Startup Wrap – MENA funding eases in August; recovery signs emerge in September 

Startup Wrap – MENA funding eases in August; recovery signs emerge in September 
Founded in Egypt in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap offers revenue-based and embedded finance solutions to help small and medium-sized enterprises scale up their inventory. Supplied
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Updated 15 September 2024
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Startup Wrap – MENA funding eases in August; recovery signs emerge in September 

Startup Wrap – MENA funding eases in August; recovery signs emerge in September 

RIYADH: Investments in the Middle East and North Africa eased in August, with total funding reaching $83 million across 30 rounds. 

This reflects a 76 percent drop from July’s $355 million and a 24 percent year-on-year decrease, according to Wamda and Digital Digest’s monthly report. 

Unlike previous months, August did not see any megadeals, with the largest round being UAE-based Yuze’s $30 million deal. Debt financing played a minimal role, accounting for only 3 percent of the total raised capital. 

The UAE once again led the region in startup investments, as 13 UAE-based startups raised $55.7 million. 

Saudi Arabia followed with $16 million secured across nine deals. Egypt, which had been a top performer in July, saw a sharp decline, raising just $7.6 million from four deals, while Kuwait made it to the top four with a single deal — Kem’s $3 million raise. 

Investor interest remained concentrated on fintech, which continued to be the most funded sector for the third consecutive month, raising $54 million across eight deals. Web3 also regained momentum, securing $13.5 million in three rounds, while food tech reappeared on the scene, raising $9 million through four deals. 

The month was dominated by early-stage funding, with two startups raising a total of $19 million in Series A rounds, and five startups raising $15.6 million in seed rounds. Seven startups did not disclose their funding stages, accounting for $35.4 million of the total investment. 

Business-to-business models remained highly attractive to investors, with 13 startups raising $46 million. Business-to-consumer models attracted $15 million across five rounds, while the remaining funds went to startups operating in both sectors. 

Female-led startups continued to face challenges in raising capital, securing just 0.3 percent of the total investment in August. Only one female-founded startup, Powder Beauty, raised an undisclosed pre-series A round, and another female co-founded startup received a $150,000 accelerator grant. 

The MENA entrepreneurial ecosystem also saw other notable developments in August, including the formation of the Waad Investment firm, a coalition of Gulf-based family offices targeting a $200 million fund, and a $100 million fund launched by Singapore-based Gate Ventures and the Blockchain Center in Abu Dhabi to promote Web3 innovation. 

In Egypt, T-Vencubator launched the “Where’s the Problem?” initiative to support the local startup ecosystem. 

On the mergers and acquisitions front, August saw the UAE-based property crowdfunding platform Maisour acquired by Meteora Developers, while Kuwait-based proptech Sakan acquired Qatari company Hapondo. 

FlapKap raises $34m in pre-series A round 

UAE-based fintech FlapKap raised $34 million in a pre-series A round consisting of both debt and equity financing. The round was led by BECO Capital, with additional participation from Pact VC, A15, Nclude, QED Investors, and debt financing from Channel Capital. 

Founded in Egypt in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap offers revenue-based and embedded finance solutions to help small and medium-sized enterprises scale up their inventory and digital ad spending with fast access to capital and the flexibility to pay later. 

The new capital will enable FlapKap to expand its SME financing services across the Gulf and the broader Middle East region. The company previously raised $3.6 million in a seed round, bringing its total funding to $37.6 million. 

Paymob raises $22m in series B extension 

Egypt-based fintech Paymob secured an additional $22 million in a series B extension round, bringing the company’s total Series B funding to $72 million. 

The round was led by EBRD Venture Capital, with participation from Endeavor Catalyst, as well as existing investors including PayPal Ventures, BII, FMO, A15, Nclude, and Helios Digital Ventures. 




Founded in 2015 by Islam Shawky, Alain El-Hajj, and Mostafa El-Menessy, Paymob provides digital payment solutions to both online and offline merchants.Supplied 

Founded in 2015 by Islam Shawky, Alain El-Hajj, and Mostafa El-Menessy, Paymob provides digital payment solutions to both online and offline merchants. The additional funding will help the company pursue its growth strategy across the MENA region. 

HissaTech secures $666k in pre-seed funding 

Saudi Arabia-based proptech HissaTech raised SR2.5 million ($666,164) in a pre-seed round led by undisclosed angel investors. 

Founded in 2024 by Ali Al-Shareef, HissaTech provides a platform that allows individuals to co-own properties, offering rental income and potential capital gains, making property investment more accessible to smaller investors. 

