Saudi Arabia’s startup ecosystem kicks off 2025 on a strong note

Zension Technologies specializes in providing warranties, device buy-back services, and subscription-based technology upgrades. (Supplied)
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Updated 12 January 2025
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Saudi Arabia’s startup ecosystem kicks off 2025 on a strong note

  • Zension Technologies raises $30 million in a series A funding round

RIYADH: Saudi Arabia’s venture capital and startup ecosystem kicked off 2025 with fresh funding rounds as the Kingdom continues its regional dominance.

Zension Technologies raised $30 million in a series A funding round led by Wa’ed Ventures, the venture capital arm of Saudi Aramco.

The round also saw participation from Japan’s Sumitomo Corporation and regional investor Global Ventures.

Founded in 2018 by Khalid Saiduddin and Nikos Anastasiadis, Zension provides protection, extended warranty, and guaranteed buyback services for mobile devices and consumer electronics.

These services are integrated into major retailers, telecommunications companies, and original equipment manufacturers operating in the Saudi and UAE markets.

With the fresh funding, Zension aims to launch its new service, Zaam, which is set to debut in the first quarter of the year across Saudi Arabia and the UAE.

SVC backs $150m tech fund by Global Ventures

Saudi Venture Capital has announced its investment in Global Ventures III, an early-stage fund exceeding $150 million in size.

Managed by UAE-based Global Ventures, it will focus on investments in technology and tech-enabled sectors across Saudi Arabia, the Middle East and North Africa, and Sub-Saharan Africa.

Target industries include supply chain technology, agritech, enterprise software as a service, and emerging technologies such as artificial intelligence and deep tech.

“Our investment in the venture capital fund by Global Ventures is part of SVC’s Investment in Funds Program, in alignment with our strategy to catalyze venture investments by fund managers investing in Saudi-based startups, especially during their early stages,” said Nabeel Koshak, CEO and board member at SVC. 

The market opportunity continues to be immense, with emerging technologies across platforms being built by exceptional founders continuing to shine through.

Noor Sweid, founder and managing partner at Global Ventures

Noor Sweid, founder and managing partner at Global Ventures, emphasized the importance of the collaboration, saying: “We are proud of our deep and continued partnership with SVC, and the investment underscores our continued deep commitment to enabling and building the Saudi Arabian VC and startup ecosystem. 

“The market opportunity continues to be immense, with emerging technologies across platforms being built by exceptional founders continuing to shine through.”

SVC, a subsidiary of SME Bank under Saudi Arabia’s National Development Fund, was established in 2018 to stimulate and sustain financing for startups and SMEs across their growth stages, from pre-seed to pre-initial public offering, through investments in funds and direct investments.

Interior design platform Revie raises $2.5m seed round

Saudi Arabia-based interior design and renovation platform Revie has raised $2.5 million in a seed funding round led by Sanabil Venture Studio by Stryber.

Established in 2024 by Ibrahim Abu Khadra, Revie provides an end-to-end solution for residential and commercial renovations.

The platform connects customers with vetted service providers and offers a seamless experience from design to execution. With the new funding, the company plans to invest in its technology and build a scalable foundation to support long-term growth.

Vreal secures pre-seed investment for AR/VR innovations

Saudi augmented and virtual reality technology provider Vreal has raised an undisclosed pre-seed investment round from the numu Angels Investment Community.

Founded in 2022, Vreal offers e-commerce businesses the ability to convert their products into 3D models in as little as 30 seconds using its advanced scanning technology.

The startup is exploring opportunities to expand its applications to other industries, including interior design, real estate, tourism, and heritage preservation. Vreal aims to strengthen its position in Saudi Arabia and tap into broader markets with its innovative technology.

MilkStraw AI raises $600k pre-seed funding to expand in MENA

UAE-headquartered artificial intelligence startup MilkStraw AI has raised $600,000 in pre-seed funding. The round was led by Flat6Labs, with participation from Angel Spark, Beyond Capital, and a group of angel investors.

MilkStraw, founded by Jawad Shreim in 2024 in the US, specializes in software solutions that automate and optimize cloud infrastructure costs for businesses.

The company intends to use the funding to expand its operations across the MENA region, focusing on providing cost-saving AI tools to enterprises in the region.

Mintiply Capital partners with Fuel Venture Capital for GCC-focused SPV

UAE-based Mintiply Capital, an advisory and investment banking firm specializing in mergers and acquisitions and alternative investments, has announced an exclusive partnership with US-based venture capital firm Fuel Venture Capital.

The collaboration aims to launch a Special Purpose Vehicle targeting high-potential early-stage startups across the Gulf Cooperation Council region, with a particular focus on the UAE.

This initiative is aligned with the UAE’s strategic goal of fostering a robust startup ecosystem and driving innovation as a key pillar of economic growth.

The SPV will provide targeted funding and resources to emerging startups, supporting the development of the UAE’s entrepreneurial ecosystem and promoting sustainable economic growth.

ReNile raises $450k for agritech solutions

Egypt-based agritech startup ReNile has secured $450,000 in funding from undisclosed investors.

Founded in 2017 by Hazem El-Tawab, ReNile offers a full-stack solution for farmers that includes monitoring systems, emergency alerts, control systems, and analytics to enhance farming practices.

The company’s platform supports data-driven farming, helping users implement best-practice models to improve efficiency and yield.

MSME lending in Saudi Arabia grows by 22.6 percent in Q3 2024

Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia reached SR329.23 billion ($87.8 billion) in the third quarter of 2024, marking a 22.6 percent year-on-year increase, according to data from the Saudi Central Bank.

Of the total, 94.7 percent of loans were provided by Saudi banks, while finance companies contributed the remaining 5.3 percent.

