How COVID-19 will fuel the next wave of innovation in the Middle East

The global pandemic has created panic, industrial disruption, and affected people – to say the least. While there is a lot of uncertainty lurking around, if looked upon closely, there are numerous opportunities that entrepreneurs and corporations could perhaps capitalize upon. History has been a witness to it where crises like SARS in the early 2000s catalyzed the growth of eCommerce companies like Ali Baba and other established companies that initially ventured as start-ups like Uber and Airbnb. Analyzing a similar business model, the Middle Eastern region is also implementing long-term plans for economic growth with a pivotal role played by technology. Following the coronavirus outbreak, UAE announced a cumulative package of over $34 billion while the Kingdom of Saudi Arabic took a similar pathway with over $32 billion invested in its development. While on a macro level, there are many job-creating opportunities, it is necessary to retrospect on how entrepreneurs and start-ups can take advantage of the crisis with innovation at the forefront.

A rise in VoIP applications

With lockdowns enforced all over the world, the average usage of mobile phones increased dramatically. As per a survey conducted by PwC, the consumption of mobile payment gateways in the Middle East increased by 25% as compared to the average usage in 2018. Similarly, post the pandemic, there was increasing popularity in these channels when it rose to 31% while 44% of the consumers only placed orders through their mobile devices. Additionally, calling applications took a prominent place for scheduling meetings, homeschooling and to even connect individually. Zoom Cloud Meetings were one of the highest downloaded applications of this year as reported by Ibid.

In early March 2020, UAE teamed up with Microsoft and Zoom to launch the application to support remote working during the crisis. Although this collaboration is a temporary service, it has minimized disruption in workplaces and streamlining processes. This has also created opportunities for tech-based companies to shift their services online rather than suspending businesses altogether.

A digital system for mental health

 It is needless to say that Covid-19 has expedited remote working and online education. Although, what could be a challenge is how the workforce is going to come together to continue working remotely that is efficient and streamlined. For many, this is a testing period which can take a toll on their mental health and overall morale. Hence, it will be interesting to see how mental health will be integrated into digital systems and how effectively start-ups can take charge with the support of digitization.

One of the Egypt-based companies, Shezlong, offers a psychotherapy platform to its residents and its online customers. Through this, people can meet licensed and professional therapists and share their worries and anxieties digitally. Recently, the company has announced a whopping $500,000 as of its funding. Additionally, with its collaboration with Dubai Expo 2020, the start-up has announced to provide 15,000 free therapy sessions with diverse specializations to improve mental health and create further awareness that is known as a societal stigma. 

Artificial intelligence takes centre stage 

Technology is incomplete without the mention of artificial intelligence. Today, this digital tool has become a primary source of usage in numerous industries. The Middle Eastern region has also recognized its growing significance and has devised the UAE Artificial Intelligence Strategy 2031 along with Saudi Arabia vision 2030. Both the countries have placed AI as top priorities and have committed to placing ‘smart’ solutions to transform businesses, government and schools. Leading by example, UAE’s Dubai Police have integrated AI solutions to distinguish vehicles of people who belong to the vital sector and the ones who have breached the lockdown enforced by the authorities. 

Similarly, Etihad Airways have also confirmed to use AI and automation to screen passengers for any visible symptoms of the virus that will prevent any potential transmission. Additionally, the UAE has also launched the first AI university named after His Highness Sheikh Mohamed Bin Zayed. The university can serve as a strong platform to foster and nurture students who aspire to become prominent members of the AI industry. The Sheikh has also announced the launch of the second satellite by the end of 2023. Keeping all of this in perspective, it is evident how artificial intelligence will shape the future of the Middle Eastern region. 

Evolution of Ecommerce 

With lockdowns and social distancing enforced all over the world, people are hesitant to shop and buy products in conventional ways. People refrain from attending gatherings or even going to supermarkets to buy their essentials, instead banking on online platforms that are supported with contactless deliveries. Hence, aspiring business owners must consider the e-commerce route as research claims a steep spike in the customer-retail operations. With the Middle East regarded as one of the fastest-growing e-commerce markets, it gives an optimistic insight into this industry. One relevant example is the success story of InstaShop who have recently been acquired by Delivery Hero for about $360 million. In less than 4 fours, the start-up had over 350,000 active users and expanded across major hubs in the Middle Eastern region. Their successful execution of ecommerce strategies and embracing technological advancements has set them apart from other ecommerce ventures. 

The region has also seen its profits quadrupled; that was only a $5 billion profit market in 2015 to $20 billion before 2020. Analysts confirm that the market is estimated to reach over $48 billion by 2021. With the Middle East, a growing hub for online goods and with its modern technologies, the region is positive to have a promising future for e-commerce setups and companies.

Innovation-led

Chaos often leads to the development of opportunities. In retrospect, innovation thrives when a crisis arises. This is quite apt for the telehealth industry. UAE’s Ministry of Health is already in talks with DU telecom to develop and execute the first virtual hospital. In hindsight, virtual hospitals allow people to avail healthcare facilities from the comfort of their homes. The Ministry is already in the process to offer e-healthcare facilities along with the development of a telemedicine application. These services have been implemented in many UAE hospitals to avoid further exposure to the contagious infection. On the flip side, KSA’s Ministry of Health has established a few e-health strategies that will improve the accessibility and quality of these facilities. All of these are creating more opportunities for individuals to thrive in this challenging business market. 

Certainly, the global economy has taken a severe hit due to the pandemic where millions of people and families have been affected. It is now crucial to analyze the large-scale problem with entrepreneurial ideas led by technology and innovation. Although some have gained momentum, there is a lot to explore and execute! 

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