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.


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

Updated 13 sec ago
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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 40 min 36 sec ago
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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.


Saudi MSME lending surges 31% in Q1 amid digital optimism and financial reform

Updated 58 min 42 sec ago
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Saudi MSME lending surges 31% in Q1 amid digital optimism and financial reform

  • Total value of facilities reached SR383.2 billion
  • 95.12 percent was disbursed by banks

RIYADH: Saudi Arabia’s lending to small, medium, and micro enterprises rose by 31 percent year on year in the first quarter of 2025, according to recent data from the Saudi Central Bank. 

The total value of facilities reached SR383.2 billion ($102.18 billion), up from SR293.43 billion in the same period last year. 

Of this, 95.12 percent was disbursed by banks, while the remaining 4.88 percent came from finance companies, highlighting the formal sector’s growing involvement in SME credit provision. 

Medium-sized companies — defined as those with revenues between SR40 million and SR200 million and 50–249 employees — accounted for the largest share of loans, receiving SR190.18 billion. 

Small enterprises followed with SR139.6 billion, while micro-enterprises received SR53.43 billion. Notably, micro-enterprises saw the fastest growth, with loan volumes surging by 82 percent year on year, compared to 35 percent for small enterprises and 18 percent for medium-sized firms. 

The lending boom reflects the expanding role of SMEs in Saudi Arabia’s economic diversification strategy under Vision 2030. 

Monsha’at, the General Authority for Small and Medium Enterprises, has played a pivotal role through programs like Kafalah — a loan guarantee initiative designed to de-risk lending to SMEs by assuring a portion of the loan value to participating financial institutions. 

This has been instrumental in extending access to credit, particularly for micro and first-time borrowers. 

Despite rising loan volumes, credit access remains a structural challenge. According to the World Bank, SMEs across the Middle East and North Africa region receive only 8 percent of total bank credit, compared to 22 percent in high-income economies. In Saudi Arabia, SMEs accounted for just over 9 percent of total loans in 2024 — far below the Vision 2030 target of 20 percent. 

New players are helping bridge the gap. Saudi-based fintech platform Erad recently raised $16 million in a pre-Series A funding round to expand its Shariah-compliant, data-driven SME financing offering, according to Wamda in April. 
The company, which provides funding in as little as 48 hours, says over 60 percent of its clients are first-time credit takers. Since launch, it has processed more than SR100 million in funding and received over SR2 billion in applications, underscoring pent-up demand for fast, flexible finance. 

Meanwhile, digital optimism among Saudi entrepreneurs is on the rise. According to the 2025 Mastercard SME Confidence Index, 93 percent of surveyed SMEs expressed confidence in the year ahead. 

The adoption of digital payments has risen sharply, with 99 percent now accepting them, up from 88 percent in 2023. SMEs cited faster access to revenues, enhanced credibility with financial institutions, and more streamlined transactions as key benefits. 

Data and AI are also seen as enablers of smarter, more inclusive lending. Nearly 97 percent of surveyed SMEs said better data and analytics tools were essential to scaling operations. 

A growing number are prioritizing AI, automation, and cybersecurity in their growth strategies — trends that align with broader efforts to digitize financial infrastructure. 

Lending models must evolve alongside SME needs. Traditional bank lending often requires fixed-asset collateral and extensive documentation, limiting access for tech-oriented or service-based SMEs, according to a June article by International Banker. 

Risk assessment remains based on backward-looking financials, rather than dynamic indicators like sales or payroll data. Fintechs like Erad are disrupting this model by using real-time revenue data to underwrite loans. 

Globally, the credit gap for SMEs stands at $5.7 trillion, with Gulf Cooperation Council countries accounting for roughly $250 billion of that, according to International Banker. Saudi Arabia’s efforts to close this gap are gaining momentum. In addition to loan guarantees and fintech innovations, open banking frameworks, SME-focused digital banks, and embedded finance models are helping to lower access barriers. 

Vision 2030 sets a clear target: raise SME contribution to GDP from 30 percent to 35 percent. With over 1.8 million SMEs now operating in the Kingdom, financial empowerment of this sector is not just a policy goal — it is a macroeconomic imperative. 

The path ahead will require deeper ecosystem alignment, tailored credit models, and continued innovation. But the first quarter of 2025 has already signaled a strong start — one that reflects both institutional commitment and entrepreneurial momentum across the Kingdom. 


