Digital nomads flee virus-hit Manila for shattered tourist towns

Tanya Mariano sitting at the porch of her hotel in San Juan town, Philippines. (AFP)
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Updated 19 June 2021
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Digital nomads flee virus-hit Manila for shattered tourist towns

  • The impact of COVID-19 travel restrictions on the sector has been dramatic: $37 billion slashed from the economy and the loss of over two million jobs, according to World Travel and Tourism Council data

SAN JUAN: After months cooped up in coronavirus-hit Manila, Tanya Mariano fled the Philippine capital to work from the beach, joining a growing number of digital nomads helping a devastated tourism industry stay afloat.
A ban on foreign holidaymakers entering the archipelago nation and domestic travel curbs since the pandemic began last year have forced many operators to close and wiped out millions of jobs.
Many digital workers in congested Manila, fearing COVID-19 and fed up with lockdowns and restrictions, are escaping to largely deserted nature hotspots to do their jobs — injecting much-needed money into communities dependent on outside visitors.
Sitting with her laptop on the balcony of the ocean-view apartment she rents in San Juan, a surf town several hours north of her home, Mariano says the move has been a “big quality of life improvement.”
“Being close to the ocean, being close to nature is very calming,” said Mariano, 37, a freelance writer and communications specialist.

HIGHLIGHTS

• The white-sand resort island of Boracay has been turned into a ‘ghost town,’ where most of the rooms are filled with long-term digital nomads from Manila. • Official figures show arrivals to the island fell to less than 335,000 last year, compared with more than 2 million in 2019.

“When I’m in a meeting, usually Zoom or Google Meet, I try not to use the beach as my background — I just show people the wall so they don’t hate me.”
There are no official figures on the number of people working remotely from the country’s picture-postcard beaches and dive spots, but it is certainly a fraction of the millions of tourists that usually flock to its shores.
The impact of COVID-19 travel restrictions on the sector has been dramatic: $37 billion slashed from the economy and the loss of over two million jobs, according to World Travel and Tourism Council data.
Bravo Beach Resort on the southern island of Siargao — a renowned surfing destination — has felt the pain acutely.
Normally packed out with local and international tourists, it now averages around five to 10 guests at any one time — about 10 percent of its capacity — said general manager Dennis Serrano.
With the resort hemorrhaging as much as 200,000 pesos ($4,180) a month, he hopes the situation will be “back to normal” by next year.
Even the white sand resort island of Boracay has been turned into a “ghost town,” according Eugene Flores, manager of the La Banca House boutique hotel, where most of the rooms are filled with long-term digital nomads from Manila.
Official figures show arrivals to the island fell to less than 335,000 last year, compared with more than 2 million in 2019.
“When you go out you can see shops, you can see restaurants, you can see hotels that are really closed. Only a few are open,” Flores said. The glacial pace of the country’s COVID-19 vaccine rollout is likely to delay the full reopening of the country’s beleaguered tourism industry.
For now, digital nomads are a “target market,” said the Department of Tourism, encouraging resorts and hotels to cater to the “new breed” of travelers by offering fast internet and wellness activities.
The influx of mobile workers, whose Manila salaries stretch further in the provinces, is keeping businesses like Papa Bear restaurant in San Juan afloat.
“You are not completely bleeding out, you’re still bleeding out for sure, but you’re at least generating something to offset enough of it,” said owner Denny Antonino.
Digital nomads now make up 30-40 percent of his customers and he hopes the trend continues after the pandemic to even out the seasonal fluctuations.
“They’re able to do their work but in between meetings they can surf, they can go hiking, they can go to the falls — there are more things to do,” said Antonino.


Economists skeptical of Pakistan’s projected 3.6 percent growth rate for next fiscal year

Updated 02 June 2024
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Economists skeptical of Pakistan’s projected 3.6 percent growth rate for next fiscal year

  • Government is expected to present the annual budget on June 10, as it hopes the inflation to drop to 12 percent
  • Economists say poverty, unemployment will increase amid tight fiscal and monetary policies, high interest rates

ISLAMABAD: Pakistani economists on Saturday expressed skepticism over the government’s claim it would be able to accelerate economic growth to 3.6 percent in the next fiscal year from 2.4 percent in the outgoing financial year, warning that employment and poverty rates could increase further in the coming months.

