Startup Wrap – Saudi firms flourish with acquisitions and funding rounds 

Startup Wrap – Saudi firms flourish with acquisitions and funding rounds 
Startups across the region secured investments. Shutterstock
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Updated 11 October 2024
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Startup Wrap – Saudi firms flourish with acquisitions and funding rounds 

Startup Wrap – Saudi firms flourish with acquisitions and funding rounds 

RIYADH: Startups across the Middle East continue to attract significant investment, with new funding rounds and strategic acquisitions highlighting the region's growing appeal to investors. 

From Saudi Arabia and the UAE to Oman and Kuwait, emerging companies are securing capital to expand their market reach, develop innovative solutions, and strengthen their positions in competitive industries.  

Saudi property tech startup Ejari has closed a $14.65 million seed round, comprising a mix of debt and equity, to expand its presence in the rent now, pay later market.  

The round was led by Partners for Growth, with participation from BECO Capital, anb seed, and Rua Ventures, as well as Alinma Bank, Vision Ventures, and Aqar platform, a leading property listing platform in Saudi Arabia. Existing investor Salica Oryx Fund also participated in the round.  




The team at Saudi property tech startup Ejari. Supplied

Founded in 2022 by Yazeed Al-Shamsi, Fahad Al-Bedah, Mohammed Al-Khelewy, and Khalid Al-Munif, Ejari provides an RNPL solution tailored to Saudi Arabia’s real estate rental market. 

The new funding aims to strengthen its market share, enhance product offerings, and solidify its position as a key player in the Saudi rental market. 

Al-Shamsi, the company’s CEO, described the cash injection as a “major milestone” in the firm’s journey to transform the Saudi rental market.

“With this new investment, we’re poised to enhance our technology, expand our product offerings, and deliver exceptional value to our clients. Our mission is to democratize access to the rental market and lower barriers for tenants, and this funding brings us closer to that goal. We are deeply grateful for the trust our investors have placed in us and are excited about the future,” he added. 

Yamm closes pre-seed funding to enhance logistics platform 

Saudi-based logistics startup Yamm has completed a pre-seed funding round, with an undisclosed amount raised. 

The round was led by Flat6Labs, with additional participation from Judah Ventures and several angel investors.  

Founded in 2023 by Sultan Al-Subhi, Mohammed Al-Shalati, and Hamadah Al-Khaldi, Yamm aims to simplify the post-purchase experience for both consumers and merchants by providing an end-to-end solution for managing returns, refunds, and logistics.  

The funding will be used to expand its merchant base across Saudi Arabia, introduce new product features, and enhance the platform’s value for retailers. 

Nana acquires Rasseed to boost digital grocery shopping experience 

Saudi Arabia-based digital grocery delivery startup Nana has acquired Rasseed, a software solutions provider specializing in branded and local gift cards, for an undisclosed amount.  

Nana, founded in 2016 by Abdulmajeed Al-Sukhan and Sami Al-Helwah, offers a digital platform for fulfilling daily, weekly, and monthly household grocery needs.  

Rasseed, also founded in 2016 in Saudi Arabia, focuses on simplifying the purchase of gift cards. 

The acquisition aligns with Nana’s strategy to digitize the grocery shopping experience in stores and hypermarkets, as well as its broader expansion plans.  

Nana previously raised $133 million in a series C funding round in February 2023, led by Kingdom Holding and Uni Ventures, along with other investors. 

OCTA secures $2.25m pre-seed round to streamline SME payments 




Nupur Mitta, Jon Santillan, and Andrey Korchak founded OCTA

UAE-based fintech OCTA has closed a $2.25 million pre-seed funding round.  

The round was co-led by Quona Capital and Sadu Capital, with additional backing from Sukna Ventures, Plus VC, 500 Global, and notable angel investors, including Pawel Iwanow, chief payment officer at Fresha, and Dom Monhardt, director of product design at Tap Payments.  

Founded in early 2024 by Jon Santillan, Nupur Mitta, and Andrey Korchak, OCTA automates the process of collecting payments for small and medium-sized enterprises, helping to improve cash flow management and simplify accounts receivable.  

The company has recently expanded its operations into the Saudi market. 

