Saudi Arabia’s real GDP rises by 1.3% in first quarter: GASTAT
Saudi Arabia’s real GDP rises by 1.3% in first quarter: GASTAT /node/2502471/business-economy
Saudi Arabia’s real GDP rises by 1.3% in first quarter: GASTAT
According to the General Authority for Statistics, this rise in real GDP was propelled by oil and non-oil activities which increased by 2.4 percent and 0.5 percent during the period, respectively. Shutterstock
Saudi Arabia’s real GDP rises by 1.3% in first quarter: GASTAT
Updated 12 May 2024
ARAB NEWS
RIYADH: Saudi Arabia’s real gross domestic product saw a 1.3 percent rise in the first three months of this year compared to the previous quarter, official data showed.
According to the General Authority for Statistics, this rise in real GDP was propelled by oil and non-oil activities which increased by 2.4 percent and 0.5 percent during the period, respectively.
On the other hand, government activities in the Kingdom witnessed a decline of 1 percent in the first quarter of this year, compared to the last quarter of 2023.
However, GASTAT revealed that Saudi Arabia’s real GDP decreased by 1.8 percent in the first quarter of 2024 compared to the same period of the preceding year.
The authority attributed this decline to a drop in oil activities, which decreased by 10.8 percent year-on-year in the first quarter. The fall in oil exports stemmed from the Kingdom’s decision to curtail crude output, in line with an agreement by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+.
In a bid to maintain market stability, Saudi Arabia decreased its oil output by 500,000 barrels per day in April 2023, a measure that has now been extended until December 2024.
Meanwhile, non-oil activities in the Kingdom witnessed a 2.8 percent year-on-year increase in the first quarter, with government activities experiencing a growth of 2 percent during the same period.
Strengthening the non-oil private sector is crucial for Saudi Arabia, as the Kingdom is steadily reducing its dependence on oil, aligned with the economic diversification efforts outlined in Vision 2030.
In March, another report released by GASTAT revealed that Saudi Arabia’s GDP decreased by 0.8 percent in 2023, compared to 2022.
On the other hand, the Kingdom’s non-oil activities demonstrated significant growth of 4.4 percent in 2023 compared to the previous year.
In 2023, the Kingdom’s government activities also witnessed a rise of 2.1 percent compared to 2022.
GASTAT releases International Trade report
On April 30, GASTAT also released its international trade report, which indicated that Saudi Arabia’s non-oil exports, including re-exports, declined 13.7 percent to SR272.37 billion ($72.62 billion) in 2023 compared to 2022.
The analysis revealed that the Kingdom’s overall merchandise exports also fell by 22.2 percent year-on-year in 2023 to SR1.2 trillion, driven by a 24.3 percent decrease in oil exports during the period.
Consequently, the percentage of oil exports out of total exports decreased to 77.3 percent in 2023 from 79.5 percent in 2022.
On the other hand, Saudi Arabia’s imports rose by 9 percent in 2023 to SR776 billion compared to the year-ago period.
The report also revealed that Saudi Arabia’s trade balance surplus stood at SR424 billion in 2023.
China was Saudi Arabia’s most important trading partner in 2023, with exports to the Asian nation amounting to SR199.3 billion or 16.6 percent of the total exports.
Japan and India closely followed China with $121.83 billion and 113.35 billion, respectively.
According to GASTAT, South Korea, the US, and the UAE, as well as Bahrain, Taiwan and Malaysia were the other countries that ranked in the top 10 destinations for Saudi Arabia’s exports.
On the other hand, imports from China to Saudi Arabia amounted to SR162.55 billion in 2023, followed by the US and the UAE with SR70.50 billion and SR50.05 billion, respectively.
India, Germany, and Japan, along with Switzerland, South Korea, and Italy, were the other countries that ranked in the top 10 countries for imports.
The report revealed that the Jeddah Islamic Port topped the list of terminals through which goods reached the Kingdom in 2023 at a value of SR227.38 billion, corresponding to 29.3 percent of the total imports.
Global financial leaders convene in Saudi Arabia to address emerging market risks
Updated 12 sec ago
MIGUEL HADCHITY
RIYADH: Sovereign debt risks, structural reforms, and trade policies take center stage as global financial leaders and policymakers convened in Saudi Arabia for the first AlUla Conference for Emerging Market Economies.
