Dash Venture Labs: Our Weekly Picks (Issue No.88)

1. Entrepreneurship/Startups

International startups flock to UAE as pro-business reforms drive 284% surge in entrepreneurs

The observed upward trajectory indicates a noteworthy shift in the strategic decisions of global startups, as they actively pursue the establishment of their global headquarters in the United Arab Emirates (UAE) with the goal of accelerating their overall expansion efforts.

This trend becomes even more significant when considering the substantial surge in applications from startups situated beyond the confines of the Middle East and North Africa (MENA) region over the last two and a half years. The reported 284 per cent increase in such applications reflects a compelling testament to the success of the initiatives implemented by the UAE's leadership. These initiatives have been strategically designed to position the UAE as an attractive destination for some of the world's most pioneering and forward-thinking business leaders.

The proactive efforts of the UAE's leadership have created an environment conducive to innovation and business growth, compelling global startups to recognize the country as a favorable hub for establishing their international headquarters. The substantial surge in applications not only signifies the appeal of the UAE as a business-friendly destination but also underscores the efficacy of the initiatives undertaken to position the country as a global hub for innovation and entrepreneurship. This trend reflects the UAE's commitment to fostering a dynamic and globally competitive business ecosystem.

Dubai Future Foundation, Richemont invite entrepreneurs to reshape luxury retail through accelerator program

The Dubai Future Foundation, in collaboration with the Swiss luxury brands company Richemont, is extending an invitation to innovators and entrepreneurs globally to submit proposals aimed at elevating the retail experience in some of the world's most opulent boutiques. Individuals who qualify will receive a fully funded, five-week opportunity to refine their concepts in collaboration with experienced advisors and mentors. DFF and Richemont are eager to receive fresh proposals from innovators, startups, scale-ups, and SMEs. The focus is on leveraging technology and innovation to reduce waiting times in luxury boutiques, elevate client experiences, and foster engagement. Additionally, they are interested in ideas that will inspire and draw in a younger audience to the luxury brands under the Richemont umbrella. The goal is to not only enhance these exclusive stores but also to appeal to a younger demographic.

Japan green-tech startups to help oil-rich UAE decarbonize

The global imperative to decrease carbon emissions and address climate change is serving as a catalyst for technological innovations, particularly within the private sector. Notably, two startups in Japan have emerged with breakthroughs that hold the potential to assist the United Arab Emirates (UAE), a major global oil producer, in its transition toward more environmentally sustainable practices.

These advancements signal a significant intersection between cutting-edge technology and the pressing need for sustainable solutions. The commitment to reduce carbon emissions is driving private enterprises to explore and develop innovative technologies that can contribute to a greener and more sustainable future. In the context of the UAE, being one of the world's leading oil producers, the incorporation of such breakthroughs from Japanese startups could mark a crucial step in aligning the nation with environmentally responsible practices.

The collaborative efforts between countries and private enterprises to adopt and implement these technologies underscore a global commitment to mitigating climate change. This intersection of technology and environmental sustainability reflects a proactive approach in addressing the challenges posed by climate change, with potential implications for the UAE's transition toward more eco-friendly practices in its significant role within the global energy landscape.

Rise in international startup interest and female entrepreneurship in UAE

The significant rise in applications from startups founded by women is noteworthy, indicating a remarkable growth of 244% over the past two and a half years. Particularly striking is the fact that female-founded enterprises now represent 32% of all applications received by the Ignite program. This shift in the startup landscape becomes more apparent when examining the distribution of applications across various stages of development.

Two and a half years ago, applications were evenly spread among organizations in the ideation, launch, minimum viable product (MVP), and revenue-generating stages. However, the current scenario reveals a substantial shift in preference, with a clear inclination towards startups that have already entered the revenue-generating phase. This evolution reflects a maturation of the entrepreneurial ecosystem, with an increasing focus on supporting and acknowledging the achievements of startups that have progressed beyond the initial stages of development. The data underscores a positive trend in fostering diversity and recognizing the contributions of women entrepreneurs within the startup community.

