MENA region’s 50 most-funded startups attracted $3.2 billion since their inception

Tamara co-founders Turki Bin Zarah, Abdulmajeed Alsukhan, and Abdulmohsen Albabtain. The startup has seen a steady pace of growth. (Supplied)
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Updated 18 December 2022

MENA region’s 50 most-funded startups attracted $3.2 billion since their inception

CAIRO:  The Middle East and North Africa’s 50 most-funded startups attracted a total of $3.2 billion in fundraising since their inception, with 18 companies from the UAE, 12 from Saudi Arabia and 11 from Egypt, according to Forbes.

UAE-based startups made most of the list, raising $964 million in total funding, followed by the Kingdom with $946.7 million and Egypt with $508.5 million.

Saudi-based startups made five of the top 10 most-funded startups, with financial technology firm Tabby in second, payment app Tamara in third, digital freight network TruKKer in fourth, e-commerce company Sary in seventh and grocery platform Nana in ninth.

Startups that qualified for the list had to be no more than seven years old, excluding companies like Saudi Arabia’s fintech Foodics, which raised a total of $198 million, and the UAE’s cloud kitchen Kitopi, which raised $804 million in total funding.

Forbes’s list indicated that fintech companies were the most funded, with 21 startups attracting $1.3 billion in total funding, followed by e-commerce, with 10 startups raising $576.7 million and four mobility startups raising $299.6 million.

Letswork has it all worked out

The UAE-based platform for shared spaces Letswork raised $2.1 million in a seed funding round to expand its operations to Saudi Arabia.

Established in 2019 by Omar Almheiri and Hamza Khan, the company provides a marketplace for users to directly rent out co-working spaces, including meeting rooms, private offices and creative studios.

It supports companies that operate in a hybrid or remote work model with its flagship offering, the Letswork Pass, a subscription service that gives access to a distributed network of workspaces.

As part of its expansion plans for the Kingdom, the company has received a strategic investment from one of the largest co-working space operators in the country, The Space, in addition to an investment from Saudi activist and media presenter Ahmed Al Shugairi.

“Saudi Arabia is the largest market in the Middle East, and Riyadh is one of the first markets where Dubai-based companies expand into; hence many of our corporate clients were requesting to use Letswork there,” Khan, CEO of Letswork, said in a statement.

The company currently operates in Dubai and Riyadh and has a presence in Portugal, Spain and Bahrain.

The funding round saw participation from 500 Global, DTEC Ventures and other angel investors.

Art of the matter

The UAE-based venture capital firm Morningstar Ventures has invested over $5 million in its first interactive and immersive digital art gallery called 37xDubai.

Located in Dubai’s Burj Daman Tower, the gallery will be at the heart of Dubai’s business and lifestyle center and will open its doors in the first quarter of next year.

In the UAE, 23 percent of the population owns at least one non-fungible token, making it one of the region’s best markets for digital art.

The art gallery aims to bridge the gap between art and technology by introducing a new concept of Web3-enabled education, digital and traditional artistry, entertainment and communication.

“The design and architecture of our gallery are highly sophisticated, filled with state-of-the-art equipment, interior, sound, and lighting infrastructure. We hand-picked and meticulously selected every element of the space to ensure that the 37xDubai gallery and its exhibitions could be presented in an unforgettable fashion to every one of our visitors,” Clemence Cazeau, CEO 37xDubai, said in a statement.

FASTFACTS

• UAE-based startups made most of the list, raising $964 million in total funding, followed by the Kingdom with $946.7 million and Egypt with $508.5 million.

• Saudi-based startups made five of the top 10 most-funded startups, with financial technology firm Tabby in second, payment app Tamara in third, digital freight network TruKKer in fourth, e-commerce company Sary in seventh and grocery platform Nana in ninth.

Qatar invests in cybersecurity

Qatar’s sovereign wealth fund Qatar Investment Authority led a $196.5 million series G funding round in Boston-based cybersecurity startup Snyk Ltd.

Founded in 2015, the company provides a solution to find and fix vulnerabilities and license violations in open-source dependencies and container images.

QIA manages assets valued at around $450 billion, and its latest investment in Synk has valued the startup at $7 billion, a decrease from its previous round that put it at $8.5 billion. The company will use its investment to drive product innovation and expand its team via strategic acquisitions to maintain its position as a leading developer security platform.

