How to keep the region's startup ecosystem thriving

Startups are a powerful force in the realm of innovation. They drive existing industries to compete and stay up to date with current trends, and they can make room for new and emerging industries as well as provide employment. Given the GCC nations’ commitment to economic diversification in recent decades, and a subsequent shift from oil dependency, governments have been pushing innovation and entrepreneurship. It has subsequently becoming easier to doing business in the region as a whole. There is still, however, enormous capacity for national ecosystems to grow to foster the creation and development of startups so they can account for greater portions of GDP and encourage more young people to look towards entrepreneurship as a career option. Governments across the GCC are committed to fostering a thriving startup ecosystem through initiatives such as regulatory reforms, funding programmes and incubation centres. The UAE’s National Innovation Strategy, Saudi Arabia’s Vision 2030, and Oman’s Vision 2040 are testaments to their respective nations’ commitment to nurturing the local business infrastructure. The region also boasts of a rich history of entrepreneurship embedded in its heritage, with numerous long-running family businesses that have been passed down to younger generations. Nevertheless, there is a need to sustain modern frameworks that continue the tradition of entrepreneurship to the future. In order to thrive and catalyse growth, GCC nations can learn from other countries that have created and maintained effective ecosystems that facilitate startups. Singapore is a great example of a modern nation that has strengthened business infrastructure through strong government support, tax incentives and a focus on creating innovation hubs. The establishment of clear regulatory frameworks and favourable taxation systems has been key to the expansion and vibrancy of its entrepreneurial landscape. There has been a steady rise in venture capital and angel investments in the Gulf region, with more firms showing interest in supporting startups, particularly in tech. Several entrepreneurs, however, continue to find it difficult to acquire funding in early stages, especially in comparison to global startup hubs. I anticipate witnessing greater awareness among angel investors given the potential that startups bring to the region, and more widespread use of crowdfunding platforms that enable new businesses to scale rapidly. The region has been fast in the realm of digitisation and has been attracting investments in digital infrastructure, AI and cloud computing. A strategic push towards collaboration between startups and growing technology-driven sectors could lead to rapid and sustainable growth. The community-centric culture in the GCC, with the majlis being one of the drivers of socio-economic progress, I believe there is enormous potential to use the power of mentorship to support young entrepreneurs, who would undoubtedly enjoy the privilege of learning from their seniors whose businesses have stood the test of time. This would also spur collaboration within the business community and allow synergistic alliances. In a similar vein, collaboration with global players, particularly those in tech and innovation, could lead to excellent avenues that would enrich local startup scenes. Silicon Valley serves as a powerful illustration of this, where startups have been partnering with firms across borders and expanding their own operations to have international bases, customers and investors. While the region has witnessed expansion in this area, it could benefit from accessible networks of incubators, accelerators and co-working spaces that provide crucial support services to startups in their early stages. GCC nations have a strong geographical advantage as the gateway between the east and west, allowing entrepreneurs to offer unique advantages to investors and partners from both strong and emerging markets. The past few decades have seen a rise in higher education within the region, with the local talent market growing stronger through formal education and training. Startups have access to a talent pool like never before but this also means they must be competitive in terms of compensation, work culture and benefits so they can attract and retain the cream of the crop. I do not doubt that the Gulf countries have a bright future as far as startups are concerned, owing to strategic measures taken by governments, increase in funding, digitisation and vibrant business environments. It is important to keep our eye on the prize, learn from best practices around the world, increase funding and plan in order to foster long-term growth and innovation.