting customers.”

Australia’s Foreign Investment Review Board must approve the sale of the Virgin Australia stake to Qatar Airways, but the treasurer has the power after that to accept or reject the recommendation and impose conditions on the deal.

“It wouldn’t be appropriate for me to pre-empt that process or comment further,” Australian Treasurer Jim Chalmers told reporters after the deal was announced. “More broadly, we do want to see a strong, secure airline industry that delivers for consumers.”

Qatar Airways also owns minority stakes in British Airways owner IAG, Hong Kong’s Cathay Pacific Airways and China Southern Airlines.


Oil Updates – prices little changed as demand worries offset Mideast fears

Oil Updates – prices little changed as demand worries offset Mideast fears
Updated 01 October 2024
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Oil Updates – prices little changed as demand worries offset Mideast fears

Oil Updates – prices little changed as demand worries offset Mideast fears

SINGAPORE: Oil prices were little changed on Tuesday as stronger supply prospects and tepid global demand growth outweighed worries that escalating tensions in the Middle East could impact output from the key exporting region.

Brent crude futures for December delivery edged up 13 cents, or 0.18 percent, to $71.83 a barrel as of 9:15 a.m. Saudi time. US West Texas Intermediate crude futures for November delivery gained 14 cents, or 0.21 percent, to $68.31.

On Monday, Brent futures ended September down 9 percent, the third month of declines and largest monthly drop since November 2022. It slumped 17 percent in the third quarter for its biggest quarterly loss in a year. WTI fell 7 percent last month and dropped 16 percent for the quarter.

“There have been a lot of reservations in place for oil prices, as market participants look toward upcoming supply additions from OPEC+ by the end of this year, alongside a still-soft demand outlook from China reflected in the country’s latest PMI numbers,” said Yeap Jun Rong, market strategist at IG.

“That said, sentiments have been less sensitive to the weaker data, finding room to stabilize on the hopes that recent raft of stimulus may help to jumpstart the economy ahead,” said Yeap.

China’s manufacturing activity shrank sharply in September as new orders at home and abroad cooled, pulling down factory owners’ confidence to near record lows, a private-sector survey showed on Monday.

Analysts say a slew of stimulus measures over the last week are likely to be enough to bring China’s 2024 growth back to about 5 percent after below-forecast data in the past several months cast doubts over that target, but will hardly change the long-term outlook.

Alongside the demand concerns, OPEC+, which groups OPEC members and allies such as Russia, is scheduled to raise output by 180,000 barrels per day in December.

Israel’s widely expected ground invasion of Lebanon appeared to be getting underway early on Tuesday as its military said troops had begun “limited” raids against Hezbollah targets in the border area.

However, supply fears seem relatively contained for now, with market participants still pricing out the risks of a wider regional conflict, said IG’s Yeap.

The attacks follow Israel’s killing on Friday of Hezbollah head Hassan Nasrallah, and represent an escalating conflict in the Middle East between Israel and Iran-backed militants that now threatens to suck in the US and Iran.

In the US, crude oil and fuel stockpiles were expected to have fallen by about 2.1 million barrels in the week to Sept. 27, a preliminary Reuters poll showed on Monday.

The poll was conducted ahead of a report from the American Petroleum Institute industry group due at 11:30 p.m. Saudi time on Tuesday. 


Dubai summit unveils strategic partnerships to drive growth in Mideast’s hospitality sector

Dubai summit unveils strategic partnerships to drive growth in Mideast’s hospitality sector
Updated 30 September 2024
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Dubai summit unveils strategic partnerships to drive growth in Mideast’s hospitality sector

Dubai summit unveils strategic partnerships to drive growth in Mideast’s hospitality sector

DUBAI: The first day of the Future Hospitality Summit in Dubai saw the signing of several agreements, underscoring ongoing growth and innovation within the Middle East’s hospitality sector.

During the event, Saudi Arabia’s Mohammed Abdullah Al Muhanna Hotels Ltd. revealed a collaboration with Marriott International to launch the Four Points by Sheraton Jeddah, with Aleph Hospitality set to manage the property. This new hotel is expected to enhance Jeddah’s evolving hospitality landscape upon its opening in 2025.

In another major development, Accor entered a partnership with Summary Executive Properties to create Swissotel Residences Waterfront, the brand’s first standalone residential project worldwide.

Scheduled for completion in 2027 on Dubai Islands, this luxurious development will feature 105 residences, including apartments and penthouses, all boasting stunning views of the Dubai skyline.

Dmitry Kryuchkov, founder of Summary Executive Properties, commented: “The partnership with Accor Group reflects our shared vision of establishing a luxurious residential community that exemplifies the highest standards of design, luxury living, and tailored services for homeowners.”

