Saudi entertainment industry set to power economic diversification

The entertainment boom has contributed to a rise in property values across the Kingdom, especially in areas adjacent to major attractions. (SPA)
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Updated 17 May 2025
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Saudi entertainment industry set to power economic diversification

  • Entertainment sector set to generate 450,000 jobs and contribute 4.2 percent to Kingdom’s GDP by 2030

RIYADH: Saudi Arabia’s growing entertainment sector is set to become a key catalyst for growth across various industries and a central pillar in the Kingdom’s broader economic diversification strategy, according to experts.

Strengthening the industry is vital as Saudi Arabia continues to shift away from its long-standing dependence on oil revenues, aligning with its ambitious efforts to build a more resilient and diversified economy.

The rapid growth of the Kingdom’s entertainment sector is underscored by recent data and forecasts, including a report by AlixPartners which revealed that 33 percent of Saudi consumers plan to increase spending on out-of-home entertainment — significantly higher than the global average of 19 percent.

Supporting this trend, data from the Ministry of Commerce showed that commercial registrations in the Kingdom’s arts and entertainment sector rose by 20 percent in 2024 compared to 2023. 

Notably, innovative arts and entertainment activities saw a 30 percent increase, reaching 4,188 registered entities, while amusement park activities grew by 26 percent, totaling 6,108 registrations.

In an interview with Arab News, Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at consulting firm Arthur D. Little, highlighted the sector’s potential to generate a ripple effect across hospitality, tourism, and retail, as well as real estate, and technology.

“Major events and attractions are drawing both international and domestic tourists — contributing directly to the Kingdom surpassing its original target of 100 million annual visitors by 2030, an achievement reached seven years ahead of schedule,” said Khan. 

Major events and attractions are drawing both international and domestic tourists.

Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at consulting firm Arthur D. Little

He added: “This surge in tourism fuels demand for hospitality infrastructure, including hotels, restaurants, and local transport, while extending average visitor stay and spend.”  The Arthur D. Little official added that the growth in the entertainment sector could also propel the retail industry, with entertainment-led foot traffic expected to drive commercial activity in malls, high streets, and mixed-use developments. 

Guillaume Thibault, partner and head of Sports and Entertainment at Oliver Wyman for India, the Middle East, and Africa, echoed similar sentiments, noting that Saudi Arabia’s entertainment industry will spur growth in adjacent sectors by driving demand for complementary services.

He added that emerging entertainment destinations are helping cities like Riyadh and Jeddah position themselves as lifestyle hubs with the potential to compete on a global scale.

“Large-scale events and festivals drive hotel occupancy and airline bookings, while lifestyle venues anchor foot traffic in malls and high streets. Technology adoption accelerates through the demand for ticketing, crowd management, and immersive experiences,” said Thibault. 

He added: “Entertainment is a key downstream activator for mega-events and is intricately intertwined with the urban fabric of these mega events, enhancing the hospitality, tourism, and retail sectors.” 

Looking ahead, the Ministry of Investment projects that the entertainment sector could generate 450,000 jobs and contribute 4.2 percent to Saudi Arabia’s GDP by 2030.

Impacts: retail spending, real estate and FDI 

Thibault emphasized that Saudi Arabia’s youthful population — most of whom are under the age of 35 — will be a key driver of growth in the Kingdom’s entertainment sector and could significantly boost retail spending.

He noted that for young Saudis, entertainment is not viewed as a seasonal luxury, but rather as a regular and essential part of their spending habits.

“As more venues and formats become available, consumers are reallocating discretionary income from international travel to local entertainment. This ‘localization of lifestyle’ is increasing the frequency and variety of spending, from dining and merchandise to experiential add-ons,” said Thibault. 

Khan expressed similar views and added that rising disposable income among people in Saudi Arabia is empowering consumers with the means to pursue experience-rich lifestyles. 

“This financial capacity is enabling a broader cultural shift — especially among younger Saudis — toward valuing experiences over possessions, and prioritizing social, live, and recreational activities as a core part of modern living,” he said. 

Khan added: “What was once a limited and largely outbound market is now being redirected into the local economy — creating a dynamic, self-sustaining entertainment ecosystem at home.”

Commenting on its impact on the real estate sector, Thibault stated that the entertainment industry is reshaping property demand by revitalizing underutilized land, promoting mixed-use development models, and enhancing the attractiveness and viability of secondary cities.

