Most of Boeing 737 Max jets grounded after Ethiopia crash, but US bucks trend

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Three Boeing 737 Max 8 aicraft from Shanghai Airlines are parked at Shanghai Hongqiao International Airport in Shanghai after China banned their use for flights. (AFP)
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A growing number of airlines around the world have grounded their Boeing 737 Max 8 jets following the crash of an Ethiopian Airlines aircraft. (AFP)
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In this Nov. 14, 2018, file photo Boeing 737 MAX 8 planes are parked near Boeing Co.'s 737 assembly facility in Renton, Wash. (AP)
Updated 14 March 2019
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Most of Boeing 737 Max jets grounded after Ethiopia crash, but US bucks trend

  • US aviation officials however said they would not ground Boeing 737 Max planes
  • The 737 Max is the workhorse of the Dubai budget carrier flydubai

SINGAPORE: A growing number of airlines around the world have grounded their Boeing 737 Max 8 jets following the crash of an Ethiopian Airlines plane that killed 157 people on Sunday, five months after a similar Indonesian Lion Air jet plunged into the ocean, killing 189.

US aviation officials however said they would not ground Boeing 737 Max planes, bucking a trend of countries around the world that have suspended the aircraft's operations.

Some airlines and countries that have grounded the aircraft so far:

THAILAND

The Civil Aviation Authority of Thailand has ordered the budget airline Thai Lion Air to suspend flying its Boeing 737 Max planes for seven days while it conducts risk assessments and special training for pilots.
The agency said it will consult with the plane's maker and designer about safety measures. The suspension will begin Thursday. It comes after Sunday's Ethiopian Airlines crash.
Thai Lion Air is the only Thai airline flying B737 Max models.
The airline is an associate company of Indonesia's Lion Air, which lost a B737 Max 8 in October shortly after takeoff from Jakarta in a crash that killed 189 people.

SERBIA

Serbia’s aviation authorities barred Boeing 737 Max planes from the country’s airspace, a spokesperson said Wednesday, joining a wave of government bans worldwide after a second deadly crash involving the model.
Serbia has also banned the aircraft “for take-off and landing at all airports” in the country, a spokesman for the Civil Aviation Directorate said of the measure, which went into effect Tuesday.
He explained that “Serbia is aligning itself with the directives of the European Union Aviation Safety Agency”, which decided on Tuesday to close European airspace to Boeing 737 Max.

EGYPT

Egypt’s civil aviation authority has barred the takeoff, landing of Boeing 737 Max aircraft, a statement said.

NORWAY

Norwegian Air said on Wednesday it will seek compensation from plane maker Boeing for lost revenue and extra costs after grounding its fleet of 737 MAX 8 aircraft in the wake of the Ethiopian Airlines crash.
“We expect Boeing to take this bill,” Norwegian said in an emailed statement to Reuters.
The Oslo-based airline has 18 Max passenger jets in its 163-aircraft fleet.

LEBANON

Lebanon’s aviation authority on Wednesday said it had banned all Boeing 737 MAX planes from landing in Beirut or flying in Lebanese airspace, state news agency NNA said.
A circular was issued by Mohammad Shehabeddine, director of the Civil Aviation Authority at Rafic Hariri International Airport, NNA said.

HONG KONG

Hong Kong on Wednesday barred Boeing 737 MAX airliners from its airspace, the latest in a series of government bans worldwide in the wake of a deadly plane crash in Ethiopia.
Despite Boeing’s assurances in the wake of the disaster, the European Union, Britain and India joined China and other countries grounding the plane or banning it from their airspace as they await the results of the crash investigation.
The semi-autonomous Chinese city’s Civil Aviation Department (CAD) said it was imposing a temporary suspension from 6 p.m. local time (1000 GMT) on Wednesday until further notice on “operation of Boeing B737 MAX aircraft into, out of and over Hong Kong”.
The ban is “solely a precautionary measure to ensure aviation safety and protect the public”, a CAD spokesman added.

ETHIOPIA

A spokesman for Ethiopian Airlines says it grounded its remaining four Max 8 jets as an “extra safety precaution” while it investigates Sunday’s deadly crash. The airline is awaiting the delivery of 25 more Max 8 jets.

