Barely a week goes by without a startup in Egypt announcing an investment round.

The country has over the past few years ramped up its entrepreneurial activity, becoming the fastest growing ecosystem in the Middle East and North Africa (Mena) region according to a report by Magnitt.

Helped by the falling inflation rate and an economy that is on its way to recovery, more people are gaining the confidence to launch their own business.  

“We have seen a lot of change in the startup ecosystem in Egypt in the last couple of years. We see it in the number of our applications; it is doubling.

Also, in the quality of the entrepreneurs who are applying to join the programme," says Marie-Therese Fam, managing partner at accelerator Flat6Labs Egypt.

With a population of more than 100 million, Egypt’s market has the potential to be one of the most lucrative and it is attracting the attention of not just startups from the wider region, but also investors.

"Over the past three years we have been seeing more access to finance and more interest from global investors to invest in the ecosystem, adding to that the governmental initiatives supporting starts and SMEs,” says Mohamed Hamza, associate director at AUC Venture Lab.

“We have been seeing an increased awareness about entrepreneurship through the work of various stakeholders, appearing on TV and having dedicated programmes directing attention towards the topic as well as the introduction of entrepreneurship education as a requirement in a number of public universities.”

The number of venture capital (VC) firms, accelerators and incubators in Egypt have been increasing, indicating a growing interest in entrepreneurship in Egypt. In fact, according to one report by the Global Entrepreneurship Monitor (GEM), launched by The American Univeristy in Cairo School of Business in 2018, 82 per cent of Egyptians perceive successful entrepreneurs as having high social status and almost 76 per cent of Egyptians, mostly youth, perceive entrepreneurship as a good career choice, compared to a global average of 61.6 per cent. Moreover, 55.5 per cent of non-entrepreneurs surveyed expressed their interest in starting their own business, a percentage that is double the global average.

"There is a shift in the mindset. Young people are more eager now to start their own projects.

Also, there are so many entities that provide help and support to startups.

The more young people know about these entities and the fact that there is so much support, the more they are encouraged to start their own projects,” says Fam.

But perhaps one of the biggest drivers for the rise in entrepreneurship is the lack of “interesting jobs for young people”, according to Fam.

While the overall unemployment rate stands at around 8 per cent according to CAMPAS, Egypt’s statistics agency, the youth unemployment rate as of 2018 was more than 32 per cent according to the World Bank.

The GEM report reveals that opportunity-driven entrepreneurship has been decreasing at the expense of necessity- driven entrepreneurship that is driven by the lack of other work alternatives, increasing from 31.1 per cent in 2016 to 42.7 per cent in 2017, compared to a global average of 22.2 per cent.

Solving global problems in Cairo

The historic capital, Cairo, is a city with a dense population of 30 million, crumbling infrastructure and an unwavering sense of hope.

The metropolis has proven to be fertile ground for solving problems that many cities in emerging markets around the world are experiencing.

One particular sector that Cairo has excelled in, is solving the transportation problem for overcrowded cities with poor public transportation systems.

It has been startups that have provided the solutions and one such example is Swvl, an application for booking buses that recently closed a $42 million investment round, marking the biggest VC investment deal in the country and the highest in Mena in the second quarter of this year.

"Startups can offer many innovative solutions for the big issues. We cannot say they are solving the whole thing at one time, but at least they are offering a know-how and a new way of dealing with things just like what happened with the transportation market starting with Uber then the rise of Careem then Swvl which is much more Egyptian and much more related to our situation and streets," says Ahmed Adel, business mentor at Fekretak Sherketak. 

Swvl’s understanding of the Egyptian market enabled it to become the market leader and highlighted the opportunities in the buses sector with both Uber and Careemlaunching their own service.  

“We can even see that the public transportation sector started to use mobile applications such as Mwasalat Misr which I think will be a good experiment that will be generalised soon,” says Adel.

Challenges

Yet despite the innovation and enthusiasm, there remains plenty of challenges that hinder the growth of startups in the country. Many end up failing, the country had the highest rate of business discontinuation among the 49 countries studied in the GEM report with a rate of 10.2 per cent in 2017, a significant increase from 2.7 per cent in 2010.

The report attributes the high discontinuation rate to the challenging business environment reflected mainly in the lack of profitability for businesses and the difficulties in accessing capital.

"Investors need to understand that the nature of investing in startups is different,” says Mohamed Khedr, managing partner at Endure Capital and founder of Fatakat, an online network aimed at Arab women. “Investors are used to dividends and thus find it difficult to supply startups with money for seven or 10 years and wait for its exit until they can have their money.”

