Translated by: Fairouz Alnajem

May witnessed start-ups' funding decline in the Middle East and North Africa by about 40% compared to April, as the mentioned start-ups earned only $176 M, in return, the number of start-up transactions rose by 31% over the same period.

Geographical Distribution of Start-Ups' Deals in Size and Number

For the first time, Egyptian start-ups raised the largest funding in the Middle East and North Africa. Egyptian start-ups' funding amounted to about $81 M, as a result of 11 transactions held in May, this also placed it at the forefront of the region's start-ups for the number of transactions.

While Saudi and UAE start-ups were ranked second and third with $46 M and $45 M respectively. In the same order, Saudi and UAE companies came in the 9th and 8th respectively in the number of transactions.

The Egyptian startups' lead was influenced by the Paymob transactions, which successfully raised $50 million in a Series B funding round, which is a huge increase in the funding for this year's leading financial services company, with a 135% increase compared to last year.

The ranking of start-ups on the list of the most collectible funding companies for May was also influenced by the big transaction in which financial technology activist Hyperpay collected $36.7 M funding.

For the amount of funding received by Egyptian, Saudi and UAE start-ups, the total amount collected by startups in other countries is no more than $5 M! That is, its share of funding rate for May is about 3%. This obviously indicates the continuous concentration of funding for startups in Egypt, Saudi Arabia and the UAE, which is worth mention as it often creates the false impression of the average size of finance transactions. by excluding other countries' startups, the average transaction size is about $6 M, on the other hand, the average size of the transaction for startups, excluding Egyptian, Saudi and UAE companies, is about $ 360 K!

Sectoral distribution of size and number of startups' deals

The sectoral distribution was not far from the influence of the transactions collected by the aforementioned start-up. While the fintech sector came first with about $ 112 M as a result of 6 funding transactions, the most important of which was Paymob's transaction, which collected to the sector $ 50 M. The second was logistic services, with about $15.7 M followed by the mobility sector with about $12.6 M

Investment Stages in Start-Ups

Early-stage investment has captured about 28% of total start-up financing in May, with 10% increase compared to April. On the other hand, recent-stage investment witnessed a significant decline compared to the same period.

Distribution of transactions by gender

For the second month on row, female-and-male-run start-ups were able to obtain more than 12% of the total start-ups' funding transactions. However, male-run companies continued to dominate the start-ups fundings, reaping 87.4% of the total funding, compared to 0.04% for women-run companies.

Translated by: Pirween B. Sido 

Startups in the Middle East and North Africa succeeded in obtaining investments worth 297 million dollars from 29 deals in April this year. The volume of investments represents a growth of more than 60% compared to the same period last year.

Geographical distribution of the number and size of startups' deals

There is nothing new in April in terms of the geographical distribution of the value and number of deals. Saudi Arabia, the UAE and Egypt, respectively, continue to lead the startup financing scene in the region. These countries collectively reaped a total of $195 million, or more than 65% of the total value deals. In terms of deal distribution, UAE, Saudi Arabia and Egypt have captured about 82% of the total deals, which is a large concentration in terms of number and volume of deals for April compared to previous periods. On the other hand, there has been significant difference in the volume of deals acquired by Saudi companies compared to startups in other countries, reaching more than $195 million. In terms of investment trend in the startups, it has been observed unprecedented increase in the average transaction size, as it recorded more than 10.2 million dollars in April, which is twice the average transaction size for 2021.

Sectoral distribution of the number and size of startups' deals

The sectoral distribution of the volume of deals for startups was affected by a few huge deals, most notably FOODICS, a platform specialized in financial technology and restaurant management. This company raised more than 170 million dollars in April, and given that the company’s specialization is classified as “service software.” This sector took the lead with $171 million from two deals. The e-commerce sector came in second place with $37 million, also affected by the second largest financing deal, in April, of the UAE company Millennial Brand, which raised $35 million. The real estate technology sectors came in the third place, with $20 million in funding, followed by the agricultural technology sector, in the fourth place, which received $18 million in funding. On the other hand, the financial technology sector fell to the fifth place with $9.8 million funding, from 4 deals. Although the financial technology sector came in the fifth place in terms of the volume of deals, it is in the first place in terms of the number of deals, which indicates that financial technology companies have maintained a significant share of deals, in spite of its relative decline compared to other sectors in terms of the volume of deals.

Stages of investment in startups

Although seed and pre-seed financing phases acquired most of the deals of startups in April, with 58% of the total number of deals, the largest volume of financing went to deals in advanced stages, of which the most important is the category (C) financing phase, that is the funding that went to the FOODICS startup, which raised $170 million, as mentioned earlier.

Distribution by gender

Startups founded by men still dominate the startup financing scene in the region. They obtained about 87% of the total deals of startups in April, while the funding obtained by female startups did not exceed the 1%. On the other hand, the jointly managed startups succeeded in obtaining 12% of total funding thanks to the Millennial Brand’s deal.

