Saudi SME job growth hits 10-month high amid expansion plansÂ
Saudi SME job growth hits 10-month high amid expansion plans /node/2586121/business-economy
Saudi SME job growth hits 10-month high amid expansion plansÂ
The Riyad Bank º£½ÇÖ±²¥ SME Purchasing Managers’ Index stood at 56.9 in December. Shutterstock
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Updated 12 January 2025
Nirmal NarayananÂ
Saudi SME job growth hits 10-month high amid expansion plansÂ
SMEs doubled over past seven years, with 45% led by women entrepreneurs, says finance minister
Riyad Bank º£½ÇÖ±²¥ SME Purchasing Managers’ Index stood at 56.9 in December
Updated 12 January 2025
Nirmal NarayananÂ
RIYADH: º£½ÇÖ±²¥â€™s small and medium enterprises recorded their strongest employment growth in 10 months during December, fueled by long-term expansion plans and robust domestic demand, according to a new report.Â
The Riyad Bank º£½ÇÖ±²¥ SME Purchasing Managers’ Index stood at 56.9 in December, slightly lower than November’s 57.1 but well above the neutral 50 mark, indicating sustained growth in the sector.Â
Strengthening the SME segment is a cornerstone of the Kingdom’s economic diversification strategy under Vision 2030, aimed at reducing dependence on oil revenues.Â
Finance Minister Mohammed Al-Jadaan highlighted the sector’s rapid growth in October, noting that the number of SMEs in º£½ÇÖ±²¥ had doubled over the past seven years, with 45 percent now led by women entrepreneurs.Â
“The Riyad Bank º£½ÇÖ±²¥ SME PMI concluded the year on a high note, reflecting a robust performance of the SME sector. The fourth quarter of the year showcased a marked improvement over the third quarter, with the average PMI hitting 56.8, the highest quarterly reading since the end of 2023,†said Naif Al-Ghaith, chief economist at Riyad Bank. Â
He added: “This upturn in the SME sector is a testament to the thriving economic environment, characterized by increasing output levels and a surge in incoming new work.â€Â Â
The report attributed December’s employment surge to sharp increases in output and incoming new work, supported by stronger business and consumer spending.Â
The analysis said that SMEs widely reported strong demand conditions, fueled by increased business and consumer spending, alongside a supportive economic environment.Â
S&P Global said job creation rose in December, with staffing levels and growth rates accelerating at their fastest pace since February.Â
“This surge in employment is fueled by long-term business expansion plans and upcoming new projects, reflecting a positive outlook among SMEs,†said Al-Ghaith. Â
Despite higher input costs, including salary increases and rising raw material prices, inflation pressures eased slightly in December compared to the previous month.Â
Business confidence among SMEs reached its highest level since March, marking three consecutive months of improved expectations.Â
He added: “This optimistic trajectory aligns with º£½ÇÖ±²¥â€™s Vision 2030.â€Â  “The strong performance of SMEs, as evidenced by the Riyad Bank º£½ÇÖ±²¥ SME PMI, underscores the ongoing efforts to bolster economic diversification and support the growth of this sector.â€Â Â
He said that SMEs’ resilience and expansion are pivotal for achieving Vision 2030’s goals of creating sustainable employment and promoting inclusive economic growth.Â
The positive SME performance aligns with broader economic trends. A separate S&P Global report showed that º£½ÇÖ±²¥â€™s overall PMI for December reached 58.4, signaling robust growth in the non-oil economy.Â
“By fostering a vibrant SME sector, º£½ÇÖ±²¥ can enhance its economic resilience, create sustainable employment opportunities, and promote inclusive growth, all key components of a diversified and dynamic economy,†concluded Al-Ghaith. Â
The employment growth reflects the Kingdom’s ongoing commitment to transforming its economy into a global hub for innovation, entrepreneurship, and investment.Â
º£½ÇÖ±²¥â€™s real estate megaprojects are rapidly emerging. (Shutterstock)
Updated 07 September 2025
MOHAMMED AL-KINANI
º£½ÇÖ±²¥ leverages architecture and culture to project soft power
Central to Vision 2030 is the ambition to create world-class urban spaces that respect cultural roots while embracing futuristic innovation
Diriyah Gate, anchored by the UNESCO-listed At-Turaif district, is restoring Najdi architecture while adding museums, cultural institutes, and heritage-focused hotels
Updated 07 September 2025
MOHAMMED AL-KINANI
JEDDAH: º£½ÇÖ±²¥â€™s real estate megaprojects are rapidly emerging as both engines of urban transformation and instruments of soft power, blending heritage with modernity to project national identity, attract global investment, and strengthen the Kingdom’s international standing.
