UAE Emerges as Leading Regional Hub for Start-Ups
Abu Dhabi, The Gulf Observer: UAE has solidified its position as one of the foremost regional hubs for start-ups, thanks to its attractive investment environment, flexible business policies, and innovation-driven legislation. International institutions continue to rank the UAE highly in global indicators related to start-ups, attributing its success to the country’s continuous efforts in fostering an ecosystem conducive to innovation and entrepreneurship.
Recent data from Statista reveals that by the second quarter of 2024, the UAE had over 5,600 start-ups registered, making it the leading incubator for start-ups in the Gulf Cooperation Council (GCC) region. The UAE also leads the region’s fintech sector, with more than 550 companies operating in this field.
According to a report by global consulting firm Startup Genome, the UAE’s various emirates have advanced significantly in global rankings, with Abu Dhabi, Dubai, and Sharjah identified as key drivers of start-up ecosystem growth. The report noted that Abu Dhabi has maintained its status as the fastest-growing start-up ecosystem in the Middle East and North Africa (MENA) between the second half of 2021 and the end of 2023, achieving a total ecosystem value of $4.2 billion during this period.
Early-stage funding in Abu Dhabi amounted to $224 million, with venture capital funding exceeding $1 billion, largely spurred by the activities of start-ups operating under Hub71, the emirate’s global tech ecosystem. Ahmad Ali Alwan, CEO of Hub71, highlighted that Hub71 is seeing increased interest from tech start-ups focused on addressing global challenges and creating economic value. He further emphasized Hub71’s role in fostering innovation, building strategic partnerships, and driving growth across sectors such as sustainability, particularly through its Hub71+ ClimateTech ecosystem.
Dubai continues to reinforce its leadership in nurturing start-ups, ranking first in the Gulf and second regionally in global ecosystem valuations. By the end of 2023, Dubai’s start-up ecosystem value reached over $23 billion, with In5, a subsidiary of TECOM Group, supporting 1,000 start-ups and raising AED7.8 billion in funding since its inception in 2013.
Meanwhile, Sharjah has made substantial contributions to the UAE’s business growth, hosting around 60,000 small, medium, and start-up companies. Its start-up ecosystem was valued at $424 million by the end of 2023, with early-stage funding reaching $39 million, spread across its six free zones and 33 industrial zones.
These achievements highlight the UAE’s growing reputation as a hub for entrepreneurial activity, driven by a supportive policy framework and strategic efforts to cultivate innovative and technology-driven sectors.
