Saudi online marketplace Soum closes $18m in a series A funding round  

Led by Jahez, the financing deal saw participation from Isometry Capital, along with continued support from existing investors Khwarizmi Ventures, Alrajhi Partners, and Outliers Venture Capital.  
Led by Jahez, the financing deal saw participation from Isometry Capital, along with continued support from existing investors Khwarizmi Ventures, Alrajhi Partners, and Outliers Venture Capital.  
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Updated 21 December 2023
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Saudi online marketplace Soum closes $18m in a series A funding round  

Saudi online marketplace Soum closes $18m in a series A funding round  

RIYADH: Saudi-based online marketplace specializing in secondhand products Soum has announced the closure of an $18 million series A funding round.   

Led by Jahez, the financing deal saw participation from Isometry Capital, along with continued support from existing investors Khwarizmi Ventures, Alrajhi Partners, and Outliers Venture Capital.  

Founded by Fahad Al-Hassan, Bader Al-Mubarak, and Fahad Al-Bassam, Soum has experienced significant growth since its seed funding round last year.   

Al-Hassan said: “The success of this funding round is a testament to the dedication of our entire team. With the backing of the region’s leading investors, we are excited to kick-off our next stage of growth, while continuing on our mission to transform how customers buy and sell online.”  

The company claims that its sales have increased by 40 times, supported by strong unit economics and consistently high customer satisfaction scores.   

Having facilitated deliveries to and from over 150 cities across Saudi Arabia, Soum said it has established a national marketplace for buying, selling, and discovering products with trust and ease.  

Launched in 2021, the Soum app has already surpassed 4 million downloads in Saudi Arabia and is gaining momentum in the UAE, according to a press release.  

The funding is set to fuel Soum’s regional expansion and diversification beyond its primary focus on secondhand electronics.   

Soum plans to introduce a range of high-value categories for secondhand products, from collectibles to automobiles, aiming to tap into a combined market worth $40 billion. 


IMF projects 4% growth rebound in Middle East and North Africa next year

IMF projects 4% growth rebound in Middle East and North Africa next year
Updated 15 sec ago
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IMF projects 4% growth rebound in Middle East and North Africa next year

IMF projects 4% growth rebound in Middle East and North Africa next year

DUBAI: Growth in the Middle East and North Africa region is expected to rebound to 4 percent next year, but will hinge on a phase out of oil production cuts and headwinds subsiding, including from conflicts, the International Monetary Fund said on Thursday.

Growth in the region will remain “sluggish” at 2.1 percent in 2024, according to the IMF’s latest Regional Economic Outlook, launched in Dubai, lower than earlier projections as geopolitical and macroeconomic factors weigh.

The IMF cautioned that risks to the outlook for the whole region, including the Caucasus and Central Asia, “remain tilted to the downside,” and called for an acceleration of structural reforms, including in governance and labor markets, to lift prospects for medium term growth.

For 2024, the MENA growth estimate has been revised downwards by 0.6 percent from April’s report, mainly due to the extension of the Israel-Hamas conflict and further extensions of OPEC+ voluntary oil production cuts, Jihad Azour, the IMF’s director for the Middle East and Central Asia department, said in an interview.

He added that the “good news” was that inflation was gradually being brought under control across the region, and expected to average the 3 percent target rate in 2024, with the exception of Egypt, Iran and Sudan.

However, the outlook varies considerably across the region, with oil exporting countries expected to cope better with potential risks, supported by “strong” non-oil sector growth, Azour said.

Amid lower oil prices and lower oil production this year, non-oil growth in the Gulf Cooperation Council region has mostly outperformed overall growth as government led investment programs help drive domestic demand. Saudi Arabia, Kuwait, the UAE Qatar, Bahrain and Oman are part of the GCC.

Middle East and North Africa oil importers remain more vulnerable to ongoing conflicts and high financing needs.

“Even as these issues gradually abate, uncertainty remains high and structural gaps will likely hold back productivity growth in many economies over the forecast horizon,” the IMF report said.

The IMF has approved $13.4 billion in new funding to Middle East and Central Asian countries since January 2024, including for programs in Egypt, Jordan and Pakistan. 


Saudi Arabia could be next ‘Silicon Valley,’ experts say

Saudi Arabia could be next ‘Silicon Valley,’ experts say
Updated 12 min 40 sec ago
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Saudi Arabia could be next ‘Silicon Valley,’ experts say

Saudi Arabia could be next ‘Silicon Valley,’ experts say

RIYADH: Sentiments about Saudi Arabia becoming the next entrepreneurial hotspot are resonating as global venture capitalists gathered to discuss the region’s future. 

