Author: Afreen Razak

Over the past few years, the idea of cryptocurrencies has propagated and seen a boom in use while gaining varied public favor and backing by several governments. Companies first hesitated due to its relative newness, but more and more are beginning to join the crypto bandwagon due to the advantages this method of payment produces.

As company setups begin to integrate cryptocurrency and the associated blockchain technology into their operations, an increasing number of benefits have been uncovered, making it a lucrative field for established companies and startups alike.

Stated below are some of the many benefits of using cryptocurrencies in your business operations:

1. New Customer Groups

The introduction of cryptocurrency has brought forth an entirely new group of customers who are loyal to the payment method. Companies that have integrated cryptocurrency blockchains have seen an increase in these customers, leading to a bigger customer base and increased sales, which is the goal for any organization.

Many early adopters of Bitcoin and Ether prefer to use these as payment methods thanks to their drastic appreciation over the course of this year, making their current purchases, technically, cheaper when compared to the fiat monetary value they purchased it at.

2. Introduction to the Digital Landscape

The use of cryptocurrencies is inadvertently an introduction to digital business. With the recent boom in online shopping due to the pandemic, many companies have expanded their business into the online sphere. SPC Free Zone provides amenities related to e-commerce and promotes the creation of new avenues for income, and opportunities for the business venture’s long-term success which is in alignment with what cryptocurrency seeks to achieve for businesses.

3. Competitive Advantage

Venturing into the world of cryptocurrencies earlier than your competitors can result in one of the biggest competitive advantages your company can have. By the time competitors catch up, your venture has already claimed the first-mover advantage and the benefits associated with it are yours to claim.

4. A Hedge Against Inflation

Trends in the market teach us that cash depreciates over time due to inflation, so idle liquid cash is in fact detrimental to the profitability of an organization. Cryptocurrency provides a capital investment opportunity for individuals and businesses alike to protect their profits against the economic forces of inflation and deflation in real-time.

5. Lower Transaction Costs

Transacting in cryptocurrencies is cheaper than banking transactions, making it a better alternative than credit or debit cards.

6. High Security and Fraud Reduction

Cryptocurrencies are well known for being one the most secure modes of payment as well as possessing low risks with regard to account breaches and frauds. A popular method exploited by fraudsters that call for chargebacks through the reversal of payments at banks is rendered completely useless with the use of cryptocurrencies, which does not allow for payment reversals.

7. No Barriers to Trade

Even with the advent of payment gateways allowing any legitimate business to process online transactions, the barrier to entry,  fees, processes, and restrictions in place can cause small businesses to lose out on certain markets or not be able to transact online at all. Now you can also get information about Sharjah trade license renewal online

Transacting with cryptocurrencies has little-to-no barriers to accepting and processing payments on a website. This means that your customers can transact virtually anywhere in the world with no hassle.

8. Instant Payments

One of the biggest benefits of cryptocurrency is its instant payment feature. Amounts are transacted freely and are instantly sent and received with no delays in payments. Almost all payment gateways hold the cash on your behalf and will charge a transfer fee whenever you want to collect it. It becomes much easier for newly formed companies that require payments to be immediate in order to facilitate operating costs.

9. Blockchain Benefits

Blockchain methods are increasingly, finding popularity across businesses and governments alike due to the high security it provides.

Blockchains are the underlying systems of cryptocurrency which is why it has gained popularity despite some of its risks. Breaching a blockchain is next to impossible and makes for an extremely secure encrypted network.

10. Accessibility

Cryptocurrency payments can be done virtually anywhere and on any smart-device, including your smartphone. Those that do not have access to other forms of payment find it easier to transact through cryptocurrencies for this very reason.

Traditional Currency vs Cryptocurrency

Both traditional currency and cryptocurrency have their different strengths and weaknesses, as well as different uses. There are a number of differences between traditional currency and cryptocurrencies.

Traditional money is widely acknowledged and utilized in everyday transactions, but cryptocurrencies are still relatively new and have not yet gained widespread acceptance as a form of payment.

Unlike cryptocurrencies, traditional currencies are supported by governments and central banks while cryptocurrencies lack this kind of support.

