How to Grow Internationally: 7 Tips for MENA Startup Success

Expanding internationally into new markets is a complex endeavour. To succeed, businesses must navigate cultural nuances, language barriers, regional preferences of target markets, and local regulations.

A recent report by RWS underscores the importance of localisation with over four-fifths of consumers being less likely to purchase from brands that do not offer local language support. This is especially crucial in the MENA region, with its strategic geographic location, young demographic, and growing entrepreneurial spirit, the region presents a significant opportunity for global businesses. However, cultural nuances and language barriers can pose challenges. To effectively reach and engage MENA consumers, businesses must prioritise localisation efforts, including language translation, cultural adaptation, and local marketing strategies.

Vera Modenova, COO of Flowwow, a gifting marketplace operating in over 30 countries, shares her insights on how to help businesses effectively localise their products and services, ensuring a seamless experience for local consumers.

1. Identify Bottlenecks and Key Learnings

Effective localisation requires a deep understanding of cultural nuances, from local customs and preferences to specific requirements such as country-specific phone number formats, email address conventions, and address specifications. By mapping out the customer journey, you can identify potential cultural pitfalls and tailor your approach accordingly.

Careem, a leading ride-hailing service in the Middle East, successfully navigated cultural nuances by offering services tailored to local preferences. They introduced features like female-only rides, which addressed the specific needs of women in the region. This approach allowed them to rapidly expand their business.

2. Prioritise Accurate Translations

understand the cultural nuances of your target market. Partner with local translators who can adapt your content to resonate with local customs and preferences.

Translation is just the first step. To truly connect with your audience, you need to ensure that your content is culturally appropriate, resonates with the target audience, and effectively conveys your brand’s message. Partner with local translators who understand the target market deeply. It’s also always better to have your content reviewed by multiple translators.

Airbnb’s expansion into the Middle East and North Africa is a prime example of effective localisation. By launching their Arabic platform, together with iOS and Android apps, and tailoring it to local customs and preferences, Airbnb has experienced significant growth, with a 63% increase in visitors in just one year.

3. Adapt Payment Systems

Studies show that in the MENA region, up to 70% of potential online sales are lost due to various factors, including complex payment methods and credit card rejections. By understanding and addressing these pain points, businesses can significantly improve their conversion rates and customer satisfaction.

First, offer diverse payment methods that MENA customers trust and love. Provide an ability to make transactions through major credit cards, local debit cards (mada, KNET, Benefit, NAPs – QPay, Fawry & Meeza), mobile wallets (Apple Pay, Google Pay, Careem Pay, STC Pay), and even cash-on-delivery.

4. Develop a Tailored Pricing Strategy

To set optimal prices, it’s crucial to deeply understand your target market. By conducting thorough market research, you can gain valuable insights into consumer behaviour, income levels, and competitive pricing. This knowledge will help you avoid pricing your products or services too high or too low.

When setting prices, consider these two common strategies:

Dumping: Offer lower prices to attract new customers and gain market share. This approach is often used by taxi services to entice first-time users.
Differentiation: Position your products or services as high-quality and exclusive, justifying a higher price point.

5. Rethink Product Categories

Put yourself in your customers’ shoes. By understanding their needs and preferences, you can customise your product offerings to meet their specific requirements.

For instance, Kitopi, a food delivery solution, successfully tailored its menu offerings to cater to different regional tastes and preferences. By eliminating pork products and incorporating halal options, Kitopi was able to expand its reach in the Middle East.

Having observed a significant demand for roses in the UAE, particularly red roses, we decided to give our rose selection a boost. As a result, we have seen a 20% increase in sales.

6. Overcoming Legal and Regulatory Challenges

One of the biggest hurdles to international expansion is navigating the intricate web of legal and regulatory requirements. To ensure compliance and mitigate risks, businesses must thoroughly research and understand the specific laws and regulations of each target market, including compliance with data privacy regulations, consumer protection laws, and industry-specific regulations.

In the MENA region, the increasing extraterritorial application of the GDPR has prompted businesses to prioritise data protection compliance. Penalties for non-compliance can be significant, ranging up to EUR 20 million or 4% of global annual turnover. This has led many MENA-based companies, particularly tech-enabled businesses handling large volumes of personal data, to invest in robust data protection measures.

7. Keep Localisation Going

Localisation is an ongoing process, not a one-time event. As markets evolve and consumer preferences shift, your localised content must adapt to remain relevant. Regularly review and update your localised content to ensure it aligns with the latest trends and cultural nuances.

To maintain the effectiveness of your localization efforts, consider these key strategies:

Keep up-to-date with cultural trends, language changes, and regulatory updates;
Track key metrics such as website traffic, conversion rates, and customer satisfaction to measure the impact of your localization efforts;
Continuously refine your localization strategy based on data-driven insights and customer feedback.

Before embarking on a localisation journey, businesses must ensure that their product-market fit is strong to justify the significant investment in resources and time. By embracing a continuous localisation approach, businesses can build stronger brand relationships, increase market share, and drive long-term growth.

Vera Modenova

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