Startup Wrap – International venture capital interest in MENA rises despite global challenges

Startup Wrap – International venture capital interest in MENA rises despite global challenges
Saudi Arabia-based EdfaPay has secured $5 million to scale tap-to-pay solution. (Supplied)
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Updated 24 November 2024
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Startup Wrap – International venture capital interest in MENA rises despite global challenges

Startup Wrap – International venture capital interest in MENA rises despite global challenges

RIYADH: International venture capital investors have increased their presence in the Middle East and North Africa region despite a challenging global economic climate, according to a new report by MAGNiTT.

The study highlights significant growth in global participation, with their share of MENA-based startup investments rising from 28 percent in 2020 to 51 percent in 2024.

The global economic climate in recent years has been marked by persistent challenges, including rising inflation, geopolitical tensions, supply chain disruptions, and tightening monetary policies by central banks.

These factors have created a volatile environment for investors, prompting cautious capital deployment and heightened scrutiny of high-risk markets.

In particular, the venture capital landscape has faced headwinds due to declining valuations, slower funding cycles, and a shift toward profitability over rapid growth.

Despite these challenges, regions like MENA, Southeast Asia, and Africa have demonstrated resilience, attracting both local and international capital due to their untapped potential and strategic efforts to foster innovation.

This 23-percentage-point increase underscores MENA’s growing appeal as a destination for venture capital.

The ecosystem continues to be shaped by strong regional investor engagement, driven largely by sovereign wealth fund mandates such as Saudi Arabia’s Saudi Venture Capital Co.

Local investors accounted for 49 percent of the 1,361 unique investors in the region’s startups, with 62 percent of all disclosed capital invested in MENA coming from within the region, MAGNiTT revealed.

However, international interest has surged, with the first nine months of this year marking a 60 percent increase in global investors compared to the previous year.

Philip Bahoshy, CEO of MAGNiTT, attributed the region’s growth to the role of regional Limited Partner programs and high-profile events that spotlight opportunities in emerging markets.

“If you recently attended events like FII in Riyadh, GITEX in Dubai, or Web Summit in Qatar, you would have seen firsthand the growing presence of international investors interested in Emerging Markets. Many of these investors are exploring opportunities but are yet to make substantial commitments,” Bahoshy said.

The UAE has been a standout in the region’s venture growth, with international investor participation climbing from 25 percent in 2020 to 62 percent in 2024, positioning the market as a global hub akin to Singapore.

Saudi Arabia has also seen notable progress, with international investor participation rising from 18 percent in 2020 to 25 percent in 2024, reflecting the Kingdom’s increasing focus on venture capital.

Events such as LEAP and the Future Investment Initiative have played a key role in attracting global attention to Saudi Arabia’s burgeoning venture ecosystem.

In Africa, international development finance institutions have helped foster a growing local investment base.

African investors’ share of total capital deployment increased from 15 percent in 2021 to 35 percent in 2024. This upward trend reflects efforts to strengthen regional ecosystems while still leveraging international expertise.

Internationally, US-based firms such as 500 Global and Y Combinator emerged as the most active of these investors across MENA, Africa, and Southeast Asia between 2020 and 2024.

The influence of American venture capital remains dominant, with US investors topping deal counts in all three regions. However, Southeast Asia attracted the largest capital deployment, with $11.65 billion invested by top international players, compared to $1.177 billion in Africa and $947 million in MENA.

Saudi Arabia-based EdfaPay secures $5m to scale tap-to-pay solution

Fintech startup EdfaPay has closed a $5 million pre-Series A funding round led by OmanTel Innovation Labs, with participation from Aljabr MENA and Waad Investment.

Founded in 2022 by Ghormallah Al-Ghamdi and Nedal Sabbah, EdfaPay offers a tap-to-pay solution that allows small and medium-sized enterprises to use smartphones as point-of-sale devices.

The funding will be used to strengthen the company’s market position in Saudi Arabia and expand its footprint across the MENA region and Pakistan.

The startup previously raised $1.6 million in a pre-seed round in early 2022 and has since entered several new markets, including Tunisia and Morocco.

Social networking app Bubbl raises $350k pre-seed

Saudi social networking platform Bubbl has raised $350,000 in a pre-seed funding round led by angel investor Abdullah Al-Dosari.

Launched in 2024 by Aya Al-Hammoud, the app has already attracted 60,000 daily active users.

The funds will support Bubbl’s plans to scale its user base, with a goal of reaching 1 million daily active users in the near future.