Traditional currency is subject to inflation and other economic factors, while cryptocurrency is designed to be deflationary and has a limited supply.

Impact of cryptocurrency on businesses

Here are some impacts of cryptocurrency on businesses:

1. Easier payment processing

cryptocurrency provides higher security and anonymity, faster processing, lower transaction costs, and the ability to accept payments from anywhere in the world.

2. More investment opportunities

Investments in Initial Coin Offerings (ICOs) allow small and large businesses to raise funds to grow their business by selling tokens. Investors in return benefit from additional liquidity, while the whole community benefits from the adoption of a new technology.

3. Improved security

what increases the security of cryptocurrencies is the fact that they’re traceable, and secure, with no third-party interference.

4. International transactions

with cryptocurrency, you can conduct transactions with customers in any place of the world without currency conversion or high banking fees.

Long-term future of cryptocurrency

It is difficult to predict the long-term future of cryptocurrency as it depends on many factors the changes in the global economy and regulatory frameworks.

Cryptocurrency is likely to see more integration and adoption as the potential benefits are growing more apparent to businesses and individuals alike. This will lead to more integration of cryptocurrency into various industries.

Governments and organizations will probably get more involved in Cryptocurrency. Many laws have already been put in place or are being reviewed to safeguard investors and make the market safer. These restrictions also make it simpler for governments to keep tabs on financial activities.

Why crypto education is necessary for crypto adoption

Blockchain technology, a decentralized and secure ledger that keeps track of transactions, is the foundation around which cryptocurrencies are based. Understanding the value and potential of cryptocurrencies requires a grasp of how the blockchain operates.

Users of cryptocurrencies must take responsibility for managing their own private keys and protecting their wallets. Without appropriate security procedures, users run the danger of losing their money to fraudsters or hackers. For secure and responsible use of cryptocurrency, education on security best practices is crucial.

Those who lack access to banking services or reside in nations with unstable economies might gain financial empowerment thanks to cryptocurrencies. People can have more influence over their financial lives by being educated about the ways that cryptocurrencies can be utilized to store and move wealth.

Frequently Asked Question

How do businesses benefit from cryptocurrency?

• Easier payment processing.
• More investment opportunities.
• Improved security.
• International transactions.
• No Barriers to Trade.
• High Security and Fraud Reduction.
• Introduction to the Digital Landscape.

How is a cryptocurrency used in UAE?

Some hotels, restaurants, and hospitals have started accepting cryptocurrency as a means of payment, as well as some government agencies, and for auctioning.

Does UAE allow cryptocurrency?

Although the Central Bank of UAE has not licensed cryptocurrencies as legal tenders, but there are no prohibitions against crypto assets and UAE citizens can own cryptocurrencies, and deposit and trade them.

Is crypto tax-free in UAE?

UAE currently does not impose any capital gains or personal income taxes

What is the impact of cryptocurrency on digital business?

Cryptocurrencies have created new ways of transactions and provided online trading new payment method options, and many major brands and payment processors have started accepting cryptocurrencies.

To conclude, cryptocurrencies are a new and innovative method to transact and have given way to a new demographic base of customers eager to use the platform and support businesses that enable them to do so. Great opportunities come with a few risks, but the benefits of using cryptocurrency outweigh its risks. Integrate your company with the crypto-blockchain process and reap the benefits that come your way!

Free Zones are best for your small business in UAE, it’s important to understand what a Free Zone is and the purpose they seek to serve.

What are Free Zones?

Free zones can broadly be defined as geographical areas within a country (in this case UAE), where commercial activities relating to goods, services, as well as commodities are traded with lax regulations and are dedicated to a particular industry or industries. Their main purpose is to support key industries and enable their development for the benefit of the entrepreneur and the country.

Currently there are close to 45 Free Zones in the UAE. They are focused on the strategic development of different sectors benefitting all small businesses that choose to have their business set up in a free zone.

With an understanding of Free Zones, the reasons stated below to starting a small business in these zones will make it all the more lucrative for start-ups and the like to begin their business journey in a chosen zone.