CHINA

China has 96 Max 8 jets in service, belonging to carriers such as Air China, China Eastern Airlines and China Southern Airlines. The civil aviation authority directed the planes to be grounded indefinitely on Monday. It said the order was “taken in line with the management principle of zero tolerance for security risks.” There were eight Chinese citizens on the Ethiopian Airlines flight that crashed shortly after taking off on Sunday. The authority said it will consult the US Federal Aviation Administration and Boeing before deciding when to lift the ban.

EUROPE

The European Aviation Safety Agency has issued a directive grounding all Boeing 737-8 Max and 737-9 model aircraft following two recent accidents.

EASA said in its emergency airworthiness directive Tuesday that “at this early stage” of the most recent investigation, “it cannot be excluded that similar causes may have contributed to both events.”

“Based on all available information, EASA considers that further actions may be necessary to ensure the continued airworthiness of the two affected models.”

It says companies may make one noncommercial flight to return their planes to a location where they can be inspected. The grounding applies to all European Union airspace.

BRAZIL

Brazil’s Gol Airlines has suspended the use of seven Max 8 jets. The airline said it is following the investigation closely and hopes to return the aircraft to use as soon as possible. Gol said it has made nearly 3,000 flights with the Max 8, which went into service last June, with “total security and efficiency.”

SINGAPORE

Singapore has temporarily banned Max 8 jets — and other models in the Max range — from entering and leaving the country. The civil aviation authority said it was “closely monitoring the situation” and the ban will be “reviewed as relevant safety information becomes available.” SilkAir, a regional carrier owned by Singapore Airlines, has six Max 8 jets. It said the ban “will have an impact on some of the airline’s flight schedules.”

UAE

The UAE’s General Civil Aviation Authority said its ban on the aircraft in its airspace was “a precautionary measure.” The 737 Max is the workhorse of the Dubai government-owned budget carrier flydubai. It operates 11 Boeing 737 Max 8 and 2 Max 9 jetliners. Its total fleet is around 60 aircraft, including other models of the 737.

CANADA

Canadian charter airline Sunwing is suspending use of its four Boeing 737 Max 8 planes.

Canadian Transport Minister Marc Garneau said he has no plans to ground Canada’s fleet of 737 Max aircraft, but that “all options are on the table.”

VIETNAM

Vietnam is banning Boeing 737 Max planes from flying into its airspace.

Dinh Viet Thang, director of Vietnam’s civil aviation authority, said Wednesday that airlines flying those models of planes will have to change the aircraft for safety purposes. The ban lasts until further notice.

None of Vietnam’s four airlines uses the Max model planes in their fleets, but Korea’s Eastar Jet, Thai Lion Air and Malaysia’s Malindor Air fly those planes to Vietnamese destinations.

INDIA

India says it is immediately grounding all Boeing 737 Max 8 planes after Sunday’s deadly Ethiopian Airlines crash. A statement late Tuesday says the planes “will be grounded till appropriate modifications and safety measures are undertaken to ensure their safe operations.”

The statement does not say how many planes are affected.

AUSTRALIA

Australia has announced a temporary ban on flights by Boeing 737 Max aircraft, although none of its airlines currently operate them. The Civil Aviation Safety Authority said Tuesday that the ban will affect two foreign airlines — SilkAir and Fiji Airways — that use them for flights to Australia. The authority said Singapore’s SilkAir has already grounded its 737 Max jets, and that it is working with regulators there and in Fiji to minimize disruptions. It said that Fiji Airways has two 737 Max 8 jets in its fleet. Fiji Airways and Fiji’s Civil Aviation Authority said they would ground the fleet until more information is known about the cause of the Ethiopian Airlines accident.

CAYMAN ISLANDS

Cayman Airways, a Caribbean carrier, said it stopped using its two Max 8 jets starting Monday. President and CEO Fabian Whorms said the move will cause changes to flight schedules. Cayman is the flag carrier of Cayman Islands, a British overseas territory.

INDONESIA

Indonesia said it would temporarily ground Max 8 jets to inspect their airworthiness. Director General of Air Transportation Polana B. Pramesti said the move was made to ensure flight safety. A Lion Air model of the same plane crashed in Indonesia in October. Indonesian airlines operate 11 Max 8 jets. Lion Air, which owns 10 of them, said it will try to minimize the impact of the decision on operations. The other Max 8 jet belongs to national carrier Garuda.

MALAYSIA

The Civil Aviation Authority said no Malaysian carriers operate the Max 8, but that foreign airlines are banned from flying the plane in Malaysia, and from transiting in the country, until further notice.

