Tech startups in the Middle East, particularly in the UAE and Saudi Arabia, are facing growing competition as international founders flood the region, reshaping the startup landscape. With Dubai as a key magnet for global tech talent and Abu Dhabi emerging as a fast-growing startup hub, the pressure is mounting for founders to prove their worth in an increasingly selective investment environment.
The rapid growth of Saudi Arabia’s startup ecosystem, fueled by Vision 2030 and government initiatives, further intensifies competition. Rashit Makhat, Director and co-founder of Scalo Technologies, emphasizes that entrepreneurs must go beyond a good idea and demonstrate strong business models, resilience, adaptability, and a deep understanding of their market to succeed.
Makhat highlights that today’s investors are cautious, prioritizing startups with proven track records, scalable business models, and clear paths to profitability. He cites regional successes like eyewa, the Middle East’s largest online eyewear retailer, as an example of the level of maturity investors now expect. eyewa’s $100 million Series C funding round is a testament to the expectations around business maturity and scalability.
Makhat offers five key principles for entrepreneurs to thrive in the competitive tech landscape:
- Motivation: Have a strong reason for starting your company.
- Intuition: Trust your gut when making tough decisions.
- Courage: Be brave and take calculated risks.
- Foresight: Stay updated on trends and technology.
- Inspiration: Seek role models and mentors for guidance.
These principles, combined with solid business strategies and market understanding, are crucial for navigating the competitive startup environment in the Middle East.
