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

Reports, newspapers, and international economic magazines suggest that the major economies in the world will experience a slowdown in growth. According to a published report by the United Nations Conference on Trade and Development (UNCTAD), the world is heading towards a long-term recession unless monetary and fiscal policies that control some advanced economies change quickly. The World Bank also warned that the global economy for 2023 is at risk, with high inflation rates and interest rates, decreased investment, and ongoing war in Ukraine. The International Monetary Fund (IMF) expects economic growth to decline to 2.7% in 2023 compared to 3.2% in 2022. This global slowdown could lead to a decrease in gross domestic product (GDP) that is less than what it was before the coronavirus pandemic and will cost the world more than $17 trillion in lost productivity. The Fund says that growth expectations for 2023 will be the lowest since 2001. The Chief Economist at the Fund, Pierre-Olivier Gourinchas, warned in statements to the British Financial Times that there is a possibility that global growth could drop to less than 1% in 2023.

The major economies of the United States, Europe, and China are experiencing low growth expectations. According to the World Bank, the United States will face a growth rate of no more than 1% in 2023, while growth in Europe is expected to approach zero, and China's growth is expected to be no more than 4.3% (Figure 1). It is also expected that the unemployment rate in the USA will be around 3%, with a continuing increase in the current account deficit to more than $800 billion in 2023.

Although the discussion is about how all regions will be affected by this recession, the alarm bells are ringing louder for developing countries, especially with the worsening problem of debt. The report also cites another reason for economic concern, with the increasing impacts of climate change, where losses and damages are increasing within weak economies that lack the financial resources to deal with disasters.

The UNCTAD warns that excessive monetary tightening and insufficient financial support could expose the economies of developing countries to further consecutive crises. It is expected that middle-income countries in Latin America and low-income countries in Africa will suffer the effects of this slowdown, with the possibility that the problem of debt default will surface.

The Director of the International Monetary Fund, Kristalina Georgieva, warned, in her statements, that the global economy will witness difficult conditions in 2023, as economic stagnation and continued high levels of inflation will be its most prominent feature, and this is at a time when its engines, that is, the American, Chinese and European economies, have witnessed a significant slowdown since the last quarter in the last year.

These warnings align with other bleak forecasts released by a number of international financial institutions and European central banks, which also see the likelihood of a global economic recession very possible in 2023.

The billionaire and American investor Stanley Miller, who gained fame in 1992 after betting on the collapse of the British pound and making gains of up to ten billion dollars, says "If we don't see an economic recession in 2023, it will be like a miracle," because the expected growth scenario for next year will be 2.4% at best and could slow down to 1.2%, the same level of growth that existed during the global financial crisis in 2008.

War in Ukraine

The war in Ukraine is weighing heavily on the global economy, particularly in regards to grain supplies. The outbreak of war has led to higher prices for food and fertilizers, harming importers and prompting many countries to impose restrictions on exports. Around 345 million people are at immediate risk of severe food insecurity as a result. According to the World Food Programme, over 828 million people around the world go to bed hungry every night. The countries most affected are those that depend on food imports from Ukraine and Russia, amounting to 48 countries, mostly low-income countries[1].

Source: International Monetary Fund data.

Inflation rates and global debt

Inflation is considered a global phenomenon that has been exacerbated by the war in Ukraine and the disruption of global supply chains following COVID-19 closures in China. The International Monetary Fund (IMF) expects consumer prices to rise to record levels in emerging and developing economies, reaching 10% in 2022 before dropping slightly to around 8.1% in 2023. Although the gross domestic product (GDP) exceeded $100 trillion for the first time in 2022, growth is threatened to come to a halt according to the Centre for Economics and Business Research (CEBR) in Britain. Also, raising interest rates will increase the burden of new and existing loans, lead to a decline in overall demand and investment, and affect productive sectors and the labor market. It is expected that households and businesses around the world will face strong economic difficulties due to rising commodity prices, especially food and energy, and with continued central bank interest rate hikes to curb inflation, as well as supply chain crises and rising energy and food prices due to the war in Ukraine. In this context, statistics from the IMF show that Arab countries in the Middle East, Asia, sub-Saharan Africa, and Latin America are suffering from higher inflation rates than other countries.

