Funding surges as MENA startups gain momentum

Funding surges as MENA startups gain momentum
DHL eCommerce, the logistics arm of DHL Group, has acquired Saudi-based parcel logistics company AJEX for an undisclosed amount. (Supplied)
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Updated 01 March 2025
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Funding surges as MENA startups gain momentum

Funding surges as MENA startups gain momentum
  • Recent funding rounds highlight region’s growing investor appeal

RIYADH: Startups across the Middle East and North Africa region continue to attract significant investment, with fintech, cybersecurity and artificial intelligence-driven ventures leading the charge.

Recent funding rounds and acquisitions highlight the region’s growing appeal to investors, particularly in Saudi Arabia, the UAE and Egypt.

Saudi Arabia-based cybersecurity firm CQR raised $3 million in a funding round led by Shorooq. Founded in 2023 by Naser Al-Dossary, the company provides AI-driven, product-based cybersecurity solutions for businesses.

“Cyber threats in OT (operational technology) environments are evolving rapidly and traditional security models are no longer enough,” Al-Dossary said.

“At CQR, we are reengineering cybersecurity for industrial operations — building innovative, product-driven solutions that make OT security accessible, efficient and highly scalable.”

The investment will enable the company to scale operations and enhance its AI capabilities.

Al Madinah Angels launched to boost entrepreneurship in Saudi Arabia

A group of investors has launched Al Madinah Angels to support startups as part of Al Madinah Ventures Initiatives.

The network is a collaboration between Value Makers Studio, Madinah Chamber and Numu Angels.

It aims to help founders turn ideas into viable ventures and contribute to the region’s economic growth.

This follows the launch of Al Madinah Ventures late last year, a $10 million investment fund initiated by VMS in collaboration with the Economic Development Center and the Madinah Chamber of Commerce.

DHL eCommerce acquires Saudi logistics company AJEX

DHL eCommerce, the logistics arm of DHL Group, has acquired Saudi-based parcel logistics company AJEX for an undisclosed amount.

Founded in 2021 and backed by Ajlan & Bros Holding, AJEX offers express distribution, e-commerce services and freight solutions across Saudi Arabia, the UAE and Bahrain, as well as the US, UK, Turkiye, South Africa and China.

Flow48 raises $69m series A to expand in Saudi Arabia, UAE

UAE-based fintech Flow48 has secured $69 million in a series A funding round comprising debt and equity.

The round was led by Breega, with participation from 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures and Plus VC.

Founded in 2022 by Idriss Al-Rifai, Flow48 provides small- and medium-sized enterprises with upfront financing by transforming future revenues into immediate capital.

The funding will support its expansion in Saudi Arabia and the UAE. In November 2023, the company closed a $25 million pre-series A round. 

At CQR, we are reengineering cybersecurity for industrial operations — building innovative, product-driven solutions that make OT security accessible, efficient and highly scalable.

Naser Al-Dossary, CQR cofounder and CEO

Pinewood.AI acquires Seez in $46.2m deal

UK-based automotive intelligence platform Pinewood.AI has agreed to acquire UAE-founded autotech company Seez for $46.2 million in cash and shares.

The share component is expected to increase over the next three years.

Established in 2016 by Tarek Kabrit and his nephew Andrew Kabrit, Seez provides car dealerships and original equipment manufacturers with software solutions to enhance customer experience and sales.

Last year, the company raised $4.2 million and has since expanded to 16 markets, including Mexico and Australia.

Omnispay secures $1.5m seed round to enhance SME financial solutions

UAE-based fintech omnispay has raised $1.5 million in a seed funding round led by Mercatus Capital Pte., with participation from regional and international investors.

Founded in 2022 by Simanta Das, Vimal Kumar and Praveen Kiran, omnispay provides an all-in-one platform for small- and medium-sized enterprises to manage cash flow through collection, payment and lending services.

The company claims to have signed up more than 1,600 businesses with strong month-on-month growth.

Disrupt.com commits $100m to AI-first startups

UAE-based venture builder Disrupt.com has pledged $100 million to fund AI-first technology ventures globally.

Founded by Aaqib Gadit, Uzair Gadit and Umair Gadit, the firm will focus on AI, cybersecurity, Web 3.0, automotive technology and retail innovation.