1. Ease of Financial Transactions

Financial transactions are made easy since currency regulations imposed on the transaction of foreign exchange do not apply to businesses in the UAE Free Zones. In the case of SPC Free Zone, this alongside the non-requirement of paid-up share capital makes it a lucrative option to small businesses and other startups that face a lack of capital.

2. Tax Benefits

Another big reason for choosing a free zone is the little to no taxation and other regulations imposed on the business. Free zones offer businesses the advantage of low corporate and income tax rates, alongside import and export duty exemptions, which is a feature that is solely exclusive to free zones.

3. Foreign Ownership

It is known that most businesses set up within the UAE are done so by expatriates from other countries. Free zones have recognized this and have consequently offered 100% foreign ownership, that means that the business set-up can be solely owned by the expat without the need for a local sponsor.

4. Licensing

Free zones provide the required licensing needed to conduct business with relative ease, thus making it a feasible and hassle-free process to start the business of your dreams. Starting a small business with SPC Free Zone comes with a multitude of options for licensing including an option to create a 10-year license, over 1,500 business license activities as well as the ability to have a dual license that benefits your business activities both in the mainland as well as the free zone.

5. Multitude of Aid

Whether it be recruitment of required labor or the setup of a corporate bank account, the services provided by free zones are vast and any issues faced by a business setup can be mitigated with the help of a free zone. SPC Free Zone houses everything an entrepreneur would need under one roof and has recently partnered with Saeed Center to help business owners find investors more easily.

Understanding of the Free zone along with the benefits that are provided to a small business are very crucial in the decision-making process related to the location of your new business. Opportunities like these should be capitalized upon and so a business setup in a free zone is the best business choice you could make in your entrepreneurial journey.

For millions it’s a long-held dream – throw off the restraints of your 9-5 and be your own boss. There is no upper limit to the jobs you can freelance in – from creative writing and marketing to personal training and business consultancy. In a modern working environment, having control over your hours and workload seems to be more attractive than ever and now with remote working becoming a norm everywhere – not having a traditional 9 to 5 job is more acceptable than ever. Taking the leap can seem daunting but with the right information and support, you too can make this happen. To be a freelancer in Abu Dhabi UAE, you’ll need a residency visa and a freelance work permit – which you can get from a Free Zone

Who can freelance?

Firstly, there are only two career paths that you’re permitted to freelance in – education and media-related sectors. Towards the 2020 the Abu Dhabi Department of Economic Development (ADDED) announced that UAE citizens, residents and non-residents can apply for freelance licenses in the UAE. The change aims to generate more job opportunities in the UAE and will expand the business sector in the capital. Previously, the licenses were distributed to UAE nationals only.

The Freelancer License allows businesses to tap into the skill and expertise in the local market and also offer workers with flexibility to work remotely from authorized locations. Applicants are not required to take office space and can apply for residency visas for themselves and their family.

To apply, applicants must ‘verify their relevant skills and if the freelance activity is their definite employment role. Permission from any employer is needed before getting a license.

What do you need?

To be a freelancer, you’ll need a residency visa and a work permit – which you can get from a Free Zone. The permit can cost up to AED 20,000 – and should be renewed yearly.

You’ll need a business plan, passport and visa. If you’re already under a parent or spouse visa, then you are not required to apply for a new visa – you can apply for a permit straight away, although you’ll need a no objection letter (NOC) from your sponsor. If not, you’ll have to undergo the typical process to obtain a visa for AED 3,250.

If you can’t face the rigmarole of going through the process alone, then there are also companies in the UAE to assist with the process. So, if you’re feeling eager and chomping at the bit to apply for your freelance visa, with more options available, there’s certainly no time like the present.

Here are our three tips before you start freelancing

As a freelancer you are every bit as appreciated as an agency. You are what you think you are, so make sure you value yourself which will assist you to ensure that your clients know your value. This belief needs to encompass your payment policy because cash flow is king for your business: always get 50 percent upfront, have 75 percent by midway and so on.

Ask yourself early on – do you want to create a lifestyle or a scalable business? Both of which may seem well-suited but it is absolutely vital to remember that making / saving money over the long term is not the only concern. Organizing in such a way that your business supports your personal wellbeing, happiness and growth without becoming a burden to you is way more crucial than it may seem at the beginning. This is also why it’s imperative to validate your business model with a professional as other perspectives can offer solutions to challenges and co-create with new ideas.

