Startup of the Week: Filling the gap in natural skincare and beauty products

The name of the company is a combination of two French words “laboratoire” meaning “laboratory” and “apothecaire” which means “apothecary.” (Supplied)
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Updated 23 February 2021

Startup of the Week: Filling the gap in natural skincare and beauty products

  • Nowadays a wide range of beauty and skincare products are available that claim to be free of chemicals, and offer natural remedies

JEDDAH: With an increase in awareness about the harmful effects of preservatives and chemicals used in items like food, beverages and skincare products, people are turning to organic products and natural remedies.

This trend has led many entrepreneurs to try their luck with products free of harmful chemicals. Nowadays a wide range of beauty and skincare products are available that claim to be free of chemicals, and offer natural remedies.

Fatima Abdullah Saeed Al-Maddah, a lawyer by training, is one of those entrepreneurs who understood the market’s needs and became an entrepreneur and aromatherapist.

Al-Maddah told Arab News that there was demand for skincare products free of harmful ingredients, but the supply was not adequate.

“We were looking for clean, effective, and simple skincare but we couldn’t find such products here,” she said.

She used to try natural remedies instead of purchasing products that could harm her health.

Al-Maddah said people wanted products free of toxins without compromising on their effectiveness. She felt motivated to launch her own line of products to exploit the gap. The idea, however, materialized when Al-Maddah learned aromatherapy.

She said: “Then I started looking at formulas, talking to professionals, dermatologists, and manufacturers and came up with a range of products without using toxins such as sulfates.”

Al-Maddah said her idea was simple — one of the core values of her brand.

“Our products are intended for a modern woman, who is ambitious and has a lot of things to do, whether she is a career woman or not. We believe that all women are beautiful from the inside and have a natural charm to them that we wanted to enhance.”

The name of the company is a combination of two French words “laboratoire” meaning “laboratory” and “apothecaire” which means “apothecary.”

The skincare industry is extremely competitive, so a startup needs to innovate, Al Maddah said.

“Just to let the people know that your product exists is a challenge.”

She said the launch of her startup went smoothly as she took advice from French and American experts.

“I also had knowledge of aromatherapy, I was able to tell them what I wanted and did not want in a formula,” Al-Maddah said.

People have been used to commercial products for so long that it takes customers a while to get used to natural and clean products.

“What makes Labothecaire products unique is the scientific backing that they have,” she told Arab News.

Another thing that the entrepreneur emphasized on was the company’s focus on listening to the customers and the drive to improve its products.

Labothecaire also emphasises transparency. “Lots of cosmetic companies make sure that the ingredients are mentioned in small fonts, and not easily readable. However, we make sure that it is truly clear, on the products and on the website. We try and educate the customers on our social media on what goes into our products and what is beneficial to them.”

The company also tries to educate the people and raise awareness. Al-Maddah said that most of the products that people use end up in their bloodstreams. So, they also offer free consultations to their customers where professionals advise them according to their issues.

With every new product, Al-Maddah says her sense of achievement is boosted “I am very proud of each of our products.”

The brand plans to initially expand to the Gulf Cooperation Council countries before going international.


Israel and Greece sign record defense deal

Updated 28 min 51 sec ago

Israel and Greece sign record defense deal

JERUSALEM: Israel and Greece have signed their biggest ever defense procurement deal, which Israel said on Sunday would strengthen political and economic ties between the countries.
The agreement includes a $1.65 billion contract for the establishment and operation of a training center for the Hellenic Air Force by Israeli defense contractor Elbit Systems over a 22-year period, Israel’s defense ministry said.
The training center will be modeled on Israel’s own flight academy and will be equipped with 10 M-346 training aircraft produced by Italian company Leonardo, the ministry said.
Elbit will supply kits to upgrade and operate Greece’s T-6 aircraft and also provide training, simulators and logistical support.
“I am certain that (this program) will upgrade the capabilities and strengthen the economies of Israel and Greece and thus the partnership between our two countries will deepen on the defense, economic and political levels,” said Israeli defense minister Benny Gantz.
The announcement follows a meeting in Cyprus on Friday between the UAE, Greek, Cypriot and Israeli foreign ministers, who agreed to deepen cooperation between their countries.

