Startup Wrap – MENA startup ecosystem flourishes as year comes to an end

Startup Wrap – MENA startup ecosystem flourishes as year comes to an end
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Updated 24 December 2024
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Startup Wrap – MENA startup ecosystem flourishes as year comes to an end

Startup Wrap – MENA startup ecosystem flourishes as year comes to an end

RIYADH: Startups across the Middle East and North Africa region are gaining momentum, with funding rounds and expansions fueling innovation.

From artificial intelligence to fintech, health tech to media, these developments highlight the region’s growing ecosystem and investor confidence.

Aiming to boost the regional space, Saudi Venture Capital Co. has announced its investment in the $150-million Middle East Venture Fund IV, managed by Middle East Venture Partners. The fund targets technology startups with high growth potential across Saudi Arabia.

It aims to support startups from the seed stage through series A, series B, and eventual initial public offerings or exits, fostering the creation of regional tech champions. It also seeks to contribute to Saudi Arabia’s economic transformation by backing startups that impact key sectors.

“Our investment in the Middle East Venture Fund IV by MEVP supports SVC’s strategy of backing funds that invest in early-stage startups based in Saudi Arabia, aiming to foster their growth into later stages,” said Nabeel Koshak, CEO and board member at SVC.

Furthermore, SVC announced an investment for an undisclosed amount in Raed III LP, an early-stage venture capital fund managed by Raed Ventures.

The fund will target tech-enabled startups across Saudi Arabia and the wider region, primarily focusing on seed and series A stages, emphasizing fintech, enterprise software, and business-to-business Software-as-a-Services sector, predominantly in Saudi Arabia and UAE markets.

Risk intelligence platform Bureau closes $30m funding round to expand to Saudi Arabia

US-based risk intelligence and fraud detection startup Bureau completed a $30 million series B funding round to fuel its plans to expand in the Saudi market.

The round was led by Sorenson Capital with participation from PayPal Ventures and continued support from Commerce Ventures, GMO Venture Partners, Village Global, Quona Capital, and XYZ Ventures.

Bureau is a no-code identity decisioning platform that empowers businesses to prevent fraud, ensure compliance, and enhance user experiences.

The funding will accelerate Bureau’s product expansion into new use-cases, and geographical expansion to several new markets worldwide, including Saudi Arabia, to meet a significant surge in global demand.

OmniOps secures $8m to expand AI infrastructure solutions

Saudi-based OmniOps, an AI infrastructure technology provider, has raised $8 million in funding from GMS Capital Ventures.

The company, founded this year by Mohammed Al-Tassan, specializes in cloud and high-performance computing solutions for businesses of all sizes.

The investment will allow OmniOps to enhance research and development, scale operations, and advance AI infrastructure capabilities across Saudi Arabia. The company aims to deliver scalable, efficient solutions to meet the growing needs of regional industries.

This funding positions OmniOps to play a key role in Saudi Arabia’s digital transformation efforts, contributing to the development of advanced technological ecosystems.

Halo AI launches to connect brands with influencers

Saudi Arabia-based Halo AI has launched its services. Founded this year by Vito Strokov, Rami Saad, and Alex Gadalin, the AI-powered networking platform connects brands with nano- and micro-influencers who excel in specific niches.

The platform uses AI to streamline influencer marketing, offering brands access to highly targeted audiences with authentic engagement. Halo AI aims to support regional businesses in amplifying their reach through innovative marketing strategies.

Following its launch, Halo AI plans to expand its operations to the UAE and Kuwait, further solidifying its presence in the Gulf Cooperation Council market.

CredibleX raises $55m in seed round to support SMEs

UAE-based fintech startup CredibleX has secured $55 million in seed funding, comprising equity and debt.

Investors include Further Ventures for equity and debt providers such as Kilgour Williams Capital and Berkley Square Finance.

Founded in 2023 by Ahmad Malik, Anand Nagaraj, and Hassan Reda, CredibleX provides tailored financial solutions to support small and medium-sized enterprises in their daily operations. The startup aims to address the unique financial needs of SMEs in the region.

The new funds will accelerate CredibleX’s growth, expand its services, and strengthen its position as a leading fintech solution for SMEs in the Middle East.

Revibe secures $7 million Series A for refurbished electronics

UAE-based refurbished electronics marketplace Revibe has closed a $7 million series A funding round co-led by ISAI and Resonance, with participation from Kima Ventures and Edouard Mendy.

Founded in 2022 by Abdessamad Benzakour and Hamza Iraqui, Revibe specializes in providing high-quality, refurbished electronics through its B2C marketplace.

