// TECH TRENDS //

The global chain is only as strong as its smallest link

Unlike multinational corporations, SMEs lack the diplomatic weight and capital buffers to absorb systemic shocks. For many, the tariff hike represents a sudden and unaffordable spike in operational costs. Inventory is being held at customs, shipping contracts are falling apart and planned US expansions are being scrapped.

One Tunis-based electronics exporter told us:“ We spent two years building a relationship with a US retail chain. One policy meeting in D. C. ended it in a day.”

Supply chains that once functioned on tight schedules and competitive pricing are now being re-routed, delayed or abandoned altogether. The result? A cascading failure of trust, contracts and continuity.

Funding freeze: A dangerous slowdown in the capital flow

MENA’ s SME funding scene had been slowly gaining ground since the pandemic, with growthstage start-ups finally seeing interest from regional venture capital and sovereign wealth funds. That momentum is now stalling.

Private equity firms are holding off on regional deals. Angel investors are prioritising lower-risk geographies. Even government-backed initiatives

are shifting their focus toward internal market stabilisation rather than outbound trade support.

The consequence is chilling: businesses poised for growth are now reverting to survival mode. Hiring plans are suspended. New product development is paused. And founders are once again being forced to bootstrap through another global crisis they didn’ t cause.

Turning the tide: How SMEs are fighting back

But here’ s where the narrative gets interesting. Far from folding under pressure, many MENA SMEs are pivoting with agility that multinationals can only envy.

First, we’ re seeing a clear pivot in trade orientation – from West to East. With the US looking increasingly unreliable as a trade partner, companies are now exploring high-growth markets in Southeast Asia, Sub-Saharan Africa and Latin America. These new corridors – tarifffree and growth-hungry – could reshape the next decade of MENA trade strategy.

Second, Digital Transformation is no longer a buzzword; it’ s a survival tool. E-commerce

UNLIKE MULTINATIONAL CORPORATIONS, SMES LACK THE DIPLOMATIC WEIGHT AND CAPITAL BUFFERS TO ABSORB SYSTEMIC SHOCKS.

Intelligent SME. tech

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