AMMAN — Thanks to an injection of funding and raft of government-sponsored
incentives, Jordan now has one of the fastest-growing start-up ecosystems in
the
Middle East, according to a press statement.
اضافة اعلان
“A well-educated workforce and access to
local and international funding have helped to create a dynamic ecosystem that
makes (Jordan) a strong location for start-ups,” Ibrahim Al-Safadi, CEO of
Luminous Life+, which supports entrepreneurs through its incubator Jordan
Start, told news outlet Arabian Gulf Business Insight.
Investment in digital services and fintech
services is a major part of Jordan’s 2025 national plan to accelerate growth
and development.
“There has been a significant shift in mindset surrounding the potential for start-ups to succeed, with a growing number of success stories...”
Faisal Al-Armouti, CEO of delivery
platform Doorbox said that changes to the business environment helped drive his
decision to launch a company this year.
“There has been a significant shift in
mindset surrounding the potential for start-ups to succeed, with a growing
number of success stories and a supportive community of entrepreneurs and
investors,” he said.
Start-up funding avenues
The Kingdom’s total start-up funding
increased by 500 percent in 2021 compared to the previous year, and the recent
launch of the Jordanian
Ministry of Digital Economy and Entrepreneurship and
its $100-million tech-focused venture capital fund is fostering a “vibrant
entrepreneurial culture”, according to the statement.
The Kingdom’s total start-up funding increased by 500 percent in 2021 compared to the previous year
It is not all plain sailing, however. The
fund will focus on high-growth technology companies with proven business models
— a tall order for early-stage Jordanian start-ups that are seeking investment.
“The challenge is that a lot of capital
being made available to these
entrepreneurs is profit-driven, first and
foremost,” said Karim Samra, founder of Changelabs, a social enterprise
accelerator focused on the Middle East and Africa.
“The challenge is that a lot of capital being made available to these entrepreneurs is profit-driven, first and foremost.”
“They need to show potential exists for
scalability, expansion and growth. But not all great businesses can do that,”
he added.
“One solution is to lean on
non-governmental organizations and charities that are not profit-driven to
create a blended investment strategy that provides a first-round of funding
before looking to the private sector for the second tranche,” Samra said.
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