Saudi Arabia in top 2 among G20 in ICT development for 2nd consecutive year
Updated 16 July 2024
Arab News
RIYADH: Saudi Arabia has maintained second place among G20 countries in a UN ICT Development Index, highlighting the resilience of the Kingdom’s digital infrastructure.
Published by the international organization’s International Telecommunication Union, the ranking tracks the digital development and progress of 170 nations in information and communication technology services through sub-indicators divided into two axes: inclusive and effective communication.
It also measures the strength of digital infrastructure, according to a statement.
The analysis also revealed that the Kingdom ranked first among the G20 countries in the effective communication axis and second in the inclusive communication axis, according to the Saudi Press Agency.
The Kingdom’s Communications, Space, and Technology Commission indicated that Saudi Arabia’s continuous advancement in the index underscores the robustness of its digital infrastructure and its role in propelling the growth and expansion of the digital economy and attracting investment, the SPA report noted.
This comes as the Kingdom’s communication and technology market is the largest and fastest growing in the Middle East and North Africa region, with an estimated value of SR166 billion ($44.2 billion).
Moreover, the rate of mobile subscriptions in Saudi Arabia has surpassed 198 percent of the population, while the average monthly data consumption per citizen is three times higher than the global average.
In May, a report from Saudi Arabia’s Digital Government Authority revealed that the country witnessed a 20 percent year-on-year increase in government spending on information and communications technology in 2023, reaching SR41.87 billion.
The study released at the time indicated that the increase in spending has contributed to enhancing the efficiency of digital government services and improving the experience of beneficiaries.
Additionally, the analysis highlighted at the time that the investment had a positive impact on the digital economy, marking a milestone in the Kingdom’s transformation journey.
“ICT spending is one of the supporting factors for innovative and flexible solutions that we aspire to provide to all citizens and residents of Saudi Arabia, ensuring the effectiveness of the immense human wealth that populates the country and achieving a high quality of life,” Faisal bin Ahmed Bakhshwin, deputy minister for digital transformation at the Ministry of Human Resource and Social Development said at the time.
Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy
Updated 7 sec ago
Reem Walid
RIYADH: As Saudi Arabia embarks on an ambitious journey toward a thriving economy, the nation is uniquely positioned to harmonize the conservation of its rich cultural heritage with the development of vibrant business opportunities.
The Kingdom is committed to various initiatives, such as cultural tourism projects and the revival of artisanal craftsmanship, which not only safeguard its diverse cultural tapestry but also drive economic growth.
This approach showcases the symbiotic relationship between tradition and innovation, demonstrating how honoring cultural heritage can foster sustainable development and enhance Saudi Arabia's global influence.
Under the Vision 2030’s Quality of Life Program, the nation is transforming with rapid developments in the cultural sector among others.
This comes as the cultural sector is expected to contribute more than $47.9 billion to the Kingdom’s gross domestic product by 2030.
In the Quality of Life Program 2023 annual report, Saudi Crown Prince Mohammed bin Salman said that the Kingdom is striving to cultivate a deep sense of pride in the nation and actively contribute to global development and progress, across economic, environmental, cultural, and intellectual dimensions.
The report further revealed that in 2023, the Ministry of Culture targeted 108,010 employees in the Saudi cultural sector, but recorded 216,878 workers during the year, reflecting an achievement rate of 201 percent.
The Kingdom also aimed for nine Saudi participants in international cultural events, but actually witnessed 32.
When it comes to the number of cultural events days, Saudi Arabia was targeting 2,093 in 2023 but recorded 3,934 – reflecting an achievement rate of 188 percent.
As for the number of cultural facilities, the Kingdom was aiming for 41 in 2023 but achieved 45.
Cultural tourism’s contribution to economic development
Cultural tourism has been essential in diversifying the Kingdom's economy by boosting local hospitality, retail, and service industries, while also enhancing Saudi Arabia's global standing in cultural diplomacy.
“The revitalization of cultural landmarks such as AlUla, Diriyah, and UNESCO-listed sites has significantly enhanced Saudi Arabia’s international appeal, repositioning the Kingdom as a global destination not only for religious pilgrimage but also for its rich history, arts, and traditions,” Patrick Samaha, partner at Public Sector at Kearney Middle East & Africa told Arab News.
