Top 11 Business Opportunities to Explore in the Middle East

Quick Summary: If you are a startup, you should know that businesses have significant market potential in the Middle East. From rapid digitalization to a tech-enthusiast population, this region provides a chance for brands to attract a global audience. This blog will help you know all the business opportunities to explore in the Middle East.

The Middle East has captured the attention of many entrepreneurs due to its fast-growing economy that provides golden business opportunities. Countries like Egypt, Saudi Arabia, UAE, and Kuwait have seen a rapid growth of online businesses.

Food delivery apps, taxi apps, FinTech, handyman apps, and IT solutions are some of the best business ideas to explore in the Middle East. Before investing, you need to look at all the possible opportunities that can boost your brand.

Are you a startup wanting to invest in the top businesses but are confused about what is the most successful business in the Middle East? 

Keep reading this blog and discover the best startup ideas to explore in the Middle East.

3 Reasons to Start a Business in the Middle East

Are you still looking for business opportunities in the Middle East? It is a region that comes with several benefits for startups. Some of the major reasons why you should consider the Middle East as your startup destination include the following:

1. Rapidly Expanding Market

The Middle East has a growing population with increasing purchasing power. It provides excellent opportunities for startups to launch their business and acquire customers quickly. With about 600 Million people, its age structure is mostly young, making it an even better destination for entrepreneurs.

2. Digital Transformation

The digital transformation in the Middle East is expected to grow at 22.7% CAGR between 2022-2032. Everyone, from regional businesses to the government, is quickly adapting to digital transformation. It has further led to rising demand for IT services, software solutions, and digital infrastructure to facilitate the transition.

3. Tech-Savvy Population

Did you know that more than 28% of the Middle East population is aged between 15 and 29? The youth is tech-savvy and is keen to adapt to technology quickly. Hence, it creates a favorable environment for startups to launch their online businesses and get a hold of valuable customers.

Now let’s look at the best business ideas to explore in the Middle East.

11 Business Opportunities in the Middle East

What are the top business ideas? As an entrepreneur, you should be aware of all the good options to invest in. Look at the list of the top 11 business opportunities that startups can invest in the Middle East. 

1. Taxi Booking App

The taxi industry is seeing rapid growth as people depend more on these services due to their convenience and cost-effective solutions.

Major players like Uber, Lyft, and InDriver have acquired a significant market share. In Saudi Arabia, the revenue in the ride-hailing and taxi market is projected to reach US$2.17bn by 2027, with the number of users reaching 10.60m in the same year.

Hence, startups and small businesses have great opportunities to explore the online taxi industry, gaining excellent results.

👉 Check your complete guide to develop a taxi booking app: How to Develop a Taxi Booking App in 2023? (Complete Guide)

2. Food Delivery Apps

Another growing industry in the Middle East is online food delivery. The following image shows the growth of food delivery apps in Saudi Arabia. It is expected to reach $8.80 billion by 2028.

Food delivery apps like Talabat, Careem Now, and Noon Food are some of the significant names in the Middle East. Building apps like Talabat and Careen Now can boost your startup and help you achieve the desired results.

👉 Interested in building a food delivery app? Check out Top 10 Food Delivery App in UAE-Dubai (Middle East)

3. Grocery Delivery Apps

Another business opportunity in the Middle East for entrepreneurs is the grocery delivery industry. The graph below shows that the Middle East is one of the regions that have a significant share of the online grocery market.

 

Further, the Middle East is witnessing rapid urbanization and changing lifestyles, leading to an increased demand for technology and digital solutions. It is also home to a young and tech-savvy population with a high smartphone penetration rate. Therefore, startups in the Middle East should consider the idea of online grocery delivery apps.

👉 Want to build a grocery delivery app? Read the blog: How To Start An Online Grocery Delivery Business From Scratch In 2023?

4. Handyman App

Another popular idea for setting up a business in the Middle East is the handyman app. Did you know that the Middle East and Africa region is expected to be the fastest-growing market for handyman apps, with a CAGR of 14.2%?

With the rise in urbanization, people have less time to do their work. Hence, they hire professionals for it. The top three handyman services in the Middle East include home cleaning, electrical work, and plumbing. 

So, entrepreneurs wishing to enter the on-demand service market should consider the idea of handyman apps.

👉 Must check: How to Build a Handyman App in 2023?

5. Beauty and Salon App

Beauty and salon app is one of the leading on-demand delivery services globally. The Middle East is a region where both the population and the need for personal care and beauty services are expanding. It makes it a perfect market for apps related to salons and beauty. 

