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Total Saudi non-oil exports to GCC reached $1.01bln in October
Non-oil exports from Saudi Arabia to member countries of the Arabian Gulf Cooperation Council (GCC) increased by SAR 133 million ($35.5 million) or 5.2% year-on-year (YoY) during October 2019.
Saudi exports of national origin to GCC countries recorded SAR 2.7 billion ($721 million) last October, compared with SAR 2.57 billion ($686 million) in October 2018, according to a Mubasher survey, based on the data of the Saudi General Authority for Statistics (GaStat).
Saudi non-oil re-exported goods to GCC member countries decreased by 18.2% to SAR 1.12 billion ($298 million). Accordingly, total non-oil exports reached SAR 3.82 billion in October.
Meanwhile, Saudi imports from GCC countries decreased to SAR 3.9 billion ($1.04 billion), with a trade balance deficit of SAR 83 million ($22.13 million).
source: zawya
The banking sector’s exposure to real estate has been contained at 17% of total credit to the private sector as of mid-year 2019
Like other real estate markets in the Gulf Cooperation Council (GCC), Saudi Arabia’s property sector has been under a fair amount of pressure with falling property prices and rents in recent years.
Hydrocarbon production quotas, subdued global oil and gas prices and geopolitical tensions have all hindered the country’s economic growth. A series of social and economic reforms has been adopted by the Kingdom to attract foreign investment under a diversification drive. Alongside these measures, we expect a rebound in economic growth to 2.3 percent on average over 2020-2022 to support the real estate market.
The banking sector’s exposure to real estate has been contained at 17 percent of total credit to the private sector as of mid-year 2019. Although Saudi banks seems to have written off a significant portion of their problematic contractor exposures, we do not rule out some volatility in the asset-quality metrics.
Mortgage portfolios have been expanding rapidly over the past two years, fueled by government-subsidized programs and regulatory incentives introduced by Saudi Arabian Monetary Authority (SAMA). They remain mostly salary assigned, so banks are exposed to unemployment risk, rather than asset-pricing risk. Yet, the cost of risk on mortgages has been negligible so far.
Nevertheless, government efforts to promote housing affordability, including lower regulatory requirements for mortgage exposures through loans could mean a build-up of risks in the long term.
Currently, the risks are still well-reflected in their ratings.
The general market trend is of weakening prices and rents across various segments, making the sector sensitive to unexpected changes in economic growth. The residential performance has been soft in Riyadh and Jeddah as residential sale prices and rents have declined. While supply is slated to increase slowly, we believe the segment is expected to remain under pressure mainly due to the exit of foreign workers, which has followed new and increasing taxes applying to expats.
We expect government initiatives, such as those incentivizing developers to build affordable homes, or encouraging banks to introduce more home financing options, to increase home ownership rates among Saudi citizens. Saudi Arabia has recently approved a program that offers permanent residency to some foreigners to attract investments, which could also boost prices. In addition, we forecast improving regulation to promote transparency and investment in the sector.
The commercial market is quite fragmented, with limited new supply in the pipeline. There is good demand for Grade A office space in part due to demand from newly created government companies under Vision 2030. The rest of the market however continues to experience rental decline. In Jeddah, the trend is negative too, with vacancy rates as high as 21 percent.
The retail market is competitive and unorganized, especially outside of the cities. Lacklustre economic growth means a soft retail environment, one that has negatively affected retail rents. Rents in Riyadh and Jeddah, especially for regional and
community malls, have declined by 5 percent year on year and are trending downward as more supply is expected over next 2 years.
A key difference between Saudi Arabia and neighboring countries is the size of the local population and demographics. Compared to the UAE population of approximately 9.5 million with 10-15 percent citizens, Saudi Arabia’s population is over 33 million of which 60-65 percent are citizens.
Due to the current over supply in residential sector we believe the Dubai market will remain under pressure in 2019-2020, with no meaningful recovery in the near term. Dubai Expo 2020, which is expected to attract millions of visitors to the emirate, may have a positive effect on market sentiment. Since the decline in prices has been gradual, relative to the previous cycle, we believe any meaningful recovery will take longer.
In contrast, Saudi Arabia has the opportunity to better manage property supply than its neighbors, with a key strength being its growing population and rapidly changing demographics.
Its youthful population has increasing disposable income, a taste for a better quality of life, and a preference for urban centers.
Meanwhile, the increased participation of women in the workforce will result in higher household spending power.
