The technology sectors in the UAE and Saudi Arabia are entering a pivotal phase of maturity and business owners can start expecting exits soon, according to sector experts.
The GCC technology sector landscape, which has long been in its early stages with factors such as expensive financing, unstable prices and market volatility, is slowly shifting due to a drive from regional governments and increased interest from larger acquisition firms, speakers at an ICAEW organised even on corporate finance faculty, said.
They also highlighted the opportunities that lie ahead, especially in the UAE and KSA, in view of the scale of projects and budgets being approved within the GCC recently.
“They have become focal points for ambitious projects with substantial capital infused, fostering a thriving technology ecosystem, setting them up for accelerated growth and innovation,” experts at the event, moderated by Zubin Chiba, Partner – M&A, Corporate Finance, PwC, said.
The experts also noted that the technology sector’s influence extends beyond only tech-focused companies.
Khalid Talhouni, Managing Partner of Nuwa Capital; Kushal Shah, Managing Director of Ventures, e& Capital and Suhail Miraz, Corporate Partner, Al Tamimi & Co were among the experts who spoke at the event.
They said the ability to collect and use data effectively and the scalability of operations are now crucial criteria for evaluating companies, even for those rooted in traditional brick-and-mortar operations.
With the rise of AI and automation technology, the expert panel also predicted a deflation in tech startup capital. Similar to how cloud services reduced the need for physical server rooms, which brought down the capital required, AI and automation could lower startup capital requirements by automating tasks and reducing headcount. While the technology is still evolving, the panel was confident in its potential to reshape the start-up landscape.
Hanadi Khalife, Head of Middle East, ICAEW, said as the tech business landscape grows more connected and complex, chartered accountants must strategically guide their organisations and clients, inspiring confidence through due diligence and coherent methodologies.
Follow us on
