Startup of the Week: UAE platform forays into Saudi Arabia, to ramp up staff strength

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Updated 24 July 2022
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Startup of the Week: UAE platform forays into Saudi Arabia, to ramp up staff strength

  • Enhance Fitness has around 250 trainers and will be able to reach 700, says CEO

CAIRO: UAE-based fitness platform Enhance Fitness is aiming to triple its current trainer base as it announces its launch in Saudi Arabia.

In an exclusive interview with Arab News, Enhance Fitness CEO and founder Tarek Mounir said that the platform has around 250 trainers and will be able to reach 700 in the next 24 months.

“The biggest focus of our strategy is just going to be in the Kingdom at least for the next 24 months. So we’re literally just focused entirely on the Saudi business,” Mounir added.

The platform allows users to book a session with their preferred trainer, which could be in their residence area or at their community gym.

Mounir explained that the company hires trainers from gyms, hotels, or community areas by providing them with the right tools and software to manage their training sessions further.

“That’s why we consider that hotels and gyms are actually our clients, and not our competitors, because we come, and we take that part of the responsibility away from them,” he added.

Moreover, users can access a wide range of workout and fitness activities such as bodybuilding, mixed martial arts, yoga, and its client gyms and hotels without additional costs.

Mounir launched the platform in 2018 after experiencing a knee injury and was unable to connect with trainers due to a lack of qualification transparency.

Through its academy, Enhance Fitness provides trainers with professional training and qualifications so they are able to reach their audience better.

“We have a team of tutors who train the trainers. And these guys have developed an entire curriculum that’s been uploaded on our digital platform,”

“We have our internal platform for training, so the trainers can always continue to improve their knowledge, whether in the hard skills or the soft skills,” Mounir explained. He also added that the company would hire many Saudi national trainers as a part of its expansion strategy.

“Because we’re aiming to hire a big number of Saudi nationals, a big part of our mission is not necessarily to find personal trainers but fitness enthusiasts who we can train, accredit, and utilize for the business as well,” Mounir stated.

Changing the shape of fitness, COVID-19 has had a positive effect when it comes to Mounir’s business as he stated that health awareness became 10 times bigger during the pandemic.

“We started training everybody virtually, whether it’s Zoom or Google meet, the trainer would open their laptop or their screen or their phone or their tablet and start virtual training,” he added.

Mounir also said that the business exploded after COVID-19, seeing an annual growth rate of almost three times.

The company raised $3 million in 2021 in its series A funding round. It is aiming to raise an additional $15 million in its next round as well as expand even further into Gulf Cooperation Council countries, the UK and Singapore.


stc Bank set to launch later this year, says group CEO  

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stc Bank set to launch later this year, says group CEO  

RIYADH: Saudi telecom giant stc Group has obtained official approval for the soft launch of its new banking sector subsidiary, aiming to provide Shariah-compliant fintech solutions. 

The Saudi Central Bank has given the green light for the beta launch of stc Bank, with a full rollout to all customers anticipated later this year, revealed the company's CEO, Olayan Al-Wetaid, while announcing the financial results of the first quarter. 

The new entity will offer banking services and financial solutions compliant with Islamic Shariah, prioritizing high security and customer protection through advanced fintech. This aligns with the ambitious goals of the Kingdom’s Vision 2030 for a prosperous diversified economy. 

In its financial results announcement for the period ending March 31, the CEO explained that stc Group has strengthened its position in the telecommunications sector through a strategic partnership with the Public Investment Fund.   

Earlier in April, the two entities finalized agreements for PIF to acquire a 51 percent stake in the Telecommunications Towers Co., also known as Tawal, valuing the company at SR21.94 billion ($5.8 billion).  

This transaction is part of a broader merger with Golden Lattice Investment Co. to form a new entity that aims to lead the national telecommunications infrastructure, with stc Group retaining a 43.06 percent stake.  

These developments are part of stc’s DARE 2.0 strategy, which focuses on unconventional growth paths and leading digital transformation in the region, Al-Wetaid stated.   

The strategy has already yielded significant results, with stc’s network experiencing its highest volume of voice calls during the recent Ramadan, a 35 percent increase compared to the previous year, supported by modern digital voice technologies.  

Further embodying its growth strategy, stc Group has engaged in numerous strategic partnerships and agreements, notably at the LEAP 2024 conference with global tech giants such as Huawei, Ericsson, and Samsung.   

These collaborations are designed to enhance innovation and speed up digital transformation across the region.   

Additionally, the group’s subsidiary, Solutions, signed a memorandum of understanding with the French Devoteam Group in February to explore IT investment opportunities globally, following Solutions’ acquisition of a 40 percent stake in Devoteam Middle East.   