Getting funding to withstand your business is also an enormously important concern. This is a significant question because your cash flow should not hamper your vision. So, think practically and ask yourself if you can achieve a better result with funding or without.

Conclusion

Freelancing can be a profitable and gratifying path, but it’s not easy. Sure, being your own boss is great. You’re not accountable to anyone and you can work how you want, when you want. But that’s also the challenge – You need to be highly attentive, self-motivated and ambitious.

And you will have to wear many hats. Sure, the crux of your business will be your zone of expertise but you’re also likely to be the one person doing all required jobs. Since you can’t do all of it by yourself, you’ll need first-class networking and communication skills, to make sure you’re always liaising with the right people at the right time to get things through.

So, do you also have creativity inside you? Bored of following a 9-to-5 routine and want to be your own boss or a global expert in your field? What’s stopping you then? Confused to take your first step? Don’t worry. We would be delighted to assist with your business setup.

Our business experts will support you in getting the appropriate license and help you to be a global freelancer. If this sounds like you, then what are you waiting for? Discover the joys and freedoms of freelancing, and appreciate the dream of being your own boss. For more information, do contact us at 800 SPCFZ– we would be happy to help you in the process.

From 01/01/2020 onwards, entities within the scope of the rules are required to give in their economic substance declarations to their pertinent regulatory authority, and may be needed to meet an Economic Substance Test. In this article, you’ll explore the UAE Economic Substance Rules (ESR). And does it impact you?

The Regulations apply to UAE onshore and Free Zone companies, branches, partnerships, and other UAE business forms that run any of the following businesses

• Banking
• Insurance
• Investment fund management
• Lease-finance
• Headquarter
• Shipping
• Holding company
• Intellectual property
• Distribution and service center

A “substance over form” approach is to regulate whether a Licensee commences a pertinent activity and is in the scope of the laws. This means looking outside what is stated on its commercial license to the activities that are undertaken by the Licensee.

It is important to note that Free Zone companies are not exempted from the Regulations. However, licensees that are directly or indirectly at least 51% possessed by the Federal or an Emirate’s Government, or a UAE Government body or authority, are exempted.

The Regulations apply to financial years beginning on or from January 1, 2019.

Declarations must be given within 12 months from the relevant financial year’s ending. For Licensees with a financial year ending on 31/12/2019, a declaration must be made by 31/12/2020.

The Regulations apply regardless of whether the licensee is from a foreign multinational group. If one earns an income from a relevant activity outside of the UAE, they aren’t exempt from the regulations either. Income from a relevant activity for which the Licensee needs to validate economic substance in the UAE comprises all income, with income that is generated by the Licensee outside of the UAE.

Businesses vary in size and nature, and what is adequate and appropriate will depend on the nature and level of activities and the level of income earned by the Licensee.

The Regulations and guidance provided to date do not provide a “minimum” standard for what is considered acceptable. The regulatory authorities are likely to take a realistic approach when assessing whether a Licensee has met the Economic Substance Test, recognizing the type and level of activity of a Licensee, as it may differ during the tenure of a financial period and from year to year.

However, there are new exemption categories as mentioned below

• Investment funds
• Entities that are wholly owned by UAE residents and which are not part of a multinational enterprise group and which only carry out their activities in the UAE
• Entities that are a tax residents outside of the UAE
• Branches of foreign parent companies where the relevant income is subject to tax outside the UAE.

Most government-owned entities are no longer excused unless they come within one of the updated exemptions of the New ESR.

If you are a Licensee and wish to apply for the exemption you are required to provide evidence that your entity is suitable for that exemption.

Below are a few things you need to be mindful of before filing.

Separate notifications need not be filed by UAE companies

The New ESR identifies UAE branches of a UAE company that don’t have separate legal personalities from their parent or head office. Therefore, if you are a branch of a UAE parent entity and are registered in the UAE, you no longer need to file distinct notifications. All that’s required is a single notification concerning the Relevant Activities of your UAE parent company together with all your UAE branches.

