Startup Wrap — Early-stage regional startups garner most funding

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

Startup Wrap — Early-stage regional startups garner most funding

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.  


Iran ready to strengthen economic ties with Saudi Arabia, says minister

Iran ready to strengthen economic ties with Saudi Arabia, says minister
Updated 21 sec ago
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Iran ready to strengthen economic ties with Saudi Arabia, says minister

Iran ready to strengthen economic ties with Saudi Arabia, says minister

RIYADH: Iran is prepared to enhance its economic and investment ties with Saudi Arabia, including the potential for joint projects. However, progress is contingent upon mutual willingness, according to a senior Iranian official.

In an interview with Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Abdolnaser Hemmati, Iran’s minister of economic affairs and finance, emphasized that specific agreements would be necessary to facilitate trade between the two nations.

“We are ready to boost our economic relation and investment relation between two countries and joint investment projects between two countries. But this depends on them, and I think the situation of the region is going to that era. We must start to have good relations with all together,” Hemmati said.

He added: “For starting and upgrading trade between two countries, we need to have some agreements. The main agreements is about eliminating double tax, bilateral investment, and also custom rules.”

Hemmati also emphasized Iran’s commitment to strengthening ties with neighboring countries, particularly Saudi Arabia, Qatar, and Oman.

The aim is to bolster both political and economic relations, with a strong focus on enhancing trade and commerce.

He added: “The first important matter is that growing political relations needs to upgrade our economic relations especially in the field of commerce and trade between two countries.”

Hemmati stressed the importance of fostering economic relations among countries in the region to safeguard against external interference. He highlighted that strong economic cooperation is essential for maintaining regional autonomy and stability.

At the conference, a key topic of discussion was the challenges and opportunities facing regional nations, with a particular emphasis on building economic resilience.

Hemmati reiterated that robust economic ties between neighboring countries are vital in order to prevent outside influence in their affairs.

Economic resilience, according to the minister, depends on strengthening cooperation among neighboring countries.

“The future of the region needs to have good economic relations between the member countries of the region,” Hemmati concluded.

Therefore, the future of the region depends on fostering strong economic ties between member countries to ensure long-term stability, security, and prosperity.


China’s central bank governor highlights key challenges for emerging markets at AlUla conference

China’s central bank governor highlights key challenges for emerging markets at AlUla conference
Updated 52 min 14 sec ago
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China’s central bank governor highlights key challenges for emerging markets at AlUla conference

China’s central bank governor highlights key challenges for emerging markets at AlUla conference
  • Pan Gongsheng emphasized need for proactive policy measures and strengthened multilateral cooperation to enhance economic resilience
  • He said increasing geopolitical conflicts and protectionism disrupt international value chains and restrict flow of capital, technology, and labor

RIYADH: Emerging market economies are facing escalating challenges, including geopolitical tensions, sluggish global growth, financial volatility, and increasing public debt, according to the governor of the People’s Bank of China. 

Speaking at the two-day AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the International Monetary Fund, Pan Gongsheng emphasized the need for proactive policy measures and strengthened multilateral cooperation to enhance economic resilience. 

“In my view, emerging markets face four key challenges,” Gongsheng said. “The first challenge is geopolitical tension.” He highlighted how increasing geopolitical conflicts and protectionism disrupt international value chains and restrict the flow of capital, technology, and labor. 

“There has been a drop in global growth and productivity gains and the rising divergences in key industries across countries, mainly due to uneven development and resource misallocation,” he said. 

Pan Gongsheng, the governor of the People’s Bank of China, speaks during the AlUla Conference for Emerging Market Economies. AN Photo

Gongsheng’s remarks align with the IMF’s recent report, which warns that friendshoring — the practice of countries trading primarily with geopolitical allies — could reduce global economic output by up to 1.8 percent. 

Emerging markets, particularly in Asia, may experience up to 6 percent declines due to this shift.

Despite these warnings, a Financial Times report said China has intensified its control over technology and resources, including restricting key battery technology exports, disrupting global value chains, and escalating geopolitical tensions.

Gongsheng identified the second challenge as the slower medium-term growth of the international economy. 