MSME lending accounted for 9.1 percent of banks’ total loan portfolios and 18.8 percent of finance companies’ portfolios.

The Saudi government has set an ambitious target for financial institutions to allocate at least 20 percent of their lending portfolios to this critical sector, as part of its Vision 2030 strategy to foster economic diversification and support business growth.

Saudi Arabia tops MENA venture capital rankings for second year

Saudi Arabia retained its position as the leading destination for venture capital in the MENA region in 2024, raising $750 million, according to a report from regional venture platform MAGNiTT.

This marks the second consecutive year the Kingdom has led regional VC rankings. Saudi Arabia accounted for 40 percent of the total venture capital deployed in MENA, closing 178 deals — the most of any nation in the region.

While total venture capital raised in MENA declined 29 percent year-on-year to $1.9 billion in 2024, MAGNiTT noted that funding levels remained above pre-boom levels from 2020, indicating resilience in the ecosystem.

The Middle East alone accounted for $1.5 billion of this funding, spread across 461 deals, a 10 percent annual increase.

Investor participation in the region grew 14 percent to 392 investors, and the year saw 24 exits.

However, emerging venture markets — including the Middle East, Africa, and Southeast Asia, as well as Pakistan and Turkiye — faced a sharp slowdown, with total venture funding dropping 40 percent and deal volumes falling 20 percent compared to 2023.

Both metrics also fell below 2020 levels, reflecting broader challenges in the global venture landscape.


US-based ServiceNow to launch data centers in Saudi Arabia in 2026

Updated 10 February 2025
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US-based ServiceNow to launch data centers in Saudi Arabia in 2026

RIYADH: US-based software firm ServiceNow is set to launch data centers in Saudi Arabia in 2026, according to its Europe, the Middle East, and Africa president.

In an interview with Arab News on the sidelines of the second day of LEAP 2025, taking place in Riyadh from Feb. 9 — 12, Cathy Mauzaize revealed the date for the facilities, with the plans to develop them in the Kingdom announced at last year’s event.

The EMA president also talked up ServiceNow’s ambitions to build cloud infrastructure and developing essential skills in Saudi Arabia to support its customers and partners better.

ServiceNow’s plan falls in line with Saudi Arabia’s National Strategy for Data and Artificial Intelligence, which aims to train 40 percent of the workforce in essential skills to combat data and AI illiteracy and develop a talent pool of 20,000 data and AI specialists.

It also aligns well with the strategy’s target of attracting SR75 billion ($19.99 billion) in local and foreign investments, as well as supporting over 300 startups to encourage entrepreneurship.

Speaking on the timeline of the date centers, Mauzaize said: "We’re going to, crossing my fingers, announce the services in 2026.”

She add that it is “time for us to build the data centers and make them available for our customers and partners here, in the Kingdom, but also, at the same time, we are investing a lot in creating skills, because if we don’t have skills, and especially in the young people, it’s going to be difficult for us to sustain the growth.” 

During the interview, Mauzaize went on to highlight that AI and generative AI will have a major impact on the EMA economy.

“If you look at the numbers that IDC (International Data Corporation) predicts for EMA and how much wellness or how much, you know, it impacts on the economy, it will have $5 trillion by 2030,” she said.

“But if you go into Saudi Arabia, 52 percent of the CEOs say AI is top of mind and 79 (percent) are saying: ‘we know that’s going to have a material impact on the way we run our business,’” the EMA president added. 

Mauzaize also underlined major partnerships sealed during LEAP 2025 with Salam, a leading digital infrastructure provider in the Kingdom, and the Saudi Telecom Co.
 
“Salam — it’s a big partnership to help them run on a much faster way, their own operation and to go after a brand-new set of customers in SME space. We have this vision together that, hey, let’s go modernize, help you develop your top line proper, new services embedded into platform and fuse with AI as a service to your end customer, and let’s together go after the small and medium business,” she said.
 
“STC, we are announcing again a very strategic partnership to help them on their modernization journey, but also as a partner to go to market together. We are very, very proud of those two announcements and we believe that those two will help us accelerate significantly how we get into the Kingdom with success,” the EMA president added.

Mauzaize explained that ServiceNow is the only AI platform designed specifically for business and digital transformation.

“We have a platform that combines data, the ability to collect all the data and to connect to any source of system, structured data and unstructured data. We are having AI at the core and now Gen AI, generative AI, that has ability to interact with the human touch and augment human and collaborate with human,” she said.

The EMA President added: “And then we have the workflow, and so the workflow are our ability to digitalize processes. If you think about it in any company anything you do is a process and then is a workflow, so you can either do workflow manually or do a workflow digitally and automate them.”

Held under the theme “Into New Worlds,” LEAP 2025 aims to expand business networking and investment opportunities in the tech sector.
 
The event plays a key role in Saudi Arabia’s ambition to become a global technology hub, aligning with its Vision 2030 plan to diversify the economy. As part of this initiative, the Kingdom has pledged $100 billion toward advancing its technology sector.


Saudi virtual hospital at forefront of AI integration, minister says

Updated 10 February 2025
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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 29 min 29 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 14 sec ago
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Deloitte strengthens presence in Saudi Arabia, launches AI services

  • Deloitte aims to double its growth in the Kingdom over the next three years
  • Deloitte introduced its Silicon-2-Service offering, an initiative designed to accelerate AI adoption across the Middle East

RIYADH: 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 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 8 min 16 sec ago
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Qatar, Bahrain sign $1.27bn steel deal 

  • Initiative supports a range of industries, including agriculture, food, and fertilizers
  • Deal expected to create new investment opportunities, enhance industrial competitiveness, and strengthen local supply chains

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 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.