Saudi startups take lead in MENA funding space

MAGNiTT’s report show that Saudi startups raised $400 million in venture debt last year, a 602 percent growth compared to $57 million in 2022. (SPA)
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Updated 01 October 2024
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Saudi startups take lead in MENA funding space

  • Sector garners over 53 percent of MENA venture debt financing in 2023

CAIRO: Saudi Arabia’s startup ecosystem has affirmed its leading position in the funding space, capturing over 53 percent of the region’s venture debt financing in 2023, according to MAGNiTT’s latest report.

The venture data platform revealed that Saudi startups raised a total of $400 million in venture debt last year, a 602 percent growth compared to $57 million in 2022.

Venture debt is a type of financing for early-stage companies that complements equity funding. It includes growth capital for expansion, equipment financing for asset acquisition, and accounts receivable financing for managing cash flow.

The Middle East and North Africa region saw a total of $757 million in venture debt financing in 2023, a 262 percent year-on-year growth.

The UAE followed Saudi Arabia with a total of $353 million in financing in 2023, a 222 percent yearly increase. Egypt came in third with $4 million, an 86 percent annual drop.

In terms of deal count, the Emirates leads the region with six transactions, indicating a 25 percent yearly decrease; Saudi Arabia with four, a 100 percent annual increase, and Egypt with two and a 75 percent year-on-year drop.

Fintech emerged once again as the sector of choice for investors, accumulating $601 million in financing, a 325 percent yearly increase.

Buy now, pay later giants Tabby and Tamara drove the sector’s triple-digit growth, amassing $600 million of fintechs’ total financing. 




Founded in 2022 by Sean Trevaskis and Enver Sorkun, Growdash uses software solutions to boost restaurants’ marketing and operational efforts. (Supplied)

This is mainly due to the subsector’s capital-intensive nature and the growing demand for consumer credit financing tools.

Transport and logistics came in second with $150 million in venture debt, a 162 percent YoY increase, and e-commerce with $3 million, a 57 percent drop.

The leading investors by capital deployed were mainly foreign, with the top three from the US, namely, Goldman Sachs, Partners for Growth, and Atalaya, followed by CoVentures from South Africa and Shorooq Partners from the UAE.

Agritech startup iyris closes $16m series A round

Riyadh and Dubai-based agritech startup iyris, formerly known as RedSea, closed a $16 million series A funding round led by US-based Ecosystem Integrity Fund with support from Global Ventures, Dubai Future District Fund and Kanoo Ventures as well as Globivest, and Bonaventure Capital.

Founded in 2018 by Ryan Lefers, Mark Tester, and Derya Baran, iyris offers advanced commercial farming solutions for low to mid-tech farmers in hot climates worldwide.

Proceeds will enhance sales coverage and bolster iyris’ international sales pipeline for SecondSky greenhouse covers and nets.

Additionally, the funds will drive the development of innovative heat-blocking products and resilient plant genetics.

This investment underscores iyris’ dedication to empowering farmers to sustainably mitigate climate change impacts, address food security concerns, and achieve key UN Sustainable Development Goals.

BIM Ventures and SBI Holdings launch $100m joint investment fund

Saudi Arabia-based VC studio BIM Ventures has partnered with Japan’s SBI Holdings to launch a $100 million joint investment fund aimed at supporting Saudi startups.

The fund will provide startups with funding, expert guidance, and mentoring throughout their establishment and growth phases.

The memorandum of understanding for the fund was signed during the Saudi-Japan Vision 2030 Business Forum, under the auspices of the Ministry of Investment of Saudi Arabia.

UAE’s Growdash closes $1.8m seed round

Dubai-based foodtech software as a service solution Growdash closed $1.8 million in a seed funding round led by Oryx Fund and Oraseya Capital.

Founded in 2022 by Sean Trevaskis and Enver Sorkun, the company uses software solutions to boost restaurants’ marketing and operational efforts.

