7 Ways Middle East Unicorns Found Product-Market Fit

Achieving product-market fit is a critical milestone in the product development process and in your career in product management, especially in the diverse and rapidly evolving markets of the Middle East.

For the product manager role and project managers alike, understanding the unique challenges and opportunities in this region is key to driving business success. Dubai, as a leading hub for innovation and startups, has produced several unicorns—startups valued at over $1 billion—that have excelled by finding their niche.

This article delves into the product strategy and product roadmap strategies that these unicorns used to achieve market fit, the soft skills needed for junior product managers, as well as offering valuable insights for those looking to succeed in product management roles.

1. Understanding the Unique Middle East Market

The Middle East presents a complex competitive landscape, with diverse cultures, languages, and economic conditions that require a tailored approach. For successful product managers, understanding this market’s intricacies is a core responsibility.

Careem, for example, didn’t merely replicate the ride-hailing model of global competitors. Instead, it adapted its product vision to meet the specific transportation needs of Middle Eastern cities like Dubai and Riyadh. By including features such as cash payments, which align with local preferences, and building a localized user experience, Careem successfully navigated the competitive analysis to become a market leader.

2. Identifying Target Audience in a Fragmented Market

In a fragmented market like the Middle East, identifying and segmenting the target audience is essential. This process often involves detailed market analysis and customer feedback, which are critical components of any effective product strategy.

Souq.com (now Amazon Middle East) provides a compelling example. The company successfully segmented its market based on customer expectations and purchasing behaviors across different Middle Eastern countries. By tailoring its product lines and marketing strategies to these segments, Souq.com was able to dominate the e-commerce space, setting a benchmark for other tech companies in the region.

3. Adapting Products to Local Needs

Localization is crucial for any product aiming to succeed in the Middle East. This goes beyond translation; it involves adapting the product to meet local cultural norms and user stories.

Talabat, the region’s leading food delivery platform, demonstrated this by customizing its app to reflect the dining habits and preferences of different Middle Eastern countries. Whether it was accommodating the specific needs of Ramadan or offering a variety of local cuisine options, Talabat’s product development cycle focused on creating a user experience that resonated with local users, which was key to its market success.

4. Leveraging Partnerships for Market Entry

Strategic partnerships are often a key role in entering and scaling within Middle Eastern markets. For product teams and development teams, these alliances can provide critical insights and resources.

Noon, the e-commerce platform, partnered with regional businesses and government entities to establish a robust presence in the Middle East. These partnerships not only facilitated market entry but also supported Noon in its product launch and product features , enabling it to compete effectively with global players like Amazon.

5. Iterative Testing and Feedback Loops

The product development process in the Middle East often requires a lean approach, with iterative testing and customer feedback loops being vital for refining product strategies. This approach helps in meeting business objectives and ensures that the product continues to align with user needs.

Anghami, the leading music streaming service in the Middle East, continuously gathered user feedback to fine-tune its platform. By responding to user preferences for local music genres and ensuring seamless streaming in areas with slower internet speeds, Anghami’s development of products was closely aligned with the market’s demands, driving its success.

6. Navigating Regulatory Landscapes

Compliance with local regulations is a competitive advantage in the Middle East, where legal frameworks can vary significantly across countries. Product managers and engineering teams need to be proactive in adapting products to meet these regulations while maintaining a competitive edge.

PayTabs, a payment solutions provider, successfully navigated these challenges by tailoring its product requirements to comply with the financial regulations of different Middle Eastern countries. This strategic planning not only ensured compliance but also built trust with local businesses, contributing to PayTabs’ market share and overall success.

7. Scaling Across Borders

Scaling a product across the Middle East requires a deep understanding of each market’s dynamics while maintaining a consistent product vision. For successful product managers, this involves refining product strategies and ensuring that the product team and development teams are aligned.

Careem once again serves as a prime example. After establishing a strong presence in the UAE, Careem expanded into other Middle Eastern countries by carefully adapting its services to local needs. This approach, coupled with a clear product roadmap, allowed Careem to scale rapidly across the region.

8. Lessons for Product Managers

Product managers aiming to succeed in the Middle East can learn valuable lessons from these unicorns:

• Understand the Market: A thorough understanding of the cultural, economic, and regulatory landscape is essential for effective competitive analysis, user testing and product decisions.
• Segment and Localize: Identifying target customer segments and localizing your product are key to meeting customer requirements and achieving business goals.
• Leverage Partnerships: Strategic alliances can provide critical resources and insights that are essential for successful product launches and scaling.
• Iterate and Adapt: A lean development process, with a focus on customer feedback and iterative testing, ensures that the product remains aligned with market needs keeping product launches and engineering teams focused.
• Navigate Regulations: Compliance with local regulations is not just a necessity but a strategic role that can enhance market success.

Now it’s your turn to bring a product to market

The success of Middle Eastern unicorns offers a roadmap for product managers and project managers alike, especially those based in Dubai or targeting the broader region. By understanding the unique challenges and opportunities of the Middle Eastern market, leveraging partnerships, and maintaining a strong product strategy, product managers can drive the success of their products and their careers.