Thibault further noted that developers are increasingly incorporating dedicated entertainment zones and hybrid residential complexes into their plans, viewing them as key drivers of footfall and community engagement.

“This enhances land value, accelerates absorption rates, and encourages long-term leasing. Moreover, large entertainment projects are contributing to the emergence of new urban centers that align with the Kingdom’s regional development goals,” said Thibault. 

Khan pointed out that the entertainment sector has already reshaped the Kingdom’s real estate landscape, both directly and indirectly. 

He said that the entertainment boom has contributed to a rise in property values across the Kingdom, especially in areas adjacent to major attractions. 

Khan further said that large-scale entertainment destinations — such as those under Qiddiya, Diriyah, AlUla, and others — are also catalyzing new hospitality and retail clusters, creating demand for hotels, serviced apartments, dining spaces, and lifestyle-driven real estate. 

“In addition, the rise of cultural and live event venues across second-tier cities and emerging districts is stimulating regional real estate development, encouraging urban sprawl and infrastructure investment beyond the major metropolitan areas,” said Khan. 

In terms of the potential of attracting foreign direct investments, Thibault said that the Kingdom’s entertainment sector presents a “rare greenfield” opportunity in a G20 economy, supported by policy backing, untapped demand and significant scale. 

“As regulatory clarity improves and exit mechanisms mature, we anticipate a rise in joint ventures, venture capital deployment in entertainment startups, and the entry of global operators, making entertainment a cornerstone of the Kingdom’s FDI narrative,” said the Oliver Wyman official. 

Khan said that Saudi Arabia’s sovereign wealth fund is playing a catalytic role — both directly and through its giga-projects and portfolio companies — by investing in and forming strategic partnerships with foreign players across the entertainment spectrum. 

He added that the efforts of PIF are facilitating market entry and localization of globally leading companies in key areas such as theme parks, live entertainment, attractions, and hospitality. 

Large-scale events and festivals drive hotel occupancy and airline bookings.

Guillaume Thibault, partner and head of Sports and Entertainment at Oliver Wyman for India, the Middle East, and Africa

In September, the PIF launched the National Interactive Entertainment Co. to create immersive storytelling experiences rooted in the Kingdom’s heritage and Islamic history. 

The newly established firm, known as QSAS, will focus on developing, owning, and operating world-class interactive exhibitions throughout the Kingdom, the wealth fund said in a statement at that time. 

“The entertainment sector is emerging as a key gateway for FDI in Saudi Arabia, underpinned by strong market fundamentals, government-backed infrastructure, and a robust regulatory push aligned with Vision 2030,” said Khan. 

In January, Saudi Arabia’s General Entertainment Authority unveiled 29 investment opportunities targeting six key sectors of the industry. 

The targeted sectors include facilities, destinations, water parks, adventure parks, virtual reality parks, and e-gaming centers.

Cinema and journey beyond 

Speaking to Arab News, Thibault noted that Saudi Arabia has rapidly emerged as one of the fastest-growing cinema markets in the world. 

He added that this momentum could pave the way for a new wave of industry growth by encouraging local content creation, supported through public-private co-investment models and enhanced by regulatory incentives for film production and post-production infrastructure.

“Elevating local narratives while attracting international studios can simultaneously boost soft power and develop a self-sustaining film economy,” said Thibault. 

Khan echoed similar views and said that Saudi Arabia currently has more than 600 screens and has witnessed a doubling of both ticket sales and box office revenues between 2019 and 2024.

“Expanding cinema access to underserved regions and enhancing operators’ business models — by tapping into diversified revenue streams such as F&B, experiential offerings, and advertising — will be essential for long-term profitability and sector sustainability,” said Khan. 

He added: “Additionally, forging international partnerships through co-productions, location incentives, and distribution alliances would further strengthen the overall industry while enabling knowledge transfer and job creation.” 

Thibault emphasized that Saudi Arabia should ambitiously expand its entertainment landscape beyond traditional formats such as cinema by investing in immersive, experience-driven offerings. 

These include esports arenas, mega-theme parks like those planned in Qiddiya, mixed-reality shows, adventure tourism, and platforms centered around heritage-based storytelling.


