MENA funding rounds, expansions continue

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

MENA funding rounds, expansions continue

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 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.


Closing Bell: Saudi main index slips to close at 10,866 

Closing Bell: Saudi main index slips to close at 10,866 
Updated 21 August 2025

Closing Bell: Saudi main index slips to close at 10,866 

Closing Bell: Saudi main index slips to close at 10,866 

RIYADH: ’s Tadawul All Share Index edged lower on Thursday, slipping 11.24 points, or 0.10 percent, to end at 10,866.83. 

The benchmark’s total trading turnover stood at SR5.21 billion ($1.38 billion), with 87 stocks advancing and 159 declining. 

Similarly, the Kingdom’s parallel market Nomu fell 94.16 points, or 0.35 percent, to settle at 26,535.79, as 42 stocks gained while 51 retreated. 

Meanwhile, the MSCI Tadawul Index inched up 2.43 points, or 0.17 percent, to close at 1,409.05. 

The best-performing stock of the day was Saudi Basic Industries Corp., which jumped 7.65 percent to SR61.90. 

Other notable gainers included Sahara International Petrochemical Co., up 5.32 percent to SR20.01, and Fawaz Abdulaziz Alhokair Co., which climbed 5.17 percent to SR23.99. 

On the other hand, Halwani Bros. Co. posted the sharpest loss, falling 4.92 percent to SR43.26. 

Jahez International Co. for Information System Technology fell 3.84 percent to SR22.31, while Saudi Awwal Bank declined 3.73 percent to SR30.96.   

On the corporate announcements front, Axelerated Solutions for Information and Communication Technology Co. released its interim financial results for the period ending June 30.

According to a Tadawul statement, the company posted a net profit of SR33.8 million during the first half of the year, up 94 percent from the same period last year.  

The profit growth was mainly attributed to a 91 percent surge in gross profit to SR45.4 million, compared to SR23.8 million a year earlier, alongside an SR86.8 million increase in revenue and an SR1.8 million boost in other income.   

The company’s board also recommended distributing SR8.4 million in cash dividends to shareholders for the first half of 2025.

A Tadawul filing showed that 28 million shares are eligible, with a dividend of SR0.30 per share, equivalent to 30 percent of the share’s par value. 

Axelerated Solutions closed the session at SR28, marking a 3.70 percent gain. 

Arriyadh Development Co. announced an update on its partnership agreement with Saudi Real Estate Co. and Riyadh Holding Co. to establish a special-purpose vehicle to develop educational complexes.  

Arriyadh Development Co. ended the day at SR32.70, up 0.86 percent.  


GCC Islamic insurers see growth but face 2025 profit squeeze, S&P says

GCC Islamic insurers see growth but face 2025 profit squeeze, S&P says
Updated 21 August 2025

GCC Islamic insurers see growth but face 2025 profit squeeze, S&P says

GCC Islamic insurers see growth but face 2025 profit squeeze, S&P says
  • Saudi insurers led the surge, generating around $960 million last year
  • Credit ratings for Islamic insurers will remain largely stable

RIYADH: The Gulf Cooperation Council’s Islamic insurance sector is set to maintain around 10 percent annual growth in 2025 and 2026, buoyed by population expansion, infrastructure spending, and regulatory reforms, according to S&P Global Ratings. 

, the region’s largest Islamic insurance market, will continue to drive growth as Vision 2030 megaprojects fuel demand for coverage, S&P said in its latest white paper. 

Islamic insurance, or Takaful, has expanded rapidly across the GCC in recent years, logging 24 percent to 28 percent growth in 2022 and 2023. Strong government backing, mandatory health insurance regulations, and a rising awareness of Sharia-compliant financial products have supported the sector’s expansion. 

“Islamic and Takaful insurers in the GCC region continue to benefit from favorable growth prospects, and we therefore expect 2025 to be another year with solid top-line growth,” S&P said. 

However, the agency cautioned that “heightened competition in motor and medical lines, primarily in , the largest Islamic insurance market in the region, will likely weigh on overall earnings in 2025.” 

The sector posted record earnings in 2024, with aggregate net profit rising to about $1.1 billion, up from $940 million in 2023. Saudi insurers led the surge, generating around $960 million last year versus $853 million a year earlier, while earnings in other GCC markets climbed to over $120 million from $87 million. 

In 2024, insurers in the GCC region excluding recorded 13 percent revenue growth, while the Kingdom experienced a 14 percent expansion. 

S&P said that net earnings for the sector in the first half of 2025 fell 35 percent year on year, citing a 40 percent drop in profits in the Saudi market and weaker earnings in other regional markets. 

This is mainly attributed to “heightened competition in motor and medical lines, as well as a decline in investment returns,” it added. 

Strong credit ratings 

According to S&P, credit ratings for Islamic insurers in the GCC will remain largely stable over the next 12 months, as most players are well capitalized. 

