Home » Annex Investments Is On the Lookout for Promising Early-stage MENA Startups In Need of Funding and Business Support
With the MENA ecosystem seeing more investment activity than ever before, with exits like those of Careem, Anghami, and swvl making headlines more frequently, a lot of eyes have been opened to the region, especially as one with great untapped potential.
For Ahmed Nasser Al Nowais, who has been an entrepreneur in the UAE since the age of 16, the potential has always been there. Investing in tech and non-tech companies and going on to be a chair member at many prominent boards, committees and associations, he has built a repertoire of expertise and knowledge that he consolidated into one, concentrated effort: Annex Investments.
As one of the few truly privately-owned investor entities in the UAE, Annex Investments has also set out to act as an agent to multinational companies to help ease their entry into the MENA market, to stimulate the local ecosystem and lead to the next generation of “conglomerates, and scaleups,” Kareem Anabtawi, Chief Investment Officer (CIO) at Annex Investments, tells the Abu Dhabi SME Hub.
“We want founders to dream big and think they can be the next Mark Zuckerberg or Elon Musk, rather than selling to them,” he continues. “That is our role as early players and heavy movers in this ecosystem: to help assist both investors and founders.”
Currently, Annex is funneling its efforts into two avenues:
“We’ve now allocated funds that will go into the MENA region,” Anabtawi explains. “We work on a deal-by-deal basis, finding deals where we believe the startup is of high quality and innovative, and where we can act as a strategic investor, where we can add value by opening doors, making the connections necessary, and providing advisory and mentorship for the journey of the startup. That’s essentially the investment mandate we follow. We’re sector-agnostic. We look across all of MENA.”
Looking back a decade or so at the existing investment landscape in the UAE, Anabtawi traces back an interesting journey of expedited progress and development.
“When we first started, there wasn’t really an investor scene in the venture capital in the region whatsoever,” he notes. “We were early movers into this space, before a lot of other people were. Essentially, we noticed that once Careem and Souq had exited is when everyone started to see the legitimacy of the [UAE and MENA ecosystem].”
“We believe that back then, there was an extremely small amount of deal flow within tech in the region. Because of the surge that came following [the Careem exit], we are starting to see now that the market is maturing with a lot of new regional and international investors entering. We’re seeing more and more quality deal flow. It’s not fully mature, yet, but it’s definitely heading in the right direction.”
But the mere exit of Careem and other unicorns was just the culmination of the years-long efforts led by the UAE government to make doing business in the country easy and intuitive, Al Nowais explains. In his opinion, if government entities had not innovated and revamped elements like license registration, company laws, fee processes, and all the other aspects of setting up a business, the ecosystem “would never have matured” to this stage.
He explains that it was the combined effort of government regulatory support, in addition to improved self-education among investors in the region that helped produce the favourable environment that birthed success stories like those of Careem and others, and created the conductive investment environment we see today.
While the UAE startup ecosystem is no stranger to publicly-owned investment entities, as the UAE government is historically known to pump a lot of strategic capital into the market, the number of fully-private investor organizations has slowly been ramping up over the years.
As one of these entities, Anabtawi hopes that Annex Investments’ efforts will help bolster the culture of angel investing in the country and region, to encourage more private investors to take the leap.
“I think this is played on two fronts. One is with the startups and the founders. And the second is with the investors.
“As Annex Investments, it is our responsibility to help foster this tech ecosystem and to do so we need to first educate investors about what we are doing, how they can join in, how they can add value, how we can work to open doors to assist these startups and allow SMEs in the region to flourish.”
“Secondly, it comes up on the startup’s end. For example, how can we introduce X fintech company to the right banks, so that they can get the rates that allow them to assist the consumer, or have the access in the first place to these banks so that they can operate?”
“[Overall, it’s about] making sure we’re assisting SMEs as much as possible to no longer be considered an SME at the end of the day. We want to grow these startups to become large
conglomerates and maintain value for the region. We don’t want every startup in [MENA] to exit into an international [market, where] control and value become lost and the region [misses out on the value].”
While the Annex Investments team is always on the lookout for exciting startups that are looking for support, it is important to remember that most investors are looking to build a relationship with their beneficiaries, rather than simply using them as an investment vehicle.