The project will be supported by Accor One Living, a platform dedicated to mixed-use developments and community living, further enhancing Accor’s footprint in the region, where it currently manages 282 properties and has an additional 112 in the pipeline.

Skyline University College also announced several agreements aimed at strengthening the region’s hospitality, real estate, and tourism sectors.

A collaboration with HAMA MEA aims to launch initiatives beneficial to both organizations and the broader industry.

A memorandum of understanding was established with the UAE Restaurants Group, representing over 2,000 outlets, to foster growth in hospitality, food and beverage, and community engagement.

With a strong focus on education and skill development, Skyline University College is poised to make significant contributions through these partnerships.

The FHS, taking place from Sept. 30 to Oct. 2, brings together over 1,500 industry leaders and features more than 110 speakers.

Under the theme “Invest in Our Future,” the summit addresses crucial issues shaping the global hospitality landscape, emphasizing innovation, sustainability, technology, and investment opportunities.

This year’s agenda includes over 40 sessions spread across 20 conference tracks on four dedicated stages: Summit, Future, Exhibition, and Innovation. Topics will cover environmental, social, and governance issues, sustainable development, human capital, real estate, technology, branding, and culture.


Saudi Arabia projects $315.73bn revenue for FY2025 amid fiscal reforms

Saudi Arabia projects $315.73bn revenue for FY2025 amid fiscal reforms
Updated 30 September 2024
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Saudi Arabia projects $315.73bn revenue for FY2025 amid fiscal reforms

Saudi Arabia projects $315.73bn revenue for FY2025 amid fiscal reforms

RIYADH: Saudi Arabia’s Ministry of Finance has released its pre-budget statement for fiscal year 2025, projecting total revenues to reach approximately SR1.18 trillion ($315.73 billion), marking a 4 percent decrease from previous forecasts.

These estimates are based on a baseline scenario positioned between low and high and developed to address the challenges and geopolitical risks impacting the global economy.

The ministry emphasized that this strategy allows the government to maintain a flexible fiscal framework.

Preliminary estimates for total expenditures are set at SR1.28 trillion, resulting in a projected budget deficit of SR101 billion, which is 38 percent higher than the previous estimates.

This deficit, equivalent to 2.3 percent of gross domestic product, is considered expected and is anticipated to persist over the medium term due to ongoing expansionary spending policies.

Commenting on the outlook, Finance Minister Mohammed Al-Jaadan said: “The pre-budget statement for the fiscal year 2025 confirms that Saudi Arabia’s government will continue to focus its spending on essential services for citizens and residents, as well as on the execution of strategic projects to enhance economic growth and achieve sustainable development.”

The ministry also released revised estimates for FY 2024, indicating revenues of SR1.24 trillion, a 6 percent increase from previous forecasts.

Expenditures are projected to reach SR1.35 trillion, reflecting an 8 percent rise, resulting in a deficit of SR118 billion primarily due to increased spending.

The FY 2025 budget aligns with Saudi Vision 2030 by advancing fiscal and economic reforms. The government aims to balance its strong fiscal position, financial reserves, and low public debt while improving spending efficiency and prioritization.

Key focuses include accelerating projects that promote sustainable economic growth and adjusting others to stabilize and diversify the economy. The budget prioritizes enhancements in social services, social protection, and regulatory reforms.

Additionally, it emphasizes transformative spending, utilizing sovereign funds, and empowering the private and non-profit sectors. Significant initiatives under Vision 2030 are aimed at developing promising sectors, attracting investment, stimulating local industries, and expanding non-oil exports.

Noteworthy progress has been made in boosting tourism and entertainment, bolstered by the Public Investment Fund and national development funds, which are driving robust and sustainable growth in non-oil sectors and positioning the Kingdom for long-term economic resilience.

To support stability and balance in oil markets, Saudi Arabia and OPEC+ have implemented a reduction in oil supplies, bringing the Kingdom’s average production from the beginning of FY2024 until the end of July to 8.96 million barrels per day.

According to the ministry, OPEC+ countries have established a new production agreement for FY 2025, effective from January to December.

Several member nations, including Saudi Arabia, Russia, and the UAE, have agreed to extend voluntary production cuts. This includes a reduction of 1.65 million bpd, initially announced in April 2023 and now extended until December 2025, as well as an additional cut of 2.2 million bpd extended until November 2024.

The ministry noted that these reduced quantities will be gradually restored on a monthly basis until November 2025, with adjustments made according to market conditions to ensure stability.

The real GDP is expected to grow by 0.8 percent in 2024, supported by a projected growth of approximately 3.7 percent in non-oil activities, according to the official data.