نجحت الشركات الناشئة في الشرق الأوسط وشمال افريقيا بالحصول على استثمارات بقيمة 297 مليون دولار من 29 صفقة هي حصيلة شهر نيسان/ أبريل من العام الجاري. ويشكل حجم الاستثمارات نمواً بنسبة تتجاوز 60% مقارنة بالفترة نفسها من العام الماضي، بالمقابل تمثل انخفاضاً طفيفاً يقدر بقيمة 2 مليون دولار مقارنةً بشهر مارس/ آذار الماضي.

التوزيع الجغرافي لعدد وحجم صفقات الشركات الناشئة

لا جديد في شهر أبريل/نيسان لجهة توزيع قيمة وعدد الصفقات جغرافياً إذ ما زالت كل من السعودية والإمارات ومصر على التوالي تتصدر مشهد تمويل الشركات الناشئة في المنطقة، حيث حصدت هذه الدول مجتمعة ما مجموعه 195 مليون دولار، أي أكثر من 65% من إجمالي قيمة الصفقات، كذلك على صعيد توزيع الصفقات نجد أن كل من الإمارات والسعودية ومصر قد حصدت نحو 82% من إجمالي الصفقات، وهو ما يعد تركزاً كبيراً لجهة العدد وحجم الصفقات لشهر في نيسان/ أبريل مقارنةً بفترات سابقة. من جهة أخرى يلاحظ الفرق الكبير في حجم الصفقات التي استحوذت عليها الشركات السعودية مقارنةً بالشركات الناشئة في الدول الأخرى، إذ وصل حجمها إلى أكثر من 195 مليون دولار. الملاحظ أيضاً في حركة الاستثمار في الشركات الناشئة لشهر نيسان/ أبريل هو ارتفاع متوسط حجم الصفقة بصورة غير مسبوقة إذ سجل متوسط حجم الصفقة الواحدة أكثر من 10.2 مليون دولار، وهو ما يعادل ضعف متوسط حجم الصفقات لعام 2021.

التوزيع القطاعي لعدد وحجم صفقات الشركات الناشئة

تأثر التوزيع القطاعي لحجم صفقات الشركات الناشئة بعدد قليل من الصفقات الضخمة، أهمها صفقة شركة FOODICS وهي منصة متخصصة بالتقنية المالية وإدارة المطاعم، حيث جمعت هذه الشركة في شهر أبريل/ نيسان أكثر من 170 مليون دولار، وعلى اعتبار أن تخصص الشركة يصنف "برمجيات كخدمة" فإن هذا القطاع احتل مركز الصدارة بواقع 171 مليون دولار من صفقتين. جاء قطاع التجارة الإلكترونية بالمركز الثاني بواقع 37 مليون دولار، متأثراً أيضاً بثاني أكبر صفقة تمويل في شهر أبريل/ نيسان، وهي صفقة شركة Millennial Brand الإماراتية التي حصدت تمويلاً بقيمة 35 مليون دولار. أما المركز الثالث والرابع فكانا من نصيب قطاعي تكنولوجيا العقارات بقيمة 20 مليون دولار يليه قطاع التكنولوجيا الزراعية بقيمة 18 مليون دولار. بالمقابل تراجع قطاع التكنولوجيا المالية إلى المركز الخامس بواقع 9.8 مليون دولار مصدرها 4 صفقات، وبذلك يكون قطاع التكنولوجيا المالية الذي جاء في المركز الخامس من حيث حجم الصفقات، في المركز الأول لجهة توزيع صفقات التمويل، الأمر الذي يشير إلى حفاظ شركات التكنولوجيا المالية على حصة معتبرة من صفقات التمويل، حتى في ظل تراجعه النسبي مقارنةً بالقطاعات الأخرى لجهة حجم الصفقات.

مراحل الاستثمار في الشركات الناشئة

بالرغم من استحواذ مرحلتي التمويل الأولي والتمويل ما قبل التأسيس على معظم صفقات الشركات الناشئة في شهر أبريل/ نيسان، وذلك بنسبة 58% من إجمالي عدد الصفقات، فإن الحجم الأكبر من التمويل ذهب إلى صفقات في مراحل متقدمة، أهمها مرحلة التمويل من فئة (ت)، أي التمويل الذي ذهب إلى صفقة شركة FOODICS التي جمعت 170 مليون دولار كما ذكرنا سابقاً.

التوزيع حسب النوع الاجتماعي

ما زالت الشركات الناشئة المؤسسة من قبل الرجال هي المسيطرة على مشهد تمويل الشركات الناشئة في المنطقة، فقد حصدت في شهر أبريل/نيسان نحو 87% من إجمالي صفقات الشركات الناشئة، فيما لم يتجاوز حجم التمويل الذي حصلت عليه الشركات الناشئة التي تدار من قبل إناث حاجز الـ 1%، لكن الشركات الناشئة التي تدار بشكلٍ مشترك نجحت في الحصول على ما نسبته 12% من إجمالي التمويل وذلك بفضل صفقة شركة Millennial Brand.

نجحت الشركات الناشئة في الشرق الأوسط وشمال إفريقيا بالحصول على 375 مليون دولار موزعة على 81 صفقة في شهر فبراير/شباط، بنسبة نمو عن شهر يناير/كانون الأول الماضي بلغت أكثر من 51%، وبنسبة 134% مقارنةً بالفترة نفسها من العام الماضي.

