Expat remittances from 海角直播 hits $3.4bn: SAMA /node/2547086/business-economy
Expat remittances from 海角直播 hits $3.4bn: SAMA
Expatriate salaries in 海角直播 are among the highest in the Middle East, with an average executive earning over $100,000 per year. Shutterstock
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Updated 10 July 2024
Dayan Abou Tine聽
Expat remittances from 海角直播 hits $3.4bn: SAMA
Updated 10 July 2024
Dayan Abou Tine聽
RIYADH: Remittances by expatriates living in 海角直播 saw an annual rise of 12 percent in May to SR12.6 billion ($3.4 billion), marking the highest level in nearly two years.
The latest bulletin from the Saudi Central Bank, also known as SAMA, further revealed that remittances sent abroad by the Kingdom鈥檚 nationals also increased by 6 percent during this period, totaling SR6.18 billion, the highest since November 2022.聽
This amount also marks a 25 percent increase compared to April.聽
The recovery of the post-pandemic job market, along with the Kingdom鈥檚 high salaries, successful government strategies to attract and retain expatriates, and low transfer costs, are pivotal factors driving this upward trend.聽
Improvements in financial technology and mobile banking solutions, which make sending money abroad easier and more convenient, are also seen as contributing to the increased remittance activities.聽
For Saudis, other factors include increased financial obligations such as debt repayments, educational fees, or healthcare costs for family members abroad.聽
Additionally, the Kingdom鈥檚 nationals involved in international commerce may boost remittance outflows for business-related expenses, investments, or partnerships.聽
Expatriate salaries in 海角直播 are among the highest in the Middle East, with an average executive earning over $100,000 per year, setting a global benchmark, according to expat.com, a portal providing information and advice to expats.聽
The Kingdom鈥檚 strategy to attract and retain foreign workers has shown success, evidenced by recent data from the Saudi General Organization for Social Insurance.聽
The number of non-Saudis covered by the Kingdom鈥檚 social insurance scheme has notably increased, reflecting the government鈥檚 successful efforts in this area.
Additionally, several multinational corporations have relocated their regional headquarters to 海角直播, further boosting the country鈥檚 economic landscape.聽
Crown Prince Mohammed bin Salman aims to elevate Riyadh into one of the world鈥檚 top 10 economic hubs by 2030, as part of the broader Vision 2030 initiative to diversify the economy and enhance its global standing.聽
Global perspectives
According to the World Bank鈥檚 Migration and Development Brief released in June, remittance flows were influenced by both structural and cyclical factors in source and recipient countries in 2023.聽
Key factors included job markets for migrant workers in source countries, immigration policies, exchange rate movements of major currencies against the US dollar, the prevalence of multiple money conversion values in recipient countries, and war and conflict.聽
The recovery of job markets in high-income countries of the Organization for Economic Co-operation and Development, especially following the COVID-19 pandemic, significantly drove remittances, with employment growth being more rapid for immigrants than for native-born workers.聽
According to the World Bank, 海角直播 led in outward remittances as a percentage of gross domestic product last year.聽聽
In total volume, the US was the largest source of transfer globally, and is followed by the Kingdom and Switzerland. Additionally, the top transfer source countries include members of the Gulf Cooperation Council.聽
Furthermore, the report highlighted that 海角直播, alongside South Korea, has the lowest transfer costs among G20 countries for remittances.聽
In the fourth quarter of 2023, while charges from these major global sources of remittances stayed relatively steady at 6.5 percent compared to the previous year, they remained above the global average.聽
Significant variance in rates exists among G20 nations, with South Africa being the most expensive at 12.8 percent, followed by Japan at 7 percent.聽
In the Middle East and North Africa region for 2023, Egypt received $19.5 billion in remittances, followed by Morocco with $11.8 billion and Lebanon with $6.7 billion.聽
Egypt has implemented initiatives to stimulate remittance market growth, including promoting digital channels for formal sector transfers, introducing savings products exempt from commissions for the Egyptian diaspora through banks, and announcing exchange rate liberalization by the Central Bank of Egypt in March.聽
In South Asia, India topped remittance receipts with $119.5 billion, followed by Pakistan with $26.6 billion and Bangladesh with $22.2 billion.聽
In addition to the UAE, 海角直播, Kuwait, Oman, and Qatar collectively account for 11 percent of India鈥檚 total remittances.
Why the world can鈥檛 afford a blockade in the Strait of Hormuz
Even the mere suggestion that Iran could close the strait if the US joins Israeli strikes has sent oil prices soaring
Disruption to this strategic waterway could destabilize economies and trigger a new energy crisis, analysts warn
Updated 21 June 2025
Miguel Hadchity
RIYADH: As the conflict between Israel and Iran intensifies, attention has turned to the Strait of Hormuz 鈥 a narrow, 33-kilometer-wide stretch of water separating Oman and Iran carrying a fifth of the world鈥檚 daily oil supply.
