Can entrepreneurs contribute to economic diplomacy between countries in the MENA region?

Can entrepreneurs contribute to economic diplomacy between countries in the MENA region?

Amr Selim

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Beginners play an important role in the development of national economies and the acceleration of their growth, but at the same time their role must not only be limited to internal development, but it is necessary that they expand their influence to play a role in construction of broader relations between the countries of the world and serves as a bridge connecting different countries around the world. To create an interconnected network of economic interests and benefits that contribute to the strengthening of regional and international relations as well as political relations, which in turn is reflected in the provision of jobs and increasing cross-border investment, as well as in conflict indirectly in the Middle East and North Africa we will find that it enjoys high economic potential, in addition to its wealth of natural and scarce resources, and more than a third of its population is young, which means that entrepreneurs can play an effective role in strengthening economic relations between their countries, contributing to the revival of trade exchanges, and achieving a status of sustainable peace and interdependence among its people.

essential role

Beginners can contribute more to eliminating the unemployment crisis by creating new jobs in the Middle East and North Africa, and can help transfer technology between their countries, as well as contribute to solving many crises such as water scarcity, climate change and Inflation from To attract more domestic and foreign investment to the countries of the region, in parallel with the deployment of advanced technologies that increase production and industrial efficiency, and do not forget the poverty crisis, which affects the economic, security and political situation in the region get serious. Through these investments, it will be possible to alleviate poverty and unemployment, and perhaps eliminate them in the near future. As well as the development of the spirit of innovation and creativity among young people, which in turn is reflected in the development of relations between the countries and people of the region and the opening of new horizons for development and common benefits which in turn are positive on those emerging companies and national economies will be reflected.

Reem Al-Mahfouz, communications officer, confirmed Impact 46In Saudi Arabia, given the scalability of start-ups and the growth opportunities they face among several other companies, they certainly play an important role in the economic side of the region, while providing the country with solutions and talent. Reem explains that Saudi Vision 2030 has invested heavily in accelerating the presence of small and medium-sized enterprises, and that many public and private sector initiatives have been launched to increase their support, opening the door to start moving to new markets. to knit. in the region.

Reem also points out that the market and human capital are at the top of the list of challenges that beginners and founders face when expanding, as the behavior of a particular market may not meet the expectations of the beginner, and talent left over sufficient knowledge and forward pressure can be limited.

Which confirms the constructive role of entrepreneurs in the region and their ability to expand the region’s economy and transfer advanced technology to it.Expected trends of investment in the Middle East and North Africa in 2022“The new businesses in the region secured nearly $ 3 billion in funding in 2021, with expectations to continue to rise during 2022 with more investment transactions, which played a key role in opening the door to competition between global and local start-ups. in the region, with the support of investors International and major players, and the UAE launched the “Hometown of Entrepreneurship” initiative, which aims to establish 20 billion companies by 2031, and the Technical Venture Capital Fund (STV) in the Kingdom of Saudi Arabia to raise one billion dollars to promote and support the establishment of more billionaire companies in the region, confirming that emerging companies will play a crucial role in the region’s economies and relations between his countries during the coming period.

Economic diplomacy

Undoubtedly, entrepreneurs have a significant impact on strengthening economic diplomacy, which has a vital impact on strengthening countries’ foreign relations and developing their foreign policy instruments, as indicated by the report published by the Center. Atlantic Councilwith the title Silicon Valley’s role in foreign policy and what others can learn from it‘, which confirmed this A strong local system for beginners provides solutions to many challenges, raising awareness of local problems such as health care, housing and financial access for local entrepreneurs trying to solve these problems, as most countries realize that the public sector alone does not have the can not solve big problems. the country is facing, so a booming innovation sector can help the country make progress without the need for major government investments and more red tape. Startups also play an active role in the economic diversification of countries through full dependence on one sector to a number of other economic alternatives, such as Saudi Arabia planning for the future. It has a much lower demand for oil and gas, which is what the UAE has already succeeded in and was able to diversify its national economy by attracting many emerging companies in various fields, and to become an important center for advanced technology and global economic movement in a short time, which contributed to the strengthening of its foreign relations and the revival of its external relations. role in its various foreign and regional relations, which is what To make the UAE Ministry of Foreign Affairs puts economic diplomacy at the top of its priorities, working to attract and encourage foreign investment, stimulate trade and bilateral and multilateral economic relations to strengthen, as clearly demonstrated in the framework of “Vision 2021” and “UAE Centenary Vision 2071”.

Youssef Hamid El-Din, managing partner at VentureX in Jordan, in turn points out that start-ups create connections between markets and consumers, as well as regulations, regulations and controls, and make it easier to work freely, so the biggest challenge here is to increase the number of these Companies in each country in the region, for example, one of the Jordanian institutions made an inventory of the number of start-up companies in the country and found that it is only 400 companies. From the region to the whole world, and this impact will be felt by employees, workers, as well as job seekers.

He added: “We need to note an important point, as there are a number of start-ups that operate in practice and continue in the market, but from the economic side they do not achieve sufficient income and profits or high feasibility to can expand and grow, so the number of start-ups does not match each other With the economic prospects we want in the region.

It is noteworthy that the World Economic Forum recently called on governments to support entrepreneurs and activate the role of emerging companies through official policies based on supporting them and providing for their investment needs, which will inevitably reflect the national economy and the level of trade will increase. exchange with other countries, which contribute to the provision of a fruitful environment For trade relations based on mutual benefit between different countries, each party fills the other party’s economic deficit and shares its trade surplus at the same time, in an integrated network of fruitful economic cooperation . The forum recommended that governments grant direct grants and interest-free loans to start-ups and provide various financing instruments that enhance investment, in parallel with the pumping of more investment capital, as well as assistance with employment support schemes through various programs suitable for all job categories. of entities is encouraged This provides an opportunity for entrepreneurs to test their initial business models on the ground.

Ahmed Shaaban, CEO of Simplex for Industrial Solutions and Software in Egypt, explains that emerging companies play a role in strengthening economic relations and commercial ties, especially companies that work on disciplined foundations and studies and develop their marketing tools and methods, so there should be consultants in every A country to provide advice and counsel to entrepreneurs to market their products and support their activities in the region, especially as there are many opportunities in the Middle East and North Africa, and a very large volume consumption and demands that need to be looked at with more attention. He added: “The biggest challenges we face are understanding the economic environment of each country, and what each party needs from the other to bring mutual benefits and effective economic exchanges. For example, there are sometimes difficulties in communicating with different cultures and different cultures. language differences, which make it difficult for our business ideas to come. let hear. ” – According to him –

Startups in the Middle East and North Africa can change from just an economic way to revive the commercial role of young people into an important tool for promoting cooperation between the countries of the region, achieving self-sufficiency on various areas, attracting global investment and advanced technology, which in turn contribute to the resolution of many crises facing the region. This already includes some of the countries in the region and indirectly affects their economic performance and standard of living. of its citizens.

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