Middle East Tech Startups Warned to Raise their Game as Competition Intensifies

Middle East tech startups have been warned to raise their game as global competition heats up across the region, particularly in the UAE and Saudi Arabia, where an influx of international founders is redefining the landscape.

Rashit Makhat, Director and Co-founder of Scalo Technologies, the UAE tech venture company
 

With Dubai firmly positioned as a magnet for international tech talent and Abu Dhabi emerging as one of the region’s fastest-growing startup hubs, posting a 28% increase in ecosystem value last year, founders are under growing pressure to prove their worth in an increasingly selective investment climate.

Saudi Arabia, meanwhile, continues its rapid rise as a startup powerhouse, backed by Vision 2030 and government initiatives that are attracting both local and overseas companies aiming to tap into the Kingdom’s evolving digital economy.

Rashit Makhat, Director and co-founder of Scalo Technologies, the UAE tech venture company, says this fast-changing environment means founders must not only demonstrate strong business models and scalable ideas, but also show resilience, adaptability, and deep market understanding.

“Entrepreneurs can no longer rely on a good idea alone,” says Makhat. “They need a clear plan to scale their business. They must demonstrate a deep understanding of their market, and that their product or service can not only survive, but thrive, in a rapidly changing economic landscape."

“Today’s investors are more cautious, prioritizing startups with proven track records, scalable business models, and clear paths to profitability. Entrepreneurs must focus on building a strong brand, creating a loyal customer base, and demonstrating their ability to adapt to market changes.”

He points to the success of regional startups like eyewa, the Middle East’s largest online eyewear retailer, as an example of the level of maturity and clarity investors now expect. The company raised $100 million in Series C funding towards the end of last year to expand R&D, talent acquisition, and retail presence.

“This highlights how selective investors are becoming” said Makhat. “Only startups with a clear value proposition, a solid business model, and a strong potential for growth, can attract significant funding.” To help startups succeed and stay ahead, he recommends five key principles:

• Motivation: Having a strong reason for starting your company can help you stay motivated.

• Intuition: While data and numbers are important, sometimes you need to trust your gut. Your intuition can help you make good decisions, especially when things get tough.

• Courage: The tech world is full of risks and uncertainties. You need to be brave and willing to take chances to succeed.

• Foresight: It's important to think about the future and be prepared for what's to come. This means staying up-to-date on trends and technology.

• Inspiration: Building a successful company can be inspiring, but it's also important to be inspired by others. Look for role models and mentors who can help you on your journey.