Qatar’s flourishing construction sector is projected at an impressive QAR210.01bn ($57.68bn) this year, industry analysts revealed, with forecasts predicting an increase to QAR325.03bn ($89.27bn) in the near future.

Global research firm, Mordor Intelligence, anticipates the Gulf nation’s construction industry to demonstrate a strong compound annual growth rate (CAGR) of 9.13% by 2028.

The newly released study emphasised the contributing factors to the thriving market, which include a blend of commercial, residential, industrial, and infrastructure projects, along with energy and utility developments.

The researchers highlighted that the country’s reliance on European suppliers and manufacturers for mechanical, electrical, and plumbing materials has spurred the search for alternate providers due to European supply shortages.

This has inevitably impacted pricing and led to reconsiderations of existing contracts and purchasing orders.

“For mechanical, electrical, and plumbing items, Qatari contractors, are particularly dependent on European suppliers and manufacturers; hence, a European supply deficit forced Qatari contractors to look for alternate suppliers”, the report stated.

“This affected the prices of the goods and raised questions about the cancellation of purchase orders and the termination of existing contracts.”

However, the country’s relentless investments and projects in the past years paved the way for it to bounce back.

World Cup impact

Despite the challenges, Qatar’s successful hosting of last year’s World Cup has had an influence on the industry, setting the stage for future major infrastructural and industrial projects.

This year, Qatar is set to dedicate QAR9.83bn ($2bn) towards the ambitious 2050 transportation master plan, underlining the nation’s commitment to improving infrastructure and expanding its leisure industry.

The nation’s track record of mass projects, ranging from the Doha metro, universities, healthcare facilities, museums, to entirely new cities like Msheireb and Lusail, bears testament to the growing strength of its construction market.

This assertion is further reinforced by the impressive array of stadiums that were built for the region’s first World Cup tournament.

In addition, the government’s significant investment of QAR53.9bn ($14.80bn) for infrastructural advancements, as outlined in the 2021 budget, demonstrates the critical role of state authorities in bolstering the regional construction sector.

“The government aims to develop infrastructure and diversify the economy by moving away from its dependence on the oil and gas sector. In efforts to diversify the economy, Qatar has opened economic free zones attracting companies from around the world,” state the analysts.

The recent implementation of laws governing public-private partnerships (PPPs) is anticipated to lure private sector investments in infrastructure, education, and healthcare projects, thereby driving industry growth over the forecast period.

Source: Doha News

Reports, newspapers, and international economic magazines suggest that the major economies in the world will experience a slowdown in growth. According to a published report by the United Nations Conference on Trade and Development (UNCTAD), the world is heading towards a long-term recession unless monetary and fiscal policies that control some advanced economies change quickly. The World Bank also warned that the global economy for 2023 is at risk, with high inflation rates and interest rates, decreased investment, and ongoing war in Ukraine. The International Monetary Fund (IMF) expects economic growth to decline to 2.7% in 2023 compared to 3.2% in 2022. This global slowdown could lead to a decrease in gross domestic product (GDP) that is less than what it was before the coronavirus pandemic and will cost the world more than $17 trillion in lost productivity. The Fund says that growth expectations for 2023 will be the lowest since 2001. The Chief Economist at the Fund, Pierre-Olivier Gourinchas, warned in statements to the British Financial Times that there is a possibility that global growth could drop to less than 1% in 2023.

The major economies of the United States, Europe, and China are experiencing low growth expectations. According to the World Bank, the United States will face a growth rate of no more than 1% in 2023, while growth in Europe is expected to approach zero, and China's growth is expected to be no more than 4.3% (Figure 1). It is also expected that the unemployment rate in the USA will be around 3%, with a continuing increase in the current account deficit to more than $800 billion in 2023.

Although the discussion is about how all regions will be affected by this recession, the alarm bells are ringing louder for developing countries, especially with the worsening problem of debt. The report also cites another reason for economic concern, with the increasing impacts of climate change, where losses and damages are increasing within weak economies that lack the financial resources to deal with disasters.

The UNCTAD warns that excessive monetary tightening and insufficient financial support could expose the economies of developing countries to further consecutive crises. It is expected that middle-income countries in Latin America and low-income countries in Africa will suffer the effects of this slowdown, with the possibility that the problem of debt default will surface.

The Director of the International Monetary Fund, Kristalina Georgieva, warned, in her statements, that the global economy will witness difficult conditions in 2023, as economic stagnation and continued high levels of inflation will be its most prominent feature, and this is at a time when its engines, that is, the American, Chinese and European economies, have witnessed a significant slowdown since the last quarter in the last year.

These warnings align with other bleak forecasts released by a number of international financial institutions and European central banks, which also see the likelihood of a global economic recession very possible in 2023.

The billionaire and American investor Stanley Miller, who gained fame in 1992 after betting on the collapse of the British pound and making gains of up to ten billion dollars, says "If we don't see an economic recession in 2023, it will be like a miracle," because the expected growth scenario for next year will be 2.4% at best and could slow down to 1.2%, the same level of growth that existed during the global financial crisis in 2008.

War in Ukraine

The war in Ukraine is weighing heavily on the global economy, particularly in regards to grain supplies. The outbreak of war has led to higher prices for food and fertilizers, harming importers and prompting many countries to impose restrictions on exports. Around 345 million people are at immediate risk of severe food insecurity as a result. According to the World Food Programme, over 828 million people around the world go to bed hungry every night. The countries most affected are those that depend on food imports from Ukraine and Russia, amounting to 48 countries, mostly low-income countries[1].

Source: International Monetary Fund data.

Inflation rates and global debt

Inflation is considered a global phenomenon that has been exacerbated by the war in Ukraine and the disruption of global supply chains following COVID-19 closures in China. The International Monetary Fund (IMF) expects consumer prices to rise to record levels in emerging and developing economies, reaching 10% in 2022 before dropping slightly to around 8.1% in 2023. Although the gross domestic product (GDP) exceeded $100 trillion for the first time in 2022, growth is threatened to come to a halt according to the Centre for Economics and Business Research (CEBR) in Britain. Also, raising interest rates will increase the burden of new and existing loans, lead to a decline in overall demand and investment, and affect productive sectors and the labor market. It is expected that households and businesses around the world will face strong economic difficulties due to rising commodity prices, especially food and energy, and with continued central bank interest rate hikes to curb inflation, as well as supply chain crises and rising energy and food prices due to the war in Ukraine. In this context, statistics from the IMF show that Arab countries in the Middle East, Asia, sub-Saharan Africa, and Latin America are suffering from higher inflation rates than other countries.

In light of these circumstances, the issue of debt reemerges, as the IMF warns of the worsening global debt, which has exceeded 303 trillion dollars, or the equivalent of 350% of the global GDP. This will result in more cases of default in poor countries, with Sri Lanka and Lebanon serving as examples of this deficit.

According to World Bank data, the external debts of low- and middle-income developing countries exceeded 9.2 trillion dollars by the end of 2021, which is more than twice its value a decade ago.

Global Trade and Oil

The decline in global economic growth means that global trade is likely to decline, which will affect foreign investment and thus emerging economies. This is not to mention the possibility of trade wars between industrialized countries and their repercussions on emerging economies. Regarding the impact of the recession on the economies of countries, it is related to the degree of openness of these economies to the global economy. The more open they are, the more vulnerable they are to the consequences of the economic crisis. Moreover, countries that rely on oil exports in their economies are more vulnerable to the effects of the economic crisis, especially when it comes to oil prices.

After oil prices witnessed a significant increase due to the ongoing war in Ukraine, reaching its highest rate in 2022, which is around $100 per barrel, it is expected to decrease during 2023 to below $100 and is expected to decrease further if the economic recession continues, reaching below $70 per barrel by 2025. In general, oil-producing countries remain better off than other countries during the recession period due to the oil revenues that enable them to implement programs to support various sectors to counter the effects of the recession.