“With 30 million international tourists visiting in 2023, the influx has boosted local businesses in hospitality, retail, and services, generating new jobs, particularly in regions where tourism was previously underdeveloped,” Samaha added.
The Kearney partner went on to add that the Kingdom’s active participation in cultural diplomacy has resulted in stronger global relationships and a growing international appreciation for its rich heritage.
“This is reflected in the government’s significant investment in cultural landmarks, which will further open opportunities for hosting international events, forums, and conferences. Without a doubt, Saudi Arabia is well on its way to becoming a leader in cultural tourism,” he said.
There is no doubt that the Kingdom is working to diversify its economy by attracting visitors to explore its diverse landscape and rich cultural heritage.
Tamer El-Leisi, consulting partner at PwC Middle East told Arab News that the Kingdom has reported the highest growth among G20 countries in 2024, gaining international recognition, fostering cross-cultural understanding as well as enhancing the country's global image as an open and welcoming destination.
“It has also supported the preservation of historical sites and provided income opportunities for local artisans,” he added.
Tamer El-Leisi, consulting partner at PwC Middle East. (Supplied)
The PwC Middle East consulting partner said this work has a “profound impact” on economic growth, enhancing the labor market, and supporting local businesses.
“As cultural tourism grows, so does the demand for professionals in various sectors, such as hospitality, entertainment, and creative arts, which in turn boosts employment and economic growth,” El-Leisi added.
He highlighted that as a result of these efforts, the number of international and domestic tourists exceeded 100 million tourists in 2023, spending more than SR250 billion ($66.6 billion).
“These numbers have even increased during the first quarter of 2024 by 10 percent with an increase of around 17 percent in spending. By 2030, the tourism sector aims to account for over 10 percent of the country’s GDP,” he said.
As Saudi Arabia strives to become a global center for cultural tourism, building international partnerships with other nations, cultural institutions, and global organizations is crucial for success.
Balancing cultural heritage and business growth
The Saudi government has been crucial in safeguarding the Kingdom’s heritage while promoting an economically sustainable sector by supporting the heritage ecosystem, attracting private investment, and developing local talent.
According to Samaha, Saudi Arabia has recognized the importance of preserving its heritage at a time when it is embracing global cultural exchange, which is why heritage plays a central role in its Vision 2030.
“Rightfully so, key government initiatives have focused on boosting the socio-economic impact of heritage and the broader cultural sector, aiming to create a sustainable industry that appeals to younger generations. To achieve this, the Kingdom has developed a robust ecosystem, composed of both government and non-government entities, mandated to unlock the socio-economic potential of the sector and attract private investment,” the Kearney partner said.
He added: “For example, the creation of the Heritage Commission under the Ministry of Culture has enabled heritage sites to become catalysts for economic activity and offers various training programs to develop local talent in the heritage field.
Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at management consulting firm Arthur D. Little.
Samaha continued to note that the Royal Institute of Traditional Arts was established to nurture talent in local crafts and generate business opportunities for artists through incubators and apprenticeship programs.
“These are just two examples of the many impactful initiatives being implemented by the Saudi government,” he said.
Undoubtedly, the Kingdom has demonstrated a firm commitment to cultural heritage by employing innovative and forward-thinking strategies to safeguard and preserve it for future generations. Those efforts foster a strong connection between cultural preservation and economic development.
“This is evident in many ways. For instance, the rehabilitation, restoration and promotion of historic sites and cultural attractions is encouraging exploration of cultural sites. Meanwhile, an emphasis on cultural tourism is strengthening national identity, fostering unity and shared purpose among the population,” El-Leisi said.
He stressed that local communities are actively engaging with tourists, not only enriching visitors’ experiences but also supporting community development.
“Furthermore, investing in sustainable tourism practices is ensuring that the country's cultural heritage is preserved for future generations while minimizing the environmental impact of tourism activities. The Saudi government is focusing on responsible tourism, implementing green initiatives, and supporting eco-friendly businesses in the tourism sector,” the PwC partner added.
Preservation cultural heritage to attract investments
The preservation of Saudi Arabia’s cultural heritage plays a key role in attracting investment, fostering sustainable growth, and enhancing the Kingdom’s global standing, aligning with Vision 2030.
