Saudi Arabia has taken a significant step towards enhancing its investment climate with the introduction of a new investment law. The law, which replaces the existing Foreign Investment Law, aims to create a more attractive environment for both domestic and foreign investors, driving economic development and job creation.

The new investment law, issued pursuant to Royal Decree No. (M/19), will come into effect on or around February 7, 2025. It introduces several key changes, including:

Equal Treatment: The law applies to both Saudi and foreign investors, ensuring a level playing field for all.

Simplified Registration: The cumbersome licensing process has been replaced with a streamlined registration procedure, making it easier for investors to set up businesses.

Investment Incentives: The government will offer various incentives and facilities to attract both local and foreign investments.

Dispute Resolution: Investors will have access to alternative dispute resolution mechanisms, such as arbitration and mediation.

Freedom of Investment: Foreign investors will enjoy a high level of freedom to invest in various economic activities, with limited exceptions.

The new law is expected to have a positive impact on Saudi Arabia's economy by attracting more foreign investment, creating jobs, and fostering innovation. It aligns with the Kingdom's Vision 2030, which aims to diversify the economy and reduce reliance on oil.

Key benefits of the new investment law include:

Increased Foreign Investment: The simplified registration process and favorable investment incentives will make Saudi Arabia more attractive to foreign investors.

Job Creation: New businesses and expanded operations will lead to increased job opportunities for Saudi citizens.

Economic Diversification: The law will contribute to the diversification of the Saudi economy, reducing its dependence on oil.

Improved Competitiveness: Saudi Arabia will become a more competitive investment destination, attracting a wider range of businesses and industries.

Enhanced Governance: The new law strengthens the legal framework for investment, providing greater clarity and certainty for investors.

As the law comes into effect, it will be crucial to monitor its implementation and address any challenges that may arise. However, the new investment regime represents a significant step forward in Saudi Arabia's efforts to become a global investment hub.

Additional considerations:

Executive Regulations: The detailed rules and procedures for implementing the new law will be outlined in the executive regulations, which are expected to be issued within 180 days of the law's publication.

Dispute Resolution: The availability of alternative dispute resolution mechanisms will provide investors with more efficient and cost-effective ways to resolve disputes.

Investment Incentives: The specific incentives offered to investors will depend on the nature of the investment and the sector involved.

National Security: Certain activities will remain reserved for Saudi nationals, ensuring national security interests are protected.

Overall, the new investment law is a positive development for Saudi Arabia and its economy. It demonstrates the Kingdom's commitment to creating a welcoming and supportive environment for investors.

JARAS Hospitality, a pioneering technology company dedicated to transforming the hospitality industry, has successfully closed a pre-Seed funding round of $666,000.

Led by a group of undisclosed angel investors, this investment will fuel JARAS's mission to provide innovative solutions that streamline hotel operations and elevate guest experiences.

Founded in 2023 by Ahmed Al Zubaidi, JARAS offers a comprehensive suite of hospitality management tools designed to simplify bookings, optimize pricing, and enhance operational efficiency.

The company's integrated platform empowers hotel managers with real-time insights, enabling them to make data-driven decisions and deliver exceptional service.

With this new funding, JARAS will focus on further refining its product offerings to meet the evolving needs of the hospitality market. The company plans to expand its customer base and solidify its position as a leading provider of innovative hospitality management solutions.

Key areas of focus for JARAS include:

• Product Development: Continuously refining and expanding the company's product suite to address the specific needs of hotels of all sizes.
• Customer Acquisition: Implementing targeted marketing strategies to attract new customers and expand JARAS's market reach.
• Strategic Partnerships: Collaborating with industry leaders to offer complementary services and enhance value for customers.
• Technology Innovation: Staying at the forefront of technological advancements to provide cutting-edge solutions.

