Fast-tracking the resurgence of the UAE economy

2021 has been a year of renewed optimism and increased confidence in the UAE economy, as the Government’s tactical approach to managing the pandemic has swiftly put the country back on track ahead of its Middle Eastern and Western counterparts. Building on the momentum that the UAE government has set, Virtuzone has quickly launched projects meant to leverage this and further accelerate the business sector’s recovery

Pioneering cryptocurrency payments

We have become the first company in our industry to accept cryptocurrency payments for business setup, a strategic move that underlines our commitment to continuously innovate the company incorporation process in the UAE and adopt the latest fintech solutions that help solidify the UAE’s position as a leader in the region’s Fourth Industrial Revolution.

By initiating the acceptance of cryptocurrency payments, we seek to accelerate the implementation of cuttingedge digital technologies in the country and establish the UAE’s central role in creating a global borderless business hub.

Our role is to catalyse start-up growth in the UAE & MENA region

Since we started over 12 years ago, we have been consistently guided by an overarching principle; to empower entrepreneurs who will empower the national economy.

Recognising the pivotal role we have in the UAE’s local business community, we continue to work alongside authorities

George Hojeige CEO, Virtuzone

and private organisations to promote start-up development in the country and to provide them with a holistic support environment where they can get access to crucial resources such as funding, mentorship, technology and corporate infrastructure.

As part of this undertaking, we have recently joined the BY Fund II, a US$50 million venture capital fund launched by BY Venture Partners to support earlystage start-ups, with the greater goal of linking the start-up sector of the UAE and MENA region with global markets.

Taking part in the BY Fund II gives us the opportunity to tap directly into the burgeoning start-up sector, especially in the fields of finance, technology and innovation, and work more closely with the founders, investors and other stakeholders who are behind the next generation of disruptive solutions designed to put the UAE at the forefront of global disruptive innovation.

In addition to collaborating with VCs and other investors, we have also increased our own start-up investment activities including taking on the lead role in the US$1 million investment round in HotDesk.

By investing in HotDesk, one of the select start-ups we are working with, we hope to send the message that Virtuzone is more than just the leading corporate services provider in the country. We are

active advocates of start-up success in the UAE, intent on partnering with and enabling entrepreneurs to grow their start-ups into scaleups.

Launching the MENA’s first e-commercefocused accelerator programme

According to Small Business Administration, a United States government agency focused on supporting entrepreneurs and small businesses, around 21.5 percent of startups fail in the first year. While the figures may vary according to different markets, sectors and locations, one thing they all highlight is how crucial the first year is for start-ups, and that it can make or break a newly formed business.

As we see the challenges that startups face first-hand, we have taken it on ourselves to create an avenue for them to minimise the risks involved in establishing a company, while providing them with a business ecosystem and network specifically designed to improve their chances of success.

That all-encompassing solution is AMP, an accelerator programme that we have initiated and launched together with our select partners including Aramex, a leading global provider of comprehensive logistics and transportation solutions; Etisalat, the UAE’s pioneering telecommunications service provider; Launch DXB, a platform that connects start-ups and entrepreneurs with growth resources, and more.

The first of its kind in the UAE and MENA region, AMP is an e-commercefocused accelerator founded on a collective goal of building an enabling environment that puts entrepreneurs in an optimal position to start and scale their operations fast and allows them to circumvent the obstacles hindering start-up growth.

This year, our corporate strategy and objectives have been largely motivated by the market opportunities emerging and resurfacing in the country, as the UAE successfully put the pandemic and its devastating impact under control.

The UAE has set the pace and we aim to follow through, with bigger targets, greater ambitions and more impressive feats in 2022.

Expo 2020: Capitalising on its ongoing success and harnessing new opportunities

Market analysts have estimated that the Expo 2020 will add US$33.4 billion of gross value to the national economy up to the year 2031 and will account for 1.5 percent of the UAE’s gross domestic product (GDP) throughout its six-month duration.