During a panel session at the Future Investment Initiative in Riyadh, industry leaders cited the Kingdom when asked which region is going to be the next Silicon Valley, as they drew comparisons between Saudi Arabia and the US.

“We’re really encouraged by what we’re seeing across the Middle East and North Africa region, especially in Saudi Arabia. The conditions here are very promising. We’ve seen similar patterns in the US over the last two decades, and, frankly, the world has become flat when it comes to entrepreneurship,” said Tony Florence, co-CEO at American-based venture capital firm NEA. 

During the panel, Florence emphasized that the Kingdom’s business environment is rapidly benefiting from the transformational journey of Vision 2030. 

“Over the next decade, I believe there will be rapid innovation and development in healthcare, tech, and AI (artificial intelligence). Saudi Arabia, in particular, is likely to be a net beneficiary of the trends we’ve been discussing over the past few days,” he added. 

Nabeel Koshak, CEO and board member of Saudi Venture Capital Co., echoed Florence’s remarks: “Many activities have evolved (in the startup sector). Actually, I’ve been part of this ecosystem building in Saudi Arabia since 2010 and it all trickles down to Vision 2030.” 

“Since the launch of Vision 2030, it was clear how important backing startups and SMEs was for job creation, developmental metrics and impact and commercial value,” Koshak added. 

He further said: “If we compared 2018 to 2023, it was only $60 million of deployed capital in 2018; it reached $1.4 billion in 2023, and that’s almost 21 multiple actually of the total amount deployed in Saudi Arabia.” 

He added that the Kingdom saw two venture-backed companies now planning to list on the public market, namely, Tamara and Tabby. 

“The exit landscape has also been improving significantly. We’ve seen nearly 100 M&A (mergers and acquisitions) and listing activities involving venture-backed companies across the MENA region. This momentum is attracting top-tier investors to Saudi Arabia, with major names like Wellington, Sequoia, General Atlantic, and TPG increasingly active in Saudi and across the broader MENA region,” he added. 

Sam Englebardt, founding general partner of New York-based VC firm Galaxy Interactive, also emphasized the Kingdom’s vast prospects. 

“Saudi Arabia has the potential to be a country with a large enough population to build and scale businesses domestically, supported by significant top-down backing. This extends across various industries, where the government’s ability to mandate changes and act swiftly creates substantial opportunities,” he said. 


Saudi economy minister highlights multiple factors reshaping investment landscape at FII8

Saudi economy minister highlights multiple factors reshaping investment landscape at FII8
Updated 37 min 5 sec ago
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Saudi economy minister highlights multiple factors reshaping investment landscape at FII8

Saudi economy minister highlights multiple factors reshaping investment landscape at FII8

RIYADH: The ongoing energy transition, the rise of artificial intelligence, and geopolitical tensions are reshaping the global investment landscape, according to a top minister. 

Speaking during the Future Investment Initiative in Riyadh on Oct. 31, Saudi Arabia’s Minister of Economy and Planning, Faisal Al-Ibrahim, said that the world needs efficiency-seeking investments to boost productivity and future growth. 

“Megatrends of the energy transition, artificial intelligence, and geoeconomic fragmentation are fundamentally reshaping the investment landscape. We can and must fulfill our shared responsibility to invest in the future and capture opportunities that come with these paradigm shifts,” said Al-Ibrahim. 

He added: “Today’s world calls for efficiency-seeking investments that can boost productivity and help the world to correct the low-growth, high-debt path that we as a global economy are currently sleepwalking alone.” 

According to the Saudi minister, mere investments do not materialize future growth, but the proper channelization of funds will bring better outputs. 

Al-Ibrahim also underscored the vitality of public-private partnerships to meet the investment demands for the future. 

“The public and the private sectors must evolve in parallel and together to become more aligned with the demands of our times. Investment alone does not drive growth. It is the starting point of prosperity and a catalyst for progress. But what matters is how and where we direct our investments,” said the minister. 

During his speech, Al-Ibrahim also highlighted Saudi Arabia’s achievements since the launch of Vision 2030 and added that the Kingdom’s non-oil sector is currently a significant contributor to economic development. 

“Since the launch of Saudi Vision 2030, our economy without oil has grown 20 percent. At the same time, we have witnessed a 70 percent increase in private investments in our non-oil sectors. For the first time in history, non-oil activities now make up 53 percent of our real gross domestic product,” he said. 

