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.


Middle East AI adoption reaches 75%, beating global average: PwC survey 

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Middle East AI adoption reaches 75%, beating global average: PwC survey 

RIYADH: Artificial intelligence is becoming embedded across Middle East workplaces, with 75 percent of employees using AI tools at work over the past year, a higher rate than the 69 percent global average, a new survey showed.

According to PwC’s Middle East Workforce Hopes and Fears Survey 2025, the region is outpacing global peers in adopting AI for everyday work, driven by government and corporate digital transformation efforts.

Based on responses from 1,286 employees, the survey indicates AI use has moved beyond pilot stages, with 32 percent of workers using generative AI tools daily — above the global average of 28 percent and reflecting growing familiarity with AI-driven workflows.

The survey findings align with trends observed in Saudi Arabia, where advanced technologies such as AI are being widely embraced across workplaces.

In November, a report released by KPMG highlighted the Kingdom’s progress in the technology sector, noting that 84 percent of CEOs in Saudi Arabia are ready to deploy AI responsibly — well above the 76 percent global benchmark — supported by the Kingdom’s data governance ecosystem, including national initiatives led by the Saudi Data and Artificial Intelligence Authority. 

Earlier this month, data from the Global AI Index revealed that Saudi Arabia ranked fifth globally and first in the Arab region for growth in the AI sector. 

Commenting on the findings, Randa Bahsoun, partner at PwC Middle East, said: “As employees confidently embrace change, build new capabilities and show remarkable adaptability with AI, they also want to feel secure and supported.” 

She added: “Organizations that provide clarity on how roles will evolve, expand access to learning and protect wellbeing will be the ones that retain talent and get ahead in a fast-changing labor market.” 

Adapting to the tech-driven future 

The latest PwC survey found that the Middle East workforce is confidently leading the integration of AI into daily work, while prioritizing job security and skills development at higher rates than their global counterparts.

According to the report, 49 percent of employees in the region expect technological change — including AI, robotics and automation — to impact their jobs to a large or very large extent over the next three years, compared with 45 percent globally.

PwC said this trend reflects not only higher adoption, but also greater readiness and comfort with next-generation technologies across the region. 

Employees in the Middle East increasingly view emerging technologies as tools that enhance productivity and creativity rather than threats to job security. 

Around eight out of 10 employees said AI has improved their productivity, with 87 percent reporting higher-quality work and 84 percent citing increased creativity. 

Higher confidence among younger employees 

The survey found that younger employees in the region demonstrate significantly higher confidence in AI’s potential, with millennials and Gen Z being the most hands-on users of AI tools. These groups are adopting new technologies quickly and often outpacing older cohorts in both usage and creative application. 

“This puts early career employees in a strong position to adapt to the evolving technological demands of entry-level roles,” said PwC. 

It added: “For employers, this is an opportunity to leverage younger talent to drive digital adoption and performance, while providing guidance, clarity and support as AI continues to reshape the future of work.” 

Acquiring the tools

Skills development remains a defining priority for the Middle East workforce, according to the survey. 

The report found that 69 percent of employees in the region gained new skills over the past 12 months, compared with 56 percent globally. 

Some 81 percent of respondents said they would prefer a job that offers opportunities to build transferable skills — higher than the 69 percent global average. 

Job security has also emerged as the top priority, with 85 percent of employees saying it is very important. 

“As employees in the Middle East seek balance and flexibility, their expectations of career progression and reward are also evolving. Fewer employees are asking for a pay rise than last year, signalling a more cautious labor market,” said PwC. 

The report found that engagement levels among the Middle East workforce remain among the highest globally, with 78 percent of regional employees saying they look forward to going to work, compared with 64 percent globally. 

Despite this high level of engagement, 45 percent of employees said they feel fatigued at least once a week, and nearly half reported feeling overwhelmed, indicating that workload intensity is becoming a significant pressure point. 

Converting momentum to benefits 

PwC highlighted several actions organizations should prioritize to convert the current AI momentum into a lasting advantage. 

The firm said companies should communicate clearly and consistently about where AI technologies are being deployed, what will change across processes, how job roles will be affected and where new value will be created. 

The report also emphasized the importance of building a continuously evolving, future-ready, skills-first workforce that can fully harness AI’s potential. 

“Leaders need to ensure upskilling, reskilling and capability building move 22 beyond periodic initiatives and become a key element of their organizations’ forward-looking business strategy,” said PwC. 

It added: “This means identifying future skill needs early, assessing current capabilities to understand gaps and using those insights to create development pathways tailored to roles, seniority and diverse career trajectories.” 

Companies should also foster a culture of agility and innovation and equip managers to effectively support AI-enabled teams. 

PwC said managers must have the clarity, tools and protected time needed to coach teams, support skill development and manage workloads in ways that sustain employee engagement and wellbeing. 

“This can be achieved by setting clear performance expectations for managers around employee development and wellbeing and supporting them with the knowledge and guidance needed to fulfil these responsibilities,” added PwC. 

Organizations should also prioritize flexibility, autonomy and balanced workloads to sustain high performance, giving employees the freedom and clarity to manage their work effectively. 

The report suggested that expanding flexible work arrangements, strengthening autonomy in day-to-day decision-making and giving teams a greater voice in how work gets done could help employees perform at their best. 

“The Middle East’s workforce continues to demonstrate a powerful blend of optimism, ambition and adaptability. The challenge now is for leaders to amplify these strengths through vision, transparency and care – ensuring that technology, trust and talent progress together,” concluded the report. 

Earlier this month, a KPMG report echoed similar views, saying UAE CEOs are accelerating investment in artificial intelligence while prioritizing people, skills and responsible innovation as core drivers of future growth. 

The report said 84 percent of CEOs in the UAE expect to expand headcount over the next three years, while 80 percent are already redesigning roles to integrate AI collaboration across their businesses.