Startup Wrap — MENA startups raise $2.3bn in 2024 as deal volume grows

Startup Wrap — MENA startups raise $2.3bn in 2024 as deal volume grows
The UAE led with $1.1 billion raised across 207 deals, followed by Saudi Arabia at $700 million from 186 deals. Shutterstock
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Updated 31 January 2025
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Startup Wrap — MENA startups raise $2.3bn in 2024 as deal volume grows

Startup Wrap — MENA startups raise $2.3bn in 2024 as deal volume grows

RIYADH: Startup funding deals across the Middle East and North Africa saw an annual increase of 3.5 percent in 2024, with 610 agreements recorded across the region.

According to a report from Wamada, fintech remained the dominant sector, attracting 30 percent of total funding, or $700 million. 

Software-as-a-service saw strong traction in Saudi Arabia, while Web 3.0 saw $256.8 million and e-commerce also gained momentum with $253 million in funding. 

Despite the strong showing in these sectors, the overall funding value across the startup ecosystem of $2.3 billion represented a 42 percent year-on-year drop.

When excluding debt financing, the decline stood at just 11 percent.

The UAE led with $1.1 billion raised across 207 deals, followed by Saudi Arabia at $700 million from 186 deals, and Egypt securing $334 million across 84 deals. 

Oman ranked fourth with $41.5 million, while Morocco and Tunisia led in North Africa, raising $20.8 million and $13.1 million, respectively. Emerging ecosystems in Jordan, Qatar, and Lebanon also showed modest growth. 

Early-stage startups accounted for over $1.2 billion in investments, while later-stage and pre-IPO rounds saw limited activity. Female-founded startups raised $27.6 million, or 1.2 percent of total funding, with mixed-gender founding teams securing $192 million. 

Ebana secures $2.66m to expand fintech solutions 

Saudi-based fintech startup Ebana has raised $2.66 million in a pre-series A round led by Esnad Legal Consulting and Business Governance. 

Founded in 2020 by Ali Al-Shareef, Ebana provides digital services and technical infrastructure for corporate governance affairs. 

The newly raised capital will be used to enhance Ebana’s investor relations tools, expand its fintech solutions, and strengthen its services for both public and private enterprises. 

Nabeeh secures investment from Ibtikar Fund to grow user base 

Saudi-based e-services platform Nabeeh has raised an undisclosed investment from Ibtikar Fund. 

Originally founded in Palestine in 2021 by Saber Samara and Fawaz Samara, Nabeeh provides an online platform for booking housekeeping, maintenance, and renovation services. 

“Property owners and businesses often struggle with unreliable maintenance and cleaning providers and a lack of transparency. Nabeeh bridges this gap by offering seamless, tech-enabled solutions that prioritize quality, speed, and trust,” Samara said. 

With this funding, Nabeeh plans to double its user base, expand its business-to-business portfolio, and introduce new platform features. 

Silkhaus raises growth funding to expand into Saudi Arabia 




Silkhaus leadership team — left to right: Ankit Shah, co-founder and chief financial officer, Sabine El Najjar, KSA managing director and vice president commercial, Aahan Bhojani, CEO and co-founder, and Peter May, vice president.

UAE-based proptech startup Silkhaus has closed a seven-figure growth funding round led by Nuwa Capital and Oraseya Capital, with participation from Impulse International, Yuj Ventures, Nordstar, and other investors. 

Founded in 2021 by Aahan Bhojani, Silkhaus operates a marketplace for short-term rentals across the UAE. 

The new funding will support its expansion into Saudi Arabia, where it is now open for bookings. This follows a multi-million-dollar pre-Series A round secured last year by Partners for Growth. 

“With the support of our investors and team, we are excited to scale our operations in the UAE and Saudi Arabia, offering innovative solutions to property owners and premium experiences to guests. The short-term rental economy of the GCC (Gulf Cooperation Council) is experiencing a significant growth surge, and we are proud to be leading this growth,” Bhojani said. 

UpLevel raises pre-seed funding to enhance corporate coaching 

Saudi-based education tech startup UpLevel has closed an undisclosed pre-seed funding round backed by a group of angel investors. 

Founded in 2024 by Idris Al-Shayea and Hamad Al-Luhaidan, UpLevel connects companies with professional coaches to enhance employee performance.  

The fresh funding will help UpLevel scale its operations and further develop its coaching network for corporate clients. 

BioSapien extends pre-Series A round to $7m 




The BioSapien team. Supplied

UAE-based health tech startup BioSapien has extended its pre-Series A round to $7 million, with new participation from Golden Gate Ventures, marking the first deployment of its MENA-focused fund. 

