Saudi startups surge ahead with bold deals, fresh capital

RIYADH: Saudi Arabia led this week’s startup activity, with a surge of venture deals, strategic partnerships, and funding announcements across key sectors including artificial intelligence, logistics, fintech, and HR technology.

The wave of investment underscores the Kingdom’s growing prominence as a hub for innovation and its continued push to diversify its economy through technology-driven enterprises.

Saudi food delivery platform Jahez has partnered with noon to integrate their services and enhance delivery speed, convenience, and product choice across the Kingdom.

The collaboration enables users to access noon Minutes through the Jahez app, offering a broad selection of products delivered via noon’s dark store infrastructure, while Jahez’s food delivery services will also be embedded within the noon platform.

According to both companies, the integration aims to boost customer engagement, drive repeat orders, and strengthen loyalty, positioning the partnership as one of the most extensive digital commerce ecosystems in the region.

AI startup rmz.ai secures $100k pre-seed

Saudi generative AI startup rmz.ai has closed a $100,000 pre-seed funding round led by Beyond.xyz, a local virtual production studio.

Founded in 2025, rmz.ai develops intelligent tools for managing image, audio, and video workflows through a unified interface aimed at content creators.

The capital will support the development of the company’s “Creative Agents,” AI-powered assistants designed to simplify content production processes and enhance creative output quality.

Logexa raises $2m

Logistics platform Logexa has completed a $2 million pre-series A funding round led by SEEDRA Ventures, with participation from Nour Nouf Ventures and angel investors.

Established in 2021 by Hussam Sindi and Hussam Spano, the company optimizes underutilized warehousing and transport infrastructure across Saudi Arabia.

The funds will be used to expand operations, upgrade the digital platform, and launch a marketplace focused on shared logistics and storage services.

PIF and Aramco move to combine AI assets under Humain

The Public Investment Fund and Aramco have signed a non-binding term sheet to combine their AI assets under Humain, a PIF-owned entity launched in May.

Under the agreement, Aramco will acquire a significant minority stake in Humain, while PIF retains majority ownership.

The strategic collaboration includes transferring AI assets, talent, and capabilities to accelerate Humain’s growth and international reach.

Humain is focused on building full-stack AI capabilities across data centers, cloud infrastructure, advanced models — including the Arabic large language model ALLAM — and AI solutions. The deal remains subject to regulatory approvals and final agreements.

Tabby reaches $4.5bn valuation

Fintech company Tabby has completed a secondary share sale involving existing shareholders, attracting investors such as HSG and Boyu Capital.

The transaction, which did not involve the issuance of new shares or proceeds to the company, values Tabby at $4.5 billion.

The deal reflects continued investor confidence in Tabby’s growth trajectory and market positioning in the region’s buy now, pay later sector.

BRKZ secures $30m in growth debt

Saudi construction technology firm BRKZ has secured up to $30 million in growth debt from Stride Ventures to support its expansion.

Founded in 2023 by Ibrahim Manna, BRKZ provides a B2B platform for contractors and factories to access building materials and flexible financing options.

The funding will accelerate the development of AI-powered procurement tools, cloud manufacturing models, and global supplier networks. BRKZ, which completed a $17 million series A extension earlier this year, is part of the Saudi Unicorns Program.

Najeeb.ai raises pre-seed round to scale AI insurance tools

Insurtech startup Najeeb.ai has raised an undisclosed pre-seed round from regional angel investors.

Established in 2023 by Ahmed Yasmina and Hammam Homsi, the company integrates artificial intelligence with insurance services to drive transparency and operational efficiency.

Proceeds from the round will support the development of AI-powered products, deepen insurer and healthcare integrations, and prepare the company for regional market entry.

Squadio raises $3m

Human resources tech company Squadio has secured $3 million in a pre-Series A round backed by Wa’ed Ventures, 500 Sanabil MENA, and Nour Nouf Ventures, as well as SEEDRA Ventures, and NTDP.

Founded in 2019 by Khaled Senawy, the platform connects companies with global, remote-first tech talent.

The investment will be used to improve Squadio’s AI-matching engine, grow its presence in MENA, Africa, and Silicon Valley, and expand its partner network. The company previously closed its seed round with SEEDRA Ventures in 2022.

MidLyr raises $2.5m

US-based fintech MidLyr has raised $2.5 million in pre-seed funding led by Silicon Badia, with participation from Wedbush Ventures, Hustle Fund, DCG, and Story Ventures.

Founded in 2025 by Wael El-Sahhar and Ruochen Ren, MidLyr helps banks transform regulatory text into AI-driven workflows for risk, compliance, and marketing functions.