“We are now facing policy uncertainties in some economies. If protectionism escalates, rising trade fluctuations will drive up inflation expectations and undermine medium-term growth,” he added. 

Pan Gongsheng, the governor of the People’s Bank of China, warned that growing investor concerns over fiscal sustainability could trigger government bond market volatility. AN Photo

Citing IMF forecasts, he said global economic growth is projected to hover at just 3 percent in the medium term, the lowest level since 2000. 

Financial market volatility and capital outflows represent the third major challenge. 

“The trajectory of the interest rate in major advanced economies remains highly uncertain,” Gongsheng said. 

“Markets have become particularly sensitive to unexpected economic data. If rates differ and rise significantly from market expectations, market repricing may increase asset price volatility in emerging markets.” 

This aligns with a recent Reuters report, which said emerging markets are facing significant challenges due to a strong US dollar and high treasury yields. 

These factors have led to weaker local currencies, increased costs for servicing dollar-denominated debt, reduced capital inflows, and dampened economic growth. 

Policymakers in these regions find it difficult to counteract these pressures effectively, which are further heightened by new US tariff and trade policies. 

The fourth issue Gongsheng discussed was the burden of high public debt and its implications for financial stability. 

“The IMF points out that global public debt risk has risen significantly due to political and other factors. Those risks not only exist in developing countries — the level of public debt in some advanced economies also merits close attention,” he said. 

He warned that growing investor concerns over fiscal sustainability could trigger government bond market volatility, with potential spillover effects on other asset classes, liquidity risks, and financial stability. 

According to a report by the Institute of International Finance, the global debt stock increased by over $12 trillion in the first three quarters of last year, reaching nearly $323 trillion. 

Pan Gongsheng, the governor of the People’s Bank of China, stressed the importance of multilateralism and global financial governance reform. AN Photo

The IIF attributes the rise to declining borrowing costs and a heightened risk appetite among investors, underscoring concerns similar to those expressed by the governor. 

To address these challenges, Gongsheng outlined key policy responses for emerging markets. 

“First, we should continue improving monetary policy frameworks, enhancing the efficiency of monetary policy transmission, increasing policy transparency, and improving policy communication,” he said. 

He also advocated for increased exchange rate flexibility, stronger public debt management, improved macroprudential regulations, and the development of local currency markets to mitigate capital flow risks. 

Gongsheng stressed the importance of multilateralism and global financial governance reform. 

“The IMF has made great progress in surveillance and governance reform. At the same time, there is still more work to be done for us to advance global financial governance reform,” he said. 

He called on the IMF to enhance support for developing countries, promote trade and investment liberalization, and establish comprehensive policy tools to help emerging markets address capital flow risks and external shocks. 

“The current quota shares can no longer reflect the actual position of emerging markets in the global economy,” Gongsheng said, urging the IMF to establish a “concrete and binding timetable” for future quota realignments, with discussions on fiscal realignment plans set by June.


Ministers urge fiscal discipline, smart investment to tackle debt challenges

Ministers urge fiscal discipline, smart investment to tackle debt challenges
Updated 16 February 2025
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Ministers urge fiscal discipline, smart investment to tackle debt challenges

Ministers urge fiscal discipline, smart investment to tackle debt challenges

RIYADH: Effective debt restructuring requires a thorough understanding of its root causes, said the Russian finance minister at the AlUla Conference for Emerging Market Economies. 

Speaking during a panel titled “High Debt-Low Fiscal Space—Fiscal Consolidation and Multilateral Solutions to Debt Restructuring,” Anton Siluanov emphasized that fiscal prudence and policy monitoring are essential in addressing economic challenges.

“When we restructure the debt, we must be fully cognizant of the underlying causes,” Siluanov said, stressing the importance of careful analysis before implementing financial adjustments. 

He further underscored the responsibility of finance ministries to adopt prudent fiscal policies, ensuring that governments do not exacerbate their debt situations. “If it’s difficult to cut costs, don’t blow them, don’t increase them,” he warned.

The panelists highlighted the need for efficient and targeted financial measures. Mauricio Cardenas, a professor at Columbia University and former Colombian finance minister, argued against indiscriminate budget cuts, saying: “I don’t believe in across-the-board cuts in government expenditures because governments have priorities, countries also have priorities.”