MEXICO

Mexican airline Aeromexico has suspended flights of its six Max 8 jets. Aeromexico said it “fully” trusts the safety of its fleet but ordered the grounding to ensure “the safety of its operations and the peace of mind of its customers.” It said other planes will take over the routes usually flown by the Max 8.

OMAN

Oman  barred flights by Boeing 737 Max 8 and 9 aircraft. Oman’s Public Authority for Civil Aviation made the sultanate’s announcement, without elaborating on its reasoning. State-owned Oman Air operates five Max 8 aircraft and said it was rescheduling other planes for its flights.

SOUTH AFRICA

Comair, the operator of British Airways and Kulula flights in South Africa, says it has grounded its Boeing 737 Max 8 while it consults with Boeing, other operators and technical experts.

A statement does not say how many planes are affected. It says the decision was made without intervention from regulatory authorities.

SOUTH KOREA

South Korean airline Eastar Jet said it would suspend operations of its two Boeing 737 Max 8 planes and replaced them with Boeing 737-800 planes starting Wednesday on routes to Japan and Thailand. The airline says it hasn’t found any problems, but is voluntarily grounding the planes in response to customer concerns.

TURKEY

In a statement on Twitter Tuesday, Turkish Airlines CEO Bilal Eksi said all Boeing 737 Max flights are suspended until the “uncertainty affecting safety is cleared.” He added that passenger safety was the company’s priority.

ICELAND

Icelandair Group says it has temporarily suspended operations of its three Boeing 737 Max aircraft until further notice.

President and CEO Bogi Nels Bogason said Tuesday that the company will follow developments closely and work with local, European and US authorities on any steps that need to be taken.

He said the temporary suspension won’t impact the company’s operations, as it only affects three aircraft out of a fleet of 33.

NEW ZEALAND

New Zealand and Fiji have suspended Boeing 737 Max 8 flights in and out of the two countries following the crash of an Ethiopian Airlines jetliner.

The decision only affects one operator, Fiji Airways. No New Zealand airlines use the Max 8 planes.


Saudi banks’ funding profile changing on rising mortgage demand: S&P Global

Updated 04 May 2024
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Saudi banks’ funding profile changing on rising mortgage demand: S&P Global

RIYADH: Saudi banks are expected to pursue alternative funding strategies to deal with the rapid expansion in lending, fueled by the demand for new mortgages, according to S&P Global.
In its latest report, the credit-rating agency stated that the funding profiles of financial institutions in the Kingdom are set to undergo changes, primarily driven by a state-backed initiative to boost home ownership.
According to the analysis, mortgage financing represented 23.5 percent of Saudi banks’ total credit allocation at the end of 2023, compared to 12.8 percent in 2019.
“The ongoing financing needs of the Vision 2030 economic initiative and relatively sluggish deposits growth, is likely to incentivize banks to seek alternative sources of funding, including external funding,” said S&P Global.  
The report also predicted that this pursuit of external funding could potentially impact the credit quality of Saudi Arabia’s banking sector.
According to the US-based rating agency, lending growth among Saudi banks has outpaced deposits, with the loan-to-deposit ratio exceeding 100 percent in 2022, up from 86 percent at the end of 2019.
S&P Global expects this trend to persist, particularly with corporate lending playing a more significant role in growth over the next few years. “We consider Saudi banks are likely to turn to alternative funding strategies to fund that expansion,” the report said.  

HIGHLIGHTS

100%

According to the US-based rating agency, lending growth among Saudi banks has outpaced deposits, with the loan-to-deposit ratio exceeding 100 percent in 2022, up from 86 percent at the end of 2019.

It added: “We consider, however, that the risk created by the maturity mismatch is mitigated by the relative stability of Saudi deposits.”   The agency also predicted that Saudi banks’ foreign liabilities will continue to increase, rising from about $19.2 billion at the end of 2023 to meet the funding requirements of strong lending growth, particularly amidst lower deposit expansion.
The report highlighted that Saudi banks have already tapped international capital markets, and the credit rating agency expects this trend to continue for the next three to five years.
According to S&P Global, the Saudi banking system could transition from a net external asset position of SR42.9 billion, or 1.6 percent of lending, at the end of 2023 to a net external debt position within a few years.
In April, S&P Global, in another report, stated that banks in the Kingdom are anticipated to experience robust credit growth ranging between 8 to 9 percent in 2024.
The agency noted that this credit expansion will be propelled by corporate lending, fueled by increased economic activities driven by the Vision 2030 program.
Moreover, the report added that the Saudi government and its related entities are expected to inject deposits into the banking system, thereby supporting the credit growth of financial institutions in the Kingdom.

