The MENA region is set to witness the birth of more than 45 unicorns in the next eight years, with an estimated total equity value to reach more than $100 billion, according to a new Saudi Technology Ventures (STV) report.
The report from STV Insights highlights the opportunities for investing in the MENA region and Saudi Arabia and particular. Saudi Arabia was described as the “gravitational center” for scaling tech unicorns, based on the country’s GDP and stock exchange size.
“MENA is one of the most attractive markets for the development of technology ventures – it has now reached an upward tipping point in its growth trajectory. We believe the region can output 45 unicorns by 2030, and can create digital giants that can list on public markets, remain independent, and keep their focus on delivering innovative solutions tailored to local needs,” STV Insights writes in the report.
The paper share some of the fund’s analysis and learnings contributes STC’s viewpoint on how to further enable and nurture the ecosystem with the participation of all players.
“More than 55% of MENA’s population is younger than 30 years old and it is growing at a 1.6% per year rate. MENA’s population are avid consumers of digital media, with an average daily social media consumption of 3.5 hours. These statistics set MENA apart in comparison to any other region across the world,” STV says. “MENA’s young, fast-growing, and tech savvy population has high spending power and is keen to utilize technology for shopping, transacting, learning, and socializing.”
The list of underdeveloped sectors in the region offering leapfrog opportunities “is long and includes logistics, which is still underdeveloped and extremely fragmented, as well as real estate discovery، purchasing, and financing, currently underserved due to lack of market transparency and the dominance of informal and non-professionalized network of independent real estate brokers,” STV says.
[Click here to download and read the report from STV Insights]
