Dash Venture Labs: Our Weekly Picks (Issue No. 20)

1. Entrepreneurship/Startups

SMEs in Saudi Arabia surged by 25.6%

According to Saudi Arabia’s SME General Authority (Monsha'at), the number of SMEs reached 892,000, with an increase of 25.6% compared to the Q4 of 2021. The Riyadh region has the highest share of the total enterprises, with a percentage of 35.4%, while the Makkah region recorded 21%, and Al-Shraqiyah 12.7%. The percentage of the enterprises that are owned by women is recorded at 45% of the total start-up companies' owners in Saudi Arabia. As for the investment finance that has been obtained by the Saudi start-up companies, it has grown by 244% Y-o-Y, reaching SAR 2.2 billion in Q1 2022.

Saudi Arabia launches the second edition of the NEOM AI Challenge for SMEs and entrepreneurs.

Saudi Data and AI Authority (SDAIA) announced the launch of the second edition of its NEOM AI Challenge for local and international SMEs and entrepreneurs. The Challenge, organized in partnership with Saudi’s futuristic NEOM project, is aimed at propelling SMEs across the world to new horizons in the world of innovation. The winners of each track will receive executive contracts with NEOM worth SAR 500,000 each, totaling SAR 1.5 million (USD 0.4 million).

The Ministry of Economy, Flat6labs launched an initiative to attract SMEs to the UAE

UAE’s Ministry of Economy collaborated with Flat6labs to launch a new initiative to attract SMEs in the UAE. The two organisations have signed a MoU to support the ‘Flat6lab Ignite’ programme and will award a training session, initial funding of AED 550,000 and other benefits offered by The Entrepreneurial Nation to the winners, based on specific criteria. These companies will also get strategic guidance, a training course with startups, experts, and academic partners to develop their entrepreneurial skills, and many other advantages and services provided by Flat6Labs’ partners.

Emirates Islamic launches ‘Businesswomen Account’ for female entrepreneurs in the UAE

Emirates Islamic launched a new ‘Businesswomen Account’ created exclusively to cater to and support the requirements of women entrepreneurs and business owners in the UAE. The new business banking account, catering to women entrepreneurs, aims to make fundamental changes in terms of inclusion while also promoting financial best practices for women-led SMEs. Emirates Islamic will also help Businesswomen Account holders grow their businesses through exclusive seminars and workshops featuring industry leaders.

2. Technology

Saudi's SCAI invests USD 206.54 million with SenseTime to deliver AI-powered solutions

The Saudi Company for Artificial Intelligence (SCAI) invested SAR 776 million (USD 206.54 million) with SenseTime Group through a JV to establish SenseTime MEA, and work to build a sophisticated AI lab, create highly skilled jobs for talented Saudis, and contribute to positioning Saudi Arabia as the region’s leading AI-tech hub. SCAI aims to foster innovation in strategic sectors and accelerate key national technological priorities in Saudi Arabia. The AI lab allows the next generation of data scientists to benefit from the transfer of technology and SenseTime’s extensive expertise in the field.

Additionally, SCAI will work closely with SenseTime to develop solutions across diverse areas, including but not limited to the smart city, business intelligence, healthcare, and education domains, as well as localize the company’s cutting-edge computer vision and deep learning platforms to enable the creation of intellectual properties which will be of immense benefit to the Kingdom and the region.

Leading UAE technology players Tahaluf Al Emarat and CPX Holding sign MoU

Tahaluf Al Emarat and CPX Holding signed an MoU to build successful long-term relationships that will benefit both the UAE-based parties and their customers. The partnership aims to provide secure, reliable IT solutions and advisory services to enterprises and government entities so they can focus their resources on value generation while knowing their data is protected. Both parties will tender and conclude project contracts and provide safe and scalable solutions that leverage leading technologies.

Emirates NBD introduces H2H digital payment solutions for ENOC Group

ENOC Group accelerated its digitisation strategy through collaboration with Emirates NBD to implement innovative payment solutions. ENOC Group implemented Emirates NBD’s Host to Host (H2H) services for payments and account reconciliation. The H2H platform offers advanced internet-based connectivity for the secure and automated exchange of files between the ENOC Group’s ERP (Enterprise Resource Planning) and the bank, using secure communication protocols. The H2H implementation for ENOC Group has facilitated the automation of treasury cycles and reconciliation processes through scheduled transmissions.

MoIAT launches digital platform for ICV Program certification

The National Committee for the In-Country Value (ICV) Program, headed by the Ministry of Industry and Advanced Technology (MoIAT), announced the launch of a new digital platform for companies to obtain the national ICV certificate. The new platform is in line with the ministry’s strategy to empower the industrial sector and develop future industries in the UAE. The national industrial strategy aims to create a business environment that attracts local and international investors while stimulating innovation and the adoption of advanced technology. The new platform provides several advantages, most notably automating the certification process, which can save companies up to 40% in time and costs.

