Saudi Arabia leading region’s transformative journey 

Saudi Venture Capital’s strategic initiatives have positioned Saudi Arabia as a leader in venture investments within the MENA region for the first time in 2023. (SPA)
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Updated 01 October 2024
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Saudi Arabia leading region’s transformative journey 

  • SVC makes significant strides in shaping private investment landscape

CAIRO: A wave of venture capital funding has washed over the Middle East and North Africa region, prompting transformative change in the entrepreneurial landscape.

Saudi Arabia’s government is leading the shift through a subsidiary of the SME Bank, part of the National Development Fund.  

The Kingdom’s Saudi Venture Capital has made significant strides in shaping the private investment landscape, deploying finance across 40 investment funds and over 700 startups and small and medium-sized enterprises.  

This was highlighted in the latest Impact Report issued by SVC, which detailed its contributions since its inception in 2018. 

The document revealed that SVC’s total investments have reached SR2.6 billion ($693.1 million), with the overall impact of these, including partner commitments, estimated at around SR13.6 billion.  

These investments span various sectors critical to economic diversification, such as e-commerce, fintech, healthcare, educational technologies, transportation, and logistics. 

“SVC plays a crucial part in stimulating the private VC investment to sustain and foster the steady growth of the VC ecosystem in the Kingdom,” Nabeel Koshak, CEO of SVC, said.  

“SVC’s strategy, since its inception in 2018, contributed to increasing the number of investors in Saudi startups, encouraging existing and new financial companies to establish VC funds, and motivating regional and global funds to invest in Saudi startups,” Koshak stated. 

“Accordingly, the funding deployed into Saudi Arabian startups grew 21 times to a record-high of $1.4 billion in 2023 versus $65 million in 2018, the year SVC was launched,” he added. 

Significantly, SVC’s strategic initiatives have positioned Saudi Arabia as a leader in venture investments within the MENA for the first time in 2023.  

This milestone reflects the broader economic and financial sector evolution under Saudi Vision 2030, aimed at enhancing the national economy. 

Saudi Arabia’s Penny Software closes undisclosed pre-series A round 

Closing its pre-series A funding round, Saudi Arabia’s Penny Software raised an undisclosed sum from Iliad Partners, joined by GSI and US-based Knollwood Investments, alongside existing investors such as Dallah Investment, Hambro Perks Oryx Fund, Class 5 Global, Altuwajiri family fund, and strategic angel investors.  

Founded in 2020 by Iyad Al-Dalooj, Majid Al-Dalooj, and Mohamad Ibrahim, Penny Software is a business to business Software-as-a-Service procurement startup that digitizes the entire source-to-pay process, thereby enhancing spend efficiency, governance, and compliance. 

“This investment from Iliad Partners, alongside the continued support from our existing and new investors, represents a significant vote of confidence in Penny Software’s vision and our team’s ability to execute,” Iyad Al-Dalooj, the CEO, said. 

“We are excited to leverage this partnership to scale our operations, enhance our product offering, and solidify our position as a leader in the procurement software industry. The future of procurement is here, and Penny Software is at the forefront of this transformation,” he added. 

This new capital infusion is poised to fuel Penny’s ambitions for regional and global expansion.  

This follows a successful $5 million seed funding round in 2021, led by Outliers Venture Capital with participation from Wamda, Shorooq Partners, Hambro Perks ORYX Fund, Class 5 Global, and strategic angel investors.  

Penny Software aims to leverage this investment to further enhance its platform capabilities and broaden its market reach, reinforcing its position in the competitive SaaS industry. 

The company claims that it is set to manage a gross transaction value of over $1 billion this year, and ease procurement for thousands of companies globally. 

“Saudi Arabia is an economy that is undergoing a major transformation in which technology is playing a key role. This is our first investment in the Kingdom, and we plan to invest a significant portion of our fund in this market, supporting strong founders on their journey from the pre-series A stage and onwards,” Christos Mastoras, founder and managing partner of Iliad Partners, stated   

UAE’s DocsInBox closes $500k in a funding round 

UAE’s e-invoicing and procurement startup DocsInBox closed a $500,000 funding round from angel investors to boost its presence. 

Founded by serial entrepreneurs Leonid Dovbenko and Stanislav Seleznev,  DocsInBox significantly streamlines invoicing and procurement processes, saving up to 1 million hours each month, the company claimed.  

The platform enables purchasing agents to place orders in just three clicks, while accountants can complete tasks in 13 seconds that previously took 300 seconds.  