Instead, he called for channeling financial resources more effectively to stimulate economic growth and stability. “In essence, channeling more financing, making sure that financing is more efficient is crucial.”

Saudi Finance Minister Mohammed Al-Jadaan reinforced the importance of strategic financial planning, urging countries to “utilize your fiscal space in the most optimal way.”

His remarks were particularly relevant in the context of Saudi Arabia’s economic positioning, as the Kingdom continues to lead major financial initiatives in the region.

Zambian Finance Minister Situmbeko Musokotwane pointed to investment opportunities in resource-rich nations, particularly critical minerals necessary for global decarbonization efforts. 

“Countries like Saudi Arabia, with a lot of financial capital, the good news is that with the efforts to decarbonize the materials—copper, manganese, nickel, and so forth—they’re in my country, so come and invest,” he said.

The discussion underscored the necessity of maintaining fiscal discipline while ensuring targeted investments that drive sustainable economic growth. 

The panelists agreed that careful financial oversight, efficient resource allocation, and strategic investment remain central to overcoming debt challenges in emerging markets.

The two-day summit, held in the Arabian oasis of AlUla, aims to generate actionable recommendations to strengthen financial stability and promote sustainable growth in emerging economies.

Key discussions will focus on the role of artificial intelligence and digital transformation in driving economic progress. Participants will explore strategies for enhancing economic resilience and fostering stronger cooperation between emerging and advanced economies to promote a more equitable and sustainable future.


Financial discipline crucial while pursuing economic diversification efforts: Qatari minister

Financial discipline crucial while pursuing economic diversification efforts: Qatari minister
Updated 16 February 2025
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Financial discipline crucial while pursuing economic diversification efforts: Qatari minister

Financial discipline crucial while pursuing economic diversification efforts: Qatari minister
  • Qatar’s minister of finance said Middle East countries have engaged in healthy competition as they pursue economic diversification
  • He was speaking during a panel discussion at the AlUla Conference for Emerging Market Economies

RIYADH: Maintaining financial discipline is crucial for countries in the Middle East as they work to diversify their economies and reduce reliance on energy revenues, according to a Qatari minister. 

During a panel discussion at the AlUla Conference for Emerging Market Economies organized by the Saudi Ministry of Finance and the International Monetary Fund, Ali bin Ahmed Al-Kuwari, Qatar’s minister of finance, said that countries in the Middle East have engaged in healthy competition as they pursue their economic diversification journeys. 

Saudi Arabia’s Vision 2030, Qatar’s Vision 2030, and the UAE’s Vision 2031 programs are focused on transitioning from a hydrocarbon-based economy to a knowledge-driven one.

These initiatives also aim to strengthen non-energy sectors, which include tourism, hospitality, manufacturing, and technology.

“While we build the diversification, it is very important to have a long-term view of how we see things change in terms of revenue and expenditure. The fiscal policy framework in Qatar builds different scenarios for revenue. We build discipline around the spending so the spending goes to the right places. We make sure that surpluses go in the right direction,” said Al-Kuwari. 

He added: “Surplus goes to the Qatar Investment Authority because it is Qatar’s revenue diversification engine. A part of the surplus also goes to the shock absorption buffer by enhancing the Qatar Central Bank reserves. Part of it is also reinvested in the economy itself to achieve diversification.” 

A panel discussion was held during the AlUla Conference for Emerging Market Economies on ‘Emerging Markets: Policy Challenges Amid Structural Shifts in the World Economy.’ AN Photo

According to the minister, countries including the Kingdom, the UAE, Bahrain, Kuwait, and Oman are all diversifying their economies effectively. 

“Saudi, UAE, Bahrain, Kuwait, Oman everyone is working together. It is a healthy competition. We are also complementing each other,” the minister said.

He also said that Qatar’s economic diversification is based on four sectors, including technology, low-carbon manufacturing, logistics, and tourism, adding that the nation has already started seeing the results. 