Prime Minister Shehbaz Sharif’s administration is expected to present the annual budget on June 10, at a time when the country is facing an economic crisis with double-digit inflation and struggling to secure funding from the International Monetary Fund (IMF).

The government on Friday approved a 3.6 percent growth target for the 2024-25 budget, boosting the development allocation to Rs1.2 trillion ($4.3 billion) from Rs950 billion ($3.4 billion) in the outgoing fiscal year, which has now been slashed to Rs717 billion ($2.6 billion) due to fiscal constraints.

“Looking at the economic indicators including agricultural and large-scale manufacturing growth, it seems the government may hardly be able to achieve around three percent growth rate,” Sajid Amin, economist and deputy executive director at the Sustainable

Development Policy Institute (SDPI) in Islamabad, told Arab News.

“The governments usually budget a high growth target and then revise it down,” he said, referring to the outgoing fiscal year’s growth rate as the government had targeted 3.5 percent but achieved only 2.4 percent.

Amin said that around nine million youth were entering the labor market annually and Pakistan would require at least a five percent growth rate to create job opportunities for them.

“Even if the government achieves the growth target, the unemployment and poverty rate would unfortunately increase,” he said.

According to a recent Planning Commission report, the government expects inflation to moderate to 12 percent in the next fiscal year while admitting that growth prospects “hinge upon political stability, exchange rate, macroeconomic stabilization under IMF’s program and expected fall in global oil and commodity prices.”

Ali Khizar, an economist, said the country was faced with gross financing gaps and development would remain in check with real interest rates to stay positive.

“Pakistan’s current account is expected to stay close to zero until the foreign exchange reserves build,” he told Arab News, adding that commercial financing revenues would remain low and with all this Pakistan would not be able to achieve the targeted growth rate.

“Even 3.6 percent growth rate is not a good number to create job opportunities and bring people out of poverty,” he continued, adding that Pakistan would have to ensure tight fiscal and monetary policies with high interest rates to secure the IMF loan program.

These, he pointed out, would slow down the economy.


Project management practices in spotlight at Riyadh forum

Updated 53 min 9 sec ago
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Project management practices in spotlight at Riyadh forum

  • Two-day annual event will highlight developments in project management across various sectors

RIYADH: Project managers and experts are scheduled to gather in Riyadh for the third Global Project Management Forum to share their experiences and discuss best global practices in the sector.

The two-day annual event will be held on June 2-3 to highlight the latest developments in the field of project management across various sectors and serve as a platform for industry experts to share creative ideas to achieve their professional goals.

To be held under the theme “We Achieve the Dream: Leadership, Empowerment, Sustainability,” the event aspires to showcase Saudi Arabia’s distinguished position and leading role in colossal and futuristic projects worldwide.

The forum is designed to bring together the most influential global community of project managers and diverse stakeholders for immersive learning, networking, and collaboration.

Last year, the event succeeded in attracting 2,609 participants, and a much larger number is expected this year.

Badr Burshaid, president of the Project Management Institute-KSA chapter, emphasized the distinguished position that the forum has been able to achieve over the past two consecutive years.

“Since its inception, the forum annually attracts project leaders from around the world, including thought and business leaders, academics, professional and technical managers, as well as major organizations and institutions, to exchange knowledge and experiences,” he stated.

Burshaid added: “This contributes to the implementation of government initiatives aimed at making Riyadh one of the most sustainable and economically significant cities in the world.”

Additionally, GPMF aspires to advance the Kingdom’s Vision 2030 by enhancing the skills and capabilities of project management professionals in the Kingdom. 

Support from the govern-ment, private sector, and professio-nal community has propelled Saudi Arabia into a leadership position in several global project manage-ment certifica-tions.

Badr Burshaid, president of the Project Management Institute-KSA chapter

Burshaid told Arab News that the event emphasizes how effective project management ensures timely, budget-conscious, and high-quality completion of initiatives.

“This strategic approach not only supports the Kingdom’s economic diversification (plans) by optimizing project efficiency and effectiveness but also contributes to a robust framework where organizations utilizing these practices consistently achieve a 92 percent success rate in meeting project goals,” he said.