“We’re confident that Snyk’s proven approach positions the company for a successful future and is aligned with QIA’s track record of supporting innovative companies shaping the future of the global economy,” Mansoor Ebrahim Al-Mahmoud, CEO of QIA, said in a statement.

The funding round saw new investors like Evolution Equity Partners, G Squared, Irving Investors, Sands Capital and Tiger Global.

Making the right Moove

Nigeria-based mobility fintech startup Moove is raising $30 million through its first sukuk issuance to expand its operations to the UAE.

Founded in 2020, the company offers vehicle financing to mobility entrepreneurs worldwide.

The company plans to fuel its expansion into the MENA region by building a fleet of electric vehicles for ride-hailing.

“Our first sukuk issuance showcases our growth and sustainability as a global company. Equally important is that this furthers our mission to build the biggest EV ride-hailing fleet in the region, to drive forward mobility electrification and enable cities to reach their net-zero targets,” Ladi Delano, co-founder and co-CEO of Moove, said in a statement.

The company will use its fund to scale to 2,000 electric vehicles in the UAE over the next 12 months to create sustainable economic opportunities.

As part of its expansion to the UAE, it will also roll out its electric vehicle charging app Moove Charge specifically for ride-hailing drivers.


Microsoft threatens to restrict data from rival AI search tools — Bloomberg News

Updated 27 March 2023

Microsoft threatens to restrict data from rival AI search tools — Bloomberg News

  • The company has told at least two customers that using its Bing search index to feed their AI chat tools violates the terms of their contract

Microsoft Corp. has threatened to cut off access to its Internet-search data, which it licenses to rival search engines, if they do not stop using it as the basis for their own artificial intelligence chat products, Bloomberg News reported on Friday.
The company has told at least two customers that using its Bing search index — a map of the Internet that can be scanned in real time — to feed their AI chat tools violates the terms of their contract, the news agency said, citing people familiar with the dispute.
Redmond, Washington-based Microsoft may also terminate licenses providing access to its search index, Bloomberg added.
“We’ve been in touch with partners who are out of compliance as we continue to consistently enforce our terms across the board,” a Microsoft spokesperson told Reuters, adding that the company will continue to work with them directly and give information needed to find a path forward.
The maker of the Windows operating system had said in February it was revamping its Bing search engine and Edge Web browser with artificial intelligence, signaling its ambition to retake the lead in consumer technology markets where it has fallen behind.
The upgraded Bing search engine was rolled out to users late last month. 

 

 


As the Arab world watches on, is the clock ticking for TikTok?

Updated 25 March 2023

As the Arab world watches on, is the clock ticking for TikTok?

  • The impact and implications of TikTok’s growing influence in the MENA region are a global concern with more questions than answers after a congressional hearing with app CEO
  • TikTok CEO’s mounting woes as security concerns place him in the hotseat at a US congressional hearing with the world looking on for answers

DUBAI/LONDON: In yet another congressional hearing-turned-nail-biting drama, TikTok’s CEO was the latest global tech chief to take center stage before the US Committee on Energy and Commerce.

Shou Zi Chew, chief executive of perhaps the world’s most popular app, was in the same hot seat that previously hosted the likes of Meta’s Mark Zuckerberg and Twitter’s Jack Dorsey.

People from around the globe tuned in to see how Chew would justify and ensure US user data was safe and protected.

Rep. Kat Cammack (R-FL) question TikTok CEO Shou Zi Chew as he testifies before the US House Energy and Commerce Committee on March 23, 2023. (Getty Images/AFP)

TikTok’s Chinese roots are not just an issue for US citizens; “it impacts the world,” Giles Crouch, a digital anthropologist, told Arab News.

“While the Chinese government doesn’t own a majority share in TikTok, they do own what’s called a ‘golden share,’ so they have a seat at the board,” he added.

India has already banned the app entirely, while Canada, Belgium, Denmark, New Zealand, Taiwan, the UK and the US have banned TikTok on government devices. However, the app still operates fully across the Middle East.

In Saudi Arabia alone, a country with a majority youth population, the app has 26.39 million users — the most in the region. Iraq and Egypt both have more than 23 million users, while the UAE has almost 6 million.

For five hours, bipartisan lawmakers grilled Chew over a range of topics, namely the claim that the Chinese Communist Party has access to TikTok user data, as well as fears over the platform’s algorithms and content that could have a potentially harmful impact on young people.

The questioning ended with a frustrated committee unsatisfied with Chew’s responses. The CEO, when given the chance to answer questions, often came across as evasive, resorting to “I’ll get back to you with specifics.”