Synnax raises $550k in strategic funding for credit intelligence platform 

Synnax, a digital asset credit intelligence startup, has raised $550,000 in a strategic funding round, bringing its total fundraising to $1.55 million.  

The investment was led by Wintermute Ventures and TON Ventures. The funds will support the continued development of Synnax’s Credit Intelligence platform and its Telegram-based mini-app, SynQuest, which attracted over 250,000 users within two weeks of launch.  

The partnerships with Wintermute Ventures and TON Ventures go beyond funding, aligning with Synnax’s vision of building a decentralized, transparent digital asset credit market. 

Wintermute Ventures, a leader in algorithmic trading and digital asset lending, provides expertise, while TON Ventures leverages its influence in The Open Network ecosystem, which integrates with Telegram’s user base of over 950 million people. 

QPay secures seed funding to drive fintech growth in Oman 

QPay, Oman’s first licensed buy now, pay later financial services provider, has completed a seed funding round led by Cyfr Capital.  

This funding is part of Future Fund Oman’s broader strategy to boost innovation within the country’s fintech sector.  

The investment will help advance QPay’s mission to enhance financial inclusion and promote the growth of BNPL services across the Sultanate, aligning with FFO’s focus on supporting innovative fintech solutions. 

Kuwait’s Krti raises $1.5m to expand payment solutions 

Kuwaiti fintech startup Krti has secured $1.5 million in a pre-seed funding round, led by Core Vision Investment as part of the Financial Academy Financial Technology Investment Programme.  

Founded in 2022 by Abdulrahman Al-Hammadi, Naser Boresli, and Abdullah Al-Baker, Krti offers payment solutions designed to support online merchants and shoppers, aiming to empower the region’s e-commerce sector.  

The newly raised capital will facilitate Krti’s expansion in both Kuwait and Saudi Arabia. 

4Partners secures $3.6m to fuel regional expansion from Dubai HQ

UAE-headquartered dropshipping service 4Partners has raised $3.6 million in a recent funding round from undisclosed investors.

Founded in 2017 in Russia, the company assists businesses in launching and scaling online stores by managing inventory, shipping, and order fulfillment through its network of warehouses across MENA, Europe, Asia, and the US.

After relocating its headquarters to Dubai in 2023, 4Partners plans to use the new capital to support its growth in the region.

The company aims to tap into the MENA e-commerce market, offering a content management system alongside international dropshipping solutions for online retailers.

Rology partners with Thakaa Med to advance AI-driven stroke detection 

Rology, an FDA-cleared artificial intelligence-powered teleradiology platform, has entered a strategic partnership with Riyadh-based Thakaa Med, an AI-driven health care technology firm, to develop “StrokeIQ,” a new solution designed to improve the speed and accuracy of stroke detection in neuroimaging.  

StrokeIQ will utilize AI to analyze CT brain scans and identify signs of stroke, enabling health care providers to make more rapid, informed decisions during critical situations.  

The collaboration aims to leverage advanced AI technology to address the challenges in stroke diagnostics, where timely intervention is crucial. 


Saudi Aramco slashes December oil prices for Asian buyers

Saudi Aramco slashes December oil prices for Asian buyers
Updated 24 sec ago
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Saudi Aramco slashes December oil prices for Asian buyers

Saudi Aramco slashes December oil prices for Asian buyers

RIYADH: Saudi Aramco has reduced its December pricing for Arab Light crude oil for Asian buyers, according to the latest price list released by the state-owned oil giant. The official selling price (OSP) for Arab Light crude was cut by 50 cents, bringing it to $1.70 per barrel above the regional benchmark.

Similarly, the OSPs for Arab Extra Light and Super Light grades were also reduced by 50 cents per barrel for December, while the OSPs for Arab Medium and Heavy grades saw smaller cuts of 40 cents per barrel.

For North America, Aramco set the December OSP for its flagship Arab Light crude at $3.80 per barrel above the Argus Sour Crude Index. The price differential for Arab Light crude in Western Europe was set at $0.15 above the ICE Brent benchmark, according to an official statement.

Aramco produces five grades of crude oil: Super Light, Arab Light, Arab Extra Light, Arab Medium, and Arab Heavy.

