LONDON: With a 130 percent increase in the number of women employed by the private sector in Saudi Arabia over the past four years, the Kingdom’s workforce is undergoing a transformation aimed at ushering in a new economic era.
When Wafaa Al-Ashwali launched a startup in Saudi Arabia earlier this year, she tapped into a burgeoning community of established female entrepreneurs.
Stepping into a sphere traditionally reserved for men, she has had to work harder and be more enterprising than male counterparts, but five months later her app Serviis, which connects consumers with more than 2,500 service providers across the Kingdom, has a steady client base of more than 700.
Her success speaks for the business opportunities unfolding for women in KSA, where there has been a 130 percent increase in their number in the private sector during the past four years.
“There has been a push from government to empower more female entrepreneurs,” Al-Ashwali said.
Almost 40 percent of the startups launched in 2016 were owned by women — an indication of the social and economic evolution that is underway as the Kingdom pursues ambitious aims outlined in its Vision 2030.
Speaking to Arab News earlier this month, the governor of the General Authority for Small and Medium Enterprises, Ghassan Al-Sulaiman pinpointed startups as a particular focus for development.
With plans to boost the proportion of women in the workforce to 30 percent by 2030, Saudi Arabia’s once-sidelined female population is being harnessed to facilitate this growth.
At a recent job fair attended by 43,000 women and hosted by Saudi women’s recruitment agency Glowork, more than 86 local and international organizations gathered seeking to source female talent for their KSA operations.
“They were there purely to hire Saudi women and it showed the appetite of the organizations to get women into their industries at all levels,” said Khalid Al-Khudair, founder of Glowork, itself a startup.
Previously, companies in Saudi Arabia hired women to fill compulsory quotas. Now, Al-Khudair said, “it has become something that makes business sense for organizations,” with women taking on a greater number of roles across different sectors.
“Saudi females represent a talented, well-educated pool of labor. Today, more Saudi women than men are attaining university degrees,” said David Hunt, founder of Dubai-based company Lynwood Consulting.
“The educational reforms have produced a new generation of women with a high degree of training, education and knowledge who are assuming their rightful place in society.”
Across the Middle East, women outnumber men in universities but countries are largely failing to utilize their female talent pools with women’s participation in the workforce across the region among the lowest in the world, according to Reuters.
The upshot is a failure to fully reap the so-called “demographic dividend” that would fuel economic growth, as well as a drag on programs aimed at empowering women in order to fulfil the economic agenda set by government.
Currently, just 1.9 million of the 13.1 million women in Saudi Arabia participate in the workforce, giving it the largest gender imbalance in labor force participation among G-20 countries, according to the “G-20 Saudi Arabia Labour Market Report 2016.”
New initiatives aim to redress this imbalance such as the launch of the first all-female business process services center in Riyadh by Saudi Aramco, General Electric and Tata Consultancy Services to provide employment for more than 1,000 women and the first all-women business and technology park, which aims to provide employment for 20,000 women over the next decade.
“Saudi Arabia has already invested heavily in education for women,” said Jane Kinninmont, deputy head of the Middle East and North Africa program at Chatham House in London.
“Enabling more women to enter the workforce allows the economy to earn a return on that investment,” she added.
“Having women in business is good for diversity and there is significant research being done internationally on the positive impact of gender diversity on management and innovation.”
Doors are opening these days with more women entering the workforce, and the once male-dominated business environment is becoming a more equal place.
Hunt noticed the change during a recent trip to Riyadh. “I visited the operations of one of the leading insurance companies,” he said. “In the past women would have been working behind closed doors in separate sections with separate lifts. Now men and women work side by side in large open-plan spaces.
“It was also pleasing to see women taking on more senior roles,” he added, pointing to the appointment of several women to high-powered positions in KSA.
Rania Nashar became the first woman to head a commercial bank in the Kingdom earlier this year when she was named chief executive of Samba Financial Group. Latifa Al-Sabhan serves as the chief financial officer of Arab National Bank, while in February Sarah Al-Suhaimi, CEO of NCB Capital, became the first woman to chair the Saudi stock exchange.
