Wa’ed Venture co-leads Mighty Buildings’ $52 million Series B round
16 Sep 2023 Written by Admin AdminSaudi Arabia’s Wa’ed Venture, the VC arm of Aramco, has co-led a $52 million Series B round in the US-based construction technology (contech) startup Mighty Buildings, along with BOLD Capital, with participation from Khosla Ventures and 15 other new and existing investors.
Mighty Buildings, founded in 2017, is a 3D printing contech known for its prefabricated, environmentally friendly and climate-resilient homes.
The new round brings the total funding raised since inception to $153 million.
The funds will be used to build out Mighty Buildings’ factories in North America and expand operations to Saudi Arabia and the United Arab Emirates.
Press release:
Mighty Buildings, the leader in 3D printing construction technology known for its prefabricated, environmentally friendly and climate-resilient homes, today announced that it has raised $52 million in funding. This latest round demonstrates strong investor confidence in Mighty Buildings' innovative offsite 3D printing construction technology.
The round was co-led by Wa’ed Ventures, the $500 million innovation-focused venture capital fund backed by Saudi Aramco, and by BOLD Capital Partners, a U.S. disruption and transformation-focused venture firm. Existing investor Khosla Ventures and new investor KB-Badgers, a South Korean firm investing from its sustainability-focused fund, were among a total of almost 20 investors in the round. New investors contributed more than half of the funds raised.
Funding is earmarked to accelerate the development and scale production of new homes for the U.S. market, where new home demand continues to increase, as well as to establish manufacturing operations in Saudi Arabia and the United Arab Emirates, two of the largest and fastest-growing construction markets in the world. The addition of operations in the Gulf region aligns with Mighty Buildings' strategy to transform housing construction globally while addressing sustainability, climate resilience, and the global housing shortage.
“The team at Mighty Buildings have reaffirmed our confidence in the incredible and diverse potential for innovation lying within the construction tech industry. Our investment in the company reflects our belief that innovative materials, such as those used in Mighty Buildings’ proprietary 3D-printing, will be a major driver for scalability and sustainability of homebuilding in the Gulf Region,” said Fahad Alidi, Managing Director at Wa’ed Ventures.
Mighty Buildings is meeting a rapidly growing demand for sustainable, prefabricated housing, as evidenced by the delivery of over 50 units to date, an important milestone that reflects the company's progress in developing scalable housing technology. By focusing on its mission, the company is making it easier, faster and more cost-effective to build homes, while pushing the construction industry towards lower carbon, climate-resilient solutions.
“This recent funding underlines Mighty Buildings’ leadership in the modular homebuilding market. It will accelerate our growth by funding the international expansion to one of the most exciting homebuilding regions in the world. We are thrilled about the support from such esteemed investors for our mission: solving the housing and climate crises by transforming the way the world builds homes,” said Mighty Buildings’ CFO Rene Griemens.
Following the opening of its innovative, industrial-scale factory in Monterrey, Mexico, in 2022, the company continues to emphasize its strategy of transformative home building. Mighty Buildings’ patented factory-based 3D printing manufacturing process speeds construction by 3-4x, providing for the completion of a home’s envelope in less than one week with drastically less water and near zero waste.
Using its patented Lumus material, which is 5x stronger than concrete, the technology of Mighty Buildings creates climate-resilient homes that resist severe weather, hurricanes and earthquakes.
Source: Wamda
NOMU Group raises $5 million Seed round to expand product offering
07 Jul 2023 Written by Admin AdminSaudi Arabia-based foodtech startup NOMU, has raised a $5 million Seed round from DIV Capital, Shurfah, Core Vision, Purity for Information Technology, and family offices in KSA such as Altoukhi Family Office and Bakr Family Office, along with angel investors.
NOMU will use the fresh funding to expand its reach in the hotel, restaurant, and catering (HoReCa) sector as well as develop a Software-as-a-Service (SaaS) solution and an AI-enabled procurement chatbot, with plans to cover Pakistan and sub-Saharan Africa in the near future.
NOMU was founded in late 2022 as a result of a merger between q-commerce startups, Saudi-based Jumlaty and Egypt’s Appetito.
Press release
NOMU, the innovative food-tech supply chain platform set to revolutionise the food and beverage industry in the MENA region, has announced the successful closure of its first round of financing after the merger and establishment of Nomu Group.