The battle for talent: Saudi Arabia’s high-stakes bet on human capital

Updated 12 July 2025
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The battle for talent: Saudi Arabia’s high-stakes bet on human capital

  • Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals

RIYADH: As Saudi Arabia accelerates its transformation under Vision 2030, a critical question has emerged: Can the Kingdom build a homegrown tech workforce strong enough to power its digital ambitions?

From artificial intelligence and smart mobility to fintech and clean energy, the Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals. Yet despite billions in investments and major infrastructure rollouts, supply still lags behind demand.

This challenge, however, is far from ignored.

“We are proud to take human capital development to the next level,” said Minister of Human Resources and Social Development Ahmed Al-Rajhi, during the launch of the National Skills Platform in April 2025. “Technical expertise alone is not enough. Leadership, strategic thinking, and adaptability are equally important, and skilling and reskilling for the workforce is a national priority that all stakeholders should engage in.”

The AI-powered platform connects Saudi job seekers to customized learning pathways, marking a shift toward demand-driven education and training.

Despite billions in investments and major infrastructure rollouts, supply still lags behind demand. (SPA)

A national priority

Education Minister Yousef Al-Benyan, who also chairs the executive committee of the Human Capability Development Program, emphasized the broader purpose behind the Kingdom’s reforms.

“Vision 2030 is not just a roadmap for national transformation — it is a model for how investment in people can drive sustainable progress,” Al-Benyan wrote in an April op-ed for Arab News titled “Vision 2030: Elevating human capability in a changing world.”

Citing the World Economic Forum’s Future of Jobs Report 2025, he noted that while 170 million new jobs will emerge globally by 2030, another 92 million will be displaced. He warned that 44 percent of core skills are set to change within five years, with digital and AI literacy becoming as fundamental as reading and math.

“Without these,” he wrote, “individuals are unable to participate meaningfully in today’s digital economy.”

Yousef Al-Benyan, Saudi education minister. (Supplied)

Scaling up training and inclusion

This outlook is shaping some of Saudi Arabia’s most ambitious workforce initiatives. Among them is the Waad National Training Campaign, launched in 2023 and supported by more than 70 organizations. The program surpassed 1 million training opportunities in its first phase and now targets 3 million by the end of 2025.

Waad’s Women’s Employment Track has been particularly successful, with a 92 percent retention rate in tech roles—contributing to a record rise in female participation across the digital economy.

Waad, Al-Rajhi noted, is an investment in “the promise of human potential.”

Meanwhile, the Future Skills Training Initiative, led by the Ministry of Communications and Information Technology since 2020, has provided training to hundreds of thousands of Saudis in areas like cybersecurity, data science, and cloud computing. Supported by the Digital Skills Framework and private-sector partnerships, it has grown steadily.

One such partnership — a 2023 collaboration with IBM — aimed to train 100,000 Saudis in AI and machine learning.

Ahmed Al-Rajhi, Saudi minister of human resources and social development. (Supplied)

Talent gaps persist

Despite this progress, a 2025 report by Nucamp and the ministry highlighted a 20 percent shortfall between tech job vacancies and qualified local talent. Critical roles such as AI engineers, cloud architects, and data analysts remain in short supply.

“Demand for AI and cloud experts far exceeds supply,” said Ahmed Helmy, managing director for SAP in the Middle East, in an April interview with Asharq Al-Awsat. The result: fierce competition among employers.

To meet short-term needs, Saudi Arabia is tapping into international expertise. The Premium Residency Program, launched in 2021, allows skilled foreign professionals to live and work in the Kingdom without a local sponsor. By late 2023, more than 2,600 had taken advantage of the scheme.

In 2024, five new visa categories were introduced to attract investors, entrepreneurs, and tech specialists. These include provisions that exempt founders from Saudization quotas for their first three years—providing flexibility to scale teams while supporting local hiring in the long term.

“Such incentives allow skilled professionals to have a more stable life and make long-term investments in their careers in Saudi Arabia,” said Raymond Khoury, partner at Arthur D. Little, in May.

Still, officials stress that international hiring is a stopgap — not a substitute.

“While attracting global talent is crucial, sustainable growth depends on balancing international expertise with local knowledge development,” said Mamdouh Al-Doubayan, MENA managing director at Globant.

To that end, foreign hires are increasingly being integrated not just as employees, but as mentors and trainers.

Startups adapt with remote models

In the private sector, startups are turning to remote hiring to bypass local talent shortages. A 2024 study by Wamda found that many Saudi companies are building distributed teams, sourcing tech talent from Egypt, Jordan, and other regional markets. This strategy shortens hiring cycles and enables around-the-clock operations.

