Saudi Arabia leads regional VC activity with $412m in funding in H1: MAGNiTT  

Saudi Arabia leads regional VC activity with $412m in funding in H1: MAGNiTT  
Some 84 percent of total transactions came from early-stage investments. Shutterstock
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Updated 01 October 2024
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Saudi Arabia leads regional VC activity with $412m in funding in H1: MAGNiTT  

Saudi Arabia leads regional VC activity with $412m in funding in H1: MAGNiTT  

CAIRO: Saudi Arabia has maintained its lead in regional venture capital funding for the second consecutive year, securing $412 million in the first half of 2024, according to new data. 

The Kingdom retained its top position across the Middle East and North Africa region in terms of total venture capital investment for the period, despite a slight 7 percent year-on-year decline, as reported by data platform MAGNiTT. 

A significant portion of this funding, 32 percent, was attributed to a single $130 million deal involving Salla, marking the only mega-round in the region for 2024 so far.   

Deal flow activity experienced a slight 3 percent annual decline, placing Saudi Arabia as MENA’s second-most active country by transaction volume. The Kingdom now commands 30 percent of total deals, up from 25 percent in the first half of 2023. 

Furthermore, Saudi Arabia’s contribution to the region’s total funding increased from 38 percent in the first six months of 2023 to 54 percent in the first half of this year, demonstrating the country’s growing influence.  

In an interview with Arab News, Philip Bahoshy, CEO of MAGNiTT, highlighted the Kingdom’s robust ecosystem development despite the challenging economic environment.  

“Saudi Arabia continues to grow its underlying ecosystem even in the current economic environment. What was notable from the report this time was that despite total funding being almost flat, a key driver of its growth was an 84 percent year-on-year increase on non-mega deal funding,” Bahoshy stated.  

He also pointed out that while last year’s capital was driven by four mega deals, this year’s significant growth with only one such trade is highly positive.  

In terms of industry trends, fintech remained the most popular sector for investors by transaction volume, while e-commerce led in funding, with two of the top five deals in Saudi Arabia originating from this sector.   

Investor participation has been robust, with 72 entities backing Saudi-based startups, up from 62 in the same period last year.   

The share of international investors increased by 17 percentage points, capturing 28 percent of the total investors in Saudi Arabia’s VC space in 2024.  

Bahoshy attributed Saudi Arabia’s leading position to strong support from entities such as Saudi Venture Capital Co. and Jada Fund of Fund, alongside strategic policies from the Ministry of Communications and Information Technology aimed at driving investment into the Kingdom.   

He noted that 84 percent of total transactions came from early-stage investments, a rise from 82 percent, with series A transactions increasing to 14 percent from 10 percent.   

“As a result, accelerator programs and series A startups are able to capture capital not only from local investors but international investors,” Bahoshy said.   

Merger and acquisition transactions in Saudi Arabia were relatively muted with only two transactions so far in 2024, compared to four in the same period of 2023.   

Most of these transactions occurred in the first quarter of 2024, with none in the second quarter. However, Saudi Arabia ranked second in exit activity in the MENA region, after the UAE, reflecting a broader regional trend.  

Looking forward to the second half of 2024, Bahoshy indicated that the third quarter of the year tends to be slower for venture capital deployment across MENA due to seasonal factors, but the fourth quarter usually sees a surge in activity with numerous conferences and visits to the region.  

“If this coincides with post US elections, potential interest rates coming down, we can expect to have a very strong finish to the year in terms of both potential IPO listings, late-stage investments, and continuous development at the early stage of the funnel,” Bahoshy said.  

“The second half of the year historically always tends to be stronger than the first, which is positive not only for Saudi Arabia, but the wider MENA ecosystem,” he added.       

Saudi Arabia’s success in the venture capital arena is supported by both domestic initiatives and growing international interest.   

Bahoshy emphasized the long-term nature of these investments, stating, “A lot of initiatives are being done in Saudi Arabia to continue to attract not only startups but investors to the Kingdom.”  

“These are long tail investments into the activity that’s happening in venture, especially with many funds looking to set up as well as the importance of highlighting talent acquisition to the Kingdom,” he stated.


Saudi Arabia invests $3.6bn to expand Qurayyah power plant by 3.01 GW

Saudi Arabia invests $3.6bn to expand Qurayyah power plant by 3.01 GW
Updated 26 sec ago
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Saudi Arabia invests $3.6bn to expand Qurayyah power plant by 3.01 GW

Saudi Arabia invests $3.6bn to expand Qurayyah power plant by 3.01 GW

JEDDAH: Saudi Arabia is boosting its energy security with an SR13.4 billion ($3.57 billion) investment to expand the Qurayyah power plant, adding 3.01 gigawatts to meet growing demand and support economic growth.

