Companies expand venture capital funding for women-led startups in Saudi Arabia

Visitors shop at businesses owned by Saudi women in Dammam, Saudi Arabia. (REUTERS file photo)
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Updated 27 June 2021
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Companies expand venture capital funding for women-led startups in Saudi Arabia

  • Female entrepreneurship in startup ecosystems is now flourishing, with government, banks and institutions stepping up support

JEDDAH: The landscape for women entrepreneurs is swiftly evolving in Saudi Arabia through positive economic trends, and despite there being a long way to go, with the right help, female entrepreneurs can rise high.
According to a Global Entrepreneurship Monitor report in 2020, about 36.6 percent of women’s entrepreneurial intentions were reported in the Middle East and North Africa region, with Saudi female entrepreneurs being highly involved in increasing the rate of workforce participation.
“Women-led businesses are among the leading ventures, but still struggle to survive the gender investment gap. Women entrepreneurs fear failing, especially if the people surrounding them are skeptical of their capability in business,” said Emon Shakoor, CEO and founder of Blossom Accelerator, Saudi Arabia’s first tech-inclusion and female-focused accelerator that provides founders with community, network and educational resources, as well as curated investment opportunities.
She added that when male venture capitalists or angel investors do make decisions, they are twice as likely to invest in similar founding teams rather than female businesses.
Among the different barriers, the paucity of women-owned businesses in the digital business sector is also puzzling. “During the pandemic, several businesses witnessed the emergence of online communities, an increase in the use of fintech technology and digitalization of several consumer products that made money even in the slow economy. This led female entrepreneurs to an eye-opening insight and encouraged them to a paradigm shift in technology,” Shakoor said.
Blossom has mentored more than 300 companies, of which 47 went on to receive investment, leading to about SR27 million ($7.2 million) in early-stage pre-seed and seed-stage funding.
“To better address women’s needs, we believe it’s important to support and empower them with tips and step-by-step guidance to help women entrepreneurs transform their business concepts into high-potential tech enterprises, and involve more women in running incubators or investment committees that instantly help in leveling the gender and cultural gap field.”
But despite these issues, women’s empowerment in the Kingdom is evident, as they constitute a vital part of the nation’s workforce and are nothing short of a portrait of success.

Women-led businesses are among the leading ventures, but still struggle to survive the gender investment gap. Women entrepreneurs fear failing, especially if the people surrounding them are skeptical of their capability in business.

Emon Shakoor, CEO, Blossom Accelerator

“Female entrepreneurship in startup ecosystems is now flourishing, with government, banks and institutions stepping up support. The government has already started several initiatives that are committed to driving gender equality in the business world and helping female entrepreneurs succeed in their businesses,” said Shahad Geoffrey, CEO of Taffi, a venture capital-backed startup that caters to online personal styling and shopping services by using algorithms to curate clothing items based on size, budget and style.
Sharing the same sentiment, Saria Alderhali, founder and CEO of Bondai, the first two-sided marketplace in Saudi Arabia that helps millennial travelers discover and book curated experiences, said: “There has been a dramatic rise in the number of accelerators, funds, incubators and other institutions in recent years, which has truly accelerated growth in the startup and venture capital ecosystem and in the Saudi economy as a whole. Still, there is a need for more female role models, more support for female founders, and more female-focused accelerators and funds.”
Bondai also supports travel companies online and helps them automate their processes and grow their businesses. The company empowers travel-related operators to better manage their trips and acquire more frequent and faster bookings, while also providing a variety of options for the experience-seeking customer.
Several investors and venture capitalists have weeded out institutional patterns by recognizing the great potential of ideas presented to them by women entrepreneurs. They look for businesses that will focus on fulfilling societal needs by providing increased numbers of jobs and a work culture that empowers career development and contributes to enhancing economic infrastructure.
One such well-valued active venture capital firm in the Saudi and MENA region, Hala Ventures, believes in funding companies that benefit society through investment and consultancy. The company empowers talented women-owned businesses, enabling them to reach their highest potential.
Ali Ahmed Abussaud, a founding managing partner of Hala Ventures, told Arab News: “About 60 percent of the team are women across investment, marketing and administration. On the company portfolio level (funded companies), one company has been fully founded by women, and the other two companies have been co-founded by female founders. “We at Hala Ventures are now looking into several companies that are co-founded by female founders, as we believe that women are the fastest-growing market segment. They start businesses and achieve sustainable revenue at a higher rate.”

