The VoIP ban causes unnecessary challenge for startups, which is especially acute during their early stages where founders are bootstrapping and have limited cash, warns Bahoshy. “Skype, Whatsapp and other VoIP mechanisms have been used as catalysts globally to support entrepreneurs, connecting (them) with investors, clients, employees and service providers.” “Communication therefore is essential for the cost-effective operation of many startups across the region,” says Bahoshy. But many of these startups have their “boiler room” tech hubs offshore, with team members based in the likes of Egypt, Lebanon, Jordan, Pakistan and India, while their prospective clients and customers are often also located abroad. Philip Bahoshy, founder and chief executive officer of MAGNiTT, notes a growing trend of regional start-ups setting up their managerial headquarters in the UAE to benefit from the country’s strong corporate and consumer base. “It’s a cost that small businesses face, but small businesses elsewhere in the world don’t, so it puts you at a disadvantage,” he says. Whereas here it has to be done through a conventional landline or mobile call.”ĭillon makes on average five international calls a day, the cost of which can quickly mount up. “Conference calls with international providers or direct calls with anyone outside the country would normally be done over Skype or another service for free. “It’s a difficult restriction in the sense that it adds extra costs and bureaucracy to doing business here,” says Ian Dillon, co-founder of Dubai fintech firm NOW Money, which provides mobile, branchless, fee-free accounts in the Middle East. It is also at odds with the country’s huge investments to create a technological infrastructure on par with the world’s best, and entrepreneurs told Wamda of their frustrations.

The de-facto ban on the likes of Skype increases costs, reduces productivity, deters investors and hurts the competitiveness of UAE-based startups versus their foreign rivals. The challenges are huge and in the UAE, entrepreneurs face an extra difficulty: the unavailability of popular voice over internet protocol (VoIP) apps such as Skype, Facetime and WhatsApp calls. There are myriad worries, from finding investors and customers to forgoing a regular pay-cheque and standard hours. Launching a startup isn’t for the anxious or easily deterred.

Is skype free 2018