According to Khedr, many investors “do not understand that they can have a maximum of 30 per cent stake because the founders still have upcoming investment rounds and stake to share and do not want to end up with 3 or 4 per cent share”. While others tend to be overbearing and tend to get too involved in the day to day running of the startup, which ultimately might contribute to the failure of the company.

The regulatory environment is also a hindrance, particularly with regards to investing in startups.

“There needs to be new laws that are introduced specifically for startups such as shareholders' agreement as well as regulations that ease taxation and financial restrictions and facilitate procedures of registering startups,” says Khedr.

Lack of experience is one other main reason why startups fail.

Generally, Egyptian entrepreneurs have low fear of failure compared to the global average in GEM, but despite the positive attitudes, most entrepreneurs report that it is a tough and stressful job with extended working hours, high risk and high level of uncertainty.

About nine out of 10 startups in Mena fail but few are aware of the failure rate since much of the media focuses on the success stories, investment rounds and acquisitions.

"One of the biggest reasons why startups fail is experience.

You can learn how to be an entrepreneur but not open your own business,” says Adel who founded a startup when he was still a university student and had to shut it down a year later. “You can be an intraprenuer.

You can join a startup to learn more.

I am not encouraging students to open their startups without experience. If you have a good idea that you think will change the market, just get some experience in your team.”

Yet, there are lessons to be learned in failure. Many entrepreneurs in Egypt who have failed learn from their mistakes and strive to start new businesses.

One example is the team behind Wasla Browser, their third venture after their initial startups failed. While university graduates continue to found their own businesses in the hope of becoming their own boss and creating employment opportunities for themselves, it is the ones who are on their second or third ventures that are likely to see success and it is these founders who are contributing to the most value to Egypt’s startup ecosystem.

"The youngest people think that they will be their own decision makers, and no one will tell them what to do and so on which is actually not true. An entrepreneur is bossed by the market itself, the customers and investors," says Adel.  

source:  wamda

For almost 10 years, Egypt has made a dramatic leap in a number of fast-expanding startups and an amazing set of supporting institutions and communities. 

In 2018, Egypt was ranked the fastest growing startup ecosystem in the Middle East and North Africa and the second largest after UAE, according to a report by start-up platform MAGNiTT. 

During these years, Egypt’s flourishing entrepreneurship scene has been receiving support from governmental entities and private institutions which aid entrepreneurs to reach their maximum potential by offering fund opportunities and mentorship. 

Having known about these governmental and private institutions that provide help and support to startups, Egyptian young people were encouraged to start their own projects, especially in light of the lack of employment opportunities and law wages. 

Egypt’s population of more than 100 million citizens also makes its market one of the most lucrative, attracting the attention of not just startups from the wider region, but also investors. 

“With a large youth population, low wage costs and numerous niche markets yet to be saturated, Egypt is an ideal place to offer young entrepreneurs a suitable environment to experiment and develop their ideas,” founder of Global Entrepreneurship Network’s (GEN), Jonathan Ortmans, said. 

Moreover, it’s indicated that 82 percent of Egyptians perceive successful entrepreneurs as having high social status and almost 76 percent of Egyptians, mostly youth, perceive entrepreneurship as a good career choice. 

Furthermore, 55.5 percent of the non-entrepreneurs surveyed expressed their interest in starting their own business, a percentage that is double the global average, according to a report published by The Global Entrepreneurship Monitor (GEM). 

But without the support of the Egyptian government, many startups would have never seen the light. There has been an increasing engagement by the Investment Ministry, as well as other governmental institutions, since the inception of the government’s economic reform plan. 

Egypt successfully established many incubators, providing a stepping stone for local entrepreneurs. Bedaya, TIEC – Technology Innovation and Entrepreneurship Center, and Fekretak Sherketak are the top incubators founded by the government, offering funding for new innovative ideas. 

Bedaya 

Bedaya, a governmental incubator, was established by Egypt’s General Authority for Investment and Free Zones (GAFI) in 2009. This incubator can offer up to LE 150,000 (US$9,047) in funds as well as business development services, networking opportunities and manufacturing spaces. 

Though Bedaya is a governmental incubator, it is led by the sector.

According to their website, 60 percent of Bedaya’s fund is allocated to supporting startups from governorates outside of the capital, Cairo. 

The incubation period at Bedaya is a minimum of three months. Bedaya offers funding for 3-5 years in return for equity. But, it also reveals different exit strategies that vary from business to business. 