The high-profile summit comes amid ongoing economic turbulence, with leaders seeking solutions to enhance financial stability and resilience.
The two-day event, hosted by the Saudi Ministry of Finance in partnership with the International Monetary Fund, is being held from Feb. 16— 17 in AlUla. The historic site is fast becoming a venue for strategic economic dialogues, underscoring Saudi Arabia’s efforts to assert itself as a key player in shaping financial policies for developing economies.
The conference aligns with the Kingdom’s broader efforts to solidify its role as a hub for global economic dialogue and under Vision 2030, it continues to lead economic diversification initiatives, emphasizing collaboration and innovation to navigate global economic shifts.
Saudi Minister of Finance Mohammed Al-Jadaan highlighted the conference’s role in addressing common economic challenges and fostering a more inclusive and resilient global economy.
H.E. Minister of Finance @MAAljadaan stresses that multilateral cooperation is the most effective pathway for a stronger global economy for all nations. pic.twitter.com/ct5zpW9o8a
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
“Today, we will explore ways to address our shared challenges so we can build a stronger global economy that is durable and inclusive for all nations,” he said.
Al-Jadaan stressed the importance of international cooperation, adding: “There is no pathway more effective than broad multilateral cooperation, and that work starts with conversations like the ones we are having at this conference.”
One of the key challenges addressed during the opening ceremony was sovereign debt, which Al-Jadaan described as a threat to economic progress.
“Since we all share the benefits, we should also work together to address structural risks like sovereign debt, which threatens development gains,” he said, adding that innovative solutions, including improving global debt restructuring frameworks, are necessary.
IMF Managing Director Kristalina Georgieva echoed Al-Jadaan’s statements, emphasizing the importance of emerging markets in global economic stability. “You, the leaders in this room, have weathered the shocks of the past few years remarkably well, and your economies have delivered two-thirds of global growth,” she said.
Georgieva called for the need for agility and resilience in the face of economic uncertainty. “Emerging markets will need to be agile, adaptable, and resilient,” she added, pointing to key areas such as inflation, high debt, and structural reforms that require urgent attention to improve competitiveness and productivity.
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
She also praised Saudi Arabia’s leadership in establishing a dedicated space for emerging markets to discuss critical policy issues. “Minister Al-Jadaan not only identified a gap in terms of space for emerging markets to discuss policy issues of common interest, but he decided to close it,” she said.
She stressed the importance of mobilizing more resources for the IMF’s Poverty Reduction and Growth Trust. “The IMF needs more capacity to help vulnerable countries and to continue to adapt to evolving challenges.”
Looking ahead, Al-Jadaan called for global economic cooperation that benefits all stakeholders. “We should be laser-focused on improving the lives of our people.
“We must find common ground to serve the common good and seek win-win solutions, fostering productive cooperation between East and West, South and North, to create a positive spillover for our neighbors and trading partners.”
The conference is expected to generate actionable recommendations that will support emerging economies in enhancing financial stability and sustainable growth. Discussions will also explore how artificial intelligence and digital transformation can drive economic progress in developing economies.
Participants are set to discuss strategies for economic resilience, aiming to strengthen cooperation between emerging and advanced economies for a more equitable and sustainable future.
Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT
Housing rents rose 9.7% year on year, villa rental costs increased 7.7%
Furnishing and home equipment expenses witnessed a 2.4% year-on-year decline
Updated 16 February 2025
Nirmal Narayanan
RIYADH: Consumer prices in Saudi Arabia increased by 2 percent in January compared to the same month in 2024, primarily due to a rise in housing costs, official data showed.
According to a report by the General Authority for Statistics, housing rents in the Kingdom rose 9.7 percent year on year in January, while villa rental costs increased 7.7 percent.
The analysis said housing, water, electricity, gas, and other fuels saw a collective price increase of 8 percent.
Despite rising inflation rates globally, countries in the Middle East region have shown resilience against intensifying spending costs.
In December, the inflation rate in the UAE stood at 2.89 percent, 0.24 percent in Qatar, and 0.50 percent in Bahrain.