By automating procurement, DocsInBox reduces manual labor by 15 percent, operational costs by 5 percent, and food costs by 8 percent.  

UAE’s U-topia secures $850k in funding round 

UAE-based Web3 services provider U-topia has secured $850,000 in funding from GDA Capital. 

Established in 2021 by Jérémy Mahieu and Nicolas Prévost, U-topia operates as a Web3 entertainment company that merges global intellectual property licensing in GameFi, artificial intelligence music, and video entertainment supported by non-fungible token provenance.  

The newly acquired investment is earmarked for the development of advanced features and technologies on the U-topia platform, aiming to enhance its offerings in the dynamic Web3 landscape. 

Nigeria’s VC firm Verod-Kepple Africa Ventures closes $60m fund 

Nigeria-based VC firm Verod-Kepple Africa Ventures has concluded a final close of $60 million for its pan-African VC fund, led by existing investors and new investors, including SCM Capital from Nigeria and institutional investors from Japan, including Taiyo Holdings and C2C Global Education Japan. 

Formed in 2021 as a joint venture between Kepple Africa Ventures and Verod Holdings, VKAV is led by partners Satoshi Shinada, Ryosuke Yamawaki, and Ory Okolloh. 

The fund aims to bridge the funding gap for African startups, especially for companies moving to series A and B stages. 

Egypt’s VC firm Beltone teams up with UAE’s CI Venture to manage a $30m fund 

Egypt’s Beltone Venture Capital, under Beltone Holding, has teamed up with CI Venture Capital from UAE’s Citadel International Holdings to manage a $30 million fund aimed at nurturing fast-growing startups.  

This collaborative fund is set to invest in pre-seed and seed funding rounds of innovative tech startups across the MENA region while also continuing to support standout performers within its existing portfolio. 

In recent months, the fund has actively begun deploying capital, finalizing investments in several startups, including Bosta, Trella, Qlub, and ariika.  
 


Saudi virtual hospital at forefront of AI integration, minister says

Updated 7 sec ago
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Saudi virtual hospital at forefront of AI integration, minister says

RIYADH: Saudi Arabia’s Seha Virtual Hospital, recognized by the Guinness World Records as the world’s largest online medical initiative, is leading the way in transforming healthcare accessibility and efficiency through digital innovation.

The facility, linked to over 200 hospitals across the Kingdom, is reshaping patient care by eliminating geographical limitations and integrating advanced artificial intelligence solutions.

Speaking with Arab News on the sidelines of the LEAP 2025 tech conference in Riyadh, Abdullah Al-Issa, Saudi Arabia’s deputy minister for e-health and digital transformation, highlighted the government’s commitment to leveraging technology to enhance health care services. 

“Digital is no longer a luxury; it is a necessity. The ministry has prioritized digitization to deliver high-quality services to beneficiaries, creating a deputyship responsible for strategy, enterprise architecture, and implementation of digital solutions,” Al-Issa stated.

Bridging gaps with Seha Virtual Hospital

The Kingdom’s e-hospital is transforming patient care by providing nationwide access to advanced consultations.

“For rare specialties, patients no longer need to travel long distances to see a doctor. With Seha Virtual Hospital, consultations can happen remotely, ensuring timely diagnosis and treatment,” Al-Issa explained.

The establishment also powers initiatives like the Tele-ICU, which enables specialized consultants to assess critical patients remotely.

“Previously, patients requiring niche expertise had to be transferred via emergency air transport. Now, they can be treated in their hometown hospitals, reducing logistical burdens and improving outcomes,” he added.

AI-driven health care revolution

Saudi Arabia’s Ministry of Health has been at the forefront of artificial intelligence integration, using technology to enhance diagnostics and preventive care. “For two years, we have utilized AI in Seha Virtual Hospital, including AI-driven x-ray solutions that detect breast cancer and other conditions, assisting consultants by flagging abnormalities before they even examine scans,” said Al-Issa.

AI also plays a pivotal role in large-scale preventive health care. “We have screened over 30 million people for non-communicable diseases like diabetes and hypertension, categorizing them into high-, medium-, and low-risk groups. Those at high risk receive further assessment and early intervention, aligning with Saudi Vision 2030’s goal of increasing life expectancy to 80 years,” he noted.

Partnerships and cybersecurity in digital health

Collaboration with the private sector remains a cornerstone of Saudi Arabia’s health care strategy. “We welcome partnerships with innovators and technology firms to enhance services. Working alone isn’t enough— we must collaborate to maximize technology’s benefits for patients, doctors, and the entire ecosystem,” Al-Issa emphasized.

