Saudi startup ecosystem takes a giant LEAP

Saudi startup ecosystem takes a giant LEAP
Several new venture capital funds were set to launch, it was announced during LEAP 2024, Kingdom’s highly attended startup and technology event. (Supplied)
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Updated 09 March 2024
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Saudi startup ecosystem takes a giant LEAP

Saudi startup ecosystem takes a giant LEAP
  • Investcorp’s $500m fund will support growth-stage ventures in Kingdom

RIYADH: Saudi Arabia’s entrepreneurship scene witnessed a transformative surge in investment activity at LEAP 2024 – the Kingdom’s highly-attended startup and technology event.

Several new venture capital funds are set to launch, it was announced at the Riyadh-based gathering, aiming to energize various sectors within Saudi Arabia and the broader Middle East and North Africa region.  

Investcorp is spearheading this initiative with a $500 million fund dedicated to supporting growth-stage ventures in Saudi Arabia, bolstered by a $35 million investment from Saudi Venture Capital.  

Concurrently, Oasis Capital is preparing to introduce a $100 million fund focusing on early-stage international ventures. 

In the gaming and esports sector, the Saudi Esports Federation, in collaboration with the Social Development Bank and the National Technology Development Program, will unveil two funds under its Gaming and Esports Sector Financing Program.  

Furthermore, Saudi venture capital firms Merak Capital and Impact46 announced $80 million and $40 million funds, respectively. 

Plug and Play Tech Center is also entering the scene with a pioneering $50 million fund aimed at nurturing software and tech ventures in Saudi Arabia and the MENA region.  

Meanwhile, Takamol Ventures announced a $53 million venture capital fund at LEAP, targeting early-stage tech companies to fuel innovation. 

Fahad Al-Hussain, partner at US-based Seedford Partners, announced during a panel session that the firm is planning to launch a $100 million to $150 million space fund targeting international and local ventures in the sector. 

Moreover, Bahrain-based investment management firm Arcapita Capital closed its $500 million Saudi Logistics Fund III. 

Lastly, Unifonic is set to launch a $15 million fund focusing on software as a service and business-to-business startups in MENA, Pakistan, and Turkiye, signifying a broadening of investment horizons across the region.

Saudi Arabia’s Salla raises $130m pre-IPO round

Saudi Arabia’s SaaS sector is receiving a significant boost as Salla secured a $130 million pre-initial public offering investment by Investcorp and saw participation from Sanabil Investment and STV. 

Established in 2016 by Nawaf Hariri and Salman Butt, Salla has been at the forefront of empowering merchants by enabling them to establish their e-commerce online shops swiftly, often within hours.  

The funding was channeled through the Investcorp Saudi Pre-IPO Growth Fund LP, a strategic initiative designed to infuse equity growth capital into a diverse portfolio of companies primarily located in Saudi Arabia.  

“This investment propels us forward in our ongoing mission to open opportunities and empower individuals, SMEs, and enterprises to start and expand their businesses both within and beyond Saudi Arabia. We are committed to delivering innovative, customer-centric solutions that simplify and enhance the e-commerce experience for our merchants,” Hariri said.

UAE’s HRtech RemotePass closes $5.5m in a series A round

UAE-based HRtech startup RemotePass has successfully closed a $5.5 million series A funding round, with 212 VC leading the investment.  

The round also saw contributions from an array of prominent investors including Endeavor Catalyst, Khwarizmi Ventures, and Oraseya Capital, as well as Flyer One Ventures, Access Bridge Ventures, A15, and the Swiss Founders Fund. 

Founded in 2020 by Kamal Reggad and Karim Nadi, RemotePass specializes in offering businesses the ability to seamlessly onboard, manage, and compensate their workforce, particularly in regions where they may not have a local legal entity.  

Following its undisclosed pre-series A round in 2021, led by BECO Capital and supported by Wamda, Khawarizmi VC, and Flat6Labs, as well as Wealth Well, and a syndicate of Saudi investors, RemotePass is setting its sights on the Kingdom’s market.  

Saudi-based proptech Buildnow closes $9.4m seed funding

Saudi Arabia’s Buildnow secured $9.4 million in seed funding, comprising both equity, amounting to $6.5 million, and debt, totaling $2.9 million.  

