A Russian group that scouts for start-ups is coming to Dubai in search of young companies that can add vibrancy to its entrepreneurial scene.
While international sanctions and lower oil prices are expected to contract the Russian economy this year, start-ups are viewed as an important asset to the country’s economy. Startup Sabantuy, in its fourth year, will be in Dubai for the first time in June to select budding businesses for its programme.
Turn8, one of Dubai’s leading business accelerators, and the Russian Business Council are Startup Sabantuy’s local partners.
On June 6, as part of the programme, investors and officials from a Russian IT park will be in Dubai to listen to pitches from local technology enthusiasts in mobile services and applications, cloud technologies, e-commerce, management and storage of data and gaming services. They will also scout for enterprises in Ankara, Turkey and Belgrade, Serbia, besides Russia for a final event on July 11 in Kazan. There will be 25 winning teams in total.
The winners is to receive a stipend of 100,000 roubles (Dh6,343) to participate in a month-long accelerator programme at the IT park in Naberezhnye Chelny – the largest city in Tatarstan – in exchange for 2 per cent equity.
The Russian Business Council in Dubai and Turn8 say winners would not thereby find themselves subject to sanctions, as those apply only to specified Russian companies and business leaders.
According to Igor Egorov, the council’s chairman, sectors in which Russian small businesses are growing include information technology, nanotechnology and renewable energy.
“The small business sector is yet to be well developed but it is on a good way to that,” he said.
Russia is heavily dependent on oil and gas and heavy industries, and the share of small and medium enterprises in Russian GDP is 20 to 25 per cent, according to a European Investment Bank report in 2013. The figure is “significantly lower” than in developed countries, and “incomparable” to developing ones, the report said.
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