SC Ventures' Mohamed Fairooz On Why Resilience Is Becoming The Real Currency Of MENA Startups Today

As the MENA startup ecosystem moves through a period defined by geopolitical tension and tighter global capital flows, a noticeable shift is taking hold. The conversation is no longer centered on how fast startups can scale, but on how well they can endure. Growth, while still essential, is being reframed through the lens of discipline, durability, and long-term viability. 

As entrepreneurs in the MENA thus recalibrate toward resilience and stronger fundamentals, Inc. Arabia spoke to Mohamed Fairooz, the Middle East lead for SC Ventures, the venture-building arm of British multinational bank Standard Chartered, to unpack how this shift is reshaping the region’s startup playbook, and why it could ultimately strengthen its global competitiveness. 

“At SC Ventures, we have always taken a long-term, thesis-led approach, but the current environment has reinforced the importance of building with stronger operational discipline from the start," Fairooz said. "Growth still matters, but it has to be disciplined growth: rooted in real customer demand, strong problem-solution fit, credible monetization, and sound unit economics. Governance, regulatory readiness, and execution discipline are no longer parallel tracks; they are central to how ventures earn the right to scale."

Such an approach, Fairooz added, is especially pertinent to the way SC Ventures operates and how it supports the entrepreneurs that come under its umbella. "As a venture builder, our role goes beyond capital," he explained. "It is about helping ventures build the resilience to grow sustainably through the right strategic partners, governance structures, market access, and institutional readiness. This is what truly differentiates us as we build, operate, co-create, and invest in ventures.” 

Fairooz also revealed that the paradigm shift in the market is also raising the bar for what investors expect to see early on, particularly in sectors where oversight and operational clarity are critical. However, Fairooz pointed out that at SC Ventures, governance, compliance, and risk management were always an integral part and core signals of quality from day one. "For early-stage companies, especially those operating in financial services, digital infrastructure, and other regulated sectors, institutional investors increasingly expect a stronger operating backbone much earlier in the journey," he said. "That means clearer key performance indicators (KPIs), tighter financial controls, stronger reporting discipline, and more active board engagement from the outset."

What is emerging, then, is a market that is rewarding a different kind of strength—an approach that SC Ventures has long baked into its model."In this environment, resilience itself has become part of valuation," Fairooz said. "Investors are not only backing growth potential, but they are also backing the founders and operating models most capable of withstanding volatility, navigating regulation, and building with discipline over time. Our regional ventures were able to demonstrate it, given solid liquidity backing, foundational support, and institutional-grade processes.” 

As valuation frameworks reset, so too is capital allocation, with Fairooz noting that investors in the region are starting to take a more measured and selective approach in that regard. “We are seeing a clear reset from momentum-led investing to fundamentals-led investing," he said. "Valuations are becoming more grounded in execution, quality of revenue, capital efficiency, and the overall resilience of the business model. As a result, deal structures are becoming more selective. There is greater focus on milestones, downside protection, governance rights, and a clearer path to value creation rather than simply paying for future promise. Timelines are also lengthening. Investors are taking more time on diligence and being more deliberate in capital deployment. In practical terms, founders are being asked to prove not just growth, but the durability and quality of that growth.” 

For Fairooz, however, this tightening of expectations ultimately points to a more constructive trajectory for the region's business landscape. “In the long term, I believe this shift is healthy for the MENA ecosystem," he said. "It moves the market away from short-term noise and toward stronger company building. Globally competitive ecosystems are not defined only by speed of growth. They are defined by their ability to produce ventures that can scale credibly, operate responsibly, and attract long-duration institutional capital. That is where resilience becomes a strategic advantage. For the Middle East, this is important as the region still has significant structural opportunity across financial services, SME enablement, artificial intelligence (AI), and digital assets. If founders and investors respond well to this moment, the ecosystem can emerge stronger, with a reputation for building more durable and institutionally credible businesses.” 

For entrepreneurs then, the takeaway is clear: building a company today requires more focus and discipline. “Founders need to build for endurance, not just acceleration," Fairooz said. "That starts with being very clear on the problem they are solving, who will pay for it, and why the solution will remain relevant through different market cycles. Sustainable growth today comes from discipline: tighter cash management, more realistic valuation expectations, earlier investment in governance and compliance, and a sharper focus on monetization and customer retention. In the MENA specifically, success also requires localization, regulatory awareness, and the ability to build partnerships that convert innovation into real distribution and trust. The opportunity in this region remains significant. But founders should choose their investors carefully. The right partner is not just a source of capital, it is a partner that can support the business through cycles, open doors, and help turn early traction into long-term resilience.” 

Pictured in the lead image is Mohamed Fairooz, Middle East lead at SC Ventures. Image courtesy SC Ventures.