Innovation entails creating value, and it is believed to be a fundamental source of significant wealth generation within an economy. Startups have become prominent in the last two decades as agents of disruptive innovation, utilizing technologies like 5G and cloud, among others.
As a result, start-up ecosystems in the MENA region are evolving, largely thanks to the supportive ecosystem telcos have forged.
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MENA Startup Development
Startups are known for their ability to develop innovative ideas, technologies and solutions to various industrial and non-industrial problems. They are often the ‘risk takers’ within an uncertain environment, exhausting all means to find investors and network with talents to establish their businesses into viable markets.
Countries that support and nurture start-up ecosystems often see a surge in innovation and economic growth. Within the Middle East and North Africa (MENA) region, policies, funding, infrastructure and mentorship programs help startups to attract talent, investment and cutting-edge technologies, ultimately giving them a competitive edge in the global market.
According to Wamda’s research, the MENA start-up ecosystem witnessed a remarkable surge in funding in May 2024, raising an impressive USD 282 million. This figure marks a significant 413% increase from the previous month, signalling a robust rebound in investor confidence and activity.
Notably, the Global Startup Ecosystem Report 2024 (GSER 2024) included three UAE emirates—Dubai, Abu Dhabi, and Sharjah—among the top ten start-up ecosystems in the MENA region.
During a joint economic committee (JEC), H.E. Abdullah bin Touq Al Marri, Minister of Economy shed light on a number of incentives and advantages offered by the UAE economy to entrepreneurs and startups, both at legislative and regulatory levels.
According to a report published by the Dubai Chamber of Digital Economy, the entity aims to attract 300 digital startups to Dubai by the end of 2024. Known for its strong entrepreneurial spirit, Dubai-based startups have raised over USD 2 billion since 2017, accounting for approximately 96% of all funds raised in the UAE.
The Dubai Center for Artificial Intelligence (DCAI) Accelerator Programs are driving innovation in Dubai’s government sector by developing new projects and addressing current and future challenges. This global initiative supports startups and entrepreneurs worldwide, reinforcing Dubai’s leadership in leveraging cutting-edge technology to adapt to rapid sectoral changes.
Meanwhile, Abu Dhabi has been recognized as the fastest-growing emerging ecosystem in the region. As per GSER 2024, the emirate achieved USD 4.2 billion in Ecosystem Value from H2 2021 to 2023, representing a 29% CAGR.
Abu Dhabi’s start-up ecosystem is thriving, offering global entrepreneurs unique opportunities to scale. With favorable regulations, government support for innovation, accessible funding, and a vibrant cultural mix, Abu Dhabi stands out among global tech hubs and is attracting significant international interest.
Additionally, Sharjah’s position as a leading entrepreneurial hub has been further solidified after being ranked 4th in GCC region and 7th in the MENA region’s start-up ecosystem rankings. Sharjah hosts over 60,000 SMEs and startups across six free zones and 33 industrial areas, and the Sharjah Entrepreneurship Center (Sheraa) serves as its incubator for the UAE's aspiring and established entrepreneurs.
Qatar is also emerging as a key start-up hub in the Middle East, driven by initiatives like the Startup Qatar Investment Program by the Qatar Development Bank and Invest Qatar's new initiative, Startup Qatar. These programs offer financial support, resources, and reduced costs to attract tech startups.
In April 2024, the Supervisory Committee of the Promising Omani Startups Programme announced the launch of the Oman Future Fund, a USD 5.2 billion VC fund aimed at empowering entrepreneurs, attracting foreign investments, and supporting tech-based companies over the next five years.
Advantages of Utilizing 5G in Startups
Evidently transforming global connectivity, startups continue to play a pivotal role in leveraging the potential of 5G and driving innovation.
One of the most significant impacts of the 5G revolution is the opportunity it creates for startups to innovate and disrupt various industries. 5G is not just a faster version of 4G, but a transformative technology that enables new applications, services, and business models that were not possible before.
5G’s high data rates enable faster data transmission, which is crucial for applications like HD video streaming and real-time analytics, while its low latency capability is critical for time-sensitive applications like remote surgery, autonomous vehicles, and AR/VR.
5G can also support a high density of IoT devices, enhancing smart city infrastructure and industrial automation, ensuring more stable connections.
Having said that, 5G technology significantly influences investment decisions in startups by unlocking new market opportunities, fostering technological innovation, enabling scalability, improving customer experiences, facilitating data analytics and AI, and driving infrastructure development.
Here are a few ways startups can harness the power of 5G:
- A startup can use 5G to precisely locate individuals in emergency situations. By using a phone connected to 5G, the startup can pinpoint the exact location of someone to within a few square meters.