To date, Disrupt.com has deployed more than $40 million across its portfolio, including investments in early- and growth-stage companies, as well as an exit valued at $350 million.

Journify raises $4m to expand customer data solutions

UAE-based software as a service provider Journify has secured $4 million in funding led by Silicon Badia, with participation from RZM and other investors.

Founded in 2023 by Taoufik El-Jamali and Amine Chouki, Journify helps businesses maximize the value of their customer data. The investment will support its expansion efforts.

Fawry invests $1.6m in three Egyptian fintech startups

Egypt-based fintech giant Fawry has invested $1.6 million to acquire a 56.6 percent equity stake in Virtual CFO and 51 percent stakes in both Dirac Systems and Code Zone. Founded in 2008, Fawry is Egypt’s largest e-payment platform, providing electronic bill payments, mobile top-ups and business services.

These investments align with its strategy to expand its business solutions ecosystem, Fawry Business.

Egypt’s fintech sector sees 5.5x growth in 5 years

Egypt’s fintech sector has grown 5.5 times over the past five years, driven by digital payments, lending and business to business marketplaces, according to a report by Entlaq, in collaboration with the Netherlands Enterprise Agency and the Dutch Embassy in Egypt.

Government initiatives and the Fintech & Innovation Strategy have accelerated financial inclusion and digital transformation.

However, regulatory complexities, digital literacy gaps and cybersecurity risks remain key challenges.

Basata increases stake in Jordan’s MadfoatCom to 25 percent

Egypt-based fintech Basata has raised its stake in Jordanian e-payment firm MadfoatCom to 25 percent.

The acquisition is part of Basata’s strategy to enhance digital financial inclusion and strengthen Jordan’s digital payments infrastructure.

Basata, formerly known as Ebtikar, was formed in 2009 through the merger of Masary and Bee and specializes in bill payments, mobile money and supply chain solutions.

MadfoatCom, founded in 2011 by Nasser Saleh, provides an online, real-time bill presentment and payment system.

Lola raises $1.3m to expand food tech business in GCC

Bahrain-based food tech startup Lola has secured $1.3 million in a pre-seed funding round from Plus VC, Vision Ventures and angel investors.

Founded in 2023 by Othman Janahi, Lola provides customizable cake ordering services in Bahrain and Saudi Arabia.

The investment will support its expansion into Saudi Arabia and the wider Gulf Cooperation Council region.

Lillia secures $1.7m grant to expand AI-powered health tech platform

Qatar-based health tech startup Lillia has raised a $1.7 million grant from the Qatar Research, Development and Innovation Council.

Founded in 2020 by Sujit Chakrabarty, Lillia was created through the 2024 merger of Qatar-based Droobi Health LLC and India-based Smit.fit.

Its AI-powered platform helps healthcare providers, insurers, corporations and public sector entities manage chronic diseases.

Lillia plans to expand across MENA and Southeast Asia in the next two years.

Cashfree Payments secures $53m to expand in MENA

India-based payments solutions provider Cashfree Payments has raised $53 million in a funding round led by South Korean digital entertainment company KRAFTON, with participation from Apis Partners.

The investment will support Cashfree’s expansion in the UAE and the broader MENA region, strengthening its position in the digital payments market.

Cashfree currently operates in the Middle East through a strategic partnership with UAE-based payments firm Telr, which it invested in three years ago.

With the new funding, the company aims to scale its offerings to businesses across the region, leveraging its expertise in India’s fintech sector, where it processes $80 billion in annual transactions.


Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years
Updated 31 min 56 sec ago
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Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

RIYADH: Saudi Arabia’s banking sector continued its robust lending expansion in March, with total credit reaching SR3.1 trillion ($827.2 billion), marking a 16.26 percent year-on-year increase. 

According to data from the Saudi Central Bank, also known as SAMA, this represents the highest annual rise in three years and eight months. 

The surge was primarily fueled by corporate lending, which rose from 52.46 percent of total bank credit in March 2024 to 55.19 percent this year. Credit extended to businesses grew by 22.3 percent over this period to exceed SR1.71 trillion. 

