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In July 2021, Burj Khalifa was covered in red with the word “SVWL” in the middle, announcing that the Egyptian mass transit company Swvl had become “the first unicorn company* in the Middle East with a market value of $1.5 billion to be listed on the NASDAQ New York Stock Exchange.” This is how Dubai celebrated the city-based company in 2019.
It did not take long for the wave of celebration of the Swvl company to turn into heartbreak and regret. Less than 6 months after the start of trading its shares on the Nasdaq Stock Exchange, the Swvl share price collapsed, losing about 95% of its value in September 2022. The downward journey of its share continued, bringing the share price in 2023 to about 20 cents, compared to $10 at the start of trading in March 2022. The market value of the company decreased from more than $1.5 billion to about $9 million only, so the company lost about 99% of its value after about twenty months of its listing on Nasdaq. How did Swvl descend from the pinnacle of success to the specter of bankruptcy? And what scenarios are waiting for the company?
In less than a year, Swvl succeeded in attracting financing amounting to about $9 million, starting with financing of $500,000 from “Careem” passenger transportation company, which was later acquired by “Uber”, and in 2018 it obtained financing of $8.5 million from a Series A funding round, and in the same year it succeeded in obtaining an undisclosed Series B funding round, estimated at between $20 and $30 million at the time, making Swvl the most funded startup in the Middle East and North Africa in 2018.
Swvl Mass Transport is an example of a startup that achieves great success at the beginning of its journey. The company started its operations in Egypt in 2017 with self-financing from its founders (Mustafa Qandil, Mahmoud Noah and Ahmed Sabah) that did not exceed $30,000 at the time. The idea of Swvl was based on providing a reasonable alternative that combines low cost and efficiency, so that it enables individuals who wish to move away from public transportation, at a lower cost than the costs of shared transportation companies. In practical application, Swvl started operating large and small buses on specific routes, enabling users to book their trips through an application that runs on smartphones.
Funding continued to flow to Swvl, as in 2019 it succeeded in raising about $42 million from a Series C financing round, bringing the total amount it obtained, in less than two years following its foundation, to about $80 million. In view of this success, Swvl decided to move its headquarters to Dubai, in a building that includes large companies, such as: "BMW" and "Rolls-Royce". From Dubai Swvl worked to accelerate its expansion in large and important markets in the Middle East and Africa, including the Saudi, Pakistani and Emirati markets, as well as Nigeria and Kenya.
Media aura
Propelled by the rapid success it achieved, Swvl gained a great media aura since its launch. In 2018 the founders of Swvl were chosen among the Forbes Middle East list of the most influential youth under the age of 30, and in 2020 the name of Swvl appeared in the Forbes Middle East list of the “50 most funded startups in the Middle East”, where it ranked second, while its financial director, Youssef Salem, appeared on the same list in 2021. Mr. Salem is a prominent banker who used to work in Moelis & Co, who was among a large group of employees who were attracted by Swvl through generous salaries, temptations and other incentives.
This is in addition to many TV interviews and dozens of websites that dealt with the company's success story. The media aura contributed to increasing the confidence of investors and financiers in the success of the company and in the possibility of it becoming one of the largest companies in the field of mass transportation in the world, especially with its great expansion in foreign markets.
Acquisition and listing on NASDAQ
Swvl reached the pinnacle of its success in the summer of 2021 when it was listed on the Nasdaq Stock Exchange after its merger with Queen's Gambit Growth Capital, a special-purpose acquisition company (SPAC), turning the startup that launched just 4 years ago, from a small company active in the streets of Cairo and Alexandria to a global company with a market valuation of $1.5 billion, this valuation at the time was considered exaggerated.
It is also worth noting that prior to this merger, two of the founders of Swvl had left; Mahmoud Noah, who later founded Capiter for business-to-business transactions, and Ahmed Sabah, who founded the emerging financial technology company Telda, while Mustafa Kandil continued to manage SWVL.
Less than a month after the announcement of Swvl’s listing on the Nasdaq Stock Exchange, the company began an expansion process in global markets. It began its global activities by acquiring the Spanish “Shotl” smart transportation company specialized in ordering buses in Spain and 22 cities in 10 European countries, in addition to its activity in Brazil [1]. It also announced its acquisition of the German company "Door2door" in an undisclosed deal. In November, it acquired a controlling stake in the Argentine company Viapool, which operates in both Argentina and Chile, for $10 million.
Swvl's appetite for expansion and acquisition did not stop, and in April of 2022, i.e. one month after its shares began trading on the Nasdaq Stock Exchange at a value of $10 per share, Swvl announced two acquisition deals, the first of which was the acquisition of the Turkish "Volt Line" company for participatory transportation. Its value amounted to 40 million dollars, and the second was the conclusion of an initial deal with the British company "Zello" in preparation for its acquisition in a deal whose estimated value was about 100 million dollars [2]. This is in addition to pumping 25 million dollars allocated to increase expansion in the Turkish market through "Vault Line"[3].
Falling from the top
Less than two months after Swvl's shares began trading on the Nasdaq Stock Exchange, the company's share price fell to about $5. In front of this sudden drop in the share price, Swvl announced the layoffs of 400 of its employees, or about a third of the company's employees, and the reason for taking this action, according to Swvl, because it would replace its laid-off cadres with fully automated systems, in order to reduce its expenses and focus on achieving profits starting from 2023. Commenting on the decline in its share price, Swvl's management stated, "The decline in the stock does not cause concern to the management, but we have a responsibility towards every shareholder who suffers a loss, and we try to separate the action plan that we are following and the fluctuation of the stock."
Swvl's announcement was not enough to stop the collapse of its share price. On the one hand, laying off 400 employees will not lead to immediate or certain results to achieve profits that satisfy investors and shareholders. Rather, the results of the layoffs need time to appear, in addition to the fact that the process of replacing automated systems in itself is a costly and complex process. On the other hand, Swvl did not stop expanding in new markets, as the company announced its acquisition of the Mexican company "Urbvan" for mass transportation [4]. This coincided with its announcement of its intention to enter the American market at the end of the same year, meaning that the goal of the company to focus on profits does not seem likely to be achieved in light of its continued expansion into new markets, which is one of the main reasons for the decline in Swvl's share price.
The major collapse in Swvl’s share price occurred on July 8, 2022, as the company’s share price fell to about a dollar and a half, and on September 20 of the same year, the share price fell below one dollar, and reached about 50 cents, thus losing Swvl about 95% of its value, as its market valuation fell from $1.5 billion to about $75 million. The downward path of Swvl's share continued with the beginning of 2023, bringing its share price to about 20 cents and its market value to about $9 million.
Why did Swvl stock fall?