Central to Vision 2030 is the ambition to create world-class urban spaces that respect cultural roots while embracing futuristic innovation. From Diriyah Gate, which preserves the birthplace of the Saudi state, to Neom’s The Line, a radical experiment in sustainable living, the Kingdom is fusing tradition with cutting-edge design to redefine its cities and global image.
Heritage at the core
Diriyah Gate, anchored by the UNESCO-listed At-Turaif district, is restoring Najdi architecture while adding museums, cultural institutes, and heritage-focused hotels. Similarly, Riyadh’s New Murabba development is being shaped by Salmani architectural principles — a contemporary style rooted in Najdi heritage — and is anchored by the colossal Mukaab, which will serve as the centerpiece of what is billed as the world’s largest downtown.
In a January address at the Real Estate Future Forum, Michael Dyke, CEO of New Murabba Development Co., described the Mukaab as “pound for pound, I think the world’s most complex structure ever created by man or woman in the history of time.â€
Elias Abou Samra, CEO of Rafal Real Estate Development Co., told Arab News: “Under Vision 2030, we have seen a unique approach to developing landmark projects compared to other emerging economies. Heritage and sustainability have been given priority over ultra-modern structures that do not relate to the local context.â€
He added: “In Riyadh, most of the landmark projects pay homage to the Najdi heritage of the city, following a contemporary vernacular trend known as Salmani architecture. Salmani design goes way beyond the architectural character, addressing human scale urbanism, 15 minutes districts, regenerative architecture and sustainable material.â€
Beyond the capital, cultural integration is also shaping regional developments. In AlUla, millennia-old Nabataean tombs and desert oases are preserved alongside arts and tourism hubs. In Madinah, the Rua Al-Madinah project expands capacity around the Prophet’s Mosque while retaining the city’s spiritual essence. Meanwhile, Soudah Peaks in Asir is transforming mountain terrain into a luxury destination that honors local craftsmanship and heritage.
Innovation-driven future
Alongside its cultural focus, the Kingdom is pursuing ambitious innovations. In Jeddah, the under-construction Jeddah Tower will anchor a 5 million-sq-m mixed-use masterplan.
“While media focuses on Jeddah Tower being the upcoming landmark in Jeddah, it is in fact the anchor of a large-scale mixed-use masterplan,†Abou Samra explained, noting that it would align religious tourism with modern business and leisure facilities.
He also described NEOM as “º£½ÇÖ±²¥â€™s pitch to be at the epicenter of the new Middle East and beyond. It is set to become the hub connecting east and west in a new world order.â€
With a 50-year horizon, the megacity aims to redefine industries from technology to sustainability.
Economic and cultural dividends
Abou Samra noted that several Vision 2030 real estate ventures are reaching critical mass. “This is considering a turning point in terms of the Kingdom’s attractiveness to foreign investment, as evidenced in the foreign direct investment figures related to real estate with a year-on-year growth of 12 percent and 15 percent respectively over 2023 and 2024,†he said.
FDIs, he added, act as catalysts for cultural integration, tourism, and entrepreneurship, accelerating bilateral ties.
Haider Abduljabbar, executive director at Dubai-based TownX, said AlUla is a prime example of cultural preservation driving economic growth. “The key is to preserve the essence of traditional architecture and cultural elements while introducing modern solutions,†he told Arab News.
He stressed that careful use of local materials and sustainable technologies allows projects to remain authentic. Abduljabbar highlighted the Ithra cultural center in Dhahran and the Red Sea Project as initiatives that blend tradition with modernity, comparable to Dubai’s Burj Khalifa and Al-Wasl Dome.
“These projects are not merely about state-of-the-art facilities but are firmly rooted in the Kingdom’s cultural transformation under Vision 2030,†he said. “For example, the architectural design of Ithra draws from traditional Arab forms, while using cutting-edge technologies to engage the global cultural community.â€
Regional influence
Abduljabbar emphasized that such projects are redefining the Gulf’s global image. “They shape the identity of the cities and by extension, the broader Gulf, as places that are both rooted in history yet open to global trends, making them attractive for international collaborations, tourism, and investments,†he said.