Arab Countries' Economies

While the major economies of the world are experiencing a slowdown in growth, including China, the European Union, and the United States, some unexpected Arab countries are achieving a breakthrough in economic growth. Comparing economic growth data for the Arab region in 2022 and 2023 reveals significant disparities in growth expectations between the two years, with clear variations among countries.

In 2022, several Arab countries, especially those in the Gulf Cooperation Council, Egypt, and Iraq, experienced relatively high growth, likely due to the post-COVID-19 recovery period. However, in 2023, significant changes are expected due to recent developments, as previously discussed.

Some countries, such as the Gulf Cooperation Council countries, especially Kuwait and Saudi Arabia, are expected to experience a recession. On the other hand, other countries will experience growth at different rates, particularly Libya, which is expected to lead Arab countries in achieving an unexpected breakthrough in growth, with a growth rate of approximately 18%. Djibouti and Mauritania will follow with growth rates of around 5%, followed by Egypt, the United Arab Emirates, and Iraq (Figure 2).

Unemployment is considered one of the main challenges facing Arab economies. According to World Bank data, there is significant variation in unemployment rates in Arab countries compared to major world economies. According to the ESCWA report, unemployment rates among the Arab population are the highest in the world, with Palestine and Jordan recording the highest unemployment rates in 2021 at around 26% and 24% respectively, followed by Sudan at 21%. According to the findings of several international economic reports indicate, the current economic situation in non-oil Arab countries is very poor today and does not seem to improve in the future unless effective national policies and favorable international conditions are available. On the other hand, it is expected that Egypt, Bahrain, and Kuwait will record much lower rates of 6%, 4%, and 1%, respectively (Figure 2).

Source: International Monetary Fund data.

It is expected that the unemployment rate in the European Union will reach around 7%, with Greece and Spain recording relatively high rates of 14% each, while it will reach around 10% in Italy and around 7% in France, Belgium, and Sweden. In the United Kingdom, it is expected to reach around 5%. On the other hand, both the United States and Canada are expected to record rates of 4% and 7% respectively, while this rate will reach around 3% in both Germany and Switzerland (Figure 4).

Despite the pessimistic economic forecasts, the economies of the Gulf Cooperation Council (GCC) countries have continuously grown over the past two decades, achieving significant leaps in GDP at current prices for all GCC countries combined from less than $400 billion in 2000 to more than $2 trillion in 2022, making the GCC economies among the world's top 10 largest economies. This significant achievement is driven by ambitious economic recovery plans, such as Saudi Arabia's Vision 2030 mega-projects, Dubai's Expo 2020, Qatar's investments related to the World Cup, as well as economic diversification programs.

 Source: International Monetary Fund data.

The Impact of Recession on Daily Life

During recession the important question remains about the impact on daily life. Climate shocks, regional conflicts, and the spread of pandemics have disrupted food production and distribution, as well as an increase in the cost of food. Layoffs are likely to be higher and more widespread, and employers may hold back on hiring, leading to a small to medium increase in unemployment rates. However, not everyone will be equally at risk. People vary in their exposure to the impacts of a recession based on their specialties and experience. Those with high demand for their specialties - whether they are front-line employees, IT engineers, or top-level executives - are likely to secure a job or keep their current positions and even receive salary increases and bonuses.

Source: International Monetary Fund data.

Summary

Reports and various sources indicate that major economies in the world, including China, the European Union, and the United States, will experience a slowdown in growth as a result of the blows that the global economy has received over the past two years, starting with the lockdowns due to the coronavirus pandemic, passing through the Russian-Ukrainian war, and currently, the likelihood of the global economy drifting towards recession due to inflation and interest rate hikes. The World Bank has warned of this recession amidst rising inflation rates and interest rates, declining investment, and the ongoing war in Ukraine. The International Monetary Fund expects economic growth to decline to 2.7% in 2023 compared to 3.2% in 2022, which is a global slowdown that could cost the world over $17 trillion in lost productivity.

Accordingly, households and companies around the world are expected to face strong economic difficulties. There are also expectations of a worsening of global debt, which has surpassed $303 trillion, leading to more cases of defaults in poor countries.

Regarding oil, after oil prices experienced a significant increase due to the ongoing war in Ukraine, it is expected to decrease to below 100 during 2023. Generally, oil-producing countries remain in a better position than other countries during the recession due to high oil revenues.

On the other hand, Arab economies have shown variation in growth rates. While some Arab countries will experience a recession after the post-COVID-19 boom, such as Gulf Cooperation Council countries, especially Kuwait and Saudi Arabia, there are Arab countries that will achieve significant growth, such as Djibouti, Egypt, Iraq, and Mauritania, with Libya expected to achieve a breakthrough in economic growth of up to 18%. In any case, despite the pessimistic economic expectations, Gulf Cooperation Council economies have grown continuously over the past two decades and achieved significant leaps, surpassing the trillion-dollar GDP threshold in 2022. Finally, in view of the pessimist economic growth expectations, there is an urgent need for economic programs to tackle the negative effects of the recession and mitigate its impact on poor households and small and medium enterprises.

Recommendations to confront the recession

The role of governments and policy makers is crucial in facing difficult economic times. The measures taken by the government will depend on the specific causes and characteristics of the recession, but the goal of these measures is to stabilize the economy, support individuals and businesses, and promote economic growth. Governments can play a role in mitigating the effects of a recession through a number of economic policies, including:

• Fiscal policy: Governments can use fiscal policy, such as increasing government spending or tax cuts, to stimulate demand and boost economic activity. Fiscal policy should target protecting the most vulnerable groups through targeted and temporary transfers, investing in enhancing productivity, and investing in human capital, digital transformation, green energy, and diversifying supply chains.
• Monetary policy: Central banks can use monetary policy, such as lowering interest rates, to make borrowing cheaper and stimulate economic activity (At a time when the economy is suffering from inflation, it will be difficult to use this policy).
• Infrastructure investment: Governments can invest in infrastructure projects, such as roads, bridges, and public transportation systems, to create job opportunities and stimulate economic activity.
• International cooperation: Governments can work together through international organizations to coordinate efforts and provide support during a recession, and to promote international trade to increase exports and stimulate economic activity.

For individuals and companies, here are some possible strategies to cope with a recession:

1- Cost-cutting: Review expenses and identify areas where spending can be reduced, especially non-essential expenses, and renegotiate contracts.

2- Increasing savings: Establish an emergency fund to help cope with financial difficulties.

3- Diversifying investments: Consider a diversified portfolio that includes both stocks and bonds to reduce overall risks.

4- Debt management: Prioritize paying off high-interest debts and consider repayment methods or renegotiating them to reduce monthly payments.

5- Embracing technology: Embrace new technologies and innovations to improve efficiency, productivity, and increase revenue.

6- Focusing on skill-building: Invest in personal and professional development to increase marketable skills and competitiveness.

7- Strengthening relationships: Strengthen relationships with customers, suppliers, and other stakeholders to increase flexibility and support during difficult times.

8- Seeking government support: Look into government programs, tax exemptions, or other financial incentives to help manage the recession period.

[1]International Monetary Fund: https://www.imf.org/ar/Blogs/Articles/2022/09/30/global-food-crisis-demands-support-for-people-open-trade-bigger-local-harvests.

The Arab Entrepreneurship Summit, the 1^st summit for Small and Medium Enterprises (SMEs) in the Arab world, were concluded in Amman under the auspices of Crown Prince Hussein bin Abdullah II and the presence of Jordanian Prime Minister Dr. Bishr Al-Khasawneh, representing the Crown Prince. The summit was organized by the United Nations Economic and Social Commission for Western Asia (ESCWA) in cooperation with the Jordan Enterprise Development Corporation (JEDCO). This summit was organized during from October 30 to November 1, under the title: Opportunities Beyond Borders.

