The rise of unicorns in the Middle East is a testament to the region’s booming startup scene and its rapidly evolving business landscape. In turn, global investors and industry mavericks are paying attention, positioning the Middle East and North Africa (MENA) region as a center of innovation and economic push.
In fact, a consultancy firm predicts that nearly 350 startups in the MENA region could reach near-unicorn status, that is, a $1 bn valuation, by 2030. The region’s commitment to nurturing a thriving startup environment is one of the critical drivers propelling this growth.
Furthermore, if realized, this projection promises an inundation of high-value, disruptive firms spanning various industry sectors.
Major unicorns in the Middle East
As of 2023, a number of leading unicorns have emerged from the Middle East, reshaping the digital landscape and contributing significantly to the region’s economic growth.
Despite their diverse business models and sectors, these companies share common traits: disrupting traditional industries and transforming digital landscapes.
Here are some of them:
Vista Global
Founded in 2004 by Thomas Flohr, Vista Global quickly rose to prominence as one of the aerospace sector’s most significant corporate aircraft providers. By August 2017, the company’s valuation had impressively reached $2.5 bn.
At the core of the company’s success is a dedicated team, comprising between 1,000 and 5,000 employees. This robust workforce constantly pushes the boundaries of the aerospace industry, exemplifying teamwork and innovation.
The future holds promising growth for this Dubai-based startup, given its strong foundation and consistent determination to excel.
Read: Startup incubation programs in the UAE
Careem
Often dubbed the “Uber of the Middle East,” Careem stands as one of the most noteworthy unicorns in the region. With its astounding valuation of $3.1 bn, Careem certainly lives up to its unicorn status in the Middle East.
Careem, with its headquarters in the UAE, launched in 2012. Currently, its presence spans more than 100 cities in 14 countries in the Middle East and South Asia.
In addition, Careem continues to lead the industry with its seamless transportation solutions and innovative customer service. This Middle Eastern unicorn thrives on constantly adapting to the evolving landscape and enhancing its service offerings.
Swvl
Swvl has remarkably made its mark as one of the unicorns of the Middle East. The brainchild of Mostafa Kandil, Mahmoud Nouh, and Ahmed Sabbah, Swvl was initially launched in Egypt before relocating its main office to Dubai towards the end of 2019.
Notably, in July 2021, Swvl decided to merge with the U.S. SPAC Queen’s Gambit Growth Capital. This merger served as the catalyst for Swvl to become a publicly listed company.
Moreover, Swvl is the first $1.5 bn unicorn from the Middle East to be listed on NASDAQ. Further solidifying its influential position, Swvl secured the second spot on Forbes Middle East’s prestigious list of “The Middle East’s 50 Most-Funded Startups” in 2020.
With such accomplishments, Swvl continues to redefine the public transportation sector in the Middle East.
Kitopi
Meanwhile, another prominent unicorn from the Middle East is the Dubai-based food tech startup, Kitopi. Short for “Kitchen Utopia,” it was co-founded by Mohamad Ballout, Saman Darkan, Bader Ataya, and Andres Arenas.
Additionally, in three short years, the startup has garnered an impressive valuation of $1.55 bn as of July 2021.
The startup operates more than 80 cloud kitchens spanning several countries, including the UAE, Saudi Arabia, Kuwait, and Bahrain. It achieved this expansion by strategically partnering with over 200 brands.
Recognized for its rapid growth and significant funding, Kitopi topped Forbes Middle East’s 2021 list of “50 Most-Funded Startups”. With 20 investors already in its cap, Kitopi is set to revolutionize the food tech sector in the MENA region.
Emerging Markets Property Group (EMPG)
Another unicorn to emerge from the Middle East is Dubai-based EMPG, a trailblazer in the global real estate industry. Established in 2015, EMPG specializes in the development of luxury properties within emerging markets and has a current valuation soaring over $1 bn.
Significantly, the year 2020 was a turning point for EMPG as it merged with the Netherlands-based OLX Group, a powerhouse in classifieds portals. At present, it proudly operates flagship ventures such as:
- Bayut.com in the UAE, Saudi Arabia and Jordan
- Zameen in Pakistan
- Bproperty.com in Bangladesh
- Mubawab in Morocco, Tunisia and Algeria
- Kaidee in Thailand
EMPG operates under 10 distinct brands, in 16 countries, and employs a strong workforce of nearly 7,000 members. As such, EMPG solidifies its influential role in shaping the luxury real estate scene in emerging markets worldwide.
Fawry
Adding to the impressive lineup of Middle Eastern unicorns is Fawry, a pioneering company in Egypt’s fintech landscape. Founded in 2008 by Ashraf Sabry, Fawry made its public debut on the Egyptian stock market in 2019. Eventually, by the end of 2021, Fawry’s market cap reached an impressive $1.4 bn.
Its expansive network is one of its key success factors. Particularly, it includes a broad base of 36 member banks, a user-friendly mobile platform, and a staggering agent network of more than 250,000 representatives. With such robust infrastructure, Fawry effectively processes an average of 3 mn transactions per day.
Furthermore, it caters to an impressive customer base of an estimated 35 mn users. This testament to Fawry’s wide-reaching impact further cements its dominance in Egypt’s fintech sector.
A promising horizon
Looking ahead, the entrepreneurial scene in the Middle East is forecasted to burgeon with unicorns. In turn, this surge promises to boost local economies and establish the region as a hotbed for innovative startups.
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