2. Technology

Intella collaborates with Deepgram to Introduce Inclusive Language Product

Spoken by over 400 million people across more than 25 countries, Arabic is renowned for being? among the most challenging languages to transcribe due to its variable characteristics, intricate language structure, and a multitude of diverse dialects, each steeped in its unique history and culture.

Through this collaboration, both companies aim to enter the market with an innovative solution: an outstanding model covering 30+ languages, including Arabic and its 25+ diverse dialects. This endeavor aims to establish the most comprehensive AI-powered speech-to-text model available, thereby expanding reach and accessibility for users globally.

The UAE's harnessing of AI at the national level can benefit everyone

The UAE has established a robust foundation for the education and advancement of its workforce in the field of artificial intelligence (AI). The country provides accessible and free courses on AI for learners at all skill levels. It mandates that senior public sector officials undergo training in generative AI, while their junior counterparts receive instruction as required. Notably, more than 54% of the UAE's workforce integrates AI into their roles across various sectors, including media, education, customer service, manufacturing, and operations management. Moreover, a substantial number of professionals have expressed a keen interest in receiving training specifically in generative AI.

The essence of the UAE's National AI Strategy 2031 is a dedication to enhancing the workforce's skills through specialized training, temporary job placements, and global study tours. There is a significant investment in STEM (Science, Technology, Engineering, and Mathematics) education, with the current enrollment of 22% of university students in STEM disciplines. The government aims to annually improve the skills of one-third of STEM graduates, creating a proficient talent pool poised to lead AI innovation.

Saudi communications minister engages with tech giants to boost innovation and AI

The Minister of Communications and Information Technology in Saudi Arabia, Eng. Abdullah Al-Swaha, participated in crucial talks with top executives from major global technology companies at Davos. The discussions primarily revolved around advancing technological and innovative initiatives within the Kingdom. As a key component of the Saudi Arabian delegation attending the World Economic Forum, these meetings are aimed at reinforcing Saudi Arabia's standing as a pivotal regional hub for technology and innovation.

They also delved into promoting research and innovation in deep technologies, accelerating the creation of inventive business models, and exploring applications of generative AI. Additionally, discussions included national talent development and boosting investments through strengthened partnerships in cloud computing and e-commerce solutions. These meetings underscore Saudi Arabia's proactive stance in incorporating advanced technology and AI into its economic and developmental strategies.

Aramco Digital and Intel to create Saudi Arabia's first Open RAN development centre

Upon completion, the facility is anticipated to stimulate innovation, promote technological progress, and play a role in shaping the digital transformation landscape within the nation.

In particular, the collaboration seeks to expedite the advancement and implementation of Open RAN technologies, facilitating the construction of a robust and flexible telecommunications infrastructure in Saudi Arabia. This infrastructure is poised to expedite digitization across diverse industries.

Moreover, this initiative is in harmony with Saudi Arabia's Vision 2030, emphasizing technological advancements and economic diversification. The Open RAN development center is scheduled to commence its operations in 2024.

SmartCIC Empowers African Women Through Tech with Innovative E-Waste Program

In a move to support women's empowerment and environmental conservation, IT services provider SmartCIC has initiated a significant e-waste repurposing program.

Teaming up with the non-profit organization Maxim Nyansa Foundation, the company is offering practical tech education and essential IT skills to disadvantaged young women throughout Africa.

Through the contribution of used hardware and equipment, SmartCIC not only breathes new life into retired technology but also creates opportunities for the upcoming generation of female leaders in STEM fields. The availability of repurposed equipment enables the application of practical knowledge gained. Additionally, there are ongoing initiatives to provide microfinancing support for women embarking on IT ventures in the future.

Utilizing the Foundation's well-established network, comprehensive multi-week boot camps are being conducted in Burkina Faso, Ghana, Gambia, Nigeria, and Sierra Leone. Each residential training center accommodates a cohort of 16 to 18 women.

