Government support is required for start-ups in the Middle East, experts have argued.
Many founders and investors are of the opinion that the lasting impact of the Covid-19 pandemic may last as long as two years, and many start-up companies have seen their plans completely derailed because of the pandemic.
Statistics from start-up data platform Magnitt, for example, found that 58 per cent of investors are looking to delay exits, with lower valuations affecting 42 per cent of start-ups in investors’ portfolios. Additionally, the report found that a significant majority – 77 per cent – have yet to benefit from government support since the pandemic began.
“Start-ups are massive job creators, so support for start-ups and SMEs is always going to be important, not just in this period,” said Prince Khaled bin Alwaleed, the Founder and CEO of KBW Ventures.
Fadi Ghandour, the Executive Chairman of Wamda Capital, said that governments in some countries have “stepped up” to support hard-hit start-ups and SMEs, although more can be done.
“There have been some programmes, but nothing earth shattering. Salary protection programmes, furlough programmes, cash-flow supporting programmes did not happen,” he said. “That’s where governments can step in.”