Abussaud added: “Women entrepreneurs are essential, since it extends women’s financial freedom, increases income per family and develops the social wellbeing of society, which results in the improvement of the overall status of the economy.”


Saudi anti-corruption authority reveals details of recent cases

Updated 06 May 2024
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Saudi anti-corruption authority reveals details of recent cases

  • Spokesman said legal procedures had been initiated against all perpetrators

RIYADH: A spokesman for Saudi Arabia’s Oversight and Anti-Corruption Authority, also known as Nazaha, revealed on Sunday details of a number of criminal cases it recently investigated and prosecuted.

Outlining 20 of the most prominent corruption cases, he said legal procedures had been initiated against all perpetrators.

In one case, two Central Bank employees were arrested for receiving sums of money from a resident, who was also arrested, in exchange for depositing more than SR7.3 million ($1.95 million), without verifying the source, into bank accounts belonging to commercial entities over a two-year period.

In another case, a security officer working at the General Department of Traffic was arrested for receiving SR387,000 from the owner of a public services office, who was also arrested, in exchange for illegally amending the essential data of a group of vehicles.

One of the cases also highlighted involved an employee working at a university hospital who was arrested for receiving SR100,000 from citizens in exchange for a promise to employ them at the university.

Nazaha said it continues to work to identify and prosecute anyone in the Kingdom involved in the embezzlement of public funds, guilty of abuse of power and position for personal gain, or otherwise harming the public interest.

It stressed that guilty parties will be pursued and held accountable, and that there is no statute of limitations on such crimes.


Saudi, Bahraini public prosecutor meet in Manama

Updated 05 May 2024
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Saudi, Bahraini public prosecutor meet in Manama

  • Al-Mujeb highlighted the unwavering support the Kingdom's public prosecution receives from its leadership

RIYADH: Saudi Public Prosecutor Sheikh Saud bin Abdullah Al-Mujeb met with his Bahraini counterpart Ali bin Fadl Al Buainain in Manama, Saudi Press Agency reported on Sunday.
Al-Buainain welcomed Al-Mujeb and his accompanying delegation and expressed his delight at the visit, which he said signified the ongoing exchange of visits between the judicial bodies of the two nations and the sustained collaboration in combating transnational crime.
During the meeting, Al-Mujeb emphasized the deep-rooted historical ties between the Bahrain and the Kingdom and their continued advancement across various sectors, particularly in parliamentary cooperation and the exchange of information to ensure regional security.
He highlighted the unwavering support the Kingdom's public prosecution receives from its leadership, which he said enhanced the efficiency of its judicial processes.


Conjoined Filipino twins arrive in Riyadh for surgery

Updated 05 May 2024
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Conjoined Filipino twins arrive in Riyadh for surgery

  • Parents convey appreciation to King Salman, Crown Prince Mohammed bin Salman

RIYADH: Conjoined Filipino twins arrived in Riyadh from Manila on Sunday following a Saudi evacuation plan coordinated by the Ministry of Health, the Saudi Press Agency reported.

Akhizah and Ayeesha Yusoph were born in Panabo City in the Davao del Norte province on the southern island of Mindanao in December 2022. Their bodies share one liver.

The two 16-month-old girls arrived at King Khalid International Airport and traveled to the King Abdullah Specialized Children’s Hospital to be assessed to determine the feasibility of separation surgery.

Abdullah Al-Rabeeah, supervisor general of the Saudi aid agency KSrelief, thanked the Kingdom’s leadership for their support of the flagship Saudi Conjoined Twins Program.

The program, which is spearheaded by Al-Rabeeah, has operated on more than 130 children from 25 countries since 1990. The children were born sharing internal organs with their twin.

Al-Rabeeah spoke of the program’s global significance which marks a milestone in the field of medicine, while aligning with the ambitious goals of Saudi Vision 2030 to elevate the Kingdom’s healthcare services.

The parents of Akhizah and Ayeesha conveyed their heartfelt appreciation to King Salman and Crown Prince Mohammed bin Salman for the warm welcome and generous hospitality extended to them following their arrival in the Kingdom.
 


