Misk program gives a boost to young Saudis who mean business

Misk Innovation and 500 Startups help accelerate innovation and entrepreneurism by bringing Silicon Valley growth techniques to young regional companies, helping them scale and fundraise by imparting knowledge. (Supplied photo)
Updated 19 March 2019

Misk program gives a boost to young Saudis who mean business

  • The first batch includes 19 start-ups from across the region, specializing in various fields
  • The platform allows businesses to access quality candidates through a matching algorithm

DUBAI: Young Arabs are taking the region’s offline markets online, from fitness and recruitment to car repairs and chalet hire. 

Nineteen start-ups have been chosen so far to take part in the Misk 500 MENA Accelerator Program.

Anwaar Alrefae, a 26-year-old Kuwaiti, is one of them, with her Project 5 Miles (P5M) health and fitness app. 




Anwaar Alrefae of P5M

“We help people get fit and support them in staying fit,” she said. 

“What’s important for the community in the region is family, friends and work, and because fitness isn’t an integral part of these pillars in people’s lives, when things get stressful, the first thing to drop is a healthy lifestyle because it’s not an integral part of their lives.” 

Launched last year, the app’s name stems from pushing through the hardest first 5 miles. 

“In those first 5 miles, it’s a new experience and you’re trying to discover what works for you and what doesn’t,” Alrefae said. 

“Once you push through them, you know what works for you and how to fit it into your life, and it’s easier for you to get active.”

Her objective is to combine fitness and socializing, as her app allows members to book classes in multiple gyms with friends and family. 

“It allows people to be social in an active way, and it’s less likely for them to drop being active because they can be social with friends and family while being active, which brings in the element of entertainment,” she said. 

“The practice of anything is finding a routine without boredom, so by being able to find that flexibility in such activities, people won’t get bored. 

“It’s human nature, and we want to keep people on their toes and engaged.”

Having grown up in Kuwait and studied in Boston, Alrefae hopes to dispel the misconception that the region is generally “lazy,” being extremely active herself. 

“By adding this physical component to people’s lives, they’ll really be able to have a sense of independence and confidence, and set a goal and achieve it ... Besides the health aspect, it will also have a huge mental effect.”

Mohamed Ibrahim, a Sudanese who was raised in Riyadh, is one of Alrefae’s classmates in the Misk program. 




Mohamed Ibrahim of Sabbar

He created Sabbar earlier this year as a recruitment solution that focuses on jobs in the retail and service industry. 

It provides businesses in Saudi Arabia with a platform that automates their recruitment process, halving their recruitment time and cost. 

It also offers potential workers a mobile app that allows them to find nearby jobs.

The start-up is timely, with a recent labor law in the Kingdom pushing businesses to hire more Saudis. 

“It’s a unique offering where we find jobs in a geographical way,” Ibrahim said. 




Sabbar helps Saudis find nearby jobs in the retail and service industry, while also helping automate businesses’ recruitment process. (Supplied photo)

“There’s no platform for Saudis to find retail jobs, like baristas or cashiers, so this helps businesses in their challenge today to hire faster and easier.”

The platform allows businesses to access quality candidates through a matching algorithm built on jobseekers’ personality and desire, and to ensure that potential hires are retained longer.

“There’s a high turnover in Saudi Arabia in this (retail and service) industry — up to 70 percent — compared to the global average of 24 percent,” he said. 

“You have businesses today that are struggling to meet the demand of filling vacancies quickly due to the hire turnover, and there’s a struggle to grow because of it, so when the labor law came out I saw retailers go through a lot of challenges, so it’s a niche market I can definitely grow.”




Abdullah Shamlan of Speero

For Abdullah Shamlan, a 29-year-old Yemeni who was born and raised in Riyadh, the Misk program has provided him with invaluable mentorship to grow his business Speero. 

“You learn from the best, and the quality of the network of founders you’re exposed to is great,” he said. 

“It’s the largest in the MENA (Middle East and North Africa) region, which definitely helps.”

Speero is an online marketplace that helps businesses and individuals find spare parts for cars in a more convenient way. 

“We connect spare-parts stores with customers. It helps organize some complicated industries, like spare parts,” Shamlan said.

“There’s no single solution that tells you about spare-parts prices and their validation in the market, so we’re doing the tough job for the government on the ground.”

With more than 8,000 suppliers in the Kingdom, Speero has started helping 150 of them manage their inventory while providing almost instant quotations to customers on the search, before delivering the parts to their doorstep. 

“We serve more than 5,000 people in Saudi Arabia, and we’re taking a totally offline market online,” Shamlan said. 

“There’s a need for this because it’s a daily struggle, and we already crossed $1 million in sales in less than 18 months.”

Renting chalets in the Kingdom is another practice that has been made easier, thanks to Latifah Altamimi, a 30-year-old Saudi from Riyadh who created GatherN in November 2016. 

“It’s a platform that helps people search and book chalets in Saudi Arabia,” she said. 

“We also help chalet owners list their properties and manage them, so it’s like a combination of a Saudi Airbnb and Booking.com.”




