عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Advances Tech Hub Leadership Position with $888 Mln in Deals at LEAP 24 

Saudi Arabia further advanced its position as a regional tech and investment hub during LEAP 24, with the announcement on Tuesday of $888 million in investment funds and funding rounds backing innovation and tech entrepreneurship in the Kingdom and across the region. (Asharq Al-Awsat)
Saudi Arabia further advanced its position as a regional tech and investment hub during LEAP 24, with the announcement on Tuesday of $888 million in investment funds and funding rounds backing innovation and tech entrepreneurship in the Kingdom and across the region. (Asharq Al-Awsat)
TT
TT

Saudi Arabia Advances Tech Hub Leadership Position with $888 Mln in Deals at LEAP 24 

Saudi Arabia further advanced its position as a regional tech and investment hub during LEAP 24, with the announcement on Tuesday of $888 million in investment funds and funding rounds backing innovation and tech entrepreneurship in the Kingdom and across the region. (Asharq Al-Awsat)
Saudi Arabia further advanced its position as a regional tech and investment hub during LEAP 24, with the announcement on Tuesday of $888 million in investment funds and funding rounds backing innovation and tech entrepreneurship in the Kingdom and across the region. (Asharq Al-Awsat)

Saudi Arabia further advanced its position as a regional tech and investment hub during LEAP 24, with the announcement on Tuesday of $888 million in investment funds and funding rounds backing innovation and tech entrepreneurship in the Kingdom and across the region.

On the second day of LEAP 24 in Riyadh, Investcorp launched a $500 million growth-stage fund.

Oasis Capital launched "Fund II" with a capital of $100 million.

The National Development Fund and the Social Development Bank established the $40 million Gaming and Esports Investment Fund, managed by Impact46.

Merak Capital established a fund with $80 million to support game accelerators in Saudi Arabia.

Saudi Arabia’s Takamol Holdings launched a $50 million investment arm, focused on funding early-stage tech companies.

Plug and Play launched its first fund to invest in technology startups, while X by Unifonic announced its first investment fund to support business software services for startups.

Funding rounds

As part of Saudi Arabia's position as the largest tech and digital economy in the Middle East and North Africa (MENA) region, startups raised more than $53.4 million through funding rounds during LEAP 24.

BRKZ, a Saudi-based international information technology company, raised $8 million in a Series A round.

FanZ, a Saudi AI-enabled sport tech company, announced a pre-seed funding round of $1.5 million.

Lawazem, an online Saudi B2B supplies player, announced a pre-Series A round of $8 million to expand its operations, while RemotePass, a cross-border team onboarding services company, announced a Series A funding round of $5.5 million.

Moyasar, a Saudi payment gateway, announced a Series A funding round to scale operations across the MENA region as it deepens services in the Kingdom with Saudi-based Jahez.

Buildnow, a Saudi fintech company, announced a seed funding round led by RAED Ventures and Khawarizmi Venture Fund.

A liquidity bridge initiative was launched to support startups by providing immediate financial assistance, covering up to 50% of capital investment financing. The SourceTech initiative will grant financial support to incentivize technology outsourcing companies to establish and expand their services across the Kingdom.

NTPD initiatives

Saudi Arabia's National Technology Development Program (NTDP) launched five initiatives to expand the IT sector. These initiatives guide and source funding for pre-seed and early-stage startups. They will support emerging technologies focusing on priority sectors, such as Artificial Intelligence, quantum computing, space technology, biotechnology, smart cities, mobility technology, open radio access networks, and deep tech.

NTDP launched the AIM initiative to stimulate the AI ecosystem and provide access to R&D infrastructure. The AIM initiative aims to elevate local talent, address sector challenges, and create projects with lasting impact over the next five years.

NTDP announced the AdoptTech initiative to bridge the technology gap for startups and small and medium-sized companies in the Kingdom. The initiative will accelerate digital transformation for companies, enhancing a robust technological ecosystem and providing financial assistance and access to technological solutions.

Most Viewed

 
 
Business

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
TT
TT

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.