Under the Saudi Housing Vision Realization Program, the government aims to increase home ownership rates among Saudi nationals by 10 percent year on year. To achieve this, an increase in the availability of private sector funding for real estate and a boost to middle- and low-income housing stock, while also establishing cooperative social housing programs is needed to increase supply.
The country can also proactively plan for new concepts that are disrupting traditional brick-and-mortar real estate elsewhere such as co-working spaces, co-living developments, and online shopping.
Saudi population trends, combined with government reforms and potential economic growth, are supportive of a sustainable real estate market in the medium term and could see Saudi Arabia outperform neighboring countries.
source: zawya
Egypt, with a GDP growth of around 6%, continues to lead growth in the Middle East and North African (MENA) region in 2020, according to the Institute of International Finance (IIF) expectations for 2020.
As the new year is approaching, the IIF’s economic experts revealed their 2020 outlook for Central and Eastern Europe, Middle East, and Africa (CEEMEA) regions.
Regarding the MENA region, Garbis Iradian, chief economist for MENA, stated that given the projected lower oil prices of an average of $60/pb in 2020, the region’s authorities will need to strike the right balance between resuming fiscal consolidation and sustaining the current modest non-oil growth.
Fortunately, he mentioned, the monetary policy in the region is easing as the Fed is expected to reduce further US interest rates, which would support private credit and non-oil growth.
He noted that Egypt continues to lead growth in the MENA region, while in other oil importers, progress from recent reforms and de-escalation of conflicts in the region may support a gradual recovery. However, the pace of growth will still be insufficient to significantly reduce the high unemployment rates.
“The MENA medium-term outlook hinges on sustained reform implementation and de-escalation of tensions in the region to create an enabling environment for higher private investment and growth,” he stated.
He assured that some progress has been made, but the region needs to pursue deeper reforms to strengthen the business climate, improve competitiveness, and foster diversification and job creation.
Moreover, Ugras Ulku, head of CEEMEA Research, stated that for Central and Eastern Europe (CEE), the key theme for 2020 will be a growth slowdown.
He added that weakness in the German manufacturing sector, if sustained, will feed through supply chain links into weaker industrial activity in the CEE region (and has already started to do so).
“Additionally, uncertainty related to trade tensions between the US and the EU, especially with regard to the automotive sector, and to Brexit will continue to weigh on business sentiment in CEE. However, growth in the region will remain robust and allow for further convergence,” Ulku continued.
Regarding South Africa, he expected that the key theme for 2020 will be public debt sustainability.
He explained that the government has to present a credible plan in the February 2020 budget to reduce the fiscal deficit in order to stabilize debt, which is the key determinant of whether or not Moody’s downgrades South Africa to sub-investment grade, triggering increased volatility in the prices of South African assets.
“It remains to be seen if political will emerges and if the government is able to convince large public sector labour unions to agree to reduce the public sector wage bill, given that this is the key determinant as of potential debt stabilisation,” he further explained.
“For Turkey, the key theme for 2020 will be the authorities’ ability to use the credit channel to boost growth without intensifying Turkey’s macro vulnerabilities. Further credit impulse could lead to a sharp reversal of current account surplus in 2019 to a sizable deficit in 2020 and intensify demand pressures on inflation dynamics,” head of CEEMEA Research, forecasted.
source: dailynewssegypt
Investors and buyers looking at Dubai's real estate landscape are spoilt for choice
The right place and the right time are the two most critical factors to consider before making a real estate investment. At some point in our lives, we all think of buying property. While some look for inspiring spaces where they can live fulfilling lives with their loved ones, others seek properties that add value to their investment portfolios.
Irrespective of the reason behind investing in real estate, the decision is based on the same two factors - the right place and the right time. When it comes to 'the right place', Dubai ticks all the right boxes. The Emirate's stable and growing economy, pro-people government, cultural diversity, and a future-proof outlook, are a significant draw for people from every corner of the world. Anyone who has ever been to Dubai or lives here aspires to own a piece of this magnificent city. For those wanting to invest in a property in Dubai, now may be the perfect time to do so.
As Dubai evolves into a city of the future, its real estate landscape is undergoing a transformational evolution. What was once just a go-to destination for global investors seeking good returns, is now maturing into a place where people are looking to settle in and invest for the long term. The days of unsustainable price growth are behind us, and Dubai has become a more affordable buyer's market, prompting many to invest.