Burshaid added: “Thus, GPMF is instrumental in fostering a disciplined and consistent approach to project management, vital for the realization of Vision 2030’s objectives.”

The official also outlined the expected growth of the project management profession in Saudi Arabia over the next five years.

He predicted increased demand for skilled project managers across various sectors and emphasized the importance of professional development and adherence to international standards.

Moreover, the engagement of participants from across the world at the forum is expected to enrich the local project management environment and contribute to establishing a globally competitive landscape.

“This global interaction will help materialize the vision of establishing a dynamic and internationally competitive project management landscape in Saudi Arabia,” Burshaid told Arab News.

Additionally, “the global demand for project management skills is escalating, with an estimated need for 25 million new professionals by 2030, underscoring the critical role of this profession in contemporary economies,” he added.

Fostering Saudi Arabia’s professional landscape

Saudi professionals will also benefit from the training and certification opportunities offered by the GPMF.

These programs ensure access to advanced project management methodologies, tools, and best practices.

Thus, GPMF’s impact on the Kingdom’s workforce is significant, as it cultivates a highly skilled talent pool capable of managing complex projects, which in turn drives economic growth.

“Support from the government, private sector, and professional community has propelled Saudi Arabia into a leadership position in several global project management certifications,” Burshaid explained.

He continued: “Moreover, current data highlights the strong emphasis on professional development in this field: Sixty-one percent of organizations invest in project management training, and 47 percent have established a clear career pathway for project professionals.”

Burshaid further explained that over 20 percent of project managers intend to pursue certification within the next year. 

Last year, the event succeeded in attracting 2,609 participants, and a much larger number is expected this year. (SPA)

The forum caters to a diverse audience from the government and private sectors, semi-government sectors, engineering, contracting, and procurement companies, startups, construction and infrastructure firms.

It also targets project managers, strategic managers, developers, project management office managers, consultants, and technology providers.

The forum also aims to empower female professionals, and ambitious youth with the necessary skills and knowledge to excel in project management.

This is achieved by highlighting key topics in the economy, foresight and governance, work methods and value chains, large-scale projects and sustainable social impact, digital transformation, uses of artificial intelligence, soft skills, and other related topics in project management.

Strategic initiatives 

Furthermore, Burshaid highlighted several initiatives aimed at enhancing the project management field and supporting local talent in Saudi Arabia through a series of strategic initiatives.

These initiatives include mentorship programs, scholarships for project management training, and collaborations with universities to integrate relevant courses into their academic programs.

The goal is to equip emerging talent with the necessary skills, knowledge, and opportunities for successful careers in project management. 

FASTFACT

The forum is designed to bring together the most influential global community of project managers and diverse stakeholders for immersive learning, networking, and collaboration.

“Further strengthening our commitment, we have formed partnerships with five Formula 1 school teams throughout Saudi Arabia. These collaborations aim to provide the teams with the necessary knowledge and financial support to excel in their projects,” Burshaid stated.

He added: “Additionally, we have conducted more than 230 training sessions aimed at boosting the capabilities of local talents, complemented by our active sponsorship of professionals across the Kingdom.”

Burshaid went on to say that as they approach 2030, there is an expectation that the demand for skilled project managers will significantly increase.

To meet this growing demand globally, it is estimated that approximately 2.3 million new project managers will need to be developed each year. This projection aims to address a total global demand of 25 million project managers by the end of the decade.

“Our initiatives are key to meeting these challenges and ensuring the sustained growth and success of the project management profession in the region and beyond,” he said.

Contribution to SMEs

Burshaid also outlined efforts to support the growth of small and medium enterprises in Saudi Arabia through targeted training programs tailored to address specific challenges.

These initiatives aim to equip SME owners and managers with advanced project management skills, leading to improved outcomes, increased efficiency, and innovation.

“The forum provides SMEs with access to critical insights and opportunities for expansion, supporting the development of a vibrant SME sector. This sector is vital for driving innovation, job creation, and gross domestic product growth in Saudi Arabia,” Burshaid said.

He added: “SMEs’ adaptability and capacity for innovation not only boost employment but also attract foreign direct investment, contributing to a robust business ecosystem.”