UAE foodtech startup GrubTech secures $15m in series B funding

UAE-based foodtech startup GrubTech has raised $15 million in its series B round, an extension of series A led by Jahez and including participation from Addition and Hambro Perks Oryx Fund.

Founded in 2019 by Mohamed Al-Fayed, Omar Rifai, and Mohamed Hamedi, GrubTech is a software integration and unified commerce platform that provides restaurants and cloud kitchens with software solutions to streamline operations.

TVM Capital Healthcare closes $250m Afiyah Fund

UAE-based healthcare private equity firm TVM Capital Healthcare has closed a $250 million Afiyah Fund LP.

The fund was led by JADA, a Public Investment Fund company, along with a group of Saudi, Gulf, and European investors.

The Afiyah Fund aims to support domestic and international health tech startups entering the market, with a focus on the key medical priorities of Saudi Vision 2030.

TVM Capital plans to mobilize $400 to $500 million in the Saudi healthcare sector, with anticipated co-investment offers from its LP base.

Proptech startup Holo secures pre-series A funding

UAE-based proptech startup Holo has raised an undisclosed amount in a pre-Series A funding round led by Dubai Future District Fund and Oryx Fund, with participation from Aditum Investment Management Limited.

Launched in 2020 by Michael Hunter and Arran Summerhill, Holo offers digital mortgage services that simplify the process of owning a home by allowing buyers and homeowners to explore refinancing options.

Holo plans to use the new capital to strengthen its market position in the UAE, grow its team, and expand its reach across the Gulf region, with an immediate focus on Saudi Arabia.

In February 2023, Holo closed a seven-figure seed round.

Shorooq Partners announces first close of $100m credit fund

UAE-based alternative investment manager Shorooq Partners has announced the first close of its $100 million second private credit fund.

The fund was established in collaboration with Korea’s IMM Investment Global, which joined as a minority partner.

The fund will assist MENA-based startups with an average ticket size of $10 million in sectors such as manufacturing, industrials, financing, and software services.

Founded in 2017 by Mahmoud Adi, Shane Shin, and Kunal Savjani, Shorooq Partners is an alternative investment manager across MENA.

Its first credit fund, now fully deployed, has invested in companies like Pure Harvest and Tamara.


Saudi Arabia sets global benchmark in AI modernization

Updated 15 January 2026
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Saudi Arabia sets global benchmark in AI modernization

  • Executives hail the Kingdom’s robust infrastructure and strategic workforce programs

RIYADH: Saudi Arabia is emerging as a global leader in artificial intelligence, according to executives from OpenText, one of the world’s largest enterprise information management companies. 

With 22 years of international AI experience, Harald Adams, OpenText’s senior vice president of sales for international markets, said the Kingdom’s modernization efforts are now setting a global standard.

“From my perspective, Saudi Arabia is not only leading the modernization towards artificial intelligence in the Middle East, I think it is even not leading it only in the MENA region. I think it is leading it globally,” Adams told Arab News.

In an interview, Adams and George Schembri, vice president and general manager for the Middle East at OpenText, discussed the Kingdom’s significant investments in AI during the inauguration of OpenText’s new regional headquarters in Riyadh.

“So for us (OpenText), from our perspective, it was a strategic decision to move our MENA headquarters to Saudi Arabia because we believe that we will see here a lot of innovation coming out of the country, we can replicate not only to the MENA region, maybe even further to the global level,” Adams said.

The new headquarters, located in the King Abdullah Financial District, will serve as a central hub for OpenText customers and partners across the Middle East. Its opening reflects a broader trend of tech giants relocating to Riyadh, signaling the Kingdom’s rise as a hub for global AI innovation.

Adams attributed Saudi Arabia’s lead in AI modernization to a combination of substantial financial backing, a unified national strategy, and a remarkable pace of execution.

“I mean, a couple of things, because the ingredients in Saudi Arabia are of course, quite interesting. On the one hand side, Saudi Arabia has deep pockets and great ambitions. And they are, I mean, and they are executing fast, yeah,” he said.
“So from that perspective, at the moment, what we see is that there are, especially on the government side, I can’t see any other government organizations globally moving faster into that direction than it is happening in Saudi Arabia. Not in the region, not even on a global level, they are leading the game,” he underlined.

