Saudi opens its financial market, Sweden’s Klarna goes public & other news

 “Innovation is borderless - driven by curious minds and bold ideas. The Middle East is a place where vision meets action, and I’m excited to build bridges for new opportunities”

Aurore Belfrage, Chairwoman, Söderhub

Saudi Arabia expands access to public markets — foreign investors now eligible for up to 49% ownership

Saudi Arabia’s Capital Market Authority (CMA) has introduced sweeping reforms to its foreign investment framework, allowing up to 49% combined foreign ownership per listed company, capped at 10% per non-resident individual. Strategic investors may exceed this limit under specific long-term conditions.

While the Qualified Foreign Investor (QFI) regime remains in place, the new rules open the door to a wider range of foreign participants — including non-QFI institutional funds, family offices, sovereign wealth funds, and retail investors via authorized brokers. This marks a shift from a tightly gated system toward a more accessible, transparent market structure.

Dubai launches world’s first human–machine collaboration framework

Dubai has unveiled the world’s first icon-based classification system to show how humans and AI collaborate in producing research, publications, and creative content.

Developed by the Dubai Future Foundation (DFF), the Human–Machine Collaboration (HMC) Icons act like “nutrition labels for content”, not just saying AI was used, but where and how much.

The use of icons is mandatory for Dubai government & entities working with the government; it is voluntary for global researchers, publishers, and creators.

Starting January 2026, Saudi Arabia will permit non-Saudis to own property, including individuals, companies, and institutions, within designated zones across the Kingdom, following the approval of the "Law of Real Estate Ownership and Investment by Non-Saudis". This landmark law, a key part of the Kingdom's Vision 2030 economic diversification plan, aims to attract foreign investment into ambitious projects like Neom and Diriyah but excludes the holy cities of Makkah and Medina.

Saudi Arabia’s biggest funding rounds in August

While fintech and e‑commerce frequently attract large deals in Saudi, August’s data highlights a remarkable spike in proptech and logistics interest.

• Gathern spearheaded the month with a $72M Series B, valuing the Riyadh-based alternative hospitality leader at ~$266M. The platform now serves 5M+ users, spans 72K+ listings, and holds a dominant 44% share in the national market (53% in Riyadh).

• Alaan, a UAE-founded B2B spend-management fintech, closed a $48M Series A led by Peak XV Partners, marking one of the region’s largest fintech rounds.

• Salasa, the Saudi e-commerce logistics startup, raised $30M (Series B) from Artal Capital, fueling expansion across fulfillment, AI integration, and infrastructure.

..And one notable acquisition

Saudi VC firm Impact46 has closed its largest-ever investment by acquiring Dammam-based gaming studio Kammelna in a deal valued at  $53 million. The studio is known for digitizing the culturally beloved card game Baloot. The deal marks a milestone in Saudi’s gaming sector, as Kammelna boasts over 6 million downloads, 1 million monthly active users, 150,000 tournament participants, and a team of 40+ employees, positioning it among the Kingdom’s most influential gaming studios. 

Europe’s AI law is rolling out, don’t miss these deadlines

The EU AI Act, the world’s first comprehensive AI law, entered into force in June 2024, setting a global benchmark for trustworthy, transparent, and safe artificial intelligence. While full implementation kicks in by mid-2026, key provisions already apply in 2025, including bans on unacceptable use cases, transparency requirements for generative AI, and simplified compliance templates for startups.

Starting 2 August 2025, providers of general-purpose AI (GPAI) models must meet curated transparency requirements, including data disclosure via the new Code of Practice, which serves as a voluntary compliance framework. Support mechanisms for SMEs like priority, free access to regulatory sandboxes, simplified documentation, and proportionate penalties, are designed to ease compliance burdens while encouraging innovation.

Norrsken pledges €300M to AI that actually matters 

AI has placed godlike power at our fingertips. The question is what we choose to do with it. The world doesn’t need another sales agent. We need meaningful sollutions.

Europe’s Norrsken VC, Launcher, and Accelerator are committing €300M to back startups using AI for good, targeting real-world challenges in climate, health, food, education, and society.

Most AI startups focus on productivity tools, but Norrsken wants to fund the 20% that solve urgent global problems: from slashing CO₂ emissions in cement production to optimizing healthcare, agriculture, and energy systems.

Startups like Juna.ai, Quadrivia, Submer, and Evroc are already showing how AI can reshape industries with lasting impact. Norrsken’s message: move fast, but fix things that truly matter.

Klarna raised $1.37bln in US IPO, beating share price expectations

Klarna launched its initial public offering on the New York Stock Exchange yesterday, five months after postponing it amid the turmoil in markets caused by Mr Trump’s tariffs. The Swedish fintech firm is valued at $15bn, with a share price of $40, above the expected range of $35-37.

Aira raises €150M to transform heating in European homes

Stockholm-based Aira, a provider of heat pumps for residential heating, has raised €150M in a funding round led by Altor Equity Partners, Kallskär, Kinnevik, Lingotto, and Temasek.

The European heat pump market is projected to exceed €150B by 2030, and Aira is positioned to revolutionize home energy across Europe, says Peter Prem.

Article | Exits, acquisitions & aftermath: real stories behind the deals

Exits come in many forms: strategic acquisitions, financial buyouts, mergers, and occasionally, distress sales. Some are founder-led and deliberate. Others are reactive—driven by investor pressure, market shifts, or burned-out teams. Our CEO, Magdy Shehata, spoke to 5 founders about their startup exits and we’ve captured the learnings in the article on our blog.

Saudi Arabia: country brief

We’re often asked: “Why work with Saudi Arabia?”

Saudi Arabia combines the scale of emerging markets with the revenue potential of mature economies. With strong public investment, a reform-driven agenda, and growing access for foreign founders, it’s becoming a launchpad for global expansion.

Saudi Arabia is currently the 19^th largest economy in the world with a $1 trillion GDP. Foreign direct investment is surging, with $4.26B in Q3 2024 alone, and the Kingdom recently rose to 13th in Kearney’s FDI Confidence Index.

Would you like to learn more? Check out our country brief ⤵️

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