TIEC – Technology Innovation and Entrepreneurship Center 

Running throughout Upper Egypt and the Delta as well as in its headquarters in Cairo, TIEC is a government entity that specializes in incubating information and communication technology (ICT) startups as part of the governmental plan to develop Egypt’s ICT sector. 

Since its establishment in 2010, TIEC offers fund of up to LE 120,000 (US$7,237) without a share or equity in the company. Its incubation period is 1 year. 

Fekretak Sherketak 

“Fekretak Sherketak” Initiative was launched in September 2017 by Egypt’s Ministry of Investment and International Cooperation to encourage startups and promote the entrepreneurial atmosphere in Egypt. 

According to its website, this incubator is “designed to support and empower the next generation of Egyptian entrepreneurs and contribute to the development of the Egyptian startup ecosystem.” 

Along with funding opportunities, the firm offers program mentorship, training and other necessary tools and resources for local entrepreneurs looking to grow and expand their businesses. 

The program promotes the launch of the Egypt Entrepreneurship Program (EEP) in partnership with Hermes Financial Group and UNDP. 

Emerging businesses have the opportunity to receive LE 500,000 ($30,157) as a fund from "Fekretak Sherketak" in return for 4-8 percent equity as well as a four-month training period. 

Furthermore, the number of private venture capital (VC) firms, accelerators and incubators in Egypt has also been increasing, which indicates a growing interest in entrepreneurship in Egypt. 

These firms include Gesr, Flat6labs, Injaz Egypt, and AUC Venture Labs; they succeeded in putting many brilliant ideas into motion. Egyptian entrepreneurs who like to start or even scale their business can head to any of these incubators or accelerators which offer mentorship, training, office space, and legal support to selected startups. 

Due to Egypt’s evident interest in entrepreneurship, barely a week goes without an Egyptian startup announcing an investment round. Egypt opened doors for many young people to start thinking about ways to innovate, create and control their destinies , unleashing their entrepreneurial potential.

source: egypttoday

Morocco has positioned itself as a top-tier destination for several international firms in various sectors, including energy, tourism, and aeronautics.

The 2019 International Franchise Attractiveness Index ranked Morocco 39 with a significant score of 54. With a list of 131 states, the index listed Morocco as the first attractive business hub in Africa and the 2nd in MENA after the UAE.

Morocco jumped up three places since 2018 when the annual report placed Morocco at 41 with a score of 54.53.

The list shows Morocco competing with some of the international powers, including  France, Spain, Germany, and Australia.

Germany is the first on the list with a score of 25.50, followed by the UK with a score of  26.08, and Canada with a score of 29.58.

Saudi Arabia ranks 42nd on the list with a score of 55.15, while Qatar positioned itself at 59th.

Egypt was listed  51st with a score of 60.53 ahead of Kenya, and South Africa with 54 and 55, respectively.

Tunisia is the 77th on the list.

The index listed Algeria as the 66th with a score of 69.53, Nigeria 81st, and Senegal as 82nd. 

Researchers at the Rosenberg International Franchise Center (RIFC) develop the index by taking into account the attractiveness of 131 counties as “international expansion markets” for US-based franchises.

“This index is generated through a quantitative model that is based on peer-reviewed research and a survey of franchise executives.

The model produces two different index rankings (Balanced Growth and Aggressive Growth) based on a company’s risk tolerance levels,” according to the University of New Hampshire (UNH).

Morocco’s location works as a pillar to attract international investors. The 2019 Investment Climate Statements from the US Department of State said in July that Morocco’s political stability, geographical location, and efforts to build a robust infrastructure, contribute “to its emergence as a regional manufacturing and export base for companies.”

The report also recalled Morocco’s strategy for attracting investors, with several measures in place, including facilitating foreign investment.

The report said that the facilitation is especially relevant in “export sectors like manufacturing, through macro-economic policies, trade liberalization, investment incentives, and structural reforms.”

The report also indicates that Morocco attracts the fifth-most foreign direct investment (FDI) in Africa, with an intention to position itself as a regional business hub due to its status and location and the “tri-regional focal point of sub-Saharan Africa, the Middle East, and Europe.”

source: moroccoworldnews

The Qatar Financial Centre, one of the world's leading and fastest-growing onshore business and financial centres, announced a 21 percent increase in the number of new firms registered under the QFC during H1 (1 January to 30 June 2019) compared to H1 in 2018. This represents nearly 90 new companies joining the platform, compared with 71 last year over the same period. The total number of firms on the QFC platform has exceeded 700 (as of July 2019).

