Unlocking the path to solving environmental challenges by Wamda Research Lab and GE Download the full report from: http://www.wamda.com/memakersge/2016/10/cleantech-startups-mena-face-challenges-remain-resilient-report

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2. The MENA region faces massive environmental
challenges in energy, water, agriculture and waste
Waste
Agriculture
Water
Energy
By 2050, MENA's demand for energy will increase by 114%1 despite an estimated
28 million people in the region that currently lack access to reliable electricity.2
Already, 15 of the top 25 water stressed countries in the world are in MENA.3 By
2050, per capita water availability will be cut in half in the region.4
MENA is one of the least secure regions in the world for access to food5 and the
UNFAO suggests increasing R&D to eliminate inefficient agricultural practices.6
By 2025, the region’s waste production will increase from 63 to 135 million tons
per annum, outpacing comparable economies in South Asia and Africa.7
1. World Energy Council, World Energy Scenarios: Composing energy futures to 2050, World Energy Council Regency House, 2013.
2. World Bank, Middle East & North Africa, Energy in MENA Background
3. Luo, T., R. Young, P. Reig. Aqueduct Projected Water Stress Country Rankings.World Resources Institute. 2015
4. World Bank Development Indicators Database, Resources Overview- Water Scarcity, World Bank, 2007.
5. Center for International and Regional Studies. Food Security and Food Sovereignty in the Middle East. Georgetown University School of Foreign Service in Qatar, 2012.
6. Koppeser, Adam. “Food security an ‘enormous challenge’ for MENA countries: FAO”. Egypt Daily News, 2014.
7. World Bank, Urban Development Series- Knowledge Papers ch.3, Waste Generation.

3. Several cleantech startups are addressing these
challenges
Agriculture Waste
WaterEnergy
Generation StorageEfficiency

4. Egypt is the most active MENA country in terms of
cleantech startup activity, followed by Jordan
Distribution of MENA’s cleantech startups by country
9%
33%
7%
7%
1%
20%
9%
2%
9%Morocco
Algeria
Tunisia
Egypt
Palestine
Lebanon
Saudi Arabia
Yemen
Oman
UAE
Qatar
Kuwait
Iraq
Syria
Jordan
Bahrain

5. Some notable cleantech success stories are emerging
Saphon Energy
(2012, Tunisia)
NOMADD Desert
Solar Solutions
(2013, Saudi Arabia)
SatchNet Electronic
Systems (2003,
Jordan)
 Saphon Energy offers a wind energy technology called the Saphonian Zero-
Blade, designed to convert the kinetic force of the wind into electrical
power
 After establishing a corporate partnership with Microsoft, the company is
now entering the commercial manufacturing stage of its development with a
patent pending in over 70 countries
 Satchnet Electronic Systems provides intelligent systems integration services
for energy optimization in infrastructure
 SatchNet’s projects include Jordan’s Queen Alia International Airport and
Abu Dhabi’s Sea Palace
 NOMADD stands for “No Water Mechanical Automated Dusting Device”- a
robotic machine used to clean solar panels in the desert. It was created at
the King Abdullah University for Science and Technology (KAUST)
 The NOMADD team had access to world-class laboratory facilities and spent
nearly five years researching and developing their solution to clean dust off
of photovoltaic panels

6. Numerous stakeholders provide critical support to
cleantech startups
Example of cleantech stakeholders in MENA
Egypt
Lebanon
Jordan
Oman
UAE

7. Small pool of investment
resources
Gaps in availability of
talent
Lack of specialized
mentors
Limited R&D resources
Limited cleantech
awareness
 Few entrepreneurs venture into cleantech
 Consumer buy-in for cleantech is minimal
 The market size for cleantech is reduced
 Entrepreneurs mostly use self-funding, awards, family & friends as seed
investment (43% of the startups interviewed in this study are self-funded
and fewer than 30% obtained VC or angel funding)
 Students rarely pursue specialized cleantech degrees
 Talent with R&D experience is scarce, which means recruiting from outside
MENA
 Aspiring cleantech entrepreneurs look outside MENA for role-models
 Entrepreneurs consider existing technologies instead of pursuing
“moonshot” innovation
Barriers to
Cleantech Startups
“Investors in the region, especially banks, can be risk averse and need collateral. We had to spend a lot of
time and effort into finding the right investor to help us scale” – Antoine Saab (Energy24 , Lebanon)
However, startups are facing multiple barriers which
hinder their efforts to scale

