Startups in the Middle East and North Africa succeeded in raising more than $101 million in August, an increase of 6% over the previous month, and a year-on-year increase of more than 73%.
The recent increase in the number of financing startups in the region comes in light of the relative decline and fluctuation in the volume of financing witnessed in financing startups in the region since last year. The value of startups' deals was divided into 26 deals.
Distribution of startup financing by country
Start-up companies topped the list of funding with about $54 million, distributed among 8 companies, noting that more than half of the funding ($27 million) went to the “Rawaa Inventory Management” company deal, and “Fly Akeed” travel technology services company also succeeded in raising $15.2 million. Million dollars.
Emirati startups came in second place, with a total funding of about $44 million distributed among 9 startups.
In continuation of the decline in the volume of financing for Egyptian startups, it came in third place, with a total financing not exceeding $1.5 million distributed over 5 financing deals, which represents a decrease of more than 406% compared to last month. Note that the number of financing deals for Egyptian start-ups for the month of August reached 5 deals, about half of which went to Talents Arena, a start-up company specializing in recruitment using artificial intelligence tools, as the size of the deal it obtained amounted to about 750 thousand US dollars.
In fourth place were Tunisian startups with a total funding of more than half a million dollars, followed by Moroccan and Palestinian startups, with a total funding of about 155 and 100 thousand dollars, respectively.
Distribution of financing for startup companies according to sectors
Although the financial technology sector was at the forefront in the volume of financing in 2022 and throughout almost all of 2023, the volume of financing deals for this sector declined in August, recording $5.9 million to occupy fourth place, noting that the financial technology sector remained..The number of financing deals reached 5 deals.
The sector that ranked first in the volume of funding for the month of August was the logistics services sector, in which startup companies raised about $32 million, equivalent to a third of the total funding for startup companies for the same period.
The logistics services sector came to the fore thanks to the previously mentioned “Rawaa Inventory Management” deal.
While the sectors of travel and tourism technology, health technology, and websites (Web3) received almost equal funding, amounting to about $15 million for each sector.
Cities in the UAE are now among the fastest-growing wealth markets in the world due to their strong oil and gas industries, with millionaire populations in Dubai, Abu Dhabi and Sharjah jumping double digits to reach close to 100,000 this year, new data showed.
In the six months to June 30, the total number of high-net-worth individuals (HNWIs) with fortunes of at least $1 million in Dubai rose by 18% to 67,900, making the emirate on track to break into the world's top 20 wealthiest destinations by 2030, according to the latest Henley Global Citizens Report, which tracks private wealth migration trends worldwide.
In Abu Dhabi, the HNWI population jumped 16% to 23,800, while Sharjah's total number of wealthy residents went up by 20% to 3,700.
Overall, the combined HNWI population in the three cities surged to 95,400.
The report features data from global wealth intelligence firm New World Wealth. Overall, New York emerged as the wealthiest city on earth with 345,600 millionaires.
Second on the list is San Francisco Bay area, followed by London, Singapore, Los Angeles & Malibu, Chicago, Houston, Beijing and Shanghai in the top ten.
Strong oil and gas sectors
According to Andrew Amoils, Head of Research at New World Wealth, the millionaire population of Dubai is expected to break into the top 20 wealthiest cities by 2030.
"Cities with strong oil and gas industries are performing especially well this year, including the likes of Riyadh, Sharjah, Luanda, Abu Dhabi, Doha and Lagos," Amoils said.
"Others on the fastest-growing list include Lugano, a Swiss hotspot for affluent retirees, Bengaluru, the 'Silicon Valley of India' and Hangzhou, one of China's most scenic cities."
Residents with over $10 million wealth
Among Dubai's rich population, at least 3,170 are multi-millionaires with wealth of at least $10 million. The city is also home to 202 centi-millionaires with fortunes of at least $100 million, as well as 13 billionaires.
