Initiatives by top MENA cities to become startup hubs
Major MENA cities are competing to become the startup hubs. In their focus to diversify from their dependency on oil, governments are setting up funds, updating regulations to make it easier for innovative companies to set up, as well as setting up accelerators, incubators, and other investment vehicles.
Dubai is still leading the way, however it is an expensive city for startup entrepreneurs. Abu Dhabi set up Hub71, as part of which it will be providing a AED 1 billion package for startups. Half of this amount will go into providing subsidies for housing, office space and health insurance, thereby easing setup pain points of startups.
As part of its Vision 2030, Saudi Arabia is focusing on SME and startups as one of the most important sectors for economic prosperity. It has launched VENTURE by Invest Saudi, the government-owned Saudi Venture Capital Company (SVC) with a fund worth SAR 5 billion ($1.33 billion), as well as many other funds and agreements to provide visas and licenses to VCs and startups.
Amman is boosting talent and is ripe for tech startups that have a closer connection to the west, hence easier prospects of getting international funding. While Cairo offers cheaper talent, and the country is doing much to boost the entrepreneurial flair with funds and easing regulations.
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