Opportunities are also opening up lower down the ladder as Saudi women seize the moment in the wake of the latest round of reforms.
“The policy environment is becoming more favorable to women working — the recent decision (to lift the ban) on women driving is an important symbol of that,” Kinninmont said.
An earlier move that means women no longer need a guardian to access government services has helped to lift the number of women establishing SMEs, she added.
However, hurdles remain, particularly when it comes to networking. “Saudi Arabia is a conservative country and we still have segregation between men and women,” said Al-Ashwali.
“Business development, which relies on being there in person to access funds and engage with the business community, is a challenge.” Male entrepreneurs can attend the meetings and events necessary to build a business but for women, it is still a “closed community,” she said.
But the balance is shifting as economic demands compete with cultural practices that traditionally consigned women to the domestic sphere.
“I’ve been visiting Saudi Arabia for more than a decade, and throughout that period young middle-class Saudis have been telling me that their peers aspire to have families where both the man and the woman work, partly because of the rising cost of living,” Kinninmont said.
Nouf Al-Saleem, founder of Mathaqi, a meal delivery app launched last year, spoke of the social development that has taken place with women “more welcome in the market, especially when it come to supporting productive families.”
“We can see women-owned businesses rising in all areas, including the food and retail industries and many others,” she added.
Al-Ashwali is confident of further progress. “I think we’ll see more reforms. What’s needed next is to remove the barrier for capable women who have what it takes to do business but are held back by a male guardian.
“Many government organizations are working hard to support individuals in starting their own business,” she said, adding that seeing women empowered by recent reforms “will encourage and inspire more to pursue their business ambitions.”
Saudi women seize new business opportunities
Saudi women seize new business opportunities
Regional collaboration flourishes in effort to boost digital transformation
- Partnership underscores commitment to foster innovation and drive economic empowerment
CAIRO: Digital transformation is on the cusp as regional companies join hands to further boost this technological development across the Middle East and North Africa.
On top of this week’s partnerships, Saudi Arabia’s Alraedah Digital Solutions, the innovation arm of Alraedah Digital Group, inked a deal with regional fintech ABHI to boost financial inclusion in the Kingdom.
Under the terms of the agreement, Alraedah Digital Solutions will harness ABHI’s advanced technological capabilities to introduce a range of innovative financial services tailored to the Saudi market.
The collaboration will focus on leveraging Alraedah’s deep knowledge of local market dynamics to launch new financing products collaboratively.
Additionally, Alraedah has committed to a substantial financial investment, pledging access to $200 million over three years to support the development and localization of ABHI’s products for the Kingdom.
“We are excited to join forces with ABHI to revolutionize the financial landscape in Saudi Arabia. This partnership underscores our commitment to fostering innovation and driving economic empowerment through strategic collaborations. Together, we aim to redefine access to financial services and empower individuals and businesses across the region,” Paul Melotto, CEO at Alraedah Digital Solutions, said.
Founded in 2021, ABHI specializes in earned wage access, invoice factoring, small and medium-sized enterprise working capital, revenue-based financing, and payroll solutions.
To date, ABHI claims to have supported over 1,000 companies, enhancing financial stability for approximately 750,000 employees and processing over $300 million in loans across different regions.
The company is backed by notable investors including Y Combinator, VEF, SpeedInvest, Venture Souq, Global Ventures, and Zayn Capital.
Abu Dhabi’s Comera Financial Holding joins hands with Egypt’s Beltone Holding
Comera Financial Holding, an Abu Dhabi-based group with interests in technology and fintech, has joined forces with Beltone Holding, a prominent financial services provider in Egypt, to enhance digital transformation and customer experience in the North African country.
The strategic partnership focuses on knowledge transfer and the introduction of new digital solutions across the region.
Together, Comera and Beltone aim to develop and deploy advanced products that will elevate customer experiences in various financial sectors, including payments, consumer finance, SME finance, and supply chain financing.
“This collaboration represents a pivotal step forward in our commitment to enhancing digital access and improving financial services for our customers,” Dalia Khorshid, Group CEO of Beltone Holding, said.