The seed round raised $5 million from leading investors, including DIV Capital, Shurfah, Core Vision, Purity for Information Technology, and prominent family offices in KSA such as Altoukhi Family Office and Bakr Family Office, along with angel investors. The funds raised will be used to expand NOMU's B2B HORECA offering, with a specific focus on restaurants and financing solutions. NOMU plans to develop a Software-as-a-Service (SaaS) solution and an AI assistant procurement officer chatbot. The company places a strong emphasis on sustainability and healthy unit economics, with two markets already achieving profitability.
Since its inception in 2022, NOMU has experienced rapid expansion and currently operates in four countries, including the Kingdom of Saudi Arabia, Egypt, Tunisia, and Morocco. The company has aggressive plans to expand into 50 cities/towns by 2025. Remarkably, NOMU has already proven a positive cashflow business model, recorded 10x revenue growth within 12 months and gross margins are above healthy sustainable levels, NOMU has established strategic international partnerships with industry giants such as Savola and Procter & Gamble.
Founded by Salman Attieh, Yassir El Ismaili El Idrissi, Shehab Mokhtar, and Ahmed Eldemerdash, NOMU Group's headquarters are located in Riyadh, KSA, with a holding structure in Abu Dhabi's International Financial Centre. This strategic positioning enables NOMU to develop its operations further and expand its footprint, with plans to cover Pakistan and key sub-Saharan countries in the near future.
"We are thrilled with the overwhelming support we have received from our investors, both in terms of funding and strategic partnerships," said Shehab Mokhtar, Co-Founder and CEO of NOMU Group. "This seed round allows us to strengthen our B2B HORECA offering, invest in cutting-edge technology, and expand into new markets. NOMU is committed to revolutionizing the food-tech supply chain, providing greater convenience and efficiency for businesses in the MENA region."
NOMU's successful seed funding round marks a significant milestone in the company's journey to transform the F&B supply chain. With its strong financial backing, strategic partnerships, efficient centralized OPEX and visionary leadership, NOMU Group is poised to reshape the industry and drive innovation throughout the region.
Source: Wamda
Jada Fund of Funds invests in Investcorp’s $500 million Saudi pre-IPO growth fund
13 Jun 2023 Written by Admin AdminJada Fund of Funds, a subsidiary of Saudi Arabia's Public Investment Fund (PIF) has invested in Bahrain's Investorcorp, a $500 million pre-IPO growth fund.
The fund, launched last year, aims to invest in a diversified portfolio of high-growth startups looking to go public over the next few years.
Last August, Investcorp led a $100 million pre-IPO funding round in TruKKer, a trucking marketplace, with over 45,000 trucks on its platform, and NourNet, a local ICT company serving 1,200 corporate clients operating across over 20 industries.
Launched in late 2019, Jada is a $1.07 billion (SAR 4 billion) fund targeting investments in startups, venture capital (VC) funds and private equity funds.
Press release
Investcorp, a leading global alternative investment firm, has announced that Jada Fund of Funds, a subsidiary of the Public Investment Fund (PIF), has committed to invest in Investcorp Saudi Pre-IPO Growth Fund (the “Fund”). The Fund was launched last year to invest in a diversified portfolio of companies, primarily based in Saudi Arabia that are targeting to access the public capital markets over the next few years. Last August, Investcorp led a $100 million Pre-IPO funding round in TruKKer, MENA’s largest digital freight network, with over 45,000 trucks inducted on its platform. This was followed by the Fund’s investment in NourNet, one of Saudi Arabia’s leading ICT companies, with over 1,200 B2B clients operating across over 20 industries.
The Fund is targeting equity growth capital investments across a range of companies primarily based in Saudi Arabia with the potential to access the capital markets within 3-4 years. The Fund provides investors with an opportunity to gain exposure to growing and market-leading businesses in strategic, high growth and underserved sub-sectors such as business services, transport and logistics, healthcare and consumer.
“One of Jada's primary goals is to support the growth of the local private equity ecosystem, and we look forward to see Investcorp's Saudi Pre-IPO Growth Fund playing an impactful role in supporting companies across the Kingdom that have strong growth trajectories and the ability to invigorate the wider SME community,” said Bandr Alhomaly, CEO of Jada Fund of Funds Company".
“We are excited about Jada’s commitment to anchor our Fund. We share a common objective of supporting national champions in their growth and value creation journey, contributing to the Kingdom’s economic development and diversification objectives”, said Walid Majdalani, Head of Private Equity MENA and Southeast Asia.