The newly registered companies hail from a diverse range of sectors spanning IT services, advisory and consulting, marketing and brand management, as well as engineering. Holding companies and foreign business councils were also registered with the QFC. In addition to Qatari firms, a great deal of new firms joining the QFC platform have come from Europe and India, and a number of firms have joined from the USA, Australia, Asia and the Mena region.

The QFC has experienced a rapid rise in the number of firms joining its platform. In addition, the QFC has seen a marked increase in international firms looking to establish their operations in Qatar and the region, which is a testament to the stability and attractiveness of Qatar's thriving economy.

According to the 2018 World Economic Forum Global Competitiveness Report, Qatar ranked first regionally in the Global Entrepreneurship Index. Furthermore, the World Bank's 2018 Gulf Economic Monitor ranked Qatar as first for year-on-year GDP growth in the GCC, making the country a prime business-friendly and investment destination for companies interested in setting up in the region.

Yousuf Mohamed Al Jaida, Chief Executive Officer, QFC Authority said: 'The QFC continues to mark new milestones in terms of firms joining our platform. We are pleased that such a significant number of global businesses have chosen the QFC to establish themselves in Qatar and are taking advantage of the wide range of incentives and frameworks offered by the QFC. As one of the world's fastest growing economies, Qatar offers an array of business opportunities in diverse service industries such as digital, media, sports, financial services and more.

Al Jaida added: 'Qatar's economy is prospering and this upward trajectory is expected to continue well into the future. Over the next year, Qatar's growth is expected to rise to 2.6 percent from 1.6 percent in 2018. The QFC plays an active role in developing Qatar's economy by attracting foreign investors to its business platform. We are honoured to be part of national efforts that help diversify Qatar's economy and I am confident that the second half of 2019 will be a bright and successful one for the QFC. We look forward to welcoming even more ambitious companies to the QFC and the State of Qatar.

Raed Al Emadi, Chief Commercial Officer, QFC Authority said: 'The Qatar Financial Centre is continually working towards supporting Qatar's economic diversification by committing efforts to license leading businesses in their fields and enable them to access unique opportunities that the Qatari market has to offer. We are proud that the QFC has crossed the threshold of 700 licensed firms, all of whom have benefited from our world-class services and streamlined registration process.

source: menafn

The country’s growth is expected to accelerate to 2.6% this year from 1.6% in 2018, Kuwait-based banking major NBK said in a recent macroeconomic outlook

Qatar’s non-oil activity has been buoyed by government investment and the country’s growth is expected to accelerate to 2.6% this year from 1.6% in 2018, banking major NBK has said in a macroeconomic outlook.
The country’s growth is driven by a recovery in the hydrocarbon sector output (0.4%) and ongoing gains in non-hydrocarbon activity (4.4%) as the government’s expansive public investments bear fruit, it said.

Over the medium term, as infrastructure projects related to the FIFA World Cup 2022 and work on the broader Qatar National Vision 2030 advances, non-oil growth is expected to moderate to around 4% by 2021, NBK said.

By this time, the private sector should have assumed a greater role in driving diversification through greater-value add — in sectors such as manufacturing, services, transportation and real estate—as per 2018’s Qatar National Development Strategy 2018-2022 (NDS-2), NBK said in its July outlook.

NDS-2 also prioritises raising the average productivity of its local and foreign workers, which partly explains last year’s decision to offer long-term, skilled expats permanent residency and permit 100% foreign ownership across all business sectors. 
The hydrocarbon sector, meanwhile, should get a welcome boost in 2020 from the commissioning of the delayed $10bn Barzan gas production facility, NBK noted.

“This should raise gas output by 12% (2 bncf/d) and drive higher condensates and NGLs volumes. The most significant contribution, however, will come over the medium-to-long term when LNG capacity expands by over 40% to 110mn tonnes per year (mn tpy), with the addition of four new LNG trains by 2024,” NBK said.

Qatar’s fiscal position has strengthened since the authorities began the process of fiscal reform and consolidation (merging ministries, liberalising fuel prices etc.) after the oil price downturn and as energy prices began to recover from their 2016 nadir. Qatar recorded a surplus in 2018 (2.2% of GDP); that should improve further to 3.2% by 2021 amid continued spending restraint and stable energy prices, NBK said. 

“The improvement in government finances will also have a positive bearing on public debt. While the authorities accessed the debt markets in 2018 and early in 2019 — securing favourable rates amid considerable investor demand—to the tune of $24bn, debt levels are expected to fall from 53% of GDP in 2018 to 41% of GDP by 2021,” NBK’s macroeconomic outlook showed.