The collaboration will leverage both companies’ expertise to introduce cutting-edge technological solutions not only in Egypt but also in other Middle East and North Africa countries.
MoneyHash partners with Visa
US-based, MENA-focused fintech MoneyHash has announced a new collaboration with digital payments firm Visa.
This partnership aims to deliver secure and enhanced digital payment experiences across the region.
By collaborating with Visa, MoneyHash will gain access to an extensive array of Visa’s digital payment solutions, enhancing its service offerings with advanced technologies like network tokenization.
Additionally, this partnership allows MoneyHash to tap into Visa’s vast global reach, capabilities, and renowned security infrastructure.
These elements are crucial to Visa’s mission of connecting the world through an innovative, reliable, and secure payment network, now extending further across the MENA region.
This strategic alliance is set to significantly boost MoneyHash’s capacity to serve its customers with payment solutions.
Dubizzle acquires Drive Arabia
Dubizzle Group, a leading online classifieds platform in the Middle East, has further cemented its position in the automotive sector across the MENA region with the acquisition of Drive Arabia.
Known for its strong brand presence over the past two decades, especially in the UAE and Saudi Arabia, Drive Arabia brings valuable expertise and a loyal customer base to Dubizzle Group.
This acquisition enables Dubizzle Group to enhance its automotive advertising services, introduce innovative new products, and expand its market reach.
The integration of Drive Arabia is expected to significantly bolster Dubizzle Group’s capabilities in meeting the evolving needs of automotive customers across the region.
Egypt’s Swypex secures $4m in seed round
Swypex has announced its emergence onto the financial technology scene with a $4 million seed investment round led by US venture capital fund, Accel.
This investment marks Accel’s first foray into the fintech sector in the region and includes contributions from Foundation Ventures, the Raba Partnership, and several leading industry angel investors.
Licensed by the Central Bank of Egypt, Swypex aims to become the first comprehensive platform that eliminates financial inefficiencies and maximizes business potential in the country.
The platform integrates payments, invoice management, and smart corporate cards into a single system designed to streamline financial operations.
Swypex’s products are tailored to simplify financial management for businesses, allowing them to automate workflows and facilitate easy payments.
The corporate cards offered by Swypex are specifically designed for Egyptian businesses to help reduce costs, enhance operational efficiency, and support scalable growth.
Monsha’at graduates 25 startups from Qassim University
Saudi Arabia’s Small and Medium Enterprises General Authority, also known as Monsha’at, has announced the successful graduation of 25 startups from Qassim University’s business incubator, as part of the University Startups Initiative Program.
The business incubator is designed to facilitate the transition of creative ideas and university graduation projects into market-ready startups capable of securing investments.
During their time in the incubator, the startups managed to increase their client base by 35 percent and successfully secured two investment rounds totaling around SR500,000 ($133,317).
Since its inception in 2023, the University Startups Initiative Program has graduated 75 startups in collaboration with three government universities located in Riyadh, Al-Ahsa, and Qassim.
April startup funding sees sharp decline
Startup funding in the MENA region experienced a sharp decline in April, with only 19 startups raising $55 million.
This represents a 78 percent drop month on month from $254 million raised in March, although it marks an 87 percent increase year on year, according to Wamda’s Monthly report.
The largest funding amount in April was awarded to Fortis, a UAE-based fintech startup, which secured $20 million in a series A round.
This was followed by WEE, which raised $10 million in a pre-series A round, and Tunisia’s Qodek, which garnered $8 million in its series B round.
Geographically, UAE-based startups led the funding charts with $32 million distributed across six deals, while Egyptian startups received $8.7 million over five deals.
In contrast, Saudi startups saw a noticeable decrease in investment, attracting only $4.8 million across three deals.
Sector-wise, fintech remained the most funded, with four companies raising $25.7 million, $20 million of which was allocated to Fortis alone.
E-commerce startups received $10.5 million across two funding rounds, and an AI firm, Qodek, raised $8 million. Additionally, three Software-as-a-Service providers collectively raised $3.5 million.
