MENA funding rounds, expansions continue

Hydrogen Utopia specializes in transforming non-recyclable mixed waste plastic into hydrogen and other emission-free energy sources. (Supplied)
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Updated 14 June 2025
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MENA funding rounds, expansions continue

  • Strong momentum in funding follows the trend observed in May

RIYADH: The Middle East and North Africa witnessed several funding rounds for startups in the past week, with firms across multiple industries eyeing geographical expansion. 

The strong momentum in funding follows the trend observed in May, when startups throughout the region secured $289 million across 44 deals, marking a 25 percent rise from April and a 2 percent increase year on year.

In the past week, most of the fundraising rounds happened in the technological sector, an indication of the region’s evolving digital landscape. 

Payrails raises $32 million

Berlin-based payment software company Payrails has raised $32 million in a Series A funding round led by HV Capital’s Growth Fund, with strong participation from existing investors EQT Ventures, General Catalyst, and Andreessen Horowitz, bringing total funding raised to over $52.8 million. 

In a press statement, the company said that the fresh funding is expected to support the company’s product innovation, product roadmap expansion, and commercial growth across Europe and the MENA region.

“We are grateful for the trust our customers and investors have placed in us. Their continued support fuels our vision of empowering enterprises with an all-in-one platform to manage every aspect of payments, unlocking new levels of performance and innovation while driving down complexity and costs,” said Orkhan Abdullayev, co-founder and CEO of Payrails. 

“With this funding, we are doubling down on product development to expand our multi-product platform across the entire payment lifecycle. Our payment operating system is setting a new industry standard for how enterprises manage and optimize payments,” he added.

With the fresh capital, Payrails will also expand its all-in-one platform with new products across the payment lifecycle, from acceptance to payouts. 

Qanooni raises $2m to transform workflows 

UAE-based legal startup Qanooni has raised $2 million in a pre-seeding funding round led by Village Global, Salica Investments, TA Ventures, and several angel investors.

With the new financial assistance, the company seeks to support its team expansion and operations in the UAE and the UK. Through the funding, Qanooni also aims to further modernize legal operations by introducing a range of new tools, including end-to-end agentic workflows and deeper platform customization. 




 Orkhan Abdullayev and Emre Talay’s Payrails raised $32 million in a series A funding round. (Supplied)

Founded by Anuscha Iqbal, Ziyaad Ahmed, and Karim Shiyab, the company integrates directly into the software that lawyers mainly use during work, eliminating the friction of switching platforms or adopting new workflows.

The tools offered by Qanooni help law companies draft and produce documents faster and more accurately, while also making use of generative artificial intelligence that mimics a lawyer’s tone and writing style, which complies with international standards.

Hydrogen Utopia raises $339,000

UK-based Hydrogen Utopia raised $339,000 to expand its waste-to-hydrogen technology in the MENA region. 

Using the fund, the company plans to buy 10 exclusive licenses that give it the right to use InEnTec’s waste-to-hydrogen technology, which will help the firm carry out its operations in the region. 

Founded by Aleksandra Binkowska, the company specializes in transforming non-recyclable mixed waste plastic into hydrogen and other emission-free energy sources. 

Salus Cloud raises $3.7m in expansion push

Salus Cloud, an African-based AI-native DevOps platform, raised $3.7 million in seed funding to scale its operations across the Middle East and Africa. 

The fund round was led by Atlantica Ventures and P1 Ventures, while it also witnessed the participation of Idris Bello of Lofty Inc. Capital and angel investor Timothy Chen of Essence VC. 

Through the funding, the company aims to address a crucial issue in the world of technology, including access to secure, automated software deployment tools. 

With the newly acquired financial assistance, Salus also plans to support its customer base growth across Africa, the Middle East, and underserved tech ecosystems, as well as build partnerships with developer communities and tech hubs. 

VenueX raises $1.2 million

VenueX, an Istanbul-based AI startup, closed a $1.2 million bridge investment round, led by Singapore-based Orbit Startups. The investment is expected to support the company’s aim to expand its operations to Saudi Arabia and the UAE. 