 Burshaid underlined that supportive measures such as the establishment of SME Bank to enhance financial access, technology adoption, and workforce diversity, solidify Saudi Arabia’s reputation as an innovative investment hub.

The country’s high global ranking in venture capital availability underscores the positive impact of Vision 2030 on the SME environment.

The GPMF is more than simply a learning experience; it also provides an opportunity to network with over 1,000 project and program management professionals from various organizations and backgrounds.

Participants can network with one another, discuss ideas, learn from each other’s experiences, and form significant professional ties that may persist beyond the event.

The forum does provide a platform for the development of new collaboration and career opportunities.

A day before the GPMF begins, guests can attend masterclasses given by some of the industry’s specialists. They will acquire insights into the latest tools, technologies, and techniques and learn how to apply them to their projects for better results.


Saudi Arabia’s cosmic aspirations fueling economic prosperity beyond earth

Updated 01 June 2024
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Saudi Arabia’s cosmic aspirations fueling economic prosperity beyond earth

  • Vision 2030 envisions the Kingdom as a formidable player in space exploration and technology

RIYADH: Space exploration has transitioned from being solely government-driven to becoming an essential element of our everyday lives, significantly enhancing our quality of life. 

Saudi Arabia is charting a course toward the stars, propelled by an audacious vision that extends far beyond terrestrial boundaries. Vision 2030 envisions the Kingdom as a formidable player in the global arena of space exploration and technology. 

In an interview with Arab News, Amar Vora, head of space at Serco Middle East, noted that the genesis of Saudi Arabia’s cosmic aspirations can be traced back to 1985, with the historic journey of Saudi Prince Sultan bin Salman Al-Saud and the launch of Arabsat-1A. 

“Let’s not forget the impressive achievements of the King Abdulaziz City for Science and Technology, which has been helping to shape the national vision in space, building up knowledge, capacity, and infrastructure for over 20 years,” he said. 

Vora highlighted the 17 satellites launched by KACST since 2000, along with the Saudi Space Agency’s formation from the Saudi Space Commission.  

He added: “Space endeavors are no longer an exclusive playground for government; it is increasingly becoming a key component of our day-to-day lives, positively impacting our quality of life.”

Pioneering achievements 

Saudi Arabia’s journey into space began decades ago, and since then, the Kingdom has achieved remarkable milestones. 

Notably, the landmark partnership with Axiom Space marked a significant milestone, as astronauts Rayyanah Barnawi and Ali Al-Qarni embarked on the Ax-2 mission to the International Space Station in 2023.  

Barnawi became the first Saudi woman to journey into space, symbolizing Saudi Arabia’s commitment to gender equality and inclusivity in the realm of space exploration. 

Commenting on this endeavor, Vora said: “Of course, the Ax-2 mission provided the space community with a flavor of what’s to come from KSA’s space ambitions, becoming one of only a few countries to have achieved human spaceflight, and that in record time since the Saudi space decree was ratified!” 

He went on saying that partnerships with companies like Axiom Space “that are transforming and democratizing access to human spaceflight, highlight the ability of CST and SSA to capitalize on innovative solutions and services in the market.” 

Vora commended Barnawi’s efforts and said that this “is what we should come to expect from the Saudi and the global space sector. This is a sector that provides equitable representation and inspires and encourages engagement from people of all backgrounds and genders.”

Saudi Space Agency 

The Saudi Space Agency oversees the formulation and execution of the National Space Strategy, aimed at positioning the Kingdom as a leading spacefaring nation. 

Vora explained: “In doing so, SSA will be required to develop national capabilities in space, across the space value chain, from upstream (satellite systems and technologies), midstream (ground systems and operations), to downstream (data management and value-added services). The agency will also be responsible for promoting the uptake of space data across government and industries.” 

According to the top official, these advancements necessitate industry support for design, delivery, and operation, giving the agency a mandate to foster private sector expansion. 

This entails partnerships and investments with companies of varying sizes and backgrounds, both domestic and international, facilitated by the establishment of the National Space Co. 

“In implementing the strategic vision, SSA also has a key role to collaborate with international partners, leveraging international and long-standing experience and capabilities, with mutual interests in achieving scientific excellence,” Vora said.