In its financial report, stc Group highlighted a notable growth in revenues for the first quarter of 2024, which increased by 7.76 percent compared to the previous quarter and by 5.07 percent compared to the same quarter last year, totaling SR19.1 billion.   

This revenue growth was primarily driven by a 1.2 percent increase in stc Saudi Arabia’s revenues, supported by a 6.7 percent rise in commercial unit revenues and a 5.7 percent increase in carriers and wholesale unit revenues, despite a decline in business unit revenues.   

Additionally, revenues from stc’s subsidiaries saw a significant rise of 13 percent.  

The company also reported growth in gross profit, which rose by 5.13 percent compared to the previous quarter and by 1.65 percent compared to the same quarter last year, reaching SR9.3 billion.   

Earnings before interest, taxes, zakat, depreciation, and amortization similarly showed a robust increase, rising by 16.3 percent compared to the previous quarter and by 2.07 percent compared to the same period last year, reaching SR6.4 billion.   

Notably, net profit for the quarter surged by 44.50 percent compared to the previous quarter and increased by 5.69 percent compared to the same quarter last year, totaling SR3.2 billion.   


Saudi Arabia poised to elevate US AI infrastructure, Alat CEO says

Updated 14 min 59 sec ago
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Saudi Arabia poised to elevate US AI infrastructure, Alat CEO says

RIYADH: Saudi Arabia has the potential to serve as a crucial contributor and advocate for the development of US artificial intelligence infrastructure, according to a top official.

Speaking at the Milken Institute Global Conference in California, Alat CEO Amit Midha discussed the company’s future endeavors and collaborations with global partners in the technology sector in an interview with Bloomberg.

Launched by Saudi Crown Prince Mohammed bin Salman, Alat plays a significant role in manufacturing semiconductors and various smart technologies, including advanced industrials and next-gen infrastructure.

Midha told the event: “We can be meaningful builders and supporters for US captaincy of building AI infrastructure.”

Saudi Arabia’s ambitions in advanced technology extend to establishing data centers, nurturing AI enterprises, and bolstering semiconductor manufacturing, according to Bloomberg..

In a parallel development, the US has urged Abu Dhabi-based AI firm G42 to divest from Chinese technology. This move, in exchange for continued access to US systems powering AI applications, paved the way for a significant $1.5 billion investment from Microsoft Corp. in G42.

Speaking on partnerships with the US and China, Alat’s CEO said: “So far, the requests have been to keep manufacturing and supply chains completely separate, but if the partnerships with China would become a problem for the US, we will divest.”

According to Bloomberg reports, US officials have been engaging with their Saudi counterparts, emphasizing the necessity for Saudi Arabia to opt between Chinese and American technology as it seeks to advance its semiconductor industry. These discussions are part of broader dialogues concerning national security.

Midha highlighted the importance of forging secure and reliable partnerships with the US.

“The US is the number one partner for us and the number one market for AI, chips and semiconductor industry,” he emphasized.

Meanwhile, Alat is poised to unveil partnerships with two US tech companies by the conclusion of June, with plans for co-investment alongside a US firm. 

According to Bloomberg, Midha has refrained from disclosing the names of the companies involved or specifying whether the collaborations are focused on AI, chips, or a combination of both.


Energy deals with Brazil, Japan, and Jordan signed off by Saudi Cabinet

Updated 32 min 38 sec ago
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Energy deals with Brazil, Japan, and Jordan signed off by Saudi Cabinet

RIYADH: Saudi Arabia has approved economic and energy deals with several countries including Jordan, Brazil, and Japan, during its latest Cabinet meeting.

An agreement between the central banks of the Kingdom and Qatar focusing on cooperation in financing operations was also among the deals endorsed.

The meeting also approved various agreements between the Saudi government and other countries, including Oman, Georgia, and Morocco. 

The Council of Ministers discussed updates on the Kingdom’s cooperation with various countries worldwide, focusing on efforts to enhance bilateral and collective work across multiple fields. 

Among them were agreements reached between the Kingdom and both Uzbekistan and Azerbaijan in the field of energy.

These accords reflect a commitment to the sustainability and stability of petroleum markets. They also aim to advance cooperation in clean energy sectors, contributing to a globally organized energy transition. Additionally, they seek to build a more sustainable future for the three countries and the world. 

In his statement to the Saudi Press Agency following the session, Minister of Media Salman Al-Dosari highlighted the Council’s appreciation for the results of the recent Arab conferences in Riyadh focused on environmental matters.  

