Gulf Capital Steps Up Investments in Technology and Ecommerce in the GCC

Gulf Capital Steps Up Investments in Technology and Ecommerce in the GCC
April 04, 2017

Gulf Capital becomes one of largest investors in the digital economy in GCC, injecting over half a billion dirhams in regional internet and Ecommerce companies.

Gulf Capital, one of the largest and most active alternative investment firms in the Middle East, today announced that it has deployed over half a billion dirhams (over AED 500 million) to date in technology and ecommerce investments across the GCC, making it one of the largest technology investors in the region. The Firm has invested in the leading regional online B2B hospitality platform, the largest Middle Eastern auction platform and the leading online sport-based products and supplements marketplace.

Addressing more than 6,000 delegates at Step Conference, the leading technology platform that connects tech startups and mid-sized companies with investors, Dr Karim El Solh, Chief Executive Officer of Gulf Capital, says: "The technology scene is rapidly evolving in the GCC, and we are seeing the rise of a number of regional players that are becoming market leaders on both the regional and global fronts. Gulf Capital is actively backing and investing in these market leaders and helping them graduate to the next level. We expect a number of success stories to emanate from the region, many represented here at this year’s Step Conference. We forecast a substantial increase in technology investments in the GCC and significant returns to be generated for the early backers of these technology companies."

Gulf Capital's first technology investment was in Destination of the World which has become one of the largest online accommodation wholesalers in the world, with footprints extending from North America to Asia Pacific. Gulf Capital has also invested in two e-commerce platforms, namely Sporter.com, the leading sport-based products and supplements marketplace and Emirates Auction, the largest auction site in the Middle East.

"The digital economy is having a transformational impact on our lives and economies, and ecommerce is at the heart of it. It is perhaps the top mega trend that will have a profound impact on every business in the GCC in the coming years. The region has historically been famous for its commerce traditions, linking East and West through the silk and spice trade routes. We are fortunate to have commerce in our DNA and today, with one the highest adoption rates of mobile and internet technology in the world, the GCC region is set to witness an explosion in ecommerce activities. This trend will undoubtedly generate attractive investment opportunities for regional and global investors."

According to Boston Consulting Group (BCG) the digital economy, which contributed US$2.3 trillion to GDP in the G-20 in 2010 and is estimated at more than US$4 trillion in 2016, is growing at 10% a year; significantly faster than the global economy as a whole. The growth in the digital economy is even higher in emerging markets: 15% to 25% per year. B2C ecommerce, in particular, is growing at higher rates in MENA and other emerging markets, compared to more mature ones. In MENA, B2C ecommerce grew at 20% in 2015, compared to 11% in the UK, 12% in Germany, 7.7% in France, 33.3% in China, 22% in Brazil and 12.5% in North America.

"Regional ecommerce is still small when compared to world averages, but this is set to change," Dr Karim El Solh adds. "Recent transactions like Amazon buying the leading regional online marketplace Souq.com demonstrate the huge potential global players see in this market. At the moment, the share of ecommerce in the GDP of the Middle East and North Africa region is at the bottom of the world list, with the eGDP representing 0.71%, against a global average of 3.11%, according to a research conducted by Ecommerce Foundation. So, however you look at it, the regional growth potential is huge," reasons Dr Karim El Solh.

The UAE, Saudi Arabia, Egypt, Jordan and Lebanon remain the leading regional hubs for tech startups and hence are attracting significant early stage and private equity investments. "Growth capital investors are closely looking at local technology firms which can disrupt industries, scale up and become leading regional and global players. Given that it is still early days, the prospects for regional ecommerce and technology companies are very promising."

STEP Conference is the largest tech startup event in MENA. Global and regional leaders and industry experts will be taking the stage at Dubai International Marine Club (DIMC) from April 5 to 7 to tackle the latest trending topics in technology, digital and entertainment industries. Delegates will be discussing all facets of the entrepreneurial ecosystem; from operations to technologies and investments.

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Fraud Alert

Fraud Alert - Important alert to Gulf Capital Investors,Shareholders, the Financial Services Community and the Public

Fraudsters are engaging in a fraudulent email and website scams whereby websites and communications are targeting members of the public and potential investors (victims) by fraudulently using the identity of legitimate members of Gulf Capital's Executive team or Gulf Capital's Board of Directors to solicit investments, fake job offers and other dealings, without authority, and for a malicious purpose. Neither Gulf Capital's Chief Executive Officer nor any members of its Board of Directors or other members of its Executive team have made any offers for investment partnership, offers of employment or other dealings through these channels and the names, and identities of such individuals are being used illegally and without their consent.

Gulf Capital and its management have taken and will continue to take legal action against anyone found misusing Gulf Capital's name or the names or identities of any members of the Board of Directors of Gulf Capital or Gulf Capital's Executive team illegally or without consent for whatever reason.

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We invite you to immediately contact fraud-detection@gulfcapital.com* if any of the following occur:

  1. You have received any unsolicited correspondence or investment advice or you think you have been contacted in relation to a possible scam (whether by telephone, email or courier) by sources fraudulently impersonating Gulf Capital's Board of Directors or any members of Gulf Capital's Executive team.
  2. You have received notice from anyone outside of Gulf Capital informing you or raising concern regarding the fact that they may have been contacted by any sources fraudulently impersonating Gulf Capital's Board of Directors or any members of Gulf Capital's Executive team.
  3. You have received any communications referencing any of Gulf Capital's Board of Directors that you consider are suspicious or which you are not sure how to respond to.
  4. You have any concerns about the authenticity of any website passing itself off as a website operated by Gulf Capital or referencing the names and identities of the Board of Directors of Gulf Capital or any of its Executive team without authority.
*Note: When forwarding suspicious e-mails to fraud-detection@gulfcapital.com:
  1. Do not modify the original subject line or contents enclosed, and do not include any personal or confidential information.
  2. Forward the full internet headers of any suspicious emails to fraud-detection@gulfcapital.com before deleting as this information willhelp Gulf Capital to track the true origin of the correspondence. The internet headers can be found through your e-mail system from within the e-mail. For example, in Microsoft Outlook, you can find the internet headers by opening the e-mail, then choosing "View" and "Options". Depending on the e-mail system that you use, the process for locating the internet headers will vary. We recommend you either copy and paste the internet header and message into a new e-mail or scan the e-mail and full headers and send as a PDF attachment to ensure it is received by fraud-detection@gulfcapital.com.

Protect Yourself

  1. We recommend that you avoid getting into a conversation with any fraudsters or revealingany personal or identifying information, but you should endeavor to record thepurported name of the person and organisation along with any other information they give you (e.g., telephone number, address etc.) and then forward all such information to fraud-detection@gulfcapital.com.
  2. You should obtain independent legal and financial and professional advice before handing over any funds or entering into any agreements in relation to such solicitations.
  3. We recommend that you not respond or open any attachments or links associated with any suspicious e-mails.
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