Startup Wrap: AI investments flourish across the region

Intelmatix provides accessible AI and advanced analytics to improve operations, productivity, growth, and sustainability. (SPA)
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Updated 01 October 2024
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Startup Wrap: AI investments flourish across the region

  • Shorooq Partners fuels Intelmatix’s $20 million series A round

CAIRO: Increased awareness about the implications of artificial intelligence across the public and private sector is evident in Saudi Arabia as startups continue to raise large sums.

The latest AI funding round in the Kingdom was bolstered by Abu Dhabi’s venture capital firm Shorooq Partners to fuel Saudi-based Intelmatix’s $20 million series A round.

Several Saudi firms also joined in with state-owned Saudi Venture Capital Co. participating in the investment alongside Saudi Technology Ventures, Olayan Financing Co., and Sultan Holdings, as well as Rua Growth Fund, and Kuwait’s Zain Ventures.

This investment reflects growing confidence in Intelmatix’s potential, aligning with Saudi Arabia’s strategic focus on AI, underscored by the launch of a $40 billion fund dedicated to the sector earlier this year.

The fund aims to establish Saudi Arabia as the world's largest AI investor, promoting economic diversification beyond oil.

Founded in 2021 by Massachusetts Institute of Technology scientists Anas Al-Faris, Almaha Al-Malki, and Ahmad Alabdulkareem, Intelmatix provides both public and private sectors with accessible AI and advanced analytics to improve operations, productivity, growth, and sustainability.

The platform addresses the regional AI gap with its Enterprise Decision Intelligence Platform, and is designed to be user-friendly for a wide range of enterprise users – maximizing impact and adoption while bypassing the need for advanced AI skills.

“EDIX is the one-stop shop for organizations needing AI capabilities to enhance productivity without worrying about the AI skills shortage,” Al-Faris, the company’s CEO, said.

The company claims it is one of the first to be supported by Saudi Arabia’s National Technology Development Program, which aims to empower AI startups and foster AI talent development in the country.

Synapse Analytics raises $2m to expand AI solutions

Egypt-based Synapse Analytics, a startup focused on AI-driven decision-making solutions, has raised $2 million in a funding round led by Silicon Badia and Hub71.

This investment aims to expand Synapse’s AI technologies across the Gulf region and Africa, particularly targeting the financial sector.

The company, part of Hub71’s tech ecosystem, addresses financial inclusion by offering AI tools for credit scoring, cross-selling, and dynamic pricing, among other applications.

In a press release, Synapse Analytics CEO Ahmed Abaza emphasized the transformative potential of AI, stating that it is a catalyst for making financial inclusion a reality in the MEA region.

Synapse Analytics offers solutions such as Konan, a machine learning operations platform for integrating AI into financial institutions’ workflows, and Doxter, a document extraction and process automation platform.

Co-Founder Galal El-Beshbishy highlighted the company’s focus on integrating AI seamlessly with existing systems to improve decision-making processes.

Synapse claims it has established partnerships with major banking product providers like Amazon Web Services and Crealogix, positioning itself as a key player in the region’s AI-driven transformation.

The company said its efforts have been recognized globally, including being named among the top 100 companies leading the fourth industrial revolution by the World Economic Forum.

Educatly secures $2.5m funding round to expand operations

Egyptian network for higher education Educatly has raised $2.5 million in a funding round led by TLcom Capital and Plus VC, with participation from Egypt Venture and the HBAN syndicate.

This investment supports Educatly’s mission to help students navigate educational opportunities worldwide, utilizing advanced AI and language models to provide accurate information about schools, universities, programs, and scholarships.

Since its launch in 2020, Educatly has grown its presence across the Middle East and Africa, featuring over 1,100 universities in 90 countries.

“Our aim was to bridge the gap between students' educational needs and available opportunities. This investment reaffirms our commitment to continue working towards our vision and strategic goals,” CEO and co-founder Mohmmed El-Sonbaty, said.

The platform plans to expand operations in key markets and enhance services to reach more students globally.

Co-founder Abdelrahman Ayman emphasized the platform’s focus on helping students choose fields of study, find ideal programs, and connect with peers worldwide.

Educatly claims it has already reached over 3 million students and aims to increase this number to 7 million by the end of 2024.

Cartona secures $8.1m series A extension to boost growth

Cartona, a business-to-business platform digitizing Egypt’s traditional trade market, has completed an $8.1 million series A extension.

The round was led by Algebra Ventures, with participation from existing investors Silicon Badia and the SANAD Fund for micro, small and medium-sized enterprises.

This extension follows Cartona’s $12 million series A round led by Silicon Badia, leaving the company in a strong cash position.

