Dash Venture Labs: Our Weekly Picks (Issue No. 35)

1. Entrepreneurship/Startups

Saudi SMEs sector records 83% rise in investors

According to Saudi’s General Authority for SMEs, the number of investors in the Kingdom’s SMEs sector grew by 83% up until the end of Q3 2022 as compared to the same period last year. The number of micro and SMEs in the Kingdom exceeded to over 970,000.?These establishments received as much as SAR 221.0 billion (USD 58.7 billion) worth of credit facilities from banks and other financial institutions until the end of Q2 2022. Meanwhile, the total amounts disbursed in the indirect lending initiative for the third quarter amounted to SAR 2.9 billion, benefiting 2,500 establishments. Guarantees for financial institutions provided by the Kafalah program reached SAR 71.3 billion by the end of Q2 2022. The Kafalah program helps entrepreneurs launch or even expand their businesses. The program covers several business sectors, including wholesale and retail trade, catering and hotels, manufacturing industries, and administrative and support services.

Saudi’s SMEs operating revenues increase by 25% in 2021

The General Authority for Statistics (GASTAT) announced that the operating revenues of SMEs recorded an increase to SAR 126 billion by 25% during 2021 compared to 2020. The operating revenues of the medium-sized enterprises rose by 16%, amounting to SAR 562.6 billion in 2021, compared to the previous year, largely driven by increase in revenues from manufacturing activities, wholesale and retail trade activities, construction activities. Additionally, the arts and entertainment activities, accommodation and food service activities, have recorded a significant growth, recovering from the effects of the COVID-19 pandemic, as it has increased by 132% and 45%, respectively. The operating revenues of the small-sized enterprises increased by 35%, accounting to SAR 337.4 billion, driven by the revenues of wholesale and retail trade activities, construction activities.

Sheraa partners with Canada’s DMZ to empower Sharjah startups in North American

The Sharjah Entrepreneurship Centre (Sheraa) partnered with the DMZ to foster a new wave of entrepreneurial success for the entrepreneurs of Sharjah and empower 15 startups from the emirate to the DMZ-led soft-landing programme. The DMZ incubator helps to equip the next generation of tech entrepreneurs with the tools needed to build, launch, and scale highly impactful startups. Through this partnership, Sheraa’s startup community will now have access to the DMZ’s on-demand learning platform called ‘Launchpad’. The platform is designed to support aspiring and early-stage entrepreneurs in developing foundational business skills.

2. Technology

Dubai Chamber of Commerce launches Cloud Computing Business Group

Dubai Chamber of Commerce announced the launch of the Cloud Computing Business Group, connecting companies within the sector to encourage productive dialogue on ways to propel and embed cloud computing services across the various business industries in Dubai. The new Cloud Computing Business Group will focus on promoting the development of cloud computing companies, raising the profile of Dubai’s cloud services sector in the international business community.

Bahrain’s Al Salam Bank launches digital self-service kiosk

Al Salam Bank launched its state-of-the-art self-service kiosk, serving clients 24/7, alongside exclusive digital services across the bank's extensive network of branches. The launch marks a milestone for the bank as the first to introduce a self-service banking kiosk fully equipped with the Benefit Company's biometric and e-KYC (Know Your Customer) authentication technology within the Kingdom. Powered by advanced digital technology, the newly-launched kiosks will enable clients to execute a variety of financial services independently and ensuring the delivery of a refined, transformative client experience.

Cisco launches Wi-Fi 6 access point for small and medium businesses

Cisco launched Wi-Fi 6 for small and medium businesses (SMBs), the latest addition to its portfolio of products purpose-built for smaller enterprises. The offering showcases the best of Cisco’s innovations, reliability, and security, without the complexity required in larger networks SMBs account for more than 90% of the MENA region's businesses. To offer SMBs new opportunities through technology, Cisco Business Wireless portfolio enables customers the benefits of upgrading to Wi-Fi 6, which include Faster Speeds, High-Density Performance and Energy Efficiency.

Schneider Electric signs MoU with Saudi Industrial Development Fund for its Tanafusiya program

Schneider Electric signed a MoU with the Saudi Industrial Development Fund (SIDF) to accelerate technology adoption in the Kingdom’s industrial sector. Under the partnership, Schneider Electric will bring its expertise to SIDF’s Tanafusiya program, which aims to enable industrial manufacturers to increase their energy efficiency, reduce their energy costs as the Kingdom aims for net-zero status by 2060. Through this new collaboration, Schneider Electric and SIDF aim to create added value across Saudi Arabia’s dynamic industrial ecosystem. This will be achieved by providing factories with better access to financing and technical solutions to reduce costs, increase energy efficiency and expand human skills and capabilities sector-wide.

Dubai hosts a regional convening on AI and healthcare in partnership with UAE AI Office

Jameel Clinic hosts region’s AI and healthcare conference in partnership with the UAE’s Artificial Intelligence Office, Community Jameel, and Wellcome. The conference marks the first international venture of ‘AI Cures’, the Jameel Clinic’s platform for collaboration that launched in the early months of the COVID-19 pandemic.