The Public Investment Fund’s Jada Funds of Funds has announced a commitment to invest in SEEDRA Ventures Fund II. (Supplied)

PIF’s Jada commits investment in SEEDRA Ventures Fund II

The Public Investment Fund’s Jada Funds of Funds has announced a commitment to invest in SEEDRA Ventures Fund II, a newly launched venture capital fund managed by SEEDRA Ventures.

The fund aims to invest in early-stage startups with a sector agnostic approach, which coincides with Jada’s strategy.

Bandr Al-Homaly, managing director and CEO of Jada, said: “Our commitment to SEEDRA Ventures Fund II underscores our focus on enabling early-stage businesses that contribute to the Kingdom’s economic transformation in alignment with Vision 2030.”

EFG Hermes launches $300m Saudi education fund

EFG Hermes’s private equity arm has unveiled a $300-million Saudi Education Fund to develop a world-class K-12 operator in Saudi Arabia.

The fund seeks to capitalize on the growing demand for private education, fueled by an expanding student population.

SEF will also acquire a portfolio of international schools in Saudi Arabia, the UAE, and Bahrain, currently managed by GFH under the Britus Education brand.

Amenli secures $2.3m to expand insurtech offerings

Egypt-based insurance tech company Amenli has closed a $2.3 million funding round led by the European Bank for Reconstruction and Development’s Venture Capital arm, with additional participation from Y Combinator.

Founded in 2020 by Adham Nauman, Omar Ezz El-Din, and Shady El-Tohfa, Amenli provides accessible insurance solutions tailored for individuals, families, and SMEs.

The funding will support technology upgrades, product innovation, and market expansion.

Qara raises $2.6m to advance supply chain traceability

Supply chain startup Qara, based in Egypt, has raised $2.6 million from undisclosed investors to fuel its expansion.

Founded in 2021 by Hassan Abouzeed and Khaled Hassan, Qara provides a digital platform enabling product authentication and full traceability for producers.

The company, already active in Egypt, Saudi Arabia, and Kenya, plans to use the funding to expand further into Saudi Arabia under the National Technology Development Programme’s Relocate Initiative.

Logistics startup Locad secures $9m for global growth

Singapore-based logistics platform Locad has raised $9 million in a pre-series B funding round co-led by Global Ventures and Reefknot Investments.

Other participants included Sumitomo Equity Ventures and existing investors such as Antler Elevate and Febe Ventures.

Founded in 2020 by Constantin Robertz, Jannis Dargel, and Shrey Jain, Locad provides a cloud-based logistics engine that helps e-commerce businesses optimize their supply chains.

The funds will support Locad’s international expansion, with a focus on launching in the UAE and Saudi Arabia by the end of 2024.




Egypt-based furniture and home decor e-commerce platform ariika has raised $3 million in a series A extension round. (Supplied)

Furniture e-commerce platform ariika secures $3m to expand

Egypt-based furniture and home decor e-commerce platform ariika has raised $3 million in a series A extension round led by Beltone Venture Capital and Citadel International Holdings.

Founded in 2016 by Khaled Attallah and Shahir Arslan, ariika collaborates with artisans worldwide to design and curate modern home décor products.

Having recently launched in Iraq, ariika plans to enter the Saudi market by January 2025. This follows a previous series A round in which Beltone acquired a 20 percent equity stake.


Saudi Arabia unveils Riyadh Action Agenda to address land restoration, drought 

Saudi Arabia unveils Riyadh Action Agenda to address land restoration, drought 
Updated 9 sec ago
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Saudi Arabia unveils Riyadh Action Agenda to address land restoration, drought 

Saudi Arabia unveils Riyadh Action Agenda to address land restoration, drought 
  • Initiative launched during Agri-Food System Day at COP16 in Riyadh 

RIYADH: Saudi Arabia has introduced the Riyadh Action Agenda, an initiative to unite stakeholders in tackling land degradation, desertification, and drought. 

The announcement was made by Osama Faqeeha, deputy minister for environment at the Ministry of Environment, Water and Agriculture, and advisor to the UNCCD COP16 presidency, during a keynote address at a high-level dialogue on sustainable agri-food systems. 

The agenda will leverage COP16’s momentum over the two-year presidency, engaging diverse stakeholders to drive tangible impact for farmers, indigenous peoples, and other affected groups. 

Speaking during a keynote address, Faqeeha said: “If we are to accelerate land restoration and drought resilience initiatives at the pace and scale required, then it is critical we continue to mobilize and incentivize action long after COP16 in Riyadh ends, reaffirming Saudi Arabia’s leadership in land restoration, and leaving a lasting legacy of global change.”  