He added that the Cabinet stressed the Kingdom’s keenness to partner with regional and global entities to bolster agriculture, food security, and water resources, aligning with the country’s sustainable development goals. 

During the session, the Council of Ministers cleared various agreements including an energy cooperation deal between Saudi Arabia and Jordan, as well as a memorandum of understanding between the Saudi Ministry of Energy and Brazil’s Ministry of Mines and Energy.

The Cabinet also endorsed two cooperation pacts between the Saudi Ministry of Industry and Mineral Resources and both Morocco’s Ministry of Energy Transition and Sustainable Development, and Japan’s Ministry of Economy, Trade and Industry. These pacts relate to the fields of mineral wealth, mining, and mineral resources. 

Moreover, it cleared the Kingdom’s accession to the Geneva Act of the Hague Agreement concerning the international registration of industrial designs. 

Additionally, the Cabinet approved the implementation of a decision made by the Gulf Cooperation Council states’ Financial and Economic Cooperation Committee regarding the final draft for exempting industrial inputs from fees. This decision was made during the committee’s 120th meeting, held in October 2023 in the Omani capital, Muscat. 


Saudi Coffee Co. receives license to build Kingdom’s first coffee production factory in Jazan 

Updated 08 May 2024
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Saudi Coffee Co. receives license to build Kingdom’s first coffee production factory in Jazan 

RIYADH: Saudi Coffee Co. has been given approval to begin operations in Jazan, marking the establishment of the first production facility for the product in the Kingdom.

This comes as Khalid bin Mohammed Al-Salem, president of the Royal Commission for Jubail and Yanbu, issued the license to the Public Investment Fund firm, the Saudi Press Agency reported. 

The factory, which will be built on an area of ​​30,000 sq. m, seeks to produce and export Saudi coffee, strengthen local and global supply chains in line with the goals of Vision 2030, and contribute to the sustainability of the sector.  

This move came as part of the city’s signing of various investment agreements and capital contracts.

Saudi Coffee Co. signed an investment deal with the Royal Commission for Jubail and Yanbu to construct the warehouse in November 2022. 

According to a statement released at the time, the new facility is expected to raise Saudi coffee output from the current 300 tonnes per year to 2,500 tonnes by 2032 while further developing a more sustainable and localized value chain.


Red Sea Global collaborates with Almosafer to elevate tourism sector in Saudi Arabia

Updated 08 May 2024
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Red Sea Global collaborates with Almosafer to elevate tourism sector in Saudi Arabia

RIYADH: Saudi Arabia’s tourism landscape is set for a boost after multi-project developer Red Sea Global signed an agreement with travel company Almosafer. 

According to a statement, the deal will see the firm showcasing and promoting the destination’s tourism developments and offerings.

“With Almosafer’s support, we will help travelers discover just how special this part of the world is, from the pristine coastline and breathtaking coral reefs to the stunning dunescapes and wadis,” said Group CEO of Red Sea Global John Pagano. 

He added: “Our growing portfolio is set to unlock the tourism potential of the Red Sea coast for all segments of travel with a diverse range of experiences and offerings.” 

Under the deal, both companies will collaborate on targeted marketing and promotion campaigns to raise awareness among travelers, highlighting the offerings in the Red Sea and AMAALA. 

Developing the tourism sector is crucial for Saudi Arabia, as the Kingdom is steadily pursuing its economic diversification journey by reducing its dependency on oil. 

Saudi Arabia’s National Tourism Strategy aims to attract 150 million visitors to the Kingdom by 2030 and create 1.6 million jobs in the sector. 

“The partnership with Red Sea Global reflects our shared vision for redefining luxury travel and shaping the future of luxury tourism in Saudi Arabia. We are excited to leverage our geographical reach and decades of experience to position them as the ultimate destinations that set new standards in bespoke tourism experiences,” said Muzzammil Ahussain, CEO of Almosafer. 

With 79 hotels in total, the Red Sea and AMAALA are projected to contribute SR33 billion ($8.79 billion) annually to the Kingdom’s economy upon completion in 2030. 

Meanwhile, Red Sea Global also signed another deal with Saudia, the national flag carrier of Saudi Arabia, to streamline the travel experience of employees working with the multi-project developer. 

The partnership will enable employees of Red Sea Global and its affiliates to access exclusive upfront discounts and special corporate rates while traveling with Saudia, the Saudi Press Agency reported. 

“We are excited to collaborate with Red Sea Global and offer them seamless travel solutions to connect with international partners and talent,” said Saudia chief commercial officer Arved Von Zur Muehlen. 

He added: “This partnership reflects Saudia’s unwavering commitment to supporting the Kingdom’s economic objectives and positioning it as a global tourism hub.”