The Middle East and Africa beauty and personal care market is expected to acquire a revenue of $35.31 billion by 2032. The Middle East has a young, wealthy population and growing population, creating a sizable and expanding market for beauty and personal care services.

👉 Planning to launch your beauty and salon app? Must read: 10 Key Points To Start An On-Demand Beauty Business

6. Dog Walking App

Dog walking apps are the sixth most popular entrepreneurial opportunities in the Middle East. It’s harder for pet owners to find the time to give their dogs the required exercise as more people live in apartments or work in hectic conditions as cities grow. Dog walking apps provide a practical answer by connecting pet owners with qualified dog walkers who can look after the exercise and well-being of their four-legged pals. 

A major demand for dog walking services has emerged in the Middle East due to increased pet ownership and a rising understanding of the value of dog health and pleasure. Startups may meet the needs of pet owners, offer dependable and trustworthy pet care services, and profit from the booming pet sector in the area by investing in such apps.

7. Tourism

It is a well-known fact that countries like Dubai and Kuwait are attracting tourists from across the world. If the reports are to be believed, Middle East tourism is expected to reach a revenue of US$ 400.71 billion in 2032.

Rising internet penetration makes tourism a growing industry in the Middle East. The adoption rate of 5G in the Middle East & North Africa is expected to grow to 17% by 2025. It is further creating a larger market for online tourism businesses.

Hence, investing in online tourism businesses can be a profitable idea for startups.

8. eCommerce

eCommerce is another excellent business opportunity to explore in the Middle East. Its total market size is expected to reach $57 billion in 2026. The region is seeing a continuous rise in online sales compared to in-store sales.

Startups and small businesses that have an interest in investing in eCommerce platforms should consider countries in the Middle East to gain a firm hold on the industry. Higher consumer spending, lower competition, online shopper preferences, and cross-border eCommerce are reasons companies invest in it.

9. EdTech

EdTech is another Middle East market trend. The EdTech and smart classroom market in MEA is projected to grow to US$ 7,626.1 million by 2027. The reports prove that there is an upward growth in this industry in the coming years.

Investing in this sector will have several benefits, like lucrative market opportunities, early mover advantage, government support and partnership, diverse revenue streams, global reach, and social impact and branding. Therefore, EdTech can be a great idea for startups to launch their business.

10. FinTech

With the rise in the number of businesses in the Middle East, there is an increasing need for financial technology solutions. In 2022, UAE was the most active FinTech country in the Middle East, with a share of 43% of total transactions. A number of startups in the Middle East have already invested in this sector.

Setting up a FinTech business in this region will provide an opportunity to connect with the global audience. About 3.8 billion people worldwide have adopted digital payment services, which will rise to 5 billion by 2025.

Seeing the rising demand for digital payment software, it can be said that FinTech has excellent market potential in the Middle East, and startups can benefit from this investment.

11. IT solutions

The technology sector in the Middle East is no doubt booming at a high rate. Digital transformation, tech-savvy people, global tech hubs, and rising internet penetration are a few reasons for the increasing demand for the IT sector in the Middle East. The image below shows that the Middle East’s IT sector has seen upward growth since 2019.

UAE is the leading tech hub in the Middle East, followed by Saudi Arabia, Qatar, Kuwait, and Egypt. The demand for digitalization is expected to grow in the coming years, and startups that invest in this sector can expect profits and better ROI.

Invest in On-Demand Service Apps with ValueAppz

Do you like the idea of taxi apps, food delivery and handyman apps? As a business just planning to launch in the Middle East market, you need help from a team that can help you right from the start.

ValueAppz is a leading on-demand delivery app development company that has helped various startups across the globe. Our services will help you better understand the app concept idea and build a product that brings the desired results to your business.

Get in touch with us now, and let’s get your business started in the Middle East.

Frequently Asked Questions:

Q1. What is the most profitable business in the Middle East?

A few profitable businesses in the Middle East are taxi booking apps, food delivery apps, EdTech, IT solutions, and FinTech.

Q2. What are the opportunities for business in Dubai?

IT solutions, manufacturing businesses, eCommerce, tourism, and on-demand services are some of the best opportunities for companies in Dubai.

Q3. Which is the fastest-growing market in the Middle East?

Abu Dhabi is one of the fastest-growing markets in the Middle East. It had a GDP growth rate of 9.3% in 2022.

Q4. How to start a business in the Middle East?

To start a business, you should first research the idea and look for its potential in the market. Then, develop a business plan, collect the funding, and partner with an app development company to get started.

Q5. Why is the Middle East good for business?

Due to its quickly expanding economy, market, and rising need for cutting-edge solutions across numerous industries, the Middle East is advantageous for business.