Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity

Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity
Saudi-based cyber artificial intelligence startup SpiderSilk inked a memorandum of understanding with stc Group’s Sirar. (Supplied)
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Updated 07 December 2024
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Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity

Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity

RIYADH: Saudi Arabia’s startup ecosystem continues to thrive, with significant investment across private equity, sportstech and digital platforms.

Jada Fund of Funds has announced an investment in Jadwa GCC Private Equity Fund I, managed by Jadwa Investment. The Riyadh-based fund is targeting SR1.5 billion ($399.2 million) in commitments, with a hard cap of SR2 billion.

The fund will invest in companies across the Gulf Cooperation Council, with a particular focus on Saudi Arabia. This marks Jadwa’s first regional blind pool fund, following a track record of 16 single-asset funds launched since 2007.

The agreement was signed in Riyadh by Bandr Al-Homaly, CEO of Jada Fund of Funds, and Tariq Al-Sudairy, CEO of Jadwa Investment. The partnership aims to further strengthen regional private equity investment activity.




CaptionJada Fund of Funds has announced an investment in Jadwa GCC Private Equity Fund I. (Supplied)

“Backing Jadwa’s first regional blind pool fund demonstrates our commitment to supporting the evolving private equity space led by pioneering investment firms, with the aim to broaden the Kingdom’s private equity ecosystem and contribute to its economic diversification,” Al-Homaly said.

“We are excited to partner with Jada Fund of Funds and to contribute to the development of the private equity ecosystem in Saudi Arabia through our blind pool fund, the GCC Private Equity Fund I. This investment will provide the capital necessary to grow businesses and enable their contribution to the Kingdom’s economic transformation,” Al-Sudairy said.

SVC backs Aliph Fund I

Saudi Venture Capital Co. has invested in Aliph Fund I, a growth-focused private equity fund managed by UAE-based Aliph Capital. The fund, founded in 2021, has a target size of $250 million.

Aliph Fund I focuses on mid-market companies across Saudi Arabia and the wider GCC. Its strategy emphasizes value creation through active ownership and enabling technology adoption to enhance business operations and growth potential.

“We are honored to welcome SVC as an investor in Aliph Fund I. The GCC’s SMEs represent fantastic opportunities to create investor value and drive economic growth, particularly when supported by active, hands-on management with a clear strategy of digitization and technology enablement,” Huda Al-Lawati, founder and CEO of Aliph Capital, said.

This investment aligns with SVC’s commitment to supporting private equity funds that drive growth across the GCC. Specific details about the investment amount were not disclosed.

“Our investment in the private equity fund by Aliph Capital is part of SVC’s Investment in Funds Program, in alignment with our strategy to support funds that invest in Saudi-based SMEs with growth potential,” Nabeel Koshak, CEO of SVC, said.

Saudi fintech Mala secures investment from Nuwa Capital

Saudi Arabia’s business-to-business buy now, pay later platform Mala has secured an undisclosed investment from venture capital firm Nuwa Capital.

Founded in 2024 by Musaab Al-Hakami, Mala offers business financing for the procurement landscape with its BNPL platform.

Khaled Talhouni, managing partner of Nuwa Capital, revealed that the market’s persistent problem and opportunity, as well as Al-Hakami’s experience, were the main reasons behind the investment.

Grintafy secures investment from Adaverse

Grintafy, a Saudi sportstech platform, has secured an undisclosed investment from Adaverse to accelerate its transformation to Web3. The company was founded in 2019 by Majdi Al-Lulu.

The platform connects football talent to opportunities with prominent teams in the Middle East and Europe. Grintafy is leveraging emerging technologies to enhance its talent discovery and recruitment processes.

This funding follows Grintafy’s previous financial support, including a $2.1 million bridge round in 2022 from Aramco’s Wa’ed. In March, the company also received backing from Chiliz to support its growth.

Koora Break secures funding from Rio Ferdinand’s TFG

Saudi sports platform Koora Break has received a multi-million-dollar investment from the Ferdinand Group, owned by former footballer Rio Ferdinand. TFG has acquired a minority stake in the company.

Founded in 2022 by Bader Al-Hammad, Koora Break is a sports network catering to the Middle East and North Africa region. The platform claims to attract 800 million visitors per month with its extensive football-related content.

Koora Break plans to use the investment to expand into European and Asian markets. Its multilingual content strategy will include offerings in both Arabic and English to broaden its global reach.