“By protecting heritage sites, especially those recognized by UNESCO, Saudi Arabia boosts tourism and diversifies its economy. Traditional crafts and cultural practices also stimulate the creative industries, drawing investment into cultural and luxury sectors,” Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at management consulting firm Arthur D. Little, told Arab News.
“Globally, these efforts enhance Saudi Arabia's cultural diplomacy and soft power, strengthening its influence in international affairs. Through these initiatives, the Kingdom builds a sustainable, diversified future while positioning itself as a cultural leader on the world stage,” Khan added.
Ongoing initiatives that effectively blend the preservation of cultural heritage
Saudi Arabia is effectively merging the protection of its cultural heritage with economic growth through important initiatives outlined in Vision 2030.
“AlUla is being transformed into a global tourist destination, preserving ancient tombs and relics while generating jobs and revenue through luxury tourism. Similarly, Diriyah, the historic birthplace of the Saudi state, is undergoing restoration, combining heritage conservation with commercial and luxury developments,” Khan said.
“The Red Sea Project focuses on eco-tourism, safeguarding both natural and cultural heritage while creating employment and diversifying the economy,” he added.
The Arthur D. Little partner went on to note that in Jeddah, the restoration of its UNESCO-listed historic district is boosting tourism through traditional markets and cultural festivals.
“These projects illustrate how Saudi Arabia is harmonizing tradition with modern business opportunities to foster sustainable growth. The region can further draw inspiration from countries like Japan and Morocco, which have successfully promoted their cultural heritage while reaping significant economic benefits from tourism and cultural industries,” Khan said.
Real estate becoming a cornerstone of Saudi Arabia’s economic diversification, experts say
Updated 10 min 26 sec ago
MIGUEL HADCHITY
RIYADH: Saudi Arabia’s real estate market has rapidly emerged as a key pillar in the Kingdom’s quest for long-term sustainability and economic growth, benefiting local residents and foreign investors alike, experts have told Arab News.
Under Vision 2030, the Kingdom is reshaping the sector through strategic investments, sweeping reforms, and mega-projects that are not only enhancing the nation’s infrastructure but also creating new opportunities.
A central objective of the initiative is to diversify Saudi Arabia’s economy by developing non-oil sectors, making it more resilient to global market fluctuations.
Real estate, as part of this strategy, is playing an increasingly important role in stimulating growth across the country, with tourism, entertainment, and the hospitality sector all assisting in reshaping the housing and commercial space landscape.
The Saudi government has enacted a series of reforms designed to enhance real estate development and attract private investment.
Key among these is the introduction of the Saudi Real Estate Refinance Co., established in 2017 to provide liquidity to the mortgage market and increase access to financing for homebuyers.
In an interview with Arab News, Sally Menassa, partner at international management consulting firm Arthur D. Little Middle East, said: “The Kingdom’s openness to foreign ownership in real estate, coupled with incentives for international companies, is expected to fuel increased FDI.”
Garvan McCarthy, chief investment officer at consulting firm Mercer, told Arab News the Vision 2030 goal of boosting private sector contributions has led to an increase in real estate activity.
“Reforms in regulations, such as easing foreign ownership restrictions and introducing public-private partnerships, have been undertaken to create a more attractive investment climate,” he added.
Another development is the introduction of the White Land Tax, which imposes a 2.5 percent tax on undeveloped residential land.
This is aimed at increasing the supply of developable areas and encouraging private sector investment in housing projects.
Additionally, government initiatives like Ejar, a rental services app, are enhancing transparency in the rental market and encouraging more investments in the tenancy sector.
Recent investments have been heavily directed toward urban development projects, including modern infrastructure such as roads, airports, and public transportation networks.
These investments are driving up property values in both urban and suburban areas, particularly in newly developed zones that are set to become key economic hubs.
Real estate as a catalyst for homeownership
Another core component of Vision 2030 is the government’s effort to raise homeownership rates among Saudi citizens to 70 percent by 2030.
In pursuit of this goal, Saudi Arabia has launched several initiatives aimed at providing affordable housing solutions and easing access to financing.
The Sakani program aims to make homeownership more attainable for Saudi families by providing financial support, facilitating loans, and subsidizing housing.
This initiative has significantly reduced barriers to homeownership, stimulating residential real estate development.
