CAIRO: Saudi Arabia’s venture capital landscape continues to grow with its reverberations reaching far continents. 

Global venture capital firms are capitalizing on the Kingdom’s expansive strategy, as evidenced by the state-owned Saudi Venture Capital Co.’s $30 million investment in a US-based investment firm. 

SVC has pledged this significant investment in a private equity fund managed by the renowned US-based investment firm General Atlantic.  

“The investment in the private equity fund by General Atlantic is part of SVC’s Investment in Funds Programme and an implementation of its strategy related to attracting top global fund managers to invest in Saudi-based companies as well as stimulating investment for later stages,” Nabeel Koshak, CEO and Board Member at SVC, commented. 

Established in 1980, General Atlantic boasts a formidable reputation as a global growth equity investor, overseeing a vast portfolio of $84 billion in assets under management.  

The focus of this venture will be on investing in high-growth, tech-enabled companies within Saudi Arabia.  

The initiative aims to bolster innovation and entrepreneurship in the region, particularly in key sectors such as consumer goods, financial services, healthcare, life sciences, and technology. 

“We are very proud to partner with SVC and broaden our commitment to Saudi Arabia. Vision 2030 sets the stage for a period of dynamic growth and innovation in Saudi Arabia, which will create attractive investment opportunities for our global investors. SVC is a highly strategic investor who will deepen our expertise in this important region,” Bill Ford, Chairman and CEO of General Atlantic, said. 

Saudi Arabia’s WheeKeep secures $8m series A funding 

Saudi Arabian logistics startup WheeKeep raised $8 million in a series A round led by Fintech Collective, with participation from local and international investors.  

Founded in 2020 by Sultan Al-Olayan, Amr Al-Marzouki, and Youssuf Fayez, WheeKeep provides mobile self-storage units for individuals and businesses.  

The new capital will aim to fuel WheeKeep’s expansion plans in Saudi Arabia and beyond. 

Saudi Qsalary partners with Itqan Capital to launch $80m fund  

Saudi HRtech company Qsalary has partnered with Itqan Capital to launch an $80 million investment fund.  

Founded in 2022 by Mohammed Badwi and Amr Abu Shady, Qsalary offers a digital platform for accelerated salary payments.  

The fund aims to provide investment opportunities for investors seeking financial growth. 

Qatari investors commit $20m to MENA Fund I 

Qatari investors are boosting the regional startup landscape with a $20 million commitment to the newly announced MENA Fund I. 

Golden Gate Ventures, a venture capital fund founded by Silicon Valley natives, announced its first $100 million MENA fund, with $20 million in commitments from some of Qatar’s most prominent families.  

The anchor investor is the multi-faceted Al Khor Holding, a company with 60 years of heritage. Other notable investors include the Al Attiya Group, widely recognized for its support in developing local businesses, and Sheikh Jassim Bin Jabor Al Thani. 

The announcement of the first close of its $100 million MENA Fund I, backed by the pillars of Qatar’s private business community, represents a major step forward in Golden Gate Ventures’ ambitions to drive innovation and entrepreneurship in the MENA region.  

The fund combines the aggregate regional influence of its investors with Golden Gate Ventures’ extensive experience in startup ecosystem development across Silicon Valley and Asia.  

MENA Fund I is the first international venture capital fund to be established and managed within Qatar. Michael Lints, Partner at Golden Gate Ventures, has moved to Qatar to deepen the firm’s commitment to the MENA region.   

The fund will focus on powering startups in key sectors such as alternative energy, green technology, B2B artificial intelligence, and energy-related deep tech.  

Other strategic sectors that MENA Fund I will cover include fintech, healthtech, and edtech, furthering Qatar’s economic diversification agenda. 

Glint completes first close of its second venture fund at $3 million  

Egypt-based investment firm Glint completed the first close of its second venture fund at $3 million, supported by Wadi Degla Group. 

Glint Fund II, led by Tarek Aboualam and Youssef Helmy Habib, aims to support Egyptian entrepreneurs with early-stage investments ranging from $250,000 to $500,000. 

“Glint’s second fund represents an important step to further develop our ecosystem designed to support Egyptian tech-based startups looking to penetrate the regional and international markets,” said Aboualam. 

UAE’s Property Finder raises $90m debt round to buyout lead investor  

Dubai-based Property Finder secured $90 million in debt from Francisco Partners to finance the buyout of its first institutional investor, BECO Capital.  

The online real estate platform bought back BECO Capital’s stake, which had also invested in ride-hailing app Careem and logistics startup Fetchr.  

Property Finder said the deal allows BECO to exit “with a strong return on its investment,” without providing further details. 

“We’ve seen tremendous growth in the real estate market across the entire UAE, not just Dubai,” said Michael Lahyani, CEO and founder of Property Finder. Valued at about $1 billion, the company joins the growing list of Middle Eastern unicorns. 

