Simplex raises $13M Series A to build CNC machine factory in Riyadh
What's the deal? Simplex, an Egypt-based startup that manufactures CNC machines, has raised $13M in a Series A round. The company plans to use the funding to build a 20,000m² factory in Riyadh dedicated to producing advanced CNC machines.
Simplex signed a memorandum of understanding with Saudi Arabia's National Industrial Development Centre to establish it as its first factory in the Kingdom. The signing ceremony was attended by Ahmed ShaabanDealroom has a profile for this one. Try Dealroom →, chairman of Simplex, and Khalil ibn Salamah, Saudi Arabia's vice minister of industry and mineral resources.
Founded in 2013 by Ahmed Shaaban, Mohamed MansourDealroom has a profile for this one. Try Dealroom →, and Amr Mahmoud, Simplex provides industrial solutions to manufacturers across more than 50 sectors in 21 countries.
Why now? The deal aligns with Saudi Arabia's Vision 2030, which aims to diversify the national economy away from oil and localise advanced industries. The Kingdom has been actively courting manufacturers to set up operations on its soil, and CNC machines — used widely across manufacturing and process industries — fit squarely into that strategy.
"We see Saudi Arabia as a promising market and a strategic hub for exporting our products to the region and the world," said Mohamed Mansour, co-founder and chief commercial officer at Simplex.
What could go wrong? Simplex has not yet finalised its target production capacity, which introduces uncertainty about how quickly it can scale. Building a large factory from scratch in a new market carries execution risk — from construction delays to hiring challenges in a competitive labour market.
The company also faces competition from established global CNC manufacturers with deeper pockets and more mature supply chains.
The signal: Saudi Arabia's push to become a regional industrial hub is creating real opportunities for startups from neighbouring countries. Egypt-born companies in particular are finding the Kingdom a natural launchpad for broader international expansion.
The deal also reflects a broader trend: Gulf states are increasingly backing hardware and industrial startups, not just software. As Vision 2030 moves from planning to execution, expect more manufacturing-focused rounds like this one.
Read more: StartupRise