With the rapid digitalization of health care, cybersecurity has become a top priority. “We are fully aligned with the National Cybersecurity Authority’s recommendations to safeguard patient data and prevent misuse of technology,” he added.
 
Nafees: the unified medical record system

The Ministry of Health is also advancing health care integration through Nafees, a unified medical record system that consolidates patient health data across providers.

“Patients can now access their medical history through the Sehhaty app, while health care providers can view past diagnoses and test results, eliminating redundant procedures and enhancing efficiency,” Al-Issa said.

“We are midway through this project, with many providers already connected and more to follow in the coming years,” he added.


Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn

Updated 21 min 30 sec ago
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Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn

RIYADH: Saudi Arabia is set to host one of the world’s largest artificial intelligence data centers following a $5 billion investment by DataVolt in Oxagon, the industrial city within NEOM.

The facility, with a capacity of 1.5 gigawatts, will be built in Oxagon’s industrial quarter and powered entirely by renewable energy.

Speaking to Arab News at the LEAP 2025 tech conference in Riyadh, Oxagon Executive Director Howard Wu highlighted the significance of the project’s architectural design and AI workload management.

“This marks a very important step because you really have a data center — in the case of our partnership with DataVolt — that is building the entire facility from the ground up. So, it’s really an end-to-end infrastructure, built from the energy grid to the building, to the AI servers, to the file system, operating system, runtime, and application,” he said.

Wu emphasized that the data center will be groundbreaking in both scale and sustainability.

When completed, he said it will be one of the world’s largest at 1.5GW and will run entirely on renewable energy.

The first phase, a 300-megawatt facility, is set to be operational by 2028. Due to the energy-intensive nature of computing and cooling systems, Wu explained that data centers are typically measured by power capacity.

“On a site-wide level, we would say it’s a 300 MW site. You have huge amounts of power to run them, and because of the density of the chips, they generate a huge amount of heat. Then you have to cool them to bring the temperature down,” he said. 

As demand for AI-driven data processing and cloud computing continues to surge — fueled by platforms like TikTok and Instagram — Oxagon’s AI data center is expected to play a pivotal role in the region’s digital transformation.

“As this demand continues to grow, we certainly see a strong growth market within the region, but also globally,” the executive said.

He added that while computing power continues to advance in line with Moore’s Law, technological innovations allow for upgrades without a proportional rise in energy consumption, making power capacity the key metric for measuring data centers.

The decision to partner with DataVolt was driven by the company’s financial commitment, technological expertise, and innovative approach to data center architecture.

Wu highlighted the key qualities that made DataVolt an ideal partner, stating that the company brought significant capital investment and a strong vision. “The third part is their innovative thinking, along with all the architecture and engineering,” he said. He added that combining these qualities made it extremely difficult to find a partner that met all three major criteria.

Once completed, the AI data center will enhance Oxagon’s growing technology ecosystem, benefiting its tenants and partners while reinforcing Saudi Arabia’s position as a global leader in digital infrastructure.


Deloitte strengthens presence in Saudi Arabia, launches AI services

Updated 10 February 2025
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Deloitte strengthens presence in Saudi Arabia, launches AI services

RIYADH: UK-based professional services firm Deloitte is scaling up its investment in Saudi Arabia, reinforcing its long-standing national presence with new initiatives.

In an interview with Arab News on the sidelines of the LEAP 2025 Tech Conference in Riyadh, Patrycja Oselkowska, growth leader at Deloitte Middle East, highlighted the firm’s goal to double its growth in the Kingdom over the next three years. Revenue expansion and strategic partnerships with key clients will primarily drive this development.

“Our future is firmly in Saudi now,” Oselkowska said, adding: “Our presence in the Kingdom dates over 100 years, and we see our future in the Kingdom. We’ve recently launched our new headquarters in the King Abdullah Financial District, and we are very proud of it.”

Rather than pursuing broad-based market expansion, the firm aims to serve as a trusted adviser on its clients’ most complex challenges. “The way we differentiate in the market is by providing very in-depth industry expertise,” Oselkowska said.

Deloitte is serving as the official Innovation & Emerging Technology Partner at LEAP 2025 for the third consecutive year. The firm’s presence at the event includes interactive booths featuring discussions on generative artificial intelligence, sustainability, and cybersecurity, as well as cloud alliances and digital transformation.

Digital transformation remains the prevailing trend in the Middle East’s business landscape. According to Oselkowska, companies across sectors are accelerating their digitization efforts, with GenAI emerging as a game-changer. 