UAE’s Lune raises $1.5m in seed round  

UAE-based data analysis company Lune has raised $1.5 million in a seed round from Dubai Future District Fund, Plus Venture Capital, Reach International, and Judah Ventures, alongside other family offices and angel investors.  

Founded in 2020 by Helal Tariq and Alexandre Soued, Lune enables financial institutions to turn customer transaction data into valuable insights.  

The funding will support Lune’s regional expansion and product development. 

Egypt’s MNZL raises $3.5m in seed funding  

Egyptian fintech MNZL raised $3.5 million in a Seed round led by P1 Ventures, Localglobe, and Ingressive Capital, with additional support from 500 Startups, Flat6Labs, First Circle Capital, ENZA Capital, Beenok, and other angel investors.  

Founded in 2023 by Sameh Saleh, Ahmed El-Dessouky, and Bassem El-Shaer, MNZL allows users to convert assets like homes and cars into liquidity.  

“By enabling Egyptians to safely harness their own assets—homes or cars—for financial needs, We at MNZL are going beyond a mere adjustment; it’s a complete revolution in credit access. This shift not only empowers families by providing financial leverage but also contributes to broader economic prosperity in the region,” Saleh said. 

The company aims to utilize the new capital to enhance MNZL’s technology and scale operations in Egypt. 
 

RIYADH: As Saudi Arabia embarks on a journey aimed at boosting job opportunities for citizens, the localization plan for consultancy professions and businesses plays a crucial role.

In October 2022, the Kingdom’s Ministry of Human Resources and Social Development issued a decision mandating that from the end of March 2024, 40 percent of workers in firms in this sector must be Saudi nationals.

The decision targeted all professions in the sector, most notably financial advisory specialists, business advisers, and cybersecurity advisory specialists, as well as project management managers, engineers, and specialists.

This targeted localization, or Saudization, is part of the cooperation between the Ministry of Human Resources and Social Development and supervising bodies, represented by the Ministry of Finance, the Local Content and Government Procurement Authority, the Expenditure and Project Efficiency Authority, and the Human Resources Development Fund.   

The collaboration aims to elevate the presence of cadres in the sector and boost the percentage of Saudis, contributing to the development of local content in this strategic sector. It also seeks to organize the labor market.

The ministry is meant to support private sector establishments in several ways, including helping them in hiring Saudis by supporting the training and qualification of employees, as well as supporting employment procedures and other initiatives.  

On a similar note, the Local Content and Government Procurement Authority is required to follow up on the commitment to include Saudization requirements in consulting contracts.

It has also issued a guide that clarifies the details of localizing the consultancy sector and professions, and the mechanism of implementing it.  

Reshaping the consultancy sector     

Azeem Zainulbhai, co-founder and chief product officer at talent-on-demand platform Outsized, believes the Saudization rules in the sector will help keep more money in the Kingdom, even though training costs could increase.

“This move means less reliance on experts from abroad in key fields like finance, project management and cybersecurity. Essentially, it’s about creating more jobs for Saudis in important, well-paying sectors and making sure they're trained for these roles,” he told Arab News.

“The end objective is to get better at handling projects and business dealings that are specific to Saudi culture and regulations, stimulate private sector growth, and foster a knowledge-based economy ultimately making companies more efficient and competitive globally,” the co-founder emphasized.

Bashar El-Jawharim, consulting partner at PwC Middle East, also stated that the localization plan initiated by Saudi Arabia marks a significant milestone in reshaping the consulting sector within the Kingdom.  

“With the launch of the second phase, we anticipate several key transformations that will contribute to the development and empowerment of local talent,” El-Jawhari told Arab News.

“Firstly, as young Saudi professionals enter the workforce, we expect a notable increase in demand for consulting services related to project and transformation management, financial and legal advisory, as well as procurement and supply chain management,” he added.

By having more Saudis in consulting, businesses can better navigate local market dynamics and regulations.

Azeem Zainulbha, Co-founder and chief product officer at Outsized

The consulting partner went on to note that the influx of senior Saudi talent into the consulting industry presents an opportunity for firms to leverage their experience and insights to drive business growth.

Sectors to be affected  

The localization push of course expands beyond the consultancy sector, Zainulbhai noted.

“Tourism and hospitality can really use local insights to attract more visitors and celebrate Saudi culture. Major construction and engineering projects, like the NEOM and the Red Sea Project, will also benefit from having local experts who understand the specific requirements and standards needed,” he said.

The Outsized executive also shed light on the fact that the healthcare, IT, cybersecurity, and renewable energy sectors are all set to improve with more local consultants who bring a deep understanding of regional needs and regulations.