According to the minister, the Kingdom has opened the door to investments that infuse technology and innovation, and it has helped the nation to emerge as an investment powerhouse in the Middle East and North Africa region. 

Al-Ibrahim added that Saudi Arabia had implemented several regulatory reforms that have turned the Kingdom into a friendly investment destination for international entities. 

“What sets Saudi Arabia apart is not just we are the biggest economy in the Middle East. The world looks to Saudi Arabia for global solutions because we have long been a trusted and reliable partner. We have created a business environment that integrates innovation, provides more regulatory clarity, and offers practical solutions,” said the minister. 

He added: “Investors deploy their capital in Saudi Arabia with the confidence that they will get the results and returns. In the first half of 2024 alone, 184 global companies relocated their headquarters in the Kingdom. Investment licenses have risen by nearly 50 percent.” 

Speaking at FII8 on Oct. 29, Saudi Arabia’s Minister of Investment, Khalid Al-Falih, said the Kingdom 540 international companies have established their regional headquarters in Riyadh, meaning a 2030 target of 500 has already been surpassed.

Some prominent firms that opened their regional headquarters in the Kingdom include Northern Trust, Bechtel, and PepsiCo, as well as IHG Hotels and Resorts, PwC, and Deloitte. 

Through the regional HQ program, Saudi Arabia introduced new tax incentives for multinational companies moving their regional headquarters to the Kingdom. These incentives include a 30-year exemption on corporate income tax and withholding tax related to headquarters activities, alongside discounts and support services. 

In a separate panel discussion, Mohammed El-Kuwaiz, chairman of Saudi Arabia’s Capital Market Authority, said that the Kingdom is witnessing simultaneous growth in both the public market and private market, which includes venture capital firms. 

El-Kuwaiz added that Saudi Arabia seeks to attract $3 trillion of investments over the next few years to accomplish the Vision 2030 goals. 

“I imagine that the biggest wave of growth in Saudi Arabia is likely to come from the required pipeline of investments and financing needs. If you look at the quantum of investments required in Saudi from now to Vision 2030, estimates reach about $3 trillion. And that requires a lot of capital, both public and private capital at the same time,” said El-Kuwaiz. 

The CMA chief also highlighted that Saudi Arabia’s capital markets are becoming increasingly attractive to international investors. 

“In our case, the big story of the capital markets is both increase in the size as well as opening it up to international investment. International investment has moved from virtually nothing — five to six years ago to now slightly over SR400 billion ($106.50 billion), he added. 


Riyadh Air plans wide-body jet order next year: official

Riyadh Air plans wide-body jet order next year: official
Updated 49 min 13 sec ago
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Riyadh Air plans wide-body jet order next year: official

Riyadh Air plans wide-body jet order next year: official

RIYADH: Saudi Arabia’s new national airline, Riyadh Air, plans next year to order wide-body aircraft capable of seating more than 300 passengers, its chief financial officer told AFP on Thursday.

The order would be the third for the airline, which was created last year and plans to operate its first flights in the summer of 2025.

“We will do our third RFP (request for proposal) for an ultimate ultra wide body, which has in excess of 300 seats as well, but that will be next year,” Adam Boukadida said on the sidelines of the Future Investment Initiative investor forum in Riyadh, referring to the request for proposal procurement document.

“It could be Boeing, it could be Airbus. At the moment, we’re very happy having the relationship with both of these key suppliers.”

On Wednesday, Riyadh Air announced a multi-billion dollar deal to purchase 60 narrow-body Airbus A321neo aircraft from Airbus.

That brought the firm’s total aircraft orders to 132 after a deal inked last year with Boeing for 39 wide-body Dreamliner 787-9s, which seat just under 300 passengers, with options for 33 more jets.

Saudi Crown Prince Mohammed bin Salman sees aviation as a key component of his Vision 2030 reform agenda to remake the petroleum-dominated country, aiming to more than triple annual traffic to 330 million passengers by the end of the decade.

Riyadh Air expects to serve 100 routes by 2030 and more than 120 by 2035. 

Deliveries of the Airbus planes “will start from the second half of 2026 all the way out to 2030,” Boukadida said.

“This will bring us in excess of 130 aircraft before 2030, so we’re still on track for the second half of next year to commence operations to over 100 destinations by 2030.”

Also on Thursday, Riyadh Air announced the establishment of its first revolving credit facility of up to SR5 billion ($1.3 billion) involving eight financial institutions from Saudi Arabia and the Gulf region.

“This would help us fund our growth, but also provide a platform for us to grow up until 2030 to be an international player,” Boukadida said.