This shift underscores how businesses are now the dominant force shaping Saudi Arabia’s lending landscape, signaling the economy’s accelerating diversification.     

Real estate activities continued to lead within the corporate loan mix, comprising 22 percent of business lending and growing by an impressive 40.5 percent year-on-year to reach SR374.5 billion. 

The sector’s continued expansion reflects heightened demand for housing, commercial infrastructure, and new development projects across the Kingdom’s mega-cities and giga-projects under Vision 2030. 

Other key sectors included wholesale and retail trade, which held a 12.43 percent share with SR212.8 billion in lending. Manufacturing accounted for 11.05 percent, with SR189.18 billion in loans. The electricity, gas, and water supply sector comprised 10.6 percent, with loans totaling SR181.43 billion. 

Each of these areas benefited from increased public and private sector spending and reforms targeting industrial growth and economic resilience. 

Notably, education — while accounting for just 0.55 percent of corporate loans — posted the highest growth rate across all sectors at 44.7 percent, reaching SR9.35 billion. This surge aligns with the Kingdom’s efforts to expand educational access and upgrade academic infrastructure in line with long-term human capital goals. 

Financial and insurance activities also showed strong momentum, expanding 38.41 percent to hit SR161.23 billion, ranking third in growth after real estate and education. The rise reflects increased demand for financial services, greater insurance penetration, and fintech integration across key economic sectors. 

Meanwhile, retail lending stood at SR1.39 trillion in March, growing 9.6 percent year on year. However, its share of total credit declined from 47.54 percent in March 2024 to 44.81 percent this year, reflecting a gradual shift in the banking sector’s focus from consumer finance to business-driven growth. 

This moderation in retail lending share comes despite strong performance in personal loans, auto finance, and housing credit, indicating that corporate and commercial financing now command greater attention from lenders responding to market trends and government priorities.   

Improved lending quality 

According to an April 2025 report by McKinsey & Company, the quality of lending in Saudi Arabia has improved across nearly all major sectors. Based on their analysis of expected credit loss versus lending volume from 2020 to 2023, sectors such as services, finance and insurance, and utilities have shown both increased lending and lower credit risk. 

A key finding in McKinsey’s data is that financial institutions in Saudi Arabia are increasingly diversifying their portfolios toward sectors with lower ECL growth and higher lending volumes. For example, the services and financial sectors have exhibited strong improvements in lending quality, while construction and agriculture continue to show relatively higher risk levels.  

A bubble chart in the report maps lending volume against changes in ECL, revealing that the Saudi banking sector is pivoting toward sectors with improving credit profiles. 

Sectors like manufacturing, trade, electricity, and utilities now dominate lending — not only in volume but also due to their lower risk outlooks. This trend aligns with national efforts to prioritize economic diversification and reduce overexposure to volatile or high-risk sectors. 

In the Gulf Cooperation Council, construction and trade sectors are growing steadily — according to McKinsey — at 5 to 8 percent annually, while real estate is expanding around 8 percent, supported by projects across Saudi Arabia and Qatar. Manufacturing is also gaining traction, bolstered by targeted industrial strategies. 

Meanwhile, emerging industries such as education, finance, and food services are collectively growing at rates of 20 percent or more annually.   

Capital market innovation 

McKinsey also noted that Saudi banks are transitioning from a traditional “originate-to-hold” model to a more agile “originate-to-distribute,” or OTD, model. This shift enables banks to issue loans and then offload risk through tools like loan trading, securitization, and syndicated deals, freeing up capital for further lending. 

In a milestone for Saudi financial markets, 2025 saw the signing of the Kingdom’s first residential mortgage-backed securities. Legal frameworks are being developed to enable more such instruments, providing capital-light financing options and paving the way for a more liquid corporate bond market.   

McKinsey projects that OTD volumes in Saudi Arabia could nearly double by 2030, improving banks’ return on assets and equity through faster lending cycles and increased fee income. This is expected to enhance financial sector efficiency while supporting large-scale projects through innovative funding channels.  

ESG and digital transformation 

The report also highlighted the growing role of environmental, social, and governance standards in shaping Saudi lending. With national sustainability agendas in place, many banks are embedding ESG principles into their credit frameworks, including the issuance of green bonds and sustainability-linked loans. 

