Bridging Cultures & Business: Nour Edin El-Shaeri's MENA Startup Chronicles

With his hand firmly on the pulse of the MENA region’s startup landscape, prolific business reporter (for Arab News), Nour Edin El-Shaeri, is a dedicated storyteller.

With an eye for detail and a knack for sussing out startup stories of triumph and promise, he uncovers the lesser-known tales within the MENA region's business landscape, shedding light on the real challenges of entrepreneurship. His journey is one of sharp analysis, insightful commentary, and a commitment to getting to the heart of the dynamic startup scene.

Journalism is often a thankless task, but Nour doesn't let that deter him. He dives into the fray, highlighting stories that matter. Drawing from his years of experience and a strong business background, his perspective speaks volumes to entrepreneurs, investors, and policymakers.

With a mix of Libyan heritage and a UK upbringing, Nour’s global perspective is a result of his diverse background. His education at the American University in Cairo, where he studied Journalism and Entrepreneurship, equipped him to navigate both the business and storytelling sides of the startup world.

Guided by a familial lineage of trailblazers, including his father, Magdi El-Shaeri, the visionary behind Libya's largest broadcasting network, and his uncle, the renowned superstar Hamid El-Shaeri, Nour's path was paved with inspiration. Their legacy of change-making and impact spurred him to become a bridge-builder between his diverse cultural experiences, his astute business acumen, and his narrative prowess.

As the digital era transforms business, Nour stays on the cutting edge, painting a vivid picture of the MENA region's startup scene, showcasing its potential and providing a platform for the next wave of entrepreneurs. His story is one of merging cultures, amplifying voices, and uncovering the hidden sides of innovation in the Middle East and North Africa, all while navigating the challenges that come with being a journalist.

This week in conversation with Machinelab…

Nour, can you share a recent success story from the MENA startup ecosystem that particularly impressed you? What factors do you believe contributed to its success?

A story that has recently resonated with me is that of the transportation startup, Swvl. It’s an Egyptian ride-sharing company that offers buses for routes underserved by public transport. Swvl started in Cairo in 2017, aiming to reinvent public transportation for emerging markets by offering a reliable and efficient bus commuting alternative. By mid-2021, Swvl went public through a SPAC merger in the US, making it one of the first MENA startups to do so.

Although Swvl’s growth has been slow recently, it is a prime example of a small company that achieved massive initial growth. The company managed to identify a significant gap in Egypt’s public transport sector. Their deep understanding of local commuting challenges allowed them to tailor their services, ensuring widespread adoption. Additionally, their tech-driven approach enabled them to create a seamless booking and route optimization system while ensuring dynamic prices. Moreover, the leadership team’s prior experience in the tech and ride-sharing space was instrumental in guiding the company’s vision and executing its strategy.

Three other companies stand out when talking about MENA’s entrepreneurial landscape. First, open banking enabler Tarabut Gateway (TG) is a prime example of a company that was built on the foundation of an entrepreneur that leveraged his own experience to fuel a very nascent sector. Abdulla Al-Moayed, the founder of TG, managed to create the first and largest regulated open banking platform in the region. Al-Moayed's success can be attributed to many factors but what stood out in my humble opinion, is his knowledge and passion about the sector he serves. He started when open banking was merely a theory in the MENA region and he believed that one day it would be an essential pillar for all economies - that day has come.

Second, FOODICS, the Fintech/Foodtech giant, is a prime example of a tech-driven and scalable company. The company’s business model is one of the best I’ve seen in the region, although it is not new, it is innovative and matches the company’s technology.

Finally, the third company of course is the startup that put MENA’s entrepreneurial landscape on the global map...Careem. I’ll speak more about it later.

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Navigating regulatory landscapes can be challenging for startups. What advice would you give to new entrepreneurs looking to understand and overcome these challenges in the MENA region?

The regulatory landscapes can indeed pose challenges, especially in the diverse and dynamic MENA region. Based on my experience and understanding, here's some advice for new entrepreneurs; it is always essential to educate yourself. Our blooming region is still adapting to technological advances, so laws and regulations are constantly changing. Each country has its own laws and regulations, this is not just exclusive to the MENA region, so educate yourself and always stay updated because changes are happening, and they are happening fast.

The MENA region is built on the foundation of our ancestry Arabs, who cultivated strong bonds to go through life. If you are planning to start a company or expand to the MENA region, make sure you have strong relationships with other players in the industry - this is crucial.

The region is extremely dynamic. In order to start a company, you need to be adaptable with the ability to pivot. And when it comes to the MENA region you need to be extremely adaptable.

Could you discuss an instance where a startup identified an untapped market opportunity in the MENA region? What strategies did they employ to capitalize on it successfully?

A prime example is Careem, which identified the untapped potential for ride-hailing services in the MENA region. The traditional taxi industry in many MENA countries was often seen as unreliable, with no standardized fares and sometimes poor-quality service. Additionally, there was a significant demand for safe transportation options, especially among women. Public transportation in many of these cities was either non-existent or not up to par with the growing urban population.

The Middle East’s first unicorn managed to recognize the cultural and infrastructural nuances in the region. For example, calling their drivers “Captains” resonates well with our language.

Moreover, emphasizing safety by offering features such as live tracking and emergency contacts; this was particularly appealing in regions where safety in public transportation was a concern. Understanding the predominantly cash-based economy of many MENA countries, Careem allowed cash payments, which many international ride-hailing services didn't offer initially.