Raed Ventures and Khwarizmi Ventures took the lead in this funding round, which also saw significant participation from international venture capitalists and influential local angel investors, including Abdulla Elyas, the co-founder of Careem. 

SPEEDREAD

• Oasis Capital is preparing to introduce a $100 million fund focusing on early-stage international ventures.

• In the gaming and esports sector, the Saudi Esports Federation will unveil two funds under its Gaming and Esports Sector Financing Program.

• Saudi venture capital firms Merak Capital and Impact46 announced $80 million and $40 million funds, respectively.

• Plug and Play Tech Center is also entering the scene with a pioneering $50 million fund aimed at nurturing software and tech ventures in the region.

• Takamol Ventures announced a $53 million venture capital fund at LEAP, targeting early-stage tech companies to fuel innovation.

Launched in 2022 by Hisham Al Saleh, Rahat Dewan, and Abdulla Sheikh, Buildnow introduces a build-now-pay-later model that significantly benefits the construction industry.  

The platform facilitates material procurement on credit for buyers, simultaneously ensuring upfront cash payments to SME suppliers, thus streamlining the supply chain and financial operations in the construction sector. 

The fresh influx of capital is set to catalyze Buildnow’s growth trajectory. The funds are earmarked for attracting and hiring top-tier global talent to bolster the Buildnow team, positioning the startup for expansion.

Saudi-based BRKZ secures $8m series A round

Saudi Arabia’s BRKZ has secured an $8 million series A co-led by 9900 and BECO Capital, with participation from Aramco’s Wa’ed Ventures, Knollwood Investment Advisory, RZM Investment, and MISY Ventures.  

Founded in 2022 by Ibrahim Manna, BRKZ is a B2B contech that provides a large selection of suppliers and materials through its platform, as well as multiple delivery and payment options. 

BRKZ will use the new funding to expand its footprint across Saudi Arabia and beyond.

Saudi fintech startup Rabeh Financial closed $800k seed round 

Saudi fintech Rabeh Financial closed a $800,000 seed investment round in collaboration with Mjalis Investment Co. and several angel investors, bringing the company’s valuation to $8 million. 

Founded in 2022 by Mohammed Al-Salmi and a group of advisors, Rabeh Financial aims to improve the experience of trading ownership and knowledge by allowing investors and entrepreneurs to discuss and assess investment ideas using AI and data analysis technology. 

With the new funds, Rabeh plans to increase its presence both inside and outside of the Kingdom.

KSA’s RasMal acquires Pentugram 

Saudi Arabia’s equity management platform RasMal has acquired UAE’s Pentugram to expand its offering into private capital investment management solutions, for an undisclosed value. 

Through the acquisition, Pentugram’s clientele will gain access to RasMal’s services, while RasMal will leverage the platform to provide investors and fund managers with solutions.

KSA’s Zetta Technologies raises $1.5m  

Saudi Arabia’s Zetta Technologies closed a $1.5 million pre-seed funding round from CoreVision. 

The company offers tech services as a subscription with a flexible payment plan, enabling large organizations and companies to benefit from their devices.


Cairo-Jeddah named second-busiest international air route for 2024

Cairo-Jeddah named second-busiest international air route for 2024
Updated 32 min 8 sec ago
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Cairo-Jeddah named second-busiest international air route for 2024

Cairo-Jeddah named second-busiest international air route for 2024
  • Airline capacity on this route has surged by 14% compared to 2023, and has increased by 62% compared to 2019
  • Expansion contributes to Saudi Arabia’s target of attracting 150 million visitors annually by the end of the decade

RIYADH: The Cairo-Jeddah air route has been ranked as the second-busiest international flight corridor in 2024, with approximately 5.5 million available seats, according to a new report.

The analysis, conducted by global travel data provider the Official Airline Guide, revealed that airline capacity on this route has surged by 14 percent compared to 2023, and has increased by 62 percent compared to 2019.

This growth is aligned with Saudi Arabia’s broader efforts to enhance its aviation sector, which is a key part of its Vision 2030 strategy.

These efforts include strengthening the country’s airlines, logistics services, cargo infrastructure, and other support industries to boost tourism and make the Kingdom a global aviation hub.

