Despite facing unique regional challenges, entrepreneurs in the Arab world are boldly redefining the technological landscape, driven by a fusion of creativity, resilience, and vision. This article delves into the inspiring journeys of several successful tech entrepreneurs from the Arab world. Their stories illuminate not only their individual triumphs but also the broader potential and dynamism of the region’s tech sector. From e-commerce pioneers to innovative service providers, these case studies are revealing how these individuals are not just navigating but also shaping the future of technology and business in their societies.
Overview of the tech ecosystem’s growth in the Arab world
The tech ecosystem in the Arab world, particularly in countries like Saudi Arabia and the United Arab Emirates (UAE), has shown remarkable growth and dynamism in recent years. This growth is reflected in significant increases in venture capital investment, the emergence of new tech startups, and the development of supportive government initiatives.
In Saudi Arabia, the tech sector has been experiencing rapid expansion. In 2022, Saudi-based startups raised $972 million in funding, marking a 1.5x increase from the previous year. This growth is part of the government’s Vision 2030 program aimed at diversifying the economy and reducing reliance on oil. The country’s strategic initiatives, like hosting the Global Entrepreneur Congress and supporting scaled companies through various programs, have contributed to a thriving startup environment. Notably, Riyadh has ranked amongst the top performers in the Rising Star Index and has seen a surge in venture capital financing.
Similarly, the UAE has emerged as a key player in the MENA region’s tech ecosystem, focusing on nurturing homegrown enterprises and aiming to create 20 unicorns by 2031. The government has launched the Entrepreneurial Nation project, which includes the Skill-Up Academy, Startup Track, and Scale-Up Program, to support businesses in their growth phases. The UAE has also implemented several economic, legal, and social reforms to attract talented employees and businesses, and substantial foreign direct investments have been directed towards the tech sector.
Sub-sector strengths in these regions include Fintech, Agtech, New Food, and Cleantech. For example, in Abu Dhabi, there were 79 Fintech startups as of early 2023, and significant partnerships and investments are being made to further develop these sectors. The UAE, in particular, offers a supportive environment for startups with initiatives like the Golden Visa, which provides long-term residency and 100% business ownership to foreign entrepreneurs.
The shift from traditional business models to innovative tech-driven ventures in the Arab world is fueled by these developments, indicating a bright future for the region’s tech sector. This transformation is supported by a combination of government backing, increasing venture capital investment, and a growing recognition of the tech sector’s potential to drive economic diversification and innovation.
Case Studies of Successful Tech Entrepreneurs
The tech entrepreneurship landscape in the Arab world showcases a diverse range of success stories, each contributing uniquely to the region’s economic and technological growth.
Ronaldo Mouchawar and Souq.com
Ronaldo Mouchawar, a Syrian entrepreneur, co-founded Souq.com, which has become the largest e-commerce platform in the Arab world. Launched as an auction site linked to the Arab internet portal Maktoob, Souq.com was later spun off as part of the Jabbar Internet Group. It features a wide array of products across various categories and attracts millions of visits per month. The platform’s significant growth, including substantial financing and a large workforce, has made it a key player in the region’s e-commerce landscape. Souq.com’s success reflects Mouchawar’s vision and the growing digital economy in the Arab world.
The journey of Ronaldo Mouchawar, a key figure in the Arab tech world, with Souq.com, from its beginnings to becoming a major player in the region’s digital economy, and its eventual acquisition by Amazon for around $580 million in 2017, is a testament to his visionary leadership and entrepreneurial spirit. Mouchawar’s work has significantly influenced the e-commerce landscape in the Arab world.
Khalid Al Khudair and Glowork
Khalid Al Khudair is the founder of Glowork, a groundbreaking company in Saudi Arabia focused on women’s employment. Glowork has made significant strides in connecting Saudi women with job opportunities, despite societal and legal constraints that historically limited women’s participation in the workforce. Al Khudair’s innovation has not only empowered women but also contributed to the diversification and modernization of the Saudi workforce. This effort aligns with broader economic reforms in the Kingdom aimed at increasing female participation in various sectors.
This innovative platform has significantly contributed to female workforce participation in Saudi Arabia, boasting a database of over 1.2 million Saudi women.
Ashraf Sabry and Fawry
Ashraf Sabry is the founder of Fawry, an influential e-payment network in Egypt. Fawry has significantly changed how payments are made in Egypt, particularly in a context where traditional banking is less widespread. Established over a decade ago, it offers accessible payment solutions across a variety of locations, enabling transactions through ATMs, retail points, and smart wallets. Fawry’s innovative approach has made it a key player in Egypt’s financial landscape, particularly in driving financial inclusion and digital transformation.
In 2023, Fawry, Egypt’s leading provider of e-payment solutions, recorded impressive financial results. The company’s revenues reached EGP 1,444.2 million, a significant year-on-year increase of 42.4%. Fawry’s adjusted net profit for the first half of 2023 was EGP 327.9 million, up 290.4% from the previous year, and the statutory net profit was EGP 283.1 million, indicating a robust growth of 441.2%. These results underscore Fawry’s expanding role in Egypt’s digital finance landscape and reflect the company’s ability to adapt to consumer needs and diversify its services.
Ahmed Hindawi and Hindawi Publishing Corporation
Ahmed Hindawi is an Egyptian entrepreneur and technologist best known for co-founding the web-based scholarly publishing platform, Hindawi Publishing Corporation, alongside his wife, Nagwa. Established in Cairo in 1997, Hindawi Publishing Corporation started as a small enterprise and has since grown into one of the world’s largest publishers of peer-reviewed, fully open-access journals.