Oil Updates — prices up as demand expectations, economic data lift sentiment

Updated 17 July 2025
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Oil Updates — prices up as demand expectations, economic data lift sentiment

SINGAPORE: Oil prices rose on Thursday, reversing declines in the previous three sessions, buoyed by stronger-than-expected economic data from the world’s top oil consumers and signs of easing trade tensions.

Brent crude futures rose 8 cents, or 0.1 percent, to $68.60 a barrel at 8:30 a.m. Saudi time. US West Texas Intermediate crude futures were up 16 cents, or 0.2 percent, at $66.54. Both benchmarks fell more than 0.2 percent in the previous session.

US President Donald Trump has said letters notifying smaller countries of their US tariff rates would go out soon, and said on Wednesday that he would probably put a blanket 10 percent or 15 percent tariff on smaller countries.

New agreements with Indonesia and Vietnam were announced this week.

Trump also offered renewed optimism about prospects of a deal with Beijing on illicit drugs and hinted that a trade deal with India was very close, while an agreement could possibly be reached with Europe as well.

“Trump softened tones on China and proposed lower tariff rates on smaller countries, which are seen as positive developments in the global trade outlooks,” said independent analyst Tina Teng.

“China’s better-than-expected economic data and the US’s larger-than-expected oil inventory draw have both been bullish factors for oil prices.”

US crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecast for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand.

However, larger-than-expected builds in gasoline and diesel inventories capped price gains. This raised concerns of weakening demand from summer travel, ANZ analysts said in a note on Thursday.

The latest snapshot of the US economy by the central bank, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was “neutral to slightly pessimistic” as businesses reported that higher import tariffs were putting upward pressure on prices.

Meanwhile, China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat US tariffs, easing fears over the state of the world’s largest crude importer’s economy.

Data also showed that China’s June crude oil throughput was up 8.5 percent from a year ago, implying stronger fuel demand.

“Support has come from the positive news pertaining to some easing of trade tensions between China and the US with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia,” said John Paisie, president of Stratas Advisers. 


Most Gulf markets in red on US inflation concerns, rate uncertainty

Updated 16 July 2025
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Most Gulf markets in red on US inflation concerns, rate uncertainty

  • Saudi Arabia’s benchmark index dropped 0.5%
  • Dubai’s benchmark index jumped 1%

DUBAI: Most Gulf markets ended lower on Wednesday as investors weighed US trade policy developments and signs that tariffs may be fueling inflation, while awaiting cues on the Federal Reserve’s interest rate policy. 

US consumer prices rose at the fastest pace in five months in June, raising concerns that tariffs were beginning to pressure inflation. 

On Tuesday, President Donald Trump said letters notifying smaller countries of their tariff rates would be sent soon. 

Saudi Arabia’s benchmark index dropped 0.5 percent, hit by a 0.4 percent fall in Al Rajhi Bank. Oil giant Saudi Aramco fell 0.7 percent. About 217.4 million shares changed hands, compared with an average of 314.3 million shares over the previous 10 sessions. 

Oil prices — a catalyst for the Gulf’s financial markets — fell by about 1 percent, as signs of stronger Chinese crude consumption were outweighed by investor caution about the wider economic impact from US tariffs. 

Dubai’s benchmark index jumped 1 percent to 5,974 dirhams, having crossed the mark for the first time in nearly 17.5 years. Financial stocks led gains with a 3.7 percent jump in Emirates NBD after concluding 3.9 billion dirhams in syndicated loans for Dubai Metro’s Blue Line Project. 

Abu Dhabi index added 0.3 percent, helped by a 2.6 percent increase in top lender First Abu Dhabi Bank. Strong bank earnings lifted sentiment across both Abu Dhabi and Dubai financials. 

Qatar’s stock index inched 0.1 percent lower. In the US, data on Tuesday showed consumer prices rose 0.3 percent in June, in line with forecasts, but the largest gain since January. 

Trump, however, reiterated his call for lower interest rates from the Fed, saying that consumer prices remain low. Monetary policy in the Gulf tends to mirror the Fed’s moves, given the region’s currency pegs to the US dollar. 

Outside the Gulf, Egypt’s blue-chip index, which is trading at a near all-time high, dropped 1 percent, weighed by a 5.3 percent slide in tobacco monopoly Eastern Company. 

Egypt’s progress on structural reforms under an $8 billion International Monetary Fund loan agreement has been mixed, the fund said, citing the public sector’s continued dominance of the economy as a problem.