How eWTPA is bridging emergent new markets and Chinese expertise

Over the past decade, technological advances have enabled new ways of communication, investment, e-commerce and fintech, etc. to revolutionize how we interact with each other. These trends affect global economic dynamics, with the focus shifting towards new markets rather than the traditional American and European powerhouses.

The future growth trends for companies and entrepreneurs are to connect the needs and opportunities and strengths of these new markets. eWTP Arabia Capital’s (eWTPA) broader vision to build a local digital ecosystem in the Middle East and North Africa (MENA) is driven by partnerships with market-leading Chinese companies and provides a gateway to establish their presence in the region.

As China has been a driver of the global economy over the past two decades or so, it has shifted from manufacturing to advanced services. The experiences from this trip provide a good reference for new markets. Meanwhile, these emerging markets also provide opportunities for Chinese and Southeast Asian companies to grow and expand overseas.

When we think of Middle Eastern markets, oil-rich resources come to mind. Since such renewable energy sources would eventually be depleted, they must develop new industries and transform the future, thus creating a gap that can be quickly filled by companies in China and Southeast Asia.

Rather than competition, these markets have the potential to complement each other and create new bonds that are mutually beneficial as they both understand the needs of emerging markets.

MENA markets recognize the importance of the venture sector in achieving higher economic goals. Government-led initiatives have therefore been a key driver of growth in the venture sector in the region, as evidenced by the development of start-up ecosystems.

Also read: China’s growing economic problems are a cautionary tale for Western markets

To effectively contribute to building a sustainable digital environment for MENA and facilitate the rapid development of the digital economy in the Saudi Arabia region, in line with its Vision 2030 program, which aims to achieve governmental operational excellence, enhance economic forces and improve living standards by accelerating the deployment of primary and digital infrastructure and stakeholder involvement.

A stumbling block in the way of strategic alliances between MENA and Southeast Asia is the lack of a platform that matches their needs and expectations. While MENA companies are unfamiliar with the investment landscape in China, a credible, direct bridge is lacking. Similarly, China and Southeast Asia can see the opportunities in MENA, but cannot find a suitable landing platform.

Filling the gap MENA market

An influential PE with strong connections in China as well as a proven track record in Saudi Arabia would serve to bridge the gap. eWTP Arabia Capital (eWTPA), a leading Saudi Arabia and China-based growth-stage venture fund with offices in Beijing and Riyadh, its core investment strategy is to transfer the latest technology and proven business models from China and Asia wider to fill a clear gap in its MENA target market.

eWTPA focuses on the digital infrastructure, core technology and platform, consumer and business services sectors. It is backed by industry gurus with close connections to leading global technology companies in Asia, particularly in China.

As the only Chinese fund firm established in Saudi Arabia and with on-site staff to gain valuable insights, it is uniquely positioned to build bridges between China and Saudi Arabia as well as other emerging markets such as the Middle East and North Africa. This also helps them solve problems in locating products and services.

Being a relatively young market player, it also offers plenty of flexibility in investment opportunities, from VC and private equity to even joint ventures, and it provides investment strategies to help companies break new ground.

eWTPA launched its first fund (Fund I) in 2019, which is backed by PIF (Saudi Arabia’s sovereign wealth fund, Public Investment Fund) and eWTP Capital (Alibaba Group and Ant Finance Group).

Also read: Building bridges between Chinese farmers and consumers with blockchain

Within a short period of time, this $400 million fund has already invested in 16 companies across digital infrastructure, core technology and platforms, and consumer and enterprise services, spanning enterprise services, cloud services, cybersecurity, fintech, cross-border supply chain, retail and consumer , e-commerce, logistics and digital entertainment and others, who will work together to build a unique digital ecosystem in the Middle East and North Africa (MENA) region.

13 of them already in operation, including co-investments with Ali Cloud and the STC group to build a Saudi Cloud Computing Company (SCCC) and J&T Express.

In February 2022, eWTPA also co-invested in YOU beauty products with over 40,000 outlets in Indonesia, Malaysia, Philippines and Thailand. Seeking funding to enhance its ability to tap into emerging markets, including MENA, DU also leveraged eWTPA’s expertise in supply chain, channel development and e-commerce to make progress in consolidating its position as an industry leader in Southeast Asia.

eWTPA seeks to create strategic partnerships rather than simply seek funding. As Singapore is the financial capital of SE Asia, the company is more than willing to make long-term plans and provide its expertise to companies in Singapore and surrounding countries.

Going forward, eWTPA is also looking for partnerships in the wider APAC and Southeast Asia regions to facilitate the growth of the digital ecosystem in the MENA region. The company will also launch a second fund to cover more grounds and allow more partnerships to participate in this unique force or change.

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