Instead of focusing solely on the large capitals, Careem rapidly expanded to secondary cities, tapping into a broader market. Additionally, beyond just car rides, Careem diversified into delivery, bus services, and even payment solutions, ensuring they catered to a wide range of needs in the market. One of the main factors of its success is investing in local talent. Careem heavily invested in hiring local talent and ensuring that they grew with the company. Also, Careem consistently engaged in partnerships, like collaborating with local telecom providers for promotions, which helped in penetrating the market deeper.

Innovation is a driving force for startups. Can you highlight a unique or groundbreaking innovation that emerged from the MENA startup ecosystem? How do you see it impacting the industry?

There are definitely plenty! Like those mentioned above, Souq.com is one of the region’s most innovative startups. The company’s innovation stems from many factors, but what stands out, in my humble opinion, is the name/branding. With diverse dialects and languages, almost every single person in the region understands what “Souq” means...add “.com” to it and know you understand what e-commerce means. Although we are used to seeing innovation in technology, creating such a simple yet extremely effective brand is one of the hardest forms of innovation.

Understanding the cultural differences in the region, Souq.com managed to create many tiny innovations, call them minivations if you may.

Given the widespread skepticism towards online transactions, Souq.com introduced COD (cash on delivery) as a primary payment method, a move that significantly boosted consumer confidence and willingness to try online shopping. Moreover, Souq.com hosted a wide variety of products tailored to local preferences, tastes, and demands, making it a one-stop-shop for many Arab households. A robust customer support system and easy return policies were put in place to further alleviate concerns about product quality and authenticity. Recognizing the logistical challenges in the region, Souq.com invested heavily in supply chain infrastructure, ensuring timely deliveries and efficient operations.

Hence, here’s what happened thanks to Souq.com:

- Consumer behavior shifted. Souq.com played a pivotal role in shifting consumer behavior in the MENA region, gradually moving a predominantly offline market to become more accepting and trusting of online shopping.

- Economic opportunities rose. By promoting e-commerce, Souq has paved the way for a multitude of SMEs to enter the digital market, expanding their reach and scaling their businesses like never before.

- Global players realized the growth potential in the region. The success of Souq.com caught the attention of global giants. Amazon’s acquisition of Souq.com in 2017 for $580 million not only validated the platform’s success but also marked the commerce potential in the region. Souq.com stands as a testament to the power of innovation tailored to local needs.

The MENA region is culturally diverse. How do startups in this region approach the task of understanding and catering to the unique needs and preferences of their diverse consumer base?

The cultural diversity of the MENA region poses both challenges and opportunities for startups. Startups need to heavily invest in in-depth market research to understand local customs, preferences, and behaviors.

Embracing cultural differences is key. Successful startups need to ensure that their branding, marketing campaigns, and even product offerings are culturally sensitive and resonate with local sentiments. Arabic, with its various dialects, is the predominant language in the MENA region, but many countries have their unique dialects and languages. Startups must prioritize multi-language support, especially in user interfaces, customer support, and marketing materials, to cater to the linguistic diversity.

Remember, acting as a local player is extremely effective in the region. Partnering with local influencers who understand and resonate with the culture can be a game-changer. The startups that thrive in the MENA region are those that embrace its diversity, seeing it not as a challenge, but as an opportunity. They understand that while the MENA region shares certain cultural threads, each country and community within has its distinct identity. Recognizing and catering to these unique identities is what sets successful startups apart.

Government policies and support can greatly impact startups. Have you encountered instances where favorable policies or initiatives played a significant role in fostering the growth of startups in the MENA region?

Many governments in the MENA region have sponsored or supported incubators and accelerators. The Saudi Arabian government established the 'Saudi Venture Capital Company' (SVC) to invest in the entrepreneurial ecosystem by co-investing in local startups, thus stimulating private sector investments as well. In the UAE, the government introduced reforms that allow 100% foreign ownership of businesses in certain sectors.

And many more. For example, many entrepreneurs in the UAE, Egypt, and Saudi Arabia have fostered governmental support to boost their business. Initiatives like Saudi Arabia’s financial regulatory sandbox has created a space where local and international players can test their products and services in a monitored environment. This ensures that things don't go south as well as provides startups with a channel to collaborate with experts.

The media plays a significant role in shaping perceptions and narratives. How do you see your role as a business reporter contributing to the overall growth and development of startups and entrepreneurship in the MENA region?

The media wields a substantial influence on public opinion and can help shape the trajectory of entire industries. As a business reporter, my role is multi-faceted when it comes to startups and entrepreneurship in the MENA region.

My role as a journalist does not give me the freedom of putting my personal opinion or view on the ecosystem when writing stories. My personal goal is to outline the true, underserved, innovation that is happening in the region. All I can say in response to the question is, there is a knowledge gap when it comes to the startup ecosystem. If I can support the movement of bridging that gap by atleast 1%, I am sure others will follow suit and the region will definitely be more transparent and visible in terms of its global standing.

‍As a reporter, you have a unique vantage point. How do you balance your role as an objective observer with your desire to inspire and empower entrepreneurs through your coverage?

My primary responsibility as a journalist is to report the truth. This means ensuring that facts are meticulously researched and verified. Objective and accurate reporting establishes trust with my readership.

When it comes to my own desire to empower entrepreneurs, unfortunately, females in the MENA region’s entrepreneurial landscape are heavily underserved, but things will eventually pick up pace. While maintaining objectivity, I try to highlight the region’s innovative female entrepreneurs that are a crucial pillar for the region’s overall growth.

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Photos courtesy of: Nour Edin El-Shaeri, Wamda and Tech Cabal