In addition to the poor performance and management of the Swvl itself, specifically related to its rapid expansion policy, which cost the company hundreds of millions of dollars, the collapse of the share price of Swvl on the Nasdaq Stock Exchange is also attributed to the state of the global economy.
The COVID-19 pandemic hit the transportation industry hard, and Swvl was no exception. With lockdowns and social distancing measures in place, demand for public transportation plummeted, and Swvl was forced to suspend its services. In addition, the company faced financial and operational challenges, with its high operational costs and limited revenue streams putting it at risk of bankruptcy.
Also less than a month before the start of trading of Swvl shares on the Nasdaq, The Russian-Ukrainian war broke out, which caused a significant increase in energy prices, which negatively affected the operating costs of Swvl. The global economy in general entered a state of uncertainty and slowed growth, and many countries were affected by the global inflation situation caused by the Ukrainian crisis, including Egypt, Latin America and a number of countries in which Swvl is active. This situation also led to collapse of the prices of the national currencies of a large number of countries. Moreover, the US Federal Bank raised interest rates, which made it more expensive for startups to borrow and to finance their activities.
What also indicates that the crisis that Swvl went through is linked to external causes, is that the Nasdaq index itself lost nearly a third of its value in 2022 [5], in short, Swvl was not alone in this crisis, but rather it was doubly affected because its activities being linked to energy prices, which flew.
Swvl's actions did not achieve its desired goal, as we mentioned above, its share continued to decline, and it is known that the NASDAQ Stock Exchange prevents trading of shares of companies with a share price of less than one US dollar, which made Swvl exposed to the risk of being delisted from the NASDAQ Stock Exchange, especially since it received a warning in this concern from Nasdaq. Swvl's solution was a "reverse stock split" that turned every 25 shares into one. So that its shares have traded since March 2023, at a price ranging from two dollars to $1.07.
What fate awaits Swivel?
In view of the major collapse of Swvl, its CEO, Mustafa Kandil, decided on November 25 to lay off more than half of the workforce and sell, stop or reduce some operations in "smaller" countries, and focus mainly on Egypt and Mexico. Five weeks after this announcement, Swvl formed a panel of independent directors to explore potential sales, mergers and other options.
A reverse stock split may be a stopgap for Swvl from delisting from the Nasdaq stock exchange, but it may not last long given the company's plight.
According to Bloomberg, quoting a person familiar with the matter (who asked not to be named because the information is confidential), Swvl is now looking for new capital from investors, while it remains listed on the Nasdaq [6]. This may be hardly the only option for the continuation of Swvl, that is, obtaining new capital and turning into a private company, to restart again.
The company's leadership team recognized the need for change and embarked on a bold transformation strategy. They diversified their revenue streams, shifting their focus from bus rides to logistics and delivery services. They also implemented cost-cutting measures, streamlined operations, and renegotiated contracts with suppliers.
The company has also expanded its services to include last-mile deliveries, e-commerce logistics, and ride-hailing. Swvl's story is a testament to the resilience and adaptability of businesses in the face of adversity. It also teaches us the importance of diversifying revenue streams, being agile and flexible, and taking bold actions to survive and thrive in challenging times.
Sources:
* An economic term applied to emerging companies whose market valuation exceeds one billion dollars.
* Special purpose acquisition companies are public companies that have no business but to choose a private company to merge with, and the latter inherits the inclusion of the first.
[1] Swvl prepares to enter the Spanish market by purchasing Shotl buses, Wamda website, 08/19/2021, available at: https://bit.ly/407w5be
[2] Swvl acquires the English “Zilo” for $100 million, WAYA Arabic website, 08/05/2022, available at: https://bit.ly/3GNrfcd
[3] “Swvl” acquires the Turkish “Volt Line” for ride-hailing services, Lumberj Middle East, 04/25/2022, available at: https://bit.ly/3A0AIJw
[4] Swvl Acquires Mexican Urbvan to Penetrate Markets There, Arabia Inc, 07/18/2022, available at: https://bit.ly/3mBZUTA
[5] Sherif Othman, “The Nasdaq index lost nearly a third of its value in 2022,” Al-Araby Al-Jadeed website, 10/01/2022, available at: https://bit.ly/3GKrpRK
[6] Samuel Gebre at el, Middle East Unicorn Swvl’s Spectacular Rise and 99% Stock Tumble, bloomberglaw, 09/03/2023, Available at: https://bit.ly/43zVyNw
السقوط من القمة: كيف انتقلت سويفل من أول شركة يونيكورن في الشرق الأوسط إلى حافة الإفلاس؟
22 Apr 2023اكتسى برج خليفة في شهر في يوليو/تموز 2021، باللون الأحمر يتوسطه كلمة "SVWL" معلنا لناظره عبر نص إلكتروني بأن شركة سويفل المصرية للنقل الجماعي باتت "أول شركة يونيكورن* في الشرق الأوسط تبلغ قيمتها السوقية 1.5 مليار دولار يتم إدراجها في بورصة ناسداك نيويورك" هكذا احتفلت دبي بالشركة التي اتخذت من المدينة مقراً لها في عام 2019.
لم يمضي على موجة الاحتفاء بشركة سويفل الكثير من الوقت قبل ان تتحول إلى حسرة وتأسف، فبعد أقل من 6 أشهر من بدء تداول أسهمها في بورصة ناسداك انهارت سعر سهم سويفل لتفقد نحو 95% من قيمتها في شهر سبتمبر/أيلول 2022. استمرت رحلة هبوط سهم سويفل ليصل سعر سهمها في عام 2023 إلى نحو 20 سنت بعد أن كان سعر السهم الواحد 10 دولارات عند بداية تداوله في مارس/آذار 2022، وانخفضت قيمتها السوقية من أكثر من 1.5 مليار دولار إلى لنحو 9 مليون دولار فقط، لتفقد الشركة نحو 99% من قيمتها بعد نحو عشرين شهراً من بدء إدراجها في ناسداك.
كيف هبطت سويفل من أعلى قمة النجاح إلى شبح الإفلاس؟ وما هي السيناريوهات التي تنتظرها؟
رحلة الصعود السريعة
تعد شركة سويفل للنقل الجماعي نموذجاً عن الشركة الناشئة التي تحقق نجاحاً كبيراً في بداية رحلتها، فقد بدأت الشركة أعمالها في مصر عام 2017 بتمويل ذاتي من مؤسسيها (مصطفى قنديل ومحمود نوح وأحمد صباح) لم يتجاوز في حينها 30 ألف دولار. قامت فكرة سويفل على تقديم بديل معقول يزاوج بين التكلفة المنخفضة والكفاءة، بحيث تمكن الافراد الراغبين بالتنقل بعيداً عن وسائل النقل العام، وبتكلفة أقل من تكاليف شركات النقل التشاركي. وفي التطبيق العملي بدأت سويفل بتسيير حافلات كبيرة وصغيرة على طرق محددة، بحيث تمكن المستخدمين من حجز رحلاتهم عبر تطبيق يعمل على الهواتف الذكية.