In Abu Dhabi, at least 1,120 are multi-millionaires, while 67 fall under the centi-millionaire segment. Three residents are billionaires. Sharjah accounts for 110 multi-millionaires and four centi-millionaires.
Source: Zawya
The United Arab Emirates, Saudi Arabia and Egypt were ranked the first three, respectively, in the Arab world in attracting Foreign Direct Investment (FDI) for 2021, with investments topping $45 billion.
FDI inflows to Arab countries, which rose by 42% in 2021, amounted to about $53 billion, 6.3% of which represented the total inflows to developing countries and 3.3% of the total global inflows that stood at about $1.58 trillion.
Asharq Al-Awsat obtained a copy of an annual report released by the Arab Investment and Export Credit Guarantee Corporation (Dhaman) that studied the volume of FDI in the region.It showed that the first five countries accounted for more than 96% of the total inflows.
The UAE topped the list by attracting $20.7 billion, followed by Saudi Arabia with $19.3 billion, then Egypt with $5.1 billion.
Oman came fourth with $3.6 billion, while Morocco was fifth with $2.2 billion.
Data released in the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2022 indicated that FDI balances received by Arab countries increased in late 2021 by about $53 billion, representing 5.4% compared to 2020, from $958 billion dollars to more than one trillion dollars in 2021.
The first three countries accounted for about 56.5% of the total cumulative balances. Saudi Arabia topped the Arab ranking in cumulative balances inflows with $261 billion and a share of 26% of the Arab total FDI inflows, followed by the UAE with a value of $171.6 billion and a 17% share, then Egypt with a value of $137.5 billion and 13.6% share.
Meanwhile, FDI outflows from Arab countries to various world countries rose by 46% to $52 billion.
Saudi Arabia and the UAE contributed to about 90% of these outflows, with shares amounting to 46.1% and 43.5%, respectively. Kuwait came third with 7%.
In this context, FDI balances issued by Arab countries increased by 10.2% to $543.4 billion by late 2021. The UAE, Saudi Arabia and Qatar accounted for 76.5% of the total balances, with shares amounting to 39.6%, 27.9% and 8.8%, respectively, followed by Kuwait with a 6.6% share.
In terms of cross-border merger and acquisition deals that the Arab countries concluded in 2021, the report showed that the value of sales deals in 12 Arab countries amounted to about $30 billion, with a 4.1% share of the global total value of $728 billion.
These deals were mainly focused in Saudi Arabia, Kuwait and the UAE with 81.5%, 13.6% and 5.1%, respectively.
The value of purchase deals for 12 Arab countries amounted to more than seven billion dollars, to which the UAE contributed with $6.1 billion and an 86.6% share of the total deals in the Arab region.
source: ASharq AL- Awsatwsat
Some of the major driving factors are the construction sector's growth in the region, increasing demand for cranes, and developing trends toward automation and telematics.
The GCC construction equipment/machinery rental market, which was valued at $3.77 billion in 2020, is poised for solid growth and is expected to reach $5.48 billion by 2026, growing at a CAGR of 6.15% over the next five years, said a report by ResearchAndMarkets.com.
The Covid-19 pandemic hindered the growth of construction machinery/equipment market across GCC region owing to shut down of manufacturing facilities and halt of investments into infrastructure sector.
However, post-pandemic, as economic activities resumed, the market expected to gain momentum during the forecast period, it stated.
Some of the major driving factors are the construction sector's growth in the region, increasing demand for cranes, and developing trends toward automation and telematics.
According to the report, the renting or leasing of construction equipment has been on the rise, owing to an effort to lower the equipment purchase and maintenance expenses.
Apart from the cost, there are also other benefits associated with renting of the construction equipment. Rental companies provide the machinery, along with the required professional machine operators and drivers, thereby ensuring a hassle-free operation, it added.
Moreover, advancement in the rental method of construction machinery such as digital platforms is providing ease to the consumer, which is further also acting as a big factor for the growth of the construction machinery market in GCC countries.