On September 2, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced the launch of the Higher Committee for Real Estate, which will chalk out a long-term growth strategy for the sector. The announcement received a phenomenal response from the market, which witnessed a 134 per cent rise in real estate transactions within a month of the announcement. More and more people are seeing this as the right time to invest in Dubai's real estate. Here's why you should too.
The price is right
Property prices are perhaps the most influential factor while making a real estate investment decision. At this stage, Dubai's property market presents the right conditions for buyers, investors and renters alike. Compared to Q2 2019, in Q3 2019, the average price per square foot declined by 8 per cent for apartments and 6.6 per cent for villas across the board. However, the decline is softening, and we believe that the market is bottoming out. The declining prices have prompted many to take advantage of market conditions and make their first property investment in Dubai. In 2018, nearly 66 per cent of the total investors in Dubai's real estate were first time buyers; and we expect that this trend will continue in 2019. We are also witnessing a trend where long-term renters are instead considering buying their own home in the Emirate. Those who invest now are sure to benefit in terms of long-term returns once there is an uptick in the market in the coming years.
So many options
Today, investors and buyers looking at Dubai's real estate landscape are spoilt for choice. From off-plan projects to ready-to-move-in units, from gated communities to exquisite branded residences, the market offers unique products that suit different needs. It is also an excellent time for buyers who are looking for luxury real estate as Dubai is set to overtake New York as the global branded residences capital by the end of the year, with 23 existing projects and another 22 in the pipeline. At Damac, we have always believed that creating a diverse range of living experiences is the key to success in a market such as Dubai. From Ghalia, our first Shariah-compliant project, to Damac Hills, our master community that caters to residents' holistic lifestyle needs, our projects have been inspired by the different cultural needs and aspirations of buyers and investors.
Attractive returns
Dubai has always been a preferred destination for those who are looking at property as an investment. Despite the decline in prices, at 7 per cent, average rental returns of Dubai in the first half of 2019 remain stronger than in most big cities around the world. Besides long-term returns on investment, Dubai's real estate landscape offers multiple ways to make money from your investments. Compared to long-term rentals, holiday homes offer up to 25 per cent more returns to investors. As per a recent report by Knight Frank, the holiday home market of Dubai accounts for two per cent of its total households, which is the highest in proportion, compared to other big cities.
Better financing and easy payment plans
To encourage mortgage-based home purchases, the UAE Central Bank recently instructed banks and other finance providers to reduce early settlement fees to a maximum of 1 per cent or Dh10,000, whichever is less, for borrowers who want to exit their mortgage early. The UAE Central Bank also scrapped the 70-year age limit for the last mortgage repayment. These reforms will bring more flexibility for those who wish to buy a property through financing. Buying a home is a big decision that involves a complex emotional and logical reasoning. Whether you're an investor looking for returns or a buyer in search of your dream home, Dubai will never disappoint. However, it's all about taking the right decision at the right time.
source: zawya
beltone Financial Investment bank expects the real estate sector to decelerate in 2020 as real estate sales have lost pace or are coming flat, driven by continued oversupply risks in upper middle and high-end project offerings, and slower price increases due to slower inflation readings and stabilisation in the cost base.
Beltone analysts continue to list tier-1 developers, namely TMG Holding (TMGH), Palm Hills Developments (PHDC), Emaar Misr (EMFD), Orascom Development (ORHD), Sodic (OCDI), and Madinet Nasr Housing (MNHD), as they capitalise on their names and track record to drive new sales versus the small and medium sized new entrants.
These tier-1 developers also deliver 7k-10k units per annum combined, which is relatively low compared to the target client segment, representing 2%-3% of Egypt’s growing population as well as the number of marriages of up to 900k per annum.
Real estate sales grew by 2% year over year (YoY) during 1H19 to EGP 31.7bn, compared to 53% YoY growth in the first half of 2018 (1H18) versus 1H17, which looks to be the only slight growth due to existing projects nearing completion, thus slowng down tier-1 developers YoY from launching new real estate. However, Beltone analysts expect 2H19 to be stronger, driven by new project launches toward the end of the year, reaching total sales of EGP 67.2bn, higher by 18% y-o-y.
Throughout 2019, the Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) cut interest by 650 basis points , followed by another expected 300 bps cut in 2020, according to Beltone analysts’ expectation.
This led tier-1 to extend payment schemes to reach an average of eight years in 2H19, up from seven years in 2018, to fuel new sales, maintain current growth, and avoid lower prices YoY.