The report added that total shareholder equity in the sector rose to approximately $8.5 billion in 2024, up from $7.5 billion in 2023, supported by strong earnings and capital injections. 

S&P Global Ratings projects that overall credit conditions for Islamic insurers will remain relatively stable over the next 12 months. However, it said that “some loss-making players will continue to face challenges relating to solvency and other regulatory demands,” which could prompt them to pursue mergers and acquisitions or raise capital to meet their needs. 

In June, Fitch Ratings echoed similar views, saying that mergers and acquisitions are set to accelerate in ’s insurance industry as many firms struggle to meet new capital requirements or remain profitable amid intense competition and rising costs. 

Fitch also noted that several smaller insurers are already in discussions with larger rivals to strengthen their capital positions and ensure long-term survival. 

“Consolidation is particularly evident among smaller and midsize players in and the UAE, as economies of scale become more important,” S&P said in its latest report, adding that thin capital buffers and rising regulatory and solvency requirements will continue to drive consolidation in the sector. 

Potential challenges 

S&P warned that a flare-up in the conflict between Israel and Iran, along with any regional escalation, could negatively affect business sentiment across the Middle East, including the GCC, and pressure insurers’ earnings. 

Although global tariff disputes have so far had minimal impact on GCC economies and insurers, S&P cautioned that ongoing volatility in capital markets could weigh heavily on earnings if trade tensions escalate. 


UAE central bank boosts gold reserves by 26% to $7.9bn in first 5 months

UAE central bank boosts gold reserves by 26% to $7.9bn in first 5 months
Updated 21 August 2025

UAE central bank boosts gold reserves by 26% to $7.9bn in first 5 months

UAE central bank boosts gold reserves by 26% to $7.9bn in first 5 months

RIYADH: Gold reserves held by the Central Bank of the UAE increased by 25.9 percent during the first five months of 2025 to reach 28.93 billion dirhams ($7.9 billion).

The regulator’s statistical bulletin revealed that the UAE’s gold holdings also edged up on a monthly basis, recording a 0.49 percent rise in May to 28.79 billion dirhams, compared to 28.65 billion dirhams at the end of April, Emirates News Agency reported.

In addition to stronger gold reserves, the bulletin showed that demand deposits grew significantly, surpassing 1.16 trillion dirhams by the end of May. This was an increase from 1.10 trillion dirhams at the end of 2024.

Of the total, 892.57 billion dirhams were held in local currency, while 274.33 billion dirhams were in foreign currencies.

Savings deposits also registered a sharp increase, climbing to 359.57 billion dirhams by the end of May from 317.48 billion dirhams in December. Local currency savings accounted for 305.51 billion dirhams, while the figure for foreign currency stood at 54.06 billion dirhams.

Furthermore, time deposits surpassed the 1 trillion dirham mark for the first time by the end of May. Of this figure, 614.85 billion dirhams were denominated in local currency, while 398.35 billion dirhams were in foreign currencies.

The UAE’s banking sector continued its steady expansion, with total assets, including bankers’ acceptances, rising 0.6 percent in April to 4.75 trillion dirhams.

The increase was driven by resilient credit demand and a surge in non-resident deposits, Emirates News Agency reported.

Across the Gulf, banking performance was mixed. Kuwait posted a 6.7 percent year-on-year rise in assets to 93.5 billion dinars ($303 billion) in March, while saw a 7.4 percent jump to SR5.3 trillion ($1.41 trillion) in April. 

Qatar, however, recorded a marginal 0.1 percent monthly decline in total assets to 2.07 trillion riyals ($559 billion), reflecting weaker domestic holdings.

Global prices

Gold prices edged lower on Thursday after the US Federal Reserve’s July meeting minutes showed a majority consensus on holding interest rates steady.

Spot gold was down 0.2 percent at $3,340.09 per ounce, as of 11:02 a.m. Saudi time. US gold futures for December delivery also lost 0.2 percent to $3,382.30.

Minutes from the Fed’s July meeting showed the policymakers who dissented against last month’s decision to keep interest rates unchanged were alone in advocating for a rate cut.

Non-yielding gold typically performs well in a low interest rate environment.

The Fed has held rates steady since December, although investors still expect an 81 percent chance of a quarter-point cut by September, according to the CME’s FedWatch tool.

Fed Chair Jerome Powell is expected to speak on Friday at the Aug. 21-23 Jackson Hole symposium, with investors watching whether he backs measures to bolster the labor market or focuses on curbing inflation.


Saudi Industry Ministry, SIC partner to empower innovators

Saudi Industry Ministry, SIC partner to empower innovators
Updated 21 August 2025

Saudi Industry Ministry, SIC partner to empower innovators

Saudi Industry Ministry, SIC partner to empower innovators

JEDDAH: Saudi entrepreneurs and innovators in the industrial and mining sectors are set to gain support through a new partnership aimed at driving development, creativity, and digital transformation.

