Middleeasttycoon News Desk :The UAE has firmly established itself as a leading regional hub for start-ups, bolstered by an attractive investment environment, flexible business policies, and legislation that prioritizes innovation. International institutions highlight the UAE’s success in creating a supportive landscape for start-ups, reflected in its strong performance in global competitiveness indices.
Recent data from Statista reveals that the UAE has emerged as the top incubator for start-ups in the GCC, with over 5,600 start-ups registered across the nation by the second quarter of 2024. Notably, the UAE leads the region in the fintech sector, boasting more than 550 companies actively operating in this space.
A report from the global consulting firm Startup Genome emphasizes the rapid growth of the UAE’s various emirates, positioning them among the fastest-growing start-up ecosystems in the region. Abu Dhabi, Dubai, and Sharjah are at the forefront of this growth, fostering an environment conducive to sustainable development for start-ups across key sectors.
Abu Dhabi has maintained its status as the fastest-growing start-up ecosystem in the Middle East and North Africa from the second half of 2021 to the end of 2023, with a notable valuation of US$4.2 billion in its start-up landscape during this period. Early-stage start-up funding in Abu Dhabi totaled US$224 million, while venture capital funding surpassed US$1 billion, driven largely by the activities of start-ups within Abu Dhabi’s global tech ecosystem, Hub71.
Ahmad Ali Alwan, CEO of Hub71, noted the increasing interest from tech start-ups aiming to address global challenges, generate economic value, and create job opportunities in Abu Dhabi. The emirate’s start-up community is thriving, bolstered by Hub71’s dedicated programs, strategic partnerships, and innovation-focused initiatives. Alwan stated, “Hub71 is witnessing increased interest from tech start-ups that are contributing to tackling global challenges, creating significant economic value, and generating new job opportunities in Abu Dhabi.”
Moreover, Hub71 aims to enhance support for start-ups across various sectors, including sustainability, through the Hub71+ ClimateTech ecosystem, aligning with Abu Dhabi’s broader economic vision. The initiative focuses on providing start-ups access to capital, talent, and corporate partnerships, thereby facilitating rapid scaling and fostering successful ventures that contribute to Abu Dhabi’s economic landscape.
Currently, start-ups under the Hub71 umbrella are generating significant employment opportunities, with over 423 job roles created across 126 companies.
In Dubai, the ecosystem for start-ups continues to flourish, with the emirate ranking first in the Gulf and second regionally in terms of start-up ecosystem valuations. By the end of 2023, Dubai’s start-up ecosystem was valued at over US$23 billion, according to Startup Genome. In5, a subsidiary of the TECOM Group, has supported around 1,000 start-ups, raising AED7.8 billion in funding since its inception in 2013, playing a crucial role in promoting sustainable growth in Dubai’s start-up landscape.
Sharjah also holds a significant global position, contributing substantially to the UAE’s business growth. The emirate is home to approximately 60,000 small, medium, and start-up companies across six free zones and 33 industrial zones. By the end of last year, the value of Sharjah’s start-up ecosystem reached US$424 million, with early-stage funding amounting to US$39 million.
Overall, the UAE’s strategic focus on nurturing start-ups through supportive policies and innovative frameworks has positioned it as a premier destination for entrepreneurs, ensuring continued growth and success in the region’s dynamic start-up landscape.