In October, a report by the World Bank projected that the Kingdom’s inflation level is expected to remain steady at 2.3 percent in 2025, lower than the Gulf Cooperation Council average.
“This increase (in housing prices) significantly impacted the continuation of the annual inflation rate for January 2025 due to the section’s weight, which amounted to 25.5 percent,” said GASTAT.
The release also detailed several additional shifts in consumer prices.
Food and beverage prices witnessed a moderate rise of 0.8 percent in January compared to the same month in the previous year. The rise in this section was attributed to an increase in the costs of vegetables, which rose by 5.6 percent.
Personal goods and services expenses increased by 3.3 percent, influenced by a 21.6 percent rise in jewelry prices.
Costs for restaurants and hotels rose by 0.8 percent year on year.
Furnishing and home equipment expenses witnessed a 2.4 percent year-on-year decline.
Prices for clothing and footwear decreased by 1.5 percent compared to the same month in the previous year, while transport expenses dropped by 1.9 percent.
Saudi Arabia’s consumer price remained stable compared to December, with the index recording a marginal increase of 0.3 percent.
According to GASTAT, housing rents increased by 0.3 percent compared to December, while food and beverage prices rose by 0.3 percent.
Transportation prices increased by 0.5 percent compared to December, while costs of clothing and footwear rose by 0.1 percent.
Prices for communication decreased by 0.3 percent month on month, while expenses for education declined by 0.1 percent.
The prices of restaurants and hotels showed no significant change compared to the previous month.
Wholesale Price Index
In a separate report, GASTAT said the Kigndom’s Wholesale Price Index rose by 0.9 percent in January compared to the same month of the previous year.
The authority revealed that the rise was attributed to a 1.5 percent increase in the prices of other transportable goods and a 4.6 percent boost in the costs of agriculture and fishery products.
Meanwhile, the prices of food products, beverages, tobacco, and textiles decreased by 0.3 percent year on year.
The prices of metal products, machinery, and equipment also declined by 0.2 percent compared to January last year.
In contrast to December, Saudi Arabia’s wholesale price index increased by 1.7 percent.
GASTAT said this rise was due to a 4.1 percent price boost in other transportable goods, excluding mineral products.
The cost of metal goods, machinery, and equipment decreased by 0.2 percent month on month, while the price of ores and minerals declined by 0.1 percent.
Agricultural and fishery products stabilized, and no relative change was recorded in January compared to December.
Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals
Surge largely attributed to the robust growth of the Saudi economy, driven by Vision 2030 projects
Updated 15 February 2025
Dayan Abou Tine
RIYADH: Expatriate remittances from Saudi Arabia surged to SR144.2 billion ($38.45 billion) in 2024, a 14 percent increase over the preceding year, according to recent data.
Figures from the Saudi Central Bank, also known as SAMA, revealed that this figure is the highest in three years. In December alone, non-Saudi transfers totaled SR14.02 billion, a 31.7 percent increase on the same month last year.
Remittances sent abroad by Saudi citizens reached a two-year high in 2024, totaling SR68.61 billion — a 10.74 percent increase compared with 2023, according to SAMA data.
In December, these transfers surged to their highest monthly value in more than seven years, reaching SR7.66 billion.
Thamer Al-Harbi, an expert on remittances, told Arab News that this significant surge can be largely attributed to the robust growth of the Saudi economy, driven by Vision 2030 projects.
He flagged up the “high demands to get (laborers) from different levels and skills and from many parts in the world,” adding that the statistics underline an increase in non-Saudi workers.
As these projects continue to expand, they require skilled and unskilled workers from all over the world, leading to a significant increase in the foreign workforce.
He also explained that expatriates sending money “to their loved ones” during the holiday season largely drove the 31.7 percent annual surge in December.
Reflecting on how economic and regulatory trends in Saudi Arabia and the recipient countries affect remittance fluctuations, he said: “It is playing a role. For example, the stability of their currency will reflect on remittance through banking channels as they trust the currency and they get a good rate.”
The expert said that the top destinations for remittances from Saudi Arabia align closely with the largest expatriate communities in the Kingdom.
