Startup Wrap – UAE firms lead this week’s venture activity

Maintaining its position as a dominant force in the MENA region, fintech captured a significant 36 percent of all funding and accounted for 23 percent of the total deal count in the first three quarters of 2023. (Reuters)
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Updated 25 November 2023

Startup Wrap – UAE firms lead this week’s venture activity

  • Wamda Capital takes part in a $4.7 million seed funding round for Turkiye-based health tech startup Salu

CAIRO: A flurry of investment deals flourished throughout the Middle East region, with UAE-based venture capitals landing a handful of transactions across multiple sectors.

In a significant move underscoring the growing interest in health technology, Dubai- headquartered Wamda Capital has participated in a $4.7 million seed funding round for the Turkey-based health tech startup Salus.  

This round marks a milestone for the firm, gathering notable investors in its mission to revolutionize corporate mental health services.

Operating in over 45 countries including Saudi Arabia, HotDesk will aim to support XSPACE’s debut in Riyadh via a technical integration partnership. (Supplied)

Northzone led the investment round, with contributions from 500 Emerging Europe, Pitchdrive, and Is Bank’s CVC arm, Collective Spark.  

The round also saw participation from a line-up of angel investors, including Fırat Ileri of Hummingbird Ventures, Adam Anders from Anterra Capital, and Inanc Balci of Crestone VC and Lazada.  

Additional investors include Egem Eraslan of Midas, Can Yucaoglu of MAP Investment, Kivanc Semen of Dataguard, and Mehmet Yilmaz and Joshua Cornelius of Freeletics and Zavvy.

Founded in 2022 by Alperen Adikti and Dincer Karaduman, Salus offers an array of services, including therapy and coaching sessions, along with self-care content, tailored to meet the needs of the corporate environment.

Alperen Adikti, Salus cofounder and CEO

“Closing one of the largest seed rounds ever raised by a Turkish startup just 16 months post-founding, amidst a challenging macroeconomic climate, is not just a milestone – it’s a testament to the urgent need and belief in Salus’ mission. We are excited and ready to propel forward with the support of our exceptional investors and partners,” Adikti said.

The newly acquired capital is earmarked for three areas of expansion. Salus plans to broaden its clinical network significantly, allowing for more extensive and varied mental health support.  

Closing one of the largest seed rounds ever raised by a Turkish startup is a testament to the urgent need and belief in Salus’ mission. We are excited and ready to propel forward with the support of our exceptional investors and partners.

Alperen Adikti, Salus cofounder and CEO

A focus will also be placed on enhancing the user experience, as well as scaling its business-to-business operations, aiming to establish itself as a leader in corporate mental health solutions.

UAE’s Your Compass joins investors in Fork N Knife’s $800k seed round

UAE-based investment firm Your Compass has joined a cohort of Middle Eastern and global investors in Turkey-headquartered cloud kitchen operator Fork N Knife’s recent seed funding round, which successfully raised $800,000.

Established in 2022 by Nasr Aldin and Mohamed Haroun, Fork N Knife specializes in assisting restaurants in enhancing their delivery services while minimizing investment costs.

Founded in 2022 by Yassir Nasr-Aldin, Fork N Knife promotes a cooking-as-a-service model, which enables restaurants and food enthusiasts to launch and expand their own businesses with zero initial capital.  

This model not only reduces entry barriers for aspiring food entrepreneurs but also paves the way for creative culinary concepts to flourish without the typical financial constraints of starting a food business.

“Throughout my eight-year journey in cloud kitchens, witnessing the evolving stages of the industry, it became evident that the cloud kitchen business domain needed a unique model to solve the real challenges faced by restaurant owners. Instead of reducing fixed costs, as is common in cloud kitchens, we completely eliminated them,” Nasr-Aldin said.

The growth of the startups in our VBs is a testament to the collaborative efforts between our founders and venture building experts, says Awad Makkawi, Director of Venture Building at Modus

With the fresh infusion of capital, Fork N Knife has ambitious plans to broaden its geographical footprint. The startup is eyeing strategic entry into the African and European markets, aiming to capitalize on the opportunities in these regions for cloud kitchen services.  