Founded in 2018 by Khatija Ali, BioSapien is developing MediChip, a 3D-printed, slow-release drug delivery platform designed to attach to tissue with minimal systemic side effects. 

The extension follows the company’s $5.5 million pre-series A round in December, led by Global Ventures and joined by Dara Holdings. 

Retailhub raises funding to expand SaaS platform 

UAE-based retail SaaS provider Retailhub has secured an undisclosed investment from Angelspark. 

Founded in 2022 by Daniel Alimov and Roman Tikhonov, Retailhub provides an automated platform that synchronizes stock updates from point-of-sale systems to aggregators and consolidates orders into a single application. 

The new funding will enable Retailhub to enhance its platform capabilities, strengthen partnerships, and scale operations within the UAE and beyond. 

Maalexi secures $3m debt financing from Citi 

UAE-based agriculture fintech startup Maalexi has secured a $3 million debt financing facility from Citi to expand its sourcing operations. 

Founded in 2021 by Azam Pasha and Rohit Majhi, Maalexi provides a risk management platform that enables small food and agribusinesses to access cross-border trade. 

The facility will help build a technology-enabled supply chain linking origin markets to the UAE. This follows a $1 million venture debt round secured in July from Stride Ventures. 

Fincart.io raises pre-seed funding to expand logistics platform 

Egypt-based logistics startup Fincart.io has raised an undisclosed pre-seed funding round led by Plus VC, with participation from Plug and Play, Orbit Startups, Jedar Capital, and other regional investors. 

Founded in 2023 by Mostafa El-Masry and Nihal Ali, Fincart.io provides e-commerce retailers with access to a marketplace of delivery providers and an operations dashboard. 

The new funds will support platform improvements, courier network growth, and expansion into the African and Middle Eastern markets. 

Dsquares acquires majority stake in Prepit 

Egypt-based loyalty solutions provider Dsquares has acquired a majority stake in Prepit, an Egyptian B2B SaaS loyalty platform, for an undisclosed amount. 

Founded in 2012 by Ayman Essawy, Marwan Kenawy, and Momtaz Moussa, Dsquares specializes in B2B loyalty programs for industries such as banking, telecom, fast-moving consumer goods, and retail. 

Prepit, founded in 2022 by Karim Hussein and Tarek Afia, provides AI-driven tools to streamline food and beverage operations. 

The acquisition strengthens Dsquares’ presence in the loyalty sector across key Middle Eastern markets, including Saudi Arabia, Egypt, and the UAE.


Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing
Updated 24 February 2025
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Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

RIYADH: The Saudi Authority for Industrial Cities and Technology Zones has revealed plans for a 1.2 million sq. m aviation industry cluster at MODON Oasis in Jeddah.

This ambitious project, developed in partnership with the Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation, aims to localize cutting-edge aviation technologies and strengthen the sector’s supply chains.

The announcement, made during the ongoing Aerospace Connect Forum, was attended by GACA President Abdulaziz Al-Duailej, Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, and MODON CEO Majed Al-Argoubi.

Strategically located near King Abdulaziz International Airport and Jeddah Islamic Port, the aviation cluster is poised to offer an attractive investment landscape for aerospace manufacturing. The site will feature ready-built factories of varying sizes, designed to accommodate companies in the aviation sector and drive the localization of this vital industry.

This initiative is in line with Saudi Arabia’s National Industrial Strategy, Aviation Strategy, and Tourism Strategy, which collectively aim to position the Kingdom as a leading global aviation hub. The broader goal is to transform Saudi Arabia into a center for air transport, handling 30 million passengers and 2 million tonnes of air cargo annually.

MODON, in its commitment to advancing the aviation sector, is participating as a “Gold Partner” in the inaugural Aerospace Connect Forum, which runs in Jeddah until Feb. 25. The event is bringing together prominent local and international aviation experts, fostering a platform for knowledge exchange and business collaboration.

In addition to its efforts in aviation, MODON has also recently launched a food industry cluster in Jeddah, spanning over 11 million sq. m in the city’s second and third industrial zones. According to the Saudi Press Agency, this project is the world’s largest food industry cluster by area, supporting Vision 2030’s goals to enhance food security and industrial growth.

The new aviation industry cluster marks a significant milestone in Saudi Arabia’s strategy to boost industrial competitiveness, drive economic growth, and localize critical technologies, reinforcing the Kingdom’s leadership in the global aviation sector.


Saudi Arabia issues first aircraft maintenance licenses

Saudi Arabia issues first aircraft maintenance licenses
Updated 24 February 2025
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Saudi Arabia issues first aircraft maintenance licenses

Saudi Arabia issues first aircraft maintenance licenses

RIYADH: Saudi Arabia has issued its first-ever industrial licenses for aircraft maintenance and overhaul at the Aerospace Connect Forum in Jeddah, marking a significant advancement in the nation’s aviation sector.