FAST FACT
Remittances sent abroad by Saudi citizens reached a two-year high in 2024, totaling SR68.61 billion — a 10.74 percent increase compared with 2023, according to SAMA data.
Citing data from the General Authority for Statistics, he noted that the five largest expatriate groups in Saudi Arabia are from Bangladesh, India, Pakistan, Egypt, and the Philippines.
These same countries are among the primary recipients of remittances, particularly for person-to-person transfers. The strong presence of these communities, coupled with family obligations and economic ties, continues to drive significant money flows to these destinations.
“The fintech post-COVID played a role in easing the customer experience, speeding up the movement of money to global bank accounts, and saving time by allowing senders to use the service at home without visiting centers or waiting in long queues,” Al-Harbi added.
“Today, most of the apps even provide the service in different languages, which gives customers the confidence to do this by themselves,” he said.
To explain the surge in transfers by Saudis, Al-Harbi said that the Kingdom’s citizens usually transfer to relatives abroad in Europe or the US to pay for tuition and bills related to their properties.
Advances in blockchain technology and compliance solutions driven by artificial intelligence are enhancing the efficiency and security of cross-border transactions, according to a report by IBS Intelligence released in July. These innovations are crucial for improving financial inclusion and supporting the growth of the digital economy in the Middle East. Several fintech companies are driving this transformation, particularly in the realm of cross-border payments.
These include Careem Pay, a digital wallet service from the popular ride-hailing app, which facilitates peer-to-peer and bill payments, and international money transfers.
Other companies operating in this space are Mamo, a Dubai-based financial services company; PayMe, a fintech based in Egypt; and Saudi company urpay.
Al-Harbi said that, in general, the Kingdom offers lower transfer fees compared ith other GCC countries and regions such as Southeast Asia and Africa, particularly for major remittance corridors.
This can be attributed to the high volume of transactions and the presence of numerous remittance service providers, which create a competitive market and help keep costs relatively low for expatriates sending money abroad.
Al-Harbi said that economic and regulatory trends in Saudi Arabia and recipient countries play a crucial role in shaping remittance flows.
One key factor is currency stability. When a local currency is stable, expatriates are more likely to send money through official banking channels, because they trust that their funds will retain value and that they will receive favorable exchange rates.
Additionally, regulatory policies in Saudi Arabia and recipient nations influence remittance trends. Policies that allow smooth and secure money transfers encourage more transactions through formal channels, while stricter regulations or economic instability in recipient countries may push some expatriates to seek alternative methods.
Saudi Arabia to lead region’s initial public offerings in 2025 — EY
Firm says overall MENA region expected to witness the listing of 38 companies and 22 funds in 2025
Updated 16 February 2025
Nirmal Narayanan
RIYADH: The outlook for initial public offerings in the Middle East and North Africa region remains positive in 2025, with Saudi Arabia leading the market with 27 potential listings, according to an analysis.
In its latest report, professional services network firm EY said the overall MENA region was expected to witness the listing of 38 companies and 22 funds in 2025, across a variety of sectors. Three listings are in the pipeline of the exchanges in the UAE, while Qatar is expected to witness one IPO.
This comes as the Gulf Cooperation Council region has emerged as a hotspot for IPOs in recent years, fueled by robust economic reforms, diversification efforts away from oil dependence, and growing interest from both regional and international investors.
“The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike,” said Gregory Hughes, EY MENA IPO and transaction diligence leader.
According to the analysis, Panda Retail Co. and Riyad Capital from Saudi Arabia, as well as Etihad Airways and Amanat Holdings from the UAE, are the notable companies considering an IPO in 2025.
Outside the GCC region, Egypt has announced five IPOs for 2025, while Algeria has two businesses intending to list.
In December, the Egyptian Cabinet announced plans to accelerate the government offerings program procedures in 2025 to maximize the private sector’s economic role and attract more investments.
The move from the government aligns with the nation’s broader effort to expand the number of publicly traded companies and attract greater investment.
The EY report set out how ESG goals remain “a priority” in the Middle East, and this will have an impact on potential IPOs.