Most importantly, Beltone analysts believe that lower interest rates will push the resale market out of stagnation, which has been pressured by lower disposable income since the Egyptian pounds floatation. The plan is to offer affordable mortgage products for real homebuyers who intend to buy delivered homes in cash.
Beltone analysts added that reviving the resale market therefore should stabilise the local real estate market by attracting new buyers for the primary market.
They also positively view that the latest joint venture including TMGH, EFG Hermes (HRHO), and GB Capital (AUTO) to fund ready-for-sale units in TMGH’s Madinty and Al Rehab Projects, to be followed by funding units in other projects with target sales of EGP 450m-EGP 500m in 2020, to capitalise on lower interest rates and offer a new product to the market.
They also believe that, the beneficiaries from interest rates cuts in 2H19 and 2020 based on size of debt on their balance sheet are PHDC, TMGH, ORAS, OCDI, HELI, MNHD, ORHD, and PORT.
On the other hand, EFG Hermes Investment Bank expected real estate stocks to have underperformed in the general market indices in Egypt.
Market conditions have been challenging, with companies facing difficulties to increase their contracted sales, selling prices, with developers offering extended payment terms, if possible, to encourage sales along with new product offerings across various projects.
They added that a number of macro initiatives failed to reflect positively on the sector’s activity and in turn respective stock prices.
In Egypt, a series of interest rate cuts did not encourage more activity or demand on new launches, given the insignificance of the mortgage activity in the sector’s performance.
Moreover, there have been extended payment terms for new projects across most developers, with a minimal positive impact seen.
They expect real estate stocks in general to underperform the general market index in Egypt 2020, with a few expectations that they will relatively outperform their peers.
Although they have a cautious outlook on the real estate sector and think the stocks will reflect the operating environment, they think that there will be some outperformers and underperformers, on a relative basis in 2020.
They prefer exposures to companies with solid recurring income stream asset bases and strong balance sheets, with a significant debt and local obligation dues. Their key ideas for the year are Orascom Development Egypt and Emaar Misr Egypt.
Moreover, Pharos Holding expect a decline in sales with 10% increase in cost and 5% increase in prices, which lead to lower margins.
They believe that there is no further extension of installment scheduled or an increase in debt.
Pharos analysts hope that, interest rate cuts to sustain demand, stability in costs in light of weaker commodity prices, and a rise in consumer demand on the back of suburban migration.
While they fear deacceleration or decline in demand due to affordability issues, further extension of installments schedule, significant jump in prices, and emergence of installment schedules in the resale market and compete with development companies. They prefer ORHD and TMGH.
source: dailynewssegypt
It's high time when the country should think more about incubators. Incubators will help start-ups save the operating costs and provide wider business ecosystem.
It's high time when the country should think more about incubators. Incubators will help start-ups save the operating costs and provide wider business ecosystem.
Incubation Trends for Startups To Expect In 202A startup incubator is a collaborative program that helps new startup to grow.
It aids entrepreneurs in solving discrepancies associated with running of startup. Globally, incubators have become a biome with an array of initiatives that motivate and back economic growth. However, talking about India, incubators are a recent phenomenon, which is sure to upswing in the coming days. In this article, we have tried to focus on some incubators trends for startups that we expect in 2020.
Startup incubators are generally non-profit organizations, which are usually run by both public and private entities. In India, there is a perilous scope for learning and civilizing our global position as a startup hub.
According to the NASSCOM India Startup Ecosystem report, India has retained its position as the third-largest Startup Ecosystem in the world.
More than 1,200 startups came up in 2018, including eight unicorns, taking the total number to 7,200 startups.
This suggests that the numbers of startups are sure to augment in 2020 and incubators being the new tendency, startups need to espouse it.
Incubators actually need to be at the vanguard if India needs to push itself ahead as a global startup hub. That can be a help in improving the agriculture, food and climate businesses.
Here are some incubators trends for startups that we expect in 2020:
Use of AI-based technology skills
Artificial intelligence (AI) is the intelligence validated by machines, in contrast to the natural intelligence displayed by humans.
Use of AI startup incubator can progress business projects and deliver technological solutions to persistent problems of the startup industry.
It is sure to provide shape to the current shambolic landscape of startups and give solutions to section-oriented problems.
In 2020, the use of AI-based technology skills must be implemented in the country at large as they have a holistic approach.
