Key Takeaways

• The startup environment in MENA has started to take a positive turn. 
• MENA-based startups are seeing more opportunities to expand in the global markets.
• Investopia and other government-backed initiatives are assisting. 

Entrepreneurs in MENA have seen a new wave of growth in recent years. What used to be a quiet startup stage, overlooked by global investors, has now become a hub for innovation, thanks to several fundamental shifts in the region. 

In 2023, MENA startups raised nearly $3.9 billion in funding, with most investments going to the UAE and Saudi Arabia. Ongoing government support, young tech-savvy populations, and growing venture capital investments are key driving factors behind the optimistic era. 

However, to grow further and compete globally, MENA startups must think bigger and expand beyond the region. 

The Benefits of MENA Startups Expanding Globally

Focusing only locally on the MENA region has its advantages but can also be limiting. Most of the world’s top decacorns (companies valued at over $10 billion) reached those high valuations by expanding beyond their home markets. Going global helps businesses enter more significant markets, grow revenue streams, and boost their brand influence.

 A startup based in the UAE would expand to markets in Europe, Asia, or North America. MENA’s population is about 450 million, but the global population is over 8 billion. The combined GDP of the UAE and Saudi Arabia surpasses $1.58 trillion, yet is much smaller than larger markets like the US or Europe.

For example, Careem, a UAE-based multi-services company, expanded internationally and was later acquired by Uber for $3.1 billion. Another example is Souq, an e-commerce platform based in Dubai. Amazon acquired the platform for $580 million mainly due to its regional and global potential. 

Governments in the region, especially in the UAE, support startups in their journey through policies that make international growth easier. The UAE, for example, has initiated free zones like the Dubai Multi Commodities Centre (DMCC) and Abu Dhabi Global Market (ADGM) to offer full foreign ownership and zero taxes to help startups set up in a regulation-friendly environment.

The UAE’s Mohammed bin Rashid Innovation Fund and Saudi Arabia’s Jada Fund of Funds support startups by providing access to international networks and funding. Programs like Investopia and Saudi Arabia’s Vision 2030 also serve as think tanks for scaling and networking. 

These initiatives connect startups with experts and investors globally who can help them navigate specific markets and scale more easily.

Challenges of Going Global for Startups

Expanding globally also comes with challenges. Each country has different regulations that startups need to comply with, such as the GDPR in Europe, which protects data privacy. 

Cultural differences also matter. What works in MENA might not necessarily work in Europe or Asia, and startups must adjust their products and marketing strategies to fit each market. Plus, global markets often have established competition, meaning startups must offer something unique to stand out to attract customers.  

Conclusion

Although MENA has some of the world’s richest and most active investors, startups often struggle to get funding, making expanding globally not just an option but essential for growth. 

The region has made significant progress, creating a startup culture and ecosystem. By adopting a global mindset, startups can compete internationally, unlock new opportunities, and achieve long-term growth.

Expanding globally isn’t just beneficial for startups—it’s critical for the MENA venture ecosystem. Therefore, it is time to aim higher. The future for MENA startups is global, and the time to make that move is now.