“In tourism, during the World Cup in 2022, we received 2.3 million visitors. In 2023, the year after the World Cup, visitors increased to 4 million, and in 2024, we welcomed 4 million,” said Al-Kuwari. The Qatari minister also said his country seeks to increase the production of liquefied natural gas by 80 percent in a phased manner by 2030, and it will help ensure a sufficient energy supply in the world. 

During the event, which was held in the historic city of AlUla and runs from Feb. 16— 17, Jin Liqun, president and chairman of the Asian Infrastructure Investment Bank, said the entity is closely cooperating with other multilateral development banks to assist the funding needs in emerging economies. 

“We do not work alone, as a new institution, we work with our peer institutions, and other members of the MBD family. We develop our policy lending to support the countries’ efforts toward net zero,” said Liqun. 

He added: “We provide local currency financing. We can help countries to avoid currency risks, and also we believe that it is important to introduce climate-resilient debt crisis financing. This provides temporary relief after climate disasters. We have a soft fund window to help reduce the costs of infrastructure investments.” 

Jin Liqun, president and chairman of the Asian Infrastructure Investment Bank, speaks during the panel discussion. AN Photo

Liqun further said that the Asian Infrastructure Investment Bank is assisting emerging economies in positioning themselves within the global green economy and accessing its value chains.

“The green transition is a major opportunity for emerging countries, especially countries in the Gulf Cooperation Council regions. This is a great opportunity for GCC countries to develop sustainable and resilient economies,” added Liqun. 

The Dean of the School of Economics and Business at the University of Chile, Jose De Gregorio, said emerging markets should continue doing what they are doing now but should also effectively address the potential risks as time progresses. 

“Emerging markets should keep doing things which they are doing now. However, there are risks which we have to take into account and be prepared for. First, fiscal policies are not as strong as they were fifteen years ago. Why? Because we have spent a lot of money during the previous crisis. The second one is the geopolitical thing,” added De Gregorio. 

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, said countries should possess a deep knowledge of their economies before making strategic fiscal policy decisions. 

“My experience has been that it is important for economies to understand their own economies and not just necessarily go in line with what everybody else is doing,” said Cardoso.


Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources
Updated 16 February 2025
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Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

JEDDAH: Saudi Arabia’s Northern Borders region, home to an estimated SR4.6 trillion ($1.22 trillion) in mineral resources, is emerging as a key driver of economic growth and investment, according to the Ministry of Industry and Mineral Resources.

The region is a major hub for phosphate production, a critical component in global food security due to its use in agricultural fertilizers. Mining projects in Waad Al-Shamal, an industrial city dedicated to the sector, have positioned Saudi Arabia among the world’s leading phosphate producers and exporters.

As part of Vision 2030, the Kingdom is accelerating efforts to develop its mining sector and reduce its reliance on oil and gas. The ministry has identified mining as a key pillar of economic transformation, focusing on resource efficiency and attracting both local and international investment.

Jarrah bin Mohammed Al-Jarrah, spokesman for the ministry, said the region contains significant deposits of phosphate, coal, dolomite, limestone, and silica sand. It also has five phosphate ore sites and 29 active mining licenses, including 15 for building material quarries and 14 for mineral exploitation.

Beyond mining, the Northern Borders region is expanding its industrial footprint, with 61 factories operating across Arar, Tarif, and Rafha in sectors such as building materials, food processing, and chemicals, Al-Jarrah said.

The developments come as minister of industry and mineral resources Bandar bin Ibrahim Al-Khorayef began a visit to the region on Feb. 16 to assess industrial and development projects aimed at strengthening its role as a mining hub. His visit aligns with the ministry’s broader strategy to attract investment and position mining as a key sector in Saudi Arabia’s economic diversification.

Saudi Arabia’s mining ambitions have gained significant momentum in recent years. At a meeting in July, Alkhorayef highlighted that the estimated value of the Kingdom’s mineral wealth had surged from $1.3 trillion to $2.5 trillion by early 2024 — a 90 percent increase — driven by government investments in geological surveys, exploration, and private sector participation. 

The rise in valuation reflects a more comprehensive understanding of the country’s vast mineral potential, as well as increasing demand for critical minerals needed for global energy transitions.