This expansion is expected to significantly amplify Fork N Knife’s impact on the global food service landscape.

Modus Capital launches 8 startups with $2.8m investment

In a significant boost to the startup ecosystem, UAE-based Modus Capital has unveiled the launch of eight new startups, marking a substantial $2.8 million investment across these ventures.  

This initiative is part of Modus Capital’s ambitious venture builder program, which is set to foster innovation and entrepreneurship in the region.

The startups making their debut under this program include JamaliBox, MDBX, and Monet, as well as Oscar, Seva, Sindbad.

Stornest and Your Social Smile are the other two companies involved.

Each venture, with its unique business model and market approach, is poised to make a significant impact in their respective industries.

Modus Capital operates a comprehensive network of venture builders, underpinned by a $50 million Venture Builder Fund.  

“The growth of the startups in our VBs is a testament to the collaborative efforts between our founders and venture building experts. With the foundation set, I’m confident that their missions and products will resonate with customers and potential investors, paving the way for further success and funding,” Awad Makkawi, director of Venture Building at Modus, said.

This network spans across key regional hubs including Abu Dhabi, Riyadh, and Cairo, reflecting Modus Capital’s commitment to nurturing startups in diverse markets.

The venture-building approach of Modus Capital involves an intensive nine-month program designed to empower both established and emerging founders.  

This program goes beyond financial support, encompassing a spectrum of non-financial offerings such as mentorship, access to critical networking opportunities, and other valuable resources.

UAE’s proptech HotDesk partners with XSPACE

UAE’s flexible workspace solution HotDesk announced a partnership with Saudi Arabia’s XSPACE in an effort to boost the Kingdom’s market.

Operating in over 45 countries including Saudi Arabia, HotDesk will aim to support XSPACE’s debut in Riyadh via a technical integration partnership.  

The strategic cooperation will see XSPACE’s locations being built on top of HotDesk’s tech stack, including HotDeskOS for efficient coworking management, HotDesk marketplace for client reach, and integrations with its corporate offerings.

Founded in 2020 by Mohamed Khaled, Hotdesk creates an opportunity for businesses with underutilized workspaces to generate additional revenue by subletting their vacant office space as on-demand workspaces.

MENA fintech sector shows resilience amid a venture slowdown

In the face of a general venture capital slowdown in 2023, the Middle East and North Africa’s fintech sector has demonstrated remarkable resilience, according to MAGNiTT’s latest report.

The analysis shows the sector raised $484 million across 66 deals within the first nine months of the year.

Maintaining its position as a dominant force in the MENA region, fintech captured a significant 36 percent of all funding and accounted for 23 percent of the total deal count in the first three quarters of 2023.  

Despite prevailing economic headwinds, series A valuations in the sector have remained somewhat sustainable, witnessing a slight 2 percent decrease from the highs of 2022.  

However, seed-stage valuations have experienced a more pronounced year-on-year decline of 20 percent.

Additionally, the fintech sector in the MENA region saw a notable increase in merger and acquisition activities, with a 29 percent year-on-year rise in exits recorded by September 2023. The UAE has emerged as a key player, leading the region in these activities.

Egypt’s sports marketplace WayUp Sports raises seed round

Egypt-based sports marketplace WayUp Sports raised a seed funding round for an undisclosed amount led by Beltone Venture Capital and Index Sports Fund.

Launched in 2021, WayUp has over 70 local and international brands on its platform.  

The company aims to utilize the capital to expedite the launch of its private brand, fuel regional expansion, and enhance user experience.


Oman’s insurance sector expected have recorded 10% growth in 2023   

Updated 37 sec ago

Oman’s insurance sector expected have recorded 10% growth in 2023   

RIYADH: Oman’s insurance sector is expected to have achieved a 10 percent growth in 2023, paving the way for attracting additional regional investors, according to a top official. 