8. CIVIL
SOCIETY
ORGS.
UNIVERSITIES
CORPORATIONS
GOVERNMENT
MEDIA
TECHNICAL
MENTORS
PRE-
INCUBATORS
INVESTORS
INCUBATORS /
ACCELERATORS
FAB LABS AND
HACKERSPACES
R&D
CENTERS
BUSINESS PLAN
COMPETITIONS
Cleantech
Entrepreneurs
MENA’s cleantech ecosystem also suffers from several
gaps which exacerbate these barriers
Awareness of the need
for cleantech is not
widespread
University R&D findings
are often not accessible
to entrepreneurs
VC investors offering
patient capital are rare
Investment in R&D is
limited; number of green
patents is low
Corporate-startup
partnerships are rare
Only two cleantech pre-
incubators currently
operate in MENA
Energy prices are not on
par with international
standards
There are no specialized
cleantech incubators
Finding experienced
technical mentors is
difficult

9. In addition, MENA countries have belatedly
acknowledged the urgency of the problem
0%
25%
50%
75%
100%
World MENA
Fossil Fuels Nuclear Renewables
Forecast: Additions to Power Capacity until 20209
World vs MENA Region
1.The World Bank: World Development Indicators, Electricity production, sources, and access
2. Philibert, Cédric. “Renewables in the MENA region”. Renewable Energy Division, International Energy Agency, December 2015.
Percentage of electricity production from renewable
sources out of total slectricity production8
0% 100%
1%
59%
39%
59%
58%
39%
25%
15%22%
17%
8%
12%
7%
9%
15%
2%

10. Improve investment
resources
Ensure availability of
talent
Provide specialized
mentors
Expand R&D resources
Increase cleantech
awareness
 Implement progressive policies and a favorable regulatory environment for
startups
 Offer environmental studies as a cross cutting topic in universities’ curricula
 Host open community workshops focused on developing environmental awareness
 Offer public funding instruments that lower risk for private sector investments in
cleantech
 Create university-managed funds for faculty and students with ambitions to
commercialize cleantech solutions
 Develop curricula to combine disciplines such as mechanical and environmental
engineering degrees with fabrication and design courses
 Promote specialization in cleantech related fields to address the talent gap
 Host cleantech workshops for aspiring and early stage cleantech entrepreneurs
 Partner with experienced local, regional and international cleantech investors
and successful cleantech entrepreneurs to create a mentorship network
 Create capacity within universities to support R&D partnerships with incubators,
investors, and corporations that can facilitate commercialization
 Earmark a governmental budget for SME loans and research institutions that are
pursuing R&D for cleantech solutions
In the future, accelerating the growth of cleantech
startups will require action on several fronts
Possible Initiatives
“One of the big opportunities in MENA right now is for energy efficiency solutions that incorporate
information and communication technology” – Georg Eitelhuber, (NOMADD , Saudi Arabia)

11. Cleantech opportunity in focus: Saudi Arabia
The Kingdom has undertaken a series of initiatives to build its
cleantech industry:
– By 2030, Saudi Arabia will have more renewable energy
capacity than any other country in MENA (9.5 GW) and is aiming
to be a global renewables powerhouse
– The Saudi Government predicts to spend USD109Bn on solar
energy infrastructure by 2040
– Since 1945, Saudi Arabia has the largest installed desalinization
capacity in MENA and currently is building a utility scale solar
powered desalinization plant.
Startups should seek and be encouraged to contribute to Saudi
Arabia’s cleantech sector. For example, they can help mitigate the
Kingdom’s energy consumption challenges by targeting the energy
efficiency sectors (e.g., smart home energy management, industrial
internet)
1
2
3

12. Authors: William Altman and Jamil Wyne
Contributor: Edmond Gaspard, Ian Lever and Teeb Assaf
Acknowledgements: A large thanks is due to Habib Haddad, Elias Boustani, Rachel Williamson, Maya Rahal, and Lucy
Knight for their helpful feedback and peer review. Rania Rostom, and Kirsten Colombier, from GE also provided valuable
guidance and support.
The Wamda Research Lab is Wamda’s research program that produces studies on
entrepreneurship in the Middle East and North Africa (MENA) and seeks to foster
thought leadership in this field. Its agenda is to inform investors, policymakers, and
other stakeholders on the challenges faced by entrepreneurs in the MENA region and
the potential solutions for overcoming them. Visit us at research.wamda.com
GE is the world’s Digital Industrial Company, transforming industry with software-
defined machines and solutions that are connected, responsive and predictive. GE is
organized around a global exchange of knowledge, the "GE Store," through which each
business shares and accesses the same technology, markets, structure and intellect.
Each invention further fuels innovation and application across our industrial sectors.
With people, services, technology and scale, GE delivers better outcomes for customers
by speaking the language of industry. Experience more at ge.com/menat