The company plans to use the funding to expand its customer base, enhance its digital platform, and build strategic partnerships within the property tech sector. 

Entlaq acquires stake in food tech Brotinni 

Egypt-based entrepreneurship support company Entlaq has acquired a stake in Brotinni, an Egyptian food tech startup, for an undisclosed amount. 

Founded in 2020 by Dalia Abu Omar, Brotinni operates as a dark store, providing customers with online access to meat and poultry products. 

The investment will support Brotinni’s plans to expand its operations both within Egypt and in regional markets. The company previously raised $600,000 in a seed round in 2022, led by Innlife Investments. 

IO Kitchens closes $2.8m seed round 

Oman-based cloud kitchen startup IO Kitchens has closed a $2.8 million seed round, led by Tanmia Small-Cap Fund, with additional backing from regional family offices and investors. 

Founded in 2021 by Hisham Hasan, IO Kitchens operates delivery-only cloud kitchens and manages a portfolio of over 30 food and beverage brands. The funding will allow the company to scale its operations across Oman. 

Oyster raises $59m, reaches $1.2bn valuation 

Lebanese-founded Oyster raised $59 million in its latest series D funding round, reaching a valuation of $1.2 billion. 

Founded by Lebanese entrepreneur Tony Jamous, the company offers a payroll and human resources platform that specializes in distributed workforces or global employment. 

The new funding brings Oyster’s total raised to $286 million and pushes its valuation to $1.2 billion, up from $1 billion in 2022 when it secured its $150 million series C. 

This marks a notable achievement, as the company has maintained its valuation while many tech firms have faced downturns amid challenging market conditions, according to a report by Tech Crunch.  

“We’ve grown significantly, more than 7x in two years, and we improved our margins tremendously. It’s a completely different business financially. So I’m glad that we did not have a down round, which would have been the expected scenario if we didn’t grow that much and improved the business in that time,” Jamous told Tech Crunch.


Saudi Green Building Forum achieves permanent observer status with UNCCD

Saudi Green Building Forum achieves permanent observer status with UNCCD
Updated 19 sec ago
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Saudi Green Building Forum achieves permanent observer status with UNCCD

Saudi Green Building Forum achieves permanent observer status with UNCCD

RIYADH: The Saudi Green Building Forum SGBF has been granted permanent observer status by the United Nations Convention to Combat Desertification.

This recognition underscores the Forum’s substantial contributions to advancing sustainable building practices and the Kingdom’s leadership in global environmental efforts.

The decision follows the forum’s prior pending status, which was resolved with the announcement of the final decision at COP16, held in Riyadh.

“This process takes months leading up to COP, during which the organization must demonstrate its engagement with clear justifications, specific goals, and evidence of its work within the community,” Faisal Al-Fadl, secretary-general of SGBF, told Arab News.

The SGBF’s involvement aligns with the provisions outlined in the UNCCD’s internal regulations, specifically concerning observer status, as defined in Article 22 and the COP rules, according to a press release.

SGBF was among the 473 organizations officially accredited during COP16, reflecting the international collaboration and commitment to combating desertification showcased at the conference.

This initiative is part of a broader strategy to integrate scientific and community-based approaches to environmental management.

Al-Fadl explained that under the UNCCD’s processes, rules, and regulations — agreed upon by its member states — any organization seeking observer status must participate in the COP.

The COP, hosted by the member state, is responsible for deciding whether to approve or deny the request for observer status.

“We set up a pavilion dedicated to the event, where each day highlighted a specific sustainable development goal. At SGBF, we actively promote SDGs as part of our consultative status with the United Nations,” Al-Fadl said.

He continued: “Green building is all about renewable energy, clean water, eco-friendly materials, and green infrastructure that supports the human experience. This concept is applied not just to buildings, but to neighborhoods and cities.”

Al-Fadl emphasized that SGBF’s work closely aligns with the SDGs, which encompass social, environmental, and economic sustainability. This is also in harmony with Saudi Vision 2030, which serves as the foundation for the Kingdom’s national SDGs.

“We capitalized on our accreditation, bringing more than 100 delegates and speakers, including high-level representatives, youth, and women. We are incredibly proud of this opportunity to engage on such a meaningful platform,” Al-Fadl said.

He added: “This has also provided an opportunity for many consultants, who might not have had the chance otherwise, to participate. Our accreditation is especially significant for the nonprofit and non-governmental sector, enabling us to engage with civil society, whether private entrepreneurs or young individuals.”

