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RIYADH: After a steep decline in May, Gulf Cooperation Council countries saw an optimistic bounce back in equity market index performances in June with the UAE and Saudi Arabia as top performers.
According to a Kamco Invest report, the UAE’s Dubai Financial Market was the best-performing market in the GCC in terms of index closings with a monthly increase of 6 percent, followed by Saudi Arabia’s Tadawul All Share Index with a rise of 4 percent.
Kuwait’s market came in third with a 3.4 percent month-on-month increase, followed by Oman’s, with a 3.1 percent incline.
Equity markets in Qatar and Bahrain reported declines of 0.8 percent and 0.3 percent, respectively.
DFM closed June with 650.2 billion dirhams ($177 billion) in market cap at 3,792 index points, a result of increases in six out of the eight indices, including the financial, real estate, and industrial sectors.
“The benchmark TASI peaked at a closing high of 11,466.0 points on 21 June 2023 but trended downward by the end of the month to close with a gain of 4.0 percent at 11,459.0 points,” the report stated about Saudi Arabia’s TASI performance.
However, TASI trading activity witnessed a month-on-month decline due to the Eid holidays, according to the report.
The monthly volume of shares traded on TASI dropped 12.9 percent in June to reach 4.1 billion.
The value of shares traded on TASI also dropped in June to reach SR100.1 billion from SR136 billion in May.
Regarding the monthly performance of Qatar’s market, the report said: “The declining streak in Qatar Stock Exchange continued during June 2023 with the QE General Index registering a decline for the fifth consecutive month, albeit marginally by 0.8 percent during the month.”
Moreover, Bahrain’s bourse saw a decline for the first time after three months of positive performance, closing June with 1,957.87 points.
The report indicated that Bahrain’s decline was primarily driven by a drop in two of its seven sectors, namely the materials index, which recorded a 2.2 percent decrease, and the Industrials index, which dropped by 0.9 percent.
CAIRO: Saudi Arabia-based food technology startup NOMU has successfully raised $5 million in a funding seed round from a range of investors, including DIV Capital, Shurfah, Core Vision, and Purity for Information Technology, as well as family offices such as Altoukhi Family Office and Bakr Family Office.
The newly secured funds will be utilized by NOMU to expand its presence in the hotel, restaurant, and catering sector.
Additionally, the company plans to develop a software as a service solution and an artificial intelligence-enabled procurement chatbot.
Moreover, NOMU has plans to extend its operations to Pakistan and sub-Saharan Africa in the near future.
The company was established in late 2022 following a merger between commerce startups Saudi-based Jumlaty and Egypt’s Appetito.
The successful funding round demonstrates the investor confidence in NOMU’s business model and growth potential, according to a statement.
“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.
With the fresh capital infusion, the company is well-positioned to enhance its market presence, expand its product offerings, and capitalize on emerging opportunities in the food tech sector.
“This seed round allows us to strengthen our business-to-business HORECA (hotel, restaurant, and catering) 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 (Middle East and North Africa) region,” Mokhtar added.
The company operates in Saudi Arabia, Egypt, Tunisia and Morocco with plans to expand into 50 new cities by 2025.
UAE’s HR technology firm alfii raises $2.5m in a pre-seed funding round
The UAE-based human resources technology startup alfii has successfully raised $2.5 million in a pre-seed funding round led by Preface Ventures, a US-based venture capital firm, along with the participation of Kayan Ventures, Aditum Ventures, and Wayfinders.
Founded in 2022 by Yousef Al-Barqawi, Becky Jefferies and Dina Mohammad-Laity, alfii aims to assist growing businesses in managing their HR workload and streamlining administrative tasks.
With the newly secured funding, alfii plans to expand its team and further develop its HR automation platform, which is powered by financial technology solutions.
“We’re looking to build the next generation of this product class, and we’re building it entirely in-house — which means we need to bring on world-class talent to grow our business and better serve our customers,” said Al-Barqawi, alfii’s CEO and co-founder.
The investment will support the company’s growth strategy and enable it to better serve its clients by optimizing its HR processes and improving overall efficiency.
Additionally, several local and regional angel investors contributed to the funding round.
Morocco’s Chari raises $1.5m in funding
Morocco-based business-to-business e-commerce and fintech startup Chari has successfully raised $1.5 million in funding from Verof-Kepple Africa Ventures.
