Resilience and innovation: How the Levant is unlocking start-up opportunities

The Levant region's start-up ecosystem is transforming, offering opportunities across Lebanon, Syria, Jordan, and Palestine, despite challenges like regulatory hurdles, infrastructure limitations, and access to capital, say industry experts.

Speaking at the Step Conference in Dubai on Thursday, Rasha Manna, Flat6Labs Mashreq's general manager, highlighted the region's long-standing entrepreneurial heritage and strong global connections.

"It's easy to forget that the Levant, and maybe Jordan specifically, is very much the epicentre of entrepreneurship in the region," Ms Manna said.

She also pointed out the role of historical trade networks and the diaspora in fostering innovation.

"We're very much historically a trade hub. The ports of Palestine, Syria, Lebanon, and Jordan always connected Africa, Asia, and Europe," Ms Manna said.

She added that the Levant's "turbulence and turmoil" history has led to an extensive diaspora network.

"They've gone and set up businesses elsewhere, but they've maintained their connections with their homeland, and so the diaspora played a big part in driving entrepreneurship and innovation in the region," she said.

Emerging sectors and growth areas

Other panelists also identified key sectors with high growth potential, particularly in the context of Syria's gradual return to the regional economy.

"One of the things that's both a challenge and an opportunity for the Levant is that three of those countries are very small markets, so we're from the get-go building for bigger markets. We're building for regional or global solutions," Ms Manna said.

Abdulsalam Haykal, chief executive of Majarra, also provided insights into Syria's evolving start-up ecosystem.

After a 13-year absence, he recently returned to Damascus and organised a tech conference, marking a step towards reintegration into the regional economy, he said.

"Syria is back," Mr Haykal told The National. "It won't be an easy ride, but we've moved from the threshold of the impossible to the possible."

Syria's strong STEM talent and its sizeable population make it a viable market for start-ups. However, he said that infrastructure issues, slow internet, and capital constraints due to sanctions remain significant barriers.

Venture capital for Syria

Mr Haykal believes the traditional venture capital model is unsuited for Syria. "VC works on betting on winners – it's a filtration system. But in Syria, what we need is long-term asset development," he said.

Instead of relying on traditional VC structures, he suggested alternative funding mechanisms to bridge the gap between investors and entrepreneurs.

"The money is there, and the opportunities are there," he said. "What we need to do is unlock value by connecting investors with promising businesses in Syria despite regulatory challenges."

The role of diaspora and global networks

The Levant's large diaspora, particularly in Lebanon and Palestine, is crucial in funding and fostering innovation. She said that many founders who have established businesses abroad remain connected to their home countries, reinvesting in local talent and supporting new ventures.

"There are country-specific challenges, but wherever Levantine entrepreneurs go, they leave a big impact," Ms Manna said. "We are resilient, and we find ways to adapt to uncertainty."

More than 8,000 guests and over 200 speakers attended the 13th Step Conference at Dubai internet City. The annual event, which has been held in Dubai, Riyadh, and San Francisco, has helped raise more than $9.2 billion in funding for start-ups since its inception in 2012.