Ambitions beyond earth 

Yet, Saudi Arabia’s cosmic ambitions extend far beyond the confines of earth’s atmosphere. 

With plans to develop a robust astronaut corps, participate in lunar exploration missions, and foster a thriving commercial space sector, the Kingdom is poised to carve out a formidable presence in the cosmos. 

Saudi Arabia is set to play a crucial role in the entire space value chain, focusing on localizing satellite technology production, enhancing space situational awareness, and utilizing space data for various sectors, including climate-related initiatives, according to Serco. 

A new report by the World Economic Forum predicts that the global space economy could reach $1.8 trillion by 2035, rivaling the semiconductor industry.  

Space technologies, like communications and earth observation, are expected to become as integral to daily life as semiconductors. 

The report emphasized that space will increasingly connect people and goods across industries, with benefits extending beyond financial gains to include addressing global challenges. 

Space endeavors are no longer an exclusive playground for government; it is increasingly becoming a key component of our day-to-day lives.

Amar Vora, head of space at Serco Middle East

“Intensified collaboration between diverse stakeholders from the public and private sectors will be key to unlocking and maximizing the industry’s exponential potential for years to come,” it added. 

From satellite manufacturing to space tourism, the Kingdom is primed to capitalize on the burgeoning space industry, diversifying its economy and driving innovation. 

Abdullah Al-Dawsari, who is an aerospace and defense project manager, told Arab News that “Saudi Arabia has the opportunity to leapfrog in key emerging areas of the space economy.” 

He said that this could be done through “strategically investing in next-generation capabilities by developing advanced satellite manufacturing using robotics, 3D printing, modular designs, offering low-cost launch services and rocket manufacturing by innovating in materials, propulsion, and reusability.” 

He added: “Providing innovative incentives like grants, tax benefits, and funding opportunities for research and development in the space sector and removing bureaucratic barriers can further stimulate the industry.” 

“Ultimately, space is becoming a cornerstone for economic growth, and this is exactly the vision and direction we are seeing from Saudi’s recent strides in space,” Serco’s top official said. 

The economic benefits of space exploration are manifold, according to Vora. Space technologies and data are critical assets for numerous industries, including agriculture, mobility, environment, defense, and many others.  

“We are seeing that space-enabled services have a role in the Saudi giga projects; for example, we see increased awareness, interest, and uptake from NEOM, Red Sea Global, and others,” he said. 

Economist and policy adviser, Mahmoud Khairy, said in an interview with Arab News that Saudi Arabia’s endeavors in space “isn’t just about reaching for the stars; it’s about building a smarter economy.” 

He added: “By venturing into space, Saudi Arabia aims to not only boost its global standing but also inspire young Saudis to pursue careers in science and tech. It’s all part of a bigger plan to transform the economy, putting the Kingdom on the map as a leader in space exploration while paving the way for a brighter, more sustainable future.”

Regulatory framework  

The Communications and Space Technology Commission has recently released regulations and a permit application to encourage private sector involvement in the earth observation services market. This initiative aims to boost GDP through value-added products. 

The Communications and Space Technology Commission has recently released regulations and a permit application to encourage private sector involvement in the earth observation services market, aiming to boost gross domestic product through value-added products.  

The initiative will grant permits to entities establishing EO platforms, facilitating data collection and processing. The documents outline requirements for applicants and emphasize user rights and data security. Interested parties are encouraged to review and apply for the permit.   

Key initiatives, such as the Center of Excellence for Earth and Space Science and the Center of Excellence for Aeronautics and Astronautics, underscore Saudi Arabia’s commitment to fostering world-class capabilities in space technology and research.  

Moreover, strategic partnerships with leading space agencies and organizations propel the Kingdom’s space aspirations to new heights. 

Vora emphasized that “strategic partnerships are essential in realizing the vision of the space sector in Saudi Arabia.” 

Saudi Arabia’s endeavors in space isn’t just about reaching for the stars; it’s about building a smarter economy.

Mahmoud Khairy, economist and policy adviser

He added: “For an emerging space-faring nation, partnerships enable effective knowledge transfer and opportunities to learn from past successes and failures. It allows the ability to share resources, risk, and infrastructure, advance scientific and technological research, and gain access to state-of-the-art innovations from a global ecosystem.” 