At the same time, operational efficiency is improving. Front-office productivity is rising as banks invest in AI-driven analytics, advanced risk modeling, and automation. This not only increases competitiveness but also enables faster, more accurate credit decisions in a dynamic market. 

The combined effect is a more resilient, innovative, and inclusive lending landscape — one that supports diversified economic growth while safeguarding financial stability. 

With credit demand projected to grow by 12 to 14 percent annually through the end of the decade, Saudi banks are expected to maintain strong momentum. 

Still, McKinsey emphasizes that sustained growth will require banks to boost productivity and embrace operational innovation.  

Some banks have already shown improvement, but the corporate and investment banking sector still has room to optimize client service and internal efficiency. 

Currently, front-office productivity varies widely among GCC banks. Coverage teams in lagging institutions spend just 20 percent of their time on client-facing activities, compared to 30 percent among industry leaders. McKinsey projects that future top performers will raise that figure to 40 percent by 2030 — a shift that will require significant investment in AI and internal digitization. 

GCC banks are also closing the gap with global peers in analytics and automation. As these capabilities scale, AI-powered operations are expected to drive faster risk modeling, more responsive lending, and greater agility.  

As the region’s markets mature and international competition intensifies, CIB institutions must evolve to offer more sophisticated solutions — such as capital-light lending, securitization, and structured finance. 

Banks that adapt and build long-term investor relationships will be best positioned to shape the market and capture the most promising opportunities.  


Saudi Arabia’s non-oil sector growth continues in April as PMI hits 55.6 

Saudi Arabia’s non-oil sector growth continues in April as PMI hits 55.6 
Updated 05 May 2025
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Saudi Arabia’s non-oil sector growth continues in April as PMI hits 55.6 

Saudi Arabia’s non-oil sector growth continues in April as PMI hits 55.6 

RIYADH: Saudi Arabia’s non-oil private sector continued to expand in April, with the Riyad Bank Purchasing Managers’ Index reaching 55.6, indicating sustained growth in business activity, a new survey showed.  

According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the April reading marked a slight drop from 58.1 in March but remained comfortably above the neutral 50.0 mark that separates expansion from contraction. 

Despite the marginal decline, Saudi Arabia’s PMI for April was still higher than the UAE’s reading of 54.0 and Kuwait’s 54.2. 

Naif Al-Ghaith, chief economist at S&P Global Market Intelligence, said: “As of April 2025, Saudi Arabia’s non-oil economy continues to assert itself as a pivotal component of the nation’s economic landscape.”  

He added: “The diversification efforts have continued to bear fruit, underscoring the Kingdom’s strategic shift away from oil dependency toward a more balanced and sustainable economic framework.”  

The PMI survey signalled a strong increase in employment levels across the non-oil private sector in April. 

The rate of hiring growth accelerated to its joint-fastest pace in ten and a half years, matching the level recorded in October 2023, as companies expanded their staffing capacity in response to rising sales and increased activity. 

As a result, staff cost inflation surged to a record high in April, reversing the slowdown in cost pressures seen in March. 

“Employment in the non-oil private sector has been particularly vibrant. This surge in employment is a response to rising sales and increased business activity, prompting firms to expand staffing capacities,” said Al-Ghaith.  

The report added that business activity at Saudi Arabia’s non-oil companies increased sharply at the start of the second quarter, with firms commonly reporting an expansion in output due to higher sales, new project approvals, and strong tourist numbers. 

“While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending. Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May,” added Al-Ghaith.  

He further noted that Saudi Arabia had successfully managed inflation compared to other nations, highlighting the Kingdom’s effective control of domestic prices amid global uncertainties. 

The latest PMI data also signalled a steep increase in purchasing activity, with the growth rate reaching a three-month high. 

S&P Global noted that expectations among non-oil firms for output in one year’s time increased slightly from March, although overall business optimism remained below the long-run survey average. 

Looking ahead, Al-Ghaith said the Kingdom’s fiscal prospects remain positive for 2025. 

“Forecasts suggest a 3 percent expansion in overall gross domestic product and a 4.5 percent increase in non-oil sectors, continuing the upward trajectory in non-oil activities,” said Al-Ghaith.  