While this strategic waterway remains open for now, analysts have told Arab News any further escalation could put the vital shipping route at risk if Iran chooses to impose a blockade or attacks vessels.
A little over a week into the confrontation, which began on June 13 when Israel began striking Iran鈥檚 nuclear sites, scientists, military commanders and cities, daily exchanges of fire have killed hundreds.
Now, with threats of a maritime blockade looming should the US decide to join the conflict on Israel鈥檚 side, global energy markets are on edge. Any disruption could send prices skyrocketing, destabilize economies and trigger a new energy crisis.
鈥淭he Strait of Hormuz is not just a waterway; it is the artery of global energy. Any blockade would trigger a chain reaction the global economy is not prepared for,鈥 Saudi geopolitical analyst Salman Al-Ansari told Arab News.
According to the US Energy Information Administration, 20 million barrels of oil 鈥 20 percent of global consumption 鈥 pass through the Strait of Hormuz every day, along with one-fifth of the world鈥檚 liquefied natural gas trade, primarily from Qatar.
The oil lane is so vital because no real alternatives exist. Most Gulf oil cannot be rerouted without massive delays. It is the only deep-water route capable of handling the world鈥檚 largest crude tankers.
This handout natural-colour image acquired with MODIS on NASA聮s Terra satellite taken on February 5, 2025 shows the Gulf of Oman and the Makran region (C) in southern Iran and southwestern Pakistan, and the Strait of Hormuz (L) and the northern coast of Oman (bottom). (Photo by NASA Earth Observatory / AFP)
The EIA has estimated that 84 percent of its crude flows to Asia, with China, India, Japan and South Korea as top buyers.
In February last year, the Washington-based Center for Security Policy analyzed Iran鈥檚 escalating activity in the Strait of Hormuz and said 76 percent of the crude oil transiting the waterway was destined for Asian markets.
When geopolitical tensions spiked over the past week after Iranian retaliatory strikes on Israel, Brent crude surged from $69 to $74 per barrel in a single day 鈥 even though no ships were blocked.
Jassem Ajaka, an economist and professor at the Lebanese University, said this shows just how sensitive markets are to the mere suggestion of instability.
鈥淭he closure of the Strait of Hormuz will inevitably lead to a rise in the price of a barrel of oil to over $100, meaning the price will increase by about $25 in a single jump 鈥 something the global economy is not accustomed to,鈥 Ajaka told Arab News.
An Iranian Nasr missile is fired from a navy warship during a military exercise in the Gulf of Oman, near the strategic strait of Hormuz in southern Iran. (Iranian Army handout via AFP/File)
He added: 鈥淥il is a strategic and vital commodity, and when its price rises, inflation will rise with it because it is involved in 95 percent of other goods. The extraction of raw materials, the manufacturing of food products and other items will see their prices increase.鈥
Al-Ansari noted that 鈥渨ith Iran and Israel already in direct confrontation, the risk of escalation in this critical corridor is dangerously real. Iran sees the strait as its ultimate pressure point. Shutting it down would ignite a global oil shock, push inflation higher, and send vulnerable economies into panic.鈥
Ajaka explained high oil prices would confront central banks worldwide with a dilemma over whether to lower or raise interest rates. He added insurance prices would rise, contributing to inflation, and that it would also cause disruptions in supply chains across several countries.
鈥淚n the case of Lebanon, for example, it would result in a complete electricity blackout, as the country relies entirely on fuel oil coming from Iraq,鈥 he added.
海角直播, the world鈥檚 largest oil exporter, moved 5.5 million barrels per day through Hormuz last year. That is 38 percent of total crude flows in the strait, according to tanker tracking data produced by the London-based real-time insights delivery firm, Vortexa.
While the Kingdom has contingency pipelines, they are not a perfect solution. The East-West Pipeline, with a capacity of 7 million barrels per day, can divert crude to the Red Sea, but it is already running near full capacity due to recent Houthi attacks on shipping.
The UAE鈥檚 Fujairah Pipeline, with 1.8 million barrels per day capacity, is also heavily used, leaving little to spare.
Iran鈥檚 Goreh-Jask Pipeline, designed for 300,000 barrels per day, is barely operational, having handled just 70,000 barrels per day before shutting down in late 2024.
If the Strait of Hormuz were blocked, the EIA said 海角直播 and the UAE could only reroute about 2.6 million barrels per day 鈥 far less than the 20 million that normally passes through.
Given that the economies of most Gulf countries, particularly 海角直播, rely heavily on oil exports, a closure of the Strait of Hormuz would deal a severe blow to their economic stability, according to Ajaka. 鈥淭he extent of the financial damage would hinge on how long the strait remains blocked, with prolonged disruptions likely triggering budget deficits across the region,鈥 he said.
For energy-hungry Asian economies, a blockade would be catastrophic.
