Saudi Arabia Overtakes the UAE in Middle East VC Fund Raising - Bloomberg
Saudi Arabia secured more venture capital investments than its main regional competitor, the United Arab Emirates, for the first time last year as government-backed funds boosted spending in the sector.
Startups in the kingdom raised $1.4 billion, a 33% increase from a year earlier and just over half of all venture capital funding raised in the Middle East and North Africa in 2023, according to Dubai-based venture capital data platform Magnitt.
Saudi Arabia’s tech sector was boosted by the government’s “focus on innovation, a dedicated unicorn project, and investments from sovereign funds such as SVC, Jada, and Sanabil,” according to Magnitt. In the fourth quarter, it was helped by two large deals involving local fintechs Tabby and Tamara, which allowed the kingdom to grab a top 5 spot for emerging market funding alongside Singapore, Turkey, Indonesia and Vietnam.
“It has been quite remarkable to witness the growth of the Saudi VC ecosystem. Relative to other countries across MENA, the kingdom was late to the VC space,” Magnitt founder and Chief Executive Officer Philip Bahoshy said in an interview. “2023 closed the year at almost $1.4 billion with 2 new Unicorns headquartered in the kingdom. It will be exciting to see how this will further develop heading into 2024 and beyond.”
The Public Investment Fund has been plowing money into tech firms and startups as it seeks to build a venture capital industry and encourage young entrepreneurs to set up their own businesses to diversify the economy and create jobs. The $700 billion entity created a $1 billion fund of funds for venture capital firms, and also invests directly through its subsidiary, Sanabil.
Still, funding across the wider MENA region dropped by almost a quarter last year to $2.6 billion as rising inflation, global interest rate hikes and curbs on oil production impacted appetite for venture capital across the world.
Many local and foreign investors retreated from the region during that time. Only 366 investors backed MENA startups last year, 30% fewer than in 2022, according to Magnitt. Despite initial interest from Silicon Valley and global investors in the region, only 45% of investors came from outside MENA.
Wednesday, 10 January 2024
Oil prices fall 1% after surprise US storage build | Reuters
Oil prices fall 1% after surprise US storage build | Reuters
Oil prices fell nearly a dollar a barrel on Wednesday after a surprise jump in U.S. crude stockpiles raised worries about demand in the largest oil market.
U.S. West Texas Intermediate crude futures fell 87 cents, or 1.2%, to $71.37 a barrel. Global benchmark Brent crude oil futures settled 79 cents, or 1%, to $76.80 a barrel.
Prices had gained more than 1% early in the session but reversed course after the U.S. Energy Information Administration reported a surprise build in crude oil stockpiles and larger-than-expected jumps in storage of gasoline and distillates.
Oil prices fell nearly a dollar a barrel on Wednesday after a surprise jump in U.S. crude stockpiles raised worries about demand in the largest oil market.
U.S. West Texas Intermediate crude futures fell 87 cents, or 1.2%, to $71.37 a barrel. Global benchmark Brent crude oil futures settled 79 cents, or 1%, to $76.80 a barrel.
Prices had gained more than 1% early in the session but reversed course after the U.S. Energy Information Administration reported a surprise build in crude oil stockpiles and larger-than-expected jumps in storage of gasoline and distillates.
Most Gulf markets gain ahead of US inflation data | Reuters
Most Gulf markets gain ahead of US inflation data | Reuters
Most stock markets in the Gulf ended higher on Wednesday ahead of U.S. inflation data on Thursday, although the Saudi index bucked the trend to extend losses.
The crucial event for markets this week is U.S. consumer price index inflation data, which will be scrutinised for clues on the Federal Reserve's future monetary policy.
Interest rate futures : are pricing around 140 basis points of U.S. rate cuts this year. The probability of a move in March has been pared back somewhat, but still stands at 68%.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI) gained 0.3%, led by a 7.3% jump in Ajman Bank (AJBNK.DU).
The Dubai bourse remained on an uptrend overall, although gains continue to be limited. The market could continue to find support thanks to the positive growth in economic activity in the emirate, said George Pavel, General Manager at Capex.com Middle East.
"The local non-oil sector continues to see a rapid pace of growth which could boost sentiment among investors," he said.
UAE's DP World signed $3 billion worth of memoranda of understanding with India's Gujarat state government, the Dubai media office said in a statement.
In Abu Dhabi, the index (.FTFADGI) added 0.3%.
The Qatari benchmark (.QSI) finished 0.3% higher, with Qatar Gas Transport (QGTS.QA) advancing 2.8%.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, falling for a third consecutive session, weighed down by a 1.1% fall in oil giant Saudi Aramco (2222.SE) and a 2.3% decrease in Arabian Internet and Communication Services (7202.SE).
Oil - which fuels the Gulf's economy - steadied, giving up most of its earlier gains, as Middle East supply concerns arising from the Israel-Hamas war and the shutdown of a top Libyan oilfield balanced rising U.S. output and worries about weak economic growth.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, hit by a 1.8% fall in Commercial International Bank (COMI.CA).
Most stock markets in the Gulf ended higher on Wednesday ahead of U.S. inflation data on Thursday, although the Saudi index bucked the trend to extend losses.
The crucial event for markets this week is U.S. consumer price index inflation data, which will be scrutinised for clues on the Federal Reserve's future monetary policy.
Interest rate futures : are pricing around 140 basis points of U.S. rate cuts this year. The probability of a move in March has been pared back somewhat, but still stands at 68%.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI) gained 0.3%, led by a 7.3% jump in Ajman Bank (AJBNK.DU).
The Dubai bourse remained on an uptrend overall, although gains continue to be limited. The market could continue to find support thanks to the positive growth in economic activity in the emirate, said George Pavel, General Manager at Capex.com Middle East.
"The local non-oil sector continues to see a rapid pace of growth which could boost sentiment among investors," he said.
UAE's DP World signed $3 billion worth of memoranda of understanding with India's Gujarat state government, the Dubai media office said in a statement.
In Abu Dhabi, the index (.FTFADGI) added 0.3%.
The Qatari benchmark (.QSI) finished 0.3% higher, with Qatar Gas Transport (QGTS.QA) advancing 2.8%.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, falling for a third consecutive session, weighed down by a 1.1% fall in oil giant Saudi Aramco (2222.SE) and a 2.3% decrease in Arabian Internet and Communication Services (7202.SE).
Oil - which fuels the Gulf's economy - steadied, giving up most of its earlier gains, as Middle East supply concerns arising from the Israel-Hamas war and the shutdown of a top Libyan oilfield balanced rising U.S. output and worries about weak economic growth.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, hit by a 1.8% fall in Commercial International Bank (COMI.CA).