This summit comes after ESCWA launched last April an e-Commerce Acceleration Programme (eCAP) to enable small and medium enterprises to take advantage of the opportunities offered by the digital economy, and to contribute to creating a vibrant environment for entrepreneurship in the Arab region. The program aimed to build the capacities of 100 small and medium enterprises from the Arab region to move to online selling, either by developing their own e-commerce websites, or by selling in the markets that already exist on internet.

The importance of the summit stems from the fact that it constitutes support for entrepreneurship for small and medium enterprises in the Arab region, at a time when entrepreneurship has become a global trend, especially in view of the enormous youth energy that the Arab world enjoys and the structural problems that the labor market suffers from. According to UNICEF figures, children and youth make up about half of the population of the Middle East and North Africa (the Arab region), which is home to one of the highest youth unemployment rates in the world.

Statistics of the International Labor Organization show that there are more than 14 million unemployed in the Arab countries, where the youth unemployment rate in the Arab region is almost double the global rate, and it has grown at a rate of 2.5 times, which is faster than the global average between 2010 and 2021. The region needs to create more than 33.3 million new jobs by 2030, to reduce the overall unemployment rate to 5 percent and to be able to absorb the large number of young people entering the labor market and stabilize youth unemployment rates (unicef).

Small and medium-sized enterprises are considered one of the most hiring projects for workers, and they help reduce unemployment rates, which have risen recently due to the prevailing political conditions in the Arab countries.

According to a study conducted by the Arab Youth Center, under the title “Priorities of Arab Youth”, on the eve of the International Youth Day, and reviewed the priorities of the young people surveyed in 21 Arab countries, strengthening sources of income and providing job opportunities was among the priorities of young people, as the youth’s suggestions included the need to provide financial incentives for those wishing to establish private projects and start-up companies, at a rate of 45 percent of the number of participants (arabyouthcenter).

With more than 135 million internet users in the Arab world, a new generation of tech-savvy entrepreneurs is emerging. This region is expected to record strong growth over the coming decades in terms of both population and GDP (refer to our previous article: Emerging Arab World and Business Opportunities in spite of the Political Turmoil SAE).

According to a report of the Economic and Social Commission for Western Asia (unescwa), the population size is growing rapidly in the Arab region. The total population of the region has more than tripled from 123.5 million in 1970 to 284.1 million in 2000 and 398.5 million in 2015. The Arab region is home to about 5.4 percent of the world's total population in 2015, compared to only 3.3 percent in 1970 and 4.6 percent in 2000. According to this report, these demographic trend is upward for the period 2015-2050, and population of the region is expected to exceed 520.7 million by 2030. At the same time, the real GDP is expected to grow during the coming period (on the basis of purchasing power parity) at amazing rates (we had talked about in a previous article, SAE).

Small and medium-sized companies constitute more than 90% of all companies in the Arab world, and they provide new job opportunities for young people, and they are considered an effective engine for change and development. However, despite the improvement witnessed by these companies in recent years, they still face great challenges that hinder their development.

The summit aimed to bring together the various official and private bodies in the Arab countries to help Arab small and medium enterprises to access regional and international markets, deal with various financing sources, benefit from regional and international networks, and increase their ability to expand in foreign markets.

This summit brought together about 650 participants, including entrepreneurs, owners of small and medium companies, representatives of financing organizations, as well as representatives of governments from across the Arab region, in addition to regional and international decision makers from the public and private sectors.

The summit was inaugurated by the Jordanian Prime Minister, Bisher Al-Khasawneh, who emphasized the interest that the Jordanian government attaches to supporting small and medium enterprises.

In his opening speech, Youssef Al-Shamali, Minister of Industry, Trade and Supply and Minister of Labor, Chairman of the Jordanian Corporation for the Development of Economic Enterprises, stressed the importance of small and medium-sized companies, and said that this summit is an attempt to use the most effective means to support small projects in the Arab region, pointing out the role of these projects in supplying the national economies in the Arab region.

Al-Shamali pointed out that these small companies constitute more than 70% of the available jobs in the region and that they face many challenges related to financing. For example, the percentage of banking facilities provided to small and medium enterprises is limited to 9% of the total banking facilities.

He also stressed the importance of the summit to facilitate dialogue on the most effective ways to enable small and medium enterprises to access regional and global markets, and benefit from the opportunities provided by international networks and build institutional capacities among Arab entrepreneurs.

The Under Secretary General of the United Nations and Executive Secretary of ESCWA, Rola Dashti, affirmed that the summit comes as a bridge between decision and policy makers and entrepreneurs looking to advance our societies to find ways to achieve the desired development goals.

She also confirmed that the contribution of small enterprises to the GDP in the Arab region is less than 10% and that most of these enterprises operate in the informal sector, stressing the role that small and medium enterprises can play in achieving higher economic growth and reducing unemployment among youth.

The main idea of the summit is cross-border opportunities. The organizers believe that ​​cross-border opportunities and connection of these projects and their products to global supply chains, will support these projects and their continuity and growth over longer periods of time.

Over the course of three days, the summit dealt with several topics, including environmentally friendly (green) entrepreneurship, facilitating the access of entrepreneurs to global markets, access to financing, and emerging technology trends. The means that can be used to strengthen partnerships and help Arab small and medium enterprises to access regional and international markets were discussed, in addition to mobilizing various financial resources, not to mention, discussions between governments and the private sector to develop frameworks for improved policies related to small and medium enterprises.

This summit constituted a regional platform for meeting local and international leaders from the private and public sectors, and a good opportunity to influence decision-makers in order to draw up the necessary policies and strategies to support small and medium enterprises.

During the summit, 20 main sessions and ten side activities were held, including an exhibition of many leading and emerging companies from the Arab world.

The first day witnessed series of specialized panel discussions on market access opportunities and global value chains. Examples of successful and inspiring projects were presented, such as Kuwait Flowered represented by Abdulaziz B. Al Loughani, Founder, and the Global Cargo, Travelers Services and subsequently Global Group, represented by Bahraini entrepreneur Huda Janahi. Which managed to become transboundary and expanded regionally and internationally, and it has received many praises and awards from regional and international organizations.

While Fabio Russo, Chief SME Development and Job Creation Unit, UNIDO, focused on the readiness of infrastructure for small and medium enterprises and the availability of electronic services.

On the other hand, Dana Al-Zoubi, Secretary General of the Jordanian Ministry of Industry, Trade and Supply, focused on the need to provide specialized programs for guidance and counseling for emerging projects to help them face the challenges and overcome the difficulties they encounter during the foundational stages.

The discussion touched on the importance of financing and stimulating entrepreneurial projects through the allocation of soft loans with easy terms, in a session attended by Nadia Al Saeed, CEO of Bank al Etihad, and Chair of Endeavor Jordan, and Abdullah Al-Awadi, Head of Change Management at Kuwait International Bank, and Amer Bukevik of the Islamic Development Bank. The sessions were also attended by Rafik Feki from Industrial Development Officer, Division of Digital Transformation and AI Strategies, UNIDO, and Rana Nawas, founder of the podcast 'When Women Win', Palestine. The sessions stressed the need to unify regulations in Arab countries, to facilitate trade and export operations, especially electronic payment operations and legislation regulating electronic commerce.

Abdullah Al-Awadi, from Kuwait International Bank, said that the bank found a gap in the Kuwaiti market in the early stages of small and medium enterprises, as the gap was bridged by establishing a center that supports entrepreneurs in the first stages of their projects to increase their chances of success, stressing that the importance of this conference in allowing the gathering all the pioneers and economic investors face to face to be able to communicate properly.