يغضون أقل من عام نجحت سويفل في جذب تمويل وصلت قيمته إلى نحو 9 مليون دولار أمريكي بدأ مع تمويل بقيمة 500 ألف دولار من شركة "كريم" لنقل الركاب التي استحوذت عليها شركة "أوبر" لاحقاً، وفي عام 2018 حصلت على تمويل بقيمة 8.5 مليون دولار من جولة تمويلية من السلسلة (أ)، وفي العام نفسه نجحت في الحصول على جولة تمويلية غير معلنة من الفئة (ب) قدرت قيمتها حينها ما بين 20 إلى 30 مليون دولار، لتصبح سويفل أكثر شركة ناشئة تحصل على تمويل في الشرق الأوسط وشمال إفريقيا في عام 2018.
استمر تدفق التمويل على سويفل حيث نجحت في عام 2019 بجمع نحو 42 مليون دولار من جولة تمويلية من الفئة (ت) فوصل مجموع ما حصلت عليه بعد أقل من عامين على تأسيسها نحو 80 مليون دولار.
بعد نجاح سويفل في تحقيق هذا التمويل قررت نقل مقرها الرئيسي إلى دبي، وهناك استأجرت سويفل مساحة في مبنى راقٍ يضم مستأجرين كبار منهم على سبيل المثال: مكتب "بي إم دبليو" و"رولز رويس"، ومن دبي عملت سويفل على تسريع توسعها في أسواق كبيرة ومهمة في الشرق الأوسط وإفريقيا، بما فيها السوق السعودية والباكستانية والإماراتية إلى جانب نيجيريا وكينيا في إفريقيا.
الهالة الإعلامية
بدفع من النجاح السريع الذي حققته اكتسبت سويفل هالة إعلامية كبيرة منذ انطلاقها حيث اختير مؤسسو سويفل في عام 2018 ضمن قائمة فوربس الشرق الأوسط للشباب دون سن الثلاثين الأكثر تأثيراً، وفي عام 2020 ظهر اسم شركة سويفل في قائمة فوربس الشرق الأوسط "لأكثر 50 شركة ناشئة تمويلاً في الشرق الأوسط" حيث احتلت المركز الثاني، كما ظهر مديرها المالي "يوسف سالم" في القائمة ذاتها في عام 2021، علماً أن يوسف سالم، وهو مصرفي مرموق كان يعمل في "مويليز أند كو" (Moelis& Co)، كان من ضمن مجموعة كبيرة من الموظفين الذين جذبتهم عبر تقديم رواتب سخية لهم بالإضافة إلى امتيازات ومغريات أخرى.
هذا إلى جانب الكثير من المقابلات التلفزيونية وعشرات المواقع الإلكترونية التي تناولت قصة نجاح الشركة.
ساهمت الهالة الإعلامية في زيادة ثقة المستثمرين والممولين في نجاح الشركة وفي إمكانية أن تصبح من كبرى الشركات في مجال النقل الجماعي على مستوى العالم، سيما مع توسعها الكبير في الأسواق الخارجية.
الاستحواذ والإدراج في بورصة ناسداك
وصلت سويفل إلى قمة نجاحها في صيف عام 2021 حينما أدرجت في بورصة ناسداك بعد أن اندماجها مع "كوينز غامبيت غروث" (Queen’s Gambit Growth Capital) وهي شركة استحواذ ذات الأغراض الخاصة "SPAC"، لتتحول الشركة الناشئة التي انطلقت قبل 4 أعوام فقط من شركة صغيرة تنشط في شوارع القاهرة والإسكندرية إلى شركة عالمية بتقييم سوقي وصل إلى 1.5 مليار دولار، وعد هذا التقييم وقتذاك مبالغاً فيه.
ومن الجدير بالذكر أيضاً أنه قبل عملية الاندماج تلك كان إثنين من مؤسسي سويفل قد غادراها؛ محمود نوح الذي أسس لاحقاً شركة "كابيتر" (Capiter) للتعاملات التجارية بين الشركات، وأحمد صباح الذي أسس شركة التقنية المالية الناشئة "تيلدا" Telda، فيما استمر مصطفى قنديل في إدارة سويفل.
بعد أقل من شهر على إعلان إدراج سويفل في بورصة ناسداك بدأت الشركة عملية توسع في الأسواق العالمية بدأتها مع استحواذها على شركة "Shotl" الإسبانية للنقل الذكي المتخصصة في طلب الحافلات في كل من اسبانيا و22 مدينة في 10 دول أوروبية إلى جانب نشاطها في البرازيل[1]. كما أعلنت عن استحواذها على شركة " Door2door" الألمانية بصفقة غير معلنة. وفي نوفمبر/تشرين الثاني استحوذت على حصة حاكمة في شركة " Viapool" الأرجنتينية للنقل التشاركي التي تنشط في كل من الأرجنتين وتشيلي وذلك بمقابل 10 ملايين دولار.
لم تتوقف شهية سويفل في التوسع والاستحواذ ففي أبريل/نيسان من عام 2022، أي بعد شهر واحد عن بدأ تداول أسهمها في بورصة ناسداك بقيمة 10 دولار للسهم الواحد، أعلنت سويفل عن صفقتي استحواذ، الأولى صفقة الاستحواذ على شركة "فولت لاين" التركية للنقل التشاركي بلغت قيمتها 40 مليون دولار، والثانية كانت ابرام صفقة مبدئية مع شركة "Zello" البريطانية تمهيدا للاستحواذ عليها بصفقة بلغت قيمتها التقديرية نحو 100 مليون دولار[2]. هذا إلى جانب ضخ 25 مليون دولار مخصصة لزيادة التوسع في السوق التركية عبر "فولت لاين"[3].
السقوط من القمة
لم يمضي أكثر من شهرين على بدء تداول أسهم سويفل في بورصة ناسداك، حتى انخفض سعر سهم الشركة إلى نحو 5 دولارات. أمام هذا الهبوط المفاجئ في سعر السهم، أعلنت سويفل عن تسريح 400 من موظفيها أو نحو ثلث العاملين في الشركة، وعن السبب في اتخاذها لهذا الإجراء قالت سويفل حين ذاك أنها ستحل أنظمة مؤتمتة بالكامل محل كوادرها المسرحة، وذلك لتخفيض نفقاتها والتركيز على تحقيق أرباح بدءً من عام 2023. وفي تعليقها على انخفاض سعر سهمها صرحت إدارة سويفل "تراجع السهم لا يُسبب قلقاً لدى الإدارة، لكن لدينا مسؤولية تجاه كل مساهم يتعرض لخسارة، ونحاول الفصل بين خطة العمل التي نسير عليها وبين حركة السهم".