This image grab taken from a video provided by Iran's Revolutionary Guard official website via SEPAH News on July 20, 2019, shows Iranian Revolutionary Guard Corps boarding the British-flagged tanker Stena Impero in the Strait of Hormuz. (AFP/File)
鈥淭his narrow stretch carries nearly a third of the world鈥檚 seaborne oil. Its closure would cripple global trade routes, choke energy supplies and slam the brakes on economic growth from Asia to Europe,鈥 said Al-Ansari.
China relies on the Strait of Hormuz for nearly half its crude imports. India, Japan, and South Korea would face severe shortages, forcing emergency releases from strategic reserves. Global shipping costs would explode as tankers would need to take longer routes around Africa.
鈥淭he first Asian economy to be affected by any closure of the Strait of Hormuz would be China,鈥 said Ajaka. 鈥淚f the repercussions of the strait鈥檚 closure spill over into multiple economies, it could lead to a global recession 鈥 posing another challenge in terms of how to revive the global economy.鈥
The US is less vulnerable, importing only half a million barrels per day from the Gulf, equivalent to 7 percent of total US imports. But it would still suffer from skyrocketing global prices.
Al-Ansari emphasized that the crisis is not merely about oil: 鈥淚t is about the fragile balance that keeps markets stable and societies moving.鈥
Iran has historically threatened to close the Strait of Hormuz but has never done so. In a recent op-ed for Arab News, Abdulaziz Sager, founder and chair of the Gulf Research Center, said a full closure 鈥渨ould harm Iran鈥檚 own economy given that it relies on the waterway for its oil exports.鈥
Despite Iran鈥檚 heavy reliance on the waterway, Behnam Saeedi, a member of the parliament鈥檚 National Security Committee presidium, was quoted by Mehr news agency on Thursday as saying a blockade remained on the table.
鈥淚ran has numerous options to respond to its enemies and uses such options based on what the situation is,鈥 he said. 鈥淐losing the Strait of Hormuz is one of the potential options for Iran.鈥
Mehr later quoted another lawmaker, Ali Yazdikhah, as saying Iran would continue to allow free shipping in the strait and in the Gulf so long as its vital national interests were not at risk.
鈥淚f the US officially and operationally enters the war in support of the Zionists (Israel), it is the legitimate right of Iran in view of pressuring the US and Western countries to disrupt their oil trade鈥檚 ease of transit,鈥 said Yazdikhah.
However, it is not a decision Iran would take lightly.
鈥淚f Iran closes the Strait of Hormuz, it will undoubtedly lose economically and militarily,鈥 said Ajaka. 鈥淎ny country that wants to wage war will lose if it does not have foreign currency reserves, as war depletes these reserves 鈥 preventing it from making the decision to close the strait.
鈥淭he only circumstances that might lead Iran to close the Strait of Hormuz are if it feels its regime is on the verge of collapse,鈥 he added.
As Iran already seems to have been backed into a corner, there is every chance it could take this final leap. As Al-Ansari said: 鈥淚ran is already economically crippled and is facing an existential reality. The scenario of closing the strait should never be ruled out.鈥
Past incidents have shown the global impact of regional events. In 2019, attacks on Saudi tankers near Fujairah and the Abqaiq drone strikes briefly cut 5 percent of the global oil supply. World powers, therefore, have a major interest in keeping the strait open.
鈥淎ny closure of the Strait of Hormuz would prompt military intervention by the US and the UK,鈥 said Ajaka.
On June 17, US officials informed The New York Times that Iran had positioned missiles and military assets for potential strikes on American bases in the Middle East if the US entered the conflict.
Other officials also warned Iran could resort to mining the Strait of Hormuz in the event of an attack 鈥 a strategy designed to trap US warships in the Persian Gulf.
In the event of a blockade, Ajaka suggested Western and Asian nations would likely tap into strategic petroleum reserves to mitigate immediate shortages.
However, he added this would only provide temporary relief, as non-OPEC countries have already maxed out their production capacity, leaving OPEC members as the only potential source of additional supply.
鈥淚f the strait is closed and oil prices rise, oil-producing countries, including 海角直播, may resort to halting production cuts and instead increase output to curb the sharp rise in prices,鈥 he said.
鈥淥ne other possible measure would be for the US to ease restrictions on oil-producing countries like Venezuela to increase oil supply in the market.鈥
Nevertheless, Ajaka said: 鈥淭he core position of oil 鈥 and the fundamental reason for the necessity of security in the Middle East 鈥 is that the Arabian Gulf must remain the ultimate guarantor.鈥
Formula 1 turbocharges Saudi economic diversification drive
KSA is deepening its investment in the sport as part of its strategy to stimulate economic activity
Updated 21 June 2025
MOHAMMED AL-KINANI
JEDDAH: 海角直播 is accelerating its push to diversify its economy by turning to major international events such as Formula 1, as the Kingdom uses global motorsports to support its non-oil goals.