“Local financial experts will be key in adapting to Saudi Arabia’s unique market, especially as it continues to grow and change,” Zainulbhai commented.

Overall, sectors essential to the diversification from oil will see substantial growth and development from this localization.  

“When looking at various sectors, certain areas are poised to benefit more prominently than others. For example, the government and public sectors are likely the first to benefit in light of the transformation journey towards Vision 2030,” El-Jawhari affirmed.

The consulting partner explained that as Saudi Arabia continues its journey toward achieving the ambitious goals outlined in Vision 2030, there is a growing emphasis on enhancing the efficiency and effectiveness of government operations.

“Consulting services play a vital role in supporting this transformation by providing strategic guidance and expertise in areas such as organizational restructuring, process optimization, and performance management,” El-Jawhari commented.

He added: “Furthermore, nationals equipped with experience in operational excellence are well-positioned to contribute to these efforts by implementing measures aimed at optimizing operational processes, reducing costs, and enhancing productivity.”

Potential opportunities

The plan is a huge opportunity for Saudi Arabia to boost local jobs and reduce its reliance on foreign workers, which aligns perfectly with the broader Vision 2030 goals.

“By having more Saudis in consulting, businesses can better navigate local market dynamics and regulations,” added Zainulbhai.

He continued to underscore that local consultants can offer insights that make companies more competitive, especially in sectors where understanding local consumer behavior is crucial.

He also clarified that businesses that follow these new hiring rules may find it easier to onboard government clients.

“The focus on local talent is also great for fostering innovation and could help companies set up successful programs to nurture new ideas in fields like digital tech and sustainability,” Zainulbhai explained.

From El-Jawhari’s point of view, the localization plan presents opportunities for Saudi nationals to enter the consulting profession, contributing to the development of a vibrant knowledge-based economy.

Potential challenges  

While there are many benefits, the plan also brings several challenges. According to Zainulbhai, those include filling talent gaps, adjusting to cultural shifts, and meeting new regulatory standards.

“To tackle these, businesses could set up mentorship programs where seasoned international consultants train up-and-coming Saudi professionals. Setting up special training centers to quickly upskill workers could also help,” the co-founder described.

“There might be some resistance to these changes within companies, so promoting a culture that values diverse perspectives will be important,” he added.

Zainulbhai also believes that consulting with local legal experts will be crucial to stay on top of new regulations.

We anticipate several key transformations that will contribute to the development and empowerment of local talent.

Bashar El-Jawhari, Consulting partner at PwC Middle East

“Although initial costs might be high, businesses can look into government subsidies or focus on tech solutions to reduce long-term expenses and increase efficiency,” he said.

From PwC’s perspective, El-Jawhari said that the availability of fresh, well-educated Saudi graduates provides consulting firms access to junior talent.

“The challenge lies in retaining them beyond the first 4 to 5 years. Government and semi-government entities begin to recruit these nationals, who have gained experience in international consulting firms, to join their workforce,” he stressed.

The consulting partner went on to explain that another challenge is attracting mid-career Saudi consultants who are in high demand and short supply.

“The third challenge is distinct specialties. For example, with the strong drive toward diversifying the economy, there is a need for consulting experience across sectors such as industrial, defense, tourism and culture, sports, and entertainment, supported by international experience,” El-Jawhari revealed.

He further disclosed: “Overall, finding Saudi talent in relatively new sectors of the economy is quite challenging.”

“To expand the pool of mid-career Saudis, a program between government entities and consulting firms could be established. The program could include seconding talented mid-career Saudis into consulting firms for 1 to 2 years,” El-Jawhari clarified.

He wrapped up with this regard saying that this gives consulting firms access to mid-career Saudi talent and in return, government entities gain a mid-career professional equipped with consulting experience.

Vision 2030 implications  

Undoubtedly, this plan provides a key piece of the bigger Vision 2030 puzzle, which aims to diversify the economy beyond oil and boost public services like health and education.

“By increasing Saudi involvement in consulting, the plan helps keep more money in the country and creates high-value jobs that are crucial for modernizing the economy,” Zainulbhai said.

The co-founder also mentioned that it also focuses on upgrading the skills of the Saudi workforce, which is essential for innovation and sustained economic growth.

“More local consultants mean the private sector can grow stronger and more independent, making Saudi Arabia a more appealing place for investors and helping develop key sectors,” he concluded.

On the other side, El-Jawhari shed light on how two key outcomes of Vision 2030 are a thriving economy and a vibrant society.

“Pushing for a higher level of consulting localization will create higher-paid jobs for Saudi nationals, resulting in a more vibrant society that enjoys a higher quality of life,” the consulting partner reiterated.

“Additionally, local talent can provide the necessary expertise in specific consulting services to catalyze economic diversification,” he concluded.