He added: “This growth is crucial for sustaining the economic transformation outlined in Vision 2030, which aims to foster diverse, innovative industries.” 


Oil Updates — crude tumbles as OPEC+ accelerates output hikes, surplus looms

Oil Updates — crude tumbles as OPEC+ accelerates output hikes, surplus looms
Updated 05 May 2025
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Oil Updates — crude tumbles as OPEC+ accelerates output hikes, surplus looms

Oil Updates — crude tumbles as OPEC+ accelerates output hikes, surplus looms

SINGAPORE: Oil prices fell more than $1 a barrel on Monday as OPEC+ is set to further speed up oil output hikes, spurring concerns about more supply coming into a market clouded by an uncertain demand outlook, according to Reuters.

Brent crude futures dropped $1.34, or 2.19 percent, to $59.95 a barrel by 10:17 a.m. Saudi time while US West Texas Intermediate crude was at $56.87 a barrel, down $1.42, or 2.44 percent.

Both contracts touched their lowest since April 9 at Monday’s open after OPEC+ agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day.

The June increase from the eight producers in the OPEC+ group will take the total combined hikes for April, May and June to 960,000 bpd, representing a 44 percent unwinding of the 2.2 million bpd of various cuts agreed on since 2022, according to Reuters calculations.

“The May 3 OPEC+ decision to raise production quotas another 411,000 bpd for June adds to the market expectation that the global supply/demand balance is moving to a surplus,” Tim Evans, founder of Evans on Energy said in a note.

The premium between the front-month Brent contract and that for delivery in six months was 4 cents a barrel, narrowing from 47 cents in the previous session.

However, the spread flipped to a discount, known as a contango structure, of 11 cents a barrel earlier on Monday, for the first time since December 2023, reflecting expectations that the later-dated market is amply supplied or demand may drop.

Barclays and ING have also lowered their Brent crude forecasts following the OPEC+ decision.

Barclays reduced its Brent forecast by $4 to $66 a barrel for 2025 and by $2 to $60 for 2026, while ING expects Brent to average $65 this year, down from $70 previously.

“We now expect OPEC+ to phase out the additional voluntary adjustments by October 2025 but also expect slightly slower US oil output growth,” Barclays analyst Amarpreet Singh said in a note.

The net impact of the higher OPEC+ output and lower US output has increased Barclays’ estimate of supply in 2025 by 290,000 bpd for 2025 and 110,000 bpd for 2026, he said.

ING analysts led by Warren Patterson said the global oil balance is expected to move deeper into surplus throughout 2025.

“The oil market has been dealing with significant demand uncertainty amid tariff risks. This change in OPEC+ policy adds to uncertainty on the supply side,” they added.


Trump says he wants a fair trade deal with China 

Trump says he wants a fair trade deal with China 
Updated 05 May 2025
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Trump says he wants a fair trade deal with China 

Trump says he wants a fair trade deal with China 

ABOARD AIR FORCE ONE: US President Donald Trump on Sunday said the US was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal. 

Trump told reporters aboard Air Force One that he had no plans to speak with Chinese President Xi Jinping this week, but US officials were speaking with Chinese officials about a variety of different things. 

Asked if any trade agreements would be announced this week, Trump said that could “very well be” but gave no details. 

Trump’s top officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10 percent tariff on most countries, along with higher tariff rates for many trading partners that were then suspended for 90 days. 

He has also imposed 25 percent tariffs on autos, steel and aluminum, 25 percent tariffs on Canada and Mexico, and 145 percent tariffs on China. 

He suggested that he did not expect to reach an agreement with some countries, but could instead be “setting a certain tariff” for those trading partners in the next two to three weeks. It was not immediately clear if he was referring to the reciprocal tariffs announced on April 2, which are due to kick in on July 8 after a 90-day pause. 

Trump repeated his claim that China had been “ripping us for many years” on global trade, adding that former President Richard Nixon’s move to reach out and establish relations with China was “the worst thing” he ever did. 

Trump sounded more upbeat about China and the prospects for reaching an agreement in an interview with NBC News that was taped on Friday and broadcast on Sunday. 

In the interview, he acknowledged that he had been “very tough with China,” essentially cutting off trade between the world’s top two economies, but said Beijing now wanted to reach an agreement. 