وتعد حجم وعدد الصفقات التي حصلت عليها الشركات الناشئة في شهر فبراير قياسيةً مقارنةً بالشهر، بل في السنوات الماضية. وهو ما يشير، كما ذكرنا في تقرير حالة الشركات الناشئة عن شهر يناير/كانون الثاني، إلى بداية قوية للشركات الناشئة في عام 2022. ستتعرف في السطور الآتية على موجز سريع لحالة الشركات الناشئة في الشرق الأوسط وشمال إفريقيا في شهر فبراير/شباط 2022.

التوزع الجغرافي لعدد وحجم صفقات الشركات الناشئة

للشهر الثاني على التوالي تتراجع حصة الشركات الناشئة الإماراتية عن مركز الصدارة، وفي هذا الشهر كانت الصدارة من نصيب الشركات الناشئة السعودية التي حصلت على أكثر من 219 مليون دولار موزعة على 23 صفقة، وهو ما يعادل 58% من إجمالي حجم التمويل ونحو 28% من إجمالي عدد الصفقات. اما الشركات الناشئة الإماراتية فقد حلت في المركز الثاني بعد حصولها على نحو 78 مليون دولار من خلال 20 صفقة، فيما حلت الشركات المصرية ثالثاً، بنحو 70 مليون دولار موزعة على 18 صفقة. يظهر توزع حجم التمويل وعدد الصفقات أن الدول الثلاثة الأولى قد حصلت مجتمعه على ما نسبته 98% من إجمالي التمويلات لشهر فبراير، لكن ذلك لا يعني هبوطاً في عدد أو حجم التمويل الذي حصلت عليه الدول الأخرى، على العكس فقد حصلت الشركات الناشئة المغربية على 4 مليون دولار وهو ضعف ما حصلت عليه في شهر الماضي، كذلك الشركات التونسية التي حصلت على 1.4 مليون دولار والتي كانت خارج قائمة التمويلات في الشهر الماضي. مقابل النمو الكبير في عدد وحجم الصفقات على أساس شهر وسنوي، نلاحظ انخفاضاً في متوسط حجم الصفقة التي بلغت في شهر يناير الماضي نحو 5.3 مليون دولار، فيما بلغت في شهر فبراير نحو 4.6 مليون دولار، أي بانخفاض نسبي يبلغ 14%.

التوزع القطاعي لعدد وحجم صفقات الشركات الناشئة

حصلت الشركات الناشطة في قطاع الخدمات اللوجستية على نحو 120 مليون دولار موزعة على 10 صفقات، وهو ما يضع قطاع الخدمات اللوجستية في صدارة القطاعات من حيت التمويل، بنسبة 32% من إجمالي التمويلات. أما في المرتبة الثانية فجاء قطاع التكنولوجيا الغذائية بحوالي 75 مليون دولار موزعة على 8 صفقات، وبنسبة 20% من إجمالي التمويلات، ويعد نمو قطاع التكنولوجيا الغذائية استمراراً لصعوده في عام 2021 حيث بلغت نسبة التمويل التي حصلت عليها الشركات الناشئة في هذا القطاع 26% من إجمالي التمويلات.

أما في المركز الثالث، فقد جاء قطاع التكنولوجيا المالية التي حصل على حصة الأسد من عدد الصفقات في شهر فبراير، حيث بلغ عدد الصفقات في هذا القطاع 19 صفقة بنسبة 23% من إجمالي عدد الصفقات، أما لجهة التمويل فحصلت الشركات الناشطة في مجال التكنولوجيا المالية على 67 مليون دولار.

احتل قطاع التجارة الإلكترونية المركز الرابع ليستمر في تسجيل المزيد من النمو بعد التراجع النسبي في العامين الفائتين، فقد حصلت الشركات الناشئة في هذا على القطاع على أكثر من 45 مليون دولار من خلال 3 صفقات، وهو ما يمثل نمواً بنسبة 61% عن شهر يناير الفائت الذي حصلت فيه شركات التجارة الإلكترونية على تمويل بقيمة 27 مليون دولار، وهو ما وضعها في المركز الثاني في شهر يناير الماضي.

يلي قطاع التجارة الإلكترونية، قطاعات: التنقل، والتكنولوجيا العلمية عالية التقنية، والذكاء الاصطناعي وتكنولوجيا العقارات، بنحو 26، و14، و8، و7 مليون دولار على التوالي.

مراحل الاستثمار في الشركات الناشئة

بالرغم من استمرار تركز صفقات الشركات الناشئة على المراحل المبكرة من الاستثمار (ما قبل التأسيس، والتمويل الأولي) إلا أن مسرعات النمو ما زالت مصدراً مهماً لتمويل الشركات الناشئة في المنطقة، حيث بلغ عدد صفقات التمويل من شركات مسرعات النمو 21 صفقة بما يمثل نحو 26% من صفقات التمويل، وهو ما يضعها في المركز الثاني خلف مرحلة التمويل الأولى بفارق صفقة واحدة (22 صفقة تمويل أولي). أما في المرتبة الثالثة فجاء التمويل في مرحلة ما قبل التأسيس بـ11 صفقة.