The construction sector is witnessing growth in the GCC countries such as the UAE, Saudi Arabia, Qatar, and Bahrain, due to the arise in the construction projects related to roads, buildings, hotels, stadiums, and other infrastructure.
In recent years, renting of earth moving equipment, such excavators, motor graders and loaders are on the rise due to growing infrastructural projects related to road and highway networks in countries such as Saudi Arabia, owing to the penetration of more construction contractors in the country due to Saudi Vision 2030.
For instance, in February last year, the Saudi Crown Prince Mohammed bin Salman ordered the development of main roads in the heart of Riyadh in order to upgrade the city's transportation system.
The project objective is to transform Riyadh to be a major hub in providing sustainable transportation services as well as logistics services in the Middle East, stated the report.
The programme will work on developing junctions between Riyadh's ring roads and main routes. It will develop 400 km of the road network, by adding new roads and upgrading existing junctions.
source: zawya
With the opening of the world's greatest event a few hours away, businesses will no doubt have a keen eye on events planned at the 4.38 sq.km. site
As world exhibitions go, the timing of Expo 2020 Dubai could not be any better.
Organised under the theme “Connecting Minds, Creating the Future”, Expo 2020 – making history as the largest event ever held in the Arab World – is not only a six-month extravaganza and cultural spectacle for visitors; it is more importantly an environment for countless business opportunities.
With the opening of the mega event hours away, businesses will no doubt have a keen eye on events planned at the 4.38 sq.km. site as global economies emerge from 18 months of disruptions caused by the COVID-19 pandemic.
With many businesses keen to re-calibrate the way they work to cope with fresh demands of a changed world, a series of events, workshops, and presentations in the first weeks of the Expo will offer insight into how firms can prepare.
Zawya rounds up 10 top networking opportunities happening earlier on in the event.
A key theme of the entire exhibition is sustainability. On Day Two of Expo 2020, October 2, visitors can join a debate with the vice president of Brazil, Hamilton Mourão to discuss the South American country’s contribution to sustainable development enterprises and initiatives.
Mourão leads the Council of the Amazon that is responsible for preserving, protecting, and developing the Amazon region by working with businesses and communities.
Starting at 3 p.m., the two-hour talk – which will focus on entrepreneurship, innovation, and technology around sustainability – is included in a day pass ticket.
Country pavilions will unite to listen to a panel of top leaders from the private sector on 14 October to explore new ways to maximise the role of the European Union (EU) by investing in developing nations.
The debate will focus on how to ramp up private investment in developing countries and emerging economies, particularly in Africa. Talks will run from 10 a.m. until 4 p.m., and visitors can dip in and out while they enjoy other attractions around the site.
Exclusive business and media conferences will bring together key Russian industry leaders and media influencers, allowing them to showcase the very best examples of projects initiated and developed in Moscow.
The event will be popular with those visitors with a keen interest in learning more about Moscow and how to invest in or take a trip to the cosmopolitan capital.
It will showcase opportunities in business entrepreneurship, as well as what arts and culture Moscow has to offer - all within the Russia pavilion inside the site’s mobility district.
During October, three Mexican guests will give 45-minute talks focusing on topics related to the theme weeks of Expo.
Admission to the talks is included in the entry ticket, with locations to be confirmed on daily entry programmes. Experts will spark up a range of different conversations, starting with space exploration throughout October.
Other topics lined up include climate and biodiversity, urban and rural development, travel and connectivity, health, wellness, and agriculture.
Mexico’s pavilion in the Mobility District will showcase national treasures in the form of art, music and food taking visitors on a journey of migration and exchange through the cycle of life.
A special event at the Blue Carbon Majlis on 19 October will offer an insight into how coastal and marine ecosystems store carbon, and how businesses can get involved to improve their impact on climate change.
