The startup ecosystem and technological development never stands still, it is constantly evolving and transforming. To bring our audience the latest, most relevant data, the ER10 Media editorial team has gathered key figures in the new episode of the PRO ERTEN podcast - people who are driving digital progress in Central Asia and the MENA region. Our guests are:
- Kanış Tuleushin, First Vice Minister of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan;
- Zhanadil Taldybayev, CEO and founder of CodiPlay;
- Aslan Sultanov, co-founder and managing partner of White Hill Capital, founder of Al-Farabi Innovation Hub;
- Mohammed Alariefy, Assistant Deputy Minister at the Ministry of Communications and Information Technology of Saudi Arabia.
Together they discussed the key trends and stages of development of Kazakhstani startups, and explained why the MENA region has become so in demand.
MENA and Kazakhstan Unite
The MENA region, which includes the Maghreb and Middle East countries, is a promising partner for Kazakhstan. Specifically, the government is joining forces to develop and strengthen the startup ecosystem. Guests of PRO ERTEN #18 shared their thoughts on some of the initiatives.
Aslan Sultanov, co-founder and managing partner of White Hill Capital, established the Al-Farabi Innovation Hub in Saudi Arabia. Through this initiative, he supports startups and helps them scale.
“The goal of our venture fund is to support startups like CodiPlay - local champions that already have traction, sales, and a business presence in Kazakhstan, but now want to scale,” the speaker explained.
Sultanov noted that such startups do not have to expand on their own; his organization and the government, represented by the Ministry of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan (MЦРИАП РК), actively support them. For example, four Kazakhstani hubs have been opened in different parts of the world: Silkroad Innovation Hub (USA), Al-Farabi Innovation Hub (Saudi Arabia), Nomadiq Innovation Hub (Singapore), and Eurasian Startup Hub (UK). Sultanov himself is the founder of the hub in Saudi Arabia and helps Kazakhstani startups enter that market. He explained:
I head the Al-Farabi Innovation Hub. We locate champion startups in Kazakhstan, bring them to Saudi Arabia, and help them scale smoothly by providing support with legal issues, investments, and much more. In parallel, we also fund these startups. We are supported in all this by the Ministry of Communications of Saudi Arabia, which helped bring in the main ecosystem stakeholders, such as venture funds.
Mohammed Alariefy agreed with Sultanov’s statement that the two countries support each other in strengthening the region’s startup ecosystem. He noted that Saudi Arabia’s cooperation is driven by goals set forth by the government in the areas of technology and digitalization:
Technology is advancing rapidly, so Saudi Arabia has a clear vision of where we need to be by 2030 in this area. Knowing these goals, we understand that it’s impossible to achieve them by relying solely on local culture. We must collaborate with the rest of the world. Saudi Arabia is located at the heart of the East, which is a strategic position to become a hub for any companies in the MENA region - especially those that will help us achieve our plan. A year ago, I visited Kazakhstan for the first time and made many new friends and connections with the help of MЦРИАП. Since then, we’ve had face-to-face meetings with most of them. I believe that such connections represent a true greenfield opportunity for a market that shares similarities with our culture and user behavior. They’re essential for reaching our goals.
Kanysh Tuleushin, First Vice-Minister of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan, explained that cooperation with MENA opens up a wide range of opportunities for Kazakhstanis:
Right now, we’re building our own ecosystem, and it already contains all the key elements. Thanks to this ecosystem, we’ve been able to grow the number of strong startups - like CodiPlay - and other IT companies in Kazakhstan. But our market is small, and although Central Asia is actively developing, that market is also not very large. We at MЦРИАП believe that’s not an obstacle for our startups, and so we’re promoting them globally, motivating them to scale their businesses. That’s why we founded four tech hubs, one of which is located in Saudi Arabia. I think that was an excellent choice: Kazakhstan has a great relationship with Saudi Arabia.
Meanwhile, Zhanadil Taldybayev, CEO and founder of CodiPlay, shared why he decided to scale his startup into the MENA region:
When we enter a new country, we always look at how friendly this market is to our product and, in general, how open it is to a startup from Kazakhstan. Currently, CodiPlay is operating in 13 countries, including South Korea, Indonesia, and the MENA region. We felt that MENA shares many cultural touchpoints with us. Moreover, MENA countries, particularly Saudi Arabia, are focused on developing the IT industry.
Zhanadil added that you cannot overlook the impact of the Kazakhstani government’s investments in IT infrastructure development:
“For example, I really like the partnership between Kazakhstan, Saudi Arabia, and the hub because we got the most out of it. When we flew to MENA, we had the support of the Al-Farabi Innovation Hub and our government, and our partnership with MENA made it easier to ‘land’ in this new country. MENA is a very comfortable market for us, where schools are motivated to teach students digital skills. Saudi Arabia is rapidly boosting its IT education level and aims to become one of the world’s leading IT countries. I believe my startup, CodiPlay, can help Saudi Arabia achieve its goal.”
Launching a Kazakhstani Startup in Another Country
Aslan Sultanov spoke about how he assesses the potential of startups to scale and what criteria contribute to this process. To enter the Saudi Arabian market, you need to:
- Visit the region in person to understand the market and culture from within;
- Ideally have a complex company with a solid math and tech background;
- Focus on a specific project, like Zhanadil’s, targeting a well-defined pain point;
- Enter the market correctly;
- Have patience;
- Be deeply involved in your business.
And perhaps the key criterion is: Which problem do you want to solve in Saudi Arabia? Many startups solve pressing issues in their own markets, but those challenges may be different elsewhere. How do citizens of Saudi Arabia live now, and what can you offer to help them do something differently or better? - added Mohammed Alariefy.
Mohammed Alariefy also recommended asking yourself the following questions when entering a new market:
- What changes must I make?
- What customer problems can I solve?
He noted another important factor for entering the Saudi market: immersion in the ecosystem. You can learn more about the local market in PRO ERTEN #18. There, you’ll also find answers to these (and other) questions:
- How did Zhanadil Taldybayev adapt his product for the MENA market?
- How does MЦРИАП help Kazakhstani startups overcome challenges as they scale up?
- Government, startups, and venture funds: the secrets and nuances of synergy.
- How does the Al-Farabi Innovation Hub support our startups?
- What makes the CodiPlay startup appealing to the Saudi Arabian market?
- Which startup and global trends can we expect in the coming years?
- Could a unicorn startup emerge in Kazakhstan?