The use of comprehensive 3D mentoring and dedicated network can make this incubator a chauffeur of AI innovation. The AI techniques will help the agrarian sector in improving the amenities.
Innovation-driven startups
The conception of innovation-driven startups is something which we assume to be absorbed in the coming days. These startups have the high growth potential that can bring new innovations with a clear viable advantage.
Like, an agri-business incubator plays an acute role in the development of the sector. It provides facilities, where startups can test their product samples before taking them to market.
The funding under government schemes through incubators helps the sector expand crop output, improve farm management and increase farmer incomes, just what IndiGram is doing.
Climate technology-oriented incubators support start-up organizations in a climate-responsive manner.
It generally offers business, marketing and technical services along with financial support by linking the entrepreneur to sources of finance and investment. Boosted provision of financing for climate technology entrepreneurship is desirable today. It has the potential to amplify and expedite the development, scale-up the market penetration of climate technology solutions.
Futuristic solutions for the current problem
Incubators can provide subterranean solutions to the problems of startups. In the coming days, incubators may provide much-needed sustenance and push to build a solid foundation for the entrepreneur industry.
There are many challenges of startup industry that need to be addressed. Incubators can solve some of the complications commonly associated with running a startup by providing workspace, seed funding, mentoring, and training.
Incubators can deliver the vital seed for the industry to propel with standing solutions. For example, food industry is facing copious challenges these days. And, all of us know food industry is constantly evolving. Food incubators can help startups breed by providing them with capital investment, well-furnished commercial kitchen spaces, access to networking classes, packaging and distribution support.
Ethical training for upcoming startups
The ethical issues in business need to be engrossed. The startup industry should work with demeanor based on integrity. That will develop trust and increase diversity of the industry. Empathetic decision-making and compliance must be the focus in 2020.
It is best to be aware of the turn-ons and to prevent the hiatuses from occurring that may be in agriculture, food and climate industry.
All the startups should focus on social and environmental impact
The more the investors will emphasis on achieving affirmative social and environmental consequences, the more capital will be available to back startups.
That will provide a better conception. For sustainability of the industry, it is important to look after all the impacts. The effort should be eco-friendly and must be targeted at providing long term social influence.
It's high time when the country should think more about incubators. Incubators will help start-ups save the operating costs and provide wider business ecosystem. It will help startups to grow at an early stage.
source: businessworld
Next year, the GCC region will be in focus because of several major global events, including Expo in Dubai, which opens on 20 October 2020 and runs for nearly six months, and the G20 summit in Riyadh on 21-22 November 2020.
In different ways, the two events will showcase the region’s economic development and potential and could contribute to ongoing efforts to attract investments and diversify economies. The GCC’s location in a geopolitically sensitive region means it is often in the news, but these events could allow it to present a different side to key audiences.
Expo will make Dubai the second most-visited global city
The Expo in Dubai will be the first time that the Middle East region has hosted a World Expo, part of a series of exhibitions showcasing national cultures and human progress that began back in 1851 and are now scheduled every five years. Ongoing preparations include the government’s spending on infrastructure for the Expo site itself and private sector investments to expand accommodation capacity. This has been providing a boost to the construction sector, although about 80% of the work has already been completed.
During the event itself, the economic impact will come largely from spending by the influx of visitors. Dubai already hosted 15.9m tourists in 2018, making it the fourth most-visited city globally according to Mastercard’s Destination Cities Index. We forecast that the surge of visitors for Expo should result in it advancing to become the second most-visited city during 2020-21, reaching 23 million visitors in 2021.
This is based on official forecasts for about 11m additional tourists coming for Expo, which we assume are distributed evenly across the six months of the event, and underlying growth trends for the remainder of each year. If numbers exceed expectations, or if tourism growth is slower in Bangkok, which currently is the most-visited, then Dubai might even move into first place.
Long-term impacts
The key challenge for Dubai will be to convert the enthusiasm generated by Expo into longer-term gains. There will be an inevitable lull after the event, as visitor numbers decrease and tens of thousands of temporary expatriate staff hired for the event depart. However, the investment in the Expo site will continue to have an impact as it converts into a mixed-used development anchored by the Dubai Exhibition Centre, which will continue to host major events and is forecast to attract 1.1m foreign visitors a year.
