UAE Startups: Seeing more interest from Chinese companies

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Middle Eastern startups say they're seeing more interest from Chinese companies. Beijing-based Bluefocus Group entered the region this month after buying a stake in a Dubai-based tech firm. As Nawied Jabarkhyl reports from the city, there could be more deals to come.

For Akanksha Goel, the Middle East's tech revolution is only just starting. The founder of digital media agency Socialize, has sold a majority stake in the firm to We Are Social – which is part of China's Bluefocus Group. She believes the deal is proof that global firms are taking note of the region's potential.

AKANKSHA GOEL, FOUNDER & MD SOCIALIZE "50% of the population here is under the age of 24 and that's double of what you see in markets like the U.S. and the UK. So, the consumer has shifted to digital, the consumer has shifted to mobile and as a result, consumers are very active on social."

The acquisition, which was valued at just under $15 million will see the Dubai-based firm join We Are Social's global network, which includes offices in Beijing and Shanghai.

AKANKSHA GOEL, FOUNDER & MD SOCIALIZE "China is a country whose place on the world stage is now. And we think it's going to be interesting for us to look eastwards, because a lot of our clients are, and China is an important market for a lot of our clients."

There are other ways China's presence in the technology sector's being felt here. Rita Huang Zhen founded Dubai startup iMile last year. The idea was a simple one – to offer regional logistics support to China's e-commerce giants.

RITA HUANG ZHEN, FOUNDER IMILE.ME "We see that the barrier of doing business, especially for e-commerce is so high for them. So, we collect the cash-on-delivery on behalf of them and we transfer them every week."

iMile now works with more than a hundred Chinese e-commerce platforms and says it's seeing a 50% increase on business each month. Choosing where to set-up was an easy decision for Rita.

NAWIED JABARKHYL DUBAI "Many of the Middle East's most valuable startups are based here in Dubai. The city's also a key location in China's Belt and Road Initiative, with around 4,000 Chinese companies now registered here. It's that combination of factors that has firms like this one excited about the potential of the region's technology scene."

In recent years, Chinese firms have benefited from Beijing's Belt and Road plans in the region, with major infrastructure and energy companies doing particularly well.

RITA HUANG ZHEN, FOUNDER IMILE.ME "For the young generations, we don't see that these traditional businesses are our opportunity. So, we see that tech, and especially I have seen, because we are in e-commerce field, so e-commerce has been the biggest engine I have seen in this region."

Consumers and businesses are increasingly moving online here, and that's serving up an opportunity for those in the creative world, whether they're major Chinese startups or smaller Middle Eastern ones. Nawied Jabarkhyl, CGTN, Dubai.