لم يكن إعلان سويفل كافياً لوقف انهيار سعر سهمها، فمن جهة تسريح 400 موظف لن يؤدي إلى نتائج فورية أو مؤكده لتحقيقها لأرباح ترضي المستثمرين وحاملي أسهم، بل إن نتائج التسريح بحاجة إلى وقت للظهور، بالإضافة إلى أن عملية الإحلال بأنظمة مؤتمتة بحد ذاتها عملية مكلفة ومعقدة. هذا من جهة، ومن جهة أخرى فإن سويفل لم تتوقف عن التوسع في أسواق جديدة، فقد أعلنت الشركة عن استحواذها على شركة "Urbvan" المكسيكية للنقل الجماعي[4]، تزامن ذلك مع إعلانها نيتها دخول السوق الأمريكية في نهاية العام نفسه، أي أن هدف الشركة في التركيز على الأرباح لا يبدو أنه كان سيتحقق في ظل استمرار في التوسع في أسواق جديدة، وهو أحد أهم الأسباب لتراجع سعر سهم سويفل.
حدث الانهيار الكبير في سعر سهم سويفل في الثامن يوليو/تموز 2022، إذ سقط سعر سهم الشركة إلى نحو دولار ونصف، وفي الـ20 من سبتمبر من العام نفسه تراجع سعر السهم إلى ما دون الدولار الواحد، ووصل إلى نحو 50 سنت، لتفقد سويفل بذلك نحو 95% من قيمتها، حيث انخفض تقييمها السوقي من 1.5 مليار دولار إلى نحو 75 مليون دولار. استمر المسار الهبوطي لسهم سويفل مع بداية عام 2023 ليصل سعر سهمها إلى نحو 20 سنت وتصبح قيمتها السوقية نحو 9 مليون دولار.
لماذا سقط سهم سويفل؟
إلى جانب الأسباب المتعلقة بأداء وإدارة شركة سويفل نفسها وتحديداً في سياستها التوسعية السريعة التي كلفة الشركة مئات ملايين الدولارات، فإن انهيار سعر سهم سويفل في بورصة ناسداك، يعزى أيضاً إلى حالة الاقتصاد العالمي. فقد ضربت جائحة كورونا صناعة النقل بشدة، ولم تكن سويفل استثناءاً. مع عمليات الإغلاق وإجراءات التباعد الاجتماعي المعمول بها، انخفض الطلب على وسائل النقل العام، واضطرت سويفل إلى تعليق خدماتها. بالإضافة إلى ذلك، واجهت الشركة تحديات مالية وتشغيلية، مع ارتفاع تكاليفها التشغيلية ومحدودية مصادر الإيرادات مما جعلها عرضة لخطر الإفلاس.
وقبل أقل من شهر على بدء تداول أسهم سويفل في بورصة ناسداك، اندلعت الحرب الروسية- الأوكرانية التي تسببت في ارتفاع أسعار الطاقة بصورة كبيرة، وهو ما انعكس بالسلب على التكاليف التشغيلية لسويفل، كما أن الاقتصاد العالمي بالعموم دخل في حالة من عدم اليقين وتباطؤ النمو، كما تأثرت الكثير من الدول، بما فيها مصر ودول أميركا اللاتينية وعدد آخر من الدول التي تنشط فيها سويفل، بحالة التضخم العالمية التي تسببت فيها الأزمة الأوكرانية، فانهارت أسعار العملات الوطنية لعدد كبير من الدول. هذا إلى جانب رفع الفيدرالي الأمريكي لأسعار الفائدة، الأمر الذي جعل من تكلفة الاقتراض والتمويل أكبر على الشركات الناشئة.
ويدل أيضاً على أن الأزمة التي مرت بها سويفل مرتبطة بأسباب خارجية، هو أن مؤشر ناسداك نفسه فقد ما يقرب من ثلث قيمته في عام 2022[5]، باختصار لم تكن سويفل لوحدها في هذه الأزمة، بل أتت عليها مضاعفة بسبب ارتباط عملها بأسعار الطاقة التي حلقت.
ما هو المصير الذي ينتظر سويفل؟
امام الانهيار الكبير الذي تعرضت له سويفل قرر مديرها التنفيذي "مصطفى قنديل" في 25 تشرين الثاني/نوفمبر تسريح أكثر من نصف القوى العاملة وبيع أو وقف أو تقليص بعض العمليات في البلدان "الأصغر" على حد وصفه، والتركيز بشكل أساسي على مصر والمكسيك.
بعد خمسة أسابيع من هذا الإعلان، شكلت سويفل لجنة من المديرين المستقلين لاستكشاف المبيعات المحتملة وعمليات الدمج والخيارات الأخرى.
لم تحقق إجراءات سويفل الهدف المرجوة منها إذ كما أسلفنا فإن سهمها استمر في الهبوط، ومن المعروف أن بورصة ناسداك نيويورك تمنع تداول أسهم الشركات المدرجة فيها تحت سعر دولار أمريكي واحد، وهو ما جعل سويفل معرضة لخطر الشطب من بورصة ناسداك، سيما انها تلقت انذار بذلك من ناسداك، فكان حل سويفل هو "التجزئة العكسية للسهم" فحولت كل 25 سهماً إلى سهم واحد. ليعود تداول سهمها منذ شهر مارس/آذار 2023 بسعر يتراوح عند حدود الدولارين إلى 1.07 دولار.
قد تكون عملية التجزئة العكسية للسهم بمثابة حل مؤقت ينقذ سويفل من شبح الشطب من بورصة ناسداك، لكن هذا الحل قد لا يستمر طويلاً في ظل المحنة التي تمر بها الشركة.
بحسب وكالة بلومبيرغ، نقلاً عن أحد الأشخاص المطلعين على الأمر (طلب عدم نشر اسمه لأن المعلومات سرية) فإن سويفل تبحث الآن على رأس مال جديد من المستثمرين، بينما تظل مدرجةً في بورصة ناسداك[6]. قد يكون هذا الخيار بالكاد الوحيد لاستمرار سويفل، أي الحصول على رأسمال جديد والتحول إلى شركة خاصة، لتعيد الانطلاق من جديد.
