Middle East And North Africa (MENA) Region
What Is MENA?
The Middle East and North Africa (MENA). MENA region involves a vast territory that stretches from the Atlantic coast of Africa to the borders of Pakistan and Afghanistan in central Asia, as well as from the Mediterranean littoral to the southern edge of the Sahara Desert.
A maximum of 27 countries may be included in the definition of the region, while the usual definition counts about 19. The World Bank classifies 21 nations as part of the Middle East and North Africa (MENA) area, which is home to about 6% of the world’s population according to its 2020 population reports. Over 50% of global oil reserves and 25% of global natural gas reserves are found in the MENA area, according to OPEC estimates.
MENA is a significant source of global economic resources because of these reserves. Nonetheless, there are ongoing conflicts in Yemen, Libya, Iran, Syria, and Iraq that affect the area. The region continues to function as a stand-in for global economic dominance since the United States and Russia both provide military resources and back opposing viewpoints.
Understanding MENA
The MENA area is home to many of the 13 OPEC member countries. Although there isn’t a set list of nations that make up the MENA region, it usually refers to the territory that stretches from Morocco in northwest Africa to Iran in southwest Asia and all the way down to Sudan in Africa.
The MENA area frequently includes the following nations (not a comprehensive list):
- Algeria
- Bahrain
- Djibouti
- Egypt
- Iran
- Iraq
- Israel
- Jordan
- Kuwait
- Lebanon
- Libya
- Malta
- Morocco
- Oman
- Qatar
- Saudi Arabia
- Syria
- Tunisia
- United Arab Emirates
- Palestine
- Yemen
The benefits of establishing a business in Middle Eastern countries
For investors and business owners, establishing a company in the Middle East has many benefits. Due to its dense population, advantageous location, and expanding markets, the area offers a multitude of prospects. Furthermore, the governments in the Middle East are working to establish a climate that is conducive to business.
The following are benefits of establishing a company in a Middle Eastern nation:
- TAX INCENTIVES: To encourage economic growth, governments provide tax incentives to companies.
- STRATEGIC LOCATION: The Middle East is a strategically important region for enterprises due to its location between Asia, Europe, and Africa.
- BOOMING MARKETS: There is a strong demand for goods and services in the Middle East due to the region’s big population and high income level.
- ACCESS TO RESOURCES: Businesses can benefit from the region’s wealth of natural resources, which include gas and oil.
- BUSINESS FRIENDLY ENVIRONMENT: By streamlining laws and providing incentives, regional governments are facilitating business.
- INFRASTRUCTURE: The Middle East has made significant infrastructure investments, resulting in a cutting-edge and effective transportation system.
- DIVERSIFICATION: By expanding into new industries and reducing reliance on oil and gas, the region has been diversifying its economy and opening up new economic prospects.
Trendy and Popular Startup Ideas in Middle East Countries
Food and Beverages
The Middle East consists of 22 nations, each of which proudly displays its culinary traditions. People love eating, whether it’s the creative food carts you’ll find spread around the region, the street cuisine in Egypt, or elegant dining experiences in the United Arab Emirates.
Dubai provides excellent prospects for new firms in the food and beverage industry because it is a melting pot of cultures. This is not limited to Dubai, either. Several nations in the area have witnessed an influx of businesses that focus on services like food delivery and home-cooked meals. It becomes difficult for families to find the time to make a home-cooked supper from scratch when individuals work from 9 to 5.
E-commerce
ACCORDING TO REPORT TITLED “E-COMMERCE IN MENA: OPPORTUNITY BEYOND THE HYPE” THE E-COMMERCE MARKET HAS A TOTAL SIZE OF $28.5 BILLION BY 2022, BUT IT COULD GROW BY 3.5 TIMES TODAY STAND AT $8.3 BILLION.
The MENA region has not been immune to the global rise in e-commerce. Fashion and food still trail behind, while electronics, cosmetics, and personal care have penetration levels that are comparable to those of developed e-commerce marketplaces.
Although e-commerce is a rapidly expanding global industry, about 90% of items purchased online in the Middle East are currently transported from outside the region. This indicates that the MENA region has considerably greater economic potential.
Business markets are growing, particularly in Defence, Automobile and Civil Aerospace
The Middle East’s civil aerospace market, which accounts for the majority of the region’s aerospace and defence industry, is experiencing a surge despite being severely impacted by the epidemic. An estimated $45.72 billion is expected to be the total value of the aerospace and defence industry by 2025. SAUDI ARABIA, OMAN, KUWAIT, LEBANON, JORDAN, AND ISRAEL are six of the ten nations in the world with the greatest military spending as a proportion of GDP.
The automobile industry is still growing. Imports are increasing, but they’re not going into the premium sport sector.
Active Private Equity Investments
The middle east still sees a high level of inbound and outbound investment activity, even though deal activity has not increased as much globally as it did in 2021.New private equity opportunities are available with investments focused on technology, cybersecurity, healthcare, industrials, and consumer products and services, as the area looks to diversify its holdings and move away from oil dependence.
Growing Telecoms
The Middle Eastern countries’ legal reforms have put telecoms on a path of rapid expansion. The Saudi Telecom Company, ETISALAT, Ooredoo, and Zain Group are the four telecom businesses in the Gulf that have experienced significant market expansion. Meanwhile, North Africa and the Levant (Syria, Lebanon, Jordan, and Palestine) are seeing a rapid expansion of 4G coverage.
World-class innovative healthcare is still available
Effective healthcare systems is the high number of foreign nationals using the system, either as medical tourists or as employees. A few regional hospitals have developed into major worldwide medical centres.
Disclaimer: Above all information is for general reference only and sourced from internet, before making any kind of decision please visit the authorized websites of authorities and service providers.