Since hosting its first Grand Prix in 2021, the Kingdom has funneled more than $6 billion into its sports industry, part of a broader plan to boost tourism, create jobs, and raise non-oil activities to 52 percent of gross domestic product 鈥 a 20 percent jump since the launch of Vision 2030.
With plans underway to move the race to Qiddiya City between 2027 and 2029, the Kingdom is deepening its investment in the sport as part of a broader strategy to stimulate economic activity and position itself as a global hub for elite sports and entertainment.
High-profile events such as the Formula 1 Grand Prix in Jeddah exemplify how international sporting platforms are being used to stimulate tourism and highlight the Kingdom鈥檚 economic transformation.
Tamer Al-Sayed, chief financial officer at the Future Investment Initiative Institute, told Arab News that Formula 1 was never just about cars on a track. 鈥淚t was a high-velocity statement. A signal to the world that 海角直播 is playing a new game 鈥 and playing to win,鈥 he said.
Formula 1 has experienced a significant rise in popularity, with its global fan base reaching 826.5 million and viewership climbing to 1.6 billion in 2024, according to a recent report by PwC titled 鈥満＝侵辈モ檚 motorsport ambition 鈥 Technology, investment and the future of racing.鈥
The global consultancy firm鈥檚 report noted that beyond Formula 1, motorsports are expanding into electric racing and other formats such as sports car and off-road competitions, driven by technological innovation and a worldwide push for sustainability.
Global popularity surged after Liberty Media鈥檚 2017 acquisition of Formula 1 and the 2019 Drive to Survive series, which drew younger, more diverse audiences 鈥 doubling US viewership on ESPN and boosting sponsorship revenue to $632 million in 2024, according to PwC.
Economic impact
Flagship international events in 海角直播, like the Formula 1 Grand Prix, are playing a pivotal role in driving tourism, stimulating local commerce, and showcasing the Kingdom鈥檚 growing appeal as a global destination.
According to PwC鈥檚 report, 海角直播鈥檚 strategic investments in motorsports are positioning the Kingdom as a key player in the industry鈥檚 future.
The report said 海角直播 is aggressively cementing its role in motorsports鈥 future.
鈥淭he Kingdom has committed over $6 billion to its sports industry since 2021, fueling the development of world-class venues like the Jeddah Corniche Circuit and the upcoming Qiddiya Speed Park,鈥 it added.
This global expansion reflects the sport鈥檚 soaring popularity, especially among younger audiences and emerging markets. 海角直播 has managed to secure a long-term position in that landscape.
Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University
However, the report emphasized that the success of a modern motorsport circuit relies not only on financial investment but also on innovation in fan engagement, race operations, and digital broadcasting to ensure long-term success.
With the Kingdom and the wider region increasing their investment in motorsports, new opportunities for economic growth and innovation are unfolding.
鈥淎s 海角直播 and the broader MENA region invest in motorsports and advanced racing technologies, the opportunity to commercialize and expand these innovations into other industries grows exponentially,鈥 the PwC鈥檚 report said.
Al-Sayed noted that the economic ripple effects of events like Formula 1 have moved beyond anecdotal observations and are now supported by measurable data.
鈥淚n pure numbers: Since the first Saudi Grand Prix in 2021, tourism linked to the event has driven six-figure visitor volumes annually. Hotels hit peak occupancy. Flights sell out. Local businesses 鈥 from luxury brands to food trucks 鈥 ride that wave. These aren鈥檛 soft indicators; they鈥檙e measurable economic inputs,鈥 he added.
More importantly, Al-Sayed said, this is not a one-off surge but rather a case study in how a flagship event can anchor a broader sector.
鈥淓ntertainment and tourism 鈥 both once peripheral 鈥 are now pushing serious weight in the non-oil GDP mix. You can see the reflection in the Ministry of Tourism鈥檚 own targets: 150 million annual visitors by 2030, with sports and cultural events as core levers,鈥 he added.
As for the event鈥檚 impact on employment, the chief officer said that it extends beyond temporary jobs, highlighting the emergence of an entire ecosystem encompassing event production, hospitality, and logistics, as well as digital media, security, and sponsorship management.
鈥淓ach Grand Prix fuels demand across this chain, and each year the local capability strengthens. So yes, F1 was expensive. But so was missing out on the future,鈥 he said.
Al-Sayed expressed confidence that in a decade, the question will not be why 海角直播 invested heavily in sports and entertainment, but rather how it anticipated the trend ahead of the rest of the world.
Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University in Riyadh, said that Formula 1 is more than just a sport 鈥 it serves as a global platform for economic influence and visibility.
鈥淭he Las Vegas Grand Prix generated over $1.2 billion in economic activity, with racegoers spending nearly three times more than average tourists,鈥 he said, noting that similar benefits are beginning to emerge in 海角直播.
He also mentioned that hotel prices in Jeddah during the 2021 Formula 1 race exceeded $450 per night, reflecting high demand and a significant impact on the local tourism and hospitality sectors.