أدرك فريق ادارة الشركة الحاجة إلى التغيير وشرع في استراتيجية تحول جريئة، حيث قاموا بتنويع مصادر الدخل، وتحويل تركيزهم من ركوب الحافلات إلى الخدمات اللوجستية والتوصيل. كما قاموا بتنفيذ تدابير لخفض التكاليف وعمليات مبسطة وإعادة التفاوض على العقود مع الموردين.
قامت الشركة أيضًا بتوسيع خدماتها لتشمل عمليات التسليم في الميل الأخير، والخدمات اللوجستية للتجارة الإلكترونية، وخدمة نقل الركاب. قصة سويفل هي دليل على ضرورة المرونة في اداء الأعمال والقدرة على التكيف في مواجهة الشدائد. كما أنه يعلمنا أهمية تنويع مصادر الإيرادات، وأن نكون رشيقين ومرنين، وأن نتخذ إجراءات جريئة من أجل البقاء والازدهار في الأوقات الصعبة.
المصادر:
* مصطلح اقتصادي يطلق على الشركات الناشئة التي يتخطى تقييمها السوقي المليار دولار.
* شركات الاستحواذ ذات الأغراض الخاصة هي شركات عامة لا عمل لها سوى اختيار شركة خاصة للاندماج معها، وترث تلك الأخيرة إدراج الأولى.
[1] سويفل تستعد لدخول السوق الإسبانية عبر شراء Shotl للحافلات، موقع وامضة، 19/08/2021، متوفر على الرابط: https://bit.ly/407w5be
[2] سويفل تستحوذ على “زيلو” الإنجليزية مقابل ١٠٠ مليون دولار، موقع واية عربي، 08/05/2022، متوفر على الرابط: https://bit.ly/3GNrfcd
The Kingdom of Bahrain has recently launched a new initiative known as the Golden Licence. This scheme offers a range of incentives, such as corporate income tax exemption for consolidated projects for five years, corporate income tax deferral during the investment period and personal income tax exemption for foreign employees.
In addition, interested parties will receive simplified assistance and services during the investment process. The launch of the Golden Licence is an important part of Bahrain's efforts to attract and retain investment, and its implementation will help projects achieve long-term success.
This new licence is part of Bahrain's strategy to provide a safe, secure, reliable and competitive business environment for companies.
The new licence is the result of the Government's efforts to attract foreign investment and foster the country's economic development. This measure seeks to increase Bahrain's attractiveness to new investors by providing them with greater flexibility and ease in establishing and operating their businesses in the country.
Benefits offered include the automatic granting of visas to foreign employees, tax exemptions and freedom to import and export products.
In addition, companies obtaining the Licence will also be able to access a variety of other facilities, such as financing, office rentals, accommodation and consultancy services.
Moreover, through the Licence, companies will be able to rely on the assistance of the Bahrain Investment Agency to help them connect with suppliers of products and services, as well as to find business partners.
This licence will also allow companies to access financial incentives, such as bank loans at preferential rates, business loan guarantees and exemption from import and export taxes. Companies with a Golden Licence will also enjoy additional benefits, such as exemption from property, transport and telecommunications taxes.
The Bahrain Investment Licence is a tax and economic reform introduced in 2021 by the Bahrain Council of Ministers. The licence offers local and international companies a number of incentives to invest in the country, such as integrated cooperation with various government departments, an account manager appointed by the Bahrain Economic Development Board, as well as the possible revision of existing laws or regulations where necessary and applicable.
This initiative is part of the Bahrain Economic Recovery Plan, led by Prince Salman bin Hamad al-Khalifa, Crown Prince and Prime Minister of Bahrain, and aims to attract investment and create jobs locally.
The Bahrain Economic Development Board (EDB) is the main driver of foreign direct investment in the country, working to attract investment from around the world to Bahrain and supporting initiatives that improve the investment climate.
EDB offers advice to outside companies wishing to establish business or invest in Bahrain, and also provides information and services to foreign investors to help them develop their businesses.
In addition, EDB is committed to the development of quality infrastructure, such as improved transportation, housing construction and energy modernisation, to create an attractive investment environment.
The EDB also strives to promote transparency in government and financial markets, as well as to promote investment in Bahrain's human resources industry, stressing that it is a vital part of economic development and is a key partner for investors seeking a secure and stable environment for their investments.
Source: Atalayar
The incentives offered to companies operating in the four newly launched Special Economic Zones (SEZs) in Saudi Arabia cover both fiscal and non-fiscal concessions, including competitive corporate tax rates, duty-free imports of machinery and raw materials, 100% foreign ownership, seamless set-up procedures, and flexibility in employing foreign labor.
Chairman of the Board of Directors of the Special Economic Cities and Zones Authority and Minister of Investment Eng. Khalid Al-Falih said: “This is an exciting moment.
We are proud to see the launch of these four special economic zones that offer the chance for foreign investors to have a stake in the world’s fastest-growing economy.”
The new zones, strategically situated across the Kingdom, are ‘King Abdullah Economic City (KAEC), Jazan, Ras Al Khair and Cloud Computing SEZ located in King Abdulaziz City for Science and Technology (KACST).
The SEZs reinforce further Saudi Arabia’s position as a global business hub and will play a major role in achieving Saudi Arabia’s economic development goals under the Crown Prince’s Vision 2030 strategy.
The Secretary-General of the Authority, Nabil Khoja, added, “With hugely attractive financial incentives, world-class infrastructure, business-friendly regulations and streamlined procedures for investors, there has never been a better time to be part of Saudi Arabia’s economic success story.
The zones will become engines of growth, increasing the Kingdom’s export competitiveness, attracting talent, boosting technology and improving our global links.”
Special economic zones – or SEZs – are geographically defined areas that facilitate specific economic activities, such as investment, trade and employment, by providing competitive advantages and legislative frameworks that differ from the base economy. With a bespoke regulatory and incentive scheme, SEZs constitute an attractive proposition in the increasingly attractive context of foreign investment.
This important program will enable Saudi Arabia to fast-track certain reforms and facilitate the ease of doing business across the country.
King Abdullah Economic City (KAEC) SEZ will serve as the premier destination for advanced manufacturing and logistics, from automobile supply chain and assembly to consumer goods, ICT to MedTech. Set in a prime location on the Red Sea, less than 90 minutes from Jeddah Airport, this 60km2 site offers unrivaled access to global trade routes through King Abdullah Port, ranked the world’s most efficient by the World Bank in 2022. Anchor investor Lucid, a leader in the global EV industry, will produce 150,000 EVs a year from its base in KAEC SEZ.