In light of these circumstances, the issue of debt reemerges, as the IMF warns of the worsening global debt, which has exceeded 303 trillion dollars, or the equivalent of 350% of the global GDP. This will result in more cases of default in poor countries, with Sri Lanka and Lebanon serving as examples of this deficit.

According to World Bank data, the external debts of low- and middle-income developing countries exceeded 9.2 trillion dollars by the end of 2021, which is more than twice its value a decade ago.

Global Trade and Oil

The decline in global economic growth means that global trade is likely to decline, which will affect foreign investment and thus emerging economies. This is not to mention the possibility of trade wars between industrialized countries and their repercussions on emerging economies. Regarding the impact of the recession on the economies of countries, it is related to the degree of openness of these economies to the global economy. The more open they are, the more vulnerable they are to the consequences of the economic crisis. Moreover, countries that rely on oil exports in their economies are more vulnerable to the effects of the economic crisis, especially when it comes to oil prices.

After oil prices witnessed a significant increase due to the ongoing war in Ukraine, reaching its highest rate in 2022, which is around $100 per barrel, it is expected to decrease during 2023 to below $100 and is expected to decrease further if the economic recession continues, reaching below $70 per barrel by 2025. In general, oil-producing countries remain better off than other countries during the recession period due to the oil revenues that enable them to implement programs to support various sectors to counter the effects of the recession.

Arab Countries' Economies

While the major economies of the world are experiencing a slowdown in growth, including China, the European Union, and the United States, some unexpected Arab countries are achieving a breakthrough in economic growth. Comparing economic growth data for the Arab region in 2022 and 2023 reveals significant disparities in growth expectations between the two years, with clear variations among countries.

In 2022, several Arab countries, especially those in the Gulf Cooperation Council, Egypt, and Iraq, experienced relatively high growth, likely due to the post-COVID-19 recovery period. However, in 2023, significant changes are expected due to recent developments, as previously discussed.

Some countries, such as the Gulf Cooperation Council countries, especially Kuwait and Saudi Arabia, are expected to experience a recession. On the other hand, other countries will experience growth at different rates, particularly Libya, which is expected to lead Arab countries in achieving an unexpected breakthrough in growth, with a growth rate of approximately 18%. Djibouti and Mauritania will follow with growth rates of around 5%, followed by Egypt, the United Arab Emirates, and Iraq (Figure 2).

Unemployment is considered one of the main challenges facing Arab economies. According to World Bank data, there is significant variation in unemployment rates in Arab countries compared to major world economies. According to the ESCWA report, unemployment rates among the Arab population are the highest in the world, with Palestine and Jordan recording the highest unemployment rates in 2021 at around 26% and 24% respectively, followed by Sudan at 21%. According to the findings of several international economic reports indicate, the current economic situation in non-oil Arab countries is very poor today and does not seem to improve in the future unless effective national policies and favorable international conditions are available. On the other hand, it is expected that Egypt, Bahrain, and Kuwait will record much lower rates of 6%, 4%, and 1%, respectively (Figure 2).

Source: International Monetary Fund data.

It is expected that the unemployment rate in the European Union will reach around 7%, with Greece and Spain recording relatively high rates of 14% each, while it will reach around 10% in Italy and around 7% in France, Belgium, and Sweden. In the United Kingdom, it is expected to reach around 5%. On the other hand, both the United States and Canada are expected to record rates of 4% and 7% respectively, while this rate will reach around 3% in both Germany and Switzerland (Figure 4).