Saudi Electricity Co. and ACWA Power have signed a power purchase agreement with Saudi Power Procurement Co., the Kingdom’s sole licensed electricity buyer, to expand Qurayyah Independent Power Plant. This facility is the largest combined-cycle gas-fired independent energy station in the world.

The initiative supports the Kingdom’s Vision 2030 by improving electricity generation efficiency, reducing costs, and diversifying energy sources to replace liquid fuels in the power sector. It aims to enhance reliability and sustainability through advanced combined-cycle gas turbine technology while reducing carbon emissions and promoting environmental conservation.

The project, overseen by the Ministry of Energy, aims to increase Saudi Arabia’s electricity capacity and efficiency by adding combined-cycle power plant units designed for future carbon capture. According to the principal buyer, the deal was signed with a consortium led by ACWA Power, SEC, and Hajji Abdullah Alireza & Co. Ltd., with SEC and ACWA Power each holding a 40 percent stake.

As one of the Kingdom’s largest power generation projects, it includes the financing, construction, ownership, and operation of a combined-cycle gas power plant, along with the development and transfer of a 380-kilovolt electrical substation, according to the Saudi Press Agency.

SEC is the largest electricity producer, transmitter, and distributor in the Middle East and North Africa, serving over 11 million customers.

ACWA Power — the world’s largest private desalination company — announced that on Feb. 19 it received a notice from the Al-Shuaiba 2 Solar PV Independent Power Plant project company, confirming that it has been granted the commercial operation certificate by the SPPC for the first, second and third groups, with a total capacity of 2,060 MW.

In a statement on Tadawul, the firm added that the initiative is now fully operational, noting that it owns a net stake of 35.01 percent share in the project company.

The body expects the financial impact to be reflected in the current year’s second quarter.


Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa
Updated 20 February 2025
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Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

RIYADH: A new cooperation agreement between the Ministry of Investment and Prince Ahmed bin Fahd bin Salman Center will see Saudi Arabia enhance its entrepreneurial ecosystem in the Al-Ahsa region.

The deal signed with the center, also known as Sana, focuses on attracting pioneering companies and innovators while fostering a business-friendly environment.

The Kingdom is increasingly being recognized for its growing enteprise-friendly landscape, securing third position in the 2023-2024 Global Entrepreneurship Monitor report.

The latest initiative, inked at the Al-Ahsa Forum 2025 in Al-Ahsa, also seeks to foster greater engagement with creative thinkers and business leaders through investment meetings and events, and will support the issuance of entrepreneurial licenses and provide access to essential services.

Moreover, the Sana agreement seeks to explore investment opportunities, encourage strategic partnerships, and promote investment alliances that enhance the competitiveness of the entrepreneurship sector in Saudi Arabia.

The new deal comes against a backdrop of venture capital pouring into the Kingdom, with the country retaining its position as the leading destination for such funds in the MENA region in 2024, raising $750 million, according to a report from regional venture platform MAGNiTT.

This marked the second consecutive year the Kingdom has led regional VC rankings. Saudi Arabia accounted for 40 percent of the total amount deployed in MENA, closing 178 deals, the most of any nation in the region.

Speaking to Arab News at at the LEAP 2025 Tech Conference held in February, Mohammed Al-Zubi —founder of Saudi venture capital firm Nama Ventures — explained that the nation is rapidly becoming a key player in the regional technology ecosystem and is emerging as the “center of gravity” for Middle East startups.

Al-Zubi believes Saudi Arabia’s support for the startup ecosystem is unmatched globally. Having spent time in Silicon Valley, London, and the Middle East, he argued that the Kingdom’s government-led initiatives are unparalleled.

According to the international policy advisory and research organization Startup Genome, Riyadh ranked among the top five startup ecosystems in the Middle East and North Africa in June, in collaboration with the Global Entrepreneurship Network.


King Salman approves Saudi riyal symbol

King Salman approves Saudi riyal symbol
Updated 20 February 2025
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King Salman approves Saudi riyal symbol

King Salman approves Saudi riyal symbol

RIYADH: King Salman on Thursday approved the official symbol for the Saudi riyal, marking the beginning of a new chapter in the Kingdom’s financial journey, as reported by the Saudi Press Agency.

Saudi Central Bank Gov. Ayman Al-Sayari expressed his gratitude to the nation’s leadership for launching the symbol, which he believes “reinforces Saudi Arabia’s financial identity both locally and globally.”

Al-Sayari further noted that this initiative underscores the growing international influence of the Saudi riyal, while also fostering a sense of national pride and cultural unity. He added that the newly designed symbol represents the Kingdom’s rich cultural heritage.

The symbol, which blends Arabic calligraphy with the name of the national currency, “riyal,” will be utilized in financial and commercial transactions both within the Kingdom and internationally.

