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ADQ, Turkey Wealth Fund Launch $300m Venture Capital Fund

Signing ceremony between ADQ and Turkey Wealth Fund (Asharq Al-Awsat)
Signing ceremony between ADQ and Turkey Wealth Fund (Asharq Al-Awsat)
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ADQ, Turkey Wealth Fund Launch $300m Venture Capital Fund

Signing ceremony between ADQ and Turkey Wealth Fund (Asharq Al-Awsat)
Signing ceremony between ADQ and Turkey Wealth Fund (Asharq Al-Awsat)

ADQ, an Abu Dhabi-based investment and holding company, and Turkey Wealth Fund (TWF) launched Wednesday a $300 million-tech fund, which will invest in venture capital funds and high-growth potential companies in Turkey.

Turkey Technology Fund – ADQ TWF will invest in companies developing emerging technologies or improving existing technologies in significant sectors, such as energy and utilities, healthcare and life sciences, food and agriculture, mobility and logistics, financial services, and education.

Mohamed Hassan al-Suwaidi, the Managing Director and CEO of ADQ, said that launching the fund builds on the broader commitment to investing in the future growth of Turkey the UAE made in late 2021 as both countries continue to advance bilateral trade and investment.

“Turkey is an attractive market with substantial opportunities for investing in vital sectors that align with our areas of expertise.”

By providing access to the national and regional champions in UAE’s portfolio, ADQ will help to unlock even greater value for these companies and funds with high-growth potential, he added.

For his part, Arda Ermut, the CEO and Board Member of TWF, said Turkey has grown significantly in its technology ecosystem over the last few years.

“We believe Turkey Technology Fund – ADQ TWF will give ADQ and TWF access to a pipeline of compelling investment opportunities specialized in next-generation technologies that will contribute to the strategic growth of Turkey’s economy and ultimately reinforce bilateral cooperation between both countries.”

He pointed out that the fund marks the first step taken by the TWF as part of its vision to build a broader $1 billion technology platform to become the reference technology fund accelerating technological growth in Turkey and driving growth in strategic technological sectors critical to Turkey’s development.

Compared to similar funds in Turkey, the Turkey Technology Fund will create a unique added value for the country with its volume and international direct investment dimension and the multiplier effect it will provide for other technology investments, he added.

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.