鈥淭his global expansion reflects the sport鈥檚 soaring popularity, especially among younger audiences and emerging markets. 海角直播 has managed to secure a long-term position in that landscape,鈥 Ghulam added.
The associate professor went on to say that global sports events, such as Formula 1 or the Olympics, bring pride, increased productivity, and deliver higher well-being to nations through buzz, branding, and business potential.
鈥淗owever, economic analysis of the costs and benefits, as well as financial risks, of hosting F1 is often overlooked. 海角直播 has been hosting F1 events exceptionally well since 2021,鈥 he said.
From Jeddah to Qiddiya
The Qiddiya megaproject in Riyadh, announced in March 2024, will feature one of the world鈥檚 most innovative motorsport tracks, with the configurable Speed Park Track located at the heart of Qiddiya City, positioning the Kingdom as a global racing destination.
Al-Sayed called Jeddah the proof of concept and Qiddiya the blueprint for 海角直播鈥檚 motorsports strategy.
He elaborated further on the success of the Jeddah circuit, noting: 鈥淲hen we launched the Jeddah circuit, the global motorsports community raised its eyebrows 鈥 and then had to admit it delivered. The fastest street circuit in F1, with a breathtaking Red Sea backdrop, timed perfectly with the Kingdom鈥檚 rising international profile.鈥
Al-Sayed called Qiddiya a masterstroke 鈥 a vision beyond a venue 鈥 designed to place Formula 1 at its core while driving growth in infrastructure, real estate, tourism, and creative industries.
鈥淚t is one of those projects where the economic spillover is the point,鈥 he said.
Echoing Al-Sayed鈥檚 remarks, Ghulam noted that when Qiddiya hosts its first Saudi Grand Prix 鈥 possibly in 2029 鈥 it will undoubtedly make waves, following the strong precedent set by Jeddah.
鈥淚t would not be surprising if 海角直播 opted to hold two races in the near future in accordance with Saudi Vision 2030, since F1 now hosts three races in the US 鈥 Miami, Austin, and Vegas,鈥 Ghulam concluded.
Why tech startups should choose Riyadh as their MENA launchpad
海角直播 offers startups access to a high-spending consumer base and a gateway to regional expansion
Updated 21 June 2025
Miguel Hadchity
RIYADH: Riyadh is becoming a leading destination for tech startups in the Middle East, fueled by 海角直播鈥檚 Vision 2030 reforms, an advanced infrastructure, and robust government-backed incentives.
The Saudi information and communication technology market is projected to reach $54.90 billion in 2025 and $82.51 billion by 2030 at a compound annual growth rate of 8.49 percent, according to an analysis by Mordor Intelligence.
This growth highlights the Kingdom鈥檚 increasing prominence as a regional innovation hub.
At the heart of this transformation is 海角直播鈥檚 Vision 2030 economic diversification plan, which has placed technology at the forefront of its strategy. Major initiatives, such as NEOM, a $500-billion smart city powered by artificial intelligence and renewable energy, and Riyadh Tech Valley, a dedicated hub for AI, the Internet of Things, and robotics startups, are driving this momentum.
Government programs such as the Saudi Unicorns Program and Tech Growth Financing provide critical support for scaling businesses, further cementing Riyadh鈥檚 appeal.
Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East, highlighted three key operational factors behind Riyadh鈥檚 startup success. 鈥淔irst, 海角直播鈥檚 advanced digital infrastructure has significantly accelerated startup growth,鈥 he told Arab News in an interview.
The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default.
Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA
Government-led digital transformation initiatives have created a robust technological backbone, with 14 percent of Saudi broadband users enjoying speeds over 1G bits per second 鈥 far surpassing the 4 percent seen in markets like the UK. 鈥淭his infrastructure supports rapid innovation and scaling up,鈥 he added.
The second factor, according to Durou, is the Kingdom鈥檚 strategic focus on developing local talent pipelines. 鈥淎s many as 86 percent of Saudi universities now provide undergraduate programs in AI, 56 percent offer master鈥檚 degrees, and doctoral opportunities stand at 9 percent,鈥 he noted.
The Deloitte leader emphasized that institutions like King Abdullah University of Science and Technology play a pivotal role in supplying startups with skilled, technology-ready talent.
Lastly, Durou pointed to the Kingdom鈥檚 supportive business environment, which includes government incentives, substantial funding mechanisms like venture capital and private equity, and vibrant incubator ecosystems such as Garage 46 and Impact 43.
He also shed light on the Kingdom鈥檚 high consumer adoption rates of advanced technologies, particularly Gen AI.
Deloitte鈥檚 recent survey outlined 海角直播鈥檚 high awareness of the technology at 76 percent, with usage frequencies of 20 percent daily and 32 percent weekly 鈥 significantly higher than the UK, he added.
When comparing Riyadh鈥檚 startup scaling environment to Dubai鈥檚, Durou observed distinct strengths in each.
