The MENA region enjoys great enthusiasm from investors, especially for startups, which demonstrate the skills of the Arab youth and the developed infrastructures.
This is why Arab Gulf states are making great efforts to make their laws more entrepreneur-friendly and more supportive of their successes.
On the other hand, startups in the MENA made 71 agreements totaling $284 million in November 2021, an increase of 89 percent over October 2021 and a stunning 666 percent over November 2020.
Startups in the United Arab Emirates, Jordan, and Egypt have attracted the most venture capital funding, accounting for 73 percent of total deal value.
The UAE led the way with 24 deals, followed closely by Egypt and Saudi Arabia.
MENA investments in 2021
According to the platform Digital Digest, investments in MENA startups reached around $2.7 billion between January and November 2021.
Most of it went to Emirati enterprises, with a total of $617.5 million changing hands through 120 agreements.
Saudi corporations accounted for 23 percent of venture capital investments in the area.
Egypt came in third, receiving 16 percent of the assets totaling $430 million in 133 deals.
Investments in Saudi Arabia
Startup investments in Saudi Arabia climbed by 79 percent in 2021 compared to last year, and the number of deals increased by 118 percent to meet the country’s Vision 2030, which aims to diversify the economy away from oil.
While encouraging new startups in different fields, the country has also reinvigorated legislative frameworks in critical ones like financial technology.
Due to these initiatives, international investors are flocking to Saudi enterprises, and the value of investments is likely to increase in 2022.
Valuable tips
Even though startups’ market performance was significant in 2021, some small and medium enterprises in the region had difficulties growing, and some were forced to close their doors.
Thus it was that TRENDS decided to collect tips and advice from several experts to encourage startups.
Roberto Croci, Managing Director for Startups MENA
Advice: Focus on real challenges because that’s how brands and businesses can make a meaningful societal and financial difference in the world.
Quote:
“People, product, and profit determine a startup’s growth.”
“People are given top priority. So, it’s critical to make the proper judgments and recruit the right people when scaling up to avoid future problems”.
Tips:
- Design a strong product that others will appreciate.
- Listen to customers.
- Seek and follow successful entrepreneurs who can make difficult decisions and inspire teams.
Muna AbuSulayman, Saudi journalist and entrepreneur
Advice: Entrepreneurs shouldn’t be afraid of failure; they will be serial entrepreneurs until they succeed.
Quote:
“Learn with other people’s money first, which means work in a company for five to 10 years. There is a reason the most successful entrepreneurs are over 35. They spent 10-12 years of their lives working in companies, learning the systems, and figuring out how to manage teams and resolve conflict.”
Tips:
- Do your study, understand the financials of running a firm, and comprehend it.
- Gather a team and do not undertake it on your own. Collaborate with cofounders.
- Defer your entrepreneurial endeavors until you’ve gained the experience of working in a company and gained a great deal of knowledge.
Barry Greenberg, Of Counsel at DIFC Dubai
Advice: Spread education in the legal division from courts to experts to help rescue startups, not punish them for failing.
Quote:
“Focus on the benefits of a rescue culture and preserve solvency rather than punishing debt.”
Tips:
- Properly estimate costs and receivables.
- It’s good to be optimistic as a businessman and believe in your project, but entrepreneurs must make an accurate financial forecast.