In an interview with UZDaily, prime Uzbek business media outlet, Anatoly Motkin, President of StrategEast, highlighted the promising opportunities the Gulf region offers for Uzbek startups. While many Uzbek startups currently focus on the Western market, the Gulf countries present a lucrative and faster option for investment and customer acquisition. Nations like Saudi Arabia, Qatar, UAE, Oman, Kuwait, and Bahrain are undergoing rapid digitalization and are keen to invest millions in the IT sector, attracting specialists and technologies from abroad.
Mr. Motkin emphasized that the Gulf market is attractive due to its large number of potential customers and significant interest in digital products. These countries are eager to digitize all sectors, providing a new market for tech solutions. Successful examples include Tajikistan’s zypl.ai, which has secured cooperation agreements with several Gulf banks.
Additionally, the Gulf region boasts over 500 venture funds, offering fresh opportunities for funding and investment. Historically, much of this venture capital has been directed toward American startups, but increasing promotion of the Central Asian region is generating interest from Arab investors, both institutional and private.
Key areas of interest for the Gulf countries include the oil and gas sector, energy, telecommunications, banking, and digital services, all of which are well-represented among Uzbek startups. Gulf companies are seeking high-quality digital products, which they can obtain from Uzbek companies like EPAM and Exadel. Mr. Motkin noted that the Gulf countries are experiencing fatigue with the poor-quality digital products from Southeast Asia, thus opening opportunities for collaborations with Uzbek firms.
Despite cultural differences, Anatoly Motkin stressed that Uzbek startups face no significant barriers to entering the Gulf market. The Gulf countries are eager to attract product companies, even at an early stage. StrategEast’s partnerships with institutions in Saudi Arabia and Qatar, among others, have already facilitated connections between Central Asian startups and potential investors. This year, StrategEast plans to introduce over 100 startups from the region to Gulf investors.
Support measures for foreign startups include initiatives by IT parks in Central Asian countries and the Future Growth Initiative program from USAID, which has already assisted many Uzbek startups. StrategEast’s partnership with Saudi Arabia provides participating startups with accommodation and branded stands at events. Additionally, a competition for Central Asian startups will offer winners a chance to participate in the UAE’s main startup event, Expand North Star, in autumn 2024.
StrategEast actively participates in tech conferences and exhibitions in the Gulf to connect Arab investors with Central Asian startups. These partnerships promote the reputation of Central Asia as a reliable provider of digital services, leading to tangible results.
Mr. Motkin advises Uzbek startups to participate in regional tech events, communicate with potential investors, and establish local partnerships or clients in the Gulf. This approach can help build investor confidence and leverage the Gulf countries’ interconnected market.
In conclusion, Uzbek startups have a unique opportunity to tap into a fast-growing market that is geographically and culturally closer to them. With the right strategies and support, they can successfully enter and thrive in the Gulf market. The full interview is available via the link.
