When Yazeed Al Shamsi was a student in the UK he had to hand over a full year's rent up front for his accommodation. Finding it difficult, he looked for ways to pay the rent on a monthly basis instead.
After paying annual rent for two years, he found a solution, in the form of a lease guarantor.
“The company would come in and underwrite my credit risk to the landlord for an insurance fee and they would allow me to pay my rent monthly. If I missed a payment, they would pay the landlord on my behalf,” Mr Al Shamsi says.
Inspired by this concept, Mr Al Shamsi, along with his friends Fahad Albedah, Mohammed Alkhelewy and Khalid Almunif, launched Ejari in Saudi Arabia, a rent-now-pay-later platform that provides flexible payment options for people renting a home in the kingdom.
The Riyadh-based start-up, which launched last year, rents the residential unit on each customer's behalf and re-rents it to them with a monthly payment plan.
In Saudi Arabia, tenants are required to pay the rent in one cheque annually. The new platform is expected to help those who cannot pay a year's rent in full and opt instead for monthly payments.
“When a customer approaches me with his preferred choice of the unit, I screen them. I make sure he is creditworthy and doesn't have any defaults,” says Mr Al Shamsi, co-founder and chief executive of Ejari.
“I then go to the landlord, pay the one-year rent up front and I re-rent it to the customer.”
“This model really works for everyone: for the landlord to get more customers and for the tenants to pay their rent on a monthly basis,” he says.
The company charges tenants about 15 per cent of the total rent as its fee.
It has financed up to $1 million in transactions since the platform was unveiled in the second quarter of last year.
“Since we started six months ago, we got over 1,000 applications and the value of that demand is over $10 million,” Mr Al Shamsi says.
Demand to rent homes in the Arab world’s largest economy is rising as more people move to the kingdom amid the expansion of its economy and government initiatives to encourage non-oil growth.
This year Saudi Arabia introduced a regulation requiring firms to set up a base in the kingdom or risk losing out on government contracts.
However, companies with foreign operations below 1 million Saudi riyals ($266,000) can operate in the kingdom without local headquarters.
A number of global companies have relocated their regional headquarters to Saudi Arabia, boosting demand for homes as well as office space.
The kingdom hopes to have 480 global companies with headquarters in the country by 2030 amid efforts to improve economic output.
“The growing popularity of Riyadh, as it strives to become the regional business hub, has led to an increased demand for residential units,” consultancy JLL said in a recent report.
“This surge in demand was evident in the sale prices and rents, which saw notable growth of 7 per cent and 3 per cent, respectively, in the third quarter of 2023, compared to the same period last year.”
Ejari, which raised $1 million in funding last year with support from angel investors and other backers, aims to provide more services to customers, such as furnishing an apartment or providing removals services.
It also plans to expand its rent-now-pay-later platform to include the commercial, retail and industrial sectors.
It is also considering future regional expansion, but is currently focusing on Saudi Arabia as it is a “behemoth of a market”, with several opportunities for growth, Mr Al Shamsi says.
“Because of the inflow of people, there's much more demand than supply that's causing prices to go up.”
Government support for start-ups is “second to none on all levels”, he says.
The kingdom’s National Technology Development Programme supports the “entire lifetime of a start-up from ideation until being a unicorn”.
“They have 16 or 17 initiatives … when we started, they gave us a grant of $40,000 to go build our product, to go test the market with our products and then they provided us with free office space as well three advisers: legal advisers, technical advisers, financial advisers, whose only job is to help you and your start-up get off the ground,” Mr Al Shamsi says.
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The initiative is also supporting founders with a salary of $3,000 to $4,000 per month.
The start-up ecosystem in the kingdom has continued to grow.
Saudi Arabia has become the top market for venture capital funding in the Middle East and North Africa for the first time, attracting more than $1.38 billion of investment in 2023, a new report has shown.
The kingdom recorded a billion-dollar figure for the second consecutive year, as venture capital investments surged by a third year-on-year, according to start-up platform Magnitt in its Mena Venture Investment Summary for 2023.
“Even banks are coming up with their VC arms to support start-ups … this is a huge shift because banks usually finance traditional industries,” Mr Al Shamsi says.
Q&A with Yazeed Al Shamsi, co-founder and chief executive of Ejari
How did you start your journey?
Ejari is my second start-up, I previously co-founded a venture that focused on algorithmic trading in Saudi Arabia but it failed to take off. I think the important thing is having or being mission-led. In the case of that venture, there was no mission other than to make as much money as possible. With Ejari, it's about solving an actual problem that myself and co-founders faced time and time again, but also a wider problem faced by the majority of renters in Saudi Arabia. Whichever venture I’d decide to start, I’d need to have a lot of passion for what I’d be doing and be a mission-led organisation.
What new skills have you learnt in the process of starting Ejari?
Resilience, perseverance and determination are the first that come to mind. We've already pivoted our business model six or seven times, which was not an easy thing to do – running with a certain model for a while and then realising that for a range of reasons it wouldn't work.
Experimentation is probably one of the most important things we’ve learnt: trying things and seeing what works and what doesn’t, getting feedback from customers and those in the market. People are willing to go to lengths in explaining their pain points, and that feedback is valuable in architecting your product and customer journey.
Who is your role model?
It is Crown Prince Mohammed bin Salman. The reason goes beyond the reforms that we have all witnessed in Saudi Arabia. He transcends politics – the modernisation, economic reforms and initiatives promoting social changes. [His] approach is one of enablement and potential realisation.
Where do you see yourself in 10 years?
A catalyst for positive change in people's lives. Wherever I am or whatever I'd be doing, there has to be an end goal of helping people. That's why we started Ejari, because an actual problem exists: people are genuinely struggling to pay their rent.
I'd like myself and my co-founders to create a ripple effect, empowering entrepreneurs, small businesses, and individuals to pursue their dreams and ventures. As a founder, the vision transcends profit. In a decade, I hope to look back and see a legacy built not only on financial success but on the tangible difference we've made in people's lives by creating value.
What is your advice for aspiring entrepreneurs?
If you’re going to try, go all the way. Otherwise don’t even start, because there are no shortcuts. You should just go for it and put the best plan you have into practice; it’s not going to be perfect and it will change along the way. Starting a company is quite glamourised but what most people don’t understand is how hard it is. We only hear about the successful ones.
They should stick in there, try their best, never quit and whenever they feel like they can't do it anymore, remember why they started. And when you have one of those days (as we all do), get a good night's sleep and [go] back at it in the morning. And they have to, no matter the circumstances, stay positive and resilient, and position themselves in a supportive environment, not only within the workplace but also with friends and family.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Real Madrid 2
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Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Bareilly Ki Barfi
Directed by: Ashwiny Iyer Tiwari
Starring: Kriti Sanon, Ayushmann Khurrana, Rajkummar Rao
Three and a half stars
Killing of Qassem Suleimani
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The biog
From: Ras Al Khaimah
Age: 50
Profession: Electronic engineer, worked with Etisalat for the past 20 years
Hobbies: 'Anything that involves exploration, hunting, fishing, mountaineering, the sea, hiking, scuba diving, and adventure sports'
Favourite quote: 'Life is so simple, enjoy it'
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
The years Ramadan fell in May
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