Commenting on their geopolitical importance, he added: “They serve as dynamic platforms for international collaboration, enabling Gulf countries to host global events, attract strategic partnerships, and showcase advancements in fields such as sustainability and architecture.â€
He concluded that these projects extend far beyond aesthetics. “Beyond their architectural grandeur, these projects create lasting impressions that resonate with both global leaders and international audiences, fostering deeper diplomatic relationships and enhancing the Gulf’s influence in shaping global trends.â€
Public-private partnerships are becoming increasingly vital in º£½ÇÖ±²¥ (SPA/File)
Updated 06 September 2025
Nirmal Narayanan
º£½ÇÖ±²¥ boosts private sector role to power infrastructure, jobs
“In a volatile global environment, marked by tariff frictions and supply-chain shifts, º£½ÇÖ±²¥ offers a predictable, rules-based market for FDI,†El-Asmar said
Yigit Saf, principal in the public sector practice at Arthur D. Little in the Middle East, said PPPs are facilitating activity in infrastructure and services such as education and health care
Updated 06 September 2025
Nirmal Narayanan
RIYADH: Public-private partnerships are becoming increasingly vital in º£½ÇÖ±²¥, as the Kingdom seeks to fast-track projects and sustain non-oil growth while avoiding pressure on the sovereign balance sheet, experts said.
Speaking to Arab News, Emilio El-Asmar, partner at Oliver Wyman’s Government and Public Institutions practice for India, the Middle East and Africa, said º£½ÇÖ±²¥â€™s PPP framework provides a clear channel for government support, making the Kingdom a bankable destination for international investors.
“In a volatile global environment, marked by tariff frictions and supply-chain shifts, º£½ÇÖ±²¥ offers a predictable, rules-based market for FDI. Its PPP framework provides flexible procurement routes, enforceable contracts, and clear channels for targeted government support,†he said. “These features are making projects bankable for international investors and financiers.â€
He noted that the government is also “showing skin in the game†through dedicated financing vehicles that add local currency depth and co-investment capacity, helping reduce financing friction and attract a wider pool of participants.
These elements, he said, make PPPs a practical tool to accelerate project delivery and sustain non-oil growth without overburdening public finances.
Under Vision 2030, º£½ÇÖ±²¥ aims to lift the private sector’s share of gross domestic product from about 40 percent to 65 percent, using PPPs to mobilize capital and world-class operators while maintaining fiscal agility.
To support this, the Kingdom has introduced the PPP and Privatization Law, designed to provide transparency, accountability, and protections for stakeholders.
Finance Minister Mohammed Al-Jadaan said in February at the G20 Finance Ministers and Central Bank Governors Meeting that º£½ÇÖ±²¥ has adopted a PPP model enabling private entities to partner with the government in developing and managing infrastructure projects. He highlighted initiatives such as the National Center for Privatization and the National Infrastructure Fund, which focus on drawing private investment in transport, water, and energy.
Yigit Saf, principal in the public sector practice at Arthur D. Little in the Middle East, said PPPs are facilitating activity in infrastructure and services such as education and health care, which are essential for workforce development.
“PPPs play a crucial role in three key ingredients of economic growth: investments, workforce development and productivity, while at the same time supporting public finances, and providing the government with a tool to manage, and shift away undesired strategic, operational and financial risks,†Saf said. He added that PPPs are increasingly bringing private sector dynamism into the Saudi economy.
Diversification Engine
El-Asmar said PPPs are becoming a driver of economic diversification, channeling investment into sectors well beyond hydrocarbons. º£½ÇÖ±²¥â€™s privatization pipeline includes more than 200 projects across 17 sectors, spanning airports, roads, water, health care, education and municipal services.
“This multisector flow builds what non-oil GDP needs most: logistics gateways, dependable utilities, and high-quality social infrastructure,†he said. “The payoff is broader revenue streams, new value chains and quality jobs, and a steadily rising private-sector share of GDP.â€
Saf said PPPs help optimize public spending while shifting risks to the private sector, where they can be better managed. He noted that PPPs are already drawing strong investor appetite in areas like education, health care, and construction.
“We already observe substantial investor appetite for PPP projects in º£½ÇÖ±²¥ from local and international players,†he said.
The expansion of Madinah airport is a case in point: capacity has grown from 5 million to 8 million passengers, with further expansion planned, while generating revenue for the government.