The startup has gained traction in emerging markets with its focus on affordability and sustainability and presence in Saudi Arabia, UAE, Kuwait, and South Africa.

The funds will be used to expand Revibe’s operations, enhance customer care, and invest in quality assurance as it continues to grow its market presence.

Klickl raises $25m series A to expand Web3 banking

UAE-based Web3 banking startup Klickl has raised $25 million in a Series A round led by Web3Port Foundation and Aptos Labs, with participation from Summer Ventures and others. The round values the company at $125 million.

Founded in 2017 by Michael Zhao, Klickl offers a Web3 open finance platform, enabling digital payments, banking, and crypto trading.

Its solutions are designed to facilitate seamless entry into the Web3 ecosystem for users and businesses alike.

The funding will allow Klickl to expand its Web3 banking services in MENA and emerging markets.

Quantix secures $500m asset-backed financing for lending

UAE-based fintech Quantix Technology Projects LLC, a subsidiary of Astra Tech, has raised $500 million in asset-backed securitization financing from Citi. Quantix will use the funding to support its CashNow consumer lending platform.

Founded in 2019, Astra Tech’s Ultra app integrates payments, cross-border transfers, and financing solutions, serving over 150 million users globally. Astra Tech aims to create a super app with capabilities such as digital payments and messaging.

This financing builds on Astra Tech’s previous funding success, including $490 million raised in 2022, enabling the acquisition of fintech PayBy and voice-calling app Botim.

BioSapien raises $5.5m to advance healthtech innovation

UAE-based healthtech BioSapien has raised $5.5 million in a pre-Series A funding round led by Global Ventures with participation from Dara Holdings. The funds will support clinical trials and product development.

Founded in 2018 by Khatija Ali, BioSapien offers MediChip, a 3D-printed drug delivery platform. The technology is attachable to tissues for localized treatment.

The new capital will enable patient enrollment for clinical trials in Abu Dhabi by the second quarter of 2025 and further investment in manufacturing capabilities and talent acquisition.

InvoiceQ raises $1.2 million pre-Series A to expand in GCC

Jordan-headquartered SaaS provider InvoiceQ has secured $1.2 million in pre-Series A funding from investors including Oasis 500, Orange VC, and Flat6Labs.

The company provides e-invoicing solutions and operates in Jordan and Saudi Arabia.

Co-founded in 2020 by Muhannad Tobal and others, InvoiceQ aims to streamline billing processes for enterprises while improving compliance with local regulations. The startup has been expanding its reach across the region.

The new funds will support geographic expansion into Oman, Egypt, and the UAE, as well as further development of its technology platform.

Anghami secures $55m with OSN Group taking majority stake

Lebanon-born music streaming app Anghami has raised $55 million, with $12 million coming as part of a convertible note program from OSN Group. OSN+ now holds a 55.45 percent majority stake in Anghami.

Founded in 2011 by Eddy Maroun and Elie Habib, Anghami merged with OSN+ earlier this year to create a larger media conglomerate. The company plans to use the funds to expand its content library.

The investment follows MBC Group’s acquisition of a 13.7 percent stake in Anghami earlier this year, as the streaming platform continues to strengthen its position in the media industry.

Unipal expands user base with pre-series A funding

Bahrain-born education tech startup Unipal has raised a pre-Series A investment round from Falak Angels Syndicate members.

The platform offers university students exclusive discounts on products and services.

Founded in 2020 by Ali Al-Alawi and Ali Al-Shaer, Unipal claims 160,000 users in Riyadh and 250 brand partnerships after just eight months of operation in the Saudi capital. The platform also boasts 60,000 users in Bahrain.

This investment follows a $500,000 round raised in July 2023, as Unipal continues its rapid regional growth and expansion.

ZSystems raises $1.5m to modernize traditional trade

Morocco-based marketplace ZSystems has secured $1.5 million in seed funding, led by MNF Ventures, Witamax, Cash Plus Ventures, and Kalys Ventures.

The platform empowers retailers by connecting them directly with consumers.

Founded in 2022 by Meriem Benabad and others, ZSystems focuses on revitalizing traditional trade, which accounts for 85 percent of the fast-moving consumer goods market. The company aims to drive competitiveness in underserved markets.

The funds will support ZSystems’ technology development, product expansion, and preparations for its next growth phase.

Oman Investment Authority invests in Elon Musk’s AI venture xAI

The Oman Investment Authority has acquired an undisclosed stake in xAI, Elon Musk’s artificial intelligence startup. This investment aligns with OIA’s strategy to diversify its international portfolio and support emerging technologies.

