Invest Tech: The Era of Opportunity in MENA (Oraseya Capital)

Summary

• More than $750 million was invested in 480 deals in MENA between 2013-2015.p.22
• Early stage deals (<$500K) represent between 70%-80% of the deals done each year.p.22
• MENA e-commerce penetration is 0.4% of consumer spending versus 3.0% in APAC.p.19
• SMEs represent up to 94% of all businesses in the GCC.p.8
• $436 million of funding was raised in MENA in 2016 to date across approximately 36 deals.p.25
• The UAE and KSA enticed over 75% of MENA investment.p.2

Key insights

1. The UAE ranked first in 2015 by value of deals, while Egypt dropped to 5th place.p.20
2. The UAE captured 2/3 of total dollars invested in 2015 because many growth-stage businesses in MENA are based in Dubai.p.22
3. MENA Internet usage is growing at a compounded 40% per year, with 100 million Arabs online.p.12
4. Only 3% of all online content is in Arabic.p.12
5. 65% of the population in MENA is under 35.p.16
6. Digital entrepreneurs are estimated to add $14 billion to the UAE's GDP by 2020.p.27
7. BECO Capital's average investment is $400K at seed, $2M at Series A and $5M at Series B.p.31
8. MENA VC remains underfunded compared with other emerging markets.p.23