VenueX is also planning to expand its presence in Dubai and Riyadh with new offices, while also creating a sales team in both cities. Founded in 2022, VenueX enables retail brands to manage their digital advertising on all platforms through a unified interface.

Orange Middle East and Africa partners with risingSUD

Multi-service operator Orange Middle East and Africa has signed a strategic partnership agreement with risingSUD to support the establishment and growth of African start-ups in the Orange Digital Center network in the Provence-Alpes-Cote d’Azur region, in the south of France. 

RisingSUD is the economic development agency in charge of attracting projects, investment, and talent to the area.

According to a press statement, the three-year partnership aims to bring together innovation ecosystems in Africa, the Middle East, and the South of France. 

With this partnership, OMEA strengthens its support for the internationalization of start-ups from Africa and the Middle East and reaffirms its commitment to developing the continent’s entrepreneurial ecosystems. 

The partnership will also allow more start-ups from MEA to benefit from risingSUD’s expertise, ranging from project development to access to financing and networking with international partners. 

“By facilitating their establishment and acceleration in France, particularly in the south region, we are giving young African companies the means to accelerate their growth,” said Jerome Henique, CEO of Orange Middle East and Africa. 

“This partnership opens up new economic opportunities and constitutes a real springboard for the development of businesses on both sides of the Mediterranean,” said Bernard Kleynhoff, president of risingSUD and president of the Economic and Digital Development, Industry, Export, Attractiveness and Cybersecurity Commissions of the Sud Region.


Jordan tourism revenues climb 11.9% in H1 despite regional headwinds

Updated 17 July 2025
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Jordan tourism revenues climb 11.9% in H1 despite regional headwinds

  • Saudi Arabia led the region with a 148% rise in international tourism revenue in 2024
  • Spending by Jordanians on outbound tourism rose 3.3% year on year

RIYADH: Jordan’s tourism revenues rose 11.9 percent year on year in the first half of 2025 to reach $3.67 billion, underscoring the sector’s resilience amid geopolitical tensions in the region. 

According to data from the Central Bank of Jordan, the growth came despite a slight setback in June, when monthly revenues fell 3.7 percent to $619.2 million, state-run Petra news agency reported. 

 Turki Faisal Al-RasheedDespite this, Jordan’s performance reflects a broader tourism surge across the Middle East, with a May release by the World Travel & Tourism Council showing the sector added $341.9 billion to gross domestic product and 7.3 million jobs in 2024, with projections of $367.3 billion and 7.7 million jobs in 2025. 

Saudi Arabia led the region with a 148 percent rise in international tourism revenue in 2024, according to its Ministry of Tourism, while Oman, the UAE, and Qatar continued to attract strong visitor flows through investment, connectivity, and major events. 

Citing the central bank data, Petra said: “Tourism revenues from Asian visitors surged by 42.9 percent during the first half of the year, while revenues from European tourists increased by 35.6 percent, Americans by 25.8 percent, Arabs by 11.5 percent, and other nationalities by 43.0 percent.”  

It added: “Conversely, revenues from Jordanian expatriates visiting the Kingdom registered a modest decline of 0.8 percent over the same period.” 

Spending by Jordanians on outbound tourism rose 3.3 percent year on year in the first half of 2025, reaching $999.7 million, despite a 22.7 percent decline in June alone, when spending fell to $195.6 million. 

This comes on the back of a strong start to 2025, with Jordan welcoming 1.51 million visitors in the first quarter — a 13 percent increase from the same period last year — while receipts rose 8.85 percent to 1.22 billion Jordanian dinars ( $1.72 billion), according to the Ministry of Tourism and Antiquities’ first-quarter report. 

The recovery was further supported by the return of air connectivity, which had nearly disappeared in 2024. New agreements with European carriers expanded the number of low-cost direct routes to 25 this year, including 20 to Amman for the summer and five to Aqaba in the winter. These routes are expected to bring in around 270,000 travelers, the report added. 

Looking ahead, the ministry said it is developing a new National Tourism Strategy for 2025–2028, building on the previous plan and aligning with the country’s Economic Modernization Vision. 