Bitcoin tumbles 7.7% to $55,408 on Sunday

Updated 18 April 2021

Bitcoin tumbles 7.7% to $55,408 on Sunday

  • Turkey central bank banned use of crypto last week
  • Ether also retreats on Sunday

DUBAI: Bitcoin fell 7.7 percent to $55,408.08 early Sunday, wiping more than $4,600 from the value of the world's biggest cryptocurrency.
Ether, the coin linked to the ethereum blockchain network, also dropped by about 6.5 percent to $2,165.91.
Bitcoin took an earlier tumble on Friday, losing 4 percent after Turkey's central bank banned the use of cryptocurrencies citing risks.
Turkey published the new law in its official gazette in which the central bank said cryptocurrencies and other similar digital assets would not not be used, directly or indirectly, to pay for goods and services.


Saudi insurance sector eyes more mergers and acquisitions

Updated 17 April 2021

Saudi insurance sector eyes more mergers and acquisitions

  • Government assistance shielded sector from the coronavirus disease (COVID-19) pandemic’s impact

RIYADH: The Kingdom’s insurance sector closed the financial year 2020 on a high note with the aggregate net profit of local insurance firms, except for the Saudi Indian Company for Cooperative Insurance, rising to SR1.443 billion ($0.38 billion) in Q4, an increase of 47 percent year-on-year, according to data compiled by the financial news service Argaam.

There were 13 insurers recording higher profits in 2020, led by the Mediterranean and Gulf Insurance and Reinsurance Co., which surged 1,081 percent, the Saudi Arabian Cooperative Insurance Co., which increased 545 percent, and the Gulf General Cooperative Insurance Co. which saw net income up 397 percent.

The sector finished out the tough year on a high note mainly thanks to government support. 

KPMG said while the pandemic triggered disruption for most industries, the Saudi government intervened and provided relief by opting to pay for the treatment of all COVID-19 patients. 

The audit, tax and advisory services firm found that the cumulative net profit after zakat and tax touched a high of SR1.32 billion in the first nine months of 2020, an increase of 96.1 percent year-on-year. Argaam’s figures also found that the total gross written premiums (GWPs) of Saudi-listed insurance companies increased by 3 percent year-on-year to SR38.28 billion in 2020. 

There were 18 insurance firms out of 29 reporting an increase in GWPs last year, led by Aljazira Takaful Taawuni Co., which was up 80 percent year-on-year. 

Saudi insurers reported SR23.5 billion in net claims last year, down from SR24.7 billion a year previously. Net incurred claims accounted for around 76 percent of GWPs in 2020, the data showed.

Analysts said the Saudi insurance market was set to witness consolidation with mergers and acquisitions (M&A) gaining pace during 2021.  The Saudi Central Bank (SAMA) in January reiterated the need for insurance companies to look at M&A deals since the sector was a key driver of the Kingdom’s economy and a pillar of the Financial Sector Development Program, one of 12 executive programs launched by the Council of Economic and Development Affairs to achieve the objectives of Saudi Vision 2030.

HIGHLIGHTS

• The Kingdom’s insurance sector closed the financial year 2020 on a high note with the aggregate net profit of local insurance firms, except for the Saudi Indian Company for Cooperative Insurance, rising to SR1.443 billion($0.38 billion) in Q4.

• The total gross written premiums (GWPs) of Saudi-listed insurance companies increased by 3 percent year-on-year to SR38.28 billion in 2020.

• Saudi insurers reported SR23.5 billion in net claims last year, down from SR24.7 billion a year previously.

The recent mergers between insurance firms were positive indications that the central bank’s plans for the sector were moving in the right direction, said SAMA Gov. Fahad Al-Mubarak during the honoring of Aljazira Takaful Taawuni Co. and Solidarity Saudi Takaful Co. following their merger.

SAMA will continue to encourage insurance companies to look at potential mergers in order to achieve the goals set out as part of the Vision 2030 programs, Al-Mubarak said. 

The sector recently witnessed a number of agreements and mergers, including between Walaa Cooperative Insurance Co. and Metlife AIG ANB Cooperative Insurance Co., and between Al-Ahlia Insurance and Gulf Union National.

Talal Bahafi is chief market officer at Marsh Saudi Arabia, which is part of the global financial services group Marsh & McLennan. He said the Kingdom’s insurance sector was likely to see more consolidation in 2021, driven by insurers looking to streamline costs, boost efficiency and increase optimization.

“The last 12 months have brought about significant changes to the insurance market in the GCC (Gulf Cooperation Council), in terms of capacity and pricing,” Bahafi told Arab News. “We expect these conditions to persist throughout 2021 and for organizations to continue to face more challenging trading conditions. It is important for organizations to adapt to these shifts by renewing their focus on building resiliency and rethinking their risk management strategies. This will, in turn, ensure they have an insurance program in place which matches the risk appetite of their business.” The Clyde & Co Insurance Growth Report 2021 said the Middle East insurance sector would see increased M&A activity this year.