The central bank governor also commended the collaborative efforts of all parties involved in the project, including the Ministry of Culture, the Ministry of Information, and the Saudi Standards, Metrology, and Quality Organization.


Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024

Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024
Updated 20 February 2025
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Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024

Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024
  • The company became the majority shareholder of Shell Pakistan Limited in November 2024
  • It has formed a partnership in Thar Coal Project following a win in Saindak mining project

ISLAMABAD: Saudi company Wafi Energy Pakistan Limited has announced its financial results for 2024, reporting a profit of Rs3.3 billion ($11.8 million), according to a statement from the group on Thursday.
Wafi Energy, an affiliate of the Asyad Group, became the majority shareholder of Shell Pakistan Limited (SPL) in November last year and now holds approximately 87.78% of the total issued share capital of SPL. However, the Shell brand will remain in Pakistan through retail and brand licensing agreements, with SPL as the exclusive brand licensee.
The financials of the company for the year ending December 2024 were announced by its board of directors.
“The company reported a profit after tax of Rs3.3 billion for 2024 compared to a profit of Rs5.8 billion [$20.7 million] in 2023,” the company said. “It is important to note that the 2023 results included a one-time income of PKR10.7 billion [$38.3 million] related to the waiver of Shell Group liabilities.”
The company highlighted that it increased its market share with Helix and Advance Lubricants and formed a partnership in the Thar Coal Project following a win in the Saindak Gold and Copper mining project.
“The mobility business also made significant strides, expanding its network by introducing 16 new sites and rebuilding nine existing ones,” the statement added. “The convenience retail business demonstrated strong growth, with a 28% year-on-year increase.”
SPL is one of the oldest multinationals in Pakistan, with a network of over 600 sites, countrywide storage facilities and a broad portfolio of global lubricant brands.
Shell has supported Pakistan’s development by providing energy for major projects like Mangla Dam and Kotri Barrage, powering Pakistan International Airlines’ first flights, expanding road infrastructure and fostering innovation among local entrepreneurs.


Oman, Saudi Arabia ink 3 agreements to strengthen trade ties 

Oman, Saudi Arabia ink 3 agreements to strengthen trade ties 
Updated 20 February 2025
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Oman, Saudi Arabia ink 3 agreements to strengthen trade ties 

Oman, Saudi Arabia ink 3 agreements to strengthen trade ties 

RIYADH: Oman and Saudi Arabia signed three agreements on trade, legal services, and manufacturing to strengthen economic cooperation and private sector collaboration. 

The deals, announced at the Omani-Saudi Business Forum in Muscat, include plans for a cloud-based warehouse and inventory management system, specialized legal consultations for the Omani market, and a gold and jewelry manufacturing facility in the country. 

This comes as economic ties between the two nations continue to grow, with bilateral trade reaching 2.18 billion Omani rials ($5.65 billion) by December and 1,496 Saudi-partnered companies operating in Oman. 

Omani Minister of Industry and Investment Promotion Qais bin Mohammed Al-Yousef highlighted this growth during the forum, emphasizing its role in enhancing bilateral cooperation. 

The event featured working papers from both sides, with Oman showcasing strategic projects and investment opportunities, while Saudi Arabia outlined its investment framework and industries that are driving economic diversification. 

Key sectors highlighted during the forum included real estate development, mining, and industry. Oil and gas, logistics, and health were also major focus areas. Additionally, information technology, finance, insurance, retail, and food security were emphasized. 

Faisal Abdullah Al-Rowas, chairman of the Oman Chamber of Commerce and Industry, underscored the forum’s role in unlocking new trade and investment opportunities. He noted that the Rub Al-Khali border checkpoint has significantly facilitated cross-border trade and investment flows. 

Discussions also focused on expanding export and import operations through the Rub Al-Khali port, as well as enhancing trade exchange and private sector cooperation, particularly in existing projects. 

Sheikh Ali bin Hamad Al-Kalbani, head of the Omani side of the business council, stressed that the body aims to strengthen communication between the private sector and government agencies in both countries. He highlighted its efforts to support mutual investments, address challenges faced by investors, and explore new opportunities. 

On the Saudi side, Nasser bin Saeed Al-Hajjri emphasized that cooperation between the two nations supports sustainable development and enhances investment opportunities across various sectors in line with Saudi Vision 2030 and Oman Vision 2040. 

During the forum, Oman presented several working papers and presentations on key goods, partnerships, and strategic projects between the two countries. Saudi Arabia, in turn, outlined its investment system and the vital sectors driving economic diversification.

On the sidelines of the event, business-to-business meetings were held to explore opportunities for joint investments and trade partnerships, as well as ways to enhance bilateral trade exchange.