Hindawi’s approach has been instrumental in transforming the landscape of academic publishing by promoting open access, where research papers are available for free online, rather than behind paywalls. This model has played a significant role in democratizing access to scientific knowledge, making it more accessible to researchers around the world, particularly in developing countries.
In January 2021, Wiley, a global leader in research and education, announced the acquisition of Hindawi Limited. The acquisition was part of Wiley’s ongoing commitment to advancing open research and meeting the needs of the research community.
The deal was valued at around $298 million, representing a significant investment by Wiley in the open access publishing model. The acquisition of Hindawi by Wiley marked a notable moment in the scholarly publishing industry, underlining the increasing importance of open access in academic and scientific communication. It showcased the value of Hindawi’s approach to open access publishing and its impact on the global research community.
Swvl
This Cairo-headquartered app-based bus service was launched to offer cost-efficient and safe transportation. Swvl, co-founded by Mahmoud Nouh, Ahmed Sabbah, and Mostafa Kandil, operates hundreds of buses along numerous routes, particularly popular among students and commuters.
Swvl went public on Nasdaq through a SPAC (Special Purpose Acquisition Company) merger with U.S. women-led blank check company Queen’s Gambit Growth Capital. This merger valued Swvl at around $1.5 billion. Swvl is known for its innovative bus-hailing services, enabling intra-state journeys in several cities across Africa and the Middle East. Since its inception, Swvl has expanded its services, including inter-city rides and corporate services, with plans for further global expansion. The company has been instrumental in reducing carbon emissions and promoting sustainable transportation.
Ala’ Alsallal and Jamalon
Ala’ Alsallal is the founder of Jamalon, an online book marketplace that began around seven years ago. This venture reflects his journey from a modest background in Jordan to establishing a significant presence in the Arab book market. Jamalon stands out for its extensive collection, offering over 12 million titles, including a substantial assortment in Arabic. This is particularly notable as Arabic books were challenging to find online before Jamalon’s emergence.
Alsallal’s story is inspiring. He grew up in Jordan, in a family of Palestinian refugees, and despite financial constraints, he pursued his passion for technology and learning. His education in engineering and experience working in Greece laid the groundwork for his entrepreneurial venture. He was inspired by the limited online presence of Amazon in the region and the difficulty in finding Arabic books online. With a simple business plan, he garnered the support of angel investors and mentors, including Fadi Ghandour, founder of Aramex.
What sets Jamalon apart is its innovative approach to book distribution. In Dubai, the company opened the region’s first “print on demand” operation, making book printing and shipping more efficient and cost-effective across the UAE and beyond. This strategic move has not only streamlined Jamalon’s distribution but also attracted international partners.
Despite expanding operations to Dubai, a significant portion of Jamalon’s back-end operations, including call center, supply-chain management, procurement, and finance, remains in Amman, Jordan, capitalizing on the local talent and more affordable operational costs. This strategic division allows Jamalon to leverage the advantages of both locations: the logistical and business-friendly environment of Dubai and the skilled, cost-effective workforce in Jordan.
Alsallal’s journey with Jamalon is a testament to the potential for tech-driven entrepreneurship in the Arab world, especially when traditional barriers are overcome with innovative thinking and strategic planning. His story is not just about personal success but also about contributing to the regional economy and making Arabic literature more accessible globally.
Impact on Regional and Global Economy
- Boosting Regional Economic Growth: Entrepreneurs like Ronaldo Mouchawar, Khalid Al Khudair, and Ashraf Sabry have contributed to the diversification of the Arab world’s economies, traditionally reliant on oil and gas. By developing sectors like e-commerce, digital payments, and online services, they have created new industries, stimulating economic growth.
- Global Market Integration: The success of companies like Souq.com (acquired by Amazon) and Fawry demonstrates the integration of the Arab world into the global digital economy. These companies not only attract international investment but also bring global business practices and standards to the region.
- Creating Employment Opportunities: These tech enterprises have generated numerous jobs, contributing to reducing unemployment in the region. The growth of these companies necessitates a wide range of skills, creating opportunities for diverse talents.
- Stimulating Innovation and Competition: The presence of these companies fosters a competitive business environment, encouraging innovation. They set benchmarks for quality and service, driving improvements across industries.
- Encouraging Entrepreneurship and Start-ups: Success stories inspire other entrepreneurs in the Arab world and beyond. This creates a dynamic start-up ecosystem, which is crucial for economic vitality and innovation.
- Cross-Border Collaborations and Expansion: Many of these companies, like Swvl and Fawry, are expanding internationally, creating cross-border economic ties and collaborations, further integrating the Arab economies into the global market.
- Driving Technological Advancement: The tech-driven ventures lead to technological advancement not just within their companies but in the region as a whole, as they often push for improved digital infrastructure and technological literacy.
The cumulative effect of these contributions is a more robust, diversified, and interconnected regional economy, which holds significant sway in the global economic landscape.
Conclusion
In conclusion, the case studies of successful tech entrepreneurs from the Arab world, such as Ronaldo Mouchawar of Souq.com, Khalid Al Khudair of Glowork, and Ashraf Sabry of Fawry, exemplify the remarkable potential and resilience within this vibrant region. Their groundbreaking contributions have not only reshaped the business landscape in the Arab world but also have had far-reaching impacts on the global stage.
These entrepreneurs demonstrate the power of innovation, strategic vision, and adaptability in overcoming regional challenges and capitalizing on emerging opportunities. Their success stories provide inspiration and valuable lessons for aspiring entrepreneurs globally and signify the burgeoning promise of the Arab world as a burgeoning hub for technological innovation and entrepreneurship. As we look to the future, it is clear that the Arab world will continue to be a fertile ground for tech-driven growth and transformation, playing an increasingly significant role in the global digital economy.