Merak Capital, a technology-focused investment firm, has announced a significant investment of SAR 310.8 million (USD 82.8 million) in SHIFT, a Saudi-based smart mobility company. This strategic move underscores Merak Capital’s commitment to driving technological innovation in the Kingdom’s transportation and logistics sectors while contributing to the goals of Vision 2030, Saudi Arabia's long-term plan to diversify its economy.

Empowering Smart Mobility in Saudi Arabia

SHIFT, founded in 2017 and headquartered in Jeddah, has quickly risen as a leader in smart transportation solutions. The company offers a comprehensive suite of services, including car-sharing, chauffeur services, car rentals, and leasing, as well as last-mile and line-haul logistics. With a formidable fleet of over 12,000 vehicles operating across 57 cities in the Kingdom, SHIFT is revolutionizing the way people and products move. By harnessing advanced technologies, SHIFT seeks to automate mobility and logistics, improving efficiency, sustainability, and environmental impact across its operations.

Merak Capital’s investment will empower SHIFT to further accelerate its growth trajectory and expand its intelligent mobility solutions. The partnership will enable the company to innovate faster and scale its services, aligning with the nation’s vision to become a global leader in smart transportation. This funding is expected to enhance SHIFT’s ability to deliver cutting-edge mobility technologies, optimize logistics operations, and increase the overall connectivity within Saudi Arabia.

Supporting Saudi Arabia's Vision 2030 and Tourism Sector Growth

The investment by Merak Capital also aligns with Saudi Arabia’s Vision 2030, which emphasizes the modernization and diversification of key sectors, including transportation, logistics, and tourism. SHIFT’s smart mobility solutions are positioned to play a crucial role in achieving these goals by offering seamless transportation options to tourists and citizens alike. As Saudi Arabia aims to become a global hub for tourism, SHIFT’s innovative technology will enhance the travel experience for visitors, providing efficient and modern transportation options that boost the Kingdom’s appeal as a tourism destination.

By integrating advanced mobility solutions into the tourism sector, SHIFT is contributing to the growth and competitiveness of the industry. The company’s ability to scale and innovate in this space will be instrumental in helping Saudi Arabia achieve its ambitious tourism targets under Vision 2030.

A Partnership for Innovation and Sustainable Mobility

Abdullah Altamami, CEO of Merak Capital, expressed enthusiasm about the collaboration with SHIFT, highlighting the company's role in shaping the future of mobility in the Kingdom. Altamami noted that the investment reflects Merak Capital's belief in the transformative power of technology across sectors such as transportation, logistics, and tourism. He also emphasized the potential for this partnership to deliver significant value to all stakeholders, including investors, partners, and the wider Saudi economy.

Khalid Al-Sulaiman, Founder and CEO of SHIFT, echoed these sentiments, stating that the investment from Merak Capital will accelerate SHIFT’s efforts to revolutionize the mobility landscape in Saudi Arabia. Al-Sulaiman highlighted the company’s dedication to innovation and sustainability, emphasizing how the partnership with Merak Capital will allow SHIFT to expand its services and continue to develop technology that meets the evolving needs of its customers, particularly in the tourism sector.

Merak Capital's Broader Role in Saudi Arabia's Innovation Ecosystem

The investment in SHIFT is part of a broader strategy by Merak Capital to foster technological innovation in Saudi Arabia. Merak Capital has been at the forefront of several notable investments in the region, including its leadership in a SAR 112 million funding round for Jisr, a human resources platform. Additionally, the firm is managing a venture capital fund with SAR 306 million dedicated to the gaming and Esports sectors.

Beyond its investment activities, Merak Capital has garnered recognition for its efforts to drive innovation in the Middle East. The firm's journey and strategic vision have been explored in a case study by the Stanford Graduate School of Business, which highlights its role in shaping Saudi Arabia's technology landscape.

Merak Capital’s $82 million investment in SHIFT is set to drive innovation and efficiency in Saudi Arabia’s smart mobility and logistics sectors. By leveraging SHIFT’s technology-driven solutions, the partnership supports Vision 2030, enhancing transportation, tourism, and logistics. Together, they aim to create a more connected and sustainable future for the Kingdom.