The expansion also contributes to Saudi Arabia’s target of attracting 150 million visitors annually by the end of the decade.

John Grant, chief analyst at OAG, attributed the rapid growth of the Cairo-Jeddah route to significant investments under Vision 2030, as well as longstanding ties between the two cities, which have historically seen high volumes of worker traffic and, more recently, increased business activity in consultancy and services.

He also noted that the easing of travel restrictions for entry into Saudi Arabia and the rise of low-cost carriers have contributed to the route’s growth.

The report also highlights a 19.1 percent capacity gap between the second and first-place routes. Hong Kong-Taipei holds the title of the world’s busiest international route in 2024, with 6.8 million available seats.

The Seoul Incheon-Tokyo Narita route ranks third with 5.4 million seats, just 58,818 seats behind Cairo-Jeddah, while Kuala Lumpur-Singapore Changi follows closely in fourth place with 5.4 million seats, only 28,293 behind third.

The Bangkok-Hong Kong route has made a significant leap into the Top 10 Busiest International Routes for 2024, ranking seventh with 4.2 million seats. This marks a 29 percent increase in capacity compared to 2023, although it still lags 13 percent behind the 2019 levels.

Asia dominates the top 10, with seven of the busiest routes located in the region. Other notable routes include New York JFK to London Heathrow and two Middle Eastern routes: Cairo-Jeddah and Dubai-Riyadh. The Jeddah-Riyadh route has also seen impressive growth, with capacity increasing by 10 percent in 2024 compared to the previous year.

These trends highlight the growing demand for air travel in and out of the Middle East, particularly in Saudi Arabia, which continues to make strides toward achieving its ambitious goals under Vision 2030.


King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024

King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024
Updated 50 min 46 sec ago
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King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024

King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024
  • Airport set new daily records for the number of passengers, surpassing 50,000 in a single day
  • Saudi Arabia’s civil aviation sector experienced a 17% annual surge to 62 million passengers in the first half of 2024

JEDDAH: Saudi Arabia’s King Fahd International Airport reported a 15 percent annual increase in passenger traffic in 2024, reaching 12 million, according to official statistics.

Dammam Airports Co, the managing and developing firm of the facility, reported that the Eastern Province-based airport achieved this milestone between January and mid-December, adding that it handled over 99,000 flights during the same period, reflecting a 5 percent growth compared to 2023.

The airport also set new daily records for the number of passengers, surpassing 50,000 in a single day, a new peak for daily traffic since it started operations.

On June 13, the airport reached a record daily air traffic volume, with 374 flights operated on the day, according to the report by the Saudi Press Agency.

This aligns with the Kingdom’s aviation goals, including tripling annual passenger numbers to 330 million, expanding connectivity to over 250 destinations from its 29 airports, and increasing air freight capacity to 4.5 million tons of cargo annually by 2030.

Breaking the 12 million passengers record is part of the series of successes accomplished by the KFIA’s operating and managing company, aligning with the goals of the National Transport and Logistics Strategy, represented by the National Aviation Strategy.

Saudi Arabia’s civil aviation sector experienced a 17 percent annual surge to 62 million passengers in the first half of 2024, amidst increasing domestic and international travel demand.

According to official statements the General Authority of Civil Aviation issued in July, the period also saw 446,000 flights, reflecting a 12 percent increase compared to 2023. Additionally, air cargo traffic through the Kingdom’s airports rose by 41 percent, reaching 606,000 tons during the same period.

King Khalid International Airport in Riyadh led the growth, handling 17.7 million passengers, a 21 percent year-on-year increase, and 132,000 flights, marking a 15 percent rise from the previous year.

Jeddah’s King Abdulaziz International Airport recorded 24 million passengers, a 16 percent increase, and 148,000 flights, showing a 13 percent rise compared to 2023.


Saudi Arabia’s crude production climbs to 8.97m bpd in October: JODI 

Saudi Arabia’s crude production climbs to 8.97m bpd in October: JODI 
Updated 49 min 17 sec ago
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Saudi Arabia’s crude production climbs to 8.97m bpd in October: JODI 

Saudi Arabia’s crude production climbs to 8.97m bpd in October: JODI 
  • Report noted a 5.91% drop in crude exports, which fell to 5.92 million bpd
  • Refinery crude exports surged 35% year on year to 1.41 million bpd in October

RIYADH: Saudi Arabia’s crude oil production rose to 8.97 million barrels per day in October, a 0.36 percent increase year on year, according to the latest data from the Joint Organizations Data Initiative. 