The second day included various workshops, starting with a session on opportunities for small and medium enterprises to adapt to the green environment, with the participation of international institutions from Switzerland (Johannes Heeb, Founder of Seecon International GmbH), Belgium (Lieve Fransen, Co-founder of Platform for Transformative Technologies), Germany (Aline Bussmann, Green Businesses Consultant, Germany) (Katja Muelheim, CEO of Prestel & Partner, Germany), Spain (Mohamed Wageih, PRIMA Secretariat Project Office), active in the environmental field. In another session, there were discussion about special programs to support small and medium enterprises, in which Fares Akkad, Regional Director for META in the Middle East, spoke. Mirna Sleiman, Chief Executive Officer of Fintech Galaxy, Lebanon, and Ramez El Serafy, CEO at Flat6Labs, Egypt, and Adi Ghuneim, Director of Governate Development Fund, from Jordan Enterprise Development Corporation.

In addition to the sessions and discussion panels, three specialized workshops were held on capacity building and exchange of experiences, in cooperation with specialized experts from the World Trade Center (ITC), the University of Cambridge and the Jordan Enterprise Development Corporation.

Al-Wessam International for Electronic Marketing was among the participants in the summit. It is a rising company working to promote Palestinian products in international markets through its brand “Ard Al-Khair” (https://ardalkhair.ch), with an office in Switzerland, it is looking forward to becoming a marketplace for Palestinian products and a gateway for doing business between Palestine, Switzerland and Europe, though helping Palestinian products to access global markets.

The summit included an exhibition for about 100 small and medium-sized companies to enable them to display their products and facilitate the exchange of experiences, networking, and strengthening partnerships. It was found that many of the participating projects are related to the environment, which indicates that Arab youth are aware of environmental issues and climate change, and that donors tend to support this type of project.

Donna Natural from Egypt was among the exhibiting companies. It seeks to enable women to feel good and express themselves by helping them take care of their skin and look decent, by creating a natural dry shampoo to clean hair and prevent damage due to frequent use of water (www.donnanatural.com). Another company, Sefpro, Egyptian, that specializes in textiles and clothing products made of Egyptian cotton. The company has branches in both the UAE and the United Kingdom. Its products are certified by Fairtrade and Gots. Another, Tia for Development and Management Consultancy Company, from Yemen, is specialized in developing humanitarian work and works on preparing humanitarian, social, economic and environmental studies and research, in addition to evaluating humanitarian projects (www.tiadsc.com).

It was noted that there are many companies, especially in the field of electronic commerce, educational technology and green technology. The Entrepreneurship Summit concluded with commitment to give financial support to SMEs by the partners and supporters of the summit and the United Nations Economic and Social Commission for Western Asia (ESCWA), a commitment of more than $130 million.

In conclusion, we believe that holding such conferences at the Arab level is important, and that the efforts being made to improve the business environment and support entrepreneurship in the Arab countries are exactly what the Arab world needs in light of these difficult times in the region.

In recent years, many Arab governments have already introduced regulatory reforms aimed at improving business environments, but there is more that can be done to reach the desired goals and create an environment that attracts entrepreneurship, especially in the digital field, such as removing barriers that prevent cross-border trade, improving the logistical environment between Arab countries, providing access to high-speed Internet services (broadband) for all residents, especially in rural areas, spreading digital payment systems, reforming electronic commerce regulations and consumer protection (look at the World Bank report on Middle East and North Africa[1]). There is also a need to accelerate the creation of a unified Arab market and supporting the competitiveness of small and medium enterprises to improve their chances of survival in light of the fierce competition they face on the international markets (read our article[2]).

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[1] World Bank, Middle East and North Africa Economic Update (read).

[2] For more information, please refer to our previous article: Emerging Arab world and business opportunities in spite of the political turmoil (read).

اختتمت فعاليات القمة العربية لريادة الاعمال في عمان برعاية ولي العهد الأمير الحسين بن عبد الله الثاني وحضور رئيس الوزراء الاردني الدكتور بشر الخصاونة مندوبًا عن ولي العهد، التي نظمتها لجنة الأمم المتحدة الاقتصادية والاجتماعية لغربي آسيا (الإسكوا) بالتعاون مع المؤسسة الأردنية لتطوير المشاريع الاقتصادية (jedco) خلال الفترة من 30 تشرين الأول/اكتوبر ولغاية 1 تشرين الثاني/نوفمبر، تحت عنوان: فرص عابرة للحدود.

تأتي هذه القمة بعد أن أطلقت الإسكوا في إبريل/نيسان الماضي برنامجًا لتحفيز انتشار التجارة الإلكترونية (eCAP)، لتمكين المشاريع الصغيرة والمتوسّطة في ظل النموّ الذي يشهده الاقتصاد الرّقمي، والمساهمة في إنشاء بيئة حيويّة لريادة الأعمال في المنطقة العربيّة. واستهدف البرنامج بناء قدرات 100 شركة صغيرة ومتوسطة من المنطقة العربية للانتقال إلى البيع عبر الإنترنت، إما عن طريق تطوير مواقع التجارة الإلكترونية الخاصة بها، أو عن طريق البيع في الأسواق الموجودة بالفعل على الشبكة العالمية.

تأتي أهمية المؤتمر من كونه يشكل دعما لريادة الأعمال للمشاريع الصغيرة والمتوسطة في المنطقة العربية، في الوقت الذي أصبحت فيه ريادة الأعمال تشكل توجها عالميا، خاصة بالنظر الى الطاقة الشبابية الهائلة التي يتمتع بها العالم العربي والمشكلات الهيكلية التي يعاني منها سوق العمل. وبحسب ارقام منظمة اليونيسيف يشكّل الأطفال والشباب حوالي نصف سكان منطقة الشرق الأوسط وشمال إفريقيا (المنطقة العربية) وهي موطن لأعلى معدلات البطالة بين الشباب في العالم.

تبين إحصاءات منظمة العمل الدولية بان هناك اكثر من 14 مليون عاطل عن العمل في الدول العربية، حيث يبلغ معدل بطالة الشباب في المنطقة العربية ضعف المعدل العالمي تقريبًا، وقد نما بمعدل 2,5 مرة، وهو أسرع من المتوسط العالمي بين عامي 2010 و2021. وتحتاج المنطقة إلى خلق أكثر من 33.3 مليون فرصة عمل جديدة بحلول عام 2030، لخفض معدل البطالة الإجمالي إلى 5 في المائة ولتكون قادرة على استيعاب العدد الكبير من الشباب الذين يدخلون سوق العمل وتحقيق استقرار معدلات بطالة الشباب (المصدر).

تعتبر المشاريع الصغيرة والمتوسطة واحدة من أكثر المشاريع توظيفا للعمالة وهي تساعد في الحد من معدلات البطلة التي ارتفعت مؤخرا جراء الظروف المتغيرة التي تشهدها البلدان العربية.

ووفقا لدراسة قام بها مركز الشباب العربي، تحت عنوان "أولويات الشباب العربي، عشية اليوم العالمي للشباب، واستعرضت أولويات الشباب الذين شملهم الاستطلاع في 21 دولة عربية، جاء تعزيز مصادر الدخل وتوفر فرص العمل ضمن أولويات الشباب، حيث شملت اقتراحات الشباب ضرورة تقديم حوافز مادية للراغبين بتأسيس مشاريع خاصة وشركات ناشئة بواقع 45 في المئة من عدد المشاركين (المصدر).

ومع وجود أكثر من 135 مليون مستخدم للإنترنت في العالم العربي، يظهر جيل جديد من رواد الأعمال المتمرسين في مجال التكنولوجيا. ومن المتوقع أن تسجل هذه المنطقة نموًا قويًا خلال العقود القادمة من حيث عدد السكان والناتج المحلي الإجمالي (يمكن الرجوع الى المقال الذي نشرناه في السابق: العالم العربي الناشئ وفرص الأعمال على الرغم من الاضطرابات السياسية - Emerging Arab world and business opportunities in spite of the political turmoil للمزيد).