“Eventually, PPPs will contribute to the establishment of infrastructure for emerging sectors, foster innovation and technology transfer, enhance service delivery, and strengthen Saudi’s positioning in the global ecosystem through its PPP partnerships,†said Saf.
Sector Impact
El-Asmar said infrastructure will continue to see the biggest impact from PPPs. Water and wastewater are the most advanced areas, with desalination, strategic reservoirs, and sewage-treatment projects attracting international interest due to stable demand and clear offtake agreements.
He added: “Energy and power — especially renewables — are the next outsized growth drivers; as grid capacity expands, utility-scale solar and wind PPPs will deepen investor participation and free hydrocarbons for higher value uses.â€
“Transport and logistics are also accelerating, with several airport privatizations complete and further concessions in the pipeline.â€
He also pointed to new opportunities in ports, waste management, and municipal concessions such as logistics parks, which are widening investable options and multiplying non-oil value chains.
Challenges ahead
Despite the strong momentum, experts highlighted hurdles. El-Asmar said process timelines and bankability in some asset classes require attention. Multi-agency approvals and complex documentation can delay projects, he said, adding that “wider use of standardized templates, clearer roles within line ministry PPP units, and time-bound milestones can streamline those steps while preserving rigor.â€
Saf noted that PPP success will hinge on clarity and stability of the project pipeline, access to bankable opportunities, and clear risk-sharing between public and private sectors.
He said more training and knowledge transfer programs are needed to develop local expertise in managing complex PPP projects.
He also flagged public skepticism about private sector involvement, stressing that awareness campaigns and transparent implementation are crucial. Limited competition among bidders, he said, can lead to higher costs and weaker outcomes, underscoring the need for international participation and open competition.
“By addressing these challenges and implementing the necessary reforms, º£½ÇÖ±²¥ can create a thriving PPP ecosystem that attracts foreign investment, fosters private sector participation, and accelerates the country’s economic diversification goals,†Saf concluded.
MENA startups heat up with fresh capital across fintech, AI, and gaming
Intella, a Saudi-headquartered AI startup originally founded in Egypt, has raised $12.5 million in a Series A round led by Prosus
Co-founded in 2021 by Nour Al-Taher and Omar Mansour, Intella develops AI models tailored to Arabic dialects
Updated 07 September 2025
Nour El-Shaeri
RIYADH: Startups across the Middle East and North Africa are raising fresh funding to scale operations, enter new markets, and develop innovative products, signaling strong investor interest in sectors including fintech, AI, gaming, e-commerce, and proptech.
Intella, a Saudi-headquartered AI startup originally founded in Egypt, has raised $12.5 million in a Series A round led by Prosus, with participation from 500 Global, Wa’ed Ventures, Hala Ventures, Idrisi Ventures, and HearstLab.
The latest round brings Intella’s total funding to $16.9 million.
Co-founded in 2021 by Nour Al-Taher and Omar Mansour, Intella develops AI models tailored to Arabic dialects, offering transcription, analytics, and customer engagement tools.
The funding will support both regional expansion and product development.
“From day one, our vision has been to bridge the gap between global AI advancements and the Arabic-speaking world,†said Al-Taher.
“This funding from Prosus, a powerhouse investor with deep operational expertise, is a testament to the technology we’ve built and the market leadership we’ve established.â€
Sheba Joy gets $293k pre-seed
º£½ÇÖ±²¥-based mobile gaming studio Sheba Joy has secured $293,000 in pre-seed funding, led by Merak Capital. Founded in 2021 by Ebrahim Al-Hussam and Faisal Aidaros, the company recently moved its headquarters from Dubai to Riyadh, while maintaining offices in Dubai and a creative hub in India.
The studio has already published two titles and plans to launch four additional games in 2025.
The new capital will support production scale-up, hiring, and development of games that align with º£½ÇÖ±²¥â€™s Vision 2030.
“With Merak Capital’s support, we are scaling our operations in Riyadh to deliver world-class titles that can compete internationally and contribute to º£½ÇÖ±²¥â€™s vision of becoming a global gaming powerhouse,†said Al-Hussam, CEO of Sheba Joy.
Seraya secures $1.8m seed
UAE-based proptech startup Seraya has raised $1.8 million in seed funding through a mix of equity and debt, bringing its total funding to $2.15 million.