In terms of gender representation in funding, disparities remain significant.
Only one female-founded firm managed to secure $100,000, in stark contrast to the $43 million received by male-founded companies, highlighting ongoing challenges in achieving gender parity in the startup ecosystem.
Johnson Controls Arabia celebrates export milestone of Saudi-made scroll chillers to US
JEDDAH: A batch of 300 Saudi-made scroll chillers are set to be exported to the US in what is a first for the Kingdom, the CEO of Johnson Controls Arabia has announced.
Speaking to Arab News, Mohamad Al-Shaikh revealed the market value of the products stands at SR100 million ($26.66 million), and the shipment will come from the Johnson Controls Arabia Manufacturing Complex in King Abdullah Economic City.
Though the domestic demand for heating, ventilation, and air conditioning equipment and technology is growing, the total addressable market for Saudi Arabia is still small compared to the global demand, the executive said.
Reflecting on the milestone of the company’s largest export order to date, Al-Shaikh said: “It is a very proud moment for us as a Saudi company to reach a level where our Saudi-made products are compliance competitive to meet all the quality requirements according to the specification for the United States’ market.
“We have reached the maturity level where we are able to use Saudi talents, Saudi engineering and Saudi supply of chain to ship our fine products to the US market.”
The company plans to increase exports from 30 percent to 60 percent of its total production output over the next three years, aligning with the national industrial strategy and Vision 2030 to enhance economic diversification and local production development.
He said: “We are thrilled also to announce our most ambitious and largest export order of 1,000 YORK Scroll Chillers for next year over three phases.”
The event also housed the signing of a memorandum of understanding between Johnson Controls Arabia and the Saudi Export Development Authority.
This agreement aims to establish a strategic account for JCA, enhancing Saudi Arabia's non-oil exports capable of competing on a global scale, in line with Vision 2030.
Additionally, Johnson Controls Arabia announced the groundbreaking for a new factory expansion, supported by the Local Content and Government Procurement Authority. The expansion will start manufacturing water-cooled chillers with a high capacity of up to 6,000 tons of cooling, the world’s largest air conditioning product.
During his opening keynote, Al-Shaikh underscored the company’s dedication to innovation, sustainability, and supporting the local content through exports of Saudi-made products.
“This milestone reflects our unwavering commitment to advancing local content and the Saudi-made initiative, which are integral to the Kingdom's economic diversification efforts. By exporting Saudi-made products to the US market and 26 other global markets, we are not only contributing to the growth of our economy but also showcasing the quality and innovation of our Saudi products on a global stage,” he stated.
After commending the long-standing bilateral trade relations between the Kingdom and the US, Al-Shaikh added: “At JCA, we have a vision and a strong commitment to the Saudi Market, where we focus on reinforcing localization and boosting job creation to support the economy while giving back to the community.”
Johnson Controls Arabia has made significant strides in local manufacturing, with 80 percent of its sales coming from locally manufactured products.
The company’s exports have also grown to account for over 30 percent of its total production, demonstrating its commitment to global expansion and market diversification.
Saudi Arabia to reveal roadmap to turn aviation sector into $2bn industry
RIYADH: An ambitious roadmap setting out how Saudi Arabia will grow its aviation sector tenfold into a $2 billion industry will be unveiled at a special event in May.
The plans cover the business jet segment, including charter, private, and corporate aircrafts, and will support Saudi Arabia’s development as a global high-value enterprise and tourist destination.
Details of the roadmap will be set out at the 2024 Future Aviation Forum, convening 5,000 leaders, including private investors, operators, and service providers, set to be held in Riyadh from May 20 to 22.
The plan comes after Saudi Arabia revised its 2030 tourism target upwards from 100 million to 150 million visitors in October 2023.
The forum is set to be hosted by the General Authority of Civil Aviation, and the organization’s President Abdulaziz-Al Duailej said: “General aviation is vital to growing high-value sectors of the Saudi economy, including tourism, business and entertainment events.
“The General Aviation roadmap will turbocharge the sector within the Kingdom, transforming infrastructure and regulations, simultaneously developing, promoting and enhancing general aviation services in the market.