Rafal Real Estate set to redefine Riyadh’s urban landscape with 3,580 new apartments: CEO

Rafal Real Estate set to redefine Riyadh’s urban landscape with 3,580 new apartments: CEO
Updated 31 October 2024
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Rafal Real Estate set to redefine Riyadh’s urban landscape with 3,580 new apartments: CEO

Rafal Real Estate set to redefine Riyadh’s urban landscape with 3,580 new apartments: CEO

RIYADH: Saudi developer Rafal Real Estate Development Co. is poised to launch a major project in northern Riyadh, unveiling 3,580 residential apartments aimed at transforming the city’s urban landscape, the company’s CEO revealed. 

The Tilal Al-Khuzam development is a core part of Rafal’s collaboration with China’s Citigroup and is part of the Al-Khuzam master plan in partnership with the National Housing Co. 

“We are announcing next week the launch of a major development under the Khuzam masterplan,” said Elias Abou Samra during an interview with Arab News at the Future Investment Initiative in Riyadh. 

The project, situated near King Khalid International Airport and centered around Al-Khuzam Park, aims to introduce “urban living with a peaceful, quiet, green atmosphere” to Riyadh, creating a new model for the city’s residential environment. 

Abou Samra explained that Tilal Al-Khuzam, along with other projects in Rafal’s pipeline, supports a broader strategy to stabilize revenue streams in a cyclical real estate market. 

FII platform 

The CEO noted that FII has evolved into an influential platform for collaboration, bringing local and international stakeholders together. 

“FII has become a showcase for Saudi Arabia and a window to the world to show and demonstrate what we’ve been achieving,” he said. This year, he added, international interest has shifted from curiosity to active participation in the Kingdom’s growth story. 

For Rafal, FII has provided valuable networking opportunities, bringing a diversity of stakeholders together and opening up new avenues for growth. 

Abou Samra emphasized the role Rafal and other local developers play in this evolving landscape, saying: “I think it’s the mission of every local developer to open up and become a small platform for foreign investors.” 

Redefining co-living 

Rafal’s projects showcase an emphasis on international standards and adaptability to global real estate trends. Notably, the company’s Hive brand is redefining co-living in Riyadh through a partnership with a regional operator that initially launched Hive in Dubai. 

“We have already launched five assets across Riyadh,” said Abou Samra, adding that Hive’s plug-and-play model meets the needs of young Saudis and expats by fostering community and flexibility.

Over the next five years, Rafal anticipates launching five Hive projects annually, aiming for a gross development value of SR8 billion ($2.1 billion). 

Regarding the company’s IPO plans, Abou Samra noted that Rafal is adopting a measured approach, looking to establish stable revenue over the next three to five years. “Real estate is a cyclical market; usually, to go public, you need to have stable returns; hence the rental products that you are doing because it stabilizes our cash flows,” he said. 

The CEO added: “It’s better to IPO a company when you have more visibility and more stability with the developments that are happening in the market.” 

Rafal has been able to tap into a favorable financing environment in Saudi Arabia, where bank liquidity remains robust. Projects are primarily funded through off-plan sales. “The best thing to do when we have off-plan sales is that it’s basically free funding,” he added. 

Creating communities 

In line with Vision 2030, Rafal is focused on urban planning, helping to create vibrant communities that promote a modern, connected lifestyle. “It’s our duty as developers to feed the market with the proper supply; hence the projects that I mentioned,” Abou Samra said. 

Rafal intends to replace outdated infrastructure with projects that cater to the Kingdom’s fast-paced development, emphasizing that “this is a story of transformation within the city that is even more interesting than the typical supply-demand economics.” 

As for the residential community projects like Tilal Al-Khuzam, Abou Samra noted that the venture aligns with Saudi Arabia’s economic diversification goals, especially given the anticipated demand. 

With a gross development value of SR3 billion, this project complements other Rafal initiatives, collectively contributing to a SR6 billion project portfolio launched in 2024 alone. 

The growing demand for new residential spaces is evident in Rafal’s planned pipeline for Hive and Tilal Al-Khuzam, providing long-term value for the market. 

The transformation in the Kingdom’s real estate market, driven by Saudi Arabia’s Crown Prince Mohammed bin Salman’s vision to make Riyadh one of the world’s top city economies, will continue to attract investors and developers worldwide. “The market is shifting from a predominantly local market in every aspect to an international market,” Abou Samra said. 

The CEO affirmed that Riyadh’s progress under Vision 2030 is on track to meet these ambitious goals. “We are well on track for that,” he said, citing Rafal’s ability to meet both local and international demand for world-class residential properties.