Yahoo’s Yamli Deal to Spur Arab Startup Investments

Habib Haddad says when he needed money three years ago to fund Yamli, an online Arabic transliteration service, he had to sell his furniture. His deal with Yahoo! Inc. this week is a sign investors are more willing to put money into Middle East startups.

“I had $100 left in my account and my credit cards were maxed out” after initial investments from two Google Inc. executives ran out, Haddad, 31, said in an interview in Dubai May 28. That day, Haddad, who also runs a fund investing in startups, announced an agreement making Yahoo the latest company to use the technology he developed with fellow Lebanese entrepreneur Imad Jureidini.