The announcement was made at the inaugural forum, hosted by the National Industrial Development Center and held under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef.

The two companies receiving the first licenses are Middle East Propulsion Co. and Saudia Technic, a subsidiary of Saudia Group. This milestone represents a key step in Saudi Arabia’s efforts to establish a self-sufficient and globally competitive aviation industry, in line with the objectives of Vision 2030 and the National Industrial Strategy.

An official statement said that the newly introduced industrial licensing activities were developed in collaboration with the General Authority of Civil Aviation and the General Authority for Military Industries.

These licenses encompass a wide range of aviation services, including aircraft repair and overhaul, component refurbishment, avionics system maintenance, as well as calibration and repair of electronic systems, and servicing of both military and commercial aircraft.

This initiative, which enables domestic companies to operate in the aircraft maintenance and repair sector, is expected to reduce Saudi Arabia’s dependence on foreign maintenance facilities, enhance localization efforts, and drive investment in high-value aerospace manufacturing and services.

The forum, running from Feb. 24-25, brings together leading experts, policymakers, and investors to explore the latest advancements and investment opportunities in the aviation sector.

Organized by the NIDC in collaboration with the Ministry of Industry and Mineral Resources, GACA, and Saudia Group, the forum serves as a key platform for industry stakeholders to collaborate and shape the future of Saudi Arabia’s aviation ecosystem.

The event will feature discussions on investment opportunities in Saudi Arabia’s aviation sector, infrastructure development for aircraft manufacturing and maintenance, research and innovation in aviation technology, as well as training and workforce development to meet industry demands.

This initiative aligns with the Kingdom’s broader strategy to establish itself as a regional leader in aviation services, creating a competitive business environment for both global and local investors, while enhancing its industrial capabilities.

With the launch of these licenses, Saudi Arabia strengthens its position as a hub for aviation services in the Middle East, reinforcing its commitment to economic diversification and technological advancement.

The forum is poised to play a pivotal role in shaping the country’s aviation roadmap, paving the way for future collaborations, innovations, and sector expansions.


Saudi Arabia tightens corporate ownership rules to boost transparency

Saudi Arabia tightens corporate ownership rules to boost transparency
Updated 24 February 2025
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Saudi Arabia tightens corporate ownership rules to boost transparency

Saudi Arabia tightens corporate ownership rules to boost transparency
  • Rules apply to all businesses operating in Saudi Arabia, including foreign entities
  • Companies must disclose beneficial ownership details upon registration and confirm their accuracy annually

JEDDAH: Saudi Arabia has approved new beneficial ownership rules to enhance corporate transparency and align with global financial regulations. 

Set to take effect on April 3, the measures coincide with the enforcement of the updated Commercial Registry System and were developed in collaboration with experts to align with international best practices, according to the Commerce Ministry. 

The decision was issued by Minister of Commerce Majid Al-Qasabi as part of efforts to strengthen regulatory oversight. The regulations, developed in line with Financial Action Task Force guidelines, require companies to disclose individuals who ultimately control or benefit from their operations. 

The move is part of Saudi Arabia’s broader efforts to modernize its business environment under Vision 2030. The rules aim to enhance transparency by establishing a dedicated database to register and store beneficial ownership data. 

The new rules also reinforce the Kingdom’s adherence to international standards, particularly those set by FATF, which works to protect the global financial system from illicit activities through policy development and enforcement. 

Under the new rules, a beneficial owner is defined as anyone holding at least 25 percent of a company’s capital, controlling 25 percent or more of its voting rights, appointing or dismissing leadership, or exerting significant influence over its decisions. If no individual meets these criteria, the company’s director, board member, or chairman will be designated as the beneficial owner, the release added. 

The rules apply to all businesses operating in Saudi Arabia, including foreign entities, but exempt publicly listed firms, state-owned enterprises, and companies undergoing bankruptcy liquidation. 

The release said companies must disclose beneficial ownership details upon registration and confirm their accuracy annually. Existing firms have until their next annual data confirmation deadline to comply. 

Businesses are required to maintain a dedicated register of beneficial ownership data and provide updates to the Ministry of Commerce. Access to this information will be restricted to regulatory and competent authorities under strict confidentiality provisions. 

The ministry added that non-compliance could result in penalties of up to SR500,000 ($133,000) or other sanctions under the Companies Law. 

The move is part of Saudi Arabia’s broader push to strengthen corporate governance and align with international anti-money laundering and financial crime prevention standards. 


PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub
Updated 24 February 2025
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PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

RIYADH: A €160 million ($167 million) joint venture between the Public Investment Fund’s Alat and TK Elevator has been announced to advance mobility development in Saudi Arabia. 

The partnership will introduce products, end-to-end solutions, and manufacturing to the Kingdom, supported by a local development center. This marks the first elevator and escalator production operation in Saudi Arabia by a global firm, according to a statement.

This falls in line with PIF’s strategy to diversify the Saudi economy and develop key sectors, thereby contributing to the realization of Vision 2030’s objectives for sustainable urban development and economic growth. 

It also aligns well with the fact that the Kingdom’s elevator and escalator market is anticipated to reach $1.84 billion by 2030, according to Markets and Data.

“Alat’s partnership with TK Elevator is a cornerstone of our commitment to create a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics,” CEO of Alat Amit Midha said. 

Under the new deal, Alat will also become a direct TK Elevator shareholder and member of the current investment consortium with a 15 percent stake. This move further cements the firm’s operational strength and its attractive value creation prospects.

CEO of TK Elevator Uday Yadav said the company is “privileged” to form a joint venture with Alat to support the Kingdom’s vision and power his firm’s future organic growth.

Yadav added: “This partnership marks another important milestone in our transformation journey and represents a new era that underscores TK Elevator’s active participation in the upcoming development super cycle in the Kingdom of Saudi Arabia while reinforcing our capabilities in building smart cities of the future across the globe.” 

The CEO went on to say that the firm is pleased to welcome Alat as a direct shareholder and long-term investor in the company and that they are looking forward to benefiting from their engagement. 

The statement further revealed that the transaction is expected to close by the end of the third quarter of 2025, subject to customary statutory and regulatory approvals.

The new venture also reflects TK Elevator’s commitment to enhancing urban living through innovative mobility solutions and services. It will also help TK Elevator benefit from one of the fastest growing and most innovative new installation markets worldwide. 

The newly formed entity will also act as TKE’s sales and service hub in the Kingdom, leveraging the Middle East and North Africa network to drive regional business growth.


Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s 

Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s 
Updated 24 February 2025
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Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s 

Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s 

RIYADH: Saudi Arabia’s economic diversification strategy is transforming local capital markets and driving regional growth, positioning the Gulf Cooperation Council as an emerging financial hub, according to a Moody’s report. 

The Kingdom’s ambitious Vision 2030 plan is reshaping the nation’s financial landscape, with capital markets crucial for funding large-scale investment projects and attracting global investors.

The study further stated that sovereign wealth funds will act as “catalysts for capital market development and put the region on the global investment map.” 

The expansion of Gulf capital markets is being driven by economic diversification and structural reforms. 

Vision 2030 has accelerated investment in key non-oil sectors, creating new opportunities fueling market growth. 

Moody’s analysis aligns with recent reports that highlight the significant growth of Saudi Arabia’s capital market. 

Over the past five years, the Kingdom raised $274 billion, with $130 billion from US dollar-denominated issuances and $144 billion locally in Saudi riyals. 

Moreover, the Saudi Exchange experienced a 40 percent liquidity increase in 2024 compared to 2023. 

Foreign participation is considered essential for this transformation, and “debt capital markets have significant room for expansion,” the report stated. 

Regulatory reforms are expected to further boost international equity investment by easing foreign ownership rules and new offering requirements, attracting both passive and active inflows and encouraging greater private sector participation. 

These regulatory and operational enhancements have already led to the inclusion of the Saudi equity market in global indices, boosting liquidity and institutional investment, with further growth expected from increased initial public offerings, the study stated. 

Private credit markets are also expected to grow as investor appetite for alternative investments rises. 

Given the significant funding needs associated with economic transformation, alternative investments will gain traction. 

Moody’s believes that these include regional and global private credit funds, direct lending, and structured finance solutions. 

Private credit is also emerging as a viable alternative for small and medium-sized enterprises, making this option a viable alternative for this underserved segment, as banks have historically been cautious in lending to SMEs. 

Despite strong growth prospects, challenges remain, the report highlighted, adding: “Regulatory and legal complexities, together with a limited track record in some asset classes may impede long-term growth.” 

Additionally, the region’s dependence on hydrocarbon exports and exposure to geopolitical risks could impact market stability and investor sentiment. 

Sovereign wealth funds will continue to play a major role in shaping regional capital markets, as they provide liquidity, enhance market depth, and anchor foreign investor confidence. 

“Saudi Arabia’s Public Investment Fund has been central to the Kingdom’s economic diversification strategy by directing investments into key non-oil sectors and planning major IPOs, raising the profile of the Saudi stock market,” the report added.