Vora explained that the most famous and widely referenced example of international partnerships and collaboration is the International Space Station, where it showcases the benefits of national collaboration. 

He went to say: “Private space companies providing both B2G (business to government) and B2B (business to business) services are now the norm, along with the utilization of space data-driven solutions across adjacent industries.” 

He went on explaining that this can be done by “introducing advanced technologies and services such as high-resolution imaging, data analytics for climate monitoring, urban planning solutions, and defense and security applications.” 

Al-Dawsari added: “Private companies, with their flexibility and innovative approaches, can significantly contribute to the space industry.” 

Private sector involvement in Saudi Arabia’s space industry has key implications for economic growth. It drives innovation, creates jobs, and attracts foreign investment, enhancing the Kingdom’s global competitiveness, according to Khairy.

A unique cosmic identity 

Beyond scientific and economic gains, Saudi Arabia’s cosmic journey holds profound societal implications.  

By inspiring the next generation of scientists, engineers, and explorers, the Kingdom is cultivating a legacy of innovation and discovery that transcends borders.  

“Beyond the clear economic benefits of Saudi’s endeavors in space, it undoubtedly has an impact on society,” Vora noted. 

National space endeavors along with international collaboration provides a catalyst for engagement in STEM fields through inspiration and integration into education, he highlighted. 

Vora added: “It’s great to see the mandate imposed by KSA last year to integrate space and earth sciences into secondary education curricula.” 

As Saudi Arabia ventures into space, the Kingdom remains committed to promoting sustainability and responsible stewardship of the cosmos.  

Sustainability comes in various forms in relation to Saudi’s space policy, according to Vora. 

“First, it’s KSA’s vision to create a sustainable, localized space industry and ecosystem — this requires support from the government in establishing an industry with long-term market opportunities,” he explained.  

Vora went on saying: “It’s how the national space program contributes toward Saudi’s vision to be a leader in environmental and climate sustainability. It’s what I call sustainability from space.”  

As space access becomes easier and launches more frequent, our space environment faces congestion and the risk of debris colliding with satellites. Improved technologies, regulations, and in-orbit solutions are needed to monitor and mitigate space debris.  

“Saudi space policy demonstrates leadership in this domain, enhancing the Kingdom’s role in the sustainability of space through investment in technologies to track and monitor space debris,” Vora emphasized. 

Khairy highlighted that space exploration requires a “whole army” of experts, from scientists and engineers to technicians and support staff.  

“As the space industry grows, so does the need for all sorts of services, from manufacturing to transportation. That means more jobs for Saudis across the board,” he added.

Sovereign wealth funds 

The pivotal role of sovereign wealth funds has become increasingly apparent in recent times, particularly in the Middle East.  

They have spearheaded economic diversification efforts, as reported by Euroconsult, a consulting firm specializing in the space sector. 

The report added: “Prominent funds like the UAE-based Mubadala Investment Company, the Saudi Public Investment Fund (PIF), and the Oman Investment Authority (OIA) have allocated substantial resources to finance local, regional and international space projects and companies.” 

Notable examples include partnerships like the one between Saudi Telecom Co. and PIF to establish IoT Squared, a technology firm specializing in the Internet of Things, as well as OIA’s acquisition of an equity stake in SpaceX. 

These investments not only support local, regional, and international space projects and companies but also bring tangible benefits to the countries involved, the report added. 

Economist Khairy said that the PIF is “already planning to invest heavily in the space sector and could be a major player in funding the Kingdom’s space dreams.” 

He added: “With its hefty financial resources and focus on long-term investments, it could provide the cash needed to launch satellites, conduct research, and build space infrastructure. Plus, investing in space could boost Saudi Arabia’s global reputation and competitiveness, drawing in even more investment and talent.” 

“When Saudi Arabia aims for the stars, it’s not just about the thrill of discovery; it’s about building a brighter economic future right here at home,” Khairy concluded. 


Saudi startups take lead in MENA funding space

Updated 01 June 2024
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Saudi startups take lead in MENA funding space

  • Sector garners over 53 percent of MENA venture debt financing in 2023

CAIRO: Saudi Arabia’s startup ecosystem has affirmed its leading position in the funding space, capturing over 53 percent of the region’s venture debt financing in 2023, according to MAGNiTT’s latest report.

