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MENA Watch: Entrepreneurs gain through new minority business certification

A committee is set to review the issue in 2025, but for now, MENA entrepreneurs must rely on the ADC’s independent certification

For decades, minority business owners in the United States have been able to obtain certifications that help them secure contracts and reduce business costs. Organisations like the National Minority Supplier Development Council (NMSDC) and the Small Business Administration (SBA) have long provided certification for various ethnic groups.

However, until recently, business owners of Middle Eastern and North African (MENA) heritage were excluded from these programmes. That changed in July 2023 when the American Arab Anti-Discrimination Committee (ADC) launched a new certification programme specifically for MENA entrepreneurs.

Recognition as a minority business comes with significant advantages, particularly in consumer goods and retail sectors. Supermarkets like Kroger and Target offer diversity programmes that provide financial incentives, such as reduced or waived slotting fees, to certified businesses.

Many MENA business owners, however, struggled to obtain recognition because they were classified as “white” under previous certification systems, despite experiencing discrimination and unique economic challenges.

Alexander Harik, co-founder of the Brooklyn-based pita chip company Zesty Z, encountered this firsthand. Despite his Lebanese heritage, he was told that he did not qualify as a minority. Similarly, Yassin Sibai, a Syrian-born entrepreneur who co-founded the frozen food company Afia, faced repeated rejections when applying for certification.

Without official recognition, these business owners found it difficult to access retailer diversity programmes that could reduce costs and increase visibility. The new ADC certification has provided them with legitimacy in the eyes of supermarkets and consumers alike.

Mansour and Karim Arem, brothers behind the Tunisian-inspired food brand Zwita, also struggled with previous certification attempts. They found it frustrating that North African and Middle Eastern entrepreneurs were categorised as white despite their distinct cultural and economic experiences. Through the ADC’s new certification, businesses like Zwita are now gaining the recognition that was previously unavailable.

For small consumer packaged goods (CPG) brands, certification can be a game-changer. Supermarkets often charge hefty fees for product placement, making it difficult for independent brands to compete with large corporations. Raffi Vartanian, co-founder of Ziba, a company that sells Afghan-sourced nuts and dried fruits, emphasised how shelving fees put small businesses at a disadvantage. Certification can significantly reduce or even eliminate these costs, helping emerging brands survive and grow.

Beyond financial benefits, the certification also creates marketing opportunities. Many retailers allocate funds for promoting minority-owned brands, particularly during cultural heritage months. April, now recognised as MENA Heritage Month, offers certified brands a chance to be featured in stores and marketing campaigns.

Isabella “Bella” Hughes, co-founder of the gummy candy brand Better Sour, views the certification as a way to increase representation in the industry. She notes that when she was growing up in the 1980s and 1990s, there was virtually no visibility for MENA businesses.

Despite its advantages, the new certification programme is still in its early stages. About two dozen MENA-owned brands have been certified so far, but thousands more are eligible. ADC Executive Director Abed Ayoub is now working to expand the programme beyond consumer goods, aiming to certify businesses in construction, beauty, legal services, and other industries.

The historical exclusion of MENA business owners from certification programmes reflects broader issues of racial classification in the US. The NMSDC, founded in the 1970s, initially excluded MENA entrepreneurs because they did not consider themselves minorities at the time.

Over the years, discussions about expanding the definition of minority groups have taken place, but the council has yet to implement any changes. A committee is set to review the issue in 2025, but for now, MENA entrepreneurs must rely on the ADC’s independent certification.

Determining who qualifies as a minority can be complex, particularly in a region with a long history of migration and ethnic diversity. Some organisations, like the NMSDC, base eligibility on having at least one grandparent from a historically discriminated group.

The ADC’s approach involves examining passports, birthplaces, and family trees to establish MENA heritage. While the process has been straightforward so far, questions about who is “Middle Eastern enough” may arise as the programme expands.

The certification remains largely unknown outside the MENA business community, but Ayoub anticipates that awareness will grow over time. A major milestone will come in 2030 when the U.S. Census includes a MENA category for the first time. This official recognition could help validate the certification and encourage more businesses to seek minority status.

However, obtaining certification is just one step—getting retailers to accept it is another challenge. Supermarkets have discretion over their diversity initiatives, meaning they are not required to recognise the new MENA certification. Entrepreneurs like Sibai acknowledge that while certification is a step forward, securing widespread acceptance from major retailers will be a longer process.

Despite these challenges, MENA business owners see the certification as a crucial tool for economic empowerment. Harik believes the programme is a testament to MENA entrepreneurs’ resilience, stating, “Opportunities were closed to us, so we got scrappy and intelligent and we just did our own thing. And it’s working.”

For many, the certification is not about politics or cultural debates—it is simply about gaining access to the same opportunities that other minority groups have had for decades.

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