As you may know, the MENA region is formed by countries of the Middle East and North Africa. Even though there is no consensus on what countries are part of this region, there is one thing that’s common to all of them: Islam and the hospitality culture that describes them. As anybody could expect, this has even influenced Arab startups in 2022.
“If you have much, give of your wealth; if you have little, give of your heart.”
Arab Proverb
The Arab world faces many challenges, but an increasing number of enthusiasts see these as opportunities to bring smart solutions to those issues. At the same time, it is a chance for them to show how deeply they care about others while making a living out of it.
That’s how an increasing number of Arab startups are tackling the most demanding issues in the MENA region. From developing glasses for blind people to using augmented reality to connect surgeons around the world, there are many amazing entrepreneurs with outstanding ideas seeking to create a better world for everyone.
Why do they do it? Why are they taking such an effort to build something out from scratch instead of using proven ways to make a profit? Perhaps, it’s because they find meaning in what they do despite their aim to get great financial results.
Actual status of funding for Arab startups in 2022
This is not merely wishful thinking. As Magnitt reports, Q1 2022 shows great results both on capital investments and the total transactions closed.
As numbers only convey a meaning when compared with other numbers, Magnitt contrasts funding in the MENA startups over Q1 2022 with Q4 2021 to tell that the former saw an increase of 33.33% in comparison with the latter. In the case of Q1 2021, the growth in funding is even more astounding as it means a 161% raise.
As you can see in the MENA yearly funding evolution graph, in Q1 2022, MENA startups have received more funding than what they got in 2018 and it has already similar levels of funding to 2020.
In summary, the MENA Q1 2022 venture investment report brings exciting numbers for startups. During the first quarter of the year, they were able to:
- Raise around $864M in venture funding.
- Close a Mega Deal (over $100M). Rain, a cryptocurrency platform was the startup doing this which represents 35% of the venture funding received in Q1 2022.
- Concentrate their operations in EUA as 27.3$ of all deals were closed there.
- Established Fintech and T&L as the main destiny of all funds since they raised 53% of all funds.
What does this mean? It only shows what happens when those putting their wealth meet with the ones putting their heart into a project. As a result, startups can work and bring to reality an idea that could solve an actual issue. In that spirit, we share with you a list of 10 Arab startups that aim to make a difference in this world.
Arab startups in the MENA region to watch in 2022
It is very exciting to see how people are gathering together and putting their effort to make a dream become true. Not only is it a chance to make some profit, but also an opportunity to make the world a better place. Take a look at these projects to see whether you connect with one of them.
Abwaad
Based in Amman, Jordan, this startup is focused on making high-quality academic education for students in the MENA region. This innovative online learning platform uses artificial intelligence and machine learning to bring personalized content to its students based on their own learning pace.
Hussein Al-Sarabi and Hamdi Tabbaa founded the company in 2019. Since then, they have been that successful to the point of raising $5MM in March 2021 followed up by another fundraising of $20MM in November 2021.
Their secret is offering a great service for a small price. For only $15.00 the student gets 1 hour of tutoring which includes test prep, chat, and video tutoring. They also include creative video animations and huge question banks to bring unique learning experiences to their students.
Check out the Abwaad website for more details.
Amal Glass
Can robots coexist with us and augment our abilities? Adel Boseli and Mohamed Islam believe so. That’s the heart of Amal Glass, a startup helping blind and vision-impaired people to be independent and carry on with a normal life.
This robot takes the form of glasses which comes with many functions such as:
- Text reading.
- Currency recognition.
- Identify objects.
- Send text messages and make calls.
- Translate more than 50 languages.
- Smart lights for dark areas.
- Voice notes recorder.
This is not the full function list. There are even more on the Amal Glass website
Even though they started to work on these glasses in 2010, it was not until 2018 that they launched their startup. No doubt this is a great tool for those who depend on someone else assistance to perform daily activities.
Bekia
This startup invites you to make a treasure out of your trash. With a point system, households can trade their waste for food or domestic items. For businesses, they can get office supplies.
