Canadian entrepreneur Wayne Liang has found success in the Middle East by expanding his e-commerce businesses and entering the venture capital and private equity markets. He established Liang Holdings in the United Arab Emirates (UAE) in 2019 and has since benefited from the ease of setting up financial structures, tax savings, and the safety of investments in the region.
It’s worth noting that the Middle East has seen a significant increase in startup activity and investment in recent years, driven by several factors. But what makes the Middle East a good market for business expansion?
Increase in “A fresh Money”
The abundance of cash in the area, particularly from rich young investors willing to support novel company concepts, is one of the key forces behind this development.
According to Liang, the infusion of “new money,” or a significant quantity of cash from millennials, has made the Middle East a particularly appealing region for startups and investments. They are seen as a group that is eager to invest in start-up companies and more willing to take risks when using cutting-edge technology, which attracts funding-seeking enterprises to them. As a result, the area now has more business potential than North America, or perhaps anyplace else for that matter.
Non-aggressive Investment Bank
Fewer companies serve tiny, early-stage, developing enterprises in the region, where venture funding is less competitive. Liang is now able to outbid smaller enterprises for project finance and/or stock purchases.
This lack of competition presents a chance for entrepreneurs to get money and equity in promising enterprises at more favourable terms for the few venture capital firms that do operate in the area. Although the Middle East’s venture capital sector is now still rather tiny and underdeveloped in comparison to the US and Europe, the prospects won’t remain for very long since we anticipate development in the future years.
Real Estate Investment Possibilities
The region of the Middle East is well-known for its tourism industry and is home to several famous landmark locations that attract tourists from all over the world. Increasing demand for both commercial and residential real estate results from the area’s high tourist traffic, which may lead to various profitable investment options for individuals with an interest in the real estate sector. Since I spend the majority of my time in the Middle East each year and am surrounded by so many visitors, it is very clear that real estate in this region will nearly always be a secure investment, said Liang.
To Do Business In The Middle East
A lot of Middle Eastern nations have been working hard to draw foreign investment and companies. Promote entrepreneurship, involves initiating innovation-focused projects, providing tax advantages, and establishing special economic zones. A conducive environment for startups to thrive has been established through government support for technology and innovation.
The Middle East has various more advantages for business owners in addition to monetary and portfolio growth. For instance, despite the region’s low labour costs, development timelines are ridiculously long. The creativity and speedy manufacturing here are unbeatable, according to Liang. Additionally, there are fewer restrictions on funding and other matters, which gives corporate organizations greater freedom, they continued.
Additionally, some of the richest individuals in the world reside in Dubai and Tel Aviv, both of which are friendly places to network with other businesspeople.
The markets in the Middle East already provide more than enough incentives for business owners, but the new announcement of a massive $500 billion project in Saudi Arabia is anticipated to garner even more interest from the rest of the globe. Liang’s phenomenal accomplishment in such a short period of time is not surprising given Wayne’s knowledge and experience, as well as the fortunate circumstances.