The investment will play a crucial role in enabling Chari to expand its operations across Africa and further develop its portfolio of financial services.
Founded in 2020 by Ismael Belkhayat and Sophia Alj, Chari offers a platform that allows retailers to directly purchase large quantities of inventory items from suppliers.
By facilitating efficient business-to-business transactions, Chari aims to streamline the procurement process for businesses.
“We are thrilled to onboard VKAV as our partner as we establish a cutting-edge and fundamental financial services infrastructure for the mass market in our country,” Ismael Belkhayat, CEO and co-founder of Chari, said, adding: “With VKAV’s extensive network across Africa and profound connections with the Japanese corporate society, we believe they will consistently bring value to our endeavors.”
In addition to the funding, Chari has appointed Ryosuke Yamawaki, a partner at VKAV, as a strategic advisor.
“Chari is uniquely positioned to transform the informal retail sector and redefine the category of informal trade in Africa. We firmly believe that their innovative approach will benefit the local market and serve as a showcase to the rest of the world,” Yamawaki said in a statement.
This strategic collaboration will provide valuable insights and guidance to support Chari’s growth and strategic decision-making.
The recent funding round marks Chari’s third successful fundraising effort this year.
In March, the company secured a seed round from Plug and Play and received $1 million in funding from Orange Ventures.
MENA startups raise $35.6m in June
Startups in the MENA region secured $35.6 million last month across 45 deals, closing the first half of the year at $1.6 billion.
In terms of funding value, Saudi Arabia claimed the top position in June, securing $25 million across 12 rounds, followed by the UAE as a distant second, with its startups raising $6 million through 20 rounds.
Egyptian startups ranked third in terms of capital received with $4.8 million, largely due to a $3.5 million funding round for Egypt’s trucking marketplace, Trella.
Fintech emerged as the sector with the highest number of deals, as seven startups raised $3 million.
However, it was the foodtech space that received the largest funding, with over $20 million raised across four startups, representing 56 percent of the total funds secured. Investor interest was also seen in other sectors such as logistics, esports and mobility.
RIYADH: US energy firms last week added oil and natural gas rigs for the first time in 10 weeks due to the biggest weekly increase in gas rigs since October 2016, energy services firm Baker Hughes Co. said in its closely followed report.
The oil and gas rig count, an early indicator of future output, rose six to 680 in the week to July 7.
Despite the previous week’s rig increase, Baker Hughes said the total count was still down 72 rigs, or 10 percent, below this time last year.
US oil rigs fell five to 540 last week, their lowest since April 2022, while gas rigs rose 11 to 135 their highest since early June.
In the Permian in West Texas and eastern New Mexico, drillers added seven gas rigs, bringing the gas total up to a near 10-year high of 12, and cut six oil rigs, bringing the oil total down to a 15-month low of 330, according to Baker Hughes.
The seven Permian gas rigs added were the most in a week since January 2013.
India’s June fuel demand rises 4.2% year on year
India’s fuel consumption, a proxy for oil demand, rose by 4.2 percent year on year in June to about 19.31 million tons, data from the Petroleum Planning and Analysis Cell of the Indian Oil Ministry showed.
Sales of gasoline, or petrol, climbed 6.2 percent to 3.15 million tons and sales of diesel increased around 5 percent to 7.91 million tons in June from a year ago, the data dated on Friday showed.
Russian energy ministry says cutting oil exports by 500k bpd
Russia’s energy ministry on Friday confirmed that it was cutting oil supplies by 500,000 barrels per day in August by cutting exports, state news agency TASS reported.
EastMed pipeline project still viable, Edison CEO says
A project to build a 2,000 km pipeline to bring natural gas from East Mediterranean fields to Europe is still alive, the CEO of Italian energy group Edison said on Friday.
Edison CEO Nicola Monti said that the group, which is one of the promoters of the pipeline, was actively talking with Cyprus and Israel about the project.
Last month, the energy minister of Cyprus told Reuters the country was proposing a shorter pipeline to bring gas from Israel’s East Mediterranean fields to the island where the gas could be partially liquefied to be transported to the European markets.
The shorter connection could be seen as an alternative to the more ambitious EastMed pipeline.
“A link between Israel and Cyprus can be a first portion of the (EastMed) pipeline we are promoting. Because from Cyprus we could then connect with Crete and Greece,” Monti said, speaking with journalists on the sidelines of a meeting of energy industrial lobby Confindustria Energia.