ووفقا لتقرير اللجنة الاقتصادية والاجتماعية لغربي آسيا (المصدر) فان حجم السكان في نمو سريع في المنطقة العربية. فقد ازداد مجموع السكان في المنطقة أكثر من ثلاثة أضعاف من 123.5 مليونا ً في عام 1970 إلى 284.1 مليونا ً في عام 2000 و398.5 مليونا ً في عام 2015. وضمّت المنطقة العربية في عام 2015 حوالى 5.4 في المائة من مجموع سكان العالم، بعد أن كانت تضم ّ 3.3 في المائة في عام 1970 و4.6 في المائة في عام 2000. وفقا للتقرير فان هذه الاتجاهات الديمغرافية مستمرة خلال الفترة 2015-2050. حيث من المتوقع أن يتجاوز عدد سكان المنطقة 520.7 مليوناً بحلول عام 2030. وفي الوقت نفسه، من المتوقع أن ينمو الناتج المحلي الإجمالي الحقيقي خلال الفترة المقبلة (على أساس تعادل القوة الشرائية) بنسب مذهلة (كنا قد تحدثنا في مقال سابق للمزيد).

وتشكل الشركات الصغيرة والمتوسطة اكثر من 90% من الشركات في العالم العربي، وهي تقدم فرص عمل جديدة للشباب، وتعتبر محركا فعالا للتغيير والتنمية. لكن على الرغم من التحسن الذي شهدته هذه الشركات خلال السنوات الاخيرة الا أنها ما زالت تواجه تحديات كبيرة تعيق تنميتها.

وهدفت القمة إلى جمع مختلف الجهات الرسمية والخاصة في الدول العربية لمساعدة المشاريع العربية الصغيرة والمتوسطة للوصول إلى الأسواق الإقليمية والدولية، والتعامل مع مصادر التمويل المتنوعة، والاستفادة من الشبكات الإقليمية والدولية، وزيادة قدرتها على التوسع في الأسواق الخارجية.

وجمعت هذه القمة حوالي 650 مشارك ما بين رواد أعمال واصحاب شركات صغيرة ومتوسطة وممثلي لمنظمات التمويل وأيضا ممثلين عن الحكومات من شتى انحاء المنطقة العربية وبالإضافة الى صانعي قرار اقليميين ودوليين من القطاعين العام والخاص.

افتتح القمة رئيس الوزراء الأردني بشر الخصاونة، الذي اكد على الاهتمام الذي توليه الحكومة الاردنية لدعم المشاريع الصغيرة والمتوسطة.

وفي كلمته الافتتاحية اكد يوسف الشمالي، وزير الصناعة والتجارة والتموين ووزير العمل، رئيس المؤسسة الاردنية لتطوير المشاريع الاقتصادية، على أهمية المشاريع الصغيرة والمتوسطة، وقال بأن هذه القمة هي محاولة لاستخدام أنجع السبل من اجل دعم المشاريع الصغيرة في المنطقة العربية، مشيراً إلى دور هذه المشاريع في رفد الاقتصادات الوطنية في المنطقة العربية.

ولفت الشمالي إلى أن هذه الشركات الصغيرة تشكل أكثر من 70% من الوظائف المتاحة في المنطقة وأنها تواجه العديد من التحديات المتعلقة بالتمويل حيث تقتصر نسبةُ التسهيلات المصرفية المقدمة للمشروعات الصغيرة والمتوسطة على 9% من مجمل التسهيلات المصرفية.

كما أكد على أهمية القمة لتسهيل الحوار حول انجع السبل لتمكين المؤسسات الصغيرة والمتوسطة من الوصول الى الاسواق الاقليمية والعالمية والاستفادة من الفرص التي توفرها الشبكات الدولية وبناء القدرات المؤسسية لدى رواد الأعمال العرب.

بدورها اكدت وكيلة الأمين العام للأمم المتحدة والأمينة التنفيذية للإسكوا رولا دشتي ان القمة تأتي كجسر بين صانعي القرار والسياسات وأصحاب المشاريع المتطلعين إلى النهوض بمجتمعاتنا لإيجاد السبل لتحقيق الأهداف التنموية المنشودة.

كما اكدت بأن مساهمة المشاريع الصغيرة في الناتج المحلي في المنطقة العربية تقل عن 10% وأن معظم هذه المنشآت تعمل في القطاع غير المنظم، مؤكدة على الدور الرئيسي الذي يمكن أن تلعبه الشركات الصغيرة والمتوسطة أن تلعب في تحقيق نموّ اقتصادي أعلى وتخفيض نسب البطالة بين الشباب.

تعتبر الفكرة الرئيسية للقمة الفرص العابرة للحدود. يرى المنظمون ان فكرة الفرص العابرة للحدود وايصال هذه المشاريع ومنتجاتها بسلاسل الامداد العالمية مما سيدعم هذه المشاريع واستمراريتها ونموها على مدار فترات زمنية أطول بالإضافة.

تناولت القمة على مدار ثلاثة أيام عدة موضوعات، منها ريادة الاعمال الصديقة للبيئة (الخضراء)، تسهيل وصول الرياديين بمشاريعهم الى الاسواق العالمية، والوصول إلى التمويل، واتجاهات التكنولوجيا الناشئة.

وتم التطرق الى الوسائل التي يمكن اللجوء اليها لتعزيز الشراكات ومساعدة المشاريع العربية الصغيرة والمتوسطة على الوصول الى الاسواق الاقليمية والدولية اضافة الى تعبئة الموارد المالية المتنوعة ناهيك عن نقاشات بين الحكومات والقطاع الخاص لوضع اطر للسياسات المحسنة المعنية بالمشروعات الصغيرة والمتوسطة.

شكلت هذه القمة منصة إقليمية للقاء القادة المحليين والدوليين من القطاعين الخاص والعام وفرصة جيدة للتأثير على صناع القرار من اجل رسم السياسات والاستراتيجيات اللازمة لدعم المنشآت الصغيرة والمتوسطة.

عقد أثناء القمة 20 جلسة رئيسية وعشرة نشاطات جانبية من ضمنها معرض للعديد من الشركات الريادية والناشئة من العالم العربي.

وقد شهد اليوم الأول مجموعة من حلقات النقاش المتخصصة حول فرص الوصول إلى الأسواق وسلاسل القيمة العالمية. وتم عرض نماذج لمشاريع ناجحة وملهمة كشركة فوريد الكويت ممثلة بالمؤسس والرئيس التنفيذي عبد العزيز اللوغاني، والشركة العالمية للشحن ممثلة برائدة الأعمال البحرينية هدى جناحي، التي تمكنت من أن تصبح عابرة للحدود وتوسّعت إقليمياً ودولياَ ونالت إشادات وجوائز عدة من منظمات إقليمية وعالمية، بينما ركز فابيو روسو مدير المشاريع الصغيرة والمتوسطة في اليونيدو على مدى جاهزية البنى التحتية للمشاريع الصغيرة والمتوسطة وتوفر الخدمات الالكترونية. من جهة أخرى ركزت دانا الزعبي امين عام وزارة الصناعة والتجارة والتموين الأردني على ضرورة توفير برامج متخصصة للتوجيه والارشاد للمشاريع الناشئة لمساعدتها في مواجهة التحديات وتخطّي الصعوبات التي ستواجهها خلال المراحل التأسيسية.

وتطرّق النقاش الى أهمية التمويل وتحفيز المشاريع الريادية من خلال تخصيص قروض ميسرة سهلة الشروط في جلسة شاركت بها من الاردن مدير بنك الاتحاد ناديا السعيد وعبد الله العوضي من البنك الدولي الكويتي وعامر بوكيفيك من بنك التنمية الإسلامي. كما تطرقت الجلسات التي شارك بها رفيق الفيقي من وحدة التنمية الصناعية في منظمة اليونيدو، ورنا نواس مؤسسة المدوَنة الصوتية ’عندما تفوز النساء‘ الى ضرورة توحيد الأنظمة في الدول العربية خصوصاً الدول الحدودية لتسهيل عمليات التجارة والتصدير خاصة عمليات الدفع الالكتروني وتشريعات تنظيم التجارة الالكترونية.

