Abu Dhabi: The United Arab Emirates (UAE) has strengthened its role as a prime destination for start-ups, driven by its adorable investment environment, business-friendly policies, and innovative legislative framework.
According to international reports, the UAE is consistently leading global hands for start-up ecosystems. This success mirrors the country’s commitment to fostering invention and maintaining its top spot in global competitiveness indices.
Recent data from Statista shows that the UAE guides the Gulf Cooperation Council (GCC) countries as the top incubator for start-ups, with over 5,600 registered by Q2 2024. The fintech sector is particularly strong, with more than 550 fintech companies serving across the country.
A report from Startup Genome highlights the continued growth of the UAE’s emirates, particularly Abu Dhabi, Dubai, and Sharjah, as emerging global leaders in start-up ecosystems.
Abu Dhabi has retained its position as the fastest-growing start-up ecosystem in the Middle East and North Africa (MENA) region between mid-2021 and 2023. Its start-up ecosystem achieved a value of $4.2 billion during this period, with early-stage funding reaching $224 million and venture capital investment surpassing $1 billion.
Ahmad Ali Alwan, CEO of Hub71, Abu Dhabi’s global tech ecosystem, emphasised the emirate’s growing start-up community. Hub71’s efforts focus on drawing tech-driven start-ups that contribute to solving global challenges, creating new jobs, and adding economic value.
Dubai continues to top the rankings for start-up ecosystem valuations. Startup Genome’s data shows that Dubai’s ecosystem value reached over $23 billion by the end of 2023, positioning it as the Gulf’s leading hub and second in the broader region. In5, a subsidiary of TECOM Group, has supported 1,000 start-ups and raised $2.12 billion (AED7.8 billion) since 2013.
Sharjah has positioned itself globally as a key contributor to the UAE’s business environment. With around 60,000 SMEs and start-ups operating across six free zones and 33 industrial zones, the value of Sharjah’s start-up ecosystem reached $424 million by the end of 2023, with early-stage funding totalling $39 million.
The UAE’s ongoing support for start-ups across multiple sectors is set to ensure the country’s resumed leadership in the region and globally.