It cited a new law in the UAE, set to come into force in May, requiring companies to report carbon emissions and adopt decarbonization strategies — including renewable energy and carbon offsetting. It sets penalties for noncompliance and encourages research and development. It also promotes carbon trading through a dedicated registry.
“These measures align with the UAE’s 2050 net zero goals and are likely to influence IPO market dynamics, as companies prioritize sustainability to attract investors,” said the report.
The expected listings activity in the Gulf is in line with global forecasts, with the IPO market on track for a “strong performance” in 2025, according to EY.
“This is supported by a cautiously optimistic economic environment, increasingly accommodative monetary policies, heightened liquidity, valuation levels and investor confidence,” the report added.
The firm said that while there were challenges — particularly around fiscal and monetary policies, geopolitical tensions, artificial intelligence and digital transformation — they also “open the door to new opportunities.”
EY called on businesses to focus on adapting their strategies to align with shifting market demands and “leveraging IPOs as a platform to drive growth and innovation.”
MENA IPO activity in 2024
EY revealed that markets in the MENA region witnessed a total of 54 IPOs in 2024, representing a 12.5 percent rise compared to 2023.
These IPOs raised $12.6 billion in proceeds, also marking a 17.6 percent rise compared to the previous year.
The year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs such as Talabat Holding plc, OQ Exploration & Production and Lulu Retail Holdings that were listed during the last quarter of the year.
The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike.
Gregory Hughe, EY MENA IPO and transaction diligence leader
“The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market,” said Brad Watson, EY MENA strategy and transactions leader.
He added: “The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity.”
Earlier this month, a report released by the Kuwait Financial Center revealed that Saudi Arabia led the GCC IPO market in 2024, raising $4.1 billion through 42 listings, the highest number in the region.
According to that analysis, the GCC region saw an increase of 23 percent in IPO proceeds compared to 2023, reaching a total of $13.2 billion across 53 public offerings.
The EY report states that the MENA region witnessed 25 IPOs in the fourth quarter of 2024 raising $7.9 billion — a 32 percent increase in number and a 59.4 percent surge in proceeds compared to the same period in 2023.
Saudi Arabia dominated the region’s IPO activity with 17 of the listings, and the Kingdom also raised $1.2 billion in proceeds during the period.
Five IPOs took place on Saudi Arabia’s main market during the fourth quarter, raising proceeds worth $1.1 billion. The remaining 12 IPOs happened on the Kingdom’s parallel market Nomu, with proceeds valued at $119 million.
Arabian Mills for Food Products Co. and United International Holding Co. marked the highest proceeds in Saudi Arabia at $300 million each.
“The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46 percent of the total IPO activity in that year. Nomu listings accounted for 50 percent, indicating robust activity in the junior Saudi market,” said Hughes.
According to EY, Talabat Holding plc, which is listed on the Dubai Financial Market, raised the highest proceeds valued at $2 billion, contributing 25.8 percent of the overall number in the fourth quarter.
The Abu Dhabi Securities Exchange welcomed two IPOs in the fourth quarter, with proceeds valued at $2 billion.
In the ADX, Lulu Retail Holding raised $1.7 billion, followed by ADNH Catering at $235 million.
The Bahrain bourse witnessed the Al-Abraaj Restaurants Group IPO that raised $23.9 million.
Outside of the GCC region, there were two MENA IPOs in the fourth quarter: Compagnie Marocaine de Goutte a Goutte et de Pompage in Morocco and the United Bank in Egypt.
LEAP 2025 boosts KSA’s role as a regional hub for fintech, e-commerce
Updated 15 February 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s LEAP 2025 tech conference, held from Feb. 9 to 12, showcased the Kingdom’s growing startup ecosystem, with multiple funding rounds, acquisitions, and expansion plans announced during the event.
The conference, a key platform for innovation and investment, further cemented Saudi Arabia’s role as a regional hub for fintech, e-commerce, logistics, and emerging technologies.
Saudi Arabia-based contech startup BRKZ used the forum to announce the completion of a $17 million series A extension, which includes $8 million raised in March 2023 and $1 million in venture debt.
Investors in the round included Capifly, along with existing backers BECO Capital, Aramco’s Waed, and 9900 Capital, as well as Better Tomorrow Ventures, RZM Investment, and Class 5 Global.