Modified reporting requirements for UAE companies with non-UAE branches

If you are a UAE company that conducts a relevant activity only through a branch registered outside the UAE, your UAE company doesn’t need to report and validate economic substance in situations where the income made through the branch is taxed in the overseas jurisdiction where the branch is listed.

Hassle-free reporting requirements for foreign companies with UAE branches

If you are a foreign company with a branch office registered in the UAE, then you are not required to demonstrate economic substance under the New ESR, provided that the income earned by your branch’s activities, that would theoretically fall into a relevant activity category, is subject to tax in your overseas jurisdiction.

Increase of Penalties

The penalties under the New ESR have been amplified, including the administrative penalties for non-compliance, which are now between AED 20,000 and AED 50,000. Failure to meet the economic substance test of your business results in a penalty of AED 50,000. Suspension or non-renewal of your license are other penalties you may face.

What happens next?

It’s important to note that all Licensees (including exempted Licensees) are needed to file notifications on the new online portal once it’s available, regardless of whether they have already submitted notifications for the 2019 financial year under the old legislation.

Your next steps

If you have a UAE business – including entities registered in Free Zones and offshore entities – we recommend you re-assess whether you qualify as a Licensee or an exempted Licensee as soon as possible. Together with this, urgently reconsider if you’re carrying out an appropriate activity under the New ESR and new guidance. Doing so will allow you to make the appropriate compliance filings when the new filing portal becomes available.

Given that the end of the 12-month period following a Licensee’s 2019 financial year is forthcoming for many entities, we also recommend that you look beyond the first stage of notification filing. If your UAE entity qualifies as a Licensee, has conducted a relevant activity, and derived income from the same in the reporting period, it would be practical to start the preparation of the documents and information required to demonstrate how the economic substance test is met.

If any gaps are identified, it’s crucial for you to plan and implement a mitigation strategy to safeguard compliance and avoid severe consequences in the future.

Coworking spaces are in many ways, exactly like the typecast you’re probably picturing — free coffee, sofas for lazing, ping pong or foosball tables and a plethora of young people typing away furiously on their Macs. While comfort may be the first thing that comes to mind when you contemplate joining a coworking space, the real deal is under the hood.

Gone are the days when coworking was a niche perception, primarily associated with freelancers and shared desks. According to the latest data, demand for coworking spaces is now growing 10 to 15% per year across the Middle East & Asia-Pacific region. This substantial rise in popularity is partially powered by the rising number of start-ups that are joining coworking spaces. If you’re still unsure about the perks of shared workspace, here are 5 reasons why coworking spaces can help start-ups to thrive and flourish.

Flexibility

Start-ups often scuffle with finding a work environment that provides them the elasticity to scale their team. If you are a founder looking to upsurge your headcount within the next few months, committing to a two-year office lease is the last thing you want to do. This explains why a growing number of start-ups are shifting into coworking spaces.

By offering membership options that range from dedicated desks to private offices, coworking spaces offer the flexibility that so many start-ups need, particularly in the premature stages of growth.  For instance, a company with only two or three employees might originally consider hotdesking, before switching to a small office as the team expands.

Convenience

Another reason that start-ups are opting for coworking spaces is because they give you an alternative to the day-to-day formalities of renting an office space. What if the time and money that you spent on office managers or general maintenance could be directed towards quadrupling your business? By managing everything from electricity bills to facility management, coworking spaces give start-ups the chance to manage their limited resources tactfully, so that they can dedicate all their attention to small business matters.

Networking Opportunities

Since networking is an essential way for start-ups to shape a solid customer base, it makes sense to find a workspace that nurtures organic business connections. Coworking spaces are fundamentally designed to inspire networking and collaboration. For instance, it’s very easy for people to strike up a conversation in the pantry over a cup of coffee, or during a professional development workshop.

Coworking spaces also arrange regular networking events, which offer a good platform for start-ups to build on their business contacts and possibly gain new customers. This amplified visibility can only be an asset for start-ups – especially if they are relying on word-of-mouth marketing for their products and services.