The launch took place on Agri-Food System Day, one of seven thematic days at COP16. Agriculture, a leading driver of land degradation, accounts for 23 percent of global greenhouse gas emissions, 80 percent of deforestation, and 70 percent of freshwater use, according to the UNCCD. 

Agri-Food System Day featured discussions on sustainable agricultural practices, with topics including soil health, resilient crops, and private sector involvement in transforming food systems. The day coincided with World Soil Day, which highlights the importance of sustainable soil management. 

“Around 95 percent of our food comes from the soil, and yet we continue to treat it like dirt,” Faqeeha said. “Unsustainable practices are causing significant soil loss annually, worsening global food and water security, and affecting farmers and consumers alike.” 

The UNCCD estimates that by 2050, global crop yields could decline by 10 percent, with worst-hit regions facing a 50 percent drop. Food prices could rise by 30 percent due to shrinking arable land and rising population demands. 

“We do not need to reinvent the wheel to deliver urgent solutions,” Faqeeha added. “Reinvesting harmful agricultural subsidies could immediately support land restoration and reform unsustainable practices.” 

The UNCCD COP16 conference, themed Our Land. Our Future., is being held from Dec. 2-13, 2024, at Boulevard Riyadh World. The event marks the UNCCD’s 30th anniversary and aims to address issues like drought resilience and land tenure. 


Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time
Updated 05 December 2024
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Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

RIYADH: Saudi Arabia has surpassed its Vision 2030 target of 1 million volunteers six years ahead of schedule, according to the CEO of the National Center for Non-Profit Sector.

Speaking to Arab News on the sidelines on the fourth day of COP16, Ahmed Al-Suwailem explained that the Kingdom’s volunteering journey achieved the target just prior to the end of 2024.

This falls in line with promoting the concept of volunteering and community participation in Saudi Arabia.

“Today, we are celebrating the biggest achievement that we did in terms of volunteering. Of course, I will start with my thanks and gratitude to his majesty, the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and also his Crown Prince, the Prime Minister, Prince Mohammed bin Salman bin Abdulaziz, for their unbelievable effort and support, for us, and they enabled us to achieve, this amazing target of 1 million volunteers, 1 million per annum,” Al-Suwailem said.

He added: “Absolutely, we have achieved the target earlier than we were supposed to achieve it, or 2030. We achieved it just before the end of 2024. We have achieved 1 million, as I said, per annum. We were supposed to achieve it in 2030.”

He added: “We are going for a further target and we are now reviewing the target again, and we’ll see what we will achieve in 2030.”

With regards to achieving the target, Al-Suwailem said: “We couldn’t achieve that unless we have this amazing, unbelievable, continuous support from our leadership and also with an enablement from our people,” he said.

He added that the public’s volunteer support is evident in their efforts, thoughts, and shared experiences.

“We are trying our best to send our message as the people of Saudi Arabia, that we are global citizens, that we can also do our volunteering internally and internationally,” he added.

The CEO also highlighted how this achievement will support the Kingdom’s Vision 2030, underlining that volunteering will play a key role in helping the company meet the objectives of the Saudi Green Initiative. The undertaking aims to diversify the economy, reduce oil dependency, and promote sustainable development.

He added: “So, this is where we complete each other as governmental entities and also private sector and the nonprofit sector.”

The CEO concluded by saying: “And of course, last but not least, people are the key element for achieving all these targets.”

The Kingdom’s hosting of COP16 reflects its commitment to protecting the planet. In the largest multilateral conference it has ever hosted, Saudi Arabia is mobilizing the world to deliver international cooperation, change, and action that our land so desperately needs.


OPEC+ extends production cuts by three months through March

OPEC+ extends production cuts by three months through March
Updated 05 December 2024
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OPEC+ extends production cuts by three months through March

OPEC+ extends production cuts by three months through March

RIYADH: OPEC+ on Thursday agreed to extend their supply cuts for three months through March to to support market stability.

OPEC+ countries, including Saudi Arabia and Russia, “will extend their additional voluntary adjustments of 2.2 million barrels per day... until the end of March 2025,” the alliance said in a statement.

A virtual meeting was held on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting.

According to the statement, the meeting welcomed the pledges made by the overproducing countries to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since January 2024 before the end of December 2024.

The alliance members will extend their additional voluntary adjustments of 2.2 million bpd, that were announced in November 2023, until the end of March 2025 and then the 2.2 million barrels per day adjustments will be gradually phased out on a monthly basis until the end of September 2026. This monthly increase can be paused or reversed subject to market conditions.

OPEC+ members are holding back 5.86 million bpd of output, or about 5.7 percent of global demand, in a series of steps agreed since 2022 to support the market.

