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Startup Wrap — Early-stage regional startups garner most funding

Startup Wrap — Early-stage regional startups garner most funding
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Updated 01 October 2024
NOUR EL-SHAERI   
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Startup Wrap — Early-stage regional startups garner most funding

Startup Wrap — Early-stage regional startups garner most funding
Updated 01 October 2024
NOUR EL-SHAERI   
Follow

RIYADH: Several startups across the Middle East and North Africa have secured significant investments, showcasing the region’s growing entrepreneurial ecosystem. 
From proptech and fintech to edtech and automotive, early-stage startups are focusing on expansion and technological innovation in both local and international markets. 
Saudi Arabian proptech startup Darent has closed an undisclosed seed funding round, led by Al Tawuniya Insurance. 
The round also saw participation from the Morgan Stanley Inclusive Ventures Lab and BIM Ventures. 
Founded in 2021 by Hanin Al-Subaie, Darent offers a property management tool for rental properties, connecting owners and tenants through its platform. 
“We are deeply thankful to our partners for their immense trust. This funding round is a significant step toward achieving our vision of revolutionizing the vacation rental sector by effectively enhancing the tourist experience and delivering pioneering solutions that elevate the quality of the tourism sector in the Kingdom,” Al-Subaie said. 
The company intends to use the new funding to enhance its artificial intelligence technology and support marketing efforts. This follows a $1 million pre-seed round raised in 2022, led by Watheeq Proptech Venture. 

Seez raises $4.2m to fuel US expansion  
UAE-based automotive software-as-a-solutions startup Seez secured $4.2 million from a group of international investors. 
Established in 2015 by Tarek Kabrit and Andrew Kabrit, Seez provides software solutions to car dealerships and original equipment manufacturers to enhance customer experience and drive sales. 
“As pioneers in bringing AI technology to the automotive sector, this investment underscores our commitment to innovation and disrupting the status quo. We’re excited to capitalize on our momentum, develop our product offerings, and push the boundaries of automotive solutions,” Tarek, the company’s CEO, said. 
The latest investment will be used to further its expansion into the US market. 
“Through this phase of expansion, we have secured key partnerships and achieved tremendous success in markets like the UK, Australia, Denmark, South Africa, New Zealand, Mexico, and the GCC region,” Tarek added.  
UmrahCash secures $500k from Adaverse 
Saudi-based fintech UmrahCash has received a $500,000 investment from Adaverse. 
Founded in 2024 by William Phelps, UmrahCash enables pilgrims to access Saudi Riyals in Makkah, Madinah, and Jeddah, allowing payments to be made in their home countries, with the currency provided upon arrival in the Kingdom. 
In 2023, Saudi Arabia experienced a significant increase in international Umrah pilgrims, welcoming 26 million performers, an 8.7 percent rise from the previous year. 
Out of the total, 13 million were international pilgrims, marking a 61.8 percent increase and surpassing the previous record of 8.5 million in 2019. Many of these pilgrims came from emerging markets. 
The new funding will support UmrahCash’s expansion within the Kingdom.  
Sultan Ventures acquires Egypt’s Acasia Group  
US-based venture capital firm Sultan Ventures has acquired Egyptian angel investment syndicate and incubator Acasia Group for an undisclosed amount. 
Founded as Cairo Angels in 2011, Acacia Group is known for empowering Egyptian and regional entrepreneurs. 
Sultan Ventures, established in 2009, specializes in early-stage investment and startup ecosystem development. 
“What began 14 years ago as a grassroots initiative under Cairo Angels has grown into a regional leader, operating across every aspect of the venture continuum in the Middle East and Africa. The acquisition by Sultan Ventures enables Acasia to scale faster and tackle the region’s biggest challenges, amplifying impact and scaling early-stage ventures and deep-tech commercialization,” said Hossam Allam, chairman of Acasia Group. 
The acquisition will extend Sultan Ventures’ reach into the Middle East and Africa region. Notably, Acasia Ventures will remain separate from this deal following a prior separation agreement. 
SETTLE raises $2m in pre-seed funding  
Egyptian fintech startup SETTLE has raised $2 million in a pre-seed funding round led by Shorooq Partners, with support from El Sewedy Capital Holding, Acasia Ventures, and Plus VC. 
Launched in 2023 by Kamil Sayour and Mostafa Mobarak, SETTLE is a business-to-business payment platform designed to modernize financial operations for enterprises. 
“We are deeply familiar with the challenges and potential for the B2B financial services market in Egypt. SETTLE is prepared to enhance that market by automating financial workflows for businesses of all sizes. With the backing of strategic investors, we are now positioned to scale quickly and efficiently,” Mobarak said. 
The funding will accelerate SETTLE’s global expansion and enhance its platform’s capabilities.  
LabLabee secures $3.4m in Seed funding 
Algerian edtech company LabLabee closed a $3.4 million seed funding round, led by Reach Capital and supported by Classera, Brighteye Ventures, and e& capital. 
Founded in 2021 by Samir Tahraoui and Mahfoud Mebarek, LabLabee offers practical, hands-on learning experiences in cutting-edge network technologies. 
The investment will support LabLabee’s expansion into the US market, hiring new talent, and developing new technologies.  
Plain Tiger attracts investment from COREangelsMEA 
UAE-based B2B marketplace Plain Tiger secured an undisclosed investment from COREangelsMEA, part of COREangels International. 
Founded in 2021 by Alexandra Polson and Oliver Baillie, Plain Tiger connects hotels with eco-friendly suppliers, aiming to save time and reduce environmental impact. 
The company will use the investment to further develop its platform and expand its presence in the Middle East, focusing on the Saudi market. Earlier this year, Plain Tiger received additional funding from AngelSpark.  
Farid raises $250k pre-seed round 
Egyptian edtech startup Farid has raised $250,000 in a pre-seed funding round from Saudi businesswoman Amal Al-Ajlan. 
Founded in 2024 by Mahmoud Hussein, Farid provides a platform focusing on character education and mental health support for children and youth aged 3 to 18. 
The funding will be used to develop the platform and support Farid’s expansion into Saudi Arabia and the UAE.  