“GACA looks forward to hosting general aviation investors, operators and service providers at the Future Aviation Forum in May, where we will launch this ambitious plan to global audiences.”
The roadmap will support private aviation aircraft owners, lessors, and investors, as well as operators and service providers, through coordinated infrastructure investment and regulatory streamlining.
The announcement follows GACA’s removal of “empty-leg restrictions” – which relate to when an aircraft is flying without passengers or cargo on board – and simplification of economic license requirements for operators and investors in October 2023, to boost the general aviation sector.
FAF 2024 will see aviation leaders from over 100 countries, including ministers, regulators, manufacturers, airlines, and airports, gathering in Riyadh.
It has already been announced that the event will see Saudi Arabia unveil more than $100 billion in investment opportunities to enable its ambitious Saudi Aviation Strategy.
The forum’s investment showcase will highlight projects and incentives including airports, airlines, ground services, cargo and logistics.
Of the $100 billion in investment opportunities, airports account for more than $50 billion, new aircraft orders about $40 billion, while the remaining $10 billion is earmarked for other projects, including $5 billion in special logistics areas around the main airports in Riyadh, Jeddah, and Dammam.
The 2022 edition of the forum saw the signing of more than 50 agreements and $2.7 billion in deals, and the upcoming event will feature commercial announcements, alongside the roadmap and specialist general aviation panel sessions.
Saudi Arabia’s Q1 budget deficit aligns with expectations; non-oil revenues rise by 9%
RIYADH: Saudi Arabia recorded a budget deficit of SR12.4 billion ($3.3 billion) in the first quarter of 2024, comprising 16 percent of the annual deficit forecast set by the Ministry of Finance at the end of the previous year.
This suggests that it aligns with expectations, showcasing the Kingdom’s progress in accelerating spending related to Vision 2030 implementation, alongside its careful fiscal management.
The Ministry’s quarterly performance report also revealed an annual 9 percent boost in its non-oil revenues to reach SR293.43 billion, primarily driven by increased taxes on goods and services.
Report data showed these taxes surged by 11 percent to approximately SR70 billion in the specified period. This income source constituted nearly a quarter of total government revenues and approximately 63 percent of non-oil income.
This typically refers to taxes imposed on particular products or services, rather than on individuals or businesses as a whole. Examples include Excise Tax, Value-Added Tax, and specific levies such as those targeting expatriates.
The percentage share of non-oil revenues from the overall government income increased to 38 percent, up from 36 percent in the same quarter of 2023.
The second largest factor driving the non-oil revenue growth is categorized as Other Revenues, which, as per the Ministry’s report, includes income from a variety of sources.
These encompass revenues from other public government units, including the Saudi Central Bank, sales conducted by other entities such as income from advertising and fees from port services, administrative fees, fines, penalties, and confiscations.
Conversely, oil revenues experienced a 2 percent uptick, reaching SR181 billion. However, their percentage share decreased from 64 percent in the same quarter the previous year to 62 percent. This brought total government revenues to SR293.43 billion.
The tightening of oil revenues can be linked to the voluntary oil production cuts adopted by members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+. Saudi Arabia announced in March the extension of its 1 million barrels per day cut, initially implemented in July 2023, until the end of the second quarter of 2024.
Government expenditure
Expenditures surged by 8 percent during this period, reaching SR305.82 billion, with non-financial capital expenditure, often referred to as CAPEX, driving much of this growth.
This category saw a substantial 33 percent increase, totaling SR34.5 billion, and it encompasses investments in physical assets like buildings, machinery, and infrastructure, aimed at enhancing the Kingdom’s capacity and capabilities.
The Ministry had indicated in its budget statement in December for the fiscal year 2024 that there will be increased spending during the coming years to expedite the implementation of key programs vital to the objectives of Saudi Vision 2030. Therefore, the quarterly deficit remains within expectations, reflecting prudent fiscal management.
The second most significant factor driving the increase in expenditure is the utilization of goods and services, which surged by 12 percent during this period, reaching SR60.7 billion. Accounting for 20 percent of total expenditure, their substantial share amplified their impact.
