Are you considering establishing your startup and starting your own venture? Rasmal portal provides you with a list of the top Arab cities where you can launch your business and embark on an entrepreneurial journey by browsing the characteristics of these destinations, such as:
- Average broadband speed of connections
- Literacy of the population
- Happiness percentage index of 10
- Office Rental Prices
- Electricity cost
The article also covers a summary report on the overall amount of funding raised by startups in the MENA region over the previous five months of the second half of 2022.
Startups Funding Harvest in the Second Half of 2022
The amount of money raised during various funding rounds in 2022 has demonstrated that the Arab region is a wise choice for new entrepreneurs. Here are the details:
June
In June 2022, MENA region startups raised US$323.7 million across 66 deals, with US investors contributing the most.
July
Arab startups raised US$105 million across 44 deals in July 2022.
August
August 2022 saw more than US$28.6 million invested in 5 startups around the Arab world, in addition to a US$150 million bank financing facility for the UAE company Tabby.
September
Arab startups raised US$173 million across 51 deals during September 2022.
October
October 2022 saw a significant increase in the amount of transactions, with startups in the region raising US$646 million in 69 deals, bringing the total investment to US$3 billion in 551 deals.
November
In the first third of November, 14 startups attracted investments totaling US$199 million, headed by YASSIR, which raised US$150 million.
With these funding rounds, the total amount of funding for startups in the MENA region in 2022 exceeded US$3 billion. It’s worth pointing out that the investment’s proceeds in 2021 raised a sum of US$3.14 billion.
Top 3 Arab Cities for Startups
The Arab countries have adopted the principles of building ecosystems, and supporting venture capital, accelerators, and business Incubators, which significantly supports the growth of startups. Now the Arab region is working to localise and attract revolutionary enterprises and ideas. According to their good ratings on the aforementioned indicators, these are the top 3 Arab cities for launching new startups.
1 – Riyadh – Saudi Arabia
Riyadh has established itself as the finest Arab city in the region for entrepreneurs, with one of the highest happiness percentages in the MENA region (6.49 out of 10) and an affordable cost of electricity ($5.17 per kWh).
- Broadband Speed: 94.64 (Mbps)
- Literacy rate: 95%
- Happiness index of 10: 6.49
- Office rental price: US$759.49 per sq ft
- Electricity cost: US$5.17 (p/kWh)
- Rating out of 10: 7.92
2 – Dubai – UAE
Dubai has the highest internet data download speed of any MENA city on our list at 189.07 (Mbps). High-speed internet will undoubtedly increase the effectiveness of the essential early stages of setting up a new enterprise. Dubai is a perfect interface for hybrid work and interacting with international employees and clients.
- Broadband Speed: 189.07 (Mbps)
- Literacy rate: 93%
- Happiness index of 10: 6.56
- Office rental price: US$492.60 per sq ft
- Electricity cost: US$8.61 (p/kWh)
- Rating out of 10: 7.78
3 – Kuwait City – Kuwait
Kuwait has a 96% literacy rate and a $3.08 (p/kWh) electricity price. It also has a fast broadband speed of 149.4 (Mbps), making it the ideal environment for start-ups, however the office rent is a bit expensive at $410.40 per month.
- Broadband Speed: 189.07 (Mbps)
- Literacy rate: 93%
- Happiness index of 10: 6.56
- Office rental price: US$492.60 per sq ft
- Electricity cost: US$8.61 (p/kWh)
- Rating out of 10: 7.78
7 Arab Cities Encourage SME Establishment
Nowadays, startups can bloom everywhere in the world. As an entrepreneur, you can take advantage of what some Arab countries have to offer by thinking about 7 of its cities that are growing in the field of SME establishment.
4 – Amman – Jordan
- Broadband Speed: 84.1 (Mbps)
- Literacy rate: 98%
- Happiness index of 10: 4.40
- Office rental price: US$332.95 per sq ft
- Electricity cost: US$10.70 (p/kWh)
- Rating out of 10: 5.97
5 – Manama – Bahrain
- Broadband Speed: 74.0 (Mbps)
- Literacy rate: 96٪
- Happiness index of 10: 6.65
- Office rental price: US$302.10 per sq ft
- Electricity cost: US$5.04 (p/kWh)
- Rating out of 10: 5.04
6 – Casablanca – Morocco
- Broadband Speed: 27.2 (Mbps)
- Literacy rate: 72٪
- Happiness index of 10: 4.92
- Office rental price: US$226.71 per sq ft
- Electricity cost: US$11.07 (p/kWh)
- Rating out of 10: 4.58
7 – Cairo – Egypt
- Broadband Speed: 40.0 (Mbps)
- Literacy rate: 76٪
- Happiness index of 10: 4.28
- Office rental price: US$316.12 per sq ft
- Electricity cost: US$4.55 (p/kWh)
- Rating out of 10: 4.31
8 – Baghdad – Iraq
- Broadband Speed: 31.7 (Mbps)
- Literacy rate: 80٪
- Happiness index of 10: 4.85
- Office rental price: US$243.74 per sq ft
- Electricity cost: US$1.59 (p/kWh)
- Rating out of 10: 3.75
9 – Beirut – Lebanon
- Broadband Speed: 18.2 (Mbps)
- Literacy rate: 94٪
- Happiness index of 10: 4.58
- Office rental price: US$414.04 per sq ft
- Electricity cost: US$0.60 (p/kWh)
- Rating out of 10: 3.47
10 – Tunis – Tunisia
- Broadband Speed: 11.1 (Mbps)
- Literacy rate: 81٪
- Happiness index of 10: 4.60
- Office rental price: US$195.95 per sq ft
- Electricity cost: US$195.95 (p/kWh)
- Rating out of 10: 3.19
We are delighted to provide a free consultation to address your questions about ecosystems and entrepreneurial opportunities through our expert team, who will respond to your requirement and offer advice on everything related to startups in the MENA region. We hope to be in touch with you soon!
Sources:
- Sortlist Data Hub Platform
- Wamda Website
- Hayatshabab Website
- Jawlah Website
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Last Updated on December 13, 2022 by Safiya K
