It is either the worst or best time to launch a start-up in Egypt — depending on whom you ask — as the country’s economic crisis deepens.
Yehia Ashour, the former chief executive of Beltone SME, is placing his bets on the latter.
He and his co-founders — chief operating officer Ahmed Zeinhom and chief information officer Omar Aboulmagd — have set up FinTech start-up Invia to cater to underserved small businesses that have limited access to financing.
“We want to localise the value chain and develop the companies that will make this country less dependent on imports,” Mr Ashour told The National.
“With the economic conditions in Egypt, specifically, the solution we need is to make the small businesses bigger, and especially the small manufacturing businesses.”
The economic fallout of the Russia-Ukraine war has left Egypt with soaring inflation, a higher import bill, declining foreign currency reserves and a depreciating pound.
At the same time, global macroeconomic challenges have placed a strain on start-up funding and deal levels worldwide.
Funding for start-ups in the Middle East and North Africa remained relatively flat in 2022, recording a total of $3.1 billion compared to $2.9 billion in 2021, according to data platform Magnitt’s Emerging Venture Markets Report released this month. The number of deals declined by 8 per cent, from 679 to 627.
Egyptian start-ups raised $517 million last year, compared to $501 million in 2021. Egypt led the Mena region with 160 deals, but that is still a 3 per cent decline from 2021.
However, FinTech captured 29 per cent of funding in Mena, more than the transport and logistics and e-commerce sectors combined.
Invia’s founders all have a finance background and held senior roles at Beltone SME, a subsidiary of investment bank Beltone Financial that was set up in April 2020 to offer revenue-based financing for small and medium enterprises.
Established in 2002, Beltone offers a variety of financial services in Egypt and the Mena region.
Abu Dhabi-based investment company Chimera acquired a majority stake in the Egypt-listed company in August.
While Mr Ashour was Beltone SME’s co-founder and chief executive, Mr Zeinhom was its chief investment officer and Mr Aboulmagd was its vice president of investment.
They left Beltone SME last month to embark on a similar mission, also offering revenue-based financing, meaning investors agree to provide capital in exchange for a certain percentage of revenue. But Invia is focusing on small businesses that often struggle to access funds.
“Banks are always interested in very sustainable, very predictable companies that are very stable in their cash flows,” Mr Ashour said.
“The small businesses are always in the grey area. They’re too big for microfinance, yet they’re too small for banks and equity investors.”
The Central Bank of Egypt has made financing micro, small and medium-sized enterprises, or MSMEs, a priority since 2016, when it issued a directive obligating banks to allocate 20 per cent of their credit portfolio towards such entities within four years. In 2021, the central bank increased that requirement to 25 per cent.
Invia is hoping to attract the financial institutions and banks that have the SME mandate by helping businesses reach the “investable” level.
“We’re not looking to compete with banks. We’re looking to complement banks and help these small businesses grow, so that banks are their next financing partner,” Mr Ashour said.
Invia is currently raising a pre-seed round, which is likely to be disclosed in the next couple of months.
It is dealing with three difficult variables at once — the global economic crunch and a declining economic situation in Egypt, as well as layoffs and spending cuts in the venture capital and start-ups space.
However, the depreciation of the Egyptian pound, which has halved in value to the dollar over the last year, may have an upside, Mr Ashour said.
“We’re looking to finance and grow the local businesses, which means we’re not dependent on dollars,” he said.
“When attracting venture capital funds and early stage investors, it’s an advantage. Because my ask is getting lower by the day.”
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Cricket World Cup League 2 Fixtures
Saturday March 5, UAE v Oman, ICC Academy (all matches start at 9.30am)
Sunday March 6, Oman v Namibia, ICC Academy
Tuesday March 8, UAE v Namibia, ICC Academy
Wednesday March 9, UAE v Oman, ICC Academy
Friday March 11, Oman v Namibia, Sharjah Cricket Stadium
Saturday March 12, UAE v Namibia, Sharjah Cricket Stadium
UAE squad
Ahmed Raza (captain), Chirag Suri, Muhammad Waseem, CP Rizwan, Vriitya Aravind, Asif Khan, Basil Hameed, Rohan Mustafa, Kashif Daud, Zahoor Khan, Junaid Siddique, Karthik Meiyappan, Akif Raja, Rahul Bhatia
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey
Rating: 3.5/5 stars
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
More on Quran memorisation:
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Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UAE currency: the story behind the money in your pockets
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Results
Ashraf Ghani 50.64 per cent
Abdullah Abdullah 39.52 per cent
Gulbuddin Hekmatyar 3.85 per cent
Rahmatullah Nabil 1.8 per cent
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