The external current account (CA) balance, which moved back into surplus in 2017 and reached an estimated 8.3% of GDP in 2018 should remain in surplus over the forecast period. Notwithstanding a slight deterioration in 2019 to 6.4% of GDP on softer oil and gas prices, the CA will benefit in the medium-to-long term from higher gas exports and returns from the Qatar Investment Authority’s overseas assets. 

Qatar’s banking sector, NBK noted, “has overcome the shock” of non-resident capital flight and tighter liquidity associated with the 2017 blockade. Foreign deposits have returned (+29% year-on-year), private sector credit growth is at a near-three year high (+12.6% y-o-y) and overall liquidity has improved.

But, NBK cautioned, volatile energy prices and LNG competition are the main risks Qatar faced.

It said the country faces several challenges including continued sensitivity to volatile global energy prices and capital flows as well as increasing LNG competition (especially from Australia and the US), which could put downward pressure on prices.

source: .gulf-times

Saudi Arabia plans to introduce Hajj Smart ID instead of passports in 2020 in a move to ease the pilgrimage for millions of Muslims in Makkah, Al Arabiya reported.

The new ID will contain the pilgrim’s information and documentation instead of carrying official documents including passports.

The card, which stores each pilgrim’s health information, was used by 150 pilgrims during Hajj in 2019, and it was powered by a battery that runs for up to two years.

Moreover, the Ministry of Hajj and Umrah also developed a smartphone app for smart ID services.

source: mubasher

The worldwide 5G wireless network infrastructure revenue will reach$4.2 billion in 2020, an 89 per cent increase from 2019 revenue of $2.2 billion, said research and advisory firm Gartner in a new report.

Additionally, Gartner forecasts in the report titled “Forecast: Communications Service Provider Operational Technology, Worldwide, 2017-2023, 2Q19 Update” that investments in 5G NRnetwork infrastructure will account for 6 per cent of the total wireless infrastructure revenue of communications service providers (CSPs) in 2019, and that this figure will reach 12 per cent in 2020.

“5G wireless network infrastructure revenue will nearly double between 2019 and 2020,” said Sylvain Fabre, senior research director at Gartner.

“For 5G deployments in 2019, CSPs are using non-stand-alone technology. This enables them to introduce 5G services that run more quickly, as 5G New Radio (NR) equipment can be rolled out alongside existing 4G core network infrastructure.”

In 2020, CSPs will roll out stand-alone5G technology, which will require 5G NR equipment and a 5G core network. This will lower costs for CSPs and improve performance for users.

5G rollout will accelerate through 2020

5G services will launch in many major cities in 2019 and 2020. Services have already begun in the U.S., South Korea and some European countries, including Switzerland, Finland and the U.K. CSPs in Canada, France, Germany, Hong Kong, Spain, Sweden, Qatar and the United Arab Emirates have announced plans to accelerate 5G network building through 2020.

As a result, Gartner estimates that7 per cent of CSPs worldwide have already deployed 5G infrastructure in their networks.

CSPs will increasingly aim5G services at enterprises

Although consumers represent the main segment driving 5G development, CSPs will increasingly aim 5G services at enterprises. 5G networks are expected to expand the mobile ecosystem to cover new industries, such as the smart factory, autonomous transportation, remote healthcare, agriculture and retail sectors, as well as enable private networks for industrial users.

Equipment vendors view private networks for industrial users as a market segment with significant potential. “It’s still early days for the 5G private-network opportunity, but vendors, regulators and standards bodies have preparations in place,” said Fabre.

Germany has set aside the 3.7GHz band for private networks, and Japan is reserving the 4.5GHz and 28GHz for the same. Ericsson aims to deliver solutions via CSPs in order to build private networks with high levels of reliability and performance and secure communications. Nokia has developed a portfolio to enable large industrial organizations to invest directly in their own private networks.

“National 5G coverage will not occur as quickly as with past generations of wireless infrastructure,” said Fabre.

“To maintain average performance standards as 5G is built out, CSPs will need to undertake targeted strategic improvements to their 4G legacy layer, by upgrading 4G infrastructure around 5G areas of coverage.

“A less robust 4G legacy layer adjoining 5G cells could lead to real or perceived performance issues as users move from 5G to4G/LTE Advanced Pro. This issue will be most pronounced from 2019 through 2021, a period when 5G coverage will be focused on hot spots and areas of high population density,” he added.

source: zawya