The hope is that many of the newcomers who attend Expo will like what they see and become regular visitors to Dubai. Its central hub location on intercontinental transit routes, and the very high satisfaction results found in the Dubai International Visitors Survey, support that outcome. Dubai’s economic model also harnesses tourists as investors, particularly in real estate, and most Expo visitors are expected to be relatively affluent and in turn, potential investors who might be attracted by the current cyclical downturn in real estate prices, resulting from significant new supply.
Saudi Arabia will help frame the G20 agenda
When the annual G20 meeting arrives in Riyadh in November 2020, it will be the first time the Middle East has hosted such a large gathering of global leaders. While Expo focuses on global culture and technology, the G20 is the leading forum for global economic policy. Its membership includes countries accounting for 90% of the world’s GDP and two-thirds of global population. It was founded in 1999 in an effort to expand the G7 club of large developed economies to include broader representation by adding 12 other large economies and the European Union. Saudi Arabia has an important role as the only Arab state and the only OPEC member in the group. Since the global financial crisis in 2008, the G20 has taken over the baton from the G7 as the most important annual gathering.
In hosting the 15th G20 summit, Saudi Arabia will be able to frame some of the topics discussed by the world leaders and work to mediate agreements, and its secretariat is currently preparing an agenda. This will also be shaped by whatever key economic and political events are underway at the time, which are difficult to predict. However, we can expect that trade and climate change, both issues on which Saudi Arabia has an important perspective, will continue to be prominent. The summit will also happen two weeks after the US presidential election, the result of which could have a significant impact on the G20 discussions. In any case, Donald Trump, a close ally of Saudi Arabia, will represent the US at the G20, as the US presidential inauguration won’t take place until January 2021.
The summit will highlight Vision 2030 developments
The summit could also be happening at a time when OPEC and its partners (including G20 member Russia) may be debating whether to extend oil production cuts into 2021. In June, the Russian president and the Saudi crown prince met on the sidelines of this year’s G20 in Japan, agreeing to continue oil cooperation, and a few days later the OPEC+ group formally agreed to extend cuts to March 2020. Many oil sector analysts expect that they will be extended for a further nine month period to end-2020, depending on trends in the global economy and oil market, in which case a decision to end the cuts, after four years, or continue in some form into 2021 could be pending when the G20 meets in Riyadh.
Aside from the core discussion, the summit will also provide a spotlight on Saudi Arabia itself. It comes as the Kingdom nears the end of its National Transformation Program, the first medium-term plan to set quantitative and ambitious goals for economic reform and diversification, as part of the broader Vision 2030. Significantly, it will also be happening around the time that Saudi officials have indicated the Aramco IPO is likely to take place and also when the first phase of NEOM city should be complete. Two key elements of the Kingdom’s broader diversification strategy. The attention resulting from the G20 could be harnessed to attract interest in both portfolio and direct investment in Saudi, which will be vital if it is to achieve its objectives.
source: pwc
Dubai. It’s time to do more business. The first World Expo to be held in the Middle East, Africa and South Asia (MEASA) region and largest ever event to take place in the Arab world is paving the way for a robust economic impact on wide-ranging sectors in the UAE.
From construction to retail and transport to the restaurant and hotel sectors, Expo 2020 Dubai is ushering in a new era of economic expansion not just in the UAE but also in the region and the world.
In April 2019, Ernst & Young published an independent report that stated Expo 2020 Dubai is already having a substantial economic impact and is expected to continue to do so over the next decade and beyond. Additionally, UAE’s rich tradition as a place for small businesses looking to take their products to the world is nurturing SMEs (Small and Medium Enterprises), who are the key to future growth and job creation.
To date, Expo 2020 has awarded Dh3.62 billion to SMEs through direct and indirect awards and SMEs have won 55.4 per cent of all contracts awarded by Expo 2020 as of July 31, 2019.
In addition, Expo 2020’s global innovation and partnership programme, Expo Live, has allocated $100 million to back projects with creative solutions to pressing challenges across the world, helping to improve people’s lives or preserve the planet.
The investment in infrastructure and other assets for Expo 2020 — expected to reach Dh40.1 billion — will in most part be retained for the future.
Expo 2020 Dubai will also stimulate travel and tourism during the course of the event. Other sectors too are benefiting, demonstrated by the fact more than 7,200 non-construction contracts to more than 1,000 companies have been awarded to date, 70 per cent of which are UAE registered.
source: gulfnews
The Seedstars World Competition 2019 in MENA has come to an end during the latest edition of Seedstars Summit MENA 2019 in Morocco that took place from December 10 to 12. More than just a tech conference, the Seedstars Summit MENA was an opportunity for more than 150 participants to create valuable connections and learn from each other.