Going into the process of recycling is pretty easy. You just have to create an account, separate your waste, and book an order so they can send a trash collector to your doorstep.
Founded in 2017 and having started with only 2 employees, Bekia is now a leading startup in Egypt in the environmental field. Their main objective is to connect people with the environment and make it easy for them to reduce their impact on nature.
Coded
When talking about learning to program software, there is no better way than engaging with other people who also want to learn. That’s why bootcamps are a great place to hang with like-minded.
In that spirit, Hashim Behbehani founded Coded, the first coding bootcamp in the Middle East. Such a great project means a lot for those desiring to code but with low to medium English proficiency.
On the Coded’s homepage, they share some interesting stats along with some student stories that show how they have grown so far.
Desert Control
One of the biggest issues we face as earthlings is desertification, that is, fertile land going desert for several reasons. The aim of Atle Idland, the startup managing director, and his team is to combat desertification, soil degradation, and water scarcity.
To do so, they use LNC (Liquid Natural Clay), a mixture of water and common industrial clay that enables soils to retain more water. This way, they can become deserts into fertile soils and, at the same time, save water as LNC increases water retention.
As reported on the Desert Control website, they reached a market cap of NOK 1.29B (around $$145.27MM).
Derq
Can artificial intelligence prevent traffic accidents? That’s the gamble George Aoude, Karl Jeanbart, and Amer, along with their team, do. Equipped with several sensors such as video detection, CCTV, radar, and so on, they can perform advanced real-time analytics to predict and prevent vehicle collisions.
They are also capable of detecting individuals on the road to warn drivers and avoid any accidents. As seen on Derq’s website, they offer three different traffic solutions:
- V2X applications for CAV, which is a real-time infrastructure perception that helps drivers avoid any dangers.
- Adaptive traffic management that analyzes traffic events to prevent accidents. It works with both new and existing video detection systems.
- Smart pedestrian crosswalks to detect and predict any intent to cross streets to warn drives through flashing beacons.
Epilert
Having a relative that has epilepsy can be tricky. As it is difficult to know when a new seizure is going to happen, Firas Rhaiem and his team created a bracelet that monitors the patient health 24h.
Apart from this, the device can be used with a smartphone to contact caregivers. It also predicts when a new seizure might happen and can be set to send information to the patient’s physician to learn more about the condition.
Flextock
Founded in early 2021, Flextock is a great partner for those managing e-commerce and fulfillment operations. It covers several solutions, from warehousing and logistics to delivery and cash collection.
Currently working only in Cairo, Egypt, it has raised around $3.4MM. With a sticky message (pick, pack, and ship), they promise to take care of your inventory in 3 simple steps: 1) Store inventory, 2) Process orders, and 3) Ship wares.
Proximie
Even though we have achieved great milestones when talking about surgery, some developing countries lack the knowledge and technology to take advantage of new developments in the field. Proximie tries to solve this issue by using augmented reality to connect surgeons from developed countries with those operating under austere conditions.
Dr. Nadine Hachach-Haram is one of the team members behind this innovative solution that allows other surgeons to “transport” themselves into any operating room around the world and assist their colleagues accordingly.
Ziina
This startup plans to offer a P2P payment system for EUA. It will work as a virtual wallet to send and receive cash. As explained on the Ziina website, users can pay friends instantly, personalize every transaction with gifs, notes, or images, and accept payments.
Having raised $8.5M, Ziina is a good option for digital currency use and replace cash. It also works with debit and credit cards along with Apple Pay and Google Pay. It is currently in beta, but they hope to develop an app once they beat some challenges they have with regulators to find the right baking partners.
Conclusion
Based on this Arab startup list, it is hard not to be optimistic about the future. Thankfully, investors are seeing opportunities to support startups in the MENA region while the number of entrepreneurs is increasing.
By the way, this is only a small sample of the many startups in the MENA region. For a comprehensive list, visit the World Economic Forum website. Keep an eye on our blog for more insights into the MENA business world or simply subscribe to our mailing list not to lose any new articles.
Last Updated on August 19, 2023 by Safiya K