The two-day programme will focus on policy and financing of this vital science that has the potential to play a critical role in protecting the natural world. Talks and demonstrations will be led by the IORA Blue Carbon Hub, a natural disaster risk reduction think tank from the University of Western Australia and co-curated with IORA Members and Observer states.
The two-hour talks take place at 2 p.m., 4 p.m. and 6 p.m.
At the Malaysia pavilion, an unmissable event is lined-up on October 20 for companies looking to branch out into emerging green technologies should snap up the opportunity to visit a mini-seminar on the topic.
Perfect for those with an interest in future renewable, sustainable technologies that care for the environment, this particular forum focuses on investment opportunities in green technology in Malaysia. The talk will last for an hour and a half from 8.30 a.m., 10 a.m. and 12 p.m.
Afterwards, visit Al Wasl Plaza – home to the world’s largest 360-degree projection surface. The Plaza’s dome comes alive after dark and awakens as an illuminated canvas against the night sky, capturing the imagination of visitors as it tells stories “from the Arab region, our natural world, the cosmos, and humanity’s endless quest for a better future.”
The Nigeria Tech Conference on 21 October will give visitors an inside look at the latest emerging technology in Africa and what investment opportunities are on offer for businesses.
Speakers will reveal how the continent is connecting and harnessing the transformative power of technology with displays showcasing to the world Nigeria’s enormous strides and successes in its technological progress.
The 12-hour forum begins at 10a.m.
The EU is set to host a business forum with representatives from the Gulf Cooperation Council GCC nations and a gala to mark a custom Expo "EU Honour Day" on October 23.
The Swiss pavilion is preparing to showcase some unseen gems of what the nation has to offer businesses and tourists planning to visit the beautiful country of mountains and lakes.
Swiss universities and tech companies will be on hand to demonstrate their latest ideas on how to build smart cities of the future.
A digital “twin” of Albert Einstein, who attended university in Zurich, will greet those visiting the pavilion.
Meanwhile, healthcare-focused individuals can learn more about the progression of value-based healthcare in the region via Roche’s special 125-year anniversary exhibition in November.
As Expo 2020 puts it, “few technological innovations in recent times have attracted as much interest – and confusion – as blockchain.” Organisers promise that “the veil on its revolutionary promise will be lifted” in November when more than 300 fintech firms and thousands of experts and enthusiasts meet at BlockExpo and World Blockchain Summit 2021.
Taking place at the Dubai Exhibition Centre, right on the “doorstep” of the Expo 2020 site, the event is aimed at “technologists, futurlists, and savvy investors”.
source: zawya
Egypt is optimistic about welcoming more visitors this year with numbers increasing steadily since January to around half a million tourists a month, Tourism and Antiquities Minister Khaled El-Enany told Reuters.
Tourism revenue, an important source of foreign currency for Egypt, plunged by 70% in 2020 due to the coronavirus pandemic. Tourism usually accounts for up to 15% of the country's gross domestic product.
Monthly tourism revenues stood at about $500,000, half of what they were before the pandemic. But Egypt hopes for a recovery by the end of the year when it aims to have vaccinated tourism staff in resorts along the Red Sea and name the area a COVID-free destination, Enany said.
More than 65% of (tourists) are coming to the Red Sea and South Sinai governorates because they are open air spaces and (there are) water activities. It is exactly what the tourist is seeking after COVID," the minister told Reuters in an interview.
Egypt and Russia in April agreed to resume all flights between the two countries in a call between their presidents, Abdel Fattah al-Sisi and Vladimir Putin, Egypt's presidency said in a statement.
"As you know the Russian market was a very important one to Egypt. Until 2015 they were ranking number one, around 3.5 million tourists a year."
Flights from Russia to resort destinations Sharm al-Sheikh and Hurghada were suspended after a Russian passenger plane crashed in Sinai in October 2015, killing 224 people.
source: zawya
The International Monetary Fund has revised its growth forecast upward for the Middle East and North Africa region, as countries recover from the coronavirus crisis that began in 2020.
