start up support as innovative opportunity for uae investors
DESCRIPTION
MASS is Musthafa & Almana’s innovative effort to address the burgeoning needs of the startup community of the regions we are present in. MASS is a holistic solutions platform for entrepreneurs and small business owners that addresses their financial and operational requirements. By utilizing this platform, entrepreneurs gain access not only to Musthafa & Almana’s existing infrastructure but also to an unparalleled network of financial and operational solution providers. - PowerPoint PPT PresentationTRANSCRIPT
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.