وقال المتحدث عبد الله العوضي من بنك الكويت الدولي، أن البنك وجد فجوة في سوق الكويت في المراحل الأولى للمشاريع الصغيرة والمتوسطة، حيث تم سد الفجوة من خلال تأسيس مركز يدعم المبادرين في المراحل الأولى من مشاريعهم لزيادة فرصهم في النجاح، مؤكدا على أن أهمية هذا المؤتمر تأتي بما يتيحه هو تواصل كافة الرواد والمستثمرين الاقتصاديين وجهاً لوجه للتمكن من الاتصال الصحيح.

 
اشتملت فعاليات اليوم الثاني على ورش عمل مختلفة بدأت بجلسة عن الفرص المتاحة للمشاريع الصغيرة والمتوسطة في التكيف مع البيئة الخضراء بمشاركة مؤسسات دولية من سويسرا (يوهانس هيب، مؤسس Seecon International GmbH) وبلجيكا لييف فرانسن (المؤسس المشارك في منصة Transformative Technologies)، وألمانيا (الين بوسمان من شركة الاستشارات Green Businesses Consultant و كاتيا مولهايم المؤسس والرئيس التنفيذي لشركة Prestel & Partner المتخصصة بمنتديات مكاتب الشركات العائلية) واسبانيا (محمد وجيه من مؤسسة بريما (PRIMA) التي تنشط في المجال البيئي وتهدف من ضمن موضوعات عدة الى معالجة التحديات في تغير المناخ، والنمو السكاني والأمن الغذائي ضمن منطقة البحر المتوسط. كما تم الحديث في جلسة ثانية عن البرامج الخاصة لدعم للمشاريع الصغيرة والمتوسطة تحدث فيها فارس العقاد المدير الإقليمي لشركة ميتا (META) في الشرق الأوسط وميرنا سليمان من مؤسسة فينتك غالاكسي (Fintech Galaxy) في لبنان ورامز الصرافي المدير التنفيذي لحاضنة الأعمال فلات 6 لاب من مصر (Flat6Labs) وعدي غنيم من المؤسسة الأردنية لتطوير المشاريع الاقتصادية.

عقد بالتزامن مع الجلسات النقاشية ثلاث ورشات عمل متخصصة حول بناء القدرات وتبادل الخبرات بالتعاون مع خبراء مختصين من مركز التجارة العالمي (ITC)، وجامعة كمبريدج والمؤسسة الأردنية لتطوير المشاريع الاقتصادية.

كان من بين المشاركين في القمة شركة الوسام العالمية للتسويق الالكتروني، وهي شركة صاعدة تعمل على ترويج المنتجات الفلسطينية في الاسواق الدولية من خلال علامتها التجارية "ارض الخير" (https://ardalkhair.ch)، وهي متواجدة أيضا في سويسرا وتتطلع لأن تكون سوقًا الكترونية للمنتجات الفلسطينية وبوابة لممارسة الأعمال التجارية بين فلسطين وسويسرا وأوروبا، وهو ما سيشكل دعما للمنتجات الفلسطينية عبر الوصول الى السوق السويسري والأسواق العالمية.

 تضمنت القمة معرضا شاركت فيه نحو 100 من الشركات الصغيرة والمتوسطة الحجم لتمكينها من عرض منتجاتها وتسهيل تبادل الخبرات والتشبيك، وتعزيز الشراكات.

كان من بين الشركات العارضة شركة دونا ناتشرال (Donna natural) من مصر، وهي تسعى الى تمكين النساء من الشعور بالرضا والتعبير عن ذواتهن من خلال مساعدتهن على العناية ببشرتهن والظهور بمظهر لائق، عبر ابتكار شامبو جاف طبيعي لتنظيف الشعر والحيلولة دون تلفه بسبب استخدام الماء المتكرر (www.donnanatural.com)، وشركة سيفبرو (Sefpro) من مصر، متخصصة في المنسوجات ومنتجات الألبسة المصنوعة من القطن المصري. يوجد للشركة فروع في كل من الإمارات والمملكة المتحدة. وتتمتع منتجاتها بشهادة معتمدة من Fairtrade and Gots، وشركة تيا للاستشارات التنموية والإدارية، من اليمن، وهي مختصة بتطوير العمل الإنساني وتعمل على اعداد الدراسات والابحاث الإنسانية والاجتماعية والاقتصادية والبيئية، بالإضافة الى تقييم المشاريع الإنسانية www.tiadsc.com.

تبيّن أن العديد من المشاريع المشاركة متعلقة بالبيئة مما يشير إلى وجود وعي لدى الشباب العربي في قضايا البيئة والتغير المناخي، وإلى توجه الجهات المانحة إلى دعم هذا النوع من المشاريع.

لوحظ وجود العديد من الشركات وخاصة في مجال التجارة الالكترونية والتكنولوجيا التعليمية والتكنولوجيا الخضراء.

وقد اختتمت أعمال القمة لريادة الأعمال، بإعلان الشركاء والداعمين للشركات الصغيرة والمتوسطة للجنة الأمم المتحدة الاقتصادية والاجتماعية لغربي آسيا "الاسكوا"، عن الالتزام بقيمة تفوق 130 مليون دولار.

في الختام، فإننا نرى بان عقد مثل هذه المؤتمرات على المستوى العربي أمر مهم، وان الجهود التي تبذل في سبيل تحسين بيئة الأعمال ودعم ريادة الأعمال في الدول العربية هو ما يحتاجه العالم العربي بالضبط في ظل هذه الأوقات الصعبة التي تشهدها المنطقة. وقد قام العديد من الحكومات العربية في السنوات الأخيرة بإدخال إصلاحات تنظيمية بالفعل، تهدف إلى تحسين بيئات الأعمال لكن هناك المزيد يمكن عمله للوصول الى تحقيق الأهداف المنشودة وايجاد بيئة جذب مناسبة لريادة الأعمال، وخاصة في المجال الرقمي، كإزالة الحواجز التي تحول دون التجارة العابرة للحدود وتحسين البيئة اللوجستية بين البلدان العربية وإتاحة الوصول الى خدمات الانترنت الفائقة السرعة (النطاق العريض) لجميع السكان وخاصة في المناطق الريفية ونشر أنظمة الدفع الرقمي وإصلاح لوائح التجارة الالكترونية وحماية المستهلك (وهذا ما يؤكده تقرير للبنك الدولي المصدر)[1]  والتسريع في إيجاد سوق عربية موحدة ودعم تنافسية الشركات الصغيرة والمتوسطة لتحسين فرص بقائها في ظل المنافسة الشرسة التي تواجهها على الساحة الدولية (للمزيد)[2].

2021 can be described as the year of startups par excellence, as it was an exceptional year for startups at all levels. Despite all the difficulties and challenges related to the spread of the Corona virus epidemic, what startups in the Middle East and North Africa achieved in 2021 did not achieve in all previous years!

In this article, we will take a comprehensive look at the state of startups in the region, and tell you everything you need to know about the state of startups in the Middle East and North Africa in 2021.

First: the development of investments in start-ups

During more than a decade, the business environment for emerging companies has developed in the Arab region, especially in the Gulf Cooperation Council countries, specifically the United Arab Emirates and Saudi Arabia, which have worked to develop the business environment to incubate entrepreneurship through a wide range of incubators and accelerators of the business sector and the governmental sector. Egypt has also witnessed a remarkable development in the business environment. The development in the Arab entrepreneurship ecosystem is reflected in improving the legislative and legal environment and in launching a large number of startup incubators, including Flat6Labs, Falak and Injaz Egypt.

The development in the business environment for startups in the region has translated into a huge increase in the number and size of investment deals in startups, as the total volume of deals for start-ups increased by more than 1280% between 2013 and 2021, and with a growth rate of 312% compared to 2020, which witnessed a slowdown in the growth rate due to the direct repercussions of the spread of the Corona epidemic.