"We are delighted to have secured this investment, which will enable us to accelerate our growth and deliver even greater value to our customers," said Ahmed Al Zubaidi, CEO of JARAS Hospitality. "Our goal is to revolutionize the way hotels operate by providing cutting-edge technology that improves efficiency, reduces costs, and enhances guest satisfaction."

JARAS's commitment to innovation and excellence has already made a significant impact on the hospitality industry.

By leveraging technology to streamline operations and improve guest experiences, JARAS is helping hotels to stay competitive in today's fast-paced market.

Jetapult, a leading global gaming investment firm, has announced a significant investment in UMX, a promising game studio based in Saudi Arabia. The $4.5 million infusion of capital will empower UMX to expand its game portfolio, reach new audiences worldwide, and pioneer innovative gaming experiences.

Founded in 2014 by Ali Alharbi, UMX has been at the forefront of developing engaging and entertaining mobile car games. With Jetapult's strategic support, UMX is poised to elevate its game development capabilities and solidify its position in the competitive gaming landscape.

Jetapult, known for its data-driven approach to gaming investments, will provide UMX with invaluable expertise and resources. The investment firm's team of seasoned gaming professionals will assist UMX in optimizing user acquisition, scaling monetization efforts, and leveraging cutting-edge analytics and AI technologies.

"This strategic partnership with Jetapult marks a pivotal moment for UMX," said Ali Alharbi, founder of UMX. "Their investment not only validates our potential but also provides us with the necessary tools and resources to accelerate our growth and innovation."

Jetapult's investment in UMX is a testament to the burgeoning gaming industry in Saudi Arabia. The region's growing appetite for gaming content and the increasing number of talented developers have created a fertile ground for investment opportunities.

As part of its global expansion strategy, Jetapult plans to invest in promising game studios in Southeast Asia, Europe, and the Middle East and North Africa (MENA) region. By supporting studios like UMX, Jetapult aims to foster sustainable growth and innovation in these emerging markets.

Jetapult's commitment to the gaming industry extends beyond financial support. The firm's "Invest & Operate" (I&O) model ensures that it provides hands-on guidance and operational assistance to its portfolio companies. This approach has proven successful in helping game studios achieve their full potential and deliver exceptional gaming experiences to players worldwide.

Saudi Arabian startup Reachware has successfully raised $3 million in seed funding, led by Sadu Capital with participation from 500 Sanabil Investments and Elm Company.

Founded in 2021 by Hamza Abusitta and Maysarah Mashaal, Reachware offers businesses a comprehensive suite of services, including system integration, process automation, and advanced analytics. The company's innovative solutions have helped clients streamline operations, reduce errors, and gain valuable insights.  

Plans for Growth

With this new funding, Reachware aims to expand its operations, develop new products, and enhance its sales and marketing efforts in the GCC market. The company plans to hire additional talent, explore AI and machine learning technologies, and strengthen its partnership program.

Investor Confidence

The investment round was led by Sadu Capital, a leading early-stage fund that recognizes Reachware's potential to transform the automation and integration landscape. Salem Washeely, Managing Director at Sadu Capital, commented on the investment, stating, "In the era of digital transformation, the need for seamless system integration and unified reporting has become paramount. Reachware's deep expertise and innovative approach make them well-positioned to dominate this market in the MENA region."

Strategic Partnerships

Reachware has already established strong partnerships with major tech companies and regional institutions. These collaborations have enabled the company to integrate with over 200 systems, ensuring seamless data flow between different applications.

Customer Success

Since its launch, Reachware has attracted over 300 clients from various industries, including retail, manufacturing, financial services, hospitality, and e-commerce. The company's solutions have helped clients improve efficiency, reduce costs, and make data-driven decisions.

A Bright Future

With this significant funding boost, Reachware is poised to accelerate its growth and become a leading player in the automation and integration market. By leveraging its innovative solutions and strategic partnerships, the company is well-positioned to shape the future of business technology.

Saudi Arabia's restaurant industry is experiencing a meteoric rise, transforming the Kingdom into a coveted destination for global food and beverage brands.