Founded in July 2023, xAI focuses on generative AI solutions, competing with leading players like OpenAI.

Earlier this month, xAI raised $6 billion in a series B round, attracting investments from Qatar Investment Authority, Kingdom Holding, and global firms like Andreessen Horowitz, bringing its valuation to $50 billion.

OIA’s latest investment in xAI complements its existing stake in SpaceX, Musk’s aerospace company.

This move reinforces the Gulf’s growing interest in cutting-edge technologies and the AI sector.

Iraq Venture Partners receives $2.7m for Iraqi entrepreneurs

Iraq Venture Partners has received $2.7 million from the Netherlands for the Orange Corners Innovation Fund. The funding will support the second phase of the initiative.

OCIF provides Iraqi entrepreneurs with technical expertise, financial backing, and access to extensive networks.


Abu Dhabi property deals up 24.2% in 2024 as foreign investment soars

Abu Dhabi property deals up 24.2% in 2024 as foreign investment soars
Updated 12 sec ago
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Abu Dhabi property deals up 24.2% in 2024 as foreign investment soars

Abu Dhabi property deals up 24.2% in 2024 as foreign investment soars

JEDDAH: Abu Dhabi’s real estate market experienced a 24.2 percent year-on-year growth in 2024, with a total of 28,249 transactions, driven by sustained demand, strategic projects, and a focus on market transparency, official data revealed. 

The Abu Dhabi Real Estate Center reported that the UAE capital saw a 10.45 percent increase in transaction value, reaching 96.2 billion dirhams ($26.19 billion) in 2024. The sector recorded 16,735 sales transactions valued at 58.5 billion dirhams and 11,514 mortgage deals worth 37.7 billion dirhams. 

The market’s growth comes amid Abu Dhabi’s ongoing efforts to develop a transparent property market aimed at attracting both local and global investors. This strategy helped the city secure a spot among the top five global improvers in the 2024 Global Real Estate Transparency Index, compiled by property consultancy JLL. 

This trend is part of a broader regional push, with property markets in Saudi Arabia, Qatar, and the UAE undergoing reforms to better cater to global investor needs. Saudi Arabia, for instance, recently announced that foreigners can now invest in Saudi-listed companies owning real estate in Makkah and Madinah, following a landmark decision by the Kingdom’s Capital Market Authority. 

ADREC Acting Director Rashed Al-Omaira said Abu Dhabi’s inclusion in the GRETI underscores its “commitment to fostering transparency and trust within the sector.” 

“The sustained growth of Abu Dhabi’s real estate market over the past decade reflects a strategy that prioritizes market stability,” he added. 

ADREC also launched 38 new off-plan projects and completed 12 major developments in 2024, with the center adding that these projects were selected to offer a diverse range of options, designs, and price points, catering to a broad spectrum of investors. 

The market also saw a notable increase in foreign direct investment, which grew by 125 percent year on year, with the sector attracting over 7.86 billion dirhams in 2024. This investment came from 2,302 investors across 105 countries, including the US, the UK, and Kazakhstan, as well as Russia, France, and China. 

“The surge in FDI highlights Abu Dhabi’s adaptability and resilience in an evolving global economy. It is a testament to the emirate’s forward-thinking policies, investment-friendly environment, and world-class infrastructure that ensure sustainable growth,” said Al-Omaira.   

This comes as real estate markets in other key UAE cities, including Dubai, Sharjah, and Ajman, saw significant transaction volume growth over the past year, driven by diverse investment opportunities and rising demand for various property types.

Official data from the real estate authorities across the four emirates revealed that the total value of real estate transactions reached approximately 893 billion dirhams by the end of 2024, with more than 331,300 transactions recorded. 

Al-Omaira stated that ADREC is committed to strengthening Abu Dhabi's position as a global investment hub and a model for urban living. 

“Our real estate sector is a cornerstone of the emirate’s economic vision, driving sustainable development and enhancing quality of life for residents through innovative, high-quality projects,” he added. 


Saudi Arabia’s NHC to offer affordable homes 20% below market rates, CEO says 

Saudi Arabia’s NHC to offer affordable homes 20% below market rates, CEO says 
Updated 43 min 59 sec ago
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Saudi Arabia’s NHC to offer affordable homes 20% below market rates, CEO says 

Saudi Arabia’s NHC to offer affordable homes 20% below market rates, CEO says 

RIYADH: Saudi Arabia’s state-owned developer NHC will price units 20 percent below market rates as part of its strategy to meet the surging demand for affordable housing, revealed its CEO. 