This category represents the total amount spent on acquiring goods and services by the government for various purposes, such as operational activities or resale. It reflects the government’s consumption or investment in resources necessary for its operations, excluding any changes in inventory levels.
In third place was the compensation of employees, making up the largest portion of the total at 45 percent, reaching SR137.5 billion. However, its growth during this period was only 3 percent.
According to the Ministry’s report, this refers to the compensation received by an employee for the work they perform, which can be in the form of cash or non-monetary benefits. It includes any social security contributions that the government unit pays on behalf of its employees.
Although subsidies account for a small portion of government spending, at 3 percent, they experienced the highest growth rate, reaching SR8.33 billion, highlighting the Kingdom’s dedication to investments in education, health, and social protection programs.
Additionally, the data revealed that health and social development were the second-largest contributors to expenditure growth, increasing by 20 percent to reach SR60.5 billion, following municipal services.
The Ministry’s report indicated that the deficit will be covered entirely through borrowing. Domestic debt accounted for 60 percent, or SR665.03 billion, of the end-of-period debt balance, while the remaining 40 percent came from external debt, totaling SR450.8 billion.
Compared to advanced economies or G20 countries, Saudi Arabia’s public debt as a percentage of GDP remains relatively low. Additionally, it is well-covered, with government reserves totaling around SR392 billion in the first quarter of this year.
This robust reserve level provides a substantial buffer against any potential financial challenges or economic downturns, enhancing the Kingdom’s fiscal stability and ability to meet its financial obligations.
Startup Wrap – Regional collaboration flourishes in effort to boost digital transformation
CAIRO: Digital transformation is on the cusp as regional companies join hands to further boost this technological development across the Middle East and North Africa.
On top of this week’s partnerships, Saudi Arabia’s Alraedah Digital Solutions, the innovation arm of Alraedah Digital Group, inked a deal with regional fintech ABHI to boost financial inclusion in the Kingdom.
Under the terms of the agreement, Alraedah Digital Solutions will harness ABHI’s advanced technological capabilities to introduce a range of innovative financial services tailored to the Saudi market.
The collaboration will focus on leveraging Alraedah’s deep knowledge of local market dynamics to launch new financing products collaboratively.
Additionally, Alraedah has committed to a substantial financial investment, pledging access to $200 million over three years to support the development and localization of ABHI’s products for the Kingdom.
“We are excited to join forces with ABHI to revolutionize the financial landscape in Saudi Arabia. This partnership underscores our commitment to fostering innovation and driving economic empowerment through strategic collaborations. Together, we aim to redefine access to financial services and empower individuals and businesses across the region,” Paul Melotto, CEO at Alraedah Digital Solutions, said.
Founded in 2021, ABHI specializes in earned wage access, invoice factoring, small and medium sized enterprise working capital, revenue-based financing, and payroll solutions.
To date, ABHI claims to have supported over 1,000 companies, enhancing financial stability for approximately 750,000 employees and processing over $300 million in loans across different regions.
The company is backed by notable investors including Y Combinator, VEF, SpeedInvest, Venture Souq, Global Ventures, and Zayn Capital.
Abu Dhabi’s Comera Financial Holding joins hand with Egypt’s Beltone Holding
Comera Financial Holding, an Abu Dhabi-based group with interests in technology and fintech, has joined forces with Beltone Holding, a prominent financial services provider in Egypt, to enhance digital transformation and customer experience in the North African country.
The strategic partnership focuses on knowledge transfer and the introduction of new digital solutions across the region.
Together, Comera and Beltone aim to develop and deploy advanced products that will elevate customer experiences in various financial sectors, including payments, consumer finance, SME finance, and supply chain financing.
“This collaboration represents a pivotal step forward in our commitment to enhancing digital access and improving financial services for our customers,” Dalia Khorshid, Group CEO of Beltone Holding, said.
The collaboration will leverage both companies’ expertise to introduce cutting-edge technological solutions not only in Egypt but also in other Middle East and North Africa countries.