The trend aligns with the Kingdom’s Telework Initiative, which certifies employers to offer remote roles to Saudis—especially women and those living outside major urban centers.

Competitive pressures from giga-projects

The hiring challenge became especially acute in 2023. That year, PwC’s Middle East Workforce Survey reported that 58 percent of Saudi firms struggled to fill key tech roles. A MAGNiTT report found that 65 percent of startup founders saw the shortage of senior tech talent as their top obstacle.

A concurrent survey by Flat6Labs noted that many startups were delaying product launches due to staffing shortages, losing talent to mega-projects offering 30 to 50 percent higher salaries.

“Engineers and product managers often defect to deep-pocketed giga-projects that offer salaries 30–50 percent above startup pay,” wrote venture adviser Aditya Ghosh in a November 2023 LinkedIn Pulse column.

Bridging the divide

Education leaders are working to close this gap. Khalid Al-Sabti, chairman of the Education and Training Evaluation Commission, said in a 2024 Arab News interview that Saudi Arabia is aligning its curriculum with global benchmarks.

“We must ensure our graduates meet international standards to compete globally,” he said.

This includes revising curricula, emphasizing hands-on projects, and embedding industry into the classroom through partnership programs. The Talent Enrichment Program, for example, spans 160 countries and offers global certifications to Saudi learners.

Encouragingly, Saudi Arabia’s position in the IMD World Talent Ranking improved in 2023. Companies such as STC, Aramco Digital, and Elm are now hiring directly from local boot camps and training centers — evidence that education and industry are beginning to align.

The road ahead

Ultimately, the success of Saudi Arabia’s tech talent strategy will be measured not just by enrollments or credentials, but by how effectively new graduates are absorbed into the workforce.

If current reforms continue at scale, the Kingdom may not only satisfy its domestic tech demand — but emerge as a regional hub for digital talent.

As Al-Benyan wrote: “By investing in people, fostering global collaboration, and redefining the future of work, Saudi Arabia is demonstrating that human capability is the ultimate driver of progress.”
 


Lebanon bets on Gulf tourists to rescue its collapsing economy

Updated 12 July 2025
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Lebanon bets on Gulf tourists to rescue its collapsing economy

  • With the UAE and Kuwait lifting travel bans, high-end venues pin their hopes on a luxury tourism resurgence

RIYADH: Lebanon’s tourism sector is placing its hopes on international and Gulf visitors to help steer the country through a financial crisis that has gripped the nation since 2019.

As Beirut’s clubs and restaurants increasingly operate in US dollars, the city’s tourism and nightlife have emerged as fragile yet essential pillars of the economy, largely propped up by private investment.

The ongoing financial collapse — now in its sixth year — has created an $80 billion gap in the banking sector, with debt restructuring stalled amid persistent political gridlock.

Since 2019, the Lebanese pound has lost more than 90 percent of its value, while the country’s gross domestic product has contracted by nearly 40 percent.

The 2024 Hezbollah-Israel conflict further devastated the economy, inflicting widespread damage on tourist regions. In response, the World Bank approved a $250 million loan in June as part of a broader $1 billion recovery program, estimating the total cost of the conflict at $7.2 billion, with reconstruction needs reaching $11 billion.

A defiant party amid the ruins

In early June, fireworks lit up the sky above Beirut’s iconic St. Georges Hotel during a retro-themed event hosted by the Tourism Ministry, reviving memories of Lebanon’s golden age in the 1970s — a time when Gulf tourists filled its beaches, mountain resorts, and vibrant nightlife.

Today, that nostalgia is being reimagined for a new generation of affluent travelers. With the UAE and Kuwait lifting travel bans — and Saudi Arabia possibly following — high-end venues are pinning their hopes on a luxury tourism resurgence.

But renewed tensions in the region have cast a shadow over those ambitions. 

Beirut’s tourism and nightlife have emerged as fragile yet essential pillars of the economy, largely propped up by private investment. (AFP)

Lebanon’s tourism sector has seen “some cancellations in hotels, (flight) tickets, and car rentals,” Laura Lahoud, Lebanon’s tourism minister, told Arab News in an interview, acknowledging the impact of regional tensions.

“We are surely affected by the current situation in the Middle East, same as all the region. But if Lebanon remains neutral and does not take sides — as the president and prime minister are insisting — we can save the season,” Lahoud added.