In an interview with Arab News on the sidelines of the fourth Real Estate Future Forum in Riyadh, Mohammed Bin Saleh Al-Buty stated that the company will offer more than 140,000 housing units in 2025, starting at SR375,000 ($99,979), “which are very good prices, especially in Riyadh.” 

The company’s goals align with Saudi Arabia’s Vision 2030, which is seeking to address the rising housing demand driven by population growth and economic expansion. 

“Most of the demand is in Riyadh, where we see the highest pressure on prices. However, we are also addressing demand in 17 cities nationwide, ensuring both affordability and quality,” Al-Buty said.

He added: “The focus we have is because the demand is real ... if there is demand, we have to focus on that. But we did not miss other cities as well. We are serving other cities.”

This comes after the company launched NHC Innovation on the event’s first day, a technology-driven subsidiary focused on delivering innovative real estate and municipal solutions while advancing new technologies. 

Al-Buty emphasized the importance of the development, saying: “We became the largest real estate company and market leader, so we decided to spin off a subsidiary to drive innovation and enter a new era of providing AI services.”

He added: “We have more than 20 million clients in our database. The company was born big, and just in 2024, we had more than half a billion transactions. We also had over 3.5 billion visitors to the platform.”

Al-Buty also highlighted NHC’s efforts to proactively manage supply chain challenges by securing materials and contractors in advance. 

“We work with both local and international suppliers to secure materials for the next two to three years. This helps us keep costs manageable despite the rising demand in the market,” he said.

The CEO continued: “That initiative was really great for our partners as well. If we succeed in securing those materials for our project at the current cost, I think we’ve done a great job, and we’re even trying to acquire them at a lower cost.”

He added: “That’s because the overall development in the country is driving prices a bit higher, so we’re working to secure those materials on time and at the current cost.”

NHC, which aims to supply 300,000 housing units by 2025, is expected to host over 1 million residents by 2030. That figure is projected to double to nearly 2 million in subsequent years. 

Al-Buty reiterated NHC’s focus on delivering value to its clients. “We are creating unique opportunities for ownership and investment while ensuring our housing solutions meet the market’s needs.”


Abu Dhabi’s PureHealth agrees to buy 60% stake in Hellenic Healthcare

Abu Dhabi’s PureHealth agrees to buy 60% stake in Hellenic Healthcare
Updated 28 January 2025
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Abu Dhabi’s PureHealth agrees to buy 60% stake in Hellenic Healthcare

Abu Dhabi’s PureHealth agrees to buy 60% stake in Hellenic Healthcare

DUBAI: Abu Dhabi’s PureHealth Holding has agreed to buy a 60 percent stake in Hellenic Healthcare Group, in a deal valuing the provider of private healthcare services in Greece and Cyprus at €2.2 billion ($2.31 billion).

CVC Capital Partners will retain a 35 percent stake in the business while HHG’s CEO Dimitris Spyridis will keep the remaining 5 percent stake, PureHealth said in a statement, without disclosing a timeline for the completion of the deal.

PureHealth, owned by Abu Dhabi sovereign wealth fund ADQ, has been investing in recent years to grow its portfolio and expand globally.

Last year, it acquired British hospital operator Circle Health Group for around $1.2 billion, while in 2022 it snapped a 26 percent stake in US firm Ardent Health Services.

“Integrating HHG into our portfolio not only reinforces our position in Europe but also creates significant value for our group by contributing to revenue diversification, driving operational synergies, and strengthening our financial performance,” said Shaista Asif, Group CEO at PureHealth, in a statement on the company’s website.

“This move aligns with our vision of becoming a global leader in healthcare, with more than 50 percent of our revenues originating outside the GCC.”

The deal will allow PureHealth to serve a further 1.4 million patients annually, it said, noting the move underscores the firm’s “ambition to diversify its revenue streams and enhance operational efficiencies.”

It is also another step in Abu Dhabi’s accelerating efforts to diversify its economy, as the UAE’s capital invests in fields like technology and health to cut reliance on oil revenues.

AI-powered health care company M42, backed by one of ADQ’s bigger peers Mubadala, last week announced a new operating structure to support more acquisitions and expansion into new markets.


Oil Updates — prices hover near two-week low; weak China data adds to demand concerns

Oil Updates — prices hover near two-week low; weak China data adds to demand concerns
Updated 28 January 2025
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Oil Updates — prices hover near two-week low; weak China data adds to demand concerns

Oil Updates — prices hover near two-week low; weak China data adds to demand concerns

NEW YORK/SINGAPORE: Oil prices ticked up but hovered near a two-week low on Tuesday after weak economic data from China and warming weather forecasts elsewhere soured the demand outlook.