The new funds will drive product development, expand bank partnerships, and scale hiring in the US and Middle East, leveraging the region’s engineering and data science talent.

HALA Capital debuts as CMA-licensed private capital firm

HALA Capital, formerly HALA Ventures, has launched as a licensed private capital firm under the Capital Market Authority, marking its transition from venture capital to a broader asset management strategy. The firm now covers venture capital, private equity, and private credit.

Founded in 2018 by Ali Abussaud and Hussain Al-Marhoon, HALA Capital aims to support innovation, scale enterprises, and deliver long-term impact across the Saudi and regional investment landscape.

The firm emphasizes agility and ecosystem development as central to its investment approach.

Velents.ai raises $1.5m and launches Arabic AI employee

HRtech startup Velents.ai has raised $1.5 million in a round backed by angel investors, including former executives from Google and BCG.

The company also launched Agent.sa, described as the first fully Arabic-speaking AI employee for businesses in the Middle East.

Founded in 2020 by Mohamed Gaber and Abdulaziz Al-Muhaydib, Velents began in recruitment automation and now serves clients in both Egypt and Saudi Arabia.

The capital will support expansion of the company’s AI infrastructure and adoption ahead of a larger funding round planned for early 2026.

KarmSolar enters Cyprus with $5.78m solar project

Egypt-based renewable energy provider KarmSolar has launched its first international expansion through the establishment of KarmCyprus, marking its entry into the Cypriot solar energy market.

The move includes the development of a 7.6-megawatt solar PV plant in Monagroulli, southern Cyprus, backed by €5 million ($5.78 million) in project financing from Eurobank. Operations are slated to commence by September 2026.

Founded in 2011 by Ahmed Zahran, Xavier Auclair, Yumna Madi, and Randa Fahmy, KarmSolar supplies renewable energy across multiple sectors in Egypt.

The company invested €2 million to establish KarmCyprus and raised an additional €8 million from Egyptian and international investors.

The expansion follows KarmSolar’s vertically integrated model encompassing power generation, distribution, storage, and e-mobility, positioning the firm as a credible player in the Mediterranean clean energy sector.

RIYADH: Saudi Arabia’s non-oil economy accelerated in October, with the Purchasing Managers’ Index climbing to 60.2, its second-highest level in more than a decade, signaling strong business growth momentum.

The latest survey by Riyad Bank and S&P Global showed a sharp improvement in operating conditions across the Kingdom’s private sector, underpinned by solid demand, rising employment, and robust output growth.

The October reading, up from 57.8 in September, highlights the sustained momentum of the non-oil economy as Vision 2030 reforms continue to drive diversification away from crude revenues.

Speaking at the Future Investment Initiative in October, Saudi Arabia’s Minister of Economy and Planning Faisal Alibrahim said the Kingdom’s gross domestic product is expected to expand by 5.1 percent in 2025, supported by continued growth in non-oil activities.

Commenting on the latest report, Naif Al-Ghaith, chief economist at Riyad Bank, said: “Saudi Arabia’s non-oil private sector recorded a solid improvement in business conditions in October, with the PMI rising to 60.2, marking one of the strongest readings in over a decade.”

He added: “The acceleration was driven by broad-based gains in output, new orders, and employment, reflecting sustained demand momentum and continued strength in the non-oil economy.”

Al-Ghaith noted that the latest survey results also indicate a strong start to the final quarter of the year, supported by both domestic and external demand.

According to the report, the pace of growth in new orders received by non-oil companies accelerated for the third consecutive month in October, with 48 percent of surveyed firms reporting higher sales.

Participating companies attributed the sales growth to improving economic conditions, a growing client base, and increased foreign investment.

Output and employment also expanded sharply during the month, with job creation rising at the fastest pace in nearly 16 years.

Al-Ghaith said the persistent rise in new export orders highlights the growing competitiveness of Saudi firms and the progress achieved under ongoing diversification initiatives.

“The rise in demand encouraged firms to expand production and workforce capacity at the fastest rate since 2009, as businesses expanded capacity to meet new workloads. Purchasing activity and inventories also increased, while suppliers’ delivery times continued to improve, reflecting efficient coordination and resilient supply chains,” he added.

October data indicated a sharp rise in input costs for non-oil firms, driven mainly by wage increases from salary revisions and bonuses.

On the outlook, companies remained optimistic, citing strong market demand, ongoing project work, and government investment initiatives.

“Optimism is underpinned by solid domestic demand and the momentum of ongoing projects. Although some concerns persist around costs and competition, sentiment overall remains strongly positive, reflecting confidence in the economy’s continued expansion and the strength of the non-oil private sector,” concluded Al-Ghaith.

Saudi startups surge ahead with bold deals, fresh capital