According to the law firm’s report, M&A insurance deals in the Middle East and Africa rose by 166.7 percent in 2020, the biggest growth across all regions.

S&P Global Ratings, in its latest report on the GCC insurance sector, said it expected to see growth in Saudi Arabia due to regulatory initiatives. 

In the GCC it expected its ratings on insurers to remain broadly stable in 2021 owing to robust capital buffers, despite ongoing economic uncertainty relating to the pandemic.

Meanwhile, the rate of Saudization in the insurance sector has reached 75 percent compared to 35 to 40 percent in the past, according to Abdullah Al-Tuwaijri, SAMA’s director general of insurance supervision.

Al-Tuwaijri, who made the remarks during a session of the Economic Growth Forum, added that the high Saudization rate indicated the sector was capable of creating more job opportunities for citizens.

Related


Brazilian renewable energy sector offers opportunities for Saudis

Updated 17 April 2021

Brazilian renewable energy sector offers opportunities for Saudis

  • The Kingdom imports several food products from Brazil, mostly in the form of meat and coffee

RIYADH: A new report by the Arab-Brazilian Chamber of Commerce (ABCC) revealed several opportunities for Saudi investors looking to break into the Brazilian market by investing in key sectors.

The report identified four core industries that the Kingdom had previously invested in: Rubber and plastic manufacturing, food storage and other transport activities, chemical and machinery manufacturing, and vehicle manufacturing.

Rachel Andalaft, CEO of research and consultancy firm Mangifera Analytics, told Arab News that Saudi Arabia has traditionally seen Brazil as a “possible gateway to the rest of Latin America.”

“Brazil’s increased opportunities have opened the door for Saudi Arabians to invest in diverse Brazilian markets — not only in ongoing food markets but also oil and gas,” she said.

The Kingdom imports several food products from Brazil, mostly in the form of meat and coffee. Saudi Arabia was the premier Arab importer of poultry from Brazil in January, with 35,800 tons of poultry shipped to the Kingdom.

Also, in February of this year, the Saudi Agricultural and Livestock Investment Co., a joint-stock company owned by the sovereign wealth fund the Public Investment Fund (PIF), entered into an agreement with Brazil’s Minerva Foods to acquire assets in Australia and set up a joint venture for the processing and export of beef and lamb produce.

Additionally, Andalaft stated that the PIF would be putting funds forward to be used in Ferrograo, a crucial railroad for Brazil. “This will go from Mato Grosso to Pará, spanning about 1,000 kilometers at an estimated cost of over $3 billion,” she said.

According to Andalaft, trade relations show great potential for growth given the productive complementarities between the two countries, particularly in Brazil’s emergent renewable energy market.

“Typical market opportunities are earmarked for double-digit returns, reaching beyond an 18-percent return on investment for those investors able to create smart financing structures,” she said of the opportunities in the wind and solar energy sector in Brazil.

Arab-Brazilian trade relations are expected to retain a strong growth trajectory in the future, particularly after the ABCC announced plans in February to set up an international office in the Saudi capital of Riyadh to capitalize on trade between the two countries.


Saudi Aramco part of $50 million funding for US software firm

Updated 17 April 2021

Saudi Aramco part of $50 million funding for US software firm

  • The extra $50 million brings Seeq’s total funding since its launch in 2013 to around $115 million

RIYADH: Saudi Aramco’s investment arm was among a group of investors who awarded SR187.5 million ($50 million) to a Seattle-based manufacturing and technology software company.

Seeq Corp. said it had raised the new funds as part of a Series C funding round as the group of investors backing the financing were Altira Group, Chevron Technology Ventures, Cisco Investments, Second Avenue Partners and Saudi Aramco Energy Ventures (SAEV).

The extra $50 million brings Seeq’s total funding since its launch in 2013 to around $115 million. While the breakdown of figures was not given, Seeq did say that SAEV was already an existing investor from previous funding rounds. Seeq enables engineers and scientists to rapidly analyze, predict, collaborate, and share insights to improve production and business outcomes for its products. It operates across many sectors, including oil and gas, pharmaceutical, chemical, energy and mining.

The Seattle-based company aims to use the new funds to develop its sales and marketing resources and expand its presence into international markets.

“By leveraging big data, machine learning and computer science innovations, Seeq is enabling a new generation of software-led insights,” Steve Sliwa, the CEO and co-founder of Seeq, said in a press statement.

According to its website, SAEV is described as the strategic technology venturing program of Saudi Aramco. Its mission is to invest globally into startup and high-growth companies with technologies of strategic importance to Aramco, to accelerate its development and its deployment in the company.