Despite the pessimistic economic forecasts, the economies of the Gulf Cooperation Council (GCC) countries have continuously grown over the past two decades, achieving significant leaps in GDP at current prices for all GCC countries combined from less than $400 billion in 2000 to more than $2 trillion in 2022, making the GCC economies among the world's top 10 largest economies. This significant achievement is driven by ambitious economic recovery plans, such as Saudi Arabia's Vision 2030 mega-projects, Dubai's Expo 2020, Qatar's investments related to the World Cup, as well as economic diversification programs.

 Source: International Monetary Fund data.

The Impact of Recession on Daily Life

During recession the important question remains about the impact on daily life. Climate shocks, regional conflicts, and the spread of pandemics have disrupted food production and distribution, as well as an increase in the cost of food. Layoffs are likely to be higher and more widespread, and employers may hold back on hiring, leading to a small to medium increase in unemployment rates. However, not everyone will be equally at risk. People vary in their exposure to the impacts of a recession based on their specialties and experience. Those with high demand for their specialties - whether they are front-line employees, IT engineers, or top-level executives - are likely to secure a job or keep their current positions and even receive salary increases and bonuses.

Source: International Monetary Fund data.

Summary

Reports and various sources indicate that major economies in the world, including China, the European Union, and the United States, will experience a slowdown in growth as a result of the blows that the global economy has received over the past two years, starting with the lockdowns due to the coronavirus pandemic, passing through the Russian-Ukrainian war, and currently, the likelihood of the global economy drifting towards recession due to inflation and interest rate hikes. The World Bank has warned of this recession amidst rising inflation rates and interest rates, declining investment, and the ongoing war in Ukraine. The International Monetary Fund expects economic growth to decline to 2.7% in 2023 compared to 3.2% in 2022, which is a global slowdown that could cost the world over $17 trillion in lost productivity.

Accordingly, households and companies around the world are expected to face strong economic difficulties. There are also expectations of a worsening of global debt, which has surpassed $303 trillion, leading to more cases of defaults in poor countries.

Regarding oil, after oil prices experienced a significant increase due to the ongoing war in Ukraine, it is expected to decrease to below 100 during 2023. Generally, oil-producing countries remain in a better position than other countries during the recession due to high oil revenues.

On the other hand, Arab economies have shown variation in growth rates. While some Arab countries will experience a recession after the post-COVID-19 boom, such as Gulf Cooperation Council countries, especially Kuwait and Saudi Arabia, there are Arab countries that will achieve significant growth, such as Djibouti, Egypt, Iraq, and Mauritania, with Libya expected to achieve a breakthrough in economic growth of up to 18%. In any case, despite the pessimistic economic expectations, Gulf Cooperation Council economies have grown continuously over the past two decades and achieved significant leaps, surpassing the trillion-dollar GDP threshold in 2022. Finally, in view of the pessimist economic growth expectations, there is an urgent need for economic programs to tackle the negative effects of the recession and mitigate its impact on poor households and small and medium enterprises.

Recommendations to confront the recession

The role of governments and policy makers is crucial in facing difficult economic times. The measures taken by the government will depend on the specific causes and characteristics of the recession, but the goal of these measures is to stabilize the economy, support individuals and businesses, and promote economic growth. Governments can play a role in mitigating the effects of a recession through a number of economic policies, including:

• Fiscal policy: Governments can use fiscal policy, such as increasing government spending or tax cuts, to stimulate demand and boost economic activity. Fiscal policy should target protecting the most vulnerable groups through targeted and temporary transfers, investing in enhancing productivity, and investing in human capital, digital transformation, green energy, and diversifying supply chains.
• Monetary policy: Central banks can use monetary policy, such as lowering interest rates, to make borrowing cheaper and stimulate economic activity (At a time when the economy is suffering from inflation, it will be difficult to use this policy).
• Infrastructure investment: Governments can invest in infrastructure projects, such as roads, bridges, and public transportation systems, to create job opportunities and stimulate economic activity.
• International cooperation: Governments can work together through international organizations to coordinate efforts and provide support during a recession, and to promote international trade to increase exports and stimulate economic activity.