SpiderSilk inks MoU with stc Group’s Sirar

Saudi-based cyber artificial intelligence startup SpiderSilk inked a memorandum of understanding with stc Group’s Sirar.

The MoU will enable SpiderSilk to package its flagship product, Resonance, with some of Sirar’s services.

The agreement will also strengthen SpiderSilk’s Saudi market presence.

Aliph Capital invests in SANIPEX GROUP

UAE-based private equity firm Aliph Capital has acquired a 25 percent stake in SANIPEX GROUP, a lifestyle product supplier. The value of the transaction was not disclosed.

Founded in 1995 by Daryl Barker, SANIPEX GROUP provides premium bathroom, kitchen, lighting and outdoor solutions. Its customer base spans retail, corporate and trade clients across the GCC and international markets.

The investment follows Aliph Capital’s recent commitment from SVC to its Aliph Fund I. The deal underscores Aliph’s focus on mid-market companies in the region.

Playgama raises $3m for gametech innovation

UAE-based gametech startup Playgama has raised $3 million in a funding round led by The Open Platform and s16vc. Other investors include FJ Labs, The Games Fund, and TON Ventures.

Playgama, founded in 2023 by Dmitry Kachmar, operates an HTML5 games portal offering titles for all age groups. The platform simplifies monetization for developers and supports web gaming innovation.

The funding will enable Playgama to enhance its developer tools, introduce advanced analytics, and integrate fintech solutions. The company aims to drive growth in the web gaming sector.

Enakl raises $1.4m pre-seed funding

Morocco-based mobility startup Enakl has raised $1.4 million in a pre-seed funding round. The round was led by Catalyst Fund, with support from Renew Capital, Digital Africa, and Station F.

Enakl, founded in 2023 by Samir Bennani and Charles Pommarede, offers sustainable urban mobility solutions. The company is focused on collective transport tailored for emerging markets.

The funding will support Enakl’s expansion in Casablanca and further development of its AI-driven technology. Enakl aims to optimize transport routes and deepen its impact in underserved urban areas.

Abikhdmh expands with close to $800k funding

Saudi platform Abikhdmh has raised $798,545 to broaden its range of digital services. The app facilitates access to government services such as document issuance for businesses and citizens.

The funding will enable Abikhdmh to add new services, including flight reservations, business assistance, and employment solutions. The platform’s growth reflects increased demand for digital transformation in Saudi Arabia.

Abikhdmh’s expansion aligns with Saudi Vision 2030, which emphasizes digital innovation to enhance public and private sector services. The app is positioned to play a key role in modernizing service delivery in the Kingdom.


Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments

Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments
Updated 08 January 2025
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Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments

Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments

RIYADH: The Hafr Al-Batin Investment Forum 2025, held in Saudi Arabia’s Eastern Province, concluded with the signing of seven agreements totaling SR17 billion ($4.5 billion) across key sectors, underscoring the region’s growing economic potential.

The event, organized by the Hafr Al-Batin Chamber of Commerce in collaboration with the Federation of Saudi Chambers and hosted at the University of Hafr Al-Batin, aimed to position the province as a competitive hub for both local and international investors, in alignment with Saudi Arabia’s Vision 2030.

The forum was inaugurated by Eastern Province Gov. Prince Saud bin Nayef Al-Saud, who emphasized the province’s strategic advantages for investors.

He highlighted Hafr Al-Batin’s competitive investment landscape, noting its diversified economic opportunities and advantageous location, making it an ideal destination for investors looking to capitalize on sustainable growth prospects.

He also underscored the region’s infrastructure developments, which are critical for attracting investment and creating job opportunities for Saudi nationals.

The agreements signed during the forum marked a significant milestone in Hafr Al-Batin’s economic development, with the forum serving as an important platform for showcasing the region’s investment opportunities.

These agreements are expected to contribute to the province’s growing role in the Kingdom’s economic agenda, aligning with Vision 2030’s objectives of economic diversification and job creation. The event also highlighted Hafr Al-Batin’s efforts to attract foreign capital and foster local content within its industries.

In conjunction with the forum, the Eastern Province Development Authority launched a master plan for Hafr Al-Batin aimed at attracting SR47 billion in private sector investments. This plan is projected to contribute SR11 billion to Saudi Arabia’s gross domestic product and create more than 60,000 job opportunities for local residents.

One of the key announcements at the forum was the unveiling of the Middle East’s largest livestock city, a SR9 billion project designed to support Saudi Arabia’s goals of achieving self-sufficiency in livestock production and enhancing food security.