“Jada’s commitment to Investcorp Saudi Pre-IPO Fund marks the start of a long-term strategic partnership, as Investcorp continues to grow its assets under management across multiple asset classes in Saudi Arabia,” said Yasser Bajsair, Head of Investcorp Saudi Arabia.
Source: Wamda
Saudi Arabia vows commitment to provide support to host World Expo, ensure its success
08 Mar 2023 Written by Admin AdminThe first workshop was organized with the presence of Fahd Al-Rasheed, CEO of Royal Commission for Riyadh City and members of the BIE’s visiting delegation as well as a number of representatives of concerned agencies.
A delegation from the Bureau International des Expositions (BIE) Enquiry Mission has held the first workshop to assess the Kingdom’s bid for hosting the World Expo 2030 in Riyadh as part of the BIE’s procedures to select the hosting country.
The first workshop was organized with the presence of Fahd Al-Rasheed, CEO of Royal Commission for Riyadh City and members of the BIE’s visiting delegation as well as a number of representatives of concerned agencies.
The workshop discussed the Kingdom of Saudi Arabia’s Expo 2030 bid and the added value of hosting the high-profile global exhibition in Riyadh.
During the workshop, Al-Rasheed explained that Riyadh has the potential to host an exceptional version of the World Expo thanks to the special care and attention of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister and Chairman of the Board of Directors of the Royal Commission for Riyadh City.
He also pointed out that Riyadh has hosted large international events before and has won international recognition in this filed.
The delegation has also met with Minister of Finance Mohammed bin Abdullah Al-Jadaan and reviewed the details related to the Kingdom’s commitment to financial support the exhibition.
The minister has voiced the Kingdom’s commitment to put in place all necessary preparations to finance and host the World Expo, including providing basic and operational expenditures.
Al-Jadaan added that the economic and financial reforms the Kingdom has witnessed as per the Saudi Vision 2030 have led to pushing and accelerating the growth rate, adding that the World Expo falls within the Kingdom’s initiatives which will contribute to creating various economic opportunities and achieving revenues to several sectors in Riyadh.
source: Zawya
في شهرها الأول من عام 2023 الشركات الناشئة في الشرق الأوسط وشمال إفريقيا تجمع 100 مليون دولار، فهل هي بداية الركود؟
12 Feb 2023 Written by Admin Adminجمعت الشركات الناشئة في الشرق الأوسط وشمال إفريقيا نحو 103 ملايين دولار فقط في شهر يناير/كانون الثاني 2023 توزعت على 22 صفقة، بانخفاض في قيمة التمويل على أساس شهري يبلغ 17% تقريباً، وبأكثر من 66% مقارنةً بعام 2022. كما انخفضت عدد الصفقات بنسبة 73% مقارنةً بالفترة نفسها. نستعرض في هذا المقال توزيع تمويل الشركات الناشئة بحسب الدول والقطاعات، كما نناقش إمكانية انخفاض تمويل الشركات الناشئة في الشرق الأوسط وشمال إفريقيا في عام 2023.
توزيع تمويل صفقات الشركات الناشئة بحسب الدول
استحوذت الشركات الإماراتية على 92.6 مليون دولار من إجمالي التمويل، أي بنسبة تفوق الـ90% من إجمالي تمويل الشركات الناشئة في شهر يناير/كانون الثاني. توزع تمويل الشركات الناشئة الإماراتية على 12 صفقة أي أكثر من 50% من عدد صفقات الشركات الناشئة للفترة نفسها.
جاءت الشركات الناشئة المصرية في المركز الثاني بقيمة 3.4 مليون دولار، توزعت على 3 صفقات. كان أكبرها صفقة شركة Cleantech KarmSolar التي حصدت 3 ملايين دولار.
أما في المركز الثالث فجاءت الشركات الناشئة السعودية بفارق ضئيل عن الشركات الناشئة المصرية حيث جمعت نحو 3.3 مليون دولار. كانت الحصة الأكبر منها لشركة "مطابخي" وهي شركة ناشئة تنشط في مجال المطابخ السحابية حيث نجحت الأخيرة في جمع 2.3 مليون دولار.