The round was led by a Saudi family office and Germany’s DLL.
Founded in 2024 by Pepijn Haima and Ibrahim Shami, Seraya offers design-focused, fully serviced apartments targeting the premium wellness travel segment.
The startup plans to expand its portfolio to 50 units by the end of 2025. “We’re building something intentional,†said Haima.
“Seraya is designed for the modern traveler, people seeking calm, comfort, and care while on the move. Our model gives us total control, from the materials we use to the experience we deliver,†Haima added.
“That’s how we’ve scaled profitably, and how we’ll build a global brand for premium serviced accommodation.â€
Munify raises $3m
Egypt-based fintech Munify has raised a $3 million seed round led by Y Combinator, with participation from BYLD and Digital Currency Group.
The company, founded in 2024 by Khalid Ashmawy, provides low-cost money transfers to Egypt, along with services such as US bank account opening, debit card issuance, and foreign exchange hedging.
Khalid Ashmawy, founder of Munify. Supplied
The funding will accelerate product development, compliance infrastructure, and expansion into new markets.
“Remittance flows are one of the most critical financial lifelines for Egypt, yet millions still face costly, slow, and fragmented services,†said Ashmawy.
“We’re building the infrastructure to make global banking and payments radically more accessible for Egyptians, wherever they live.â€
WheelsOn secures funds
UAE-based car rental startup WheelsOn has raised $12.5 million in a mix of equity and debt funding.
The round includes $2.2 million in equity from MENA-focused private investors, $6.5 million for fleet expansion, and $4 million in bank financing.
Founded in 2023 by Nikolay Melnichuk, Adlet Shagirov, and Maxim Olivson, WheelsOn operates a fully digital, deposit-free car rental platform.
The company plans to invest in fleet growth, AI-powered features such as dynamic pricing and personalized recommendations, and contactless rental technologies.
“Our mission is to rethink car rentals by offering full transparency, digital convenience, and a product that puts users in control,†said Olivson, chief product officer.
Addvocate.AI wins 216 Capital backing
Tunisia- and France-based Addvocate.AI has secured a strategic investment from VC firm 216 Capital to scale its AI-driven sales performance platform.
Founded in 2024 by Ridha Mami and Sofyan Chekir, the company offers a “Sales Performance OS†that acts as a digital copilot for sales teams, enhancing productivity with AI-native tools, behavioral nudges, and data insights.
Addvocate.AI aims to address pipeline stagnation, which affects up to half of sales opportunities globally.
With this investment, the company will accelerate product development and pursue international expansion.
“With the support of 216 Capital, we are equipped to stay ahead, breaking through the limits of traditional CRM and delivering a solution built for impact, not for data entry,†said Mami.
Justyol secures $1m
Morocco-based fashion e-commerce platform Justyol has secured a $1 million funding package comprising $400,000 in equity from an angel investor and $600,000 in inventory financing from Turkish firm Danis Group.
Founded in 2022 by Ahmed Badran, Ahmed Rashed, and Anas Ahmed, Justyol connects Turkish fashion brands to MENA markets.
The new capital will support expansion in Morocco, deepen market presence, and prepare for a future series A round.
Basata plans $7m regional expansion
Egypt’s Basata Holding for Financial Payments has announced plans to invest $7 million in 2026 to strengthen its market position and drive regional growth.
The company is currently evaluating acquisition targets, with decisions expected before year-end.
Basata is also preparing to launch new investment services in collaboration with affiliated entities, subject to regulatory approvals.
Through its stake in Jordan’s Madfoatcom, the firm aims to enter º£½ÇÖ±²¥ before year end, with further expansion plans into Morocco and Kurdistan.
Formed through the 2009 merger of Masary and Bee, Basata, formerly Ebtikar, specializes in e-payment solutions, including bill payments, mobile money, and supply chain services.
QIA joins Anthropic’s $13bn Series F
Qatar Investment Authority has joined Anthropic’s $13 billion series F funding round, alongside prominent investors including ICONIQ, Fidelity, and Lightspeed Venture Partners.
The funding will support Anthropic’s enterprise-scale capabilities, expand international operations, and accelerate its research into AI safety.
Founded in 2021, Anthropic is the developer of Claude, a family of AI models designed to prioritize reliability, interpretability, and steerability.
The company’s stated mission is to build safe and aligned AI systems for large-scale commercial and institutional use.