The city, backed by the Hafr Al-Batin Livestock and Marketing Association, will be developed on an expansive 11 million sq. meter site. Once operational, the project is expected to meet 30 percent of Saudi Arabia’s demand for red meat while generating over 13,000 jobs.

It will include state-of-the-art livestock farms, fodder production plants, a veterinary hospital, and advanced meat processing facilities. Sustainability will be a core feature, with the city powered by renewable energy, generating 15 billion kilowatt-hours of green electricity annually, producing 140,000 liters of milk per day, and 100 tonnes of fodder per hour. The facility will also feature an automated abattoir spanning 170,000 sq. meters, contributing 1.5 million sq. meters of leather production each year.

The forum drew a wide range of participants, including Prince Abdulrahman bin Abdullah bin Faisal, governor of Hafr Al-Batin, as well as high-ranking officials, business leaders, and investors from across the globe. The event was designed to showcase the province’s investment potential in sectors such as agriculture, livestock, healthcare, logistics, and infrastructure—critical areas for the region’s economic transformation.

Hassan Al-Huwaizi, chairman of the Federation of Saudi Chambers, emphasized the forum’s importance in advancing the Kingdom’s economic goals.

He pointed to the growth of Saudi Arabia’s trade and commerce ecosystem, driven in large part by Vision 2030’s transformative strategies, and highlighted the role of the Hafr Al-Batin Investment Forum as a vital platform for introducing the region’s opportunities to both national and international investors.

Sulaiman Al-Aqil, chairman of the Hafr Al-Batin Chamber of Commerce, described the forum as a pivotal moment in the province’s economic evolution.

The event featured participation from 24 government and private entities from 12 countries, four panel discussions with 19 speakers, and the release of a comprehensive economic study on Hafr Al-Batin’s investment potential.

With these agreements and initiatives, the forum not only highlighted the region’s expanding role in Saudi Arabia’s economic future but also reaffirmed the Kingdom’s commitment to becoming a leading global investment hub in line with Vision 2030’s objectives.


PIF invests $200m in new Saudi ETF by State Street Global Advisers 

PIF invests $200m in new Saudi ETF by State Street Global Advisers 
Updated 08 January 2025
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PIF invests $200m in new Saudi ETF by State Street Global Advisers 

PIF invests $200m in new Saudi ETF by State Street Global Advisers 

RIYADH: Saudi Arabia’s Public Investment Fund has invested $200 million in the newly launched SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS exchange-traded fund. 

In a press release, State Street Global Advisers, the US-based asset manager behind the ETF, called it the first fixed-income UCITS ETF focused on the Kingdom to launch in Europe.

This move comes as global investors look to capitalize on Saudi Arabia’s growing bond market, supported by economic and infrastructure developments under Vision 2030. 

The ETF launch further underscores PIF’s strategy to enhance international access to Saudi Arabia’s diversified market and attract foreign investment. PIF’s portfolio also includes investments in ETFs listed in Hong Kong, Shanghai, Shenzhen, and Tokyo. 

“PIF’s investment into the first internationally listed fixed-income Saudi ETF further deepens the Saudi market, while attracting investors and strengthening cross-geography partnerships, increasing international investment in Saudi Arabia,” said Yazeed Al-Humied, deputy governor and head of Middle East and North Africe Investments at PIF. 

Undertakings for Collective Investment in Transferable Securities, or UCITS, are EU regulations that establish a standardized framework for investment funds marketed and sold to investors within the economic bloc.

Listed on the London Stock Exchange and Deutsche Börse’s Xetra in Frankfurt, the new fund tracks the J.P. Morgan Saudi Arabia Aggregate Index. This index provides exposure to the Kingdom’s financial instruments, including liquid dollar- and SR-denominated government and quasi-government bonds, as well as sukuk bonds. 

“We are delighted to see such significant early-stage commitment from PIF into the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF, a first of its kind in the industry. The creation of this fund sprung from our ambition to provide investors a compelling and innovative opportunity,” said Yie-Hsin Hung, CEO of State Street Global Advisers. 

The ETF is accessible to investors in several European countries, including Austria, Denmark, and Finland, as well as France, Germany, and Italy. It is also available in Luxembourg, the Netherlands, and Norway, as well as Spain, Sweden, and the UK. 

State Street Global Advisers, the asset management business of State Street Corp., has served governments, institutions, and financial advisers for over four decades, managing $4.73 trillion in assets.
 
The SPDR ETF range spans international and domestic asset classes, providing investors with flexible options aligned to diverse strategies. 