These grades are distinguished by their density: Super Light has a density of more than 40, Arab Extra Light ranges between 36 and 40, Arab Light between 32 and 36, Arab Medium between 29 and 32, and Arab Heavy has a density of less than 29.

The global oil market has been under pressure in recent days, with crude oil prices falling 2.5 percent on Wednesday, ending a five-day winning streak.

This decline was largely attributed to a stronger US dollar, as early reports suggested that Donald Trump is edging closer to securing a second term in the White House. A stronger dollar tends to exert downward pressure on oil and other commodities, making them more expensive for buyers using other currencies.

As a result, Brent crude oil futures dropped to $73.64 per barrel, marking a 2.5 percent decrease from the previous close of $75.53. Similarly, West Texas Intermediate crude futures fell to around $70.22 per barrel, down 2.45 percent from the prior close of $71.99.

Crude oil prices have been subject to significant fluctuations recently, influenced by several key factors. These include OPEC+’s decision to delay its December production plans for the second time, rising tensions in the Middle East, expectations surrounding the upcoming US Federal Reserve policy meeting, and early signs of economic improvement in China, the world’s largest crude importer.


Saudi Tadawul Group eyes M&As to strengthen capital markets: Bloomberg

Saudi Tadawul Group eyes M&As to strengthen capital markets: Bloomberg
Updated 49 min 19 sec ago
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Saudi Tadawul Group eyes M&As to strengthen capital markets: Bloomberg

Saudi Tadawul Group eyes M&As to strengthen capital markets: Bloomberg

RIYADH: Saudi stock exchange operator Tadawul Group is ramping up plans for mergers and acquisitions to expand the Kingdom’s capital markets amidst a wave of local listings, a senior executive said.

In an interview with Bloomberg in London, Chief Strategy Officer at Saudi Tadawul Group Lee Hodgkinson highlighted that the firm is targeting “digestible” and “strategically relevant acquisitions,” though he did not elaborate on specific targets.

“Mergers and acquisitions will be more integral to our future strategy than in the past,” Hodgkinson said.

The Saudi bourse has seen an influx of companies listing in recent years. This aligns with the Kingdom’s Vision 2030 initiative led by Crown Prince Mohammed bin Salman, which aims to deepen capital markets and reduce reliance on oil.

This year alone, stock sales on Tadawul have raised $15.6 billion, including a significant offering from energy giant Saudi Aramco, Bloomberg reported.

While Hodgkinson did not dismiss potential acquisitions of other stock exchanges down the line, he emphasized that Tadawul’s immediate focus is on diversifying its revenue streams.

Earlier this year, the firm acquired a stake in the Dubai Mercantile Exchange’s parent company for $28.5 million, marking a strategic move into the commodities market.

Looking ahead, Tadawul is exploring various post-trade services, including stock lending and collateral management, alongside developing data services like market indices.

According to Hodgkinson, the team will “exercise a great deal of discipline” on value and possible synergies while evaluating purchase possibilities. He added that M&A activity is intended to support the group’s organic growth strategy.

In August, Bloomberg reported that the Saudi Tadawul Group is intensifying its focus on attracting Asian investors to boost liquidity and trading activity in the region’s largest market.

This push comes as foreign ownership in Saudi capital markets has grown significantly, reaching SR401 billion by the end of 2023, a record high.

Net foreign investments rose by 7.7 percent from the previous year to SR198 billion ($52.77 billion), highlighting the success of the Qualified Foreign Investor program, first introduced in 2015 to open up the Saudi market to global backers.

According to Bloomberg, the Tadawul Group has identified Asia as a key area of focus, aiming to strengthen ties with major Asian markets to diversify the Kingdom’s investment sources.

In the interview, Hodgkinson highlighted that the group sees immense investment potential from markets like China and India.

Tadawul also plans to expand beyond equities into debt markets, commodities, and advanced post-trading services to position itself as a competitive international market player.

Increased mergers, acquisitions, and partnerships are anticipated as the company pursues these goals.


Biban 24 sees deals worth over $4.79bn on opening day

Biban 24 sees deals worth over $4.79bn on opening day
Updated 06 November 2024
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Biban 24 sees deals worth over $4.79bn on opening day

Biban 24 sees deals worth over $4.79bn on opening day

RIYADH: On the first day of Biban 24, a total of 17 agreements and memoranda of understanding were signed, alongside the launch of financial initiatives valued at more than SR18 billion ($4.79 billion).

