The UAE has solidified its position as one of the leading startup ecosystems in the region due to its attractive and integrated investment environment, flexible business policies, and innovation-driven legislation. The UAE leads multiple global indicators related to startups due to its continuous efforts to create a supportive investment environment for innovation. These efforts have also reflected positively on the country’s ranking in global competitiveness indices.
Fintech startup sector leads growth
Recent data from Statista revealed that the UAE topped the GCC countries as the leading incubator for startups, with over 5,600 startup registrations across the country by the second quarter of 2024. The data also revealed that the UAE is leading the region in the fintech startup sector, with over 550 companies currently operating in this field.
A recent report by the global consulting and research firm Startup Genome also revealed that the UAE’s various emirates continue to advance in international rankings, emerging as the fastest-growing startup ecosystems in the region.
Abu Dhabi, Dubai and Sharjah are leading this growth and fostering continuous and sustainable development for startups by creating a proactive and incentivizing environment in key sectors.
Abu Dhabi emerges as fastest-growing startup ecosystem
The report also noted that the UAE’s capital maintained its position as the fastest-growing startup ecosystem in the Middle East and North Africa between the second half of 2021 and the end of 2023, achieving $4.2 billion in value within its startup ecosystem during the same period.
The report also indicated that early-stage startup funding reached $224 million while venture capital funding between the second half of 2021 and 2023 exceeded $1 billion, driven by the growing activities of startups operating under Abu Dhabi’s global tech ecosystem, Hub71.
“Hub71 is witnessing increased interest from tech startups that are contributing to tackling global challenges, creating significant economic value, and generating new job opportunities in Abu Dhabi,” said Ahmad Ali Alwan, CEO of Hub71, in a statement to WAM.
He added that the emirate’s startup community continues to grow, driven by Hub71’s dedicated programs, strategic partnerships, and commitment to innovation, which strengthens Abu Dhabi’s position as a leading and fast-growing global technology hub.
Hub71+ ClimateTech ecosystem
Alwan also highlighted Hub71’s ambition to further support startups across various sectors, including sustainability, through the Hub71+ ClimateTech ecosystem. This initiative falls in line with Abu Dhabi’s economic vision and the aim of fostering innovation and growth.
Hub71 focuses on facilitating startups’ access to capital, talent, and corporate partnerships, supporting entrepreneurs in scaling their businesses rapidly. This enables successful ventures and contributes to an integrated ecosystem capable of supporting Abu Dhabi’s economy.
Startups operating under the Hub71 umbrella continue to create significant job opportunities across various sectors in the emirate, currently providing more than 423 job roles across 126 companies.
Dubai’s ecosystem reaches over $23 billion
Meanwhile, Dubai has strengthened its leadership in creating ecosystems that support startup growth, ranking at the top of both global and regional start-up ecosystem valuations.
Dubai ranked first in the Gulf and second in the region, with the startup ecosystem value reaching over $23 billion by the end of 2023, according to Startup Genome.
In5, a TECOM Group subsidiary, has supported 1,000 startups, raising AED7.8 billion in funding since its inception in 2013. The group continues to play a pivotal role in promoting the sustainable economic growth of these startups in Dubai and the UAE.
Sharjah’s business growth
Besides, Sharjah has made significant contributions to business growth in the UAE, hosting around 60,000 small, medium, and startup companies across six free zones and 33 industrial zones.
The value of Sharjah’s startup ecosystem reached $424 million by the end of last year, with early-stage funding totaling $39 million.
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