Saudi Cabinet approves board members of CMA to join government agencies
Updated 13 February 2024
Arab News
RIYADH: Saudi Arabia’s Cabinet has approved the proposal to allow members of the Capital Market Authority to serve on the boards of other government agencies.
The Cabinet, chaired by King Salman, has given the nod to CMA members and its CEO to serve other government agencies for a maximum period of two years, according to a report by the Saudi Press Agency.
The body, which met on Feb. 13, also approved the law protecting informants, witnesses, and victims, as well as backing regulations governing the Saudi Tourism Authority.
According to the SPA report, the Cabinet authorized the minister of foreign affairs to enter into a memorandum of understanding with Singapore to establish a strategic partnership council between the two countries’ governments.
It also authorized Saudi Arabia’s minister of environment, water, and agriculture to enter into a draft agreement to cooperate in the environmental sector with the Arab Center for the Studies of Arid Zones and Dry Lands.
Saudi Arabia’s Ministry of Communications and Information Technology received approval to cooperate with India in the fields of digitization and electronic manufacturing.
The Cabinet also authorized the Kingdom’s Ministry of Investment to work with Norway to promote direct investment in Saudi Arabia.
The minister of transport and logistics services and chairman of the General Authority of Civil Aviation received the green light from the Cabinet to sign a draft memorandum of understanding for technical cooperation with the Latin American Civil Aviation Commission.
The body also approved a memorandum of understanding for cooperation in the field of passenger security between the National Traveler Security Center of Saudi Arabia and the Nationality, Passports and Residence Affairs of Bahrain.
The Cabinet consented to a cooperation agreement in counter-terrorism and its financing between the Presidency of State Security of Saudi Arabia and the National Counter Terrorism Agency of Indonesia.
It also authorized the Ministry of Education to a draft memorandum to promote scientific and educational cooperation with countries including Ethiopia, Eritrea, and Burundi, as well as Kenya, Tanzania, Ghana, Rwanda, and Uganda.
Firm’s CMA license represents an expansion of its capabilities
Updated 6 sec ago
Nour El-Shaeri
RIYADH: Saudi Arabia’s HALA Capital is ready to double down on three of the Kingdom’s most strategic sectors as it prepares to deploy new investment structures and expand across fintech, artificial intelligence and logistics.
With a newly granted license from the Capital Market Authority, the firm aims to position itself at the center of a rapidly evolving venture and mid-market landscape that is drawing increasing attention from global investors.
In an interview with Arab News, Ali Abussaud, founder and CEO of HALA Capital, said the milestone reflects the firm’s readiness to scale its role in solving some of the region’s most persistent investment gaps.
The CMA license represents an expansion of HALA Capital’s capabilities and long-term mission.
Abussaud describes it as the realization of an ambition that once felt remote, saying it reflects accumulated knowledge, market experience and clarity on “what kind of gaps in the market — and also what kind of problems — we are going to end up solving.”
He says that Gulf mid-cap and legacy firms remain among the region’s most underserved segments.
Many operate “giant” businesses yet avoid bank financing or lack the structural support required to scale.
HALA aims to fill this niche as a “boutique capital house,” providing attention and customization that larger financial institutions “don’t have the time to sit and listen and do.”
Early venture beginnings
HALA Capital’s current strategy is rooted in a time when venture activity across the Middle East and North Africa was limited and fragmented.
Abussaud, who moved into investing after a career in banking and corporate consulting, recalls that he and his partners eventually began questioning “why there was no venture capital in the region.”
Their first genuine venture-style deal came in 2016 with a Dubai insurance tech startup, an experience that exposed how challenging it was to assess early-stage companies using traditional financial criteria.
For HALA, a Saudi startup ‘has to be today,’ with active operations, commercial registration and the ability to sell locally.
Ali Abussaud, founder and CEO of HALA Capital
Abussaud says they initially rejected startups because the numbers did not align with established expectations. Their approach changed only when they shifted their focus to founders and long-term vision.
Between 2016 and 2019, HALA and its partners invested their own capital into 12 startups before formalizing the model.
AI at early stage
HALA views the regional AI market as still at its foundation stage. “The market has not really started yet,” Abussaud says, warning that many founders present offerings that are not genuine AI but simple integrations with external large language models.
He argues the market needs original, regionally tailored models.
Logistics innovation
In logistics — “one of the biggest sectors we have,” he says — founders often misstep by attempting to compete directly with legacy operators in first- and last-mile delivery.
HALA instead prioritizes models that “invent something” new and collaborate with incumbents through frameworks such as offtake agreements.
What founders must deliver
Abussaud urges founders to approach investors with research and honesty. “At least do some research about us, about what we do, about what we focus on,” he says.
Founders should avoid “overselling” or presenting a “perfect product.” Instead, he advises them to “just be yourself” and openly discuss challenges and uncertainties.
HALA Capital’s CMA license represents an expansion of its capabilities and long-term mission.
Transparency enables investors to provide relevant guidance, introductions and support.
His preferred founder profile is “stubborn, but at the same time coachable.” He avoids both extremes: founders who resist all feedback and those who accept every suggestion without conviction.
Skills balance is crucial — strong selling ability, relevant work experience and, for deep-tech companies, technical expertise.
Defining a Saudi startup
As more international founders target the Kingdom, HALA Capital has tightened its definition of what counts as a Saudi startup.
A company qualifies if it has a headquarters or established operations in the Kingdom, regardless of the founders’ nationalities.
An Egyptian-founded business with a relocated team and Saudi Arabia as its primary market qualifies.
What does not qualify are startups that “want money in order to expand to Saudi Arabia.”
For HALA, a Saudi startup “has to be today,” with active operations, commercial registration and the ability to sell locally.
“It’s not the kind of market where you think you can do it remotely,” he says.
On-the-ground presence, local sales teams and Saudi employees — especially for government B2B work — are essential.