ويشكل مجموع ما حصلت عليه الشركات الناشئة الإماراتية والمصرية والسعودية نحو 99.3% وهي قد تكون المرة الأولى التي تصل فيها نسبة تركز التمويل في الدول الثلاث لهذه النسبة الكبيرة. إذ لم يتعدى حجم التمويل الذي حصلت عليه الشركات الناشئة القطرية (التي حلت في المركز الرابع) والعراقية والمغربية والبحرينية أكثر من 3 ملايين و750 ألف دولاراً. ينطبق الأمر أيضاً على عدد الصفقات التي تركزت أيضاً في كل من الإمارات ومصر والسعودية بنسبة تتجاوز الـ77%.
توزيع تمويل الشركات الناشئة بحسب القطاعات
ما زال قطاع التكنولوجيا المالية يستحوذ على حصة الأسد في حجم تمويل صفقات الشركات الناشئة إذ بلغت قيمة التمويل الذي حصلت عليه الشركات الناشئة الناشطة في هذا القطاع نحو 68.9 مليون دولار، أي ما يعادل 67% من إجمالي تمويل الشركات الناشئة في المنطقة لشهر يناير/كانون الثاني.
الجديد في توزيع تمويل الشركات الناشئة قطاعياً، هو بروز قطاع شركات الميتافيرزس التي حصلت على تمويل بقيمة 20.9 مليون دولار أو حوالي 20% من قيمة إجمالي التمويل. أبرز القطاعات الأخرى التي حصلت على تمويل هي: تكنولوجيا الأغذية (3.8 مليون دولار) والتكنولوجيا النظيفة (3.3 مليون دولار) وتكنولوجيا الصحة (1.9 مليون دولار) هذا بالإضافة إلى قطاع اللوجستي والتنقل والإعلام والتكنولوجيا الزراعية والتجارة الإلكترونية.
هل يتجه تمويل الشركات الناشئة في الشرق الأوسط وشمال إفريقيا نحو الركود؟
اظهر شهر يناير/كانون الثاني، كما عرضنا سابقاً، انخفاض كبير نسبياً في حجم التمويل وعدد الصفقات، إلا أنه في الحقيقة لا يعكس ميلاً عاماً نحو انخفاض وركود تمويل الشركات الناشئة في المنطقة. فعلى الرغم من انخفاض التمويل في شهر يناير/كانون الثاني، إلا أن حجم التمويل في شهر فبراير/شباط، حتى تاريخ كتابة هذه السطور، يظهر ارتفاعاً كبيراً، قد يصل إلى أكثر من 5 اضعاف حجم التمويل في شهر يناير/كانون الثاني، إذ تجاوز حجم التمويل صفقات الشركات الناشئة في شهر فبراير/شباط أكثر من 400 مليون دولار، وهو رقم مرشح للزيادة حتى نهاية شهر فبراير/شباط.
إذن بصورة عامة لا يمكن القول إن حجم التمويل في شهر يناير/كانون الثاني يشي بميل عام نحو الانخفاض، فالتوقعات التي ترشح حدوث هذا التراجع، بناءً على الاتجاه العالمي الانكماشي، تتجاهل خصوصية منطقة الشرق الأوسط وشمال إفريقيا، والتي تملك محركات خاصة بها كفيلة بتجنيبها الأثار الانكماشية للاقتصاد العالمي، التي ظهرت اثاره في انخفاض تمويل الشركات الناشئة عالمياً. وقد سبق وأن بينا ذلك في مقالة سابقة، يمكن الاطلاع عليها هنا.
Saudi PIF’s second green bond sale of $5.5bln oversubscribed more than 6 times
11 Feb 2023 Written by Admin AdminSaudi Arabia's Public Investment Fund (PIF) said its latest green bond issuance, which raised $5.5 billion was oversubscribed more than six times with books exceeding $33 billion.
It was issued in three tranches, comprising of $1.75 billion with seven-year tenure, $2 billion with 12-year tenure and $1.75 billion with a 30-year tenure, PIF said in a statement on Friday.
The sovereign wealth fund did not disclose the pricing of the bonds. Reuters reported earlier, citing sources, that the seven-year paper was priced at 115 basis points (bps) over US Treasuries (UST), the 12-year at 145 bps over UST and the 30-year bonds at 185 bps over UST.
The bond was sold to a wide range of institutional investors globally, including Asia, PIF said.