Jazan SEZ will be an industrial center and key platform for trade with fast-growing markets in Africa and Asia. Jazan SEZ offers access to the largest port in the region for the export of goods and import of materials, helping investors benefit from and contribute to large-scale infrastructure projects in Saudi Arabia and around the world, backed by easy access to both natural and industrial resources. Jazan is part of the Kingdom’s fertile southwestern region, providing opportunities for manufacturing, processing and distribution of food products to cater for growing regional demand and meet food security challenges across the region.
Ras Al-Khair SEZ is a launchpad on the Arabian Gulf for leaders in the maritime industry, Ras Al-Khair SEZ is a fully integrated marine ecosystem, with a rich network of existing investors – 40% of the zone is already spoken for – and myriad opportunities across shipbuilding and repair, offshore drilling and maritime value chains.
Cloud Computing SEZ, located in King Abdulaziz City for Science and Technology (KACST), will serve as a hub for emerging and disruptive technologies.
A direct manifestation of the Kingdom’s ‘Cloud First’ policy, the Cloud Computing SEZ underlines the Kingdom’s commitment to digital innovation and the fast-growing tech sector.
The Zone is based around an innovative hybrid model that allows investors to establish physical data centers and cloud computing infrastructure in multiple locations within the Kingdom.
Saudi Arabia’s favorable geographic location, at the heart of major trade routes and supply chains, with access to more than 70% of the world’s population within 8 hours, adds to the zones’ appeal, along with the Kingdom’s young, highly educated population of more than 34 million, expansive natural resources and stable, rapidly growing capital markets.
Source: Zawya
Flyksoft, a UAE-based company that offers SAAS booking software for salons and spas, has successfully raised $55,000 in seed funding from angel investors. This funding will help the company achieve its mission of boosting brand awareness and media presence.
Flyksoft's innovative platform provides an all-in-one solution for managing salon and spa operations.
The software is designed to help businesses streamline their operations by offering features such as appointment bookings, point-of-sale, customer records management, marketing automation, integration with social media, loyalty programs, inventory management, and team management.
Flyksoft also plans to launch the first beta version of its SAAS booking software in May 2023 and will begin registering and onboarding clients from May onwards in the UAE and Gulf markets.
The company aims to be the first salon booking software to offer a competitive pricing range and monthly subscription model.
The first phase of the launch will include mobile apps for Android and iOS, a marketplace, CRM, a marketing module, an integration module, payment gateways, and staff and booking apps. In the second phase, Flyksoft will launch a website builder, accounting and finance and HR module.
Ibrahim, founder of Flyksoft has been working in the same industry for the last 15 years in the UAE and MENA region. He has worked with many technology partners and consulted with current market leaders in the same segment, providing valuable experience and insights to help build the company.
Flyksoft is excited to revolutionise the salon and spa industry by providing a complete solution to simplify business operations and enhance the customer experience.
With this seed funding, the company is poised to make a significant impact in the industry and provide an exceptional level of service to its clients.
Source: khaleej times
CoaChess, a Tunisian startup founded in 2021, has announced securing a pre-seed funding round worth 600k TND (USD191,000) thanks to Omicrone, their new investor and startup builder.
The company’s objective is to revolutionize the chess world by utilizing AI-powered tools to make the game accessible to players of all skill levels.
The company offers a wide range of services, including beginner-friendly lessons and advanced learning techniques aimed at further developing players’ skills regardless of their level.
In addition, the company provides players with the opportunity to apply what they have learned in highly competitive environments and analyze their games to identify their strengths and weaknesses. CoaChess also offers the chance to participate in free and paid tournaments against players with different levels and skill sets.
CoaChess’s most innovative offering is its intelligent bot, which can mimic top chess champions and other influential figures in the history of the game. This tool assists players in learning more about the game and improving their skills.
CoaChess also offers services that can improve chess clubs’ learning environments, including personalized guidance throughout their learning journey and the ability to organize internal and inter-club tournaments.
The recent pre-seed funding round is a significant milestone for CoaChess, bringing the company one step closer to achieving its goals. With the funding, the to company can take its innovative tools to the market and improve the game for good.
CoaChess’s founder, Iheb Kaabi, expressed gratitude for the support and guidance of the company’s supporters, saying, “We are committed to continuing our journey and working to make chess more accessible and enjoyable for everyone.”
Source: African Heroes
نجحت الشركات الناشئة في منطقة الشرق الأوسط وشمال إفريقيا في جمع 247 مليون دولار أمريكي موزعة على 67 صفقة في شهر مارس/آذار 2023، بانخفاض يقدر بنحو 67% مقارنةً بشهر فبراير/شباط الفائت، وبنسبة 17% مقارنةً بالفترة نفسها من العام الماضي.
على الرغم من الانخفاض النسبي الكبير لحجم تمويل الشركات الناشئة في شهر مارس/آذار إلا أن مسار تمويل الشركات الناشئة لعام 2023 ما زال يشي بتقدم جيد على صعيد التمويل، فحصيلة ما جمعته الشركات الناشئة في الربع الأول من العام الحالي قد بلغت أكثر من 1.1 مليار دولار، أي بارتفاع نسبي يبلغ 17% مقارنةً بالربع الأول من العام السابق.
توزيع تمويل الشركات الناشئة بحسب الدول
حصلت الشركات الناشئة السعودية على حصة الأسد من إجمالي تمويل الشركات الناشئة في المنطقة في شهر مارس/آذار، حيث بلغ إجمالي ما جمعته 175 مليون دولار، أي بنحو 70% من إجمالي التمويل، توزع التمويل على 20 صفقة، بما يقرب من 30% من إجمالي عدد صفقات الشركات الناشئة.
جاء تصدر الشركات الناشئة السعودية لجهة حصتها من إجمالي التمويل بفضل جولة التمويل (بالدين) التي حصلت عليها شركة تمارا (Tamara) المتخصصة في خدمات الشراء والدفع لاحقاً، حيث بلغت قيمة التمويل الذي حصلت عليه نحو 150 مليون دولار.
جاءت الشركات الناشئة الإماراتية في المركز الثاني بإجمالي 59 مليون دولار، توزعت على 18 صفقة، كان أبرزها صفقة شركة كلوب (Qlub) التي نجحت في جمع 25 مليون دولار في جولة تمويل تأسيسية، وصفقة تطبيق كوفي (COFE) بقيمة 15 مليون دولار، هذا إلى جانب صفقة شركة المنتور (Almentor) في مرحلة ما قبل التأسيس من السلسلة (ت) والتي بلغت قيمتها 10 مليون دولار.
حلّت الشركات الناشئة البحرينية في المركز الثالث بقيمة تمويل بلغت 6 مليون دولار موزعة على صفقتين، فيما جاءت الشركات الناشئة الكويتية في المركز الرابع بإجمالي تمويل بلغ 4 مليون دولار، تلاتها الشركات الناشئة المغربية بتمويل بلغ مليون دولار.