13. The WRL would like to thank the following individuals for lending their time, insights and expertise to help us to better understand the
ecosystem surrounding cleantech entrepreneurship in MENA. Collectively, they represent a large body of important knowledge on how to
improve conditions for entrepreneurship in this field.
Acknowledgments
Abed Shamlawi
Abeer Jabaji
Adam Molyneux-Berry
Adam Pringle
Ahmed Huzayyin
Ahmed Moukhtar
Albert Solé
Amal Aboulhassan
Amine Chouaieb
Anas Abdullah
Antonie Saab
Anwar Majali
Asal Ibrahim
Ayah Alfawaris
Ayoub Abu-dayyeh
Aysha Abdel Moteleb
Charles Blaschke IV
Cyril Rollinde
Dimitris Drakopoulos
Dr. Fahad Abdulaziz Al-Sulaiman
Dr. Yasser Al-Saleh
El Mostafa Jamea
Elliot Gansner
Eman Hassan
Ennis Rimawi
Essam Maged
Fadi Quran
Farida Kamel
Firas Obeidat
Georg Eitelhuber
H.E. Khaled Irani
Hani Sewilam
Hanna Zaghloul
Hany Elkhodary
Hassine Labaied
Hossam El Zayat
Issa Azar
Jackie Kameel
Jihad Hammoucha
Kamal Hendi
Kaoutar Abbahaddou
Karim Amr
Khaled El Bahtity
Khaled Mouats
Lama El Hatow
Lamia Ben Dahmane
Louay Otba
Louise Sarant
Luke Hutchinson
Maher Oudira
Maher Yousef Maymoun
Mahmoud Galal
Mahmoud Shattel
Mariam Afifi
Marton Kocsev
Mahmoud Taher
Mohamed Elsherif
Mohammad T. Asfour
Mohammad Al-Azraq
Mokhtar Abulata
Mostafa Hemdan
Mustapha Lakhdari
Naji Chamieh
Omar Asfour
Omar Sati
Omnia ElSaadany
Osama Badr
Oualid Triki
Qais al-Khonji
Ralph Stephen
Robert E. Dressen
Ruba Al-Zu'bi
Şahin Çağlayan
Sean Miller
Sherif Kinawy
Shukri Halaby
Steve Hayley
Suha Shouqar
Tala Nassraween
Tarek Ahmed
Tomoo Machiba
Wael El-Nashar
Walid Nasr
Wissam Otaky
Yassine Ettayal
Yumna Madi
Yuritzi Acosta
Ziad Abichaker

14. • World Bank, Middle East & North Africa, Energy in MENA Background
• Luo, T., R. Young, P. Reig. Aqueduct Projected Water Stress Country Rankings.World Resources Institute. 2015.
• World Bank Development Indicators Database, Resources Overview- Water Scarcity, World Bank, 2007.
• Center for International and Regional Studies. Food Security and Food Sovereignty in the Middle East. Georgetown University School of
Foreign Service in Qatar, 2012.
• Koppeser, Adam. “Food security an ‘enormous challenge’ for MENA countries: FAO”. Egypt Daily News, 2014.
• World Bank, Urban Development Series- Knowledge Papers ch.3, Waste Generation.
• The World Bank: World Development Indicators, Electricity production, sources, and access
• Philibert, Cédric. “Renewables in the MENA region”. Renewable Energy Division, International Energy Agency, December 2015.
• Rihai Lily. MENA Renewables Status Report. REN21 Secretariat, 2013.
• Ayre, James. “Saudi Arabia Investing $109 Billion Into Solar Energy, Wants 1/3 Of Electricity From Solar By 2032”. Cleantechnica, 2012.
• Saudi Vision 2030 (http://vision2030.gov.sa/sites/default/files/report/Saudi_Vision2030_EN_0.pdf)
Sources

15. Albertin, Giorgia and Carlo Sdralevich, Randa Sab, Younes Zouhar. Subsidy Reform in the Middle East and North Africa: A Summary of Recent
Progress and Challenges Ahead, The International Monetary Fund, 2014.
Dichter, Sasha and Robert Katz, Harvey Koh, Ashish Karamchandani. “Closing the Pioneer Gap”, Stanford Social Innovation Review, 2013.
Ehst Michael, Building Competitive Green Industries: The Climate and Clean Technology Opportunity for Developing Countries. International
Bank for Reconstruction and Development/ World Bank Group, 2014.
Lahn, Glada and Paul Stevens. Burning Oil to Keep Cool The Hidden Energy Crisis in Saudi Arabia. Chatam House, 2011.
McCrone, Angus. Global Trends in Renewable Energy Investment 2015. FS-UNEP, 2015.
Pan, Alexander. Impact Investing: Strengthening the Ecosystem for Invention Based Entrepreneurship in Emerging Markets. Aspen Network of
Development Entrepreneurs, 2014.
Parad, Michele. The Global Cleantech Innovation Index 2014. Cleantech Group and WWF, 2014.
Rihai Lily. MENA Renewables Status Report. REN21 Secretariat, 2013.
The World Bank. Inclusive Green Growth the Pathway to Sustainable Development. 2012.
World Energy Council. World Energy Scenarios: Composing energy futures to 2050, World Energy Council Regency House, 2013.
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