He said he believed that the total costs of building the EastMed pipeline would be lower than the investment needed to build a shorter Israel-Cyprus connection, a liquefaction plant and the expenses of shipping the gas to European markets.
(With input from Reuters)
RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman and his French counterpart, Agnes Pannier-Runacher, signed a Memorandum of Understanding to cooperate in the field of energy, with a focus on clean energy from renewable resources.
In a joint statement carried by the Saudi Press Agency, France and Saudi Arabia agreed on a hydrogen cooperation and electricity produced from renewable resources roadmap focusing on three pillars:
• Technology development: Cooperation will advance hydrogen and electricity produced from renewable technology deployment from production, transportation and conversion at demand centers;
• Business co-operation: the private sector has a critical role to play, Saudi–France cooperation welcomes joint efforts between Saudi and French companies to partner in the entire energy supply chain to unlock business and hydrogen trade;
• Policies and regulation: the roadmap will further promote the development of the hydrogen industry through a mutual recognition of certification framework including emission life cycle assessment from all possible sources necessary for consistency in international trade.
“Both countries will work to enhance their cooperation in developing and sustaining supply chains for the energy sectors and to enable cooperation between companies to maximize the utilization of local resources in both countries, which contributes to achieving flexibility and effectiveness of energy supplies,” the statement said.
The MoU also calls for the creation of a “French-Saudi Task-Force” to carry out the cooperation arrangement.
According to the statement, both countries acknowledge the importance of advancing the implementation of the United Nations Framework on Climate Change (UNFCCC) and the Paris Agreement in accordance with the principles, objectives and goals defined therein, including pursuing efforts to limit the temperature increase to 1.5°C.
“Addressing climate change and promoting secure, reliable, affordable and sustainable supplies of energy are shared strategic priorities of Saudi Arabia and France,” the statement said.
“Moreover, the two countries recognize that clean hydrogen is an essential fuel to reach the shared objective of promoting a sustainable economic development while mitigating the impact of climate change,” it said.
Both countries agreed to enhance cooperation on all aspects of energy production, including generation from renewable energy resources, grid interconnection projects, as well as encouraging the participation of private sectors in power sector projects.
“Both countries have agreed to engage in joint efforts to enhance energy efficiency, enhance cooperation in the field of nuclear energy in a peaceful and safe framework, the management of radioactive waste and the nuclear applications, and the development of human capabilities,” the statement also said.
“Both countries agreed to cooperate on advancing climate technologies and solutions including carbon capture utilization and storage for hard-to-abate sectors such as cement, aviation, marine, and petrochemicals, among others,” the statement added.
Saudi Arabia aims to become the leading exporter of hydrogen and electricity produced from low emission resources globally, capitalizing on its ability to produce hydrogen and electricity produced from low emission resources at competitive cost.
The Kingdom has the necessary resources of renewable energy, natural gas and carbon sinks, to export hydrogen in addition to its strategic location with proximity to major global demand centers.
The French strategy for the development of decarbonized hydrogen aims at having a significant contribution to the decarbonization of industry and transport. The strategy includes a public investment program, France 2030, aimed at accelerating investment and innovative solutions in sectors of French excellence to decarbonize industry and to develop renewable energy with the goal to increase the renewable power installed capacity up to 100GW by 2050, with more than 40 GW coming from offshore wind farms.
CAIRO: Dubai-based wellness startup Valeo has made deep inroads into Saudi Arabia with the growing acceptance of telemedicine, remote monitoring and convenient health management in the Kingdom.
The company has expanded to Riyadh, Dammam, Jeddah and Makkah since its launch in January, offering at-home blood testing facilities and health supplements.
“We have launched at-home blood testing services in the major cities of Saudi Arabia and supplements across all cities,” Sundeep Sahni, CEO and co-founder, told Arab News.
The company has been expanding in the Kingdom because of a growing need for on-demand preventive healthcare services.
According to the US-based International Trade Administration, Saudi Arabia accounts for 60 percent of the Gulf Cooperation Council countries’ healthcare expenditure, and the sector remains a top priority for the government.
According to the US-based International Trade Administration, Saudi Arabia accounts for 60 percent of the Gulf Cooperation Council countries’ healthcare expenditure, and the sector remains a top priority for the government.