 


NEOM, Saudi Red Sea Authority sign MoU to develop marine tourism regulations

Updated 03 May 2024
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NEOM, Saudi Red Sea Authority sign MoU to develop marine tourism regulations

  • The MoU’s goal is to enhance research, deliver innovation, and improve the visitor experience for tourists
  • The agreement reflects SRSA’s commitment to attracting investment in coastal tourism activities

NEOM: The Saudi Red Sea Authority and NEOM signed a memorandum of understanding on Friday to cooperate on developing legislation, regulations, and technology in marine tourism, reported the Saudi Press Agency.
The MoU’s goal is to enhance research, deliver innovation, and improve the visitor experience for tourists in Saudi Arabia’s existing, emerging, and future Red Sea coastal destinations.
SRSA Acting CEO Mohammed Al-Nasser and NEOM’s CEO Nadhmi Al-Nasr signed the partnership, which they hope will promote an exchange of expertise and enable the implementation of joint initiatives.
The agreement also reflects SRSA’s commitment to attracting investment in coastal tourism activities.
The partnership will further assist small and medium enterprises in the sector through administrative, technical, and advisory support.
Via this agreement, SRSA aims to integrate with relevant public, private, and third-sector entities to achieve one of the goals of Saudi Vision 2030, which is to develop coastal tourism as a valuable sector of the Kingdom’s economy.


World food prices up in April for second month: UN agency

Updated 03 May 2024
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World food prices up in April for second month: UN agency

PARIS: The UN food agency’s world price index rose for a second consecutive month in April as higher meat prices and small increases in vegetable oils and cereals outweighed declines in sugar and dairy products.

The Food and Agriculture Organization’s price index, which tracks the most globally traded food commodities, averaged 119.1 points in April, up from a revised 118.8 points for March, the agency said on Friday.

The FAO’s April reading was nonetheless 7.4 percent below the level a year earlier.

The indicator hit a three-year low in February as food prices continued to move back from a record peak in March 2022 at the start of Russia’s invasion of Ukraine.

In April, meat showed the strongest gain in prices, rising 1.6 percent from the prior month.

The FAO’s cereal index inched up to end a three-month decline, supported by stronger export prices for maize. Vegetable oil prices also ticked higher, extending previous gains to reach a 13-month high due to strength in sunflower and rapeseed oil.

The sugar index dropped sharply, shedding 4.4 percent from March to stand 14.7 percent below its year-earlier level amid improving global supply prospects.

Dairy prices edged down, ending a run of six consecutive monthly gains.

In separate cereal supply and demand data, the FAO nudged up its estimate of world cereal production in 2023/24 to 2.846 billion metric tonnes from 2.841 billion projected last month, up 1.2 percent from the previous year, notably due to updated figures for Myanmar and Pakistan.

For upcoming crops, the agency lowered its forecast for 2024 global wheat output to 791 million tonnes from 796 million last month, reflecting a larger drop in wheat planting in the EU than previously expected.

The revised 2024 wheat output outlook was nonetheless about 0.5 percent above the previous year’s level.


Material sector dominates TASI trading in first quarter of 2024

Updated 03 May 2024
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Material sector dominates TASI trading in first quarter of 2024

RIYADH: The materials sector led trading on Saudi Arabia’s Tadawul All Share Index, accounting for approximately SR87 billion ($23.2 billion) or 15.11 percent of the market, according to TASI’s 2024 first-quarter report.

SABIC, the largest component of this sector, boasted a market capitalization of SR234.9 billion, with trading value reaching nearly SR7 billion.

The banking sector trailed with transactions valued at SR71.22 billion, comprising 12.37 percent of the market. Al-Rajhi Bank took the lead in market capitalization within the sector and secured the second spot in trade value totaling SR23.62 billion.

In a February report by Bloomberg, Al-Rajhi Bank, seen as an indicator of Saudi Arabia’s growth strategies, exceeded the performance of JPMorgan Chase & Co., exhibiting nearly a 270 percent surge in shares since the initiation of Vision 2030. It has outpaced both local and global competitors, including state-supported banks, emerging as the largest bank in the Middle East and Africa, boasting a market cap of around $95 billion.