Nala Robotics and Saudi Excellence Co. to establish an AI-based robotic cloud kitchen and R&D center in Saudi Arabia

US-based Nala Robotics and the Saudi Excellence Company signed a strategic agreement to develop, market, and deliver autonomous food services to Saudi Arabia. Both companies will work together to bring advanced and affordable AI robotic solutions to restaurants and food service providers in Saudi Arabia, including establishing the country's first fully autonomous eatery that will serve a wide variety of Saudi and Middle Eastern dishes. Additionally, the partnership will include establishing a R&D center for artificial intelligence and machine learning robotics; setting-up Saudi Arabia's first AI-based robotic cloud kitchen that will prepare and cook Shawarma, Doner, Tamiya, and other Middle Eastern cuisines; creating a training center for AI robotics engineers and technicians; and building a regional center for sales, marketing, and fulfillment across the MENA region.

Saudi Azm inks USD 4.3 million contract with MoF

Saudi Azm for Communication and Information Technology Company signed a contract worth SAR 16.5 million (USD 4.3 million) with the Saudi Ministry of Finance (MoF). Under the contract, Tadawul-listed Saudi AZM will develop digital portals and smart applications for the MoF. The step aims to build and develop smart platforms and business solutions for the MoF's services provided to government agencies and the private sector. The contract duration is 24 months, starting from the signing date.

Tarjama launches business-focused Arabic machine translation

Tarjama, a pioneering language service provider in the MENA region, launched its Arabic Machine Translation (AMT) website, Tarjama Translate, targeting businesses that need instant access to translation of business documents to extend their reach into the Arabic-speaking world or to get instant access to Arabic content. The product will allow enterprises and consumers to make use of AMT’s reliable, instant, automatic translations to unlock English or Arabic business content in, e.g. the legal, financial, consulting, or healthcare domains.

Bahrain launches the region’s first FinTech venture studio

Bahrain will be home to the MENA region’s first FinTech venture studio that plans to co-found startups and streamline fundraising. Resulting from a collaboration between Al Waha Fund of Funds and international investment firm Hambro Perks, HP Spring Studios aims to be an active member of the local FinTech ecosystem, investing, developing talent, participating in events, and promoting the country as an investment destination.

Two more companies granted license to provide payment services in Saudi Arabia

The Saudi Central Bank (SAMA) granted two new licenses to payment financial technology companies. The two payment financial technology companies licensed to provide payment services for e-commerce are Arab Sea Financial Company and Fatoraah. This brings the total number of payment companies licensed by SAMA to 21, in addition to 5 companies that were granted "in-principle approval.

Coinweb is set to establish a presence in the UAE, Saudi in H1 2023

Coinweb plans to establish its presence in UAE and Saudi Arabia in H1 2023. Coinweb and its group company Onramp, already have no less than 7 digital asset consents and licenses around the world including Canada, Singapore, the UK, Ireland, Poland, Lithuania, and Estonia.

Saudi Arabia to build algorithms to manage security operations at Holy Sites

Saudi Arabia is working to build its own algorithms. The Kingdom will employ artificial intelligence in security operations in the vicinity of the Two Holy Mosques and the Holy Sites in order to ensure the security of Hajj and Umrah pilgrims. The work is underway to create a community partnership program through the application ‘We are all safe,’ in addition to working to establish and develop data centers, and rely on cloud computing services at the National Information Center.

3. Funding Activity

The Cloud closes a USD 10 million Series A round

UAE-based cloud kitchen The Cloud raised a USD 10 million Series A round, led by Middle East Venture Partners (MEVP) and Olayan Financing Company, with participation from Rua Growth Fund. The Cloud allows restaurant owners to increase their kitchen utilisation by hosting third-party food delivery brands. The Series A funding will support the startup’s expansion plans in the GCC and Europe and help develop its AI-powered kitchen matching platform.

MVP Match, a tech-talent marketplace, raised USD 5 million from Stage 2 Capital

Tech-talent marketplace MVP Match has raised EUR 5 million (USD 5 million) in seed funding from Stage 2 Capital to double down on its strategy for pairing companies with talent from across the globe. The Germany-based startup plans to use the funding to build new hubs in Africa and Europe, grow its team, and relaunch its proprietary platform. The plan to grow its reach follows the launch of a new hub in Egypt that MVP Match will use to tap talent in Africa, with the aim of creating more networks in the region.

Medical training platform 5 Quarters raises Seed round

Egypt-based edtech 5 Quarters raised an undisclosed Seed round from a Saudi angel investor. Established in 2016, the company offers healthcare professionals online courses to improve their capabilities. The startup plans to use the investment to fuel its expansion plans in Saudi Arabia, as well as add new services for medical sector professionals.

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Disclaimer: This newsletter is prepared by Dash Venture Labs and provides general information only. The information and opinions in the report constitute a judgment as at the date indicated and are subject to change without notice. The information and opinions contained in this report have been compiled or arrived at from sources believed to be reliable in good faith, but no representation or warranty, express, or implied, as to their accuracy, completeness, or correctness does also not warrant that the information is up to date. Any reference to third-party research material or any other report contained in this report represents the respective research organization’s estimates and views and does not represent the views of Dash Venture Labs and its officers and employees do not accept any liability or responsibility whatsoever with respect to its accuracy or correctness.