Anabtawi frames it this way:
“As an investor, would you prefer if a startup comes to you over-subscribed, yet still wants you to be a part of their round, because they know you can offer them certain strategic support and advice, or would you prefer a startup come your way simply asking for money and nothing else?”
[The startup in the first example,] those are the people we look for. The people that don’t need our money, but our value add, and that’s how we know that our money will be in safe hands.”
In terms of improving a founder’s chances at receiving funding, Anabtawi advises, “Be prepared, do your homework, know the investor, what they like, what they invest in, and where and how they can add value. Make sure this is already within your pitch.”
“We don’t believe in just bringing in a cheque and praying for returns. We like to come in, add value, be involved. [Founders should] encourage our involvement, mentorship, and know exactly what they want from us.”
MEA Markets is happy to announce that the MEA Business Awards are returning for the sixth consecutive year! This established awards programme identifies those individuals and companies who excel in their respective industries, encompassing the entirety of the Middle East and Africa in our search to highlight the firms that go above and beyond to establish themselves as business leaders.
Visit our awards hereMEA Markets is very proud to host the UAE Business Awards 2023 for its seventh instalment! This awards programme aims to reward a vastly diverse range of hardworking businesses from across the United Arab Emirates region, who are demonstrating innovation and excellence throughout a turbulent economic climate many firms are suffering through.
Visit our awards hereFor the past five years the African Excellence Awards have recognised the very best of African Industry, and MEA Markets is excited to announce that this respected programme will be returning for its sixth edition in 2023! The African Excellence Awards are an essential guide to the key sectors driving growth throughout the continent, rewarding those outstanding companies and individuals whose entrepreneurship has strengthened Africa’s position as the next global economic powerhouse.
Visit our awards hereWe have packages to suit everyone. Let us help work out which one would suit your needs!
Ground Floor, Suite B-D,
The Maltsters, Wetmore Road,
Burton-on-trent, Staffordshire,
DE14 1LS
MEA Markets is a quarterly publication dedicated to researching and publicising the major moves and events as they happen across the entire Middle East & Africa region.
Our team of highly trained and committed journalists, contributors, researchers and worldwide industry insiders are on hand to ensure that our global readership enjoys 24/7 access to timely and entertaining content that keeps them up to date with the ins and outs of this fast moving region.
Cookie | Duration | Description |
---|---|---|
cf_use_ob | past | Cloudflare sets this cookie to improve page load times and to disallow any security restrictions based on the visitor's IP address. |
cookielawinfo-checkbox-advertisement | 1 year | Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . |
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
CookieLawInfoConsent | 1 year | Records the default button state of the corresponding category & the status of CCPA. It works only in coordination with the primary cookie. |
PHPSESSID | session | This cookie is native to PHP applications. The cookie is used to store and identify a users' unique session ID for the purpose of managing user session on the website. The cookie is a session cookies and is deleted when all the browser windows are closed. |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
na_id | 1 year 1 month | The na_id is set by AddThis to enable sharing of links on social media platforms like Facebook and Twitter. |
na_rn | 1 month | The na_rn cookie is used to recognize the visitor upon re-entry. It allows to record details on user behaviour and facilitate the social sharing function provided by Addthis.com. |
na_sc_e | 1 month | The na_sc_e cookie is used to recognize the visitor upon re-entry. It allows to record details on user behaviour and facilitate the social sharing function provided by Addthis.com. |
na_sr | 1 month | The na_sr cookie is used to recognize the visitor upon re-entry. It allows to record details on user behaviour and facilitate the social sharing function provided by Addthis.com. |
na_srp | 1 minute | The na_srp cookie is used to recognize the visitor upon re-entry. It allows to record details on user behaviour and facilitate the social sharing function provided by Addthis.com. |
na_tc | 1 year 1 month | The na_tc cookie is used to recognize the visitor upon re-entry. It allows to record details on user behaviour and facilitate the social sharing function provided by Addthis.com. |
ouid | 1 year 1 month | Associated with the AddThis widget, this cookie helps users to share content across various networking and sharing forums. |
Cookie | Duration | Description |
---|---|---|
d | 3 months | Quantserve sets this cookie to anonymously track information on how visitors use the website. |