Topics: startups Startup of the Week Startup Wrap

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Closing Bell: Saudi main index closes in green at 11,970 

Closing Bell: Saudi main index closes in green at 11,970 
Updated 26 March 2025
Miguel Hadchity
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Closing Bell: Saudi main index closes in green at 11,970 

Closing Bell: Saudi main index closes in green at 11,970 
Updated 26 March 2025
Miguel Hadchity

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 263.98 points, or 2.26 percent, to close at 11,970.19. 

The total trading turnover of the benchmark index was SR6.18 billion ($1.65 billion), as 239 stocks advanced, while 14 retreated.    

The MSCI Tadawul Index increased by 6.13 points, or 0.41 percent, to close at 1,490.20. 

The Kingdom’s parallel market, Nomu, also rose, gaining 374.70 points, or 1.22 percent, to close at 30,988.44. This comes as 56 stocks advanced, while 27 retreated. 

The best-performing stock was Umm Al Qura for Development and Construction Co. with its share price surging by 14.19 percent to SR23.98. 

Other top performers included Allied Cooperative Insurance Group, which saw its share price rise by 9.13 percent to SR13.86, and Nama Chemicals Co., which saw a 8.98 percent increase to SR30.95. 

Gulf General Cooperative Insurance Co. saw the biggest decline of the day, with its share price slipping 2.60 percent to SR9. 

The Co. for Cooperative Insurance at SR139, down 1.56 percent, and Astra Industrial Group at SR151, down 1.31 percent, both saw declines. 

On the announcement front, Rawasi Albina Investment Co. reported its 2024 financial results, posting net profits of SR7.4 million, a 68.4 percent drop from the previous year. In a statement on Tadawul, the company attributed the decline to a reduced gross profit margin. 