In terms of the number of investment deals in startups, it also increased significantly between 2013 and 2021, and while the number of deals for startups in 2013 did not exceed 148 deals, in 2021 it amounted to 561 deals. The following figure shows the development of investment in companies in the region between 2013 and 2021 in terms of the volume and number of investment deals.

As shown in the figure, the volume of investments in 2021 alone is equivalent to the volume of investments in emerging companies in the region during the period 2017 and 2020 combined. This indicates the significant development that occurred in 2021.

Second: Startups in the Middle East and North Africa for 2021

The following chart shows the volume of deals for startups during 2021 and their growth on a monthly basis. The figure shows the upward curve of investment in startups throughout the past year. The quarterly growth of the volume of deals for startups reached 48%, 32% and 104%, respectively, while the growth rate for the last quarter of the same year decreased by 74%. This decline can be explained by the exceptional rise in the third quarter of the year, specifically in July, when the total volume of deals reached more than 632 million dollars. As for the semi-annual growth level, it reached about 91%. In general, the data before us heralds new levels of investment in start-up companies. The number of startup deals in the second half of 2021 also increased by 28% compared to the first half. This rise is accompanied by a growth in the average size of one deal, which rose from about $3.7 million in the first half to more than $5.6 million in the second half.

Third: Distribution startups financing by country for 2021

The Emirati startups continued to dominate the scene in terms of startup financing, as Emirati companies accounted for about 52% of the total investments received by emerging companies during 2021, followed by the Saudi startups, which came in second place with 24% of the total investments, then Egypt with 15%, and in fourth place, came Jordan with 4% of the total investments. Despite the continued dominance of the UAE in the forefront, and then Saudi Arabia and Egypt, in terms of investments in startups in the Arab region, this year witnessed the entry of new countries to the list, which was limited to 7 to 9 countries at best in the past. The list expanded to include 15 Arab countries , the most recent of which was Sudan, which ranked last on the list. In terms of absolute figures, new regions showed remarkable growth, specifically the Maghreb region, the Levant countries, specifically Jordan and Palestine, in addition to Iraq, which is witnessing a growth in the volume and number of deals for startups.

Fourth: Distribution of the number of startup deals by country 2021

In contrast to the distribution of the volume of investments by countries, which shows a strong concentration on the UAE, the distribution of the number of startup deals shows less concentration on the UAE, which despite issuing the largest number of startup financing deals, about 72% of the deals are distributed to emerging companies from outside the UAE, most notably Egypt, which came in the second place with 25% followed by Saudi Arabia with 24%, then Jordan with 7%, Morocco with 4%, and Tunisia and Bahrain with 3% each.

Fifth: The annual average of the volume of deals for startups by countries for the year 2021

The size and number of startups deals is reflected in the average size of a single deal, and while it is a good indicator of the development of investments in startups, it must take into account the anomaly value that may mislead the reader, as we can see from the graph that the highest rate of average one deal size is for Algerian startups at $15 million per deal. However, this number hides the significant decrease in the number of deals for startups in Algeria, which was limited to only two deals! While the average size of one deal in the UAE can be considered more reflective of the development and growth of the volume of investment in emerging companies, in which the size of one deal amounted to more than 8.8 million dollars. The same applies to the case of Saudi startups, whose average transaction size is about $4.8 million.

Sixth: Distribution of startup investments by sector for 2021

2021 was a distinguished year in terms of distributing the investments of emerging companies by sector. The food technology sector appeared for the first time to top the list of investments distribution, with 26% of the total investments, followed by the financial technology sector with 21%, a sector that has witnessed steady growth since the year 2019, while the e-commerce sector ranked third with 16%, this sector is experiencing a relative decline, as we have indicated on more than one occasion. The decline of the e-commerce sector is due to the state of saturation that the main Arab markets have reached, although this does not mean that this sector has completely disappeared. E-commerce in the Arab region still needs more expansion and development, but competition in this sector has become more difficult with the rise of many companies that occupied large sectors of the market, and finally the entry of the e-commerce giant Amazon to the most important Arab markets (Saudi Arabia and the UAE) and last year it entered the Egyptian market.

Seventh: Distribution of the number of startup deals by sector for 2021

In contrast to the distribution of the volume of deals of emerging companies that focus on food technology, the distribution of the number of deals for emerging companies was less concentrated among the main sectors on the one hand, and on the other hand, the large number of sectors in which startups succeeded in obtaining financing rounds are, most notably the agricultural technology sector, artificial intelligence, environmentally friendly technology, and other sectors. This distribution indicates the existence of promising opportunities for emerging companies that are active in areas far from the main sectors that have always reaped the largest share of funding, and perhaps the most evidence of this is the decline of the e-commerce sector in favor of the financial technology sector in the past two years, and the displacement of the food technology sector by the technology sector, which took the lead in 2021. So it will not be surprising that companies operating in different sectors are competing for funding this year.

Eighth: Investment stages for start-up companies during 2021

Investment deals in start-up companies in 2021 focused on the initial funding stage (1), with more than 32%, and in the pre-incorporation stage by about 15%, an increase of 2% over the first half of the same year, while the stage of “accelerated growth companies” came in the third place with 15%, and fourthly, financing of category “A” with approximately 9%, while the pre-financing stage of category “A” (2) accounted for about 7%.

Ninth: Distribution of investments by startup companies for 2021 by gender

The share of funding received by startups founded by females is still small compared to the companies founded by males, as the share of funding received by companies founded by females to the total funded startups did not exceed 1.2%. The year 2021 made significant progress, as a number of distinguished financing deals for women-led companies emerged, perhaps the most important of which were the iMile and BitOasis deals, through which the two companies raised $40 million and $30 million, respectively. It is worth noting that the UAE ranked first in terms of the volume of funding and the number of deals of women-led startups, as Emirati startups received investments worth $187 million through 46 deals. Saudi Arabia ranked second, where startups founded by a team of men and women succeeded in raising about $14 million through 9 deals. Egypt came in third place, with total investments of nearly $12 million through 20 deals.

Explanatory notes:

• Initial financing or financing coming from family and friends, is one of the ways of offering securities, where some parties related to the new startup invest an amount that enables the startup to start its business and continue in the market, until it reaches the stage of being able to finance itself or being able to creating value that makes the startup attractive for investors to invest in. It should be noted that seed funding may be a form of crowdfunding.

• Series A Financing, also known as A Round Financing. It is the first round of financing offered to a startup company in which venture capitalists participate, and it comes after the seed round stage. This is usually done when outside investors are given ownership of the company for the first time. This financing is usually provided in the form of preferred shares, and may include anti-reduction provisions in case of more financing being provided, or in the form of common shares or preferred shares in the future.

Sources:

- Press releases issued by start-up companies.

- Wamda Foundation.

Foreign Direct Investment Licences will enable investors in many sectors to hold 100% ownership of businesses in Abu Dhabi

The Abu Dhabi Department of Economic Development (ADDED) announced on Wednesday the implementation of the Foreign Direct Investment Law in the emirate.

It will start issuing Foreign Direct Investment Licences which will enable investors to hold 100 percent ownership of their businesses in Abu Dhabi.

The licence covers 122 different economic activities related to the agricultural, industrial and services sectors, and targets businesses with total capital ranging between AED2-100 million or higher.

Mohammed Ali Al Shorafa, chairman of ADDED, said in comments published by state news agency WAM: "The issuance... is part of the Department’s efforts to further promote positive investment climate and thereby achieve sustainable economic development in Abu Dhabi."

He said ADDED is committed to enhancing the local investment environment and strengthening the Abu Dhabi economy’s competitiveness through policies that provide more investment opportunities in various non-oil sectors.

Al Shorafa added that the new licence further consolidates Abu Dhabi's position as a global hub for investment and ease in doing business, saying it will encourage investors, spur business development for foreign companies as well as attract businesses in technology and advanced industries.