The report noted a 5.91 percent drop in crude exports, which fell to 5.92 million bpd. Domestic petroleum demand also declined by 96,000 bpd year on year, reaching 2.49 million bpd. 

Refinery crude exports surged 35 percent year on year to 1.41 million bpd in October but declined by 9 percent, or 139,000 bpd, compared to September. 

Key refined products included diesel, motor gasoline, aviation gasoline, and fuel oil. Diesel exports accounted for 46 percent of refined product shipments, while motor and aviation gasoline made up 20 percent, and fuel oil comprised 13 percent. Notably, gas diesel shipments rose 43 percent to 641,000 bpd in October. 

Saudi Arabia’s refinery output reached 2.74 million bpd, a 29 percent year-on-year increase, with diesel representing 45 percent of total refined products, followed by motor and aviation gasoline at 25 percent and fuel oil at 17 percent. 

OPEC+ recently extended its supply cuts — initially implemented to stabilize the market — by an additional three months, pushing them through March 2025.  

These voluntary cuts, amounting to 2.2 million bpd, will be phased out gradually between April 2025 and September 2026, with room for adjustments based on market conditions.  

The alliance, which includes major producers such as Saudi Arabia and Russia, is withholding 5.86 million bpd, roughly 5.7 percent of global demand, as part of measures introduced since 2022.  

The agreement, made during the 38th OPEC and non-OPEC Ministerial Meeting, also allows the UAE to increase output by 300,000 bpd starting in April 2025.  

Despite these efforts, Brent crude prices have remained steady, trading between $70 and $80 this year.  

Direct crude usage 

Saudi Arabia’s direct crude oil burn fell by 169,000 bpd in October to 362,000 bpd, a 32 percent year-on-year decline and a 30.1 percent drop from September. This marks the lowest level in seven months, driven by seasonal demand shifts and structural changes in the Kingdom’s energy strategy. 

The reduction is largely attributed to cooler temperatures in October, which significantly decreased electricity demand, particularly in regions reliant on air conditioning during the summer. Additionally, improvements in the Kingdom’s electricity infrastructure have reduced reliance on crude oil as a backup energy source.  


Arab-China trade surges to $400bn, paving way for housing cooperation

Arab-China trade surges to $400bn, paving way for housing cooperation
Updated 46 min 30 sec ago
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Arab-China trade surges to $400bn, paving way for housing cooperation

Arab-China trade surges to $400bn, paving way for housing cooperation
  • China continues to draw global attention due to its economic reforms and growth
  • Arab-China Ministerial Meeting on Housing and Urban Development aims to lay the groundwork for a strategic partnership that will benefit both sides

RIYADH: Trade between Arab countries and China has surged by more than 1,000 percent over the past two decades, reaching approximately $400 billion in 2024, according to Ali bin Ibrahim Al-Maliki, assistant secretary-general of the Arab League.

Al-Maliki made the statement during the inaugural Arab-China Ministerial Meeting on Housing and Urban Development, held alongside the 41st session of the Arab Ministers of Housing Council in Algeria. The event aims to lay the groundwork for a strategic partnership that will benefit both sides, as reported by the Kuwait News Agency.

China, the world’s second-largest economy, continues to draw global attention due to its economic reforms and growth. In May, the China-Arab States Cooperation Forum in Beijing gathered leaders from Saudi Arabia, the UAE, and Egypt, culminating in the Beijing Declaration, which emphasized strengthening China-Arab cooperation and building a shared future.

“China has become the second-largest trading partner for Arab countries, with trade volume increasing from $36 billion in 2004 to nearly $400 billion in 2024,” Al-Maliki stated. He also highlighted the vital role of the housing and construction sectors in driving socioeconomic development and underscored the importance of China-Arab economic ties.

Al-Maliki stressed that the partnership between Arab states and China in the fields of construction and urban development could offer innovative, sustainable solutions to address global challenges, such as rapid population growth, climate change, and the need for sustainable resource management.