According to Morgan Stanley analysts led by Nida Iqbal, as reported by Bloomberg, “We see it as a long-term winner in the Saudi bank sector… While Al-Rajhi is best placed for a rate-cutting cycle, we believe current valuation levels reflect this.” 

Gulf central banks, including Saudi Arabia’s, frequently align their policies with those of the Federal Reserve to maintain their currency pegs to the dollar. According to Bloomberg Intelligence senior analyst Edmond Christou, a reduction in Fed rates could potentially bolster Al-Rajhi Bank’s profitability and expansion, as it will encourage gathering cheap deposits while enabling it to issue debt at more attractive levels.

In this period, the energy sector secured the third position in terms of value traded, reaching SR55.4 billion. Saudi Aramco topped the list with a market capitalization of SR7.47 trillion and registered the highest value among companies traded on the index, totaling SR28.82 billion.

In March of this year, Aramco announced a net income of $121.3 billion for its full-year 2023 financial results, marking the second-highest in its history. Aramco credited these results to its operational flexibility, reliability, and cost-effective production base, underscoring its dedication to delivering value to shareholders.

Tadawul’s quarterly report also indicated that the transportation sector recorded the fourth-highest value traded at SR39.25 billion, equivalent to 6.82 percent of the market. Among the top performers in this sector was cargo firm SAL Saudi Logistics Services, ranking third in value traded on the TASI during this period, following Aramco and Al-Rajhi Bank, with a total value of SR22.74 billion.

SAL debuted on the main market of the Saudi Exchange in November last year. With aspirations to manage 4.5 million tonnes of air cargo by 2030, Saudi Arabia is empowering its logistics sector from a supportive role to a pivotal driver of economic growth.

SAL, in which the Saudi government holds a 49 percent stake through the Saudi Arabian Airlines Corp., experienced a 30 percent surge in its share price during its initial public offering, raising $678 million and becoming Saudi Arabia’s second-largest IPO of the year.

In a January report by Forbes, SAL’s CEO and Managing Director Faisal Al-Beddah emphasized the company’s potential to shape the future of logistics in Saudi Arabia and beyond. He stated: “Logistics is the backbone of any economy. Now we are ready. We have the rotation, we have the infrastructure, we have the regulations, and most importantly, we have the mindset and the technology for Saudi Arabia to be the leading connecting logistics hub in the region.”

The top gainer during this period in terms of price appreciation was MBC Group, with a quarter-to-date percentage change of 127.6 percent, according to Tadawul.

Saudi Arabia’s MBC Group, a media conglomerate, debuted as the first new listing on TASI in 2024. Its trading began on Jan. 8. The company raised SR831 million through its initial public offering.

Saudi Steel Pipes Co. in the materials sector was the second highest gainer, with price appreciating by 88.15 percent.

Etihad Atheeb Telecommunication Co. had a QTD price percentage change of 81.91 percent making it the third-highest gainer on the exchange during this period.

TASI concluded the first quarter of 2024 with a 3.6 percent increase, climbing by 435 points to reach 12,402 points.


Saudi startups raised $3.3bn in last 10 years, says report

Updated 03 May 2024
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Saudi startups raised $3.3bn in last 10 years, says report

  • MAGNiTT report shows fintech emerged as the most funded sector in Kingdom

RIYADH: Startups in Saudi Arabia saw massive growth during the last decade raking in $3.3 billion in venture capital funding, according to a report issued by MAGNiTT.

The data platform, in its “10 Years Saudi Arabia Founders Report” sponsored by Saudi Venture Capital Co., provides an in-depth analysis of the backgrounds, experiences, and expertise of founders. 

“MAGNiTT initially published a report on founders in the MENA VC ecosystem in 2018, focusing on uncovering the DNA of successful entrepreneurs in the region. Today, in partnership with the Saudi Venture Capital Co., we present a comprehensive report on the founders of the top 200 funded startups in the Kingdom over the last ten years,” said Philip Bahoshy, CEO and founder of the platform. 

“By shedding light on founders’ experiences in the Saudi ecosystem, we aim to dispel myths around founders, empower aspiring entrepreneurs looking to establish their ventures in the Kingdom, guide government decision-makers in shaping policies conducive to innovation, and provide invaluable intelligence to investors seeking opportunities in the region,” he added. 

SVC CEO Nabeel Koshak emphasized the remarkable growth and dynamism in the Saudi startup landscape. 