Fahad AlSaif, Head of Global Capital Finance Division at PIF, said: "Strong demand from international institutional investors for this second issuance is a testament to the ongoing success of PIF’s capital raising strategy, its credit profile and financial strength.”
source: Zawya
Star-Studded LEAP23 Offers US$1.54 Million Prize Pool in Startup Pitch Challenge and Cloud Hackathon
01 Feb 2023 Written by Admin AdminLEAP23, the world’s most visionary and valuable technology event, will host two competitions with a prize purse of US$1.54 million, as well as a welcome a raft of global celebrities and tech industry luminaries ranging from music icon will.i.am and FIFA World Cup winner Carles Puyol to Amin H Nassr, CEO of Aramco, and Jae Sook Evans, Chief Information Officer at Oracle.
LEAP23 is set to run from February 6-9 at the Riyadh Front Exhibition and Conference Centre and will be the setting for the inaugural LEAP Rocket Fuel Startup Pitch Challenge, powered by Saudi Arabia’s National Technology Development Programme (NTDP). The initiative is a collaboration between the Kingdom’s Ministry of Communications and Information Technology (MCIT), the MiSK Foundation, and NTDP.
Ninety global startups will fight for the chance to be one of the 15 nascent businesses selected to pitch before a judging panel consisting of Shark Tank India’s Ghazal Alagh, Baroness Karren Brady, aide to The Apprentice’s Alan Sugar, Saudi angel investor Tala Al Jabri, and Dragon’s Den stars James Caan and Steven Bartlett.
The judges will present the LEAP Award and its accompanying US$250,000 main prize to the outstanding startup, while US$150,000 will go to the best early stage startup, the most innovative startup pioneered by women, the new business that best embodies the LEAP spirit, the most impressive startup occupying the Metaverse and Web 3.0, and the pitch that represents the most exciting, ground-breaking use of Artificial Intelligence.
On the show’s final day, LEAP23 will also host the winners’ ceremony of the ongoing Alibaba Cloud Saudi Hackathon, which comes with its own prize pool of US$532,000. Organisers said the response to the four-day hackathon, which started on January 29, was huge.
The winning solutions and ideas implementors – those that have made the best use of Alibaba Cloud technology to facilitate deployment, development, scalability, and fast go-to market solutions – will be presented with their awards on February 9.
LEAP23 is set to welcome 920 scheduled investors, including Sequoia Capital, Octopus Ventures, 500 Global and many more. Between them, they control an unprecedented US$1.9 trillion in assets under management. And with more than 5,000 potential meetings bookmarked, the four-day show promises to be the event where decisions are made and deals get done.
As well as pop superstar will.i.am and former Barcelona and Spain legend Puyol – both now entrepreneurs within the Metaverse – the latest batch of tech heavyweights and international celebrities set to speak at LEAP23 include Séan Garnier, CEO of Urbanball and world freestyle football champion, Gary Sorrentino, Global Chief Information Officer at Zoom, Helen K Pan, General Manager at Apollo Autonomous Driving – Baidu, Jim Deluca, CEO of Ceer, Hatem Dowidar, Group CEO at e& Group (formerly Etisalat), and a host of other C-suite thought-leaders from major global technology companies.
LEAP23’s newly released roster of tech talent also highlights the Saudi convention’s ability to connect East and West, with Selina Zhang, President of Alibaba Cloud, and Wu Eddie Yongming, Co-founder of Alibaba Group confirmed alongside Sheikh Talal Said Marhoon Al Mamari, CEO at Omantel, Saleem AlBlooshi, CTO at Du, Sheikh Bader bin Rashid Al Khalifa, Chief Communications and Sustainability Officer at Batelco, and Charles Li, ex-CEO of Hong Kong Exchange and Chairman of Micro Connect.
In connecting the most influential players from the East and West, LEAP23 will be the stage for announcing strategic alignments and large-scale business deals that will impact the tech community globally.
Last year, more than US$6 billion worth of investments were announced and organisers are confident this year, with an increase in investors, exhibitors, and attendees from around the world, will surpass that figure.
With more than 900 exhibitors confirmed for this year’s second iteration, LEAP23 will host more than 700 speakers, including billionaire investors, astronauts, and athletes-turned-tech investors across its 15 conferences. A host of Saudi Arabian heavyweights such as STC and NEOM will be accompanied by an international cadre of the biggest names in tech, such as Snapchat, Google Cloud, Amazon Web Services, Visa, Alibaba Cloud, Ericsson, Huawei, and Nokia.
Taking place alongside LEAP23 is the inaugural DeepFest, which will explore the global AI eco-system and showcase life-changing, multi-sector initiatives and innovations related to clean tech, the Metaverse, and women in technology. LEAP23 has garnered support from numerous leading government and private sector organisations.
