Khalifa Manaa: Disrupting AI in the Middle East

The Middle East and North Africa (MENA) region has long been a center of tourism, finance, and trade. In recent years, the region has also emerged as a hub for the adoption and advancement AI technology.

In this rapidly evolving landscape, AI has emerged as a game-changing force. Hence, the MENA region has embraced this cutting-edge technology with open arms, and its impact is already being felt across numerous industries. From healthcare and education to public safety and beyond, AI is transforming the region's economy, including the lives of millions.

It's an exciting time.

At the forefront of this technological revolution are the AI startups and technology companies that have sprung up across the region. These enterprises are spearheading the development of innovative AI-powered solutions, which are creating new business opportunities and transforming industries. They are using AI to enhance customer service, optimize supply chains and logistics, and revolutionize the way businesses operate.

One such startup that is making waves in the region is Shapr. Founded by Khalifa Manaa and Allan Sendagi in 2022, Shapr aims to help MENA-based companies innovate and compete on a global level by leveraging the power of data science and AI. Despite being a relatively young company, Shapr's team comprises of industry veterans with a wealth of experience that have built AI capabilities for unicorn startups and fortune 500 companies, making them well-equipped to handle the challenges of the MENA market.

Shapr's goal is to create a world-class AI ecosystem in the region, empowering businesses to harness the power of data science and AI to drive innovation and growth.

The startup's innovative approach has already attracted the attention of businesses across the region, and its impact is set to grow in the coming years. With its focus on innovation and collaboration, there is no doubt that Shapr is poised to become a major player in the MENA region's tech industry.

As part of a project with the Dubai Future Foundation last year, Khalifa had an opportunity to examine the venture ecosystem in the region. During the course of this project, he made an intriguing discovery: despite the relatively healthy state of the venture ecosystem, there are only a few companies that have managed to achieve global competitiveness.

“A region that’s the birthplace of the wheel, the pyramids and algorithm, today produces very little R&D, innovation and global success stories,” the entrepreneur states.

“This is kind of a shocker when you think about it. For some reason, almost all of our success stories are targeting regional white spaces (something that’s available elsewhere but missing regionally). At the same time, in the last 18 months or so I’d noticed that data science and AI have become the default way of building winning products. I’m not kidding, it really is the case that you can sprinkle a little AI into just about any digital product and take the experience to the next level. Of course there were a few other aspects that pushed me into this direction, but the fundamental reason for founding Shapr was the desire to help MENA-based companies compete on a global level and contribute in revitalizing innovation in the Middle East. I really do believe we can help make that happen.”

Originally from Finland, Khalifa moved to Dubai four years ago when the startup he founded (in his home country), called Hoop, was expanding to the Middle East. “Hoop was a company established to build the most sustainable e-scooter service on the planet, and I think we actually accomplished that. Turns out though, consumers really didn’t care! We ended up pivoting the business to licensing our in-house tech to other scooter operators and finally, in 2022, we sold the tech stack and closed shop,” the entrepreneur reveals.

Having worked as a consultant for over 200 startups, assisting them with venture funding and accelerators, the entrepreneur states that his team is currently hard at work on a number of projects, some of which feel a little like “science fiction.”

For one, Shapr is building a “crystal ball” that will assist a fintech in forecasting future market trends and executing more profitable trades. Another project focuses on AI to “fully automate” the recruitment process.

“To give you some idea of the impact the help of our experts can create, we were able to increase the annual GMV of a large retailer by hundreds of millions of dollars with smart dynamic pricing. There are a lot of low hanging fruits like this in large enterprises where the large scale allows us to unlock value in the millions by just optimizing how they operate today.”

According to Khalifa, the focus of Shapr is not solely on theoretical research, but rather on using AI to create transformative experiences. The company operates in two primary ways when working with enterprises: through an agency model where they design and develop custom AI solutions for clients, and through team extension where they provide skilled experts to complement a client's existing tech team.

In addition to these services, Shapr has also developed a “data science as a service” solution tailored specifically for startups. This offering provides access to powerful data science tools and expertise on a flexible basis, enabling startups to benefit from these resources without committing to a full-time data scientist.

For Khalifa, time is of the essence in the fast-paced world of AI startups. The key to success however, often lies in the dataset used to train the models, he explains. The company that enters the market first and acquires a sizable user base gains a distinct advantage. As models learn and improve through usage, early adopters can build a competitive edge by enriching their dataset with feedback and usage patterns from their users. This creates a moat that makes it harder for other players to enter the market.

And for entrepreneurs seeking an early exit, niche datasets that haven't been explored yet could be the answer, the entrepreneur states. One example could be small spoken languages that are not covered by the large players such as Google and Microsoft, but have enough market potential. By building a solution that appeals to this market and collecting a winning dataset, startups can establish a foothold in the industry.

“But most importantly, make sure your idea is solving a real problem for your customers. A problem that is big enough for them to pay to getting it solved, and one that enough people or companies are struggling with. Unless you have identified a real problem, you’ll just end up pushing something to the market that no one needs.”

For the road ahead, Shapr's founders are excited about spearheading an AI venture studio. Their vision is to identify pressing issues that artificial intelligence can tackle head-on, and create independent, scalable solutions. Not content with just one successful venture, Shapr seeks to be a catalyst for innovation and the resurgence of the MENA region.

“One of my earliest mentors used to say that you always want to conduct your business in a way that when you see your customers at the supermarket you don’t have to turn around and run,” Khalifa jokes.

“I know it sounds like a no-brainer, but it really has a big effect on everyone involved when the only focus is on value creation. This sometimes means hard decisions on the short-term (e.g. passing on lucrative projects), but I fundamentally believe it’s the right way to build long-term success. Focus on solving problems and creating value. The money and growth will follow.”

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Photos provided by: Khalifa Manaa

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