With a coworking space you get access to a network of knowledgeable entrepreneurs. If you are a start-up founder in the early stages of company formation, it’s extremely helpful to connect with successful entrepreneurs, so you can tap into their knowledge. Some coworking spaces even offer mentorship programmes, and arrange frequent workshops or discussions with industry leaders.

Amenities & Services

The world’s best coworking communities fit their spaces with modern amenities and services designed to help start-ups scale. Membership at a good coworking community usually includes:

• Meeting Rooms: For conference calls and meetings with potential clients
• Break Spaces: Outdoor verandas, pool tables & lounges
• Office Stationery & other amenities: Office furniture, electric rise-fall desks, dry-erase walls
• Food & Beverages: Free coffee, fruit, basic appliances such as a fridge & a microwave

Since building management is responsible for maintenance, all of your services will be suitably combined into a single monthly invoice. Not only does this merge monthly bills, but it also streamlines expenses.

Work-life Balance

Recent surveys show that full-time workers from around the world scuffle to balance their personal and professional lives. With an insuperable pressure to scale, start-up founders, entrepreneurs, and innovators continue to express apprehensions around getting enough sleep or making time for their near and dear ones. Can the coworking model lessen some of this work-life balance anxiety? Absolutely!

Coworking tests members to stick to a recognized work schedule. Sure, there might be a few late nights on your path towards startup accomplishment, but at least you’re not working from a confined home office, distracted by chores or pets, right? With adequate opportunity to spread out and get work done, coworking is the perfect distraction-free environment where founders can separate their work from their home lives.

Conclusion:

Start-ups that go for coworking spaces often find that they provide an exclusive backing system that helps them improve their business. With all the aid provided by flexible working, it’s no wonder that more and more start-ups are moving away from the traditional office environment. With access to growth-oriented resources, like-minded entrepreneurs, and appropriate amenities, coworking communities remain to help start-ups grow and flourish. Data also shows that the number of coworking spaces is growing by 22% per annum in the region. Additionally, membership is flourishing at nearly 40 percent per year.

At SPC Free Zone, we provide business setup in Sharjah and coworking packages starting at AED 6,875 only. Get in touch with our experts today. Call us on 800 SPCFZ.

For the last 25 years, disruption has been the ultimate determination of companies spanning varied sectors, from steel to telecom to entertainment. Now – perhaps more than ever – disruption is a real and vital necessity for businesses that wish to flourish amidst the turmoil. While the pandemic has generated a lot of challenges, it has also created opportunities particularly in the technology & digital sector. Communities around the world have moved to remote working and homeschooling, while businesses across all industries have been forced to innovate and digitally transform on an unprecedented basis to ensure continuity.

As per the latest reports, The UAE city of Sharjah & Bahrain offers the best ecosystems in the Middle East for startups & company formation in the areas of financial technology (FinTech), education technology (EdTech) and digital media. According to policy advisory and research organization Startup Genome – these two locations are ranked in the top five fastest-growing activation phase startup ecosystems globally, meaning that founders can “build on local economic strengths and develop focused programs to accelerate ecosystem growth and develop pockets of success leading to sizable exits.

The Global Startup Ecosystem Report — which tracked more than 1.27 million companies from over 250 ecosystems — recognizes the support for startups offered by these two ecosystems in the wake of the coronavirus disease (COVID-19) pandemic.

Here’s a closer look at the top five sectors in which the Middle East is instituting innovative, world-leading standards.

Artificial Intelligence

In the wake of the fourth industrial revolution, governments, and businesses across the Middle East are beginning to comprehend the shift globally towards AI and advanced technologies. They are challenged with a choice between being a part of the technological disruption or being left behind. When we look at the economic impact for the region, being left behind is not an option. As per reports, the Middle East is expected to accrue 2% of the total global benefits of AI in 2030. This is equivalent to US$320 billion.

In absolute terms, the largest gains are expected to accrue in Saudi Arabia where AI is anticipated to contribute over US$135.2 billion in 2030 to the economy, equivalent to 12.4% of GDP. In relative terms, the UAE is projected to see the largest impact of close to 14% of 2030 GDP.

