The Arab world is a blooming market for venture capitalists

TNW
November 11, 2012

100 million Internet users, 286 million phone users, and a three trillion dollar economy.
These are the three numbers that anyone should remember when looking at the Internet and technology opportunities in today’s Arab world.

The Arab world is made of 350 million people spread between 22 countries from the Atlantic Ocean to the Arabian Gulf sharing one language and tight cultural and entertainment affinities.

Over the past decade this “world” has significantly invested in its physical and human infrastructure, creating an economic space that has increasingly facilitated the circulation of goods, capital, ideas and people. The Gulf Cooperation Countries (GCC), a trade union that groups the strongest Arab economies of the Arabian Gulf (Saudi Arabia, UAE, Qatar, Kuwait and so on) has emerged as a global player both on the political and financial scenes (with the presence of its notorious sovereign wealth funds, new global companies and cross border investments).

These same countries have invested in a large middle class, increased disposable income and created significant business opportunities across the region. Followed by inspiring political and social movements known as the Arab Spring, this region has displayed a high level of Internet connectivity and great appetite for Internet usage, as demonstrated by the intensive use of social media, proliferation of blogs and finally the massive increase in e-content production and increased adoption of e-commerce.

With a broadband penetration estimated at 25% and 3G penetration rates nearing the 40% threshold, this nascent Arabian Internet and mobile market is bound to grow aggressively in the coming years driven by confirmed liberal economic agendas in key markets such as Morocco, Egypt, Saudi Arabia and the UAE. Although roughly 5% of the global internet population speaks Arabic, only 1.5% of Internet content is in Arabic, opening the door for sizable opportunities to bridge this gap with relevant content and products.

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