Schembri added, “Saudi’s AI vision is one of the most ambitious in the world, and AI on a national scale is not good without trusted, secured, and governed, and this is where OpenText helps to enable the Saudi organizations to be able to deliver on the 2030 Vision.”

“The Kingdom’s focus on AI and digital transformation creates a powerful opportunity for organizations to unlock value from their information,” Schembri stated.
“With OpenText on the ground in Riyadh, our customers gain direct access to trusted global expertise combined with local insight — enabling them to manage information securely, scale AI with confidence, and compete on a global stage,” he added.

DID YOU KNOW?

• Saudi Arabia ranks 5th globally and 1st in the region for AI growth under the 2025 Global AI Index.

• The Kingdom is also 3rd globally in advanced AI model development, trailing only the US and China.

• AI is projected to contribute $235.2 billion — or 12.4 percent — to Saudi Arabia’s GDP by 2030.

The inauguration of OpenText’s new regional headquarters was attended by Canada’s Minister of International Trade and Economic Development, Maninder Sidhu, and Jean-Philippe Linteau, Canada’s ambassador to Saudi Arabia. 

Sidhu emphasized the alignment of Saudi Vision 2030 with Canada’s economic and innovation goals.

“His Highness (Crown Prince Mohammed bin Salman) and Vision 2030, there is a lot of alignment with Canada, as you know, with the economic collaboration, with his vision around mining, around education, tourism, healthcare, you look at AI and tech, there’s a lot of alignment here at OpenText Grand opening their regional headquarters,” Sidhu told Arab News.

Saudi Arabia’s AI ambitions are projected to contribute $235.2 billion — or 12.4 percent — to its GDP by 2030, according to PwC. The Saudi Data and AI Authority, established by a royal decree in 2019, drives the Kingdom’s national data and AI strategy.

One flagship initiative, Humain, chaired by Crown Prince Mohammed bin Salman, was launched in May 2025 under the Public Investment Fund. It aims to build a full AI stack — from data centers and cloud infrastructure to models and applications — positioning Saudi Arabia as a globally competitive AI hub. The project plans to establish a data center capacity of 1.8 GW by 2030 and 100 GW of AI compute capacity by 2026.

Saudi Arabia is also expanding international partnerships. In May 2025, Humain signed a $5 billion agreement with Amazon Web Services to accelerate AI adoption domestically and globally, focusing on infrastructure, services, and talent development.

The Kingdom ranked fifth globally and first in the Arab region for AI sector growth under the 2025 Global AI Index, and third worldwide in advanced AI model development, behind only the US and China, according to the Stanford University AI Index 2025.

Education is another pillar of Saudi AI strategy. Starting in the 2025-26 academic year, AI will be taught as a core subject across all public school grades, reaching roughly 6.7 million students. The curriculum will cover algorithmic thinking, data literacy, and AI ethics.

OpenText executives emphasized their commitment to supporting Vision 2030 and the national AI strategy through workforce development.

“OpenText has put a lot of investment in the Kingdom, right. We brought cloud to the Kingdom, we’ve opened our headquarters in the Kingdom, we’ve basically hiring Saudis in the Kingdom, We basically building, if you like, an ecosystem to support the Kingdom. And on top of that, what we’re doing is we’re putting a plan together, if you like, a program to look at how we can educate, if you like, the students at universities,” Schembri said.
“So this is something that we are looking into, we are basically investigating and to see how we can support the Saudi nationals when they come into the workplace. And I’m really excited. I have Harry who is, our leadership who’s supporting this program.”
“It’s something that we are putting together. It’ll take some effort. So it’s still in play because we want to make sure what we put it basically delivers on what we're trying to achieve based on the vision of Saudi,” he added.

“The younger generation is sooner or later either working for us or maybe for a partner or for maybe for a customer. So that’s why we are to 100 percent committed to enable all of that,” Adams said.