The Ministry of Industry and Mineral Resources signed a cooperation agreement with the Saudi Innovation Club to implement joint programs and initiatives as part of efforts to empower national talent in the two sectors, the ministry said in a statement on Aug. 21.

The agreement, signed under the patronage of Assistant Minister for Planning and Development Abdullah Al-Ahmari, aims to foster new developments and create opportunities for pioneers. It was finalized during a ministry meeting under the ‘Innovative Industrial and Mining Products Program’ connecting inventors with service providers, incubators, and accelerators.

This initiative aligns with the ministry’s wider strategy to encourage advancement in industrial and mining activities, boost global competitiveness, and strengthen their role in diversifying the Kingdom’s economy.

It builds upon the Innovative Industrial and Mining Products Program, first unveiled in December, which focuses on accelerating sectoral progress and driving digital evolution within these industries.

“The agreement sets a joint framework for the two parties to organize activities and initiatives that foster a culture of innovation and showcase innovators’ success stories,” the statement said.

It added that the accord opens multiple avenues of collaboration, including sharing expertise, arranging business forums, conducting workshops, and launching initiatives to empower entrepreneurs and emerging talents.

The agreement was signed by Mohammed bin Saeed Al-Dughaim, general manager of the ministry’s innovation management department, and Majid bin Mohammed bin Anzan, chairman of the Saudi Innovation Club.

The ministry emphasized that this partnership underscores its commitment to advancing creative practices, raising public awareness, and creating a supportive environment for innovators in line with the Kingdom’s economic transformation goals.

According to the ministry, the Innovative Industrial and Mining Products Program represents “a key step toward fostering innovation in the industrial and mining sectors” and reflects its commitment to developing new solutions that “support the Kingdom’s industrial transformation and stimulate the growth and sustainability of the mining sector.”

Commenting on the program when first announced, Minister of Industry and Mineral Resources Bandar Alkhorayef said the program seeks to “provide an integrated environment that enables innovators to transform their ideas into executable and competitive products locally and internationally.”

He noted that the initiative will drive advancement — a cornerstone of economic growth — and advance digital transformation in the industrial and mining sectors, the minister stated in a post on his X handle at that time.


Kuwait inflation edges up to 2.39% in July on higher food, beverage prices 

Kuwait inflation edges up to 2.39% in July on higher food, beverage prices 
Updated 21 August 2025

Kuwait inflation edges up to 2.39% in July on higher food, beverage prices 

Kuwait inflation edges up to 2.39% in July on higher food, beverage prices 

RIYADH: Kuwait’s inflation inched higher in July as rising food and beverage costs pushed the annual rate to 2.39 percent, up from 2.32 percent in June, data from the Central Statistical Bureau showed. 

The food and beverages group, a key component of the index, climbed 0.63 percent month on month, while miscellaneous goods and services rose 0.43 percent and clothing and footwear gained 0.27 percent. 

The latest data follows signs of economic recovery, with real gross domestic product expanding 1 percent year on year in the first quarter of 2025, ending seven consecutive quarters of contraction, according to the National Bank of Kuwait. The rebound has been supported by steady improvements in the non-oil sector. 

In its latest report, the Central Statistical Bureau stated: “The Consumer Price Index (CPI) increased by 0.22 percent at 137.2 as a result of the increase in prices of some major groups in the movement of the indices.” 

It added: “Prices of recreation and cultural group increased by 0.15 percent because of an increase in prices of audio-visual, photographic and information and tools and other recreational equipment, gardens and pets.” 

Prices of furnishings and household maintenance edged up 0.14 percent, reflecting cost increases in home textiles, glassware, and household utensils. By contrast, the transportation group dipped 0.07 percent, weighed by lower operating costs for personal vehicles. 

Housing, health, communication, education, and restaurants and hotels categories remained flat during the period. 

In March, Fitch Ratings reaffirmed Kuwait’s AA- long-term foreign currency rating with a stable outlook, citing its strong fiscal position and external balance sheet.

The US-based agency noted that the country’s external balance sheet remains the strongest among all Fitch-rated sovereigns, with net foreign assets projected to rise to 601 percent of GDP in 2025, up from an estimated 582 percent in 2024. 

This comes as Kuwait’s non-oil business activity continues to grow. The latest Purchasing Managers’ Index, released earlier this month by S&P Global, showed the PMI rising to 53.5 in July from 53.1 in June, signaling a solid monthly improvement in the non-oil private sector. 

S&P Global noted that inflationary pressures eased in July, with purchase prices and staff costs rising at their slowest pace in six and four months, respectively.

The survey also showed that Kuwaiti companies remain strongly optimistic about future growth, expecting output to rise further in the remaining months of the year.