Startups within Hub71, part of Abu Dhabi’s global tech ecosystem, have secured more than AED7 billion ($1.9 billion) in funding and generated revenues surpassing AED4 billion ($1.08 billion), as reported by Ahmad Ali Alwan, CEO of Hub71. In an interview with the Emirates News Agency (WAM) during Abu Dhabi Business Week, which wrapped up today at ADNEC, Alwan underscored the remarkable growth of Hub71. The ecosystem now hosts over 300 startups from various corners of the globe and has established 150 partnerships aimed at assisting these companies in attracting investments, generating revenue, and driving growth.
Growing interest and future plans
Alwan disclosed that Hub71 has received upwards of 2,500 applications for its programs, with intentions to onboard approximately 50 new startups by the conclusion of 2024. He noted that this strong interest highlights Abu Dhabi’s status as a premier investment destination and a global economic center for business development. Alwan emphasized Hub71’s commitment to drawing international firms from advanced sectors to Abu Dhabi, pointing out that the UAE has created a world-class infrastructure and resources, fostering an optimal environment for business success.
UAE as a startup hub
The UAE has firmly positioned itself as one of the leading hubs for startups in the region, attributed to its appealing and integrated investment landscape, adaptable business regulations, and innovation-focused legislation. International organizations recognize the UAE as a leader in global startup indicators, due to its ongoing initiatives to cultivate a supportive investment atmosphere for innovation. These efforts have positively influenced the nation’s rankings in global competitiveness indices.
Growing startup ecosystem
Recent data from Statista indicates that the UAE has emerged as the top incubator for startups in the GCC, with over 5,600 startups registered across the nation by the second quarter of 2024. This data also reveals that the UAE leads the region in the fintech startup sector, boasting more than 550 companies currently operating in this domain.
Recognition and growth trends
A recent report from the global consulting and research firm Startup Genome confirmed that the UAE’s various emirates continue to rise in international rankings, establishing themselves as the fastest-growing startup ecosystems in the region. This expansion is largely fueled by Abu Dhabi, Dubai, and Sharjah, which are dedicated to fostering continuous and sustainable growth for startups through the creation of a proactive and incentivizing environment in essential sectors.
Sustained growth in Abu Dhabi
According to the report, Abu Dhabi has retained its status as the fastest-growing startup ecosystem in the Middle East and North Africa from the second half of 2021 to the end of 2023, achieving a valuation of $4.2 billion within its startup ecosystem during this timeframe. The report also noted that early-stage startup funding reached $224 million, while venture capital funding from the second half of 2021 to 2023 surpassed $1 billion, propelled by the increasing activities of startups within Abu Dhabi’s Hub71.
Read more: Abu Dhabi’s Hub71 welcomes 21 startups with $134.9 million in funding
Job creation and economic impact
Startups operating under the Hub71 umbrella continue to generate substantial job opportunities across various sectors in the emirate, currently offering over 900 positions across more than 310 companies. Meanwhile, Dubai has reinforced its leadership in cultivating ecosystems that promote startup growth, ranking first in the Gulf and second regionally in terms of startup ecosystem valuations. By the end of 2023, Dubai’s ecosystem value exceeded $23 billion, according to Startup Genome.
Support from In5 and economic contributions
In5, a subsidiary of TECOM Group, has assisted 1,000 startups, raising AED7.8 billion in funding since its establishment in 2013, and continues to play a crucial role in fostering the sustainable economic growth of these companies in Dubai. Sharjah also holds a notable global position by significantly contributing to business expansion in the UAE, hosting around 60,000 small, medium, and startup enterprises spread across six free zones and 33 industrial zones. By the end of last year, the value of Sharjah’s startup ecosystem reached $424 million, with early-stage funding amounting to $39 million.
