Happy Tuesday everyone!

In today’s edition we have started a new section where you would find the startup funding rounds from the past weeks. The section will be added every Tuesday.

For our main stories we have Reuters reporting that Saudi official has denied reports and rumours of unbanning alcohol starting 2026 at 600 tourist spots, Kuwait and Saudi Arabia have discovered oil in the Wara-Burgan field within the onshore Partitioned Zone, and Aliph Capital, the first woman-founded private equity firm in the Gulf, has closed its debut fund at $200 million.

But before that: For quick daily updates, follow us on Instagram, and you can watch our Smashi Business Show live every weekday from 10AM onwards (UAE time). Also, you can join our Whatsapp channel to receive updates from the business world.

Saudi Arabia Denies Alcohol Legalization Rumors Amid World Cup Buzz

🔹 What’s Happening

• Reuters reported on Monday that a Saudi official has denied recent media claims that the Kingdom will lift its decades-long ban on alcohol.

• The denial comes after multiple travel and news sites — including Travel & Tour World and New York Sun — circulated unsourced reports alleging Saudi Arabia would allow alcohol sales in 600 designated tourist zones by 2026.

• The rumors gained traction amid preparations for the 2034 FIFA World Cup, which Saudi Arabia will host.

🔹 Why It Matters

• Saudi Arabia has banned alcohol for 73 years, in line with Islamic law.

• Tourism Minister Ahmed Al-Khateeb previously told Bloomberg that the Kingdom had “decided not to provide alcohol,” noting that tourism has thrived regardless.

• Prince Khalid bin Bandar Al Saud, Saudi ambassador to the UK, recently emphasized that the World Cup will be alcohol-free — not just in stadiums, but also in hotels and public spaces.

• “We’re happy to accommodate people within the boundaries of our culture, but we don’t want to change our culture for someone else,” he told LBC in February 2025.

• The original claim about the "600 zones" appears to trace back to a May 20 blog post on an Australian wine industry site, which was then echoed by various travel aggregators. No Saudi government agency has issued any press release or official statement confirming such a move.

🔹 What’s Next

• As of now, Saudi Arabia remains a “dry” country, and senior officials are sending a clear message: alcohol legalization is not on the table, even as the country opens up to global tourism.

• The 2034 FIFA World Cup will likely mirror Qatar’s 2022 tournament, where alcohol was restricted to designated hotels and fan zones, but banned in stadiums.

• Unless or until an official Saudi announcement is made via the Saudi Press Agency or a government ministry, the reports of legal alcohol sales should be viewed as unsubstantiated speculation.

🔍 Bottom Line

The “600-zone” alcohol plan is currently an unconfirmed rumor, not a verified policy. Until Saudi authorities issue an official statement, the Kingdom remains a dry country by law, as emphasized by its senior officials.

MENA Startups: Who Got Funded?

🇦🇪 UAE

• Tarjama – $15M Series A

• VUZ – $12M

• Tradoor – $3.2M

• Gainz – Seven-figure pre-seed

🇸🇦 Saudi Arabia

• BirdEye – SAR 2.2M pre-seed

• SARsatX – $2.6M Seed

• Ziadah – Seed round (undisclosed)

🇶🇦 Qatar

• PayLater – Undisclosed round (LuLu Investments)

🇰🇼 Kuwait

• Circle – $6M Series A

🇪🇬 Egypt

• Valu – $27M

• Sylndr – $15.7M

• ElGameya – Undisclosed round

• Fatura – Acquired by MaxAB-Wasoko

🌍 Global (MENA-backed)

• Arkestro (USA) – Aramco Ventures investment

• Werover (Turkey) – Alchemist Doha investment

• Graphiant (USA) – Aramco Ventures & stc Ventures investment

Markets

Saudi Arabia and Kuwait Strike New Oil in Partitioned Zone

🔹 What’s Happening

• Saudi Arabia and Kuwait announced a new oil discovery in the Wara-Burgan field within the onshore Partitioned Zone, marking the first such find since joint operations resumed in 2020.

• The discovery, located 5 km north of the Wafra field, was revealed by the Saudi Press Agency (SPA) on Monday.

• It was made under the Wafra Joint Operations, a collaborative project between both nations to develop shared oil resources.

🔹 Why It Matters

• The Partitioned Zone, also known as the Neutral Zone, has been jointly managed by the two countries since a 2019 agreement revived its output.

• The discovery boosts the region’s status as a reliable global energy supplier and demonstrates ongoing exploration capabilities.

• It comes at a time when Saudi oil revenues are under pressure, down 18% year-on-year in Q1 2025 due to falling oil prices and output cuts.

• The share of oil in Saudi total exports also fell to 71.8%, down from nearly 76% a year earlier, underscoring the need for sustained production and exploration efforts.

🔹 What’s Next

• The discovery may help offset revenue declines and support both countries’ energy strategies amid ongoing economic diversification efforts.

• Further assessments and development in the Wara-Burgan field are expected, potentially leading to increased output from the region.

• This could strengthen energy security and supply stability, particularly as global markets remain sensitive to geopolitical shifts and production cuts from OPEC+.

Aliph Capital Closes $200M Debut Fund, Marking Gulf's First Woman-Led Private Equity Milestone

🔹 What It’s About

• Aliph Capital, the first woman-founded private equity firm in the Gulf, has closed its debut fund at $200 million, 20% below its original target.

• The Abu Dhabi-based firm was launched by Huda Al Lawati, a seasoned investor and former partner at Gateway Partners and Abraaj Group.

• Key backers include major regional players: ADQ (Abu Dhabi), Jada (Saudi PIF’s PE fund-of-funds), and Saudi Venture Capital.

🔹 Why It Matters

• The fund closure comes during “one of the hardest” periods for global private equity, reflecting investor confidence in Aliph’s model and leadership.

• The firm targets mid-market Gulf-based companies in sectors like infrastructure, healthcare, education, and consumer goods — all aligned with the region’s diversification drive.

• Aliph is pioneering a woman-led investment strategy in a male-dominated space, signaling broader inclusion and innovation in MENA finance.

🔹 What’s Next

• Aliph Fund I plans to invest $15M–$40M per deal, offering growth capital and driving digital transformationin portfolio companies.

• It has already invested in:

  • The Petshop (UAE): Expanded from 5 to 12 stores, launched vet services, and executed a digital overhaul amid a rise in pet ownership across the Gulf.

  • Sanipex Group (UAE): Acquired a 25% stake to help the luxury fittings supplier scale and prepare for succession and acquisitions amid booming real estate demand.

• The firm expects to make two additional investments in 2025, with a continued focus on scaling operations and unlocking value through tech and operational upgrades.

🔍From Smashi Business’ Desk

• Is Arabic-speaking talent being overlooked in the UAE?

• Saudi founder Yara AlNamlah’s SoMatchME has teamed up with Jimmy Choo.

🔍In other news…

• Oman awards $600m contracts for tourism projects.

• Plans ready for Egypt-Saudi Arabia bridge project.

• Kingdom Holding Shareholders Approve $276.6M In Cash Dividend For 2024.

• Syria to overhaul financial system after sanctions relief, says central bank chief: The National reports

Latest from the Smashi Business Studio

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