Dubai: Leading Entrepreneur Calls for Arab World Unity to Boost Investment

HIGHLIGHTS:

• Mohamed Ballout emphasized the need for Arab countries to unite to foster a unified market and support the growth of $10-billion companies in the region.
• Ballout advocates for early investment in technology and science, and encourages Arab entrepreneurs to pursue their dreams in the UAE for global success.
• Mahmoud Adi highlighted the challenge of limited access to capital for Arab startups, stressing the importance of reallocating regional funds to support local growth and entrepreneurship.

A leading entrepreneur has stated that the Arab world must come together to create an investor-friendly environment for the entire region. The CEO of Kitopi, Mohamed Ballout, explained that the Arab world is not seeing the emergence of $10-billion companies because the region does not function as a unified entity.

During a session at the World Government Summit, Ballout shared a recent conversation with "one of the world's largest investors," who questioned why he should invest in the MENA region when it lacks the scale of $10 billion companies seen in China and India. Ballout agreed, acknowledging, "He's absolutely right; we lack the ability to generate numerous $10-billion companies."

He continued, “One of the challenges I see is we operate as singular countries, we don’t operate as one single Arab world. I think that’s something that, while very difficult to do, is probably one of the most important things.” He pointed out that the GCC has a $2 trillion GDP, while India’s economy is around $4 trillion. Without its oil revenues, the GCC’s GDP would only be a few hundred million. Therefore, Ballout emphasized that the solution lies in the Arab countries coming together.

Ballout also highlighted that investing in technology and science from the outset would enable companies to create tools with the potential for global growth. He added that another solution is to provide Arab entrepreneurs with the freedom to dream big. “In many parts of the Arab world, aspiring to big dreams is often met with numerous challenges,” he said. “For those Arabs who can’t pursue their ambitions in their home countries, they should come here, make the UAE their base, and take their dreams global.”

Mahmoud Adi, co-founder of Abu Dhabi-based Shorooq, who also participated in the session, pointed out that a major challenge for young businesses in the Arab world is access to capital. Despite increasing interest in the region, particularly in the UAE and Saudi Arabia, Adi explained that capital remains scarce because investors are primarily from outside the region. While he acknowledged the benefits of foreign investment tapping into local markets, he emphasized that capital should be redistributed within the region, as there is no shortage of funds locally.

“If you look at the demographics, consumption, economies, we are one of the best places globally to be investing in,” Adi said, adding that this region is an emerging market, has real growth, sound economies, and USD-backed currencies. He added that though there are a lot of challenges, “none of these things will be solved by themselves.”

“We need to continue believing in ourselves, and continue moving forward,” Adi said.