The new equity capital of $5.6 million is allocated to accelerate growth across various verticals, including fast-moving consumer goods and hotels, restaurants, cafes, and catering, as well as expanding market share, and exploring regional expansion opportunities in the Middle East and North Africa region.

The round also includes $2.5 million in debt capital from Camel Ventures and GlobalCorp, aimed at addressing working capital needs for local retailers.

“Our operational and financial metrics are progressing positively, attracting capital from both existing and new investors,” CEO and co-founder Mahmoud Talaat said.

Cartona claims its platform currently serves over 188,000 retailers in 17 Egyptian cities, with a growing presence in the HORECA sector.

Velents closes investment round focused on gender equality

Velents has successfully closed a special investment round with Women Collective, which saw over 80 percent participation from women investors and preferential terms for women.

Despite increasing female participation in the MENA region, women still hold only 10 percent of senior roles in private equity and venture capital, Velents’ stated in a press release.

This funding round aims to accelerate the growth of women as investors and board members.

Velents, leveraging AI to enhance organizational productivity, focuses initially on its flagship product, Velents Hiring.

The capital infusion aims to propel the company’s mission to innovate and lead in transforming workplace dynamics.

“This investment is a validation of our vision and a step forward in creating a more inclusive investment ecosystem,” co-founder Mohamed Gaber stated.

Romanna Dada, founding partner of Women Collective, noted the importance of the round.

“This investment marks a crucial step towards gender equality in the investment landscape, setting a precedent for others to follow,” Dada said.

The round is expected to inspire further initiatives that empower women investors and drive positive change in the tech industry.

MNT-Halan acquires Turkey’s Tam Finans to expand digital financial services

MNT-Halan, Egypt’s largest non-bank financial institution and fintech company, has acquired Tam Finans, a leading commercial finance firm in Turkey, from the Actera Group and the European Bank for Reconstruction and Development.

The acquisition will enhance MNT-Halan’s reach in Turkey, a market with significant growth potential due to its population of 85 million and a low household debt-to-gross domestic product ratio.

MNT-Halan aims to leverage Tam Finans’ credit models and distribution capabilities with its technology and financial services to expand its product offerings and customer base.

“Combining Tam Finans’ capabilities with our technology and financial muscle will help complete the product offering and give greater confidence to all its stakeholders,” MNT-Halan’s founder and CEO Mounir Nakhla said.

Tam Finans CEO Hakan Karamanli expressed enthusiasm for joining MNT-Halan, highlighting the shared ethos of expanding access to innovative financial services.
 


The hidden side of clean power: why grid integration matters

Updated 58 min 40 sec ago
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The hidden side of clean power: why grid integration matters

  • Exploring the predator’s role in the region’s heritage and ecosystem

RIYADH: As Saudi Arabia expands solar, wind, and battery projects, a critical piece of the sustainability puzzle often goes unseen: grid integration.

Before renewable plants can deliver power, engineers must ensure the grid remains stable, safe, and efficient under new loads. Integrating renewables into existing systems has become one of the toughest — and most crucial — steps toward building a truly sustainable energy network.

Engineers widely consider the electricity grid the largest and most complex machine ever built. As more renewable capacity comes online, managing it is becoming as much a data challenge as an energy one.

“A big share of Saudi Arabia’s electricity is generated from renewables and more projects are connected to the grid each year. This shift changes how the electricity grid is managed on a day-to-day basis,” Saeed Al-Zahrani, general manager of data enterprise storage leader NetApp in Saudi Arabia, told Arab News.

“To add context, traditional generation can usually be adjusted in a controlled way. Wind and solar, however, move with conditions such as cloud cover, dust, temperature and wind speed, meaning supply can rise and fall quickly,” he said.

In this environment, grid integration is less about whether enough electricity can be produced and more about whether operators can see and respond to changes across the network fast enough to maintain stability.

Frequency, voltage, congestion, and reserve margins all become more dynamic. Real-time measurements, accurate forecasting, asset status updates, and weather intelligence must come together into a reliable, unified system view.

“From NetApp’s perspective, this is where the data foundation matters most, because the grid can only act confidently when the information behind the decisions is timely, governed, and reliable,” Al-Zahrani said.

Under Vision 2030, Saudi Arabia aims to generate 50 percent of its energy from renewables — an ambitious target that introduces new technical and operational challenges. Weather variability, cyber threats, and system coordination can all affect grid stability.

“Every device that operates under this control regime that’s connected to the grid is digital nowadays. You have smart inverters, you have sensors, you have energy management systems, and all those devices and systems are potential entry points for attackers,” Charalambos Konstantinou, a professor at KAUST, told Arab News.

As solar capacity grows, ensuring seamless integration into the national grid has become one of the most complex challenges of the energy transition. (SPA)

His lab focuses on maintaining reliable and secure power infrastructure, developing faster and smarter control algorithms capable of responding to sudden changes in the power system.