Saudi Fisheries Co. reported a net loss of SR40.9 million for 2024, an improvement from SR119.9 million the previous year, reflecting a 65.8 percent reduction. SFICO attributed the reduction to lower farm-related expenses for shrimp and fish production, a decline in operating costs amid reduced business activity, and a 27 percent drop in SG&A expenses.  

Additionally, the reversal of a SR7.6 million impairment for non-financial assets contributed to the improvement, the firm said in a Tadawul statement. 

However, the net margin remained negative due to fixed farm costs incurred after harvesting, increased consultancy expenses related to capital restructuring, and the recognition of SR8.98 million in provisions for inventory, supplier advances, and trade receivables. 

The firm’s shares traded 2.41 percent higher on the main market to close at SR102. 

Eastern Province Cement Co. also announced its annual financial results for last year. The company’s net profit surged to SR248 million from SR196 million in the previous year. 

In a statement, the company said that the increase was driven by higher cement sales in both quantity and value, along with a rise in precast sales.  

Additionally, reduced losses from the share in an associate company’s results, lower other expenses, realized gains from the sale of investments at fair value through profit or loss, and a decrease in zakat expenses contributed to the overall improvement. 

The firm’s shares traded 4.26 percent higher on the main market to close at SR35.50. 

Topics: TASI NOMU MSCI stocks

Egypt’s economy expands 4.3% in second quarter, says minister

Egypt’s economy expands 4.3% in second quarter, says minister
Updated 26 March 2025
Reem Walid
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Egypt’s economy expands 4.3% in second quarter, says minister

Egypt’s economy expands 4.3% in second quarter, says minister
Updated 26 March 2025
Reem Walid

RIYADH: Egypt’s economy grew 4.3 percent in the second quarter of 2024-25, accelerating from 2.3 percent a year earlier, driven by structural reforms and rising private sector investment, Planning Minister Rania Al-Mashat said. 

The improved performance reflects the government’s fiscal and monetary adjustments alongside a reduction in public investment, which Al-Mashat said has helped stabilize the economy and drive growth. 

The minister previously forecast 4 percent growth for the full fiscal year, highlighting Egypt’s focus on improving its investment climate and securing $4.2 billion in macroeconomic support from global partners.   

In a statement posted on the government’s official Facebook page, she said: “This is driven by structural reforms aimed at diversifying sources of growth and increasing the competitiveness of the Egyptian economy, which was evident in the strong performance of productive sectors such as manufacturing, tourism, and communications.” 

Al-Mashat added that the government is working to shift toward tradable sectors like manufacturing to create a more diversified and sustainable economy, strengthening Egypt’s ability to navigate global economic challenges. 

She also highlighted the positive outlook for gross domestic product growth, supported by ongoing structural reforms and economic diversification. 

Non-oil manufacturing led economic growth, expanding by 17.74 percent — a sharp turnaround from an 11.56 percent contraction in the same period last year — driven by increased production and faster customs clearance.  

The tourism sector maintained its strong performance with an 18 percent surge, while private investment rose, making up more than half of total investments. Public investment, however, declined by 25.7 percent.  

The Information and Communications Technology sector grew by 10.4 percent, supported by digital infrastructure expansion and rising demand for services. 

Despite ongoing geopolitical tensions affecting Suez Canal activity and a slowdown in the extraction sector, Al-Mashat underscored that economic reforms remain key to building a more competitive, sustainable economy and bolstering investor confidence.  

She noted that net exports turned positive in the second quarter, driven by growth in commodity and service exports. 

In January, Al-Mashat reiterated the government’s focus on disciplined investment management, stating that the public investment budget for the year is capped at 1 trillion Egyptian pounds ($19.78 billion), prioritizing projects that are at least 70 percent complete. 

