Startup of the Week: Capturing a rising demand for conscious living through sustainable beauty:

In 2021, Secret Skin started shipping to Oman and Kuwait, and this year will start shipping to KSA, including the expansion of distribution for their exclusive brands. (Reuters)
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Updated 01 May 2022
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Startup of the Week: Capturing a rising demand for conscious living through sustainable beauty:

  • Secret Skin is dedicated to body and earth-friendly products

DUBAI: When Anisha Oberoi received an aggressive breast cancer diagnosis ten years ago, it prompted her to reassess everything about her life. She received treatment, kept up a great job at Amazon and moved to Dubai. But this did not fulfill her ambition.

“I was put on hormone treatments after surgery and began to feel quite desperate at not being able to find clean, toxin-free alternatives to beauty products widely available to consumers,” said Oberoi, founder and CEO of Secret Skin.

“The more I learnt about hormone disruptors and carcinogens present in conventional mass-produced personal care, the more I realized how important it was to do something about this when I was ready, by creating a brand built on trust in the beauty and wellness space.”

This motivated her to set up a beauty e-commerce startup called Secret Skin. The award-winning startup was dedicated to sustainable, body and earth-friendly products.

For Oberoi, Secret Skin has become a personal story in many ways. 




Secret Skin was launched online in October 2020 as a discovery platform that connects mindful consumers to conscious beauty brands from around the world. (Supplied)

Secret Skin was launched online in October 2020 as a discovery platform that connects mindful consumers to conscious beauty brands from around the world but is built differently than a traditional beauty business model.

It is based on a triple-bottom line framework that focuses on social and environmental impact — not just profit.

Within six months of launching, Secret Skin won the Women in Tech 2021 Global Pitch competition hosted by Sharjah Research Technology & Innovation Park.

Not just skin deep

The e-commerce startup recorded a 66 percent month-on-month growth in customer base, with an average basket size of 2.2 items per order. A surprising 40 percent of customers were repeat users, with no cancelations or returns in six months of operation.

The plastic recycling program incentivized customers for pro-environment behavior, resulting in 60 percent user conversion at the first interaction (within two days).

“The market for clean or conscious beauty is not saturated, but nascent here in the Middle East, while it is past its prime in other markets like the US and UK where the movement started much earlier,” explained Oberoi.

“We are the fastest growing platform for clean brands with five new brands and categories added every month to address consumer needs. As an agile startup we are able to take quick decisions to pivot when the value proposition needs to be enhanced,” she explained.

Typically, the act of purchasing a clean beauty product was labor-intensive, cost-prohibitive and time-consuming.

Routinely, a customer had to wait three weeks to receive a product ordered from outside the UAE, paying between 55-80 percent overage in shipping and customs. There was no local customer care and the experience was severely impacted.

“I had to engage with brand founders over Instagram and LinkedIn, setting up zoom calls during the pandemic to convince them to be part of our mission, when I didn’t even have a site to show them,” admitted Oberoi.

“We launched with same-day delivery, locally fulfilled with legally registered brands from around the world that were competitively priced to build customer trust,” she added.

Secret Skin has now been operational for 17 months since its launch in October 2020. The startup has seen early wins in terms of customer acquisition and penetration for the brands brought to market.

The company’s repeat purchase rate is a healthy 48 percent on average, growing 28 percent quarter on quarter in terms of sales. Customers are spending an average of $126 on orders, which is on par with the most popular, well-established e-commerce platforms for beauty in the region, according to Oberoi.

“We see this as a sign that the customer behavior is changing toward a demand for more sustainable brands with organic or natural ingredients,” said Anisha.

Oberoi now started looking beyond the UAE’s borders to sell her products and eventually she did that.

Widening influence

In 2021, Secret Skin started shipping to Oman and Kuwait, and this year will start shipping to Saudi Arabia, including the expansion of physical distribution for their exclusive brands.

“South East Asia is on the roadmap for 2023, as well as a private label that we are currently working on,” said Oberoi.