鈥淚n Riyadh, government-driven initiatives such as Saudi Vision 2030 have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market,鈥 he said, adding that 鈥渆xtensive support from local incubators, accelerators, and dedicated funding programs serve to further accelerate product development and launch timelines.鈥
Durou noted that customer acquisition costs in Riyadh are comparatively lower, driven by the ongoing surge in digital adoption among consumers and supported by targeted government-backed marketing initiatives.
The fintech sector, in particular, benefits from robust governmental support, which helps meet rising local demand. Meanwhile, e-commerce growth is further propelled by high Internet penetration and shifts in consumer behavior.
鈥淒ubai offers rapid market entry facilitated by the globally recognized Dubai International Financial Centre and a mature, efficient regulatory environment. Although high market competition can drive up customer acquisition costs in Dubai, it鈥檚 balanced by an expansive and diverse customer base,鈥 he explained.
Durou highlighted that the DIFC ecosystem offers fintech startups access to government incentives, which greatly enhance their growth prospects. He also emphasized that Dubai鈥檚 strategic geographic position as a global trade hub, along with its advanced logistics and warehousing capabilities, significantly accelerates the expansion of e-commerce.
Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA, shed light on the legal structures that are proving effective in the Kingdom.
鈥淪audi startups have historically preferred an offshore ring-fencing of intellectual property assets by holding and protecting intellectual property interests in a standalone sister company based in an offshore jurisdiction,鈥 he explained to Arab News.
鈥淭his has helped startups in scaling globally and simplifies exit strategies,鈥 Al-Anizy said.
Government-driven initiatives have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market.
Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East
However, with stronger business and intellectual property laws, there is increasing trust in local company structures like the Simplified Closed Joint Stock Co.
Al-Anizy also highlighted the advantages of Riyadh鈥檚 bankruptcy laws for tech startups facing liquidity challenges. The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default, he said.
The law was introduced to provide guidance on the adoption and implementation of bankruptcy proceedings. Despite its name, the primary objective of the Bankruptcy Law is not liquidation but rather the rescue of insolvent businesses through reorganization and financial restructuring.
Al-Anizy said that this sophisticated regime demonstrated in recent large-scale restructurings, has garnered recognition from founders and investors alike. On the dispute side, mediation and the Saudi Center for Commercial Arbitration are becoming preferred avenues for resolution.
For foreign founders setting up their MENA Headquarters in Riyadh, Al-Anizy stressed the importance of clear contractual considerations. 鈥淔ounders having an unclear picture of their share cap table, equity vesting, or the conversion of any issued SAFE/KISS notes is an easily avoidable way to lose investor confidence,鈥 he warned.
A Simple Agreement for Future Equity is an investment instrument that allows startups to raise capital without immediately determining a valuation, converting it into equity upon a future-priced round or liquidity event. Similarly, a Keep It Simple Security operates as either a convertible note or a SAFE-like agreement, offering standardized terms for early-stage funding.
Both are designed to streamline early investments while deferring valuation discussions, but founders must track their terms, such as discount rates, valuation caps, and conversion triggers, to maintain transparency with investors.
Al-Anizy also advised explicit contractual clauses to ensure intellectual property rights are clearly vested in the company, safeguarding the business and maintaining investor trust.
Riyadh has become a magnet for multinational corporations, with around 600 foreign companies establishing their regional headquarters in the city since the launch of the Saudi Program for Attracting Regional Headquarters in 2021.
Spearheaded by the Ministry of Investment and the Royal Commission for Riyadh City, this initiative is a cornerstone of Vision 2030鈥檚 goal to position 海角直播 as a global business hub.
The program offers compelling incentives, including a 30-year tax relief package with 0 percent corporate and withholding taxes, streamlined setup processes, and access to world-class infrastructure.
Riyadh鈥檚 strategic location at the crossroads of Asia, Africa, and Europe, combined with its skilled workforce and economic stability, has made it the top choice for multinationals looking to expand in the region.
Riyadh鈥檚 appeal is further bolstered by business-friendly policies, including 100 percent foreign ownership in key sectors, tax incentives, and streamlined licensing through the Saudi Business Center. Startups also benefit from partnerships with major corporations like Aramco and STC, as well as accelerator programs from Flat6Labs and 500 Global.
With a population of 36 million and the largest economy in the Middle East and North Africa, 海角直播 offers startups access to a high-spending consumer base and a gateway to regional expansion. The Kingdom鈥檚 advancements in technology were recognized in the 2024 Global Innovation Index, where it secured the 47th spot among 132 countries.
Events such as the LEAP Tech Conference and Riyadh Season continue to draw global investors, while local success stories 鈥 from Tamara, 海角直播鈥檚 first fintech unicorn delivering payments and banking, to Salla, an e-commerce platform empowering SMEs with digital storefronts 鈥 demonstrate Riyadh鈥檚 potential as a launchpad for high-growth companies.
