Venture Capital in the Middle East: Trends and Insights From Early-Stage Focus VCs
- Erdinc Ekinci
- Jul 17
- 3 min read
The Middle East’s startup ecosystem has undergone a dramatic transformation since its first major tech exit in 2009. What began as isolated entrepreneurial pockets has matured into a dynamic web of accelerators, venture firms, and founder-led innovation.
That’s exactly why I hosted this session, with Walied Albasheer, Founder and Managing Partner at Intuitio Ventures, to explore what’s working, what’s shifting, and where the biggest opportunities lie for early-stage venture capital across the Middle Eastern region.
As Director of Founder Institute Japan, Korea, and Taiwan, and CEO of Openfor.co, I’ve seen hundreds of startup ecosystems emerge and scale. What’s happening in MENA right now deserves global attention not only because of its momentum, but because of how distinct its investment culture is becoming.
Here are five key takeaways from our conversation—real-world insights that founders, investors, and ecosystem builders alike can act on:
1. From Maktoob to Market
Yahoo’s acquisition of Maktoob in 2009 was more than a major exit—it was a mindset shift. It validated the idea that world-class startups could be built in the region and opened the floodgates for early VCs, accelerators, and tech community programs.
Since then, a new generation of founders, angels, and family offices has stepped in—bringing long-term commitment and local conviction.
Key points:
Maktoob’s exit catalyzed belief in scalable, VC-backed startups in MENA.
First-generation VCs, angels, and accelerators soon followed.
Activity spread beyond the Gulf into Egypt, Jordan, Morocco, and Tunisia.
2. The Biggest Focus? Founder–Market Fit
In MENA, investors care deeply about one thing: Are you truly obsessed with solving this problem?
It’s not just about the pitch, it’s about personal alignment. Would you still be solving this problem in seven years, even if no one funded you?
Given that many founders are first-time entrepreneurs, founder–market fit becomes the cornerstone of long-term bets. VCs here are investing in people, not just prototypes.
Key points:
Founders must show deep ownership and resilience.
VCs seek authenticity and obsession, not opportunism.
Cultural and emotional intelligence matter, especially when scaling across diverse MENA markets.
3. Relationships Before Returns
In the Middle East, trust often precedes traction. Fundraising is relationship-first. Investors want to understand how founders behave, not just what they build.
As Walied emphasized, if you're entering the market expecting Silicon Valley speed, you’ll likely be disappointed. Face-to-face meetings, personal referrals, and time spent building trust are what unlock capital.
Key points:
Warm intros and in-person connections carry weight.
Long sales cycles and trust-building are the norm.
Reputation and reliability often outweigh ARR.
4. New Money, New Asset Class
Family offices and legacy wealth groups are no longer just parking capital—they’re playing offense.
Venture capital is increasingly seen as a strategic lever to future-proof core businesses. Many are backing startups that align with their industrial, logistics, or energy verticals—often with commercial partnerships as part of the deal.
Key points:
Family offices are deploying capital to drive innovation.
Venture is becoming a tool for diversification and strategic value.
Impact and ecosystem alignment are now part of the investment thesis.
5. Dubai Is Asia’s Testbed
Where else can you test a product across 200+ nationalities without leaving one city?
Dubai’s diversity, digital infrastructure, and fast-moving consumer base make it a powerful sandbox for validation, especially for AI, fintech, SaaS, and consumer tech.
For startups from Asia, Africa, or Europe, the UAE (and increasingly Saudi Arabia) offers a unique mix of early adopters and business-friendly platforms to scale.
Key points:
Dubai provides rapid, high-quality product feedback.
Local diversity mirrors global user bases.
It’s a launchpad for cross-border innovation in MENA and beyond.
Final Advice
As the session wrapped up, Walied Albasheer offered candid, experience-backed advice for anyone looking to enter or expand within the MENA startup landscape. His insights underscored the importance of cultural alignment, deep founder conviction, and building with long-term vision.
This is a region where momentum is growing, but trust still builds slowly. Founders and investors who understand this balance—and adapt their approach accordingly—will find meaningful opportunities.
Invest in presence, not just presence of capital. Real relationships matter. Spend time on the ground, meet people face-to-face, and build trust gradually.
Obsess over the problem. Investors are backing founders with personal conviction—not just clever business plans.
Navigate with cultural intelligence. Each market in MENA has its own nuances; respect, learn, and adapt to local dynamics.
Partner with aligned capital. Many family offices and investors now seek strategic fit, not just financial upside, and bring more than just a pitch.
See Dubai as a launchpad. For founders from Asia, Africa, or Europe, Dubai and the broader Gulf offer a powerful entry point for MENA and beyond.
A Big Thank You
A sincere thank you to Walied Albasheer, Founder and Managing Partner at Intuitio Ventures, for sharing his deep knowledge and grounded perspective on the evolution of venture capital across the Middle East.
This conversation reminded us that ecosystems aren’t built on capital alone—they’re built on trust, shared ambition, and founder-first thinking.
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