Between 2020 and 2024, Egypt’s private sector secured $14.5 billion in concessional development financing from global partners. For the first time, private sector access to international soft financing surpassed that of the government in 2024, Al-Mashat noted at that time. 

She also revealed that negotiations are ongoing with the EU and other international partners for a second phase of macroeconomic support, including €4 billion ($4.10 billion) in budget aid and €1.8 billion in investment guarantees. 

Topics: Egypt economy

CMA proposes easing investor criteria for Nomu to boost participation, liquidity

CMA proposes easing investor criteria for Nomu to boost participation, liquidity
Updated 26 March 2025
MOHAMMED AL-KINANI
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CMA proposes easing investor criteria for Nomu to boost participation, liquidity

CMA proposes easing investor criteria for Nomu to boost participation, liquidity
Updated 26 March 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s Capital Market Authority has proposed easing investor criteria for Nomu, the Kingdom’s parallel market, aiming to expand participation and improve liquidity.

The proposed amendments suggest reducing the minimum transaction requirement for individual investors from SR40 million ($8 million) to SR30 million over a 12-month period.

Additionally, the requirement for quarterly trading activity would be eliminated. Under the new regulations, board and committee members of companies listed on Nomu would also be eligible to qualify as investors.

The project aims to reserve the term “Qualified Investor in the Parallel Market” for eligible categories, amend the minimum transaction value required for classifying a natural person as a qualified investor, and rank board members and committee members of listed companies as suitable to invest.

Saudi Arabia accounted for 31 percent of the region’s total initial public offering proceeds in 2024, making it the second-largest contributor after the UAE. The Saudi Exchange, Tadawul, witnessed 14 IPOs on its main market, collectively raising $3.8 billion. Nomu also saw 28 IPOs, generating $297 million.

The CMA called upon relevant and interested persons participating in the capital market to share their feedback on the draft for 30 days, ending on April 28.

Earlier in March, the CMA called for feedback on the draft “Regulatory Framework for Debt Instruments Offering Platforms and Investing in Them,” which aims to develop debt instrument offerings by licensed capital market institutions for securities crowdfunding.

With the consultation period to end on April 23, the draft outlines regulatory and licensing requirements for offering and investing in debt instruments, aligning with developments in the capital market.

Key proposals include allowing organizations to present debt instruments in the sukuk and debt market and enabling companies with a FinTech Experimental Permit to obtain the necessary license to operate as capital market institutions.

Organizations will need an arranging license to offer debt instruments through crowdfunding platforms. The draft also introduces requirements for safeguarding client funds and registrable functions for licensed establishments.

The proposal aims to expand the role of capital market institutions in financial technology, enhance the debt market, and increase participation in securities crowdfunding, supporting the CMA’s objectives.

Topics: Capital Market Authority (CMA) Saudi Stock Exchange (Tadawul) NOMU

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Jewelry spending fuels Saudi POS surge for 2nd consecutive week

Jewelry spending fuels Saudi POS surge for 2nd consecutive week
Updated 26 March 2025
Miguel Hadchity
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Jewelry spending fuels Saudi POS surge for 2nd consecutive week

Jewelry spending fuels Saudi POS surge for 2nd consecutive week
Updated 26 March 2025
Miguel Hadchity

RIYADH: Saudi Arabia’s point-of-sale transactions climbed 6.3 percent to SR14.4 billion ($3.8 billion) in the week ending March 22, with jewelry once again leading the growth.

The latest figures from the Saudi Central Bank, also known as SAMA, showed that spending in the sector registered the largest increase in the value of transactions at 29.9 percent to reach SR544.4 million.

Jewelry also saw a 34.4 percent surge in terms of the number of transactions, reaching 403,000.

The hotel sector ranked second with a 24.8 percent surge in transaction value to SR440 million. Spending on clothing and footwear followed, rising 24.5 percent, holding the second-largest share of POS transactions at SR1.87 billion.

Overall transactions increased by 22.4 percent to 12 million.