Frankly Speaking: How are Saudi-Malaysian bilateral relations faring?

Updated 06 May 2024
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Frankly Speaking: How are Saudi-Malaysian bilateral relations faring?

  • Prime Minister Anwar Ibrahim highlights close alignment between Malaysia’s Madani economic framework and Saudi Vision 2030, resulting in a “win-win” for both countries
  • Says ties have experienced “phenomenal advance” in terms of trade and investment, sheds light on his friendship with Crown Prince Mohammed bin Salman

DUBAI: Saudi-Malaysia bilateral relations have experienced “phenomenal advance” over the past decade in terms of trade and investment, resulting in a “win-win” for both countries, Anwar Ibrahim, the prime minister of Malaysia, has said.

Speaking to Katie Jensen, host of the Arab News current affairs program “Frankly Speaking,” during a visit to Riyadh for a special meeting of the World Economic Forum last week, Anwar said he would like to see accelerated deepening of ties.

Even compared with six months ago, when he attended the Gulf Cooperation Council’s joint summit with the Association of Southeast Asian Nations in Riyadh in October, Anwar said the “two-way traffic” of investment had advanced.

Prime Minister Anwar Ibrahim said he would like to see accelerated deepening of ties between Saudi Arabia and Malaysia. (AN photo)

“It was a phenomenal advance and improvement in terms of trade, investments, not only in oil and gas by Aramco, but also by leading Saudi companies,” he said in a wide-ranging interview covering development, diplomacy and the fight against corruption.

“A lot of Malaysian companies, too, are involved here, of course, in a smaller scale, in many of NEOM’s and in some of the energy transition programs. And I’m pleased that this two-way traffic is advancing.

“In my discussions with the crown prince, I would like to urge that this be further accelerated because that would be a win-win for both countries.”

Anwar’s personal friendship with Saudi Crown Prince and Prime Minister Mohammed bin Salman is part of the reason for this burgeoning bilateral relationship, which has in turn bolstered the GCC-ASEAN partnership.

Saudi Crown Prince Mohammed bin Salman receives Malaysian Prime Minister Anwar Ibrahim in Riyadh on October 22, 2023. (SPA/File)

“I must say that I’m fortunate because Crown Prince Mohammed bin Salman considered me as a friend,” said Anwar, who met the crown prince during his visit for the World Economic Forum.

“We do exchange notes from time to time and he personally requested me to be present, and gives me a good opportunity to express some of the concerns and more so to be focused on economic development, on the relationships that it covers, particularly in terms of trade and investments.

“And I think he’s very forthcoming, he’s serious, he’s very determined and he’s tough. And that is to me a credit, particularly when it comes to bilateral relations. Enough rhetoric, enough pious platitudes. We want action and effective economic programs among our countries and the region, which include, therefore, ASEAN and the GCC.”


ALSO READ: Malaysian PM condemns West’s ‘sheer hypocrisy’ over Gaza war


Saudi Arabia and Malaysia also share much in common in terms of their respective economic development programs, which Anwar says are closely aligned.

While the Kingdom recently celebrated the eighth anniversary of its social reform and economic diversification agenda — Vision 2030 — Malaysia is likewise making strides with its own development plan — the Madani economic framework.

Launched in July 2023, less than a year after Anwar became prime minister, the framework aims to position Malaysia among the world’s 30 largest economies, its top 25 least corrupt countries according to the Corruptions Perceptions Index, top 12 in the Global Competitiveness Index and top 25 in the Human Development Index.

Speaking to Katie Jensen, host of the Arab News current affairs program “Frankly Speaking,” Malaysian Prime Minister Anwar Ibrahim said he would like the deepening of Saudi-Malaysian ties accelerated "because that would be a win-win for both countries.” (AN photo)

Malaysia also aims to raise its female labor force participation rate to 60 percent and lower its fiscal deficit to 3 percent and lower. To succeed in this reform agenda, Anwar intends to weed out corruption, implement good governance, boost foreign and domestic direct investment, and raise wages.

“I studied Vision 2030 extensively,” said Anwar. “And during the session we had during the World Economic Forum, we had an opportunity to engage with Crown Prince Mohammed bin Salman for an hour asking questions on how he then sees this vision coming.”