In 2022, the Saudi Ministry of Health launched the Health Sector Transformation Program, part of Vision 2030, ensuring continued healthcare services and infrastructure improvement.
“Valeo can benefit from national programs like Vision 2030’s Quality of Life & Health Transformation Program and the emphasis on telemedicine and remote healthcare,” said Sahni.
The other important factor for the demand is the increase in life expectancy from 76.4 years in 2019 to 81.8 years. Concurrently, the population is also expected to grow from 34.3 million in 2019 to 39.4 million by 2030 are key drivers of infrastructure demand.
At the same time, the increase in life expectancy is creating a need for long-term care facilities, rehabilitation and home healthcare services.
“Our goal is to make health convenient and empower individuals to care for themselves,” said Sahni, adding that he is planning to expand to more cities in the Kingdom and provide a broader range of services other than those they are already providing.
“For our at-home blood tests, the plan is to expand to a new city every month and eventually cover the whole country,” he added.
Our goal is to make health convenient and empower individuals to care for themselves.
Sundeep Sahni, Valeo CEO and co-founder
The company believes personalized and targeted health solutions are essential in promoting better health outcomes.
“We will identify the specific services and features that are most valuable to the local population, and we will incorporate them into our offerings,” Sahni added.
The Kingdom has been actively investing in developing its healthcare infrastructure and services to improve accessibility, quality and patient outcomes.
“One key aspect that stands out is the Saudi government’s commitment to investing in healthcare, reflected in initiatives such as the Saudi Vision 2030,” Sahni said.
Under Vision 2030, the country aims for a 3 percent reduction in obesity and a 10 percent decrease in diabetes prevalence by 2030.
“Such initiatives create a favorable environment for innovative healthcare companies like ours to contribute to developing and delivering cutting-edge solutions,” he added.
Sahni further emphasized that the increase in chronic diseases in the Kingdom presents both a challenge and an opportunity.
For instance, diabetes prevalence alone has increased by 99 percent in Saudi Arabia to 2.7 million in 2019 from 1.4 million cases in 2009, according to the World Bank.
“The rise in healthcare demand calls for advanced technologies, digital health solutions and patient-centric approaches to improve efficiency, cost-effectiveness and overall healthcare outcomes,” he explained.
Valeo’s presence in Saudi Arabia aligns with its growth strategy and allows it to leverage favorable market conditions.
“Our main offerings consist of at-home blood test packages curated to suit different profiles and health goals such as women’s health, men’s health, fitness, weight loss, food intolerances and more,” said Sahni.
He added: “We also provide a selection of grade-A supplements based on international manufacturing standards delivered straight to your doorstep.”
The healthcare firm also offers intravenous drips and physiotherapy sessions. Its recently launched treatment focuses on tackling specific needs such as hair loss or skin care.
“The journeys are designed to provide a comprehensive approach to solving specific issues from customized testing to connecting you with the right expert and recommending the right products all in one place,” Sahni further explained.
Through its services, Valeo aims to fill the gap of complicated or inconvenient healthcare experiences and empower its users to check on their health continuously.
Furthermore, the company aims to strengthen its presence in the Kingdom through strategic partnerships and collaborations to empower the digital health sector.
“Collaboration and partnerships are vital in the healthcare market and we are actively seeking opportunities to collaborate with local providers, government entities, and other stakeholders,” Sahni said.
“By working together, we believe we can leverage each other’s strengths to drive innovation, improve healthcare access, and ultimately positively impact the health and well-being of the Saudi population,” he added.
The company currently has a team of 40 people spanning the UAE, India, Lebanon and Saudi Arabia, in addition to co-founder Nadine Karadag.
Valeo also has a presence in Riyadh and plans to have an office in the city by the end of the year.
The wellness startup received $3 million in its latest funding round with investors such as DFDF, Global Ventures, Nuwa Capital, Global Founders Capital, Sanabil 500 and FJ Labs.
RIYADH: Saudi Arabia’s business sector saw a boom across most segments in May, with banks extending loans, overdrafts and lines of credit to companies seeking to invest in their projects, purchase capital goods and expand operations.
Out of the 16 business segments of the National Classification of Economic Activities, 15 registered an annual increase in bank credit for May. The only segment that witnessed a dip was agriculture, forestry and fishing, which fell by 8.06 percent.