The residential real estate sector has been growing at a 4.5 percent compound annual growth rate since 2017, with projections indicating it will double by 2028, reaching SR51 billion ($13.5 billion), according to Menassa.
McCarthy added: “Since the introduction of these reforms, homeownership in Saudi Arabia has seen a substantial increase, driven by both governmental support and private sector development.”
The percentage of homeownership has exceeded 63 percent, up from 47 percent in 2016, reflecting the effectiveness of the Sakani program and other related initiatives.
Mega projects shaping the future of real estate
Several landmark real estate projects have become symbols of Vision 2030’s far-reaching impact. These projects are not only reshaping Saudi Arabia’s urban landscape but also positioning the Kingdom as a significant player in the global real estate market.
NEOM
Located in northwestern Saudi Arabia, NEOM is one of the most ambitious projects under Vision 2030. This multi-billion-dollar smart city aims to be a global hub for technology, sustainability, and innovation and provides opportunities for real estate development.
Menassa described NEOM as a “key aspect of this real estate transformation,” noting its role in the broader Vision 2030 agenda.
She pointed out that the development will incorporate smart city technologies, with a focus on industries such as energy, water, and biotechnology, as well as food, advanced manufacturing, and entertainment.
This forward-thinking approach is expected to attract both domestic and international real estate investors looking to capitalize on NEOM’s innovative urban vision.
Qiddiya
Qiddiya, another flagship project under Vision 2030, is positioned to become a global destination for entertainment, sports, and the arts. Situated near Riyadh, this expansive development will feature theme parks, concert venues, sports arenas, and cultural institutions.
The project’s focus on entertainment and tourism is expected to drive significant residential and commercial real estate development in the surrounding areas.
McCarthy added that Qiddiya is poised to transform the region into a vibrant entertainment capital, drawing millions of visitors annually and offering extensive opportunities for investors in hotels, commercial spaces, and residential properties.
The Red Sea
The Red Sea Project is one of the world’s most ambitious tourism initiatives, aiming to develop a luxury tourism destination along Saudi Arabia’s Red Sea coastline. Covering 28,000 sq. km, the project will include 50 hotels, 1,000 residential properties, and a host of leisure facilities.
Menassa pointed out that the project involves “developing real estate in the form of boutique hotels, museums, and cultural venues that enhance visitor experiences while respecting and preserving historical significance.”
This high-end tourism hub is expected to drive growth in the luxury residential and hospitality sectors, contributing significantly to Saudi Arabia’s tourism and real estate markets.
The future of Saudi real estate
As Saudi Arabia moves toward becoming a more diversified and sustainable economy, the real estate sector will continue to play a critical role in this transformation.
According to a report by King Abdullah Petroleum Studies and Research Center, Saudi Arabia’s economic diversification will lead to an increase in high-value industries such as advanced manufacturing, pharmaceuticals, and renewable energy, all of which will drive further demand for commercial real estate.
Menassa observed that the Kingdom’s commercial real estate market size is estimated to grow “at a strong CAGR of around 8.6 percent to 2028.”
McCarthy added: “As Saudi Arabia diversifies into advanced manufacturing, renewable energy, and pharmaceuticals, commercial real estate should benefit from the demand for specialized facilities.”
Moreover, as sectors such as tourism, entertainment, and retail flourish under Vision 2030, demand for hospitality and retail spaces is expected to rise substantially.
The ongoing transformation is positioning Saudi Arabia as a key player in the global real estate and tourism industries, with Riyadh at the heart of its ambitious vision.
Saudi bank loans reach highest growth rate in 19 months, surpassing $761bn
Updated 08 November 2024
Dayan Abou Tine
RIYADH: Saudi bank loans reached SR2.85 trillion ($760.84 billion) in September, representing an annual growth rate of 12.16 percent — the highest in 19 months, according to recent data.
Figures from the Saudi Central Bank, also known as SAMA, showed that corporate lending dominated the sector, making up around 53.5 percent, with individual loans comprising the remaining figure.
The former category grew by 15.75 percent, outpacing the 8.3 percent annual growth in personal loans, underscoring the increasing demand for business financing across key sectors.
Real estate activities led corporate lending, accounting for 20.37 percent of all business loans and growing by 28.63 percent to reach SR310.83 billion.
The wholesale and retail trade sector followed, constituting 13.07 percent of these loans, with SR199.45 billion in financing. Lending to manufacturing came third, making up 11.78 percent, totaling SR179.83 billion.
Loans to the electricity, gas, and water supply sectors accounted for 11.25 percent of total lending, amounting to SR171.62 billion. This category experienced a growth rate of 29.35 percent.
While professional, scientific, and technical activities represented a small portion of total corporate loans at just 0.63 percent, they posted the highest annual growth rate of 79.6 percent, amounting to SR9.69 billion.
In September, Saudi banks’ loans-to-deposits ratio slightly declined to 79.66 percent, down from 79.71 percent in the same month of 2023, as per data from the SAMA.
The calculation includes loans minus provisions and commissions, providing a clearer view of actual lending capacity.
SAMA has set a regulatory limit of 90 percent for loans-to-deposits ratios, balancing banks’ lending capacity with liquidity stability while supporting economic growth through corporate and individual borrowing.
Compared to other GCC nations, such as the UAE where loans-to-deposits ratios can exceed 100 percent, SAMA’s cap reflects a more cautious approach, prioritizing liquidity stability in the banking sector.
Corporate real estate lending in Saudi Arabia has surged as banks align with Vision 2030’s targets for urban expansion, economic diversification, and investment attraction.
This focus on real estate as the largest component of corporate lending is supported by robust demand for infrastructure, from commercial and residential developments to giga-projects like NEOM and the Red Sea.
Riyadh is a key beneficiary, attracting regional and international companies, which has increased the need for high-quality office spaces.
The office market in the Saudi capital has seen a boost from the Regional Headquarters Program, drawing numerous global companies seeking a central base in the Middle East.
The government’s recent regulatory advancements are also pivotal in driving this lending trend. With improved transparency and a structured land registry, investors and developers now have greater confidence in the market.
The General Authority for Statistics recently reported a 2.6 percent annual rise in the real estate price index in the third quarter of this year, highlighting demand for residential and commercial spaces.
Major cities like Jeddah and Riyadh have seen considerable price increases in both land and building categories, driven by strong demand across residential, office, and mixed-use spaces.
The Real Estate General Authority anticipates that Saudi Arabia’s property market, one of the Middle East’s fastest-growing sectors, will reach a market volume of $69.51 billion in 2024 and $101.62 billion by 2029, with a projected compound annual growth rate of 8 percent.
Catalyzing growth in sectors under Vision 2030
Saudi Arabia’s scientific, professional, and technical services sector is driven by a rapid expansion of research, development, and innovation.
The launch of the Saudi Minds Platform by the Research, Development, and Innovation Authority in October is playing a key role in this shift.
This platform creates an advanced digital environment to support the RDI ecosystem, providing resources to researchers, innovators, and institutions.
By promoting knowledge exchange, international collaboration, and access to funding, the platform fosters a thriving scientific landscape, which, in turn, stimulates demand for financial services, driving lending growth in this sector.
As Saudi Arabia intensifies its efforts toward Vision 2030, investments in innovation and technology are expected to continue to fuel further growth in the RDI-driven economic landscape.
Startup Wrap – Saudi VC space continues to play pivotal role in SMEs growth as Biban 24 delivers deals
Updated 08 November 2024
Nour El-Shaeri
RIYADH: Saudi Arabia’s venture capital ecosystem continues to boost the regional startup space, with one company plowing $20 million into the early stage-focused Booster IV fund.
Saudi Venture Capital Co. announced it was pouring the money into the fund, which is managed by Beco Capital and focuses on investments across the Gulf region.
Booster IV aims to support high-growth or disruptive startups, targeting companies from the seed stage up to series A.
The fund’s investment strategy spans various sectors with a strong emphasis on Saudi Arabia and the broader Gulf region, and currently oversees $495 million in assets across four funds.
“Our investment in Booster IV, managed by Beco Capital, aligns with our fund investment program and our strategy to support funds that back early stage startups in Saudi Arabia,” said Nabeel Koshak, CEO and board member of SVC.
Established in 2018, SVC is a subsidiary of the SME Bank, part of Saudi Arabia’s National Development Fund.
The company is dedicated to stimulating and sustaining financing for startups and small and medium-sized enterprises, supporting them from the pre-seed stage up to pre-IPO through funding and co-investments in high-potential startups.
Saudi’s BIM Ventures and Japan’s SBI Holdings launch $2bn-targeted BIM Capital
Supplied.
Saudi Arabia-based venture studio BIM Ventures and Japan’s SBI Holdings have launched a joint venture aiming to drive growth across Saudi Arabia and the broader Middle East.
BIM Capital’s investment strategy spans private equity, venture capital, debt funds, and real estate development, with a target of attracting over $200 million in foreign direct investment and managing assets exceeding $2 billion.
The firm will leverage its expertise to identify high-growth sectors, with a particular emphasis on technology ventures, emerging industries, and real estate development, offering investors access to innovative, transformative opportunities.
Mush Social raises $1.2m in pre-seed funding led by Nifal Consulting
Saudi-based Mush Social has closed a $1.2 million pre-seed funding round led by Nifal Consulting, with support from Nahr Al-Jazeera Holding and angel investors.
Founded in 2022 by Abdulhadi Al-Asmi, Mush Social operates a social platform where users can earn points and own virtual assets through its interactive map feature, potentially monetizing their online interactions.
The funds will support the development of advanced technologies to enhance user value from their engagements on the platform.
Ayen acquires Egyptian contech Elmawkaa in seven-figure deal
The deal will see Ayen integrate Elmawkaa’s construction materials marketplace into its property evaluation platform. Supplied
Saudi property tech company Ayen has acquired Egyptian construction technology firm Elmawkaa in a seven-figure Saudi riyal transaction.
Founded in 2018 by Abdulrahman Al-Mulqi, Ali Al-Mohsen, and Aymen Al-Sarory, Ayen provides data-driven property evaluation solutions.
The acquisition will integrate Elmawkaa’s construction materials marketplace into Ayen’s platform, strengthening its market position across the Gulf Cooperation Council region.
Elmawkaa, established in 2017, offers a digital marketplace for competitive quotations on building materials, aimed at streamlining procurement for construction companies.
Aramco Ventures backs IOTA Software’s $10.4m series A2 round
Aramco Ventures has joined a $10.4 million Series A2 funding round for IOTA Software, a cloud-native platform for industrial performance optimization, led by Altira Group with participation from Oxy Technology Ventures and Second Avenue Partners.
The funds will enable IOTA to expand its engineering, product, and customer success teams, enhance its technology infrastructure, and strengthen marketing efforts. IOTA’s platform aggregates business and operations data to aid decision-making across industrial sectors.
Warburg AI secures $250k in seed funding for financial AI solutions
UAE-based Warburg AI has raised $250,000 in seed funding from undisclosed investors.
Founded in 2024 by Ben Pfeffer, Lancelot De Briey, and Madiyar Ismagulov, Warburg AI develops adaptive artificial intelligence and machine learning tools for financial institutions, with a focus on algorithmic trading, real-time risk management, and asset optimization.
The capital will be directed toward product development and expansion of its customer solutions team.
Brands.io raises seed funding to expand AI-focused domain services
UAE’s Brands.io, an AI-driven domain name provider, has raised an undisclosed amount in seed funding from unnamed investors.
Founded in 2024 by Chetan Gera, Brands.io offers customized domain names tailored for AI companies.
The investment will fuel platform development, add technical features, and support the company’s expansion into Europe, the Middle East, and Africa, with a strong focus on strengthening its GCC presence.
NorthLadder raises $10m in series B for expansion in pre-owned electronics market
NorthLadder aims to capitalize on the increasing demand in the expanding pre-owned smartphone market. Supplied
UAE-based NorthLadder, a trade-in platform for pre-owned electronics, has raised $10 million in a Series B funding round led by stc Group’s corporate venture capital arm, tali ventures, with additional contributions from the Dutch Founders Fund and Crescent Ventures.
Founded in 2021 by Mihin Shah and Sandeep Shetty, NorthLadder offers a secure platform for reselling pre-owned devices, addressing growing demand in this sector.
With the new capital, NorthLadder plans to enhance its technology and expand its presence, particularly in Europe.
CE-Ventures co-leads $10m funding round for CrossBridge Bio’s cancer therapies
UAE-based CE-Ventures, the corporate venture capital arm of Crescent Enterprises, has co-led a $10 million funding round for CrossBridge Bio, a Houston-based biotech firm focused on developing dual-payload antibody drug conjugates for targeted cancer treatments.
The round also included participation from TMC Venture Fund, Portal Innovations, Alexandria Ventures, and several pre-seed investors.
The investment will support the advancement of CrossBridge Bio’s lead candidate, CBB-120, which targets solid tumors.
Additionally, the funding will enable the company to expand its pipeline of dual-payload ADCs and further develop its proprietary linker technology, which it claims could bring a new level of precision to cancer therapy.
Saudi Arabia’s signature startup event Biban 24 sees deals to support SMEs
Biban 24, Saudi Arabia’s premier event for startups and SMEs, saw over $5 billion in agreements and financing initiatives signed during the first three days.
Organized by the General Authority for Small and Medium Enterprises, or Monsha’at, the Riyadh-based forum secured more than 40 agreements and numerous financing portfolios aimed at bolstering Saudi Arabia’s SME sector in alignment with Vision 2030 goals.
These deals, amounting to more than SR18 billion ($4.79 billion) on the first day, SR1.35 billion on the second, and SR580 million on day three, included partnerships with leading Saudi banks, international memoranda of understanding, and investment opportunities designed to enhance access to funding and expand support networks for SMEs.
The event, themed “A Global Destination for Opportunities,” underscores Monsha’at’s commitment to creating a conducive environment for SMEs to thrive, positioning them as key drivers of economic diversification.
Saudi Central Bank lowers benchmark rate by 25 bps following US Fed decision
Updated 08 November 2024
Dayan Abou Tine
RIYADH: Saudi Arabia’s central bank has implemented its second interest rate reduction of 2024, lowering the benchmark by 25 basis points to 5.25 percent.
This adjustment mirrors the recent US Federal Reserve decision, which also cut rates by the same amount to a target of 4.5 - 4.75 percent.
In a statement, the central bank – also known as SAMA – said: “In light of global developments, and in accordance with the Central Bank’s objective of maintaining monetary stability, it has decided to reduce the Repurchase Agreement rate by 25 basis points to 5.25 percent, and the Reverse Repurchase Agreement rate by 25 basis points to 4.75 percent.”
Unlike the higher September cut of 50 basis points, this move is a strategic recalibration of monetary policy, aimed at easing high borrowing costs that have been sustained to combat inflation over the past two years.
Gulf Cooperation Council central banks align interest rates with the US Federal Reserve due to their currency pegs to the dollar, despite having stable inflation rates.
Both the UAE and Bahrain reduced rates by 25 basis points, while Qatar opted for a slightly larger 30-point cut.
Kuwait, however, took a different approach. Its central bank, which pegs its currency to a basket, rather than exclusively to the dollar, lowered rates by 25 basis points in September to 4 percent but did not announce further cuts in November as of date.
Over the past two years, the US Federal Reserve has aggressively tightened its monetary policy to tackle inflation, driving up interest rates in an effort to bring prices down.
Although inflation has made progress toward the Fed’s 2 percent target, it remains slightly elevated, and high costs persist for consumers.
The labor market has shown signs of cooling, with unemployment inching up but still at low levels. The Fed’s ongoing challenge is balancing inflation control with the need to maintain a healthy, resilient job market.
The decision to cut interest rates could have far-reaching implications for the GCC, particularly for Saudi Arabia’s economy.
The Kingdom’s non-oil sectors, already a key focus under Vision 2030, stand to benefit significantly from the influx of cheaper credit.
Sectors such as construction, real estate, and services, which have seen substantial growth, are expected to experience further acceleration.
Lower borrowing costs could spur investments in infrastructure and technology, both vital to the Kingdom’s diversification away from oil.
Corporate lending is also expected to see a boost, with businesses, especially in capital-intensive industries like real estate, poised to take advantage of more affordable financing.
This could translate into more ambitious expansion plans, particularly for projects aligned with Vision 2030 goals, such as NEOM and the Red Sea Project.
The real estate market in particular could see a further surge as cheaper credit fuels demand for housing.
Riyadh’s growing population and influx of expatriates are likely to drive this trend, with lower interest rates making mortgages more affordable.