A confluence of factors, including a burgeoning young population with a discerning palate, government-led economic diversification, and a burgeoning tourism sector, has propelled the industry into a period of unprecedented growth.

The Kingdom’s ambitious Vision 2030 initiative, aimed at reducing oil dependency and diversifying the economy, has created a fertile ground for investment in non-oil sectors, including hospitality and leisure.

As part of this strategy, Saudi Arabia is positioning itself as a global entertainment and tourism hub, a vision that is rapidly materializing.

The decision to host the 2034 FIFA World Cup has accelerated this trajectory, necessitating a significant expansion of the country’s hospitality infrastructure, including its culinary offerings.

The restaurant sector has responded enthusiastically to these developments. A burgeoning middle class with increasing disposable income, coupled with a growing appetite for international cuisines, has created a robust consumer base.

Point-of-sale data reveals a staggering 13.6% annual growth in restaurant and café spending, underscoring the sector’s dynamism.

Moreover, the government's proactive stance in creating a conducive business environment has been instrumental in attracting foreign investment.

Streamlined regulations and supportive policies have facilitated the entry of international brands, enriching the culinary landscape and elevating dining experiences for Saudi consumers.

As the Kingdom undergoes a rapid social and cultural transformation, the restaurant industry is at the forefront of this evolution. A new generation of Saudi consumers is increasingly exposed to global trends and demands diverse and innovative dining options. This shift in consumer preferences has prompted both local and international players to invest heavily in the market.

Looking ahead, the prospects for Saudi Arabia's restaurant sector are exceedingly bright. With a projected doubling of market size by 2030, the industry is poised to become a significant contributor to the Kingdom's GDP.

However, success will hinge on the ability of industry stakeholders to adapt to evolving consumer tastes, leverage technology to enhance customer experience, and ensure sustainability in operations.

In conclusion, Saudi Arabia's restaurant sector is undergoing a period of extraordinary growth, driven by a combination of economic, demographic, and cultural factors.

The Kingdom's strategic vision, coupled with a supportive regulatory environment, has created a compelling investment proposition for global food and beverage players.

As the industry continues to mature, it is expected to play a pivotal role in shaping Saudi Arabia's image as a global destination for tourism, leisure, and culinary excellence.

The winds of change are blowing through the deserts of Saudi Arabia, and with them comes a burgeoning sports industry beckoning for British investment.

Fueled by the transformative Vision 2030 plan, the Kingdom is witnessing a dramatic shift towards a more active and engaged population, with sports playing a central role in this cultural revolution.

This newfound passion, coupled with a projected market value of SAR84 billion (US$22.38 billion) by 2030, is painting a very attractive picture for investors from across the globe, particularly those in the UK.

A Market Poised for Takeoff:

The Saudi sports industry isn't just brimming with potential; it's already experiencing impressive growth. According to Mohammed El-Nemer, vice chairman of the Saudi British Joint Business Council, the sector enjoyed a remarkable 12% annual growth rate between 2018 and 2023.

This momentum was further underscored at the recent UK-Saudi Sports Investment and Innovation Forum held in London. Organized by the Saudi Chambers of Commerce and the Saudi British Joint Business Council, the event served as a platform to showcase the vast opportunities this burgeoning market has to offer.

A Nation Embraces a Healthy Lifestyle:

Basim Ibrahim, Director of Sports Sector Investment Development at the Ministry of Investment, shed light on the growing national obsession with sports and entertainment in Saudi Arabia. He revealed that a staggering 67% of the population actively participates in sports and video games, according to Turki Al-Fawzan, CEO of the Saudi Electronic Sports Federation.

This enthusiasm transcends demographics and age groups, creating a fertile ground for investment across various segments of the sports industry, from traditional sports facilities and equipment to the burgeoning world of esports.

Building Bridges Through Collaboration:

The UK-Saudi Sports Investment and Innovation Forum wasn't just about highlighting the investment potential. A key focus of the event was fostering collaboration between the UK and Saudi sports industries.