Her optimism hinges on a fragile ceasefire between Iran and Israel. “Hopefully, it will go back to normal,” she said, while emphasizing that festivals and events remain untouched, except for the Beiteddine Festival, where “performers are from the US.”

The dollar hustle 

While Lebanon’s currency has collapsed, poverty has tripled, and the banking sector remains frozen, a parallel economy is flourishing in Beirut’s upscale neighborhoods like Gemmayzeh and Mar Mikhael.

Security is part of the appeal. Army patrols have become more visible in tourist areas, and Hezbollah banners along the airport road have quietly given way to billboards promoting “A New Era for Lebanon.”

But the real driver is privatization. With the state largely incapacitated, private investors — mostly dealing in US dollars — are fueling a boom in luxury tourism, pouring money into beach clubs, rooftop lounges, and curated VIP experiences that operate outside the formal economy.

“The private sector has always been a main driver,” said Lahoud, defending the government’s role as a facilitator rather than a funder. “Our role is to guide, organize, and direct investment into new sectors, new regions, and new ideas.”

Laura Lahoud, Lebanon's minister of tourism. (Supplied)

Yet, some argue this model is unsustainable.

“The dollarized tourism economy has a negative impact on domestic tourism,” warned Jassem Ajaka, an economist and professor at the Lebanese University. 

“Prices become high for residents, especially if pricing is applied equally to tourists and locals. This is unsustainable because the dollar is not the country’s official currency,” he explained in an interview with Arab News.

Geopolitical gambles

The stakes could not be higher. Lebanon’s agricultural and industrial sectors lie in ruins.

Once accounting for 20 percent of GDP, tourism has emerged as the fastest route toward restoring ties with Gulf countries and reviving the economy.

President Joseph Aoun has made outreach to the Gulf a top priority, traveling to Saudi Arabia, Qatar, and the UAE to present Lebanon as “open for business.”

Lahoud emphasized that rebuilding tourist confidence in Lebanon “is the main objective.” 

She outlined plans to achieve this through comprehensive government reforms, coordinated airport improvements, streamlined visa processes for GCC families, shorter checkpoint delays, and the promotion of year-round tourism across all sectors.

“Before some Gulf countries removed the travel ban, Arab tourists were limited to Egyptians, Iraqis, and Jordanians,” said Jean Abboud, president of the Association of Travel and Tourist Agents in Lebanon.

“Demands from Gulf countries were growing steadily, especially from the Emirates, Kuwait, and Qatar. But due to the current conflict between Iran and Israel, everything has changed,” he told Arab News.

The fallout is immediate. “We, as tour operators nowadays, avoid including the south in our programs due to the unexpected problems,” Abboud added.

Lahoud stated that the ministry is collaborating closely with all industry groups to create unique visitor experiences in Lebanon. She added they plan to develop long-term policies and digital tools to support both city and countryside activities, and encourage vital small and medium investments across all regions.

Risky bet

“Over the past couple of years, I’ve noticed a shift toward a younger crowd — but interestingly, they’re spending more,” says Marco Khadra, ambassador at Factory People, a Beirut-based group organizing many of the country’s major music festivals.

“There’s a clear appetite for nightlife, even among younger demographics,” Khadra told Arab News.

But security concerns loom large. “Some people, including international acts, have felt Beirut isn’t safe, and that affects bookings and attendance,” Khadra admitted, adding: “Perception plays a big role in this industry.”

German electronic music record label Keinmusik performing in one of the Factory People's clubs in Beirut in 2023. (Factory People photo)

For bartenders like Lynn Abi Ghanem, who left Beirut for the Gulf, the sustainability of this boom is questionable. “Not in the long run,” she said of the shift toward Gulf tourists. “Tourists come for a short time, but it’s the locals who keep bars running all year. Without them, things feel off and won’t hold up.”

The staffing crisis is another weak link. “There are a lot of talented workers who aren’t paid what they deserve,” Abi Ghanem added. “If things don’t change, many will keep leaving.”

A mirage of recovery? 

Hotels have reported occupancy rates of 80 percent ahead of the summer season, while flights are operating at near capacity with expatriates and Gulf tourists. Yet Lebanon’s recovery remains precarious.

“Even though tourism’s contribution to the gross domestic product increased after the crisis to about 30 percent, this was due to the economic contraction,” explained Ajaka.