FASTFACTS

Forty-four percent of these startups were launched by teams with two founding members, who together secured 53 percent of the total funds. 

Startups founded by a single individual accounted for 30 percent of the funded startups but only captured 15 percent of the funding in the last decade. 

Thirty-six percent of the 400 founders analyzed had at least 10 years of work experience before launching their respective startups.  

Fifty-nine percent of founders had technical education backgrounds, highlighting science, technology, engineering, and mathematics. 

Thirty-nine percent of founders held degrees in business, contrasting with the global average of 19 percent, according to an Endeavor Insight study. 

“The Kingdom’s strategic initiatives, driven by the Saudi Vision 2030, have laid a solid foundation for innovation, entrepreneurship, and investment. As a result, we have seen a surge in startup activity, with a growing number of ambitious founders seizing opportunities and driving innovation across various sectors,” he said. 

“The goal of the report is to provide policymakers, government officials, and investors with insights and data to inform strategic decisions and policies to further nurture the startup ecosystem for the next 10 years,” Koshak added. 

A decade of funding 

Compiling data from the 200 Saudi-based startups, which collectively raised a total of $3.3 billion from 2014 to 2023, the report highlighted that 44 percent of these startups were launched by teams with two founding members, who together secured 53 percent of the total funds. 

He further stated that with the significant support for innovation, the Kingdom is set to witness the emergence of more unicorns. 

In contrast, startups founded by a single individual accounted for 30 percent of the funded startups but only captured 15 percent of the funding in the last decade. 

Notably, 36 percent of the 400 founders analyzed had at least 10 years of work experience before launching their respective startups.  

The report also indicated a trend toward entrepreneurship among less experienced founders, with 66 percent being first-time startup founders and only 30 percent with previous regional startup experience. 

It revealed a significant gender disparity in the VC landscape within Saudi Arabia, with male founders comprising 94 percent of the total 400 individuals, while female founders accounted for only 6 percent.  

This gender gap is considerably wider than the global norms, where, according to research by Startup Genome conducted between 2016 and 2022, the average proportion of female founders in an ecosystem was 15 percent. 

Additionally, only 7 percent of solo founders were female, and there were no recorded startups with two or more female founders only.  

However, as the number of founders per startup increased, so did gender diversity, albeit slightly. In startups with three founders, 18 percent were of mixed gender, while in startups with four or more founders, the figure was 12 percent. 

Furthermore, 91 percent of male-only founded startups claimed 98 percent of total funding. Conversely, 3 percent of female-only founded startups accounted for 0.4 percent of the total funding. 

Founders' education 

The report further delved into the education qualification of founders revealing that 55 percent in the Kingdom had attained at least a bachelor’s degree.  

In terms of technical development, 59 percent of founders had technical education backgrounds, highlighting science, technology, engineering, and mathematics. 

Thirty-nine percent of founders held degrees in business, contrasting with the global average of 19 percent, according to an Endeavor Insight study. 

Over half of the 400 founders obtained their degrees internationally, while 22 percent held both international and local degrees. 

King Saud University, King Fahd University of Petroleum and Minerals, and King AbdulAziz University were among the most common institutions for startup founders. 

Seven of the top 10 universities of Saudi founders that raised funding were public institutions.

The top international schools of Saudi founders had Stanford and Harvard among the top choices, mirroring global trends. 

Professional experience 

Despite fintech being the most funded sector, only 7 percent of founders had experience in finance, and 18 percent in banking, which is lower compared to the 48 percent with backgrounds in information technology.  

Additionally, even fewer founders, only 12 percent, had experience in e-commerce, despite this industry accounting for the highest share of deals, 20 percent, closed by the top 200 Saudi startups. 

The report also revealed that 36 percent of the founders in Saudi Arabia are skilled professionals with over 10 years of experience before starting their businesses.  

Notably, Saudi Aramco was the most common previous employer among the funded founders, with 7 percent having worked there before launching their startups. 

Furthermore, McKinsey and Microsoft were among the top 10 companies where the 400 founders covered in this report had previously been employed.  

The majority of these founders held significant leadership roles, with 31 percent having served as a founder, co-founder, or board member. Only 4 percent originated from entry-level positions. 

The report also pointed out: “While Saudi Arabia has witnessed several serial entrepreneurs, 66 percent of founders in the last decade were first-time founders,” indicating a vibrant and growing entrepreneurial ecosystem.