The tech landscape in the UAE and the wider MENA region is evolving at a rapid pace, offering both opportunities and challenges for startups. In this dynamic environment, building a business that not only survives but thrives on a global scale requires more than just a groundbreaking idea.
Rashit Makhat, Director and co-founder of Scalo Technologies, a UAE-based tech venture company, believes the region is becoming a vibrant hub for tech startups. He sees the Emirates, Saudi Arabia, and Qatar as showing strong resilience in 2024, even amidst tough global trends. Saudi Arabia, in particular, maintained its position as the most funded country in the MENA region for the second consecutive year, with MAGNiTT research reporting that startups raised $750 million in Venture Capital, leading to a record 178 deals.
The UAE also experienced growth, recording a 10% increase in total investors and a 9% rise in total deals. Qatar saw a 24% year-on-year increase in transactions, largely driven by early-stage funding activity, with rounds between $1 million and $5 million rising by 19%.
Despite this growth, Makhat, a seasoned entrepreneur and tech investor, emphasizes that scaling a startup successfully in such a competitive landscape requires a focused, strategic approach. He outlines six key steps that founders can follow to achieve global success:
- Understand Your Market Deeply: It’s not enough to know your customers; you need to understand their habits, values, and spending limits. This insight helps craft messages that resonate with your audience, keeping them engaged and loyal.
- Focus on Niche Markets and Differentiation: As the regional ecosystem matures, competition for market share and investment intensifies. Founders should concentrate on niche markets or unique customer segments. Tailoring products to meet specific needs can help build a loyal customer base and position startups for global recognition.
- Build a Strong, Adaptive Team: Talent is critical for growth. However, global data shows 75% of tech companies struggle to find the right people. Startups can overcome this challenge by fostering a culture of innovation, offering equity or stock options, and investing in employee development. This approach not only attracts top talent but also retains them, ensuring a skilled workforce to navigate challenges.
- Stay Agile and Invest in Technology: Technology evolves rapidly, and staying ahead of trends is essential. Startups should invest in tools and systems that provide a competitive edge, attracting both investors and customers. Limited resources can be a barrier, but partnerships with accelerators, research institutions, and tech communities can help. Encouraging a culture of continuous learning keeps teams adaptable.
- Plan for the Unexpected: The regional market is influenced by political, economic, and social factors, requiring flexibility. Startups should monitor trends and consumer demands to refine strategies. Having a contingency plan for economic downturns or regulatory changes ensures resilience and positions startups for long-term success.
- Set Small Goals: Breaking down a large vision into smaller, achievable goals keeps startups focused and motivated. Tracking progress regularly and celebrating milestones will help maintain momentum and direction.
Makhat concludes with an important piece of advice: “Overall, be passionate about your mission. Love what you do. This passion shows in your work, attracting others to support and believe in your business.”