This comes as Oman recorded a growth rate of about 13 percent in insurance premiums in 2022, according to Mustafa Ahmed Salman, member of the board of directors of the Oman Chamber of Commerce and Industry.  

Salman, also serving as the chairman of the chamber’s Finance and Insurance Committee, emphasized that raising the capital of insurance companies will greatly enhance their ability to attract investors and facilitate business growth, as reported by the Oman News Agency. 

“The contribution of the insurance sector to the gross domestic product of the Sultanate of Oman currently amounts to 1.3 percent, which is a good percentage compared to Arab countries,” he said.  

This positive trend follows the insurance division emerging as one of the fastest-growing sectors in the Middle Eastern country. 

The chairman went on to explain that the volume of Arab insurance reached about $45 billion, constituting 1 percent of the volume of global insurance. 

Saudi Arabia further empowers tourism authority to help sector grow

Updated 15 min 3 sec ago

Saudi Arabia further empowers tourism authority to help sector grow

RIYADH: The Saudi Cabinet recently approved regulations for the country’s tourism authority that will give a fresh impetus to the sector and contribute to its overall growth.

The Cabinet, chaired by King Salman, approved 24 regulations concerning the Saudi Tourism Authority with a focus on global promotion, international and regional collaboration and tourists targets.

The regulations will help the authority achieve tourism targets in line with Vision 2030 and empower the body to play a pivotal role in promoting the Kingdom as a tourist destination locally, regionally, and globally.

One of the approved regulations enables the tourism authority to establish marketing offices both domestically and internationally. The objective is to boost visitor arrivals and realize the vision of positioning the Kingdom as a top-tier tourist destination, according to Umm Al-Qura, the country’s official gazette.

Tourism Minister Ahmed Al-Khateeb, who is also chairman of the STA, highlighted that the Cabinet’s approval of the authority’s regulations underscores the government’s commitment to supporting the tourism sector in achieving its objectives aligned with Vision 2030.

Among the key objectives is the collaboration with government bodies in the tourism sector to establish marketing offices for traveler destinations and oversee the strategies of these offices. Additionally, the regulations include setting visitation targets and allocating funds in a manner that enhances the involvement of the private sector in this endeavor.

As per the new regulation, the tourism authority is now mandated to undertake all measures essential for realizing its objectives, including formulating comprehensive plans and policies for tourism marketing within the Kingdom, domestically and internationally. 

Additionally, the regulation emphasizes the promotion and enhancement of destinations in collaboration with the Ministry of Tourism, as well as the support and marketing of activities and events organized by governmental bodies and the private sector.

Moreover, the authority is required to establish and maintain an up-to-date database encompassing all sites, tourist destinations, resorts, and services in collaboration with pertinent authorities. 

Moreover, it is tasked with conducting activities associated with promoting Umrah packages, which includes overseeing the development and management of any designated platform in coordination with relevant agencies. 

Additionally, the authority is mandated to assess visitor experiences, devise essential standards, tools, and mechanisms, identify tourist priorities and challenges, and subsequently share the findings and performance reports with the ministry.

The Umm Al-Qura statement added that the body should propose the necessary designs, policies, and procedures to prepare the development of tourist sites and destinations that need rehabilitation or modernization and submit them to the Ministry of Tourism, in addition to working with distinguished local and international companies and institutions, to provide products and tools with professional content, and to benefit from its expertise in tourism marketing in the Kingdom.

The source further stated that the STA is required to conduct marketing campaigns domestically and internationally to promote travel sites and products. This includes developing trademarks, registering them, and securing any intellectual property rights associated with tourism marketing under the authority’s name. The source emphasized that the body should also undertake any necessary actions related to these tasks and leverage them in accordance with pertinent rules.

The new regulation assigns the authority to develop and execute media plans to promote tourism domestically and globally. This includes organizing forums, conferences, and local and global exhibitions. 

Additionally, the body will offer administrative and technical support to tourism product owners, facilitate small and medium enterprises, and implement training programs to enhance marketing efficiency.