Sharjah innovation park boosts investment in 3D printing sector

The Sharjah Research, Technology and Innovation Park (SRTIP) is increasing the investment in 3D printing with the goal of promoting innovation in a number of sectors and industries, including the crucial manufacturing sector. As part of SRTIP’s vision to be one of the largest and most advanced 3D printing technology platforms in the region, it has collaborated with global companies to establish a unit specialised in additive manufacturing. Integrating 3D printing into production processes reduces costs and eases logistical challenges related to shipping and product scarcity as the required parts can be printed immediately.

Egypt’s ICT sector grows 16.7% in FY21/22

Egypt’s information and communications technology (ICT) sector grew by 16.7% during FY 2021/2022. More than 165 government services were offered on Egypt’s Digital Platform and a large number of digital transformation projects are currently underway with up to EGP 50 billion investments in collaboration with various state sectors, including the agricultural, healthcare, higher education, justice, and housing. Besides, the ministry undertakes the project of the transition to Egypt's New Administrative Capital (NAC) as a participatory, paperless government.

Fintech Galaxy acquires Egypt’s open banking platform Underlie

UAE-based open finance platform Fintech Galaxy (FTG) acquired Underlie, an Egypt-based open banking platform offering application programming interface (APIs) to banks and businesses, for an undisclosed amount. The deal will help to set FTG’s Open Finance and Open Banking wheels in full motion across the region, develop and launch new digital solutions and push financial inclusion forward. Further, the Underlie platform provides access to customer data from partner banks through its open banking (APIs), while allowing developers to build new apps and services. Underlie also offers API-based solutions to improve the integration of online apps from banks and fintech companies. Additionally, Egypt now is FTG’s sixth market after the UAE, Saudi Arabia, Bahrain, Lebanon and Moldova.

Facilio looks to double its footprint in GCC region in 2023

India-based Facilio, a SaaS company that provides AI-driven property operations and maintenance software, looks to double its footprint in the GCC by 2023-end from the current 50 million sqft spread across commercial offices, residential, healthcare, hospitality & retail. Facilio, which manages over 10,000+ properties globally, doubled its workforce in the last one year and made strategic hires and expanded its channel partner network. Within the GCC, UAE, KSA and Qatar are where the majority of its customers are based.

3. Funding Activity?

Venture capital investments for Saudi start-ups surge 244% to USD 584 million

According to report by MAGNiTT, Saudi Arabia’s VC deals for start-ups surged to record levels in H1 2022, making the kingdom one of the most active VC markets in the MENA region. A total of SAR 2.19 billion (USD 584 million) in funds were deployed into Saudi start-ups between January and June this year, up by 244% compared to a year earlier. Saudi Arabia is now the second-most active VC market in the region, and the number of deals rose by 36% to 79% during the same period. During H1 2022, 88 investors participated in deals closed by Saudi start-ups, up by 126% compared to the previous year.

Crowdfunding platform Manafa secures USD 28 million Series A round

Saudi Arabia-based fintech Manafa closed its Series A funding of USD 28 million (SAR 106 million), led by STV and Wa’ed Ventures, the venture capital arm of Saudi Aramco. Manafa provides financial products tailored to fulfil the needs of SMEs in various sectors by offering debt and equity financing based on a crowdfunding model. Manafa plans to use the investment to accelerate its growth in Saudi Arabia, and expand its offering with the launch of several products and financing solutions in addition to doubling the number of investors on its platform.

Bayzat raises USD 25 million Series C round

UAE-based HR technology startup Bayzat raised a USD 25 million Series C round led by DisruptAD alongside Ischyros New York, bringing the total amount raised by the startup to date to over USD 60 million. Bayzat enables its corporate clients to digitise administrative HR processes including payroll, employee onboarding as well as health insurance, among other functions. Bayzat will use the funds to grow its customer base across its markets in the Middle East, with a focus on Saudi Arabia. Bayzat serves over 127,000 employees in more than 1,500 companies in the GCC.

AtarCloud raises USD 1.3 million Seed round

Saudi Arabia-based proptech AtarCloud closed a USD 1.3 million Seed investment round with the participation of BIM Ventures along with angel and institutional investors from the Investors’ Mine Group. AtarCloud’s platform provides property owners and real estate developers tools needed to streamline their property management activities including operations such as digital onboarding, service ticket management and payments, as well as a range of engaging features including the sending of announcements, organizing events, or providing exclusive offers to residents.

Egyptian B2B fresh produce platform Mahaseel Masr raises funding to scale

Egypt’s Mahaseel Masr secured funding from the Emirates International Investment Company (EIIC) to accelerate the deployment of its agri-focused e-commerce platform. Mahaseel Masr is a smart digital platform that provides a wide range of digital tools to facilitate transactions online reliably and securely, while ensuring farms’ traceability through geospatial farm profiling. The funding will enable Mahaseel Masr to expand its leadership across the entire ecosystem governed by international standards, of farm profiling and coding, traceability, secure payments, logistical operations, and transparent communication between farmers and customers.

Any feedback to share? Contact us

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.

Dash Venture Labs does not accept any liability for any loss arising from the use of material presented in this report. Dash Venture Labs may seek to do business, or may already have had some business dealings, with companies covered in this report. This document has not been reviewed by, approved by or filed with the ESCA or CBUAE. This report or any portion hereof may not be reprinted, sold or redistributed without our prior written consent of the Company.