التوزع الجندري

لا جديد على صعيد التوزع الجندري نسبياً، فقد حصلت الشركات الناشئة التي تديرها النساء على 1% من إجمالي التمويل، بارتفاع طفيف عن شهر يناير الماضي التي حصلت فيه الشركات الناشئة التي تديرها النساء على نسبة 0.8% من إجمالي نسبة التمويل، أما في الأرقام المطلقة فقد حصلت الشركات التي تديرها النساء على نحو 3.8 مليون دولار، وهو ما يعد نمواً بنسبة 90% مقارنة بشهر يناير الماضي. كذلك يمكن تسجيل نمو في حصة الشركات الناشئة التي يديرها النساء والرجال، حيث حصلت على هذه الشركات على 3% من إجمالي التمويلات، مقارنةً 2.5% في شهر يناير، واخيراً تستمر هيمنة الرجال على إجمالي تمويلات رأس مال المخاطر، فقد بلغت حصتهم نحو 96% من إجمالي التمويلات.

يمكنك التعرف على حالة الشركات الناشئة في الشرق الأوسط وشمال إفريقيا في عام 2021 بالضغط هنا (باللغة الإنكليزية) وهنا (باللغة العربية).

قد يهمك أيضاً: الشركات الناشئة في الشرق الأوسط وشمال إفريقيا..مؤشرات لنمو قوي في عام 2022

المصدر:

ومضة

في مؤشر لنمو قوي للشركات الناشئة لهذا العام، حصدت الشركات الناشئة في الشرق الأوسط وشمال إفريقيا على أكثر من 247 مليون دولار عبر 46 صفقة في شهر يناير/كانون الثاني، بنسبة نمو قدرها 20% على أساس شهري، وبنحو 474% مقارنةً بالفترة نفسها من العام الماضي! فيما يلي موجز سريع عن حالة الشركات الناشئة في المنطقة لشهر يناير/كانون الثاني.

التوزع الجغرافي لعدد وحجم صفقات الشركات الناشئة

بخلاف توزع حجم الصفقات السائد، فإن شهر يناير/كانون الثاني حمله الشركات الناشئة البحرينية لصدارة القائمة من حيث توزع حجم الصفقات، إذ حصدت الشركات الناشئة البحرينية على نحو 110 مليون دولار، أي بنسبة 44.5% من إجمالي التمويل الذي حصلت عليه الشركات الناشئة في المنقطة للفترة نفسها، وهي أعلى نسبة تحصدها الشركات البحرينية على الإطلاق، لكن يجب الإشارة أن صدارة البحرين مصدرها صفقة شركة Rain البحرينية التي بلغت فيمتها 110 مليون دولار، وتعد شركة Rain واحدة من أوائل شركات الوساطة في مجال العملات المشفرة.

أما في المرتبة الثانية فجاءت المملكة العربية السعودية بواقع 55 مليون دولار، فيما حلت ثالثاً مصر بنحو 33 مليون دولار، فيما تراجعت الإمارات إلى المركز الرابع بحوالي 24 مليون دولار، تليها العراق في المرتبة الخامسة بواقع 18 مليون دولار.

على صعيد التوزع الجغرافي، نجد تركزاً كبيراً لتوزع الصفقات في ثلاثة دول، هي: السعودية (15 صفقة)، ومصر (11 صفقة)، والإمارات (9 صفقة)، على التوالي، يشكل هذا التوزع نحو 76% من إجمالي عدد الصفقات. ومن الجدير بالذكر أيضاً هو متوسط حجم الصفقة الواحدة الذي بلغ نحو 5.3 مليون دولار، وهو يساوي تقريباً متوسط حجم الصفقة للنصف الثاني لعام 2021، ويزيد عن متوسط حجم الصفقة لعام 2021 بنحو 13%.

التوزع القطاعي لعدد وحجم صفقات الشركات الناشئة

لجهة التوزع القطاعي تصدرت شركات التكنولوجيا المالية لناحية حجم الصفقات وعددها، إذ حصدت الشركات الناشئة الناشطة في هذا القطاع على 6 صفقات، بلغ حجمها الإجمالي أكثر من 166 مليون دولار، وهو ما يمثل أكثر من 67% من إجمالي حجم الصفقات، وهي نسبة تركز مرتفعة للغاية. ويمكن اعتبارها امتداداً للنمو المتواصل لهذا القطاع في السنوات الثلاث الماضية.

أما في المرتبة الثانية فنجد عودت متواضعة لقطاع التجارة الإلكترونية حيث وصل حجم الصفقات في هذا القطاع إلى نحو 27.9 مليون دولار، موزعة على 5 صفقات. فيما جاء في فجاء قطاع التكنولوجيا الغذائية في المرتبة الثالثة بحوالي 15.6 مليون دولار موزعة على 6 صفقات. وفي المرتبة الرابعة اتى قطاع التطبيقات الفائقة "super-app" بإجمالي تمويل بلغ 10.5 مليون دولار من صفقة واحدة، ويلاحظ هنا النمو في حصة قطاع التطبيقات الفائقة وهو نمو يمكن رصده بدءً من العام الفائت.