Al-Fadl further highlighted the chance to showcase the Forum’s partnerships with various entities, including government organizations. “For example, we signed agreements with the Ministry of Environment and nonprofit organizations, as well as achieving accreditation across Gulf states,” he noted.

The UNCCD also extended its accreditation to other organizations, including the Environment and Desertification Association and the Weather and Climate Association, after a thorough evaluation of their submitted documents.

Dedicated to combating land desertification, the UNCCD fosters partnerships between developed and developing nations, focusing on technology and knowledge-sharing for effective land management.

With 195 member states, the UNCCD aims to improve living conditions, enhance land productivity, and mitigate the impacts of drought while promoting public engagement in combating desertification and advancing sustainable development.


Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation
Updated 15 min 58 sec ago
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Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

RIYADH: Saudi Arabia is set to deliver a FIFA World Cup in 2034 that saves $450 million on costs but surpasses revenue trends, according to a report from the world football governing body.

Released in the aftermath of the Kingdom being officially confirmed as the host of the tournament, the bid evaluation document projects money from ticket and hospitality will surpass baseline projections by 32 percent, or $240 million.

FIFA evaluated organizing costs using figures from previous World Cups, adjusted for the expanded 104-match format, a 14-stadium concept, inflation, and local economic conditions. 

While excluding expenses like prize money and team participation costs, FIFA highlighted Saudi Arabia’s competitive pricing, with key cost areas such as technical services and security forecast to be $133 million and $58.9 million below baseline, respectively.

By comparison, Qatar spent an estimated $220 billion to host the 2022 World Cup, the most expensive in history. Much of that investment went toward infrastructure, including stadiums, roads, and public transport.

Hosting major sporting events such as the FIFA World Cup are aligned with Saudi Arabia’s economic diversification efforts which aims to reduce the Kingdom’s decades-long dependence on crude revenues. 

In November, experts told Arab News that Saudi Arabia could expect a gross domestic product boost of between $9 billion and $14 billion from the event, as well as the creation of 1.5 million new jobs, and the construction of 230,000 hotel rooms developed across five host cities.

For Saudi Arabia, key cost drivers include $378.4 million for television operations, $273.8 million for workforce management, $124 million for transport, $111.1 million for team services, and $99.5 million for IT and telecommunications, according to the bid report. 

“Virtually all cost drivers are currently forecast as being below the baseline, with some cost items, such as staffing costs, event transport, team accommodation, and competition management generally expected to remain in line with baseline levels,” FIFA noted. 

The governing body expects food and beverage revenues to align with baseline figures, while online and licensing revenue streams are forecast to outperform by $7 million. 

The Kingdom’s time zone, which allows viewers across Asia, Europe, and Africa to watch matches during prime hours, is expected to drive a 10 percent increase in global live television audiences compared to the 2026 edition. 

Sustainability at the core 

Saudi Arabia has pledged to host the 2034 tournament with sustainability at the forefront, incorporating renewable energy and achieving LEED Gold certification for buildings and operations. These green initiatives are expected to reduce energy consumption significantly compared to traditional standards. 

The Kingdom also plans to repurpose World Cup stadiums as multi-purpose entertainment venues and homes for Saudi Pro League teams, ensuring long-term benefits for football and local communities. 

Infrastructure development 

The World Cup bid underscores Saudi Arabia’s commitment to becoming a global tourism hub. 

Each proposed host city has undergone significant development under Vision 2030, with heavy investments in tourism infrastructure to support major events across sports, arts, culture, and business. 

Events like FIFA World Cup 2034 and Expo 2030 are expected to strengthen Saudi Arabia’s non-oil economy, providing business and lending opportunities for financial institutions, according to a November report by Moody’s. 

 


Vision 2030 can inspire global solutions to land degradation, energy crisis

Vision 2030 can inspire global solutions to land degradation, energy crisis
Updated 59 min 3 sec ago
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Vision 2030 can inspire global solutions to land degradation, energy crisis

Vision 2030 can inspire global solutions to land degradation, energy crisis
  • UNCCD executive secretary discusses how Saudi Arabia’s strategy can lead global environmental change

RIYADH: Achieving Saudi Arabia’s Vision 2030 will require significant investment in land restoration and renewable energy, as the nation’s ambitious strategy extends beyond national goals, according to a senior executive.

In an interview with Arab News on the sidelines of COP16 in Riyadh, Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification, emphasized that the Kingdom’s transformative national strategy should be a global model.