MISY Ventures, Knollwood Investment Advisory, and Fluent Ventures are also among the supporters. Founded in 2023 by Ibrahim Manna, BRKZ is a B2B construction technology platform that connects suppliers and buyers while offering various delivery and payment options. The latest funding brings BRKZ’s total capital raised to $22.5 million.
Tabby doubles valuation to $3.3bn with a $160m round
Saudi Arabia-based fintech Tabby has secured $160 million in a series E funding round at a $3.3 billion valuation.
The round was led by existing investors Blue Pool Capital and Hassana Investment Company, with additional participation from STV and Wellington Management.
Founded in 2019 in the UAE by Hosam Arab, Tabby operates as a buy now, pay later platform, handling $10 billion in annualized transaction volumes.
Saudi-based fintech startup RasMal has closed a $4.8 million pre-series A investment round, led by Syndicate Element Holding Group. (Supplied)
The new funds will be used to accelerate the company’s expansion in financial services, including digital spending accounts, payments, cards, and money management tools.
The latest investment also strengthens Tabby’s planned initial public offering. The company had previously raised $200 million in a series D round in October 2023.
Buildnow closes $9.7m to expand SME-focused construction financing
Saudi Arabia-based Buildnow has raised $9.7 million in a funding round led by STV and Arbah Capital, with additional financing coming from a mix of debt and equity.
Founded in 2022 by Hisham Al-Saleh, Rahat Dewan, and Abdulla Sheikh, Buildnow is a build now, pay later platform that supplies construction materials on flexible credit terms while paying small and medium enterprise suppliers upfront in cash.
The new capital will be used to scale its operations in the construction and building sector. In March last year, the company closed a $9.4 million seed round, comprising $6.5 million in equity and $2.9 million in debt financing.
Taager raises $6.75 million to expand social e-commerce in MENA
Social e-commerce platform Taager, which was founded in Egypt and is now headquartered in Saudi Arabia, has secured $6.75 million in a pre-series B round led by Norrsken22.
Launched in 2019 by Abdelrahman Sherief, Ahmed Ismail, Ismail Omar, and Mohammed El-Horishy, Taager helps entrepreneurs start and scale online businesses by offering product sourcing, storage, shipping, and customer payment solutions.
Operating in Saudi Arabia, Egypt, the UAE, and Iraq, the company aims to further expand across the Middle East with its new funding.
In 2021, Taager raised $6.4 million in a seed round led by 4DX Ventures, Raed Ventures, and other investors.
RasMal raises $4.8m to enhance digital cap table management
Saudi-based fintech startup RasMal has closed a $4.8 million pre-series A investment round, led by Syndicate Element Holding Group.
Founded in 2019 by Basil Al-Kuraya and Nasser Al-Tamimi, RasMal offers digital solutions for private companies to automate cap table management, fundraising, and equity transfers.
The company also supports investors and private funds in streamlining investment processes. The new funding will be used to introduce new tools and services to further enhance fundraising and equity management for its clients.
Waad Investment secures backing from Oman’s ITHCA Group
Saudi-based Waad Investment has announced an investment from ITHCA Group, an entity created by Oman Investment Authority in 2019.
The deal aims to strengthen telecom, IT, and venture capital collaboration between Saudi and Omani companies, supporting the Kingdom’s Vision 2030 and the sultanate’s Vision 2040.
Saudi-based Waad Investment has announced an investment from ITHCA Group.
PIESHIP secures $2.1m seed round for logistics expansion
Logistics startup PIESHIP raised $2.1 million in a seed round led by Nama Ventures, with participation from SEEDRA Ventures and angel investors.
Founded in Saudi Arabia in 2023 by Nasser Al-Harthi, Musaed Al-Amri, and Mohammed Mohsen, PIESHIP provides warehouse management solutions, last-mile delivery services, and logistics technology.
The investment will support the company’s growth in the Saudi market. The startup previously secured an undisclosed pre-seed investment from Nama Ventures and SEEDRA Ventures.
LAHINT raises $1m to expand automated government services
LAHINT, a Saudi-based e-services platform, has raised $1 million in a pre-seed funding round from undisclosed investors.
