MANUFACTURING-
Modern Mills will set up a SAR 150 mn animal feed plant at its Al Jumum facility in the Western Region after its board approved the move, it said in a disclosure to Tadawul. The plant is expected to come online in 4Q 2024 and will have a capacity of 422k tons a year. The project will be funded by shariah-compliant loans and other banking facilities, in addition to liquid funds available at the company.
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M&A WATCH-
Gulf Union Al Ahlia Cooperative Ins. (GUAI) makes progress on merger with Gulf General Cooperative Ins. (GGI), signing a binding merger agreement which will see GGI transfer all its shares, liabilities and assets to GUAI; in exchange, GUAI will issue 22.8 mn shares at a nominal value of SAR 10 apiece to GGI’s shareholders, according to two separate statements (here (pdf) and here (pdf)).
Background: The two companies signed a non-binding MoU in August to explore a merger through a share-swap agreement where Gulf Union Al Ahlia would acquire 100% of Gulf General. Both companies received a non-objection decision from the General Authority for Competition for their potential merger last month.
STARTUP WATCH-
#1- UAE-based VC Iliad Partners is banking on Saudi Arabia’s startup scene, with the launch of a USD 50 mn MENA-focused fund, according to a press release. Tech Ventures Fund I will target early-stage B2B tech startups across fintech, logistics, and proptech, primarily in the Kingdom and the UAE. Some 10% of the fund will be earmarked for investments in Europe.
Saudi backing: The fund is backed by the PIF’s Jada Fund of Funds, the Olayan Family, Masarrah Investment Company, MLM Investments, the Constantakopoulos Family of Greece, and other family offices in the GCC and Europe.
The fund’s debut investments include Saudi logistics and delivery management platform OTO, homegrown cloud-based procurement solution for enterprises Penny, and Emirati fintech Qashio.
#2- UAE’s Wafeq wants to expand across the Kingdom: Dubai-based online accounting platform Wafeq closed a USD 7.5 mn series A round, which will be used to back its expansion plans in Saudi Arabia and the UAE, according to a press release. The round was led by 9900 Capital, with backing from Raed Ventures, Wamda Capital, and former Xero CEO Gary Turner.
Wafeq is no stranger to the Saudi market: With some 90% of its business originating from the Kingdom, Wafeq issues over 2 mn invoices a month worth USD 400 mn. Its software integrates with major Saudi banks like Al Rajhi Bank and Saudi Awwal Bank.
TRADE-
Customs clearance between the Kingdom and Egypt just got a major speed boost after both sides agreed to reduce clearance time from three days to 3-4 hours, Egypt’s Deputy Finance Minister for Taxes Sherif El Kilani told Asharq Business. Earlier this month, the two sides inked a mutual recognition agreement for Authorized Economic Operator (AEO) program to enhance economic cooperation, streamline customs procedures, reduce costs, and boost trade.
LOGISTICS-
Mawani adds new shipping service to Jeddah Islamic Port: The Saudi Ports Authority (Mawani) added Global Feeder Shipping’s JRS shipping services to Jeddah Islamic Port, it said in a statement. The new shipping service, which has an 800 standard container capacity, will link the Jeddah port to the ports of Mundra in India, Sokhna in Egypt, and Salalah in Oman.
AGRICULTURE-
Researching palm trees: The National Center for Palms and Dates signed a SAR 100 mn agreement with King Abdullah University of Science and Technology to carry out research projects for advancing palm trees farming and optimizing the processing of their yields, it said in a post on X.
ENTERTAINMENT-
Neom Media partnered with production house Hakawati Entertainment to produce up to nine feature films, with two scheduled to go into production in 1H 2025, Neom said in a statement. The partnership will also see both sides set up a “world-class production services division in Neom.”
SPORTS-
Saudi Arabia became the world’s first FIFAe World Cup featuring arcade-style football video game Rocket League champion, defeating France 4-1 in the finale, according to a post on X. The all-star Saudi team rose to the top after four days of competing against 15 other national teams.