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Imagine an entrepreneur on a quest to build a winning team in the uncharted landscape of Morocco. Enter Anouar El Haji, CEO of Veylinx, a scale-up that took on this very adventure. Though originally from Morocco, Anouar had no professional ties to the country. That is, until a twist of fate brought him to an event in Morocco. However, by coincidence, he found himself invited to an event, which unexpectedly opened his eyes to the untapped potential of the region. Impressed by the level of talent he encountered—tech-savvy, multilingual, and globally minded—Anouar saw the chance to build a strong, competitive team for his rapidly growing startup. In this interview, he shares key insights from his journey into Morocco’s emerging talent landscape.
Scene shifting is REAL
The entrepreneurial scene in the MENA region is buzzing with change. At the heart of this transformation are two key drivers: a wave of talented individuals eager to make their mark and the development of robust infrastructure capable of competing globally. As the region continues to give birth to more high-value companies and venture-backed startups, it’s becoming crystal clear that MENA is on its way to claiming a spot as a global hub for innovation and entrepreneurship. Let’s dive into the elements fueling this exciting shift.
1. Rise of Talented Individuals
One of the game-changers in the MENA region’s evolving startup scene is the abundance of talented and affordable talents. The region is home to a new generation of highly skilled professionals who are not only well-educated but also highly motivated to create impact-driven ventures. This talent pool includes:
- Highly Skilled Entrepreneurs: Many of the region’s founders have studied or worked abroad and are now returning with global expertise and a desire to innovate within the MENA context.
- Tech-Savvy Workforce: With the rise of tech education and bootcamps across the region, the availability of skilled software developers, data scientists, and digital marketers is growing rapidly.
- Experienced Executives: The success of previous ventures, such as Careem and Souq, has created a pool of experienced executives who understand the nuances of scaling startups and are now ready to build new ventures or join existing ones.
2. Infrastructure Development to Compete Globally
The infrastructure in the MENA region is also evolving to support a thriving entrepreneurial ecosystem. Several countries in the region, such as the UAE, Saudi Arabia, and Egypt, have been investing heavily in developing ecosystems that can support global-scale companies. Key developments include:
- Access to Capital: Venture capital and private equity investments are on the rise, providing startups with the necessary financial resources to scale. The increasing availability of seed funding, growth capital, and even Series A to C funding rounds means that startups in the MENA region can now grow without immediately seeking external markets.
- Regulatory Support and Business-Friendly Environments: Governments in the region are increasingly recognizing the value of startups and have implemented policies to foster innovation. For instance, Digital Morocco Strategy 2030 and the UAE’s various free zones provide tax incentives and easier business setup processes.
- Improved Digital Infrastructure: Enhanced digital infrastructure, such as the proliferation of 5G networks and improved internet penetration, is creating an enabling environment for tech-driven startups to thrive and reach new markets.
3. Emergence of High-Value Companies
The MENA region is seeing the rise of high-value companies that are gaining recognition for their innovation and business models. For example, Tamara, a fintech startup from Saudi Arabia, is often referred to as the “Klarna of the Middle East.” Tamara, which is Sharia-compliant, has gained substantial venture backing and focuses on regional markets from day one. These high-quality companies are proving that MENA startups are not only regional contenders but also potential global players.
4. Macro-Economic Factors and Competitive Advantage
The macroeconomic environment is also playing a crucial role in leveling the playing field for MENA startups. As global interest rates rise, the cost of capital has become more expensive worldwide. This scenario has resulted in MENA startups, which traditionally operate on leaner budgets, finding themselves on a more even footing with their Western counterparts.
- Higher Interest Rates Globally: With increased borrowing costs, startups worldwide are forced to focus more on sustainable growth rather than aggressive expansion. MENA startups, familiar with bootstrapping and capital efficiency, are finding themselves better positioned to compete.
- Equal Ground for Competition: As the dynamics shift, the competitive gap between startups in developed markets and those in the MENA region is narrowing. This environment means that the next Careem could potentially be a stand-alone startup, building its own empire rather than being acquired by a larger Western company.