Deloitte recently published its “State of AI” report, which surveyed 150 C-suite executives from corporations across the Middle East. The findings indicated that over 80 percent of organizations feel the pressure to adopt AI, but nearly half struggle with a shortage of talent and technological capabilities necessary for successful scaling. 

She added: “Many corporates are worried that gen AI is going to completely revolutionize how they do business.”

The top official emphasized that Deloitte is proactively embracing this shift, positioning itself to disrupt its own business model before being challenged by others.

“We launched a new GenAI tool that is called Tax Genie, where we are basically trying to implement GenAI to provide services in the tax space. It is both for our people as well as for our clients.”

Oselkowska also addressed the future of digital banking in the Kingdom, distinguishing between traditional banks that offer digital services and fully digital banks that operate exclusively through mobile applications. 

While the Kingdom has yet to introduce fully digital banks, the regulatory framework is evolving, with the Saudi Central Bank overseeing licensing processes for potential entrants.

For this medium to thrive, it needs to offer a seamless customer experience and a compelling value proposition that incentivizes clients to switch from traditional banks, she said.

Cybersecurity remains a critical challenge, as digital banking platforms must ensure robust security measures to maintain high consumer confidence levels.

Deloitte’s recent research on Trust ID highlighted that credibility in financial services is exceptionally high among Gen Z consumers in Saudi Arabia. “Digital banks need to maintain that really high level of trust by being extremely secure,” Oselkowska added.

In an announcement at LEAP 2025, Deloitte introduced its Silicon-2-Service offering, an initiative designed to accelerate AI adoption across the Middle East. 

According to a press release, the S2S framework provides end-to-end support for businesses seeking to implement sovereign AI capabilities, covering strategy, design, deployment, and optimization.

Deloitte Middle East AI and Data Leader Yousef Barkawie said: “AI is transforming business landscapes globally and presenting our Middle East region with unprecedented opportunities to innovate and scale.”

He added: “With the rollout of our Silicon-2-Service offering in the region, we are enabling adoption and providing access to cutting-edge innovation at a large scale. We support clients across the public and private sectors through their entire AI journey.”

The press release said: “This collaboration enables Deloitte’s clients to accomplish faster time to value of their large-scale AI investments while embracing the freedom to innovate and adapt to evolving market demands.”

“The launch of S2S aligns with Deloitte’s broader commitment to supporting the Middle East’s digital economy by fostering an ecosystem where AI bridges innovation with tangible, positive outcomes, in compliance with the prevailing regulations unique to each country,” it added.


Qatar, Bahrain sign $1.27bn steel deal 

Updated 10 February 2025
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Qatar, Bahrain sign $1.27bn steel deal 

JEDDAH: Qatar Steel and Bahrain Steel have signed a $1.27 billion agreement to supply 5 million tonnes of the product over five years, aiming to enhance industrial cooperation and strengthen the sector in the region. 

Qatar’s Ministry of Commerce and Industry announced the agreement on Feb. 9, saying that the deal falls within the framework of the Industrial Partnership for Sustainable Economic Development, which promotes private-sector collaboration across member states.

The initiative supports a range of industries, including agriculture, food, and fertilizers. It also extends to pharmaceuticals, textiles, and chemicals. Additionally, the program benefits sectors such as plastics, manufacturing, and minerals. 

The Gulf’s steel industry has experienced significant expansion, driven by major investments in infrastructure and industrial projects.

The ministry highlighted that this strategic partnership would provide Qatar Steel with a stable supply of essential raw materials, enhancing production efficiency and supporting sustainable economic growth. 

The agreement is expected to create new investment opportunities, enhance industrial competitiveness in both Qatar and Bahrain, and strengthen local supply chains. 

By reducing reliance on imported raw materials, the deal aims to boost economic resilience and market stability across the region. 

Bahrain Steel, an iron ore pelletizing company located in the heart of the Arabian Gulf, operates twin plants with a combined capacity of 12 million tonnes of pellets. The company represents a $3.5 billion investment and plays a central role in the region’s steel industry, according to its website. 

Producing a range of pellets for both direct reduction and blast furnace steelmaking, Bahrain Steel sources raw materials via its own port terminal. Three-quarters of its finished products are exported. 

Established in 1974 as the Arabian Gulf’s first integrated steel plant, Qatar Steel began commercial production in 1978 and has been a wholly owned subsidiary of Industries Qatar since 2003.

Headquartered in Messaieed Industrial City, south of Doha, it also operates a UAE-based subsidiary, Qatar Steel Company FZE. 


MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

Updated 10 February 2025
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MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

JEDDAH: Saudi Arabia saw $14.9 billion in tech investments on LEAP’s opening day, with major deals led by Saudi Authority for Industrial Cities and Technology Zones, Digital Saudi, and NHC reinforcing its Vision 2030 drive for global tech leadership. 

Being held from Feb. 9-12 in Riyadh, LEAP 2025 is a flagship event in the Kingdom as it aims to become a global and regional tech hub, aligned with Vision 2030 goals. This comes on the back of the Kingdom’s growing push for investment in research, development, and innovation, with a World Economic Forum report projecting it will add $16 billion to Saudi Arabia’s gross domestic product by 2030.  

Here is a wrap-up of some of the major deals signed on day one: 

MODON secures over $1.6bn in digital economy deals 

Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, inked agreements worth more than SR6 billion ($1.6 billion) to boost the Kingdom’s digital economy and enhance technical capabilities. 

Among the key deals was a contract with Link Development Co. to upgrade the Shareek system, aimed at improving the investor experience in industrial, logistics, and investment sectors. 

The authority also signed a SR2.64 billion deal with Saudi data infrastructure firm Ezditek to establish a 64-megawatt cloud data center in Riyadh’s technical zone. DataVolt, a subsidiary of Vision Invest, secured a similar SR2.5 billion investment agreement for a data center in the same zone.  

Further agreements included a SR1.3 billion investment by Gulf Data Hub to build data centers in Dammam Second Industrial City and Jeddah Oasis, covering 163,000 sq. meters. MODON also partnered with the Ministry of Communications and Information Technology to accelerate cloud infrastructure development. The agreement ceremony was witnessed by Ibrahim Alkhorayef, minister of industry and chairman of MODON. 

Additionally, MODON signed a memorandum of understanding with Taibah Valley, an affiliate of Taibah University, to promote the adoption of emerging technologies in the industrial and technical sectors and support research, development, and innovation. 

KAFD, Huawei partner on smart city innovation 

The King Abdullah Financial District Development and Management Co. signed an MoU with Huawei to implement smart city solutions, AI-driven technologies, and 5G-A networks. The partnership aims to optimize operations and enhance the digital experience across KAFD’s 1.6 million sq. meters of development. 

Ramez Al-Fayez, chief information technology officer at KAFD DMC, said the collaboration would help build a “fully integrated urban environment that supports digital transformation.”  

Beyond infrastructure enhancements, the agreement also focuses on technology talent development, offering specialized training programs and globally recognized Huawei certifications such as HCNA, HCNP, and HCIE. 

KAFD and Huawei will additionally collaborate on digital research and analysis to explore emerging technological opportunities, support Saudi Arabia's digital transformation goals, and strengthen Huawei's regional presence. 

GACA taps SiFi for automated expense management 

The General Authority of Civil Aviation partnered with Saudi fintech firm SiFi to automate expense tracking and financial management processes, streamlining operations across the sector. 

Saudi Geospatial Authority, NHC Innovation collaborate  

The General Authority for Survey and Geospatial Information has signed an MoU with NHC Innovation to integrate geospatial data into real estate development, smart mobility, and navigation technologies. The partnership will leverage the Saudi Arabia National Spatial Reference System, or SANSRS, to enhance surveying and data-driven decision-making. 

Key initiatives include integrating the country’s digital maps with the national geospatial platform, utilizing SANSRS for precise surveying, and advancing geospatial intelligence to support data-driven strategies.  

Saudi HR minister unveils digital services initiative 

Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi launched a suite of digital services aimed at improving accessibility and efficiency. The initiatives include a Virtual Branch for online government services, a Digital Childcare Platform for verified childcare center information, and a Social Development Platform to enhance community engagement and transparency. 

The new services align with the ministry’s digital transformation strategy under Vision 2030, enhancing secure and innovative access to government services while fostering technological advancement in the Kingdom. 

These initiatives are part of the ministry’s broader digital transformation efforts, which have automated more than 1,000 services and processes, benefiting over 32 million users, according to the ministry. 

Digital Saudi showcases Kingdom’s tech advancements 

Digital Saudi, the Kingdom’s premier international platform for highlighting digital achievements, kicked off alongside LEAP 2025. 

Serving as a unified stage for Saudi Arabia’s digital transformation journey, Digital Saudi allows government entities to showcase their progress in e-government services, share success stories, and align with global best practices. It also educates the public on how to benefit from digital services. 

The platform further promotes the adoption of cutting-edge technologies, reinforcing Saudi Arabia’s position as a leading digital innovation hub in line with Vision 2030.