For individuals and companies, here are some possible strategies to cope with a recession:

1- Cost-cutting: Review expenses and identify areas where spending can be reduced, especially non-essential expenses, and renegotiate contracts.

2- Increasing savings: Establish an emergency fund to help cope with financial difficulties.

3- Diversifying investments: Consider a diversified portfolio that includes both stocks and bonds to reduce overall risks.

4- Debt management: Prioritize paying off high-interest debts and consider repayment methods or renegotiating them to reduce monthly payments.

5- Embracing technology: Embrace new technologies and innovations to improve efficiency, productivity, and increase revenue.

6- Focusing on skill-building: Invest in personal and professional development to increase marketable skills and competitiveness.

7- Strengthening relationships: Strengthen relationships with customers, suppliers, and other stakeholders to increase flexibility and support during difficult times.

8- Seeking government support: Look into government programs, tax exemptions, or other financial incentives to help manage the recession period.

[1]International Monetary Fund: https://www.imf.org/ar/Blogs/Articles/2022/09/30/global-food-crisis-demands-support-for-people-open-trade-bigger-local-harvests.

LEAP23, 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

A 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

Saudi Arabia-based Revival Lab will establish “Fin-tactics Ventures", a venture builder specialised in fintech, insuretech and regtech, supported by a $40 million venture capital fund managed by Arbah Capital to invest in startups based in Saudi Arabia, the Middle East and the rest of the world.

Fintactics Ventures has come together through several partnerships including Aion Digital, which specialises in providing technical solutions to the financial sector in the region, Bitfy Holdings to provide blockchain services and Holol, a services platform to facilitate and enhance housing finance options in Saudi Arabia.

Press release:

Revival Lab announces the venture builder, "Fin-tactics Ventures", at the World Fintech Show conference as the first venture builder specialised in fintech, insurance and regulatory technologies in the region, and supported by 150 million riyals venture capital, approved by the Capital Market Authority (CMA) and managed by Arbah Capital to invest in promising opportunities in the sector in the Kingdom, the Middle East and the rest of the world.

The announcement included the signing of a partnership agreement between Fin-tactics Ventures and Aion Digital, represented by its Chairman, Mr Abdullatif Al-Rajhi, a company that specialised in providing technical solutions to the financial sector in the region. In light of this partnership, the joint venture (Lizam) was announced to create an integrated digital experience that is compatible with customer requirements and achieve the necessary flexibility by providing the service (RegTech-as-a-Service) with all the capabilities required for digital onboarding, eKYC, and compliance. In addition to verification by regulators to combat risk and fraud. This partnership aims to shape the financial landscape of the future and to develop and promote the expansion of well-built digital products.

The event also included other important partnerships, including signing with Bitfy Holdings to provide blockchain services and accelerate the adoption of its specialised technologies in the financial and non-financial sectors in the Kingdom. It is worth noting that " Fin-tactics Ventures has been a shareholder in Bitfy Holdings, fintech experts through direct investment within the latest investment round. Fin-tactics has also signed with one of the major banks in Brazil, Banco de Brazil, to provide fintech solutions to provide blockchain technology as well.

During the conference, another agreement was also signed to launch Holol, a services platform to facilitate and enhance housing finance options in the Kingdom of Saudi Arabia.

Mahmoud Al-Kohji, CEO of Arbah Capital, mentioned: “We are now witnessing a notable flow of opportunities with unique quality, and through this cooperation, we are committed to creating a suitable business environment to enhance excellence and growth in the financial sector.”

According to Mohammed Al-Maghlouth, CEO of Revival Lab: “We have worked to provide innovative initiatives for the financial sector in the Kingdom of Saudi Arabia, and we aim to enable the fund to support other regions globally.”