Furthermore, with an independent annual budget, the STA is responsible for overseeing promotional campaigns, proposing investment opportunities, and coordinating with relevant entities to enhance the travel experience. It will also collaborate with the Ministry of Tourism, government bodies, and the private sector to formulate marketing policies and ensure alignment with the national tourism strategy.

Arab-Turkish economic ties flourish with $55bn intra-trade 

Updated 25 February 2024

Arab-Turkish economic ties flourish with $55bn intra-trade 

RIYADH: Arab-Turkish economic relations are continuing to progress at all levels, with the volume of intra-trade standing at $55 billion, as stated by the secretary-general of the Union of Arab Chambers.  

Khaled Hanafi added that exports from the Turkish nation are increasing annually by about 10 percent, and the presence of direct and indirect Arab investments in Turkiye has grown significantly in recent years. 

The discussion took place during the fifth joint meeting of the Arab and Turkish Chambers, convened in Egypt. The event was attended by numerous heads of chambers of commerce and industry leaders from Arab nations and Turkiye. 

During the meeting, Sameer Abdulla Nass, president of the Union of Arab Chambers and president of the Bahrain Chamber of Commerce, stressed the significance of increasing the openness of Arab economies at both regional and international levels. 

He further underscored the importance of achieving optimal benefits from trade agreements concluded by Arab countries to boost their exports and enhance their capacity. 

The president explained that this step would help remove all challenges and restrictions on the movement of trade between countries and attract foreign capital to contribute to creating opportunities for partnerships that achieve the common interest of all parties. 

He also highlighted the importance of such meetings and conferences as opportunities to build strong relations between the Arab world and Turkiye. Especially noteworthy is the Arab-Turkish chamber, which, since its establishment, has played a significant role in raising the level of trade, economic, and investment exchange. 

For his part, the Minister of Trade and Industry of Egypt, Ahmed Samir, stressed the importance of the business community in the Arab countries and Turkiye benefiting from the political relations between their nations. This collaboration aims to develop economic cooperation in areas such as joint manufacturing, the enhancement of intra-trade, support for transportation and logistics, and ensuring food security. 

He urged the Arab and Turkish chambers to capitalize on the opportunities presented in the Arab Republic of Egypt, including those associated with the Suez Canal axis, the golden license, and the state ownership policy. 

QatarEnergy to further boost LNG production from North Field 

Updated 25 February 2024

QatarEnergy to further boost LNG production from North Field 

DOHA: QatarEnergy chief Saad al-Kaabi announced on Sunday a new expansion of its liquefied natural gas production that will add a further 16 million tonnes per annum to existing expansion plans, bringing total capacity to 142 mtpa. 

With this added boost, the overall expansion of the North Field from 77 mtpa currently to 142 mtpa by 2030 represents an increase of 85 perecnt in production, Kaabi said at a press conference in Doha. 

Qatar is among the world’s top exporters of LNG, competition for which has ramped up since the beginning of the war in Ukraine in February 2022. 

This latest expansion may not be the last for the energy giant as Kaabi said appraisal of Qatari gas reservoirs would continue and production would be further expanded if there is a market need. 

State-owned QatarEnergy has already signed a string of supply deals with European and Asian partners in its massive North Field expansion project, which was expected — prior to Sunday's announcement — to produce 126 million mtpa of LNG per annum by 2027, from the current 77 mtpa. 

Exploration activities in the west of North Field prompted the company’s decision to expand further. 

Kaabi did not give a cost for the project but said it would be in the billions of dollars. 

“It is difficult to give you a number now for the cost of the expansion, but it is certainly in billions,” he said. 

“We will start preliminary engineering studies for the project and then at the right time we will announce how much is the cost when the project is settled.” 

In December, Kaabi told Reuters that QatarEnergy had been drilling wells to assess expansion opportunities beyond the North Field East and North Field South phases. 

This latest expansion will require the construction of two LNG trains, in addition to six already underway for the earlier expansions dubbed North Field East and North Field South. 

The North Field is part of the world’s largest gas field which Qatar shares with Iran, which calls its share South Pars. 