The Summit was a long-awaited event for the startups selected during the local Seedstars World Competition in the region, as it’s the time when we announce the names of companies who will join the global Seedstars Summit 2020 in Switzerland and compete for 500,000 USD in equity investment.
Here is a list of all MENA startups to compete for the title of the Seedstars Global Winner in the global arena:
EButler, Qatar, an online platform that serves as a digital butler connecting people to the best service providers in the city.
Kenz, Palestine, a designer lingerie shop online that aims at becoming the premier destination for lingerie shopping in the Middle East.
Hayatech, Bahrain, a B2B, Software as a Service (SaaS) and connected hardware platform that aims to build an ecosystem around wellness.
Otaxi, Oman, a solution that integrates city transportation for users and driver-partners ina mobile platform, providing the easiest, straightforward, and snappy service satisfaction.
Hospitalia, Cairo, an integrated healthcare platform, which provides access to premium medical services any time and anywhere.
Quantum, Saudi Arabia, a data-driven targeted sampling platform, which aims to digitize the sampling industry and help make it more accurate.
Optiyol, Turkey, Optiyol helps freight and passenger transportation fleets with smarter route schedules that reduce costs and improve on-time performance
As part of a partnership between Qatar Business Incubation Center and Seedstars, Debito, a platform to manage credit in a traditional grocery, also joined the cohort of the winning startups and will head to the global Seedstars Summit in April. The startups selected as winners of ICT Accessibility prize Lazarillo and Talov will also compete for a 15,000 USD grant at the global event.
Prior to the main day of the Summit (December 10 and 11), an intensive Growth Bootcamp powered by the Seedstars Investment team aimed to teach the 20 startups how to integrate growth practices into their businesses took place. It was followed by the Investor Forum where participating startups had over 78 one-to-one meetings with top local and international mentors and investors.
On the Summit Day (December 12), the startups delivered one-minute pitches on the main stage in front of more than 150 hand-picked ecosystem builders, corporates, investors, startup enthusiasts representing some of the most prominent names of tech and entrepreneurship in MENA.
The Summit also featured speakers from global companies, business incubators and VC funds like Alisée deTonnac (CEO, Seedstars), Amal Dokhan (Director, Babson Global Center for Entrepreneurial Leadership), Adnane Addioui (President & Co-Founder of MCISE), Sophia El Bahja (Executive and Operations Director, Nobox Lab), Rami Helali (Co-Founder & CEO, KOTN), Saad Jittou (Co-Founder & CEO, Weego), Kenza Bounjou (Partner, Dentons), Tarik Fadli (CEO of Algo Consulting), and Neila Benzina (Founding Partner, Wimbee).
“We had an amazing time at the Seedstars MENA Summit in Casablanca when we had a chance to meet incredible people including investors, mentors, and entrepreneurs. Thank you, Seedstars, for bringing all of this together and we look forward to the global Seedstars Summit in April 2020.” Omar Ashour, CEO of EButler.
source: seedstars
According to an interview made recently by Seedstars, with Omar Christidis, CEO of Arabnet, the largest entrepreneurship networks in MENA, about the startup ecosystem in the region, get insights on how it has changed over the past 10 years, and discover what is unique about young founders in Arab countries. Hereafter the interview:
What do see as the major difference between the MENA region a decade ago and today?
When Arabnet launched 10 years ago, the ecosystem was at a nascent stage, so we had a different role to play: we were helping to build an industry from the ground up.
Our focus was on developing a platform for startups and investors to connect, engaging new corporates into the digitization sector, and connecting stakeholders across different markets to share insights and do business together.
The ecosystem has substantially grown since then. There’s been a tenfold increase of VCs in many markets, there are over a dozen $100M startups, there’s been an exit at over $1B which we would not have dreamed of before. Verticalization of the industry is another big one. In the past, the conversation was as an industry more broadly, whilst today there’s focus areas such as fintech, foodtech, adtech, etc.
Many governments across the region are prioritizing programs focused on growing the sector, such as Circular 331 in Lebanon, the Kuwait National Fund, and SME Authority in Saudi Arabia.
We have recently seen interest from big family offices and corporations in investing in startups, and have witnessed a good number of corporate venture capital arms and corporate accelerators and innovation programs.