The venture data platform revealed that Saudi startups raised a total of $400 million in venture debt last year, a 602 percent growth compared to $57 million in 2022.

Venture debt is a type of financing for early-stage companies that complements equity funding. It includes growth capital for expansion, equipment financing for asset acquisition, and accounts receivable financing for managing cash flow.

The Middle East and North Africa region saw a total of $757 million in venture debt financing in 2023, a 262 percent year-on-year growth.

The UAE followed Saudi Arabia with a total of $353 million in financing in 2023, a 222 percent yearly increase. Egypt came in third with $4 million, an 86 percent annual drop.

In terms of deal count, the Emirates leads the region with six transactions, indicating a 25 percent yearly decrease; Saudi Arabia with four, a 100 percent annual increase, and Egypt with two and a 75 percent year-on-year drop.

Fintech emerged once again as the sector of choice for investors, accumulating $601 million in financing, a 325 percent yearly increase.

Buy now, pay later giants Tabby and Tamara drove the sector’s triple-digit growth, amassing $600 million of fintechs’ total financing. 

Founded in 2022 by Sean Trevaskis and Enver Sorkun, Growdash uses software solutions to boost restaurants’ marketing and operational efforts. (Supplied)

This is mainly due to the subsector’s capital-intensive nature and the growing demand for consumer credit financing tools.

Transport and logistics came in second with $150 million in venture debt, a 162 percent YoY increase, and e-commerce with $3 million, a 57 percent drop.

The leading investors by capital deployed were mainly foreign, with the top three from the US, namely, Goldman Sachs, Partners for Growth, and Atalaya, followed by CoVentures from South Africa and Shorooq Partners from the UAE.

Agritech startup iyris closes $16m series A round

Riyadh and Dubai-based agritech startup iyris, formerly known as RedSea, closed a $16 million series A funding round led by US-based Ecosystem Integrity Fund with support from Global Ventures, Dubai Future District Fund and Kanoo Ventures as well as Globivest, and Bonaventure Capital.

Founded in 2018 by Ryan Lefers, Mark Tester, and Derya Baran, iyris offers advanced commercial farming solutions for low to mid-tech farmers in hot climates worldwide.

Proceeds will enhance sales coverage and bolster iyris’ international sales pipeline for SecondSky greenhouse covers and nets.

Additionally, the funds will drive the development of innovative heat-blocking products and resilient plant genetics.

This investment underscores iyris’ dedication to empowering farmers to sustainably mitigate climate change impacts, address food security concerns, and achieve key UN Sustainable Development Goals.

BIM Ventures and SBI Holdings launch $100m joint investment fund

Saudi Arabia-based VC studio BIM Ventures has partnered with Japan’s SBI Holdings to launch a $100 million joint investment fund aimed at supporting Saudi startups.

The fund will provide startups with funding, expert guidance, and mentoring throughout their establishment and growth phases.

The memorandum of understanding for the fund was signed during the Saudi-Japan Vision 2030 Business Forum, under the auspices of the Ministry of Investment of Saudi Arabia.

UAE’s Growdash closes $1.8m seed round

Dubai-based foodtech software as a service solution Growdash closed $1.8 million in a seed funding round led by Oryx Fund and Oraseya Capital.

Founded in 2022 by Sean Trevaskis and Enver Sorkun, the company uses software solutions to boost restaurants’ marketing and operational efforts.

UAE foodtech startup GrubTech secures $15m in series B funding

UAE-based foodtech startup GrubTech has raised $15 million in its series B round, an extension of series A led by Jahez and including participation from Addition and Hambro Perks Oryx Fund.

Founded in 2019 by Mohamed Al-Fayed, Omar Rifai, and Mohamed Hamedi, GrubTech is a software integration and unified commerce platform that provides restaurants and cloud kitchens with software solutions to streamline operations.

TVM Capital Healthcare closes $250m Afiyah Fund

UAE-based healthcare private equity firm TVM Capital Healthcare has closed a $250 million Afiyah Fund LP.

The fund was led by JADA, a Public Investment Fund company, along with a group of Saudi, Gulf, and European investors.

