Riyadh-listed Al Moammar Information Systems Company (MIS) and Saudi Fransi Capital have signed an initial pact to establish a venture capital fund, to invest in early-stage technology start-ups in Saudi Arabia as the kingdom diversifies its economy away from oil.
The initial required size of the fund is expected to reach 150 million Saudi riyals ($40m), focusing on areas of the tech sector such as software, digital services, systems, security, consumer services, healthcare technology, and financial technology, MIS said in statement to the Tadawul stock exchange on Wednesday.
"The fund will target investments in concepts and ideas that promise significant technological innovation, whether it is the strength of its transformer in traditional industries or meets the new requirements and needs of the digital economy," MIS said.
The Arab world's largest economy is in the midst of a major diversification programme, aimed at reducing its reliance on oil revenue. One priority sector is technology, with Riyadh encouraging start-ups and attracting investments from both local and foreign funds.
Saudi Arabia aims to increase the contribution of small and medium-sized enterprises to its gross domestic product to 35 per cent by 2030, from 21 per cent currently, as part of its Vision 2030 economic diversification plan. Last year, the Ministry of Investment launched the National Investment Strategy to unlock the investment potential on offer in the kingdom for both domestic and international investors.
Venture capital funding to Mena start-ups has surged to $2.6 billion in 2021, data platform Magnitt reported. The region’s most active markets – the UAE, Saudi Arabia and Egypt – each had a deal worth more than $100m.
MIS aims to set up, either as an internal division of the company or as a separate subsidiary, a business incubator, accelerator and innovation lab, known as MIS Lab. This will enable it to screen, identify and develop technology start-ups focused on "disruptive [regenerative] and innovative technologies", it said.
MIS Lab will develop and leverage technology start-ups in-house from MIS, as well as provide a platform to encourage independent entrepreneurs from across Saudi Arabia and the surrounding region, the company said. It will be appointed as the fund's exclusive investment adviser and innovation partner, with a mandate to advise on the acquisition of stakes in companies that align with the fund’s investment objectives.
The fund is expected to launch by the beginning of the third quarter, the bourse filing showed.
Women & Power: A Manifesto
Mary Beard
Profile Books and London Review of Books
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
11 cabbie-recommended restaurants and dishes to try in Abu Dhabi
Iqbal Restaurant behind Wendy’s on Hamdan Street for the chicken karahi (Dh14)
Pathemari in Navy Gate for prawn biryani (from Dh12 to Dh35)
Abu Al Nasar near Abu Dhabi Mall, for biryani (from Dh12 to Dh20)
Bonna Annee at Navy Gate for Ethiopian food (the Bonna Annee special costs Dh42 and comes with a mix of six house stews – key wet, minchet abesh, kekel, meser be sega, tibs fir fir and shiro).
Al Habasha in Tanker Mai for Ethiopian food (tibs, a hearty stew with meat, is a popular dish; here it costs Dh36.75 for lamb and beef versions)
Himalayan Restaurant in Mussaffa for Nepalese (the momos and chowmein noodles are best-selling items, and go for between Dh14 and Dh20)
Makalu in Mussaffa for Nepalese (get the chicken curry or chicken fry for Dh11)
Al Shaheen Cafeteria near Guardian Towers for a quick morning bite, especially the egg sandwich in paratha (Dh3.50)
Pinky Food Restaurant in Tanker Mai for tilapia
Tasty Zone for Nepalese-style noodles (Dh15)
Ibrahimi for Pakistani food (a quarter chicken tikka with roti costs Dh16)
The specs
Engine: 8.0-litre, quad-turbo 16-cylinder
Transmission: 7-speed auto
0-100kmh 2.3 seconds
0-200kmh 5.5 seconds
0-300kmh 11.6 seconds
Power: 1500hp
Torque: 1600Nm
Price: Dh13,400,000
On sale: now
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
