We have been saying that 2017 was an extraordinary year for new business in MENA. Small to Medium-sized Enterprises (SMEs) are the backbone of the UAE economy. They contribute around 60% of the GDP and 86% of employment. The UAE wants to grow the share of GDP contributed by 70% in the next few years.
The UAE’S dynamic startup industry has now achieved levels where investors are investigating verticals in select divisions attractive for investment, making ready for growth and advancement in the country.
According to the axiom, mobile app development is making fertile ground for UAE’s young, tech-savvy innovators. The UAE has captured 60 percent of the Middle East’s smartphone mobile apps business. The demand for mobile apps among the tech-savvy millennials is almost insatiable and that is what’s driving the growth for the app market. As relatively few mobile app development companies have still not wandered in Dubai and related regions, you will find a good scope to take over the market.
In 2017 UAE Startups have secured $400 million investment, advancing it is lead in the MENA area’s startup industry, as per a current report.
Several innovation verticals that are attractive for investment in the UAE [and for the most part of MENA]. Investors and venture capital firms are funding more startups in Fintech, E-commerce, Food and beverage, logistics and transport to capitalize on the growing fame of the startup ecosystem. The UAE has held the major share (70%) of investments took after by Saudi Arabia and Lebanon with 9 and 7 percents, respectively, making the emirate the most encouraging investment hub in the region.
“We have developed a one of a kind comprehension of the venture space. The key sectors distinguished are especially attractive for various reasons. In the First place, these are large Mena technology sectors with market sizes evaluated to be in the billions of dollars each. Second, we have assembled a healthy pipeline and as of now recognized at several potential targets for investment over every one of those verticals. Third, these are sectors where very adaptable business models can be built with no need for disruptive technologies and where we as MEVP can add tangible value to the companies. Opportunities in these sectors have a clear path to profitability and exit,” Walid Hanna said, MEVP founder and CEO.
E-commerce and fintech remain the most popular enterprises representing 11.9 percent each as per MAGNiTT’s 2017 State of Mena Funding report. The food and beverage saw the largest increase of 3% in deal flow over 2017, followed by fintech startups also make up 3 of the 10 biggest investments in 2017- Paytabs($20 million), Souqalmal ($10 million) and Wahed ($7 million). Logistics and transport also proved big winners with Careem ($150 million), Fetchr ($45 million) and Wego (12 million).
2017 was a year that saw a mix of mastery of old and new players. 500 Startups turned out to be extremely dynamic subsequent to closing $15M for their $30M MENA-devoted fund. MEVP, BECO, Raed and Wamda continued being dynamic throughout the year with Wamda reporting various deals just before the end of 2017.
MAGNiTT’s founder, Philip Bahoshy, noticed the present year, much the same as 2017, is also ready to support the growing trend as investment continues to grow in all phases over the funding cycle.
Saudi Arabia and UAE are the biggest logistics markets in the GCC, with an expected market size of $55 billion and $30 billion, respectively, according to a report by Frost & Sullivan. In addition, the addressable road transportation opportunity measure over the GCC is $24 billion, and this is where technology in transportation logistics is becoming progressively relevant.
The UAE-based Truxapp, a startup firm is tending to the deficient logistics and transportation models to help organizations turn out to be more deft and responsive towards their customers need. Another firm Yalla Pickup, the UAE-based mobile app and web-based logistics Services Company, has launched the next phase of its mobile application, which will be focused on business prerequisites.
Mobile app development helps startups to get some business advantages. It works for as an incredible promotional tool as it retains your customers instructed about your new contributions and current contributions in actual time. We are at FuGenX, one of the leading mobile app development companies in Dubai, offering the best app development package that is very affordable.