مراحل الاستثمار في الشركات الناشئة

تركزت صفقات الشركات الناشئة في شهر يناير على المراحل المبكرة، وتحديداً مرحلتي البذرة وما قبل البذرة، حيث مثلت هاتين المرحلتين أكثر من 60% من إجمالي الصفقات في جميع المراحل.

ومن الجدير بالذكر أن متوسط قيمة الصفقة في مرحلة تمويل البذرة قد ارتفع لنحو 1.15 مليون دولار، بحسب مؤسسة ومضة، وهذا مؤشر على النمو العام لمتوسط حجم صفقات متوسط الشركات الناشئة في المنطقة، على اعتبار أن الصفقات في المراحل البذرية تكون عادةً منخفضة، فإذا ما قورنت بالمتوسط العام لحجم الصفقات البالغ نحو 5.3 مليون دولار، فيكون حجم متوسط الصفقة في مرحلة البذرة يساوي نحو 20% من إجمالي متوسط حجم الصفقات لشهر يناير.

التوزع الجندري

جاء توزع صفقات الشركات الناشئة من حيث التوزع الجندري، متواضعاً لجهة الحصة التي استطاعت جمعها الشركات الناشئة التي تديرها النساء، إذ لم تتجاوز حصة هذه الشركات 1%، في حين حصلت الشركات الناشئة التي يديرها رجال على ما نسبته 96% من إجمالي التمويل الموجه للشركات الناشئة في شهر يناير، أما الشركات التي يديرها فريق مشترك من الرجال والنساء فقد بلغت حصة ما حصلوا عليه من التمويل نحو 5.2%.

يمكنك التعرف على حالة الشركات الناشئة في الشرق الأوسط وشمال إفريقيا في عام 2021 بالضغط هنا.

المصدر:

ومضة

Golden Residency Visa, announced by the Interior Ministry, will be renewed indefinitely

Bahrain on Monday introduced a new permanent residency visa to attract talent and investment, part of a trend in Gulf states to offer more flexible and longer-duration visas amid regional economic competition and as Bahrain works to fix its finances.

Foreigners in Gulf states have traditionally had renewable visas valid for just a few years tied to employment, limiting their stay.

The Golden Residency Visa, announced by the Interior Ministry, will be renewed indefinitely, include the right to work in Bahrain, unlimited entry and exit, and residency for close family members.

"(The visa) is aimed at attracting investors, entrepreneurs, and highly talented individuals who can contribute to Bahrain's ongoing success," the statement said.

The move is part of measures the small Gulf state is taking to resolve its heavily indebted finances. In October, it announced a new economic growth and fiscal balance plan, including major infrastructure projects.

To qualify for the visa, a person must have resided in Bahrain for at least five years and earned an average salary of at least BHD 2000 ($5,306) per month.

Those who own properties above a certain value, and retirees and "highly talented" individuals who meet certain criteria will also qualify.

Gulf neighbour and regional tourism and business hub the United Arab Emirates has, over the past couple of years, introduced longer-duration and more varied visas, and the chance to be granted Emirati citizenship, in a bid to retain professionals and their families.

source: zawya

Some of the major driving factors are the construction sector's growth in the region, increasing demand for cranes, and developing trends toward automation and telematics.

The GCC construction equipment/machinery rental market, which was valued at $3.77 billion in 2020, is poised for solid growth and is expected to reach $5.48 billion by 2026, growing at a CAGR of 6.15% over the next five years, said a report by ResearchAndMarkets.com.

The Covid-19 pandemic hindered the growth of construction machinery/equipment market across GCC region owing to shut down of manufacturing facilities and halt of investments into infrastructure sector.

However, post-pandemic, as economic activities resumed, the market expected to gain momentum during the forecast period, it stated.

Some of the major driving factors are the construction sector's growth in the region, increasing demand for cranes, and developing trends toward automation and telematics.

According to the report, the renting or leasing of construction equipment has been on the rise, owing to an effort to lower the equipment purchase and maintenance expenses.

Apart from the cost, there are also other benefits associated with renting of the construction equipment. Rental companies provide the machinery, along with the required professional machine operators and drivers, thereby ensuring a hassle-free operation, it added.

Moreover, advancement in the rental method of construction machinery such as digital platforms is providing ease to the consumer, which is further also acting as a big factor for the growth of the construction machinery market in GCC countries.

The construction sector is witnessing growth in the GCC countries such as the UAE, Saudi Arabia, Qatar, and Bahrain, due to the arise in the construction projects related to roads, buildings, hotels, stadiums, and other infrastructure.

In recent years, renting of earth moving equipment, such excavators, motor graders and loaders are on the rise due to growing infrastructural projects related to road and highway networks in countries such as Saudi Arabia, owing to the penetration of more construction contractors in the country due to Saudi Vision 2030.

For instance, in February last year, the Saudi Crown Prince Mohammed bin Salman ordered the development of main roads in the heart of Riyadh in order to upgrade the city's transportation system.