- A startup that provides live video coaching for fitness enthusiasts can use 5G to stream high-quality video without buffering or lagging, and also use real-time feedback and analytics to improve the service.
- A startup specializing in autonomous vehicles can utilize 5G for seamless communication among vehicles, infrastructure, and cloud services, ensuring minimal latency and enhancing system safety and reliability.
- A startup developing 5G-enabled agricultural drones can utilize government 5G networks to operate in farms where private 5G services are unavailable.
- A startup focused on smart sensors, wearables and connected machinery, which rely on rapid data analysis and transmission, can optimize operations with 5G.
In tandem with this, a 5G-optimized telco cloud combines the power of 5G networks with the cloud computing infrastructure provided by telecommunications companies.
Startups thrive on innovation, and a 5G-optimized telco cloud provides them with a powerful toolkit to bring their ideas to life. With ultra-fast, low-latency connectivity and edge computing capabilities, startups can develop applications that were once unimaginable, disrupt traditional markets, and create entirely new ones. From healthcare and transportation to education and beyond, startups are leveraging 5G-optimized telco clouds to address real-world challenges in innovative ways.
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Telcos Supporting Start-Up Ecosystems
Telcos are actively fostering innovation and supporting startups through various programs and initiatives. Ericsson ConsumerLab's Startup 5G program exemplifies this, facilitating global connections between consumer product innovators and communication service providers over a 6–12-month engagement.
Moreover, Vodafone's Digital Innovation Hub in Salford's MediaCityUK offers startups access to transformative technologies like 5G and IoT, alongside high-speed internet, fostering an environment conducive to technological experimentation and growth.
AWS is also playing a crucial role in supporting startups worldwide through AWS Activate, providing training, resources, and cloud credits to fuel innovation. The ecosystem empowers startups to leverage cloud computing for disruptive innovation across sectors from lodging to healthcare.
In the Middle East, Umniah has partnered with Startupbootcamp to enhance The Tank—their business incubator—aiming to strengthen Jordan’s entrepreneurial ecosystem. Similarly, du has teamed up with DIFC Innovation Hub to launch the 'du Business Entrepreneurship Programme' in the UAE, which will focus on driving innovation and supporting startups through cutting-edge initiatives.
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In 2023, etisalat by e& celebrated entrepreneurship and innovation in the United Arab Emirates by hosting the third edition of the 'Hello Business Pitch' competition.
Moreover, Omantel hosted the UK Oman Digital Hub pilot program to support startups at Omantel Innovation Labs. This program offered advanced sessions on cybersecurity awareness, supply chain risk protection, developing a cybersecurity culture, and testing new solutions, thereby equipping startups with essential skills and knowledge.
Huawei launched its first-ever, one-stop shop for startups and developers in the region in 2021. This initiative aims to empower innovative entrepreneurs by providing access to advanced capabilities and enabling technologies. Additionally, Huawei's Eco-Development Department introduced a unique initiative to support regional companies that have recently launched their mobile apps in the Middle East and Africa. By leveraging Huawei’s official app distribution platform, AppGallery, and the Huawei Mobile Service Core (HMS), startups can grow their user base and enhance their market presence.
Furthermore, in 2018, Zain Group opened the Zain Innovation Center (ZINC) in Kuwait. This co-working hub, the first-of-its-kind provided by a corporate entity in Kuwait, bolsters youth entrepreneurship and the start-up ecosystem in the country.
Finally, InMobiles’ iGrow platform also contributes to the start-up ecosystem by presenting new business opportunities for startups and operators, further promoting innovation and growth.
These partnerships and initiatives underscore telcos' commitment to nurturing entrepreneurial talent and driving technological advancement on a global scale.
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Forward-Looking Ecosystems
Innovation-driven ecosystems are pivotal for generating, developing, and scaling innovative ideas that can drive significant development impact. These ecosystems, comprising diverse actors such as startups, technology providers, and academic institutions, play a crucial role in bridging the commercial and knowledge economies.
Startups are particularly adept at leveraging technologies like 5G to disrupt industries and address societal challenges with agile solutions. In the Middle East, these ecosystems hold immense potential to accelerate economic growth and societal progress through technology-driven innovation.
With the rapid adoption of 5G and other cutting-edge technologies, innovation ecosystems are not only fostering high-tech industries but also accelerating societal benefits through innovative solutions.
Ultimately, a robust innovation ecosystem transforms collective efforts into competitive advantages, driving sustainable growth, enhancing global competitiveness, and improving quality of life.
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