Ask HN: Is Moving to the Middle East a Smart Move for My Startup Dreams?

2 points by antTman 1 year ago | 3 comments

Hey everyone!

I’ve been a Software Engineer for years, working with startups around the globe, and I love the fast-paced, builder lifestyle. I’m all about startups, fundraising, and hacking away at new ideas—basically, if it’s about growth or innovation, I’m in.

Recently, I’ve been considering a move to the Middle East to get closer to investors and see if it might kick-start the next phase of my career. The region is clearly ramping up in some really interesting areas: AI, chip development, renewable energy… Meanwhile, Europe (where I’m based) sometimes feels like it’s running a slower race.

So, here’s what I’d love to know:

1. Is the Middle East a good place for someone with a startup mindset looking to launch new ventures?

2. Any specific cities, incubators, or early-stage investors you’d recommend I look into?

3. Bonus: I’m that techie who often gets mistaken for a “management guy” because of my people skills—happens all the time, and it cracks me up…

Any tips, insights, or just general thoughts are super welcome.

P.S. USA is not an option.

Thanks in advance for the help!

talldayo 1 year ago |

No, because judging from the wording of your question you apparently hardly understand what the Middle East is.

a) There are many, radically different Middle Eastern countries that have wildly different opinions and philosophies towards startups. The culture fit is entirely different from what you are familiar with in Europe and will necessitate different business strategies.

b) A majority of the investment funds coming from the Middle East is sourced from unsustainable oil revenue, and is motivated by a neverending hunger for moonshots. Startups that cannot prove their worth immediately are going to be filtered out or cut off.

c) Many Middle Eastern nations (the Emirates, for example) struggle to integrate with global policy. It would not be surprising if your business ended up on an export control list as a result of the UAE's importation of indentured workers from India and Pakistan. And that's only covering the secular concerns...

You should only consider moving your business to the Middle East if there is a directly tangible benefit to the outcome. Otherwise you are pretty much exclusively downgrading the profile, target market and soft-power of your business.

antTman 1 year ago | |

Lots of food for thought.

I’m curious about the sustainability factor you mentioned. Are there examples of startups or projects that were cut off because they didn’t deliver immediate results? And is there still room for ventures that might need more time to grow?

Also, I’m curious to hear if there are any clear advantages to launching a startup in the Middle East. Or there is literally nothing positive about the region :/

talldayo 1 year ago | | |

To be clear, there are a lot of bright spots in the Middle East and I think it's given undue shade by the media. I have family in the Levant and I wish things were better circumstantially in the area.

But moneymaking is a painfully practical thing. You don't have the same technology-addled audience you find in Europe. You can't sell an app, and things that require WiFi or electricity might be hard to sell. Marketing is going to be divided along tense political lines and saying or doing the wrong thing could make your product unpalatable by the majority population living there.

So... if selling to the low/middle class isn't an option, you have to kiss up to the rich guys. And the rich guys are largely people with political power or material wealth, and expect a high return on investment. You're going to struggle to keep them on the hook when they can divert money to campaigning or building another oil refinery. You have to convince these people that your product isn't going to be a moneysink, because they're not the same starry-eyed capitalists you find in Europe or America.

You can still make money in the Middle East - there are products that will turn heads. But even if you're preternaturally successful from selling a quality product, it might all turn out to be a gilded cage.