“We cannot say the sector has recovered because recovery depends on political stability and investment inflows.”

For now, the party continues, sustained by Gulf investment and the relentless drive of Beirut’s nightlife entrepreneurs.

But as Ajjaka conceded: “The biggest enemy of tourism is any security obstacle.” And in a country where crisis is the only constant, the stakes have never been higher.
 


Startup Wrap — Saudi Arabia leads MENA startup activity as UAE crowns new unicorn 

Updated 12 July 2025
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Startup Wrap — Saudi Arabia leads MENA startup activity as UAE crowns new unicorn 

  • New unicorn emerges in UAE amid mixed funding trends across MENA

RIYADH: Saudi Arabia continued to dominate startup momentum while the UAE saw a new unicorn emerging amid mixed funding trends across the region at the beginning of July.

Digital freight platform TruKKer, headquartered in the Kingdom, has raised $15 million in private credit investment from Ruya Partners through its Ruya Private Capital I fund.  

The funding will be used to support the company’s expansion across regional markets, advance its proprietary artificial intelligenceI-enabled logistics platform, and further consolidate its position in the freight tech space. 

Founded in 2016, TruKKer operates in nine countries and connects over 60,000 transporters with more than 1,200 enterprise clients through its real-time freight marketplace.  

Digital freight platform TruKKer has raised $15 million in private credit investment from Ruya Partners through its Ruya Private Capital I fund. (Supplied)

The new capital follows a $100 million pre-IPO round in 2022 led by Bahrain’s Investcorp, signaling continued investor confidence in the platform’s scaling potential across the Middle East and North Africa. 

Tarmeez Capital raises strategic round to accelerate sukuk innovation 

Saudi fintech startup Tarmeez Capital has raised a strategic round led by Tali Ventures, the corporate venture capital arm of stc group.  

Launched in 2022 by Nasser Al-Saadoun, Tarmeez Capital aims to democratize sukuk issuance, offering a digital platform that it says can process transactions at seven times the speed of traditional methods. 

The platform currently supports over 180,000 users and is focused on enhancing access to Islamic financial instruments.  

The company plans to use the funds to expand its retail sukuk offerings and support Saudi Arabia’s Vision 2030 initiative, particularly in driving financial inclusion across the population. 

Saudi fintech startup Tarmeez Capital has raised a strategic round led by Tali Ventures, the corporate venture capital arm of stc group. (Supplied)

Rekaz raises $5m seed round to expand SaaS for service SMBs 

Riyadh-based Software-as-a-Service company Rekaz has secured $5 million in seed funding to scale its operating system for service-based small and medium-sized businesses.  

The round was led by COTU Ventures, with participation from Impact46, Shorooq Partners, Numrah Capital, and several angel investors. 

Founded in 2017 by Abdulrahman Al-Omran and Abdulaziz Al-Kharashi, Rekaz provides an integrated platform that includes scheduling, subscription management, payments, and customer engagement tools for businesses such as gyms, salons, clinics, and home service providers.  

The company plans to channel the new capital into deepening AI functionality, expanding across the Gulf Cooperation Council markets, and accelerating product development. 

Jahez Group acquires 76.56% stake in Qatar’s Snoonu for $245m 

Saudi Arabia-listed Jahez Group has signed a definitive agreement to acquire a 76.56 percent stake in Snoonu, a leading Qatari e-commerce and delivery company, for $245 million.  

The transaction includes $225 million for a 75 percent equity stake in existing shares and a $20 million capital injection for a newly issued 1.56 percent stake. 

The acquisition marks Jahez’s formal entry into the Qatari market and is expected to enhance operational synergies across logistics, on-demand delivery, and e-commerce across the GCC.  

Snoonu, now valued at over $300 million, will continue to operate under its own brand, led by founder and CEO Hamad Al-Hajjri, who retains a 23.44 percent stake in the company. 

Huspy raises $59m series B to expand in Europe and Saudi Arabia 

UAE and Spain-based property tech platform Huspy has raised $59 million in a series B round led by Balderton Capital, with participation from Peak XV, ExBorder Partners, and Turmeric Capital, as well as BY Ventures, Dara Management, and KE Partners.  

The company plans to expand into six new cities in Spain and launch operations in Saudi Arabia in 2025. 

