Would you base your startup within the Middle East when your web-based product is global and tackling a global audience?

I think that when you have a purely online service then your location doesn't matter, it's about how you promote it and reach your audience. Your marketing and social media strategy is the key at that point.

I truly believe that we have the potential in the MENA region to have kick-ass projects that can go globally but we should do it the right way.

Woopra success story is a very obvious example as it's based in Lebanon.

I don't have to enough experience to give you exact answer, but from what I've seen:

Advantage:

• It may be cheaper in some Arab countries like Egypt than UK for example.

Disadvantage:

• Startups in US and UK are the most efficient and visible for VCs (media coverage too).
• You may find difficulty finding experts in some fields (I mean in Middle-east).

Not to add much to Kamel's answer(+1 for the Woopra exmaple and believing in the MENA region :) ).. Just a quick thought.. if your hiring developers to implement your product.. remember that Developers salaries in the arab world is way lower than Europe or the states, and they are as good and sometimes even better, so you get both Quality and Lower costs .

About the VCs, Habib haddad posted a Ask the Expert Questions Here , where you can post your 1st 2 questions there and if they get picked you will have them answered by a VC (whom i believe would be more suitable to do that job )

EDIT: Habib's answer is also brilliant :)

Blockquote Developers salaries in the arab world is way lower than Europe or the states, and they are as good and sometimes even better, so you get both Quality and Lower costs . Blockquote

while ppl may be cheaper, a small addition, don't disregard infrastructure and costs ( like cost of internet , basic electricity, banking fees ) or just sometimes the un-availability of some ressources ( u simply can't get the internet you want in lebanon, even if you pay for it , u can't have paypal... ) and the time to get things rolling (laws, banking )

i think the type of ppl you find in lebanon are different than the ones in harvard, MIT ... sorry to say, in lebanon, education is corrupted... and correct me if i am wrong. Facebook couldn't have found its developers here - when it comes to innovating from 0, i think here is a hard hunt for employees who mostly left for jobs outside already.

Those are in my opinion some of the disadvantage here.

otherwise, yes , it is cheaper and habib said it all :)