Cookie | Duration | Description |
---|---|---|
__gads | 1 year 24 days | The __gads cookie, set by Google, is stored under DoubleClick domain and tracks the number of times users see an advert, measures the success of the campaign and calculates its revenue. This cookie can only be read from the domain they are set on and will not track any data while browsing through other sites. |
_ga | 2 years | The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. |
_ga_21JSMT0NZV | 2 years | This cookie is installed by Google Analytics. |
_ga_7GTFNZD3Y9 | 2 years | This cookie is installed by Google Analytics. |
_gat_gtag_UA_63302014_1 | 1 minute | Set by Google to distinguish users. |
_gat_gtag_UA_67421741_1 | 1 minute | Set by Google to distinguish users. |
_gid | 1 day | Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. |
aigm_tracking_consent | 1 year | Created by Monster Tracking v2 for internal tracking/fingerprinting - determines whether the user has consented to being tracked by allowing cookies. |
aigm_tracking_id | 1 year | Created by Monster Tracking v2 for internal tracking/fingerprinting - contains the consent ID number of the user. |
ANON_ID | 3 months | This cookie, set by Tribal Fusion, collects data on user visits to the website, such as what pages have been accessed . |
u | 1 year | This cookie is used by Bombora to collect information that is used either in aggregate form, to help understand how websites are being used or how effective marketing campaigns are, or to help customize the websites for visitors. |
uid | 1 year 1 month | This is a Google UserID cookie that tracks users across various website segments. |
Cookie | Duration | Description |
---|---|---|
_rxuuid | 1 year | Unruly Media sets this cookie to store information on how the end user uses the website and any advertising that the end user may have seen before visiting the said website. |
ab | 1 year | Owned by agkn, this cookie is used for targeting and advertising purposes. |
ANON_ID_old | 3 months | This cookie helps to categorise the users interest and to create profiles in terms of resales of targeted marketing. This cookie is used to collect user information such as what pages have been viewed on the website for creating profiles. |
CMID | 1 year | Casale Media sets this cookie to collect information on user behavior, for targeted advertising. |
CMPRO | 3 months | CMPRO cookie is set by CasaleMedia for anonymous user tracking, and for targeted advertising. |
CMPS | 3 months | CMPS cookie is set by CasaleMedia for anonymous user tracking based on user's website visits, for displaying targeted ads. |
DSID | 1 hour | This cookie is set by DoubleClick to note the user's specific user identity. It contains a hashed/encrypted unique ID. |
IDE | 1 year 24 days | Google DoubleClick IDE cookies are used to store information about how the user uses the website to present them with relevant ads and according to the user profile. |
KADUSERCOOKIE | 3 months | The cookie, set by PubMatic, registers a unique ID that identifies a returning user's device across websites that use the same ad network. The ID is used for targeted ads. |
KTPCACOOKIE | 1 day | The cookie, set by PubMatic, registers a unique ID that identifies a returning user's device across websites that use the same ad network. The ID is used for targeted ads. |
ljt_reader | 1 year | This is a Lijit Advertising Platform cookie used for recognizing the browser or device when users return to their site or one of their partner's sites. |
mc | 1 year 1 month | Quantserve sets the mc cookie to anonymously track user behaviour on the website. |
mt_mop | 1 month | MediaMath uses this cookie to synchronize the visitor ID with a limited number of trusted exchanges and data partners. |
pxrc | 2 months | This cookie is set by pippio to provide users with relevant advertisements and limit the number of ads displayed. |
rlas3 | 1 year | RLCDN sets this cookie to provide users with relevant advertisements and limit the number of ads displayed. |
suid_legacy | 1 year | Collects information on user preferences and interaction with web-campaign content which is used on CRM-campaign-platforms used by website owners for promoting events or products. |
test_cookie | 15 minutes | The test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies. |
tuuid | 3 months | The tuuid cookie, set by BidSwitch, stores an unique ID to determine what adverts the users have seen if they have visited any of the advertiser's websites. The information is used to decide when and how often users will see a certain banner. |
tuuid_lu | 3 months | This cookie, set by BidSwitch, stores a unique ID to determine what adverts the users have seen while visiting an advertiser's website. This information is then used to understand when and how often users will see a certain banner. |
uuid | 3 months | MediaMath sets this cookie to avoid the same ads from being shown repeatedly and for relevant advertising. |
Cookie | Duration | Description |
---|---|---|
b | 1 year | No description |
CMTS | 3 months | No description |
cookietest | session | No description |
GoogleAdServingTest | session | No description |
suid | 1 year | No description |