Such hesitation and evasiveness has become a cause for concern among users and governments around the globe, with France taking the decision to ban the app on administrative phones just one day after the hearing.

“Our CEO, Shou Chew, came prepared to answer questions from Congress, but, unfortunately, the day was dominated by political grandstanding that failed to acknowledge the real solutions already underway through Project Texas or productively address industry-wide issues of youth safety,” a TikTok MENA spokesperson told Arab News, relaying the same response issued by the global company.

Last year, TikTok announced the $1.5 billion Project Texas initiative to protect the data of its US users. The plan, which is estimated to cost the company $700 million to $1 billion per year, hopes to address government concerns about user data privacy risks and content recommendations.


TikTok CEO Shou Zi Chew testifies before the House Energy and Commerce Committee on Capitol Hill on March 23, 2023. (Getty Images/AFP)

During the hearing, the committee questioned Chew about Project Texas, with some members asking how the $1.5 billion would be allocated. Other members remained skeptical of the project, as well as TikTok’s ability to truly safeguard US data.

Many, if not all, committee members seemed to believe that TikTok is essentially an arm of the Chinese government. Although Chew said that he has not seen any “evidence that the Chinese government has access to that data; they have never asked us, we have not provided it,” several members openly voiced their disbelief.

“I find that actually preposterous,” said Congresswoman Anna Eshoo.

In a recent column, however, Al Arabiya News Channel’s Mamdouh Al-Muhaini claimed that “both arguments (of spying and propaganda spreading) are absurd and lack conclusive evidence. Rather, they are being used merely for political blackmail — to force China to make concessions amid international conflict between Beijing and Washington.

TikTok CEO Shou Zi Chew testifies on the platform's consumer privacy and data security practices and impact on children during a hearing of the House Energy and Commerce Committee on March 23, 2023. (AP)

“The war on TikTok comes in the context of the race between America — and the West — and China. In a war for influence, brains and hearts, all weapons, accusations and pretexts can be used,” he said, adding that the app was “being used as a device in the (US-China) cold war.”

An FBI and Department of Justice investigation into TikTok’s ability to spy on US citizens also undermined Chew’s case. Last year, parent company ByteDance confirmed that its employees used TikTok to track and obtain the IP addresses of multiple US journalists covering the app.

Yet, when Congressman Neal Dunn asked Chew if ByteDance is spying on US citizens, the CEO shakily replied: “I don’t think that spying is the right way to describe it.”

The Chinese minister of foreign affairs held a press briefing the following day, with a spokesperson saying: “The Chinese government has never asked and will never ask any company or individual to collect or provide data, information or intelligence located abroad against local laws.

AFP illustration image

“The US government has provided no evidence or proof that TikTok threatens US national security, yet it has repeatedly suppressed and attacked the company based on the presumption of guilt.

Foreign Ministry Spokesperson Mao Ning added that the US should “respect the principles of a market economy and fair competition, stop suppressing foreign companies and provide an open, fair, just and non-discriminatory environment for foreign companies operating in the US.”

While a plethora of countries in the West chimed in on the debate, governments across the Middle East have largely stayed silent.

In a previous interview with Arab News, Saudi cybersecurity expert Abdullah Al-Jaber said that concerns over TikTok’s data security stemmed from the app’s country of origin as well as Chinese rules and regulations.

“If you use Facebook or Twitter, it’s not much different than using TikTok,” he said.

Apart from the focus on spying and data collection, members of congress also grilled the TikTok CEO over the platform’s algorithms for content suggestions and discovery, particularly among vulnerable audiences. Members asked why certain content is allowed to be published on the platform — unlike on China’s sister app Douyin, which is heavily censored.

“TikTok can be very good for kids but the way it’s used in China is very different from the way it’s used in the rest of the world — what kids are seeing in Riyadh or Dubai is very different from what they’re going to be seeing in Beijing,” said Crouch, the digital anthropologist.

Douyin features “very positive and uplifting content” that encourages “doing good for the community, helping one another and being very sociable,” he added.

But in other countries, “they (TikTok) literally use algorithms which manipulate young kids’ minds so they get served with content that is mindless, often negative, and can be disturbing to those minds,” Crouch said.

ikTok CEO Shou Zi Chew departs after testifying during a hearing of the House Energy and Commerce Committee on  March 23, 2023, in Washington. (AP Photo)

Chew attributed the contrast in content on TikTok and Douyin to the different laws in each country. That argument is true to some extent, because the Chinese government does have more control over content posted on domestic platforms.

