#Saudi Fintech Startup Lean Explores Deals on Pathway to IPO - Bloomberg

Saudi Fintech Startup Lean Explores Deals on Pathway to IPO - Bloomberg

Saudi fintech startup Lean Technologies is exploring new investments as it seeks to expand its product offerings ahead of a possible public listing.

The company aims to grow beyond open banking and finance by investing in other businesses that can help offer more solutions to clients, according to Chief Executive Officer Hisham Al-Falih.

Lean — which is backed by at least $100 million in disclosed venture funding from investors including General Catalyst — is seeing strong activity in remittances, cross-border payment flows and alternative credit solutions, and keeping an eye on opportunities in sectors like insurance, pensions and investments.

Open banking, which lets consumers easily share data with other financial institutions or third parties, and finance are currently the core of Lean’s business.

“There are massive under-penetrated opportunities that we hear about from our customers,” Al-Falih said in an interview in Riyadh. “We feel we have a very strong right to play and right to solve these pain points. That’s really what is guiding our focus.”

Expanding its range of products is Lean’s main priority as the company lays the groundwork for a potential initial public offering in the future, he said. Al-Falih sees both Saudi and regional markets as “very attractive” but has yet to make any decision on IPO timing.

Lean has benefited in recent years as Saudi Arabia and the United Arab Emirates develop regulatory frameworks to promote open banking and digital finance to help drive their economic diversification agendas.

Financial technology in general is seen as a critical sector for development for both countries as they also look to drive innovation and entrepreneurship, while making it easier to live, work and do business in the Middle East.

Startups in the Middle East raised a record $1.2 billion in funding last quarter, defying a collapse in broader emerging markets. That performance was fueled by so-called mega deals worth more than $100 million and was backed by strong interest in fintech companies.

Lean, which provides open finance capabilities for more than 300 businesses, remains focused on expanding within its core markets of Saudi Arabia and the UAE, though may look to grow into new countries in the years ahead, according to Al-Falih.

He characterized the company as being “well funded” after raising almost $70 million in a Series B round last year. “We have a good balance sheet that sees us not really needing to fundraise to sustain our core business.”

PIF-owned Al Balad Development launches $3.6 billion hospitality investment portfolio | Reuters

PIF-owned Al Balad Development launches $3.6 billion hospitality investment portfolio | Reuters

Saudi Arabia's Al Balad Development Co., fully owned by the Public Investment Fund, has launched a $3.6 billion investment portfolio for the hospitality sector, state TV reported on Tuesday.

The company aims to develop more than 3,300 hotel units across categories from mid-scale to luxury through flexible investment and financing models, including public-private partnerships and investment funds, the report said.

The initiative is part of the kingdom's push to diversify its economy beyond oil by expanding tourism and hospitality, a pillar of its Vision 2030 reform plan.

#Qatar’s QIA, Orix to Start $2.5 Billion Japan-Focused PE Fund - Bloomberg

Qatar’s QIA, Orix to Start $2.5 Billion Japan-Focused PE Fund - Bloomberg

Qatar’s sovereign wealth fund is teaming up with Orix Corp. to start a $2.5 billion private equity fund targeting Japanese companies, people familiar with the matter said.

The investment is Qatar Investment Authority’s first in a Japan-focused private equity fund, said the people, who asked not to be identified before an announcement. Orix will provide 60% of the capital, with QIA contributing the rest, the people said.

QIA joins a growing list of global investors seeing growing potential in buyouts in Japan. Firms from Blackstone Inc. to KKR & Co. have been stepping up investments in the country, where a corporate governance drive is pushing conglomerates to sell non-core assets and aging business owners are struggling to find successors.

The fund will invest in companies with an enterprise value of at least ¥30 billion ($195 million), the people said. It will look for opportunities in business succession, listed companies being taken private and carve-outs by larger firms, according to the people.

Both Orix and QIA will be limited partners, with investment decisions to be made by a third entity, OQCI GP Ltd., the people said.

Tokyo-based Orix has operations ranging from banking to leasing and real estate. Partnering with QIA will help it to use its capital more efficiently than by making the entire investment with its own balance sheet, the people said.

Most Gulf markets in black on US rate cut bets | Reuters

Most Gulf markets in black on US rate cut bets | Reuters

Most stock markets in the Gulf ended higher on Tuesday, aided by rising hopes for a December rate reduction from the Federal Reserve and indications that the U.S. government shutdown is nearing an end.

Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.2%, helped by a 1.1% gain in Al Rajhi Bank (1120.SE), opens new tab and a 2.4% increase in Dar Al Arkan Real Estate Development (4300.SE), opens new tab, extending gains from the previous session following a steep rise in quarterly earnings.

Shares of Kingdom Holding (4280.SE), opens new tab - the investment firm controlled by billionaire Prince Alwaleed Bin Talal - leapt 2.2% on a 129% increase in third-quarter profit.

On the downside, Saudi Advanced Industries (2120.SE), opens new tab tumbled 6.1% - its biggest decline since August - after reporting a 99% plunge in third-quarter profit.

Overall, the third-quarter earnings season was largely mixed, though robust non-oil economic activity bolstered sentiment, according to Milad Azar, market analyst at XTB MENA.

Dubai's main share index (.DFMGI), opens new tab advanced 1.1%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab jumping 3.7%.

Traders are pricing in a roughly 64% probability that the Fed will cut rates by 25 basis points next month, according to CME Group's FedWatch tool.

Last week, data revealed that the U.S. economy had lost jobs in October, driven by declines in the retail sector and the government. And on Friday, a survey showed that U.S. consumer sentiment weakened to a 3-1/2-year low in early November due to worries about the economic effects of the shutdown.

Important economic metrics, including the non-farm payrolls report, have been delayed by the shutdown.

U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

Abu Dhabi's index (.FTFADGI), opens new tab edged 0.1% higher.

The Qatari index (.QSI), opens new tab added 0.5%, led by a 1.2% rise in Qatar National Bank (QNBK.QA), opens new tab - the Gulf's biggest lender by assets.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.4%, stretching losses from the previous session when it retreated from record highs on profit taking.

The market fundamentals remain solid, backed by healthy momentum and continuous positive macroeconomic and corporate developments, said Azar.