Closing Bell: Saudi main index slides to close at 12,088

Closing Bell: Saudi main index slides to close at 12,088
Updated 08 January 2025
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Closing Bell: Saudi main index slides to close at 12,088

Closing Bell: Saudi main index slides to close at 12,088

RIYADH:  Saudi Arabia’s Tadawul All Share Index edged lower on Wednesday, dropping by 24.55 points, or 0.20 percent, to close at 12,088.74. The benchmark index saw a trading turnover of SR7 billion ($1.86 billion), with 127 stocks advancing and 112 declining.

The Kingdom’s parallel market, Nomu, also experienced a slight decline, falling by 32.97 points, or 0.11 percent, to settle at 30,776.15. Of the stocks listed on Nomu, 41 advanced while 42 retreated.

The MSCI Tadawul Index dropped 7.53 points, or 0.50 percent, to close at 1,506.86.

Among the top performers of the day was Nice One Beauty Digital Marketing Co., which made its debut on the main market on Jan. 8. The company’s share price surged by 30 percent, reaching SR45.50.

Other notable gainers included Al-Mawarid Manpower Co., which saw its stock rise 7.82 percent to SR135.20, and Al-Baha Investment and Development Co., which saw its share price climb 6.98 percent.

On the downside, National Co. for Learning and Education recorded the largest drop, falling 4.24 percent to SR185.20. Almoosa Health Co. also saw a decline of 3.84 percent, ending the session at SR140.40, while Alinma Retail REIT Fund Yanbu saw a 3.45 percent drop to SR4.76.

On the announcements front, Nice One Beauty Digital Marketing Co. revealed it is offering 34.65 million shares at SR35 each. SNB Capital is serving as the lead manager for the offering.

United Electronics Co. announced its estimated financial results for the year ending Dec. 31, 2024. The company reported a net profit of SR534.53 million, marking a 36.8 percent increase compared to 2023. The growth was driven by higher revenues and improved gross profits, thanks to a better sales mix and expansion in the consumer finance sector, despite an increase in selling, distribution, and administrative expenses. Extra’s stock ended the day at SR95.60, up 2.13 percent.

United International Holding Co. also posted its financial results for the period ending Dec. 31, 2024. The company recorded a net profit of SR222.38 million, a 4.8 percent increase over the previous year. This growth was attributed to higher credit loss provisions and increased selling, general, and administrative expenses. The company’s shares closed at SR187.80, down 2.60 percent.

Meanwhile, the Kingdom’s Capital Market Authority announced that Rawasi Albina Investment Co. is planning to issue up to SR500 million in debt instruments. The company's stock finished the session at SR4.35, down 1.15 percent.


Saudi Arabia dominates MENA VC landscape, securing $750m in 2024

Saudi Arabia dominates MENA VC landscape, securing $750m in 2024
Updated 08 January 2025
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Saudi Arabia dominates MENA VC landscape, securing $750m in 2024

Saudi Arabia dominates MENA VC landscape, securing $750m in 2024

RIYADH: Saudi Arabia has retained its position as the top destination for venture capital funding in the Middle East and North Africa region, raising $750 million in 2024, according to a new report.  

This marks the second consecutive year the Kingdom has topped the regional VC rankings.  

Data from regional venture platform MAGNiTT showed that Saudi Arabia accounted for 40 percent of the total VC capital deployed in MENA in 2024, with a 16 percent year-on-year increase in deal flow.  

The Kingdom closed 178 deals, the most of any MENA nation, reflecting strong investor confidence and a thriving startup ecosystem. 

The largest deal in the region was secured by Saudi-based e-commerce enablement platform Salla, which raised $130 million. 

The UAE ranked second in regional funding with $613 million raised, while leading in deal volume with 188 transactions and 12 exits.  

Emerging venture markets snapshot  

MENA startups collectively raised $1.9 billion in 2024, reflecting a 29 percent decline compared to 2023.   

Despite the drop, MAGNiTT noted that “funding levels in 2024 were still higher than 2020 levels, prior to the 2021 and 2022 boom years, signaling continued growth in the venture space.”  

The Middle East accounted for $1.5 billion of the funding, spread across 461 deals — a 10 percent annual increase. Total investor participation in the region grew by 14 percent, reaching 392 investors, while exits totaled 24.  

Venture capital performance in emerging venture markets — which include the Middle East, Africa, Southeast Asia, Pakistan, and Turkiye — slowed significantly in 2024.   

