MUSTHAFA

ZAFEER O.V.
Founder & Mg. Director

Start up support as
innovative opportunity for
UAE investors

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%

CONCLUSION
With over 30 percent of MENAs population
between the ages of 15 and 29. representing
over 100 million youth, the MENA region is
experiencing a youth bulge, according to
aBrookings 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.