Nearly two months after the global fair has opened, the number of visitors has breached the four million mark, while the number of virtual visitors soared to 22 million. With the Expo 2020 gathering 192 countries in one enormous platform, business opportunities in various sectors are opening up faster, signalling a stronger economic performance in the last quarter of 2021 and in the coming year.

As we aim to harness the country’s exponential growth potential, we have developed long-term strategies that will enable us to further strengthen our presence in the UAE market and extend our reach to other emerging business hubs across the GCC region.

In 2022, we intend to build stronger ties with key government agencies and boost our public-private partnership activities, including introducing new and innovative business ecosystems that seamlessly merge our expertise and resources as a corporate service provider and the legal framework and support provided by the government to start-ups and entrepreneurs.

Exploring fintech and blockchain technology

Cryptocurrency data aggregator CoinMarketCap has reported that there are approximately 10,000 cryptocurrencies in the market as of 2021, reinforcing the status of cryptocurrencies and decentralised finance as the next big thing in the digital economy sphere.

In the UAE, although cryptocurrencies are not licensed by Central Bank, the government is considering revising national regulations to accommodate the growing number of crypto-related businesses in the country, with Dubai anticipating housing over 1,000 operating cryptocurrency businesses next year.

Seeing the trend of digital transformation moving towards blockchain-based technologies, including Hyperledger and open banking, we have started exploring digital solutions and joint partnerships that will allow us to build an adaptable in-house system capable of supporting business opportunities related to fintech and blockchain by 2022.

If there is anything that the pandemic has surely taught the world, it is to keep an open mind, continuously innovate, be on the lookout for emerging technologies and consistently be ready to take advantage of unexpected opportunities.

The next breed of unicorns in the MENA region

The UAE has revealed in November that it plans to be the home of 20 unicorns (private companies with individual valuations surpassing US$1 billion) as part of its Entrepreneurial Nation initiative, which includes allocating a AED 1 billion private equity fund to support UAE-based SMEs in strategic sectors.

This initiative echoes and aligns with the approach that we have started this year with investments in HotDesk and YAP, a digital banking platform, which reinforces our motivation to continue identifying and collaborating with startups that have the potential to bring disruptive and revolutionary solutions to the UAE.

Emulating the UAE’s vision, we will equip these start-ups with comprehensive support to catapult them into unicorn status, in line with the national initiative. As we conclude 2021 and welcome 2022, we aim to continually leverage the foundation that the UAE has built and take part in the future they have envisioned for the country by accelerating business growth and aiding start-ups and entrepreneurs from the ground up.

Shining through

Congratulations to all the Winners in the MEA Finance Awards 2021 and our thanks to all those who supported and participated this year’s event.

This, like 2020, has been another unusual year. While not locked down, or kept quite as separated from family, friends and colleagues; we have still been contenting with day-to-day uncertainties, such as where and when do we have to wear masks, can we travel and if so, will there be quarantine at the end of the voyage, or do we need to go into the office to work?

We have also had to consider macro uncertainties; will any economic recovery last, and for how long, will the great world powers help or hinder growth and how can we keep pace with the warp speed of digitisation in the past eighteen months? But despite these questions, the prevailing trend seems to be one of daring to be upbeat; a groundswell of hope which seems to be morphing into optimism.

With optimism in mind, the MEA Finance Awards recognize the institutions that have managed to persist with flair, agility and imagination amid the global fallout from the novel coronavirus. The financial institutions and technology firms who were conferred with awards, not only navigated a challenging economic climate but also managed to continue the upward trajectory of the industry, with the creation of innovative financial services solutions to better serve their customers.

The MEA Finance Awards have been a true success and we are proud to have had the opportunity to recognise and highlight the tireless efforts the many achievements of the industry over the past year.

Financial Institutions in the region have always embraced change, making an effort to stay ahead of the curve to keep themselves on par with financial institutions in more established markets. We at MEA Finance Magazine will continue to showcase your achievements and award the outstanding contributions that lead the industry forward.

Our congratulations again for all your accomplishments, and we are excited to see what you will showcase in the coming year.

Nap Estampador

Group Commercial Director, MEA Finance