EXITS MENA, a leading fintech consultancy specializing in arrangements for startups and small to medium-sized enterprises (SMEs) in the Middle East and North Africa, has announced the launch of a new strategic partnership in Saudi Arabia. This move underscores the company’s dedication to bolstering the entrepreneurial ecosystem and supporting emerging businesses within the Kingdom.
The initiative is backed by prominent Saudi investors, including Ammar Ahmed Shata, founder of Ghutra Ventures, who will also serve as the non-executive chairman of the new joint venture. This development marks a significant milestone for EXITS MENA, reinforcing its commitment to bridging entrepreneurial gaps across the MENA region. With 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.
Saudi Vision 2030 underscores the government’s pledge to diversify its economy and support the tech sector and SMEs. The government’s goal is to increase the SME sector’s GDP contribution from 20% to 35% by 2030, highlighting the vast opportunities available within the Kingdom. This partnership positions EXITS MENA at the forefront of this economic shift, offering management consulting and essential financing arrangements to support growing companies.
Comprehensive Services for Growth and Investment
EXITS MENA offers a wide array of tailor-made services to meet the unique needs of startups and SMEs. These services include financing arrangements, investment readiness enhancement, and strategic consulting. By preparing companies for growth opportunities, facilitating access to investors, and paving the way for mergers and acquisitions, EXITS MENA combines these offerings with innovative consulting solutions to streamline and optimize deal-making processes. The company has successfully closed nine transactions in the past eighteen months, with a robust portfolio of over 40 advisory contracts valued at an approximate total of $180 million.
Ammar Ahmed Shata expressed his enthusiasm: “I am delighted to be a part of EXITS MENA’s journey and to bring its expertise to the vibrant market of Saudi Arabia. This partnership is more than an investment; it’s a commitment to enhancing innovation and supporting the growth of startups and SMEs in the region. Together, we will create a dynamic ecosystem that enables companies to realize their full potential.”
The founders of EXITS MENA, Mohamed Aboulnaga Najati, Ahla El Sabban, and Ayman El Tanbouli, collectively emphasized the significance of this expansion: “Our growth into Saudi Arabia is a defining moment in our quest to be the main driver of investment and growth in the MENA region’s entrepreneurial ecosystem. With Mr. Shata’s support, the sector expertise of the investors, and the establishment of this joint venture, we are fully confident in our ability to fill the ecosystem gaps and foster significant growth and investment in the Kingdom.”
They added: “This expansion will enable us to offer unprecedented support to startups and SMEs, empowering them to navigate market complexities and achieve their business goals. Furthermore, we recognize the critical importance of secondary equity sales in providing liquidity for founders and early investors. By facilitating these transactions, we help startups and SMEs move towards successful exits, ensuring sustainable growth and rewarding outcomes for all stakeholders involved.”
Market Opportunities in Saudi Arabia
The Saudi market presents unparalleled opportunities in mergers and acquisitions (M&A) and fundraising, driven by rapid expansion in the SME sector and the ambitious targets of Vision 2030. These goals translate into an influx of over $200 billion into the economy, highlighting the urgent need for sufficient investment services to back this growth.
Government initiatives such as the creation 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 underscore the demand for specialized advisory services. Additionally, the Saudi tech ecosystem is rapidly evolving, with significant government investments in digital infrastructure and innovation centers, as evidenced by the $500 billion NEOM city project and various tech-focused accelerators and business incubators.
Since establishing the FinTech Lab in 2018, the Capital Market Authority (CMA) has been at the forefront of supporting fintech progress. The Saudi FinTech initiative fosters a thriving ecosystem by enhancing infrastructure and offering robust support for fintech entrepreneurs. The FinTech Lab provides a regulatory sandbox for the development and testing of innovative fintech products and services under the careful supervision of the CMA, ensuring that Saudi Arabia remains at the forefront of fintech in the capital market sector.
EXITS MENA’s establishment in Saudi Arabia allows it to fully capitalize on the Saudi market dynamics. By offering customized 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, leading to substantial and innovative growth in the region. Once the new joint venture is formally established, EXITS MENA will apply for the necessary CMA license before commencing its business activities.