The alliance also agreed to allow the UAE to raise output by 300,000 bpd gradually from April until the end of September 2026, instead of the earlier plan to start it in January 2025.

Despite the group’s supply cuts, global oil benchmark Brent crude has mostly stayed in a $70 to $80 per barrel range this year and on Thursday traded near $72 a barrel, having hit a 2024 low below $69 in September.


NEOM’s Topian launches pilot greenhouse for climate-resilient farming

NEOM’s Topian launches pilot greenhouse for climate-resilient farming
Updated 05 December 2024
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NEOM’s Topian launches pilot greenhouse for climate-resilient farming

NEOM’s Topian launches pilot greenhouse for climate-resilient farming

RIYADH: NEOM’s food company, Topian, has unveiled its first high-tech greenhouse in Oxagon, the industrial hub along Saudi Arabia’s Red Sea coast. 

The four-hectare facility, located in Oxagon Innovation Bay, is designed to pilot sustainable and localized food production using advanced agricultural technologies, according to a press releasae.

The greenhouse is expected to produce nearly 4,000 tonnes of fruits and vegetables annually while developing AI-driven predictive models to optimize operations in similar environments. 

This initiative is part of Topian’s broader mission to enhance food systems with sustainable practices that minimize resource use. It aligns with Saudi Arabia's ambitions to enhance food security, combat climate change, and achieve net-zero emissions by 2060, all in support of Vision 2030 goals.

“This project is exciting because this first set of high-tech greenhouses enables us to control the climate for plant growth in an environmentally friendly manner,” said Juan Carlos Motamayor, CEO of Topian. 

“It represents a positive step towards boosting regional and national food security and transforming food systems in Saudi Arabia and other arid regions affected by climate change,” he added.

The pilot will evaluate crop performance under various conditions, focusing on energy and water efficiency, cooling technologies, and radiation control. The project will leverage NEOM’s future renewable energy infrastructure to further optimize production, the release added.

Future plans include leveraging NEOM’s renewable energy infrastructure, such as its photovoltaic network, to further optimize operations.

Vishal Wanchoo, CEO of Oxagon, said: “This pilot aims to deliver, at scale, sustainably produced ingredients that NEOM residents and hospitality partners will be able to use – demonstrating an entirely localized ‘farm-to-table’ supply chain.” 

The greenhouse will provide year-round availability of locally grown produce such as lettuce, tomatoes, and strawberries, prioritizing quality and sustainability. Scientists will analyze taste, color, and texture to refine crop production for the consumer market.

Developed in collaboration with Van der Hoeven, a Dutch horticultural technology firm, the project serves as a testbed for innovative agricultural solutions. It aligns with NEOM’s broader goals to establish sustainable industries and tackle food security challenges in arid regions.

By showcasing the potential of clean technology and innovative farming practices, Topian’s greenhouse project underscores NEOM’s commitment to pioneering solutions that address global challenges and set a benchmark for future sustainable development.


Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital
Updated 05 December 2024
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Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

DUBAI: Saudi Arabia has launched its first Japanese equity mutual fund, marking a significant step in a new partnership between Albilad Capital, the Kingdom’s largest exchange-traded fund manager, and Japan’s SBI Holdings, a leading financial group.

In a statement released on Thursday, SBI Holdings announced that the collaboration would provide Saudi investors with access to Japanese equities for the first time. At the same time, Japanese investors will be able to explore Saudi Arabia’s innovative financial offerings, including Shariah-compliant ETFs.

This partnership builds on a milestone achievement earlier this year, when SBI Asset Management— a subsidiary of SBI Global Asset Management— launched Japan’s first Saudi stock index-linked ETF, the SBI Saudi Arabia Equity Exchange Traded Fund, on the Tokyo Stock Exchange.

This new agreement further solidifies the investment ties between Saudi Arabia and Japan, contributing to the Kingdom’s Vision 2030, which focuses on attracting foreign investment, diversifying the economy, and expanding key sectors such as tourism, entertainment, and non-oil industries.

Recent developments supporting this vision include the creation of one of the world’s largest theme parks based on popular Japanese intellectual properties like Dragon Ball, as well as significant investments in major Japanese gaming companies.

Albilad Capital, the investment arm of Bank Albilad, is a key player in Saudi Arabia’s financial market and manages a significant portion of the country’s ETFs.

Meanwhile, SBI Group, which established its Middle East regional hub in Riyadh earlier this year, has reinforced its commitment to the region. The group has also teamed up with local firms to launch a regional investment fund aimed at fostering growth and innovation.

This collaboration highlights the deepening financial and economic ties between Saudi Arabia and Japan, positioning both nations for a future of shared investment opportunities.