Bank credit to professional, scientific and technical activities in Saudi Arabia increased 49.49 percent to SR5.01 billion ($1.34 billion) in May, from SR3.35 billion in the same month last year, showed the latest data from the Saudi Central Bank, also known as SAMA.
SAMA’s recent monthly report revealed that the segment also recorded a 21 percent increase in bank credit compared to SR4.11 billion in April.
It encompasses a wide range of professional services, including legal and accounting, architectural and engineering, technical tests and analysis, and research and development in scientific fields.
The Kingdom has seen significant growth in the segment, with state-run institutions such as Research Development and Innovation Authority collaborating with the private sector to promote innovation and entrepreneurship.
The sector is also set to play a crucial role in the Kingdom’s Vision 2030 diversification strategy that aims to reduce dependence on oil revenues and develop a knowledge-based economy, with German research platform Statista projecting it to reach $8.5 billion in 2024.
Boosting the energy mix
The other segment that attracted significant bank credit was that covering electricity, gas and water suppliers, which booked a 34.79 percent rise to SR124.49 billion in May from SR92.35 billion in the year-ago period.
The segment also includes activities such as generating, transmitting and distributing electricity, gas and steam.
Water collection, treatment and supply are also included, as is the production and distribution of ice.
One of the biggest drivers in this sector is the Saudi Vision 2030 blueprint that aspires to replace the petroleum used to generate 42 percent of the country’s 110 gigawatts daily electricity needs with a mix of 50 percent natural gas and 50 percent renewable energy by 2030.
Moreover, the Ministry of Energy’s spending on power and renewable energy projects is expected to reach $293 billion by 2030.
Bank credit to professional, scientific and technical activities in Saudi Arabia increased 49.49 percent to SR5.01 billion ($1.34 billion) in May, from SR3.35 billion in the same month last year.
“Serious actions have been taken by the Kingdom aiming to diversify the energy supply mix and introduce energy efficiency programs. This strategy would benefit Saudi Arabia in the long-term by lowering the reliance on fossil fuels,” said Hani Aldhubaib, assistant professor of electrical engineering at Umm Al-Qura University, in his paper on the future of electrical energy in Saudi Arabia published in December 2022.
Financial force
Bank credit to financial and insurance activities in May also rose 29.41 percent on an annual basis to SR95.77 billion. The segment also received loans worth SR101.43 billion in March, its highest since May 2022..
The segment includes national commercial banks, branches of foreign commercial banks and firms involved in financial technology and management of cash centers.
Much of the growth in this segment can be attributed to the Kingdom’s expanding economy, which has increased demand for financial services, such as loans, investments, and insurance coverage.
Quick estimates for the first quarter of 2023 indicate that real gross domestic product increased by 3.9 percent compared to the same period a year earlier, fueled by 5.8 per growth in non-oil activities and 4.9 percent in government services.
“By leveraging favorable macro conditions and strong sector growth, Saudi banks can pursue strategic investments to grow revenues and optimize costs,” said Markus Massi, managing director of the Middle East office of Boston Consulting Group, in its recent report on the Kingdom.
SAMA has also been instrumental in driving the financial and insurance sector by creating a regulatory environment that provides stability and confidence, encouraging banks to lend to the industry.
In the first quarter, the bank launched the Open Banking Lab, enabling banks and fintech companies to develop, test and license open banking services.
Realty check
The property market has also been up, with bank credit to real estate activities increasing 29.39 percent to SR227.36 billion in May, compared to SR175.71 billion in the same month last year.
According to the NCEA classification, this segment comprises buying, selling, leasing and managing warehouses and residential and non-residential properties.
The stimulus to this growth has been spurred by a growing population, urbanization, and increased demand for housing.
This demand and government initiatives to address housing shortages and improve affordability have created opportunities for real estate companies to undertake residential projects.
“The provision of world-class housing sits at the heart of Vision 2030. With demand pivoting toward community living, there remains an opportunity to develop more town housing, which offers the privacy and outside space buyers are looking for,” said Yazeed Hijazi, associate partner, real estate strategy and consulting, Knight Frank, in its recent report on Saudi Arabia.
The overall increase in bank credit among various economic segments is a reason to cheer as it leads to increased business activity, job creation and higher production levels, contributing to economic growth and the lofty ambitions of Vision 2030.