These deals and financing portfolios were finalized during the Riyadh event, organized by the General Authority for Small and Medium Enterprises under the theme “A Global Destination for Opportunities.”

The forum aims to empower small and medium enterprises and entrepreneurs by enhancing their access to financial support, ultimately fostering growth in this vital sector of the national economy, as reported by the Saudi Press Agency.

Monsha’at secured cooperation agreements with several leading local financial institutions, including Riyad Bank, which committed to a financing portfolio worth SR3 billion; Al-Rajhi Bank, with SR2.9 billion; and Bank Albilad, offering SR2.85 billion. Additional agreements were signed with Bank AlJazira (SR1 billion), Alinma Bank (SR800 million), Banque Saudi Fransi (SR700 million), and Abdul Latif Jameel Co. (SR25 million).

These efforts align with Monsha’at’s ongoing mission to strengthen the growth and competitiveness of SMEs by partnering with key players from various sectors, both locally and internationally.

The overarching goal is to create a conducive environment for growth and build a leading society.

As of 2023, SMEs in Saudi Arabia accounted for 28.7 percent of the country’s total gross domestic product, reflecting an 8.7 percent increase from previous figures, though still falling short of the Vision 2030 target of 35 percent, according to data from Statista.

In the realm of financing and expanding support for projects, several other announcements were made on the first day. The Saudi National Bank unveiled a financing portfolio of SR3 billion, while Saudi Awwal Bank reported SR1 billion. The Arab National Bank also announced a SR1.1 billion financing portfolio, along with the launch of an e-commerce financing product worth SR500 million.

Additionally, the Small and Medium Enterprises Bank revealed that it would allocate SR1 billion to finance SMEs in the fourth quarter of 2024. This funding will be distributed through approved financing models in collaboration with various partner institutions. The bank also introduced a dedicated financing program for SMEs in the education sector, developed in partnership with the Ministry of Education and commercial banks.


Up to 77% of Swedish firms in Saudi plan to boost investment over the next year, official says

Up to 77% of Swedish firms in Saudi plan to boost investment over the next year, official says
Updated 06 November 2024
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Up to 77% of Swedish firms in Saudi plan to boost investment over the next year, official says

Up to 77% of Swedish firms in Saudi plan to boost investment over the next year, official says

RIYADH: Up to 77 percent of Swedish companies operating in Saudi Arabia plan to increase their investment over the next year, according to a top official from the European country.

In an interview with Arab News, Director General of Trade Policy at the Swedish Ministry of Foreign Affairs Camilla Mellander cited a recent study by Business Sweden as she explained the confidence companies from her country have in the Saudi market.

Saudi Arabia is Sweden’s largest trading partner in the Middle East and North Africa region, with a 72 percent rise in commerce since 2018.

Mellander was present in the Kingdom to attend the third meeting of the Saudi-Swedish Joint Committee in her role as a co-chair – an event that came just days after her country’s Minister for Foreign Trade, Benjamin Dousa, met with his Saudi counterpart Minister of Commerce Majid Al-Qasabi at the Future Investment Initiative in Riyadh.

Mellander told Arab News that there are around 60 Swedish companies currently active in Saudi Arabia, and it is 77 percent of these that plan to up their investments in the Kingdom.

“Interestingly, 100 percent of the small or medium sized companies surveyed reported wanting to increase their investment. This really speaks to the confidence of Swedish companies in the Saudi market and the potential they see,” she added.

The director general went on to say that Swedish companies seek to establish long-term partnerships and investments in a demonstration they are reliable partners.

“Some Swedish companies have been active in Saudi Arabia since as early as the 1950s. Around 40 percent of Swedish companies currently working in Saudi Arabia have established or are looking to establish their regional office in the country,” Mellander said.

“The reforms that Saudi Arabia has undertaken as part of Vision 2030 have great potential not only to attract companies but also more foreign direct investments. Today, the EU is the largest source of foreign direct investment in Saudi Arabia – 66 percent in 2022. This also shows the strong confidence of European investors in the Saudi Arabian market and business climate,” she added.