Representatives from both nations' sports and investment ministries, along with over 100 senior officials and investors, participated in fruitful discussions exploring avenues for:

• Joint ventures in organizing major sporting events: Imagine a scenario where British and Saudi expertise combine to create world-class sporting spectacles, attracting international audiences and boosting tourism in both countries.
  
  
• Strategic international mergers and acquisitions: The forum provided a platform for UK companies to explore potential partnerships and acquisitions within the Saudi sports landscape, allowing them to gain a foothold in this rapidly growing market.
  
  
• Developing cutting-edge sports technology and esports infrastructure: The rise of esports presents a lucrative opportunity, and the forum discussions aimed at identifying areas where UK expertise in technology and infrastructure development can be leveraged to propel the Saudi esports scene to even greater heights.
  
  
• Investing in programs that enhance the quality of life through sports: The forum acknowledged the positive social impact of sports, and discussions were held on potential collaborations in developing grassroots programs that promote health and well-being through sports participation across all segments of Saudi society.

A Once-in-a-Lifetime Opportunity:

The UK-Saudi Sports Investment and Innovation Forum sent a clear and resounding message: the Saudi sports industry is a goldmine waiting to be explored.

With a government actively seeking foreign investment, a passionate population eager to embrace an active lifestyle, and a market on a clear upward trajectory, the time for UK investors to seize this once-in-a-lifetime opportunity is now.

By forging strategic partnerships and leveraging their expertise, British companies can play a pivotal role in shaping the future of Saudi Arabia's dynamic sports landscape, while reaping significant rewards in the process.

MDD Saudi Arabia, a company specializing in supply chain and procurement management, announced the closure of a Series A investment round without disclosing the specific financial value.

The company stated that the investment was made by an individual investor, with 5% of the company’s shares sold at a valuation exceeding 100 million Riyals.

Founded in Riyadh in mid-2019, MDD aims to provide solutions for challenges in the business sector’s supply chain and procurement market.

The company integrates financial technology with supply chain and procurement management, covering the entire process from order initiation to financing, sourcing, and payment, through its “OFSP” methodology.

MDD also mentioned that it had previously received preliminary approval for its business model from the Saudi Central Bank (SAMA) and is striving to bridge current gaps in the sector, particularly those related to financing.

Source: Entarabi

The recent regulatory change allowing foreign investors to be treated as Saudis under the Nitaqat system in Saudi Arabia has significant implications for foreign businesses operating in the country. This policy shift aims to enhance the investment climate, promote economic growth, and attract more foreign investment to Saudi Arabia.

Nitaqat System: Background

The Nitaqat system is a Saudization program implemented in Saudi Arabia to encourage the employment of Saudi nationals in the private sector. The program categorizes companies based on their Saudization levels and provides incentives for businesses that meet the required quotas for hiring Saudi employees.

Foreign Investors as Saudis

The regulatory change now allows foreign investors to be treated as Saudis under the Nitaqat system, providing them with certain benefits and privileges previously reserved for Saudi nationals. This policy adjustment aims to streamline the process for foreign companies operating in Saudi Arabia and create a more favorable environment for investment.

Benefits for Foreign Investors

Being treated as Saudis under Nitaqat offers foreign investors advantages such as increased flexibility in hiring practices, access to government incentives, and a more favorable standing in the labor market. This change is expected to attract more foreign businesses to Saudi Arabia and stimulate economic growth.

Compliance Requirements

To qualify for treatment as Saudis under Nitaqat, foreign investors must meet specific compliance criteria set by the Saudi government. This may include hiring quotas for Saudi employees, training programs, and other requirements aimed at promoting the employment of Saudi nationals in the private sector.

Impact on Employment

The policy change is likely to have a significant impact on employment opportunities for both Saudis and expatriates in the labor market. By encouraging the hiring of Saudi nationals and providing incentives for companies to comply with Saudization requirements, the regulatory adjustment aims to create a more balanced and inclusive workforce.

