After the Covid-19 pandemic caused lockdowns around the world in March 2020, hiring froze and so effectively did the livelihood of Egyptian jobs site Shaghalni.
But the blue and grey-collar recruitment company, founded in 2016, came back stronger than ever in 2021. It now faces another crisis due to the economic fallout of the Russia-Ukraine war.
With funding limited to $400,000 from just two investors — billionaire businessman Naguib Sawiris and Egyptian venture capital company 138 Pyramids — the start-up is focusing on profitability and sustainability for the bumpy road ahead.
I don't think anything is going to be worse than Covid
Omar Khalifa,
chief executive of Shaghalni
“We just need to be wiser with our spending,” says Shaghalni founder and chief executive Omar Khalifa. "But at the same time, I don’t think anything is going to be worse than Covid."
Today Shaghalni, which means "hire me" in Arabic, has a database of more than 1.7 million jobseekers and more than 10,000 registered companies.
The site charges employers a subscription fee to advertise their jobs on the platform and runs job fairs a few times a year.
It recruits for blue-collar jobs such as technicians, production workers and maintenance engineers.
Grey-collar workers include waiters, call centre agents, company drivers, sales representatives, shop keepers and cashiers, Mr Khalifa says.
The pandemic upended labour markets globally through curfew measures, travel bans and supply chain disruptions and caused a decrease in demand for certain goods and services as well as a decline in production.
In Egypt, the unemployment rate rose to 9.6 per cent in the second quarter of 2020, from 7.7 per cent in the first quarter, as the economic effects of the coronavirus took hold.
About 2.3 million Egyptians left the labour force between April and June 2020, meaning they lost the ability or willingness to search for a job, a December 2021 report from Shaghalni competitor BasharSoft said.
Although Egypt’s unemployment rate has dropped to 7.2 per cent in the first quarter of this year, high youth unemployment and a wide gender gap persist in the Arab world’s most populous country.
Unemployment among youths aged 15 to 24 years averaged nearly 30 per cent between 2015 and 2020, the International Labour Organisation said.
Russia’s invasion of Ukraine in February has hit Egypt’s economy on several fronts.
It has disrupted vital supplies such as wheat, pushed inflation to a three-year high, caused the loss of billions of dollars in foreign investment and prompted the government to devalue the local currency by 14 per cent against the US dollar.
Mr Khalifa, 38, has seen his fair share of Egypt’s economic woes.
He had always dreamed of starting his own business and, after graduating from the American University in Cairo, launched a magazine publishing company called Omedia in 2009.
“The company was growing fine until the revolution in 2011 and then everything was a disaster,” Mr Khalifa says.
After the protests of January 2011 led to Egyptian president Hosni Mubarak’s removal from power, the country suffered from socio economic and political instability for years.
Meanwhile, Omedia lost its entire publishing portfolio and Mr Khalifa went into debt for three years from 2011 until 2014.
To get back on track, he expanded Omedia’s services from securing local franchises of international magazines to selling digital and outdoor advertising.
Mr Khalifa also vowed that once he paid off his debts, he would start Shaghalni, an idea he had in university to link workers with the types of jobs that are rarely advertised in easily found places.
He pitched to several venture capital firms for funding but was repeatedly rejected.
Mr Khalifa then decided to create the beta version of the website and advertised on Facebook for $5 a day, securing 500 jobseekers and 50 companies by late 2015.
His big break came from a meeting with Mr Sawiris, the executive chairman of Orascom Investment Holding, who built his estimated $3.4 billion fortune in the telecoms sector.
Mr Khalifa managed to get a generic email for Mr Sawiris from Twitter, a platform in which the billionaire is active, and sent a note pitching his idea.
“I’m a big believer in the saying 'luck happens when preparation meets opportunity’, so you’re never going to be lucky if you’re not prepared and you’re never going to be lucky if you don’t take any chances,” Mr Khalifa says.
