Rashit Makhat, Director and co-founder, Scalo Technologies, the tech venture company based in Dubai.
The startup ecosystem in the MENA region continues to evolve, with growing numbers of overseas arrivals intensifying competition in the market, particularly in the UAE and Saudi Arabia. It means founders must take their thinking to a new level in order to stand out.
The incentives are clear and obvious. In a report highlighting why 2025 will be an important year for MENA as an emerging venture market, MAGNiTT said it expects AI funding to double due to increased investor attention to innovative AI startups.
Dubai has solidified its position as a hub for international tech startups, attracting founders and investors from Europe, while Abu Dhabi emerged last year as the fastest-growing emerging ecosystem in the region, marking a 28% in ecosystem value.
Saudi Arabia’s growth as a startup magnet is driven by government initiatives like Vision 2030, which are fostering a supportive environment for both regional and global companies. As the country transitions to a knowledge-based economy, tech startups have a key role to play.
All this places an even bigger emphasis on local founders to develop a comprehensive understanding of the maturing market, and demonstrate value and innovation.
They can take heart from the $100 million raised in a Series C funding round a few months ago by eyewa, the Middle East’s largest online eyewear retailer, with headquarters in Riyadh and Dubai.
The capital will play a pivotal role in the company plans to invest in R&D and talent acquisition, and open at least 100 new stores in 2025.
It highlights how selective investors are becoming. Only startups with a clear value proposition, a solid business model, and a strong potential for growth, are able to attract significant funding.
Having a great idea is no longer enough. Entrepreneurs need a clear plan to scale their business. They must demonstrate a deep understanding of their market, and that their product or service can not only survive, but thrive, in a rapidly changing economic landscape.
Today’s Investors are more cautious, prioritizing startups with proven track records, scalable business models, and clear paths to profitability.
Tech entrepreneurs need to focus on building a strong brand, creating a loyal customer base, and demonstrating their ability to adapt to market changes.
In addition to creating a strong product and business model, startups must also be prepared to showcase their resilience. The general decline in funding this year is a reminder of how quickly market conditions can change.
Entrepreneurs need to be flexible, ready to pivot when necessary, and be prepared to weather economic downturns. Building a startup is a long-term journey, and those who can adapt to challenges and stay focused on their goals are more likely to succeed.
An influx of international players has increased the competitive nature of the MENA startup scene. The UAE ’s emergence as a hub for innovation is built on government initiatives like business accelerators and funding to attracting entrepreneurs from around the world.
Local entrepreneurs are no longer competing only with their regional peers, but also with startups from more established markets like Europe and the U.S.
This places an even bigger emphasis on them to develop a comprehensive understanding of the market, and be able to position their company as a leader in that space.
Customer experience is another critical area. Startups that prioritize the needs of their customers and work to build strong relationships with them are more likely to gain loyalty and positive word of mouth, which can be invaluable in attracting new customers and investors.
Continuous learning is crucial in a fast-changing world. Entrepreneurs need to keep up with the latest trends, technologies, and strategies. By attending industry events, reading industry news and taking online courses, founders can stay informed and ready to adapt to market shifts.
Building a strong team is just as important. Hiring talented people who believe in the company’s goals can help overcome challenges and achieve success.
Patience and perseverance are essential traits for any founder. The funding process shows that success takes time. Entrepreneurs need to be ready for setbacks and keep pushing toward their long-term goals.
While the path ahead may be difficult, those who are able to navigate these challenges with resilience and vision will have the best chance to thrive.
A clear view of where you want your company to go is essential. It’s not just about making money; it’s about creating something that will make a difference. Focus on the following:
Intuition: While data and numbers are important, sometimes you need to trust your gut. Your intuition can help you make good decisions, especially when things get tough.
Courage: The tech world is full of risks and uncertainties. You need to be brave and willing to take chances to succeed.
Motivation: Having a strong reason for starting your company can help you stay motivated,
Foresight: It’s important to think about the future and be prepared for what’s to come. This means staying up-to-date on trends and technology.
Inspiration: Building a successful company can be inspiring, but it’s also important to be inspired by others. Look for role models and mentors who can help you on your journey.