Founded in 2023 by Ahmed Saber and Mohamed Ibrahim, LAHINT provides automated government services for both individuals and businesses.
The company plans to expand its service offerings and introduce AI-powered eligibility consultations. Last year, LAHINT raised $267,000 in an earlier pre-seed round.
Mush Social acquires Pubbles to expand virtual communities
Social media platform Mush Social has acquired Pubbles, a social media app operating in the Kingdom, to enhance its user base and digital presence.
Founded in Saudi Arabia in 2022 by Abdulhadi Al-Asmi, Mush Social enables users to earn points and own virtual assets through its interactive map feature.
Pubbles, launched in 2020, specializes in virtual communities and interactive technologies. In November 2024, Mush Social secured a $1.2 million pre-seed round led by Nifal Consulting.
Salla acquires Sweply, rebrands it as Salla Ads
Saudi e-commerce Software-as-a-Service provider Salla has acquired Sweply, a digital advertising platform, as part of its strategy to integrate advertising solutions into its ecosystem.
Founded in 2016 by Nawaf Hariri and Salman Butt, Salla enables merchants to set up online stores quickly.
Sweply, launched in 2021 by Ebrahim Saeed and Wael Hassan, specializes in automated digital advertising.
Following the acquisition, Sweply will be rebranded as “Salla Ads.” In March, Salla raised $130 million in a pre-IPO round led by Investcorp, Sanabil Investment, and STV.
Foodics acquires UK-based Solo Venture, invests in three startups
Saudi Arabia-based Foodics has acquired UK-based Solo Venture, a provider of self-ordering kiosks and online ordering solutions, as part of its strategy to enhance its restaurant and payments technology ecosystem.
Founded in 2014 by Ahmad Al-Zaini and Mosab Al-Othmani, Foodics offers a point-of-sale and restaurant management platform for dine-in restaurants, food trucks, and cloud kitchens.
Alongside the acquisition, Foodics has invested in Norma, a Greek AI-powered data analytics firm; Add, an accounting system for small businesses; and Arzaq Plus, a supply chain platform using AI and smart logistics to optimize sourcing and reduce waste.
Foodics also plans to introduce a buy now, pay later feature for restaurant bills, improving cash flow management.
Unipal raises pre-series A funding to expand in Saudi Arabia
Bahrain-born education tech startup Unipal has closed its pre-series A funding round, led by Plus VC with participation from Al Jazira Capital, RZM Investments, Falak Angels, and Doha Tech Angels.
Founded in 2020 by Ali Al-Alawi and Ali Al-Shaer, Unipal provides discounts and special offers to university students via its platform.
The funding will support Unipal’s expansion into Jeddah, Madinah, Dammam, and Khobar and the launch of its new AI-driven app.
T2 acquires majority stake in fintech platform Moola
Saudi tech services provider T2 has acquired a majority stake in Moola, a Saudi expense management platform, to enter the fintech sector.
Founded in 2022 by Waseem Hammoud, Moola provides corporate business cards and financial automation tools. T2 serves over 12,000 clients with software and business intelligence solutions.
Raenest secures $11m series A for African expansion
Raenest, a multi-currency accounts platform for African businesses, has closed an $11 million series A led by QED Investors, with backing from Norrsken22, Ventures Platform, P1 Ventures, and Seedstars.
The funding will help Raenest expand in Nigeria, Kenya, the US, and Egypt, while growing Geegpay, its payment solution for Africa’s gig economy.
MENA startup funding reaches $863m in January
The MENA startup ecosystem raised $863 million in January, across 63 funding rounds, though $768 million came from debt financing. When excluding debt, the investment level was similar to January 2024, according to Wamda’s monthly report.
Saudi Arabia dominated regional funding, securing $839.5 million across 21 deals, with Lendo and Forus debt rounds accounting for $750 million.
The UAE followed with $14.6 million across 15 deals, while Egyptian startups raised $6 million from seven transactions. Other MENA countries collectively raised less than $2.5 million.
The fintech sector led with $776.6 million across 11 deals, largely due to Lendo and Forus’ financings. Property tech attracted $38.7 million, while e-commerce startups secured $30 million across five rounds.