5. Leveraging Regional Talent for Global Standards
This hunger for success and growth is not just limited to experience; it is also fueled by the challenges faced by startups in the Western world. Today, building a winning team in these regions is increasingly challenging due to the high costs of salaries and resources, which represent the highest expenses for a startup. Moreover, a growing environment of unproductivity and a laid-back attitude is affecting talent in these regions, leading many companies to look elsewhere for more driven and ambitious individuals.
From Anouar’s journey of building Veylinx, tapping into Morocco’s talent pool has shown that the MENA region is a goldmine for creating high-performing teams. In Morocco, Anouar discovered a wealth of talent—English-speaking professionals with a strong grasp of technology and software engineering. These talented individuals aren’t just great at the technical stuff; they also shine in client-facing roles, boasting communication skills that easily meet international standards.
By creating a subsidiary in Morocco and leveraging local Software engineers, data analysts, and sales, innovative ventures like Veylinx can operate with the same level of quality and competitiveness as their Western counterparts, but at a significantly reduced cost. This demonstrates a key advantage for startups in the MENA region: access to a driven, hungry talent pool eager to prove itself on the global stage.
Practical Steps for Building a winning Team
After recognizing the potential of Moroccan talent, Anouar El Haji decided to establish a presence for Veylinx in Morocco. Here’s a breakdown of how he built a a winning team for his scale-up:
1. Establishing the Subsidiary: The Administrative Process
A subsidiary creation comes first by handling all necessary paperwork, including registering a brand name, obtaining an accountant, and setting up the legal structure and managing the banking part.
The administrative work involved in Morocco was quite manual ” a lot of stamping ! still bearable and not that heavy of a process” Anouar said with a little smile. It required navigating local bureaucracy, which took around 2-3 months to complete, including the process of opening a bank account.
2. Secrets to Build a Long-Term, Quality Team
Staying in touch with the team regularly is key. Bringing the team together from time to time to foster a sense of belonging and maintain strong relationships. Currently, Veylinx has 11 employees spread across different cities in Morocco. Despite this geographical dispersion, they are united by a strong company culture.
3. Talent Acquisition Strategy: Highly Targeted and Selective
- Headhunting with Specific Keywords: For talent acquisition a headhunting approach was adopted, using precise keywords to find candidates that meet very specific criteria.
- Selective Hiring: Being highly selective ensures that only the best talent, who aligns with Veylinx goals and culture, are brought on board.
4. Maintaining Operational Efficiency
- Experienced Managers with Strong Individual Contribution: Anouar believes that in a startup, every manager should be a strong individual contributor. The return on investment (ROI) of every hire is crucial, particularly in the early stages. “A startup can’t afford having people who handle management role only ” he emphasizes
- No Need for Country Managers: He advises against having country managers as long as there is one unified company culture. This approach prevents silos and ensures cohesive operations across the board.
5. Creating New Products or Services
For launching new products or services, Anouar advocates setting up special teams focused on building new capabilities, setting apart the “Run” & “Build”. The latter aim for a good ROI from day one by focusing on offers that clients are willing to pay for immediately.
With a mix of highly skilled talent, strong infrastructure, high-value companies, and favorable macroeconomic conditions, the MENA region is on the cusp of a new era of growth. As unicorns continue to rise and successful exits become more frequent, it’s evident that the next wave of global companies could emerge from this dynamic region. Anwar El Haji’s journey with Veylinx showcases that building a successful team in the MENA region takes strategic planning, ongoing engagement, and a willingness to adapt and experiment. His approach offers a solid blueprint for other entrepreneurs looking to tap into the region’s expanding talent pool and take advantage of its business-friendly environment.
Discover the State of Funding in MENA – 2019 to 2023 : The white paper of this month is taking you through the ups and downs of MENA’s startup funding over the last 5 years. If you’re a startup founder, an investor or an ecosystem builder, this is your chance to learn from the past, spot the trends, and write your own success story.
Don’t miss out on knowing the history that could shape our future!