He added: “We are now moving ahead to deal with issues that would affect the future of the world, particularly the emerging economies … dealing with energy, with digital, with technology, with quality education, with good public health service, with AI.

Malaysian Prime Minister Anwar Ibrahim speaks during panel discussion of the World Economic Forum meeting in Riyadh last week. (X: @WEF)

“And I think this is the direction which is consistent with the Madani, because we also talk about civilization and values and integrity and, more importantly, the issue of good governance.”

A shared economic trajectory is not the only thing Saudi Arabia and Malaysia have in common. Both nations have also pursued their own independent foreign policy, without submitting to the demands of powerful allies or choosing sides in superpower rivalries.

“Firstly, we are not tied to this xenophobic view of viewing China in a negative sense,” said Anwar. “As a neighbor, we have not encountered problems with them.

“Of course, there are teething issues which we do encounter with all our neighbors and countries, but we maintain excellent relations, which would enormously benefit Malaysia as an emerging economy: Investments, trade and even cultural exchanges.

Malaysian Prime Minister Anwar Ibrahim (left) meets with Chinese President Xi Jinping in Beijing on March 31, 2023. (PMO photo)

“And we also have a very strong presence of the ethnic Chinese in Malaysia. And I think to deny them a right of engaging would be futile.

“At the same time, as I have said earlier, cumulatively, the US remains the most important trading partner. And we are comfortable with it. We have benefited from its training, the technology transfer and also the workforce.

“Now there’s a continued presence of European countries, including Germany. And I think, why can’t we be just friends and engage with everybody? And those who are having problems should not impose and dictate their policies to the smaller economies, because we cannot afford to have that.

“There’s no reason whatsoever for us to be involved in that sort of a trade war, or bifurcation or tense relations between these countries.”

On the domestic front, Anwar has been true to his word on combating corruption. The Malaysian Anti-Corruption Commission has confirmed it is investigating former Prime Minister Mahathir Mohamad in connection with a case involving his sons, Mirzan Mahathir and Mokhzani Mahathir, who have been ordered to declare their assets.

Mahathir is a vocal critic of Anwar, who served as his deputy during the 1990s before being jailed. Anwar has denied accusations of using his anti-corruption drive to settle an old political score.

“We cannot deny the fact that any effective measure to combat corruption would invite some negative political remarks,” said Anwar.

“So, are we suggesting that effective anti-corruption moves should avoid dealing with past corrupt leaders? Of course, the answer is no, because then the public would think that if you belong in a certain level, then you should be safe, excluded from these operations.

Saudi Oversight and Anti-Corruption Authority and Malaysian Anti-Corruption Commission signed an agreement on combating cross-border corruption. (SPA)

“So, I leave it entirely to the Anti-Corruption Commission. They do not consult me. My instructions are clear: We must stop the rot. It does not matter what the position, present or past. If you find basic reasons to suggest that investigations must be conducted fairly and professionally, please do so, because you cannot be selective, whether they are in the government or opposition, whether present leaders or past leaders.

“Otherwise, leaders like me will take the opportunity. You amass wealth as much as possible, quietly, and then later I’ll be safe because past leaders should not be touched. I think this is not the position that we take.

“I started this administration with clear calls. Good governance to rid the country of the scourge of corruption, which has led to so much waste. The endemic corruption is a scourge because it has condemned the society and the poor have suffered due to this. And many of our programs have been somewhat scuttled.

“So, we will proceed regardless. And it does not bother me in terms of the political reaction, because the Anti-Corruption Commission must remain independent and professional.”
 

 


Saudi defense minister meets with Burkinabe counterpart

Saudi Defense Minister Prince Khalid bin Salman meets with Burkina Faso’s Minister of Defense and Veterans Affairs in Riyadh.
Updated 05 May 2024
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Saudi defense minister meets with Burkinabe counterpart

  • The ministers discussed regional and international developments and efforts made with regard to them

RIYADH: Saudi Arabia’s Defense Minister Prince Khalid bin Salman met with Burkina Faso’s Minister of Defense and Veterans Affairs Kassoum Coulibaly in Riyadh on Sunday.

During the meeting, relations between the two countries and military and defense cooperation were discussed.

The ministers also discussed regional and international developments and efforts made with regard to them.