3. Funding Activity

Bosta raises new investment from Axian Group

Axian Group, a leading investment firm, has strategically invested in Bosta, an Egyptian startup revolutionizing delivery logistics in Egypt and Saudi Arabia through cutting-edge technology for efficient first, middle, and last-mile delivery.

After a prosperous pre-Series B fundraising round, Bosta extended its presence to Saudi Arabia in 2022. This noteworthy accomplishment resulted from a strategic investment round spearheaded by Khwarizmi Ventures, accompanied by contributions from current investors and Hassan Allam Holding.

Axian Group's investment underscores a strong commitment to fueling Bosta's growth and its mission to redefine the delivery and logistics landscape in Egypt and Saudi Arabia. This collaboration signals a significant step in transforming the e-commerce and logistics sectors in the region.

Saudi-based LAHINT raises 1 million riyals in pre-seed round

LAHINT, a Saudi-based company focused on streamlining government procedures, has recently concluded a successful investment round of one million Saudi Riyals. This funding was secured with the support of angel investors, marking a groundbreaking move poised to significantly revolutionize government services in the Kingdom.

The company concentrates on simplifying government services by leveraging advanced technologies such as AI, Voice Conferencing, and Screen Sharing. Additionally, it facilitates services through applications like WhatsApp.

Continuously progressing in the realm of innovation, LAHINT suggests that its existing system is consistently evolving, with intentions to unveil a beta version in the second quarter of 2024. Subsequently, in the third quarter of the same year, the company plans to implement automation processes, aspiring to achieve full automation of all government services through AI by 2027.

UAE’s Silkhaus closes pre-series A financing from partners for growth

Silkhaus, an innovative proptech startup committed to transforming short-term rentals in the Middle East and Asia, has disclosed securing a pre-series A financing in the multi-million dollar range from Partners for Growth (PFG), headquartered in San Francisco. This funding arrangement not only marks a significant milestone for Silkhaus but also grants the company access to an additional multi-million dollar credit line, aimed at supporting its ambitious expansion initiatives.

Based in Dubai, Silkhaus is strategically positioned to cater to the global short-term rental industry, which is estimated to be valued at $100 billion and growing. The company distinguishes itself by harnessing cutting-edge technology to equip asset owners with essential infrastructure tools for effectively managing and capitalizing on their properties. Notably, property owners utilizing Silkhaus's platform typically experience a notable increase in income, ranging from 20% to 40%, compared to traditional rental models.

Middle East investments in China to bloom in amount, and scope in 2024 as sovereign wealth funds aim to diversify

Sovereign wealth funds in Saudi Arabia and the United Arab Emirates (UAE) are poised to increase their investments in Chinese companies in 2024, as both oil-producing nations strive to diversify their economies and expand their global investment portfolios. The regional head of Deutsche Bank reveals that this shift is driven by the growing warmth in relations between China and the Middle East.

In 2023, state-owned investors from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE directed over US$2.3 billion into Greater China, a substantial surge from the approximately US$100 million recorded in 2022. These investments reflect the ongoing efforts of these nations to broaden their economic horizons, coinciding with China's initiatives to strengthen diplomatic ties with the Middle East, notably highlighted by Chinese President Xi Jinping's visit to Riyadh in December 2022.

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This newsletter is prepared by Dash Venture Labs and provides general information only. The information and opinions in the report constitute a judgment as at the date indicated and are subject to change without notice. The information and opinions contained in this report have been compiled or arrived at from sources believed to be reliable in good faith, but no representation or warranty, express, or implied, as to their accuracy, completeness or correctness does also not warrant that the information is up to date. Any reference to third party research material or any other report contained in this report represents the respective research organization’s estimates and views, no copyright infringement intended and does not represent the views of Dash Venture Labs and its officers and employees do not accept any liability or responsibility whatsoever with respect to its accuracy or correctness.

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