The Future of Startups in the Arab Region

Abstract

Since the coronavirus (COVID-19) outbreak, the majority of Arab nations have experienced economic difficulties, including high unemployment and poor per capita income. In view of these difficulties, this paper aims to shed light on the opportunities that startups could provide to Arabian countries. After the world witnessed Silicon Valley's transformation from a small, unknown village to a region regarded as one of the richest places in the world that attracts entrepreneurs and investors, the governments now support young people in their efforts to launch their own startups. Through this paper, a detailed investigation was made to highlight the factors that contribute to Silicon Valley's success and what gaps need to be filled in the Arabian region to build a new startup ecosystem. Our research found that research centers, talents, investors, accelerators, and other associated components are necessary to build a strong startup ecosystem in the Arab world. The results demonstrated how feasible it is to create such an ecosystem in the Arab region, particularly in light of the remarkable success of several startups like Careem, SWVL, and Souq, which have helped young Arabs believe in themselves and attract investors to their ideas. As a result, the Arabs have the chance to build on these startups, provide all the youth with the facilities, and encourage the startup culture among themselves to complete the ecosystem that has the potential to improve the economic status of Arab nations.