Kaabi said global markets still need more gas even after this further expansion saying that Asian market growth was driven by population growth and European markets would still need gas for a “long time” despite the energy transition. 

The Qatari announcement comes as US gas prices trade near an all-time low if adjusted to inflation after a decade of meteoric rise in output which made the US one of the top oil and gas exporters. 

Prices of gas in Europe also fell steeply despite a drop in Russia supplies after the US and Qatar helped replace lost volumes. 

Despite the price drop all major gas producers including the US, Australia and Russia want to further increase output betting on a further demand growth and worries that their gas might not be needed decades from now if energy transition makes green energy cheaper. 

Egypt’s GDP growth projected at 5.1% by 2026 despite challenges: OECD  

Updated 25 February 2024

Egypt’s GDP growth projected at 5.1% by 2026 despite challenges: OECD  

RIYADH: Egypt’s gross domestic product is expected to gradually increase to 5.1 percent by 2025 and 2026, driven by growing consumption, according to a report.  

In a recent release by the Organization for Economic Co-operation and Development, Egypt’s economic growth is projected to face challenges amidst soaring inflation rates, necessitating urgent reform efforts to revitalize the private sector and attract investment. 

According to the OECD’s inaugural Economic Survey of Egypt, the country’s GDP growth is set to ease to 3.2 percent in fiscal year 2023-24 before increasing gradually to 5.1 percent by fiscal year 2025-26. 

“Growth is expected to be driven by growing consumption, provided inflation subsides and despite the gradual withdrawal of fiscal support,” the report stated. 

It added that the investment will stay weak as long as financing conditions remain tight in the continuing fight against inflation. At the same time, export growth is expected to increase if geopolitical tensions in the region recede. 

OECD Secretary-General Mathias Cormann underscored the urgency of controlling inflation to stimulate consumption and foster growth, saying: “Bringing inflation under control is now a key near-term priority to spur consumption and strengthen growth. Monetary policy needs to remain restrictive until inflation comes back to target.” 

He added: “A comprehensive consolidation strategy is needed to improve investor confidence in public finances and ease financing conditions. Stepping up structural reform efforts, building on previous reforms, to reinvigorate private sector activity and investment by removing administrative barriers, ensuring a level-playing field between private and state-owned companies and stepping up the fight against corruption will help boost productivity and long-term growth.” 

Despite initially weathering the storm of the COVID-19 pandemic and global food price hikes better than neighboring countries, Egypt has faced a setback, with domestic inflation soaring to record levels of 40.4 percent in September 2023, compared to 15.3 percent a year earlier.  

The analysis said that this surge in inflation has adversely affected consumption, weakened the domestic currency, and dampened investment, consequently leading to a slowdown in growth. 

Fiscal support measures, including targeted cash-transfer programs, have relieved the most vulnerable segments of society.  

However, businesses have been grappling with rising interest rates and limited access to foreign currency, hampering economic activity. While inflation has started to decline gradually, standing at 31.2 percent in January 2024, challenges persist in restoring stability. 

The report urged the government to address significant financing needs, indicating that despite targeting a 2.5 percent GDP primary budget surplus in the 2023-24 budget, the overall deficit will stand at -7.5 percent due to high-interest payments.  

International market funding has been limited since early 2022 when increased volatility in global financial markets led to strong capital outflows. “Restoring investor confidence in public finances is essential to attract international capital and bring down debt service costs,” the study added. 

Egypt’s vulnerability to climate change was also addressed in the report, with an urge to accelerate efforts toward mitigation and adaptation measures. Gradual reduction of untargeted energy subsidies was recommended to alleviate emissions and the budget deficit. 

The report emphasized the role of private investment and international support in advancing climate-related financing and facilitating the green transition. 

In conclusion, the OECD study underscored the need for concerted efforts to address Egypt’s economic challenges.  

By implementing comprehensive reforms and fostering a conducive environment for private sector growth, Egypt can navigate the current slowdown and pave the way for sustained economic prosperity.