"The implementation of the FDI law in Abu Dhabi..contributes to achieving various objectives such as expanding the base of foreign investments, increasing the size of capital flows, enhancing and diversifying local production and increasing the emirate’s exports of goods and services," he said.

Rashed Abdul Karim Al Balooshi, Undersecretary of ADDED, said the procedures in securing the licence are "fast and easy" and business activities include the manufacturing of food and beverages, clothing and leather production, legal consulting, accounting, auditing and tax advisory services, architectural and engineering activities, medical and dental clinics, veterinary activities and research and development activities in science and technology.

A total of 13 activities are currently not covered by the newly-issued licence, including postal and telecommunications services, audio and video media related services, petroleum exploration and production, ground and air transportation services, banking and finance activities, insurance activities, employment of labour and water, electricity and fisheries services.

In July, the UAE was ranked 19th globally in the 2020 Kearney Foreign Direct Investment (FDI) Confidence Index, up from 21st place when it was last represented in the index in 2017.

The country’s ranking reflects positive investor sentiment based on the government’s commitment to economic diversification, innovation, infrastructure and ease of doing business – among other factors.

source: arabianbusiness

The programme encompasses a unique collaboration between the EU, the Jordanian government and the private sector.

In collaboration with Jordan’s Ministry of Planning & International Cooperation and Ministry of Digital Economy & Entrepreneurship, the European Union has pulled the trigger on the ‘Innovate Jordan’ programme, which comes as the latest in a consistent EU support for the country’s innovation industry.

The EU is set to invest EUR20 million into promoting new initiatives that can “unlock entrepreneurship and innovation potential and enhance job creation and growth in Jordan.”

With the ultimate aim of enabling local companies and startups to become competitive on an international stage and drive forward Jordan’s digital economy, the programme’s first effects will be felt through the support of three new grant initiatives in collaboration with private sector entities.

The first, in collaboration with Endeavour, will target 45 local businesses for growth and scaling, with a view to equipping them with the tools to attract foreign investment and emerge on international markets.

The second, will see SAM Engineering take the lead on the establishment of Jordan’s first digitisation and innovation centre with the aim of promoting digital solutions in the world of manufacturing.

The third and final initiative is in collaboration with Orange and will establish a host of facilities across Jordan, including 23 digital centres, six coding academies, six FabLabs, six growth accelerators and three incubators.

For the Ministry of Digital Economy and Entrepreneurship, the programme is a perfect fit for the drive towards fully-digitised government services and digitally-enabled income opportunities. 

“We are committed to empowering the citizens and residents of Jordan in their digital journey across sectors and industries,” Minister Muthana Gharaibeh said.

“Our alignment with ‘Innovate Jordan’ will ensure motivating and inspiring people to produce change by maximizing the impact of financial and non-financial incentive programmes in place.”

source: thestartupscene

VP stresses nation must continue developing transportation systems to preserve excellence

The UAE's logistics system is the strongest and most efficient in the region and the private sector is the engine for the future economy, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said on Saturday.

He said the UAE must continue developing its transportation systems to preserve excellence in this regard.

"We want to achieve another qualitative leap in infrastructure, energy and transportation, and this leap must be under one comprehensive and integrated plan," Sheikh Mohammed said during a meeting with a team from the Ministry of Energy and Infrastructure.

Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; Mohammed bin Abdullah Al Gergawi, Minister of Cabinet Affairs; and Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, attended the meeting.

"Today, the UAE is the region's biggest hub for business and innovation, and energy and infrastructure projects are key to sustain this distinction," Sheikh Mohammed said.

He asserted that the private sector is the engine for future economy and the UAE will continue developing partnership with the private sector in the fields of infrastructure, energy, transportation and housing projects.

Al Mazrouei presented to Sheikh Mohammed and his accompanying delegation the ministry's 10-year plan, aimed at integrating the energy, infrastructure, housing and transportation sectors into one comprehensive asset management system to enhance the services and ensure sustainability.

He also briefed the Prime Minister about the country's pioneering rankings in the energy, infrastructure and housing sectors as the UAE has maintained its first global ranking for the third consecutive year with scores of 100 per cent in all 'Getting Electricity' indicators in the World Bank's Doing Business 2020 report.

The UAE was also ranked first regionally and 12th globally in terms of the quality of infrastructure, and was ranked first regionally and seventh globally in terms of the availability and quality of road and transport infrastructure.

"The new comprehensive asset management system would reduce maintenance costs by 20 per cent," Al Mazrouei said.

He also reviewed the strategy and initiatives for electricity and future energy for the next 50 years.

In a related context, the minister spoke about the objectives of the Federal Centre for Road Network Operations Management, which the ministry is nearing completion.

Al Mazrouei also shed light on the achievements of the citizens' housing sector, its development initiatives, a mechanism for sustainability and meeting future needs, preserving the national gains in that area and the mechanism that works accordingly.

source: zawya

The Saudi Venture Capital Company (SVC) has signed an investment deal with a venture capital fund licensed by the Capital Market Authority (CMA) and founded by Osool & Bakheet Investment Company (OBIC) and iMENA Group.

The agreement signing took place virtually between the CEO of SVC, Nabeel Koshak, and OBIC’s CEO, Mazin Al Dawood, through videoconference, Saudi Press Agency (SPA) reported on Sunday.

Moreover, the signing was attended by the governor of the General Authority for Small and Medium Enterprises (Monsha’at) and chairman of SVC, Saleh Al Rasheed.

The investment was carried out under the Saudi SVC project of investing in funds programme, which encourages the establishment of venture capital funds that invest in startups during their different stages, which is also one of Monsha’at’s initiatives, Al Rasheed noted.

source: mubasher

Par Ayman Abualkhair

(English)

Nous vivons une période très spéciale, étant donné que l'épidémie de COVID-19 a atteint 177 pays et régions et qu'elle se propage dans le monde à un rythme imprévisible.

Cette crise a révélé notre faiblesse en tant qu'êtres humains, les déséquilibres qui existent dans de nombreux domaines de notre vie et la nécessité de revoir sérieusement notre façon de vivre. Elle montre plus particulièrement l'invalidité du principe «chacun pour soi», qui n'entraîne le bien-être de personne.

Cette crise montre l'unité du destin de l'humanité et de la fraternité humaine d'une manière sans précédent. Le risque auquel est confronté un individu ou une communauté peut toucher tout le monde, quels que soient les lieux, les ethnies ou les affiliations nationales et religieuses.

Le coronavirus a complètement changé notre mode de vie, ce n'est plus comme avant: files d'attente pour les courses, plus de rassemblements à l'école, plus d'enfants qui jouent dans la cour de récré, plus de réunions au travail, plus de célébrations de masse, plus de contact physique avec des amis ou même avec des proches... Le coronavirus a interdit toutes sortes de rassemblements humains!. Chacun doit craindre pour sa propre personne, nous vivons des moments difficiles. Mais cette pandémie offre également à chacun la possibilité de réfléchir profondément à sa vie, à ce qu'il a fait et à ce qu'il devrait faire aujourd'hui et demain. La vraie question qui s’impose: pourquoi nous ne sommes pas préparés à ce virus pandémique, alors que nous avons accumulé des connaissances scientifiques sans précédent dans de nombreux domaines?!. Bill Gates a déclaré en 2015, lors d'une conférence TEDX, que le véritable danger pour l'homme n'est pas une bombe atomique mais plutôt un virus! Il n’y a pas de doute, nous devons investir davantage de ressources dans la protection de la santé et le bien-être de l'être humain.

Les conséquences catastrophiques de coronavirus sur l’économie mondiale nécessitent des actions immédiates de la part des décideurs du monde entier, pour protéger les économies locales, principalement les PME, contre l'effondrement.

J'espère que cette crise mondiale sera un catalyseur pour un travail collectif afin de réaliser un avenir meilleur pour tous.

Restez en sécurité, restez à la maison!