He sent the email, selling the idea of Shaghalni, and received a reply notifying him that Mr Sawiris would like to meet him.
“There was no time to break the ice or anything. He’s a very straightforward, shrewd businessman. I literally had five minutes,” Mr Khalifa says.
Mr Sawiris believed in the social impact of the business, investing a total of $250,000 in 2016 and 2018 through his private equity firm, Gemini Holding.
“He loves job creation, he’s very patriotic and I think he has a big heart,” Mr Khalifa says.
But Shaghalni hit another snag in November 2016 when Egypt devalued the pound by 48 per cent to secure a $12bn loan from the International Monetary Fund, and began a three-year economic reform programme.
Shaghalni’s revenue fell by 21 per cent in 2017 before growing 156 per cent in 2018 and 112 per cent in 2019. In 2020, it plunged by 50 per cent. Finally, last year, it grew by 242 per cent.
During the pandemic, Mr Khalifa “did not want to lay off anyone”, so he offered them half-salaries and arrangements to work from home.
“I have 18 employees — 17 stayed, one left. I think that’s a good percentage,” he says.
In August 2020, Shaghalni closed a much-needed pre-series A funding round, raising $150,000 from 138 Pyramids.
The fund chose to invest in Shaghalni because of the social impact of the company, but also because of Mr Khalifa’s persistence and enthusiasm, says Neveen El Tahri, chairwoman at 138 Pyramids.
“Covid was a very good judge for the entrepreneurs themselves,” Ms El Tahri says. “How do you pivot during that period? Do you just give up and throw in the towel?
"Omar was unbelievable in terms of his will and his passion.”
After being turned down by more than 40 venture capital funds over the years, looking for “very scalable, very aggressive” companies that “can return 10 times, 20 times, at any cost”, Mr Khalifa has changed tactics.
Instead of concentrating on market share and increasing the number of employers on its list, Shaghalni has doubled the subscription fees and is focusing on large companies, such as Pepsi and Spinneys.
A yearly subscription now ranges between $2,500 and $7,000 a year. Smaller companies, which used to pay a low subscription fee of $30, have been moved to a pay-per-hire basis.
Shaghalni takes one month’s fee or 10 per cent of the annualised salary.
“Since we’ve done this, we’ve been in a much better place. And I’ve stopped pitching to VCs,” Mr Khalifa says.
For the past nine months, Shaghalni has been cash-flow positive.
Last year, the company resumed its bi-yearly job fairs at the American University in Cairo after the pandemic, including one specifically for women. It held one in February and is planning two more this year.
Mr Khalifa believes the online-offline model is what makes Shaghalni stand out.
There is still stark competition from BasharSoft, which owns employment platforms Wuzzuf for white-collar jobseekers and the Arabic site Forasna for blue-collar jobs.
BasharSoft says it has helped more than 50,000 companies successfully hire more than 750,000 people.
Although it also suffered through the pandemic, the start-up has raised a total of nearly $8m over two funding rounds in 2015 and 2018.
That still pales in comparison to the high amounts raised by start-ups in Egypt’s FinTech sector recently, such as $50m by Paymob and $120m by MNT-Halan.
“Being an entrepreneur and seeing every day fellow start-ups raising millions of dollars, you feel like you’re losing a race, when in fact that’s not true,” Mr Khalifa says.
“Everyone has a different journey, everyone has a different story, everyone works in a different sector, so when I compare myself to others in the same sector, I think we’re in a very good position.”
Q&A with Omar Khalifa, chief executive and founder of Shaghalni
Where do you see the company five years from now?
A sustainable, profitable business that keeps creating job opportunities every day.
What’s your biggest lesson from launching Shaghalni?
Running a start-up is not a sprint but a marathon. I have had terrible days and great ones, the key is to stay focused and not get distracted.
It is important to take advice from investors, but also not drift away from what the business needs. Focus on making the company profitable and bringing real value.