Private consumption increased by 2.4 percent in the first half of 2024, fueled by growth in wholesale and retail trade, as well as restaurants and hotels. The facilitation of visit visa procedures and the expansion of eligible categories have also boosted visitor numbers to entertainment, cultural events, and tourist destinations.

The average consumer price index rose by 1.6 percent from the beginning of 2024 to August, compared to the same period last year. Preliminary forecasts suggest the consumer price index will reach approximately 1.7 percent for the entire year.

The Kingdom has maintained acceptable inflation levels relative to global standards, owing to ongoing improvements in economic conditions and proactive government measures to control rising prices, including price ceilings for gasoline and enhancements in food supply.

Financing plans

Saudi Arabia’s robust fiscal position, characterized by strong financial reserves and manageable public debt, enables the Kingdom to effectively navigate potential economic shocks and secure financing across the short, medium, and long term.

The Ministry of Finance, through the National Debt Management Center, develops an annual borrowing plan aimed at ensuring debt sustainability, diversifying financing sources, and accessing global markets. This strategy aligns with Saudi Vision 2030, promoting growth in the financial sector and deepening the domestic debt market.

The Kingdom is expanding its financing channels through bonds, sukuk, and loans, while also working to enhance its sovereign credit rating.

According to the ministry, controlled debt growth supports expansionary spending necessary to achieve Vision 2030 objectives, ensuring fiscal sustainability and resilience against future challenges.

Fitch Ratings reaffirmed Saudi Arabia’s A+ rating with a stable outlook, while Moody’s maintained its A1 rating with a positive outlook. Additionally, S&P Global Ratings upheld its A rating for the Kingdom, upgrading its outlook from stable to positive.

These ratings reflect the country’s ongoing economic transformation, driven by structural reforms and fiscal policies that prioritize sustainability and efficient financial planning.


Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO
Updated 11 min 17 sec ago
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Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

DUBAI: The Public Investment Fund subsidiary ASFAR is set to launch new tourist attractions by early next year, reinforcing its commitment to economic growth and diversification, according to CEO Fahad bin Mushayt.

In an interview with Arab News during the Future Hospitality Summit in Dubai, Bin Mushayt said that the latest destination will debut in Al-Baha by the beginning of next year.

ASFAR, which has been operational for nearly two years, is collaborating with investors to enhance the Kingdom’s tourism sector by focusing on eight key destinations aligned with the Ministry of Tourism’s strategy.

While ASFAR does not directly develop these projects, it leverages its robust investment strategies and tourism expertise to partner with other companies, creating new opportunities in the sector. Among its projects are locations in Hail, Al-Baha, Yanbu, Al Hasa, Taif, and Al Jouf.

“Since we started, we are now active in five destinations,” the CEO stated.

In Al-Baha, ASFAR is developing two resorts, with a soft opening anticipated in the first quarter of 2025.

He said the company is “building almost 150 keys across two distinct locations, each offering unique experiences.” The top executive said one “caters to parents and couples, while the other targets the youth with an adventure park combined with hospitality.”

Describing Al-Baha as a “beautiful destination atop the mountains, known for its greenery and mild climate averaging around 20 degrees year-round.”

Bin Mushayt also highlighted plans for Taif, located two hours from Al-Baha, focusing on religious tourism due to its proximity to Makkah.

“We’re targeting religious tourism by building a wellness resort, allowing visitors to reaffirm their spiritual needs while enjoying the local scenery and mountains, just 30 to 40 minutes from Makkah,” he elaborated.

In Yanbu, a coastal city on the Red Sea about two hours from Jeddah, additional developments include a lifestyle hotel, beach club, beach resort, and tourism center featuring food and beverage options, retail, a diving academy, and marine activities. “Yanbu is known as one of the best diving areas in the world,” Bin Mushayt noted.

Further projects are also underway in Al Hasa and Hail, scheduled to open in 2025 and 2026.

Tourism is a key component of Saudi Arabia’s Vision 2030, aimed at diversifying the economy beyond oil revenues.

Bin Mushayt highlighted the sector's growth, stating, “Tourism is currently growing at nearly double-digit rates, contributing significantly to the GDP.”

ASFAR’s initiatives also aim to create jobs and stimulate the overall economy, with aspirations of generating around 250,000 jobs in the tourism sector by 2030.

The company is also investing in transportation, casual dining, and the development of destination management and tour operator companies to enhance visitor experiences.

Bin Mushayt emphasized the importance of local content and community involvement in these projects. “We prioritize using local materials and supporting small and medium enterprises within the destinations,” he said.

He further noted that “many family-oriented products and services will also be offered,” driving economic activity and development through tourism.

Expressing enthusiasm for Saudi Arabia’s goal of attracting 150 million annual visitors, he stated that ASFAR aims to welcome at least 5 million visitors to its destinations.