Talking about how the two countries can facilitate SMEs participation in bilateral trade and investment, the director general said: “I am very excited to participate in the BIBAN Forum ... and to personally take stock of the possibilities for cooperation within the field of SMEs.”

She added: “One area with great potential is the collaboration between Swedish incubators and their counterparts here in the Kingdom. Both Sweden and Saudi Arabia share the priority to support our young entrepreneurs. We need to coach them so that they can shepherd their innovations from ideas to commercial success.” 

Mellander with the Deputy Governor for International Relations at the Saudi General Authority of Foreign Trade Abdulaziz bin Omar Al-Sakran. SPA

Closer working

Reflecting on areas of growth between the two countries, the director general cited transportation, industrial equipment, health, and technology as key sectors.

Mellander said the meeting of the Saudi-Swedish Joint Committee was an opportunity for the two countries to identify new areas of mutual interest to deepen relations in areas where there are already existing ties.

When it comes to cultural exchange programs and initiatives that contribute to strengthening economic ties between Sweden and Saudi Arabia, Mellander said that scholarships for Swedish students that wish to study in the Kingdom were one of the discussion items during the Joint Committee.

“We are also looking into the possibility for internships at Swedish companies for Saudi students. This adds to the already existing programs, such as for specialist training of doctors provided at some of our university hospitals. I hope that the new initiatives will help to strengthen the economic and people-to-people ties between Sweden and Saudi Arabia,” Mellander said.

With regards to promising investment opportunities for Swedish companies in Saudi Arabia and vice versa, the director general said that firms from her country are well positioned to contribute to sectors of importance to the realization of Vision 2030 and the giga-projects.

“Nearly half of Swedish businesses in Saudi Arabia are currently engaged in at least one giga-project or other core parts of Vision implementation,” Mellander said, flagging up the involvement of firms such as Ericsson, Sandvik and Volvo Trucks.

Swedish ‘optimism’ 

Mellander stressed that according to the latest global business climate report made by Business Sweden, the Kingdom stands out as one of the markets with the most favorable business climate for firms from her country.

“Swedish companies report a very high optimism when it comes to the Saudi market.  The regulatory changes under Vision 2030 have been very positive. As part of our Swedish-Saudi partnership this must also be communicated to Swedish companies which have a lot to offer to Saudi Arabia. Here, formats like the Joint Committee can be very valuable,” she said.

“At the same time, Swedish companies report that one regulatory hurdle for them in Saudi Arabia is the rapid pace of regulatory changes – it is simply difficult to keep up with new legislation. Another challenge is the access to skilled labor,” the director general added.

When it comes to the areas of digital cooperation between the two sides, Mellander noted that Saudi Arabia is well known among Swedish companies for its high speed and connectivity rate.

“One obvious key area for digital cooperation is the continued development of the infrastructure, the backbone of digital communication. Swedish companies are not only at the forefront of 5G technology and the development of 6G, they can also offer new and innovative applications to increase productivity and efficiency. In addition, they invest in R&D here – for instance, Ericsson is cooperating with KAUST (King Abdullah University of Science and Technology) on 6G development,” she said.

During her time in Saudi Arabia, Mellander visited renal care provider Diaverum to learn more about the Kingdom’s healthcare system and possible avenues for collaboration with Swedish firms.

“A large group among them recently took part in the Global Health Exhibition (in Riyadh), including the newly formed healthcare consortium, and I know they had many productive meetings that are now being followed up,” she added.

With regards to financial cooperation, the director general underlined that Sweden has a very strong export credit system with internationally competitive interest rates and flexible conditions.

“They are already working with banks, Saudi and Swedish actors, to support major investments in the Kingdom, and the interest for their solutions is growing rapidly. Therefore, the Swedish Export Credit Agency, EKN, signed a memorandum of understanding for collaboration with Saudi EXIM this year. Next week, the board of the Swedish Export Credit Corporation, SEK, will be visiting Riyadh to learn more,” Mellander said.

Saudi-Swedish Joint Committee

The Saudi-Swedish Joint Committee held its third session in Riyadh from Nov. 4-5. SPA

During the two-day long Saudi-Swedish Joint Committee meeting, delegates agreed to implement 45 initiatives to address challenges and obstacles to bilateral trade in areas including investment, energy and technology, as well as industry, education and health.

