New
businesses are need of the hour in UAE and other gulf nations. Many firms are
coming up to invest in exciting new business plans by new entrepreneurs.
Seedstartup, a venture capital fund is
promoting start up firms in the Gulf region. It organized an event where 60 guests
attended from the United Arab Emirates and other Gulf countries. They attendees
presented business plans to attract investors and venture capital funding. The
organization invests between $20,000 and $25,000 in business plans, which have
bright prospects. In return, they take 10% equity. The founder of this
organization Rony el-Nashar commented that this is a high risk they are taking
in business as investing in practically nothing. Entrepreneurs who are part of
this program are required to stay for 3 months in Dubai. The organization
mentors them and gives an opportunity to pitch their ideas to investors.
The Gulf region is witnessing many new and
innovative businesses coming in different cities. Entrepreneurship is presently
the buzzword in the Arab world and many new businesses are trying to find a
launchpad. Expansion of new businesses is a necessary for political, social and
economic progress in the region. As the Gulf region is under constant pressure
to generate jobs besides the oil and gas job or construction jobs, new
businesses are required. With the youth population one of the largest in the
world, job creation is of utmost importance. According to International Labor
Organization stats, 26.4 percent are unemployed under the age group of 25. ILO
foretells that in the next five years (2017) the employed population will rise
to 28.4 percent.
The report of 2011 talks about the problems
young Arabs will face in the job scenario. Highly prosperous nations like
Kuwait, Qatar, Bahrain, Saudi Arabia and the U.A.E. have decline in new
businesses because of government regulations.
The chairman of du, one of the well known
telecom operators inn UAE says , that since most of the current young
population are happy with Jobs in UAE, they are reducing their risk appetite
and lacks innovation. Entrepreneurship must be focused and new businesses
should be part of the job market.