“Vision 2030 is a national vision from Saudi Arabia. But it can only be achieved if we invest more in land restoration. It can only be achieved if we invest more in empowering communities to manage their resources,” Thiaw said.

He further added: “It is certainly an excellent vision proposed by the Kingdom of Saudi Arabia. But it goes beyond in terms of vision, in terms of ambition. It has to be implemented in many other parts of the world.”

Thiaw highlighted the need for innovative solutions to address global food production challenges. For example, he pointed out the importance of doubling food production by 2050 without exhausting limited resources, calling for the adoption of technologies like artificial intelligence, precision agriculture, and water-efficient systems.

He also noted that Vision 2030 stresses the importance of balancing traditional farming techniques with modern technologies to enhance soil productivity, reduce pollution, and avoid the expansion of agricultural land.

“Saudi Arabia is already doing quite a bit in land restoration,” Thiaw said, referencing efforts through institutions like the Saudi Fund for Development, which has active portfolios across Africa, Asia, and Latin America.

“But we all need to do more,” Thiaw added. “That will probably require that the Saudi Fund for Development, as well as other institutions where Saudi Arabia is the main shareholder, like the Islamic Development Bank, the OPEC Fund, and many other institutions, realign their portfolios to match the ambitions of COP16.”

As a G20 member, Thiaw urged the Kingdom to help rally other nations to meet the G20 goal of restoring 50 percent of degraded land by 2040. The focus, he stressed, must not only be on making commitments but also on ensuring their effective implementation.

“Saudi Arabia will be appreciated if it works with its peers from other countries, with South Africa, which is now the current presidency of G20, and then the future presidencies, as well as all members of the G20,” Thiaw said.

Thiaw also emphasized the critical importance of integrating traditional methods, like underground irrigation, with modern technologies such as desalination and renewable energy to support sustainable development, especially in arid regions. These combined solutions can address challenges like water scarcity and energy demands while promoting economic growth.

“This is where you need new technologies and combine them with the traditional technologies, including the underground irrigation that has been known here for millennia, and so we can use new technologies to make additional water available,” Thiaw said.

He added: “I visited the Saudi pavilion here. I just could not believe what I saw, and from 300 megawatts just a few years back, there are now 44 gigawatts moving to 80 GW. I was stunned!”

Thiaw explained that Saudi Arabia’s progress demonstrates how integrating traditional and new technologies can lead the way in energy transitions, land management, and water accessibility, creating a better future for all.

Key outcomes

Thiaw outlined some of the key outcomes expected from COP16, including decisions on proactive drought resilience strategies to prepare communities, businesses, and governments for future droughts rather than simply reacting to crises.

An additional focus is scaling up commitments to restore degraded land, with a global reserve of 1.5 billion hectares of damaged land, and reversing the trend of losing fertile soil annually — an area the size of Egypt.

He stressed that financing is central to these efforts: “We have indicated in our reports that the world needs to invest $1 billion per day. $1 billion per day needs to be invested in land restoration worldwide. Now that is a huge figure. It’s not small. This is not necessarily only public funds, but also private funds.”

Thiaw added: “Not only public funds, but also private funds. The private sector must invest to sustain productivity, while harmful taxpayer-funded subsidies should be redirected toward environmentally friendly and land-friendly activities.”

Collaboration with Saudi Arabia

To address these pressing challenges, Thiaw expressed the UNCCD’s eagerness to collaborate with Saudi Arabia in integrating advanced technologies with traditional practices.

“Our ambition is to help countries transition effectively, and Saudi Arabia is uniquely positioned to lead this effort,” Thiaw said, highlighting the Kingdom’s capacity, energy, and financial resources.

He added: “Now, there is a lot of discussion at the moment under the climate negotiations to see whether we can have net zero in terms of emissions. But if you are to achieve net zero in terms of emissions, it is not only emissions coming from industry, but emissions coming from land use, because land use is the second-largest emitter.”

Thiaw emphasized that degrading land increases carbon emissions, whereas restoring land acts as a natural solution by capturing carbon and returning it to the soil, thus helping to mitigate climate change.

The progress showcased at the Saudi pavilion highlights how merging traditional practices with advanced technologies can pave the way for sustainable energy transitions, better land and water management, and long-term environmental and economic stability. This model serves as a benchmark for addressing resource challenges in arid regions and other vulnerable areas globally.