“I’m most excited about our AI-enabled app and other tech interfaces that will enhance our value proposition to the customer. Capturing, analyzing and predicting user preferences through AI with qualified experts addressing efficacy, performance, and personalized recommendations is the future, and we are getting ready for it,” she said.

Her dedication to sustainability is resonating with conscious customers in the Middle East. The beauty industry generates up to 120 billion units of plastics globally per year, contributing to the loss of 18 million acres of forest annually — which is only one of the problems it faces (some others being carbon production, water waste and energy consumption).

“We need to increase visibility and diversity in the beauty community and address critical issues that may affect climate change, water scarcity, species extinction and deforestation if we have any hope of protecting our natural resources for future generations,” said Oberoi.

“On Secret Skin, with one single click, the customer can support small sustainable businesses, provide microeconomies to
indigenous tribes that wild-harvest the ingredients found in their products, and reduce their carbon footprint.”

In beauty and personal care, sustainability means recyclable packaging, decreased use of single-use plastics, consciously curated ingredients, safe-to-use components, and small-footprint production from start to finish. For example, companies are redesigning products to include less water in their composition and reducing synthetic ingredients to address specific issues, but these are small measures.

“We need to have scalable solutions that can be applied to larger global models,” said Oberoi. “We are now standing at the precipice between catastrophe and consciousness whilst we combat the pandemic, and are responsible for the way we conserve and protect the environment that we live in.”


Alvarez & Marsal opens regional headquarters in Riyadh 

Updated 57 min 54 sec ago
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Alvarez & Marsal opens regional headquarters in Riyadh 

RIYADH: Underscoring international confidence in the Saudi economy, global consulting firm Alvarez & Marsal has become yet another company to have opened its regional headquarters in Riyadh.

In a press statement, the US firm stated that the inauguration of the new regional headquarters underscores its commitment to contributing to the country’s transformation agenda. 

“As the company continues to deepen its roots in the country, with expertise across various sectors — from banking and tax to healthcare and disputes and investigations — this strategic move aims to leverage local insights in the Kingdom to drive sustainable growth and innovation.” the company said. 

Additionally, A&M announced that it has included 13 skilled Saudi graduates in the inaugural batch of its Bidayah Graduate Program. 

The company stated that these candidates were selected from a competitive pool of applicants, describing the chosen individuals as representing the bright future of the Kingdom and reflecting the potential that A&M sees in local talent. 

James Dervin, managing director of A&M in the Middle East and co-head in the region, stated that the program is designed to develop the next generation of execution-focused leaders in management consulting. It is guided by the A&M principles of leadership, action, and results. 

“Over the course of 12 months, participants will undergo rigorous training, engage in live project work, and receive mentorship from seasoned industry experts,” he said. 

Dervin added: “Coupled with the incorporation of our regional headquarters in Saudi Arabia, the program underscores A&M’s commitment to investing in the professional development of Saudi nationals and aligning with the Kingdom’s ambitious Vision 2030,” 

He further noted that the new graduates will have a significant, positive impact on his firm and the clients it serves. 

Commenting on the close alignment of A&M’s global brand with the local market dynamic in Saudi Arabia, Bryan Marsal, A&M’s CEO and co-founder, said: “The all-encompassing nature of the Saudi Arabian transformation is driving significant demand for A&M’s distinctive ‘get-stuff-done’ brand of services — for our ability to fix problems, our ‘skin in the game’, and our freedom from audit conflicts.” 

With over 9,000-strong workforce across six continents, A&M generates tangible results for corporations, boards, private equity firms, law firms, and government agencies grappling with intricate challenges, according to its website. 

More than 180 major global companies and organizations have already established regional headquarters in the Saudi capital. These include Apple, Microsoft and Alibaba, as well as the IMF, IBM, and Google.  

Other notable entities on the list include German consultancy firm TUV Rheinland, PwC Middle East, Aramex and Amazon. 