Funding flows into frontier tech as startups race to scale
Darwinz AI will use the new capital to expand its Riyadh-based team
Updated 21 June 2025
Nour El-Shaeri
RIYADH: Startups across the Middle East and Africa are attracting fresh capital as investors double down on AI, fintech, proptech, and agri-tech solutions tailored to local and regional challenges.
海角直播-based Darwinz AI, known as TheDar.AI, has raised $325,000 in seed funding to accelerate development of its AI-powered productivity platform for communication professionals.
The round was led by Flat6Labs and Glint Ventures, marking a milestone for the startup as it deepens its presence in the Kingdom.
Originally founded in Egypt in 2021 by Emad El-Azhary and Mohy Aboualam, TheDar.AI has evolved into a regional AI player with operations now headquartered in Riyadh.
The company鈥檚 flagship platform, dima, functions as an AI copilot tailored for public relations professionals, marketers, and brand managers鈥攐ffering automation features that aim to improve content workflows and campaign management.
According to the company, the new capital will be used to expand the Riyadh-based team, accelerate product development cycles, and prepare for a global launch.
Founded in 2024 by Anis Rahal, XFOLIO offers a cloud-based platform that integrates portfolio management with treasury automation. (Supplied)
鈥淭his round marks a new chapter,鈥 said co-founder Aboualam. 鈥淲e鈥檙e proud to call TheDar.AI a Saudi company with Egyptian roots, and we are excited to scale globally through the thriving ecosystem here. Stay tuned 鈥 the best is yet to come.鈥
The investment reflects growing interest in generative AI applications in the Gulf region, especially in sectors like marketing and enterprise communications, where automation and digital transformation are accelerating.
XFOLIO raises $2m to modernise treasury and wealth management
French-Lebenese Fintech platform XFOLIO has raised $2 million in seed funding to enhance its enterprise-focused digital infrastructure for financial institutions and wealth managers.
The investment round was led by Middle East Venture Partners, and is aimed at expanding the startup鈥檚 product capabilities and market reach. Founded in 2024 by Anis Rahal, XFOLIO offers a cloud-based platform that integrates portfolio management with treasury automation.
It is designed to help financial institutions, family offices, and mid-sized wealth managers consolidate both bankable and non-bankable assets鈥攑roviding a unified view of financial holdings and automating key back-office operations.
The capital will be used to launch AI-powered recommendation tools and enable cross-bank trading, two features the company believes will enhance decision-making efficiency and improve market access for underserved clients.
Prop-AI raises $1.5m to digitise real estate decisions
UAE-based proptech startup Prop-AI has secured $1.5 million in pre-seed funding to expand its AI-driven real estate intelligence platform.
The round was led by Plus VC, with contributions from Joa Capital, Select Ventures, Oraseya Capital, Plug & Play, and angel investors from 海角直播 and Bahrain.
Founded in 2023 by Ranime El-Skaff and Christian Kunz, Prop-AI uses artificial intelligence and machine learning to automate real estate search, valuation, and investment decision-making.
We鈥檙e proud to call TheDar.AI a Saudi company with Egyptian roots, and we are excited to scale globally through the thriving ecosystem here.
Mohy Aboualam Darwinz, AI co-founder & CEO
The platform caters to property buyers, investors, and real estate professionals seeking data-driven insights and automated analytics.
The funding will be used to integrate more regional data sets, enhance AI infrastructure, and launch new enterprise tools.
The startup also plans to scale across the MENA region and into European markets.
鈥淥ur mission is to build the 鈥楤loomberg of Real Estate鈥,鈥 said Ranime El-Skaff, CEO of Prop-AI.
DisrupTech backs Winich Farms in Sub-Saharan Africa debut
Cairo-based DisrupTech Ventures has made its first Sub-Saharan Africa investment by backing Winich Farms, a Nigerian agri-fintech startup, in its ongoing pre-series A round.
The move signals the fund鈥檚 broader interest in scalable fintech solutions addressing critical needs in Africa鈥檚 agriculture economy.
Winich Farms operates in 29 of Nigeria鈥檚 36 states and has built a platform focused on improving financial inclusion and market access for over 180,000 smallholder farmers.
The company connects producers directly with buyers and provides access to financing tools that reduce post-harvest losses and price volatility.
The startup plans to expand its operations beyond Nigeria and explore export opportunities into the MENA region, positioning itself as a cross-continental player in agri-fintech innovation.
鈥淥ur investment in Winich reflects our conviction in the potential of Nigeria鈥檚 agri-fintech sector and the scalability of its model,鈥 said Mohamed Okasha, managing partner at DisrupTech Ventures.
鈥淲inich is not only solving real problems for smallholder farmers but doing so with a scalable model. Agriculture is also core to Egypt鈥檚 economy, and we look forward to sharing insights and best practices between both markets as Winich grows across the continent.鈥
Octane raises $5.2m to streamline fleet payments
Egyptian fintech Octane has raised $5.2 million in a funding round led by Shorooq Partners, Algebra Ventures, and SC Holding.