The project objective is to transform Riyadh to be a major hub in providing sustainable transportation services as well as logistics services in the Middle East, stated the report.

The programme will work on developing junctions between Riyadh's ring roads and main routes. It will develop 400 km of the road network, by adding new roads and upgrading existing junctions.

source: zawya

Sectors will have to brace for constant changes to remain afloat as evolving trends give rise to new opportunities

Businesses in the UAE are all set for welcoming 2022, equipped to strive forward as new trends unfold. Thankfully, the robust digital adoption in the nation has ensured that the work will continue and remain uninterrupted. The new 4 1/2-day work week — Monday to Friday — starting from January 2022 will help the businesses to align with global markets and will help boost productivity. The tech-enabled industries will have to gear up as demand will only accelerate from key sectors, making it more competitive for existing players. Some of the sectors that will continue to evolve in 2022 are eCommerce, qcommerce, edtech, healtech, fintech, proptech, entertainment, cryptocurrency just to name a few.

The UAE is looked upon as a global role model to handle pandemic in 2020 and 2021 with business sentiment soaring to peak and industries applauding the visionary policies and strategies to not only combat pandemic impact but also ensure that the economy remains competitive enough to boost businesses.

Some of the milestones of 2021, include approval of the Dh290 billion federal budget for five years until 2026 and launch of the industrial strategy “Operation 300bn” to empower and expand the industrial sector. Further, the launch of ‘Projects of the 50’ will establish a new phase of internal and external growth of the state in various economic sectors which should make the Central Bank of the UAE (CBUAE) target of overall real gross domestic product (GDP) of 4.2 per cent in 2022 against 2.1 per cent in 2021 achievable. The mega-event Expo2020 Dubai has been a game-changer and catalysed business opportunities for the UAE and participating nations.

Bharat Bhatia, chairman, and CEO of Conares, said: “The challenges that we faced in the past are simply opportunities to learn, so we can build towards a better future. The economy is getting back to pre-pandemic levels and there is greater opportunity for growth in the construction sector in the UAE. Despite the many ups and downs, we have a lot to look forward to in 2022 as we move forward with hope in our hearts and a smile on our faces.”

Sustainability will continue to dominate in 2022 as businesses will strive to build sustainable growth making resilience a strong code of conduct for individuals and businesses. Businesses will have to brace for constant changes and continue to innovate to remain afloat as the evolving trends give rise to new opportunities too.

Healthcare

Dr Azad Moopen, founder chairman and managing director, Aster DM Healthcare, said: “As per The World Health Organisation, almost half of the world lacks access to essential health services and over 100 million are pushed into poverty due to out-of-pocket health expenses. This stark reality was brought to the forefront during the pandemic very strongly with public healthcare systems across the world collapsing to manage and cater to increasing demands. More than ever the need to make quality healthcare affordable and accessible on time has been felt strongly.”

While it is important to increase healthcare spending as a percentage of GDP by the developing countries, the key to the penetration is digitisation. This will make at least primary healthcare available even in the remotest corners of the world through the ubiquitous mobile phones.

Dr Moopen added: “As we step into 2022, with renewed vigour to deliver our caring mission with a global vision to serve the world with quality healthcare that is affordable and accessible, we at Aster DM Healthcare remain at the forefront of adopting digital technology. We hope this will help us to enable access to millions to our services in a cost-effective way. As a blessing in disguise, Covid-19 has played the role of a catalyst in pushing the sector to innovate and come up with need-of-the-hour solutions.”

Sustainability

Sustainability will be foregrounded in all facets of life in the UAE in 2022. If anything, the pandemic was a supply-chain lesson, which reinforced the need to pursue sustainability on all fronts, particularly in food and water.

Chandra Dake, executive chairman and group CEO of Dake Group, said: “In the new year, as the great reset pans out, we will witness greater activity around Agtech, low-input farming, and decarbonisation in the agriculture sector. I’m glad to be entering the new year with so much to look forward to. All credit goes to leaders, whose proactive measures, crisis response, and science-based targets made today’s upbeat sentiment possible. I speak for all residents and business persons in the UAE when I say that we are grateful for the rulers’ ceaseless work in handling the pandemic. I wish everyone in the UAE a happy new year, and sincerely hope that personal sustainability features in their resolutions as it does in mine.”

Similarly, Dr Mostafa Al Guezeri, managing director, Hitachi Energy, said: “Our goal in 2022 is to advance the world’s energy system to be more sustainable, flexible, and secure. As the pioneering technology leader, we collaborate with customers and partners to enable a sustainable energy future for generations to come. Since the pandemic prompted changes in the energy market through supply line disruptions and inflationary trends, we intend to differentiate that in this competitive sector with burgeoning growth in areas such as electric transportation, renewable energy, and smart infrastructure.

E-commerce

Dubai has ranked as the fastest-growing e-commerce market in the Middle East and North Africa thanks to a very advanced technological infrastructure and the growing number of tech-savvy consumers. Dubai Customs expects e-commerce sales to rise 23 per cent to $27 billion (Dh100 billion), in 2022.

