Cultivating a tech start-up culture is key to driving economic as well as environmental, social and governance (ESG) progress across the Middle East and North Africa (MENA) region, Crescent Enterprises’ Deputy CEO and Head of Investments Tushar Singhvi has said.
According to public policy think tank Information Technology and Innovation Foundation, tech-driven ventures in the US present more attractive opportunities for professionals, paying an average of $102,000, more than double the current US average of $48,000. “With a mature tech start-up ecosystem, these opportunities could become a reality in MENA too, and consequently we could see regional tech-driven ventures paying professionals more than double the current average salary,” Singhvi commented.
“ESG investing has been on the rise since the credit crunch of 2008. The current pandemic has accelerated the second surge of ESG-compliant investments, and tech companies represent a sizeable slice of the pie,” he added.
Globally, the tech innovation ecosystem is increasingly leaning towards ESG investing. More investors, while making profits, are consciously and conscientiously seeking a positive impact on society and the planet. According to a survey by insurance and pensions provider Aviva, 55% of investors said ESG factors have become a more important aspect of their investment decisions in the wake of COVID-19.
By speeding up digitisation, COVID-19 has created an opportunity to rethink decision making around tech applications for the betterment of society and the planet. Corporations, big or small, can benefit from the value of tech to contribute to a more prosperous and greener future for the region.
A World Economic Forum (WEF) forecast states that 60 percent of global GDP will be generated by digital businesses by 2022. “Harnessing the dynamism of the tech start-up culture would enable MENA countries to achieve ambitious social and environmental sustainability targets. The region’s ability to nurture homegrown entrepreneurs and import global tech start-ups will define our success in the Fourth Industrial Revolution across key sectors of the regional economy over the next five years,” Singhvi added.
“Post-COVID-19, it is more crucial than ever that MENA economies represent places within which start-ups can succeed, and by doing so, help find innovative and inclusive ways to overcome social challenges in order to advance quality of life for everyone.”
Singhvi, who made his remarks during an Endeavor UAE webinar for entrepreneurs and founders, added: “MENA countries offer excellent opportunities for ambitious tech-enabled start-ups, but nurturing or attracting them and supporting them to thrive is the responsibility of not just the government. Because of the sheer scale and potential of the region’s rapidly emerging economies, I believe MENA can become one of the most exciting regions for digital business to expand or launch.”
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