UAE banks’ aggregate capital, reserves exceed $136bn

Updated 02 May 2024
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UAE banks’ aggregate capital, reserves exceed $136bn

RIYADH: UAE-based banks’ aggregate capital and reserves reached 501.5 billion dirhams ($136 billion) at the end of February, up 14.4 percent year-on-year, according to new data. 

The latest statistics from the Central Bank of the UAE showed that on a monthly basis, the total capital and reserves grew 0.95 percent, reflecting an increase of approximately 4.7 billion dirhams, according to the Emirates News Agency, also known as WAM. 

This rise in figures falls in line with the central bank’s goal of enhancing monetary and financial stability in the country. 

Moreover, the data indicated that national banks accounted for around 86.5 percent of the aggregate capital and reserves of banks operating in the UAE. At the end of February, they recorded a total of 433.7 billion dirhams, an annual rise of 14.6 percent.

On the other hand, the share of foreign banks settled at 13.5 percent, hitting 67.8 billion dirhams at the end of the same month, reflecting a 13.2 percent surge compared to the same period a year earlier.  

Furthermore, at the end of February, the total capital and reserves of banks operating in Dubai alone stood at 246.4 billion dirhams, logging a year-on-year growth of 15.1 percent. 

Additionally, banks operating in Abu Dhabi recorded around 217 billion dirhams, up 13 percent from the corresponding period in 2023.  

Meanwhile, the cumulative capital and reserves of banks operating in other emirates combined reached an estimated 38.1 billion, reflecting a 15.5 percent climb in comparison to the same period a year prior. 

In March, a top executive at Roland Berger said that UAE bank branches were witnessing the highest revenues in the region, amounting to $18.6 million per branch.

This was driven by the nation’s digital transformation, which enabled financial institutions in the Gulf Cooperation Council to reduce the number of banking branches by 328 within three years, Saumitra Sehgal, the global consulting firm’s head of financial services in the Middle East, told WAM, at the time.  

Sehgal also pointed out at the time that the number of bank branches across GCC nations decreased from 4,067 at the end of 2019 to 3,739 by December 2022.   

He further noted that banks in the UAE saw the highest number of outlets merge and reduce with the support of digital transformation between 2019 and 2022.


Saudi financial robo-advisory firm Abyan Capital secures $18m in funding  

Updated 21 min 13 sec ago
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Saudi financial robo-advisory firm Abyan Capital secures $18m in funding  

RIYADH: Financial robo-advisory firm Abyan Capital has secured $18 million in funding in further evidence of the growing confidence in the Kingdom’s artificial intelligence sector.

Led by STV, the funding round also saw participation from Aramco’s Wa’ed Ventures and RZM Investment. 

Robo-advisors are digital platforms that utilize AI and machine learning algorithms to automate and optimize investment processes.  

Founded in 2022 by Abdullah Al-Jeraiwi, Omar Al-Mania and Saleh Al-Aqeel, Abyan Capital is a financial services company that provides an automated solution and portfolio management for long-term investments.  

“Abyan Capital stands out by unlocking the SR300 billion ($80 billion) investment management and wealth advisory sector for investors from all backgrounds in Saudi Arabia, through its mobile-first, robo-advisory model,” Yazeed Al-Turki, principal at STV, said in a statement.  

In a short period of time, he said Abyan has enabled a large base of first-time investors to access multiple wealth management solutions, underscoring the team’s commitment to innovation and inclusivity.  

“We are delighted to partner with Abdullah, Saleh and the team on their journey to redefine the wealth management ecosystem in the Kingdom,” Al-Turki added.  

The company aims to utilize its newly secured funds to further enhance its platform, expand its suite of financial products, and accelerate its market penetration across the investment solution value chain.

“Today, we are proud that in a very short amount of time, Abyan has exceeded deposits of over SR1.4 billion and more than 100,000 portfolios invested. And we will be launching new diversified products soon with a goal to make Abyan the digital retail investment house,” said Al-Jeraiwi, the CEO. 


