Start up support as innovative opportunity for UAE investors

MUSTHAFA ZAFEER O.V.Founder & Mg. Director

OBSTACLES FACED BY START-UPS IN THE MENA REGION

Entrepreneurs can face a mountain of legal and regulatory red tape.

Many Startups lack a clear, compelling case

Expensive workspace

Hard to find talent

Funding is scarce as there is a lack of a developed Venture capital industry

Classification: SME V Start-up

Middle-eastern investors are generally risk averse, unless it is real-estate in Dubai

LEGAL AND LOGISTICAL ROADBLOCKS

‘interesting’ ownership structures in the region

Unclear legal frameworks: Oasis report by Wamda, 82% of survey respondents did not understand governmental and legal regulation

Language barriers as lot of the departmental documents are in Arabic

Expensive legal advice

No real expertise while dealing with start ups

Entrepreneurship ecosystem

Eco-system in the MENA REGION

Total Entrepreneurial Activity vs. GDP per Capital

Fund Gap in MENA

GLOBAL PLAYERS LOOKING AT THE LOCAL MARKETS

“Things are definitely changing, since the above graph

80% of startups and SMEs are self financed

However the Time is ripe as UAE advances

A large number of established foreign VCs have seen the potential in the MENA region, especially the UAE and have made investments that address the “missing middle”

International funders of MENA startups

WHY IS THE UAE DIFFERENT?

Integrated collaboration between government entities

Economic and political stability

Ability to attract the right skill and talent

Dubai

Educational infrastructure

Easy access to MENA and the Indian Sub-continent

Working multi-cultural communities with minimal friction

Focused on building an eco-system for start-ups

Market Trends

Dubai no longer limited to Oil and Real Estate sectors

Specific markets growth:-

E-commerce market expected to reach $10 billion by 2018(it is the fastest growing market in the UAE – a result of Dubai becoming SMART)

Tech Industry – Compound Annual Growth Rate of 8.47% until 2018

Social/Digital Media Marketing set to increase by 30% at the end of this year

Tourism, Trade and related activities represent 40%

CONCLUSIONWith over 30 percent of MENA’s population between the

ages of 15 and 29. representing over 100 million youth, the MENA region is experiencing a “youth bulge,” according to a Brookings report.

UAE is in a perfect position to host enterprises that will deliver jobs and services to the largely Arab speaking youth.

As an investment opportunity, start-ups based out of the UAE have historically provided some of the highest returns of the region.