Expenditure on transportation edged up by 6.9 percent to SR950.8 million, and spending in restaurants and cafes increased by 3.7 percent, bringing the total value of transactions to SR1.5 billion.

The smallest spending increases were in the telecommunication and the construction sectors, rising by 0.2 percent to SR114.8 million and 0.03 percent to SR308 million, respectively.

Spending on education saw the steepest decline for the second week in a row, dropping 37.2 percent to SR88.2 million, following a 144.6 percent surge during the week from March 2 to 8 as students returned from the winter break.

Expenditure on public utilities saw a 4.5 percent dip to SR52.4 million, and spending on food and beverages recorded a 2 percent drop to SR1.88 billion, but still held the largest share of the POS.

Miscellaneous goods and services accounted for the third biggest POS share, with a 5.8 percent uptick, reaching SR1.7 billion. 

Spending in the leading three categories accounted for approximately 38.1 percent, or SR5.5 billion, of the week’s total value.

Geographically, Riyadh dominated POS transactions, representing around 34.1 percent of the total, with spending in the capital reaching SR4.9 billion — a 4.6 percent increase from the previous week. 

Jeddah followed with a 9.8 percent increase to SR2.1 billion, and Makkah came in third at SR933.2 million, up 14 percent. 

Tabuk experienced the smallest increase in spending, edging up by 0.6 percent to SR248.2 million. 

Buraidah and Makkah saw the largest increases in terms of number of transactions, surging by 4.2 percent and 3 percent, respectively, to 4.4 million and 9.8 million transactions.

Topics: point-of-sale saudi central bank jewelry

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Emirates NBD teams up with BlackRock to expand private market access 

Emirates NBD teams up with BlackRock to expand private market access 
Updated 26 March 2025
Nirmal Narayanan 
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Emirates NBD teams up with BlackRock to expand private market access 

Emirates NBD teams up with BlackRock to expand private market access 
Updated 26 March 2025
Nirmal Narayanan 

RIYADH: Dubai’s Emirates NBD has partnered with US-based investment firm BlackRock to launch a dedicated platform aimed at giving its wealthy clients greater access to private markets and alternative assets. 

The two firms signed a memorandum of understanding to create this platform, as well as introduce an initial range of evergreen offerings focused on income and growth strategies, tailored exclusively for the UAE wealth market, according to a press statement. 

Clients of Emirates NBD Asset Management will gain access to BlackRock’s Alternative Investments platform, which currently oversees more than $450 billion in assets under management. 

The appetite for private market investments has been rising globally, driven by investors seeking portfolio diversification and stronger returns. This trend is further fueled by a slowdown in global capital market activity amid higher borrowing costs, with the alternative asset market projected to reach $30 trillion by the end of the decade. 

Marwan Hadi, group head of retail and wealth management at Emirates NBD, said: “Innovation is a cornerstone at Emirates NBD, and we are pleased to partner with BlackRock to offer access to best-in-class, products in alternative markets through a dedicated platform while supporting the growing needs of investors in the region.”  

He added: “We are deeply committed to creating value through our offerings and advancing the investment landscape in the UAE and the wider region, which has been experiencing a strong appetite in the last few years.” 

This partnership also aims to democratize investment opportunities previously limited to institutional investors and ultra-high-net-worth individuals. 

Beyond investment opportunities, BlackRock will leverage its open architecture approach to support Emirates NBD Asset Management’s private markets expansion, offering services including marketing, education, training, and technology. 

“We are delighted to partner with Emirates NBD as they build out their private markets platform. Spurred by investor sentiment and facilitated by product innovation, technology, and regulatory advancements, wealth allocations to private markets are predicted to increase materially over the next five years,” said Rachel Lord, head of International at BlackRock. 

Emirates NBD serves more than 9 million customers across 13 countries, holding 997 billion dirhams ($271 billion) in assets as of Dec. 31, 2024. 

Topics: Emirates NBD BlackRock

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