Founded in 2020 by Jad Antoun and Khalid Ashmawy, Huspy facilitates over $7 billion in annual real estate transactions across its markets.  

It supports real estate agents and mortgage brokers with a suite of digital tools, offering high commissions and automation in property transactions. 

The round represents a reaffirmation of confidence by previous investors Balderton Capital and Peak XV. 

XPANCEO raises $250m to achieve unicorn status 

UAE-based deep tech company XPANCEO has raised $250 million in series A funding at a valuation of $1.35 billion, according to a press release.  

The round was led by Opportunity Venture, which also led the company’s $40 million seed round.  

XPANCEO is developing a multifunctional smart contact lens that integrates augmented reality, health monitoring, night vision, and optical zoom into a lens thinner than a human hair. 

XPANCEO founders Valentyn Volkov and Roman Axelrod. (Supplied)

The funding will accelerate commercialization efforts, global expansion of R&D and product teams, and regulatory and pilot testing.  

The company, founded by physicist Valentyn Volkov and Roman Axelrod, is aiming to replace multiple personal devices with a single wearable form factor. 

BlueFive Capital closes founding round at $120m valuation 

UAE-based investment firm BlueFive Capital has completed its Founding Shareholders Circle round, achieving a valuation of $120 million.  

The round attracted 25 founding shareholders, including members of prominent GCC royal families, global institutional investors, and financial leaders from North America, Europe, and Asia, according to a statement.

Founded in late 2024 by former Investcorp co-CEO Hazem Ben-Gacem, the firm has already amassed $650 million in assets under management.  

BlueFive Capital aims to connect institutional capital with high-growth, underrepresented markets, with a global presence across London, Abu Dhabi, and Riyadh, as well as Singapore and Beijing. 

Icogz raises $1.4m pre-seed to enhance AI-driven BI platform 

UAE-based business intelligence startup icogz has raised $1.4 million in pre-seed funding from angel investors in the UAE and India.  

Founded in 2018 by Amit Tripathi and Vrutika Dawda, the platform uses proprietary algorithms to mine intelligence from corporate data and deliver actionable insights. 

The company plans to use the capital to further develop its AI engine, Aryabot, and scale go-to-market efforts across MENA and Southeast Asia.  

BioSapien extends pre-series A to over $8m 

Health tech startup BioSapien, based in the UAE and the US, has extended its pre-series A round to over $8 million.  

The latest funding was led by Globivest, joining existing backers Global Ventures, Golden Gate Ventures, and Dara Holdings. 

Founded in 2018 by Khatija Ali, BioSapien’s flagship product, MediChip, is a 3D-printed, slow-release drug delivery platform that can be affixed to tissue to minimize systemic side effects.  

The new capital will support R&D, product development, and regulatory expansion. 

Nawy acquires majority stake in SmartCrowd to expand GCC presence 

Egypt-based real estate tech startup Nawy has acquired a majority stake in Dubai’s SmartCrowd, a regulated fractional property investment platform. 

The acquisition follows Nawy’s recent $52 million series A round and signals the company’s entry into the GCC market. 

SmartCrowd, regulated by the Dubai Financial Services Authority, claims to have facilitated over $110 million in transactions and distributed more than $40 million in investor returns.  

The acquisition expands Nawy’s service offerings to include fractional ownership and positions the company as a full-stack proptech platform for the MENA region. 

Startup funding in MENA falls 82% in June amid investor caution 

Startup funding across the MENA region fell sharply in June, dropping 82 percent month on month to $52 million across 37 deals.  

The figure also marks a 55 percent decline compared to June 2024. Notably, 40 percent of the capital came through debt instruments, reflecting cautious investor sentiment amid global macroeconomic uncertainty, according to Wamda’s monthly report. 

The UAE reclaimed its position as the region’s top-funded market, with 13 startups raising $37 million — over 70 percent of total capital.  

Egypt, which led in May, dropped to second with $6.2 million raised across six deals.  

Tunisia followed, buoyed by a single $3.5 million seed round for water tech startup Kumulus. Saudi Arabia saw a dip, raising only $3 million across six deals. 

Fintech remained the leading sector, accounting for 74 percent of total capital across 10 deals.  

Clean tech followed due to the Kumulus deal, while Web3 attracted $2 million across two rounds. Seed stage startups led early-stage activity, raising $10.6 million, while pre-seed rounds totaled $5 million. Only one series A deal was recorded, worth $100,000. 

