A New Chapter Unfolding in the Region
2023 was hands down the year that commercialized
AI. Consumers who had never used AI before began to experiment with the ground-breaking technology, which is quickly revolutionizing industries around the world. At the same time, every business with a vision for the future has realized that the rapidly developing technology will make or break its ability to get ahead.
It is also the year that we started to see how Saudi Arabia’s Vision 2030 is panning out. Saudi is quickly emerging as a significant player that will make the region as a whole much stronger by driving funds, resources, and innovation into diverse sectors. In doing so, it is upping the game for other players in the GCC, increasing competition and creating a larger market for regional businesses.
It’s also giving them a run for their money. In 2023, Saudi VC funding outpaced VC funding in the UAE for the first time ever--a clear indication that Saudi is becoming a significant hub for innovation in the region. Notably, the last quarter of 2023 saw 2 fintech unicorns emerge from Saudi--Tabby and Tamara. ese fintechs, along with many others in the region, are changing how consumers engage with retail, whether online or offline.
In the meantime, the UAE has cemented its position as one of the top destinations worldwide for businesses and innovation. By creating an enabling environment for innovation, it has created a space for startups looking to find novel solutions across sectors and carve out a niche for themselves. It has attracted businesses and talent and created an ecosystem to support it. As Saudi comes on board with its own ambitions, which include becoming the leading aviation sector in the region and becoming the gaming capital of the world, among other things, we will begin to see a region that is much more dynamic and diverse, not to mention competitive.
On the funding front, experts are forecasting more M&As and IPOs in 2024. And although VC funding dropped in 2023, we saw 3 unicorns emerge from the region this year. We are also seeing more specialized funds coming out of the GCC to support businesses as well as more funding going to early-stage startups--a sign that more innovation is yet to come.