Egypt based EXITS MENA, a leading fintech advisory and arrangement firm for startups and SMEs in the MENA region, has announced a new strategic partnership project in the Kingdom of Saudi Arabia. This collaboration aims to bolster the company’s commitment to supporting entrepreneurs and startups in the Kingdom.
The initiative is supported by a group of prominent Saudi investors, led by Ammar Ahmed Shata, founder of Ghutra Ventures, who will also serve as the non-executive chairman of the new joint venture.
Milestone for EXITS MENA
This strategic move marks a significant milestone in EXITS MENA’s journey, reinforcing its dedication to addressing gaps in the entrepreneurship ecosystem across the MENA region. Through its presence in Saudi Arabia, EXITS MENA aims to leverage the Kingdom’s dynamic market environment to foster growth and drive innovation among startups and SMEs.
Aligning with Vision 2030
Saudi Arabia’s Vision 2030 emphasizes diversifying the economy and supporting the technology and SME sectors. The government aims to increase the SME sector’s contribution to the GDP from 20% to 35% by 2030, presenting substantial opportunities in the Kingdom. This partnership positions EXITS MENA at the forefront of this economic transformation, offering essential support to companies seeking growth and investment through management consulting services and securing necessary financing.
Comprehensive Services for Growth and Investment
EXITS MENA specializes in providing a comprehensive suite of services tailored to the unique needs of startups and SMEs. These services include financing, investment readiness, and strategic consulting to prepare companies for growth opportunities, facilitate access to investors, and M&A opportunities. By combining these offerings with innovative consulting solutions, EXITS MENA provides a streamlined and efficient deal-making process. The company has successfully closed nine deals over the past year and a half, with a strong portfolio of over 40 consulting contracts worth approximately $180 million.
Promoting Innovation
Ammar Ahmed Shata expressed his enthusiasm about the partnership: “This partnership is not just an investment but a commitment to foster innovation and support the growth of startups and SMEs in the region. Together, we will create a dynamic ecosystem that enables companies to reach their full potential.”
A Unified Vision
The founders of EXITS MENA, Mohamed Abou El Naga Nagaty, Ahla El Sabban, and Ayman El Tanbouly, emphasized the importance of this expansion: “Our expansion into Saudi Arabia represents a milestone in our journey to be the main driver of investment and growth in the MENA startup ecosystem. With the support of Ammar and the expertise of investors in the sector, we are confident in our ability to fill gaps in the startup ecosystem and drive significant growth and investment in the Kingdom.”
Supporting Startups
“This expansion will allow us to provide unprecedented support to startups and SMEs, enabling them to navigate market complexities and achieve their business goals. Additionally, we recognize the critical importance of secondary equity sales in providing liquidity to founders and early investors. By facilitating these transactions, we help startups and SMEs move toward successful exits, ensuring sustainable growth and rewarding outcomes for all stakeholders involved,” they added.
Promising Market Opportunities in Saudi Arabia
The Saudi Arabian market offers unparalleled opportunities in mergers and acquisitions (M&A) and fundraising, driven by the rapid expansion of the SME sector and the Vision 2030 initiative. These ambitious goals translate into an inflow of over $200 billion into the economy, underscoring the urgent need for adequate investment services to support this growth.
Government initiatives, such as the establishment of the General Authority for Small and Medium Enterprises (Monsha’at) and the launch of the Saudi Venture Capital Company (SVC) with a $1.07 billion fund, are driving demand for specialized consulting services. Saudi Arabia’s technology ecosystem is rapidly evolving, with significant government investment in digital infrastructure and innovation hubs, such as the $500 billion NEOM megacity project and numerous technology-focused accelerators and incubators.
FinTech Lab and Regulatory Support
Since the establishment of the FinTech Lab in 2018, the Capital Market Authority (CMA) has been at the forefront of supporting the advancement of fintech. Through the Saudi FinTech initiative, the CMA is creating a thriving ecosystem by improving infrastructure and providing robust support to fintech entrepreneurs. The FinTech Lab offers a regulated, regulatory testing environment where innovative fintech products and services can be developed and tested within specific guidelines, timeframes, and regulatory standards, under the close supervision of the CMA. This initiative ensures that Saudi Arabia remains at the forefront of fintech in the capital market.
Looking Ahead
The establishment of EXITS MENA in Saudi Arabia allows it to benefit from the dynamics of the Saudi market. By providing advisory and regulatory services tailored to the specific needs of startups and SMEs, EXITS MENA is set to become a key player in the Kingdom’s economic transformation, driving significant and innovative growth in the region. Once the new joint venture is established, EXITS MENA will apply for the necessary CMA license before commencing its commercial activities.
EXITS MENA’s Vision
EXITS MENA’s vision is to be the leading driver of investment and growth in the MENA entrepreneurship ecosystem, enabling startups and SMEs to reach their full potential and enhance their access to capital. The company aims to provide tailored technical consulting and solutions to facilitate the business deal cycle through innovative technology automation solutions. EXITS MENA’s mission is to support companies at every stage of their growth journey, from seed funding to successful exits.