Startups with B2B models secured 78 percent of funding, while B2B2C and B2C startups lagged. 

Mixed-gender founding teams captured 45 percent of capital but accounted for only four deals. Women-led startups raised just $223,200.
 


Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada

Updated 11 July 2025
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Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada

SYDNEY/LONDON: Global stocks fell on Friday after US President Donald Trump ramped up his tariff war against Canada, leaving Europe squarely in the firing line, sparking a modest investor push into safe havens like gold, while bitcoin hit a new record high.

The Canadian dollar fell after Trump issued a letter late on Thursday that stated a 35 percent tariff rate on all imports from Canada would apply from August 1, adding the EU would receive a letter by Friday.

The US president, whose global wave of tariffs has upended businesses and policymaking, floated a blanket 15 percent or 20 percent tariff rate on other countries, a step up from the current 10 percent baseline rate.

This week he surprised Brazil, which has a trade surplus with the US, with duties of 50 percent, and hit copper, pharmaceuticals and semiconductor chips.

Aside from pockets of volatility in target currencies, stocks or commodities, markets have offered little in the way of reaction to the onslaught, leaving the VIX volatility index at its lowest since late February.

In Europe, the STOXX 600, which has risen 2.2 percent this week, fell 0.7 percent. Futures on the S&P 500 and the Nasdaq fell 0.6 percent, pointing to a retreat from this week’s record highs at the open later.

“The market is becoming a bit numb to these (tariff) announcements, and perhaps it’s not until we see hard data showing an impact that we (will) start to see the market reacting,” City Index strategist Fiona Cincotta said.

“Obviously, we’re getting more information through that does bring with it an element of clarity. Because there is so much uncertainty, there is still this idea that Trump could be open to negotiation, nothing feels ‘final’ still,” she said.

The dollar rose 0.3 percent against the Canadian dollar to $1.3695. The euro, which has lost nearly 1 percent in value since the start of July, was down 0.2 percent at $1.1683.

Earlier in the week, Trump pushed back his tariff deadline of July 9 to August 1 for many trading partners to allow more time for negotiations, but broadened his trade war, setting new rates for a number of countries, including allies Japan and South Korea, along with a 50 percent tariff on copper.

Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, said the tariff rate of 35 percent on Canada was not as bad as feared because most of the imports are still subject to exemptions under the US-Mexico-Canada Agreement.

“Now the tariff rate on imports from the EU ... That’s what we don’t know as yet,” Capurso said. “If you get something similar to (the US-China trade war in April), that’s going to be very destabilising.”

Wall Street indexes posted record closing highs on Thursday as AI chip maker Nvidia made history, bagging a market valuation above $4 trillion.

Gold rose for a third day in a row, up 0.6 percent to $3,342 an ounce, bringing gains for July so far to 1.2 percent. Treasuries got less of a safe-haven boost, as investor concern about the fragility of long-term US government finances prompted a selloff that pushed yields up.

Benchmark 10-year yields rose 3 basis points to 4.38 percent, adding to Thursday’s rise on the back of data that showed jobless claims unexpectedly fell last week.

The yen, which also typically behaves like a safe-haven, has been steadily weakening as the prospects dim for a US-Japan trade deal. The dollar was up 0.4 percent on Friday at 146.76 yen , set for a weekly gain of 1.6 percent, the biggest this year.

Bitcoin jumped 3.8 percent to $117,880, the highest on record.

Investors will be watching second-quarter corporate earnings next week to gauge the impact of Trump’s tariffs from April 2. JPMorgan Chase is due to release results on Tuesday, essentially kicking off the reporting period.


World oil market may be tighter than it looks, IEA says

Updated 11 July 2025
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World oil market may be tighter than it looks, IEA says

VIENNA: The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency said on Friday, as refineries ramp up processing to meet summer travel demand.

The IEA, which advises industrialized countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus.

Despite making those changes, the IEA said that rising refinery processing rates aimed at meeting summer travel and power-generation demand were tightening the market and the latest supply hike from OPEC+ announced on Saturday had not had much effect.

“The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,” the agency said in a monthly report.

“Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.”

Earlier this week, ministers and executives from OPEC nations and bosses of Western oil majors said the output increases are not leading to higher inventories, showing that markets are thirsty for more oil.

Next year, the IEA sees demand growth averaging 720,000 bpd, some 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus.