Saudi Fintech Acquisition by Tabby Sparks New Hopes for VCs - Bloomberg
When Saudi Arabia-based Tabby — one of the Middle East’s first fintech unicorns — announced it was acquiring startup Tweeq, it turned heads among venture capitalists eyeing investment opportunities in the kingdom.
The deal, which will see Tabby buy the digital-wallet operator for an undisclosed sum, was viewed as fresh evidence that Saudi Arabia’s startup market is maturing and may start to give VCs more strategies for exiting their investments, investors said at the 24 Fintech conference in Riyadh last week.
“Successful startup ecosystems are flywheels and startup exits are a key cog,” said Alexandre Lazarow, global venture capitalist and founder of Fluent Ventures. “They help return capital to investors and catalyze new generations of angel investors.”
“One of the things that’s exciting about the Saudi market today is the early but increasing amount of technology IPOs and M&A, including in fintech,” Lazarow said, stressing the importance of a viable path to exiting investments in Saudi Arabia as it navigates the early stages of developing its VC market.
Saudi Arabia has emerged as one of the hottest markets among emerging VC countries in recent years. It trailed only Singapore in the first half of 2024, with more than $400 million in funds raised, and ranked the highest in the Middle East and North Africa. The country last year overtook the UAE as the top destination for VC investment in the Middle East for the very first time.
Saudi company Rasan Information Technology Co., which operates online insurance platforms such as Tameeni and Treza, was among the first local fintech firms to go public in the kingdom. It raised $224 million in June and has seen its share price climb more than 43% since its trading debut.
The UAE has historically been the most advanced venture market in the region, with investments dating back to 2013 and 2014, according to VC data firm Magnitt. The country has accounted for around 45% of all M&A deals closed in MENA since 2019.
But Saudi Arabia is starting to catch up on M&A in particular; 19% of transactions done last year in the region were in the kingdom, Magnitt said.
“The window for exit activity in Saudi Arabia is likely to come into fruition in the next 2-3 years,” said Magnitt Chief Executive Officer Philip Bahoshy. “It takes between 7-8 years for a company in MENA to achieve an exit.”
Saudi startups have received a significant boost from investments by local funds including STV and Sanabil, a unit of Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund. Plowing money into tech firms and startups aims to serve the goal of building a venture capital industry and encouraging young entrepreneurs to set up businesses that can aid in the kingdom’s efforts to diversify the economy.
Tabby — a fintech that now offers buy-now-pay-later solutions — agreed to shift its headquarters to Saudi Arabia from the UAE last year. It plans to go public on the Saudi stock exchange in late 2025 or 2026, the company told local media outlet Argaam last week.
Tabby, which has raised funds from regional and global players like Wellington Management, STV, Mubadala Investment Capital, PayPal Ventures and Hassana Investment Co., said Tweeq will continue operating independently once its acquisition of the company is complete.
Tuesday 10 September 2024
Most Gulf markets gain, key US inflation data in focus | Reuters
Most Gulf markets gain, key US inflation data in focus | Reuters
Major stock markets in the Gulf ended higher on Tuesday ahead of key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.
Investors remained focused on the U.S. consumer price index report due on Wednesday, which will likely provide clarity on whether the Fed will deliver an outsized 50-basis-point cut when it meets on Sept. 17-18.
Market pricing points to about 110 bps of cuts expected from the U.S. central bank this year. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council, including the UAE, is usually guided by the Fed's policy decisions because most currencies in the region are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.2%, helped by a 0.3% increase in Al Rajhi Bank (1120.SE), opens new tab and a 0.7% gain in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab advanced 0.7%, with top lender Emirates NBD (ENBD.DU), opens new tab rising 2.3%.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.5%.
The UAE economy grew 3.4% in the first quarter of 2024 compared with the same period of the previous year, according to preliminary government estimates reported by the state news agency WAM on Monday.
The Qatari benchmark (.QSI), opens new tab finished 0.5% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.9%, weighed down by a 4.5% slide in Ezz Steel (ESRS.CA), opens new tab.
Egypt's annual urban consumer price inflation rate unexpectedly accelerated to 26.2% in August from 25.7% in July, data from statistics agency CAPMAS showed on Tuesday.
Major stock markets in the Gulf ended higher on Tuesday ahead of key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.
Investors remained focused on the U.S. consumer price index report due on Wednesday, which will likely provide clarity on whether the Fed will deliver an outsized 50-basis-point cut when it meets on Sept. 17-18.
Market pricing points to about 110 bps of cuts expected from the U.S. central bank this year. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council, including the UAE, is usually guided by the Fed's policy decisions because most currencies in the region are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.2%, helped by a 0.3% increase in Al Rajhi Bank (1120.SE), opens new tab and a 0.7% gain in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab advanced 0.7%, with top lender Emirates NBD (ENBD.DU), opens new tab rising 2.3%.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.5%.
The UAE economy grew 3.4% in the first quarter of 2024 compared with the same period of the previous year, according to preliminary government estimates reported by the state news agency WAM on Monday.
The Qatari benchmark (.QSI), opens new tab finished 0.5% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.9%, weighed down by a 4.5% slide in Ezz Steel (ESRS.CA), opens new tab.
Egypt's annual urban consumer price inflation rate unexpectedly accelerated to 26.2% in August from 25.7% in July, data from statistics agency CAPMAS showed on Tuesday.
#Dubai, #AbuDhabi: Millionaire Magnet #UAE Spurs Private Banking Boom - Bloomberg
Dubai, Abu Dhabi: Millionaire Magnet UAE Spurs Private Banking Boom - Bloomberg
As governments around the world increasingly count on wealthy residents to plug fiscal gaps, low-tax jurisdictions have become more attractive destinations for the rich. Add in a time zone conducive for trading most markets, airports that’re well connected to global hubs, some of the best restaurants, hotels and luxury housing — and it becomes clear why the United Arab Emirates has managed to leapfrog other countries.
A wave of high net worth individuals flocked to Dubai during the pandemic — the city shunned lockdowns for the most part and vaccinations were easily available — and the trend gathered pace when Russia invaded Ukraine. More recently, billionaires have flocked to Abu Dhabi, which has emerged as the world’s newest wealth haven.
Favorable government policies have also helped. “High net worth individuals like to operate in markets where they’re treated as partners,” Philippe Amarante, Henley & Partners’ Middle East Managing Partner told my colleague Joumanna Bercetche on Bloomberg TV. “So, it all comes together in as a perfect equation, and I’d say that’s the key instrument of attraction for the UAE.”
More than 6,700 millionaires are expected to move to the Gulf nation this year, according to a report from the firm. That’s up 70% since 2022 and means the country will take pole position for the third straight year.
As governments around the world increasingly count on wealthy residents to plug fiscal gaps, low-tax jurisdictions have become more attractive destinations for the rich. Add in a time zone conducive for trading most markets, airports that’re well connected to global hubs, some of the best restaurants, hotels and luxury housing — and it becomes clear why the United Arab Emirates has managed to leapfrog other countries.
A wave of high net worth individuals flocked to Dubai during the pandemic — the city shunned lockdowns for the most part and vaccinations were easily available — and the trend gathered pace when Russia invaded Ukraine. More recently, billionaires have flocked to Abu Dhabi, which has emerged as the world’s newest wealth haven.
Favorable government policies have also helped. “High net worth individuals like to operate in markets where they’re treated as partners,” Philippe Amarante, Henley & Partners’ Middle East Managing Partner told my colleague Joumanna Bercetche on Bloomberg TV. “So, it all comes together in as a perfect equation, and I’d say that’s the key instrument of attraction for the UAE.”
More than 6,700 millionaires are expected to move to the Gulf nation this year, according to a report from the firm. That’s up 70% since 2022 and means the country will take pole position for the third straight year.
#SaudiArabia’s Vision 2030 Projects Reach $1.3 Trillion in Value - Bloomberg
Saudi Arabia’s Vision 2030 Projects Reach $1.3 Trillion in Value - Bloomberg
Saudi Arabia has launched $1.3 trillion in real estate and infrastructure projects over the past eight years as part of its plan to diversify the economy away from oil and become a more attractive place to live, work and travel.
The volume of projects is up 4% from a year ago, according to Knight Frank. This includes more than a million residential units and mega developments such as Neom on the Red Sea coast, the real estate consultancy group said in its latest Saudi Giga Projects Report.
About $164 billion worth of real estate contracts have been awarded since 2016, when Saudi Crown Prince Mohammed bin Salman unveiled his strategy to wean the country off its dependence on petrodollars and improve the quality of life for locals.
The largest chunk of that money — $28.7 billion — has gone to Neom, with heavy spending on the development within it known as The Line, a pair of mirror-clad towers expected to eventually span the length of about 105 miles.
Other projects with the highest awards to date include the National Housing Co. with $12 billion, the development of Diriyah Gate at $9 billion and the entertainment city of Qiddiya in Riyadh with almost $7 billion, Knight Frank said.
Saudi Arabia has launched $1.3 trillion in real estate and infrastructure projects over the past eight years as part of its plan to diversify the economy away from oil and become a more attractive place to live, work and travel.
The volume of projects is up 4% from a year ago, according to Knight Frank. This includes more than a million residential units and mega developments such as Neom on the Red Sea coast, the real estate consultancy group said in its latest Saudi Giga Projects Report.
About $164 billion worth of real estate contracts have been awarded since 2016, when Saudi Crown Prince Mohammed bin Salman unveiled his strategy to wean the country off its dependence on petrodollars and improve the quality of life for locals.
The largest chunk of that money — $28.7 billion — has gone to Neom, with heavy spending on the development within it known as The Line, a pair of mirror-clad towers expected to eventually span the length of about 105 miles.
Other projects with the highest awards to date include the National Housing Co. with $12 billion, the development of Diriyah Gate at $9 billion and the entertainment city of Qiddiya in Riyadh with almost $7 billion, Knight Frank said.
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