The updated roadmap aims to diversify source markets, including China, India, Russia, Africa, and Southeast Asia, and promote high-potential segments such as medical, wellness, faith-based, adventure, and meetings, incentives, conferences, and exhibitions, or MICE, tourism. 


EU pledges $46.4bn for MENA renewables, borders, and migration

Updated 17 July 2025
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EU pledges $46.4bn for MENA renewables, borders, and migration

JEDDAH: Renewable energy, border security, and migration pathways in the Middle East and North Africa will receive €42.5 billion ($46.4 billion) from the EU from 2028, it has been announced.

This doubled financial commitment, under a new funding instrument, aims to enhance stability and cooperation in the region.

Speaking during a press conference in Brussels on July 17, EU Commissioner for Democracy and Demography Dubravka Suica said the increased budget reflects the bloc’s strategic shift toward deeper cooperation with countries in region.

“This is a strong financial toolbox, with which we will invest in stability, security and prosperity, through mutually beneficial partnerships with our Southern neighbors in the Middle East, North Africa and the Gulf,” she said, emphasizing that the Mediterranean is not only a region of challenges but also one of opportunities.

Suica further noted that the EU will support partner countries in addressing the underlying causes of socio-economic fragility, which she said are central to political instability and radicalization.

She added that the bloc will also confront the challenges of the green transition by investing in renewable energy projects, benefiting citizens on both sides of the Mediterranean.

“These increased funds will enable us to respond more effectively to an increasingly volatile geopolitical context right at our doorstep,” the commissioner said.

She stressed that the stability and prosperity of the Mediterranean are directly linked to Europe’s own.

“Their safety is our safety. Their success is our shared success. Their protection of borders is also ours.”

Suica described the Multiannual Financial Framework as an instrument that will strengthen the union, both internally and internationally.

“This new framework enables us to better protect our interest on a global stage and protect our values and interests in an increasingly complex geopolitical context,” she concluded.


Closing Bell: Saudi bourses end week in red at 11,007

Updated 17 July 2025
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Closing Bell: Saudi bourses end week in red at 11,007

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Thursday, shedding 31.76 points, or 0.29 percent, to close at 11,006.98.

The benchmark index recorded a total trading turnover of SR4.19 billion ($1.12 billion), with 125 stocks advancing and 117 declining.

The Kingdom’s parallel market Nomu also slipped, losing 50.11 points to close at 27,294.97.

The MSCI Tadawul Index dropped 0.32 percent to settle at 1,410.87.

LIVA Insurance Co. was the best performer on the main market, with its share price surging 9.94 percent to SR13.93.

Emaar The Economic City saw its shares rise by 5.15 percent to SR13.69, while Alistithmar AREIC Diversified REIT Fund gained 4.57 percent to reach SR9.15.

Tourism Enterprise Co. recorded the steepest decline, falling 6.45 percent to SR0.87.

On the announcements front, Lana Medical Co. said it secured multiple contracts worth SR57.1 million from the Ministry of Health.

According to a Tadawul statement, the first contract, valued at SR53.5 million, involves the collection and storage of hazardous waste at health centers, hospitals, and specialized facilities in the Al-Jouf region and Al-Qurayyat Governorate.

The second contract, worth SR3.6 million, covers the transportation of medical waste to the Riyadh First Health Cluster.

The company stated that the impact of these 60-month contracts will be reflected in its financial results starting in the fourth quarter of 2025.

In a separate filing, Lana Medical Co. announced a two-year agreement valued at SR10 million with the National Unified Procurement Co. to manage medical waste.

Shares of Lana Medical Co., listed on the Nomu parallel market, rose 7.98 percent to close at SR36.


Saudi Arabia’s retail real estate growth prospects strong: S&P Global 

Updated 17 July 2025
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Saudi Arabia’s retail real estate growth prospects strong: S&P Global 

RIYADH: International retail brands attracted by social and economic shifts in Saudi Arabia are set to deliver real estate sector growth to the Kingdom, according to an analysis.

In its latest report, S&P Global stated that the residential real estate sector in the nation also appears strong, with young Saudi families relocating to cities in search of work opportunities. 