بخلاف الفترات السابقة، حيث كانت الشركات الناشئة المصرية تحتل مركز متقدمة لجهة حجم التمويل، فإنها جاءت في مركز متأخر في شهر مارس/آذار حيث حلّت في المركز الثامن بإجمالي تمويل بلغ 271 ألف دولار فقط موزعة على خمسة صفقات.
توزيع التمويل بحسب القطاعات
يستمر قطاع التكنولوجيا المالية بالاستحواذ على الحصة الأكبر من إجمالي تمويل الشركات الناشئة، فقد بلغ إجمالي ما جمعته شركات التكنولوجيا المالية في المنطقة نحو 180 مليون دولار، أي أكثر من 72% من إجمالي تمويل الشركات الناشئة في شهر مارس/آذار، كما بلغ عدد الصفقات التي حصلت عليها الشركات الناشئة الناشطة في هذا القطاع 8 صفقات.
جاءت الشركات الناشئة العاملة في قطاع التكنولوجيا الغذائية في المركز الثاني، وبفارق كبير عن حجم تمويل شركات التكنولوجيا المالية، إذ لم تتجاوز قيمة ما حصلت عليه شركات أكثر من 19 مليون دولار موزعة على 6 صفقات.
خلف شركات تكنولوجيا الأغذية جاءت شركات التكنولوجيا التعليمية بإجمالي تمويل بلغ 14 مليون دولار. في المركز الرابع جاءت شركات التكنولوجيا الصحية بإجمالي تمويل بلغ 7 مليون دولار.
اللافت في تمويل الشركات الناشئة بحسب القطاعات منذ النصف الثاني لعام 2022، هو بروز قطاعات جديدة على ساحة الشركات الناشئة في منطقة الشرق الأوسط وشمال إفريقيا، لعل من أبرز هذه القطاعات هو قطاع البلوكتشين والذكاء الاصطناعي والويب 3، فقد حصلت الشركات الناشئة العاملة في البلوكتشين والويب 3 على ما مجموعه 3.5 مليون دولار في شهر مارس/آذار.
يمكن لهذا القطاع إلى جانب الذكاء الاصطناعي، أن يشهدا نمواً كبيراً على المدى المتوسط، وأن ينتقل التركيز من قطاع التكنولوجيا المالية إلى الذكاء الاصطناعي والويب 3 والبلوكتشين، على اعتبار أن تلك القطاعات تحظى باهتمام كبير من حكومات المنطقة، سيما دول مجلس التعاون الخليجي، وتمثل على المستوى العالمي "الشيء الكبير القادم" في عالم التقنية والأعمال.
المصدر: ومضة
The growth of entrepreneurial activity witnessed across most parts of the Middle East and North Africa region (Mena) has recently permeated through to Yemen, with local entrepreneurs muddling through the economic implications of its near decade-old civil war to set the path for the establishment of a local tech ecosystem.
The rise in startup activity in Yemen is a knock-on effect of a relative hike in internet penetration rates, which, coupled with a growth in population has paved the way for the creation of local e-commerce businesses, most of which are concentrated in Sana'a, the capital.
For the most part, the majority of commercial activities are carried out in a few cities around the country where the impact of the ongoing armed conflict is less pronounced. After Sana’a, other cities like Aden and Taiz are running a close second in terms of having high spending power, lowering literacy rates and an increase in the use of the internet and smartphones.
A recent survey by consultancy firm Kepios states that roughly 73.2 per cent of the 30.2 million population has no access to the internet, which is mainly down to the prevalence of illiteracy, especially in rural areas and border towns, while only 26.7 per cent, amounting to nine million people are active internet users. The research also reports a 2.2 per cent increase between 2021 and 2022.
The recent entry of fourth generation (4G) broadband cellular network technology that has so far covered most parts of the Northern region in the country has also helped drive the emergence of more startups. Moreover, local startups are now piquing the interest of regional investors. Last month, food delivery startup Tawseel raised funding from UAE-based early-stage venture capital (VC) firm, Numu.
Another startup that also managed to raise funds is Bazzarry, an e-commerce startup that is also in the process of completing a $2.5 million pre-Seed round after almost two years of bootstrapping. The startup was founded in 2020 by Ali and Abdullah El-Habashi.
"We as Yemini entrepreneurs have not benefited from the Covid-19-induced technology boom that occurred in several other Arab countries because our startup ecosystem has not existed before that," says Abdullah Al-Habashi, COO and co-founder of Bazzarry. "Influenced by the growth witnessed in the startup sector in fellow countries, we started to see a remarkable pace of progress being shown in the local entrepreneurial sector.
Other factors that came into play include the fact that a large group of local expatriates living in the Gulf area launched high-growth tech companies or have become investors themselves."
The startup culture remains massively lacking in the country. Habashi argues that most emerging businesses in Yemen are not entirely digital-native initiatives, and lack funds or investment groups that can back them from the initial stages of founding upwards.
"Problem is, there’s a general weakened awareness of the startup genesis itself and how to build a company, scale it, target venture capital investments and exit. That's from the side of startups and investors as well.
This kind of knowledge is not commonplace. As a result, many companies find it hard to survive because of the lack of capital and the costs of building an e-commerce startup. There is no connected tech community, everyone is doing business individually," says Habashi.
Similar to other startups in Yemen, Bazzarry’s founders were faced with a litany of challenges from all standpoints when building their startup, including a shortage in human resources and technical talent. Consequently, the founders had to outsource technical support from companies based outside its home market.
E-commerce
For Habashi, redirecting the retail experience from offline to online as well as driving mass awareness towards marketplaces in the local retail landscape, was the main reason behind founding Bazzarry. Though challenging, the local market is filled with commercial opportunities, according to Habashi, citing a massive volume of trade in the retail sector
"We wanted to mimic the e-commerce experience as we see it elsewhere, ensuring every detail is covered. At Bazzarry, we wanted to create solutions to every challenge, starting from storage and warehousing, and distribution, to last-mile delivery," he continues. "From the get-go, our goal was not to make a profit but to encourage the market shift away from transacting offline and build a strong ecosystem of relevant stakeholders, no matter how challenging the economic situation is."
In Yemen, macro-level events trickle down to all parts of the supply chain. Lingering tensions due to political and security issues have caused various import-related challenges including the fact that imports have to be custom cleared twice, once in the Northeast region and once in the Southeast, which results in importers purchasing items at two different prices.
This, coupled with poor road connectivity and slow progress of technology infrastructure can result in sluggish performance.
Further, the growth in the market is stunted due to the weakened purchasing power, which has massively deteriorated, especially after the public sector salaries were suspended since the start of the war.