Haitham Al-Sahafi, CEO of Fintactics Ventures, said: “As a venture builder specialised in fintech, we seek to make Fintactics Ventures the initiator and supporter of rapid growth in the sector on solid foundations creating an attractive environment for competition and entrepreneurship by providing resources and capabilities through cooperation to accelerate the development process in startups, and be among the recent organisations to strengthen the national ecosystem in the field.”

source: Wamda

SHARM EL-SHEIKH — 600 million trees are to be planted by 2030, the CEO of the National Center for Vegetation Development and Combating Desertification (NCVC) Dr. Khalid Al-Abdulqader stressed.

Dr. Al-Abdulqader made the remarks during participation in a session accompanying the Saudi Green Initiative forum that is being held in Sharm El-Sheikh.

He stated that planting 600 million trees come among the center's initiative to plant 10 billion trees around the Kingdom, in partnerships with the government, private and third sectors.

He added that the center has launched a project under the name of (Local Trees Genome) which aims to study the genetic characteristics of local plants and trees, and also utilizing from the technology to collect the rainwater and spread seeds by using drones.

Preserving the existing ecosystems is an important step within Saudi Arabia's Afforestation Project, he confirmed.

Dr. Al-Abdulqader pointed out that the project of planting 10 billion trees around the Kingdom is considered as one of the biggest projects around the world, and it will greatly affect in reducing carbon emissions naturally.

Dr. Al-Abdulqader said that the societal response in Saudi Arabia with the initiative of planting 10 billion trees was huge, as 70,000 volunteers participated in the (Let's Make it Green) campaign that was launched by NCVC in partnership with the government, private and third sectors.

We have a great opportunity to improve and preserve the vegetation cover here in Saudi Arabia, which would reflect positively on the quality of life, and supports the economy through eco-tourism or attracting the investors after the expansion of the establishment of parks, Dr. Al-Abdulqader confirmed when asked about his vision for the future of the "Green Saudi Initiative" during the next 20 years.

Source: zawya

Saudi Arabia-based digital freight network TruKKer, has raised $100 million in a pre-IPO round, led by Bahraini investment firm Investcorp who alone invested $51 million.

This investment is part of the recently launched Investcorp Saudi Pre-IPO Growth Fund LP, targeting equity growth capital investments across a range of companies primarily based in Saudi Arabia with the potential to access the capital markets within three years.

Founded in 2016 by Pradeep Mallavarapu and Gaurav Biswas, TruKKer currently serves over 700 enterprises and boasts a fleet of more than 40,000 trucks.

Last February, TruKKer raised $96 million in a mix of equity and debt for its Series B financing, led by ADQ and STV, with participation from Mubadala and other investors.

Press release:

Investcorp, a leading global alternative investment firm, today announced that Investcorp Saudi Pre-IPO Growth Fund LP led the Pre-IPO round in privately-held TruKKer Holding Limited, MENA’s largest digital freight network with a leading position across Saudi Arabia, the United Arab Emirates, Egypt and neighbouring countries. Investcorp led the initial close of this round with a $51 million investment alongside new and existing investors.

Hazem Ben-Gacem, Co-Chief Executive Officer of Investcorp commented: “Saudi Arabia is increasingly rich in highly investable companies, from fast-growth technology businesses like TruKKer to long-established family businesses that have grown consistently and are now looking for capital to implement more ambitious expansion plans. We are seeing a lot of interest in pre-IPO rounds as scale-ups secure greater market share and more Saudi businesses prove themselves successful on a national and regional basis.

TruKKer is just one example of the kind of company that we believe will prove attractive to institutional investors as the Saudi ecosystem matures, and our Pre-IPO fund will focus on exactly these kinds of high-growth businesses.”

“We are excited to add TruKKer to our portfolio and are keen to work with the founders of this regional champion to explore a possible market listing, as a continuation of our strategy and in line with our track record,” said Walid Majdalani, Head of Private Equity MENA and Southeast Asia at Investcorp.