What skills have you learnt from setting up your business?
Being flexible, aggressive, fast, ambitious, results-oriented and innovative.
If you had to start over, what would you change?
I'd have definitely been more aggressive and raised earlier to fuel our growth.
What other successful start-up do you wish you had started?
Twitter.
COMPANY PROFILE
Company: Shaghalni
Based: Cairo, Egypt
Launch year: 2016
Founder: Omar Khalifa
Number of employees: 17
Sector: Recruitment
Amount raised: $400,000
Investors: Naguib Sawiris, 138 Pyramids
Green ambitions
- Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
- Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
- Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
- Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
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Our Time Has Come
Alyssa Ayres, Oxford University Press
The design
The protective shell is covered in solar panels to make use of light and produce energy. This will drastically reduce energy loss.
More than 80 per cent of the energy consumed by the French pavilion will be produced by the sun.
The architecture will control light sources to provide a highly insulated and airtight building.
The forecourt is protected from the sun and the plants will refresh the inner spaces.
A micro water treatment plant will recycle used water to supply the irrigation for the plants and to flush the toilets. This will reduce the pavilion’s need for fresh water by 30 per cent.
Energy-saving equipment will be used for all lighting and projections.
Beyond its use for the expo, the pavilion will be easy to dismantle and reuse the material.
Some elements of the metal frame can be prefabricated in a factory.
From architects to sound technicians and construction companies, a group of experts from 10 companies have created the pavilion.
Work will begin in May; the first stone will be laid in Dubai in the second quarter of 2019.
Construction of the pavilion will take 17 months from May 2019 to September 2020.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
More on animal trafficking
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
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The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
The%20specs
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The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
Price: Dh380,000
On sale: now
Prop idols
Girls full-contact rugby may be in its infancy in the Middle East, but there are already a number of role models for players to look up to.
Sophie Shams (Dubai Exiles mini, England sevens international)
An Emirati student who is blazing a trail in rugby. She first learnt the game at Dubai Exiles and captained her JESS Primary school team. After going to study geophysics at university in the UK, she scored a sensational try in a cup final at Twickenham. She has played for England sevens, and is now contracted to top Premiership club Saracens.
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Seren Gough-Walters (Sharjah Wanderers mini, Wales rugby league international)
Few players anywhere will have taken a more circuitous route to playing rugby on Sky Sports. Gough-Walters was born in Al Wasl Hospital in Dubai, raised in Sharjah, did not take up rugby seriously till she was 15, has a master’s in global governance and ethics, and once worked as an immigration officer at the British Embassy in Abu Dhabi. In the summer of 2021 she played for Wales against England in rugby league, in a match that was broadcast live on TV.
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Erin King (Dubai Hurricanes mini, Ireland sevens international)
Aged five, Australia-born King went to Dubai Hurricanes training at The Sevens with her brothers. She immediately struck up a deep affection for rugby. She returned to the city at the end of last year to play at the Dubai Rugby Sevens in the colours of Ireland in the Women’s World Series tournament on Pitch 1.
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Company%20profile
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Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
No Shame
Lily Allen
(Parlophone)
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The%20specs%20
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hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
UAE currency: the story behind the money in your pockets
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Other must-tries
Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
General%20Classification
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The Bio
Amal likes watching Japanese animation movies and Manga - her favourite is The Ancient Magus Bride
She is the eldest of 11 children, and has four brothers and six sisters.
Her dream is to meet with all of her friends online from around the world who supported her work throughout the years
Her favourite meal is pizza and stuffed vine leaves
She ams to improve her English and learn Japanese, which many animated programmes originate in
Six things you need to know about UAE Women’s Special Olympics football team
Several girls started playing football at age four
They describe sport as their passion
The girls don’t dwell on their condition
They just say they may need to work a little harder than others
When not in training, they play football with their brothers and sisters
The girls want to inspire others to join the UAE Special Olympics teams
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