MoneyHash partners with Visa
US-based, MENA-focused fintech MoneyHash has announced a new collaboration with digital payments firm Visa.
This partnership aims to deliver secure and enhanced digital payments experiences across the region.
By collaborating with Visa, MoneyHash will gain access to an extensive array of Visa’s digital payment solutions, enhancing its service offerings with advanced technologies like network tokenization.
Additionally, this partnership allows MoneyHash to tap into Visa’s vast global reach, capabilities, and renowned security infrastructure.
These elements are crucial to Visa’s mission of connecting the world through an innovative, reliable, and secure payment network, now extending further across the MENA region.
This strategic alliance is set to significantly boost MoneyHash’s capacity to serve its customers with payment solutions.
Dubizzle acquires Drive Arabia
Dubizzle Group, a leading online classifieds platform in the Middle East, has further cemented its position in the automotive sector across the MENA region with the acquisition of Drive Arabia.
Known for its strong brand presence over the past two decades, especially in the UAE and Saudi Arabia, Drive Arabia brings valuable expertise and a loyal customer base to Dubizzle Group.
This acquisition enables Dubizzle Group to enhance its automotive advertising services, introduce innovative new products, and expand its market reach.
The integration of Drive Arabia is expected to significantly bolster Dubizzle Group’s capabilities in meeting the evolving needs of automotive customers across the region.
Egypt’s Swypex secures $4m in seed round
Swypex has announced its emergence onto the financial technology scene with a $4 million seed investment round led by US venture capital fund, Accel.
This investment marks Accel’s first foray into the fintech sector in the region and includes contributions from Foundation Ventures, the Raba Partnership, and several leading industry angel investors.
Licensed by the Central Bank of Egypt, Swypex aims to become the first comprehensive platform aimed at eliminating financial inefficiencies and maximizing business potential in the country.
The platform integrates payments, invoice management, and smart corporate cards into a single system designed to streamline financial operations.
Swypex’s products are tailored to simplify financial management for businesses, allowing them to automate workflows and facilitate easy payments.
The corporate cards offered by Swypex are specifically designed for Egyptian businesses to help reduce costs, enhance operational efficiency, and support scalable growth.
Monsha’at graduates 25 startups from Qassim University
Saudi Arabia’s Small and Medium Enterprises General Authority, also known as Monsha’at, has announced the successful graduation of 25 startups from Qassim University’s business incubator, as part of the University Startups Initiative Program.
The business incubator is designed to facilitate the transition of creative ideas and university graduation projects into market-ready startups capable of securing investments.
During their time in the incubator, the startups managed to increase their client base by 35 percent and successfully secured two investment rounds totaling around SR500,000 ($133,317).
Since its inception in 2023, the University Startups Initiative Program has graduated 75 startups in collaboration with three government universities located in Riyadh, Al-Ahsa, and Qassim.
April startup funding sees sharp decline
Startup funding in the MENA region experienced a sharp decline in April, with only 19 startups raising $55 million.
This represents a 78 percent drop month-on-month from $254 million raised in March, although it marks an 87 percent increase year-on-year, according to Wamda’s Monthly report.
The largest funding amount in April was awarded to Fortis, a UAE-based fintech startup, which secured $20 million in a series A round.
This was followed by WEE, which raised $10 million in a pre-series A round, and Tunisia’s Qodek, which garnered $8 million in its series B round.
Geographically, UAE-based startups led the funding charts with $32 million distributed across six deals, while Egyptian startups received $8.7 million over five deals.
In contrast, Saudi startups saw a noticeable decrease in investment, attracting only $4.8 million across three deals.
Sector-wise, fintech remained the most funded, with four companies raising $25.7 million, $20 million of which was allocated to Fortis alone.
E-commerce startups received $10.5 million across two funding rounds, and an AI firm, Qodek, raised $8 million. Additionally, three Software-as-a-Service providers collectively raised $3.5 million.
In terms of gender representation in funding, disparities remain significant.
Only one female-founded firm managed to secure $100,000, in stark contrast to the $43 million received by male-founded companies, highlighting ongoing challenges in achieving gender parity in the startup ecosystem.
