Startups
Middle Eastern Female Entrepreneurs Outpacing Other Nations
![Middle Eastern Female Entrepreneurs Outpacing Other Nations](https://adigitalboom.com/wp-content/uploads/2019/08/Middle-Eastern-Female-Entrepreneurs-Outpacing-Other-Nations-1.png)
The number of new startups in the Middle East has risen by more than 42% in the past three years, according to a report from Markets&Markets. Of all the new startups being launched in the region, 25% are headed up by female entrepreneurs, reports Al Masah. In comparison, just 17% of startups in America are founded by women. So, why are Middle Eastern female entrepreneurs outpacing other nations?
Better education
An impressive 91.5% of young women in the Middle East are educated, according to Global Female Leaders. The International Finance Corporation’s (IFC) Women Entrepreneurs in the Middle East and North Africa report highlights that the majority of women who own their own businesses are well educated, with 91% of those in Bahrain, 79% in Tunisia, and 76% in Jordan having attended further education. Women are also growing increasingly knowledge in expert fields. UNESCO states that between 34% and 57% of students graduate in science, agriculture, or engineering. And despite women in the region facing increasing pressure to stay at home as housewives, technology is making it increasingly easy for them to launch their own business from their own four walls.
With little more than a business plan, their education, knowledge, and some common sense, females in the area can launch any number of profitable businesses. They will, however, require a computer to keep things running over smoothly. Thankfully, the STEM skills that these women have obtained will make it easy for them to determine what they require from their computers. From there, they can opt for a custom-built one to suit their needs and their business’s requirements. The Middle East Eye highlights how one of the most important skills females in education can learn is computer coding as this will aid them in building computers and understanding basic programming. And once it’s all off the ground, they have the potential to add to the $2.7 trillion that Mckinsey predicts the nation’s women will raise if equality in the labor market grows.
When contacted about the workforce benefits a good education gives Middle Eastern women, Start-Engineering advised that their research had revealed that the more women who enrolled in education and training, the larger number of female entrepreneurs there would be. They also added that this was particularly the case in “countries like Jordan, Lebanon, Israel, UAE, and the Palestinian territories.” However, they did advise that this correlation isn’t always witnessed in more conservative countries.
Financially responsible for others
The Economist reports that one in every three tech startups in the Middle East is owned by women. Entrepreneur and IT graduate Rasha Oudeh believes that Middle Eastern women are excelling in this field as well as multiple others due to them being financially responsible for their loved ones. Local culture means that individuals take it upon themselves to financially provide for their loved ones. As the majority of female business owners in the Middle East are aged between 35 and 54 years of age, they are of child-bearing age and are likely to have children. When reviewed further by the IFC, women entrepreneurs average between 1.4 and 3.2 children each, with those in Jordan tending to have more dependents. Oudeh says that it’s common for women to become even more financially responsible when they start earning. As a result, they’re more inclined to start up on their own, as this can lead to increased earnings.
Extensive experience
The majority of female entrepreneurs in the Middle East launch their first startup between the ages of 25 and 34. This means that they gain plenty of hands-on experience and knowledge between leaving education and starting up. The upshot of this is that they are dedicated to their roles. One in five put in a minimum of a 60 hour week in order to see their business thrive. Ultimately, every additional hour that they work will increase their confidence, skills, and ambition and will encourage the growth of their business. This determination and dedication is what is helping them to outshine their rivals in other countries. One study reviewed more than 3,000 technology startups in America and found that 90% failed before they reached their third birthday. In contrast, in the Middle East, a study reviewing female-founded startups found that they’d been in business for between 5.9 years and 10.6 years, depending on their location.
Going it alone
If there’s one thing that women in the Middle East and North Africa (MENA) aren’t afraid of, it’s going it alone. In Bahrain, 59% are sole owners of their business, while 55% of female entrepreneurs in Tunisia say the same. Even Jordan and the UAE have impressive female-only ownership rates at 48% and 41%. According to Your Story, this makes MENA the most successful region for sole female-owned businesses. Branching out alone is helping the nation’s solo female entrepreneurs achieve success as:
- They haven’t got to meet anyone else’s expectations
- Can work the hours which suit them and their family
- There’s no one else to run business decisions past
Fighting for equality
There’s no denying that women who own businesses in the Middle East are doing well for themselves. Research shows that 33% in the UAE make more than $100,00 USD per annum. Whereas, in America, this figure is a mere 13%. However, these women have had to work hard to get to this point. Yemen-born Rahma recalls how she quit her beloved job in medicine due to being grossly underpaid. Meanwhile, Jordan’s Fida Taha had to face the wrath of her family when she left her job to launch her own digital business. Admiringly, she plowed on without their support and went on to run multiple successful video companies.
Entrepreneurship is encouraged
If women engage in the labor market, they have the potential to add $600 billion to the local economy every year. As a result of this, there are initiatives in place in the region that encourage and support women looking to start their own businesses. This includes Bahrain’s Bahraini Women Development Portfolio Fund which provides everything females in the Kingdom require to get their startup up and running. In addition, KPMG states that it’s up to 35% cheaper to launch a company in Bahrain than in other countries.
Businesswomen in the Middle East are thriving thanks to a number of factors, including having a great education and the desire to look after their loved ones. As a consequence, they are running digital businesses which are surging billions into the local economy and which are standing the test of time. And it’s these factors combined that are putting Middle Eastern female entrepreneurs one step ahead of the businesswomen in neighboring areas.