Investment Climate in Saudi Arabia

Saudi Arabia has been actively working to improve its investment climate and attract foreign investors through various reforms and initiatives. The regulatory change allowing foreign investors to be treated as Saudis under Nitaqat is part of the government's broader strategy to enhance the business environment and stimulate economic growth.

Business Expansion and Growth

Foreign investors in Saudi Arabia now have the opportunity for business expansion and growth, supported by the benefits of being treated as Saudis under Nitaqat. This policy change is expected to drive investment in key sectors and industries, contributing to job creation, innovation, and economic development in the country.

Regulatory Environment

The regulatory environment for foreign investors in Saudi Arabia is evolving, with a focus on creating a more investor-friendly landscape. Understanding the legal considerations, compliance requirements, and regulatory framework is essential for foreign businesses looking to establish or expand their presence in the country.

Industry Response

Industry stakeholders have responded positively to the regulatory change, recognizing the potential benefits for foreign investors and the overall business environment in Saudi Arabia. Foreign investors and business associations have welcomed the policy adjustment as a step towards fostering a more conducive climate for investment and growth.

Government Support

The Saudi government plays a crucial role in supporting foreign investors through various initiatives and programs. By facilitating investment processes, providing incentives, and promoting a business-friendly environment, the government aims to attract foreign capital, stimulate economic activity, and create opportunities for sustainable growth.

Future Outlook

Looking ahead, the regulatory change allowing foreign investors to be treated as Saudis under Nitaqat is expected to have a positive impact on foreign investment in Saudi Arabia. The policy adjustment is likely to attract more businesses to the country, drive economic growth, and contribute to the diversification and development of the Saudi economy.

The recent regulatory change allowing foreign investors to be treated as Saudis under Nitaqat marks a significant shift in the investment landscape in Saudi Arabia. By providing foreign investors with benefits and incentives previously reserved for Saudi nationals, the policy adjustment aims to enhance the business environment, promote economic growth, and attract more foreign investment to the country.

The sector witnessed the registration of 56 private associations, 8 private institutions, and 21 family funds in various priority development areas and several regions across the Kingdom

The National Center for the Development of the Non-Profit Sector in the Kingdom of Saudi Arabia announced the latest developments in the growth of the non-profit sector for February 2024. The sector witnessed the registration of 56 private associations, 8 private institutions, and 21 family funds in various priority development areas and several regions across the Kingdom.

The total number of registered non-profit entities in the Kingdom is now 4,656. The number of volunteers in 2024 has also reached over 113,000 in various fields, with over 4 million volunteer hours and 43,000 volunteer opportunities.

The center highlighted the continuous growth of the non-profit sector in terms of the number of non-profit entities, the number of volunteers, and the increase in the number of technical supervisory units in government agencies.

The center pointed to the progress achieved through the collaboration of all entities in the non-profit sector system and the development observed in the governance of non-profit entities, which achieved advanced levels of governance in 2023. This confirms the commitment of the sector's entities to comply with the targeted development roles.

As part of its supervisory and regulatory role, the center has issued decisions against several non-profit entities and individuals since the beginning of 2024.

These decisions included 11 warnings to civil associations, two decisions to dismiss the board of directors of a civil association, two decisions to reform the interim board of directors, the dissolution of two civil associations, and the start of their liquidation, and the referral of four civil associations to the Public Prosecution.

The center emphasizes the importance of non-profit entities' commitment to the rules and regulations, guidelines, and procedures governing the non-profit sector.

It invites all non-profit entities to communicate through customer care channels via the unified call center 19918, its website ncnp.gov.sa, and its social media accounts. The center stresses the need for integration between it and non-profit entities to contribute to the development of the non-profit sector and maximize the social and economic impact of the sector to achieve the desired national goals.