Total VC funding in these regions fell by 40 percent, with deal volumes dropping 20 percent compared to 2023. Both metrics also dipped below 2020 levels.  

Southeast Asia led among EVMs with $5.6 billion raised across 564 deals, while Africa recorded the weakest performance, raising $1.07 billion through 294 deals.  

Mega deals and early-stage activity  

Global VC trends, such as reduced late-stage funding, were reflected in EVMs. Mega deals — valued at $100 million or more — declined for the third consecutive year, falling 56 percent compared to 2023.   

The first quarter of 2024 saw the lowest mega deal funding since the fourth quarter of 2019, with late-stage investments hardest hit.  

However, early-stage activity showed resilience. The focus on seed and pre-series A funding increased, with $1 million to $5 million ticket sizes rising by 5 percentage points year on year.  

According to MAGNiTT, this emphasis on early-stage investments is critical for sustaining future deal flow growth.  

Philip Bahoshy, CEO of MAGNiTT, highlighted a potential recovery in the venture market. “In 2024, we witnessed a decline in funding across EVMs driven by reduced late-stage investment activity. However, the positive development is that 2024 also saw a gradual decline in interest rates, both in mature markets like the US and Emerging Markets,” he said.  

“We anticipate these rate cuts to begin boosting capital availability within the next 6-9 months, paving the way for a stronger funding environment in 2025,” Bahoshy added.  

The Middle East increased its share of deal transactions across EVMs to 35 percent in 2024, an 8-percentage-point rise.   

Southeast Asia captured the largest share at 43 percent, while Africa’s share dropped to its lowest level in five years, at 22 percent. 


UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn

UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn
Updated 08 January 2025
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UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn

UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn
  • Value-accretive transaction expected to boost earnings per share by at least 20% in 2025 compared to 2024
  • Transaction adds modern fleet of 32 tankers to ADNOC L&S’ fleet and expands its service portfolio

RIYADH: UAE’s ADNOC Logistics and Services has boosted its global position by acquiring an 80 percent stake in Navig8 TopCo. Holdings Inc. for $1.04 billion, strengthening its status as a prominent player in energy maritime transportation. 

The transaction includes a contractual commitment to acquire the remaining 20 percent by mid-2027, positioning ADNOC L&S for expanded global operations and increased shareholder value. 

Navig8, a prominent international shipping pool operator and commercial management company, brings a modern-owned fleet of 32 tankers and an established presence in 15 cities across five continents. 

The firm has investments in technical management services, is a marine fuels provider operating in over 1,000 ports globally, and has additional ventures within the marine sector. 

 

“The completion of this landmark acquisition is a significant milestone in our transformational growth strategy,” said Abdulkareem Al-Masabi, CEO of ADNOC L&S. 

“By integrating Navig8’s extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders. This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company,” Al-Masabi added.

The acquisition aligns with ADNOC L&S’ growth strategy, complementing its integration with Zakher Marine International in 2022 and reinforcing its ambition to expand its global reach and service portfolio. 

ZMI, an Abu Dhabi-based owner and operator of offshore support vessels, brought with it the world’s largest fleet of self-propelled jack-up barges. 

ZMI’s acquisition expanded ADNOC L&S’s fleet to over 300 vessels, reinforcing its position as the region’s largest integrated logistics provider and enabling the company to offer its customers a broader range of services. 

ADNOC L&S, a subsidiary of Abu Dhabi National Oil Co., will benefit from Navig8’s acquisition through expanded services, including commercial pooling, bunkering, technical management, and environmental, social, and governance-focused industrial and digital solutions. 

The acquisition is structured to ensure economic ownership of Navig8 starting from Jan. 1, 2024. 

The remaining 20 percent will be acquired in 2027 for deferred consideration ranging from $335 million to $450 million, depending on earnings before interest, taxes, depreciation, and amortization performance during the interim. 

Nicolas Busch, CEO of Navig8, expressed enthusiasm for the deal, saying: “We are excited to join forces with ADNOC L&S and the wider ADNOC Group. This achievement highlights the exceptional efforts of the Navig8 team over the past two decades, setting the stage for this next phase.” 

The acquisition is expected to deliver immediate financial benefits, with ADNOC L&S projecting a 20 percent increase in earnings per share by this year compared to the previous year. 

The company’s share price saw a 5.23 percent increase as of Jan. 8, 1:00 p.m. Saudi time.

It anticipates annual synergies of at least $20 million by 2026, underscoring the value-accretive nature of the transaction.