The Cairo-based company was co-founded in 2022 by Amr Gamal and Ziad Eladawy, and offers a closed-loop wallet system that consolidates fleet-related expenses including fuel, maintenance, and petty cash.
Octane targets fleet operators and logistics companies that currently rely on fragmented financial systems.
Its platform provides tools for financial control, analytics, and cost optimisation.
鈥淎t Octane, we鈥檙e focused on giving fleets the rails they need to manage day-to-day payments with precision,鈥 said Amr Gamal, Co-Founder and CEO of Octane.
鈥淭his funding lets us broaden our acceptance network, expand AI-powered fraud detection and route optimisation features, and stay ahead of the shift toward cleaner, more efficient mobility, without adding complexity for our customers.鈥
The startup plans to use the new funds to grow its merchant network, expand regionally, and integrate more AI capabilities into its transaction processing and route planning tools.
OCTA secures $20m credit line to support SME automation
UAE-based fintech OCTA has secured a $20 million credit facility from Sukna Fund for Direct Financing, reinforcing its mission to embed financial services into the daily operations of small and medium-sized enterprises.
The new facility follows OCTA鈥檚 $2.25 million pre-seed round closed in October 2024, co-led by Quona Capital and Sadu Capital.
Founded in 2024 by Jon Santillan, Andrey Korchak, and Nupur Mittal, OCTA automates the contract-to-cash process for SMEs鈥攃overing invoicing, collections, payments, and now embedded credit.
The company claims to offer a unified platform that helps SMEs overcome working capital constraints and cash flow inefficiencies.
鈥淢ost SMEs don鈥檛 fail because they lack revenue 鈥 they fail because their cash is locked up,鈥 said Jon Santillan, co-founder and CEO of OCTA.
鈥淥ur partnership with Sukna Fund allows us to bring financing directly into the heart of daily operations, where businesses need it most.鈥
The funds will help OCTA scale across 海角直播 and other Gulf markets as it targets the underserved mid-market SME segment.
SaturnX raises $3m to expand stablecoin-based remittances
Dubai-based SaturnX has closed a $3 million seed round led by White Star Capital, with additional support from institutional backers.
Founded in 2024 by Mirnas Brescic, SaturnX provides an API-based infrastructure layer for stablecoin payments, designed specifically for business-to-business financial service providers.
The new capital will support expansion into Southeast Asia, with initial focus on high-volume remittance corridors such as the Philippines, Bangladesh, and Pakistan.
SaturnX also plans to enhance compliance and enterprise features on its API platform.
鈥淥ur vision is to connect the worlds of decentralised and traditional finance with infrastructure that brings the benefits of stablecoins to everyday financial use cases,鈥 said Mirnas Brescic, CEO and Founder of SaturnX.
鈥淒espite considerable progress, cross-border payments are still expensive and slow. By offering a faster, cheaper, and programmable alternative, we鈥檙e helping financial partners unlock better ways to move money.鈥
Pakistan signs $4.5 billion loans with local banks to ease power sector debt
The government, which owns much of the power infrastructure, is grappling with ballooning 鈥榗ircular debt鈥
The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure on Islamabad
Updated 21 June 2025
Reuters
KARACHI: Pakistan has signed term sheets with 18 commercial banks for a 1.275 trillion Pakistani rupee ($4.50 billion) Islamic finance facility to help pay down mounting debt in its power sector, government officials said on Friday.
The government, which owns or controls much of the power infrastructure, is grappling with ballooning 鈥渃ircular debt鈥, unpaid bills and subsidies, that has choked the sector and weighed on the economy.
The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure, making it a key focus under Pakistan鈥檚 $7 billion IMF program.
Finding funds to plug the gap has been a persistent challenge, with limited fiscal space and high-cost legacy debt making resolution efforts more difficult.
鈥淓ighteen commercial banks will provide the loans through Islamic financing,鈥 Khurram Schehzad, adviser to the finance minister, told Reuters.
The facility, structured under Islamic principles, is secured at a concessional rate of 3-month KIBOR, the benchmark rate banks use to price loans, minus 0.9 percent, a formula agreed on by the IMF.
鈥淚t will be repaid in 24 quarterly instalments over six years,鈥 and will not add to public debt, Power Minister Awais Leghari said.
Existing liabilities carry higher costs, including late payment surcharges on Independent Power Producers of up to KIBOR plus 4.5 percent, and older loans ranging slightly above benchmark rates.
Meezan Bank, HBL, National Bank of Pakistan and UBL were among the banks participating in the deal.
The government expects to allocate 323 billion rupees annually to repay the loan, capped at 1.938 trillion rupees over six years.
The agreement also aligns with Pakistan鈥檚 target of eliminating interest-based banking by 2028, with Islamic finance now comprising about a quarter of total banking assets.