Yet, the value of the e-commerce market may be estimated to be worth around $1 billion, if that includes small retailers relying on social media apps like WhatsApp and Facebook to sell their products. But to achieve sustainable bottom-line growth, the startup also tends to source its products directly from large importers and brands.
To lure them, the startup takes a cut of every sale after the transaction is finalised.
"Social sellers make up a huge chunk of the retail space, but they don't have enough inventory and mostly don't utilise technology in their operations, and that would have a negative impact on our sales revenues. They are of course part of the target market but now we are inclined to deal with large brands and importers, whom we help in various aspects including product promotion," says Habashi.
The startup said it has so far attracted 17,000 customers, and processed 10,000 orders, and has over 16,000 stock-keeping units (SKUs) on its platform.
That said, according to Habashi, their product has not fully matured yet, with various aspects ripe for further development. “We try to adopt a ‘grow slow’ approach and not to expand very fast to avoid a quick burnout.”
Fintech
Online payments processed by banks have nearly stopped since the outbreak of the war. Alternatively, mobile wallets are becoming an increasingly popular way to manage financial transactions for startups as well as consumers.
Last year saw the entry of plenty of fintechs offering mobile wallets, which could in turn help spur the growth and popularity of e-commerce.
"Yemeni people no longer use MasterCards or Visas, which was not the case before the war broke out. There are a lot of bank accounts but banks don't provide incentives for customers to encourage them to pay online. So, they prefer cash over bank processes payments, But now there is a growing tendency to use mobile wallets, which now surpasses bank accounts in number," Habashi explains.
Broadly, payments constitute a major hurdle holding back the evolution of local startups which is mainly due to the fact that the country has two central banks, each issuing the same banknotes but with different exchange rates. As a result, the cost of money internal transfers has gone up.
"The discrepancy in the currency exchange is a formidable challenge, forcing startups to build ad hoc technologies to manage payments effectively. But the payments landscape is set to change for the better with the entry of more startups with e-commerce solutions like us. We have already tied up with a bank so online payments can be included in our payment options along with wallets and cash on delivery. Looking ahead, we are also looking to develop a fintech arm of our own," he adds.
Investments in the entire startup sector space is likely to tick up in the coming period, as the country is likely to enter an extended round of truce. But in such a volatile business landscape, the range of that growth is largely dependent on how events unfold.
Source: Wamda
Saudi Arabia announces launch of Riyadh Air, 200,000 new jobs eyed with Tony Douglas as CEO
13 Mar 2023Saudi Arabia announces Riyadh Air, PIF-owned airline has former Etihad boss Tony Douglas as CEO and will create 200,000 jobs
Saudi Arabia has announced the establishment of a new national airline.
Crown Prince Mohammad bin Salman bin Abdulaziz, Prime Minister and Chairman of the Public Investment Fund (PIF), announced the establishment of Riyadh Air, a PIF wholly owned company.
The new national carrier will leverage Saudi Arabia’s strategic geographic location between the three continents of Asia, Africa and Europe, enabling Riyadh to become a gateway to the world and a global destination for transportation, trade, and tourism.
Saudi announces Riyadh Air
Riyadh Air will be chaired by Yasir Al-Rumayyan, Governor of PIF, while Tony Douglas, who brings more than 40 years of experience in the aviation, transportation and logistics industries, has been appointed CEO.
The airline’s senior management will include Saudi and international expertise.
Operating from Riyadh as its hub, the airline will usher in a new era for the travel and aviation industry globally.
Riyadh Air will be a world-class airline, adopting the global best sustainability and safety standards across its advanced fleet of aircraft equipped with the latest cutting-edge technology.
The airline is expected to add $20bn to non-oil GDP growth, and create more than 200,000 direct and indirect jobs
As a wholly owned PIF subsidiary, the new national airline is set to benefit from PIF’s investment expertise and financial capabilities while expanding on the company’s operations to become a leading national carrier.
The new national airline represents PIF’s latest investment in the sector, along with the recently announced King Salman International Airport masterplan.
Riyadh Air aims to enhance customers’ journey while connecting them to more than 100 destinations around the world by 2030; through offering an exceptional experience with an authentic, warm Saudi hospitality at its heart.
The airline will provide tourists from around the world the opportunity to visit Saudi Arabia’s cultural and natural attractions.
Riyadh Air will also serve as a catalyst for the Saudi National Transport and Logistics Strategy and the National Tourism Strategy by increasing air transport options, raising cargo capacity and, in turn, growing international passenger traffic.
The establishment of Riyadh Air is part of PIF’s strategy to unlock the capabilities of promising sectors that can help drive the diversification of the local economy.
It will enable a more financially resilient aviation ecosystem in Saudi Arabia, supporting the industry’s global competitiveness in line with Vision 2030.
source: Arabian Business
Saudi Arabia’s gross domestic product (GDP) grew by 8.7 percent in 2022, registering the highest growth rate among the G20 countries, despite the complex economic conditions and challenges facing the world.
This rise has exceeded the expectations of international organizations, which have estimated the Saudi GDP to increase by 8.3 percent.
The recent growth is the highest in the last decade, according to the GDP report and national accounts indicators for the fourth quarter of 2022 issued by the General Authority for Statistics (GASTAT) on Thursday.
In this regard, experts told Asharq Al-Awsat that the Saudi government’s efforts to stimulate the local private sector and increase the volume of investments contributed to this rise, pointing that economic reforms have led to the growth of non-oil activities, which reflected positively on the Saudi economy.
In comments to Asharq Al-Awsat, Fadel Al-Buainain, member of the Shura Council, said the Saudi GDP saw a remarkable rise, as the fastest and highest growth at the G20 level, thanks to the government’s continuous efforts in economic reforms and the development of the non-oil sector, which is witnessing an unprecedented recovery.
The government continues to support the local private sector’s endeavor to raise the volume of production and export of national products, in addition to encouraging investments and attracting foreign capital, he stressed.
Economist Fahad bin Jumah told Asharq Al-Awsat that the growth of Saudi GDP was the result of the increase of non-oil activities and the efficiency of spending that was achieved thanks to the government’s incentives to the local private sector.
In its report, GASTAT said the current growth rate is the highest annual rate in a decade, adding that the Saudi GDP crossed, at current prices, the $1 trillion mark in 2022 — for the first time in history.
All economic activities registered positive growth rates during the year, it noted. The contribution of crude oil and natural gas activities reached 32.7%, followed by government services at 14.2%, manufacturing activities except oil refining at 8.6% and wholesale and retail trade activities, restaurants and hotels at 8.2%.
Source: Asharq Al-AwsatAsharq Al-Awsat