Strengthening the real estate sector is one of the crucial goals outlined in Vision 2030, as Saudi Arabia continues to diversify its economy away from oil and position itself as a global business and tourist destination. 

The Kingdom’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.

In its latest report, S&P Global said: “Saudi retail real estate growth prospects are strong. Significant social and economic changes in the Kingdom are making it a major target market for international brands in the fashion, luxury, and food and beverage segments. As a result, demand for premium retail space is increasing.” 

In June, global real estate consultancy Knight Frank, also echoed similar views, stating that Saudi Arabia’s commercial real estate sector is witnessing exponential growth, with rents for Grade A office spaces in the Kingdom’s capital reaching SR2,700 ($719.95) per sq. meter by the end of the first quarter, representing a 23 percent rise compared to the same period in the previous year. 

In its latest analysis, S&P Global noted that Saudi Arabia’s retail landscape is expected to face several challenges, including oversupply, particularly in the shopping mall sector. 

“Saudi retail real estate could face a supply wall. Knight Frank forecasts Riyadh’s supply to grow by 50 percent by 2027 and Jeddah’s to grow 75 percent over the same period. This could lead to rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies,” said S&P Global. 

The US-based agency further stated that the Kingdom’s retail real estate sector has strong growth prospects, provided that careful planning and market positioning are implemented, which are expected to help mall owners ensure long-term success.

In a broader context, the report projected that Dubai and Abu Dhabi are experiencing resilient demand and modest rental growth for retail real estate, with prime super-regional malls continuing to dominate the market, which has led to mall owners expanding their offerings.

S&P Global added that Dubai’s commercial real estate sector is booming, as vacancy rates remain at an all-time low of 8.6 percent, and demand for grade-A offices drives up rentals. 

“Supportive regulations for businesses, dynamic economic environment, and the low tax regime sustains the city’s attractiveness for global businesses and family offices,” said the report. 

S&P Global cautioned that oversupply in the oil market will continue to outweigh slow oil demand growth through 2025 and beyond, and this could negatively impact the growth of real estate sectors in both Saudi Arabia and Dubai. 

“Unfavorable tariffs could also lead to economic slowdown and weaker market sentiment. This could have some impact on residential prices and rents as we believe there is good correlation, despite Dubai’s economy being less reliant on oil. Saudi Arabia and its spending on Vision 2030 remain highly dependent on oil prices,” added the report. 

According to the analysis, the current ceasefire between Israel and Iran has reduced immediate regional credit stress; however, an escalated, prolonged geopolitical conflict could lead to an expatriate exodus from the region, severely impacting real estate prices and rents.


Syria announces sweeping tax reforms to boost transparency, investment

Updated 17 July 2025
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Syria announces sweeping tax reforms to boost transparency, investment

RIYADH: Syria’s Finance Ministry has announced a major overhaul of the country’s tax system, set to take effect in early 2026, as part of broader efforts to modernize fiscal policy, enhance transparency, and attract investment.

According to a statement carried by the state-run SANA news agency, the draft law for the new income tax system is currently open for public consultation until July 30. The reforms are designed to ease the burden on taxpayers, promote fairness, and stimulate economic activity through clearer and more equitable rules.

Under the proposed system, individuals earning less than $12,000 annually will be fully exempt from income tax, in a move aimed at supporting low-income earners.

Corporate tax rates will be tailored by sector, replacing the current “flat income committees” with a more transparent and structured mechanism.

The reforms will also unify multiple charges into a single tax fee to eliminate double taxation, while offering deductions for taxpayers who make verified social contributions.

Enhanced digital systems—including mandatory electronic invoicing and QR code integration—will be introduced to curb tax evasion and strengthen compliance.

To improve trust and streamline the resolution of tax disputes, the ministry plans to implement simplified procedures, with complex cases referred to a specialized tax court. Notably, the burden of proving income sources will shift from the taxpayer to the tax authority—a significant change from the existing framework.

In addition, incentives will be introduced for timely payment, and a separate initiative will address the settlement of outstanding tax dues to protect public funds without overburdening taxpayers.

The Finance Ministry said the changes reflect its commitment to building a fair, flexible, and modern tax environment that can support Syria’s broader economic recovery.