Foreign reserves propel Saudi assets to $435bn

Foreign reserves propel Saudi assets to $435bn
Updated 12 December 2024
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Foreign reserves propel Saudi assets to $435bn

Foreign reserves propel Saudi assets to $435bn

RIYADH: Saudi Arabia’s official reserve assets saw a 2.22 percent year-on-year increase to SR1.63 trillion ($435.41 billion) in October, underscoring the Kingdom’s fiscal resilience.

Data from the Saudi Central Bank, also known as SAMA, revealed that these holdings include monetary gold, special drawing rights, the International Monetary Fund’s reserve position, and foreign reserves. 

The latter category comprises currency and deposits abroad as well as investments in foreign securities, and accounted for 94.34 percent of the total, reaching SR1.54 trillion in October – an annual rise of 2.32 percent.

Special drawing rights rose to SR78.42 billion, marking a 2.09 percent increase and accounting for 4.8 percent of Saudi Arabia’s total reserves. 

Created by the IMF to supplement member countries’ official reserves, SDRs derive their value from a basket of major currencies, including the US dollar, euro, Chinese yuan, Japanese yen, and British pound sterling. SDRs can be exchanged among governments for freely usable currencies when needed. 

In addition to providing supplementary liquidity, SDRs help stabilize exchange rates, act as a unit of account, and facilitate international trade and financial stability. 

The IMF reserve position totaled around SR12.41 billion but recorded an 8.03 percent decline during this period. This category represents the amount a country can draw from the IMF without conditions. 

Gold reserves remained steady at SR1.62 billion, a level unchanged since February 2008. 

Saudi Arabia’s reserve assets, underpinned by substantial foreign exchange reserves and sovereign wealth managed through entities like the Public Investment Fund, serve as a cornerstone of the Kingdom’s fiscal strength. 

These reserves provide the government with a robust financial buffer to navigate economic uncertainties, including fluctuating oil revenues, global financial market turbulence, and geopolitical risks. 

With significant reserve levels, the Kingdom is well-positioned to meet its financing requirements across short, medium, and long-term horizons. 

This financial resilience bolsters Saudi Arabia’s ability to secure favorable borrowing terms from both domestic and international markets, enhancing investor confidence and supporting fiscal sustainability. 

The strategic deployment of these assets aligns with Saudi Arabia’s Vision 2030, which focuses on economic diversification, enhancing non-oil sectors, and ensuring sustainable long-term growth. 

This comprehensive strategy equips the Kingdom to mitigate risks while fostering stability and pursuing its ambitious economic objectives.


Pakistan stocks smash 113,000 mark on strong performance by energy, fertilizer sectors

Pakistan stocks smash 113,000 mark on strong performance by energy, fertilizer sectors
Updated 12 December 2024
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Pakistan stocks smash 113,000 mark on strong performance by energy, fertilizer sectors

Pakistan stocks smash 113,000 mark on strong performance by energy, fertilizer sectors
  • KSE-100 index climbed 2784.61, or 2.51 percent, to stand at 113,594.82 points at 2:48pm
  • Investors confident of significant interest rate cut at next monetary policy meeting on Dec. 16

ISLAMABAD: Pakistani stocks continued their record-breaking streak on Thursday, crossing the 113,000-point mark for the first time during intra-day trading, with the strong performance of energy and fertilizer shares contributing to the gains. 

The benchmark KSE-100 index climbed 2784.61, or 2.51 percent, to stand at 113,594.82 points at 2:48 pm, from the previous close of 110,810.21 points. 

“Lower T-Bill yields, leading up to next week’s monetary policy, are driving investor enthusiasm,” Head of Equities at Intermarket Securities Raza Jafri told Arab News. “Index heavyweight energy and fertilizer contribute most to today’s rise.”

Arif Habib Corporation Chief Executive Officer Ahsan Mehanti attributed the record-breaking streak to surging global crude oil prices, upbeat Pakistan Oil Fields sales, car sales, cement dispatches data for November 2024 and the Asian Development Bank raising the growth forecast to three percent for FY25.

“These factors played the role of a catalyst in the record surge,” he told Arab News. “Stocks showed record bullish activity after government bonds yields fell by up to 100bps in the State Bank of Pakistan auction expected to bring significant policy easing next week.”

Stocks have been performing well this week on the back of investor confidence of a significant interest rate cut by the central bank at the next monetary policy meeting on Dec. 16.

Pakistan’s central bank has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.

According to a poll by Topline Securities, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps next week. 

Pakistan’s annual consumer inflation also slowed to 4.9 percent in November, lower than the government’s forecast and the lowest in nearly six years. This is down from 38 percent last year.

Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.

Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.