Real GDP in the MENA region is now expected to grow 4% in 2021, up from the fund’s October projection of 3.2%.
However, the outlook will vary significantly across countries depending on factors such as vaccine rollouts, exposure to tourism and policies introduced, the IMF said in its latest regional economic report published on Sunday.
Jihad Azour, director of the IMF’s Middle East and Central Asia department, said the recovery would be “divergent between countries and uneven between different parts of the population.”
He told CNBC’s Hadley Gamble that the growth would be driven mainly by oil-exporting countries that will benefit from the acceleration of vaccination programs and the relative strength in oil prices.
Vaccines an ‘important variable’
Azour said each country’s capacity to recover in 2021 varies a “great deal.”
″(The) vaccine is an important variable this year, and the acceleration of vaccination could contribute to almost one additional percent of GDP in 2022,” he said.
Some countries in the region — such as the Gulf Cooperation Council states, Kazakhstan and Morocco — started their vaccinations early and should be able to inoculate a significant share of their population by end-2021, the IMF said.
Other nations including Afghanistan, Egypt, Iran, Iraq and Lebanon were classified as “slow inoculators” that will probably vaccinate a big portion of their residents by mid-2022.
The last group — the “late inoculators” — are not expected to achieve “full vaccination until 2023 at the earliest,” the report said.
It added that early inoculators are expected to reach 2019 GDP levels in 2022, but countries in the two slower categories will recover to pre-pandemic levels between 2022 and 2023.
Looking ahead
Azour said innovative policies helped to speed up the recovery, but it’s “very important to build forward better.”
That could include measures to improve the economy, attract investment, increase regional cooperation and address scars of the Covid crisis.
“All these elements are silver linings that can help accelerate the recovery and bring the economy of the region (to) the level of growth that existed prior to the Covid-19 shock,” he said.
source: cnbc
CAIRO: The value of foreign investments in Egyptian government debt instruments in the first quarter of the current fiscal year amounted to about $29 billion, according to a government official.
Egypt’s portfolio of foreign investors in its treasury bills and bonds includes sovereign funds and large Arab financial institutions, the official said.
The country has one of the highest interest rates in the world but, according to the Egyptian Central Bank, in 2020 rates fell from 12.25 percent to 8.25 percent, making it more attractive for potential investors.
The official explained that foreigners exited the government debt market at the beginning of last year, when the impact of the coronavirus pandemic began to take hold in March, but they were enticed back when some stability returned during the first quarter of the current fiscal year.
During the period of the pandemic, about $18 billion of foreign investment exited Egypt’s government debt market, seeing it drop to about $10 billion. The peak of investment was recorded in Feb. 2020, at $27.8 billion.
source: Arabnews
Egypt’s Minister of Trade and Industry Nevine Gamea announced that investors applying for industrial units in the seven new industry clusters will be granted a six-month reprieve from rent.
The six-month reprieve will come into effect once the investors receive their units at the industry clusters recently offered by the Industrial Development Authority (IDA).
Gamea said that the decision aims to relieve the burdens on small enterprises and investors, whilst giving them the opportunity to start their projects.
The minister also announced a two-week extension on the submission period for applications to obtain industrial units in the seven new clusters. The period will now come to a close on 12 December, to give investors an opportunity to prepare feasibility studies for their projects.
Gamea said that the rent set for new units are very affordable for small manufacturers and investors, and that the state has been keen to provide these units at a lower price than the cost. The governmental move aims to support young people, as these clusters were not launched for making a profit.
She also said that the executive regulations under the Micro, Small and Medium-Sized Enterprise Development Law are being drawn up. This represents a significant improvement in terms of facilities, advantages, and investment opportunities that will provide help for young investors working in this promising sector to develop their projects.
Moreover, IDA Chairperson Mohamed Al-Zalat said that the authority is keen to constantly communicate with investors working in all industrial areas and complexes. This aims to help them overcome all the obstacles they may face, and to ensure collaboration to solve their problems.