“Thanks to its proprietary technology, TruKKer is ideally positioned to continue its strong growth while reducing carbon emissions across its markets. We look forward to our partnership with TruKKer and contributing our strategic and capital markets resources as well as our local and global insights to accelerate the company’s next phase of growth.”

This investment is part of the recently launched Investcorp Saudi Pre-IPO Growth Fund LP, 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 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.

The United Arab Emirates and Saudi Arabia are key markets for TruKKer and represent a significant portion of the company’s revenues. The United Arab Emirates market has witnessed strong growth over the years in large part due to the development of UAE – KSA cross-border lanes with over 30,000 annual shipments transported by TruKKer, a key value proposition as the company continues to focus on scaling its network and looking to gain market share.

“TruKKer is at a key inflection point towards scaling its network and market share. Today, the company continues to grow exponentially serving over 700 B2B enterprise clients and is on track to cross $200 million in revenues in 2022. The TruKKer team is proud to be delivering on its vision of making a positive contribution to the community by having close to 10,000 drivers generating more than 70% of their monthly income on the TruKKer platform.

Our technology also enables us to optimize truckloads to reduce empty miles and idle time thereby helping us achieve our sustainability objectives.” commented Gaurav Biswas, Founder & CEO of TruKKer.

“We welcome Investcorp and are excited to partner with them through the next growth chapter of the company. Together with our partners, we look forward to continuing to bolster the company and create significant shareholder returns with a focus on healthy unit economics” adds Gaurav.

In 2008, Investcorp established a dedicated presence in Saudi Arabia, and TruKKer marks Investcorp’s eighth investment in the country, with multiple successful public listings on the Saudi Stock Exchange, including BinDawood Holdings, Theeb Rent A Car, Leejam Sports Company and L’Azurde.

source: Wamda

• KSA-based fintech HyperPay has raised $36.7 million in a funding round led by Mastercard, with participation from Amwal Capital Partners and AB Ventures.
• Founded in 2010 by Muhannad Ebwini, HyperPay is a payment gateway that offers merchants payment processing services, such as risk and fraud management, monitoring system, instalments and invoicing systems among others.
• This new funding round will support HyperPay’s regional expansion plans into Egypt, Qatar and Oman. It will also enable HyperPay to grow its tech team and invest in product research and development, to introduce new payment technology solutions with speed.

Press release:

KSA-based and MENA servicing payments services provider HyperPay has successfully raised $36.7 million (SAR 138 million) in a funding round led by Mastercard with investments from Amwal Capital Partners and AB Ventures. Founded by Muhannad Ebwini, HyperPay offers merchants a broad array of products and services in addition to payment processing, including risk and fraud management, monitoring system, instalments and invoicing systems among others.

The transaction with Mastercard will help accelerate HyperPay’s expansion beyond payments to deliver a complete suite of financial products that meet the evolving needs of its customers across all verticals.

The partnership will allow HyperPay to offer new services to help businesses, governments and SMEs move from cash-based payments to a frictionless and seamless ecosystem utilising the innovative capabilities of both HyperPay and Mastercard.

Muhannad Ebwini, Founder and CEO of HyperPay commented, “HyperPay is delighted to welcome Mastercard, Amwal, and AB Ventures as new investors and we are confident of the value-add they bring to our company to achieve its long-term growth strategy. This successful funding round is a testament of the investors' interest in the payments sector in KSA and the GCC as a whole and its attractive long-term perspectives.” 

This new funding round will support HyperPay’s regional expansion efforts, broadening its market to Egypt, Qatar, and Oman. It will also enable HyperPay to grow its tech team and invest in product research and development, to introduce new payment technology solutions with speed.

“The proceeds from the round will be directed towards creating innovative solutions that will redefine the future of cashless payments in the MENA region. They will help us accelerate our growth beyond payments and allow us to deliver a wide array of products. We have earned our reputation by being quick to respond to the dynamic needs of our partners.” Ebwini concluded.

source: Wamda