Algerian Housing Minister Mohamed Belaribi, who currently chairs the Arab Housing Ministers Council, described the meeting as a significant step toward forging high-level partnerships built on mutual benefit.

“Arab-Chinese relations have evolved since the 1950s, serving mutual interests and strengthening their positions regionally and globally,” Belaribi said.

He added that the meeting provided an opportunity to exchange expertise on key issues like housing sustainability, smart cities, earthquake-resistant construction, and urban renewal.

Chinese Minister of Housing and Urban-Rural Development, Ni Hong, emphasized the vast potential for enhanced cooperation between Arab countries and China in the construction and development sectors. “This opens the door for strengthened exchanges and marks the beginning of a new chapter in our collaborative efforts,” he said.

Ni also commended Arab countries for their achievements in urban development and expressed optimism for mutually beneficial outcomes.

He highlighted China’s ongoing commitment to forging stronger ties with Arab nations through initiatives such as signing memorandums of understanding and conducting seminars and training programs.

These developments align with China’s broader global strategy, particularly the Belt and Road Initiative, a major element of its international cooperation efforts.

Launched in 2013 by Chinese President Xi Jinping, the BRI aims to enhance global connectivity and foster cooperation in areas such as infrastructure, trade, finance, and cultural exchange, drawing inspiration from the ancient Silk Road.

Over the past decade, the BRI has expanded its scope to include over 150 countries and 30 international organizations, supporting projects ranging from railways and ports to green energy and digital infrastructure. The ongoing collaboration between China and Arab countries, particularly in the housing and construction sectors, reflects the growing strength and scope of the BRI’s global ambitions.


Saudi Arabia’s KACARE signs MoUs to propel energy innovation and empower women

Saudi Arabia’s KACARE signs MoUs to propel energy innovation and empower women
Updated 44 min 37 sec ago
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Saudi Arabia’s KACARE signs MoUs to propel energy innovation and empower women

Saudi Arabia’s KACARE signs MoUs to propel energy innovation and empower women
  • First MoU will focus on developing and localizing innovative technologies in the energy sector
  • Second deal signed with the Saudi Women and Energy Association will further reinforce the Kingdom’s commitment to empowering female workers

RIYADH: Saudi Arabia’s King Abdullah City for Atomic and Renewable Energy has signed new agreements to advance innovation, localize solutions, and empower women. 

The first memorandum of understanding, inked with King Saud University, will focus on developing and localizing innovative technologies in the energy sector, the Saudi Press Agency reported. 

The agreement also emphasizes building human capacity through training programs and the exchange of expertise, with a particular focus on technical and advisory services. 

This partnership supports Saudi Arabia’s Vision 2030, which aims to increase the Kingdom’s use of renewable energy and promote sustainability. 

It also aligns with Saudi Arabia’s goal of 50 percent of its electricity coming from renewable sources by the end of the decade.

In addition to these technological advancements, the MoU includes the development of educational programs and scholarships to help meet the growing demand for skilled professionals in the energy sector. 

The agreement also includes joint research initiatives in renewable energy, atomic energy, hydrogen technologies, and artificial intelligence applications within the energy field. This will provide valuable opportunities for students and researchers to contribute to the Kingdom’s energy transformation, the SPA report added.

KACARE also signed a second MoU with the Saudi Women and Energy Association, further reinforcing the Kingdom’s commitment to empowering female workers in the sector. 

This agreement focuses on launching comprehensive initiatives and programs aimed at supporting women to become leaders and innovators in energy. It includes training and development opportunities, such as the WE Spark program, which is dedicated to training women in renewable energy. 

This program is in partnership with King Abdullah University of Science and Technology and seeks to equip women with the skills necessary to excel in a rapidly evolving industry. 

The MoU also includes conducting studies to assess women’s participation in the energy sector. The research will identify key challenges and propose solutions to enhance women’s roles, ensuring equal opportunities in the workplace and supporting their development into leadership positions. 

In a further effort to empower women in the energy industry, KACARE signed another MoU with Princess Nourah University. This agreement aims to enhance female competencies in renewable energy through tailored training programs for female students pursuing engineering degrees. 

It also seeks to improve the capabilities of faculty members in providing specialized programs in solar energy, as well as upgrading infrastructure to support hydrogen production plants and solar photovoltaic energy projects.