The National Center for the Development of the Non-Profit Sector aims to organize and activate the role of non-profit sector entities, expand them in development areas, and work on integrating government efforts in providing licensing services to these entities, financial and administrative supervision of the sector, and increasing coordination and support.

Source: Zawya

Saudi Arabia-based SaaS provider Salla has raised a $130 million pre-IPO investment round, led by Investcorp, along with Sanabil Investment and STV.

Founded in 2016 by Nawaf Hariri and Salman Butt, Salla enables merchants to set up their e-commerce online shops within hours.

The investment was made through Investcorp Saudi Pre-IPO Growth Fund LP, a platform targeting equity growth capital investments across a range of companies primarily based in Saudi Arabia.

Press release:

Investcorp, a leading global alternative investment firm, today announced it has led a $130 million pre-IPO investment round in Salla, a leading SaaS e-commerce enablement platform in Saudi Arabia. The investment was made alongside Sanabil Investment, a wholly owned company by Saudi Arabia’s Public Investment Fund. STV, a regional venture capital investor and an existing shareholder of Salla, also participated in the transaction.

Salla was established in 2016 in Makkah to promote the entrepreneurial ecosystem in Saudi Arabia by providing SMEs and aspiring entrepreneurs with a proprietary SaaS solution to deliver on their e-commerce ambitions. Today, Salla enables merchants to tap into a $20 billion e-commerce market expected to grow over 25% year-on-year in the coming years. Since 2020, Salla has enabled $7 billion in e-commerce sales and currently serves over 80 thousand active merchants on the platform.

Founded by Nawaf Hariri and Salman Butt, the company now has over 160 developers focused on technology and product development. It offers merchants a fully-digitalized and automated solution, allowing them to build their e-commerce website, start selling their products online within a few hours, accept online payments, and ship their products to the end user. Beyond being fully integrated with online payment solutions and logistics companies, Salla has over 400 applications on its platform, supporting its merchants throughout the lifecycle of running an online business.

Investcorp’s investment was made through Investcorp Saudi Pre-IPO Growth Fund LP, a platform targeting equity growth capital investments across a range of companies primarily based in Saudi Arabia with the potential to access the capital markets. Additionally, Robin Mansour, Principal at Investcorp, will be joining the Board of Directors of Salla.

The Fund allows investors to gain exposure to growing and market-leading businesses in strategic, high-growth sectors such as business services, transport and logistics, healthcare, and consumer.Investcorp Head of Emerging Markets Private Equity, Walid Majdalani, said, “Saudi Arabia today has over a million SMEs, having grown three times over the past five years. We believe that the Kingdom’s transformation agenda will continue to drive innovation and empower the next generation of entrepreneurs, with Salla acting as a key enabler to support the development of new companies in the e-commerce ecosystem”.

He added, “We see great interest in the potential of Saudi companies to IPO, especially as scale-ups and unicorns demonstrate local and regional success. Salla has managed to grow exponentially and deliver best-in-class margins.

We are excited to be part of their next growth phase and are keen to work with the founder and management team to explore a potential future listing in line with our track record”.

Nawaf Hariri, CEO and co-founder of Salla, added, “We are deeply grateful for the trust and investment from Investcorp and Sanabil in Salla, which reflects their confidence in our vision and our platform’s potential.

This investment propels us forward in our ongoing mission to open opportunities and empower individuals, SMEs, and enterprises to start and expand their businesses both within and beyond Saudi Arabia. We are committed to delivering innovative, customer-centric solutions that simplify and enhance the e-commerce experience for our merchants.”

Investcorp, through Investcorp Saudi Pre-IPO Growth Fund LP, previously led a pre-IPO funding round in TruKKer, a leading MENA digital freight network, with over 45,000 trucks inducted on its platform. This was followed by the fund’s investment in NourNet, one of Saudi Arabia’s leading ICT companies, with over 1,200 B2B clients operating across 20 industries.

Source: Wamda