Real estate

The year 2022 will see greater market-driven developments, increased proptech adoption, and retrofitting activities, informs Sanjeevv Bhatia, chairman of SB Group and CEO of Netix Global BV.

“The UAE’s 4.5-day workweek will come into effect on January 1, 2022. So, we are about to witness a paradigm shift from day one. For a global company like the SB Group, this change is consequential — our teams can reduce operational latency and manage time zone differences effectively, adding to overall productivity. This move is one among the many that the UAE leadership has made to enhance the nation’s competitiveness. More power to them as they pursue greater causes in 2022. Real estate, in particular, continues to be the sector generating maximum initiatives and favourable policies from the government,” added Bhatia.

The UAE economy is likely to see an upward movement in 2022. History says that the country that hosts the Expo sees a steady growth in the months to follow. “Around 93 per cent of the UAE’s population is vaccinated, which makes the country a safer place and people are looking forward to visiting the country. This will give a major boost to the economy fuelled by the growth in tourism and investment as the country’s culture is a perfect mix of East and West. All this is majorly due to the exemplary initiatives by the UAE Government,” said Anis Sajan, vice-chairman, Danube Group.

“The UAE has seen quite a few changes like ease in doing business, golden visa for select residents and the recent one being the change in the working week to get in sync with the rest of the world.”

Imran Farooq, Group chief executive officer, Samana Group, said: “The year 2021 was very different and challenging. It would not be wrong to say that it changed the dynamics of the entire world and impacted the entire humanity, created ripple effects on every section of society, the industry, the economy, and the way we work and look at things.”

Cryptocurrency

The Central Bank of the United Arab Emirates (CBUAE) announced in July 2021 a roadmap to integrate a Central Bank Digital Currency (CBDC) into the country’s financial, investment, and trading ecosystem. This followed years of research, analysis, and idea-sharing by the CBUAE and some of the key entities in the UAE’s Crypto ecosystem and forms part of the country’s 2023-2026 strategy to promote digital transformation. Evidently, Crypto has been evaluated as an innovative and important asset class in improving the efficiency and effectiveness of the financial, investment, and trading landscape.

Arshad Khan co-founder and CEO of Arabian Bourse, said: “I see the UAE economy strengthening further in the next year. Several initiatives taken by the government in 2021 will add to improving the economic parameters. Expo 2020 and initiatives in the areas of blockchain and cryptocurrencies, in particular, will add significant strength to the overall growth.”

Jolivette Dela Cruz, Managing Director of Chef Signature

Year 2021 was a challenging year for everyone due to the Covid-19 situation. For me as Entrepreneur, I’ve been through a lot with our businesses. Moreover, before the year ends – the Emirate open us with other opportunities. One is opening the first Franchise of OFF THE HOOK in Sharjah. We have given the chance to be part of the team to operate and to manage OTH Sharjah. My other two businesses are back on track, start moving forward and quietly recovering.

There are Government measures in place to support and to boost this recovery for businesses like stimulus package, the discount offered during license renewal or new licensing and more. There are changes in UAE legislations which are aligned with the international best practices which improve the ease of doing business in UAE. Herewith UAE become appealing with the entrepreneurs .

I believe UAE economic will strongly recover from pandemic in 2022 and surely will be back with it’s pre-pandemic stage. UAE good governance, best practices in handling the pandemic situation and changes in doing business will boost the Emirate’s Economy in 2022. One indicator I have seen is the positive impact of the Expo 2020 with different sectors of business.

Abdul Jebbar PB, Group Managing Director, Hotpack Global

2021 was a challenging year for everyone. The disruption of the global supply chain was difficult to deal with for everyone and the new year is going to bring new challenges with it as well. However, it will also bring new opportunities, so I hope that everyone is able to reflect on the past with humility and move forward in hope of a better future.

Naren Vijay, Executive Vice President – EMEA, Lumenore

The new year is a cause for celebration because it’s always exciting to think about what new innovations and opportunities the next year is going to bring. What makes the new year special is that it serves as a reminder that things will keep changing and that it is up to you to make the most of the opportunities that these changes present.

Abdulla Nalapad, MD Nalapad Investments

The year 2021 was a welcome return to normal for children, parents and teachers. We should all be proud to have shown such resilience in these trying times and understand that we are capable of achieving anything if we want it. We hope to keep that momentum going through to 2022 and not slow down, no matter what life throws at us next.

Mohammed Mahabub Alam, Chairman of Tokyosat Group and Mahabub Perfumes, Dubai

The year 2021 has been a year of recovery, while 2022 will be a year of growth for all of us. The Expo 2020 has helped the overall UAE economy and we are witnessing the benefits of it through increased tourist traffic, higher spending in the retail sector and increased investment in real estate. Dubai International Airport once again has become the world’s busiest airport that shows the increase in passenger movement, thanks to the visionary leadership of the country.

Shahinoor Shah, Director of E-First Global, Dubai, UAE

The year 2021 was a learning period for all of us in the UAE as we all were in growth mode and to adapt to the changes quickly and diversify with changing demands in the market.The 2022 will be a year of growth for the UAE economy, much better than what we have seen last couple of years. The Government of the UAE has opened the doors to so many new opportunities for all over the world.”