Al-Zalat said that the IDA is committed to providing all necessary facilities to help investors in the new industrial complexes to obtain all necessary licences for their projects.
He added that units available in the new industry custers will be very distinctive, with each unit equipped with all utilities, including sanitation and water networks.
source: zawya
The Islamic Development Bank (IsDB) Group hosted a webinar on the impact of the COVID-19 pandemic on the global investment outlook, which was organized in collaboration between the United Nations Conference on Trade and Development (UNCTAD) and the Country Strategy and Cooperation (CSC) Department, IsDB on 17th November 2020 to discuss the impact of COVID-19 on FDI and trade in OIC member countries.
The main objective of the webinar is to present the key findings of the World Investment Report 2020 - International Production Beyond the Pandemic with a highlight on FDI trends in foreign direct investment (FDI) worldwide, at the regional and country levels and emerging measures to improve its contribution to development.
In addition to presenting IsDB Group Strategy during COVID-19 and its impact on OIC Member Countries and Investment Promotion Agencies (IPAs).
The Webinar also proposed adopting policies and strategies to revive investment and trade in member states to advance investment promotion activities, in order to support the IsDB Group efforts to assist Investment Promotion Agencies (IPAs) in member countries by assisting them in devising appropriate investment and trade policy responses to the ongoing pandemic
Mr. Oussama Kaissi, CEO of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), stated that “the COVID-19 pandemic has created a devastating global health crisis. According to UNCTAD’s 2020 World Investment Report, global flows of foreign direct investment (FDI) will be under acute pressure this year as a direct result of the pandemic.
In order to combat these implications in member countries, IsDB and its group members have implemented a number of initiatives to maintain trade and investment flows. ICIEC will be an important part of the long-term recovery, supporting the growing demand for risk mitigation solutions”.
Mr. James Zhan, Director, Investment & Enterprise Division, UNCTAD, made a presentation which highlighted the key findings and policy recommendations found in its World Investment Report 2020: International Production Beyond the Pandemic.
Mr. Amadou Diallo, the Acting Director-General, Global Practices at the Islamic Development Bank in his speech stated that during COVID-19, the Bank provided technical assistance programs for the Islamic Development Bank Group such as RCI and ITAP to support the Member Countries by assisting them in developing suitable plans for investment and trade policy to confront the ongoing Corona pandemic.
This is in the framework of a tripartite approach centered around the "response, recovery and rebuilding" pillars.
Mr. Mohammed Bukhari, Senior Investment Promotion & Regional Cooperation Specialist, CSC Dept., IsDB delivered a presentation on the impact of COVID-19 on MCs, particularly in foreign direct investment (FDI), domestic investment and investment promotion agencies (IPAs).
It is noteworthy that the private sector institutions of the Islamic Development Bank Group played an important role during COVID-19, as Mr. Asheque Moyeed, Division Head, Infrastructure & Corporate Finance, the Islamic Corporation for the Development of the Private Sector (ICD) made a presentation which focused on the efforts related to promoting investment in member countries, where the IsDB Group private sector institutions pledged with IsDB to provide $ 700 million to stimulate investment, finance trade, investment insurance and export credit in member countries.
Two D-8 Egypt and Turkey are going to utilize around $270 million of this package.
The webinar brought together over 500+ participants from 113 countries, including government officials, Presidents & CEOs of local/international private sector companies, multilateral and financial institutions, individual investors, entrepreneurs, chambers of commerce & Industry, business associations, and investment promotion agencies
Enjoy the power of entrepreneurs' platform offering comprehensive economic information on the Arab world and Switzerland, with databases on various economic issues, mainly Swiss-Arab trade statistics, a platform linking international entrepreneurs and decision makers. Become member and be part of international entrepreneurs' network, where business and pleasure meet.
Please contact us :
Cogestra Laser SA
144, route du Mandement
1242 Satigny - Geneva
Switzerland