The Afiyah Fund aims to support domestic and international health tech startups entering the market, with a focus on the key medical priorities of Saudi Vision 2030.

TVM Capital plans to mobilize $400 to $500 million in the Saudi healthcare sector, with anticipated co-investment offers from its LP base.

Proptech startup Holo secures pre-series A funding

UAE-based proptech startup Holo has raised an undisclosed amount in a pre-Series A funding round led by Dubai Future District Fund and Oryx Fund, with participation from Aditum Investment Management Limited.

Launched in 2020 by Michael Hunter and Arran Summerhill, Holo offers digital mortgage services that simplify the process of owning a home by allowing buyers and homeowners to explore refinancing options.

Holo plans to use the new capital to strengthen its market position in the UAE, grow its team, and expand its reach across the Gulf region, with an immediate focus on Saudi Arabia.

In February 2023, Holo closed a seven-figure seed round.

Shorooq Partners announces first close of $100m credit fund

UAE-based alternative investment manager Shorooq Partners has announced the first close of its $100 million second private credit fund.

The fund was established in collaboration with Korea’s IMM Investment Global, which joined as a minority partner.

The fund will assist MENA-based startups with an average ticket size of $10 million in sectors such as manufacturing, industrials, financing, and software services.

Founded in 2017 by Mahmoud Adi, Shane Shin, and Kunal Savjani, Shorooq Partners is an alternative investment manager across MENA.

Its first credit fund, now fully deployed, has invested in companies like Pure Harvest and Tamara.


ACWA Power signs deal for major green hydrogen project in Tunisia

Updated 01 June 2024
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ACWA Power signs deal for major green hydrogen project in Tunisia

  • Saudi-listed company plans first phase with capacity of 200,000 tons per year powered by 4GW of renewable energy
  • Tunisia envisioned as major site for green hydrogen production and export to Europe

TUNIS: Saudi-listed ACWA Power, the world’s largest private water desalination company and a leader in energy transition, has signed an agreement with the Tunisian government for a project that will produce up to 600,000 tons per year of green hydrogen in three phases, for export to Europe.

The memorandum of understanding was signed by Fatma Thabet Chiboub, Tunisia’s minister of industry, mines and energy, and Marco Arcelli, CEO of ACWA Power.

ACWA Power will develop, operate and maintain 12GW of renewable energy electricity generation units including storage systems and transmission lines, along with water desalination plant, electrolyzers and infrastructures to connect to the main pipeline.

The first phase will involve installing 4GW of renewable energy units, 2GW of electrolyzer capacity, as well as battery storage facilities, to produce 200,000 tons per year of green hydrogen, which will be exported through the South2 Corridor, a hydrogen pipeline initiative led by European TSOs connecting Tunisia to Italy, Austria and Germany.

Commenting on the announcement, Ouael Chouchene, secretary of state for energy transition, said: “This project aligns perfectly with the Tunisian government’s national green hydrogen strategy released in October 2023, which targets an annual production of 8.3 million tons of green hydrogen and byproducts by 2050. We are confident that this agreement with ACWA Power will leverage Tunisia’s strengths, including its strategic geographic location, existing infrastructure, and skilled workforce, to create a more sustainable future for the country.”

The project will play an integral role in supporting Tunisia’s National Strategy for the Development of Green Hydrogen and its Derivatives, which was launched in October 2023. The strategy includes an action plan to export more than 6 million tons of green hydrogen to Europe by 2050.

“We are excited to work with the Tunisian government on this visionary project, bringing our expertise in renewables, desalination and green hydrogen to build a bridge with Europe to help reach its decarbonization targets. This project can also contribute significantly to economic growth, job creation, and sustainable energy solutions, exemplifying our shared vision for a greener future,” Arcelli said.

The agreement highlights ACWA Power’s ambition to rapidly expand its green hydrogen portfolio. Construction is well underway at the NEOM Green Hydrogen Project, a joint venture between ACWA Power, Air Products, and NEOM, to create the world’s first utility-scale green hydrogen plant, capable of producing 1.2 million tons of green ammonia per year.

Work is also underway on ACWA Power’s second green hydrogen project, in Uzbekistan. The first phase of this project will be capable of producing 3,000 tons of green hydrogen per year.