“They put the controls in place in China to stop kids from being overly stimulated,” said Crouch. But “they just don’t care for the rest of the world because they’re out to make money.”

In some aspects, including dangerous content, TikTok is very much like any other social media company, many of which originated in Silicon Valley — a fact acknowledged by some members of the committee.

Senior executives from Meta, Twitter and Google have all appeared before US Congress in an attempt to allay concerns over data, privacy and moderation.

However, as Congressman Dan Crenshaw said in the hearing, all social media companies collect personal data and could use it to “influence narratives and trends, create misinformation campaigns, encourage self-destructive behavior, purposefully allow drug cartels to communicate freely and organize human and drug trafficking.”

But the difference is that “it’s only TikTok that is controlled by the Chinese Communist Party.”

 


Gritty school drama sparks controversy in Tunisia

Updated 24 March 2023

Gritty school drama sparks controversy in Tunisia

  • The controversy came after private channel El Hiwar Ettounsi on Thursday evening broadcast the first episode of the soap opera "Fallujah"
  • Education Minister Mohamed Ali Boughdiri told local radio he had alerted Prime Minister Nalja Bouden

TUNIS: Tunisia’s education minister has lashed out at a Ramadan TV series accused of tarnishing the reputation of schools, while two lawyers launched a bid to take it off the air.
The controversy came after private channel El Hiwar Ettounsi on Thursday evening broadcast the first episode of the soap opera “Fallujah.”
Named after a city that became a symbol of Arab resistance for battling American occupation forces after the 2003 invasion of Iraq, the series is a drama about a group of high school students, their behavior toward their teachers and their often difficult home lives.
In one scene, a new teacher is hit on by students in the classroom then finds her car tagged with “Welcome to Fallujah.”
In another, a drug dealer in the schoolyard hands out ecstasy tablets to students who then sell them on to classmates.
Education Minister Mohamed Ali Boughdiri told local radio he had alerted Prime Minister Nalja Bouden.
“We will take all necessary measures to take this farce off the air. It has offended families, undermines the entire education system and considerably harms the image of Tunisian schools,” he said.
Two lawyers also filed a request to a Tunis court to stop the broadcasts immediately.
“This series deliberately undermines (public) morals and the educational system by disseminating obscenities,” lawyers Saber Ben Ammar and Hssan Ezzedine Diab wrote.
Teacher’s union the Federation of Secondary Education said the series “seriously harms teachers” and urged the ministry of education to investigate how a private TV channel was able to film in it a public school.
Union chief Lassaad Yaacoubi said the ministry had approved the filming in exchange for giving the school some of the furniture used during the production.


France to ban TikTok on work phones of civil servants -minister

Updated 24 March 2023

France to ban TikTok on work phones of civil servants -minister

  • The French government will ban entertainment app to protect civil servants online

PARIS: France will ban the use of Chinese-owned video-sharing app TikTok on the work phones of civil servants, Civil Service Minister Stanislas Guerini said on his Twitter account.
"In order to guarantee the cybersecurity of our administrations and civil servants, the government has decided to ban recreational applications such as TikTok on the professional phones of civil servants," he said in a statement.


British parliament blocks TikTok on all parliamentary devices

Updated 23 March 2023

British parliament blocks TikTok on all parliamentary devices

  • Britain last week banned the Chinese-owned video app on government phones
  • The United States, Canada, Belgium and the European Commission have already banned the app from official devices

LONDON: Britain’s parliament will block TikTok on all devices on its network following a similar ban on government devices, becoming the latest Western institution to bar the Chinese-owned video app over security concerns.
“Following the government’s decision to ban TikTok from government devices, the commissions of both the House of Commons and Lords have decided that TikTok will be blocked from all parliamentary devices and the wider parliamentary network,” a parliament spokesperson said.
Britain last week banned the Chinese-owned video app on government phones.
“Cyber security is a top priority for parliament,” the spokesperson added.
The United States, Canada, Belgium and the European Commission have already banned the app from official devices.
TikTok has come under increasing scrutiny due to fears that user data from the app owned by Beijing-based company ByteDance could end up in the hands of the Chinese government, undermining Western security interests.
The British parliament’s ban was announced as TikTok’s chief executive
faced questions
from US lawmakers who are convinced the app should be barred for being a potential national security threat to the United States.