“We’ve gone cold turkey,” he said. “That means we’re not losing a trillion dollars ... because we’re not doing business with them right now. And they want to make a deal. They want to make a deal very badly. We’ll see how that all turns out, but it’s got to be a fair deal.” 


Closing Bell: Saudi main index slips to close at 11,411 

Closing Bell: Saudi main index slips to close at 11,411 
Updated 04 May 2025
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Closing Bell: Saudi main index slips to close at 11,411 

Closing Bell: Saudi main index slips to close at 11,411 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 132.17 points, or 1.14 percent, to close at 11,411.50. 

The total trading turnover of the benchmark index was SR3.5 billion ($944.3 million), as 41 stocks advanced and 198 retreated.    

Similarly, the Kingdom’s parallel market Nomu lost 116.45 points, or 0.41 percent, to close at 28,013.32. This comes as 30 of the listed stocks advanced while 39 retreated.    

The MSCI Tadawul Index lost 20.74 points, or 1.41 percent, to close at 1,451.17.     

The best-performing stock of the day was Umm Al Qura for Development and Construction Co., whose share price surged 2.77 percent to SR25.95.   

Other top performers included National Industrialization Co., which saw its share price rise 2.26 percent to SR9.49, and Arabian Contracting Services Co., whose share price increased 1.69 percent to SR132.00. 

Zahrat Al Waha for Trading Co. recorded the most significant drop, falling 7.05 percent to SR27.70. 

Saudi Automotive Services Co. saw its stock prices fall 5.67 percent to SR61.50. 

Emaar The Economic City also saw its stock prices decline 4.50 percent to SR14.00. 

On the announcements front, Dar Alarkan Real Estate Development Co. reported its interim financial results for the period ending March 31. 

According to a Tadawul statement, the company posted a net profit of SR209.34 million in the first quarter of 2025, marking a 36.2 percent increase compared to the same quarter in 2024.  

The rise in net income was primarily driven by higher property sales. Increased lease revenues, lower finance costs, and greater non-operating income from Islamic Murabaha deposits also contributed to the gains, though these were partially offset by higher operating expenses and reduced earnings from associates. 

Dar Alarkan Real Estate Development Co. ended the session at SR21.04, down 1.05 percent. 

Saudi Aramco Base Oil Co. – Luberef has announced its interim financial results for the first quarter of 2025. A bourse filing showed the company recorded a net profit of SR221.5 million for the period ending March 31, reflecting a 7.3 percent decline compared to the same quarter last year. The drop in earnings was mainly due to lower by-product crack margins, despite an increase in base oil crack margins. 

Luberef’s shares closed the session at SR98.70, down 0.20 percent. 

Dr. Sulaiman Al Habib Medical Services Group has announced its interim financial results for the period ending March 31. According to a Tadawul statement, the firm posted a net profit of SR557.01 million in the first quarter of 2025, marking a 1.09 percent increase compared to the same quarter in 2024. The growth was primarily driven by higher revenue, although fixed operating costs from recent strategic expansions have temporarily weighed on profit margins. These expansions are still ramping up and are expected to gradually reach full operational efficiency. 

The company’s shares closed at SR289.00, down 2.15 percent. 

The National Agricultural Development Co. reported its consolidated financial results for the first quarter of 2025, posting a net profit of SR103.42 million for the period ending March 31 — a 2.06 percent rise compared to the year-earlier period.  

The increase was supported by higher revenue, reduced general and administrative expenses, stronger operating profit, and increased treasury income. These gains were partially offset by higher cost of sales, increased impairment losses on trade and other receivables, and a decline in finance costs. 

NADEC shares ended the session at SR22.20, down 1.54 percent. 

Saudi Basic Industries Corp. announced a net loss of SR1.21 billion for the first quarter of 2025, compared to a net profit of SR250 million in the same period last year. The loss was primarily due to a SR1.05 billion decline in gross profit, driven by higher feedstock prices and increased operating expenses. These included non-recurring costs of SR1.07 billion linked to a strategic restructuring initiative aimed at improving long-term performance and reducing costs. 

SABIC shares closed at SR60.70, down 2.77 percent.