Tourism and sports were also discussed, accord to the Saudi Press Agency.

Deputy Governor for International Relations at the Saudi General Authority of Foreign Trade Abdulaziz bin Omar Al-Sakran noted the importance of overcoming obstacles that may hinder the flow of investment and trade between the Kingdom and Sweden.

In 2023, the trade volume between Saudi Arabia and Sweden reached approximately $1.7 billion.

The main exports from the Kingdom included plastics and their products, machinery, and mechanical appliances and parts, while key Swedish imports consisted of iron and steel products as well as pharmaceuticals.


UAE debt capital markets grow 13% in Q3 to reach $294.4bn

UAE debt capital markets grow 13% in Q3 to reach $294.4bn
Updated 46 min 26 sec ago
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UAE debt capital markets grow 13% in Q3 to reach $294.4bn

UAE debt capital markets grow 13% in Q3 to reach $294.4bn

RIYADH: The UAE’s debt capital markets experienced a 13.1 percent year-on-year growth in the third quarter of 2024, reaching a total of $294.4 billion, according to the managing director at Fitch Ratings.

Bashar Al-Natoor, the firm’s global head of Islamic finance, emphasized the UAE’s growing financial landscape and its significant role in the international sukuk market. By the end of third quarter, sukuk accounted for 20 percent of the UAE’s debt capital market, with the remaining portion in bonds.

“The UAE is a pivotal player in the global sukuk market, holding a 6.6 percent share of the global outstanding sukuk,” Al-Natoor noted in an interview with the Emirates News Agency.

This positions the UAE as the fourth-largest sukuk issuer worldwide, behind Malaysia, Saudi Arabia, and Indonesia. Additionally, the UAE has become a major US dollar debt issuer in emerging markets, excluding China, with an 8.9 percent share in the first half of 2024, trailing only Saudi Arabia and Brazil.

The UAE also ranked as the second-largest issuer of environmental, social, and governance bonds and sukuk in emerging markets outside China during the first nine months of the year, second only to Brazil.

Despite the overall market growth, Al-Natoor acknowledged a decline in issuance levels. Sukuk issuance in the UAE totaled $9.9 billion in the first nine months of 2024, reflecting a 13 percent year-on-year decrease. However, this drop was relatively modest compared to the 25 percent decline in bond issuance during the same period.

Al-Natoor highlighted that the government’s recent extension of fee exemptions for ESG bond and sukuk listings could further support sustainable finance initiatives in the country. 

Fitch Ratings currently assesses $26.7 billion of UAE sukuk, with 92.5 percent of these instruments rated as investment grade, Al-Natoor disclosed.  

This rating distribution indicates a low to moderate credit risk for most UAE sukuk, with financial institutions dominating at a 51 percent share, followed by corporate issuers at 21 percent.  

“Investment-grade is usually an indication that the majority of these instruments have relatively low to moderate credit risk,” he explained. 

Al-Natoor also emphasized the role of Islamic banks within the UAE’s financial ecosystem, with Islamic financing accounting for 29 percent of the total sector financing as of mid-year.  

Islamic financing grew by 5.7 percent in the first half of the year, slightly outpacing the 5.4 percent growth seen in conventional banking. Fitch anticipates that Islamic banks will continue to expand faster than their conventional counterparts in the medium term. 

Further illustrating the influence of Islamic finance, Islamic bank investments in Islamic certificates of deposit reached 44 billion dirhams ($11.9 million) by the end of the first half of the year, Al-Natoor said, citing data from the Central Bank of the UAE.  

“Islamic banks invest in Islamic CDs as opposed to M-Bills, as Islamic M-Bills have not yet been introduced,” Al-Natoor explained, adding that while Islamic CDs are based on commodity murabaha, they cannot be traded. 

Looking ahead, Al-Natoor projects continued expansion in the UAE’s debt capital markets, potentially surpassing $300 billion by the end of the year.  

“The UAE’s debt capital markets are experiencing robust growth, driven by a balanced mix of sukuk and bond issuances, high investment-grade ratings, and strategic market positioning in the sukuk market both globally and regionally,” he said.