Closing Bell: TASI ends the week in green at 12,352

Updated 02 May 2024
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Closing Bell: TASI ends the week in green at 12,352

RIYADH: Saudi Arabia’s Tadawul All Share Index ended the week by gaining 6.68 points, or 0.05 percent, to close at 12,352.33 on Thursday.

The total trading turnover of the benchmark index was SR6.55 billion ($1.74 billion) as 120 stocks advanced, while 103 retreated.   

The parallel market, Nomu, also gained 95.60 points, or 0.36 percent, to close the trading session at 26,457.81. This comes as 29 stocks advanced, while as many as 27 retreated.

On the other hand, the MSCI Tadawul Index slipped by 2.37 points, or 0.15 percent, to close at 1,547.20.

The best-performing stock on the benchmark index was Al-Baha Investment and Development Co., as its share price surged by 7.69 percent.

Other top performers included Raydan Food Co. and the Company for Cooperative Insurance, whose share prices soared by 7.29 percent and 6.63 percent, to stand at SR30.90 and SR160.80 respectively.

Electrical Industries Co. and the Mediterranean and Gulf Insurance and Reinsurance Co. also fared well during the last trading session of the week.

The worst performer was Saudi Chemical Co., whose share price dropped by 5.36 percent to SR7.77.

Power and Water Utility Co. for Jubail and Yanbu as well as the National Company for Glass Industries, underperformed as their share prices dropped by 5.22 percent and 4.82 percent to stand at SR63.50 and SR42.45, respectively.

On the announcements, Bank AlJazira announced its interim financial results for the period ending March 31 with net profit amounting to SR300.4 million compared to SR279.3 million in the previous quarter.

In an official statement on Tadawul, the bank attributed the increase in the net income to a decrease in total operating expenses by 6 percent. 

“The decrease in total operating expenses is mainly due a decrease in net impairment charge for financing and other financial assets, other general and administrative expenses, salaries and employee-related expenses and other operating expenses against an increase in depreciation and amortization expenses,” the statement said.

Conversely, there has been a slight decrease of 0.2 percent in total operating income, primarily attributed to a reduction in net financing and investment gains. Additionally, the rise in net income was partially tempered by increased zakat charges over the period.


GCC central banks hold interest rates steady for 6th time following Fed’s move 

Updated 02 May 2024
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GCC central banks hold interest rates steady for 6th time following Fed’s move 

RIYADH: Gulf Cooperation Council central banks have held interest rates steady for the sixth time as the US Federal Reserve keeps its benchmark level between 5.25 percent and 5.50 percent.    

As most currencies in the region are pegged to the US dollar, monetary policy follows the decisions taken in Washington, with policymakers opting to lock the rate at the level it has been since July.  

The freeze comes as the rate-setting panel cites “a lack of further progress toward the committee’s 2 percent inflation objective.”   

Vijay Valecha, chief investment officer at Century Financial, told Arab News: “This decision marks the sixth consecutive time that the central bank has chosen to keep rates unchanged. Market expectations have adjusted, now forecasting only one rate cut by year-end compared to the six anticipated at the beginning of 2024.”  

He added: “The monetary policies of most central banks in the GCC countries, including the UAE, Saudi Arabia, Bahrain, Oman, and Qatar, typically mirror those of the Fed due to their currencies being pegged to the US dollar. Kuwait is the exception in the bloc, as its dinar is linked to a basket of currencies.”  

Valecha continued by stating that as a result, interest rates in GCC markets are also anticipated to remain stable in the near future, which bodes well for the profitability of GCC banks. 

This decision implies that the Saudi Central Bank, also known as SAMA, will maintain its repo rates at the current level of 6 percent.    

The UAE central bank, along with Kuwait, Qatar, Oman, and Bahrain, also mirrored the Fed’s move. 

Repo rates, which represent a form of short-term borrowing primarily involving government securities, underscore the close economic ties and financial dynamics between the GCC countries and the global economic landscape, particularly the US.          

The US central bank also stated that it “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”  

This indicates that rate cuts are not on the cards anytime soon, until inflation cools down and moves sustainably toward the 2 percent target set by the US Fed.