What do you find unique about entrepreneurship in the region? Is there something that you see in the local founders/CEOs that you would not see in entrepreneurs, let’s say, from Europe or the U.S.?
The resilience of entrepreneurs working in the region. Entrepreneurs across the globe have a shared set of challenges in launching and growing their startup - like raising funding and finding talent and growing their customer base. In the MENA region, entrepreneurs face an additional set of challenges related to emerging markets: in some markets, entrepreneurs have to deal with weak infrastructure or face political instability, in other markets, lots of client education needs to be done. To top it all off, the MENA region is fragmented - with major regulatory differences and even cultural differences - which adds the challenge of scaling across borders in the region.
The competition in MENA is growing, thus it’s more difficult for startups to stand out and get the attention of investors, partners, funds, media, customers, etc. Based on your more than 10-year experience of work with startups, what do you think the most successful teams have in common?
Startups succeed and fail by the people that bring them to life. A startup can have all the potential in the world but can be hindered by its people.
For instance, although there’s nothing wrong with being a solopreneur, being a solopreneur adds additional challenges for the get-go. Startups with 2 or more founders are more likely to attract investors and take less time to grow and scale. The main reason behind this is because solopreneurs do not have someone to bounce ideas with or have diverse skills which you have in multiple founders.
Additionally, mid-career professionals are primed to launch startups that tackle the problems that they experience directly. These are people who are between the ages of 35 and 40 who have been working in the industry for 10 or 15 years. They understand the pain points of that specific industry, have the right connections, have built a reputation, knowledge, expertise, and experience. They are familiar with all the issues and they’re much better positioned to tackle that problem than anyone else.
You and your team managed to build one of the largest entrepreneurship networks in MENA. What’s the main aim of your annual event Arabnet Riyadh? What topics and issues will be highlighted this year?
Arabnet’s vision has always been to catalyze growth in the tech industry by being a platform for knowledge and connections - bringing together government policymakers, corporate leaders, and startups and investors to unlock emerging opportunities in the sector.
Arabnet Riyadh is the largest and most influential event for digital business and innovation in the Kingdom that brings together thousands of decision-makers and innovators to connect and learn. With the increasing importance of Saudi Arabia as an entrepreneurial hub, and with startup around the region flocking to expand into the Kingdom, Arabnet Riyadh is the ideal platform to engage with the region’s largest and fastest-growing digital market. It is the perfect platform to understand what it takes to enter the Saudi market, find the right partners or investors, and connect with potential customers.
What do you consider your core strength as an organization?
At our 10 year anniversary, we did a lot of soul searching and dreaming - about what our vision should be for the next decade of our business. In the process, we came to realize that our core strengths are our extensive knowledge in the tech industry, and our access to the largest and widest group of digital experts and decision-makers, and to opportunities.
As technology proliferated over the past 10 years, the sector transformed, and technology went from the IT department to the boardroom, where innovation and digitization strategies became a priority. To answer their needs, we launched our Insight division and Innovation Programs division and we’re focused on growing these two divisions during our upcoming phase.
Arabnet Insights is collaborating with clients to position them as thought leaders through publications and research. Our specialized content dives into disruptive technologies and startup trends, and provide guidance for decision-makers, with tools such as op-eds, whitepapers, reports, case studies, and more.
In Arabnet Innovation Programs, we collaborate with our partners to conceptualize and deliver tailor-made innovation activities, from hackathons and startup competitions to full-year incubation programs. With the rise of corporate interest in innovation and startups, we’re excited to help build new bridges and create new synergies- as we did when we started our business.
How do you envision the future of Arabnet and see your role in shaping the entrepreneurial landscape in MENA?
I see Arabnet becoming more engaged with policymakers in the region. We’ve developed strong relationships with government decision-makers who are focused on innovation and digitization, and we’ve been supporting with data and analysis, as well as advising and proposing solutions. We’ve also helping convene government leaders from across the region in our Digital Policy Forum, where they can share experiences and best practices for building a flourishing digital economy.
Lastly, my aspirations, as I believe is similar to many founders, is to build a strong, independent and sustainable institution, that continues to thrive after my departure, whether that’s in the next 5 years or the next 20. I believe Arabnet has been a positive influence in the region’s tech world over the past decade, and I hope that it will continue to spread knowledge, open up opportunities, and build relationships that lead to lasting impact.
source: seedstars
