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MASS is Musthafa & Almana’s innovative effort to address the burgeoning needs of the startup community of the regions we are present in. MASS is a holistic solutions platform for entrepreneurs and small business owners that addresses their financial and operational requirements. By utilizing this platform, entrepreneurs gain access not only to Musthafa & Almana’s existing infrastructure but also to an unparalleled network of financial and operational solution providers.
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Start up support as innovative opportunity for UAE investors MUSTHAFA ZAFEER O.V. Founder & Mg. Director
OBSTACLES FACED BY START-UPS IN THE MENA REGION Entrepreneurs can face a mountain of legal and regulatory red tape. Many Startups lack a clear, compelling case Expensive workspace Hard to find talent Funding is scarce as there is a lack of a developed Venture capital industry Classification: SME V Start-up Middle-eastern investors are generally risk averse, unless it is real-estate in Dubai
LEGAL AND LOGISTICAL ROADBLOCKS ‘interesting’ ownership structures in the region Unclear legal frameworks: Oasis report by Wamda, 82% of survey respondents did not understand governmental and legal regulation Language barriers as lot of the departmental documents are in Arabic Expensive legal advice No real expertise while dealing with start ups
GLOBAL PLAYERS LOOKING AT THE LOCAL MARKETS “Things are definitely changing, since the above graph 80% of startups and SMEs are self financed However the Time is ripe as UAE advances A large number of established foreign VCs have seen the potential in the MENA region, especially the UAE and have made investments that address the “missing middle”
WHY IS THE UAE DIFFERENT? • Integrated collaboration between government entities • Economic and political stability • Ability to attract the right skill and talent • Dubai • Educational infrastructure • Easy access to MENA and the Indian Sub-continent • Working multi-cultural communities with minimal friction • Focused on building an eco-system for start-ups
Market Trends Dubai no longer limited to Oil and Real Estate sectors Specific markets growth:- E-commerce market expected to reach $10 billion by 2018(it is the fastest growing market in the UAE – a result of Dubai becoming SMART) Tech Industry – Compound Annual Growth Rate of 8.47% until 2018 Social/Digital Media Marketing set to increase by 30% at the end of this year Tourism, Trade and related activitiesrepresent 40%
CONCLUSION With over 30 percent of MENA’s population between the ages of 15 and 29. representing over 100 million youth, the MENA region is experiencing a “youth bulge,” according to a Brookings report. UAE is in a perfect position to host enterprises that will deliver jobs and services to the largely Arab speaking youth. As an investment opportunity, start-ups based out of the UAE have historically provided some of the highest returns of the region.