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Today, I wanted to reflect on the progress of technology development in the GCC region. Having spent the past two and a half years in UAE's tech ecosystem, I've noticed a set of strong positive transformation indicators. Here, I reflect on key elements I noticed (not exhaustive).

Growth of Government-Led Innovation Infrastructure

The past 5-7 years, the region has experienced a strategic shift in governmental priorities toward technological self-sufficiency. In UAE alone, I can cite the Technology Innovation Institute (part of ATRC), Sharjah Research & Technology Park (SRTIP), and Dubai Future Foundation. Most of these hubs were created recently. Each hub is funded by the respective emirate and strives to build the technologies of tomorrow. There is a missing piece: a technological property push from universities and an emergence of university spin-offs. It will happen, but it takes time.

International Technology Migration

"Many companies don't want to go to MEDICA (the famous healthcare exhibition in Germany) and prefer to focus on Arab Health," Said a German Deeptech CEO during a call a few days ago.

A particular signal is the increasing interest from established international technology companies in establishing regional operations. This year, I've engaged with Swiss and German firms to explore secondary manufacturing facilities in the UAE and KSA.

Parallel to this, I'm seeing the emergence of innovative local startups developing proprietary technology. Companies like Enercap exemplify this trend by maintaining end-to-end operations within the UAE.

Evolving Investment Landscape

The regional venture capital ecosystem shows notable evolution, particularly in its approach to deep tech investments.
Firms like Middle East Venture Partners (MEVP), VentureSouq, Alturki Ventures, Shorooq, and Phaze Ventures actively invest in early-stage deep tech startups, with KSA leading this trend.
We're still far from European and US levels. I still don't see myself creating a hardware tech startup in MENA, but seeing the progress is encouraging.

Strategic Market Entry Guidelines

For technology companies considering GCC market entry, I recommend tailoring your approach based on your development stage:

Early-Stage Startups:

• Leverage incubation/acceleration programs for their network value

• Focus on programs with strong investor connections (Hub71, Flat7Lab, In5Tech in UAE; The Garage in KSA)

• Use these platforms primarily for market visibility and investor access

• If you're in Europe (France, UK, Germany), the US, or China, you have a better chance of getting initial funding there. Especially for hardware deep tech.

Established Companies:

• Consider market size and regulatory environment carefully: UAE is more accessible than KSA.

• KSA offers the largest market and stronger early-stage funding

• UAE provides easier company setup and a more mature investment landscape

• For manufacturing operations, consider UAE for initial quick setup and KSA for scale.

• For financing, there are specialized banks like EDB that specifically support manufacturing companies with at least a 2M+ AED revenue threshold.

What's my strategy?

In my specific case, I choose another approach.

By establishing a smart solution agency specializing in AI, Blockchain, Quantum Computing, and Intelligent IoT solutions, I'm building a foundation that serves multiple purposes:

• Immediate revenue generation

• Deep market understanding through client interactions

• Resource accumulation for future proprietary technology development

• Network building within the regional ecosystem

I plan to use the revenue and insights to build proprietary technologies and capacity in the region, little by little. That's the plan, but I prefer to view it as a trajectory. The future might lead to a different outcome with different unexpected hurdles and opportunities.

💡 Looking Ahead

While the GCC's technology ecosystem may not yet rival established hubs in Europe, China, or the US, it shows remarkable momentum. Combining government support, increasing international interest, and an evolving investment landscape creates a unique opportunity for technology companies willing to understand and adapt to regional dynamics.

Each country has specific enablers & constraints; you have to play with the game rules in mind (while still having a bold vision).

Amine Rabehi

Find me on LinkedIn or Book a Free Call

🔍 Whenever you’re ready, here are 3 things I can help you with:

• Technology Solution/Product consultancy: I help you assess your product idea from a technological & business point of view. So far, I have built a network of professionals covering the MENA region in term of IP, Market Research & Complex AI solution development.

• Market entry strategy and support: understand the market, legal framework

• Tech Product Development Solutions: I’ve managed more than 15 tech product development projects (hardware & software). I help you go from idea to initial batch launch.