The UAE, Saudi Arabia, and Qatar, in particular, have established a strong commitment towards the development and implementation of AI technologies. Businesses in these parts of the region have been investing heavily in new technology, reinforced by governments as early consumers of the technology.

It’s vital also to note that whilst the volatility in oil prices is taking its toll on the economic prospects of the region, it is generating the need for governments to seek alternative sources of revenue and growth. The development of non-oil sectors through investment in AI technologies could advantageously position the region for years to come.

Digital Media

Digital is not a passing trend; it is a revolution that is happening right now and picking up speed every day. In the Middle East and around the world, digital technologies are disrupting every aspect of business, government, and individuals’ lives.

The digitization story of the Middle East has many highlights thus far. Indeed, the region is heavily devoted to the digital age—particularly among consumers. Data shows that in the United Arab Emirates, 70 to 80 percent of the population are carrying a supercomputer in their pocket, placing the country in the top ranks of global smartphone penetration. On this metric Bahrain, Qatar, and the United Arab Emirates score higher than the United States (100 percent vs 80 percent).

Social media usage is also extensive: The Middle East and North Africa (MENA) region is ranked second in the world by several daily YouTube video views at more than 310 million.

And the Middle East region is the fastest-growing consumer of videos on Facebook. Embedded video consumption is twice the global average. Given the demographics in the region (50 percent of the population is under the age of 24 ), the tech-native and savvy youth in the Middle East will only further enhance the digital adoption rate in the coming years. Beyond the proliferation of better feature phones and media consumption, increased mobile access and versatility of social media usage meannew ways to reach, inspire, and educate a new generation for the 21st century.

EdTech

For current and future generations of students of every age, the learning process will never be the same again. Education has been revolutionized and blended learning is here to stay. As educators move into a new normal of teaching, from remote learning to hybrid instruction, the trends are forcing the entire education ecosystem to reconsider the way we teach.

In MENA, 110 million school-aged children stayed at home this term because of school closures, according to UNICEF. The pandemic has led to a regional surge of education technology (EdTech) startups filling in the gap in place of traditional and workplace settings. While EdTech traditionally concentrated on providing tutoring, content, and school management support, there is now an opportunity for it to be fully integrated into school curriculums.

E-Sports

The pandemic has led to the cancellation of major sporting events from Wimbledon to the Olympic Games. In the UAE, the General Authority of Sports has announced the suspension of all activities across all sports including tournaments and competitions. Similarly, on 6 March, the Sports Ministry in KSA announced a suspension of public attendance at all sports events. Many sports fans have turned their attention to E-Sports, with every E-Sports league accelerating its ability to host online-only matches. Streaming structures were put in place almost overnight and major brands took notice of these changes and moved their advertising stock to this new space. While E-Sports were already on the radar of major sponsors, the swell in viewers and consumption of online content is likely to generate a lasting interest in this burgeoning ecosystem even after the COVID-19 pandemic is over.

FinTech

FinTech regulatory regimes started emerging in the Gulf region in 2017. Since then, the region has become a hotbed for FinTech activity and regulatory development, with several jurisdictions competing to establish themselves as the FinTech hub in the region,

Bahrain and the UAE have received the bulk of venture capital investment in the region and FinTech related policy and regulatory activity have spiked within the last two years. The three key factors driving the emergence of Bahrain and the UAE as FinTech hubs in the region: (1) an ecosystem favorable to new financial alternatives, (2) an ecosystem where the government is at the center of efforts to drive innovation as part of a larger remit, and (3) an ecosystem particularly interested in attracting international talent as a means of inspiring innovation domestically. Bahrain and the UAE have emerged as the leaders in the region for developing ecosystems supportive of FinTech development.

Conclusion

Pulling it all together, it is evident that digital penetration is high and continuing to grow across the Middle East region. While it may seem that everything about the COVID-19 outbreak is gloom and doom, there is always a silver lining in every cloud. As the outbreak is likely to last some time, the shift to remote working and homeschooling may lead to more everlasting changes once the crisis is over. We may choose to scale back on business travel if virtual meetings worked during the coronavirus crisis. These behavioral shifts will lead to cost-saving benefits for business setup and an already obvious positive impact on our environment.