Shabbir Merchant, Chairman, Champion Group

The UAE economy is all set to grow in the coming year. Most industries that were impacted during peak Covid times have revived and are getting back on track. Companies are hiring and scaling up their resources to be able cater to growing market demand.Additionally the oil price gains and sustained demand will work to UAE’s economy advantage. I am confident that the economy will grow further by bold initiatives and policies by the UAE government.

2021 in UAE was unprecedented where we witnessed the launch of the world’s greatest show - Expo2020. We were privileged to work on projects at Expo, launched new solutions, invested in the latest machinery, and scaled up resources to gain new clients. More importantly, the pandemic was curbed which helped the overall healthcare scenario in UAE and brought back everyone’s confidence.

Ahmed Shaikhani, President, Pakistan Business Council, Dubai.

2021 was a challenging year but we have witnessed how the UAE and its leadership had showdown with it, overcame and managed the Covid-19 crises so well that the country, especially Dubai, has become a role model in the world in handling such situations. Dubai has done a great by organizing the vaccination drive and sanitizing the entire city.

Covid-19 temporarily affected the Expo plans but did not stop it. Dubai delayed it for a reason - to manage the vaccination drive first. And when the Expo was launched, it went with a big bang and is now an extremely successful event among all international events. Till mid December 2021, Expo 2020 Dubai visit numbers climbed to more than 6.3 million and it is boosting the visitors by a range of entertainment and country pavilion activities.

The new Covid-19 variant is impacting again but I am pretty sure the UAE will overcome it as the country has the experience of handling such crises.

Looking at the success of Expo and revival of Dubai real estate and other industries, I can say with conviction that the year 2022 will be a promising year for every business.

We at Pakistan Business Council always supported the initiatives of the local government and followed the new guidelines from the rulers. Pakistan Business Council works hand in hand with local authorities and ministries, especially Dubai Chamber, for supporting the bilateral trade between Pakistan and the UAE, which has started showing up the results. I, on behalf of Pakistan Business Council, wish a very happy New Year and even greater successes to the UAE and expatriates living here.

source: Zaway

Egypt’s gross domestic product (GDP) is expected to attain pre-pandemic growth levels to reach 6%, the highest projection among all the global financial and credit institutions so far, according to a recent report by Fitch Ratings.

The rating agency is expecting higher foreign direct investment (FDI) inflows.

The agency also said that Egypt’s banks' net interest margins (NIMs) average is expected to be resilient if the Central Bank of Egypt (CBE) would introduce more cuts to the interest rates by an additional 0.5% (50 base points) up to 1.5% (150 base points).

Fitch noted that interest income is highly dependent on sovereign yields, which represent about 65% of the sector’s total interest income.

Fitch’s report said that the impact would vary depending on each bank's asset pricing power, funding structure and ability to re-price liabilities downwards.

The current overnight deposit rate, overnight lending rate, the rate of the main operation, and the discount rate are 8.25%, 9.25%, 8.75%, and 8.75%, respectively.

Egypt’s banks' NIMs are expected to come under pressure in 2021-2022 driven by the extent of potential policy rate cuts, changes in yields on sovereign debt, and any likely shifts in banks' balance-sheet structures.

The sector-average NIM was 4.1 percent in 2020 and has been resilient despite the CBE cutting policy rates by a cumulative 4% (400 base points).

NIMs were supported by yields on the 90-day treasury bills, which were kept high in 2020 at about 13% to attract back foreign portfolio investors following the global market volatility caused by the pandemic, which led to a $17 billion of capital outflows in March-April 2020.

“If yields on treasury bills fell by up to 1.5 percent (150bp), we would expect NIM compression of up to 0.7 percent (70bp). Inflation-adjusted returns on Egyptian sovereign debt are among the highest in emerging market economies. While there may be room for a reduction in yields if inflation remains broadly stable, we believe the CBE will seek to maintain positive real interest rates to retain portfolio inflows," Fitch added.

Furthermore, Fitch expected high single-digit loan growth in the Egyptian banking system in 2021, supported by lower interest rates and the CBE’s measures to boost lending.

Such measures include the CBE extending its EGP100 billion 5 percent-8 percent subsidized rates lending programme to engage more sectors and asking banks to increase small and medium-sized enterprises (SME) loans to 25 percent of their loan portfolios, which was 20 percent previously," Fitch Ratings said.

The agency also predicted low double-digit loan growth in 2022 in case that capex financing raises with recovering GDP growth.

Egyptian banks have higher profitability ratios than other peers in the region, which gives them more room to maintain adequate profitability margins and internal capital generation if interest rates are cut.

“The sector-average return on equity was 23 percent in 2020. For comparison, Gulf Cooperation Council (GCC) banking sectors have average returns on equity of 10 percent up to 17 percent and average NIMs of 2.3 percent up to 3.5 percent. Profitability is a rating strength for Egyptian banks and NIM compression, provided it is moderate, is unlikely to trigger viability ratings downgrades," Fitch concluded.

source: zawya