Brent crude oil futures rose by 42 cents, or 0.54 percent, to $77.5 per barrel by 7:30 a.m. Saudi time. US West Texas Intermediate crude futures were up 34 cents, or 0.46 percent, to $73.51. Brent settled on Monday at its lowest since Jan. 9, while WTI hit its lowest since Jan. 2.

China, the world’s largest importer of crude oil, reported on Monday an unexpected contraction in manufacturing activity in January, adding to concerns over global crude demand growth.

“The general tone of caution in the risk environment, coupled with weaker Chinese PMI numbers that cast further doubt on China’s oil demand outlook, may serve as a drag on oil prices,” IG analyst Yeap Jun Rong said.

China’s crude oil demand is also expected to be hit by the latest US sanctions on Russian oil trade. FGE analysts see refineries in Shandong losing up to 1 million barrels per day of crude supply in the near-term amid a ban imposed by the Shandong Port Group on US-sanctioned tankers.

“Alternative crude barrels (to Russian supply) are being sought after at the same time, but they come at much higher costs,” the analysts noted.

Several independent refineries in China have halted operations, or plan to do so, for indefinite maintenance periods, sources told Reuters, as new Chinese tariff and tax policies plunge plants deeper into losses.

India, the world’s third-largest crude importer, also faces disruptions to Russian oil supply, but refiners there are taking advantage of a wind-down period in the sanctions to make purchases until March, the FGE analysts said.

In the US, weather forecasts are for warmer-than-normal temperatures through this week, which is weighing on demand for heating fuels after extreme cold sparked a natural gas and diesel rally in prior sessions.

“Temperatures in both regions (US and Europe) are increasing, allowing for heating fuel demand to slide off some,” StoneX oil analyst Alex Hodes said on Monday.

Broader financial markets were under pressure from a surge of interest in a low-cost artificial intelligence model launched by Chinese firm DeepSeek.

“Losses (in the oil market) appear relatively limited from the turmoil in US tech stocks,” IG’s Yeap said.

Still, caution is likely to persist as the Feb. 1 deadline for US tariffs approaches, with any potential trade restrictions likely to introduce downside risks to global growth, which could translate to downward pressure on oil, Yeap added. 


Oman, India revise deal to avoid double taxation

Oman, India revise deal to avoid double taxation
Updated 27 January 2025
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Oman, India revise deal to avoid double taxation

Oman, India revise deal to avoid double taxation

JEDDAH: Oman and India have finalized an updated protocol to prevent double taxation and curb financial evasion related to income taxes, further bolstering their economic ties.

The agreement was signed in Muscat on Jan. 27 by Nasser bin Khamis Al-Jashmi, Chairman of Oman’s Tax Authority, and Indian Ambassador to Oman Amit Narang, as reported by Oman News Agency.

Al-Jashmi highlighted the importance of the new protocol in strengthening economic relations between the two countries, noting that the agreement is the result of ongoing efforts to enhance bilateral cooperation in the tax sector.

In December, Oman also signed a similar agreement with Tanzania to deepen their strategic partnership.

That deal aimed to foster an attractive investment climate, protect investors from double taxation, and increase transparency in financial transactions.

In October, Al-Jashmi represented Oman in signing a similar agreement with Estonia. The agreement adhered to the standard framework set by the Organization for Economic Co-operation and Development.

According to a statement from Estonia's Ministry of Foreign Affairs, the agreement was designed to provide a stable tax environment for both foreign entrepreneurs investing in Estonia and Estonian businesses expanding internationally.

The ministry emphasized that the primary goal of double taxation avoidance agreements was to foster investment between the signatory countries.

Additionally, the ministry highlighted that foreign investors value the assurance that they will not face a higher tax burden than local businesses operating in the target country.

As of October 2024, India exported $410 million worth of goods to Oman and imported $743 million, resulting in a trade deficit of $334 million, according to the Observatory of Economic Complexity.

India’s top exports to Oman included petroleum products valued at $146 million, processed minerals at $24.4 million, and basmati rice at $15 million. Iron and steel exports totaled $13.9 million, while ships, boats, and floating structures contributed $9.93 million.

On the import side, India’s purchases from Oman were led by fertilizers, totaling $118 million. Petroleum products accounted for $92.5 million, and ships, boats, and floating structures reached $77.5 million. Other commodities amounted to $45.2 million, while crude petroleum was valued at $43.5 million.