What Do Saudi Entrepreneurs Think about Entrepreneurship in the Kingdom?
As entrepreneurship awareness builds lately in the
Arab World, Saudi Arabia, with its abundance of free capital and
interest among the youth in new business, is poised for startup
growth. Many leading entrepreneurs in the region also have
set their sights on expanding into the Saudi market,
especially in web and mobile fields, given that Saudi Arabia has
the highest
rate of smartphone penetration in the region, at 62%.
Based on these factors, we asked entrepreneurs from Saudi about
what they think of entrepreneurship in KSA in its current state.
Here are their answers.
“Saudi Arabia Speaks the Entrepreneurship Language”
Mohammad Badawi, a Saudi entrepreneur of Palestinian
descent, and co-founder of many startups, including SocialHub, a social media and
competitive strategy company developing smartphone applications,
explained that 2008 witnessed a revolution in startup projects in
Information Technology in KSA. The way he describes it, the term
‘entrepreneur’ was not widespread at that time, and only became
common in mid-2009 as more local youth projects, startups and
investors emerged.
“We are now completely aware that we are somewhat behind the global
progress, but what has been achieved in four years is considered a
quantum leap, as we have started to witness the results of our hard
work through many international celebrations and even in
conferences and youth discussions. All I can say is that KSA is
starting to speak the entrepreneurship language,” added
Baddawi.
Entrepreneur
Saleh Al Zaid, founder of LunarApps,
agrees with the point of view that the entrepreneurship scene in
Saudi Arabia is still in early stages. “The entrepreneurship
environment is still not quite developed, but current
entrepreneurs, interested investors, initiative supporters, and
incubators are trying to build up the ecosystem. We still need a
few years to build the appropriate investment environment in the
technology and web services industry,” he says.
“Saudi Arabia Needs a Safe Environment”
Abdel Rahman Hariri, CEO and co-founder of
Hayyakom, started his entrepreneurship journey in the U.K.
Based on his experience there, he believes that the Saudi
entrepreneurship scene needs to invest more in business incubators
and accelerators, and organize more entrepreneurial events and
occasions.
“To encourage entrepreneurship, a safe environment must be provided
to allow entrepreneurs to present and discuss ideas without fearing
that their concepts will be stolen. Otherwise, most entrepreneurs
will avoid working with co-founders, although studies abroad
indicate that co-founders are a very important factor in boosting
startup success,” says Hariri.
“The Interest of Both Public and Private Sectors has
Increased”
Abdullah Obeid, Founder and CEO of
Altqniah Al Mubaraka, thinks, however, that the Saudi
entrepreneurship scene has been blessed with some factors that have
made it one of the best in the Middle East, both economically and
socially. “The interest of both public and private sectors has
increased in the past few years, and we can see that through the
many projects supporting local entrepreneurship, such as
entrepreneurial incubators, accelerators, conferences and
competitions. But we still have a lot to do to create a worthy
local entrepreneurial environment that can launch its initiatives
into the world,” he says.
On another hand, Rakan Al Eidi, CEO of Endeavor Saudi Arabia, which supports entrepreneurship
efforts in the KSA, believes that the entrepreneurship industry is
just starting to develop now. Al Eidi attributes this
transformation to public sector investment in human capital and
local development, as well as the efforts that universities and
public sector entities have made since 2006 to raise awareness
around entrepreneurship.
There are currently around 30 entrepreneurship sponsors and
supporters in Saudi Arabia contributing to this development, says
Al Eidi- prominent examples aside from Endeavor include
the Badir Program
for Technology Incubators and the Keystone innovation
program.
However, the biggest barrier to growth, in his opinion, is
repetitiveness and the vagueness surrounding entrepreneurship, for
many young people trying to establish their own businesses. This is
due, much like in any new and uncertain industry, to the overlap
between many entrepreneurship supporters, which even leads in some
cases to a conflict of business and interests.
“Entrepreneurs struggle today, in KSA and the Arab world, in a
culture which still glorifies and promotes secure jobs and steady
income, and which perceives entrepreneurs as untrustworthy risk
takers, creating thus an obsession with failure for many who have
already started their business or wish to,” he says.
Today, entrepreneurs seem to have a good chance in Saudi Arabia,
considering the number of parties investing in their development
and the enthusiasm of youth. Although youth often lack experience,
strategic relations and mentors, and only have their personal
knowledge, as the ecosystem grows, they will hopefully find support
from media outlets willing to expose the increasing number of
success stories.
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