“This is what we’re working to make sure that those algorithms remain robust. They remain resilient. They remain secure, even if something, maybe an extreme weather event, or a cyber attack, is aiming to disrupt them,” he said.

Rapid digitalization, however, can create vulnerabilities if security measures do not keep pace. In 2012, Aramco experienced the Shamoon attack, a computer virus that affected around 30,000 workstations.

“When you scale fast, security practices typically lack behind deployment, and this is essentially what we focus a lot in my group: making sure that internet-connected or digital devices cannot be used as an entry point to destabilizing the grid,” Konstantinou said.

One particularly concerning threat involves load-altering attacks, which can disrupt power systems without requiring deep penetration of the grid itself.

“If an attacker is able to control a large amount of what we call internet connected high voltage devices — think HVAC systems, air conditioning systems, water heaters, electric vehicle chargers — and is able to switch them on and off at the same time, simultaneously, then he or she can create a certain imbalance between generation and demand, and then the grid (becomes) very difficult to handle,” he said.

A view of an Aramco refinery in the Eastern Province. (Supplied)

Such disruptions could potentially trigger widespread blackouts.

Beyond cybersecurity risks, the physical environment also presents challenges. Saudi Arabia’s relatively consistent weather can be an advantage for renewable energy production, but factors such as dust accumulation on solar panels and thermal stress on inverters can still affect performance.

Testing technologies under local conditions — including extreme heat, network behavior, and the mix of generation assets — is essential before large-scale deployment. Equally important are intelligent coordination frameworks that allow flexible energy assets to work together while optimizing energy use across industries.

Renewable-heavy grids across Saudi Arabia and neighboring countries increasingly depend on real-time data from SCADA systems, substation automation, and weather monitoring to balance supply and demand. While these continuous data flows improve efficiency, they also introduce new risks, including potential system disruption and data manipulation.

Vasily Dyagilev, regional director for the Middle East, Russia and CIS at Check Point Software Technologies Ltd., highlighted the scale of these vulnerabilities.

Vasily Dyagilev, regional director of Check Point Software Technologies Ltd. for the Middle East. (Supplied)

“In Saudi Arabia, 58 percent of organizations have experienced information disclosure vulnerabilities, while remote code execution and authentication bypass remain significant threats. The complexity of managing legacy operational technology networks alongside modern cloud-based systems and third-party integrations makes it difficult for utilities to maintain full visibility over their risk landscape.

“The region has also seen high-profile incidents where attacks on SCADA systems led to operational disruptions, highlighting the fragility of critical infrastructure. Effective exposure management, including continuous vulnerability discovery and prioritized remediation based on operational risk, is now recognized as essential for maintaining grid stability and protecting the integrity of real-time data streams.”

Alongside cyber and operational risks, uncertainty in weather patterns remains a key variable in renewable power generation.

Omar Knio, another professor at KAUST, studies how atmospheric processes influence renewable energy systems through uncertainty quantification and climate modeling. Dust particles originating in the Arabian Peninsula, for instance, can travel thousands of kilometers and influence weather patterns across South Asia.

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“Phenomena at tiny little scales end up, through teleconnections, making very important contributions to weather patterns and to the climate as far as renewables themselves, because these phenomena affect the solar and wind potentials, they’re extremely important to predict accurately,” Knio said.

“The presence of dust in the atmosphere and cloud cover affect the output of solar panels or solar plants, and similar phenomena happen to wind, and that's why they are really challenging. It's important to be able to predict them as accurately as we can.”

Maintaining a stable renewable grid requires both short-term and long-term forecasting. Hourly predictions are essential for balancing supply and demand, while longer-term projections help planners prepare infrastructure and storage.

Artificial intelligence is increasingly helping researchers build models that forecast weather patterns, simulate thermal behavior in buildings, and analyze industrial energy use. In areas where detailed physical models are limited, AI also helps uncover patterns in human behavior and electricity consumption.

“An example is power demand, consumer behavior, or changes in patterns that have to do with the day of the week, whether it's a weekend, a holiday season, whether it's during harsh weather, or it's during Ramadan: how do these patterns change? And artificial intelligence is really bringing the capability for us to represent and forecast these very complex phenomena,” Knio said.

As renewable energy penetration approaches higher levels, the system becomes more sensitive to fluctuations and extreme events.

“There comes a point where we start having a very dramatic rise in the need for storage capabilities. And the important aspect of why our fuel is important. We can make them cleaner, but they’re wonderful in the sense that they are plentiful right now. They are cheap, but more importantly, they are quite economical to store after. After fuels come nuclear power. So it’s really that storage capability. As we approach 100 percent, the need for storage becomes extremely heightened,” Knio said.