Startups
Rising from Debt: Al Nashmiah Farms’ Battle to Empower Indebted Women
![Rising from Debt: Al Nashmiah Farms' Battle to Empower Indebted Women](https://adigitalboom.com/wp-content/uploads/2024/02/Alnashmiah-farms.jpg)
Al Nashmiah Farms, committed to aiding women burdened by debt and facing the threat of incarceration, offers a novel solution for them to earn their way to freedom. Under the leadership of Razan Harb, motivated by her family’s financial struggles, the farm has become a pivotal force in rescuing those ensnared in the debt trap, providing them with employment and a sense of purpose.
Harb, observing the plight of many women who took loans in hopes of improving their families’ fortunes, only to be overwhelmed by unfortunate circumstances, economic downturns, and oppressive taxes, has established a farm that serves as both a source of employment and a supplier of high-quality produce to major markets.
The farm’s operations include the provision of household essentials, emphasizing the importance of quality through methods such as nitrogen sterilization and the use of healthy packaging. Additionally, Harb has initiated work-from-home opportunities, enabling women to engage in the packing of vegetables and fruits for market and direct sales, thereby offering a sustainable model for economic independence and recovery from debt.
News
GoDaddy’s Global Markets VP Predicts Egypt’s E-commerce to Hit $9.88 Billion by 2028
![GoDaddy's Global Markets VP Predicts Egypt's E-commerce to Hit $9.88 Billion by 2028](https://adigitalboom.com/wp-content/uploads/2023/12/Selina-Bieber-the-Senior-Director-of-Global-Markets-at-GoDaddy.webp)
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
Apps
Saudi Fintech ‘Lendo’ Raises $28M in Series B Funding
![Lendo Secures $28M in Series B Funding Led by Sanabil Investments, Eyes IPO](https://adigitalboom.com/wp-content/uploads/2023/12/Untitled-3-1.webp)
Lendo, a Saudi Arabia-based shariah-compliant debt crowdfunding marketplace, has raised SAR 105 million ($28 million) in Series B funding led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (“PIF”). The round saw participation from Shorooq Partners, AB Ventures and other investors.
Lendo is a Shariah-compliant, debt crowdfunding marketplace that helps pre-finance outstanding invoices for businesses in Saudi Arabia. The platform is a community of creditworthy borrowers and sophisticated investors looking for alternative investments. The platform is licensed by the Saudi Central Bank (SAMA). Lendo will use the funds to support its fast-growing customer base in Saudi Arabia which has grown 3X year-on-year, introduce more innovative financing products, and accelerate market expansion plans.
“With this funding round, we are going to expand into new markets, support new and current customers, and launch new Shariah-compliant products, all the while continuing to innovate the marketplace for digital lending. We are going to make financial services more accessible, affordable, and inclusive for everyone. I am excited to see what the future holds for our company,” said Osama Alraee, CEO, and co-founder of Lendo, who also disclosed its plans for an IPO within the next few years.
Alraee has also expressed his gratitude to SAMA (Saudi Central Bank), Fintech Saudi, MCIT, Misk, and Monshaat for their unwavering support, emphasizing the pivotal role they have played in advancing financial inclusivity and fostering innovation in partnership with Lendo to reshape the financial landscape. Their dedicated efforts in advancing financial inclusivity and fostering innovation have been invaluable to us. We greatly appreciate their partnership in our mission to transform the financial landscape
Commenting on the announcement, Sanabil Investments said: “Lendo is a leading fintech company that is transforming the financial services industry in their specialist area of Shariah-compliant digital lending for SMEs. The Lendo team, especially the founders, Osama and Mohamed, have achieved a significant amount in a relatively short period, and we are eager to join their journey of increasing access to flexible financial solutions in Saudi Arabia and the region at large.”
“The growing demand for alternative, agile, and accessible lending solutions presents a significant opportunity. At Lendo, we are well-positioned to lead the charge in promoting financial inclusion not only in Saudi Arabia but also beyond. By fueling SME growth, we aim to contribute to the realization of Saudi Arabia’s Vision 2030 economic goals and to create a ripple effect of opportunity throughout the MENA region,” said Mohamed Jawabri, COO, and co-Founder of Lendo.
Lendo previously raised a SAR 27 million Series A funding round ($7.2 million) in 2021 led by Derayah Ventures with participation from Seedra Ventures and other investors, bringing the fintech’s total funding to SAR 132 million ($35.2 million).
Since the inception of Dec 2019, Saudi fintech Lendo has processed more than 2,500 financing transactions on its platform, providing over SAR 1 billion ($300 million) in financing to SMEs and generating SAR 140 million ($37 million) returns for investors.
The Small and Medium Enterprise financing landscape in the Middle East and North Africa (MENA) presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually. According to the International Finance Corporation (IFC), the SME financing gap is estimated at SAR 19.5 trillion ($5.2 trillion) every year in developing countries.
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, which aligns with the Saudi Vision 2030 to significantly expand SME lending from 4% in 2018 to 20% by 2030.
The total value of debt crowdfunding in Saudi Arabia surged from 1.4 million SAR in 2019 to SAR 771 million in 2022, marking a remarkable 430% growth, according to SAMA’s annual fintech report 2022.
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