Strategic partners and sponsors include NEOM, STC, Saudi Aramco, Mobily, IBM, Microsoft, Ericsson, Huawei, and Najm Insurance. The 2023 edition will also host country pavilions from the United Kingdom, Finland, Japan, Pakistan, Indonesia, Oman, and India.
The Ministry of Communications and Information Technology (MCIT) is powering LEAP in conjunction with Tahaluf – a strategic joint venture co-owned by Informa PLC and the SAFCSP.
Source: African Business
Saudi Arabia is expected to surpass the UAE in receiving foreign direct investment in 2023, for the first time since 2012, as both nations continue to be major beneficiaries of the inflow of funds, a recent industry report showed.
According to the Lumina Cross-Border insights report, FDI into Saudi Arabia and the UAE hit record highs with $40 billion in 2022, showing a rise of 58 percent over the previous year.
“Key MENA projects driving FDI and UK-to-Middle East investment in 2023 will include infrastructure and engineering, tourism and hospitality, and clean/renewable energy, most notably, the megaprojects in Saudi Arabia,” stated the report.
For instance, Saudi Arabia’s top seven infrastructure projects will cost $690 billion to construct. These schemes are NEOM, ROSHN, Diriyah Gate, Jeddah Central, Red Sea Project, AlUla, and Qiddiya.
It added: “Regional presence for aspiring global firms to take advantage of such growth is now seen as a must rather than a nice-to-have.”
The report further predicted that the two-way investments between the Middle East and Europe will drive record FDI levels in 2023.
“As global corporates and funds increasingly set up roots in the region, with talent continuing to move in, 2023 is anticipated to be another record year for FDI in the Middle East.”
It said that deal-making is also expected to flourish due to a largely resilient regional-led global mergers and acquisitions environment last year.
The report also predicts a significant change in existing partnerships in the region as firms in the UK will reassess joint ventures in the Middle East to determine their relevance today.
“2023 will be a tale of two halves, with H1 seeing highly active Middle East corporates and funds continuing to invest into European companies, as domestic markets continue to face varying levels of economic turbulence.
This will create a myriad of investment opportunities to diversify globally and gain access to best-in-class skills and talents,” said Andrew Nichol, partner at Lumina Capital Advisers.
He added: “In H2 we anticipate improving sentiment across developed markets, which will drive global demand for natural resources, oil included. The region is extremely well positioned for yet another strong year ahead.”
source: Arab News
Saudi to drive innovation with World Economic Forum accelerator deal
16 Jan 2023 Written by Admin AdminA new accelerator programme set up by Saudi Arabia’s King Abdulaziz City for Science and Technology (KACST) and the World Economic Forum (WEF) aims to support efforts to drive innovation in the kingdom.
Based on the new programme, the state-backed KACST will work with WEF to “connect experts and knowledge partners from the public and private sector to identify and unlock new promising markets as part of the ongoing work to transform Saudi’s economy”, according to a statement.
Saudi Arabia has plans to build a virtual “house” in the village, thus opening a door to opportunities, investment and collaboration among national stakeholders and international entities. It will host events and other activities that promote interaction and knowledge sharing.
Early this year, WEF announced plans to set up the Global Collaboration Village to promote public-private cooperation and tackle the world’s most pressing challenges.
source: Zaway
The plant, set to open in 2025, will serve Saudi Arabia and export markets in the Middle East and North Africa
Nestle will invest SAR7bn ($1.86bn) in Saudi Arabia in the coming 10 years, starting with a plant to make infant products and ready-to-drink coffee, as the kingdom looks to attract more foreign investments to diversify its oil-dependent economy.
The plant, set to open in 2025 with an initial investment of SAR375m riyals, will serve Saudi Arabia and export markets in the Middle East and North Africa, the Swiss food giant said in a statement. The investments over the next decade are expected to create 3,500 direct and indirect jobs.
“Nestle’s investments will contribute to food security and the development of local businesses, fuel local innovation, and create jobs for youth and professionals,” Khalid Al-Falih, Saudi Arabia’s Minister of Investment in Saudi Arabia, said in the statement.
Saudi Arabia has set a target of attracting around $100bn a year of foreign direct investment by 2030 as it looks to diversify its economy. Yet most of the foreign investments in the country has been into the oil industry.
Of the nearly $20bn of FDI last year, about $12bn was related to an oil pipelines deal by state-owned oil producer Saudi Aramco.
source: Gulf Business