Latifah Altaimi of GatherN

The start-up stemmed from Altamimi’s own experience as a regular customer, spending every weekend in a chalet in Riyadh for social and family gatherings. 

In one year alone, the app’s customer base grew 500 percent.  

“There’s demand for it. We have more than 6.2 million transactions every year in this market, but 99.99 percent are done manually, for walk-in customers or calling the reception of the (chalet),” she said. 

“It’s a concept developed in Saudi Arabia, with more than 100,000 resorts in the Kingdom. 

“We now have more than 1,000 chalets, with huge room for improvement.” 

Altamimi said the Misk program has been extremely beneficial, adding: “We already know a lot, but there’s a huge difference between knowing and doing. It’s a great opportunity to expand, and we’re working on our growth. We already grew 40 percent in the seven weeks we’ve been with them (the program).” 

One of the challenges she is working on is converting her leads into bookings. 

“We now have more than 15 employees, 8 percent of whom are Saudis, and we’re planning to reach 25 employees,” she said. 

“I was an employee for seven years and I’m a proactive person. I like to try different things and experiment. I worked in an international company where I didn’t have the space to be creative and do more than what I was expected to, so having my own company gives me huge space to experiment, be creative and contribute to the country’s economy.”

The Misk program began on Jan. 27, 2019.

It will conclude with a demo day on May 13 in Riyadh.

 


Saudi Arabia unveils SR1.02 trillion budget in privatization push

Updated 21 min 26 sec ago

Saudi Arabia unveils SR1.02 trillion budget in privatization push

  • King Salman pledges to empower private sector and boost transparency across the economy
  • Saudi Finance Minister Mohammed Al-Jadaan said government would continue its focus on developing the private sector

RIYADH: Saudi Arabia is set to spend SR1.02 trillion ($272 billion) next year as the Kingdom embarks on a major privatization push amid a widening budget deficit.
The government’s annual budget released on Monday predicts revenue of SR833 billion in 2020, leaving a projected deficit of SR187 billion — or the equivalent of 6.4 percent of GDP. It anticipates real GDP growth of about 2.3 percent next year.
King Salman announced the figures at a cabinet meeting in Riyadh.
“We are determined to continue implementing economic reforms, diversifying sources of income, including investing the proceeds of Saudi Aramco by the Public Investment Fund, optimizing the use of available resources, empowering the private sector and raising the level of transparency and efficiency of government spending to boost growth and development rates,” he said.

Announcing the budget breakdown, Saudi Finance Minister Mohammed Al-Jadaan said that while spending next year would be less than in 2019, the government would continue its focus on developing the private sector, stressing there would be no increases in taxation.
“Privatization is at the top of the government’s priorities,” he told reporters.
“We will continue to support big projects and will continue to support promising projects,” he said. ” Enabling the private sector is the top priority of Vision 2030. We have more to come and our journey toward Vision 2030 demands it.

Saudi Finance Minister Mohammed Al-Jadaan said the government would continue its focus on developing the private sector. (Ahmed Fathi)

The budget takes place against a backdrop of quickening reforms in 2019 and a number of key events from the record initial public offering of Saudi Aramco to the creation of fast track tourism visas.
“We believe that the revenue assumptions in the budget are realistic, both oil and non-oil,” Monica Malik, chief economist at Abu Dhabi Commercial Bank, told Arab News.
“Despite the planned pullback in government spending, we expected to see a pickup in real non-oil GDP growth as investment activity strengthens. Spending by the PIF will be central for the higher investment activity.

"The finance ministry hosted a visit of international investors to coincide with this year’s budget announcement, underscoring the government’s desire to attract more overseas investment in the slipstream of the world’s biggest IPO. The group included a number of international investment companies, insurers and asset managers, including Goldman Sachs, Mayfair Bank, Etiqa Insurance and Nippon Life Insurance Company among others.
Saudi banks such as SAAB, Samba, NCB, Bank AlJazira and Alinma Bank also attended.
While reducing the Kingdom’s dependence on oil revenues is a key part of the Vision 2030 reform agenda, the commodity remains the principal driver of spending trends for both Saudi Arabia and other Arabian Gulf oil-exporting nations.
They have been coordinating production cuts since 2017 through the OPEC+ group of producers that includes Russia, in an effort to keep the market in balance amid surging output from US shale producers.
Last week the Kingdom spearheaded an agreement between the OPEC+ group of exporters to commit to further output cuts to help avert an oversupply of oil on the global market.
Education gets the lion’s share of government spending in 2020 with some SR193 billion set aside for the sector after more than 500 schools were opened in 2019.
The budget analysis also reveals that most non-oil sectors of the economy posted positive growth rates during the first half of this year with the construction sector recording growth for the first time since 2015.
That helped to reduce the unemployment rate among Saudis at the end of the first half of the year by 0.4 percentage points to 12.3 percent compared to the end of 2018.
US-based IHS Markit analyst Bryan Plamondon, told Arab News: “The 2020 budget highlights rationalized spending, with debt issuance and reserves helping to fill the gap from weaker revenues. We expect the Kingdom’s fiscal account will post wider deficits during 2020–21 as spending on Vision 2030 continues.”

*Click here for the full budget statement from the Ministry of Finance